this is "nightly business report." >> rally phase, stocks sprint out of the gate. the mark's legs turn to led as fears of slowing global growth trumped the optimism. greece prepares a new plan for a bailout. will it satisfy the country's european creditors. >> new wrinkles to an old crime. virtual kidnappings are on the rise. how you can protect yourself and a loved one. the big business of ransoms. all of that and more for tonight, thursday, july 9th. drama today from athens to beijing and it was felt back

home. the tone was set early on by china that barred big investors for selling listed shares for six months. the sharp move higher fell back to earth. the dow jones held on to a gain of 33 points. it had been up as much as 249. nasdaq rose a dozen and the s&p added 4. it was the unusual move in china that sent the shanghai composite up nearly 6%. we have more now from beijing. the chinese media talking about a national sports team saying they're truly taking action. the market rallied by 6% today.

they enhissed state owned enterprises to stop selling shares. we also learned that police are investigating what they call malicious short sellers and they also already have said they found at least a dozen institutions well as some individuals who engaged in what they call the illegal practices. the investors here were relatively relieved by the rally and they're still very cautious. many of them are angry with the government. we saw protestors in small groups outside of the office. many of the investors we spoke to also said they're uncertain of what will happen next because more than half of the lists companies in china are still seeing their shares suspended. many people here are wondering what will happen once those shares resume trade. >> the chinese are now the

number one foreign buyers in u.s. real estate. that's why a sharp drop in the past month can have a ripple here at home. will it mean a boost or a bust? from newly built homes in irvine california to condos overlooking the manhattan skyline. chinese investors are pouring money into the u.s. real estate market. that catapulted the chinese past the canadians to the top spot for foreign investment in real estate. will that help or hurt u.s. housing? >> what we're seeing seems to be a flight to safety and that could lead to more money being poured into u.s. real estate which is viewed as a reality

investment. >> a hong kong baits company that connects buyers with real estate agents put out a survey on we chat a popular social media platform. more than have say they're definitely looking to invest in u.s. housing. chinese have been flooding into southern california and this irvine development of homes. the chinese want security for their kids. >> i think it is a long term i want to live here play. >> some want to live in miami. a brand new market for the chinese. vanessa grout had two chinese investors as the market seemed in free fall. >> with the anxiety caused by the recent economic downturn we

have seen a flood of interest. chinese buyers now make up 39% of foreign investment in manhattan, up from 12% last year. they're not just buying they're building. this building is a joint based adventure. i spoke with stewart miller who said he is not exactly concerned, more watchful. while the can real estate here becomes more expensive, it becomes more desirable. i'm diana olick in washington. >> so could the market selloff create a contagion and spread to other regions? chris, welcome, let me start with that question. is what is going on in china in terms of the wealth lost and the wealth effect crushed and the slowing of the economy, is it likely to spread and create a contagion? >> that is an excellent

question. our view for the time being is the answer is probably no. one of the things to keep in mind about the chinese stock market is if you look at stock holdings for the average net worth, it is a lot different than here in developed markets. stock holdings make up significant portion of overall household net worth. in china it is 10% or lower. i would be caution on jumping to too many conclusions that a melt down will create a huge ripple effect. bull up a chart of some of the most frothy of the markets. what you'll see is that the recent drop has really only undone about, i don't know three or four months worth of gains. so a lot of folks that have been

invested for nine or 12 plus months are probably not even in the negative yet. i think the concern might be a little overblown at this point. >> if china is not done with it's correction and a lot of people think it is not, if you want a play in asia where would you put money to work in asia? >> we vastly prefer japan. it is a highly controversial market. as many remember they were one of the worst stock markets in the world from the early '90s until just a few years ago. a lot of investors that remember those times that loathe thinking about investing in japan again. but it has been one of the world's better stock markets. and that has been because there has been a major political change over and a change over

