there has been very harsh language about the imf and it turns out that the imf could be mr. tsipras's biggest advocate. guy: more twists and turns. thank you. that brings us to the question of the day -- given what's been happening, given the economic environment that exists in greece right now, did tsipras actually have a knife at his throat when he was forced to sign the deal? it is an interesting line that he delivered in his televised address. what do you do when the deal that was delivered -- is it ever going to be viable? give us your views and let us know. join us on twitter. coming up in a couple minutes we will talk about chinese gdp coming in ahead of forecast. investors not cheered, worried about the fact that they may get less stimulus in this massive economy from beijing. we will talk about that when we come back. ♪ guy: good morning, it's 6:17 here in london. before the stories you need to know this morning. greases parliament will vote today on the measures agreed with european creditors on monday. the passing of the legislation, which is a key condition of th

talk to me about what the imf are saying. alex: i think the imf is calling a spade a spate. give them credit for this. because if we sit back and remind themselves -- ourselves, when you have the heavily indebted country, what is the way out? you can grow your way out. the economy is not growing. you can inflate your way out. they do not control the monetary policy. or third, cut expenses. cannot be done. why? they have already been cutting. now they are adopting a deal which hocks $50 billion of their assets? the real option is debt relief. it is not palatable in berlin. what is the other option? extend the maturities and hope that during that period you have fiscal union in your. -- in europe. i think that is the crocks of the issue. it is what the united states went through when we moved from the articles of confederation to the constitution. greece, yes we talked about this. greece is like west virginia. west virginia has never been but a recipient of transfer payments from wealthier states. yes people complain about taxes in new york and california, but you do not see t

the imf is saying there needs to be debt relief.he european creditors are saying, not until after parts of this program are completed. there's one way to sort of split the difference. billion say there's 17 left over in the current imf fund. there is a way you could maybe recessive eight that seven -- resuscitate that 17 billion and the imf could satisfy some of their own requirements. still, this seems like a big problem and one that isn't easily solved by just forcing athens to accept more austerity. jonathan: what they want is a commitment to debt repro filing. we could use any number of words. restructuring, relief, repro filing. what will really matter is the wording of it all. hans: it is really the modifiers. what is substantial reduction? if the suffix on the re is duction, so it is reduction, that is a nonstarter for germany. then you get to the modifier. what is substantial? what does the imf need to make this sustainable? i suspect they aren't just technical differences. they are fundamental philosophical differences abou

i am a bit of an imf geek. i used to work there. defaulting on the imf is unbelievable. the big thing is capital controls and closing down the banks. the whole reason to avoid default to the imf and ecb was in my mind to avoid capital controls. once you have the bank closures the gloves are off. it is unmitigated disaster. i don't think -- i don't think it is likely they can stay in the euro. jon: when you hear things like that and look at the potential of a next. the perception is that it will not matter so much. i have the dax up and yields lower. we are trading perception, not reality. how are you managing risk? >> the reality is that the contagion risk is significantly higher than 2012. whether it be a liquidity program or the ela, potentially funding qe or whatever it takes, what we have seen is a shift of the debt and the obligations of the creditors going from the private to the public sector so this is really a negotiation between the greek government and the eurogroup. so the potential contagion out there is pretty limited. jon: do you take that view as well? as

yes the imf is deeply concerned about the size of the debt.ecause the interest is low, the net present value of the debt is much lower than 200% their gdp. the other suggestions, having annual transfers from the german treasury to the greek treasury obviously that will not happen. a haircut of greece's debt will not happen. they say it is against the rules. in some way we knew the imf was for this haircut. it looks like out of the options, you extend. jonathan: let's bring back john. john the imf has concerns, do you? how long before you and i are talking about this again. john: i think this is something that is constructive for investors like us. let's all the great problem? of course not. it is a comprehensive deal. it is a deal that is significant in terms of the amount. of course the problem is the amount. this will add to the debt file. the imf is adding that it could probably be unsustainable any long-term. -- in the long-term. i think the main message is we avoided a nasty grexit. jonathan: when they are adding to the debt pile, at the

after the imf will that greece said they would not pay. saying them the imf, greeks had requested a delay repaying this bailout. $1.7 billion. board will take a closer look. the rating agencies say this does not automatically trigger a default. and a muchggle room that could happen in the next few days. an interesting next few days as a greece digs in. will look at that story throughout the course of the program. do tweet us your thoughts. with have a look at what is going on with the chinese pmi numbers. the factories sluggish. the central bank continues to these. -- ease. two sets of pmi numbers. reporter: it is either sluggish manufacturing or stable. but the numbers do not lie. pmi came in atne 50.2. that is the same reading as may. below the forecast that economists forecast. is that sluggish or a stabilization? i believe of both. the fourth month in a row above 50. at ameans it is expanding slow pace but expanding. i want to turn the page and bring up the hsbc manufacturing. mostly a smaller survey, private sector. the official pmi s

