too things that weren't put forward by the greeks efforts to further privatize areas within the greek economy, privatization of energy companies for instance something that the greek government in the past had worked hard to resist. also on the cards too the recommendations from eurozone finance ministers is a return of imf monitors to the country as well. well, all in all the greeks have been given until wednesday to possibly consider this long list of recommendations. they are expected to put this list to the greek parliament, but considering that the greek people rejected austerity in a referendum last sunday, this long list may well be a very, very difficult pill to swallow not only for the greek people, most certainly for greek parliament. >> another thing that was leaked that i thought was really interesting is this idea of a sort of time-out for greece from the eurozone if they don't come to an agreement. the time frame that's floated is five years. what more can you tell us and when more are people saying there about that? >> reporter: yes that's absolutely right. the latest list of r

>> the greek economy. the greek people have really had a taste of the kind of chaos that you can expect if this all goes wrong. we can really expect another couple weeks of uncertainty after the vote, whatever happens but what are more into bed we -- more than that is the idea of your we have gotten used to. the big question is this is something this could lead us in the direction of greece exiting the euro. something that in the past week we thought was improbable or impossible. >> mr. suppressed is a -- the prime minister said this is not about exiting the euro , this is about a better deal for greece. how can he possibly stay in a cloth whose rules he flaunted? >> nobody agrees with the rules are about anymore. it was initially vote referendum terms that were set by the european creditors. that term and that offer evaporated on june 30 when the bailout by. a lot of europeans are making the point that this actually is a choice you want to belong to the club or not? this is a referendum on the government.

the fund predicts the greek economy will flatline in terms of growth this year. it partly at least blames the greek government that was elected in january of this year and some of the policies of prime minister alexis tsipras. in addition, the fund says greece will need another 50 billion euros of financial assistance between this year and 2018 on top of what it has already received on the eurozone and imf since the first bailout package of 2010. at the same time, the imf says greece will need that forgiveness to get its economy back on track. that's a controversial call. eurozone economies have so far rejected calls for debt relief in particular, germany. the report comes as greece prepares for sunday's referendum . polls suggest it will be a tight race between the yes and no camps. greeks are reflecting on years of austerity as campaigns are under way. we take you to a once prosperous town around 50 kilometers from athens. kate moody has more. kate: behind the gates of this abandoned factory, the greek flag last tattered on the ground. dozens have suffered the

the greek economy is nearing collapse. soon it will be turning out 180,000 liters of beer a day. >> they stop and continue. they compare to this moment and it is unstable. but also, we try to expose ourselves. >> it was backed by german export underwriter. it meant the equipment supplier had to re-cook it. they ran and a financial difficulties. but those kinds of investments -- have to pay interest rates a 14% compared to germany's 3% to 5%. >> there is a glaring difference between interest rates. it means we have far higher costs. higher than any amount of wage cut could possibly compensate. we have to infest. in the last five years, there have hardly been any investments . we need measures to boost investments. >> if the greek economy is to get back on its feet, the investment climate. brent: despite the bad news coming out of greece, there have been some uplifting moments. thousands of kilometers. good evening to you. >> we have seen how the crisis in greece is affecting many people. it sums up the difficulties that the

in april may 2014, the greek economy had resolved.and greece was able to go to the international markets and cell bonds at 3 and a half percent interest, and it was very successful. and it was only the elections that happened in&the rise of the left that created the problem. created the uncertainty, and people took out deposits, and the banks collapsed. that's where we are but i don't think that things are inevitable. the greek economy has a great potential and has the possibility of recovering. it's easy for the european union to be able to survive as it's recovering, but i don't think that it's a lost case at all. and people have to evaluate in making this decision on the ballot whether they want one more year of european loans which might create and might lose 5% of income from that, or if they want to get out of the euro and lose 50% of their income. so people have to seriously evaluate. nothing is going to be free. with 5% or 50%. >> i appreciate it, and i got to go. you're really good. all right. professor of economy is with the

