Secondlargest provider for 37 billion. Welcome to the pulse live from london. Manus lets give you some of the breaking eurozone data. Francine it is pretty much as expected. June services pmi data rising. It is exactly what we were expecting. The focus now on greece. With just two days to go until a referendum on european bailout proposals, a bloomberg poll shows that the country is decided divided right down the middle. Manus it shows 43 are set to follow Prime Minister Alexis Tsipras and vote no. 42. 5 will vote yes. This comes as the imf says the crisisridden country needs 60 billion euros of extra funds over the next three years to stabilize the economy. We are joined by Erik Schatzker in athens and hans in berlin. This poll shows it is too close to call. Obviously it also shows that the majority, four out of five, want to keep the euro, but do they understand that is not necessarily what they are voting for on sunday . Erik nothing is clear, manus, but the skies here in athens. The results of the referendum unclear. The question unclear. Ive been wondering, what is it that greeks are headed to the polls thinking on sunday . Do they think they are voting for a bailout offer . Are they voting in favor of austerity or against austerity . Are they voting in favor of eurozone membership or a willingness to grexit . Or, if they were really being practical, perhaps they would go to the polls on sunday morning and think to themselves, im voting to open the countrys banks on tuesday or possibly not to open the banks. That is quite radically what may or may not practically what may or may not happen depending on the results of sundays referendum. Francine the problem is that it seems the european institutions are saying one thing and the greek government are saying something different. Im not saying it is a false statement, but it is two visions. What are the expectations in athens about how the negotiations can restart . Erik youve hit the nail on the head as usual. It is because the greek government is promising things that it alone cant possibly deliver. Hans knows this well. The europeans arent going to let the greeks dictate the initiation of new talks over a bailout proposal unilaterally regardless of the outcome of this referendum. Yanis varoufakis the finance minister, a shores bloomberg and others that bailout negotiations will restart within 2448 hours. I heard the same thing from tsipras righthand man. How can these people say with certainty that that is going to happen when the decision isnt theirs . Manus that is a conundrum for europe. Lets cross to hans nichols in berlin. As erik was saying creditors are unlikely to allow greeks to dictate what is discussed. The imf, 60 billion is what they think greece is going to need to stabilize over the next three years, not grow. Hans that imf projection does include growth next year. No growth this year, but it does turn a contraction that may be happening now. The last offer that was on the table from the eu amounted to about 15 billion. It was bridge financing. That offer is no longer operative. Every finance minister that has been speaking to bloomberg has made it very clear. The old offer is no longer viable. Whatever happens next regardless of which way the referendum goes, whatever offer you have from creditors is going to be potentially less generous. They didnt finish their last program. There is a split between eu creditors and the imf. It is pretty much out in the open. The imf is signaling that there cant be another bailout package unless you read profile some of the debt. That gives an argument. You have seen Yanis Varoufakis try to coopt that argument. Clearly, the syriza party will be looking to the imf and citing that as evidence, that voters should head to the polls and vote no, strengthen their position, then they can have a debt restructuring. The imf has now given them the intellectual credence to make that argument to their voters. Francine thank you so much. They will be bringing us the news from on the ground throughout the day. That brings us to todays twitter question. Our markets ready for a possible no vote . We also have twp other tweeters in the studio. I think holder is also on twitter. Ogre shall meeting . Manus gentlemen, very welcome. Great to have you with us. Lets go to you, holger first of all. A no vote on sunday night, does that equate to grexit . Holger likely yes. There is nothing certain, but likely yes. The europeans are adults. No means no unless after the referendum, tsipras were to sign up to much harsher bailout terms than the ones rejected in the referendum. That is the only logical way in which after a referendum tsipras could still get the deal. Francine mark, how nervous are you about the referendum . When we look at what is happening on the streets of athens, it is unclear to me that the citizens understand that if you vote for no more austerity, you dont renegotiate. You dont go back to brussels the next day. Mark i hope the greek people understand that. My concern is that once the greeks are really split down the middle if there is a vote as close as the polls suggest, that is the worst of all possible scenarios. There is no clear democratic answer from the greek people. In that scenario, it is hard to see how anyone moves forward. Manus monday morning, it is going to come down to this. It comes down to the European Central bank. They are running out of euros in greece, on the island. That is the crunch issue. Is it . Holger that is the consequence of this. Greece does not have euros. If it does not vote yes, i dont see how more euros could be sent to greece. They would probably, within days or weeks, realize that no actually means no more euros. What really scares me is if we have an extremely narrow majority and at the same time 81 of greeks saying they want to keep the euro. If they realize banks are not reopened, there is no euro to pay your pension, what would happen then in greek politics . It will be extremely uncomfortable for Prime Minister tsipras. Francine the problem is that we understand by polls that 70 of people are for the euro, but there is no referendum on it. The only thing that we have is the yes or no to these austerity measures. Holger this is in legal terms a referendum that is highly questionable. It is not up to the standards of the european council. It is a question that is difficult to understand. In legal