should greece leave the euro? whether they stay or go will the euro have to change. greece's problems going to cause problems around the world. stay with us, it's "inside story". >>> a day in a life in athens where it's the norm to have to hurry up and wait in line for hours to get your money, and you are limited to withdrawing 60 euros, or around $67 a day. welcome back to "inside story". i'm ray suarez, greek drama this time on the programme. william cline and george from cato are with me. william cline, is it worth the pain? you described it earlier, how complicated it would be to get out of the euro is it worth it for the eurozone, or greece to do what is necessary to keep greece in the family. >> yes it's worth it for greece because for the eurozone, what we were afraid of in 2012 was contagens of italy and spain, if greece were out. that's been overcome because the european central bank made it clear that it will stand behind the countries that are having the business in order. >> since it didn't happen in the other countries, did it lessen the downside risk of

the euro, 1.1166 on euro-dollar. a great deal of movement around this story.etting closer to a deal. euro stoxx 50 index futures rising as i speak. they suggest we are going to be higher at the start of trade perhaps by 45 points or so. futures all turning positive. another comment coming through, we are close to an agreement this from somebody on the ground in brussels. a lot to digest. the news is coming just before the start of the european trading session. ryan chilcote is on the ground in athens with a guest. ryan: let's talk more about the market. i'm joined by antonio, a director at dexia voted the best investment bank by euromoney, the best in greece. thank you very much for joining me. all kinds of positivity from a few different sources now. what should we expect from the open? i know you think there's been a real shift here in greece in addition to the headlines. >> i think the developments are generally positive for two reasons. one, you have measures that were necessary in order not to have a middle solution to have a complete solution that would

you can get exposure if the euro should advance. everybody wants the euro to advance.ant that because they don't want a stronger dollar to impact earnings. julie: we have about 30 seconds. i want to mention what has happened in the vix. last week, we saw the biggest one-day increase in two years. today a more muted gain of about 4%. this volatility back? --is volatility back? kevin: the biggest day into yo -- in two years should not cause alarm. we will stay in this range. would are below historic averages of 20 -- we are below historic averages. of. 20 17 and 18 looks like we are ok. julie: kevin kelly, we appreciate it. stay with us. more "bloomberg market day" coming up. ♪ juliepimm: good day. betty: welcome to the bloomberg market day. after winning yesterday's referendum, the pressure is on. can they come up with a plan to keep greece in the eurozone? pimm: investors in china shrugging off the government's latest attempt to increase stock prices. betty: rory mcilroy with a serious injury. how has being out of the british open what impact has sponsor ,nike. pimm: g

we learned that euro area finance ministers agreed in principle to extend a 7 billion euro bridge loan to greece that has been confirmed by the irish prime minister. matt, this is critical to greece , because it has a big loan payment due to the ecb on july 20. it does not have enough money to make that payment, if they would miss it they would find themselves in a world of trouble, more so when it missed the imf loan. matt: the lion share of the 7 billion euro bridge loan would go immediately back to the emf -- imf and ecb. the 19 member euro court -- euro members that use the currency had agreed to this, now up to 28 to agree and that means you will have people chipping in who do not use the currency. eric: they are trying to figure out how to firewall those nine members of the european union from potential losses on this bridge loan. i would point out that greece needs to make government salary and pension payments toward the end of the month. we still have yet to hear from the european central bank as far as liquidity for greek banks. we may get news on that at 8:30 this morning wh

dollar and short the euro. so perhaps a brief period of strengthening that we have been seeing in the euro despite the lingering fears around greece but most strategists we speak to are long dollar because they're putting their money on the u.s. economy recovering and we'll get an indication of the jobs report. >> there's people recovering positions and stuff like that. makes it hard to predict what's moving it. >> let's get back to greece. euro zone finance ministers are due to hold a call on athens. the last minute bid for an extension of the bailout program came too late to prevent greece from defaulting on its loan with the imf. meanwhile, pmi data for the month of june released in the last hour shows the greek manufacturing sector has fallen deeper into contraction territory. >> now how are investors reacting to the greek crisis? nancy is standing by in monaco with a prominent player in the greek market. nancy, over to you. >> thanks seema. that's right. we have been talking to several high level investors

only 50 euros. at what point, this has been your business at the imf in the past due banks become insolvent. it has been cut off because the greeks missed a payment. >> not so much the lifeline from the imf but the lifeline from the european central bank approved emergency liquidity assistance to the banks. if they can maintain that, if greeks can come to enough terms after this referendum to indicate they will come back to the bargaining table hopefully the european central bank will maintain that emergency liquidity assistance which could keep the greek bank's open. the imf assistance would do that. liz: if they allow the e l a to keep the spigots open isn't that just rewarding that behavior once again? >> i would expect it would be on the basis of greek invitation that they're serious about negotiating a program, undertaking these reforms and the imf, the ecb, european partners would be looking for measures, looking for the greeks to make proposals to the parliament to undertake these commitments

