the republic of cyprus was formed after many british troops left the island 45 years ago.is being divided after turkish forces invaded in 1974. islanders from both sides recognize the site's cultural and historic importance. >> othello tower is a kind -- is a value of cyprus not only for the north or the south, so we are sharing it together. >> reporter: as delegates from the european union which funded the project gathered in cyprus the leader spoke in brussels saying it may only be a matter of months before differences two the tur-- turkish side are revolved. >> we celebrate a clear example of cooperation. >> reporter: the tower is once again opened to the public. renovation work started after emergency measures started to patch up what had been neglected. but it grew into so much more focusing on saving a part of the island's past for future generations. >>> more as ever on our website, the address, aljazeera.com. >>> debt crisis greekest demonstrate in athens ahead of the country's crucial referendum. >>> a warning from homeland security and the fbi this holiday weeken

[chanting] and reopening a 14th century site how it is reuniting people on the divided island of cypruslet's begin in nigeria with a string of attacks in the country northeast, more than 140 people have been killed in three villages and boko haram men are being blamed and several mosques attack that happened on wednesday night. more than 100 men, women and children were killed there. two other villages were also attacked and men, women and children and on thursday a bomb blast and we are joined from the nigerian capitol and let's start with the bomb blast and what are we hearing about that? >> well, we have managed to speak to some members of the civilian joint task force and are vigilantes and individuals if you like supporting the military and operations against boko haram and say this attack was a launch by a suicide attacker close by at check point, close to a military check point and that four people were killed including one police officer, that the area has been quartered off. we know in relation to here where at least 97 were killed late on wednesday night. but this morning, aga

the situation in greece is a little more severe than it was in cyprus.the banks down in cyprus people were still able to withdraw 300 euros per day from atm's, and the atm's never ran out of cash. in greece it's 60 euros per day, and there are reports that atm's are running out of cash. we never had as severe of liquidity problem, and there was strong movement towards an agreement with euro group early on, and in fact we closed the banks down because the euro group and the cyprus government asked us to do that at the time they wanted to post a levy on deposits at the time then that levy didn't go through parliament, and we kept the banks closed until there was an agreement, and also to take the resolution measures involved as a result of that agreement. >> i remember -- >> of course we then were able to reopen the banics. >> i remember the height of the crisis for cyprus even the orthodox church offered to sell off its assets to help the national cause, didn't it? do you think the greeks have done enough in terms of selling off their state assets, which

they were very involved in the cyprus economy. they have money in the cyprus economy. you can imagine. their involvement is nowhere near the scale of the involvement of the western europeans. joe: there was a lot of talk when cyprus had its problems will russia save them? cyprus is so small and russia has so many assets that they could have done it. there is no way that russia is going to come in with any significant needle moving amount of money. the geopolitical aspect is one angle that makes it important for european leaders not to let greece go. i mean, it is an important point. physically, a lot of migrants through greece. these factors do, in terms of not wanting greece to leave. roger: russia is so weak economically. the shrinking of its own foreign-exchange reserves, if russia were to step in and bail greece out over 1-2-year basis it would be shocking and not a good day for russia. i don't think they would do that. joe: no. ♪ charlie: the greeks can vote no and stay in the euro zone. roger cole: it is most unlikely. it is 60-40. either they vote yes or between

the republic of cyprus was formed after many british troops left the island 45 years ago.s been divided after turkish forces invaded after a coup in 1964, but both sides recognize the historic importance. >> translator: this was a very big chance for us because the tower is a value of cyprus. so we are sharing it together. >> reporter: as delegates from the european union gathered the leader spoke in brussels in peace talks saying it may only be a matter of months before differences with the turkish side are resolved. >> talks are taking place in a very very positive atmosphere gives us really renewed hope for reunification. and we celebrate the cooperation and celebration. >> reporter: the tower is once again open to the public. renovation work started as emergency measures to patch up what had been neglected, but the project grew into so much more. focusing on the importance of saving a part of the island's past for future generations. >>> stay with us here on al jazeera. we have got another full bulletin of news for you at the top of the hour with felicity barr. >>> no

in place for long time. >> in cyprus it was two years.y for up -- and amount of time of some months it depends on how the banks react. ryan: we heard from the head of s&p ratings. he was skeptical about the appetite for great assets. do you expect people to come into the market start buying great securities? >> i think it's a huge challenge but it's possible if things go well on the political front. ryan: thank you very much. and all depends on the ecb and what happens with the ela. he is hopeful they will be able to open this week. back to. manus: that is probably the biggest question on everyone's mind, when will the greek banks reopened? the ecb is convening today. greece is brain drain it, we will take a look at how they are losing some of its talent. ♪ manus: welcome back to "the pulse." live from bloomberg headquarters in london, i'm manus cranny. chinese exports are up for the first time in four months. the data is fresh evidence that the second-largest economy is stabilizing. china will release gdp growth on wednesday. iran may be