to make it to the imf question.ipate in an actual package it is difficult to see how you will get up to $86 billion for that the imf. they need substantial debt relief. anna: the are reiterating that. thanks so much for that. final thoughts from athens with gabriel stein who has been with us. how long is this that on the back burner? the real: -- gabriel: it will come back in the fall. i would love to continue on the game of thrones simile, but i can't figure out who is the queen. my concern, our concern, is that even if everyone has the best will in the world, the greeks are not able to fulfill their commitments. but the latest package says you have to do something else. anna: thank you. ♪ ♪ anna: welcome back you are watching "countdown." here are the stories you need to know this morning. a number on a wing component that came on shore shows it was from a boeing 737. that is the same model as the malaysian airlines flight that vanished in 2015. -- 2014. david cameron will chair emergency meeting this morning in r

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. liz: christine legarde has been stoic and tough. you are in our readers, no debt payment, you don't get anything. is she going to bent if things get ugly on the ground? >> the imf does not disperse when a country is in arrears but the imf has not disbursed for over a year but they couldn't agree which agreement with greeks and europeans collectively on continuing the program to continue the program so there has been no imf disbursements from a year ago. liz: is a pleasure to have the having been on the inside of the imf thank you. for re u.s. director at the imf. a fox business exclusi

the first thing gruels has to do -- greece has to do is pay back the imf, and once that's done, the imf consider whether to intervene in greece, but right now, it cannot do it. liz: do you think there is a chance that greece's banks become insolvent, that the germans and the netherlands say, forget it, we just have to send a message here, and the next thing you know they have to go back to printing dragging mas, and they go -- drachmas, and they go back to their old currency. is this even a possibility? >> unfortunately now it is a possibility because time is running. and really we are left with two days. i mean, the referendum said clearly, what, that these people reject the proposal and also that the greek people want to stay in the euro. so how you cope with this, very different messages. there's a problem now. so greece has to put on the table a proposal that on one side respects the referendum results, but on the other side keep happen the creditors which will be, to me, almost impossible. that's a very difficult thing. liz: my last question is we're looking at the greek banks. the

whenever the imf is involved it is certainly my view that the imf has to follow its rules should not bend the rules, and should always be even handed. there cannot be any special treatment. third point i would like to make is that our loans to countries experiencing difficulties, our loans are conditional upon various requirements but all of them aim at restoring stability restoring growth and debt sustainability. in the context of greece we have always advised that that program walk on two legs, if you will. one leg is about significant reforms and fiscal consolidation as we have advised in the case of island, portugal cyprus and outside the euro zone, ice land. 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. that analysis has not changed. it may well be that numbers will have took revisited but our analysis has not changed. what has changed is clearly that greece is in a situation of acute crisis which needs to be addressed seriously and promptly. greece is now in areas vis-a-

the imf is likely to be involved and the imf want to have debt write-down. hell,n: stock in acronym thank you so much. pimm: and then german politics. brendan: a dramatic surge in construction of apartment holdings is giving a push to housing start numbers. housing starts climbed last month by 9.8% which is a seasonally adjusted rate of 1.2 million homes. biggest jump in 28 years. builders believe a new wave of renters will be coming in. housing starts of risen 10.9% this year. the governments as gasoline prices are driving a slight increase in inflation. the labor department says the consumer price index rose last 1/0 of 1%. the price at the pump rose on top of a 10.4% increase and gasoline prices are rebounding. the latest results from general electric are starting to reflect that companies strategic shift. ge raised the low end of its forecast. it could be one -- it could be 100 -- kobe $1.13 and they topped estimates by three cents per share. the company is moving to an apposite son manufacturing. they are moving quickly to sell out ge capital worth $200

and to make some request of the imf. what the developing countries to could do in how they help to the issue of inclusive growth in the medium turn ask leave more than the value added tax but be kidding with help from the imf to invest in a progressive tax system. property-tax is which will require time to work out. and income-tax is. that is an issue that you did not specifically mention but it is so fundamental with that domestic resource mobilization and it is important to keep in mind the more consumption taxes on the port, the struggling not yet middle-class group that by far they are the largest group in terms of distribution of income without lower quintile. thank you. with domestic resource mobilization has to deal with energy subsidies rather is an opportunity for mobilization even with tobacco is the tax on a bad day now we go for research a can feel regressive in the beginning that people die sooner because of cigarettes it is some to the extent that is specially for the port said the others in tax of course,

