Critical decision on whether to raise emergency funding for banks. Raising the toolbox. Beijing steps in with unprecedented measures to stem volatility. Thus its another erratic market with stocks giving you have gains. And the rolls royce issues a profit sharing. A new style of management. Okay. Lets get straight to having a look at what markets are doing in reaction to this surprise result in the greek referendum as you can see. Predumb pant thatly red in the to the stoxx 600. The declines 1. 2 . Perhaps not quite as big as could have been expected given so few people predicted the results of the referendum. And we had a similar reaction to the markets exactly one week ago after the announcement of the referendum. I guess the markets learned from their experience last week. They saw this was a knee jerk reaction and will focus on the early talks. Meantime, Yanis Varoufakis has resigned as his position as finance minister. In a statement, it states his absence could help the government eventually reach an agreement. In true varoufakis style states he is wearing the credit tours loathing with pride. Now with the new finance minister in greece what do we know about him . Well hes one of the crucial favorites to become finance minister a couple of times actually in the last year very smart, very to the point. Economics very much a focus of what he talks about when he discusses the issue. But he is seen as one of the more stringent and focused. As far as what greece needs in the approach that they take. He is very different in terms of the drama 5 that varoufakis is guilty of it. He is alleged to be one of the ones to sign the deal and mr. Tsipras wouldnt let him. A question who is the hardliner here. The question is that mr. Varoufakis wasnt at the negotiations in recent years. So it looks like a shift change in the recent strategy change. Even believed with the blog that he wrote in regards to his resignation, theres what eye asuggestion by the creditors that this would facilitate some deal. But ill always come back to here, the numbers have to stack up. And of course, a they need to convince them that they will implemented, its not just about signing a deal. Its about implementation going forward. Guys back to you. Thank you so much for that julia. Greek finance minister Yanis Varoufakis, the quote, the problem is once youre in just like the eagles song. Hotel california you can check in anytime you like but you can never leaf. Now that varoufakis has checked out himself, were looking at all of his favorite hits on cnbc. Com. Let us now how it looks. As we look at the european markets, ftse 100 relatively outperforming down 1. 9 with the likes of germany france around about 1. 5 . And italy off 2. 6 now. Portugal off 2. 3 . Lets look at the Banking Sectorer that is making most of it. 2 . 3s and 4 percents across the board. Now, lets just bring in the last 30 days because i think this is very important to highlight. Yes, over the last ten days the dax has declined sharply, 5. 7 from this peak on the 24th. But dont forget this rally we had had about 2, 2 1 2 weeks ago, that was on greecerelated positivity. That means over 2 1 2 weeks the index is basically flat. Despite extraordinary improvement, markets havent really declined that much on a two or threeweek. And that is something to bear in mind as we consider whether the declines were seeing today are significant or not. A reminder the dax up 1. 4 now. This also highlights the same point, the euro overnight trading much more softly than it is doing now. Just hit a session high. Only off 1. 2 . 1. 109. The euro has been confusing the last few weeks but given that its up much more sharply in the last hour. A 0. 04 . A quick look at bonds. Likewise, a safe haven for the u. S. Compressed 2. 3 . Italy up 2. 4. And the greece ten year remains hugely out of rain. 17 . Were looking at 54. 05. The brent up 1. 04 . Lets get to julia for more on the unfolds greece situation. Julia. Thank you. Were very much focused on the no victory overnight but also a catastrophic failure for the yes campaign. And also what wasnt mentioned the resignation of antonio sammerat. Thank you for joining us. I want to ask you first about what happens now, do you believe that mr. Tsipras with the resignation of Yanis Varoufakis can get a deal with the coming days . The resignation of varoufakis is good news. Although im not quite newer shoo who is going to be next. I presume tomorrow it seems our economy has been much worse, i think the proposal will be. And im not sure what will happen. Lets say that they try and come to some kind of deal tomorrow as you put youre expecting it to be harder than what they might have got. Theres two strong people now . This would let him say that this people so i have to find a way out. But since he made a tremendous victory, now, its very difficult for him to backtrack. So im very worried. Banks are also backing into a corner here as well here. Hes not got time on his side. Something needs to give here. Around 2 00 in the morning the people in the banks were more than the week before thousands of people after the result went down to the bank. So we said before the yes campaign. You take what happened and you take a paper and read but you have to say yes to stronger measures. Ill have to say yes to raise the facts in my business. You understand the nature and behavior of society when they read this paper, because they know we try to explain to the people that the real problem is the euro this is not about the euro. And if you give me power, i will bring you powers. Reporter you also put other Prime Ministers on the television. Faces that people associate with austerity and memorandums. Its a face of austerity for these people. With Something Like this or Something Like that but new democracy, theyll have to find a way out and i think well see this in time. Reporter thank you so much for that. Moving on a blow for brussels. They scramble to put another an emergency summit for the capital on tuesday. But Francoise Hollande hoping for a new start. How will a negotiator impact the talks with greeces credit tours lets get out to brussels. Negotiators havent thrown in the towel yet . Reporter no absolutely. And i think, you know we were talking earlier on squawk box about who knew what and when. Because a lot of good conspiracy theory. Perhaps the fact that some of the statements that we got in the wake of the referendum result from european officials suggest that maybe there was always changes to come within the greek finance minuteistry. So it is clear that mr. Varoufakis has been within the last couple of months with the negotiations and personalities do matter when you get people around the table at this level. So perhaps with a new group and someone fresh in that seat we may have the grounds for optimism that there can be some progress going forward. I just wanted to pick out a point youre make an Angela Merkel going to paris here. Because if you look at the way the negotiations progressed before they broke down it was very clear that the french were in the camp that said a deal must be done. And they hoped that there would be some room for easing the terms for the greeks. Now the germans, as you know have taken a much tougher line on the fiscal side of the equation equation. And i think its very significant that Angela America is making that trip to paris so they can try and find a common position with which to deal with any new approach. And it has to be the greeks that bring the new approach i think, everybody has been stay inging the fall is very much in the greek court at this stage. Jeff im interested in this particular reason as you say, its just two of them they might be able to iron out a few of the creases before all of the finance ministers come together. How much do you think Angela Merkel is at home on her side why isnt she just a crucial back stop to the currency . Reporter no i absolutely agree with you wilfred. Its appoint that ive been making