beijing can deal with the challenges but fails to mention the market volatility. >> cool the rhetoric. he urges europe to work together

ahead of another summit in brussels. the commission president putting it on greece to come up with a new proposal but no deal is expected today. >> samsung's new normal. the south korean phone maker delivers another quarter of week earnings and challenges from elliott adding to the group's problems. here's what's coming up on tuesday's show. this 42 million pound mansion is decked out with a gym, movie theater, and swimming pool but how easy is it to find a buyer? we found out later. plus is a july rate hike back on the table? find out why starbuck's latest move is brewing some rumors and another bump in the road from uber's expansion plans. we have the details on the

latest city fighting the taxi app. >> let's have a look at oil prices. brent and wti steadying after trading at the highest levels for quite sometime. let's discuss that straight at the top. interesting couple of factors. yesterday was a generally risk off today. but stats out of opec as well as iran developments. what was the biggest factor for you? >> a lot of it come do you understand to positioning. remember that big spike in the month of april. a lot of people say it was driven by hedge funds. by macro hedge funds which were buying oil because they wanted to hedge themselves against the yields. that was the story we saw in april. maybe this is a big reversal in

terms of positions but i put the question out to petro matrix and they responded oil price versus to worry more about it iranter than grexit. >> we have known about iran oil coming back online. the potential impact on supply-demand equation so the fact that the market is reacting this much is some what interesting. it's also interesting to see that it seems like out of all asset classes we saw the biggest reaction to the greek vote in the commodity market. oil prices moving down 8%. a lot having to do with the stronger dollar and weaker euro. >> but if we bring in the data on opec reports coming that it was the highest monthly level since august 2012 coming out of opec production levels. that's the biggest factor and it was a really outsize correction but since march we have been relatively steady at those level

which is were a marked improvement from the march lows and yes this is a really surprising level of correction but they have been holding there and lots of bad news out of the marketplace and that's where we had it. >> that's why we're seeing the oil and gas sector being the worst decliner. big declines yesterday. >> we want to hear from you on this. what do you think caused the sharp declines in the price of oil yesterday. get in touch with us by e-mail or via twitter @cnbcwex. the pressure is increasing on china after stocks fell in the red despite stimulus measures over the weekend. comments have been cited for the negative sentiment. he avoided any mention of the

stock market volatility itself. shanghai has seen a major sell off over the last three weeks with stocks shedding over 25%. meanwhile, more than 200 chinese publicly traded companies were halted for trading today according to state media. that's in a move to protect themselves from the stock market volatility. let's check in on how markets are doing now. i get the sense the more they're doing the less it helps. >> yes. i would argue the same. it was always going to be marginal short-term in nature and let me explain why. in terms of the overall impact we're talking about 120 billion. that's the sum beijing mandated the brokerages to buy back in terms of the market shares and average turnover last friday

being case and point, 650 billion. so this is the proverbial drop in the bucket. it's only really going to have an impact on the margins. today was case and point. it hasn't really vanquished the volatility in the market. we've seen another session today on equities. a very mild intraday swings. we were down by well over 5%. degree of stabilization at the close but still negative at the close. there was some buying off the index. some evidence of bargain hunting but it wasn't enough at the end of the day. elsewhere in asia it was a reasonably robust day. strong gains in australia and strong gains on the nikkei as well and that's imemblematic that contagion risk is limited.

many don't think it's likely that we'll see a domino effect ripple through the rest of the peripherals in europe. >> back to you now. >> thank you for that. joining us now is tim from harris capital associates. all eyes on this extraordinary sell off over the last three weeks despite various stimulus measures. i wonder if there's similar fears to be had in the economy itself. if they are that's much more than global markets. >> i'm delighted to see that chinese policy makers aren't saying anything about stock markets or trying to second guess them. that's good. actions do speak louder than words and we've seen explicit actions in terms of reserve requirements for the banks and interest rate policy and improving liquidity for the markets and in particular lending or margin requirements. if you stood back and said well this market is a very volatile

market. what happened to it last year is roughly 100%. so it is in that context. having said that it's the last man in who is the guy that's getting very hurt and this is what policy makers care about. somebody comes in and decides they have a trading account and love these markets and they're getting burned so the margin lending requirements are very important here. if real people start getting hurt and this is confined to the cities and people that want to play in the market. not all of them have the capital to play in the market and if that does spill over then it's the next big challenge for policy markets. i don't think it's quite the inflation scale we've had or real estate issues we've had but at a time when china is trying to shift to this path of sustaining growth somewhere near 7 if not at 7 this is unacceptful. >> the problem is really timing the mark and calling the top and

the bottom. i'm not going to ask you where we are in terms of the china markets but the problem is only a quarter of the margin buyers so far have been pushed out. that would tell you deleveraging is here to stay. the question is how long. >> a lot of folks are going home thinking one more bad day because it's the animal spirits becoming bare market behavior. that's how these things rollover. look outside the china market where the hang seng trade, global markets, we're talking about 11 or 12 times forward earnings and these are the red chip stocks so those companies which we all know as international investors, these companies we think are stable. when you talk about 200 shares on the local market being

suspended from one day to the next we have to wonder what they are and what animal spirits lead investors into them this is where people are getting hurt. it does blow up. we have to look carefully at that. people will be tipped over from one day to another. if it blows into a macro story then it becomes a bigger issue but that's why these issues of liquidity and the margin lending support are coming in and chinese authorities acting. >> a lot of talk about when it pertains to china. now speaking of china, technical analysts say there's about to be a big change in the direction for chinese stocks. to find out how and see the charts head to cnbc.com but let's get a look at how european stocks are trading. >> we're one hour and 10 minutes into the trading session on this tuesday. yesterday we saw the big sell off. by big we mean in no way panicy

or disorderly but a sell off in the tune of 1.2% but we're bouncing back a little bit. higher by 0.2%. the individual markets are looking like this. the ftse 100 slightly under water and this is in part because oil and gas is putting pressure on that index given the big drop in oil prices overnight. the cac 40 just holding on to the flat line. in terms of the bond market we saw u.s. ten year yields at a two week low in yesterday's trading session on the back of the greek news but it's interesting that bunds didn't do too much. at 72 basis points and italian yield at 2.33%. nowhere close to the 3% levels that the ecb would find stressing. in terms of the currency markets, we're seeing slight weakness in the euro dollar

pair. we're currently back below the 110 handle. we're lower by 0.6% and also keep an eye out for cable 15533 ahead of manufacturing and industrial output data. >> still to come on the show he's a sharp tongued politician that had enough of the euro and austerity. after the break we hear from grillo on why he thinks a grexit is the only option. worldwide exchange is back in two.