the euro currency is unlike youth spreads. not a clear play on the future of the euro. we often see a knee jerk reaction that negative news on the euro prices let the currency down, only for the currency to go after recover. we could, for instance have the following. if the u.s. fed sees that the situation is coming down in europe, the u.s. fed is probably more likely to announce that it will raise rates in september. that could actually mean a slightly stronger dollar. >> holger you said when we were chatting earlier that a grex the does remain a small risk for europe. but how much less of a risk is that today than it was yesterday. >> well i would say this remains a significant tale risk. it say bit less of a risk than yesterday. it is probably somewhat around 30%, 35%, as this deal still needs to be implemented. >> and in particular, who is the most likely to block this thing? is it the greek parliament itself? or other countries around europe, of course, the likes of finland, netherlands austria, slovakia australia, these are countries that have sparked any oppositi

to perhaps 200 euros. it won't cost the ecb a whole lot of money, maybe something in the single billion dollars worth or single digit billion dollars. that's one. the second one is how everything has changed at all this week. my understanding was the greeks and maybe even -- sorry, the germans and maybe even the french earlier on this week were ready for the greeks to leave the euro zone. that has changed after the proposal from tsipras. tsipras may emerge here some of the thinking is in germany as a hero in greece if he gets the debt restructuring that is kind of the key to the political lynchpin here. if they get that restructuring tsipras could say look what i got from you from that referendum. and we have these other reforms. that's the deal we're waiting to hear how it turns out. germans have been glaringly silent all day after greece put its proposal in. >> steve, thank you so much for that update. steve liesman in frankfurt, germany. he said the germans have been silent on this. does that cause you

the euro or not the euro. i mean, these issues should have been solved a long time ago. >> but only in greece. the other countries, spain portugal, ireland, they're quite better off now. >> is it so though? is it really so? >> it is so, of course. >> there is still very high unemployment in spain. >> but -- but -- employment traditionally comes after the turnaround of an economy. it takes half a year a year before employment picks up, after a recession like spain had. that's how it goes so -- >> but this is a lost generation even is saying. it's 25% of young people in spain. in greece, you've got 50% of young people unemployed. how can this possibly be turned around in a couple of years? >> well, i think if you look at ununemployment of young -- unemployment of young people, you do have lots of reasons for that but it's not only the economy and the recession or a turnaround of the economy. it has a lot to do with, how do you treat elder people in their jobs? will they be able to leave the jobs? will they be ab

euro stock is up 2%.s seem to be the beneficiary of this news in a deal that has been struck with greece up by 2% for euro stock. take a look at the bond market as well, italian bonds rose last week and yields declined. there is little change for the italian 10 year intraday. italian bonds rose last week. spanish bonds rose last week. the movement is seen in the stock market, not the bond market. the euro is falling against the dollar. manus: the old days are some of the best days. mark barton, thank you very much. chinese exports are up for the first time in four months. overseas shipments rose. this is frist evidence that the chinese economy is stabilizing. they will release gdp growth data on wednesday. there is they are -- they are close to a nuclear deal. there have been 16 straight days of talks in vienna. an agreement has been reached and a key issue. mexico's most the tortoise drug lord has escaped from jail for a second time. officials say he disappeared from a maximum security prison near mexico

the euro dollar. it's been moving in the opposite direction to european equities in terms of responding to greece news. why is that? >> it's been in recent week with these safe haven qualities and we can go back to the beginning of the year and see why that is. in the beginning of the year we had the ecb announcing the quantitative easing program and that of course pressured down yields in the region and as always quantitative easing has the effect of driving investors into riskier assets and the fact that the euro went down so much at the start of the year suggests that many of the flow was moving out of the european region into higher risk assets outside and recently because of the increase in risk aversion related to greece and then money started to come back into core european assets and of course what that means is that whenever those glimmers of better news happens they take on higher risk assets and move out of the euro zone. it can be explained and that means if we do get it over greece in the

euro? >> nobody is ready to pull out of the euro. it will be bad for greece and for the euro as an idea. they expressed their desire to stay, but not to implement something that had catastrophic results in greek society. after seven years of recession coming to do not need more austerity to make the economy were. need growth, less austerity. make the economy work again, to restart the economy. that is what we need. that is what we are asking now. it is a very logical plan. we are ready, for our part, to accept all possibilities to implement the program to make reforms that will help what has happened over the last five decades. we cannot do in five months with the others did not do in five decades. the last five months we have been under very heavy pressure negotiating all the time. ultimatums. i do not want to go back into the past. it will benefit both sides, i believe, i'm sure of that. >> thank you for taking the time to speak to us. now to other negotiations but this time on a nuclear