that i think Angela Merkel doesnt want to go down as the german chancellor who effectively sunk the eurozone as its currently configured. And i think even as youve had prominent cdu members coming out and making aggressive statements and we know mr. Mr. Mr. Mr. Mr. Mr. Mr. Schobler has played good cop to ms. Merkels good cop, i think its for her to try to keep the greeks at the table. As we look is talking to whom we know last night, very quickly after that result came through, mr. Tsipras was on the phone was to paris. So he talked to mr. Holland. And i think they will all be bending over backwards to try to find a way to move forward here. I think the key question will be if there are grounds to rare row the differences over tax for the islands, pensions and so on and so forth, theres just this one rye maining issue. I seriously would like to see some progress on debt can the europeans come up with something that is imaginative in this area . Look, theyve said it in the past past, special purpose vehicles some corporal of special refundlerefund le ing, maybe sure can come up with a way thats imaginative that would lead to a meeting of minds. Still coming up on the show america 2350e78 mail soccer Team Continues the fireworks into the fourth of july clinching the world cup from former winners japan. Forget fringer prints. Mastercard has an ad. Will it take off . Plus they say its all about the timing find out why the return to the big screen failed to get moviegoers excited. Hasta la vista, baby. Are you moving forward fast enough . Everywhere you look, it strategy is now business strategy. And a partnership with hp can help you accelerate down a path created by people, technology and ideas. To move your company from what it is now. To what it needs to become. Chinese market volatility continues despite beijing stepping in for emergency measures. The peoples bank of the china is one of liquidatety to security finance. This after regulators announce they had would also limit the number of ipos, as you can see the market has ended in positive territory, plus 2. 42 . Lets go live to beijing. Reporter thanks so much wilfred. Well, the Chinese State media was putting a very positive citizen on the chinese stock markets today, with one editorial saying that the rainbow always appears after the rains. And this is after today, we saw some signs of stabilizing in the stock markets after a weeks long correction. And this of course comes after the weekend discussions by the leaders here. To come up with some dramatic moves to shore up Investor Confidence. We heard that the pboc for one agreed to provide some assistance to a governmentbacked manageren financed agency in order to try to put more money in the hands of investors so they could into a some shares. A stock Stabilization Fund was set up that involving 21 brokerages who are going to commit 19 billion. And also the state regulators has agreed to spend ipos. So all of these efforts are really made to shore up Investor Confidence and get people back into the markets, wilfred. Thank you very much for that. We want to hear from our viewers on this topic. What say bigger threat to Global Markets, china or a grexit . Join us worldwide for a conversation here at cnbc. Com. I have to say the true question is Global Global markets . Its china, isnt it but then why hasnt any from the Chinese Markets to the asian markets, why hasnt there been been any contagion to the european markets . Weve seen it going none the ging ging on in the last three or four weeks that it doesnt impact the resteven if china is more important, why isnt there any . I think very much at the moment were focused on the asian market the shanghai market not hong kong. The reason for me that china is clearly the elephant in the room, i think its not just an issue for Global Markets as opposed to saying european markets, i also think its for the global economy. And yes, so far, its been focused on a marginal number of investors. When that starts happening that will affect global economies not just the Global Markets. And that seems to be the point. I would say on the whole greece issue, we actually havent even seen european markets sell off that much around greece. 5. 7 decline on the dax over the last ten days. Thats quite a lot. But over the last 2 1 2 weeks its flat. But, yes, i think china is a bigger issue for markets, but on the short term i think the european markets have a bigger issue. Maybe, maybe not. It all depends on whether the ecb will step in not just in terms of the greek issue, and about whether they round out purchases of eurozone debt whether they give us any new methods, any new ammunition. Because they still have some left in their tool clip you would think. So i think it depends on the policymakers. I think absolutely weve had this vote and this clear referendum ahead of the vote. Theres no clear result of how we get to a grexit. Who would make that. I think theres a Holding Pattern until july 20th until when the big ecb payment is due. You know what i question the july 20th deadline because greece also has other obligations at the end of the this week. Lets get back to julia in athens. Julia. Reporter thanks very much, guys. I just want to introduce you to my next guest a former wells bank economist, pretty wellknown in greece as the prospective imf negotiator. A whole host of the issues and also an adviser to the finance minister here. What are your thoughts with regards to the resignation of Yanis Varoufakis and the replacement. Is this going to make a difference in the negotiations . It will be a matter of a few hours to see. I hope that we will be able to have a deal very fast because its very highly needed for us to be able to move on. Reporter the perspective candidates it suggests that mr. Tsoufakis is very much interested in a deal. Do you think its a better choice to get a deal going here. Frankly, these are loaded questions, and they require a lot of meetings governments and negotiations internally within the minister council. And the Prime Minister himself. I do hope he will have the best result. Reporter your experience in having what an institution is like, with the bank and the approach theyve taken in the negotiations, do you think the credit creditors are going to suffer as a result of what we saw last night . I think there to be detente. So both sides have to engage really strongly. We have engaged a lot from the side of greece. If anything the lenders should recognize the fact that yesterday night, mr. Tsipras is no longer just the president , hes the Prime Minister of a full nation. We didnt have one dot on the map that was suggesting differently. And im expecting this to also be completely with the party and by the all the greek parties. This is not a party issue. This is a national issue. This is a survival issue of a whole country. Thats such an important point for negotiating here. And then trying to pass it through parliament. I guess what youre trying to say there, he can bring his own party into line here. He can make sure that the independent greeks are on board to ever deal with necessary country on board. The whole country is on board. Now, so he should be seen as the representative of a country, not as a representative of a simple election, which im not reducing by calling it simple, but its an election. Yesterday, it was identified that he is backed by the whole country. Now, this is a political. A political statement, the topical statement should not be mixed with politics. But it should be coming it should be aligned, if you like and not go opposite to it. So the greeks yesterday voted for europe. They voted for the euro. Yet, they vote and they also said please understand that we can be both but we cannot anymore provide any additional savings, because we dont have anymore. Reporter great to talk to you. Anna panaritis. Julia, thanks for that. We check in on the front pages as greeks react. Well be back in two. European markets pare losses after a negative open with banks leading the declines. The euro also steadying after Yanis Varoufakis resigns as finance minister offering a glimmer of hope between athens and its creditors. Fans say the ball is now in your court. The two are restarting talks. Meanwhile, the ecb raises concerns. Raiding the toolbox. Shanghai closes in the green after beijing steps with one precedented measures to stem volatility. Rolls royce chief warn weres it makes its mark of a seal after sending the stocks tumbling. Offering a new style of management. A quick look at European Equity markets and we are off the session lows. The ftse 100 is off by. 75 . The dax off by 1. 