it's up to greece to explain how the crisis can be resolved. this is a message from the european commission president echoing comments from angela merkel last night. he tempered expectations for a deal today and urged the greek government to tone down it's rhetoric. what can we expect from today's meeting? let's jet out to jeff live in brussels. >> good morning to you. expectations are rock bottom here but maybe that's the point. maybe if you set the barlow enough any progress in talks may be seen as a positive given the frankly cold atmosphere that exists as we come into these

discussions. euro zone leaders are not happy about the referendum. jean-claude juncker made that point this morning when he said the greeks were mislead. they voted on a policy proposal that no longer existed because the second bailout program already expired on the 30th of june. he also used his opportunity in parliament to say the greeks should stop shooting from the hip. they should stop the outbursts and stop calling the commission terrorists. so in this kind of atmosphere it is hard to see us seeing anything like a deal per se today or over the next few days. it remains to be seen what the greeks will turn up with. we know there's some desire here to see significant structural reform proposals but the greeks may want to put debt relief on the table and i don't think there's an appetite for that at

all at this stage. back to you. >> i'm interested to hear if you think we'll get a deal today. the two sides were never close together in their reasoning in the first place and as far as i can see, he's the only man out there really supportive of reaching a deal. so surely we're just back to square one. it antagonized things. it was a no. it wasn't a yes. >> i disagree to an extent. i think if you go back to that thursday where negotiations were taking place in the morning, it did seem if you believe in what we were told that we were only 600 million euros away from an agreement and the key sticking point was the taxization on the islands and the issues of pensions. so those were the stand out issues. it was a question of numbers and it did feel like we were -- do you remember that phrase? inching toward a deal. that was one of the comments used by one of the commission

presidents and it all fell apart and in the evening the hostile language began and suddenly we had the call for the referendum. i wonder if the greeks will try to take us back to that point and come back with that set of proposals where there seems to be room for progress. the problem they'll have is people feel bitter and bruised about the fact that the referendum took place at all and there's been a suggestion that the greeks will now have to do much better than the last set of proposals where there was almost a narrowing to the point where an agreement could be achieved. so we wait and we watch. but as i say, the backdrop to these discussions today does feel rather frosty. back to you. >> well frosty over here too. jeff, thank you very much. now over in athens incoming greek finance minister says he will seek a sustainable answer to the greek crisis as he prepares to attend his first euro group meeting.

>> he resisted and says that this country deserve deserves more and we cannot accept an unsustainable solution. ordinary people working people the middle class, those that lost their business said they want to trust a government that will bring us a sustainable solution. >> some comments in studio i might not have gotten the pronunciation of that name right but jewel kwaulia i can say she's live in athens. >> just to quickly follow on what jeff was saying. the numbers being thrown around 80% of the way there. just 20% left to agree as far as the noises we were hearing from brussels a week ago. just a few steps. they were the red lines, the pensions, the debt issue. but part of that negotiating team is now the finance minister. the belief is, look, they were trying hard to reach a deal as late as friday night. can this man be crucial to the making of this deal.

i'm reserved about that because i believe he's more in line with yanis than other options he could have gone for but you were talking about the difficulty surrounding the as a result of this given the question. one man is grillo of the five star movement. he wants to see a referendum on the euro so more specific than what we got here in greece but i asked him because he was here this weekend to support tsipras, whether he believes it's a turning point not just for greece but perhaps more broadly for the euro zone. >> translator: they can't find 1.8 billion euros to save a country for default. what is europe if not for sharing and solidarity among difficulties. that must be shared.

everything must. we're squeezed within treaties signed by people mentally ill. they signed us up inside a blocked fiscal system. if you want to invest you can't. municipalities have to default because they can't invest because the constitutions impose a balanced budget. the 3% debt to gdp ratio, spain, france, they exceeded it. germany did too. that means it's been rigged the last 20 years. it's a trick. we're inside this trick and we can't move. >> i know that you believe in power to the people but do you think this referendum actually helps greece get a better deal in europe or do you think there's still a risk that they're actually forced or ultimately have to leave the euro zone? >> the question is quite difficult. in the short-term the referendum will be a great sacrifice for greece but in the long-term we'll have these annoying alarms but this is normal.

we're living in a time of panic. alarms are normal just like the conversation of ours. while we're talking someone is committing a robbery and robbery is at the center of global business. robbing countries. how does greece come out of this? in the long-term they'll have to confront an exit from the euro. >> would italy be better going back to the lira and greece be better going back to the drachma? would they be better doing that now. >> translator: with central banks that have exchange rates under control the ecb could do that. each one with it's own currency with the ecb controlling fluctuates in the exchange rate. i'm not a economist. i can tell you what they say. they're saying the system isn't working. i'm saying it with my soul. i say it with the common sense of a comedian. we're dealing with a crazy state of mind. this isn't a financial economic situation. you have to look at the reality

through the eyes of a psychiatrist. >> grillo creating quite a few come mens on twitter after i posted this interview. he is a colorful character. people are saying he is a clown and comedian and he has extreme ideas but in italy his party is the second largest party. he gets almost 23% of the votes out there so in that case he is relevant also toward the idea of what this referendum showed us here. if you add his party support you get under 40% of the population pushing back on the idea of the euro. this is a very important message and issue on how creditors deal with greece and negotiations over the next two days. back to you. >> thank you for now. let's discuss more with tim harris who is still with us on worldwide exchange. for me greece has been the surprise party that never ends. no one thought greece would miss the imf payment. they did. no one thought greece would vote no on sunday's referendum.

well they did. now there's a higher likelyhood of exiting the euro. do you think it actually would happen? >> it should happen. whether or not it will happen i don't think is an economic decision. the ecb looking to brussels and frankfurt for directions. how they manage the greek banks through the crisis in the short-term so economic decisions are running secondary to the political might of the eu euro area management right now my feeling is whether greece is within or without the area you look at the issue of contagion and the extential debate. in my view what doesn't kill you makes you stronger and there's a whole bunch of folk across the euro area making sure that the ramparts, the wars of the core members of the euro area and i'm not just saying the core six,

i'm talking about the 18 greece is welcome to join if they can play by the rules and get in there but going forward from here, if markets can get their heads around the fact that the euro area as a monetary union and we're nowhere near a political union here if markets can get their heads around the fact that the issues of the euro area have been sured up in the longer term then we have a case for moving forward and markets can move positively. >> doesn't it suggest that the contagion risk is contained? well, we'll see. >> there's so many flashpoints. what's happening around some of the members, the markets are clearly pricing the worst case on greece right now. what is interesting is you look at bunds, do you remember ten year bund yields?

got down to 7 basis points and they have rallied. we're now trading 70 up now so we're not quite seeing that dash for cash or safety we've seen earlier in the summer so it's almost as if -- it's almost like trying to repair a bad marriage. you're thinking what comes after this. sometimes you have to say hey, you know. >> i agree that this is a political decision and not an economic one as to whether or not we get a deal or not but on the political front can a lot of the national leaders that will all have to approve a new deal can they survive domestically? in germany we had gabriel also change his tune. if they now cave in to greece this time around do they just lose all support back home? >> well his agenda is a very personal domestic one. he has two years to repair his form and personality and position in french politics and

he has taken unique position among europe and the germans are standing full square among each other. you'll find core europe the economically strong members of the eun ron are going to be standing there with them. after all, these guys are all in big time for greece and if there's debt forgiveness in the medium term they're going to take a hit. they can afford it obviously but that's where they don't want to go. the flakiness of the euro area -- the issue is going to be fascinating to watch later in the summer. i can't call greece. how are we going to call that one. >> i don't think anyone can. we're running out of time but thank you for coming in today. tim harris. and still coming up on the show iran nuclear negotiations stumble at the finish line but is a deal still in reach? we go out to tehran with the

latest after the short break.