is, this could be a weight on the euro. it could boost the dollar against the euro.heard from jeff that may be is already baked into the trade. dollar strength is something janet yellen is very wary of. --could eat into u.s. >> manufacturing and exports. i'm going to split. have a great rest of the day. you have a great wednesday as well. see you tomorrow. olivia: don't go away. still ahead, we will head back to the conference where betty liu will be live with the chairman of hatch beauty. ♪ ?wk??????????????óóó???????Ñ?Ñ?? olivia: welcome back to the bloomberg market day. let's take a quick look at where the markets are trading at this hour. he was equities moving higher as hope emerges that we may actually get a deal over greek debt. this comes after alexis tsipras sent a light a letter that late-night letter to creditors asking for a two-year extension any third bailout. you are seeing equities trade higher around the world. gains and financials and materials. energy the only sector in the red. we do have breaking news -- crude inventories. julie: we are seeing an

the euro.his is the last three days. lower at the start of the asian session as the foreign exchange market picked up. we dipped below 110 and came up in the hours that followed moving a little higher. that initial flight to safety in a number of asset classes, definitely present but moderating a little bit. looking at some of the other asset classes, you can see that as well. look at what happened to the yen. again, flight to safety but moderating a little as we get into our stride on this monday morning. how long will any calmness last in the london session? we will have to see. we may see that flight to safety resume. the treasury yield, another expression of the flight to safety trade this morning. yield coming down on ten-year treasuries, but those moves have held. 2.4% on friday, 2.2 percent now. those early morning flights holding as i speak. let's get you up to speed with what is happening in greece. let's get some perspective from the ground. greeks backed alexis tsipras and voted agai

and we looked at the statements of september 2012 of the euro group and we that said the euro group wouldng if necessary, to adopt further measures such as longer grace period and longer periods for the debt repayment. so this is something that that will be talked about once there has been a successful appraisal of this new greek program. but we have said that a nominal air cut is not an option for us

a weaker euro, a stronger pound, a seven-year high for the pound against the euro.xt, we wrap up quite a week. we will talk chinese stocks crude oil, and sterling after the break. ♪ >> interest rate would perceive slowly but is about half as high as historic averages. in my view the decision as to when to start to the process will likely come into sharper relief around the turn of this year. jonathan: it has been a busy week for markets. let's wrap up. the last five trading days the euro hitting its lowest against the sterling since 2007. mark carney's the rate debate on fire. then to china, less to the chinese government took extraordinary measures to halt inequity crash. we track the slow thawing of the frozen markets. 90% are halted. next is -- 19% are halted. next is crude. it will eventually relieve iran of sanctions. the prospect of new crude is pushing a lower. other moves, that is almost it from the moves. up next is manus cranny. germany storming ahead, quite a run despite the mass that is the greek economy. manus: everything is maintained in greece itself

going in the line and getting 50 euros, maybe they can make it 150 euros, they will not go on the linery day. if we allowed - if greece allowed right now unlimited withdrawals, the banks would collapse. no matter how much money the europeans or anyone else put in them. they cannot do that. gradual trust is lost, and it takes a long time to be fixed, to grow again. they'll have to keep capital controls even after opening the banks. >> not so much the people waiting to withdraw 50 or 60 bucks out of an atm, but people with significant amounts of money, are they trying to get their wealth out of the country? >> they cannot. they cannot get their money out of banks. if they have money at home, they can fly out with them. that's no big deal. however big or small your account is in the bank right now, you cannot get more than 50 or 60 a day. >> let's talk about the greek people, as we mentioned earlier in the programme, they put up with a lot to get to today. is it worth it. was it so worth it to stay on the euro and say alined with the e.u. that the pain will be valuable end. >> people unde

the euro now higher at 111 against the euro dollar.ssion high in today's trade. >> we did see some yield falling earlier in trade as that continued on the day. let's get a quick look at it now. as you can see it's at 15.6% so those moves, as you can see green across the board. a bit of buying and yield compression but still elevated of course. oil prices bounced a bit today. up 1% to brent to 59.2 but this is the end of a soft week for oil prices. u.s. secretary of state john kerry says there's no rush for a deal on iran's nuclear program. negotiations in vienna could miss today's deadline. >> we also recognize that we shouldn't get up and leave simply because the clock strikes midnight and i emphasize, given that the work is technical and the stakes are high we will not rush and won't be rushed and won't let ourselves be rushed through any aspect of this. >> let's talk football or perhaps i should say soccer given that we're in the second hour of the show. it's less than a month in the kick off in the new season. s&p capital iq produc