tom: greece is not cyprus and greek is not iceland. is paul krugman -- we now speak with athanasios orphanides the former governor of the central bank of cyprus and he hundred hands -- and he understands that the distances greater than 1500 miles. thank you so much for being with us today. why is greece different from the crisis in cyprus? >> a pleasure to be with you. there are some differences but there are many similarities. i would focus on the similarity. the crisis we have is a political crisis. you talked about frankfurt and the role of the ecb but really we should be looking at earl in to understand what may happen. berlin is the entity that determines the outcome. i am very afraid it will also determine what happens in athens. tom: ambassador hormat would suggest we would not get to july 20. what is it mean for you and greece of you see iou plus or script currency? >> july 20 is the day which is a critical deadline because of the maturing greek government debt that is held by the ecb. let me point out that berlin could get tha

but it is certainly a possibility as evidenced are the cyprus -- by the cyprus situation. guy: it is guy. we were told it would be doom and gloom if we got a no vote. yet the market reaction is stunningly calm. are you surprised by that? bill: i am surprised. saturday was fireworks day in the united states. it appears we are in the eye of the hurricane. i do not believe this situation is calm. it comes down over the next three weeks as to whether the greek debt and standoff, whether the greeks want a significant restructure of their debt. the troika does not. the troika believes a write-off is primarily government and supernaturally owned debt. they believe that will set a precedent for peripherals. i am on the side of the greeks. the germans are being disingenuous with their portion of the debt because they have had massive restructuring of their own debt after world war i and world war ii when an accord in the 1950's reduced their debt from 120% of g.d.p.. which theyexample claim should not be applied to the greeks has been their historical experience over the past 100 y

islanders from both sides recognize the site's importance. >> it's a kind of -- it's a value of cyprusre sharing it together. >> reporter: as delegates from the european union which funded the project gathered the greek leader spoke in brussels of progress in peace talks. saying it may only be a matter of months. >> renewed talks are taking place in a very very positive atmosphere. there is renewed hope for reunification. and we celebrated cooperation and slel bracing. >> reporter: the tower is once again open to the public. but the project grew into so much more, focusing on the importance of saving a part of the island's past for future generations. caroline malone al jazeera. >>> and a quick reminder you can always find out much more on most of our stories on our website, that's what the page looks like at the moment. the address to click on to is aljazeera.com. aljazeera.com. >>> the nation on high alert, a warning from homeland security and the fbi this holiday weekend. >>> cutting a deal with iran talks intensify in vienna as the deadline for a nuclear agreement looms. [ explosio

now the ball clearly in cyprus' court. will he be able to pass the measures? we believe he'll get 251 votes. many saying they don't support austerity. that was not what he was brought in power for. so we're hearing that it will probably be around 20 voices that won't support it. the opposition parties have been telling us one of the special leading parties yesterday said they'll back cyprus because it's the best deal for greeks. greeks waking up this morning dazed and confused about what it will mean. will the ecb the european central bank put more money in greek banks. that's the authority for ordinary greeks. >> the big question there. we await the answer. thank you very much isa. >> an iran deal which is it going to happen? it could be hours away. there was major progress made over the weekend. let's get to nick robertson live in vienna. that's with the talks are ongoing. >> yeah chris. good morning. the issues holding it up the nuclear deal the demand that an arms embargo should be lifted. the demand that not all sites inside iran including military sites

alix: that was cyprus's ceo tj rodgers. >> trading was halted for more than three hours today.he ceo tom farley joins us next. ♪ alix: what did you miss? i'm alix steel. stephanie ruhle is standing by. take it away. thisom first thing morning, problems, messaging, walk me through that and the shutdown. role in theur center of the global capital markets seriously. our systems, trusted, available at all times. the open went off as you would expect. we were getting intermittent messages with customers not seeing the data and messaging they would expect. we have theel like level of trust in our decisions is required. i made the decision working with our regulatory teaming counsel's office to suspend trading at the new york stock exchange in part because those listed stocks continued to trade elsewhere during the day, and i told our team and a delivered fashion to determine what went wrong, put together multiple plans to come back up for the close. great job holding things firm, but you were out for 3.5 hours, and when you came back, volumes were up, almost the beat goes on. what do

