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look lines outside banks in greece the morning after the country went into default. and investigators are on the scene of another church fire in the southern united states. and hello to you. welcome to viewers in the united states and around the world. i'm natalie allen and you are watching "cnn newsroom." and we begin again this hour in greece where the government has failed to make that $1.7 billion payment to the international monetary fund. the banks are closed but that is not stopping greeks from lining up outside. look at this scene. they are trying to get their money. these pictures are from just a short time ago in athens. european creditors have refused to extend greece's current

bailout but they will start discussing a new plan when day meet in just a few hours. cnn's emerging markets editor joins us in a moment from abu dhabi but we begin in athens with cnn's isa soares and that is certainly not a good scene there outside that bank. and what a feeling for people who want to get their money and told they can't. >> reporter: yeah highly frustrated i'm sure a lot of the pensioners. they were told they were going to get paid on monday and then they heard it would be tuesday and now they are being told it would be today. initially it was 60 euros and now they are told it will be 120 euros. a lot of the pensioners don't have cards. so about 1,000 banks are opening to serve them and service them so they can get their money. but heated scenes for a lot of the pensioners.

one pensioner tried ten times to get her money out. when i said are you voting on sunday she said yes but she said how am i going to get to my island? i'm registered in an island if i can't get my 60 yeareuros out how am i going to get to my island? what i have seen is a very clear state of anxiety here. some people clearly are looking forward to their referendum those in the no campaign but it's i've noticed in athens it's very much a divided city. from high above, the battle lines are hard to make out. but walk the streets of athens and the ruptures are easy to spot. this is a city and a nation deeply divided. both politically and ideologically. in the affluent district of

athens where coffees are sipped endlessly and money speaks volumes, locals tell me they have never been this nervous. this lawyer tells me her concerns have grown following the growing support of the no camp. >> most of them they believe they want to -- they are for euro. they want to say yes to the referendum. however, many young people they don't -- they think they don't have anything to lose. so in this with this argument with this thought they might vote for no. >> reporter: it's this thought that has many on edge with the rising number concerned that the rest of the country doesn't understand the risk that a no vote would bring. >> hopefully next sunday we are going to vote yes because we want to remain in the european union. that's where we belong. >> what i noticed is that athenians are not talking in one

voice. so we are going to drive two kilometers from this affluent area and hear from people who are defiantly pushing for a no vote. here in this neighborhood the no campaign is in full swing with posters placed in every corner. anna tells me we in this historical area we are fighting to get our lives and our dignity back so we are finding hope in the fact that the public will make their mark on sunday. this defiance is palpable and understanding. this is after all, a symbolic neighborhood of the left. alexis tsipras made this his first stop when he was elected and it seems his rhetoric has shaped this part of athens. angelos says it would be good to leave the euro for good.

fighting talk from a deeply divided country, one that now stands at the edge of an economic precipice. and natalie, many athenians will be waking up with more questions than answers this morning. will the referendum go ahead? what will the question be given that alexis tsipras has now asked europe for a third bailout. it would its third bailout in six years. >> it's unbelievable. they wake up and they have no idea that they just keep coming to a dead end, don't they there in greece? isa soares thanks so much. now let's talk to you about another situation that is related to greece. greece will be the first developed economy to default on a payment to the imf. at least three other countries have outstanding loans, sudan,

somalia and zimbabwe. now back to abu dhabi. john sudan, somalia zimbabwe very poor countries and greece all in the same boat. >> who would imagine in 2015 that we have entered unchartered territory with an industrialized country, a member of the oecd unable to make a payment here in technical default. that's where we are heading right now. the essential thing today is a euro group teleconference. but we don't see any surprises e emerging. and surprise is what this new government has been using in the first six months. they called this referendum planned right after the time they were not going to make a debt payment to the international monetary fund.

that surprised the euro group and they asked for an extension and a two-year bailout program. so 2010 2012 and again they want one now for 2015. at the core their argument seems to make sense. they say their debt is too high. let's look at the big number. that is $351 billion for greece's debt. that is using a conversion from 317 billion euros. $351 billion. that means that greece has the highest debt in the euro group, at 177% of gdp. it is above italy at 132. and others who have gone through debt restructuring, portugal, ireland, and spain. and here is the problem, the euro group doesn't want to discuss cutting the debt pile. they will talk about stretching

this out over 20 years but if greece stayed on this growth that the debt to gdp by 2030 will be around 120%. no one things that is a got idea but this is a political problem that created great economic pain as isa was reporting there on the ground in athens. >> where is the way out? there really is no plan "b" right now. >> that is the problem. if you look at a plan "b," it doesn't seem to include a greece within the eurozone any more. and many are starting to believe this may have been the plan for alexis tsipras and his government all along that it would be six months to maybe a year of incredible pain for the greek people but maybe they are better off with their own currency and their own central bank to lower interest rates or take measures. but many greek people want to