imf chief economist says that the crisis in greece is educational. it shows that any contagion is likely to be contained. test has reassured us and made us think that if things go badly in greece, which we do not want to happen, but if they did, the rest of the world would probably survive. scarlet: in less than half an hour, we will speak with olivier blanchard at 10:30 a.m. on bloomberg television. imf has downgraded, speaking of its forecast for -- globalowth economic growth. much of the downgrade is driven by the u.s. china were and highlighted as potential trouble spots. in china today, speaking of troubled spots, stocks bounced back after losing more than a third of their value in less than a month. had its composite index biggest gain since 2009. chinese regulators unveiled a number of measures aimed at restoring confidence in the market and they made it very difficult for investors to sell stock by telling them, hey, you are not allowed to sell stock for six months. you will be confident. we order you to be confident, or else. scarlet: the ma

let's talk about the imf which is sounding the alarm in japan. reload, theeds a imf saying that the ballooning debt is unsustainable. it could be three times gdp by 2030 if the government does not lower budget. the imf says that the boj should be ready to increase stimulus and provide a stronger guidance to markets and that inflation is unlikely to reach the 2% target in the medium-term. in the long term the imf says the government needs to reduce the structural primary ballots by 4.5% of gdp -- balance by 4.5% of gdp. they say it does not affect the possibility of getting reserve currency status. china, notfforts in short-term market movement. rishaad: coming up later on the show, getting on board. lies in mumbai to find out why the airlines might be interested in an indian carrier. after the short break, destination japan. a chief executive about what they are doing to attract travelers. taking a plunge. $22, over 2%. details later on in the program. ♪ secretary of state john kerry is defending the accord with iran, saying it is fantasy that th

the imf is due to contribute 16 billion euros to the bailout package. their participation is crucial. this is what lenders in greece were fighting about, whether or not the imf would be involved. the imf is saying that greece's debt burden has become unsustainable. the ratio of debt to the size of the economy debt to gdp, this is the measure we used to show sustainability. it was meant to have peaked already. the imf is going to hit 200%, twice the size of the economy. that is simply not sustainable. they cannot put my money into greece without seeing the debt burden being reduced. genie: the european union is working on a plan that would give greece a short term relief until the bailout deal is finalized. stephen: we are getting some details from the european commission. to agree to the bailout, they need more time. it is going to take a couple weeks to dot the i's and cross t's with legal and parliamentary mechanisms. the commissioner is opposing that they allowed 7 billion euros out of what has been called the european stand -- european financial sta

francine: is this the imf supporting the no vote?akis is saying the deal that was on the table is untenable. the timing is very strange on this. certainly the numbers they have come up with our big, scary numbers. >> it has been a long-standing view that greece has a sustainability problem. it also has a liquidity problem. a bailout to remove the sovereign from the market. it allows them to come back to the market. manus: the vice president was on the tape saying what matters most is the possibility of a greek deal. the greek banks are in a weaker position. monday morning of next week, they could open the banks at the touch of a button. is he deluded? are the leaders misrepresenting the scenario for greek banks? >> by the time there is an agreement, if there is one certain things will have happened. the government is campaigning for a no. you get close, the 20th of july, when the greek government has to pay. if there is a miss payment the central bank will get uncomfortable. it is important. emergency assistance can be removed. >> th

the imf says it is a decision between greece and europe and if those decisions are against the imf rules, they will basically step away. those comments are coming pretty late in the game. monica: to make matters worse the head of the federal reserve is now talking of rate hikes because the u.s. economy is doing so well. >> we're talking about the first interest rate and recent september and applause in october and then a second small increase in december that is what investors are betting on it this point. at the end, it is not done until it is done. if the situation in europe gets worse or in china, then the federal reserve will actually wait. janet was pretty clear saying she would like to increase rate soon and in the end, it's not only her decision. we still don't know what going to happen. and with all that uncertainty the trading environment on wall street was completely flat. monica: nobody knows what going to happen but take you that view from new york. the ugandan president has urged burundi's government and opponents to put aside sectarian and lyrical differences. and he's afri

we start with more details on what we've heard from the imf. markus: the international monetary fund has come out with a gloomy outlook for greece and the greek economy. you've been talking about it rochelle. 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

first time an industrialized country, a member of the imf technically defaultd on the imf. board has to meet to decide what to do next. let's not not forget greece is a member of the industrialized nations but had a 25% correction since the debt talks started in twen. it is a depression. that's why we are seeing the tension on the streets. what is necessary is trying to find common ground between the euro group countries, this 19 members that share the euro and greece itself. i don't see the common ground. it is extraordinary. a week ago. when we had this conversation there was a gap of two to three billion euros and they said let's have a deal by the end of business on thursday to sign it off on saturday and sunday and now look at what happened. surprises by the tsipras government during the negotiations suggesting out of nowhere, calling the referendum after the default extraordinary. something that's not been done before. again when we start to see common ground being forged a bridge built between the two parties, the tsipras government comes forward and suggests we'd li

