Status. Officials on both sides seem to be losing patience. The ball in greeces court but they want to throw it back at their creditors. No end to this debt debacle. Foreign currency volatility. A sudden spike in the euro. We are trading higher on zero point 3 . A similar dip in the dollar index. 0. 3 . In fact, the swings between the euro and the dollar between this hair is the high pair is the highest since 2011. Volatility is present. Bearish. Bets against the euro are pretty low. Many believe it will be done with greece. The market is positioning with a deal. The Hedge Fund Speculators have been cutting their bets the euro will fall. A little bit of an issue. The dollar will be moving today on the fact without Monetary Policy committee comments together, the Federal Reserve will start debating Monetary Policy in the u. S. Could there be any hit by jenny yellen will see rate rises later this year . Most bets on september. The bond market, a move to the haven into germany. Borrowing costs are layer does lower. Money moving into u. S. At 2. 34 . They are coming out of the periphery. Rising in italy. Six basis points. Starting to see the borrowing costs. Italy, spain, coming back and widening. Greece, of course, is where the concern is. 20 basis points higher. 12. 5 . Clearly, we are seeing significant move in the market. I will show you stop movers later. Jonathan the eurodollar higher. I want to take into asia and get to zeb eckert for the move. Zeb, big moves over there in shanghai . Zeb the biggest 2 today loss is the shanghai composite industrial groups declining care. Being dumped by investors and a warning from International Securities the information of the bubble, extreme return and jittery investors. The markets watchdog regulator taking a closer look at this and deciding how to respond. The hang seng is down. Shanghai composite is 1. 5 decline. Pharmaceutical stocks, some the big decliners, crrc china railway. The rail giant formed last week by the merger of chinas two biggest railways is taking a hit today. The shares down in hong kong. The big concern is this a margin financing used by domestic investors to pay for the rally could implode. You are seeing some the Big Industrial related shares in china moving today. Watching this gather steam. We will watch it as of the we gather zone. The nikkei 225 falling giving governor coronas backs kurodas backs damping saying i didnt back stepping said i do not mean that. It may have an intended for washington as president obama try to seek approval for the tpp which he did not get from democrats. Jakarta approaches an Interest Rate decision in the coming days. We are seeing positive buying in jakarta. The new somewhere in the asiapacific stop we are positive generally. Jonathan zeb eckert, thank you. A bad day for chinese stocks. A bad day for greek yesterday. Banks taking an absolute to beating. There are signs a deal fatigue is setting in both athens and among creditor nations. Hans nichols and at the end in athens. A big headline dropped yesterday and a german newspaper. Talk to me about that. Hans well, at the report in the newspaper using anonymous sourcing saying eu officials are preparing an ultimatum for greece. Plan bs capital controls. How do you get greece to accepted them . It is only a National Government that can impose capital controls. Yesterday you are from mario draghi and he did not mention capital controls. He did talk about the need for greece to come to the table and an agreement and he was putting pressure on greece. Have a listen. Mario draghi such a strong a credible agreement with greece is needed. Also other euro area as a whole. While all actors will need to go the extra mile the bull is in the camp of the greek government. Hans i count a three or four officials or ministers in the case of spain talking publicly about the need for a plan b about what you do if they do not make their payments or have a deal and if we get to june 30 and no agreement for additional cash. One final note, a new poll out and they ask on whether cool bears responsibility for the prolonged talks. 56 blame creditors and the other the greek government. Inside of athens, more blame for the creditors than the greek government. Jonathan nikos, that headline that last night, what i want to gauge is the latest from athens. When newss first across, does it when news like that comes up, does the hit of the streets . Nikos greek Public Opinion is divided and the majority of greeks favor an option that would keep greece and the euro area. Some would say greece should remain at any cost is dropping. We do not see a swing yet full over half of those surveyed by gpo ssaid they would prefer an agreement with additional austerity measures to keep greece and the euro area instead of default and euro exit. Among the party supporters, the results are mixed. In fact, those who favor the default and as it from the euro area are a bit more than those who say greece needs a deal. Jonathan nikos chrysoloras thank you for joining us. Thank you very much. Lets bring in our guest lucy mcdonald. She manages more than 700 billion euros and the head of Macro Research at ubs. The headline yesterday in the german newspaper, the plan b. Do we face the prospect of cyprus . Guest the scenario and i aint theres a chance of a lastminute agreement. It makes sense rationally. The greek government is digging their heels in. If they miss and payment there would be a grace period. Probably a bank holiday. They end of june is close to the next payment on the 20th of july. That is to the ecb and other central banks. That payment is a lot more important. You can have one month or 21 degrees period missing imf payment but if you miss ecb, the assets would be frozen. Likely you are in a situation where you may have two have ious. That is a step closer to an exit. We still have time to avoid that. We are getting closer to the point of no return. Jonathan greeces reality a you can have a company with no exposure to