money market rates in the euro, and they really want to encourage a weaker euro. a both sides of the lending a very much driving that. jonathan: we at the deck above the other side of the trade, the dollar. the euro situation does that remain the biggest driver of european stocks? it is been the euro in q1 and q2. with a really be about earnings? yogesh: because of a weaker euro, would actually be elevated. as a result, you will see price appreciation. everyone is in agreement with the markets to see dollar strength. we just look at bursting prices and a fair value. the euro already 18% undervalued. you will just an event like greece put massive pressure on the earnings. it really has not budged much. so whilst the market is talking we wonder whether that is really going to happen. jonathan: would you be brave enough to take the other side? yogesh: this is one of the many decisions you have to get right away. jonathan: you will stay with us and we would continue the debate after the break. they're going to return -- is that a problem for audi? a lot to talk about

in fx, there's only one trade we are looking at euro-dollar and euro crosses.out 1%. everyone will be watching that one when asian trading starts on sunday evening. manus: thank you. varoufakis said he would attend a "no" rally this evening. francine: we will be bringing you live coverage of the greek referendum. on sunday, july 5, there will be coverage throughout the day. manus: for a look at how the greek crisis is impacting the country's exports, that's talked to erik schatzker. erik: it is christina's a calorie this. she is the president of the panhellenic exporters association. let me ask you this question -- what position has your association taken vis-a-vis the referendum? christine: let me answer in a different way. our association, the members of our association have members of every -- of many parties of greece. it is not a state association. we are elected. we are going to take any part if it is political. eric k: but the vote has implications for your members. christine: yes, the implications will be very negative if they vote with no. erik: why is

the question is, is there anyone them andhe euro beside is the euro going to be dominated by the eurories? i think the answer now is, there will be more countries are waiting to get to the euro and holding off or at least sympathetic to the idea there should be eu membership without the euro. that is good. i thinkhe other hand, it shows the way the french and the germans are driving decisions in the euro area. the only way the euro area survives long-term is centralizing more. i am not sure if this works for britain, at least lyrically, in the near term. this work for the international monetary fund and christine lagarde? : i believe the international monetary fund should be looking at ways to get out of this. they should get the payment of the money they are due, return the payment to their members and be ready for the next crisis. they should not be doing long-term monitoring of greece, partly because this really is about settlement of debts within the euro area. partly because the amounts of money involved, well necessary for greece, are very large, so it is sort of unfair to other

we will see how the euro is faring. a little late down in the euro leg down in the euro as well.tocks have bounced back in china from a multi-julia gillard selloff -- multitrillion dollar selloff. the green.mly in this weekend come investors have a chance to rest and reflect after one of the most turbulent weeks in the history of the country's market. david: after what's been the most eventful week in the , the dust hass started to settle. toelity, goldman starting buy. theset has weeded out valuations. it's an even more overwhelming by asset -- there will still be debate whether it's -- what how far china was willing to go to prevent this from spreading. most are expecting the central bank to continue using. there is certainly a strong case to be made that this is one of those rare by and situations. still ahead, if you are worried about traveling to greece, we will tell you what travel experts say you should do to prepare. bring a giant iron safe. ♪ matt: welcome back to the bloomberg market day. the euro is weak, so americans are reaching for a summer getaway on the mediterran

euros because they have run out of 10 euro notes. weeks since the moment the banks have been closed, one man says that he has had no business because people do not have cash in their pockets. other reforms are happening at a faster pace. the food and beverage items on my hotel bill were taxed 10% higher than a couple of days ago. the smaller restaurants and kiosks are not having this imposed until monday but we are seeing people on the streets with less cash, especially when you have 60 euros per day that you are saving up until the end of the week. manus: caroline have a lovely afternoon. caroline hyde in athens. what does the european commissioner have to say about what was next for greece? >> i wanted to get the response to that. how are we seeing the creditors divided on the issue around greece. who wants to see a reduction in the overall debt, and who says that i haircut is off the table we still trying to get to the bottom of whose ranks what. what member ascus had to say about was that that is the broad concept and still on th

them are outside the euro. the e.u. most of them are not in default. they go on pretty well. so i don't understand. the euro is a subter e-terfuge. -- subterfuge. when we talk about going back to the lhira people start panicking because they think of the lhira 20 years ago. strong lira. 1-2-1 cross rate. what would happen? we would have an immediate shock. a 20% 230% g.d.p. reduction. but that's what we already had. since we joined the euro in 10 years we have lost to germany 25% of our industrial production. we have doubled our youth unemployment. we have increased our public debt. our unemployment rate is among the highest in the world. there is not a single sector doing well. anna: let's talk to bob parker, senior advisor at credit suisse asset management. bob, before the break we were talking a bit about how you think greece, the possibility of a grexit could be back on the agenda. so do you think that the -- the germans continue to be as big of fans of the euro as they've been and is that the key deciding

