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Greece In Default; Tunisia Shooting Attack; Black Church Destroyed From Massive Fire; Devastating Plane Crashed In Indonesia; ISIS Is Threatening The Palestinian Group Hamas; Dangerous Weather Situation In Europe; Wildfire In Washington; USA VS Germany in Women's World Cup; COPA America Final; Leicester City Have Sacked Manager Nigel Pearson. Aired Midnight-1a ET

Aired July 01, 2015 - 00:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


[00:00:00]

(COMMERCIAL BREAK)

ERROL BARNETT, CNN ANCHOR: Greece becomes the first ever developed country to default of a payment to the IMF. This hour we'll look at what happens now for Greece and the world economy.

ZAIN ASHER, CNN ANCHOR: And more British tourists are confirmed dead in the Tunisia terrorist attack. And we have new details about the gunman's training.

BARNETT: And we're live in Indonesia where the death toll is rising from a military plane crash.

ASHER: Thank you so much for joining us everyone. I'm Zain Asher.

BARNETT: And I'm Errol Barnett, we're with you for the next two hours. This is CNN Newsroom.

(BEGIN VIDEO CLIP)

(END VIDEO CLIP)

ASHER: And we begin with our top story. It was about 7:00 in the morning in Greece, and the country waking up to a deepening financial crisis that certainly one with grave ramification across Europe and throughout the world's economy as well -- now that the country is nearing default.

BARNETT: That's right. The government in Athens failed to make $1.7 billion loan payment to the International Monetary Fund and European creditors deny Greece's requests one more time.

ASHER: Greece pleaded one more time in a letter to the Eurogroup. The Eurogroup is a group of finance ministers that make up the Eurozone.

The Eurogroup president spoke with CNN just before the payment deadline.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Yes. So the part of the request which is about the extension of the old program is practically impossible and the political context and the political stance of the Greek government hasn't changed. So the old will expire.

The second part of the letter referred to a new program and we will stop procedures on that. But of course, we still have to wait the referendum.

(END VIDEO CLIP)

BARNETT: So that's it, this loan payment was not made and now the Eurogroup will meet in just a few hours to consider this new request by Greece for new bailout plan, that analyst say the country's creditors are losing patience.

ASHER: They certainly are. And that could mean a Greek exit from the Eurozone. Tadgh Enright, reports.

(BEGIN VIDEO CLIP)

TADGH ENRIGHT, CNN CORRESPONDENT: Investors have been pricing in, the likelihood that this payment would be missed, since markets opened on Monday.

Because while late last week, there was still optimism of a deal, over the weekends, the Greek government chose a different path and the economy minister told CNN's Richard Quest they wouldn't pay.

RICHARD QUEST, CNN CORRESPONDENT: You're saying, you will not pay, there is not the money in Greece.

UNIDENTIFIED MALE: Yes.

ENRIGHT: When does a missed payment become a default? Well, experts in how the IMF works that the Greece's technically in arrears, and that a default doesn't happen until the pawn's board is formally told about abolish the missed payment. And the IMF Chief Christine Lagarde is already warned, she won't waste any time.

CHRISTINE LAGARDE, IMF MANAGING DIRECTOR: There is no grace period of two months delay as I have seen here and there.

[00:05:00] On July the 1st, payment's not been made.

ENRIGHT: But she said thus when there was no talk over referendum. And pulling the plug on Greece before giving its people a vote in their future would be bad P.R. Greeks are due to vote Sunday to accept or rejects the Troika's proposals. But as it stance, there's nothing to vote on. The Troika has taken its proposals off the table.

GEORGE PAPANDREOU, FORMER PRIME MINISTER OF GREECE: Now, we're voting on something we really don't know what it is or what it could be, and it has become therefore a vote of, basically, of a yes or no to being in the Eurozone. ENRIGHT: Assuming there is a vote and it's yes, expects the governments to resign and a new administration to try to restore the status quo. But if it's a no vote then others in Europe say that Greece's headed for the exit even if Athens has threatened legal action to stay in the Euro. It would be a currency crisis the world has never seen before.

MICHAEL JACOBIDES, ASSOCIATION PROFESSOR, LONDON BUSINESS SCHOOL: It is extremely difficult to change the currency even in the best of times. We do not have any example of a country in peace time that it's changing its currency. It's a mess.

ENRIGHT: That's an outcome and neither side wants. And there are still back room dealings designs to avoid this, testing resolve, diplomacy, pragmatism and patience. Tadgh Enright CNN London.

(BEGIN VIDEO CLIP)

BARNETT: Let's bring in our Emerging Markets Editor John Defterios live from Abu Dhabi to discuss this a bit more.

So here we are, Greece has reached technical default status on its billion dollar payments to the IMF. But, everyone, take a breath here, there's another Eurogroup meetings scheduled in about five hours. What are the possible next steps here?