the greek economy is nearing collapse. soon it will be turning out 180,000 liters of beer a day. >> they stop and continue. they compare to this moment and it is unstable. but also, we try to expose ourselves. >> it was backed by german export underwriter. it meant the equipment supplier had to re-cook it. they ran and a financial difficulties. but those kinds of investments -- have to pay interest rates a 14% compared to germany's 3% to 5%. >> there is a glaring difference between interest rates. it means we have far higher costs. higher than any amount of wage cut could possibly compensate. we have to infest. in the last five years, there have hardly been any investments . we need measures to boost investments. >> if the greek economy is to get back on its feet, the investment climate. brent: despite the bad news coming out of greece, there have been some uplifting moments. thousands of kilometers. good evening to you. >> we have seen how the crisis in greece is affecting many people. it sums up the difficulties that the

the greek economy minister says this will safeguard deposits. athens has extended the bank holiday for two more days and as it will reconsider the situation on wednesday. >> greeks and become accustomed to these conditions. it banks of been shut down for two weeks. so they can withdraw a maximum of 60 euros a day from atms. cashes in extremely short supply at the moment. this woman says, how are we supposed to survive when we can't get cash from our accounts? that is the problem. i know there has been an agreement in brussels, but no one knows what that will mean for us. we have to wait. now greek banks are going to get up to 25 billion euros in liquidity. the plan still needs the approval of the greek parliament. greek banks are still on life support from the european central bank. the ecb has extended 120 billion euros in credit to prop up the greek banking system. 89 billion and emergency liquidity since the beginning of this year alone. i repayment of 3.5 billion euros to the east eb is due next monday. greek banks are sitting on a mountain o

the greek economy minister says this will safeguard deposits. athens has extended the bank holiday for two more days and as it will reconsider the situation on wednesday. >> greeks and become accustomed to these conditions. it banks of been st down for two weeks. so they can withdraw a maximum of 60 euros a day from atms. cashes in extremely short supply at the moment. this woman says, how are we supposed to survive when we can't get cash from our accounts? that is the problem. i know there has been an agreement in brussels, but no one knows what that will mean for us. we have to wait. now greek banks are going to get up to 25 billion euros in liquidity. the plan still needs the approval of the greek parliament. greek banks are still on life support from the european central bank. the ecb has extended 120 billion euros in credit to prop up the greek banking system. 89 billion and emergency liquidity since the beginning of this year alone. i repayment of 3.5 billion euros to the east eb is due next monday. greek banks are sitting on a mountain of

and what the european union or the euro can do for the greek economy. have been totally only unrealistic positions on both sides. any plan that requires greece to produce -- can only be a non-starter. a plan that ignores the fact that the greek sovereign debt position is unsustainable equally is a non-starter. i think we need to get back to reality and look at those two issues and see what we can do about it. there is a way of doing it. manus: the creditors and the europeans have handled this situation. ireland, portugal and spain. and tds very much in ireland and -- it is very much in ireland, portugal and stain's interest to crush down on the greeks because they want to show their domestic audiences the rise of extremism. they want to treat the greeks quite severely to send a clear political message domesticically. this is what you get if you votes for extreme left. >> i think that message has already been delivered. if you look at the conditions that greece is in now. it is very clear that the strategy that there was, if there was a strategy pursued

some 11 million people a struggling economy and uncertain future in europe's common currency. greek drama - it's the "inside story". [ ♪ music ♪ ] >>> welcome to "inside story". i'm ray suarez the greek prime minister elected when his country's economy was cratering, with a promise to reject austerity, now is ready to accept terms he once rejected. the change of heart and tone coming after his country missed a key debt payment, off the banks closed and lines the frightened citizens stretched down the sidewalks hoping to grab cash before the money ran out. john psaropoulos in athens. >> greeks have been caught in a 2-pronged strategy. at the end of tuesday they decided to capitulate write to creditors and accept the deal on the table on saturday. the creditors said that deal is no longer available to them unless there's a referendum result giving a positive direction to the eurozone authorities in the sense that greeks want to remain within that eurozone. so by the end of wednesday, alexis tsipras, the greek prime minister, was forced to stick to his guns on the referendum and contin