oil prices steady today after wti marks it's sharpest one day drop in three months yesterday. in europe commodity stocks among the worst performers with france's technique plummeting after it slashes it's work force. >> the pressure piles on chinese

authorities after it's stimulus fails to stem the stock route. beijing can deal with the challenges but fails to mention the market volatility. >> cool the rhetoric. jean-claude junker urges greece to come up with a new proposal but no deal expected today. >> samsung's new normal. they deliver another quarter of weak earnings with slowing smartphone sales and challenges adding to the group's problems. >> let's bring you some breaking u.k. data. so we've got some manufacturing data which is weak. we have plus 0.6% month on month and plus 1% year on year. so, in fact the monthly number is a bit ahead of expectation where as the yearly figure below

expectation. >> but industrial output beating all estimates. unexpectedly rising thanks to strong oil and gas production and on a monthly basis in the month of may output was higher by 0.4% and this confounds every expectation expectation. a drop of 0.2% and there was some expectation for a resers after a very strong april saw also very very good oil and gas industrial output so that strength is continuing. sterling dollar 15537. down by 0.4% on the day. let's move on to european equity markets. a little bit of buying after yesterday's big drop by 1.2%. the buying weakened a little bit over the course of the last 20 minutes r so. the ftse 100 down by 0.2%. oil and gas is weighing on the market. >> let's have a quick look at bonds.

buying of the german bond and the u.s. bond and selling. we have also core bonds there as you can see 2.28 just below that 2.3 level for the u.s. and the german bonds are starting to flirt with falling below 0.7 because it has seen some buying over the last week or so on greek fears. 0.716%. >> i want to draw your attention to the currency market. the u.s. dollar hitting a one month high of 9673 up about a half a percent in today's trade. the big question is does the no vote on sunday strengthen tsipras's hand in the negotiations with euro zone leaders. that's the big question. we don't exactly have an answer at this point. how is the euro treating? session lows now at 109 so right below 110 against the u.s. dollar. >> maybe we should mention the awe aussie dollar. they didn't move on rates and we

had a big slump in the aussie dollar against the green back and you have to wonder if that's dollar strength or disappointment that they didn't move. that's 0.8% in the trading session. 7438 off six year lows. >> we always get the central bank again despied the interest rate. >> they did mention china in the statement for the first time since april which was quite interesting. negotiations for a nuclear deal between world powers and iran hit a stumbling block. reuters reports they want all bah laisic ballistic missile sanctions removed. but now there's talk that the deadline could be extended for another day. >> well, that's right seema. a deadline is meant to be

tonight but that's looking more and more elusive because they're having major problems. one of the big stumbling blocks now is holding up an agreement is a dispute over u.s. sanctions on iran's ballistic missile program. iran insists that should be lifted because their ballistic missile program has nothing to do with the program but this is an argument that the western diplomats are finding hard to swallow. all the players in this negotiation were around the negotiating table until late last night. it's not clear whether they made any progress. there was a flurry of meetings again this morning but we're getting very little information about what's going on behind the scenes. what i can tell you is one of the members of the iranian delegation said that the atmosphere in these talks is good. that iran wants a nuclear deal but they're not willing to take one at any price and they're willing to go back to teheran without a deal in hand but they're still saying they're

going to negotiate for as long as necessary. the iranian delegates said that the talks may stretch into tomorrow. possibly to thursday morning. so this deadline is more and more fluid. the americans are saying that it could move. they have to be very aware of the fact that if this stretches beyond the 9th of july it's a congressional holiday and congress has twice as much time to decide on this deal. back to you guys. >> ali, thank you so much for that. now brent and wti crude prices have steadied today after trading at the lowest levels seen since april yesterday. wti tumbled nearly 8%. it's second biggest drop of the year. 3rd biggest drop in three years. as you can see today bouncing back a little bit. wti at 1.2% at 53.2. brent at 57.4. let's talk more about oil market dynamics. joining us is eugene. good morning to you. thank you for joining us.

extraordinary moves in the oil market yesterday. was iran a big factor? >> definitely but if there is a shift in sentiment based on greece and what's going on in greece and what's going on in china with their slump in equity markets and still huge number of optimist on oil market as witnessed by net long positions in brent especially. i wouldn't be surprised if after a rebound should a deal be achieved this week then we might see at least on the short-term further slide in oil prices. probably bring in the wti prices toward 50 levels. brent probably to the levels around 55. >> wow toward 50 then. we get an iran deal but how quickly can iran actually get their oil back to the markets? i know there's a big debate around that because some people

say they have 30 40, 50 million barrels in their tankers and they're floating tankers. if we get a deal they can just sail and sail. but is that really the reality? >> probably but i do remember the discussion of the lybian come back some years ago. how fast could they increase their production at that time. it's very much about the perceptions and the reality and i think that the reality might be that iran comes sooner rather than later and with very aggressive pricing. trying to get the market share to saudi arabia and other countries so we might see this effect already over the next couple of months although the real come back of the production might take years rather than months. >> isn't it strange, though that we're seeing such a

volatile drop in oil prices during what is the peak driving season in the u.s.? this is when demand is high yet we're still seeing prices move lower. >> it's not surprising because the market is not seasonal as the demand form oil is not especially high at the moment. even if it's a specialist one right now. demand in the second half of the year is supposed to be even higher and the question right now with the current slow down in china and possibility of the price increases also and probably dampening the demand increase in the second half of the year whether the demand will be as strong as expected by the international agencies. so i think we might also negatively surprise in the second half of the year with

estimates for the demand being probably revised to the down side or at least not revised to the upside anymore. this was one of the reasons why the prices rose so strongly since january this year. >> jeweugene, what's your view on gold? why hasn't it reacted more given the number of crises we've seen exploding over the last couple of weeks? >> that's a very good question. definitely gold didn't move a lot in euro. it moved a little bit over the last couple of days which it was supposed to but in dollar it was unmoved by the current one. i think we didn't see the effect of the slump of equity markets in china move into the safe haven gold. that's one reason. the second reason is that the investors are still exiting. still leaving the gold market

with shorts in gold moving to the record high levels. once the gold starts moving once the prices establish above 1200 and the fed comes with the rate hikes i think we'll have another leg of sustainable gold but until then i think it will be treading water and trade in somewhere between 1150 to $1,250 for some months but definitely we're a little bit surprised by gold being completely unmoved or almost completely unmoved by the current crisis. so not really living up to its crisis currency status. >> thank you so much for joining us. head of commodity research at commerzbank. >> we want to hear from you. what do you think caused the sharp drop in the price of oil overnight. get in touch with us and send in your e-mails and thoughts about the price of gold as our guest

was just discussing. also if you have twitter@ twitter @cnbcwex and our personal handles are at the bottom of your screen. >> the pressure on the ending market heading french oil services group techniq. the company's ceo says he expects a slow down in the sector to be prolonged and harsh as you can see shares off 8.7 period%. marks and sparks is off 1.2%. the let down for nonfood sales fall in the first quarter but not as much as some analysts had anticipated. food sales rose marginally and the company has maintained it's guidance for the year ahead. so now a strong performance by german media shares today. they sat near the top of the stoxx 600. wall street journal report of a possible merger.