terms, this referendum is very weird. In political terms europe wont take no for an answer and would only get back to serious negotiations if tsipras ignores the no and signs up for tougher conditions, or if shortly after the no, there is a realization as to what they really voted on, which is the euro. Mark glimmer of optimism though. In the betting markets. Let brooks is close ladbrokes is close to 7030 for a yes vote. If what we show in the u. K. Elections, people not telling the truth about their voting intentions, i wonder if greece has an element of the same thing. People dont want to be seen caving into the troika, but they will vote no in the end. Manus if that is the case and it comes through with a yes vote, varoufakis threatened that he would cut off his arm, that he would stand in the parliament and help greece. Is that the end of tsipras, varoufakis, and a new negotiating team . You keep using the words, worse terms. Holger if there is a yes, it would probably mean almost immediate political change. Tsipras may or may not stay in power. It would certainly be somebody else, not mr. Varoufakis negotiating in brussels. Yes is something which would change the Economic Outlook for greece. All these calculations, how much growth could they have next year, would look much better. The financing need would be much smaller. As a result, europe could offer better terms. Francine if it is a yes vote. Because the problem, have the governments done on a false things . If you listen to mr. Tsipras or mr. Varoufakis, they say it will take two seconds to reopen the banks. Holger they just dont have euros. You can open the doors of the banks. They have a little euros, which will last them depending on demand a couple days. Francine are they solvent . Holger with a yes, they are. With a no, they are not. This is a matter of confidence. With a yes, money would flow back into the banks. You would not have to increase the ela after the first increase initially. A boost the confidence would change the Economic Outlook for greece. It would make it much easier. The no would make it much harder. Manus lets talk about the consequences for the markets in terms of the impact. The yes vote, maybe the silent yes. If it was yes and we go into new negotiations how do you think people are going to go home this weekend . Maybe with risk on the book . Do you agree mark . Mark you heard what the betting markets are saying. If i were a better, i would probably go with that. As a more serious analyst i would say this is a close call. Ordinary people should probably stay on the sidelines over this weekend. Mark we are talking about gambling. I think tsipras got his gamble wrong. I think his bat was that the markets were going to shock and that that would force the hand of the institutions of the creditors and lenders. The markets really dont care at the moment. It has been such a slow car crash. The contagion risk seems minimal. That doesnt mean that next week , you wont see something horrible happened. Francine do you remember that comedian turned politician in italy . He just said hes going to be in greece on sunday rooting for tsipras. What does this mean for the west . Holger it shows once again that the left is not able probably to win power in anywhere else but this greece case. This association with tsipras, why we have pictures of pensioners not getting their money, will not help him in italian votes. Francine thank you so much for now. Holger and mark gilbert both stay with us. Manus we will bring you live and continuous coverage of sundays week referendum greek referendum. You can watch greece in crisis on sunday, july 5, with our coverage continuing throughout the day. Full coverage from the team. What a great job theyve done in athens. Francine the u. S. Health care benefits giant aetna has agreed to by humana americas secondlargest provider for 37 billion. The transaction values humana at 23 above the price at the last close. The accusation the acquisition comes in a period with all the Biggest Health insurers looking at deals. Manus iran says it recognizes the u. N. s right to visit sensitive nuclear sites. However, tehran has ruled out extraordinary inspections. Diplomats are trying to reach an agreement before next weeks extended deadline. They say all parties are committed to finishing the process. Francine the bear market in china is deepening. With the shanghai composite suffering it see this its steepest threeweek decline since 1992. More than 2. 8 trillion dollars have been wiped off the market. This has prompted an investigation into possible market manipulation. The regulator has promised strict punishment for anyone at fault. Manus take a closer look at some of those markets movements. Mark those steps to boost equities being overshadowed that concern that they will keep liquidating in china. Regulators have made daily announcements since this bear market. The Chinese Securities Regulatory Commission said on thursday, it will investigate and strictly punish manipulation. The Outstanding Balance of margin loans on the shanghai composite index on the Shanghai Stock Exchange, dropped for a ninth consecutive day on thursday. That is the equivalent of 2. 8 billion dollars, not trillion. That is the longest stretch of declines since they began piling data. We have a surge in borrowing helping propel the gains in the 12 months through june 12. This is the headline. China stocks biggest threeweek slump since 1992. This is my favorite chart right now. 2. 8 trillion has been wiped off their value in the last three weeks. This chart shows the market capitalization of all major stock markets. Just to put it in perspective, the United States stock market is worth 24 trillion. In the last three weeks, moore has been wiped off the chinese stock market than the entire canada stock market is worth. The u. K. Stock market is worth 3. 7 trillion. That 2. 