. >> plus how the restoration of the historic tower is bringing a guided cyprus together. rosealee andy rose >> you have kids here who've killed someone? >> award winning journalist soledad o'brien takes us inside the violent world of kids behind bars. will a new experimental program be their last chance? >> i have to do my 100 percent best so i don't end up in a place like this again. >>> a safari guide is recovering after he was attacked by a leopard. it happened at kruger national park in south africa. the images show the leopard biting and clawing the guy's arm. the guy backed away but the leopard chased his vehicle. the leopard may have been agitated by a fight before the incident. they had to put the animal down >>> now our global view segment. a look at how news outlets are reacting to various event. the writer asking is i.s.i.l. at war with british grans on their sun lounges. most of the dead were u.k. tourists and it's been called someone running amok amongst a beach towel with kalashnikovs shooting gran grand dads and young couples. the qatar paper said the focus

tom: they are not an island like cyprus. there is something different going on here. you look back at the history of capital control is that they are easy to put in place but they are difficult to get rid of. all my terry policy is based on trust so in that goes away, it's really hard to get the capital controls out and hope the currency remains stable. >> they did not have to change its currency. tom: the amount of euros floating under mattresses -- the big distinction is all those euros floating around greece in their accounts across the border. >> not only that what you will switch to a currency that has been deep aimed. -- the famed -- defamed? who wants a drachman. brendan: people are buying appliances because they think it will hold its value. tom: there we are again on greece. u.s. futures are up 22 right now. our twitter question of the day -- what a response -- does the new york stock exchange matter? stay with us, "bloomberg surveillance." ♪ tom: good morning, everyone people like the silence out of brussels this morning. let's get to our top headlines -- vo

. >> cyprus to impose a haircut on deposits over 100,000 euros. when greek tanks are considering a so-called bail in solution to save the lenders at the expense of the depositors. >> if a deal is not reached, the ecb will it for the plug. -- would pull the plug. >> it could be part of a plan to restructure the banking sector, an agreement athens would have to reach as part of a bailout agreement. markus: a terrible first quarter in the united states will weigh on the entire global economy. so says the imf and it's chief economist. the imf has cut its global growth forecasted this year to three point 3%, the slowest since 2009. the main culprit was a weak start of the year. when bad weather weighed down on that economy. let's take a look at the figures. 0.2% lower than the last forecast. the lower figure for the united states is expected to spill over onto neighboring countries like mexico and canada. the euro zone remains stable and so does the forecast for china. >> we know mechanical links between greece and the rest of the world are limited. on

alix: cyprus promises new proposals. will they be enough to fend off an exit. the energy trade falls off a cliff. we spoke to the ceo of a major power generator about how he is hedging his bets. in athens this the latesth all details and analysis. first, we want to get to what happened in the market in the u.s.. it was a stunning reversal for markets. a huge comeback. at one point, major averages were down over 1% and they have clawed their way higher. dow had a 20 six point swing. utilities and consumer staples leave the market. energy's and materials and industrials lag. it was a stunning reversal on a day where we saw more volume than normal. let's get right to julie hyman who was looking at some of these big market movers. julie: a lot of slings in the session. consumer staples, energy shares turned around. there was a move and utilities. this has been interesting group. year to date, the worst performance group. you cancer the philadelphia today. index up 2.5% this coincided with a drop in the 10 year yield to a one-month low. initially today, as we saw th

prime minister cyprus --alexis tsipras: i want to say no is about a better step toward an agreement we would like to sign. anna: a message that was tempered by his finance ministers suggested greece is ready to back down from its hard-line position. minister varoufakis: we are prepared to accept strict measures as long as the framework is sustainable as far as growth is concerned. anna: with greece the first advanced economy to default on loan payments to the imf and creditors standing united in the face of greek indecision, greece's future in the eurozone hangs in the balance. genie: we have been hearing from the greek finance minister and the head of the eurogroup. our business editor stephen carroll has been following that closely. what is everyone saying? stephen: because there are no longer talks taking place, this is a debate that has been playing out on the airwaves. we had yanis varoufakis say he would resign if there is a yes vote. he said he would rather cut his arm off than sign a deal with creditors that will not see some form of debt release. the argument has been that the

alix: didn't take two years for cyprus to regain capital control?oe: once you make that decision, it's not an easy one to undo. alix: they did support greece, again it was the scene of a german between berlin and paris. joe: austria being more sympathetic than you might expect. alix: turning back to bank earnings, we want to talk about what's going on in the trenches of the u.s. economy. from california to new york. john shrews barry is the ceo of wells fargo and joins us now. welcome to what you missed. wells fargo saw flat sales growth in the second order. what was your one word to describe the u.s. economy will -- right now? >> the one word would be mixed. we are still in a choppy gdp growth rate environment with a horrible first quarter. the second quarter was a lot better. it still reflects a lot of uncertainty in people's minds, but as you alluded to, there is small business optimism. the good news is that we continue to grow loans and there are few activities in terms of taking shares and deposits, people have been hanging on to more cash and

open.e had banks imagine that are banks did not have the problem of cyprus.roblems have a liquidity problem. the big shocker today was the resignation of your finance minister, yanis varoufakis. how should we interpret that move? guest: i think it was an act of dignity on his behalf. he did not want to leave any pretext, saying personal theerences that hinder agreement. i do not think this is the case. that we wanted to send a very strong signal that we are ready you canal, and interpret that as a sign of good faith on our part. joe: thank you very much for joining us. back to you, alix. alix: thank you. we will be right back. alix: "what did you miss?" i'm alix steel. on days like today utilities can be a popular safety trade. dominion resources is one of the largest gas and electric utilities in the u.s. joining us is ceo tom farrell. typically what do these kind of big event risk days mean to you? guest: thank you for having me. people back send into utility stocks. we still have this overlay for our whole sector, most dividend paying stocks, guilt stocks,

