Greece rejects bailout deal, the Chinese markets rollercoaster and Microbabble

The daily briefing “FirstFT” from the Financial Times.

Greece has rejected a compromise with international creditors in the referendum held on Sunday, raising serious doubts about whether it will remain inside the eurozone. The No camp won 61.3 per cent of the vote and was victorious in every region of the country, a remarkable political exploit by Greek Prime Minister Alexis Tsipras.

However, the result is likely to plunge the country into deeper economic turmoil as it tries to prevent the collapse of a financial system that is rapidly running out of cash. The next key date in the crisis is now July 20, when Greece needs to repay EUR3.5bn on a bond held by the ECB. (FT)

In the news

Banks vs the Budget Banks have intensified their calls for George Osborne, the UK chancellor, to give them a break on the bank levy in the Budget this week. Credit Suisse and ING have warned the Treasury in pre-Budget talks that they are considering pulling some of their activities out of London. (FT)

Chinese markets The rollercoaster is set to continue this week. Over the weekend, Chinese authorities beefed up their attempts to restore investor confidence in the country’s tumblingstock markets, saying that the central bank would provide liquidity to the margin finance sector. However markets are whipsawing again on Monday. (FT)

Shaken and stirred Sony Pictures faces a battle to hold on to the distribution licence for the James Bond franchise amid talk that MGM and EON, who control the rights, are preparing to take the series to a new studio. (FT)

Sustainable banking Standard Chartered has signed up to an industry agreement covering the palm oil, soy and timber industries, which commits the bank to avoid groups causing permanent deforestation in environmentally sensitive areas by 2020. (FT)

Air strikes on Syria intensify The US-led coalition against Isis has carried out one of itsbiggest assaults on Syria so far. The strikes targeted Raqqa, a major stronghold, which is regarded by militants as the capital of the caliphate they declared in Syria and Iraq last year. (BBC)

Pope Francis begins South America tour The pontiff has arrived in Ecuador on the first stop of a seven-day tour of South America, his second visit to the region since taking office in 2013. He will also travel to Bolivia and Paraguay but not his home country of Argentina. (BBC)

Women’s World Cup The US has defeated Japan 5-2 in the final. It is the first American World Cup title since 1999 and the US has become the first team to win the tournament three times. (NYT$)

It’s a big day for

Angela Merkel, the German chancellor, who is due to fly to Paris on Monday for consultations with President François Hollande on what steps to take following the No result in the Greek referendum. Meanwhile in Frankfurt, the policy making governing council of the European Central Bank is due to meet on Monday afternoon.

Food for thought

Ten consequences of the Greek referendum Courtesy of Mohamed El-Erian, who argues that without skilful crisis management, Greece is at high risk of becoming a failed state. (Bloomberg)

 

Why the Yes camp lost in Greece Not sick of blanket Grexit coverage yet? Good. Wolfgang Muenchau dissects the domestic political scene in Greece. (FT)

The cosplay Caliphate of Isis How to explain why scores of young Europeans and Americans leave their homes and families to join Isis? It feeds the same urges as the fantasy world created by JRR Tolkien, argues this article: the need for belonging, a yearning for a glorious past and resolving competing identities. (Aeon)

Microbabble Going forward to the ecosystem of a new planet … Lucy Kellaway finds no magic in the latest corporate missive from Microsoft. (FT)

A new cold war? European security is at risk as the crisis in Ukraine rumbles on. Moscow is looking to expand its area of control by re-establishing an exclusive sphere of influence within the boundaries of the former Soviet Union as it woos China. (FT)

Video

Gideon Rachman and Henry Foy discuss the breakdown in trust between Greece and the EU. (FT)

This article is published in collaboration with The Financial Times. Publication does not imply endorsement of views by the World Economic Forum.

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Author: FirstFT is the Financial Times’ editors curated free daily email of the top global stories from the FT and the best of the rest of the web.

Image: A “No” supporter holds a Greek national flag during celebrations in Athens. REUTERS/Dimitris Michalakis.