stay in the eurozone. the other thing to look at is the political mix. this is a left-leaning government. radical members of their party trying to negotiate with a large apparatus in brussels that doesn't have a political union among the 28 states and 19 that share this currency. if the greeks go out after 13 years using this currency it is a political failure. you would never see the state of texas leaving the state of the union or trying to use a different currency. that's what we're facing in 2015. and an industrial country with 26% unemployment is shocking by any measurement. >> we can't use unprecedented and precipice any more than we have already. thank you for your reports. we want to turn to the latest in tunisia where the bodies of some of the victims of the terror attack in sousse will

be flown to britain today. 38 were killed when a gunman opened fire at a beach report on friday. the number of britons killed has climbed to 22 but they fear the number could rise to 30. meantime tunisian authorities tell cnn that the gunman trained with those that carried out the attack at the bardo museum in march. our correspondent is live in tunisia with the latest. it's interesting that the number of dead from the uk is still growing and they really don't know how many there may be in the end. there is still uncertainty around this investigation. >> reporter: that really gives you a sense of the exstent of the injuries sustained. there are still bodies yet to be

identified and that is the concern around the death toll. those who are in critical state, many of those as you said hoping to fly back to the uk today. but also bodies yet to be identified and that's really been the heart ache for the families as late as yesterday, families were flying out here hoping to find some word of those who were missing for many of those the news has not been good. the latest the family of the stockers said they hope their privacy would be respected at this time. their son was desperate for any information. he came here. cnn saw him yesterday laying flowers at the memorial at the imperial hotel. of course during all of this, the tunisian authorities are atempting to ratchet up that investigation. that is really what is needed now. the damage to tourism here to the crucial tourism industry that damage has been sustained.

but now in an attempt to control that damage tunisia needs to be seen exerting some sort of control and any answers about how this happened is going to help. the minister of interior is briefing at the moment about what they know about the gunman as you said details are emerging that lead them to believe that he trained along with those who carried out the attack at the miami anduseum and they believe he trained at a terror camp in libya. they haven't yet stated that it is isis but they believe he was in touch with a terror group there. all of these questions they are hoping to answer in the coming days. for now the big concern is the visibility of their security efforts. they announced they will be arming tourist police but we are not really seeing much evidence

of that down on the beaches and on the half empty sun lounges down there. >> thank you, nima bringing us the latest from tunisia. tunisia says it will deploy armed security forces on the streets in an effort to make tourists feel safe. nick paton walsh spoke with a witness who recalled the gunman's final moments. >> reporter: this is the last time he is seen alive, running away from the beach. but then gunman seif rezgui seems calm. he hit the gunman with a brick, making him fire a grenade and fire up at him and then he watched him die. it didn't look like he had time to reload his weapon he tells

us. he shows us how he held the gun and the slow jog he made toward four cars of police. he only opened fire when he got closer to police who feared he was wearing a bomb. here they shot him. he fired back and was finally killed. he was waiting for the bullet to die like he'd finished his mission. and now in a town still telling ats its tales of horror here come the cavalry, beach police standing between the tourists and the needs. and tomorrow there will be more than this sousse will be safe. confident is what beach goers need but also visible protection. we stood meters down the beach from where the attack happened.

and over a six-minute period didn't see a single armed policeman. they are around town but it is far from pervasive. it is picturesque but this coastline is wrestling with the hardest question of all. it is lined with luxury hotels alleyways between them and the sea with jet skis speedboats anyone can gain access here. how do you provide security without removing any sense of fun? a question that darkens sousse's once happy world, as it searches for the answer and peace. nick paton walsh, cnn, sousse, tunisia. we turn now to a developing story here in the u.s. federal agencies investigating a fire that has destroyed a predominantly black church in south carolina. the mt. zion african methodist

episcopal church that's an ame church in greeleyville is an hour north of charleston where nine people were killed at an ame black church last month. the resilience of that congregation is inspiring those here at mt. zion ame. >> emanuel ame has shown us how to deal with tragedy and that is to draw strength from the lord and come together with a spirit of love to meet your adversary. >> this is the second time this church has burned. in 1995 members of the ku klux klan torched the church in a series of fires that swept through the south. 1200 inmates escape from a prison in yemen, dozens with links to al qaeda. more bodies after a plane

crashes in a neighborhood in indiana. we'll have the latest on the death toll in a live report just ahead. links to al qaeda.

