this is "nightly busine" with tyler mathisen . global sell-off. if investors weren't paying attention to the greek debt . stocks sold off around the globe, with the dow jones industri average plunging more island of debt. puerto ric histoc default on billions of dollars of debt. and muni bond mutual fund owners are paying very close attention. >> up in smoke. why a supreme court ruling leaves the president's landmark environmenl regulations in doubt. all that and more tonight on "nightly b f >> good evening, everyone and welcome. a day of high drama in greece. in puerto rico. and in stock markets around the globe. on wall street u.s. stocks had theiof

the dow plunged 350 points nearly 2%. as positions hardened in that long-simme gre debt crisis. gr says the payments due to the im. and late today, prime minister alexis tsipras turned up the rhetoric against greece's creditors, urging greece to reject the terms of an internl aid deal in a referendum he h he says th the rejectio of the creditor deal the stronger the greek hand in any future talks. his comments followed another credit downgrade from standard & poor's which said at a commerci default in greece was inevitable withi six months. and that the probability of greece exiting the eurozone now stan that's well above any prior by the close the dow jones industri average fell 35 to close at 17,596. the nasdaq was off 122, and the

s&p 500 fell a sizable 43 points. european financial markets were jolted. so kaulcaed piigs stumbled. portugal and italy, spain, the greek stock mar closed until at least july 6th the greek etf fell 2. michelle caruso-cabrera h >> reporte as night falls in athens it is the end of a pivotal three days for greece. it started late friday night when alexis tsipras, the prime minister announced after midnight on national television that he would hold a referendum this coming sunday for the greeks to vote on whether or not they want to accept a new bailout package from greece's internat lenders. he described the package as too harsh. as black mail. he says the greek people should vote against it and that would give them a better hand in negotiatio hours of that announceme late friday night,

that's when greeks started lining up at 8:00 p.m. across the country, a bank run in the middle of the night that extended throughou the weekend an eventually led to the ecb saying they had had enough they could no longer extend more liquidit to the greek banks. as a result they didn't open this morning. as we face this referendum less than a week from now it's growing increasingly possible that greece could leave the euro hence why so many people were taking money out of the atms over the weekend. in fact standard & poor came out today and said they think that now there's a 50% chance of alexis tsipras once again on televisi tonigh tellinggreek people he doesn't think greece has to leave the euro even if the greek people vote he does not think the eurozone will kick greece out. >> they will not get out the eurozone. let me explain why. because the cost is immense. the economic cost the financial burden. >> as the prime minister was speaking on television in the

square you see behind me in front of parliament thousands of greeks were out to support him. what they call a vote no rally chanting oxi, oxi, that's greek for no. but tomorrow night, same time same place, a yes vo rally, and you can be sure everyone will be watching the size of the crowds to get some kind of inkling as to how sunday's vote . for "nightly busine michelle caruso-cabrera athens greece. and the treasury department is urging all parties to get back to the negotiating table ahead of that greek referendum. and it's urging greece and its creditors to find a compromise that balances reforms with debt measures. a treasury official also reiterat that u.s. exposure to greece is mental. western union, the world's largest money transfer company, reportedly closing for business in greece for at le according reuters, the company has not seen an increase in money moving out of the country, but that it did see a rise in funds going in to then

country nt and now to puerto rico which has major debt proble the island's governor says its bills are not payable, and has concluded that the commonwealth cannot pay it's $72 billion in debt. and investo own municipal bond funds are payin late this afternoon, puerto rico's gov. the u.s. island cannot afford to pay its debt and some painful be. puerto rico's legislators are hashing out a new budget which aims to cut costs. it also sets aside $1.5 billion to help pay its debt. but that will hardly put a dent in its bills. now, more . the painful changes begin wednesda when puerto rico's sales tax climbs from 7% to 11.5 and later this year citizens will begin paying a new 4% tax on despite the new revenues the situatio is worse than we

thought, according to a report from a former chief ec it says puerto rico's economy is redlining, it says quote, the government's caps balances can evaporate in the face of delays reducing the room for maneuver and intensifyi the crisis end quote. puerto rico's tax-free bonds have >> half of municipal bond puerto ri bonds. so there already have been declinesha. >> some investors cashed out when puerto rico's troubles made headlines last year. also feeling the effects are hedge funds, and distressed debt buyers who have bought more of that debt as the island's economy has gotten worse. puerto rico's economic slump now almost a decade long has only so just as it has in greece the situation has b >> i don't see a contagion