25. And the cac off by 1 . A resounding no vote in greece yesterday, european stocks fell more or less 3 last week. That was the worst week in about two months wilf. Some of the biggest individual mover, carolyn, rolls royce, the aircraft engine maker up 9 . Citing weak demands the Engineering Group also announced the suspension of its bond buying program. And issuing a call for action stating we need to move quick to please impatient investors. He said the findings of a Strategic Review which was launched, thats off 1. 7 . In line with banking stocks declining after the greek vote. Investors failing to get excited by fresenius plans. The and the ceo told german media the Hospital Business still has plenty of room to grow. Lets get back to greece. A critical meeting for greece is due to be held by ecb today. The central bank will decide whether to increase cash to the nations banks through its ela mechanism. Reports suggest that policymakers will not raise the liquidity ceiling keeping further pressure on the finance system. Lets go to frankford. Why would the ecb do anything that could cause a potential grexit because it is not a Political Institution . Reporter no, its not a Political Institution, but it is a rule bound by the rules and as much, they could not lift the emergency liquid at this time assistance even if they had would emotionally like to. Because it is tied to rules. One of the overruling items has to be a solid Banking System and also collateral for the banks to hand in at the bank of greece. And those, according to my sources i was talking to yesterday and today in the morning is scarcity. There is not much collateral and they cannot lift the ela ceiling any further as of now. Of course, a positive outcome from tomorrows talks might change the consideration. But for today, it does not look like any movement on the emergency liquidity assistance at least any positive movements. What we can actually get from the governing council, a telephone conference today, after the hair cut on greek collateral. But that is also doubtful because it would actually mean furthermore pressure on the greek Banking System. Looking at the unsecure political consideration of the meetings taking place as soon as tomorrow. Essentially, the ecb is in a very tricky situation because whatever it does it will be criticized. They will now lean to give them more financial leeway this would provoke evolution of the governing council looking at the assistance from the likes of the bund bank. And the system would color. Essentially what needs to be the banking recaptainization. And the quig question is what is the currency for the banking recapitalization. Careolyncarolyn, back to you. Ewald nowotny joins squawk box. The newspaper says the nation is in danger. The most widely read newspaper in greek says leaders seek a deal in 48 hours. Well see whenever that actually happens. Grease greeces democratic paper goes with the headline europe, are you listening. And you really need no headline for this. Im impressioned. Weve got something. Anyways, lets show you international papers. Chaos, pretty selfexplanatory. And the most circulated german paper said greeks are celebrating. And then youve got some the french newspapers with a very clear note. Im going to weigh in on the issue, because i wasnt that helpful for the headlines in the rest of the europe. Lets look at the uk front pages as well. Which you can see greek votes no. Europe shutters the front of the independent, meltdown on front of one of the papers. Princess charlotte was christened yesterday. And then no to austerity, austerity clearly a front page head line there as well. Lets talk about what the bank, saying. Yeah jpmorgan is saying the euro is the race pressure for a deal versus the impact jpmorgan also says there could be another greek referendum. This time, on memberships. And then a no vote raises the rick of a grexit with a grimbo. They coined that a couple weeks ago. Like that. And then likely the cap on ela for european banks. And the most likely outcome saying a deeper selloff from last week could be possible. And any possible for currency will be chaotic, any nongrexit scenario appears to be quote, wishful thinking. The ubs says 70 chance of a no vote. And with the grexit progressing to nearly 70. Despite that ubs believes that the ecb will be unable to negotiate any financial contagion from greece. Joining us from the spc, thank you very much for joining us. Good morning to you. Good morning. I think the note on the 2nd of july saying if we did get a no vote it would mean a 70 chance of grexit. Weve now got that no vote do you still think a 70 of grexit . The ubs is offers the probability of a big grexit is increased by 30 , 40 . We havent taken that into a base case yet. We want to see how the europeans react to the no. We have to take a stiff view here. Because the logic is still there. They solidified with greece leading. Obviously, the no is a new spin on the whole negotiation tactic. From the greeks theyre still under a huge amount of pressure. For the european point of view obviously, this strengthens a little bit the governments stance. How do we actually get to a point a grexit though . Does it require an outright law in greece saying we want to leave or the germans kicking them out because theres no clear process for that . The most likely path for the greek exit would be if the greeks stay close, and then what is happening to the banks. There clearly is becoming a cash economy. And even thenner its, its going to be difficult for Different Countries to transact with each other. At some stage, the banks become insolvent. The state has to decide what they do with the Banking System. They economy can function these days without a bank. The only way they can capitalize that is with currency. Thats the most likely way of getting a way out. Actually, the Banking Sector will enforce the politicians hands over the next couple of days. Its absolutely crucial, the banking section. You wanted to be ale trade, and how long do you want to keep the trade on the table . The reason behind it is were seeing the european youre iseurope is recovering. Were looking at manufacturing in june, the highest in four years. Valuation, and does that change everything does that change the economic recovery in europe . We dont think so. Greece is not part of the g dp. Of course weve got ecb with quite a big program, and they stand by to step into the market so that it is used widely. But it depends on what we had a few years back. Even if we have full blown grexit, you dont think theres a significant contagion . No we dont think so. So any debts you buy european exits . Yeah. We see further volatility with european exits. In terms what the ecb is doing now with respect to easing now or would you expect them to ramp up with what we saw over the weekend . Im thinking yes its huge more than 1 trillion euros. But is it enough for this kind of scenario . I think its a big program. What the ecb can do is step up that and make it 100 billion. If they see that in the market. And i think ecb needs to be prepared to step in and act, if needed. But its not just ecb, europe is on the recover path. Weve got to try to understand how it is like if it should be derailed and the only way i can see having an impact if people no longer believe that the spanish and portuguese be part of europe. And then they start putting pressure on the bonds but then again the ecb and also if the economy gets because of a negative impact on consumer sentiment, i dont see that. Thank you for joining us. Thank you. And weve got some interesting comments coming from the ecbs mr. Noyer. He said restructuring could be monetary financing. Thats why everyone keeps talking about the july 20th deadline when we have got a 3. 