JOHN DEFTERIOS, CNN EMERGING MARKETS EDITOR: Well, it is essential, Errol, to try to find a common ground and it's difficult to see where that common ground is. It's extraordinary when we are having this conversation that we could go Mr. Dijsselbloem who we heard in Tadhg's of report there was suggesting, "We'd like to get a deal done on 24 hours by the end of business on Thursday".

Let's take a step back, the gap between the proposals put on the table by the Greece on the Eurogroup back then, was just 2 billion to 3 billion euros, fast forward to where we are today, you can hear the context of both parties here. Both sides the Greeks and Eurogroup saying, this lacks of political context.

So what do we have on the table here at the very last hour the Greeks put up a request for a two year bailout packaging, third to Greece.

This followed a surprised blind-sided referendum as what the Eurogroup called it, going to the vote on Sunday after a payment was due on Tuesday. So the credibility within the Eurogroup, are the Greeks is lacking at this stage to be a very, very candid.

Secondarily, of the Greeks now, may have to kind of exercise their right to go to the Europeans stability mechanism which is at lasted effort to raise money, restructures its debt and move forward. But if you listen carefully to Mr. Dijsselbloem were saying here, not until after the referendum. They don't think that the Tsipras' government will survive that referendum if the Greeks overwhelming say yes.

But the emotions are very high in Greece right now, and that could tilt to the other sides saying, "Look, we're going to be isolated here. Let's vote no because perhaps our best resolve here is say Grexit. And that's perhaps with the Tsipras' government wanted all along and that's the big question mark right now, Errol.

BARNETT: So, what we're talking about there essentially is that the Greek government's credibility has been on the line and in many ways so is it wisdom. I mean, is it possible that this relatively new government in Greece miscalculated the potential impact that a Grexit would have not just at home but on Europe has as a whole.

DEFTERIOS: Yes. In fact, if you listen to the language of the Greek cabinet. The economy minister Mr. Stathakis was quoted last night saying, "I'm very relaxed about the situation right now because we know that the cause of the Grexit or an exit by Greece out of the Euro would be so costly to the European Union".

Now, that maybe the case if we had massive contagion but we're watching the financial markets or watching the bond market in particular to see how interest rates are responding in the (inaudible) countries.

Yes, they've gone up. We don't see a selloff in the Euro and that rise in the interest rates hasn't been severe. So perhaps this is a grand miscalculation, it's still early days and you see both sides claim a chicken (ph).

Now, the challenge is, do they want to kind of bridge this gap at all somewhat argued the Eurogroup doesn't want to work with this Greek government anymore, to let the referendum play out and let the pain deepen on the Greeks so it can get a last minute deal that serves the purposes of the Eurogroup and some suggest follow the footsteps of what the German policy request are to Brussels right now.

BARNETT: In Eurogroup officials have already said that any new agreement would have more restrictions than the one Greece already said no to. So it doesn't look good for Greece and anyway, shape will form. We'll continue to talk about this throughout the morning.

[00:10:00] John Defterios live for us in Abu Dhabi. John, thanks.

ASHER: And you can find out more about the Greek debt crisis including a look at how it's affecting the country's tourism industry. There is certainly a real fear that tourist could end up strap the cash because of the cash withdrawal limits at ATMs. All of that is on our website CNN.com.

BARNETT: Now, there's some other news in the coming day, the bodies of some of the victims of the terror attack in Tunisia will be flown back to Britain. 38 people mostly tourists were killed when a gunman open fired at a beach resort in Sousse on Friday.

ASHER: UK officials say the number of Britain's killed in the attack has already climb to 22 but they fear that that number could actually rise to 30.

Now, it is the most significant attack against British citizens since the London underground and bus bombings about 10 years ago. Now, tourism is certainly vital to Tunisia's economy and the country will be sending an additional 1,000 armed security officers to tourist zones today, and that's according to the country's state news agency.

BARNETT: Meantime in Britain, hundreds of police and government staff took part in the largest counter-terrorism drill to date in London. The two-day exercise was planned long before Friday's attack.

ASHER: Erin McLaughlin spoke to a British couple who survive the terror attack in Tunisia.

BARNETT: That's right. They recall the moments the gunfire rang out. Listen.

(BEGIN VIDEO CLIP)

ERIN MCLAUGHLIN, CNN CORRESPONDENT: Len (ph) and Pam Plane (ph) say they often travel to Tunisia. The sun's spectacular setting and friendly people made it their favorite vacation destination.

UNIDENTIFIED FEMALE: Tunisia is like for us...

UNIDENTIFIED MALE: Yeah.

UNIDENTIFIED FEMALE: ... like a second home. From the start, they it's just fantastic.

MCLAUGHLIN: But when a gunman stormed in nearby beach, they ran for their lives.

UNIDENTIFIED MALE: Probably 20 seconds afterwards, there was another bang and another bang, which that point sounded like a firework. Then another one was sounded like this, then it went, then we knew it was gun fire.