on a state visit to cyprus, the turkish president condemned the attack. >> i condemn on behalf of buckeyenation whoever carried out this atrocity. we have to condemn terror, no matter where it comes from. >> meanwhile, the prime minister said turkey is beefing up security along its border with syria. >> meanwhile, more allegations of the brainwashing by the islamic state group, thousands of boys old and training groups. this report is one boy who managed to escape. >> propaganda footage by the islamic state group. this organization says the boys are tomorrow's jihadist, but many are held against their will, including this 14-year-old boy who has escaped and wants to remain anonymous. objective with his little brother when they took over his village, he converted to islam and told his people were infidels who should be punished. >> they told us we have to chop off the heads of the infidels. they said the infidels aren't good, and the islamic religion is the best. they told us to hold the sword and chop off the heads because the infidels yetis are not good. the first time i could not cut it or th

alix: didn't take a few years for cyprus to end up lifting capital controls? joe: once you make the decision, it's not easy to undo. alix: france and austria did support greece. giving the divide we've seen between berlin and paris -- joe: it's easy to see austria being more sympathetic than one might expect. we want to get someone to talk about what's going on in the trenches of the u.s. economy from california to new york. the cfo of wells fargo joins us now. you miss.""what'd what would be your one word to describe the u.s. economy right now? don: the one word would be mixed. are still in a very choppy gdp growth rate environment. quarter, while better, still reflects a lot of the uncertainty in people's minds that i think you guys just alluded to in terms of small business optimism. good news for our business is that we continue to grow loans, to grow our pre-generating activities, taking shares, etc., deposits have been flooding in because people have been hanging on to more cash. we manage to grow our earning assets meaningfully over the course of the la

cyprus had a similar situation. and as the head of government, i cannot prioritize the bun dez tag, we will inform the bun dez tag rather quickly. on a pretty level and talk with the president of the bundestag and see how we will have this extraordinary meeting. there are good reasons not to ask the parliamentarians to come back from their holiday season now until we actually know that the greek parliament has passed everything that is re prerequisite. i would like to add to the question that has been asked before, you know, the greek signature like my colleague said; there anything that the greeks have contribute here? >> yes, of course. firstly looking at the rather high need for finance secondly the compromise to use the 50 billion not only for repaying the debts but 12.5 billion for investment on top of what jean claude already mentioned at 35 billion. as an investment package, so this is on top of it. and then, of course it is also shown in the promise of november 2012, regarding the further extension of the gr

as we have advised in the case of ireland, portugal, cyprus and outside the eurozone, iceland and it has worked. and the other leg is debt restructuring which we believe is needed in the particular case of greece for it to have debt sustainability. hans: a quick comment from here. we capital controls need to be in place until you have a new deal. manus? manus: let's leave it there. guy johnson and hans nick nols brussels. still to come on "the pulse." what caused the new york stock exchange to close for almost three hours yesterday? we'll have a look at that coming up next. ♪ manus: welcome back to "the pulse" live on bloomberg television and radio, streaming on your tablet and phone and bloomberg.com. official minutes from the federal reserve's june meeting show that officials saw the u.s. economy moving toward conditions that would support an interest rate increase. however, they also expressed concern about the risks from china and greece which have only intensified since the june 15-17 meeting. the bank of england will make its latest interest rate decision later. 41 economists s

so i flew to cyprus. i went to egypt. people told me there was going to be a war. this is '72. i wasn't reading that in the american papers. i was interested in that. went to jordan. met king hussein first time an interviewed him with tape recorder and didn't know how it worked and ended up starting it for me. that became beginning of a very longstanding friendship and i admired him enormously. and, beirut and syria and came back to princeton and decided i really didn't want to do economics. i wanted to be a journalist and woodward and bernstein were still kind of the heroes of the day. i came to washington try to get a job and found the progressive. a mentor of mine, early mentor was i. f. stone. izzy was nothing if kept call. he was mr. skepticism. would go to him with a problem or national security challenge only government could solve, just remember they all lie, doesn't matter republican democrats, independents and they all lie and always will and only thing you can depend on what they put in their documents sometimes he said. he would go through them religiously. he was a