spreading. you know i think what you have here and this is similar to greece is that you can't keep ticking dow -- the can down the road. there is a point at which the road ends or there's a brick wall and we're at that point right now with puerto rico. >> also like greece puerto rico may consider bankruptcy, especial since the white house said today it is not consideri but, bankruptcy would have to be approved by the u.s. congress. which is already discussing a reorganiza of some public agencies like the electric utility which owes $9 billion.io puerto rico's constitut requires debt payments be made before any other financial obligation are met. so ignoring the debt would mean a vote on a constitutional am? for now, greece may be the word but it's hardly the only word when it comes to debt, and . >> the puerto rican debt crisis is pressuring shares of some of the largest bond insurers lower.

assured guarantee, mbia and ambac financial ensure roughly a fifth of the island's $73 billion in municipal debt and as you may recall these are the same types of insurers that were so hard-hit during the housing crisis a few years back. puerto ric banks like first bancorp pr also took a hit today. >> and certainly not helping the markets today, as well china. the shanghai composite fell more than 3% extending losses over the past month. china's main stock index is now in bear market territory falling 22% since its high on june 12th. the smaller shenzhen composite, which is a tech heavy index, fell 6% overnight. the declines came despite the central bank cutting interest rates to record lows. >> then there's the iran nuclear talks. the white hou confirming today that negotiators will likely miss their self-imposed deadline that's tomorrow. but negotiators will remain in vienna past the deadline to air .

among the sticking points the rate at which sanctions would be removed on iran and inspections of iranian nuclear facilities. >> for more on all of those global flashpoints, andfs we're joined by david kelli, chief global strategi at jpmorgan fund and jim paulsen, chief investment strategi. gentlemen, welcome. first of all, david, i'm going to start with you. there are s that impacted the market today. bu let's start with greece if we could. how do you think this is all going to play out? what res? >> it's very uncertain and of course that's why the markets so much around the world. what we think is the first important thi to recognize is that unless something strange happens here europe is relative insulated from a disaster in greece. the european banking system is solid, it's very well capitalize european central bank stands ready to help

problems on the periphery. the other peripheral countries are doing better so this is really a greek problem. as to how it turns out, i think, one is do the greek people vote yes or no next sunday? and, if they vote no then how does this all unravel? but it will unravel, if they vote against this agreement. i think alex tsipras is telling his people a bunch of malarkey. that they will be in debt if they all vote no next sunday. >> jim i want to turn to you. but let me continue with david for a minute. is it possible david, that greece would default on its obligation but stay in the euro currency? what would that look like? and then what would it look like for greece and europe if t and leave the european >> well yes, because there is no mechanism, really for easily getting out of the euro or abandoning it. but what would happen is they could be left in a limbo where

yes technically they're part of the euro so that's the legal tender within greece. but the problem is the governme will have no way of borrowin money and the bank with no way of lending money. the banks, the really crucial player here is the ecb. if the european central bank does not protect and provide funds for the greek banks, then they will essentially go bankrupt and if that happens they will not be in a position to lend money to greek businesses which will collapse. moreover wit tax revenues falling the greek government will not be able to pay its day-to-day bills, never mind servicing the d so they'll be issuing ious. so you have an enormous economic crunch even if technically the euroremains currency. to me that's sort of a side issue. the problem is not whether they join europe they won't have any euros. >> right, exactly. jim, the u.s. market reacted not only to greece but also to china, and so there are a lot of cross-curr in here. from an investor standpoint focusing on domestic u.s.