I looked Drand (ph) and I said Pam (ph), "They're running from the beach, they're running from the beach, they're running from the beach get up". And I saw somebody and I said, "What is that?" he said, "Guns.". I said, "Run, (Pam), run".

Personally, I cried and what we considered ourselves very, very lucky, neither to see any carnage nor to see any death. But we heard and we've seen so we know what it was but we have not got any upset emotional trauma. But those involved would have, they must be shocked big time.

MCLAUGHLIN: Traumatize.

Len (ph) and Pam Plane (ph) say they're not sure they'll ever go back.

(CROSSTALK)

UNIDENTIFIED FEMALE: Yeah. I mean, when I first come home we first said never.

UNIDENTIFIED MALE: We said never, don't we? UNIDENTIFIED FEMALE: Never.

UNIDENTIFIED MALE: We'll say, they owe the people a lot. And we'd like to some way in the pas and (inaudible) maybe -- it won't be this year now and maybe we have to say the settle of the land.

UNIDENTIFIED FEMALE: The thing is where can you be? You can be anywhere, can't you?

(END VIDEO CLIP)

BARNETT: And McLaughlin there. Now, Tunisian authorities tell CNN the Sousse gunman trained with the people who carried out the attack on the Bardo Museum in Tunis at March.

ASHER: ISIS has claim responsibility for both attacks and some people who actually new the gunman, paint a very different picture of him. Here's our Phil Black with more.

(BEGIN VIDEO CLIP)

PHIL BLACK, CNN CORRESPONDENT: A fellow student says this was Seifeddine Rezgui showing off his dancing skills. This is the same man on a beach last Friday massacring innocent people. How did he get to this place?

Before becoming a terrorist, Rezgui was a student who lived here, a dusty lane of Kairouan about an hours drive from where he murdered 38 people.

(Through Translation): Maybe say they where shot to learn he killed for his religion.

UNIDENTIFIED MALE: Not serious Muslim.

BLACK: This man, who doesn't want to be identified, says Rezgui was never seen in the Mosque just to the end of lane.

UNIDENTIFIED MALE: At this man, is not making prayer at all.

BLACK: He doesn't go to pray.

UNIDENTIFIED MALE: He don't go to pray in this Mosque.

BLACK: The Mosque is right next to his house.

UNIDENTIFIED MALE: The Mosque is fewer meter far from his house and no one -- he make prayer in the Mosque. They say he drink alcohol.

BLACK: But students here Kairouan University, tell us a very different story.

(THROUGH TRANSLATION): Seifeddine Rezgui was the cool one in the extremist group, says Theydi Saheydi (ph). He says, Rezgui was openly Islam in his views, but unlike others he wasn't aggressive. He's behavior wasn't radical. He was someone you could talk to about anything even when he disagreed with you.

Students said Rezgui disappeared from most of June until ISIS released this photo, announcing he was responsible for the resort attack.

(THROUGH TRANSLATION): Seifeddine is a terrorist but I don't want to say that because he's a victim of those extremist groups.

[00:15:04] In the beginning he was a dancer. He loves hip-hop. He was an artist inside.

Students say extremism in Tunisia's universities is flourishing. They fear Rezgui won't be the last to make an extraordinary and deadly transformation. Phil Black, CNN Kairouan, Tunisia.

(END VIDEO CLIP)

ASHER: We're going to turn now to a developing story in the United States. A predominantly black church in South Carolina is destroyed from massive fire. Then, our federal investigators are on the scene as I speak.

Authorities say, they don't really know how the fire started at the Mt. Zion, African Methodist Episcopal Church in Greeleyville.

BARNETT: Now, this location is just over an hour drive north of Charleston when nine people are killed last month, in a racially motivated shooting at another black church. This church in Greeleyville has actually been set on fire before the structure was destroyed in an arson attack by two former members of the KKK back in 1995.

So you have this fear, this concern, the suspicion that perhaps this is racially motivated. We don't know at this moment but we will continue to follow the story and bring you the latest information as it comes into us.

Now, crew (ph) is searching for answers, families looking for loved ones after a devastating plane crashed in Indonesia. We'll bring you the latest on the disaster in a live report coming out.

ASHER: Plus, (inaudible). This Shia cleric who followers support the U.S. in Iraq is now making a direct and personal threat against the leader of ISIS. We'll have that story in just a moment for you.

(COMMERCIAL BREAK)

PEDRAM JAVAHERI, CNN METEOROLOGIST: Good July 1st to you. Meteorologist Pedram Javaheri feels certainly like the heart of summer accross areas of Western Europe, some of the hottest weather we've seen for some about three years and for others around Paris potentially ended up 12 years.

Central bound (ph) we're trying to enter picture here, the massive area of high pressure really going to deplete (ph) anything in its path. You notice the shower is really just become depleted maybe some isolated storms towards sat there latter portion of the week. But before we get there, the temperature is shooting through roof. We take a look here through the early afternoon hours. The color (inaudible) will show the oranges part in over portion of the U.K., kind of show the extent of the heat is in the forecast in the coming two days or so, where temps could be into the 30s. You factor in the heat index by the afternoon hours, temperature say 2:00, 3:00 in the afternoon could feel as hot as 34 degrees in London.