the imf has been saying that the country needs to restructure to make it viable.ut and after 50 billion euros will be needed over the next years to help stabilize the country's finances. that is a huge surprise, and kind of confusing for greeks who had seen openly days before the referendum, the imf backing what alexis tsipras has been urging for europeans to consider. now, we all knew that europe was the one that steadily opposed it. they are the ones who are set to lose most of their money. meanwhile, what is also interesting is that this report was published now, but it does not take into consideration the referendum or the implication that it has had on the country. so we will have to consider the 50-plus billion in money. another point worth mentioning -- we do not know how important it is going to be. there has been a congressional letter from christine lagarde warning that the imf could for the first time -- to christine lagarde warning of the imf could for the first time see fatal destruction. the most important thing is that the greek banks are extremely

the imf says it is a decision between greece and europe and if those decisions are against the imf rules, they will basically step away. those comments are coming pretty late in the game. monica: to make matters worse the head of the federal reserve is now talking of rate hikes because the u.s. economy is doing so well. >> we're talking about the first interest rate and recent september and applause in october and then a second small increase in december that is what investors are betting on it this point. at the end, it is not done until it is done. if the situation in europe gets worse or in china, then the federal reserve will actually wait. janet was pretty clear saying she would like to increase rate soon and in the end, it's not only her decision. we still don't know what going to happen. and with all that uncertainty the trading environment on wall street was completely flat. monica: nobody knows what going to happen but take you that view from new york. the ugandan president has urged burundi's government and opponents to put aside sectarian and lyrical differences. and he's afri

the imf seems to support the view.k people who are inclined to vote yes, it is a lot of scare tactics in operation. media owned by the oligarchs in greece and the people who are responsible for the predicament, they are united for a yes vote. that makes me pause. cast the voteg to as if it is a vote for greece's position in europe. most greek people see that greece should be in europe. erik: i would have jumped to the assumption that you would be sympathetic to the yes vote. it sounds like you at least have some sympathy for the no side. >> i'm a professor of business ethics. i think the society that gives people chances to fulfill ,hemselves is the right society the society i want to live in. in that sense, i think that exacerbated,ated, the inequalities that greece suffered for decades. for me, the main issue is to improve governance of the country and address any qualities that have been exacerbated. erik: thank you very much. a professor of business ethics. she will be voting in the referendum. back to you in londo

but the imf estimates debt will hit 200% of gdp over the next two years.simple terms greece will owe twice as much as its overall economic output, and the international monetary fund considers this impossible to pay back. so one proposal is for creditors to dramatically extend the grace period so greece makes no payment for 30 years. another is for part of the euro zone debt to be written off to greece would owe less money. but european countries have ruled this out, saying that would burden their taxpayers. the imf says without debt relief, greece can't be rescued, that the organization won't be part of any new bailout. >>> we can speak to mohammed jamjoom who is in athens. what is interesting about this report is it kind of supports what the greeks have been arguing for a long time that their debt as it stands is unsustainable. what reaction has there been in greece to this report that we are hearing about today? >> reporter: yeah, barbara, most of the folks i spoke with are not really surprised by this report. they said it couldn't have come at a worse

the german government's position has been to require the imf is involved in the program, but the imfommendation is a redline for the german government, a nominal reduction in the outstanding debt. there is a compromise which is in the imf recommendations, which is a longer grace time longer maturity, and focusing on the needs rather than the debt to gdp ratio. there is a way forward to giving the germans imf involvement, but pushing back the debt sustainability and focusing on immediate financing needs. manus: greece has implemented more austerity than anybody else in the past five years in the eurozone. they have not done the structural reforms. how does greece get back off of its knees? ken: you have to separate the fiscal adjustments from the reforms. the -- if the greek government had conducted itself differently we could have focused on the reforms. from the eurogroup perspective it is fair that there needs to be radical changes in the way the greek economy is structured. on the reforms side, the agreements are understandable and necessary. the problem is making the debt sustain

it is not just the country and the imf. the country, the eurozone as a whole, the europeans, and the imf. they complicate things in many ways. side ofr is the other the coin, which is that we have to have an adjustment program on the exchange rates within the current currency area. in the past, morph -- most of the crises came, resolution came with adjustment in the exchange rate. that was not an option. that makes the adjustment much harder than say the asian crisis or even argentina. alix: that was olivier blanchard speaking with tom keene. after 13 days of talks between iran and world powers come optimism for nuclear agreement is beginning to fade. indira, thank you for joining us. say negotiators will miss the congress deadline. why is that so important? indira: honestly, it is almost certain. for you guys, it will be midnight new york time. here, it will be six akaka the morning vienna. but it is almost certain that they will not be able to get it finalized a deal to commerce by then. automatically, the way the review