equities what can youti do in a situatio like this? what's you? >> i'm cautious too. you just list that litany there at the front end of how many different issues. this is not just about greece. this is about so many different things up in the air right now. and we're talking about a market that's been vulnerable for awhile. it hasn't done much for much of the last nine months or so have been unable to sustain really a rally. e g earnings concerns in the states. we certainly face imminent rate increase at some point this year. we going to find out more about that in a couple days. so i just think there's a lot of risk in the air. so i would be a bit cautious.d if this is the front end of a corr but, i certainly could see where. we have relatively extended valuations as well. but i would -- i would certainly take advantage of the european

situation, if you don't have any exposure there. i would take advantage of what's happening, becau ultimately i think greece is either going to go or it's not going to go and i think the eurozone outside of greece is showing better and better economic improvement, and i think this is an opportunity to buy those stocks for a temporary phenomenon over there. the u.s. has other issues but i think that that eurozone is a good opportunity. so that's how i approach this a little bit. >> all right. thank you, gentlemen so ve. david kelly and jim paulsen. well countries and trorts aren't the only ones that have to deal with credit issues cities do too, as evidenced by atlantic city in new jersey which is still reeling from econom woes financial missteps and superstorm sandy. morgan brenn >> reporte this time last summer both of these casinos thehe showboat and revel were still open the boardwalk bustling

with visitors. but a lot has changed in the year. the east coast one time gaming mecca has lost four casinos, a third of its supply since 2014. gaming revenue has plummeted by 50% since 2006. and two operators trump and caesar's entertainment are currently in cubankruptcy. city crumbling to close a $100 million budget shortfall and its bonds are rated at junk a scenario that spooked investor as wall st analysts warned of the growing risk of bankruptcy. but officials insist that won't happen. the worst may be over for the struggling seas >> by the time we leave here we're going to have our balanced budget and a lot of support from the state. >> reporte less local competit has meant more revenue for surviving casinos as well which in may posted a 5% increase over last year. that reversal of fortune has been driven by increases at the golden nugget resort tropicana, and borgata with $264 million in winnings so far this year continue to be the most

profitable these casinos seem to be servicing the customers well and you can really see the survivi casinos, employees get more hours, people are taken care of better there's capital reinvestment g back into those properties in a way that just didn't happen when the market was oversat rated. >> but even more competition is coming projects planned in new york massachusetts, virginia and if some politici have from which some gaming passes wod be funneled to ac. in light of all of this fitch ratings remains negative. >> it's certainly negative from an overall market gam revenue market standpoint but from a market stability standpoint and giving atlantic city the potentia to invest in other projects like theme parks or entertainm where it can attract peopl to the location could ultimately be a good thing. >> and reinvent it an entertainmt destination is exactly what atlantic city is attempti to do. starting with a playground. a brand-new $50 million with

retails, restaurants and music located in the pier shops at caesar's p investment got the property for pennies on the dollar. >> fire sale distress sale, the lender just wants to get out and be done with it. they wrote down the debt and it's time to move on. i'm the developer and we have a developmt company >> both revel and showboat have new owners as well though plans for them remain to be seen. but as we head into the busiest week of the year atlantic city's future though not quite as bleak, is still a roll of the dice. for "nightly busine i'm morgan brennan in atlantic . >> still ahead the supreme court deals a major blow to the obama adde

a new report shows the housing market . pending sales of existing homes hit a nine-year high. the national association of realtors says its index based on contracts signed last month increased 0.9%. contracts h now risen for five straight months. in washington the supreme t overturned a landmark epa air pollution rule. in a blow to the white house the justices ruled against the obama administra attempt to limit power plant emissions of mercury and other pollutants. coal stocks many of which have gotten hit very hard over the past few years, rose tod hampton pe. >> reporte officials from 23 states along with utility industry groups challenge the obama admi plans to limit power plant emissions of

mercury . they argued the regulations were too costly for coal miners busi in a 5-4 decision the supreme t ruled those costs, estimated by the epa at $9.6 billion per year should have been consi justice antonin scalia wrote, epa refused to consider whether the cost of this decision ou business groups and regulatory experts are praising the court's decision. >> today the supreme cou affirmed a very commonsense principle that epa and other agencies too often ignore. and that is that they must consider cost and they can't issue a regulation where the costs greatly flaunts the benefits to the people that they're intended to help. >> reporte sometime this summer the epa is set to release new rules aimed at curbing pollutio linked to carbon dioxide and glo warming. states are already challenging the proposals even before they