and a topline figure of 60 billion euros. the 50 billion euros is the next package. there is a 36 billion share that they say that eu member states would have to come up with. it is this idea of debt free profiling, changing the maturities and adding an additional 20 year grace period. mr. tsipras has said he will be in brussels on monday to renegotiate a deal and he says they can do it quickly. you heard yana's varoufakis tell guy that but it might not be that easy. increasingly from the germans and other european leaders that it will be very complicated because the old offer is no longer on the table. here is what mr. vasquez said this morning. it would be wrong to assume that a no vote would strengthen greece's negotiating position. one other quick thing about this number is that it relies on gross assumptions that may not be accurate. they say zero growth for 2016. we are in recession right now. hard to see how they will pull out of it this year. they see it picking up in 2016. 3% growth in the eurozone is optimistic and that is what is hurting the analysis. to g

jus looking at thet euro. euro-dollar up 1 1/14 percent up the most since june 8.ng reaction. with one of the biggest moves, a five month high. we are up 2% on euro-yen, up the the most since friday, october 30 1 2014. more headlines. we will bring them to you. we head to south africa and speak to the former reserve bank governor. we will ask him what he thinks poses the biggest issue to his country, the crisis in greece china, or the federal reserve. ♪ manus: welcome back to "the pulse" live on bloomberg tv. early this week it was announced that a new development bank is being established by the brics, brazil, russia, india, and china and south africa which each country will contribute and we will end up with a total of $100 million of financing. joining us from johannesburg is the former governor of south african reserve bank. and a non executive director of the new development bank. it is tito mboweni. great to have you with you -- with me this morning on bloomberg. you have got the capital. we are ready to get to the point of activating this new development ban

let's look at that euro-swiss. all you need to know is the spread circle is a one-year out that -- bet that sweden and switzerland will have the knockout if act. this is not about greece. it's about the knock on effects to the euro. brendan: there are long-term concerns about the euro. forgetting greece, the chart reads out to the tenure. this is a long-term debt -- bet. tom: we need to begin in athens with erik schatzker looking at the protests last night. we will go to hans nichols in frankfurt in a minute. greece has to get to july 20 or maybe july 7 with a lack of cash and the potential issuance of iou's. we begin with hans nichols in berlin and eric schatzker in athens. are there iou's on the street at this time? erik: there are only pamphlets left out on the street. more than 61% in the referendum voted no. this morning, who is going to be the next finance minister? the finance minister unexpectedly resigned. what we are trying to figure out is did he resign himself or did the prime minister push them out? th

he said, we cannot get more than 50 euros or 60 euros.t been spending and my shop for the last three weeks. clearly a concern. we are starting to see the limitation of some of these reforms since the vote on the bailout package. we are seeing already vat hikes. i got my hotel bill 23% on food and beverage rather than 13%. implementation is one of the key questions. some of the votes are already playing out for those living in greece. back to you. anna: thank you. they know what the ela is down in greece. i even heard a conversation about that sustainability in my local supermarket. let's get back to the chief currency strategist at bny mellon. we have talked about greece, the u.s.. the broader story around the eurozone is one mario draghi was at pains to point out. he was talking about the underlying growth story. as many have pointed out, there are reasons to be moderately cheerful. guest: i think that is true. in part, i would argue it is at least a little down to the good job of the ecb has done. astonishingly good job. three days befo

euro trading flat. it had spiked and recovered those losses and basically flat 1.11 we saw it drive higher and stocks the drive higher. mario draghi left without a comment. he has plenty of work to be done. the greek banks capitalizing now. will it extended the ela? it has been cash. it is on the mind of the president of the ecb. we will keep an eye. christine lagarde saying the greek deal is a good deal to rebuild confidence. hearing from finland's leaders say the greek proposal is a step in the right direction. and he helps everybody respect greece's deal in the eu. the prime minister of spain a saying that. jonathan: nejra, yesterday if you told me there will be an agreement, i would've doubted it. here we are with an agreement. the damage that has been done to get there. yesterday, more austerity and more from greece by wednesday. on top of that, a divide playing out publicly between france and germany. is it one of the dominant stories playing out for you? nejra cehic: yes, it absolutely has, jon.