Keep in mind, you should be in the mid-20s for this time of year, Paris closing it on 40 degree when he factor in the head index.

The trend, there he goes, it's up to around 40 degrees out there towards (inaudible). It has been that hot for so many days now and you notice the forecast for at least the next 24 and so hours in Berlin, keeping it sunny, (inaudible) the few thunders storms. But pretty uniformly the hottest weather out towards the western side of the continent and then Southwest Asia, certainly, what you would expect, the mid 40s from Bagdad to Riyadh the trend with sunny skies there.

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[00:20:00]

ASHER: Welcome back, everyone. Searchers have recovered 91 bodies after a military plane smash into a residential neighborhood in the city of Medan.

BARNETT: That's right. The Red Cross says it expects the number of dead in this crashed to climb a military official says more than 122 people were on the C-130 transport plane when it left Jakarta. There no word on how many people were on the plane when it went down in the residential neighborhood in Medan, or how many on the ground were affected. The craft made a number of stops before this crashed.

Officials are also trying to figure out exactly what the cause was.

ASHER: Yes. That really is the big question.

Now, I want to bring in CNN Correspondent, David Molko. He joins me live now from Jakarta, Indonesia.

So he joins me on the phone, I should say from Jakarta, Indonesia. So, David, do we know if there are any casualties still trapped inside the wreckage, inside -- trapped to buildings at this point? Describe the scene for me.

DAVID MOLKO, CNN CORESPONDENT: Zain, what I can tell you is the scale of this tragedy just continues to grow. Originally, we thought this may have ben a military plane with just a few troupes on board, the scale continues to grow immensely, it's now a tragedy not just for the military but for the entire country.

The number of bodies recovered right now stands at 91 but we're getting reports from some of the hospitals that as many as 150 bodies have come in and that is because of the grim reality of the recovery efforts here with the plane crashed, with the twisted and mangled metal, with the chard (ph) remain -- the reality is not only here, they're recovering bodies, they are recovering body parts that relatives waiting outside nearby hospitals where several victims are being taken where the remains are being taken hoping for some word, its fear to say that there's no hope of survivors from this crashed. But they are waiting for word of their loved ones, hoping at this point that they can claim the remains of their loved one and takes them home for a proper burial. Zain.

ASHER: Yes. Just some really frightening images we're looking at on the scene, on the recovery scene right now. I understand that only the tail of the aircraft was left intact. Giving you just some respective of how badly damage this plane, how badly damage the buildings and how sort of devastating this crashed was.

Now, I know we still don't know what caused the crashed at this point but is there anything in particular about this crashed that stands out to investigators?

MOLKO: Well, Zain, the Living Daily Newspapers here in Indonesia in English, in Bahasa, in the local language are all leading with headlines, saying things like it happens again.

There was a C-130 Hercules crashed that happen back in 2009, also a military accident that went down, killed about 100 people, there are some similarities to this. And what the local reports (inaudible) the question is the age of Indonesia's plane (ph), C-130 Hercules that built and delivered in the 1960s from the U.S., questions about the maintenance record, questions about how many people were on board.

You know, it's barely typical for a transport aircraft here when it's moving supplies around the country jumping from one island to another. It's not only transport the family members but report say that sometimes they, you know, people are paying under the table to get on these flights too because it's more convenient.

One of the things that it's worth pointing out though and we talk -- we got this from the military spokesperson we talk to a short time ago. This C-130, I believe, has no flight data recorded or no cockpit voice recorder.

So the answers are going to be harder come by. They're going to be relying on eyewitness account. They're going to be relying on the state of the wreckage or the relatives though that made -- this very little (inaudible), in whatever the caused is, their family members will not be coming home. Zain.

ASHER: No black boxes, that certainly makes the investigation a lot harder. Of course, our thoughts are with the victim's families at this point.

OK. David Molka, live for us in Jakarta, Indonesia. We appreciate that.

BARNETT: Now, ISIS is threatening the Palestinian group Hamas.

BARNETT: And the video statement, the militants are vowing to overthrow Hamas in Gaza. They've lost Hamas but not being sufficiently religious.

BARNETT: Now, Hamas shares ISIS' hostility to Israel but not its pose for a global religious war. Hamas is recently crack down on jihadist inside Gaza who opposed it's trusses with Israel and it's links to the more moderate Palestinian leaders in the west bank.

[00:25:00] ASHER: Now, Hamas is not the only muslim group getting angry with ISIS.

BARNETT: That's right. A top Shia cleric in Iraq whose forces battled U.S. troops, in fact, has issued a direct and personal threat to the leader of ISIS, our Brian Todd (inaudible).

