I am guy johnson. Caroline i am Caroline Hyde in london. We are talking about the markets because it is all about china for me today. We are looking at greece if we are looking at your. We have to look at the China Shanghai composition 3. 2 trillion dollars have been wiped off in terms of market capitalization in china. We have it down 30 in three weeks. Bank of america, morgan stanley, all warned of this bubble and now not only the internal investors but also outside investors, those looking from hong kong. Ipos has canceled funding. Guy what do you expect . Yesterday, we saw it close. At the end of the day, it was only up a tad and today we see a banking. Greece is the other story that we are watching. We want to know what is going to happen because there will be another busy day. The finance ministers are meeting in brussels. A new greek finance minister will be meeting them today. That happens in just under six hours in brussels and then we have the leaders gathering. Mr. Tsipras will be rolling into town and he will meet with Angela Merkel, and all of the other euro leaders. Caroline there has been a lot of preparatory work. Mr. Tsipras will have to deliver something. Caroline we will be looking at the market reaction. The bond market expressing a bit of their concern, italy, and Spanish Foreign costs are rising. It is still Alexis Tsipras facing fresh pressure from creditors going into todays emergency summit in brussels. Angela merkel and french president ward greece that it is running out of time. Guy the onus is on tsipras to strike a deal. What is the Prime Ministers plan . Lets go to hans nichols. He is in brussels. Guy johnson is in athens. What are creditors expecting from mr. Tsipras and tell us, will we get a deal . If i had that information i think i would be worth a lot more than i actually am. What creditors what creditors are expecting is a mediumterm deal. Mr. Dijsselbloem was very clear on this and madame merkel has also been clear on this. That may rollout the prospect of a possibility of a bridge loan or short term financing. Listen to what Angela Merkel said yesterday about how she want to have one comprehensive package. Angela merkel we are saying very clearly that the door for talks remains open. At the same time, we are saying that the preconditions to enter negotiations for a concrete program are not given at this time. This means that tomorrow it will be important that the greek Prime Minister tells us how to proceed and what precise proposal he can offer us regarding a Midterm Program that will lead greece that into prosperity and growth. Hans i have to say that the mood seems pessimistic. Yesterday, there was a conference call, euro area officials. Very little progress was made during that call. Today, we have a flurry of meetings you mentioned. Then the leaders will be here at 6 00. There was some diplomacy last night. President barack obama made some calls. Secretary of treasury made some calls. He called his new counterpart. It seems as though there is a lot of recognition by everyone, including defenders of greece that this is the last chance and that mr. Tsipras has to put forward a plan that makes it legal decisions. The kind of cuts that up to this point, he has indicated he is unwilling to make. Caroline meanwhile, thanks banks remain closed until wednesday. Hans the ecb is not giving any more of a lease. They are tightening at least. There was a call between mr. Tsipras and mr. Druggie after the ecb made their decision on emergency liquidity assistance. They kept it the same right around 89 billion. They did increase the haircut on the collateral that they required to make those loans. They are tightening things up. They are not indicating that they will give any sort of lifeline. If you need something or want something to happen, it has to happen at the leaders level. It has to be comprehensive. It has to be difficult for mr. Tsipras. I rewatched your interview last night that you did the new finance minister of greece. You spoke with him monday of last week. One of the few people on the planet. Give us some insight. Is this a guy that can get us a deal . The issue is that everyone is saying there should be a fresh start. He has been scoring points on the negotiating team for the last few months. Everyone is expecting a significant shift on the ground here. He has been around for a while. He is very well known. He has been around. I dont think you are going to get a significant step up here in the tone of the negotiating story. The change needs to come from mr. Tsipras. Yesterday, he was speaking about their pockets. They are very different in their styles. But similar in their thinking. Take a listen. A news he resisted and said that his country deserves more and we cannot accept a nonsustainable solution. Ordinary people. Working people. The middle class. Those who lost their business. They want to trust their government that will bring a sustainable solution. He was the most likely finance minister. It was only late in the day that the other became the closest financial advisor. It is been happening for a while. Yesterday was big news that he resigned. He has been playing a major part for some time. Mr. Sack a mr. Tsipras needs to make the biggest change. He has brought all of the leaders in greece together. We now have a political story here that is very different from the one that we had for the last few weeks. The fact that you have some source of a meeting of minds here in athens may provide mr. Tsipras with the necessary political momentum to strike a deal. Increasingly, the best Case Scenario of many analysts is that greece will leave the eurozone. It is just a matter of time. Guy the banks have been closed for a week and we learned that they will be closed at least until thursday. What is the mood on the ground . Frustrating. Last week, most greeks took a stoic attitude. As time drags on, that will