yet another disaster in yemen. some 1200 prisoners have been freed after militants stormed a prison in the southern city of taiz. the majority of the escapees were foreign fighters. taiz has been the scene of fighting between the rebels. the transasia airways plane that crashed in february shut off the work engine after the other lost power. that according to a source with a new report in the investigation. the crash which was captured on dash board videos compelling unbelievable video there, killed 43 people on board. the latest report is set to be released on thursday. soon after the crash aviation

officials said they would examine the possible that the crew turned off the left engine. the death toll in indonesia is rising following the devastating plane crash in a residential neighborhood in medan. this comes as officials try to figure out what brought the plane down. cnn's david -- joins me from jar jakarta. do they have any more insights? >> reporter: a lot of questions and not a lot of answers 24 hours after this plane went down in medan. this could have been a lot worse. this is a city with more than 2 million people. in some sense the plane came down in a residential neighborhood. there were some building under construction with no one in them in the middle of the day. that said the scope of this tragedy continues to grow at

this hour. we are hearing from a red cross official at the hospital that there are 135 bodies that have been confirmed to be recovered from the wreckage on the plane or on the ground. and about six bags with body parts in them. that is the grim reality. a police official on the ground outside the hospital also saying that there isn't enough cold storage for the bodies while the doctors do their part and the medical examiners work to identify these bodies so they can return them to the families. it's something we saw with the airasia crash in indonesia. it is difficult, overwhelming in terms of getting this done getting bodies identified with dignity in time for them to be returned to -- >> david, thanks so much. we know you -- covered the other

airline crash as well and this one is just devastating. a c-130, that is a massive airplane. we turn now to the other story that we're following closely here europe's financial markets are open for the day. we will see how they are reacting to greece's default as people in athens line up outside the city's banks trying to get cash.

. and welcome back. you are watching "cnn newsroom"

live coverage from our world headquarters in atlanta i'm natalie allen with the headlines, greeks lining up outside banks earlier this morning after the country defaulted on its loan from the international monetary fund. european leaders have rejected a last-minute appeal from greece for more time to pay its debt. the bodies of some of the victims of the terror attack in tunisia will be flown back to britain today. 38 people mostly tourists died when a gunman opened fire at a beach resort in sousse on friday. uk officials say 22 british citizens were killed but they fear that number could rise. a fire at the mt. zion ame church in greeleyville that is an hour north of charleston where nine people were killed in

a racially motivated shooting at another ame black church last month. we want to take a look at how global markets are responding to greece's default. we are tracking the markets in asia from hong kong. >> we have had a choppy day's trade in china. but i want to start with the other major indexes the nikkei and the kospi in seoul and in australia. in japan today we had economic data. the very well known tankan survey that showed that companies in japan they will increase capital spending at the fastest rate in a decade. and you might expect the market to be higher today but what we're seeing generally in asia is that the sentiment over greece this uncertainty that we have over what is going to happen next whether or not greece will leave the eurozone

that's the big question that could have contagion effect. that could put a dampener on them and stop them from going higher. going to shanghai, down more than 5% right now. last week on friday the composite was down 7.4%. this is the intraday chart. you can see the volatility and now this drop in the last hour or so quite significant. this has been a market that has been peppered with these very volatile trading days. let's look year to date and remind you that the shanghai composite is up more than 30% year to date but in the last month and we had a high earlier in june. we are now on the first of july and we have had this slide after a volatile week last week. much of this is coming from home-grown issues and whether or not the government is able to

push sentiment back up with headlines in newspapers or policies. a lot of questions hanging over this a lot of people talking about the bubble and whether the air is coming out now. we'll be watching this closely but it's still again a lot of questions over whether there will be a contagion effect from greece. some analysts a lot of analysts trying to do the assessment saying you might see gdp in asia curtailed somewhat. but a third of a percent according to one report i read. that is a narrow contagion effect but with so much uncertainty it's yet to be seen. >> everybody is in a wait and see what happens next mode. thanks so much for the assessment from hong kong. let's go to nina dos santos in london. >> we're 32 minutes and 44

seconds into the trading session so far and looking at the figures it's turning out to be a healthy trading session. look at the xetra dax one of the most reactive markets to greece. germany has a huge say over whether greece gets more money from here. it's up almost 1%. even the ftse 100 in the uk which is outside of the single currency area and doesn't have a huge amount of say over these negotiations surrounding greece and is more protected from that as a result it is up around .7% despite it was the laggard yesterday. the question is why are the markets up if greece is in arrears on that imf payment of $1.7 billion? largely the rationale is that at least the sides are still