8 trillion is bigger than the value of the french stock market, the german stock market, the swiss stock market, the spanish stock market, the indian, and the australian. It is astonishing. For now, quoting bernard aw, the mood is verging on panic and it is extremely hard to calm a bear in a rage. Francine i wouldnt go near the bear. Lets get more reaction to that. Holger and mark gilbert both join us. This is something where we are seeing so much volatility. There is concern about possible manipulation. What does it mean for regulators and policymakers . Holger regulators will have to look into this. Im fairly lax about it. If need be, the banks can make sure with government direction that there will be as much investment as china government wants. Mark Global Market cap worldwide that is Something Like 80 from the lows in the crisis. It is a matter if the bubble eases off in china. Manus do you worry at all about contagion . Holger not in china very much. Francine mark . Mark now. Europe is going to be in much better shape than anyone is expecting. Francine this is a keyword, especially if we get greece resolved. We are just two days from that referendum. Holger and mark gilbert, you can find them both on twitter. I found holger. Manus ok. Still to come, we need the medics who say greece capital controls are putting lives at risk. Francine welcome back to the pulse. Manus lets talk about the record settlement from bp announced yesterday. It was approved by a federal judge. The deal over the 2010 gulf of Mexico Oil Spill would be the largest environmental settlement in u. S. History. Here with more on the story is nejra cehic. This is a record settlement for bp. There is relief in the markets. Nejra absolutely. It is the biggest settlement for a single entity in u. S. History. Some of the relief comes down to the fact that there is certainty over what bp will have to pay, but also the preliminary agreement spaces that 18. 7 billion over as much as 18 years. This is after bp had been fighting claims in court and a lot of that could turn out to be taxdeductible, we are told. Francine this has been going on for a long time. Every time there was on your agreement, we were told they could move on. Is this when they can turn the page . Nejra that is an interesting question. To some extent, yes. Ceo bob dudley said he is going to spend more time running operations, getting back to a Traditional Oil and gas company, and less time dealing with the consequences of the disaster. Effectively ultimately bp has had to rate its provisions. 53 point 3 billion. That 53. 3 billion. That is the gdp of luxembourg. Its value has dropped from 185 billion. It made bp an acquisition target at some points. You will have your work cut out. Production has been slowing. And, the other thing weve heard as well is that the cost could mount and be much higher than this 18. 7 billion. Francine so probably not done yet. Thank you, nejra cehic. We are getting breaking news from the ecb Vice President , saying the ecb cant decide on that yet i response yet. Lets get straight to mark barton at the markets desk. Mark the referendum is relevant. It affects the possibilities for all those who believe a yes or no vote doesnt matter. It does matter. The ecb Vice President is backing up that view. I wanted to show you how the markets have reacted. After markets closed on friday, tsipras called this referendum. Over the week, the stoxx 600, the benchmark gains in europe it is down by the biggest weekly fall since may. There has been an impact on the stock market. The eurodollar hasnt been too big. The euro is on track for its second weekly deadline against the dollar. Has there been a sense of contagion from the calling of the referendum . This is the italian 10year yield. On monday, the yield rose. Since then, the yield has steadily come down. Over the last five days, the italian 10year yield is up a mere 15 basis points. Not great contagion from the calling of this referendum. Francine thank you, mark. Coming up later in the program manus Simon Paul Smith tells us how he built his business without any borrowing. Stay with us for that interview coming up right here on the pulse. Francine welcome back to the pulse. Manus here are some of the top headlines. The bear market in china deepening. The index sank 5. 7 7 , extending its drop from june 12 to 27 . More than 2. 8 trillion has been wiped off the market. Francine an investigation into possible market manipulation in china. Strict punishment for anyone deemed to be at fault. Aetna has agreed to buy hume on her to buy humana. The transaction value comes up to 230 a share. The acquisition is amid a period of consolidation with the five big Health Insurers looking at deals. Manus two days until the people of greece vote on a bailout plan. The country needs 36 billion euros over the next three years. Meanwhile, a poll shows greece is divided down the middle. With 43 set to vote no. 42. 5 intending to vote yes. Francine some figures from pmi in the uuk. Mark the expectation was 65. 7. It is an improvement. The mixture of the services and manufacturing also a beat as well. Throw into the mix, construction activity, the strongest since february. Manufacturing activity grew at the slowest pace. The economy did grow. This is in line with an economy growing at. 5 in the second quarter. The economy revised up within the First Quarter 2. 4. First quarter to. 4. A beat for the services. A beat. Francine thank you. The greek Health Care System in a perilous state before the latest crisis. Things look to get worse as capital controls but a struggle on vital medicine coming into the country. You have the money in the bank, but you cannot buy your medication because you cannot pay your suppliers. You are going to tell your patience sorry, i youre going to tell your patients sorry, i do not have your medication. This is not the way it is supposed to be. Everything is imported in greece. We will have shortages and problems. I am not going to call it a pharmacy run, but what are you going to say . It is three hours until we get medication, the rest of you go home. Or are you going to start giving until we drop until the shelves are empty, and then what . We have 30 Million People without insurance. The Health System in greece does not work. [indiscernible] we have many patients who work in factories or business market. This medication is three inone. This box is 28 pills and is not even 30 pills for a month and costs 25. 