5 billion debt payment coming from greece to the ecb. Still to come on the show Grexit Brexit and grim bo could the rise of brexit be on the rise, well discuss next. Welcome back. Both sides at the Iranian Nuclear talks differences still remain head of the nominal deadline for agreement. Secretary of state john kerry thinks a deal on Irans Nuclear program could till be done this week. At this point, this negotiation could go either way. If hard choices get made in the next couple of days and made quickly, we could get an agreement this week. But if they are not made, we will not. Lets get out to ali aruzi. Reporter it still remains to be seen over the weekend, the foreign minister delivered a very upbeat message that theyre closer than theyve ever been before. But as you just saw secretary of state john kerry delivers the much more sober message last night saying that a deal could be reached. At this stage, both sides putting the ball in each others court. Kerry went on to see that the iranians are intransient and that the United States is willing to walk away from this deal. And for the iranians with closive methclose ive coercive meths to get the deal done but at this stage when the stakes are so high i think both sides are fully aware of what the consequences are if they watch this deal fall apart now. And thats why theyre negotiating down to the fire. Both sides say at this time the talks are not going down to the wire. Thank you for that. Moving on George Osborne unjailed the first conservative budget in two decades. Hes expected to announce a series of spending cuts with 12 billion coming from welfare. The bbc will be targeted from further savings. Meanwhile the inheritance tax will be raised to 1 million pounds. From grexit to brexet. Can David Cameron find himself in a better bargaining position if athens leaves . Over the past month, drumming up support for his eu focus. Take a look. Joining us is william dartmouth, a member of the Uk Parliament and trade spokesman. Thank you for joining us. Of course, its a strong strong and surprising vote from the greek people. Will that strengthen David Camerons renegotiation hand . No simply because no one is very interested in what David Cameron has to say or what David Cameron is asking for. And the fact of the matter is this huge crisis in the eurozone has the effect that the leaders are even less interested. Last time, when they had had had their dinners, theres always dinners in brussels. They will be there last week. David cameron got there sort of junior, junior junior training investment banker and the president of france chose that moment to take a leap. William, well come back to what this means to grexit in a minute. Lets talk about the grexit at the moment. Do you think its a watershed moment . Yes, this is a watershed moment. This is very much when the deal was done its a fixed currency. The fact of the matter is that greece cannot pay its debts. Whether it had a yes or a no it still couldnt pay its debts. And what has to happen is two things. One is the numbers this is a Financial News channel, so as you know when numberlenders lend money to somebody who cant pay it back . What happens . The lenders lose some or all of their way. And the second thing is for greece, is that they leave the eurozone. And if that happens, it becomes clear that the eurozone is simply a fixed Exchange System which weve seen many before. And then of course the next problem for greece is italy. No one is coverage italy now, not even cnbc. And even your competitor. The fact of the matter the economy has contracted in realtime 10 since 2007. The fact that people arent covering it doesnt mean so that it isnt happening. Theres a very simple reason for this, greece simply cannot manage to be in the same in the same Monetary System as germany. Is it just doesnt work. I do want to comment on a couple things you said. First of all, we do cover italy to a great extent. Last week i was sitting here and was talking about italy. I was watching your program. There we go. Second of all, you said no one listens to David Cameron, why did this nation overwhelming vote for him if no one is listening . And your party, a big disappointment for your party back in may, why are they not listening . I said no one listens to David Cameron, meaning the european leaders dont listen very much to David Cameron. I think they do theres a very serious point which i made when theres a European Crisis you cant say this isnt a crisis theyre even less interested in actually hearing what his demands are. Less people conservatives, say that mr. Cameron isnt asking for enough, he should be asking for a lot more. One of the things he wont get is Free Movement of people. I asked on the confirmation hearings would you ever admit to there no longer be free leading to people he said absolutely not, its a pillar. Its completely nonnegotiable. With with David Cameron he even started this renegotiation process, you already have the election. He had won, he is committed to this referendum. Surely now let him try to negotiate and see what they are . Were weakening the nations hands no i thought i was being asked to analyze, what are the prospects, how does the potential weak grexit impact on David Camerons renegotiation strategy if you can call it that . Most people call it a tactic. Ill leave that aside. But when theres a major systemic crisis in the eurozone, it certainly is a crisis. Im not saying it isnt a crisis. Obviously, the european leaders in the eurozone, president hollande and the rest are very focused on that. So its very difficult, we know in our own lives, when people are focused on something, its very difficult to get them to focus on Something Else. Thats really what im saying. Im not throwing mud on it im simply giving analysis to it. And finally a question from me would you be better off ahead of this referendum would the skeptic be off . The 3. 9 Million People that voted for eu in the general election, are there going to be votes from others who he may perhaps ostracize . The fact of the matter is we have to get 51 of the vote. Actually, i think hell get quite a lot more than 51 of the vote, otherwise, i think the assumption that were somewhere fudging it. To get 55 to 60 of the vote there obviously has to be a massive campaign. All sorts of people leading it including people on the left. Id just remind you, if i may, an antiwing party, an antieu party is a left bing wing party. William dartmouth, thank you for joining us. Member of European Parliament and trade spokesman to the eu. And then the u. S. Womens soccer team beats japan 52. The victory means the u. S. Avenges its loss to japan in the 2011 finals. Its the first world cup title since 1999. Congratulations. Schwarzenegger wasnt about to lure people away. Terminator and magic mike xxl opened third and fourth. The fourth of july falling on a saturday did hurt ticket sales as can people skipped movies for outdoor picnics. Thus more to come on the Worldwide Exchange, with the latest from the markets and much more after a short break. Push your enterprise and you can move the world. But to get from the old way to the new youll need the right it infrastructure. From a partner who knows how to make your enterprise more agile, borderless and secure. Hp helps business move on all the possibilities of today. And stay ready for everything that is still to come. Welcome to Worldwide Exchange. Im carolyn ross. And im wilfred frost. U. S. Futures pointing to moderate declines. Euro also steadies as