a very warm welcome. this is is worldwide exchange. >> these are your headlines from around the world. >> european stocks dive further into the red but are on course to post gains for the first half of the year. state side the greek crisis also takes it's toll with major indices with the worst day in 2015. >> this as alexis tsipras receives an 11th hour deal but can he change course and get a wres vote in this weekend's

referendum. >> the shanghai composite with it's worst month since 2013 amid on going volatility. >> bank of america merrill lynch downgrades a number of designers during the sector with dior hit the hardest. hello, everyone. welcome to the show. i've got some german unemployment numbers for you. it fell for the 9th straight month in the month of june. the jobless rate holding steady at a record low of 6.4% and we saw a job loss of 1,000 to 2.786 million. keeping the rate at 6.4%. >> let's get the italian data out as well. unemployment date stable at 12.4% in may. that's the same as april. had been forecast to fall from

12.3. the youth unemployment for may has fallen fractionally from 41.6 to 41.5%. still incredibly high. unemployment in italy. let's move on. it's deadline day for greece with 1.6 billion euros due by midnight but there's little chance of the greek government handing over the cash if it has it in the first place with no bailout deal on the table. reports suggest the e.u. commission president made a last minute offer in a phone call last night. he is said to have urged him to accept creditor's proposals and campaign in favor of the package ahead of the july 5th referendum. however it seems he was not to be turned. >> the creditors give us an agreement which is no solution. we call on the people to either reject it or not. we call on the people to reject it at a greater percentage.

the greater the percentage of noes, the bigger shall be the weapons of the greek government to relaunch the negotiations. >> julia joins us now there's so many questions out there. his phone is always on. he'll answer it if the creditors call him but clearly he's not willing to change his mind. >> well i think it depends on the terms. this telephone conference that happened this morning was the prospect of seeing a bit of an adjustment. alexis tsipras would have to sign up to the rest of the conditions and would have to vote yes this weekend. i think at this stage that would be impossible for him to do given that he is so vocally campaigning for the no vote. they're not giving any comment

on what the latest situation is but it's very difficult for him to change towns, change at this stage but what we have seen this morning is reports of a cabinet meeting in greece. getting quite tense. there's a picture on the front page that suggests tension between them. and seemingly he's blaming him for creating the situation in the country here with the capital controls and saying an agreement of some sort should have been reached. so goodness knows what's going on with the greek government and whether or not we could still see a solution over the coming hours. we'll only know that when the clocks literally tick to midnight tonight and a deal hasn't been signed but as you mentioned there's also the imf payment and behind the scenes what we also saw overnight was this rally, no vote rally where

15 to 20,000 people came out on to the streets. it was like a carnival atmosphere. for the concern of which way people are going to vote and confusion over the question it's a bit of a cathartic process. people choosing what the future of the country is going to be. even those not in the far. they're concerned people don't understand a no vote processer thety -- prosterity might mean no to europe remaining in the eu. we've still got a tourist atmosphere here but underlying that a degree of concern and as you quite rightly pointed out here still a lot of confusion about how this referendum is going to work. the logistics of it. how people are going to be able to travel to go back in the same way as they would in a general

election and then of course if the people do vote yes what political instability follows. so in unanswered questions i cannot tell you and tensions about what to do at this late hour. back to you. >> after all, it's june 30th. the day we have been looking forward to for such a long time. as of tomorrow essentially greece will no longer be part of euro zone bailout package? am i correct in that? and second of all if greece doesn't pay the imf tomorrow is it technically in default? >> as of midnight tonight they're out of a bailout program and the proposals on the table are no longer on the table which calls in to question the question in the referendum but as far as the imf is concerned, i spoke to christine lagarde and

she said she would notify the board very promptly. there's supposed to be a one month leeway period. by far the greatest risk here is that we get to the referendum and then have political tensions. we have that ecb bond redemption coming up on the 20th of july. i think that actually far bigger issue as far as the markets are concerned and the greeks are concerned then this imf payment. it will be a very negative message but the default risk comes when that payment is due in july. back to you. >> thank you for that. what does it all mean for markets? yesterday it meant sharp declines and in general the less safe haven your sector or country was the sharper the declines were. more of the same but less pronounced fashion. 0.85 declines in the stoxx 600. let's see where those declines are focussing.

it's more broad based today. lesser difference between the various countries. ftse 100 off 0.7. and portugal is off 1%. bonds paints the story overall. continued buying of the safe havens. the likes of germany and the u.s. that pushed yields lower for them once the countries have seen moves in the opposite direction today and yesterday which might suggest a possibility of contagion. yes, incredibly high 15.2% but the likes of italy and spain only 2.3%. still very very far from the yields that became common place back in 2012 when the threat of a grexit was seen to have high chances of contagion. 2.3, 2.3, and the u.s. 2.3. so clearly these countries are

not likely to be expected to crash out if greece does as well. the greek yield curve, of course seeing yields rise sharply. the ten year we already said 15.2%. the ten year now close to 42%. we have an update from singapore. >> thank you for that. turn around tuesday in the asian markets and can't help but feel this move higher in practically all the stock markets is a little bit premature given the fact that the greek developments have yet to be laid to rest. i think we'll see this picture change as the week grinds on and as we move closer toward the all important referendum on sunday. turn around tuesday as well. we started off negatively and closed about 4% lower and then stabilize, flat line broke for lunch and came back into the afternoon session and interest

came storming back. market mid higher and here we closed. there's some sense in the market that it's because there's some talk that the beijing authorities may freeze the wave of ipos. may freeze the ipo program and remember, the wave of official public offerings has been one of the factors that sucked up a lot of liquidity away from the main board. a lot of these new issues have been very heavily prescribed. some by around 50 times. that's sucked up and locked up a lot of liquidity from the main board. if they slow that down and freeze the ipo program that could help reinstate some money back into the market. that's what the shanghai composite is front running up by 5.6%. tremendous volatility. it's an ultra leveraged market.

so that's where we stand at the moment. expect more volatility as we continue to monitor the developments from athens back to you now. >> thank you for that. still, coming up on the show the latest on the race for the white house as chris christie kicks off his campaign. plus find out why donald trump is on the wrong end of the firing line. if the passwords to all your online accounts is 12345, because you have too many to remember, stay tuned for a ceo that might have a solution for you. and why are traders worried about one specific second today? that's all coming up on worldwide exchange.