(BEGIN VIDEO CLIP)

BRIAN TODD: A grotesque scene in Kuwait. More than two dozen killed by a suicide bomber of the al-Sadiq mosque, many of them Shia worshippers at Friday prayers. ISIS claims responsibility and with that, an old U.S. enemy threatens a new one.

Muqtada al-Sadr, the radical Iraqi Shiite cleric outrage at the destruction he saw at the mosque issues a personal message to ISIS leader, Abu Bakr al-Baghdadi, "Oh, terrorist Abu Bakr, either you reform yourself or we will reform you along with your followers by sword."

PAUL CRUICKSHANK, CNN COUNTERTERRORISM ANALYST: It's a very significant declaration and it plays right into ISIS' plan.

TODD: Analyst says ISIS has been trying to bait Shia militias in Iraq like Sadr's Makhi (ph) Army to attacks Sunnis, some of whom side with ISIS so that ISIS can recruit more Sunnis.

The willingness of Muqtada al-Sadr to jump into the fight reminds Lieutenant Colonel Douglas Ollivant, a former combat officer of the days in the mid-2000s when al-Sadr and his militias were public enemy number one for American forces.

LT. COL. DOUGLAS OLLIVANT (RET.), NEW AMERICA: Al-Sadr is some, you know, famously initiated a battle with soldiers from my old unit, the 1st Cavalry Division in Baghdad in early 2004 in the Sadr City, and this began a cycle of violence with the Sadrist in Baghdad, in Najaf, and again, eventually in Basra. And there was a good four-year period from early 2004 to early 2008. We're fighting against the Sadrists, the Jaysh Al-Mahdi was a daily activity for U.S. army.

TODD: An activity which inflected significant American casualties. Ollivant says al-Sadr's fighters were tough enemies in urban warfare, affective with bombings, sniper attacks. Al-Sadr was formidable enough to have a U.S. bounty on his head and his forces are believed to already be battling ISIS in parts of northern Iraq. But can his militias realistically target the secretive security obsessed Baghdadi?

CRUICKSHANK: It would be very difficult for Muqtada al-Sadr and his militia supporters to reach Baghdadi inside Syria, also a very difficult for them to reach him in the Sunni areas of Iraq. Wherever he is, he's going to be keeping his location incredibly secret. It will only be known to the very few number of ISIS operatives. He's going to be limiting or eliminating his electronic footprint using a cell phone.

TODD: How the US officials feel about Muqtada al-Sadr now being the enemy of their enemy?

Officials of the Pentagon and the CIA wouldn't comment. While on the surface, U.S. officials might not mind ISIS having another formidable enemy. Analysts say what does worry leaders in Washington is the possibility that any escalation between Muqtada al-Sadr's militias and ISIS might blow up in a full pledge sectarian Shia versus Sunni war in Iraq. Brian Todd, CNN, Washington.

(END VIDEO CLIP)

ASHER: We're going to take quick break here. When we comeback, Greece misses a major loan payment, bank are close and people are wondering if they'll ever see their money again. We'll have details coming up.

BARNETT: Also, that a feel good story. The U.S. squared off against German in the semifinals of the Women's World Cup. We'll tell who's advancing to the finals.

(COMMERCIAL BREAK)

[00:30:00]

BARNETT: You're watching CNN Newsroom. Thanks for staying with us. I'm Errol Barnett.

ASHER: And I'm Zain Asher. Glad to be with you, let's give you your headline.

Iran, the U.S. and five world's powers are extending the negotiations another week as they work to hammer out a nuclear deal. The Whit House hopes to have an agreement by July 9th to avoid a political battle in Washington that could hinder an eventual deal.

BARNETT: In Yemen, some 1,200 prisoners were freed after rebel Houthi militants storm the prison in the southern city of Taiz. Defense officials say the majority of escapees were rebel fighters and dozens have links to al-Qaeda.

ASHER: The U.S. and Cuba are exploring diplomatic ties by reopening their respective embassies. That's the latest step in a diplomatic tour that U.S. President Barrack Obama started last year.

Havana and Washington have not had embassies in each others countries in more than 50 years. OK. We want to go now to Greece where the government has failed to make $1.7 billion loan payment to the IMF or the International Monetary Fund. European creditors rejected an appeal from Athens, one more time, but they will meet today to start discussing another bailout plan.

BARNETT: In the meantime, Greeks are rallying in the capitol both for and against staying in the Eurozone, will vote Sunday in a referendum on the country's financial future. The outcome remains unclear.

Stocks in the Asia Pacific region seemed to be shrugging off that uncertain situation in Greece right now. Manisha Tank joins us from Hong Kong with more on the Asian markets reaction.

And, Manisha, we've seen a few days of some pretty wild swings where you are in the world. Just wondering how things might be stabilizing today.

