>> china asked questions below the 4000 line in the sand. u.s. equities endured their worst week since march as greece overshadows all and angry in athens. tensions rise ahead of the referendum. "first up."

shanghai opens this morning below the 4000 level for the first time since april. the regulator has about to strictly punish anyone manipulating stocks. steve joins us with the latest. the government cannot come to the rescue. steve: a lot of late-night announcements coming. early on in the week, the break cuts and now, be late-night announcement of transaction fees being cut. they -- the announcements are more about manipulation of the market. probeinteresting to see a organized with special focus on cross market manipulation. they will send criminal cases to the police. people familiar with what is

happening say they are examining recent shortselling activity for stock index futures. this is the volatility we have seen. even today, you can see the spikes up and down mostly through the week. down 24% since its peak on june 12. the chin jin composite down even worse. a number of different market boosting measures have been introduced. the rate cuts, cut transaction fees, and that is what has happened since yesterday alone. 34 billion u.s. dollars wiped away from china's wealthiest portfolios. yvonne: it seems they are taking every tool to contain this but it is not working.

we will see how it goes. what is this about regulators allowing investors to use their homes? so dangerous. steve: they are not that liquid of an asset. part of wednesday's announcement, they said they would allow homes to be offered as collateral. they want to ease the pain when the margin calls come for these investors but to me, it sounds crazy. here --ling mentality you put your home up for collateral and the market is in the tank. the brokers adjust launched these homes. quote.ear this there you see it.

property market also not going up much either. there are also accepting other assets. we sent an e-mail to the crc about what assets those are and they did not respond. gold bars are ok. your mother's home, i don't know if i want that. yvonne: get more on today's top stories on our digital destination. themberg business brings best in one address. why a safety net may be ending soon for shell. what is helping the rise of some leaders. -- sommeliers.

watching developments for us. the drama keeps going. even after this referendum, it will not be the endgame. >> we are really getting down to the wire. polls showing the referendum may be too close to call. the imf saying that greece will meet at least another $40 make debt sustainable. total financing would need to be .bout 50 billion before the banks were closed, there was less than 1 billion in the banking system. you have to wonder where this money will be coming from and you can understand why greece is so upset. we have that anti-protest. urgingme minister is

greeks to vote no. sign with he will brussels if there is a yes vote. the rest of the nation really wanting greeks to vote yes. interestingly, the greek finance yes -- minister said they want to do anything to stay in the euro. he says he will quit if greece votes against the plan. words he some of his said about the whole drama. >> i prefer to cut my arm off. >> that is a pretty big red line. >> since i can remember. i'm not really sure what impact that would have on the euro.

definitely some fighting words there. yvonne: what happens if there is a yes vote? uliet: what exactly are they saying yes to? the deadline to these talks expired before the referendum. they are saying a quick solution won't be insight because any european rules mean negotiations would be more complex. to gore going to have back to the table. the finance minister saying he will go back to brussels. yvonne: everyone just bracing for sunday. thank you so much. your coverage on bloomberg tv will be live in athens with special coverage of the boat as is the result is announced.

that is happening on monday morning. markets in asia this morning -- we did see u.s. stock dollar drop on those implement figures. the new zealand dollar spot strengthening right now. openscounting down to the in australia, japan, korea. china thiscting morning and australia retail sales. chicago futures pointing to a slight higher open this morning from tokyo. atsing yesterday just merely 1% up. the dollar yen unchanged right now. mixed u.s. job set up for traders today in a shortened trading week. let's look at their action with oliver. good to see you this morning. how did markets behave ahead of this july 4 weekend?

oliver: quietly. not a lot going on in the markets. we ended on the smp basically unchanged. a little further down in the dow. quiet day. a pretty a big jump in bali last weekend jump last week. will be going on a little longer than i think the market expected. a lot of people have been watching what is happening in greece. given this has been going on for a long time and it is not the first time around, to some stocks it might have -- moved down quite a bit since then. i think people just kind of moved to the sidelines. they had no idea which way it will go at this point. it has gone on longer than they thought. you see it flatten out. a bit of a move up on tuesday

but ultimately in the short week, stocks quiet. today, the jobs number came out. with that situation, now that we are past june and we know the hike did not happen at the market start to look toward the rate hike, we will have to have a big job to move anything in either direction. we did see a little bit every action from that jobs number. to price atarting little more toward december. came off a little bit today. you also saw utilities on the day and financials down. ultimately, a quiet day going into the weekend. yvonne: everyone ready for the holiday. .he big wild card what will it take to pull stocks out of the slums? oliver: the concern is a little less on when the hike will be and at what rate.

if we do get some clarity from the fed and we get some insight into what the fed's thinking, that can possibly move markets. again, it will have to be a big move. it will have to say we don't think the data is there but it is solid as we saw today. earnings season. we have been in the in between faith and perhaps the reason we saw the move down this week is because companies have been buybacks. there's not quite that support pillar there but a lot of investors want to see topline growth at this point, companies reporting numbers that are showing quarter over quarter growth. i think if you have that strength on the company site combined with the strong economic growth we have seen, you might have a solid week coming up. alcoa earnings out next week. thank you so much.