no doubt it will get there and the ecb and imf gets paid. the bank of greece gets paid and that was quite critical. not paying them, the greek government risks sending the central banks into monetary financing territory which would have been illegal. we have seemed to get past tah -- that point. mario draghi said last week and is not controversial is a greece needs the money. not according to angela merkel this morning. and schaeuble and the finnish prime minister and not a nominal cuts in the base value of that debt. it will be a few discussions in the coming weeks about exactly what should happen given angela merkel's comments on sunday she wants to see greece go through the first round. it might not be the coming weeks but coming months the for with good decision. manus: paul, thank you. what ever merkel has to say in regards to debt relief it has opened pandora's box in many ways to what happens the next area elliott, thank you for being on the ground in athens. paul, we would check out you later. later on, we will speak with the greek m

greece has not defaulted on the imf.rner: given that it has defaulted the banks are no longer really solvent. the ecb is just able to provide credit to bridge over a temporary liquidity crisis. obviously, it is a solvency crisis, so i don't think it has a right to provide credit. you could argue that it is now obligated to withdraw the existing credit, but that would be a harsh measure. manus: if that is a harsh measure, than i suppose the risk there is that europe would face serious contagion? would europe face serious contagion if the european central bank withdrew its support for greek banks? hans-werner: it has withdrawn further support already. greece is in a terrible situation. as you said, there are lines in the streets. it is a mess. it cannot live this way. but what is the way out of the mess? pouring more money at this economy from outside or allowing it to become competitive? i think the latter is better for greece and everyone else. manus: so, allow greece to exit and issue its own devalued currency, sir? cou

the imf saying the sd r-1.2 billion repayment due by greece to the imf today has not been received. we have informed our executive board that greece is now in arrears and can only receive imf financing once the arears are firmed. "the imf received a request today from the greek authorities for an extension of greece's repayment obligation that fell due today which will go to the imf executive board. 1.9 billion was due today. greece is totally in debt for $271 billion. the unemployment rate 26.6%. youth unemployment 51.9% in greece. there you see the first quarter gdp. today also fitch had another downgrade for greece. the breakdown of negotiations between the greek government and its creditors has significantly increased the risk that greece will not be able to honor its debt obligations in coming months including bonds held by the private sector. so what does all of this mean to us in the u.s.? steve hayes senior writer for the weekly standard julie hayes and syndicatist columnist charles krauthammer. >> it doesn't mean anything good much that's for sure. the statement we just got

let me turn to the question about christine lagarde and the imf. of imf undertakes reviews all of the economies that are members of the international monetary fund, including the united states. and i think that is a very valuable undertaking. there are a range of views the imf has recently urged the federal reserve to wait until 2016 to begin normalizing policy. i think if you look at the range of views within our own committee, the members of the federal open market committee published their own individual forecast of the appropriate path of policy, conditional of course on the economic forecast. you will also see a range of opinion there. and so, it is part of the spectrum of opinion, i think what we have in common is that the imf and most of omc participants do see an economy that is improving, has made a great deal of progress, is approaching even if it has not quite reached maximum employment , that we see inflation moving up over time. and if this continues reasonably close to the point which it would be appropriate to normalize policy. i gue

certainly the imf doesn't seem to think so. >> no, the imf doesn't think so. in fact in a leaked memo it basically said european leaders have to get real about how unsustainable greece's debt really is. it said that european leaders have to start considering some very serious measures such as a big deep haircut up front for giving a portion of greece's accident or perhaps other measures other measures such as pushing out the time horizon when greece has to start paying back greece's interest, all the way to 2053. greece answer debt the imf feels is unsustain annal. but european leaders have been unwilling to discuss that. they basically told greece, told tsipras that these austerity measures had to be enacted into law first. by the way, this is not the agreement, this is the basis to move forward on talks of this agreement. >> we'll have more analysis in about 15 minutes. patricia sabga outside the greek parliament in theens, thanks. >>> capitalizing on the iranian nuclear deal, why russia could be a key beneficiary of that agreement. >>> and life in ukraine h

maybe the imf will accept it. we'll see. while markets wait for tomorrow, here is everything you need to know right now. we are less than an hour away from another so-called deadline for the greek bost to submit its plans for debt reform and yes, it is all about getting another bailout from whom we're not exactly sure about this time but this time there is a difference. the nation's status in the e.u. does hang in the balance. ashley webster is live from athens where thousands gathered in front of the parliament. ashley, the greek defense minister came out about noon and said to expect a deal in couple of hours. they only have about an hour left. if it for the last seconds nothing would get done in europe. even then nothing gets done. a few hours left before meeting deadline for e.u. creditors and as usual they will take it up to the very edge. we understand they have a deal they're ready to submit anytime now. they're also, tomorrow morning, the greek prime minister, mr. tsipras, will present it to the greek parliament, who