28. Those are the medications we need and we do not have enough. If we had a truck load day, we would use it. I am positive it is going to get worse. I do not know how worse. We should close our doors and let the greek government take care of the citizens. Francine a terrible thing. It brings home the message this could turn into a humanitarian crisis. Manus it already is in many ways. People have no money. They are going to food banks. That is the reality for people in terms of medicine. Every in regards to greece is covered on bloomberg. We will have greece crisis coverage highlighting the top interviews from the weeks news flow. That includes a one to one with varoufakis. Francine up next, a new poll says the referendum is on a knife edge. We will get the view from a greek political analyst. Stay with us. Manus welcome back to the pulse. Sunday will be an important day in greeces long history if it accepts further austerity or stays in the euro. Yes or no, a simple question. It will launch greece down one of two crucial paths. Lets look at the possibilities. Voters say no on sunday. That is expect doing to be greece having to leave the eurozone. Things are not likely to be straightforward. A note could mean more negotiations. That could lead to an interim deal and new elections. And ultimately, another bailout. Say there is no deal, we could see a grexit, a new government, and a breakthrough that could lead to yes, a new bailout. If they vote yes, given that tsipras lobbied against the vote, it could see him resign. It would mean a new government more talks, and a new bailout. Tsipras can use to receive an interim deal and more cash. If there is no deal, there is no cash, we will see new elections or the grexit. What is certain is that yes or no, the greek debt drama will have turned another page. Francine for more, lets head to athens where Erik Schatzker is joined by a guest. Erik thank you. I am here with our guest. You are a risk expert. Leading up to the referendum what are you looking at . There is no real problem. At least until greece leaves the euro. In terms of international security, greece does not have any open issues. Erik you make it sound like leaving the euro is a matter of when, not if. Ioannis the government is actually promoting a no vote. Officials claim leaving the euro is not a big deal and we can deal with this at any moment. Erik what do you think . Ioannis i think greece cannot deal with this. It is not a matter of preparation. It is a matter Strategic Decisions that our government and country can see. They made the decision to be in the eurozone, not just for economic reasons, but for geopolitical reasons. If it leaves the eurozone, it may face difficult choices. Erik you have studied the Anarchist Movement and the extreme political left. Why are you confident we will not see a civil disobedience and political unrest on sunday night , come monday morning . Ioannis it depends on what the position will be. If it is reconciliation i do not think it will cause a problem. If the climate is polarize, we may see civil unrest. Erik how will we know what constitutes polarization . What do we need to listen to from mr. Tsipras to know what position he is taking . Ioannis he is in a difficult position. His plan b is to exit the eurozone. Erik you believe that . Ioannis there were no real negotiations. There was just one side. The greek changing their formulas, and the european side. Erik lets talk about risk in International Terms and financial terms. The euro is trading at 1. 11. Spanish bonds seem stable. What does that tell us . Does it tell Us International markets are appropriately pricing greek risk or the risk of a greek exit or underpricing the risk of a greek exit . Ioannis the greek debt is not a bond anymore. It is international. It is owned to the imf, ecb and the eu. The taxpayers may be affected. Erik if come monday the greeks lose the vote, do you have confidence whatever government succeeds succeeds can actually get something done . Who is going to lead that government . Ioannis this is a good question. No one knows. There is not a Single Person that can unite greece right now. Erik is that a factor in the minds of the greek people . Ioannis from one side they are polarize from the other side they do not have Political Parties they can trust in the hole spectrum, not just financial, but social issues and so on. Greece is in dire straits. Erik i want to thank you. Francine, manus, back to you in london. Francine lets get the conversation on greece. The Vice President has been making comments saying that everything is going to be more difficult if greece votes no on sunday. Lets get to paul gordon. He talked about the ela saying the ecb cannot make a decision on it. Paul scenarios have been discussed behind the scenes. He said he cannot speculate about scenarios and chose not to speculate. He said the referendum is relevant to the ecb in deciding what to do about ela. The banks will be weaker and if there is a no vote and as long as there is no deal with the government and creditors, banks will weekend and that makes it harder. That will be factored into the analysis of what to do with ela. It can be extended to banks as long as they are solvent and have adequate collateral. The strength or weakness of those banks is critical. Manus one of the Critical Issues is waking up on monday morning. We have to go into the process. The euro flowing through greece is reducing. The job of the ecb is to decide if the banks are solvents. Paul its own finances it may miss the july debt payment to the ecb. That will be critical. The banks are weaker. They hold state assets and that is what they are pledging as collateral with the greek central banks. The government is in trouble, the bank is in trouble. That is with the ecb will measure. Manus lets see what breaks next. Paul gordon for us. Francine aetna has confirmed it will buy humana for about 37 billion. Here with the details, nejra . Nejra a 23 premium on the last closing price. Aetna shareholders will own approximately 74 of the combined cut many the combined company. Humana will own about 26 . Margaret illini will serve mark bertalini will serve as the ceo of the combined company. We have seen all five Health Insurers looking at deals. Basically a record 400 billion of deals announced in health care. What is paving the way recently is the Supreme Court ruling on obamacare. It upheld subsidies for people to help them afford health insurance. Manus opening those floodgates, it is about regulation. More consolidation comes through. It is about scale, getting hold of those people. Nejra will we could see is the market being concentrated in two or three of the biggest players. What is interesting, one of the reasons humana became an acquisition target was because of its presence and medicare advantage. That is the private sector version of medicare, the fastestgrowing piece of the health market. It caters to the elderly and disabled people. You see more people turning 65. It is about the aging population and maybe boomers. And baby boomers. Manus coming up, paul smith tells us how he deals with the challenges on the high street in a seamless fashion. Manus welcome back to the pulse. We are streaming on your tablet phone, and bloomberg. Com. U. K. Retailers have posted the worst june sales and almost a decade. Fashion sales fell. The figures are far from the good reading foreign industry under pressure. The rising cost of rent is adding to their woes. I caught up with paul smith to find out how he deals with the challenges on the high street. Paul the main thing is the over distribution of price. How many big brands have over distributed over too many shops . 