Yanis Varoufakis resigning as finance minister. Rating the toolbox. The shanghai composite closes in the green after beijing steps in with unprecedented measures to tell me market volatility. Thus its another erratic session. Investors get the first chance to react to mega merger between humana. The negotiations could go either way u. S. Secretary of state john kerry said a deal could be struck this week as talks in vienna go down to the wire. Welcome to Worldwide Exchange. Everyone, and the u. S. Markets are back on line today after a holidayshortened week last week. We saw u. S. Markets down 1 . Looking this morning, initially they were down 200 points. The dow jones off by 130 points. Weve been debating this around the desk how much contagion are we seeing from that huge no vote . I guess its really limited . Yes, votes in just absolute terms paring off u. S. Futures. Its kind of a similar reaction to last monday when we got the announcement over the weekend that we had a referendum vote. Initially there was chaos in asian markets. This is a little bit surprising because says that resoundingly surprising victory in greece. Yes and no we were always know even if we get a no vote that we wouldnt have much clarity come monday morning. We always knew that a no vote wouldnt automatically see a grexit. We always know that a no vote wouldnt automatically mean that well see a new deal so that will be hammered out over the next couple of trades days. So, more uncertainty for the facts. Lets get back to the futures. We want to show you that the s p 500 is seen down only 15 points. The dow jones set to drop by 134. And the nasdaq set to drop by 35 points. This coming off a holiday shortened week. This week weve got the fed to watch out for. Meantime european markets are looking pretty red. The ftse 100 is off by. 5 . The german index off by 1 . And weve got the periphery. In the asian trading session we saw a little bit of risk move for the asx. And the yen strengthened quite a bit against the euro. But the hong kongs hang seng once again after another volatile session responding to the new array of measures that came out of the pboc. China was up and then dipped into the red. And volatility is crazy. Lets move back to the european markets. I just want to mention the euro. Clearly yesterday was a Big Development in the greece euro. We did see decline losses. We pared those losses its indicative of that point dare lynn carolyn and i just making. Its down half a percent. But it has recover some of the ground it lost late last night sand early this morning. Lets look at the bond market because that was also planned in the currency playing a role in the currency space. Weve seen the safe havens like germany and u. S. Bond buying. 2. 30 in the u. S. The likes the portugal italy and spain moving in the opposite direction. Portugal has just crossed over 3 . Once again lets bear in mind whenever people thinking its going to be contagion or not. 2. 3 here almost the same as the u. S. 2. 3. And a far cry from greece which is around 17 this morning. Lets have a look at that right now. There we go 17. 25 on the greek tenyear and the twoyear at 42 . Clearly, if greece has to raise money on its own without the support, it will have to pay a huge amount for it. Thats why despite this vote they hope they can come to some sort of arrangement with creditors. The latest developments in greece, Yanis Varoufakis has resigned as his position as finance minister. In a statement the left wing politician says its absence could help the government eventually reach an agreement with european policymakers in true varoufakis style he adds that he is wearing the credit tour creditors loathes with pride. Julia, many just waking up to this, what exactly do they need to know about this this morning . Reporter well, if theyve just woken you have a resounding victory to the no vote. But to the greeks and the greek government, 61 for the no vote. Then fast forward to this morning, a resignation announcement, as you just point out by Yanis Varoufakis someone who has created a great deal of tension and various standoffs in europe. He allude edd in his statement, it goes way back to february he was trying to sign a deal during an extension with Alexis Tsipras that wouldnt let him. That was my understanding. So that leads us to question whether theres going to be a more moderate. Its going to let us know would men in the frame euclid tsakalotos following along the lines of Yanis Varoufakis. We have to wait and see, i think theres a belief in the markets that theres going to be some change. And Alexis Tsipras giving the announcement he made last night, i just want to point out, a couple of newspapers very quickly here in the presence here with the support of the government, i dont think you need a headline on that one. A shock for brussels. And also very quickly here, ta nea saying reform or grexit . Really saying is there hope hes looking in the bottom of a ballot box and trying to find it. A resounding victory for Alexis Tsipras in the no vote but what does it mean for a deal and can they implement . Wilfred, back to you. Julia, thank you. Yanis varoufakis said the euro despite here the eagles Song Hotel California you can check out anytime but you can never leave. Get in touch with us on twitter at cnbc. Com. Let us know some of the famous quotes of the former finance minister. We have questions now. Why . Because. This is all the things if i owed you a thousand euros, would you rather have cash or a greek account . The cash. Already youre saying that the money in a greek bank account isnt worth the same in a euro or german account . And theres a chance that well have a change this weekend and things will be smoothed. But now theyre not going to have that. I think youre making important points but lets weigh what the ecb says because ultimately theyre the ones that decide. Also they keefe the ela, the emergency liquidity assistance in place, they actually thinks that the banks are solvent in the eurozone. From what we heard from the ubs, theyre saying that the key trigger is if they have to issue their own currency. That would be their way of making payments they need to make. Sort of were halfway there. You know their money, in their banks, is not worth the same as the euro in germany . Exactly. But before this actually happens we need to see upheld currency being opposed or used. And we need to see ious being upheld. Its happened in the u. S. And other places. And as in the United States of america, no. Capitalism is being cemented now. That decision has been cemented. And its taken seven years. And i think theres been you know weve all been saying this morning, we know grexit and were saying this is a big issue. Well does it automatically mean exit . No, those capital controls they exit those pretty quickly. Lets get your perspective as well. What do you think is the biggest threat to markets at the moment . Thats what weve been asking out there the show china or grexit or Something Else . Lets have a look at some of the tweets weve been having. Sultan says neither. Greece and china will both come out stronger fun want to join the attention, join the conversation cnbc. And a blow for brussels scrambling to put together an emergency summit. Angela merkel and Francoise Hollande hoping for new talks. Jeffs in brussels. I think, carolyn, it can only be good news as far as the eurozone leadership is concerned. Who is becoming frustrated with what theyve seen as a difficult negotiating approach from the greek finance minister. Of course to a certain extent he has been removed or taken out of that process anyway but we know he was considered something of an irritant to the leadership in this flower language at time talking about the institutions. It doesnt go down particularly well. Having him exit i think its perceived as a more positive note, when it comes to the process of restarting talks with the eurozone. And, of course greece. Its very interesting