the deadline for greece's repayment to the imf has come and gone. to see how investors are reacting we're joined by ai uchida. >> european markets actually seem like business is usual. on wall street investors seem to have shrugged off concerns surrounding greece's default. the dow jones industrial average did manage to finish in positive by just 0.1% while the tech-heavy nasdaq finished up more than 0.5% higher. this was after that initial shock yesterday that greece may default. even germany slammed the door on appeals. it didn't seem to have too much of an impact because investors have been bracing for this moment for quite some time now. tokyo is no exception. the benchmark nikkei snapped a three-day losing streak yesterday. to see how markets are reacting today, let's go to ramin mellegard. what is happening? >> thank you, very much. very good morning to you, ai. let's actually go to the opening levels for july 1st, and both indexes here trading in the positive. pretty much carrying on from what you just mentioned about the u.s. markets. the dr

but the imf says it needs to be done.point is that the rules have to change or greece has to leave. it is one of the two. germany is making the point that the rules of the rules. i see why when they went back to the room i suspect that was a key point. anna: simon, thank you very much. let's move on, more on what is going on in greece. a privatization fund will be essential for any bailout. which assets will be included? is that any appetite for them? we look at some of the top contenders. >> the building behind me is the headquarters. the major greek company is a monopoly. we can split it into two. it is a fantastic privatization project. it will be one of the most valuable projects and the prospect of privatization. >> it is the jewels of the crown. theese are the major part of the privatization process. they are also interested, along with others. almost 20 minutes outside of athens there is a resort now it will come again for privatization. i hope it will be one of the major parts of the packthis is a look at what the

>> yes, what the imf is saying is important for germany because they want the imf to be on board. they only trust the imf as an independent institution able to deliver analysis that's independent. they don't trust the european commission can do that. for them its crucial the imf is on board. but clearly the main question is how do they square that the imf is call forgive massive debt relief. >> in >> every politician has to worry about that but the rest of europe is looking to germany for leadership, as the leader of the eurozone and the e.u. do you think that germany is missing an opportunity there? do you think they know, and they don't care that they're missing it? >> germany is reluctant to assume leadership. everybody looks to at-- >> whether you want to be a leader or not effectively germany is the leader of the eurozone. is that not even a consideration? >> i think to a certain extent there is a lack of understand to what extent everybody looks to germany for what they want. everybody else understands that what berlin says often at the end of the day is the outcome of the e

but the imf at the same time sending mixed signals here.ause the imf is saying we agree with part of the greek government's rhetoric that yes this country doesn't have a hope of paying back its mountain of debt. but it is unlikely many economists say that the imf will allow greece off the hook for its debt will rely on european partners which is half billion of its own to try and find the money for that debt relief for greece. but again, referendum is the big thing this weekend for these markets. >> all right. and we will of course be watching it and covering it. thanks you so much nina santos for us there in london. thank you, nina. george? >> even with the push from the government a push to vote no. greeks remain divided. >> i am in europe. i want itto stay in europe. >> there is no decision within the european union. i'm sure about this. >> next time we will vote yes. because we want to remain in the union. >> i think i would say no. because i'm here and i cannot leave. >> trying to play the future of gross in cards. we do not want to ha

the imf said it is about debt.isk with the creditors than the internal divisions in the greek government? >> i agree. the greeks tried to play the internal conflict of the troika. you cannot ask for the imf to be involved in the bailout, which has been the german position from the beginning and reject the central tenant of the imf's view of greece, which is that the country needs debt relief. at some point, you have to reconcile the positions. germany is not completely consistent. one thing on the plan b. of course they had to think about the plan b. manus: i have to agree with you. have it and sneak it out quietly. the chief european economist at bank of america merrill lynch. francine: finmeccanica beat estimates. first-half operating profit rose. let's cross to anna edwards, who is with the finmeccanica ceo. anna: thanks very much. yes we are talking italian defense, aerospace, and security with the ceo of finmeccanica. thank you very much for joining us today in london. your results are in. they beat estimates.