welcome back. sony announced plans to raise up to $3.6 billion by issuing a combination of stocks and convertible bonds. the income will go toward growth areas such as the image sensor business and developing the playstation console. sony stock took a hit on the news falling more than 8% in the minutes after the announcements. >> let's look at some of the stocks on the move in europe today. luxury designers down across the board after bank of america

merrill lynch cut it's price target on a number of stocks. dior down 4%. and similar declines across the market. elsewhere, it's half year support failed to deliver any information on an international partnership. the online plans to strike the deal by the end of the year. that's off 3.5%. shares of medical packaging producer gerresheimer off 6%. it will sell to glass maker corning. proceeds amount to just under 200 million euros. alstom off the best part of 1%. the ceo is positive he will receive the go ahead from the eu for the sale to ge. general electric is set to appear in front of trust

regulators on thursday to defend it's acquisition plan. let's get all the details from stefen in paris. >> ahead of the shareholders meeting today the ceo is confident it will dpif it's green light for the 12.4 billion euro deal for general electric. i hope we're in the final leg and i have confidence they ask whether the company added plan b if or should the commission block the deal but won't be declined to comment and say there's no reasons why the plan a should not work. they agreed to buy most of the power business for 12.4 billion euros but they're concerned it would reduce competition and would lead to higher prices and less innovation. in february they decided to open a full scale investigation and then stopped the plan in april pending new proposals.

last month ge said it was ready to make concessions but didn't elaborate on what it would be ready to offer. we did have more information later this week ge was expecting a green light. we're now expecting a decision after the summer. they believe they can close the deal by the end of this year. >> it's one of the hot topic where is the world's leading asset managers are giving their view on how to invest around this current volatility. nancy is live from monaco for us nancy. >> thank you. that's right. of course greece wasn't on the official agenda here in monaco. we have been talking to several asset managers saying it's an overriding topic. we heard from one that said

there was a session called yesterday to talk about the situation in greece and what that might mean for the industry but now taking a cautious approach. i'm joined now by the ceo. thank you so much for being here. i want to start off first with greece. how concern redirect examination you about the latest developments in terms of effecting flows in your fund? >> of course the volatility is effecting flow to some extent. but if we look at narcotic reactions yesterday it was very moderate and everybody is taking a little breather here and we have been set back a couple of weeks in terms of market levels. >> i think it's also due to the timing of the greek situation coming a few months ahead of a fed rate hike. are you concerned for the bond market? how are you positioning investors in fixed income?

>> well of course liquidity is a challenge in the fixed income markets. we've seen that over the last couplel of years. we have to work more when we work portfolios we have to work more on the liquidity and when we have situations like this effecting it. i think the market is well aware we will have fed hikes over the next 6 to 12 months and see the rates going up but i don't think that -- that is not effecting the liquidity as much as the situation in greece. >> given that if we do see a continued sell off in bond markets, where should investors turn to find return? >> i think that first of all we don't really forsee that equity markets will drop a lot. of course when we have uncertainty we'll see drops like we saw yesterday and that is

fine. many people see that as a buy opportunity because greece is not that large a part of the european economy but as to verse fireworks kags -- verification people want it. so it is good advice to have a verse identified portfolio. you give portfolio managers more ability to maneuver in terms of asset allocation. that's also what is happening when you're looking at the more broader mandates where you can actually diversify through all asset classes and that's the way to invest in the times with the low yield environment and rates coming out of it. >> when we talk about verseabout diversification, are you facing

passive funds or is it creating a more competitive environment for you. >> i mean, i will and woe also use products to do asset allocation but i don't think that massive is the way to be invested when you have the low yield environment. the only way to create attractive returns and to avoid pitfalls is asset allocation on top of that and that's really difficult. soy mean the products where we see the majority of flows is mandates where we have the ability to protect investors through diversification. >> there you go. that's the ceo of asset management saying the best place to be now is multiple asset funds. >> as it's the last trading day of june we're asking for your outrageous predictions for the second half of the year. if they're not outrageous send

them in anyway. what are you expecting from the second half of the year? join the conversation and get in touch with us by e-mail at worldwide@cnbc.com. our personal handles are on bottom of your screen. we are joined around the desk. good morning to you. what are you expecting for the second half? >> a pretty volatile second half with risk across the board but we expect european equities to recover in a smooth matter once this issue is cleared. >> you would buy on the dips today and yesterday? >> yes and use options to limit the down side. >> at the moment we're focused on this lack of liquidity being greece's issue but not the rest of the european union or euro

zone. could it effect the likes of germany over the course of the year? >> your point is very important. this is something we mentioned and interestingly enough you have trading liquidity that's been limited in the fixed income market to some extent but when it comes to germany we don't expect germany to be effected in terms of the bond market although there's evidence of that already because we think that germany is going to be the safe haven and that's what you see in the recent rally in the bund for example. >> in terms of credit what we've seen in terms of the m&a activity, we've seen quite a lot of that and many would argue we're at the end of the credit cycle and credit fundamentals are getting patchy. is that something you're seeing in the u.s. and europe? >> this is an excellent point about the credit cycle. i think this is a good example

is something to think about the credit clock. so in 2009, for example, we had a crisis where credit and equity underperform and you have a balance sheet repair process where cash flow improves and ultimately credit fundamentals improve. so once they're struggling to find growth aside from buy back and pay dividend the next area of growth is through m&a and we expect u.s. companies to buy more of european companies simply because of the weakness of the euro and limited opportunity of finding top line growth in the u. s. for example. >> i want to bring it back to greece and the liquidity issue. you think that in general, the rest of europe's equities will recover. what about greece specifically. imposing capital controls isn't that a step too far to recover? when they're lifted which is going to leave the bulk of their money in a greek bank.

>> yeah but ultimately i think the game plan from greece standpoint is to get more bargaining power toward the end of the week and ultimately find a solution for the greece situation. so i think you can almost use the quote from roosevelt about whether the issue is fear and there's obviously been a lot of tools from the central bank and the euro zone to limit the contagion of the greece situation. so yes, there's liquidity issues but ultimately the path of least resistance should be toward a better resolution. >> before we let you go what's your best trade of the day going into the second half of the year? >> yeah essentially long data so essentially buying puts long-term and buying equity futures. the benefit of this trade is ultimately your long delta but also long volatility long

dividend and long repo risk which is something we call one birds. hitting five birds with one stones because it's playing on all of these parameters. >> five birds with one stone. that's quite a lot. hope you all had a pen and paper to write that down. managing director and global head of solutions. thank you so much. >> apple goes live with it's music streaming service but how many customers will stick around after the free trial ends? we discuss.

european stocks dive further into the red but on course to post gains for the first half of the year. state side the greek crisis takes it's toll with major indices having the worst day since all of 2015. >> this as alexis tsipras receives an 11th hour deal. but can it compel him to change course and ask for a yes vote in this week's referendum. >> asian stocks close the session in the green but the shanghai composite moves up it's worst month amid on going volatility.