cyprus behind them. they think he is a little bit of a hothead and difficult to deal with. think if they come in and there is a yes vote now, he is very intrigued with power. he will do anything he can to avoid re-signing. i think merkel and everyone else believes if they get a decent yes vote he will be gone. >> that would be good for the markets. >> i think it would be. that would lead to some greater sense of compromise and then we will move on to china. >> there you go. i know. a lot to talk about there. important stuff, actually. art, as always thank you. art cash shin. >>> the opening bell is coming up. labor secretary, thomas perez is on this morning's job reports. all that when we come back. >>> you are watching cnbc "squawk on the street." the opening bell is going to be ringing about a minute from now. i always turn to jim and say, what's the key to this market? i won't do that to you, sarah. of course the key today is going to be the focus on that unemployment number or the employment report i should say. again, art cashin saying i am not going to see a raise fro

intelligence and says the problem with a yes vote is it puts greece back to where they were before cyprusinto power. >> it's a vote for the state status quo which is what the greeks were against just months ago and so many of the polls are really too weird and too choppy to call so we are really going to have to wait until sunday to have a clear view of what is actually happening. the creditors are in a position where they knew at the time that they were investing in risky assets and there has to be account accountability and had to go back and negotiate and the position stated is they won't do that but greece is a democracy, as far as i know all the countries in eu are democracys so honoring a democratic referendum has to be in the core values of the european union. >>> nigerian government official says boko haram fighters killed 97 people while they were praying. several mosques were targeted wednesday night in the town and it came the day after the group attacked two villages and killed another 48 men and boys before burning both villages to the ground and we have more now from abuja.

tony: switzerland cyprus.ou look at the risks of those different options, what are they? you are making a big choice. do you want to of stakes -- up stakes or move out of greece? do you end up in the frying pan into the fire? what are the risks of going to the other countries? tony: the shipowner is the billionaire. operationally, the issue there is that there are much more people involved. if you are a shipowner with 50 ships and in operation with 200 people that is quite difficult to move. so cyprus would be better for them than london, for example. guy: when they talk about the threat of leaving, the barrier is a little higher than maybe -- tony: much higher. the people who might leave are the shipowners themselves. the structure that might leave is the registered ownership of the assets, which this is the thing that pays the nominal tax, the ship itself. anna: is the shipping differential the same as other parts of the world that rely on shipping? tony: it is parallel. we have something similar through --

anna: you are based in cyprus, a country that has had its own a aryans with capital controls.g, other than capital controls are easy to implement and hard to remove? marshall: that is one major thing. this five-year grexit seems to me to the nonsense. we had capital controls for two years and our problem was nothing like what greece's problem is. though what i would take from it is, if you bite the bullet, do the reforms, capitalize the banks, it is possible to get back on a growth path. i think the economy is starting to turn up and think are looking better now. anna: where does the euro go from here? it seems that these competing truths about the euro, one was that you could never leave, and the other was that there were rules attached the membership. they seem to be putting the latter of ahead of the former. where did that leave the currency union. i spoke to saker nusseibeh and he said they are treating it not as a currency union, but as a club that you are a member of for a little while. marshall: we are back to the old exchange rate mechanism, where one country decides i

a verynegative side well-respected publication, the eurozone are making contingency plans for cyprus if there is a greek exit from the eurozone. mulling still kind of and looking at this proposal. then there is the day after, which a little bit of a bead on. matt: my question is how people in greece will react if parliament passes something they overwhelmingly rejected. i can't imagine people in athens will be happy. >> the over 60% that voted no, indeed we see them in the social governmentsing the of the train them. -- of betraying them. you have a series of lawmakers theng if there is a grexit government will not be able to handle it. is get the feeling that this something of an inevitable solution for the greek government. the greatest majority of people actually voted no. erik: gentlemen, we thank you both and wish you a good weekend. the confederate flag has been taken down in south carolina. ofing more than 50 years history, closing a controversial chapter. it was a protest to his civil rights movement. is >> it is interesting we're doing it 122 years after doing the civil war.

this is about the size of the loan that cyprus is looking at. >> they like having people tie their netorth to the company. >> you interviewed lloyd blank blankfein. that someones could become a billionaire working for shareholders. it makes you wonder about the balance of rewards between employees and shareholders. that was earlier this morning. i tagged along as well. going along with the company and then look at where you are at. from very humble beginnings, that he pointed out earlier in south africa. if you make that type of money you must be working hard. i am out of here. enjoy the rest of your weekend. matt: it has been a pleasure. the global headwinds from china to greece. ♪ . . . matt: welcome back to the "bloomberg market day." i am matt miller. we want to look really quickly at the tesla shares and we heard that elon musk was going to hold a conference call and announce something special. he talked about making a cheaper model company -- cheaper model, something with a rearwheel drive. he is now introducing the tesla in sayingt only with speed but with ludicrous speed and it