the imf demanded deprecate as a condition of the bailout.lake burman and washington with the latest set of greece. good morning to you. reporter: -- after a marathon of difficult negotiations, grace will receive another for a size that passes urgent tax pension and labor law reform demanded by creditors by midnight tonight. the international monetary fund once figures on the reason is far more debt relief. the germanic deterioration points to the need for relief on a scale that would need to go well beyond what has been under consideration. caitlin jenner to be honored with the arthur ashe courage award at the sp award tonight. doubtless presidential -- that will happen tonight. donald trump telling fox business what is wrong with the current leadership. a new "usa today" poll shows to search the republican field for 17% of the vote. >> is amazing. thank you so much. what do you make this poll? is it time to call it donald trump to republican for runner? >> now. everybody's talking about donald trump. he makes outrageous remarks about mexica

tsipras wants to get rid of the imf. the imf participates in the greek program. mr.s that the whole issue is a european issue, and we should get rid of the imf. byut he is not in a position to debate these terms -- i think we need the imf because he has the expert -- because they have the expertise. it is another thing to ask for 110 billion euros -- there is not an abundant supply of state money in the eurozone. things are pretty tough. to compromise the imf will be involved in the greek program. it is not the end of the world in my view. anna: angela merkel has said that trust has been lost -- the you think the creditors should trust this greek government? georgios: nogeorgios:. -- georgios: no. those that voted no realized that you shouldn't trust the greek government. we don't have to solve the trust issue. we just have to go forward and show the common problem, which is how the eurozone can function with greece staying in the eurozone but not creating a lot of progress in the functioning of the eurozone. we have to be competitive, the eurozone has to compete wit

greece has missed its imf him and. good morning.opean finance ministers will be holding a tele-conference later it was we expect? >> that's right. they met yesterday i teleconference as well. they have rescheduled for today. last night, they are in part of the program expired at the same time that greece missed its imf payment. there is a proposal that is -- was on the table is no longer there. the requested a two-year extension coming to your program under a different program in the eurozone infrastructure, if you will. it'll come back today and talk about. last night, the requested this program. the eurogroup has insisted that the economic reforms be part of any program that extends toward greece. there is no talk of that in the submission. they have asked and will reconvene by teleconference later on today and a more talks about that. >> what does it mean after we have missed the payments to the imf? it seems things are moving very quickly yesterday. >> it is a very complicated and fast-moving situation. the fact that they missed

it's crucial that imf is on board. but how do they square that with imf calling for massive debt relief. i think what's crucial to understand is that germany does not want to be the leader. because of germany history they're reluctant to go into a direction that would dominate the debate so they don't want that, but at the same time they do. they've got a lot on that front. >> staying in greece, two separate wildfires are pouring more misery on the country's economic woes. strong winds and high temperatures caused the flames to spread quickly. helicopters, planes, and dozens of firefighters have been sent to the site. residents from three villages have been told they have to leave their homes. prime minister tsipras paid a visit to the control center. >>> police in egypt have shot six protesters among hundreds of demonstrators. they're calling for the restoration of former president mohamed morsi who was deposed in a military coup in 2013. nadine barber reports. >> a violent confrontation. this footage shows anti-gover

has leverage in funding the imf. the imf is supposed to function as independent.agarde 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 enough. i am prepared to cut my arm off. red lines are necessity. they are flexible. it is common ground. i wish we had -- and make no mistake, is not the same and i want. i wish would never entered this. i think deep down, all member states of the eurozone would agree with that now. it was very badly constructed. once you are in, you do not get out without a catastrophe. we have the right to challenge the problem that we clearly face. this crisis that began in 2008, instead of helping us come close together is making the political process of unifying even harder. that is something we should lose sleep over as germans, as greeks, as portuguese, as finns, as slavic. we will com

what about the imf. there was one very interesting statement that was made when they started to create these mechanisms in europe. they said the imf a senior and we are next. again who is the sheriff says this dollar goes first to the imf and then the dollar goes to someone else. i know when the restructuring was done in greece, there were many private on holders who wring their hands in what was the special deal to eib god or that the ecb got. for those of us who've been around that restructuring that was a movie we've seen before. if you look at the way certain debt has been treated for example in the brazilian brady plan, brazilian banks have their own special process then they took no haircut. they taken mpv redaction, but they took no haircut. the logic for that in a way it's understandable because if you haircut the domestic banking system and you have another hole you have to fill and so forth and on it goes. but anyway, this is one thing that given the debt structure in puerto rico which is going

is the imf part of the problem here?ey were faced with very difficult challenge back in 2010 because greece was in a lot of trouble and they didn't have their own firewall established at that point so the imf membership came to the support of greece and in my board come mens and every review i insisted it was important that the europeans reaffirm their strong support for the euro zone partner which they did. of course greece is saddled with quite a bit of debt. as you have seen from the analysis released a week or so ago is insisting that the future for greece has to include debt treatment to reduce the heavy burden on the economy and we've seen quite a few comments accepting that will be part of the discussion. he was indicating there could be discussion. he wasn't precommitting anything so it's been tough for the imf but they're looking to be part of the solution here and to help the greeks and the europeans find a way forward. >> when we hear talk out of germany that they're not going to accept hair cuts on greek debt