>> and we are awaiting some u.k. data. let's have a look at sterling as we wait for that. of course sterling has enjoyed quite a tasty rally since the u.k. election. it's at now 15713 against the u.s. dollar. up quite significant. it's below 153 so it's had a nice june period and today it's just below flat as we await this data. we're getting it right now. gdp has come in and been revised to plus 2.9% year on year and to 0.4% quarter on quarter. so both of those going up. the quarter on quarter going up from 0.3. the year on year figure going up from 2.4. quite a significant upward revision in q-1 gdp for the u.k. >> that's also reflected in the materialing dollar. 157.32 strengthening against the

dollar. for 2014 as a whole it was revised up to 3% from 2.8%. >> as you said productivity is still a key area but all in all since the election we're starting to see people price in possibility of rate rise. i can't see them going ahead of the fed but the data is permitting them to do so if they decide to. >> let's have a look at european markets and we're still in the red. yesterday the stock 600 was down by 2% on the back of greek worries and we're just hours away from greek defaulting on its imf payment. ftse 100 off. dax losing 1.3%. the cac 40 down by 1.3%.

it was the hardest hit yesterday, portugal down 5%. the spanish markets off by 4% as well and today the luxury stocks are also under a little bit of pressure after that downgrade coming through from bank of america, merrill lynch. the euro stocks 50 is looking like this. we're off by 1.1%. >> let's have a look at bonds. while greece might be in arears to the imf tomorrow it hasn't led to a serious spike in other bond yields. germany at 0.77 but spain and portugal at 2.3 and 2.4%. they've seen yields tick up a little bit but a far try from the yields back in 2012. bear in mind the spread between the u.s. and germany because that's what interestingly in the second half of yesterday's trade was driving rates. the euro sold off sharply before

the open and by the first half of the day but by the end of the day we did see a euro rally which was quite surprising to some but really related to the fact that there was more bond buying of the u.s. note so. more yield compression there than in germany so it did rally yesterday. >> we are seeing a lot from analysts this morning. so anyways, that was a surprise. meanwhile, reports suggest eu commission president has made a last minute offer to the greek prime ministers in a late night phone call he is set to have urged alexis tsipras to accept creditor's proposals and campaign in favor of the package ahead of the july 5th referendum. julia, what exactly was in that proposal and do you think that tsipras will accept it? probably not, right? >> probably not, carolyn.

very difficult for him because obviously within in that detail of that new proposal they want tsipras to do a u-turn and vote yes in the upcoming referendum. the concessions they gave a little bit of acceptance over the bonus payments to pensioners. tsipras would have to agree to everything else. difficult for the government given the stance they have taken but since then there's all sorts of rumors flying around. one of the members doesn't want to sit at the table anymore with him. there's also supposed to be a press conference in the next hour or so. that's now been cancelled. it was also cancelled yesterday. so furious speculation about just what's going on within the party and their handlings of these negotiations and of course as we look ahead to the referendum. i'm joined now and i'm going to

get her take on what she thinks is going on here. thank you for joining us. one of your fellow mps tweeted out there's a contingent been the party now looking at how we go from the euro in greece to the drachma. have you heard anything similar and what's your take on this. >> it's not a question of rumors. actually a lot of people have plainly stated that they think our participation in the euro zone was a great mistake. not only that because some people thought we shouldn't participate in the first place but we should leave now. there's people that say we should get out as soon as possible. so we were hoping that they would remain in the minority but apparently now that things have become really tight and big decisions are needed it seems easy to adopt the hard line because this keeps happy

everybody inside and they don't have problems of various different voices it makes me think, if the people do vote no then what? what does the party then do? so actually contingency planning is actually what the government should be doing at this stage given that they're pushing the no vote. >> right. >> this is what should be happening, isn't it? >> the thing is one of the problems of this referendum taking aside that people have to decide in five days what is going to happen to five generations to come and the complexity of the technical question because there's not clear question the yes and the no. >> do you think people get that? >> no of course they don't get that and this is part of the plan not to understand exactly. >> okay. >> so they want to ride on the

wave of dissatisfaction and anger and the feeling of greeks being pushed around and these people are going to vote for no. now the government says if no dominates which i think probably will. >> do you? >> unfortunately i think it's going to happen because people feel they have to express their support for the government because people tend to support whoever is in power. so it's not very difficult to see that the government is trying to take advantage of this reaction so what is going to happen afterward? nobody knows. nobody is going to want to negotiate properly because we were told yesterday that if we start negotiations again and the europeans have no problem with

that we should start from a blank page which means the economy will be completely vulnerable outside the umbrella of the european central bank and liquidity provided so far and nobody knows what is going to happen. >> and the creditors said we don't believe they can implemented reforms if the people vote yes. that seems like a no go even if the people vote yes. if we get a no vote as you said, we don't know where we're going. just how frightened are you that we get a no vote and then it's an unstoppable force. how likely is a grexit here? >> the problem is the government framed the question in such a manner that even if yes comes as the outcome, then alexis tsipras yesterday said he's going to re-sign which means we go back to the drawing board with new

elections and at the same time t economy is going to melt down even more quickly than until now with no banks, with no hi quiddity with no way of pensions reaching the people. >> are the people blaming alexis tsipras? because the people i speak to are blaming the creditors. if we go back to fresh elections the people would vote for alexis tsipras again. >> they would because they think this is the anchor that they can trust because he's the prime minister. he's smart. he says that he knows what he is doing and one has to take into account that there's a great responsibility for the political system in general and i'm excluding my party because the politicians vote from new democracy and now have said the

reforms are something we need to make our economy viable and competitive. it's something these creditors are asking us to do because they want to punish us. so within this frame, the obvious answer is no and the idea of having another election is even more appalling. so unfortunately although the real question is between euro zone euro on the one side and a variable vulnerability on the other side with grexit drachma and who knows what else the majority of the people think the stability vote is to vote for what the government says. >> we're running out of time. it's a yes or no answer here. are you effectively saying then if we have this referendum a grexit becomes inevitable? >> absolutely. this is why it's so important to reach a solution before that. before the expiration of the

extension of the program this evening. >> thank you for speaking to us. guys, you heard it there, if this referendum goes ahead, this is saying a grexit becomes inevitable. >> wow, thank you for that. meantime, i want to show you this live shot of athens of the national bank of greece. earlier the greek government announced a thousand bank branches would open tomorrow in order to serve pensioners. >> the greek government has threatened to take action in europe's top courts in faced with expulsion from the euro zone they are adding that the country's membership is nonnegotiable. meanwhile, a greek exit could still take place adding that the central bank is working to avoid such a situation. let's get out to annette at a

live in frankfurt outside the ecb with all the latest. >> thank you. i think what he was saying is that if there is this referendum to an out of a no to the austerity pack computer or the package actually t european partners are offering then there's no way around such a scenario that greece has to leave the euro zone. the country is bankrupt. they have to default. the banks are in shambles. they have to choose currency because they can't pay. they don't have euros. so he can appear to the european court of justice as long as he wants to. he in theory has very good ideas