any tie up would face competition. they were rejected a decade ago. we're looking at a 6 and a quarter percent rise. >> amd is cutting it's second quarter revenue and gross margin forecast as the struggling chip maker cites weak pc demand. they expect revenues to drop from the first quarter versus a previous estimate of a 3% decline. amd falling 14% in after hours trade and germany off by almost 12%. >> big moves there. and let's move on to samsung. samsung electronics earnings came in below analyst expectations as the company misjudged the initial demand for the samsung s6. declining smartphone sales are just one head wind for the group. they're locked in a legal battle with elliott over the merger of two samsung subsidiaries. lest take a look at shares. interestingly enough they're up .8%. that's samsung right in front of

you on the chart. i think this highlights how difficult sit to see growth in these saturated smartphone markets but things could turn. is the company low balling expectations so when they do report earnings they'll be able to beat. time will only tell. >> samsung has a couple of problems. first of all, a very strong korean and they're competing with the japanese yen and apple which has the cool factor and we don't know whether samsung still has the cool factor and also what they're dealing with is the fact that they want to keep margins stable. so they're not competing on volumes. they're not competes on price so they're not lowering their prices enough you could argue but maybe they want to keep the price high because they don't want to lose their status in a way. >> sure. currency as well as pricing especially with the entrance of these emerging market players. i also want to point out -- i'm sure you saw it yesterday,

reports that the apple iphone 7 is in production. let's see if that happens but the iphone 6 was so successful will that continue. >> quick work if they're going to bring it out so soon. >> true. >> it's a much bigger gap. >> yeah. >> particularly this time they brought out two. we'll see. we'll see. all eyes continue on that. reports say kkr joined the short list of bidders for the south korean unit home plus. it's already attracted interest from carlyle group and goalldman sachs. they're seeking more than $7 billion but offerers so far have fallen short. >> teva is expected to increase it's offer for u.s. rival mylan for $40 billion. they rejected an offer. mylan has been pursuing it's own deal for the drug maker so the health care match up continues.

>> u.s. firms spent more than 124 dollars buying companies so far this year. that's a record high. the takeover back in may is not a takeover yet guys. we don't know if it's going to happen. that might be a standout deal and i would argue that's the case for many of the deals that have been announced. we don't know if they're actually going to go through. so syngenta still doesn't want to be taken over but there's a big currency factor here because many are buying european companies because they have strong dollar and it's a lot cheaper for them to buy weaker euro companies. >> but i will point out a lot of the multinationals hold most of their cash overseas so it's more expensive to repatriate it back into the u.s. but they make acquisitions to bolster their bottom line. >> the fear of missing out in the m&a spree. >> that's one of your favorite

hashtags right? fomo? >> you don't know what it means. fear of missing out. >> i like yolo more though. >> you only live once. that's a good one. coming up on worldwide exchange wilf has been out and about exploring properties in the capitol. >> who would live in a house like this? after the break we explore the factors moving london's property market. push your enterprise and you can move the world. but to get from the old way to the new you'll need the right it infrastructure. from a partner who knows how to make your enterprise more agile, borderless and secure. hp helps business move on all the possibilities of today. and stay ready for everything that is still to come.

the u.k. chancellor george osborne is preparing to deliver the first conservative only budge in two decades. a new house building program and scrap inheritance tax up to 1 million pounds which won't help the owner of this new 40 million pound residence. >> it's weeks on from the landslide victory in the u.k. general election. and chancellor george osborne says his economic plan is working. a familiar sight on the streets of london with booming construction activity helping to build growth. and it's pointing to the economic divide between lon condon

and the rest of the u.k. house prices are far above in part of investment. but the market has been cooling with with prices growing at the weakest pace in two years in june. >> uncertainty ahead of the u.k. election lead to a slow down in london's property market. a few months on and in the wake of the budget has it bounced back. >> the duo behind a high end property developer are feeling optimistic about fetching 42 million pounds for this project. >> right up to the election we saw a bit of a slow down because people were nervous and cautious about what could happen. it's been good for business. >> what's that sort of average price of the typical? >> i think it would range anywhere upwards from 2 to 3 million pounds. >> if you're looking at those high end properties break down for us roughly where your clients come from. is it from britain or abroad as well? >> a large mix.

at least 50% of the buyers are from abroad but probably around 50% are u.k. and there were more russians in the market previously and we've seen those numbers decline and that's let more britains back into the market. >> why is the russian's declined specifically? is it directly related to the russian ukraine crisis? >> the purchasing power of the ruble plummeted significantly. >> the chancellor is releasing his emergency budget. the first under full tory control for 18 years. with labor out of the picture fears of a mansion tax are well and truly over but in osborne's autumn statement hikes for the top 2% of the properties dampened london's housing market. >> part of the motivation for raising it so such a high level was to try to negate any need for a mansion tax. that having been said i do think it's made it very difficult for people to buy and sell homes because it's such a massive amount of money when you go to purchase. >> this week's budge could increase the pressure on the

market. they may raise the counsel tax on top end empty properties. osborne likes to fix the roof when the sun is shining but with the possibility of rate hikes on the horizon, how much that roof will cost is anyone's guess. >> 24.5 million pounldds that house. >> of course it's good enough for me. >> it is a big one. but in the u.k. seema, you would get, for 42 million pounds you would get a whole ranch and a forest and you would get acres of land. >> with horses and bunnies and pigs. absolutely. >> you could take those in that house. just transfer the swimming pool into stables. >> big day tomorrow? >> big day tomorrow on the budget. headlines in the budge last autumn. a couple of property announcements but much more on welfare cost and product activity boosts. >> new research revealed that the scale of the u.k. family and

friends lending market reached an estimated 12.5 billion pounds. this as a report suggests that 40% of people over the age of 5 in the u.k. have been distressed by a bad borrowing experience. it adds that one in seven brits admit that borrowing money shows them who their real friends are. let's discuss this further with daniel green. daniel, a pleasure to have you on the show. walk us through a basic scenario on how your technology works. let's say i want to start a fashion magazine. i want to take out 10,000 pounds for my dear friend wilfred. >> no deal. >> what happens next. >> it's very simple. it's a social lending platform that allows for collecting donating, and lending but all among friends. so in this case what you would do is you would simply go online and type in flendr.com and fill out your fashion company page. go to all of your friends and say how much you want and all of

them will contribute and you watch the money roll in and you're up and running. >> what's the colalteral. >> at the moment 12.6 billion pounds of lending is going on among frenldiends. we think that would be much more. that's very very concerning. from our point of view you know giving and sharing is friendship and therefore to have a platform which takes the awkwardness isway is great. >> dpifing and sharing is giving and sharing but you expect to give it pack. >> exactly. the problem with lending with friends is you're concerned either a it's not going to come back or your embarrassed to ask somebody. they do all the recording and all the chasing as well. so the minute that somebody has lent to you your fashion company that you mentioned earlier then basically we're following it and making sure that that money comes back to them to the extent of when you promised to pay them back and letting them know how much of it has come back and none of that can interfere with your friendship.

you get closer. >> what are the interest rates though. they can be as high as 50% or 25%. are they lower because it's friends and families? >> this is the scary thing for banks. our objective and platform is not about making money out of friends or out of each other, there is an opportunity for them to have interest so they can agree in interest among each other but unlike peer to peer lending where you can make or take money off the other guy this is your firemens and you're trying to help them out and get them on the latter or their business going or buy something for them. >> how do you make money then. >> we take a small clip so in addition to the credit card charges we have to take there's a small clip that we take which is around about 2%. you compare 2% with payday lending and doorstep lending or banks if you're lucky enough to get a loan from a bank these days. >> what do you say? should we try it out? >> i wonder if each of you can win me 21 million but 2%

interest rate sounds like a good deal for me. >> thank you for explaining your business to us. now coming up on worldwide exchange it's one of the most thrilling festivals in europe but it's also one feista you might want to avoid. that's coming up.