MANISHA TANK, CNN CORRESPONDENT: Yeah. Well, if you're looking at China that's been going on for weeks. But bringing it back to Greece for just a second, Errol, we'd have something very unprecedented that's just taking place. They've defaulted on the loan from the IMF. And this is the first time that a developed nation has done something like that. Unprecedented also means uncertain about what happens next. We're waiting for this referendum. We're waiting for all of this conversation that appears to be going on between the Greeks and the European commission. We're waiting to see what the upshot of all of that might actually be.

For now, though, that means anyone who had any logic wouldn't want to invest. Their own money that loan somebody else's money in a situation that is, so uncertain as it is right now. So we have seen a very cautious performance on Asian markets and it's hardly surprising.

We have some pictures of how things kicked off in Tokyo this morning and it seemed to be a pretty regular start of the day so far as in market. So as far as the market goes, there's the exchange for you.

You know, that's a fairly static picture but behind what was going on this morning in Japan whose traders there are waking up to the fact that they had a report from the Bank of Japan. This is the, well, the famous Tankan Survey. But what it showed was something really interesting, completely not related to Greece which was the fact that, in Japan, companies say, they're going to increase capital spending but one of the fastest rates in a decade.

[00:35:03] So, that's pretty good news right?

Well, let's take a look at the Nikkie 225 and we've got just the third of the percent higher on days so far. So what trade is telling us is actually those gains, potential gains that being capped by these some uncertainty that is flowing over from Europe right now. As for the other major index as we've got Australia here and so, both moving higher and quite significantly about a half of present here and more than a percent were sold. But here's the one that's been so interesting in recent weeks and as you talk about (inaudible) trade. You mentioned that this is the one in particular Shanghai composite also Shenzhen which is the a tech heavy Chinese index but let's have a look at the Shanghai Composite where in last year-to-date, we've seen this huge increase but just in the last few weeks very (inaudible), very erratic in China. But still up 31.7 percent year-to-date, but it did come off, then it went back up and this is because of the government's efforts to shore up confidence in the market right now.

So there is this concerned about contagion from Greece but many are saying we just don't know what's going to happen right now and they're waiting for the benchmarks. They're waiting for the deadlines. They're waiting for those conversations to see if anything would come over from there. And, of course, with the time zones and the timeline, we still have some time to go, Errol.

BARNETT: And I guess, another question too that's difficult to answer is how much of what we're seeing -- can we blame on Greece? I mean, you talked about, you know that pull back from China after a good year, some encouraging news out of Japan, how as all of this affecting commodities prices as well.

TANK: Yeah. Well, the obvious assumption is often to look at gold. And, you know, we always assumed gold as the safe haven asset but what we've notice with gold is that where we expected to be a few ticks higher for gold given the situation in Greece giving that uncertainty .

What you would normally see is investors want to take their money out of the merging markets and take it to places like gold because this is where you get your guarantees ready. This is the stable one.

But actually what we've seen is gold and this is a known thing, gold is more connected to what's happening in terms of the U.S. interest rate picture.

Now, so far as most analysts we talk to at the moment, it looks likely that the Fed would high rates a little bit later in the year. If we see that happening then you want to look at gold and you want to look at the outlook. But so far, as things go with the gold price some saying it could be lower right now that perhaps that tension over Greece is keeping at the level that it is. Back to you guys.

BARNETT: All Right. I think that was a bit of positive news there in all of that with respect to gold, but as you say, its unchartered territory. Manisha Tank, live for us out of Hong Kong today. Thanks.

ASHER: And you can, of course, find much more on the Greek debt crisis on CNN.com including why Greece's possible exit from the Euro matters.

BARNETT: Now, a potentially dangerous weather situation is expanding across Europe, we'll tell you why this is no ordinary heat wave.

ASHER: Plus, a wildfire wipes out and an entire neighborhood in Washington State and the weather forecast offers no help.

(COMMERCIAL BREAK)

[00:40:00]

BARNETT: We have some breaking news into CNN. Reuters is reporting that crew of TransAsia Airways plane that crashed in Taipei back in February had shut off of the working engine of to the other lost power. That's according to our source with knowledge of the investigation.

ASHER: Now, the crashed if you remember, how could you forget this was captured on videos, catch from dashboard, that crash killed 43 people on board.

Now, the latest report on the investigation is set to be release on Thursday, but TransAsia has not commented on the latest findings.

Meantime, a wildfire has abode (ph) dozens of homes in Washington State and thousands more are in the danger zone.

This is a time lapse video of the flames as they spread. Now, the cause of the fire is unknown but temperatures in the region have soared for days and the land is very dry from very little rainfall.

ASHER: Now, Western Europe, meantime, is in the midst of a brutal record breaking heat wave. Many people cooling of anyway they can.

Later today, London and Paris could see the hottest temperatures in three years. This heat wave is (inaudible) too because it hits so early in the season and the heats expected to last much longer than normal.

Folks in Europe would not be happy to hear that. The heat also becomes a problem for officials and organizers during Wimbledon this week.

Meteorologist Pedram Javaheri joins us now with more on the heat weather rose, how people can stay cool and I guess how long they going to have to deal with this.