become increasingly difficult. Mr. Tsipras does have momentum with them. He is still incredibly popular. We still have demonstrations over the referendum. He still has a lot of credibility with the people. It is fairly calm here in athens. As the story continues to progress without the banks opening the economy increasingly runs into trouble businesses are having to increasingly shut down. They normally do that for the summer. This economy is grinding slowly to a halt. That will make it very difficult to restart the economy even with the deal. It is getting tougher and tougher, ryan. Ryan thank you. Caroline lets turn from greece to china now. It has been another turbulent session in shanghai with stocks tumbling to their lowest level since march. Lets get out to judith in hong kong. Phenomenal. More than 3 trillion. That seems to be the overseas investments coming out today. Judith good morning. We have the shanghai composite coming back online. Selling is down 3. 5 . We are seeing a lot of that money coming down through the small companies. They are all being hit quite hard. Those that have the backing of the state are doing quite well. About 23 of mainland chinese stocks are now in a trading halt in china. China is also targeting shortselling eye limiting futures trading. It is also flowing into the Hong Kong Market where we are getting Retail Investors moving out of china. You can see there that the axle Hong Kongbased that rely on the Hong Kong Government are doing quite well. Those that have inks to china are not doing that those that have links to china are not doing that well. We have also had an Interest Rate decision come through with australia. In terms of trade have really dropped in australia. A six year low. Below 75 u. S. Cents. Interest rates are on hold in australia. At that record low of 2 . That is not helping that is not hurting the overall us trillion share markets which is up i 1. 6 at the moment. Caroline those economists that we survey thinking that 2 would hold. Ryan some struggles in the Second Quarter with the south korean tech giant missing estimates. We asked if their latest smartphones have missed the mark. More on that, after the break. Caroline welcome back. It is 6 15 a. M. In london. Ryan here are the stories you need to know this morning. The german chancellor has said time is running out for greece to make a decision. The greek Prime Minister is arriving in greece in brussels later today where he will meet all of the european leaders. The finance live it the finance minister will be there as well. The maker of the galaxy smartphone posted its seventh straight profit drop as its Second Quarter. We go to china. Caroline benchmark share index deepened today after a flurry of measures to shore up the market failed to prevent a record drop. The shanghai composite hit its lowest levels since march the 20th. The . 2 trillion have been wiped from the value of chinese stocks. To buy 19. 3 billion worth of shares. Ryan some more of what you need to know. German Television Organization is in talks with springer. The dow jones broke the story first. Discussions are at an early stage and, after springer tried to do much the same almost a decade ago. That was blocked by german competition of authoritys. Axel springer is valued at just under 5 billion euros. Caroline lets have a look at some of the stories for you. Samsungs struggle to lower customers from apple has just gotten harder. The maker of the galaxy smartphone has posted its seventh straight profit drop. Lets go to a bond who has the story. Can they turn this around. A slowing of sales. The ethics is not yvonne that was supposed to be the right start for the Second Quarter. Everyone was hoping that the Second Quarter would be the turnaround for samsung. As you mentioned, seven straight corridors we have seen profit drops. The Company Forecast that they released a few weeks ago missed analyst estimates. The s six sales are not as strong as the market has expected. That is the one with the curved screen. That was a special part of that phone. The problem here is that it was not so much about demand but supply the first couple months of the quarter. That lead to shortages which trimmed sales. That failed to regain customers that switched to the iphone 6. You also have the cheaper phone options putting more pressure on the low end it is a supply issue early on. They started production in a third factory. By june, the sales just did not take off. They are struggling in the low and high end of the smartphone market. Smartphone shipments were still flatlining. Ryan it cannot be all bad. Tell us what is going on in the tips business. In the chips business. Yvonne they still say that valuations are still good. Samsung is diversifying some of its portfolio here. You have Semi Conductors also. Which is the growing drive here for the company. Memory chips are still booming here. Earnings from the Semi Conductor unit art 2. 8 billion which is two times bigger than we saw three years ago. A lot of guess we spoke to today did high that. Sources also say, a couple of months ago, that the main chip for the next iphone model could be coming from samsung which is regaining the customers that it had previously lost. The one advantage samsung has is that it provides its own memory chips and display. If we continue to see those smartphone sales, the eye sales falter, that could falter that could hurt. Caroline thank you. Ryan time now to turn to the markets. All eyes firmly fixed on greece again ahead of todays emergency summit. Another one of them. Lets talk with jeremy cook to talk us through it. The most Interesting Development yesterday or nondevelopment was the ecb coming out. Keeping the cap where it is. And fiddling with the collateral rules. The ecb will not leave greek banks out to dry. Jeremy they are trying to appease the rest of those in the euro. Letting greece run willynilly. We