greece and no operations but it sounds hard how do you manage that type of situation . Lucy mcdonald that is what were hoping for. We have raised a bit of liquidity on concerns about grexit. And so these will be opportunities for us when we selloff particularly in europe. It could obviously, you could have yields rising further as at the moment in italy and spain. It could get worse before it gets a better. Jonathan for you the spread between italy and spain. That starts to change fundamentally. As i look at the bond, as they are anchored in this risk aversion. Where do we go from here in germany . Alberto gallo the ecb has done a lot with qe. All of this is being undone. Theres a point when the ecb will care. As of the last conference, mario draghi was cool. To some extent it shows an Inflation Expectations are rising and qe is working. If you make 10 year spanish bonds rise to the average level of hunting for the government you are undoing qe. If italy is going to pay more than it was, then basically they can spend less. Fiscal tightening on on voluntary tightening. The ecb have to care. Jonathan when is it . Ecb officials in a speech said i do not want to give the market a free pass. At some point, they have to care. Where is it . 3 , 4 . Alberto gallo the point where you are funding as your average cost a you are not saving more money. Even though i have to say after these levels, high volatility can still hinder spending and investments and make more concern about investments. You are really having a bit of monetary tightening. Banks that were landing in january and february are cutting their loans again. They are saying volatility bob banks are landing and now they are not. Jonathan lucy, this good news for the bond market it means high yields. For the equity market, selloff. They are highly correlated. When does a breakdown when it is good news for equities . Lucy macdonald volatility in the equity markets and then the bond markets. It does not hit until recently. That shows there is a little bit more of a valuation in equity markets. And the real concern not within the corporate sector. I do not think we are due for more volatility at the moment. I think it will break down but maybe a little bit more support. Jonathan with your stocks and looking at equities, do you try to the the low cap stocks or try to gauge what the future earning stream and brace yourself . Lucy macdonald what we do is get some clarity about the underlying performance which has been a martyr little bit about this. That is something well spoken about just seeing where business is fundamentally being affected by the Exchange Rate volatility or whether it is just reporting. If it is just reporting, there are opportunities and things were been looking for. With a company to understand exactly how their company is working. Some are learning. They have not seen this level of fx volatility. Jonathan have you pinpointed other countries that look good . Lucy macdonald ralph lauren is one. They have been affected by travel. It is a double impact going on. Jonathan Lucy Macdonald chief Investment Officer and Alberto Gallo will stay with us. Coming up the Paris Air Show. The ceo of saffron. At 8 30 a. M. , whatever it takes on trial. The European Court of justice will deliver on Mario Draghis transaction. That we preview u. K. Inflation data. Those stories and much more. Join us in two. Jonathan good morning and welcome back. I am anna edwards. I am jonathan ferro. The equity markets are blanket red. The dax is up 0. 8 . The ftse 100 is off 0. 25 . Most of the bond market. German yields, pretty anchored. The 10 year is down 2 basis points. The italian 10 year, yield is up 70 basis points. The spanish is up for the first time august. The interesting part is at the seven and a nine and the difference. Over the last 12 months, the spread has been trading over spain for the majority of the time and that has changed in the last week or so. Italian under spanish. Are we thinking about political risks until the end of the year and spain pulling a greece . That is the extreme scenario. I will break it down with Alberto Gallo. The bond market moves. The top news and bloomberg. The bank of japan governor kuroda said he was not try to influence of the yens Exchange Rate. Its centered the yen lower. A statement after mr. Kuroda told a hearing the yen was unlikely to weaken further. Shares in australian insurance giant iag surge by the most in years after securing a 388 Million Investment from warren buffett. Berkshire will get a stake. Boeing took an early lead in orders and commitments on the first day of the Paris Air Show with 18 billion order. It rival airbus. Boeing signed a deal with indonesia for 30 dreamliners. Day 2 and interviews with the ceos of some of the biggest companies. Guy johnson is with one of them. Over to you. Guy thank you. You were talking about some of the numbers out of the Paris Air Show. Let me update you. A Company Placing an order for 100 737s, the new version. The list price is twice of the business of airbus of 30 billion dollars versus 60 billion and that number will change. Lets talk to a man who will help provide some of the new engines for the 737. He is the ceo of safran. Recently on at the job. Nice to see you. A lot of orders, through a you will provide engines of the 737 and a20. Is there really a demand for all of these . Guest i believe so. I am very pleased with this order. We have already, we have eight rows and engine 8000 engines on order and a huge a backlog and i expect a more during the show. Over 9000 engines on order and we will start production in 2016. I 2018, we should be at the rate of 1800 engines per year. Guy airbus, i was talking to the ceo and he was contemplating stepping up the 6320s and has a lot of airplanes. A huge strain on you guys . Philippe petitcolin yes, it is. On all of the supply chain. We have a lot of partners and suppliers all over the world of now. We have to be sure that as long as the demand