JAVAHERI: Yes. It's going to last of couple of days and, you know, Wimbledon begin on Monday guys and it was only 26 degrees Celsius about 79 Fahrenheit. And about a hundred of people had to be treated for heat illnesses or heat exhaustion.

BARNETT: Really?

JAVAHERI: Some saying they felt faint from just at the direct sun. So what official now at Wimbledon are doing is reducing the number of expectators even for some of this big matches just to allow essentially more areas that are shaded for a fans to fit into those regions.

ASHER: But the hear wave is no way near as bad as what we saw back in 2003. JAVAHERI: Correct. Correct. For Paris, it looks like I could give nearly some of the hottest we've seen since then but what was the concern in '03 was that it was several weeks to continue, literally two to three weeks, right, just in cool off. So we know that temperature is could feel as hot as 40 degrees Celsius on center court that is very, very dangerous and what's fascinating actually is that women in the matches can actually take a 10 minute break, then men are not allowed to take a break and almost...

BARNETT: What?

ASHER: That is not OK.

JAVAHERI: It sounds like a little sexist, right?

ASHER: That is not OK.

JAVAHERI: But it is just has to do with the governing bodies that under different restrictions from women and men and that's why but it's kind of fascinating there given once it gets above 30 Celsius which it will. They're given the option if they want to take a break.

But we'll show you this because here we go with the forecast and notice the hottest temperatures as you said in three years for London. In fact, you take a look at London in particular, 34 degrees Celsius we'll be the hottest temperature for Wimbledon in Wimbledon history. Going back to 1976, the last time that was that hot 34 degrees is when that occurred. But the forecast notice, it cools off a little on Thursday afternoon and warms right back up way above the average of 22 degrees getting up to about 30 Celsius to 31 Celsius in the coming couple of days.

We still have that southerly flow that African airs surging right on into portions of the Spain and Paris, and the pattern, again, going to continue for a couple of days so people finding in any which way they can to cool off and it comes to danger situations especially when it's a long term pattern.

We've seen them all over the world. Europe certainly not immune to, yes, there are conditioning by we saw a large scale of fatalities it's about 12 years ago, so it is this possible.

BARNETT: Certainly. Be careful.

JAVAHERI: Be careful. Yeah.

BARNETT: All right, Pedram, thank you.

ASHER: Thank you.

BARNETT: And thanks to you all for joining us Errol Barnett:

ASHER: And I'm Zain Asher. Joining me now is Erin Hawksworth.

Somebody tells me you're going be talking about the Women's World Cup... ERIN HAWKSWORTH, CNN WORLD SPORT, ANCHOR: : Yes, speaking of heat, United States they we're bringing in against Germany. They are headed back to the Women's World Cup Final, one more game for them.

[00:45:00] Well, the highlights coming up next.

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HAWKSWORTH: Welcome to CNN World Sport, I'm Erin Hawksworth. And, of course, we begin with the Women's World Cup.

It was an intense match but in the end the United States beat the number one country in the world, Germany, still one more game to go for the Americans and they will face either Japan or England in the final.

This one was goalies in the 60th minute an intense match Germany with the penalty kick here, Celia Sasic takes it and her shot is wide left. She completely misses it. So fast forward, nine minutes, Alex Morgan leads the fast break and she's taking down hard in the blocks by Anike Krahn, who's given a yellow card. So Carli Lloyd she steps up to take the penalty kick.

UNIDENTIFIED MALE: ... and there as so Lloyd, blocks up shoots to go.

HAWKSWORTH: And she gets it to go, no problem as Team USA takes a one now lead. In the 84th minute more from the Americans Lloyd beats her defender as it served into box and then Kelley O'Hara she is there for that tap in goal. So USA wins it two-no, the Americans are hoping for their third World Cup crown, could it be a possible rematch of the 2011 World Cup Final, remember that? Well, we'll have to find out who wins tonight match between Japan and England.

And we won't have to wait and find out who will play in the COPA America Final that is already set. Argentina will face tournament host Chile. Argentina had to beat Paraguay to advance and they were in blistering form.

We pick it up in the 27th minute, its already one-no Argentina, Lionel Messi with the through ball Javier Pastore and from just outside the 18th he gets it to go.

20 minutes later its 2-1 Argentina, Pastore plays a beautiful through ball to Angel Di Maria. He finishes is it, 3-1 Argentina and guess what? They weren't done, they added one more to make it 4-1 and then look, Sergio Aguero beats the defender, and that makes it 5-1 Argentina would, you believe it, they actually added one more, yes, 6- 1. It ends for Argentina.

To Wimbledon where temperatures reach just above 30 degrees Celsius, it was the hottest day of the year for Britain and today supposed to be even hotter. Fans created shade wherever they could and as you can imagine, those water fountains they were quite popular.

The U.K.'s National Weather Forecast who predicts temperatures could sore to 33 degrees Celsius that's not too far off from the tournaments record of 34.6 which was recorded back 1976.