other stories making headlines sales tax rates again despite the continuing weakness in the economy. unlessnomy minister said japan is hit by an exceptional economic crash, the rate will be lifted in april 2017. the government hopes to then it inflation before then. inflation before then. >> there is a gap between the we are out ofs inflation and when it has ended. it will be best if we raise the sales tax after we make the announcement. we want to raise it as planned unless there is a good reason not to. we are working hard to invigorate the economy so that it will not suffer a never -- another blow. yvonne: chinese consumers tapped economy.

now to japan. real estate agents in beijing were organizing twice monthly force to tokyo -- forests -- tourists. in the japanese r at a record high of 11% for the past two years. tesla shares jump in the u.s. after second-quarter sales surge 52%. the carmaker eat estimates to .eliver a record are expected to increase with the introduction of the model x suv. coming up, u.s. markets see their worst week in three months. economy.d data on the we ask our next guest what to expect in the coming weekend months. -- week and months.

iran says it recognizes he was right to visit sensitive nuclear site and ask questions as diplomats try to clinch a deal before next week's extended deadline. has ruled out any extraordinary inspections ahead of the talks to try to speed up agreements. is 90%has said the deal done and all parties are committed to finishing the process within days. when a ferryd capsized in the central philippines. hundred 89 passengers and crew were on board when the incident happened minutes after leaving the city. the coast guard has launched an inquiry. survivors a-- vessel flipped over, trapping people underneath. the captain was rescued and is in custody along with some crew

members. a volcano has erected again, shooting clouds of dust and gas into the air. the mountain has become increasingly active over the past two weeks. in -- and has been directing sporadically since 2010. in the grand battle for influence over the markets, greece. the s&p 500 index sold the most since march over the past five days. the biggest decline are on the -- western unit. they fell after a paypal purchase competitor closed down to 8%. 19% afterergy plunge seeing second-quarter earnings. overall treated as crude oil had its worst week

since march. chesapeake energy down 3.5%. more on the u.s. markets with the founder and president of global strategies. he joins us live from los angeles. good to see you. .et's start things off 220 3000 jobs. unemployment at a seven-year low. we saw wages of stagnant and the partition page -- participation 2007.he lowest since the economy not recovering as well as believed. think wes true and i have had the quantitative easing and zero interest rate policy for seven years now and having we canat, this is what deliver. the question to ask is is the policy delivering on what it is supposed to do? not only that but do you have a

big increase in part-time, full-time employed people? wages stagnateen and the number of hours per week is not increasing our. at a later the participation for thenge, 25-54-year-olds, the share of the population working hardly changed. statistics on the labor side -- there witnessing a situation with china slowing. there witnessing the continuation of the greece crisis. inon't think the fed can add time to increase interest rates under those circumstances.

yvonne: things have looked a little better had it not been for greece? >> things would have been better because greece was a big negative influence. even if you did not include it, you have the situation with a very weak economy. inflation is below the target and the fed keeps making forecasts about economic growth. they have been doing that every year since 2009 only to be wrong every time. there are other things that are not going their way at all and that is why the real question is ?hat is the fed really up to they have lost some credibility in my opinion by talking about the rate hike and they have come close to that promise to date and they get cold feet and it gets pushed off. yvonne: hopefully we will get

some clarity. we are expected quarterly earnings season. analysts forecasting corporate before will track 6.5% we see things turn positive again in the fourth quarter. how will we see some topline growth? how big is the dollar playing a factor? what's i think a stronger dollar is a major influence in terms of the shrinking of earnings. in addition to that, the global economy is slowing. that is also having an impact on american companies, especially the largest companies which have a significant proportion of their earnings from outside the united states. we've also had a lot of strange rate volatility abroad in europe in particular. all of these are going to be negative influences on corporate earnings in the second quarter. the fourth say and

quarter come it will pick up again, i don't know where that comes from. it's almost a case of saying for a couple of quarters, you forecast three quarters ahead and say things turn around. we have had every year this expectation of a big turn around and it has not happened. yvonne: a dark picture there. appreciate your insight. things go with earnings season starting next week. next, iron horse taking a tumble. looks like smaller producers in forralia should brace tougher times ahead. live in sydney for the details when we return.

yvonne: welcome back. the recent slide in the price of iron is set to continue. from australia climbs to a record. let's get to paul allen in sydney for more. more than 5%l by yesterday. more pain on the way for australia's iron players. >> the small players will feel it the most. at the time, the ceo said they will be able to sustain at a

price of $40 per ton. shipments it a record in june of 14%. that was outstripping the old record would -- which was set in may. -- the price of iron or did rise. exports did not meet expectations but normal services resumed. we assume the price drop by 6% on thursday, which was its biggest fall in more than a year. to make things worse, there is even more supply still to come. paul: the government itself expects exports to rise by 10% in 2016. rio tinto continues to expand. will player on the scene

finally begin shipments later this year. plenty more supply to come. that means more downward pressure on the price. citigroup more bleak, seeing $40 per ton by the fourth quarter. paul allen joining us live from sydney. thank you. you down a number of big-name banks under investigation in brazil. find out why when we return.