have not seen an increase in the limits there. Ryan they cant do that politically. It is impossible for them to give a great banks more money. Jeremy could they just give them an actor bit of cash. Ryan over the course of that jeremy over the course of this season. It is a huge amount of money. They are in arrears to the imf. The imf has not gotten its cashback. That is when we start to talk about parallel currencies. Greek script being offered by the greek government. All of the euros being chased out of greece. Caroline what is your best case right now . The fact that we could get money being printed by greece. Are you expecting a greek exit . Jeremy i still expect that greece will remain part of the euro but i think we will go through a season of a parallel kurt parallel currency being used in greece. I still think that the political impetus and desire to keep greece within the eurozone i think we will have shouted deal. Maybe not tonight. Another emergency summit will probably be called by the end of the week. Caroline who is eventually going to come out with having to give up more in the compromise . Jeremy i think it is the creditors. For all of the good work that Angela Merkel has done for the eu, this would be the first line of victory. I think that they have to give way. Or the imf that needs to happen. The dynamics dylan do not work. Ryan does that set up a president for other countries that have been following the rules . Jeremy yes. The moral hazard of that is used. Ryan it makes tsipras look like a winner. Jeremy by december, i think he will be named hero of the year. The moral aspects of the European Union moving forward will have to be changed dramatically. The way that the ecb deals with the funding of each individual government. It it is the Banking Sector which is the main Pressure Point in greece right now. As soon as we can relieve that, gears will start turning again. Caroline what do you expect in the shortterm . Do you think the banks will reopen . Jeremy the withdrawal has already gone down and it could go down to 20. As soon as we see liquidity dry up, then we will see the greek government issue some sort of currency. As much as people want to stay in the euro, they cannot buy food and drink with the currency in their pocket, you may see another token currency. Ryan what does this mean for the euro . Where do you see jeremy i hope we will still get a deal. Maybe that is hope beyond hope. I think we all know that the smb and other european funds are going to try and make sure that their currencies are not getting crushed as a result of this. A couple of Market Forces there. I still think we will see the eurodollar right do well. Caroline tomorrow, we also have a budget in the United Kingdom. What are you expecting . Jeremy the key take away is that the fiscal retrenchment that we will likely see in the United Kingdom everything will be frontloaded while the goodwill from the general elections still remain. The Monetary Policy will still stay loose in the United Kingdom. That will be a buffer against the fiscal retrenchment. Focus turns away from the budget to a british exit referendum chance. This is the worst advertising you could have. They could just point to this and say look at this. This is the eu in active. All of the greatest minds in the you have done this. We really want to be a part of this. Ryan chief economist and head of strategy jeremy. Caroline we will have special coverage of u. K. Budget here on bloomberg tomorrow. That will be live at 1230 london time. We will have a special program at four clock p. M. Featuring top talents across blue bloomberg. Ryan welcome back. Caroline here are the stories that you need to know this morning. German chancellor Angela Merkel has word at that time is running out for reason to save its place in the euro. That comes as leaders in finance ministers gather in brussels today. In the wake of a resounding no vote in greeces referendum. Ryan the slide in chinas benchmark share. The shanghai composite is at its lowest level since march 20. More than 3. 2 trillion have has been wiped off of the value of chinese stocks in less than a month. Despite efforts from state run legislative firms to buy shares. Caroline oil prices are stabilizing a little after crudes the is declined amid signs today that the deadline for a nuclear deal between iran and the west will be next. Iranian officials says an agreement that could lift sanctions is not assured even as differences in the negotiations in vienna continue to narrow. Oil is trading at its lowest level since april. There is a deepening debt crisis. Ryan lets get more on the talks going on in vienna on Irans Nuclear program. Elliott has been following the developments. Are we going to get a deal . Elliott no deal yet. Probably well not get one in time for tonights extended deadline. Negotiators from world powers. There is some called for optimism. Chinese foreign minister is telling reporters that a comprehensive agreement is in within reach. John kerry urging people not to get too carried away. John kerry over the past few days, we have in fact made genuine progress. But i want to be absolutely clear with everyone. We are not yet where we need to be on several of the most difficult issues. Elliott a couple of the major stumbling blocks as expected include the pace of sanctions relief. There is also disagreement over the lifetime of snapback provisions. This is the automatically a position of sanctions on iran is if it is found to be in violation of any details of the agreement. From irans perspective, they want an agreement that provides for a way for them to restart there research if sanctions are not reveal are not listed. Caroline if there is no deal by thursday, could the start to be a problem . Elliott it could. Tonights deadline is an artificial one. In the sense that it can be moved to another day. Nothing that it will not make much