by the way, that number goes every day the greek economy stands still. a lot more money needed area you have to go around the table and say, we do not mind opening pandora's box as saying so with the principles of our debt forgiveness within the eurozone will change. jonathan: the imf says that. we know there's a difference between the creditors. whatever they agree on together in brussels is what has to go to the german parliament. when i look at the very fact is quitting, seemingly the market forget jpmorgan the best case scenario for the market seems to be we are going to get a deal. is that your best case? kit juckes: no, not my best case at the moment. i do not know if they think that. i do not know how many bullish strategist you get on your show. i will leave that sought -- thought. the euro is not just going to collapse. bond markets are not going to collapse if you 60 billion euros from the ecb and whatever it takes and pretty powerful since first made. i do not think it alters the reality. the solution to this is more money for greece and debt

this is what the greek economy needs. this is where banks need to be recapitalized in order to serve as credit institutions for the greek economy. that's the only positive i can identify right now. >> there has been a lot of talk about wolfgang and his motivations behind his actions and comments. do you think that has now been swept aside? >> no, i do not think it's been swept aside. his suggestion of a temporary exclusion of greece from the eurozone was a provocation, but it was endorsed by all members of the euro group and it is now in writing that threat can be used again in the future. hence we have a complete new political and legal environment as we move forward in the eurozone. >> okay. thank you very much for your time. >> i thank you. >>> well now to the race to replace barack obama in the white house. one of the republican party's hopefuls is scott walker, john hendon reports from madison wisconsin on how he's manage to go attract support for his presidential bid. >> reporter: scott walker is an unlikely front r

the greek economy will be worse off.lexis tsipras is able to sell this as a victory because he managed to win some debt relief. if the proposal passes as it stands, the creditors will talk about debt relief by 2022. laura: is there any talk of financial stimulus in this deal for greece who has been through years of austerity? megan: unfortunately, the focus on the deal is more austerity measures rather than structural reform. greece needs to liberalize its product and labor markets, and that is absent on the deal because greece has found itself with such a huge fiscal gap that needs to be quickly closed. laura: the germans have said very little. what do you read into that? are they supportive? megan: because the greek government used the deal that was on the table a week and a half ago as the basis for this one, and has added measures, i think the germans will be broadly supportive. there will be more back-and-forth over the weekend but i am optimistic for a deal being signed. laura: even if the deal is approved, what ar

this is really about saving the greek economy and therefore the future for the greek people. >> woodruffeisbrot what should the people of greece do. >> i would go for a no volt because you have to look at who is responsible for this mess, who is responsible for six years of depression. who is responsible for the banks closing right now. it's because the european central bank decided last sunday to limit the amount of emergency liquidity assistance so that the banks wouldn't have enough money to open. and they did this very deliberately i think to intimidate the voters into voting yes. everything that comes out of the mouths of the european officials right now is trying to scare and intimidate people to make them feel this pain and tell them this is what you're going to get if you vote no. this is what you're going to get if your government is awe day must enough to insist and arouse the greek economy to recover and unemployment to come down. that's really all they've been asking for and the european authorities have been stub burn and pretty mean about it. >> woodruff: what about that th

i don't believe they will help the greek economy and i say so openly. i also say that i must implement them. that is our difference. >> pat sob joins us live from athens with the latest developments there. help us understand. isn't this new bailout plan really about to put the squeeze on athens? >> well, one thing that you have to understand is that this bailout plan is not popular with the government, certainly not with the people. tsipras outlined his position clearly yesterday that he doesn't think that the new bailout terms will actually help the greek economy. it really underscores how he is between a rock and a hard place. tensions were running high, passions running high inside the parliament building yesterday. last night outside the parliament building, they boiled over. >> molotov cocktails hurled at the greek parliament as protestors protest terms they just rejected a week and a half ago. european creditors demanded greece adopt tax pension and other rethunderstorms to move forward with negotiation on a bailout worth up to $95 billion. before