20 years ago three people fishing in the pond. Right now, about 2. 5 thousand people fishing in the same pond. Luckily, we are still very independent, liquid, never borrowed money, we own the building. We are more able to flow with the river. A lot of the people have stretched. You can imagine there is a lot of pressure in the next few years. Francine very engaging. He knows a thing or two about leadership. Manus you have interviewed him before. He is so relaxed and easy to work with. There is more of that in the pipeline. Francine here are more the headlines. Malaysia want an International Tribunal to prosecute those who shot down the flight last year. It can be enforced militarily. The plane was heading from amsterdam to kuala lumpur. It killed it was shot down and it killed all the people on board. Manus minutes after leaving a city, a ferry capsizes. Powerful waves may be to blame. The vessel flipped over and trapped people underneath. The captain was rescued and is in custody along with crew members. Francine a volcano has erected again, shooting clouds of dust and gas into the air. It has become more active over the past few weeks. It was classified as dangerous last month. It has been a resting sporadically since 2010. Manus for all of you listening on Bloomberg Radio bloomberg the first word is up next. For our viewers, a second hour of the pulse is on the way. Francine we will be looking out bond yields. You can follow us on twitter. Francine too close to call as greece decides whether to vote on bailout conditions. Manus greece needs at least another 36 billion euros over the next three years to keep the Nations Capital me stable. Francine chinese equities suffer the biggest since 1992, sparking an investigation into market manipulation. Manus aetna agrees to buy humana for 37 billion. Good morning to our viewers. Welcome to those of you waking up in the United States. Francine this is the pulse. First, with two days to go, greece votes on a referendum on bailout referendums. They vote whether or not to reject further austerity or accept conditions. Francine it means that 14. 5 are still undecided. Manus says; they need 60 billion euros of funds over the next three years. We are joined by Erik Schatzker. Erik, they are showing a 5050 split. 74 , 75 want to keep the euro. Do you think the people understand is this referendum clear to them . Erik that is why you see and evens lit. Truly this is a nightmare scenario. There are 14. 5 undecided. If we find ourselves with the slightest margin of victory for the yes side or the no side nobody wins area if the no side wins with a narrow margin of the three, tsipras will have a weak mandate. If the yes side wins with a weak mandate, we may face the possibility on monday morning does not resign. The Prime Minister said to me when i said what happens on monday morning, he says yes we will be here. There is no firm decision. You can expect the resolution will be less firm should the yes vote come with the narrators the narrowest of margins. Francine the institutions will deal with it. Logistically, how difficult is it going to be for the referendum to go smoothly . Erik that remains to be seen. For this to be constitutionally valid, 40 of greek registered voters need to cast ballots. Casting the ballots themselves is not as easy a proposition as you might think. Many greek voters have not reregistered to vote in the district in which they live. They have to return to their hometown to cast the ballot. Many greeks come from the islands. If they reside on the mainland they need to get themselves there. These are people facing financial difficulties, not just because of the contraction in the gdp, but because they are living under capital controls and they are limited to 60 euros of withdrawals a day. Francine thank you. So many more questions that we have answers to. Manus said the referendum only went live yesterday afternoon. Manus says lets talk to hans nichols. The expectation, there are reports the imf is talking about 30 billion euros needed for greece. They seem to concur a debt restructuring is needed. Is that helping the no vote . Hans they are trying to seize the comments from the imf, saying this is what we have been saying. You need to reprofile the debt. They want another twentyyear grace period. The top line number on how much the economy is going to need, 60 billion. The eu share would be about 36 billion. Here is the issue with what is happening with the imf. The split is out in the open. There is another poll that is out there. We have not had new information since the polls went into the field with two exceptions. Yanis varoufakis said he would resign if there is a yes vote. You think of things that could tip the scales, both of those could. Now we have the imf. They are touting this argument. We have not heard a whole lot. We have not heard from other finance ministers trying to put pressure and build support for the yes vote. Manus a bumpy weekend. Francine that brings us to the twitter question. We are joined by our guests. A less sense of how nervous you are. Mark was making a point that there is a legitimacy question. In is because there is a close race between the two camps. If there is a yes, i would put it at 5050 because of the Political Uncertainty in greece. A bailout would take several steps. If it is a no, the chance of the exit will increase. For the european market, the other piece of the puzzle is what other policy if there is turbulence in the european markets. Manus the imf report talks