in central bank behavior there. stocks are still relatively cheap in our opinion. >> so very quickly, buy japan, china too risky to mess with? >>ly do it as quick as i can. when you talk about chinese markets, there's not just one. there is a mir idea of them. i would continue to avoid the a share market those are the stocks mainly in china, i would avoid anything extremely expensive, high-tech and small cap names. there does appear to be som value in the chinese h markets. these are shares that are borning. >> boring can be beautiful. >> yeah the fundamentals are not great, but they're very cheap. >> global growth is tet to slow it year the international

monetary fund cut their forecast pb the imf expected to go 3.3% this year. it warned that the increase is clouding the outlook. an important day for greece as of this evening, they have submitted new reform proposals. what that document says could determine whether that country, greece receives a fresh round of much needed bailout funds or debt relief. michelle joins us tonight from athens. bring us up to date here do we know anything about what is or isn't in that document? >> we know two things. one that there appears to have caused a rift in the party, and that would be considered an optimistic sign because it is

enough concessions that part of the extreme left party is upset. it would suggest more concessions and that means they might be able to come goeser to a deal and that they might vote on it tomorrow in the greek parliament. that means they're trying to send a signal to the voters that they're very serious about this. >> michelle, odds to seem to be changing about whether or not grooet will stay in the require owe done. >>. >> just in the last 24 hours, more than 50% of economists think that greece leaving the euro zone is the most likely

outcome. we wait to see what is in it if it reverses opinions about how close it could be. >> michelle following all of the action for us as she has been doing in athens. thanks michelle. >> nowhere is there more interest in greece than in germany. the country to which greece yoeowes the most money. what do average der mans think about the situation in greece? >> we should help them because they need help. >> i think we have to doe a direction. >> i think it is a shame they had a bailout once after.

>> they should get another bailout, but they have to improve their tax situation. >> i say no bailout. >> we'll have more on the ground from germany tomorrow on "nightly business report." >> one person who was fed up with their bank led them to do something you won't believe. that story is next. there won't be a nuclear deal with iran by tomorrow. john kerry says he believes that talks are making some progress but that real issues remain unresolved. and that they will not set at the negotiating table.

>> president obama made it it clear we can't wait forever. if the tough decisions don't get made we're prepared to call an end to this process. >> it could have a big impact on oil. today, the price of west texas crude settled up 7%. >> new applications for u.s. unemployment insurance benefits rose last week. the labor department says that initial claims for state unemployment benefits rose. despited rise, it is considered an improving market. the more federal reserve governors speak, the more it is apparent there is a redebate inside the fed the president of

the federal reserve bank of chicago wants to wait until mid 2016 before he considers hiking interest rates. he says overseas risks have grown in the past month. he says the central bank is taking a careful look at the global economy. >> we are tentative. we're watching the risks in greet closely. we're watching developments in china closely. we have taken note of recent episodes of very sharp spikes in volatility. >> she also said the u.s. economy is more resilient given the changes taking place in u.s. regulation. >> according to a new survey not everyone is optimistic. steve leisman has more.

american optimism over the economy took a dip in the second quarter, largely the result of the concern over rising prices. but the outlook of the wealthy americans is searching. about a quarter of the americans polled believe the economy is excellent or good. that is down slightly from the first quarter. the decline comes with reasonably upbeat outlooks for gains in home prices and wages. but those price increases did not affect the views of the welty. those with kincomes of $100,000 and more. under scoring a current economic name of this expansion. it seems to be sharing most of it's benefits on the wealthy. >> over this short-term recovery most of that positive monument has happened in the

upper income brackets and among investors with more money in the stock market. what we see on the other side of the scale is people who may have hour household income. they feel like things may be about the same. >> and it shows that any extra money that americans have go to paying down debt. why americans are spending less despite having more green backs in their wallets. democrats have the advantage in four of the seven issues asked about. republicans were tops in handling business regulation reducing the deficit. pepsi hiked prices cut

costs, and that helped it raid earnings for the year. still shares of pepsi were down today at 9459. >> walgreens was beat on the higher prescription drug sales, also naming their interim ceo. they hiked their dividend. raised their earnings outlook for the. and shares popped to $89.55. >> and p&g will sell to cody. they hope to structure it as a reverse mor ris tough which is a tax efficient spin off. shares fell to $80.66. costco saying that stores