the greek economy has.ings continue to proceed in a positive way as they have done in the past two days, we will have a phase during which the bank of greece and ecb, which are working very actively monitoring the situation will look at exactly the needs of the greek economy. how can they gradually satisfy? what are the general conditions so as to make sure we are always there ready to provide the greek economy with liquidity and at the same time, we do not risk a bank run again? in the meantime, all these developments are improving the quality of collaterals that the greek banks can post. each time we have an improvement in the quality of the government paper, of the greek government paper, we have an improvement in the quality of the collateral of the banks. not only in that, because as you know much of the equity more than 50% of the equity of the greek largest banks, is followed by credits to the state. the quality of these credits improves our war since according -- or worsens according to the dialogue

now, greek trade has shrunk over six years with the greek economy but faster than greek economy and mayeduced as much as 50%, twice the rate at which the economy has shrunk. the word we here from greek traders as well as greek producers and other business people is they are not only being squeezed by the lack of liquidity of what would be commercial finances, the banks, but also from the lack of liquidity in the marketplace and from falling demand and they themselves now have to finance their own imports and exporters from europe are demanding cash up front and means a business person has to get together money in order to purchase another shipment of stock and that makes staying in business extremely precurious and means you have to invest upfront in every item of stock you are prepared to sell with no guarantees and your sale also be as quick as you need them to be in order to cover your losses. and who you quoted earlier has of course made encouraging remarks to speak and offer proposals today but said ominous things and his statement is there are those who secretly or openly are work

because otherwise the existing terms being offered were unsustainable for the greek economy. >> rose: so with debt forgiveness will the greeks in your judgement, sebastian, become more responsible to use one word, that is used by creditors? >> i think one problem is that debt forgiveness has become a sort of you know-- in this debate, the greeks are saying we need it, the germans are saying you're to the getting it. the truth is most of the debt we're talking about has been rescheduled such that there are no big payments on it i mean you know in the last week and in coming up through july, they are' asking payments which matter because the greeks are flat broke but in the kind of grand scheme of the debt a lot of the debt has got zero payments for the next few years. so you could completely you could write-off a lot of this debt and the problem would be that the greeks still need fresh new money to transfer to them. and so to keep the banks functioning, for example they need fresh sport from the central bank in frankfurt. and that is the problem. it's not just about debt relief. it's

there was going to be a deal but the question was how harsh was this deal going to be for the greek economyor the greek people. the geo political concerns are too serious to big near ignored and geo political concerns were overriding economic issues. this is why greece could not be let go. >> okay, we will leave it there, thank you very much. >> you are welcome. >>> still to come on al jazeera, anger in cambodia as parliament votes on a law that critics say will stifle the trend. >>> i'm john in madison, wisconsin where walker is a serious contender for the republican presidential nomination. >>> in sport we will hear from the tennis world number one as he celebrates a third title success at wimbledon. ♪ the iraqi government says it is already making gains against i.s.i.l. as part of military offensive in anb a -- anbar and began on monday morning and forces and sunni tribesmen are all taking part and i.s.i.l. fighters seized the capitol back in may. let's get the latest who joins us from the iraqi capitol baghdad. how is that offensive going, do we know? >> well, what the iraqi forces are

are working very very actively, monitoring the situation will look at exactly the needs of the greek economyw can they gradually be satisfied and at the same time, we don't risk a bank run. >> an opinion poll commissions immediately after the terms of the latest bail out for greece emerged suggested that barely half of german's approves of more money for greece, more than three-quarters said they believed the greek government would not honor the terms arrived at. one leading economist says many people now believe there is a limit to how much money germany is prepared to pay. there's a strong understanding that you need to make financial contributions. but at the same time, there is a very clear view, that europe should not be about a transfer union. >> they are a minority, the finance ministers has suggested that a temporary might still be the best solution, to help reduce greek debt. whether to allow new german money to be used to keep greece in the euro zone, al jazeera, berlin. >> simon mcgregor woods two pieces of good news, how are people reacting. >> well, i think it is very -- certain

