stephen engle is there. , al me, a lot of talk correction taking place. how can the politicians camera what -- politicians, what can they do about it? stephen: is a habit trying to do a lot of things. as have been remarkably quiet. -- they have been trying to do a lot of things. -- they have been remarkably quiet. the number of different measures in the market as we are seeing right now continuing to go down despite yesterday's brief respite. been down at it has 20% and the last five sessions. , a securities firm saying more measures are probably necessary to avoid basically a market failure. but he adds it is difficult to manage such a gigantic ecosystem like the chinese stock market. the government in his estimation learning the raw forces the hard way. huge challenge for xi jinping. state media helping to cheerlead the stock rally up and authorities rolled off favorable policies for individuals to invest in stocks. it is kind a heart for the rally to take credit for the rally. of for the responsibility the crash if that is what we want to call it. resto

stephen engle is going to join us to have a look at what is going on market wise. noted money managers saying that this correction is not over yet? stephen: it is interesting. juliette ran through how the cup -- the number of companies halted have dwindled from more than 400 last week down to below 200. it looks as those things are starting -- as though things are starting to get back to normal. shares have opened up higher. still, a number of money ,anagers, including mark mobius who was critical of the government intervention efforts -- also, black rock, ubs, and others are saying that more selling could be justified because of the valuations. shares are starting to get back to the area where they can be attractive to buy them again. the ads that we probably have that we probably have not hit the bottom yet. we had the selloff risk from the june 12 high. still upsite index is about 90% in the past year. it is trading at 50% above its five-year average via -- valuation. it is still high. shares are still the most expensive among the world's 10 largest markets. many

stephen engle joining us with more. what are you hearing? stephen: a lot of people got soaked in the market. it may be symbolic, but a storm is raging down. the front page of the "shanghai daily" is interesting. they always put xi jinping on the front. a meeting of minds with vladimir putin. just above, by the way, a super typhoon. maybe this is not the best juxtaposition of headlines. it has been a wild ride this week in shanghai. yesterday, stocks jumping the most since 2009, 5.8%. a number of new measures from chinese authorities from the banking regulator, securities regulator, even the public security bureau saying they will go after malicious short-sellers. the news they are banning major shareholders and executives from selling shares and asking state companies to continue to buy, , thelso the margin lender state facilitator of margin lending, getting increased liquidity to ease things. that was the biggest thing, a jolt of liquidity and a jolt of confidence. look at this. this is the largest u.s. exchange rate tracking asia. since its

let's get the latest from stephen engle in hong kong.e has been watching the moves and trying to keep up with what is happening in shanghai. some questions about the government's efforts to control this. i asked whether they should lost -- whether they lost control. i guess we should ask whether they are trying to control it. stephen: should they be putting these backdrops in place? basically, this is a confidence game. there are very few investing opportunities for the average chinese. these are the mom and pops. there tends to be a herd mentality. the regulator was out midweek saying, act rationally, urging calm, saying, don't listen to all the shorting china rumors that are out there. there might be more sophisticated investors playing and you are going to be burned. that is what has been happening. despite all the different measures from the government, whether it was relaxation of rules, cutting of transaction fees, the triple interest rate cuts that we saw on saturday, the lending rate, none of that really stemmed the slide of thes

stephen engle, thank you.ing up, we will get reaction to the vote in greece and what is next for financial markets. you are watching special television'somberg greece and crisis. stay with us. ♪ angie: welcome back. you are watching special coverage of the greeks in crisis, with greece voting against austerity market -- measures. joining us from sydney, managing director at cap stream capital. it is a risk for asia? guest: it definitely is risk off. markets don't like uncertainty. you have a situation where the greek people vote no to austerity, which says they have to go back to the drawing table. i would assume the greek government wants to think about that restructuring and extension to loans and creditors, so you have the european union, imf and to saying, if you want us give you restructuring and extension, there are certain things we require. which is austerity. now we are stuck in a tunnel for -- tug-of-war. was going to be a tug-of-war, even if there was a yes vote. of course, do you think that markets

companies the listed suspended from trading career let's go to shanghai, joined by stephen engle. start with you. it and has it had any impact? stephen: keep in mind, going between positive and negative territory. a lot of the measures really affect blue chips. big state owned companies. it is the blue chips that movie market more quickly. a lot of these, 50% of the companies halted our small companies dragging me index down. now what is trading? it is the blue chips that are getting stimulus measures. the latest coming from the csr , major shareholders, on board executives major companies have been banned from selling stock for at least six months. investors with stakes of 5% must maintain their positions. this is by order of the regulator. the latest measures are intended to guard the capital market stability in what it called an unreasonable plunge. u.s. dollarslion market cap wiped out. we were ino where february and march career that is not a crash, that is a correction. back to earlier levels. foreigners getting skittish. selling shares at a record pace. we had mark mobius sa

stephen engle is watching things in shanghai. they are trying to impose order on a pretty unruly market. it was called and asked of desperation and ubs says they are extreme -- what do you make of it? stephen: the desperation is "shows that it adds fear to the market." they are trying to get their hands back on the steering wheel, if you will. it has been a tough ride obviously, and they have had a number of different administrative measures to try to pump the back liquidity into the market, and also confidence -- that is what has been sorely missing. i just took a very brief lunch break and ran into the head of the major european brokerage securities firm. he just got off the phone with his traders, and they told him they are breathing a little bit easier this morning because there seems to be a bit more liquidity in the market because of the government moves. that is what we have seen -- we have seen a floor being put, it back stop being put on all the selling over the last few days, nearly $4 trillion wiped away in a matter of