about the need for debt relief. Over 30 billion euros will be needed for greece. Barclays saying this could be construed as supporting the no. It does suggest the split in the creditor camp is in the open. It is possible wider than we expected. Not now is what the European Union is saying. They want to get a bailout package in place. If you bet one euro, if the no vote wins, you get one euro 50 back. The polls are split. The betting markets are saying it is a yes vote. That gives me some comfort we might not have the armageddon scenario. Francine is this the imf supporting the no vote . Varoufakis is saying the deal that was on the table is untenable. The timing is very strange on this. Certainly the numbers they have come up with our big, scary numbers. It has been a longstanding view that greece has a sustainability problem. It also has a liquidity problem. A bailout to remove the sovereign from the market. It allows them to come back to the market. Manus the Vice President was on the tape saying what matters most is the possibility of a greek deal. The greek banks are in a weaker position. Monday morning of next week, they could open the banks at the touch of a button. Is he deluded . Are the leaders misrepresenting the scenario for greek banks . By the time there is an agreement, if there is one certain things will have happened. The government is campaigning for a no. You get close, the 20th of july, when the greek government has to pay. If there is a miss payment the central bank will get uncomfortable. It is important. Emergency assistance can be removed. There is no universe in which anyone thinks the bank will dissolve through the European Central bank does not want to pose the problem. For all of the ecb, the real ban is the institutions. They are not going to pull the plug next week unless politicians decide. There is no mechanism by which you can kick out a member. If they really want greece out of the euro, they are in uncharted territory. They are uncomfortable. They do not want to be in this position where a political decision about greeces future becomes a decision about whether liquidity assistance continues. Francine we have to talk about parallel currencies. They may be a reality. Manus we will bring you live coverage of the referendum. You can watch greece in crisis. It is a special report from 11 00 p. M. On sunday. Coverage continues throughout monday. Francine here is a look at what else is on our radar. Aetna has agreed to buy humana. The transaction values humana at 23 above the price at the last close. Manus itran has ruled out any action or a any extraordinary inspections. Russia says the deal is 90 done. All parties are committed to finishing the process within days. Francine the bear market is strengthening. The index sank 5. 7 percent today. It extends this drop from a june 12 eke. The recent signings have prompted an investigation into market manipulation. Regulators have promised strict punishment for anyone involved. Manus welcome back to the pulse. Chinas worst three weeks and over two decades. Regulators investigating the suspected market manipulation. The shanghai gauge tumbling twice as fast as any other index. There is one man who can put it in context. Mark 5. 8 was the drop. From monday through thursday, we had swings of 10 on a daily basis. That was phenomenal. The index fell by 12 after dropping 6 last week. It is the biggest drop since 1992. 29 drop set to boost equities. It has been overshadowed by concern that traders will keep liquidating. China securities recommissioned set said it will investigate and strictly punish manipulation. This is the decline for all of the major stock markets since china peaked on the 12th of june , 2015. It is followed by the China Enterprises index. This is the chart, the function i love the most. This shows all of the global stock market capitalization. We can put this figure the amount that stocks have fallen in the last three weeks. This is the market cap of the u. S. Stock market. Canada is 1. 9 trillion. The amount the chinese stock market has fallen in three weeks is bigger than the canadian stock market. The u. K. Stock market is worth 3. 7 trillion. Not bigger than the 2. 8. It is quite phenomenal. I love this quote. He says for now, the mood is verging on panic. It is hard. He says chinese brokers may be looking at reducing their risk exposure by closing more margin debt. The balance of margin loans on the Shanghai Stock Exchange dropped for a ninth consecutive day. That is 208 billion in the longest stretch of decline. These figures are staggering. Francine it was one of the worst environmental disasters in u. S. History. Will this settlement for the Deepwater Horizon Oil spill put the fire out for bp finances . Stay with us for more. Francine welcome back. Lets talk about the record 18. 7 billion settlement against bp. If approved, the deal over the 2010 gulf of Mexico Oil Spill would be the largest settlement in u. S. History. Here with more, our guest. Bp shareholders see relief, but it is not the end of the line. The settlement will cost bp more than 20 billion one other payments for Natural Resource damages are factored in. It comes on top of billions that bp has spent on response cleanup, and compensation. That has pushed it to raise its budget to pay for the sales. That is about the gdp of luxembourg. That may not be enough. One lawyer said the cost could reach 70 billion. The settlement we reached now is to cover state and federal claims. There are businesses that did not join a smaller settlement and they are demanding billions. The relief is for investors because the biggest threats are gone now. Manus they are saying what a relief. Jpmorgan says it is a manageable cents. The greater conundrum is what happens next to bp . To they become a target . Nejra that is the big question. Bob dudley took over in the wake of this spill in 2010. He said i am able to spend more time running operations and less dealing with the consequences of the disaster. He will have his work cut out. The company sold about a third of its assets. Production has been slumping. Market caps have been falling. Certainly, he will have his work cut out. Francine thank you. Coming up, we talk more about greece and what it means for the bond markets. Francine welcome back to the pulse. I am francine lacqua. Manus here are the top line desktop headlines on bloomberg. The biggest threeweek decline since 1992. The index sank 5. 