greece needs to be part of the euro zone. the only sustainable way to keep the greek economy from falls again into a debt trap but now it's up to the prime minister that has the historic strength but also the historical responsibility to deliver on his promise. >> do you toous him to deliver both keeping greece in the euro zone and ending the ruin yus austerity policies? >> 60% of the greek people believe he has the mandate, and we hope he will deliver the mandate. that's what matters, delivery. >> you know full well that european governments including perhaps the bubble of the germans desperately hope that this referendum would result in the fall of this government because they do not see this as a government that they can do business with. >> i cannot accept any government telling the greek people how we were the government, but on the other hand i understand that -- i said before that only with a balancing budget and it was a gain competitiveness. that's the only sustainable recipe for greece to become a growth economy aga

euro, you have to leaf the eu. we're looking at very, very large stakes here. the sniet mare scenario would be no new negotiations, no more european financial support to greece, which would mean that the banks would have no money and the greeks have to return to the drachma. we're looking at devaluation of the currency and followed by inflation and a lot more misery for the greek people and particularly as it was in the situation it would be the poor who would suffer the most. now, the other scenario is one that's already alluded to by a number of european officials including the presidents of the european parliament martin shunts who said that europe would not leave greece to its fate and hinting at the idea there could be more emergency eu loans, even if this situation at least to pay public servants in greece and keep vital services like transport, power and hospitals working. another possibility that has been alluded to i about the imf is this idea that greece's debt is ultimately unsustainable. certainly now t

restructuring the euro zone may not be so easily done. al jazeera, frankfurt. >> an associate professor at the university of athens said it would be catastrophic if geese doesn't reach an agreement soon. >> this is extremely dangerous. i think today is the judgment day. i think that today, there should be an agreement, otherwise the situation for the greek banks and stability of the greek government is going to be quite dangerous and precarious. this is going to be catastrophic for about greece, not only economic, but political pain. this is going to be catastrophic for my country. i believe that the greek government should not give arguments, should not support in a way the people in the euro zone, in the european union who think that now it's a great time it's a great opportunity for them to get rid of this. this is going to be a mistake a mistake for anyone involved. >> in syria act visits say the bombarding of rebel territory along the border with lebanon forces backed by hezbollah allies are trying to push out al-qaeda. the town lice

pimm: the euro, where are we? brendan: i would describe this as nonplussed the -- nonplussedness in the euro. we did not get the pop i would expect. pimm: nonplussedness? brendan: a technical term, clearly. have yeth greece, we to reach a deal. alexis tsipras agreeing to creditors demands. now he needs to get the sign off from his parliament. brendan: the ecb is waiting for greek lawmakers to approve to recapitalize banks. that could come this wednesday. olivia sterns is in athens. olivia, what is the most important development right now that athens is waiting to come out of brussels? olivia: the most important development is sippers himself. everyone in athens is waiting for him to return to parliament, where he has to convince lawmakers to approve a package of austerity measures that is much harsher than the package that was rejected by referendum popularly about a week ago. there is a long to do list of what he has to get lawmakers to approve. it includes new increases in sales tax, new cuts to pension payments

this is the euro group meeting. members of the euro zone and at this point they don't like auspicious for too much progress today. >> he was setting the tone this morning with the comments and as much as he talked about greece should stay within the euro zone, he took a little bit of time to criticize the greek's previous negotiating style. he accused them of shooting from the hip and occasional outbursts and if that tells you anything about the reception that the greeks are going to receive here it probably will be a fairly cool one and at this point, very hard to see what the greeks will put on the table that will take these negotiations forward but i don't want to be too pessimistic because as we have said in the past you know remarkable ability here in european politics to see rabbits pulled out of hats. however the process is. back to you. >> thank you so much as ever. now let's give you a run down of what to watch this trading day in the u.s. may trade deficit figures are out at 8:30 a.m. eastern. the gap is e

you will break up the euro bloc.ecting markets but by humans and human rights. , as a germanng national, i am ashamed to watch what is playing out. this is not what we, as europeans, built. #eurosummit, #tsip rasleave. thank you, you bond. -- yvonne. if you use twitter, it is easy tuesday in touch with us at "trending business." rishaad: let's have a look at the trading day. the lastonce to put week behind them. hang seng showing more losses at the start of the session, off by 1%. it opened positive and went into negative terrain. today, about 1.1% on the upside. a -- trade data beating some estimates. kospi up by .75%. taipei too. .5%.pore up by coming up on the other side of the break, why australia is cutting funding to one renewable energy source. and a more in-depth look at market action after the break. ♪ next china's exports rising into or the first time in four-month. you one values. the shanghai composite trading slightly higher. second-quarter gdp figures arrive on when they. eurozone leaders gives an ultim

my 120 euros over six days is de facto 20 euros a day. so all this talk of 60 euros a day exaggerate rates if you like how much money many greeks are getting. and don't forget that this is a population which is disproportionately old. another factor is a practical factor. we're told the greek banks are running out of 20 euro notes. i've seen this myself. many people queue up and there aren't be 20 euro notes. the practicality for people is even more difficult for the official capital controls might suggest. >> okay barnaby phillips thank you very much indeed. let's go live now to paris jacky roland is there. we are hearing the impact on ordinary people they will know what's at stake to kind of come up with some kind of coherent line. >> yes, and in fact we have heard reports that already there has been telephone conversations between angela merkel and alexis tsipras during which greece has been invited to present new proposals to a meeting of euro group finance minister and heads of government which will take place in brussels on tuesday.