welcome to the second hour of worldwide exchange. i'm seema mody. >> i'm wilfred frost. >> oil prices rally after the sharpest one day drop in three months. in europe commodity shares among the worst performers after energy stocks hit a 2.5 year low. >> the pressure piles on chinese authorities after stimulus fails to stem the stock route. beijing can deal with the challenges but fails to mention the market volatility. >> cool the rhetoric. jean-claude junker urges europe to work together ahead of

another summit in brussels. putting it on greece to come up with a new proposal but no deal is expected today. >> the chips are down. amd slashes the second quarter outlook sending shares in the chip maker down 14% in after hours trade. >> coming up on the show plannings for the worst. the world's biggest banks rewrite their crisis contingencies meaning some would cease to exist. plus is a rate hike back on the table? find out why starbuck's latest move is some rumors on the twittersphere and running with the bulls. we have all the action coming up. >> all right. let's take a look at u.s.

futures. what can we expect on today's trade? we're up triple digits. 103 point move to the upside. the nasdaq suggesting a higher open by 33 points and the s&p 500 also up about 14 points. now the escalation of the greek crisis has been sending stocks up, down and all around. i also want to point out that the downward pressure in oil prices sending energy stocks lower is no surprise that it was the worst performing s&p sector in yesterday's trade. interesting to see that the market reaction in europe not as dramatic as one would have thought given the no vote result we got from the greek referendum on sunday. yes we did end lower yesterday but nothing compared to 2012 when the greek crisis was the topic of discussion. here in europe on tuesday we're looking at the xetra dax lower by 16%. ftse mib with a gain there and a move to the upside. a quick look ahead of the budget

down about 10 points. i want to hit that point further. pretty surprising that we're not seeing such a big reaction in the european equity trade given the escalation in the greek crisis. does that tell us that perhaps the greek exit is already priced into stocks. >> i think it's one of two things. either people think we will get a clear deal over the next week or so or even if a grexit comes people aren't worried about the contagion at all and the dax is only just below flat even though it is off 6.5% over 10 days. that's continually important to listen to and it's really highlighted in the bond market if we see what yields are at for the likes of portugal spain and italy. they're around that 2.5, 3% mark. they're not the 18% greece is at there not pointing so any risk of major contagion. germany and the u. have seen buying. 0.72 germany and 2.28 the yield on the u.s. ten year. quick look.

euro was very weak at the open and paired most of those losses various little spouts of positivity. it's up again today. below 110. but all in all still relatively muted performance over the last couple of weeks given the continuing developments in a negative way out of greece. 1097 as we look at things today. commodities was a big reaction yesterday. we're seeing a little bit of a bounce back today. oil prices off 7 or 8%. brent bouncing back 1.5% and that oil price decline yesterday is something we will continue to discuss. >> absolutely. we are seeing a little bit of a stabilization in the oil price today but that 8% move to the downside suggests that the volatility in the oil trade is not over. i also want to point out that from who we have been speaking to this morning and investors as well no one can give us a reason as to why oil prices moved lower

yesterday. perhaps that iran nuclear deal is back on the table but we know iranian oil at some point will potentially hit the market and what that will do to the supply demand equation but that's nothing new. >> you're right. caught a lot of people by surprise and everyone is trying to pinpoint what the reasons for the decline. i talked to them this morning and they say oil prices have to worry more about iranter than the grexit. the big one is still iran. i want to come back to the oil rig data. we saw that rising for the first time in 29 weeks last week and that was a big turning point according to many because that would probably tell you that the u.s.shale producer feels comfort wbl the price levels that we're at. it's no longer suffering from the price decline. now it's adjusting to that new reality and we're actually seeing production going up and that could be huge. >> and we saw opec production ticking up as well. when we listened to all of those factors plus the sentiment from

greece and china as well endless list we just had given that oil prices had been resilient over the last three or four months that's why with this this conflunce of factors one is is priced in. >> it was the oil price that moved the most on the back of the greek vote if you want to say greece is one of the reasons oil prices moved lower we saw the euro move lower and dollar moving higher. but in today's trade, oil slightly higher. >> we want to hear from you. what do you think caused the sharp drop in the price of oil? it's because we have been in a deflationary spiral since the crash in 2008. get in touch with us by e-mail at worldwide@cnbc.com or our personal handles are at the bottom of your screen. >> the pressure is increasing on china after stocks fell into the red despite stimulus measures over the weekend.

comments have been cited for the negative sentiment. china has the confidence and ability to deal with the risks and challenges faced by it's economy but he avoided any mention of the stock market volatility. they have seen a major sell off over three weeks with stocks shedding over 25%. >> meanwhile, more than 200 chinese publicly traded companies halted trading today according to state media in a move to protect themselves from the stock market volatility. let's check in on markets in asia. sri, i guess that's not helping either is it? >> well broadly there are two different themes going on carolyn and the first one is we are seeing some risk on moves in some corners of the markets over here and it's in australia and japan as well. both of them up by well over 1%. so the signal there from investors in that neck of the woods is that the contagion impact off a possible grexit if

we do see it among the rest of the peripherals. we'll see a domino effect. the belief there is that's going to be relatively limited. we did see some heightened volatility intrasession. pretty much the normal run of things. we were down by 5% at its lowest in the morning session and we stabilize at the close. we'll see more of this in terms of the action by beijing they're in a bind right now. how to stave off this volatility we should say is having an impact on the wealth effect and therefore the housing market as well arguably. very very difficult when you're talking about 650 billion in terms of annual daily turnover and the measures that we saw, the weekend constitute about 120 billion so it's the drop in the

ocean. >> thank you. now technical analysts say there's going to be a big change in the direction for chinese stocks. to find out how and see those charts head to cnbc.com. >> it doesn't seem how the sell off is over. you look at price attorneyings ratio at 108 times earnings. it's incredible. >> extraordinary run. >> more on china but let's look at what to expect in the u.s. here's the run down. may trade deficit figures are are out today. the gap is expected to widen to $42.5 billion. at 10:00 a.m. we get the monthly jolts or job openings and labor turnover survey which tracks the number of job listings. janet yellen looks at this number carefully. at 3:00 p.m. macon assumer credit. the container store is one of the companies reporting earnings in today's trade. >> a and dmd cites weak pc demand. revenues expected to drop 8%

from the first quarter. in april it expected weak demand to continue for sometime as manufacturers focus on keeping lean inventories. amd falling 40% -- i'm sorry, 14% in after hours trade and down 12% in germany today. >> let's stick with tech. samsung electronics q-2 earnings below analyst expectations and the company misjudged the demand for the samsung s 6. it's locked in a legal battle with u.s. hedge fund elliott over the merger of two subsidiaries. shares in samsung he welcome tronices closed marginally higher. the stock is down nearly 16% in the last three months. >> fiat chrysler's chairman isn't giving up on forging a partnership with gm. the auto maker has been rejected twice by it's detroit rival in the last four years. the company isn't interested in a merger.