open for at least a year saw sales full in june. the stock was off of a few cents. sales increased in june but not as much as they were expecting. victoria secret lags and bath and body works exceeded. ibm announcing their close to a brake through in semiconductor. what typically happens when a entrepreneur hits a roadblock? they find a solution. in this case a man who was frustrated with his bank decided to open his own bank. woe have more from new hampshire. >> on a sleepy strip, there is a

new building going up and for many it's a post crisis milestone. among the first new banks in the country since the recession. bill griner got the idea after citizens said they would not be continuing his loan. instead of going to another bank he went to his roladex and then to washington. >> investors were excited about the vision i gave them. i was hoping to get 50 people to come together. that surprised them a little bit, you could see a couple sit back in their chairs. one particular regulator said they had not seen that before and what was i thinking. >> 350 investors, some $3460 million in start up capital, and one of the only charters awarded

by the fdic. the only other bank to open it's doors serves the ammish community. demand to loans for themselves had been spent up. 100 community banks started each year on average since 1980. low interest rates a partly to blame. >> industry observers chalk it up to things like costly compliance with dodd frank. also a required seven-year business plan. they want to make sure management and the banks board have experience. >> they want them to understand how imperative it is for washington to meet and exceed expectations. >> i'm excited because the ground has been set. we've been particular about going to the fdic the banking regulatory committees getting

everything our is dotted and our ts crossed. this is certainly a place for the larger bank. but for the smaller customer i just continue to hear that they wanted more. they wanted something local. and that is really what made my decision. >> 95% of the money behind primary has come from the state of new hampshire. as big banks shrug off small towns, it's a model that many states and entrepreneurs could look to replicate. coming up, how your next plane trip could make you as a rule herbal to a hack attack. a look at cyber did nappings when our series big business ransom continues.

janet yellin will speak tomorrow and a report on wholesale trade will come out. the new york stock exchange talked about what caused trading to shut down yesterday. they said it was due to the rollout of a new software release. there was a problem with the upgrade that didn't go as plans and trading was suspended about 11:30 a.m. eastern time. today the fcc said they were meeting to further review

yesterday's event. an estimated 22 million people have been affected by data hacks. last month the office of agency management said information stolen by thieves. china is reportedly the source but they have denied it. >> generals and kidnappers have become more sophisticated. they are going after people physically and virtually. as the threat grows, so does the industry that works to combat it. we have more on virtual kidnappings in the third part of our series held hostage, the big business of ransom. get down (. >> the words kidnapping and hostage bring images like this to mind. but the cyber image of this is becoming more pervasive. >> it refers to a crime. >> at a cafe joseph steinberg

explained how your next plain trip makes you more as a rule herbal -- more vulnerable. >> if you share you're about to be on an airplane that gives people a pretty good idea your family won't be able to reach you for a few hours. >> i never sent you anything but the message that came from you from my e-mail it looks like it came from you even though it didn't. >> how did they get their contact information. >> in some cases just looking on facebook. >> hackers also specialize in holding your computer hostage. >> one of the forms of kidnapping is kidnapping your data. these are pieces of malware that get on piece's computer they encrypt your data movies and

everything. unless you pay the criminal money, they will delete your files. >> does the person sending the message do they have your data or is it a trick? >> they have the key to decrypt your data. >> often it is using bit coin -- >> if you don't know anything about it? >> they give you instructions. >> according to macafee, it nearly doubled this year with criminal enterprises making $8,000 to $10,000 a month in profit as kidnapping ransom and extortion become more high tech. >> to read more about virtual kidnapping go to our website. tomorrow the final part of our series looks the at changing policy of the united states government when it comes to hostage negotiation. >> i had family members hit by

that ransom ware where they say we'll get rid of your data unless you pay us. that does it for nightly business report i'm sue herrera, thank you for joining us. >> we'll see you back here tomorrow night.

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