and in reality they don't play out. coming back to what the ecb is currently saying that he stepped out yesterday in that interview for the first time ever that an official was saying a grexit is perhaps not inevitable and that's a big, big move for the institution behind me for the ecb because before mario draghi for example in press conferences was always saying he does not want to think about such a scenario and he has not thought about it anyhow. so that is a big move and you see, i think the european central bank is just moving in tandem also with the other european partners like the commission and trying to be more vocal about the potential scenario the greek people are facing in case they would vote actually no to the package and i guess everybody tries it's best or their best in order to

convince the greek population to do the right thing on sunday. with that, back to you. >> annetta thank you very much for that. joining us in studio is portfolio manager at newton investment financial. you're very much long-term investors. do you ignore all of this at the moment. will we look back on this in a month or two and see it as a blip? >> it's more of a question of knowing where the long-term economic pu tour of europe lies. this does add a little bit of uncertainty and lack of credibility from the point of view of the knock on effects it has. we do view it as important however we won't be trading specifically on the back of it at this point in time. >> if we look at the markets, very sharp risk off moves but if we look at the bond market while it has seen yields elevated they haven't moved drastically. it's 2.3 and 2.4%. is that saying the investors

aren't worried about serious long-term contagion? >> what they're not worried about is the chance of ecb not coming in with further stimulus packages. it will stem the tide going up. you have to think of it as being moreover a currency peg. they will require higher returns going forward. that's a longer term issue. >> but you don't have a choice. either you want to invest or not. even if you don't think that the euro zone as an institution or group is really that credible anymore. do you still want to invest? because we have the ecb pumping money into the economy. >> you probably want to be in euro zone or euro denominated security which is are exporters and as we see a divergence the fed is against the ecb we'll probably like to see a period of

stronger dollar over the summer and that will lead to opportunities in the global economies which earn their revenues in dollars but which are seeing their costs in euros. >> so at the same time you have to wonder and a guest pointed this out earlier on in the day whether central bank hearsay come toward the end of the road. whether they simply lost their clout in controlling the markets. we saw that with the pboc over the weekend. their rate cut didn't have a big impact on the chinese equity markets. we're still seeing a roller coaster ride. the ecb can't do much about bond volatility and we're seeing a messy situation in greece. do you think they will be increasingly powerless? >> they still have sway and the amount of assets they're able to repurchase is huge and they're able to keep printing money when inflation is still an issue. however you do have the lower bond yields are the higher the potential volatility from a small change in yields. that's something that will lead to high volatility going

forward. >> quickly, what's the top sector pick within europe given the picture you panlted for us? >> you probably want to stay away. it's more important what you stay away from and you probably don't get too involved in the banks. they have some negative correlation toward rising bond yields. some areas will be more dependable since they're more currency sensitive. >> great stuff. thank you. we'll pick it up with paul on emerging markets in a few minutes time. >> and still to come on the show it's the end of the first half of 2015 already. time has flown by. we'll check what could drive the markets as we head into the second half. that's coming up.

welcome back. it's the last trading day of june and indeed of the first half of the year. let's have a look at some specific markets and how they traded across those two time periods before we discuss emerging markets. so india, as you can see in june had quite a sharp sell off at the start of the month and a strong rally toward the end. it did cut rates for the 3rd time at the start of june. markets started to rally by the end of the month. overall, just below flat. an interesting set of performance. the move in january was the back

end of the strong rally post the election and since then just a lack of enthusiasm that he's really carrying through the types of reforms that people had been hopeful of rate cut versus come through. let's have a look at china as well. an extraordinary rally in the a share market at the back end of last year and the front end of this year. you can see it really picked up pace in marchand continued right through to june so the year to date performance plus 32% although the month of june has a sharp correction which was over 20% but the overall june performance as we look at things today is about 2% deline. let's talk about emerging markets now where paul is still with us. quite an extraordinary rally that we saw particularly in the a share market and now as

quickly or almost as extraordinary a correction. huge volatility. where do we go from here? >> there's a lot of retail interest in that market domestically and that's been something that's been driving it. we have seen tremendous flows in from small investors into the market and they get scared very quickly. so my expectation is that we continue to see volatility going forward until they start to learn what investing in the stock market really means as opposed to investing in that for example. so i think we continue to see some of that volatility in the market. >> and of course that is as you say a retail investor driven market. has its own forces behind it. let's move on and talk about the fundamental economy because we've seen another rate cut but even though everyone is on the gdp data and disappointing the lending data is particularly disappointing and seems to me that it's not working anymore. what does that make you expect

for the rest of the year in terms of chinese gdp growth? >> it's likely to disappoint and be pretty sluggish relative to the class. it's in the change of being an export-lead factory of the world toward being a much more domestically driven economy. that's something the government wants. it's taking away some of the stimulus by preventing you know purchasing b driven by t you know corruption scandals and so on. so that will be a long difficult process for china to transition into that more sustainable domestic driven story and that's something that will impact on sectors and markets for the rest of the year. >> i want to broaden this out because if you want to be an investor into emerging market equities, debt currencies, you only want to do that if you believe that the taper tantrum or tightening tantrum won't be as bad as two years ago. some people say it won't be as

bad because valuations are lower and there's that big of a surprise element. we all know it's coming. the fundamentals are looking better. what's your view? there's a difference with bonds rise rising it wants the ability should things deteriorate and it can't do that when it's at the current level of interest rates where we sit right now. it's more of an issue of recreating a cycle rather than needing to raise rates aggressively in the near term. there's certainly a difficulty associated with a stronger u.s. dollar which would be the result of high treasury yields and that's been an issue for many corporates in the emerging world in particular which borrowed at low rates and dollars and find themselves in difficulty when the dollar gets stronger. >> does that mean you want to steer clear for now or be really selective? >> i think you need to be very

selective. large parts of certain markets of the emerging world such as indonesia, south africa and brazil are driven by commodityies and they're negatively correlated to the u.s. dollar. they'll be markets that struggle. elsewhere it might be the indian market despite the fact that valuations are high may offer a different trade in the sense that interest rates are more likely to come down and domestic restructuring, the fact that there is very heavy excitement may well offer support to that market. >> stick with us. we'll bring you into the viewer exchange. it's the last trading day of june and we have been asking you for either your outrageous or sober predictions for the second half of the year. what are you expecting for h-2? e-mail us at worldwide@cnbc.com. our personal handles on the screen coming up for you. >> i'm not personally but newton

is. >> sum up for us what characterized h-1 and what will characterize h-2. >> h-1 is drich byven by disappointment over the lack of mooufl in the moving of the interest rates. we saw some very strong performance from a couple of sectors and health care in particular. one may find there's more of the same in that regard if we think the market will continue to expect fed hikes in december that will be supportive of those stocks in early stage of a rate rise cycle. we expect to see the commodities market struggle in september. so i think it's very much dependent on the path of interest rates in the u.s. >> thank you so much for joining us. we appreciate it.