erik, can you speak about tourism in greece and its ability to help the greek economy? key focus.s a the real issue is the economy has not been reformed. you have a malfunctioning institution and trust is disappearing. it is not an easy -- pimm: what would be an example of a reform the needs to be put in place to harmonize the greek economy with other countries in the eurozone? original plan, the massive weatherization plan to get businesses back into private hands and working on economic incentives it be the first one, and then are the fiscal issues, of course, as prime minister renzi said. who will pay for the pensioners in greece -- office, the italians, or the greeks? the comments from a tail renzi calling greece out for not making sufficient reforms, a situation where billionaire shipbuilders are not paying taxes. hung tran, what you think about the progress greece has made on structural reforms? hung: progress has been quite slow. they made some progress after the first program in 2010, for example, extending the retirement age, but more needs to be done because pension expe

working very very actively in monitoring the situation, will look at exactly the needs of the greek economycan they gradually be satisfied and at the same time we don't risk a bank run. >> reporter: an opinion poll emerged suggesting that barely half of germans approved of more money for greece. more than three quarters said they believed the greek government would not honor the terms arrived at. one leading economists says many now leave there is a limit to how much money germany is prepared to pay. >> there's a strong understanding in germany that for europe to function you need to make financial contributions, and it's okay if there's some transfer from the richer countries to the poorer countries, but there's a very clear view in germany, europe should not be about a transfer union. >> reporter: there are some politicians here who believe that germany should give much more financial help to athens but they are a minority. the finance minister has suggested that a temporary exit might still be the best solution to help reduce greek debt. now it will be for the [ inaudible ] to decide whe

which condemned the greek economy.a period of never ending and an impasse of a star at this which trapped our economy in a recessionary visual you are vicious circle. courageous response by the greek people at a time when there are such pressures of the banks closing and the media terrorizing them in to feeling that no meant an end to talks with europe, an end to negotiates with europe. [applause] >> translator: i think that they showed their -- they stood up and were counted. this was a voice of democracy. and we have to listen to what they said. as i was saying. this was a courageous choice by the greek people. and this is not a decision of breaking off negotiations with europe, it's one of going back, it's a turn to the informing principles the founding principles of european unification. at the start of democracy and of solidarity, going back to mutual respects and going back to equality. it is crystal clear message. in surviving under the challenges circumstances. these ongoing negotiations between the greek gover

way we will have a faze in which the bank is working very actively will look at the needs of the greek economy. how can they gradually satisfied and at the same time we don't risk a bank run. >> an opinion poll commissioned immediately after the terms of the latest bail out to greece emerged suggesting that barely half of germany approved of more money for greece. more than three-quarters said they believe the greek government would not honor the terms. one leading economist says many people now believe there is a limit to how much money germany is prepared to pay. there's a strong understanding that for europe to function, you need to make finance contribution it's okay for there's some chriss to poorer countries. at the same time, there's a clear view, that europe should not be about a transfer union. >> there are some here that believe that germany should give much more, but they are a minority, the finance minister has suggested that a temporary block set might still be the best solution, to help reduce greek debt. now it will be to decide whether to allow more german money to be used to k

still, after two weeks without a working banking system the greek economy has pretty much ground to a halt. the ceo of greece's largest retail chain says the climate needs to improve fast. >> this is the worst crisis i have seen. >> and he's seen a lot. the retail chain is 60 years old, started by his father. when this crisis started, he says sales fell to practically zero. then greeks fearing a departure from the euro went on a buying binge to convert euros into hard assets. >> tomorrow prepare to have value on the house, money that they don't know if they can have the bank powered like before. >> even if greece's creditors accept the proposal and get a deal done over the weekend, a huge amount of damage has been inflicted on businesses both large and small. a jewelry whole saler servicing hundreds of shops across greece. despite the crisis, he still has lots of demand because it's high tourist season but with the banks closed there's little cash in the financial system. >> we don't have cash from our customers, so we cannot. >> reporter: electronic banking system is working, why can