he tells the wall street journal gm hasn't been put to rest. while it's not the only option he believes it's the best one. analysts say fiat chrysler needs a merger because of its debt load and smaller margins. >> another day, another summit on greece. we're live on the ground in brussels finding out if it's going to be teal or no deal today. we'll be back in two. [ male announcer ] we know they're out there. you can't always see them. but it's our job to find them. the answers. the solutions. the innovations. all waiting to help us build something better. something more amazing. a safer, cleaner brighter future. at boeing, that's what building something better is all about. ♪ ♪

futures point to a triple digit move higher at the open for the dow. not so smart for samsung. another quarter of weak earnings and fiat chrysler's chairman is not giving up on forging a partnership with gm. >> back to greece it's up to greece to explain how the crisis can be resolved. this is the message from the european commission president echoing comments from angela merkel last night. speaking before parliament he tempered expectations for a deal today and urged the greek government to tone down it's rhetoric. what can we expect today? let's bring in jeff cutmore who

is live in brussels. it's hard to overstate the rock star status that he had. what do we know about whether he will help to further the negotiations and a potential deal between greece and euro zone ministers? >> i don't think he has the rock star appeal and i'm not sure whether he rides a motorcycle but from what we currently know english educated but i think their politics are probably fairly similar. so no one should be in any doubt that he comes pretty much from the same side of the party. but just the fact that he is gone potentially could give the

negotiations something. i think it will be very low that we will make much progress today. we haven't seen the greek proposals yet so it's not clear whether they have come back with any additional reform measures that would convince the other euro zone members that they are serious about negotiating a new teal at this stage. i have to say, you know everybody continues to say we want greece in the euro zone the greeks are saying it and the leadership here in brussels are saying it but whether a deal can be found that is acceptable to both sides in this relationship the creditors and the debtors, it's still very much up in the air. back to you. >> thank you so much. >> meantime let's get out to julia in athens. what's the move on the ground ahead of the european summit? >> i think there's a lot of caution to be honest. there's a lot of talk in the more conservative press that yet

again alexis tsipras void by the no vote over the weekend is going to come up with proposals pretty similar to what was suggested on the 26th in june but with exceptions. he still wants to be talking about debt negotiations going forward and he wants to push back some of the reforms. the creditors want to see happen almost immediately. a lot of people going he doesn't really have the latitude to do this. look at the banking sector and the situation here. he needs to accept what he's being offered here and be thankful for it. >> this illustrates the situation closely. it's saying deadline time. it has him marching up a big hill here called the eu summit. angela merkel saying come on alexis at the top of the mountain. meanwhile angela merkel pointing off a cliff. so come on alexis pointing off a cliff. i think that speaks volumes

quite frankly about these negotiations but while i've been in athens i also talked to someone else in italy that has similar views to many things to alexis tsipras. he was here to support the prime minister with a referendum and we just talked about the issues surrounding the problems. it was a five star movement in italy and i said to him what does it say the situation with greece and other euro zone leaders. is europe broken? listen to what he had to say. >> the germans would contribute the minds and the french would contribute the money and the miners were italian. this is germany's come back. it's a revenge. it's enough. let's forget about germany. you'll see it will be germany that will leave the euro. germany will be the first one. >> grillo there of the five star movement suggesting that germany

is going to be the first to leave the euro. he does have some pretty extreme views but what we can't escape from is the fact that 23% of the voting population do vote for his party. so an interesting alternative view here and illustrates the difficulties that creditors have not only negotiating with greece but the risk of spill over ifs they're more lenient on a country like the government. >> back to you. >> for now thank you so much. it's one of the most exciting festivals in europe but we'll tell you why this fiesta may be one you want to skip out on and i'll give you a hint. we're back in two minutes.

welcome back. a consumer group is urging the federal trade commission to bring google right to be forgotten privacy to the u.s. they argue with holding that ability from u.s. internet users is unfair and deceptive. thanks to a court case last year europeans can ask google and other search engines to remove outdated users giving them more control over their online experience. >> another city and another problem for uber cabbys in mexico city are banning together to protest the ride sharing ap.

the organized taxi drivers of mexico city pledged to coordinate demonstrations as it accused the government of being biased in favor of the san francisco based firm. >> starbucks is raising most u.s. coffee prices by 5 to 20 cents effective today. a tall or venti coffee will cost 10 cents more. the hike comes as coffee prices cooled from highs last year after a drought in brazil sparks supply concerns. it will effect fewer than 20% of customers. let's have a look at price action. starbucks is basically flat. >> coffee prices have fallen. >> that's not the correct chart. >> but if coffee prices have fallen, what's the justification to raise it? is it labor prices? tightening labor market? would you speak in favor of the fed tightening earlier than expected. >> but it's 5 cents. >> i think it's a small increase.

i doubt it's just related to coffee prices. >> but it adds up if you're grabbing a late every morning. >> indeed. but i hate tall or venti. tall is the smallest one. tall is a big thing. >> but you're right it's confusing. >> the u.k. chancellor george osborne is preparing to deliver the first conservative only budget in two decades. >> but it won't help everyone as i have been finding out. >> it's seven weeks on from the conservative's landslide victory in the u.k. general election and chancellor george osborne says his economic plan is working. here a familiar sight on the streets of london with booming construction activity helping to lift growth. but critics say the recovery is uneven pointing to the economic divide between london and the rest of the u.k. house prices in the capital are far above precrisis levels.

but figures suggest the market is cooling with prices growing at the weakest pace in two years in june. >> uncertainty ahead of the u.k. election lead to a slow down in london's property market. a few months on and in the wake of the u.k. bublthdget the question is has it bounced back. >> a high end property developer is feeling optimistic about fetching 42 million pounds for this project. >> right up to the election we saw a bit of a slow down because people were nervous and cautious about what may happen and post election it's been good for business and good for the real estate market. >> what is that average price of your typical house transaction? >> i think it would range anywhere from 2 to 3 million pounds. >> if you're looking at those high end over 2 million pound properties, break down for us where your clients come from. is it mainly from britain or abroad as well? >> a large mix. at least 50% of the buyers are from abroad but probably around 50% are u.k. and there were more

rush wransians in the market previously and we've seen those numbers decline. >> why is the russians declined specifically? is it directly related to the russian-ukraine crisis? >> i think the rouble plummeted significantly. >> this week the chancellor is delivering his emergency budget. the first for 18 years. with labor out of the picture fears of a mansion tax are well and truly over but in osborne's autumn statement hikes for the top 2% of properties dampened the housing market. >> i think part of the motivation for raising stamp duty to a high level was to negate any need for a mansion tax. that having been said i think what it's done is make it very difficult for people to buy and sell homes because it's such a massive amount of money when you go to purchase. >> this could increase the pressure on the market. the government may raise the counsel tax on top end

properties. osborne likes to fix the roof when the sun is shining but with the possibility of a brexit and rate hikes on the horizon, how much that roof will cost is anyone's guess. >> all right. the annual running of the bulls festival has kicked off in spain. thousands of thrill seekers try to outrace the bulls over cobblestone streets and the pavement early this morning. perhaps no surprisingly injuries and falities on althoh nobody has been killed since 2009. it dpangained recognition in the novel the sun also rises. this looks like a very exciting event. >> i've been there and done it once although these pictures make what i did look a little bit more impressive because the crucial difference is they open the gate for the runners like myself a minute before they release the bulls so you can put quite a lot of distance between you and the bulls before they come out so i never got quite as close because frankly once you see the crowds running you're

just -- i have to be careful of my language but you just run. >> i don't know what the appeal is. this is not good for the animals and this is not great for people who can get injured or killed in the worst case. >> yea but it's not something you do. >> it's tradition. >> i was 20. it was a fun thing to do. you spend a couple of days there. there's a lot of alcohol involved and that makes your decision making a little less clear and anyway -- it's pretty painful. i'm glad i've done it and won't be doing it again. >> you have the check mark there. >> exactly. >> still to come on the show iran nuclear negotiations stumble at the finish line but is a deal still in reach? we go out for the latest after this short break.