in the fx market it is euro weakness. the euro starling dropped below 70 pence. a 2000 seven low. it is rocky time in three hours. later in the day, it will be time for mark carney to speak. what will he say about the rate policy for the bank of england. the dollar parents 901. it is mario draghi time later and janet yellen later. welded stop them from hiking rates. that is a question that might not be answered anytime soon. manus: in 25 minutes "surveillance" takes the air. tom keene, i very good day to you. it looks like all of the eyes are on the ecb. reprinted a great article on bloomberg.com. five questions for mario draghi, with 4 being on greece. tom: i'm fascinated to see what happens in the next 48 hours off of the ecb press conference at 8:30 new york time. and then what the german government and the governments of smaller continental europe will do. we have without question a giant of economic -- of international economics. it is a really good time to have professor eichengreen. it will be a focus on ecb day. we will blather about the announcement. the

in the euro group we will pick up on the work. we have a euro group this afternoon after i try and get a few hours' sleep. the process will be that on the greek side now in the coming days tuesday, wednesday, they will legislate both the total agreement would require approval of the greek parliament but also the first, let's say, prior actions, the first legislations that were outlined in the agreement. once that work has been done in the greek parliament we will have a euro group call probably on wednesday. and that will be the trigger for the other national parliaments to start their procedures. that could take place on wednesday, thursday friday. i can't be very precise. national parliaments are sovereign and will decide on their own time tables. once the national parliaments have dealt with what is then on the table we will have a more formal decision by the euro group slash the board of governs of the esm which allows them to start the formal negotiations and the institutions will do the formal negotiations for us. and once t

could it have the euro?ave grexit, as you suggest, can greece have an devalued euro geographically? hans-werner: the euro banknotes which have been issued cannot be collected. they are there and they are useful for the time being. if greece exits, it can only exit into a virtual drachma. over a weekend, over a week you would change all contracts, wage contracts, price contracts, total credit contracts into drachma. manus: i'm going to have to interrupt. we are waiting for mark carney to begin his presentation at the bank of england, sir. thank you very much for your time, hans-werner sinn president of the ifo economic institute. let's cross over and listen to mark carney, the governor of the bank of england. mark carney: the greek crisis intensified. the situation remains fluid. it is possible that a deepening of the greek crisis could prompt a reassessment of financial risk in markets. the united kingdom is relatively well insulated from the direct consequences of the events in greece. u.k. banks' exposure

this is his euro. he was part of the building of the euro, believes deeply in the euro, and he is now accused of tearing it apart. tom: where will germany be monday morning? brendan: i do not see how this fails, but germany is talking about having a discussion with itself about the euro, and it is entirely possible that they may be ready to contemplate after some time what we have been talking about. tom: let's get to top headlines. here is vonnie quinn. vonnie: thank you, tom. lawmakers in germany are getting ready to vote now on the new greek bailout. the plan is expected to pass backed by the majority held in parliament by angela merkel's party. the german chancellor spoke this morning in favor of the bailout. angela merkel: the dramatic events of the past days in europe cannot be overestimated. these days are dramatic, first and foremost, for the country that is the subject of our thoughts and consultations -- greece. let's imagine for a moment what it would mean is at home in germany pensioners wo

eu leaders want the fun to amass 50 billion euros worth of assets to pay off greek debt. 12 billion euros are earmarked for investments. sarah: germany has come under a lot of criticism over the handling of the greek debt crisis and a lot of the criticism came from the united dates. let's turn to our wall street correspondent in new york. now that this greek deal is on the table maybe not popular but obviously necessary. what is the mood like over there? >> not popular and not done yet that we did hear some pretty harsh comments, especially from some economists like paul krugman, for example. they called it madness. that is pretty strong wording. they criticize those austerity measures. we also have to wait and see that the deal really gets through parliament. and after that, europe has so much work to do besides greece to get more jobs for the younger people to also see how to deal with england when it comes to the european union. there is a lot to do from here on. >> before we talk about an exit, let's stay with greece for a while. why is greece so important for the u.s. stock market? >

this is the euro open. what have been the market repercussions of greece's missed payment to the imf? not much. european equities are rising. in the last two days the stock 600 has dropped almost 4% and every sector has declined. throw into the mix the biggest quarterly drop it's the second quarter of 2012. it is been a year or two but things aren't looking too bad so far. jon: a choppy start to european trading for the first half of this year if you want to see what choppy looks like look at the shanghai composite. david ingles, what a move, over to you. reporter: let's start with that one. it looks like it would be a very uneventful session. let me start with the shanghai composite until this happened. a 5% drop over the last hour of trade, erasing all of the gains of yesterday. after all of this drama we are just about flat. volatility is still the game when it comes to china. this is an 11% move intra-a. -- intra-day. the market cap erased and gained between these two points roughly the size of the enti