are final. but at thel. white house today the president' press specificsman says today's court ruling will not impa t >> there's no reason that this court ruling should have any impact on the ability of the administra to develop and implement the clean power plan. >> the rules at the heart of this court challenge have been in effect since april. but the case now goes back to a lower court. where the epa will have to decide how to ac for "nightly busine hampton pearson in a separate ruling oracle was handed a legal victory when it declined to hear google's appeal in a copyright case. the decision upholds a ruling that allows oracle to seek licensing fees for the use of some of the java language. google argued it should be able to use java without paying a fee. >> the supreme court also rejected a bid by bp over fines related to the 2010 oil spill in

the gulf of mexico. the companies had argued that the oil leak didn't spring from a well they co-owned but rather from a broken underwater pipe the justices however, let stand a lower court ruling that said the companies could not avoid federal fines for the spill by bp could face a maximum fine of nearly $14 billion, and anendarko could face $1 f billion. >> cisco walks away from its u.s. foods merger. the food company abandoning its planned $8 billion purchase of its rival after a federal judge ruled again tha merger. cisco says it has different strategi for its future including a share buyback of $3 billion. shares fell 2% $37.54. jaevl elec continues to slim down. to the company revealing plans to sell its fleet business for the unit is part of ge capital

which the almost recently announced it w sell most of over the next few years. shares were up more than 1.5% to $26.64. >> gwinette has completed a split of its sprint and broadcas unit. the new unit went public today. the firm will run td websites by careerbuil they rose to $31.63. gwinnett mean time fell 5% to 14.13. juno were sent higher. an initial payment of about $1 billion including a stock purchase.e t firms worked together on cancer and autoimmune disease treatment. juno popped as much as 50% after the close. boy look at that ch seljean didn't move much. nbc is severing its business relationsh wit donald trump.

the network cited comments trump made about immigrants during the announceme of his presidential campaign. sai it will no longer air the annual miss usa and miss universe pageants which had been a joint venture between the company and trump. and celebrity apprentice will. trump says he stands b. coming up why small business are anxiously awaiting the fate of a not often talked abo here's a look at what to watch for tomorrow. a look at the housing sector as the case shiller home price index comes out. the index tracks home values in

20 metropolita regions. the institute for supply management chi survey gets a look at business conditions in the chicago area but is also looked at as a barometer for the u.s. economy. and the attitude of the consumer is in the spotlight when the conference board's consumer confiden survey is released. and that's what to watch for tuesday. in washington another deadline is fast approaching. the export import bank charter expires gh the 81-year-old agency helps big companies like boeing sell their products abroad but it's also a financial lifeline for a number of small businesses. te >> reporte susan axelrod's business may be small in size but her reach is global. >> all over the middle east which is qatar, the united arab emirates we have customers in japan, mexico canada. >> reporte this thanks in large part to the export import bank of the united states which

makes and guarantees loans and provides insurance to small and big businesses expo the bank is a lifeline for business like axelrod's love and quiches gourmet on long island which exports about 30% of its q they provide insurance for her exports something u.s. companies wouldn't consi due to high risk. >> emerging countries which are very many of our targets they're just not interested in doing business. on tuesday the 81-year-old bank's charter expires, and a reauthoriz v lastear the eximbank did about $20 billion in financing about a quarter of that going to small businesses which make up 90% of it deals. the funding supported $27 billion in exports and $164,000 jobs. but critics including

representa jeb hensarling say the bank needs to go because three quarters of the money spent goes to a small number of very large companies like boeing and ge. >> at the end of the day, exim is about taking credit risk off of fortune 50 ballot sheets and putting it on the balance sheets of the poor beleaguered american taxpayer. >> right knew no vote is set on the bank's fate although there is buzz that the senate may takehe up the issue in july. until congress acts the bank won't be able to m love and quiches is an establisd bus so axelrod is confidence they can continue even if the bank is not reauthoriz but the bigger co for small businesses that might lose out on the opportuny to become exporters. >> thousands and thousands of companies tha don't have the wherewitl tha we do and you know won't e won't have access or won't be able to afford the re costly insurance. >> and without the banks, the risk on main street could grow.

for "nightly busine" in freeport new york, i'm. good luck i hope it a >> looks awfully good. >> it looks really good. >> that does it for "nightly tonight. i'm sue herera. thanks for watching. >> i'm tyler mathisen thanks for me as well. have a great evening, everybody. we hope you will see us

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