so one-third of that would be for the imf to cover. >> and how much of that is us. one-third of that is what -- $25 billion. >> give and take. and then 16% of the 22. >> 16%. now what does that leave? that leaves us about $5 billion, just about. >> something like that. >> so isn't that wonderful that we're getting to bail out greece and our friends over in europe for $5 billion. isn't that wonderful. but we can't find any way to use that money anyway. >> well, it is important to recognize that if the bailout deal were to work, then it is not a handout. it is a loan that gets repaid. all right. so the question is really do you think this is likely to turn greece around, finally allow it to begin to pay off the debts and lead to a restructuring of the debt and we all live happily ever after. >> excuse me -- what about the date -- excuse me, with a member of the panel here, but the banks, when you talk about we're bailing out the european banks, these people are being bailed out said the banks are actually getting the money. are these privately held banks or are these

former imf ed. managing director, thank you very much for sharing your agenda and vision for an improved sustainable growth with inclusion prospects. in this regard, this current context of low growth, i get and financial market volatility make policy confrontation challenging. to say the least, even with the imf's new vision. you touched upon the article for assessments. in this regard i see that basically the process of global adjustment of payments and balances has remained quite disorderly. this is certainly not helping the process of structural reform and adjustment and even ample financing in these conditions is likely to be insufficient. are you satisfied with the efficacy of the funds surveillance effort? and is not what can be done to improve it quick and hear only one example the european context we have major countries that continue to exhibit high current account surpluses, and access of eight and 10% of gdp. is this something that worries you? can something be done? is similar to a cama

the global growth forecast, the imf cutting global growth gdp.with olivia and tom keene will speak with him at 10:30 eastern time. i want to get the view on a global economy now from sun valley in idaho. olivia sterns joins us live in sun valley. olivia. class so much. -- olivia: thanks so much. you look terrific in the hiking outfit and i want to start with the news in greece. half a dozen businesses in athens, are they operating? >> with difficulties. it has stifled. it is only .1% if we include associates in the 2249%. it is not important in the context but it is important psychologically. that plus china. the imf has just take -- taken down the forecast marginally from real growth to the world economy. that is what we're seeing. over the last six months of last year the first six months of this year, slowing down despite commodity prices going down and despite western europe starting to pick up. the fast-growing markets, slower growth, still faster where we have been looking for growth ironically in western europe. we have seen a turnaround i

i'd like to say if the imf is involved in this situation, it is because the imf was asked by greece tobe involved in trying to resolve this economic issues. whenever it is involved, it is certainly my view it has to follow its rules, should not bend the rules and should always be evenhanded. there cannot be any special treatment. the third point i would like to make is our loans to countries experiencing difficulties are conditional upon various requirement but all of them aimed at restoring stability, restoring growth and debt sustainability. the context of grace we have always advised the program walk on two legs if you will. one leg is about significant reforms and fiscal consolidation as we have a device in the case of ireland, portugal, tsipras and outside the eurozone i find and it has worked. the other is debt restructuring which we believe is needed in the particular case of greece for it to have debt sustainability. that analysis has not changed. it may well be that numbers will have to be revisited, but the analysis has not changed. what has changed is clearly greece is in th

so is there some blame here on the part of the imf, the european union, the european central bank? >> plenty of blame that goes back to the inclusion of greece in the whole experiment the whole european experiment. if you really want to talk about blame. yes, there is blame there, and have to remember what's going on politically in the other nations inside europe inside germany or inside france, they want to see their money repaid at least in france in particular they're having their own hard times. if you are asking people if you're giving people money, what might be perceived as free you want to pay back politically inside germany and france. lou: is this a moment of reckoning in your judgment, dennis for the eu? the eurozone is in difficult, defendant times. its economy is not performing. the promise of the vaunted eu is a power and the euro as a currency, it is taking the hammer. >> you see the euro about $1.11 today. i'm going to take a contrarian view, lou, i don't view it as a moment of reckoning as we want to cover it as summit we've been having the discussions about greece

urge: the imf said to china to withdraw measures.stand why these are needed in the first place -- to prevent what they call a wipeout, major disorder. prices should be allowed to settle through market forces because you look at what is happening. 1700 stocks are down. it was the broadest selloff since 1997. the sharpest one-day drop in seven years. in terms of the number of stocks down and up, it was the broadest selloff in 18 years. what the imf is saying, let's try to make this look more like a market and not an operation. yvonne: 1700 stocks are down. 78 also up. that is not a good number. yvonnethank you. onto brent crude, because it has returned to a bear market, losing more than 20% since may. it fell 3% on monday as overproduction boost of the global glut of oil. let's bring in dan in houston. good to see you. this is the second year in a row that oil has been in the bear market because of this supply glut. what is going to change that now? dan: the only thing that is going to change in the near future is if we stop making so