talking. what we have later on today is that conference call that's going to be taking place between the members of the single currency area the finance ministers of the single currency area that meet under the heading of the euro group. the head of that organization said yesterday they would be talking and considering this last -- this third request on the greek government for a new bailout but a lot of finance ministers saying off the record to newspapers this morning they are greeting that request with a mixture of per plengs and concern. for the moment at least, the markets think that you know it is look positive that they are continuing to talk. >> they are just holding it just quiet for now until we see what

perhaps, disaster unfolds with greece. thank you as the markets have been open a half an hour. the euro group will meet in a few hours to consider the request by greece for a new bailout plan. but analysts say the country's creditors are losing patience. that could mean a greek exit from the eurozone. with more on that tag enwright reports from london. >> reporter: investors are pricing in that the payment would be missed since monday. late last week there was optimism of a deal. over the weekend, the greek government chose a different path and the economy minister told cnn's richard quest they wouldn't pay. >> you are saying now you will not pay? >> exactly. >> reporter: when does a missed payment become a default? exerts in how the imf works say that greece is technically in

arrears and default doesn't happen until the fund's board is formally told about the missed payment and the imf chief christine lagarde has warned she won't waste any time. >> there is no degrees period or two months delay as i have seen here and there on july 1st, payment has not been made. >> reporter: but she said that when there was no talk of a referendum and pulling the plug on greece before giving its people a vote on its future would be bad pr. they are due to vote on sunday to accept or reject the troika's proposal. but as of right now there is no vote. >> there is now just a vote of yes or no to be in the eurozone. >> reporter: if there is a vote and the answer is yes expect the government to resign and a new administration to restore the

status quo. if it is a no vote greece is headed for the exit even if athens has threatened legal action to stay in the euro. >> it is extremely difficult to change the currency even in the best of times. we do not have any example of a country in peacetime that is changing its currency. it's a mess. >> reporter: that's an outcome neither side wants and there are back room dealings designed to avoid it testing resolve, diplomacy, pragmatism and patience. tag enwright cnn, london. as if the develops were not enough investors were worried about tuesday's leap second when an extra second is added to the day to keep clocks in sync with the earth's rotation. the last time there was a leap

second in 2012 several websites and apps crashed. this year all appeared to go smoothly. happy to tell you that. iran and six world powers are going to keep talking as they work through another deadline for a nuclear deal. we'll have a live report from vienna on what's next. ancestry has come out with a new version. now they have lifestory. it literally lays out somebody's life, from birth to death. when i was using lifestory i discovered my great grandmother. she went through a lot. two sons go to fight in world war ii. she lived through the depression. and she made it through all of that. here i am. just because she survived, and she kept going. bring your family story to life like never before. get started for free at ancestry.com the tripadvisor you've always trusted for reviews, book! checks over 200 websites to find hotel savings up to 30%. book...book! so don't just visit tripadvisor...

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we want to continue to examine the situation in greece now where there is a lot of uncertainty after the country defaulted on its loan payment to the imf. michael houston is the chief analyst from cnc markets. thanks for being with us. with all the uncertainty hanging over greece why are marketing shrugging it off for now? >> well i don't think it has been any surprise that greece was going to default on that

payment. i think this is a classic case of uncertainty ahead of the fact. now the markets are moving on to the next concern which is the weekend referendum. we had a decline over the past few days and what we are getting now is a relief rally. the sky hasn't fallen in. the euro group is looking to consider a fresh proposal from the greek prime minister the greek government later this morning and the european central bank is set to review the emergency lending facility later this morning as well. i think it's very unlikely they will alter that ahead of the referendum. and i think what markets are focusing on now is the fact that euro group is looking at a fresh proposal from the greek government. i think there are grounds for optimism a small amount of optimism i should guess.

>> whatever small optimism they can hold on to why not? how long do you think they can hold out and how does one trade in such a volatile situation? >> a lot of our clients are sitting it out or looking to add to their portfolios on any dips. that's why you are seeing the rally today. the ftse 100 has come down to around 6,500. so clients are looking to view these dips as buying opportunity unless circumstances materially change over the next few days. >> if there is a greek exit what kind of ripple effect could that create? >> i think that is a significant concern most definitely. if you look at the money that is owed. a lot of the debt is owed to

germany and france and their banking system. but at the moment there is a confidence if you like the european central bank can contain that. and when you look at where we are now and where we were five years ago, the european banking system is in a lot better shape. i think any ripple out effects from a potential greek default out of the euro should be containable. it will be volatile but should be containable. >> better off than five years ago indeed. thank you very much and we appreciate your expertise and thank you for holding on. michael hewson for us. the united states and cuba are reestablishing diplomatic relations. there are plans to open an embassy in havana. and cuba expecting to set up an