that we have Angela Merkel going to paris, of course of course Francois Hollande for the french. Very keen on getting some form of deal and perhaps taking a line from the germans here out there here. Important that Angela Merkel and Francois Hollande can speak with the same voice. Perhaps its worth me mentioning that weve had confirmation that there will be a 1 00 cet time, Euro Group Meeting of finance ministers. One imagines that wouldnt have been called without there some indication of a fresh set of proposals scheduled from the greeks at some stage. And that is meant to roll into a full Leaders Summit here in brussels. Back to you. Jeff thank you so much. For that. Still to come here on Worldwide Exchange say cheese can the future of security involve a selfie . Weve got the details on that coming up. [ male announcer ] we know theyre out there. You cant always see them. But its our job to find them. The answers. The solutions. The innovations. All waiting to help us build Something Better. Something more amazing. A safer, cleaner brighter future. At boeing, thats what building Something Better is all about. Welcome back. Lets do headlines. U. S. Markets point lower in the wake of the greek referendum. But the resignation of finance minister Yanis Varoufakis offers hopes. Paypal ceos say on the hunt for drive growth. And secretary of state john kerry says a deal on tehrans Nuclear Program can be struck if hard choices are made. And weve been seeing a lot of governments weighing in on the no vote in greece overnight. And the kremlin has also weighed in. They hope that greece reaches a deal with creditors as as soon as as possible. And the Financial Health is for athens to decide. That is according to a kremlin spokesman being voted by reuters. And our Research Teams at the worlds leading Financial Institutions giving reaction. Barclays saying it can be avoided. The bank saying Market Reaction is likely to focus on price action in spreads. And also recommending that fx investors say short versus the dollar. And dont expect any liquidity relief from the ecb. Thats according to analysts the goldmans that dont see the cap being raised anytime soon. The team also note its that ending controls will take a long time given that its taken two years. The rbc says initial reaction may fade as the day goes on depending on political developments. Saying it will be impossible to strike a deal joining us now is adam cole. We accountant to show the viewers what the euro is doing here. At one point it fell back low the 1. 10 handle. Exactly what it did a week ago when the referendum was announced. Now its back towards the 1. 11 level. Wire we seeing a reaction in the dollar . What does that signify . I think its two developments, really one is the resignation of varoufakis who was seen as personally a large obstacle to progress on reaching a compromise. And domestically less widely reported, the resignation of the leader of new democracy which hopefully will leave more room for compromise. And it has upset the no vote itself. And markets are much where they were friday. Clearly the next two or three days is going to be critically important on which direction we go from here. At the moment hope is still alive that a compromise can be reached. Jpmorgan saying overnight that their best Case Scenario is now a grexit. Thats not your view adam . Its not, no. Clearly the probability has increased. If you look at estimates of that we think its probably somewhere around 35 to 40 probability, almost double where it was last week. Id really say thats not the scenario. Much will depend on the ecbs response in the next day or two. But i would say the probability has increased but i still say its less than 50 . Adam, as we move ahead for the next week or so is the euro more likely to respond to the greece impact or the headlines . Its hard to get away from the headlines for the next two or three days. Particularly so weve got a fairly quiet week for the u. S. Week with the payroll behind us. Its where we are for the euro and general risk capital for that matter, trading off the headlines as they come off. And one perception that the next two or three days will be critical is quite right. Adam just briefly, are you still say buyer of the yen and the swiss franc here . Yes, we still see evidence generally from risk capital, unless we get big market shocks. I think if we were to get another rise those two currencies go back to their traditional status of safe havens. Thank you so much for your time. Adam cole head of currency strategy at rbc capital markets. Nuclear talks, one day to go until another deadline could get a lastminute deal. Were live with the latest in tehran after the break. Welcome back. The latest on the greece story. Eurozone finance ministers expect new proposals from greece on tuesday. Thats coming from a euro group statement. Of course, this resounding vote against existing proposals doesnt necessarily mean no deal will be reached. Negotiations due to start up again it seems. That is a very short statement, that is theyre stage to expect new proposals from them. So ball is in your court. Moving on both sides of the Iranian Nuclear talks, differences still remain ahead of toss nominal deadline for agreement. Irans foreign minister says quote, nothing is clear. Secretary of state john kerry thinks a deal on tehrans Nuclear Program can still be done this week. At this point, this negotiation could go either way. If hard choices get made in the next couple of days and made quickly, we could get an agreement this week. But if they are not made, we will not. And lets get out to ali arouzi nbc news chief in iran. Reporter with the tomorrow deadline fast approaching its still unclear whether the two sides will bridge their gaps. Even though a positive assessment is with the finance minister saying that the two sides have never been closer to a deal. And then another saying the deal is not close. John kerry saying nothing has been agreed on yet. And if nothing is made the delegation is willing to return without nothing in hand. And secretary of state john kerry saying saying that the iranians are incorporate transigent transigent. Still the sticking points are absent around military and undisclosed sides. What sort of sanctions will be lifted and by whom. And also iran passing that on the initiative. They only have a little more than two hours to resolve them. But theyre pushing very hard to get this deal on its going down to the wire. But both sides have said that this time its not going to go past the wire. They have everything to hope for by tomorrows deadline. Meantime u. S. Investors get their first chance to react to aetna striking a deal. Aetna will pay 230 a share. 21 treatment to humanas price on thursday. And the aneta with the trading with trading human humana off. And mark bertel leni will be here on squawk box. And pay pal telling the Financial Times as paypal gets set to split from ebay later this morning. It could be 40 billion for two thirds of ebays market cap. Still to come on the show chinese regulators as they dig into their toolbox to firm up faltering markets we go live to see if the newest measures will dot trick. Well have a look at u. S. Futures that have some pared losses were pointing to a decline to about 125 points on the dow. All the details coming up, next. The staff at this beautiful resort. Will stay with you forever. Especially if you dont leave. You got it booking right. Booking. Com booking. Yeah welcome to welcome wx. Im carolin roth. And im wilfred frost. U. S. Futures pointing to moderate declines. The euro also setting up for Yanis Varoufakis resigns as finance minister offering hopes of easier negotiations between athens and its creditors. Raiding the toolbox, beijing steps in with one precedented measures to stem volt tim. Thus, another erratic session with most stocks giving up huge gains. Investors getting a chance to react to the mega merger between aneta and humana. Usa wheres seema when you need her. Americas womens soccer team taking home the world cup trophy after thrashing the former winners japan five goals to two. And if youre just tuning in, thank you so much for joining us here on the show. What a weekend you guys have had. Youve had the fourth of july celebrations. The celebrations over the win of the womens soccer team obviously. So congratulations on that. But, of course we also have a resounding no vote in greeces referendum overnight. I want to show you u. S. Futures. Theyre down but theyre off a session. The dow jones seen off by 122 points at one point. It was seen out by 200 points the nasdaq 200 points. And the s p 500 expected to doll ed toto fall by 13 points. And last week the major indices were down roughly one percentage point each. Were seeing quite a bit of selling but again that selling seems to be manageable at this point. The dax is off by less than 1 . Ftse off by less than 0. 