Of the office we begin with a tense situation in greece. The 10year note is sitting around 15 and have soared 60 this year. A referendum is set for sunday with greeces Prime Minister urging a no vote. Lets go live to athens chief International CorrespondentMichelle Carusocabrera joins us there with i believe also the president of Athens Chamber of xlers commerce . Yeah, the chairman of the Hellenic Chamber of commerce, good to have you here. Excuse the music, there is is a small communist rally going on. Shall i call you camomrade . Michelle, this is a country of extremes. In the first century, existential comemunism has died 20, 25 years ago but here in greece it is rampant. You can hear them chanting. There you are. This is greece. We know that this crowd will vote no in sundays referendum they hate the euro they hate everything about euro et cetera. How do you think the vote will go on sunday . Im cautiously optimistic that we dont have a strong yes vote. Vast majority of greek people this has shown in every poll is in favor of the euro. I know the question which has been set on the ballot paper on sunday for this charade referendum is not yes or no to the euro but behind everyones mind, it is yes or no to the euro and it will be a strong vote for yes which is going to be registered. Listening to the graek government officials on television today, they are telling the greek people that the banks will reopen after the vote. I find that very hard to believe. Is that your understanding . Absolutely not. Fully one who knows basic elements of when youve got capital controls being applied to a particular economy to a Banking System it has never been valid for one week. I think it is absolutely impossible unless there is a deal, a deal that passes all the parliaments of the eurozone. A deal that is struck here in greece, signed and sealed and then the ecb has to send funds because at the moment the only available funds in the greek Banking System does not exceed 600 million euros. So you can imagine that when banks do open the credibility factor has to be at an acceptable level so that we dont have exactly the same phenomenon of greeks rushing to it the banks to withdraw their remaining deposits. Its absolutely impossible for tuesday for banks to be open. I personally envision if everything goes smoothly and we have a strong registration of is around the 20th of july. Wow. That could really be devastating for the economy. Thank you so much for joining us ahead of this key vote thats coming up on sunday. Guys back to you. The other big debt threat out there is puerto rico. What a week the governor saying the island cannot pay its debts. Puerto rican bonds getting hit very hard this week. Cnbc contributor alexandra labenthal, is the damage already done to my bond funds if i own ones that have puerto rican debt in them or could more trouble be on the horizon . Well its been a slow erosion for quite some time. This last week was a bad week. In fact i just took a look at one of the funds, oppenheimer new york, which holds a number of puerto rico bonds and if we have a moment we should talk about the oppenheimer funds, it was down 2. 6 or not week whereas the muni market in gel was flat general in flat. The week ended okay. The electric made its payment. Gos made their payment. But there is still a lot to come and theres still the bond funds and the hedge funds and Insurance Companies as well that are going to have to be sitting down with the government and working out some type of deal. You mentioned oppenheimer. Weve had the Portfolio Manager or managers on from that company. They have a strong point of view on puerto rican bonds. They believe in their position sincerity. What do you think . Well what i wanted to say and im sorry i missed their interview they have a very very large percentage of puerto rico bonds in their funds. They have always been a very highincome fund group. And theyve come out with a very strong stance about defending those the credit of the puerto rico bonds. So if people hold op himpenheimer funds, they should certainly be taking a look at how those funds perform. Look, as somebody whos spent her life and certainly her family in the Municipal Bond world, do i believe very strongly in an issuers willingness to pay the validity of a general Obligation Bond as many first in line in the capital structure. But certainly whether its puerto rico or detroit over the last year has shown us that when you do get to the bottom of the barrel and the money isnt there, there does have to be the realization that something has to be done. Thank you very much. Think one of the key points that you make there expressly and implicitly is that if youre a bond fund owner, no matter what you need to know what is in your fund, whether it is a bond fund or a stock fund. You need to know what it owns. Yeah. If i can very quickly say, in any bond fund or any mutual fund, look at your Top Ten Holdings and if you have more than one fund you may find you actually have the same holdings. The same things. Alexandra, great point. Have a great weekend. Right now the baker hughes weekly writden out a day early because of the fourth of july holiday. A gain of u. S. Active oil rigs. A again the caveat here Oil Production still remains near record high levels but still a gain of 12 oil rigs to 640. This represents the first time that the baker hughes weekly u. S. Oil rig recount has gone up since december of last year. Well watch for any impact on crude which will close in about 90 minutes from now. Currently sitting at 57. 