Meanwhile, on the court with our first major shock of the tournament as the number three seed from Romania Simona Halep reached the semi- finals last year has already made her exit on just a second day.

[00:50:07] She was up against the 106 rank Jana Cepelova and they seems to be going according to script for Halep and she won the opener but her opponent bounce back and won the next two. So Halep presses out 5-7, 6-4, 6-3.

Now, a year can really feel like a longtime in tennis and just as Eugenie Bouchard last year the young Canadian really made a name for herself. She reached her first ever Grand Slam Final in this time it was a shock lose to the world number 117 from China Duan Yingying. It was her 11th set back in her last 13th matches she has been struggling.

Now, one player who did not lose is defending champ Petra Kvitova who won in just 35 minutes that's all it took, the Czech made the unusual decision to take a break from tennis for about six weeks but she's back and better than ever.

He records of clinical victory over the Dutch player Kiki Bertens in fact Kvitova only dropped one point on her serve and she advances her dreams of 3rd Rosewater Dish those hopes are still alive and well for her.

All right lets get to the man, Roger Federer is up to a hot start to his quest for an eight crowned at the All England Club. Federer looking for his 18th Grand Slam Title and he faced 88th rank Damir Dzumhur and the Swiss his not fooling around. He won in straight sets. This was a Damir grass court debut and it was a short one, just over an hour the dismantling was done 6-1, 6-3, 6-3.

Meantime, Rafael Nadal needed a bit longer to defeat Brazilian Thomaz Bellucci. Rafael had to deal with temperatures that hit around that 30 degrees celsius mark, but you know what? The Spaniard claim that the dry conditions actually gave him more attraction on grass and it showed he got rid of Bellucci 6-4, 6-2, 6-4.

As for Andy Murray he squared of against Mikhail Kukushkin the 2013 Champ, book his place into the second round 6-4, 7-6, 6-4. So Murray he was just too good for his 59th rank opponent the Scot was a losing finalists at this years Australian Open and his looking for his third major tittle and he got it and with that CNN World Sport will be right back.

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UNIDENTIFIED FEMALE: Were back with the English Primary League and confirmation that Leicester City have sacked manager Nigel Pearson.

The news comes just over a month at their last through offenders last season strong to avoid relegation winning seven of the last 10 matches to stay alive. Leicester's executive say the move stems from a breakdown of the club's working relationship with Pearson. Got to get along with those execs.

Meantime, 13-time Primarily League Champ Manchester United it have reported tabled a whopping $44 million bid for Real Madrid Sergio Ramos. The Spanish international has made over 400 appearances for Los Blancos but he hasn't been offer the contract extension that he wanted in order to stay.

So he could move over the Primary League. The red Devils are also heavily link with Southhampton midfielder Morgan Schneiderlin. And we can tell you that two-time World Player of the Year Ronaldinho looks to be headed to the Turkish Super League. The Brazilians were reportedly signed for newly promoted Antalyaspor where he link up with former Barcelona teammate Samuel Eto.

Meantime, FIFA has revealed its outgoing president; Sepp Blatter, will not attend Sunday's Women World Cup Final in Canada. It will be the first time since the 79-year-old Swiss became president back in 1998 that he won't be handing out the trophy to the winners. The Association General Secretary Jerome Valcke won't be in attendance either and comes in two separate continuing investigations into alleged FIFA corruption.

Now in the statement, FIFA says, "Due to their current commitment in Zurich, the FIFA President and the FIFA Secretary General will both remain at the FIFA head quarters".

And speaking of the Women's World Cup it was a gutsy performance from the United States, Hope Solo, in the U.S. defense extended its scoreless streak against the top German attack. CNN Paul Vercammen, he was there with the group of American fans in California as they watch their team advance to the Final in Vancouver.

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PAUL VERCAMMEN, CNN CORRESPONDENT: So you (inaudible) in Santa Monica because the U.S. team is earn the right to go up the coast, way up the coast to Vancouver and the World Cup Final. Yes, the two-nothing victory but it was not without nail-biting moments.

UNIDENTIFIED MALE: None of us thought it was a penalty but the German, the women Sasic, I believe her name as she folded under the pressure. And we're happy about it.

VERCAMMEN: USA about to take. It's been a longtime since U.S. been the champions of the world. So let's do it right now. Hopefully we get the panel will pay back. England, they didn't beat us in 1776, they're not going to beat us now.

UNIDENTIFIED MALE: USA, USA, USA.

So Hope Solo within that shoutout another clean sheet. And certainly some of the fans were three sheets to the wind. Not these fine gentlemen, of course, they plan to come on back here and root once more for the U.S. in the World Cup on Sunday.

Paul Vercammen CNN, Santa Monica, California.

HAWKSWORTH: Thank you I'm sure everyone was completely sober at that watching party. Thank you so much for joining us. I'm Erin Hawksworth. We'll see you next time on CNN world sport.

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