and it's 5:30 a.m. in new york. 10:30 here in london. >> here are your headlines from around the world. >> oil pies rally after wti marks the sharpest one day drop in three months. in europe commodity shares among the worst performers after energy stocks hit a 2.5 year low. >> the pressure piles on chinese authorities after it's stimulus fails to stem the stock route. beijing can deal with the challenges but fails to mention

the market volatility. >> gridlock in vienna. talks on iran's nuclear program face another hurdle over the weapon capabilities. traders eye the negotiations as they are closer to turning it on. >> cool the rhetoric. he encourages them to work together ahead of another summit in brussels but no deals expected today. >> and it was the downward pressure in oil prices that sent energy stocks lower. we're expecting stocks to move higher. the dow indicating a higher move in premarket trade. s&p 500 up about 12. we want to point out that technology continues to move lower. specifically semi-conductor stocks. a source of concern. one of the reasons we're seeing the nasdaq under perform. let's look at european stocks.

the market reaction notable given that escalation is a source of concern for traders but we haven't seen that big of moves. we ended lower in yesterday's trade but here xetra dax down about 39 points. cac 40 down about 24 points. we have the euro zone meeting today. the question is how does the no vote on sunday change the state of negotiations. also i want to point out what's happening in the commodity complex because a remarkable move yesterday. today we're seeing a bit of stabilization. yet still a lot of confusion as to what drove oil prices lower. is it the fact that the iran nuclear deal could be coming together and oil will be coming back on the oil market or is this all about the stronger dollar? that of course is the big question. >> and we did put that question out to our viewers. what do you think caused the drop in the price of oil? the chinese economy is cause for

concern. grexit and iran talks are already priced into the market and michael sutton tweets the major risk is when the fed raises rates. all other economies will have to follow suit. if you want to join the conversation get in touch with us by e-mail at worldwide@cnbc.com and our personal handles are on the bottom of the screen. >> iran one of the factors in negotiations for a potential nuclear deal. reuters reports that teheran wants all sanctions against the country removed but there's no appetite for that on the other side of the table. meanwhile there's now talks that it could be extended for another two weeks. nbc is live for all the latest. >> they're not going to make the night's deadline. it could stretch on to friday or be kicked further down the road

depending on what happens in these talks. they have all the foreign ministers last night around the negotiating table with the iranian side. they were talking well past midnight last night. we haven't gotten anything from those meetings yet. they have been very quite. sometimes when these meetings are very quite it's an indication that they're making progress. a lot of the time when they're not making progress they seem to give the pressure what's going badly but right now we haven't heard anything. one of the major sticking points that seems to have emerged over the last few at as is a dispute over iran's bahllistic missile programs. iran insisting the sanctions be lifted because they say it has nothing to do with iran's nuclear program but western diplomats are hard pressed to accept that argument saying that these two programs go hand in hand and that's something that they're not willing to accept.

a negotiator told some people that the atmosphere is good but some progress is being made but there's still very difficult issues they need to overcome and they're willing to talk a little further. what i can tell you is this is a nation on the edge of their seat. they have high expectations and hopes for this deal to come through and if it doesn't, many many people in iran are going to be bitterly disappointed. not only is it going to hurt the economy but it's going to deliver a psychological blow to many people here that's going to be hard to recover from. back to you. >> thank you very much. >> let's take a look at today's other top stories. fiat chrysler's chairman says he's not giving up on forging a partnership with gm. the auto maker has been rejected twice by his detroit rival. on monday a spokesman reiterated the company is not interested in a merger. gm has not been put tost rest. he says while it's not the only option he believes it's by far the west.

analysts say fiat chrysler needs a merger more than it's rivals because of its debt load and smaller profit margins. taking a look at price actions, gm shares up about .8%. >> and big story in the chip sector. amd is cutting it's second quarter revenue as the struggling chip maker cites weak pc demand. the company expects revenues to drop 8% versus a previous estimate of 3% decline. in april amd warned it expected weak demand for pc's to continue for sometime as manufacturers focus on keeping lean inventories. amd falling nearly 14% in after hours trade. currently germany off by almost 12. >> still to come here in worldwide exchange crisis management. we tell you which bank would fair the worst should another global shock rock the sector. worldwide exchange back in two.

you know your dentures can move, unlike natural teeth. try fixodent plus true feel. the smooth formula helps keep dentures in place. it's free of flavors and colorants, for a closer feeling to natural teeth. fixodent. and forget it. welcome back. mna a big story. teva is closer to increasing it's offer from mylan. the drug company it's looking to acquire for quite sometime. the price tag could be as high as $43 billion which would value mylan shares at 86 to $88. keep in mind mylan rejected an

offer that valued it's company at $88. >> m&a. the gift that keeps on giving. >> let's change. some of the world's biggest banks are filing living wills or plans to persuade regulators they can go through it during a crisis without crashing the border financial system. landon has all the details from cnbchq. >> good morning to you. the 12 largest wall street banks are publishing detailed plans of how they shutdown their business during a crisis without the need for u.s. taxpayer money following the financial crisis in 2009. banks are required to submit living wills each year to show how they would proceed through bankruptcy. the banks are citigroup, bank of america, bank of new york melon, barclay's wells fargo. credit suisse ubs, jp morgan.

they have vastly improved their ability to with stand a stock to shield creditors and marking certain bonds vulnerable to losses in return for a higher yield. last year they say they weren't happy with the quality of the plans urging banks to improve them or face sanctions including being broken up. under the dodd frank law they have the pow to cp banks and force higher capital requements ieyeem the living willsren't credible. some say they would emerge significantly smaller from a crisis. it would shrink by a third while the broker-dealer business would shrink by two-thirds. they would focus on consumer banking and wealth management and it would sell off it's global markets business and shrink it's global banking unit. it's market business would be discontinued during a crisis and it's global corporate banking operations could be sold. citi's u.s. retail bank maybe spun off. some banks would cease to exist entirely. morgan stanley would sell it's

wealth management business and parts of its investment management unit and trading point venture in japan. they'll start reviewing the plans with hopes of providing feedback later this summer. carolyn back to you. >> thank you for that. moving on a consumer group is urging the federal trade commission to make google bring it's right to be forgotten privacy protection from europe to the u.s. consumer watchdog in a complaint to be filed today argues with holding that ability is unfair and deceptive thanks to a court case last year europeans can ask google and other search engines to remove outdated and other accurate results giving web users more control over their online presence. >> americans were glued to their tv sets on monday night watching the u.s. women's team win the world cup. more than 25 million people watched fox's coverage of the game. a record audience for a soccer game in the u.s. the women's team lead japan 5-2 for the first world cup title in 16 years. the previous record was 18

million for last year's men's world cup group match between u.s. and portugal. i got to say, soccer is becoming much more popular in the u.s. a lot of that having to do with the success of the men's team in the last world cup in brazil. >> yeah but great stuff the women's game here blew the highest figures for men's soccer match out of the water and as they deserve it as well. resounding victory. >> thanks to you. sitting by you for the last year i've had the opportunity to learn more about the game of football because you're such a big fan. >> you should be asking me because germany won last year the men's world cup. >> yes but you said you support england as well. so you support whoever is playing whoever might win. >> are you accusing me of being opportunistic. >> yes i am indeed. >> once again congratulations to the women's soccer team in the u.s. now another day, another summit on greece. we're live on the ground in brussels finding out if it's going to be deal or no deal today.