5 . And the we want to show you what the euro dollar is doing on a session. Last night when we got the first indication that this would be a resounding no vote we saw the euro dollar far below the 1. 10 handle. Now were back approaching 1. 11 once again. Ke did rise after Yanis Varoufakis, the finance minister of greece resigned. Chinese volatility continues. The shanghai after regulators announce they had would limit the number of ipos. The shanghai market being up 7 and then in the red as well. Lets get to eunice live in beijing with the latest. Reporter thanks so much wilfred. Well after a weeks long correction, the government authorities here just came in guns blazing with heavy ammunition to try to shore up Investor Confidence. Over the weekend, we saw the leaders here including the premier himself, presiding over meetings which resulted in these dramatic moves. Now, we saw today, the brokerages coming in, and agreeing to invest in Stabilization Fund. A 19 billion Stabilization Fund. Also the ipos have been suspended. And the Chinese Central Bank has agreed to provide more liquidity assistance to a governmentbacked Margin Finance Company which would eventually result in more money in the hands of investors so they could buy more stocks. Now, the talk and speculation has been that the government wanted to put in these measures because of their concern about potential social fallout, since a lot of the investors are new in experience. And many of them have barroworrowed on margin. Weve seen a big pop on the shanghai about 8 and fell back and ended by 2 . In the long term a lot of investors are concerned about the impact of these measures. In fact a lot of talk on social media, as well as on the market was about the how about these measures might not be enough. And the government might have to step in even further in order to rebuild confidence. Guys. Eunice thank you for that. We want to hear from our viewers on this. What do you think is the bigger threat to Global Markets . China other a grexit . If eye want to join the conversation talk to us worldwide cnbc. And we had a few tweets during the show. Yeah. One is its neither. Its italy. Maybe thats a really good point. Because italy is the third biggest economy in the eurozone. Maybe its not much of a risk anymore. Michael writes in that would be china with the second largest economy, versus 1. 8 of the gdp. And its not really a fundamental economy issue yet. I actually think it might well become one. But whereas, greece is just going to stumble with the actual economy, not just markets. And its thus far focused on the asia stock market. Its true. We have some weakening. And the german carmakers. Speaking of germany, weve got interesting comments coming from the German Government spokesman who says they or he respects the result of the greek referendum. He said talks remains open but at the same time the spokesperson points out that the position for the talks with greece are not met just yet. And were wait for proposals from the greek side. They say that greece is part of the eurozone and the government must add to that. This remains the case. And now its up to greece to remain a member. All right. Lets take a look at todays other top stories. Mastercard is testing a facial recognition app to verify online purchases. Users can hold their phones up as if take a selfie to approve transactions. Mastercard said its interested in face recognition as an alternative. It asks users to prove that they are indeed human. I like that. I do too. And get to take selfies as well. And Arnold Schwarzenegger and magic mike xxl werent enough to lure people to the movies. Movies. Jurassic world held on to the top spot. And maybe to watch this hail to the champs. The uggs. S. Womens soccer team beat the japan team 52 with two goals alone in the first five minutes. Its the first world cup title since 1999. And third overall. Congratulations. Indeed congratulations to them. What an epic. And a hat trick in 16 minutes. Pretty amazing performance. Still to come on the show we talk consolidation after aneta becomes the first to make a move for are humana. Well talk that and more after a short break. The fed trade commission has signed out of and the dollar tree buy. As part of the ftcs approval it they will sell about 330 stores to private equities. And dollar tree traded off. 033 . Paypal will sell off as it gets set to split from ebay later this month. Analysts say the valuation to be 40 billion. And u. S. Investors will get the first chance to react to aetnas deal to buy rival humana and american antitrust regulators. Lets get to landon dowdy for the details. Thats right. The news breaking early friday morning. The u. S. Markets were off for the july 4 weekend. Aetna to buy humana paying 230 a share. The deal is expected to close in the second half of next year. And add to earnings in 2017. And the sale has been expected since may when it was first reported that aetna and cigna were both interested. And after several quarters of disappointing earnings. Combined it would be the second largest economy with 30 million members. Operating revenue is expected to be 130 billion this year with more than half of that coming from governmentsponsored programs such as medicare and medicaid. And it will affect competition in each line of insurance, Medicare Medicaid individual and commercial. Humana are in nine state finance they were to fail because of antitrust concerns it would bay a 1 billion breakup fee to humana. And it has offered to buy cigna. Reports say united healths could be eyeing either cigna or aetna. And health care had been waiting for the supreme courts ruling on the obamacare last month. And they are key to bringing in new customers and the move to uncertainty over potential acquisitions. Checking shares its down 5 . And the germanchairman and ceo will be on squawk box. U. S. Headlines point to the lower open in the wake of a greek referendum. That in the wake of the resignation of Yanis Varoufakis. Paypal theyre share on the hunt for breathe. And secretary of state john kerry says the Irans Nuclear program deal could be struck this week if harder choices are made. Worldwide exchange is back in two. Welcome back. Lets have a look at european markets which has significantly pared losses out there todays trade. The broader stock 600 now down 0. 55 . You can see how the german is down 0. 