. >> as delegates from the european union funded the restoration gathered in cyprus, they spoke in peace talks saying it may be only a matter of months before differences with the turkish side are resolveed. >> othello tower is once again open to the public. renovation work starts as emergency measures patch up what has been neglected. but the project grew into so much more focusing on the importance of saving a part of the island's past for future. caroline malone, al jazeera. >> well, that's it for now. that concludes our news. but we'll be back in a few moments time with a full bulletin for you. please stay with us. >> the greek prime minister tells vote tours reject ultimatums and vote know in the all-important bail out referendum. if hello i'm maryam nemazee and reports that the armed group boko haram has launched two attacks in a major city in northeast nigeria. it was the setting for

there will be haircuts on depositors like we saw in cyprus and the reality will be a lot harsher than with the new program. the greek government and the greek people will understand that. central-- the banks are to this and it puts mario draghi in the center. is that a bad place to be? >> they have done a lot of unusual policy. interest rates down to zero, lending programs up to three years. it is a short lending program. they are buying government debt, gdp-weighted or balance sheet, -weighted. i have always been skeptical of such a policy. europeanooks at the decision where the fate of grace will not be determined by the central bank. the central bank has its role in -- to play. it is looking to the leaders to take the decision and they will behave accordingly. made bade ecb decisions or has it been dragged along? >> they are filling a gap that was needed to be filled. if you look at the first program in may 2010, buying greek debt without any conditions attached in my view was a mistake. i voiced that at the time but life moves on. we are in a world where week debt and the program

greece is a bigger country and the problem there becomes that if it happens in cyprus and greece, whyannot happen in spain, italy, and portugal? in other peripheral countries? the slide for liquidity begins in peripheral countries. it is certainly a possibility. >> we were told that it would be doom and gloom, that the markets would fall out of ed, yet the market reaction has been stunningly call. are you surprised by this? >> i am surprised. sunday was day here, saturday was fireworks day in the united states and it appears that we are in the eye of a hurricane. and over the next few weeks we will take a look at whether the , whethert extend off or not they want a significant restructure for their $300 billion plus euro where the troika does not. that right office primarily government and supernaturally owned that that they believe will set a precedent for other peripherals in the greek plan where write-offs are inevitable, but actually i think -- i am going to say that the germans are being disingenuous with their portion of it because they have had massive restructuring of their ow

since the invasion turkey has inhibited cyprus.cibly relocating 160,000 greek cypriots and infusing the island with hundreds of thousands of turkish settlers. nearly 1,500 cypriots remain missing since the 1974 invasion, including four americans whose remains have not been located. religious artifacts and cultural relics have been destroyed in the wake of the turkish army's invasion and after 41 years of displacement are now lost to time. hundreds of churches and monasteries have been shamefully desecrated losing all sense of their historic and religious significance. sipe russ has been a steadfast ally and cypriots deserve an end to this senseless division. with negotiations under way, again, for reunification, let's hope this time next year we'll be celebrating the end of this illegal occupation. as it builds, turkey cannot be allowed to stonewall this democratic process any longer. turkey, the united states stand -- today, the united states stands in a unique role as a friend of both cyprus and turkey. as an honest broker to bot

you don't like to see abruptness in markets and what greets cyprus this morning. 1.0952.frey: it looks like that on that scale and we're seeing in in other markets as well and if they come back with not much of a change might be what markets are reacting to that. tom: is your basic framework to be optimistic, the u.s. in recovery and really europe away from this drama is actually doing pretty well, isn't it? your core framework. jeffrey: that was the story and the question is, does the greek events as they proceed from here undermine the european recovery because of the confidence shock. tom: american oil going to 53. brendan: we talked greece is a game of chicken and you talked about it greece is alone driving towards the clip. europe is not facing the cliff and watching greece drive off. jeffrey: that seems to be the case in the sense these are negative moves but they're not dramatic or nowhere near what contagion once looked like and what greece once meant for the global financial markets. we separated ourselves and there are limited financial linkages and the debt res

we are heard from cyprus, and waiting to hear from the opposition members to see if they can come upith some ring as strong as what he has delivered on state tv. i want you to go to bed now, you have had a very long day. my partner on the ground in athens. not just what is going on in greece. taking a look at germany. on july merkel says she will not agree to it greek deal just for the sake of getting a deal done. -- angela merkel. mark: bringing in hans nichols. ans: they have been very clear, no negotiations until after the referendum. that meeting just wrapped up. coming out, some of them minutes or's are saying along with camp,, they are the same no more negotiations until after the vote after sunday. that means they spent the next four or five days looking for public opinion poll, and you will start seeing certain europeans tried to frame the debate. ist they really want to do they want to say a vote against this is basically a vote for the drop. they want to make this a more cosmic, general vote. the broader it is, the broader the lens, they think they have a chance to get to t

if we look at the example of cyprus, capital controls state in place for 2.5 years. i think we are in for the long haul and greece. betty: you just heard bill gross 70%-80% chancea of an exit from the euro by greece. would you be in line with that? >> i don't think it's very helpful to assign these sort of rough abilities. i think would bill gross means is he sees the relatively high chance of a in exit. frankly, we just don't know. withve to see what happens the decision of the european central bank. extend will they emergency liquidity assistance? we have to see how the negotiations kickoff in the next few days. bear in mind that we have a deadline of july 20. that is the point at which the european central bank needs to repay 3.5 billion euros. if negotiations have not gone well till then, there is a risk of default and i think europeans would take a hard line on greece. mark: sunday's no vote, did it give greece and the prime minister of stronger bargaining position when they finally talk to international creditors again? from the greek standpoint, it does. of co