and here are your headlines. hit by the trifecta. greece china and iran weigh on oil prices. crude suffering the second biggest drop of the year. the chips are down. they slash second quarter outlook on weak pc demand and bad news for coffee lovers. starbucks hikes it's prices by 5 to 20 cents per drink. >> let's have a look at asian markets which for the most part today were in positive territory apart from china which is unto itself at the moment. we've seen 1.3% of gains in japan. almost 2% of gains in australia where we saw interest rates left on hold. further commentary that they would like to see the aussie dollar lower but managing to

rally despite often high correlation with china which as you can see was in the red once again despite the extraordinary measures that we saw over the weekend weekend. so far they haven't been enough. >> they're not looking too exciting today. we're treading water. the xetra dax off by a quarter of 1%. we saw declines of 1.2% of decline yesterday. the optimism at the start of the trading session this morning about a deal being struck in brussels later on today. that's fading also oil and gas under pressure and weighing on the ftse. now coming back to greece it's up to greece to explain how the crisis can be resolved. this is the message from the european commission president with comments from angela merkel last night. he tempered expectations for a deal today and urged the greek government to tone down it's rhetoric. let's get out to jeff in

brussels. what are you hearing about the possibility of a deal later. >> let me bring you up to speed with what's going on here on the ground. we're expecting this finance minister's meeting at 1:00. what we have at the moment here in brussels is a gathering here of the security personnel who are working out where they should be how best to protect the vips as they arrive and you can see behind them the barriers already erected with the camera crews and journalists waiting for the finance ministers to turn up here. this is the euro group meeting. the members of the euro zone and at this point they don't like auspicious for too much progress today. >> he was setting the tone this

morning with the comments and as much as he talked about greece should stay within the euro zone, he took a little bit of time to criticize the greek's previous negotiating style. he accused them of shooting from the hip and occasional outbursts and if that tells you anything about the reception that the greeks are going to receive here it probably will be a fairly cool one and at this point, very hard to see what the greeks will put on the table that will take these negotiations forward but i don't want to be too pessimistic because as we have said in the past you know remarkable ability here in european politics to see rabbits pulled out of hats. however the process is. back to you. >> thank you so much as ever. now let's give you a run down of what to watch this trading day in the u.s. may trade deficit figures are out at 8:30 a.m. eastern. the gap is expected to widen to $42.5 billion. at 10:00 a.m. the monthly job

openings and labor turnover survey which tracks the number of job listings. at 3:00 p.m. look for macon assumer credit. the container store reports earnings after the close. >> it's very important. that's something that janet yellen pays attention to when looking at the health of the labor market. we could be in for a rebound on wall street. stocks ending lower yesterday due to the greek situation as well as china adding to worries. right now dow up 104 points in premarket trade. oil prices rebounding after suffering it's biggest one day drop. let's take a look at how it's trading today. brent crude at $57.45 up by about 1.6%. joining us to discuss is john. the global strategist. a pleasure to have you on the show. who would have thought we would see the biggest reaction to the greek vote in the commodity market? oil prices dropping 6 to 7% yesterday. is this a bearish sign for u.s. stocks? >> we would say not. if anything a lower oil price

at this point after the rebound that we saw from march 17th of this year, we would have to think it's good for the u.s. economy. overall. we can get prices to move back down at the pump. that will be good for the consumer. and for industry as well. so all in all any drop in the price of oil at this point, as high as 60 and now around $53 in change we think that's a good thing. >> aside from oil the external factors like the greek crisis seems to be worrying traders. what do you think is the biggest headwinds for stock? greece or china? >> i would have to say that likely it would be china. only that the market worries very often about a decline like the delines we're seeing in china now. the biggest concern is contagion. contagion in the region which could effect the regional

economies as well as chinas and then contagion that could move globally because we are all interlinked. decoupling has been debunked repeatedly since the financial crisis of 2008. that said we don't think china is going to sink the markets around the world. if anything we think the recovery in the u.s. is a very positive thing and is highly sustainable. >> john, we're also looking ahead attorneyto earnings season again this week. a lot of people have been saying that some of the negative factors that weighed on earnings in the first quarter like weak oil and the very strong dollar have gone away but they haven't if you look at what's been happening over the last couple of trading days. in light of that do you think that companies haven't given us much of -- enough of a warning in terms of erngs going into the numbers? >> i think we've had sufficient enough earnings and warnings so that analysts are looking for

earnings to fall in the second quarter. my recollection is around 4.8, almost 5%. that said they probably -- as they have done in previous quarters, cut much too deeply which will likely bring about some positive surprises throughout the quarter. we'd have to think that at the end of the day innovation moves stocks as well as economic growth and we've got economic growth and there's evidence of sustainability across many sectors aztec nolgs technology lets some companies stand out over others. stock selection in particular over just buying indexes as most of the low hang fruit has been picked. that said though the recent pull backs in the global markets would indicate that you've got to know your alpha betas.

that's the way to go. >> seema said at the top not much reaction in equity markets in the u.s. to the greek situation. i wonder if there could be secondary effects over the last couple of days. we've seen the euro weaken against the dollar and the dollar index more broadly is at a one month high. so a worsening situation in europe around the greek situation. could that hurt u.s. equities down the line because of the strengthening dollar? >> that is a concern. without a doubt about it what we have very much appreciated has been the fact that the dollar's strengthening momentum had lessened significantly earlier this year up until recently when the dollar is beginning to strengthen again. >> it's pad for multinationals but we think reflective and earnings in the second quarter will be that lessening in momentum and in strength of the dollar from within the second quarter and we would anticipate

as we get a deal in europe and we do expect a deal here what would happen is we'll see the dollar back off some what from the recent strength where my recollection is on the dxy already better than a 96 level we'd be at a 95 level this year. once we see a deal in europe probably the dollar will go back to 95 again. >> we'll leave it there. thank you for joining us on worldwide exchange. keeping a close eye on the dollar index as wilfred was pointing out at a one month high. let's take a look at european equities. relatively lower at the day. u.s. futures indicating a higher open by around 100 points. >> that's all we have time for. thank you so much for watching. i'm wilfred frost. >> i'm carolyn roth. >> i'm seema mody. we'll leave you with picture of the annual running of the bulls

festival in spain. have a good day. we know they're out there. you can't always see them. but it's our job to find them. the answers. the solutions. the innovations. all waiting to help us build something better. something more amazing. a safer, cleaner brighter future. at boeing, that's what building something better is all about. ♪ ♪

good morning greece on the brink of financial ruin. the big question will athens make a last ditch proposal to its creditors? >> iran talks at a crossroads negotiations taking place in vienna ahead of a midnight deadline but reports now say there's a new point of contention that will probably give them their way on and prepare to pay a bit more for your cup of java this morning. starbucks is raising prices on drinks today. i thought coffee prices were going down. it's tuesday, july 7th 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 and andrew are off today but it's an annual tradition in spain. the running of the bulls. thousands of thrill seekers tested their bravery and speed this morning. tashing dashing along side bulls. seven people were taken to the hospital for injuries including one person who was gored in the armpit although if you're willing to do something like this you know you're putting yourself at risk. the bull runs will take place every day until july 14th. tis the season in pamplona. >> is that on your list? >> it is is. >>