can handle the sent -- a situation in terms of the structure of the banks, the exposure to the greek economys different. what is important is greek -- greece is small, but the problem is complex. jonathan: those are the thoughts of the ceo. you can watch greece and crisis, special report on sunday, july 5 with coverage continuing until monday. still to come, it is jobs thursday in the usa. we will give you a preview after the break. before we go, sweden, in a surprise rate cut the swedish currency taking a little bit of a beaten -- beating. a rate cut in sweden check out this, they cut rates, by more bonds of a country with a real gdp growth of 2.5%. we will be talking about this and more after the break. we'll be back in two. ♪ jonathan: good morning and welcome back to "on the move." we are about 47 minutes into the trading session. the tax hit a session high of -- .25%. the jobs report has come out of the nine states -- united states. >> all of the data suggests that labor market continued for june. there is upside risk this month yesterday upon reports suggested stronger hiring at americ

right now is not a great time for the greek economy to try to implement those kinds of changes.he biggest irony in all of this is the no vote supposedly stood for no more austerity. actually, the greek government if it gets a deal, will have to accept much more austerity than it would have had two had it agreed a week and a half ago. the economy will have attracted so much more now that they are capital control, particularly in the middle of the season, so important to the greek economy. the focus had been on austerity and it should have been on structural reform but the timing is off, unfortunately. ian: megan is right. it is not an economic issue. it is a political issue. excepting that deal would not get to parliaments in greece. the massive risk is a consequence and tsipras would have found himself on its ear. now, a deal is much more acceptable domestically. big things happen over the last week that a lot of domestic political risk you have taken off the table. have you taken any of it off the table for the germans or the other interlocutors with europe? charlie: political

reaching an agreement along the terms outlined by the creditors in their various reports in the greek economyaid down in the week before last and the week-long series of euro group meetings and government leader summits so i think the greeks are signalling they are ready to conclude their process. >> john just to return to the big questions we outlined at the start of the hour the banks the banks and what happens with them and they are scheduled to reopen tomorrow on tuesday, this must be the biggest concern for greek people and forget the politicians for the moment and just the people. >> absolutely. you are correct and i think the real economy as we say, that is the key issue today because the head of the greek banks here in greece have said that the liquidity will last them until today and as of tomorrow unless there is some sort of extra liquidity that the european central bank is willing to send over just to keep them ticking under under the current capitol regime and not anything more than that and unless there is that we may see a total bank closure as of tomorrow or a drastic reductio

. >> the conversation last week was about how tiny the greek economy was in the grand scheme of thingss greek debt deal, this greek agreement to agree with europe that has pushed us into such remarkable, positive territory. what do you make of this? >> well, while everyone was freaking out over the possible ramifications, the economy has been on a good pace of improvement whether you look at the purchasing manager's index rising since december, the pace of retail sales, loan growth, car registrations, so many things improving in europe. now that the distraction of greece is out of the way, focus is back on the fundamentals and they suggest earnings may turn up in the eurozone after pausing for a few quarters in the second half of this year and that's good news for the markets in europe. >> so you see the distraction going away? we still have some finer points of this agreement that need to be worked out over the coming days. you don't think we'll see any hiccups? >> you know, certainly there could be some volatility around the issues. the fact that an exit of greece seems to be pretty

they said austerity no more, it has hurt the greek economy andit h has caused great suffering. they have a point. the greek economy has contracted by 25% but strangely enough, europeans have no meeting planned for tomorrow. so i don't know where this goes from here, so if europe staysos tough and says good-bye, that is still a distinct possibility. >> absolutely there a lot ofd your means who said if the v greeks voted no, that was really v a vote to leave the eurozone. and although they may not have seen it that way, europeans are sort of saying we're secretaryayin of this too.to angela merkel supposedly said to some her cabinet members that she thinks that the greek prime minister pushed his people into a wall and they are to the going to be able to save the day. >> glor: so let's talk markets tomorrow, coming off the july 4th holiday weekend, the marketse were closed on friday, the question is what happens next. markets don't like uncertainty this is a lot of uncertainty. loo >> it sure is when you look at the european markets, they're trading lower. the euro itself is down