50 billion euros of aid.consider that a real possibility. we will have to see if the government gives us any signal if they are prepared to press that button. jonathan: the nuclear option would be the bail in of bank deposits. the other side is at the pressure on the imf to release that debt sustainability report. as we go forward, do you think the voices from the u.s. get a little louder in the days to come? erik: it remains -- it is possible. you may hear size from the obama administration. what influence does the obama administration have? what a person parachuted to encouraging the two sides. the u.s. has leverage in funding the imf. the imf is supposed to function as independent. will matter lagarde take her marching orders from president obama? jennifer: erik schatzker thank you for joining up -- jonathan: -- eric shatzer, thank you for joining us. a shot exit from yanis varoufakis. the best of yanis after the break. ♪ yanis varoufakis: it was a yes vote, i will not be back. the greek people have had en

this is putting political pressure firstly on the euro zone and firstly on greece and second on the euro zone. the sheer force of the austerity that was put on the table here is quite surprised. >> so in the short-term are there ways that you're advising people to trade this? >> so it's now the core markets look to be very attractive. i'm not suggesting we look at peripheral markets underperforming. i'm not going to say there's an imminent rise in default probabilities. this is going to be an issue for the euro zone that proves to be a drag on growth and i think that it's something which is going to mean the investors continue to look for convertibility risks. so i think that's why there's going to be a demand for investors to be looking at overweighting the core paper. and i mean germany. i mean france. france is going to be attractive because it's probably going to be lower volatility and also going to allow someone to maintain some exposure to a healing of the euro zone if this rift does get overcome. >> is that one way to diversify your portfolio? >> i think the extension of qqe is p

or 65 euros, whatever the number s.m what i read from what i understand, the banks will run out of cash either tomorrow or within this week and there is a problem. so you set up some kind of rich financing, but it would have to be in a way to ease the pain and yet at the same time fought give up your negotiateing tools. >> do you think merkel can handle the progressive media in the, she's going to be labeled, it's already happening that she's somehow, almost like the greece is without blame in any of this and that it's just due to these ridiculous draconian demands they are making. it's happening in this country i'm seeing it in the left. our progressives are blaming her already, not blaming greece. >> i know angela merkel i had the pleasure of meeting her. she is the modern market thatcher, joe. you remember how people hated market thatcher. she is really the iron woman of europe. and i think she adopts the principal position of the progressives as you call them the spies and that she was a great leader. we all know th

the euro starting the week on a bad note. yvonne: it seems like all financial markets who are really driven by greece once again. we are seeing the euro sliding a little bit. down about half a percent earlier. but now we are seeing still a little bit of pressure. continued pressure is what we will see from a lot of analysts , saying they are likely to remain under some selling pressure until a definite deal is reached. assets see european risk continue to see higher volatility according to some analysts. the political fractures we are seeing in the greek debt drama is far from certain according to citigroup. they will be watching to see if they are passing those additional measures. the dollar-yen continues to show some strength this morning. to know, we are expecting japan trade later this morning. angie: checking some other headlines this morning here in asia. economyngthening u.s. as slumped with speculation about when the federal reserve will raise rates. in a speech on friday, janet yellen maintained her preference for a

they want to be very clear that the euro zone is protected, that the euro is a strong currency and something that has been echoed by other leaders. you recall gervelg angela merkel praised the other countries saying they effectively had taken their medicine they had received their bailouts from the ecb and started to get on the right track. even cypress angela merkel said had taken the right medicine and called upon greece to do like wise. the ecb is the next large creditor that requires repayment of 3.46 billion euros on july the 20th. given fact that the greek government failed to make a payment of around 1.6 billion euros to the imf on july the 2nd, there is considerable doubt whether it will have enough or do it on july the 20th. so in essence the ecb wants on the one hand, people in the ecb have talked about solidarity and helping wherever possible but by the same token they want to be a good afternoon or the of the safety and sol dairlt of the solidarity of the euro. >> dominic kane thank you very much indeed. >> demonstrators had blocked central avenue for two weeks in protest against