stephen engle sat down with the director general at the mobile world congress that kicks off today innghai. >> the growth in china is staggering. faster, muchuch quicker in china and then it was in the u.s.. >> that is because that is what they offer, right? >> they want that. it is not just the question of offer. people have this appetite for the mobile internet and smartphones. >> one billion 4g connections by 2020 russian mark >> i know. >> why is everyone talking about 5g? this will be the next generation, this will enable wonderful things but nobody knows what 5g is now. will be standardized in 2010 and commercialirst launches will be in 2020. we have time to go. tostill need some time deploy 4g. the majority of the world is still on two g and 3g. 4g is a small percentage of connections today. 4gwill see a huge ramp up of and then we will be ready for 5g. 3 the operators need to monetize their investment. >> they do. network rollout in general, this is network infrastructure investment. the more you want to go to people were not connected today, not part of the digital world, the

the founder spoke to stephen engle.e,u are out of the it will turn off automatically so you cannot be traced. unless you go to a starbucks. that is important. they can track you because of wi-fi. you have installed will not leak data out of your phone. features, together with a texting app to protect you from a 360 degree approach. stephen: what makes it safe? is it encryption? >> when you make a phone call or send a text, there is no infrastructure in the middle. my phone and your phone exchange keys. there is no server in the middle. no government can go to a middle point to intercept. it is a revolutionary technology. an enterprise will not need to buy expensive equipment in their server rooms. they can buy the phones and put it on their iphone. it works out-of-the-box. 6 isen: i assume my iphone a lot less secure. in thenerable are we public to potential hacks? >> we have studies that show 97% of apps leak data one way or the other. either on purpose because the apps make money. marketplace in the make money by taki

stephen engle joins us from beijing. more volatility ahead, i guess. stephen: absolutely.se markets are involved in, and mark mobius among templeton, blackrock, ubs, perhaps saying that this correction is not over yet. are gettinga shares close to the point where prices are so attractive, they may need to add to their longer-term positions, but right now, he says we probably haven't hit the to-dayyet, despite that rally of 10.5% last thursday and friday. there are numbers that back that sentiment from mr. mobius. that 30% selloff in shanghai -- the shanghai copper is up nearly 90% in the past year, and it is trading at 50% above its five-year average valuation. a shares are among the most expensive in the world's 10 largest markets. the shanghai comp trades at about 20 times earnings, well above the 13.5 times average of the past five years. any investors have been looking at the average evaluation -- the median valuation of the average stock in the a share market. is, because the banks, the big caps on priced so low, they kind of skewed the pe for the market as a whole. ,

we will get more from stephen engle on the ground.mine were selves have been on the equity markets globally. the u.s. markets are caught up in the greek story and the payroll numbers which showed a moderate source of growth. this is the limbo they found themselves in at the end. u.s. markets are closed today. there won't be any trading on those. we will be taking the greek story later on today and we'll talk to the founder of easyjet and he will be joining bloomberg later in the morning in a first overview of the day talking no doubt about the greek story. >> let's get back to life on the ground in athens. just two days to go and the polling is too close to call. guy johnson is in athens and hans nichols is in berlin. we have the latest bloomberg polling data to show that things are too close to call. guy: you couldn't put cigarette paper between them. it is amazing that we find ourselves in the situation that what is amazing as well is over 70% of people polled ask about the future and say that they want to remain part of the euro. r

stephen engle's is here with more on this. coaster for the stock market. a lot of tums being taken for the acid indigestion coming with the market calls. we saw this ahead of the rally up. up 8% ahead of the tuesday rally. the one-day rally. now we have the futures of again overnight as you can see. regulator worked late into the night announcing last night significant new rules on margin, trading and significant transaction these. no longer will they require ofkerages to force the sale stock by clients with insufficient collateral. they will out reasonable rollover in margin trading. this begs the question, does that exacerbate the problem? the outstanding -- i cannot remember how many times over it has gained. this is the level of margin outstanding and seven straight days the unwinding of margin lending. the margin fall can be quite painful. shanghai and shenzhen will reduce fees by 30% starting august 1. we had those interest rates cuts. the fourth running late cut since november that really failed to stand the route in the stocks. urging investors to

scarlet: that was stephen engle reporting from asia.ave some headlines with the new york stock exchange. pimm: talking about yesterday's suspension of training. scarlet: it was a software update that triggered the trading calls. the rollout was related to an upcoming sap timestamp requirement, and attempt to fix the problem were unsuccessful. that led to additional communications problems. pimm: the closing auctions accepted orders, orders were executed, and updates to what they call a gateway was a reason for the computer shut down. this caused added communication issues that i guess they knew when that at about 9:30 the market opened, but were exacerbated as trading continued. scarlet: they managed to reopen trading after about three hours. we will keep an eye on any other headlines coming out of the nyse. to sports,turn because he is arguably the most hated man in dallas. free agent deandre jordan backed out of a commitment to sign with the dallas mavericks, instead signing with the los angeles clippers. pimm: jordan changed his mind

we have stephen engle and shanghai watching the developments. and how urgent is this becoming? steve: it is becoming extremely with theonestly, markets wiping away that level of market capitalization. and with all of these individual investors, 90 million plus 80% shanghai ist in retail driven by individuals. often time they are invested in smaller stocks that have an either halted or limit down some many of these days. they cannot liquidate positions as they get margin calls. that is going to start causing uneasiness in the populace, and therefore, in the government. we have seen a number of directives coming from the regulators and the government trying to stem this rout. the latest as you said, they are expanding this ban on stock salses and encourages cut -- and encouraging companies to maintain their shares, not liquidate. the latest orders is that major shareholders, corporate executives, and directors of companies cannot sell their list ed stocks for at least six months. rc saying it will stabilize capital markets amid what it called "the unreasonable plunge in the stock