57 today extending its drop from the june 7 peak. More than 8 trillion has been wiped off the market the recent swings have prompted the investigation into possible market manipulation. The regulator has promised strict punishment for anyone deemed to be at fault. Francine aetna has agreed to buy humana, the secondlargest provider of medicare insurance, for 37 billion. That the deal values humana at 232 a share. The five Biggest Health insurers are all looking at deals. Manus with just two days to go until the people of greece vote on conditions of a new a lot plan, the imf says the Company Needs an extra 36 billion euros over the next three years. An exclusive Bloomberg Hall shows that pull shows that greece is divided down the middle. 52 said to vote no and 53 intending to vote yes. Francine lets check in on the markets. Jonathan as far as equity is concerned, red is the color all across europe. The ftse is down 4 10 of one point, despite the fact that bp even with the pop yesterday for bp stock the index is still headed for a week of losses. The dax is headed for the biggest weekly drop since april. It has been a choppy week for xp markets. This is nothing compared to what happened in asia overnight. Shanghai down almost 6 . Just three weeks, a drop of almost 30 . A route threeweek route since 1992. Things remain shaky for the shanghai,. In the bond market, bond yields lowered by just a basis point. We kissed 0. 7 on monday and we have come back since then. Sunday night, particularly, and opening up the bond markets on monday morning could be choppy. We look at crude, 56 a barrel. Today almost 5 down on the wheat. In fx, theres only one trade we are looking at eurodollar and euro crosses. Eurodollar up about 1 . Everyone will be watching that one when asian trading starts on sunday evening. Manus thank you. Varoufakis said he would attend a no rally this evening. Francine we will be bringing you live coverage of the greek referendum. On sunday, july 5, there will be coverage throughout the day. Manus for a look at how the greek crisis is impacting the countrys exports, thats talked to Erik Schatzker. Erik it is christinas a calorie this. She is the president of the panhellenic exporters association. Let me ask you this question what position has your association taken visavis the referendum . Christine let me answer in a different way. Our association, the members of our association have members of every of many parties of greece. It is not a state association. We are elected. We are going to take any part if it is political. Eric k but the vote has implications for your members. Christine yes, the implications will be very negative if they vote with no. Erik why is that . Christine because we consider ourselves to be europeans. Europe even owes its name to greece. We are europeans. Personally, i started my career in europe. I started with france. Erik the point is that you and your members are exporters. Why would it not help you to devalue the currency . A new drop month would certainly be good for a new drop, would certainly be good for export. Christine exports have decreased 65 to the European Union. Erik if they could buy goods for 40 less, they would. Christine it helped only for one moment and then it was very bad for the economy because we import Raw Materials and we have to manufacture them. Those are all materials we need to be paid in euros, with the devalued drachma. It is more money for materials. Erik your exporters want to stay in the eurozone. Christine absolutely. They are our clients. It is not only a question of money it is a question of security. For 70 years to get out of the regime they had and now they are queuing to enter into europe. We are in europe. Erik how are your members feeling the impact of capital controls that were imposed monday morning at 3 00 . Christine they are very difficult because the capital controls say you must have an account in a bank. But in order to purchase the Raw Materials, or do any transaction, is provided only that you have to supply the straight treasury the state treasury. Can you imagine, from all over greece and exports, you must ship, there is an expiring date. Goods are only good and will need to be replaced. Erik come tuesday, if we have a no vote in the referendum, will this countrys banks reopen . Christine how could they open if they have no money . Erik and they have no money . Christine of course, you can see. For the pensions. Where are they going to find the money they need . And for us also, how can we pay if our Raw Materials, and then from the money it is a fact of domestic neglect. The majority is done by drachma. They need money in our banks. Erik christina, i thank you very much. She is president of the panhellenic exporters association. And for those who would think the exporters would like a devalued currency, think again. Manus erik, thank you for that. The most salient point, is how can the greek banks open on monday . Great work erik, on the ground. As greece prepares to go to the polls this weekend, bloomberg takes a look at the wording of the referendum. What do greeks make of it . Do they understand it . Tom mackenzie reports. Tom the European Central bank and the International Monetary fund, because 25 since 2013. Which constitutes a unified proposal. In the second preliminary get announces, except it or not accepted . Tom you understand that question . Not really. Tom i am not sure if i know enough about it to be sure about it, what does that mean . What do you want me to say . Tom what does that question mean . The question is a propaganda if we stay in europe because we are european citizens and no one can take us out of the euro, especially this government. It is really not the time to go away from greece. So we are voting if we want to be part of the European Union or not, that is what i understand, and that is what im going to vote for. Tom what does the question mean, do you understand . If we are to answer about yes or no for these political things about greece tom it is a complicated question. Francine this really distills for me there are 72 hours left and the problem is it is very difficult to understand what they are voting for. If we do not understand it and we are on twitter and we follow every single news headline this is a very complex and frankly some would say, unfair exercise. Manus