27 a gain of. 5 so far. Another crazy trading day overnight in china. Shanghai and shenzhen stock markets plunging 4 . Its been a volatile week. But take a look at this on monday and tuesday we saw 10 swings intraday in the shenzhen. Wednesday had an 8 swing in trading. Last night had a 7 swing. Just its incredible. Lot of people liken the chinese stock market to gambling in macao, ty. It really is turning into a bit of a gamble at the employment. Dont know what youll get on a day to day basis. We talk about little moves in the vix. Those are big moves there, folks. Federal regulators today holding safety hearings into recalls announced by Fiat Chrysler. Phil lebeau is in chicago following that for us. Were monitoring that hearing in washington, d. C. Essentially it comes down to the national Highway Traffic Safety Administration holding a rare public hearing to ask take yootFiat Chrysler to explain how it has handled or they would say at nit nhtsa, mishandled a number of recalls. According to nhtsa, they were either slow in communicating people who were involved in recalls or they were delayed or hadnt done the repairs quick enough. Millions of dollars in fines are possible. There is the outside chance nhtsa could eventually move to have Fiat Chrysler refund the cost of those vehicles to buyers, though most believe thats unlikely to happen. Shares of Fiat Chrysler since its ipo last fall. A lot of this is because of the euro and the benefit there in terms of manufacturing some of their vehicles specifically jeep vehicles in europe. Those vehicles are sold here in the u. S. Some of this is also because is celebrating gains in the auto industry. The hottest brand right now is Fiat Chryslers jeep brand. Sales here in the u. S. Up 20 . Folks, its growing five times faster than the market overall in terms of sales and the jeep brand is expanding globally. Well continue watching this hearing going on in washington. It is coming at an interesting time because that jeep brand, redhot. There anticipate not a hotter brand out there right now in terms of the mass markets. Jeep drivers look redhot, dont they . They like driving around with the top down in the summer. Stay with us phil. Lets get more insight into Fiat Chrysler right now. The former president of chrysler, bob lutz former general chairman of General Motors. Bob, you should know a thing or two about this. Is there an element of Fiat Chrysler being singled out . Well i dont think theyre being singled out but it has been interesting to observe that over the last few years whenever theres a nhtsa investigation or nhtsa inquiry, such in jeep rearend collisions and everything the company has taken a very aggressive, somewhat denying stance and has been pretty feisty which to those of us in the industry always seemed like you like to see somebody push back if they really dont think theres a problem with their vehicles. But i think every Automobile Company has learned over the years, you cant fight city hall. Even if youre right. Youre going to be wrong. And, frankly, theyre going to get you. I think there is a generalized feeling that chrysler is somewhat reluctant and defensive. It could be wrong, but i think thats the impression that theyve created and i think this is payback time. Bob . Sorry to interrupt you there. I have a quick question. In all your years in this industry have you ever seen a situation like this where you have Fiat Chrysler with one of the hottest brands going right now with jeep and another brand thats doing well with ram trucks growing sales as quickly as theyre doing that and yet when you look at the reliability ratings, whether its consumer reports, whether its j. D. Power, they are consistently at the bottom. Im not talking about one time. Im talking about consistently. Yet its as if the buyer is going out there dont put that together with the possibility of buying a particular vehicle. Sills tell you what it is. If you look at the absolute scores, the worst performing brand today in the surveys would have won the survey would have been the triumphant winner would have beaten lexus and toyota seven or eight years ago. So the overall quality level has gone gotten so high that you can still split hairs and say, well, somebodys at the top and somebodys in the middle and somebodys at the bottom. But the overall quality is so high now that nobody perceives the difference. Frankly, the public has wised up and has figured out that these quality ratings just are irrelevant to them anymore. Thats basically whats happened. Thank you, great discussion bob lutz. Airline stocks down hard this week. The department of justice investigating carriers over collusion saying carriers are intentionally growing capacity at a slow pace to keep airfares high. Gordon bethune, a cnbc contributor and one of my favorite guests because every time youre on you say something, doggone it im going to ask you a simple question. Are todays Airline Executives dumb enough to collude or are they just being smart in the ways they are running their businesses and manage pentagon capacity . Thats it tyler. Theyre smart people. The smart people usually come up with the same correct answer two and two is four. Thats not collusion. Thats just making the correct answer to the issue of how many seats do we want to try to sell. You shouldnt try to sell more than you can sell. Thats right. It seems to me that in the past there was a race to the bottom with airfares and a race to the bottom in terms of having more seats flying between new york and cleveland or cleveland and chicago and they couldnt fill them so they were running their planes at a lot. Its basic fath. Math. Look how many people lost their pensions employees lost their jobs. Those guys are gone. Youre only as good as your dumbest competitor. Those guys are gone and weve got about four Mainstream Airlines all run by very intelligent people and theyre making a business and paying their employees. I think thats great. We hear a lot listen. I dont know what kind of evidence the department of justice has at all. I dont think any of us it