i don't believe they will help the greek economy. i say so openly. but i also say i must implement them. that is our difference. amy: meanwhile, tens of thousands of migrants are stranded on the greek island of lesvos as the flood of people fleeing to southern europe from syria, afghanistan, and other war-torn regions continues. on lesvos, the migrants are living in camps lacking basic sanitation and in two small detention centers that are currently at ten times their capacity. the migrants have decried the conditions. >> we run from the death to the death. we find death at each step in our way. we ran from the death of our country am a to find death in the seat and then to find it here in the camp. amy: the town officials however, have said they're unable to address the situation, especially given the country's ongoing financial turmoil. >> it is as if the international community, the european union the red cross, the u.n., have given me a bomb to hold in my hands in the fuse is burning very slowly. and i am desperately crying for help to blowout th

on to strike a deal where one hand is feasible for the greek economy and greek people, but on the otherre acceptable for the creditors. in particular, you should think sure restructuring and be that there is a consistent implementation of reforms so that greece will effectively be able going forward to improve the economy, the competitiveness. you cannot go without consistent efforts. his true that what happened in the change of government, they have left more confusion regarding this and we have seen some very positive examples in europe great if you take ireland, for example, it hasn't lamented reform, it has been under difficult times but it is much better. you can talk about spain, as well. yvonne: european banks have cut exposure to greece quite genetically in the last years. is is going to be a blip for banks are we cannot be complacent when it comes to risk containment. --i think the greek banks the risk is very small. if i just take my bank, we have no more sovereign debt. the risk of contagion is not on the banks, it might be more on the spread of sovereign in other countries t

the greek economy is totally different.important to say is that greece is actually small, but it is true that the problem is complex. socgenat was the ceo of talking to us last week. he was talking about how likely the impact the greece referendum would have on the eurozone. can the eurozone handle alexis tsipras, the greek leader emboldened by the referendum this weekend? percent voted for him, voted no, but when he spoke earlier on state television, he may be tried to downplay that victory. thee minister tsipras: result today does not have winners or losers. it is a great triumph on its own. altogether, we rode a shining episode into european history. we proved that even in the most difficult situations, europe cannot be threatened and democracy cannot be threatened. we proved that when a country eachailed, it can overcome one of the difficulties. i want to thank each and every one of you from the autumn of my heart. it is our obligation to do our best and to lift greece back on high. social unity and restoring social coh

it depends on the structure of the banks, and the greek economy is no different. it is important to say that greece is small. but the problem is complex. anna: a resolute ceo, that was a clip of him speaking to bloomberg in an exclusive interview. we will hear more from him, when it returned. stay with us. anna: welcome back, 17 minutes past 6:00 in london. the insurance giant ace announced a buyout of arrival. it will help them compete with aig formally led by greenberg's father. facebook will begin sharing advertising revenue with companies that post video on its site. the social network will contribute up to 55% on ads that appear alongside videos. we are just three days away from the new bailout package. a new poll suggests increasing support for a yes vote. the prime minister called for rejection of the sunday referendum. move over greece, today is all about the fed. joining us now for a conversation about the fed, jpmorgan international's nick. let's start with the fed. when you think they will engage and start increasing interest rates? nick: we expect a re

the ecb will use the greek situation to print more money. i don't think it will help the economy, but that is what i think they will do. olivia: thank you so much for joining us. and look at the global market reaction to the latest development out of greece and what a greek exit will mean for the euro currency. ♪ olivia: good morning and welcome back to bloomberg market day. matt: let's go straight to julie hyman with a look at the markets . julie: we have been having a little debate about whether it is a sharp reaction in the u.s. to what is going on in greece. i contend no. -- matt begseliver to deliver. it was a five-month low for the dow earlier. major averages not falling as much right now. the biggest drop his oil which we will get to in 30 minutes. i want to talk about weight watchers now because the company potentially is a subject of an to the newcording, york post which says an unnamed activist hedge fund has potentially but most of weight watchers' $140 million in senior loan in making an overture to the company's based inowner luxembourg. shares rising by 17%. year-to