8 . Given the surprise of this referendum result and what it might possibly imply for greece going forward, with the reaction by the markets relatively muted. And the latest developments on greece. Yanis varoufakis has resigned from his position as finance minister. In a statement the outspoken politician said his had absence could help the government eventually reach an agreement with european policymakers. In true varoufakis style he announced that he is wearing the creditors loathing with pride. He and the government must react that this remains the case. The spokesman announced that the conditions are not right to start rerenegotiating. Lets get to julia out in athens. Were still in limbo. What happens now . Reporter what were wait for in the immediacy here in athens is announcement of a new finance minister. I think thats interesting. Which way does Alexis Tsipras go . Does he go for a moderate for someone more stringent. The favorite here is euclid saakatsakalotos tsakalotos. Seen very stringent on the lines of his government. Weve talked to them this morning, and he said the red lines remain with euclid tsakalotos and tsipras pushing the negotiations going forward. What we have to see what will the greek government come up with will they dig some ground to get a deal . And we have to see what happens when the leaders meet tomorrow. Theres not time organize a fed bailout deal. Julia, youre mentioning the only finance minister replacements there. Is it key now, this meeting that weve got between hollande and merkel and indeed mr. Tsipras. Surely that the three of them could either thrash out a deal or not . Reporter well, theres more voices in the room. But i think having those two on board. And the same view is going to be critical. Francois hollande is more moderate and Angela Merkel saying we want to keep it in the eurozone but not at any cost. And tsipras has to remember where he has been and it hasnt gotten him where he wanted to go. Despite the referendum result that were got in the early morning, a resounding victory for the no vote 60 there is still questions marks so far what truly the greek people are asking for here. And then saying hes never going to be able to push back on austerity that he has promised here and thats his mandate. Julia, in the meantime, while we still dont have a deal the banks are still very much closed. And the economy is suffering, its a cashbased economy. At what point would the economy have to resort to ious for example . Reporter well its suggesting that it could go back to ious. And then he denied that last night. According to the greek media society, theyre saying thats part of the reason he vee signresigned. Not to make the negotiations more easy but Alexis Tsipras was angry with him and that people were queueing up at the atms. We so the situation is very difficult. I dont want to create any further alarm. But i think whats clear, a deal needs to be done and asap. Julia, thank you for that. Lets take a look at how greek press has reacted to the no vote. Saying that the nation is in danger. The second newspaper, saying leaders seek a deal in 48 hours. Well see what will actually happen. Greases democratic paper has gone with the line europe are you listening . But the front page features the president , and that really needs no headline. Lets just expand on this a little bit more. I think that usual headline in that a deal that should be sought in 48 hours. I think a little bit of a mix, we got it wrong. Hes got an extraordinary resounding support from his people. Not just because with the election, hes got 60 of the vote, mr. Tsipras. But i wonder again its based on false promises. He said he could get a deal if he got a no vote, which he got, in 48 hours. I dont know its going to happen. Actually for the deal to be signed off, the German Parliament would have to come back and approve, the german finance minister going back into negotiations. That wont happen in 48 hours. I mean its a huge disaster. 7. And marketing reacting and paring losses. Even know varoufakis has resigned. Markets have recovered a huge huge amount. The dax only down 0. 7 . And its sort of a normal trading day. Look we were around 3 last week. So there will be downside. There can be concern over declines. The dax over ten days 5. 7 . Over 2 1 2 weeks if we take the little bit of a rally we had on the greeks itself down 2 1 2 weeks ago is down. This is Big Developments for european markets. Im not saying for the u. S. Markets. There it is. In the middle of that chart you see the rally we had 2 1 2 weeks ago. If you take that as well as the decline, that is extraordinary. Anyway, what does this mean for u. S. Futures . Well they are pointing to large low, but not as low. The nasdaq expected to ed toed to open down at 26 points. What else are we watching . Ism out at 10 00 a. M. Eastern. And earnings just one report today, plastics supplier a. Shulman. What to expect today joining us is the founding partner, michael good morning. All eyes on greece or not . Ill say this by the time u. S. Markets do open youll clearly see more than just Global Markets factor into the u. S. Deals. As youre talking about a rally backed deal and european equities, i think the u. S. Will be the same way. Keep an eye on 2044 in the s p. Five years. For me at least, stability around that price is really up to u. S. Markets. Again for those reasons, i think weakness will create new buying in the u. S. I think well be just fine. Michael, i really want to know does this in any way, shape or form change the feds time line for when its going to hike rates before its time . Actually for the first time were starting to see inklings of growth. September is not out of the picture but more the focus for december if you look at the shortterm yield, rising yield goods for a good economy. Lets talk about the movement in the last couple of weeks. So from here now that we have this vote behind us does the dollar side that were paring coming back into the fore, or still being led by issues out of greece . Clearly, its not the dollar side right now. Its not. And thats why youre starting to see stability here around 109 up to 113. I think the weakness inherent more weakness out of europe is just not go together happen. The dollar showing at this level below 1. 13. Today is the end of an era. Today is the last day for trading on the operations in chicago. And the new york ending a nearly 170year tradition. Open outcry. The option hits will remain open for now. Michael, how do you feel about this . How significant is this . Well i mean the markets have pretty much had factored in electronic trading as we got through the new millennium. Right now, it is eyesis a sad day, historically speaking. Right now, i think the commodities themselves are probably the biggest difference. For the near term its been hard to embrace because its been so vital to the city right now, its been the back bone of Global Markets. Michael, president of bruinhill partners. Its a pretty of a shame. Its been quite fun. Ill have two coffees, little bit of milk sugar, thanks very much. Thats not how it works. Thats all weve got time for at Worldwide Exchange. However youre trading, have a great day. Well be back sometime tomorrow. You cant always see them. But its our job to find them. The answers. The solutions. The innovations. All waiting to help us build Something Better. Something more amazing. A safer, cleaner brighter future. At boeing, thats what building Something Better is all about. Good morning. The greeks with a big fat greek no. In a major referendum on reform breaking overnight. The countrys finance minister quits amid what he calls creditor loathing. The Global Markets as you can imagine are on edge. Stocks trading lower. U. S. Equities pointing to a low just over 100 point. In Corporate News aetna is buying small rival humana. When i say smaller, its still 37 billion in cash. And the largest deal ever in the insurance industry. And, thank god, a big deal by the u. S. Making the negative news cycle over the weekend. The womens soccer team taking home the world cup, defeating japan handily, right from the getgo 52. Monday, july 6th 2015. And squawk box begins right now. Announcer live from new york where business never sleeps, this is squawk box. Good morning, everybody. Welcome to squawk box. Here on cnbc. Im becky quick along with joe kernin. Andrew is off today. If youre just waking up this morning lets get you up to speed on the latest with the greeks. Voting no. The countrys outspoken finance minister has resigned Yanis Varoufakis had campaigned for the logo of
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