this comes back to the point you have made has mr. Tsipras and mr. Varoufakis, have they represented to the people who voted them into parliament properly and with real integrity . Sentence after sentence, it makes it so much harder. It shouldve been a simple referendum on keeping the euro where we are. 72 hours, the bloomberg poll is set at 70 want the euro. Francine we meet the medics who say that greeces capital controls are putting lives at risk. Francine welcome back to pulse. In the past five minutes, were hearing that uber suspends uber pop service in france. It is very similar to uber x. It is basically in france, just like in germany. This is a cheaper version so it means that there is actually no formal license that you have to pay, whereas the slightly more expensive uber service is still regulated. The license does not cost 100,000 but manus it is about protecting industry, protecting as a profession in france. This is the new entrance. Two executives were arrested ahead of operations and that was an investigation. They will have to defend themselves. Francine you are seeing some pictures on the screen of quite violent protests that happened in paris 10 days ago. Courtney love also got caught in it, and we see pictures being tweeted out of the herb or taxi drivers, going around and driving bats in case they were attacked by taxis. Reform is needed and a lot of these countries where the industries, not only taxis but pharmacies, bars, sellers, are not liberalized. This is what the real taxi drivers were protesting. It is not fair for uber pop coming in unregulated and taking their business. Mr. Hollande has said that he thought uber pop was illegal and france is taking that decision deciding to stop that service in france. Manus let me touch on this, this story in many ways encapsulates the challenge for europe, not just for Traditional Industries but the challenge for europe to accept change, allow structural change. This is a real example, which is french taxi drivers are taking their jobs and income so it comes down to structural change in europe. Francine the greek Health Care System was in perlis state before the recent Health Crisis before the recent financial crisis. Tom mackenzie visited a Health Center run by volunteers and doctors in athens to see the impact. You have no money in the bank but you cannot buy your medication because you cannot pay your supplier so you tell your patience, i do not have your medication. This is not the way it is supposed to be. Whatever is imported and greece, we will have shortages and we will have problems. Im not going to call it a pharmacy run, but what are you going to say . It is three hours that we give medication, the rest of you go home. Or are you going to start giving until we drop or until the shelves are empty, and then what . And greece, now we have 3 Million People without insurance. The public Health System now in greece does not work in the primary or secondary. Now we have patients we have lawyers without jobs, we have many many patients who were directors in factories or business. This medication is three and one, lets call it. This little box is 28 tells and it is not even 30 pills for a whole month, and it cost 25. 28. Heart and diabetes, those are the medications we really need and we never have enough. If we had a truckload every day out there, we would use it. I am positive it is going to get worse, and i just do not know how worse. We should close our doors and go home and let the greek government, which ever greek government, take care of the citizens. Manus and you can see more of greeces crisis coverage on bloomberg this weekend, highlighting all the top interviews from the week including the 121 with Yanis Varoufakis. Francine coming up, things are set to heat up in athens this afternoon as the rival referendum camps repair to rally. Manus welcome back to the pulse on bloomberg television. The rising cost of rent is proving one of the biggest problems for the Luxury Fashion industry. Paul smith, the designer, i caught up with him on how he deals with the challenges. Paul i think the rents are going to be prohibitive for a lot of people. Another thing is the over distribution of price. How many big bands have over distributed how many big brands have over distributed . 20 years ago, three people fishing in the pond. Now about two and a half thousand people to halfMillion People fishing in the same pond. Luckily for smith, we are still independent, liquid, never borrowed money, on the buildings. We were a bit more able to flow with the river but a lot of people have really stretched especially public companies. You can imagine there is got to be quite a lot of pressure in the next couple of years. Manus you can see the full interview this evening, a look at a look a conversation with paul smith. Francine there is that referendum event on sunday night. Lets head to athens and Erik Schatzker. I think we have so many questions. Do we exactly know what the greek people will vote on and is there going to be much Government Spending going up to the referendum . Erik i have two things to watch, and the first today, the last campaigning goes into full force tonight at 7 30 athens time. There will be rallies held by the no side and the yes side. Alexis tsipras will be making remarks at about 9 00 p. M. Athens time. Yanis fair focus, john isner focus Yanis Varoufakis will be appearing tonight. Far more important is the margin of victory, that is what to look for on sunday. It is the distance by which one side beats the other that will matter because if the distance is narrow, if the margin is small, then effectively nothing will have been decided in this country and that is a nightmare scenario for monday. Back to you in london. Francine you are right, that is the crux of the question. It is the legitimacy of the very narrow vote. Manus we will know that late sunday night. We will bring you live coverage, starting on sunday. You can watch greece in crisis throughout the weekend. We are finding it. We are testing it. We are on a quest to show you the most cuttingedge companies on the brink of the future. Tech shop is democratizing invention. Tech shop changes the process. I will get a taste with an allstar chef. You are describing eliminating sugar. I will take local motors, crowd sourced rally fighter in the desert. Bloomberg brink. Companies that break the mold