time for the international community, the creditors to insist on stimulative measures for the greek economyas miller: our own experience and the experience of other countries indicates that when you are in a severe crisis as greek has been in for the last six years, it does help. hazard.lem is the moral a number of european countries have gone through similar austerity measures and they seem to have come out of it or are coming out of it. exception for greece, what is that saying to others? mark: ambassador miller, the greek people have been celebrating in the streets since the no vote. premature?bration do creditors care about the vote or are they fed up at this point? i sense is more the latter. they are more set up. let democracy -- democracy should rule, but all these other countries were also democracies, they would argue this is their taxpayer money that is going to bail out the greeks. the fact of the matter is, there has to be a resolution for all sides. mark: spain and italy, their economies are bigger than that of greece. leaders there have something to be concerned about? will th

particularly with the offer to help out the greek economy. and that could drive a wedge between greece of course and everything that's going on and they might re-orient themselves to russia. and so my question is when we do get there, we'll be oriented towards that. as i said, i'm very, very concerned about that. and not just the eu but it's going to dwell into of course nato. so thank you very much for being here today. i'm glad you had this hearing. >> thank you very much, colonel. we have three witnesses with us today. i would ask each of them to try to sort of put it down to about five minutes if you could. and the rest, you can submit for the record. but try to pick out the points that you really think are the most important for us to discuss. and then we will have a dialogue. our friend from alabama, mr. brooks, do you have an opening statement you would like to make? with that said, let me introduce our witnesses. dr. john mccormick is the jean monet at indianapolis campus at indiana university and has authored a dozen books, numerous

it means that this is not really now waiting on the greek economy.han: that is the situation in greece. a chinese agency is said to have funding available. people say they have 3 trillion yuen on tap. the funding will be used to fund brokerages. ebay will spin off its payment unit paypal. paypal will begin trading on monday. the plan was announced last year. let's get to one of our top corporate stories, google shares rallying after the tech companies earnings topped estimates.the new cfo talked about reining in spending. rodrigo, there have been concerns as the executives and google pursued some pretty big blue sky thinking. how did the company performance at front? rodrigo: it is interesting you point that out. i think it was the key metric investors were looking at. it was operating expenses, which were up. that would indicate that they're spending too much. but the growth of that expense is slower than it used to be. last quarter to the 20%. now it is 13%. it means they're slowing down on their spending. jonathan: the company also highlights impr

megan go it is undermining the greek economy. -- megan: it is undermining the greek economy.ks have 150 million euros. the greeks are withdrawing 300 million euros a day. if they can get to july 20 without running out of cash but that is a real hard deadline for greece when they have to repay 300 billion euros to the ecb. guy: the greek banking sector is on the edge right now. how big a catalyst is that? if you're sitting at the negotiation table is that the deadline? is the payment the deadline? what is it that is going to cause a shift? megan: it is hard to gauge. it is clear that this deadline is a hard deadline. if greece and the exiting, it will be because of the banks. it will be because the ecb demands resolution plans. the greek government doesn't have the euros to provide that. guy: would you see this happening? megan: right before the 20th the ecb will look for political coverage to do this. they will ask other countries to guarantee the greek debt. the other countries will say no thank you. the ecb will have the political cover to pull the plug on greece. it is not

governments for driving the economy to this point. a lot of greeks are still willing to give such practices a chance. how that plays out over the next few days, only time will tell. right now a lot of anger is directed toward the germans especially over privatizations. >> thank you. >> an economist in athens joins us this morning. tell us what does this deal look like in terms of securing greece's economic future? >> well, the thing is, it happened to the brinksmanship we witnessed over the last months had a very huge price. trust has evaporate and now believe up trust comes with a very intrusive program a program that we've never witnessed before as far as its far reaching consequences in the greek economy. from the positive perspective if actually a lot of the members pass through and i'm talking about the privatization liablization of the private markets, measures on collective dismissals, labor market reform, we could actually have a reformed greek economy. really, what we need right now is for greece's place in the euro zone to be secured invest