>> what about you? >> too much of h-1 is driven by people investing for relative valuation. not absolute valuation because they have to put their money somewhere and that will start to unwind. i think we do a big correction in things like u.s. equities. >> we'll see. a watcher that follows me on twitter says in the second half nothing but turmoil, greece puerto rico, china stocks, u.s. debt ceiling and the fed. that's a lot of things to deal with. >> nice and upbeat. anyway, still to come on the shore, two uber executives are taken into custody by french police. we'll be live in paris with the latest on that.

u.s. futures indicate a positive open after the dow and the s&p have their worst day of 2015. european equities continue to be weighed down by greece. >> the drama continues in athens as a government press conference is cancelled amid reports of fighting within the party and calls from the opposition to cancel the referendum. >> pharma m&a continues as they take a $1 billion stake.

>> a change of direction in microsoft as it sells off it's mapping services to uber and slims down it's loss making operations. >> welcome back. straight to june inflation data for the euro zone. the invest is 0.2% year on year. that's in line with the consensus and you're seeing a little bit of a dip in the euro dollar pair. but that dip was also at 11142 and this compared to 0.3% in the month of may.

the june flash estimate 0.2% year on year. price versus fallen back a little bit. so euro dollar again pretty much unchanged. we're down by 0.8% on the day. 11149 after big wild swings over the last 48 hours on the back of the greek news. we saw a big rebound and that confounded many analyst expectations and we're seeing a little bit of selling. european markets looking like this. ftse 100 is down by 0.9%. the xetra dax also down by 1% after falling. the worst decline since 2011. we're still pretty nervous about the situation in greece. luxury stocks under pressure on the back of a downgrade from bank of america merrill lynch.

>> what does this mean for u.s. futures? they're managing to buck the trend pointing to a positive open up 65 for the dow. up 16 for the nasdaq up about 7 points for the s&p but of course this is also a bounce back from wred's u.s. trade which is the worst since october 2014 and from the s&p and nasdaq since april 2014 and was the worst trading at a of course this calendar year. that's why we're looking at a little bit of a bounce back in u.s. trade today. >> let's look at bonds. this is telling the story for us at the moment. we've seen yields in safe havens like germany and the u. s. and we've seen yields rise with greece in particular at 15.4%. that 2.3 and 2.4% respectively that's clearly not pointing to all out contagion across the

euro zone as the yields did suggest back in 2012. so things are much worse but not all out collapse. 2.32% and that's the most of the safe haven bond buying. let's have a look at commodity rates as well. oil prices relatively stable. not too bad at the moment. 58.4 for wti. it's just below 60 again. not much reaction in the gold price. it's been a little bit soft yesterday. a little bit soft today. 1176. still below the 1200 level. >> let's get you an update on greece. the greek government has cancelled a press conference which was due in the next 30 minutes amid reports of in fighting among members. let's get out to julia. it sounds very chaotic. >> absolutely. and the plot thickens.

remember when that referendum was first called and we were all going why did he do this? was it to bring the hard liners in the party into line? was it to threaten the creditors and to try to make them bluff? well, as you just mentioned we had reports of fighting within the syriza party. in the last few moments there's now reports in the greek press that alexis tsipras is going to make a further counter offer and that he's willing to fly to brussels in order to restart negotiations. we have no confirmation of this. there's bound to be noise as we approach the taed line tonight but the speculation in the greek media is right. my official thoughts were so the key question now is was the supposed call to alexis tsipras in the early hours of this morning the final, final, final proposal or the offer on the table and is this his final, final, final reproposal and the

speculation was this is the last inching backwards they'll allow. who knows at this stage but i think there's now seemingly intentions to reach a deal and they're looking ahead toward the referendum and thinking you know what given the comments that tsipras made last night about re-signing if there is a yes vote there could be some mps that at the end of this week don't have a job anymore. interesting way of bringing your hard liners to heel if you want to do it. >> julia, thank you so much. thank you for trying to clarify as much as you can. >> the deepening crisis in greece someone of the hot topics on the sidelines of the fun forum international in monaco

where the world's leading asset managers are giving their view on how to invest around the current volatility. earlier nancy asked if a grexit could turn into funds that have exposure to greece. >> people are now almost expecting it or expecting it could happen because the referendum now is really and in out referendum rather than voting on the propoelzs. >> do you think that creditors have done the correct thing in sticking to hard line with greece? >> yeah i think they have. i think they had no option really because they're worried about the effect on other countries. it is a pretty hard line though. >> let's get back out to nancy in monaco. nancy. >> thank you. he was playing down that it's an actual drama. he said i wouldn't go that far. i'm joined by the ceo.

thank you so much for being here. i want to start off with the developing situation in greece. how concerned are you by the latest develop lts and how are you advising investors to move around the situation? >> i think i would say we have controlled caution about the situation. it's not a surprise. this thing has been building up for the last three years and you could say even from the beginning of the euro it was going to be an area of concern but it seems to us that the improvement in the financial architecture plus the fact that it is a relatively small problem at the end of the day. it should be a manageable problem. it will come down to execution but it should be manageable. >> we've seen another dip. some suggesting we're starting to look at a buying opportunity. do you agree with that?

>> yes, it is a buying opportunity but it could be an extended one and with these situations when you can't say exactly what's going to happen over what period of time then you don't need to be too greedy too early. so we have had a certain amount of augs early and had extra liquidity. the obvious place to look will be in the areas affected in the markets but are not really at risk and i think those areas will be seeing those. >> i think some of the financial sector, the prices could be effected and the underlying businesses aren't necessarily going to be effected by it. something like ubs and wealth management which is not in the center should be vaesing.