i think the answer to your question is probably cyprus two years ago, in terms of the nature and levelactivity. i think the other thing i would add is you might expect that on the other side of the coin the one u.k. bank that is actively involved in greece is hsbc. as in cyprus, the measures taken by the government affect all banks operating in greece whether you are a great national bank or a foreign bank operating in greece. we are in close touch with those institutions. the devil is always in the details with this sort of thing. as you can imagine, we are in close contact. mark carney: i want to make one last point. there have been regular dialogue with the ssm and the eba to relevant european institutions here to ensure as much consistency as possible for all the jurisdictions outside greece that are affected by these developments. >> that is important. as you know we have been supporters of the correction of ssm for the reason, as i have set a number of times that we want to do have an effective partner as a supervisor. we are seeing the benefits of that. >> governor, at the end o

even though this was passed and syriza and cyprus will probably have to have a new coalition, possibly - definitely a new cabinet, best of all it would be a government of unity, implementing these measures, it will be difficult. you wonder what the point is. the i.m.f. if we go to sustainable things in two years time, greece will erie otters twice the economic output. the debt question is interesting and concerns the high minds. arguing about sustainability. in reality, the debt owed to the eurozone's government has been taken off the table. greece doesn't have to pay interest for five years or principal for 10 years. it has to my e.c.b. and i.m.f. it's a spread body with its own rules. it's a paper tiger when they kick in. the question is what happens after the years, it will be unsustainable and have to be rescheduled. that's where the i.m.f. and germany will be at loggerheads. it will be good for alexis tsipras to get something out of the deal. raising liquidity for the banks is a good idea if the e.c.b. can be generous on its side. you touched on how he played this alexis tsipras.

in those days people forgot we had to go to cyprus because there was no direct connection between israel and any arab country. lewis our personal went to egypt. people told me there would be a war. was not reading that in the american papers. i went to jordan. i try to interview him with a tape recorder and did not know how it worked. he won. new line of starting it for me and that became the beginning of the very long-standing and i admired him enormously. and then routed syria. i came back to preston and decided i really did not want to do economics. i wanted to be a journalist. a journalist. woodward and bernstein were the heroes of the day. i came i came to washington to try to get a job and found a progressive. in early mentor of mine was i have stone. he was nothing if not skeptical. he was mr. skepticism. and just remembered probably would say every day everyday when i go to hell was some problem or challenge that only the government can solve he would say, just remember, they will all live it doesn't matter. they all lie and they always will. the only thing you can you can depend

cyprus too. they have been able to come out of it. portugal is growing again thanks to the exports. greece is suffering. the economy depends on tourism, christine. that is it. it needs to think of other ways to create money. the summer holiday, this is how it makes its money. other peripheral countries have done well. they are not happy that greece if they get debt relief there will be a concern compared to everyone else who had to suck it up to be honest. >> how, isa soares. you could see a huge sell off. john it was 1997 when the tibot was devalued. there was contagion around europe because of the big currency problem that wasn't contained. the u.s. exposure to greece is minimal. >> but the exposure to the euro is huge. >>> happening now. the countdown to the deadline is tomorrow. the iranian foreign minister said they are closer to a deal but secretary of state john kerry said we are not there yet. >> i want to be absolutely clear with everybody. we are not yet where we need to be on several of the most difficult issues. and the truth is while i completely agree with foreign mini

alix: cyprus promises new proposals. will they be enough to fend off an exit.gy trade falls off a cliff. we spoke to the ceo of a major power generator about how he is hedging his bets.

and the cyprus example as head of government i cannot preempt the provisions of them. we were informed. in the committee level our talk to the speaker and later to the representative of the proletariat group how we bring -- parliamentary group how we pursue. before we know that those in greece have the necessary decisions where it will be then and we will see. >> i would like to perhaps built on the question of my colleague on the greek ownership in this. it is not -- it does it exist? angela merkel: it does exist. the high financial requirement is there. it is also there because there is a compromise of not using the 50 billion euros exclusively but also for investment and including an addition to the investment package that jean-claude juncker put on the table. with some 13 billion euros we mentioned. and will have to come back to the promise in regards to the grace period and promulgation of maturities and the earlier program ground that program that was -- program that will significantly late. now it will be done and brought forward. a number of areas where we acco