and request increasing, we are able to sustain such an increase. Guy is it . Philippe petitcolin we are discussing it with each of our partners and suppliers does the off are we came push and storing the supply chain. We are under discussion right now. Guy you are doing it right now . Philippe petitcolin everybody is talking about an increase. We have to beat our commitment. You cannot say, yes, we will try. You have to commit. Guy perhaps a few problems with their engines for the 320, any pressure from airbus . Philippe petitcolin; no, this kind of problem happens. If it happens to anybody, i do not want to blame anybody regarding this problems. We have not yet to discuss any kind of consequences. Your question regarding which can be even harder for us. Guy you will be the engine supplier of the new chinese aircraft. Give us a sense of different gives a sense of dealing with the chinese. They really want to break in. Philippe petitcolin i am sure they will get into it. They will get a bps of it. The longer, they are learned. They will get a piece of it. They are learning fast. Guy in terms of your timetable of the schedule you are looking at . Philippe petitcolin we are going to diversify. For the chinese, you do not only supply the engine but in the provide the assistance in august. And we expect before year end. Sometime in 2016. Guy you have recently gotten into what would airbus on launch vehicles. How much is that how much has that market change this in london must decided to be a part of it . Philippe petitcolin he is pushing us. Elon musk decided to be a part of it . Philippe petitcolin it will change. Would you talk about europe, you talk about airbus and safran. We are going to them to meet the competition in terms of performance and cost and service to the guys who put on the satellites. That is the reason we decided to create a venture. Guy how much on the market . Philippe petitcolin it is too early to tell. Two different markets. Your the commercial market. You have to work on the mix between the two. They are different. It depends on the weight of each of them that you can achieve in order to give a Price Comparison between various satellites and omissions. It is too early to tell. Guy you are pushing heavily. Is it a natural fit, engines and biometrics in the same group . Philippe petitcolin the way you ask the question, you would answer, no. When you look at security, airports, we are a big market. We do a lot of things in protection and biometrics. If you look at the airport today sometimes of the day, it is overcrowded. Sometimes, theres almost nobody. We have to adjust the flow and the way passengers are treated in an airport. I know the saying we are pushing today into the security business which has nothing to do with the airport. It is digital identity. I believe it is a physical market. The physical identity as well protected. Not just digital. Guy great talking with you. Philippe petitcolin joining us from safran. Jonathan thank you. We are back in two. Jonathan good morning and welcome back to on the move. I am jonathan ferro. Up to spain on how things are moving in the equity markets. Up to speed on how things are moving in the equity markets. Mainland europe where the heavier markets losses are. Almost 14 Percentage Points lower. Almost 14 percentage point lower. Waiting for the athens a Stock Exchange would allow for formation. It has been brutal in greek stocks. The biggest 2day selloff since january. Interesting moves and the bond market. Down by two basis points. The italian 10 year, the yields go higher. 2. 4 . Spanish bond is up. Nine basis points. Earlier the difference between spain and italy getting interesting. We will break it down with Alberto Gallo. We are waiting for the big decision out in europe the court of justice in luxembourg will deliver a verdict on ecb president Mario Draghis transaction program. It was announced three years ago by mario draghi when the bonds threatened to split of the currency bloc. They will deliver a verdict on the legality. We are joined by paul gordon. What are we expecting . A big surprise if they ruled against the program, wouldnt it . Paul gordon it would be a huge a shock. It is not about easing. The advocate general said earlier that the plan is probably illegal and a lot depends on not crossing over into monetary financing. Interestingly, the general said at the ecb is probably the best organization to judge whether that is the case for the European Courts. It would be interesting to see how they easy j reacts and deal with those themes. Jonathan it could have implications on qe. How could it affect the program . Paul gordon a couple of issues. The sheer horror if it was overruled. There would be legal challenges and even more of them. Although the ecb said they are separate programs and even back months ago saying it would not affect qe, you have to question how significant that would be. The second issue sounds like a minor one but they pointed out the ecb must not be allowed or should not be a blocking minority in the bonds and buys. Omt does not necessarily go that far but qe does. Qe is buying bonds and has restrictions in place to stop it. If it wanted to, would it be able to do so . That is the question we might get a light on. Jonathan is that what we are looking for . Paul gordon i mean, you have to admit, the most likely scenario is the ecj saying it is find a hearing conditions it was not to be fine. And carries on with the job. That is what the market would like to see. The plaintiffs, certainly not. Jonathan paul gordon thank you. Breaking down what we can expect from the European Court of justice. More from Alberto Gallo at rbs. We are waiting the decision. Never activated but oh, my, what an effective program. Mario draghi not to buying a single bond during the euro prices and now it is back on the agenda but not entirely. Alberto gallo omt has been a Great Success but maybe this verdict will not to be as important a because we have