>> two other big risks is one being the fed future rate hike coming in the next few months and a lot of concern now around china. some stabilization today. do you think we could see further pressure on chinese equities? >> yes. i think the chinese-asia market is a bit of a casino at the moment and it is closed. it is not something that can cause huge financial risk but i don't think it has particular contagion risk because of those factors. the underlying economy in china, is more exposure through corporate sector and that is still we're seeing a down toward trend in growth and authorities try to balance out between growth and reform. that's going to continue to be a very confusing picture in china for the moment and will probably move over into the local market but the local market itself is really a local concern. not something that should really

affect global investors that much. >> finally, other concerns about valuations in the u.s. equity market. where are you investing in the u. s. and where should investors be paying attention to? >> the u.s. market does look more expensive than anywhere else. it always looks a bit more expensive but even under relative terms it's looking expensive so that is not a great starting point for investors. one is financials so in some of those areas you can still see on a pe basis if you're careful. and you can see energy. you have negative momentum in the energy at the moment but if you take a longer term view there could be some there. >> fantastic. thank you so much. and as you can see here a lot of risks hanging over the fund forum here in monaco but plenty

of opportunities as well. coming up we'll be speaking to to the investec asset management ceo about those opportunities. >> thank you for that. let's take a look at today's other top stories. celgene is investing in juno therapeutics. they buy a 10% stake in juno for $93 a share. that's nearly double the closing price on monday. the ceo will be on squawk box today to discuss the deal. that's 7:15 a.m. eastern time. >> in other news microsoft is handing over control of its display ad business to aol. the company slimming down it's money losing online operations. microsoft will focus more on its growing search ad business through it's bing service and displaying maps instead of generating maps themselves. microsoft won't say how many

jobs will be cut but reports say around 12,000 jobs. microsoft in germany higher by 0.6%. >> still to come on the show sharp losses for shanghai stocks this month. but stellar gains today and still up over the first half of the year. if you have the stomach to invest in china, stay tuned as we break down the moves.

welcome back. u.s. markets set to bounce back after the s&p and dow have the worst day of 2015 yesterday. the greek government cancels a press conference amid reports of in fighting among members and it's declaration day for new jersey fwov jersey governor chris christie as he prepares to announce he's running for the white house. >> it is the last trading day of the first half of the year t quarter, and the week. let's give you a run down of what to watch this trading day. it's not the final day of the week. it's the final trading day of the month. >> i wish it was friday. >> i wish it was prid too. anyways, let's get back to your agenda today. the monthly s&p home price index is out at 9:00 a.m. eastern while u.s. home sales are range bound. prices continue to clyle in our forecast to rise more than 5% in april. at 10:00 a.m. we get june

chicago pmi which tracks midwest manufacturing and june consumer confidence which is expected to rise from the previous month. the new york fed president and james bullard are speaking today. they report earnings before the opening bell. >> now trading in asia with shanghai composite ending the day up 5.5%. this as the index posts it's worst month since june 2013 amid investors fears of a stock market bubble. let's get out to sri in singapore with an update for us on asian markets. >> friday is is when we've seen intense volatility going on previous track records and that was really the order of the day for the past month but if you take a step back and assess how shanghai listed a shares have performed over the first half of the year as we hit the halfway marker it was very strong. up by almost 30% which makes

them the strongest performing asset class. whether that's going to continue the second half is probably debatable given the fact that we have seen this intense volatility. i think that's going to continue to permeate to the performance in the second half of the year and many people believe it's compromised where we see the 20% correction. be that as it may we have seen a number of supportive measures announced by beijing. we saw the market down by 4% and reverse those to end strongly in positive territory. high leverage how volatility. broadly for the markets over here confidence. we grind on especially as we

get a no vote for the greeks. >> still to come on the show if some of your passwords are the word password, you're not alone. but our next guest is going to tell us why it pays to be original. so not 12345 either. >> is your password password? >> no. >> let's try it. >> we're back in two.

tell us why it pays to be

now the world gets extra time today. an extra 1 second will be added to computer clocks at midnight gmt. that's 8:00 p.m. eastern time. it's needed to keep the clocks in sync with the average time the earth takes to rotate around the sun. there are some concerns about adding that extra second. the last time it was added in 2012 it caused the website to crash as well as glitches in the servers for reddit and linkedin. one extra second. what are you going to do with it? >> in our job it's important because they usually count you down, and then it's a hard break and you're cutoff. so i'd love an extra second every single day on this show because we have so much to say. >> that's a good point. but it's not like we really hit it bang on the right second every day anyways. >> i do. not you. >> move on before you expose me further. >> the u.s. office of personal management has temporarily

shutdown a program used for background checks on government workers. the agency was hit by a massive cyberattack earlier this month. suspected to have been orchestrated by chinese hackers and is another in a series of high profile breaches highlighting the increasing importance of data security. joining us now is emanuel, ceo at password management company. thank you for coming in. what do you do? >> we hope consumer and businesses manage the many passwords they use every day in their life in the digital world. >> how is that different from your competitors? one of thelda have recently been hacked. how do you make sure that your accounts don't get hacked and you offer that security to your customers? >> think about banks, you know? banks can be robbed. it doesn't mean people keep

their money at home under their mattress. passwords are the same. the way to have different passwords on every website is the best thing and almost the only thing a consumer can do to be protected today during the digital world. >> in terms of new passwords in people's minds there's a balance between ease in terms of remembering them, in terms of typing them and the level of security you get. where are we? are people far too close to that side of the balance? >> people are. there's a reason why the two most popular passwords are password and 123456. but things need not be this way. we built something incredibly convenient but also very secure because on every website you can have a completely random and unique password. >> that begs the question should we still even rely on passwords because we know that so many of them are being hacked? one company we had on the show

or talked about recently they used emojis, used biometrics. should we do away with traditional passwords? >> we will eventually and it's not clear what will replace passwords. there's a lot of misconception about biometrics because if your finger prinlt fingerprints get stolen it's hard to change it. a password at least you can change it. >> if we employ your services how do you help consumers? how do you protect us more? >> we'll make it easier by doing something very simple which is you do not have to come up with you don't have to type you don't have to remember or change your passwords. we automate that process for you on every device and every account. >> thank you for joining us. >> my pleasure, thank you. >> much appreciated. that's the ceo at password management company dash lane. >> let's take a quick look at

markets. european markets today as a result of the worries about greece and of course we're still seeing the dax down by more than 1% but that's pretty moderate. do you know what actually it's improved quite a lot. the xetra dax is just below the flat line. only off by 0.1%. i wonder why? maybe there's a lot more optimism about greek deal being struck and there were press reports suggesting that mr. tsipras might make another counter offer and the euro dollar still down by around around two-thirds of 1%. >> yes, indeed a strong rally over the last 20 minutes. still to come here on worldwide exchange the gop presidential field expected to expand today as chris christie kicks off his campaign. can anyone catch hillary clinton? we'll break it down coming up. >> we'll leave you with a look at how the futures are trading

ahead of the open on wall street and they too are looking like a big bounce back. the dow jones seen bouncing back by 130 points. we'll be back in two.

welcome to worldwide exchange. i'm carolyn roth. >> i'm wilfred frost.