after 17 hours of marathon talks, it seems alexis sip sisis cyprus the greek prime minister has bitten his lip and caved into creditor's demands. he's asking for a three-year bailout and getting $96 billion. it's the third bailout for greece in six years. but, carol, it won't be easy because greece has a lot to of work to do. a lot of belt tightening. they'll have to push more reforms through. more legislation through. in particular the v.a.t. as well as pension reforms which was a huge red line when he told the people here no more austerity. now he faces a huge battle as he arrives here in athens. because he had just a 48 hours to pass the legislation through parliament. it won't be easy. there are members of his own party who say they won't support him. opposition parties say they'll back him. the ecb has said in the last few minutes they will not add more liquidity into the banks. . >> thank you so much. >>> after months and months of talking we could be on the cusp of a historic agreement over iran and the nuclear program. a deal is actually in sight. in broad terms, that means ira

haircut in order to recapitalize the banks, something that happened in our neighboring country of cyprusat most people did is they just said, well, we're going to live at the bare minimum and see how things go. but it also hurt a lot of companies, because, you know, companies need transactions, they have transactions with the outside world, for example, tourist companies or, you know, travel agencies. they got a lot of the contracts because they couldn't pay up front with the -- secure deals with airplanes or airplane companies or travel agencies outside greece. so what has happened, it really has slowed down the economy and, you know, basic entrepreneurial daily work. and that has created a deeper recession. this year at the beginning of the year we were predicting or projecting a growth percentage of maybe 2% which is modest but much better than the recession we've had the last seven years. but now because of these controls and the long -- liz: right. >> -- insecurity for the last five months, we are going into recession. deep recession of maybe 2 or 3%. liz: it is extremely disturbing

cyprus has been divided along what is known as the green line since the turkish invasion in the northome parts of the line is indicated by barbed wire fencing and concrete. to stem the tide of migrants, the united states has built security fences along a third of its border with mexico. so far more than a thousand kill meters of the barrier is fortified with walls and patrols. let's get more from martin prat. he is a specialist in international boundary making and dispute with resolution. thanks so much for being with us. my first question to you is do walls work? do they actually keep the undesired out in the name of national security? >> i think there is some evidence that states which invest heavily in border fortification do see some success in reducing the frequency of attacks by small groups from the other side of the barrier. the israeli security wall or whatever you want to call it has at least in the eyes of israel added a level of protection to its citizens. >> right. >> but -- and there are two big buts firstly, it really requires the entirety of the boundary to be -- to be

the press depth for -- despresent is cyprus where banks were closed. panamain' 1989 went on for nine weeks but the record is argentina in 2001. that went on for a year, a year, where the banks were largely closed. they'd open now and then but it was scattered. charles payne and ashley on that. charles, this lingers banks stay closed this long, you start getting some serious social unrest. >> absolutely, and it won't be that long, either. let not forget we're not just talking banks about medicine, food. this is a country that imports almost everything. it is a serious situation. even if they resolve it, that's let's say they cut a deal by friday. it could a major humanitarian issue between now and september. this is a major problem. they cannot go much, much longer. it that was bravado that got him out but now they're saying, what he think? >> they celebrated and then didn't realize, or maybe they did. but ashley, what this fallout for us? we largely buck the trend. the interest rates down, oil prices down. so that's good for consumers. i guess if you'r

one of the other 18, 15 are going to hold a very hard line from what we can tell, france, italy, cyprus are only ones more flexible regard to grouse and what it means to maintain its position within the eu. as for position on the ground it is more desperate day after day. at the atm we left back to the hotel after miengt, and there were lines at atms every one we pass. a lot of atms people are coming out 24 hours a day trying to get 60 euros a lot of people are getting 50-euro note and employers right now asked to pay their people in cash if they can. hay do some of the major companies in greece are paying employees in cash because cash is king right now. interestingly liz another aspect of life here, you can't use papal. you can't use amazon, you can't use the apple app store because your payment would go outside of greece. and no payment, no money can go outside of greece. so those have been shutdown. westen union as reopened to have money from the outside but goes directly into an account and they can only get $60 a day out of it. that is kind of life here. as for what's beginning on

after 17 hours of marathon talks, it seems alexis cyprus the greek prime minister has swallowed his prideopean creditors. it's the third bailout in three years. it's $17 million more than being discussed. with the bailout deal comes strict, very stringent mea

this is completely in line with what we've had by way of a program, by way of other programs also cyprus for example as a head of government i cannot preempt decisions of the parliament. we will information them very quickly at committee level and will talk to the speaker and then later on to the representatives of the parliamentary groups as to how we pursue this. i think there is very good reasons not to come back the mps from their vacation to aplenary meeting. >> thank you. i would like to -- perhaps build on the question of my colleague on the greek ownership in this paper because there hasn't really been any answer to this. where is it and does it exist? >> well it does exist because there is a very high financial requirement is there. it is also there because there is this compromise this of not using these 50 billion exclusively for debt redemption but 2.5 for investment including, actually in addition actually to the investment package that jean-claude juncker put on the table that we would concern with some 30 million that we also mention here. and we will have to come back to