truly do at this point. But be that as it may, the point is repeatedly made that 80 of the Airline Traffic in this country is run through four major carriers. But thats not so unlike a lot of other businesses in this country, whether its cell phone providers or my cable opportunities in my local town. Absolutely tyler. Those four guys are headtohead in almost every market. Theres lots of competition between Sarasota Florida and spokane, washington. Everybody will get you there so its very price competitive. But theyre not trying to buy market share, because you cant do it because your competitor is just going to match it and youll both lose money. Thats whats going on. Bethune in matheson in vigorous agreement here thanks tyler. Whats that saying . Great minds think alike. Something like that . Birds of a feather . At least one great mind in that conversation. Bp announcing a multibillion Dollar Settlement to try to end lawsuits over the Gulf Oil Spill disaster five years ago. Is bp now free and clear . Also another Big Health Care deal to. Sectors been soaring to far this year. Speculation, m a, you name it. All ahead in the second half. Payments company xoom corp. For 9. 9 97 million. It plans to keep all of paypals current customers. Tesla reported a 52 increase from the year prior. Centene set to buy healthnet. Health net soaring, centene hitting record highs earlier but paring those gains. People in tennessee had to flee their homes after a Train Derailment near knoxville. It was carrying flammable and poisonous liquids. No one killed by seven sheriffs deputies were sent to the hospital after they inhaled some fumes. Bp agreeing to a multi multibillion Dollar Settlement after that big oil spill. This is is a record setter on a couple of different fronts. It is the largest environmental settlement innocent history of the United States. Its also the largest settlement of any kind in terms of a civil settlement with one entity by the department of justice in the department of justices history. Heres how it all breaks down in terms of who gets what. The grand total here 18. 7 billion. Louisiana gets 6. 8 billion. You see all the different states there getting a large chunk of money. Florida, 3. 3 billion, on down to mississippi at 2. 2 billion. All of the gulf states benefiting here. Floridas attorney general said the goal here in coming up with this deal was ultimately not to have protracted litigation that goes on and on and on. Take a listen. We think this is going to help our state recover and move on. The last thing that we wanted was to be tied up again in a black hole of litigation that could have gone 15 20 30 years that perhaps our grandchdren would have seen the results of b certa aeein with that be sentiment. The statement now from bps chairman it resolves t compys lgest remaining legal exposures, provides clity costsndreates certainty of payment for all partiesinlved mandy and tyler, the money here is going to go to a variety of different funds, environmental cleanup, general state funds, also to help students in the area. A lot of different beneficiaries of this money which will be paid out over a long period of time. This deal will still need to be approved by a federal judge. Thank you very much eamon javers reporting from washington. Another big deal in health care. The sector has been a highflyer this year up 10 well outperforming the broader markets. Will that rally continue for the rest of the week . Weve got your second half playbook, folks. Coming up right after this break. Welcome black to power lunch. Shares of car rental giant hertz are hitting their worst levels today. Ryan air the european budget carrier, says it will take legal action against hertz after the company term narted its car rental supply agreement with that carrier citing a breach of contract. Both sides are now responding to this whole situation. Remember tyler, hertz used to be a 31 stock just last summer. It is now around 17, 18 a share. And activist investors carl icahn and Janus Partners among the two biggest holders of hertz shares. Dow and s p 500 pretty much gone nowhere in the first half. Not so the nasdaq. But one area of the market that does continue to be on fire health care. The sector is up about 9 so far this year. Will this rally continue . Bertha coombs here with your second half playbook in health care. Were seeing merger Musical Chairs throughout health care. In the second half the big five insurers all at or near alltime highs could finally figure out whos left standing. The Big Questions how they pair up, how long it will take how expensive and leveraged will the deals be and will regulators okay these big deals . By revenues United Health is the giant with 143 billion annually. Anthem is pursuing cigna. Combined Company Revenues would be 116 billion. As would a potential aetna humana combo. Thats much bigger than their nearest competitors. Hospitals are also near alltime highs, and big gainers this year. Analysts raise estimates for the sector after last Weeks Supreme CourtObamacare Ruling but this fall providers face a big tech challenge with the switchover to a complex new billing code system. Providers are basing for payment glitches and delays. It is a big test for the electronic records firms. Theyve vowed to compensate payments for doctor glitches. Those are the kind of tieups we could see next in health care more firms combining in different sectors. Back to you. Bertha coombs. Thank you. Rising mortgage rates, soaring rents, fed rate hikes ahead. Whats ahead for housing in the second half. Plus todays powerhouse is home to two fortune 500 companies. It is the nations 54th largest city. And there is no individual income tax here. Can you name that city . And that unlimited 2 cash back from spark means thousands of dollars each year going back into