here are your headlines from around the world. >> u.s. futures indicate a bounce back after the dow and s&p have the worst day of 2015. european equities shaking off early losses. >> the drama continues in athens as the government press conference is cancelled amid reports of fighting within the syriza party and calls from the opposition to cancel the referendum. >> pharma m&a mania continues as they take a $1 billion share in it. >> change of direction in microsoft as it sells off it's mapping services to uber as it slims down it's operations. let's bring you the latest on the unfolding greek situations as carolyn mentioned europeans markets have had some losses. that is because of the greek

daily is telling that tsipras told brussels he is considering the latest proposal. he was reportedly calling late last night to propose a new deal and it now seems according to the greek newspaper that he will go to brussels to discuss that further. what has this meant for markets carolyn? >> let's take a look at u.s. futures. we're expecting to see a big rebound after yesterday's very very steep losses. remember, yesterday, we had a really rough day on the u.s. markets. the worst day of the year. the u.s. stocks tumbling and wiping out the gains for the year. the dow slumping and closing out of five months low but today again we're looking at some of those losses being recooped. seen higher by 130 points. s&p 500 taking fair value into account and the nasdaq could bounce back to the tune of 31 points. also want to show you how european markets are doing now and as we mentioned before we've seen some of the losses being

cut back. the xetra dax is down by half of 1% on the back of the reports that he may be flying back to brussels to talk about that proposal again. still off by 0.7% and now in the green up by 0.3%. >> let's just have a quick look at bond yields. what are they doing at the moment? there we go. ten year in germany. 0.785. the ten year in pain 2.36% now this is very interesting if mr. see passtsipras decided there's still time to negotiate the deal. it strikes me as serious flip flopping on his plot. he was trying to cover his tracks and if he's considering talking again he's probably realized how serious an early decision he made. >> he lost all credibility, hasn't he? the flip flopping was major. even before the events of the last five trading days it was absolutely huge. he doesn't really have the time.

in a couple of hours time they will be defaulting on their payment to the imf. the big payment will be the one 20th to the ecb and that's worth i believe 3.2 billion euros but they're still defaulting on the payment today because there's no way they can strike that deal today and that would still have to be ratified by a number. >> let's bring up a point from squawk box earlier today, it's almost impossible to set up a referendum in seven days particularly in a country that imposed capital controls and on the verge of chaos breaking out at the moment. on top of that they're going to have a deal ahead of this question that's going to be changed and altered based on the back of the deal. it's completely absurd what he's put them in and originally it was politically motivated to try to cover his own tracks and perhaps he's realizing how serious things are. let's bring in annetta live in

frankfurt and has reaction outside of the ecb. >> well of course if that is the case the ecb will be more likely to reconsider it's stance going forward and of course as we know the immediate financial fortune of greece is actually hinging on that bank behind me because we know that 30% of the banks liquidity is depending on liquidity from the european central bank. so in other words, if the european central bank is not going to extend it's program at some point in time they cannot reopen their banks. they are literally bankrupt. so i think a lot of that depends on what happens in the mitt cal process. they're quite wise to wait and

see this week what's going to happen in greece whether perhaps we see an agreement before that referendum but at the same time we also had him now say that the ride to that referendum is something they owe to the greek people so the question mark is whether we get the referendum anyways it's too early to have a clue on what's going to happen next but what is sure is that the ecb will stay put when it comes to it and if the greek banks stay closed this week that should actually safe guard at least the financial system for now so it will be super interesting to see how it pans out during the course of this week. with that, back to you. >> thank you for that update.

the stoxx 600 down 0.3%. switching focus, new jersey governor chris christie will announce today he's running for president joining an already crowded field of republican candidates. he'll make the announcement at 11:00 a.m. eastern at his old high school where he was class president. he's expected to reintroduce himself to the country after falling from favor from the republican party. he has been dogged by scandals and plummeting popularity in his own state. joining us is ben white. chief economic correspondent to discuss this further. a very good morning to you. thank you for joining us. now he's going to be one of the 15 or 16 candidates but his popularity has fallen a long long way over the last 18 months. has he got a chance to win the nomination? >> you've got 14 candidates in now with christie. we'll have two more to get to 16 by the time the summer is over. so in that big a field anybody has a chance. anything can happen. he has a long road to go though. you mention his approval rating.

i think it's around 30% in his own state, new jersey voters don't really approve of him right now. he's banking on the fact that he's a good retail politician he can sell himself as a conservative with solutions to the problems we have right now but he is a major long shot at this point. i will be amazed if he gets on the stage for the first debate. you have to reach a certain threshold to get there. i'm not sure he gets there. >> let's touch on one of the points you mentioned. he's very blunt and direct. he's a retail pleaser. given how many candidates there are, does that help him at least get a bit further along? because people will certainly take note of what he's saying given how blunt he is? >> he can cut through a lot of the noise and he's hard to ignore and she good in those rooms and he may leapfrog over some of the other candidates but

you have a trio of real front runners in jeb bush and scott walker and marco rubio. christie has a long way to go to get ahold of those folks and they run in the same political lane he establishment, wall street mainstream republicanism that christie wants to get into. i'm not exactly sure how he breaks through. he's tried to be the policy candidate it's a tough road for him going forward. >> i want to switch over on the democratic side. i'm sure you saw that wall street journal article saying joe biden will run. he's still railroad much mourning the loss of his son but do you actually think there is a possibility that he might run? >> i think there is a possibility.

he long wanted to run for president. he put aids around him in recent years that would indicate that he is considering that. obviously we have now reported that family members are urging him to make that run. it's complicated given that hillary clinton is such an overwhelming favorite for the nomination. would be historic first woman president. leads in all the polls. so biden would have a tough road to overcome her. but i think in his heart he would like to run and the chances are probably 25% that he does. he's a great politician. he'll be somebody to reckon with. >> one further point from me. i was wondering whether you thought the supreme court has done all the candidates, particularly on the republican side a favor by getting issues out of the way on obamacare and gay marriage. have they done a favor there for the candidates? >> i certainly think so on

obamacare republicans didn't want to run as those that took away health care. they had a sigh of relief when the supreme court upheld those subsidies. gay marriage is a little bit more complicated in that all of the republican field is on record in opposition to same-sex marriage and now they're in the awkward position of saying whether or not they would support the supreme court. mike huckabee the former governor of arkansas has said i would ignore the supreme court rulings on this as president and that kind of nullification might give people some pause. if you're the president you're supposed to uphold the supreme court. on palm balm care it makes it easier for them. on maygay marriage it's more complicated. >> nbc announced it will end it's association with donald

trump over comments made about mexican immigrants during his opening campaign speech. in response to the come mens nbc says it would no longer air the trump backed miss usa and miss universe pageants. do you think that's the final nail in the coffin for trump? >> i don't know trump always comes back one way or another. declares bankruptcy and returns. but obviously this is not the way he wanted this to go. that's part of the problem when you don't prepare a speech and don't read off a teleprompter you wind up saying weird and potentially offensive things. he's not going to be president of the united states. he may make it into the debates but his big properties are tv properties and his brand is getting himself on television so a situation in which he has talked himself up on tv is very bad for donald trump so i think he would like to rethink not

doing that speech you know off of text and just ad libbing it. >> thank you for joining us. ben white joining us there. still to come greece may be the current flashpoint for global markets but concerns are growing about the next potential debt crisis in puerto rico. details on that coming up after this short break.