embassy in washington. president obama has been pushing to reignite relations since last year. iran the u.s. and five world powers are extending their negotiations for another week as they work toward a nuclear deal. yet another deadline came and went tuesday with no agreement just yet. senior international correspondent nic robertson joins me from vienna austria where the talks are happening. are they retaining optimism? they've come very far. >> reporter: they are. there is a renewed sense of optimism that seemed to die off at the weekend. but what there is today, and this may sound surprising i'm surprised myself you have the seven-day extension announced yesterday but there is a feeling of a lack of a sense of urgency outside the main hotel where

most of the meetings take place. there are not any meetings this morning between secretary kerry and zarif. that is not untypical but you think given a seven-day extension there would be a push to get this done. but the reason for this optimism really began yesterday when iran's foreign minister said he thought a deal was still possible but there were conditions that have to happen. this is what he said. >> translator: the only agreement that can last and also be acceptable to the iranian nation is one that is balanced and one that is fair. i believe that the opposite parties have understood that. without a good agreement and without the recognition of the rights of the iranian nation we will not be able to reach a lasting agreement.

>> reporter: senior state department officials also believe there is a possibility to reach an agreement, both sides have said it would have to be done under the terms that were laid out in switzerland at a meeting three months ago. the question is the interpretations they have will they coincide? that's what the next seven days are for. today it's happening behind closed doors without our knowledge. >> as many of these things have gone behind closed doors. thanks for your reporting there, nic robertson. years of determination and hard work pay off. one dancer makes history with the american ballet.

sad news from hollywood, one of the a-list couples is calling it quits. jennifer garner and ben affleck seen here during happier times say they are filing for divorce. they have three children together and announce the split

one day after their tenth wedding anniversary. the united states scored a big victory against top-ranked germany in the women's world cup semifinals. the u.s. defense held strong not allowing a single goal. germany kept up a strong defense but not strong enough. the final score, 2-0. next the u.s. will play the winner of tonight's match between japan and england. it's going to be tough for tennis players and fans to keep cool at wimbledon this week. the temperatures are approaching a tournament record. pedram javaheri joins us with that. >> you know natalie, on monday across this area it was 26 degrees. that is about 79 fahrenheit and they had to treat 29 people and they decided to allow fewer people into the venue to increase the amount of shade for the spectators.

the temperatures will be in the 30s celsius and touching around 90 degrees in london. and it cools off a little bit and warms back up. in 2013 we had 75 people or so treated for heat exhaustion because of extreme temperature. the temperature trend is there. the warm weather, the steering currents shifted well to the north setting the stage for record heat some of the warmest weather since 2012. some areas will get up to 39. if it gets there that is the warmest since 2003. it cools off and goes back up into the mid-30s possible which puts you in the mid-90s fahrenheit. madrid they get into the 100s fahrenheit and it stays there

until next week. and they have had historic weather in madrid. the first six months of the year. the purple is record hottest temperatures ever seen in the month. we had a 27 that was a record. last month, 36.5 was a record. and 40 was a record. this has been a toasty month in that part of europe and in the northwest side of the united states. there are hundreds of fires, 441 or so across portions of the northwest territories and it is shifting the steering currents in the atmosphere to support the smoke from these fires to the southern u.s. states. you have the dakotas, tennessee in the bottom center. the great lakes, lake michigan right here and a lot of smoke in the skies. social media was abuzz because some of these red moon -- blood

red moon images even as far east as virginia because of fires that are 1400 miles away in canada and the smoke carried by winds aloft into this part of the world. >> it's a shame for that reason but it's a beautiful moon outside. thanks. a u.s. ballerina is making history with the american ballet theater. misty copeland is the first african-american african-american female principal dinner -- did i say dinner? dancer? >> i didn't know there would be a future for an african-american woman to make it to this level. at the same time it made me so hungry to push through to carry the next-generation.

>> copeland has been an outspoken advocate for diversity and has appeared in commercials and advertisements which helped her star power. what a great story she has. you have been watching "cnn newsroom." i'm natalie allen. stay with us "early start" is next in the united states. and for the rest of you, another "cnn newsroom" with linda kinkade right after this.

♪ stunning new details on just how two killers broke out of prison. their months of planning and why their first escape route wasn't good enough. more prison workers now suspended as well. the very latest ahead. breaking overnight. another black church burns. flames. the fbi investigates six other recent church fires across the south and the possibility of arson. greece defaults on its debt, failing to pay its 1.7 billion