>> puerto rico is just days away from a potential historic default on its own mountain of bills. landon has all the details from cnbchq. >> good morning to you. puerto rico's governor went on television monday evening reiterated the u.s. territory can't repay some $72 billion in public debt. that's a greater sum per capita than any u.s. state. he's calling for the island's residents to share in making sacrifices. his plan includes cutting the minimum wage and hiking sales tax from 7 to 11.5%. he'll also see concessions from some if not all of the bond holders. reports say that may include deferring payments for up to five years. in his address he says the only way we can climb out of this is if we come together and we are

willing, bond holders included to assume shared sacrifices today. he spoke hours after a report painted a dire picture of puerto rico's economy. they have about $9 billion in debt alone. it's in talks to avoid defaulting on a $400 million payment due on wednesday he is currently prohibited under u.s. law. he says the island is insolvent. the constitution requires it to make debt payments before paying for any government service. a potential default could greatly impact the u.s. municipal bond market. many stand to lose money. bonds are exempt from federal, state, and local taxes which made them incredibly popular to investors. on monday some bonds touch record lows and they downgraded

their ratings. he has set an august 30th deadline to come up with a restructuring plan. the u.s. is not considering a federal bailout for puerto rico. back over to you. >> thank you very much for that. now celgene is investing about 1 billion in juno therapeutics. they'll pay up front and buy a 10% stake for $93 a share. that's nearly double the closing price on monday. the ceo will be on squawk box today to discuss the deal. that's 7:15 a.m. eastern time. >> apple is officially launching it's new streaming music service today. the company is hoping that some of the more than 600 million people with itunes accounts will sign up. the questions remain over how many will stick around to pass the free trial. it costs $9.99 a month and has a live radio station with channels

programmed by celebrity d.j.'s such as elton john pharell williams and drake. >> i love a bit of elton john. microsoft is handing over control of its display ad business to aol and selling mapping technology to uber. it's slimming down it's operations. microsoft will focus more on the growing search ad business and displaying maps on windows devices instead of generating maps themselves. they won't say how many jobs will be cut but reports say it's about 1200. let's have a look at price action in microsoft which is coming and there it is. it is up 1% in frankfurt today. before we go to break, let's remind you of the headlines. u.s. markets set to bounce back after they have the worst day of 2015 yesterday. the greek government cancels a press conference amid reports of fighting and it's declaration day for new jersey governor

chris christie as he prepares to announce he's running for the white house. worldwide exchange back in two.

>> got to be very careful about

how we use terminology here. will the greeks reconsider juncker's proposal or propose their own terms. even if those two things match it's all about everybody selling a victory here. that's one point to make here too but of course what we heard this morning is that significant talks within the government themselves reports of this infighting. one member doesn't want him to remain in the government. all sorts of concerns because if you go back to last night, alexis tsipras said that if the greek people vote in this referendum for yes he'll re-sign. there may be more hard liners in particular reconsidering the fact that they may not have a job in a week's time so we can question what alexis tsipras did and for what reason. was it about bringing the hard liners in the party to heel? interesting that we have a break through. it's all speculation in the

greek media and that alexis tsipras could go to brussels as late as today to try to sign an agreement. it was all up in the air. there's bound to be noise as we tick toward the deadline but interesting if we have a potential break through even at this late hour. >> are we suggesting he would scrap the referendum or are we still intending to have it even though there's details up in the air ahead of the question being asked to the greek people? >> great question and what we have heard actually this morning is that he said that it's the right of the people to have this referendum. you have senior members of the government saying this referendum must go ahead anyway. remember if you go back to some of the readings it's not that clear when you add that condition of austerity just how the people are going to vote. earlier in the show we had a

party, the mp saying to us she believed that the people could vote no here. so goodness knows actually a, what will happen in this referendum, what will happen to this government beyond that but it does look at this stage like perhaps we have a break through on a deal but at that point does he decide to call off this referendum or get pressure within it's own party to continue to do it. i have no answers for you. fast moving story and we have to see how this plays out over the next few hours. it could be a real tight deadline on the end of this current extension to the bailout deal. >> tlaung for that. >> let's take a quick look at markets. it's the end of the second quarter. the dow jones falling 2% and that was quite a big move to the down side as a result of the greek drama but what has it done year to date? down 1.3% and with yesterday's

losses we saw u.s. markets wiping out their gains for the year. let's have a look at the s&p and how it faired yesterday. off for the year. it's done absolutely nothing. it has flat lined. why is that? in part because earnings were worse than expected. we saw the drop in oil prices and the strength of the dollar and concerns about the fed hike. quick look at oil prices. with wti this morning, higher by 0.6%. year to date that's up 10%. >> indeed carolyn. now let's have a look at the other stories of h-1 and there's no better security to tell the story than the ten year german bund. an extraordinary year to date rally as you can see. 45% but at the start of the year we still saw yields compressing very much off the back of the european qe story. a rise in the price in the yield. of course starting back at the start of 2014. such to the point that we got to

almost 0% on the ten year bond and since then a massive popping of that european qe bubble and a big correction in yields as you can see but in the grand scheme of things at 0.78% still very low yields. let's have a look at vix. down from year to date but significant move in that as well. euro dollar rallied similar to ten year bond seeing the dollar rally march a bit of a direction but in the grand scheme of things still a significantly weak euro. >> what's going to happen next? >> i guess the key will be the jobs report and what the fed will do on the back of that. >> absolutely. we'll bring you details on that for the next half of the year. that's it for today's show. thank you for watching. squawk box is coming up next.

good morning. on the verge of default. at least with the imf. greece rejecting an 11th hour debt deal as a critical payment comes due today. microsoft making moves. the company giving it's display ad business to aol and maps generating technology to uber as the tech giant refocuses on its businesses and working for a living. president ball balm plans to make nearly 5 million more workers eligible for overtime pay. it would be a huge increase. we're going to talk about it. what it would mean to retailers especially. it's tuesday, june 20th 2015 and squawk box begins right now.

>> live from new york where business never sleeps this is squawk box. good morning everybody. welcome to squawk box here on cnbc. i'm becky quick with joe kernen and andrew ross sorkin. if you're running late today the universe is working in your favor today. you'll get an extra second. a leap second will be added today at 8:00 p.m. eastern time. this is being done to make sure that the atomic clock is synced with the earth's rotation. athens needs to make a debt payment to the imf. it is not expected to do that. the country's existing bailout program also runs out today. overnight european commission president jean claude juncker made a last minute offer to greece but the greek prime minister alexis tsipras is not