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Computer Glitches Halt NYSE Trading. Greece Requests New Bailout; China Attempts to Stop Stock Slide; Pope Francis Continues South America Tour; United Airlines Computer Issues

Aired July 8, 2015 - 15:00:00   ET


HALA GORANI, ANCHOR AND CORRESPONDENT, CNN INTERNATIONAL, LONDON: Tonight the world`s largest stock exchange grinds to a halt.


Trading in New York is set to reopen soon after some massive technical problems. While a major website and airline also experience some glitches.

Some planes were grounded today. And also this hour, Greece applies for more money, but with a new deadline looming, will Europe hand over the

cash? Also Chinese markets take a major tumble, triggering fears of panic selling. We will be in Shanghai. And the Pope heads to the world`s

capital city. But why is the Pontiff only staying in town for four hours? We will explain.


Hello, everyone, I`m Hala Gorani. We`re live at CNN London and this is The World Right Now.

Some major computer problems halt trading at the New York Stock Exchange. They take down the Wall Street Journal and ground all United Airlines

planes for several hours. It has been a chaotic day for traders and travelers. Now the president of the New York Stock Exchange is telling

CNBC that markets will reopen soon. But trading was suspended for more than three hours and I understand -- I`m just going to get confirmation of

this. We are still suspended at the NYSE, correct? Correct. We still do not have trading happening at the New York Stock Exchange, though the

reason you are seeing the Index vary here is because stocks are still being traded on other exchanges. It`s the New York Stock Exchange system that is

not operating right now. We`ll bring you, by the way, the latest on when it does reopen.

However, I was mentioning at the top of the hour two other big computer problems. The Wall Street Journal was shut down.


No word yet on what caused the glitch that took down the news site. It is operational now. However, I was mentioning United Airlines as well. Now

it had some big issues today. Look at the lines at the airports. Planes were grounded. We understand they are back on schedule, but the airline is

describing the problem as an issue with a router.

Maggie Lake joins me now live from New York. Maggie, so we are expecting the New York Stock Exchange to be open for the close, correct?

MAGGIE LAKE, BUSINESS ANCHOR AND CORRESPODENT, CNN INTERNATIONAL, NEW YORK: That`s right. They`re trying really hard, Hala. That is not a guarantee

at that point, but it could happen any minute really. The president of the NYSC saying we want to try as hard as we can to get open for the close, but

-- and these are his words -- he told his team take your time and get it right. They don`t want to open and then have something go wrong and then

not go smoothly. This is the most important, one of the busiest periods, the open and the close here. One of the busiest periods of trading during

the U.S. session. You can expect there to be even heavier volume today. That want to be able to handle it. They`re not going to have a traditional

open. They`re going to have just hit the floor running.

They`re going to resume because, as you mentioned, and that is why -- for the viewers watching -- why we`re seeing the DOW move, although not by

much. Although the New York Stock Exchange was halted, NYSC listed stocks, those big names that you know, Apple, Microsoft, GE, they have been trading

throughout the day on those other indices, NASDAQ being the one we recognize the most, but also other electronic platforms. So because they

have been trading elsewhere, they are just going to resume trade at the NYSE. So we don`t have any word yet. There is not an official open. I

think as soon as they get there, they`re going to try to make it happen. The traders will get a quick notice that it`s going to happen, and then we

will see a lot stronger moves on the DOW then. But they`re trying hard.

One thing I will say, Hala, from everything we are hearing from the people on the floor, there is no panic. They are all treating this in a really

professional way. The fact that stock trading has continued -- you don`t see big disruptions or dislocation in price and volume, although lower is

still there -- they say speaks to the strength of the system. That it is fragmented, which some have complained about, is actually proving to be a

safety valve and a safe haven today. So trading continues. The NYSC however still halted as of now.

GORANI: But are -- do we know what this is about? I mean what caused this computer glitch? Because this isn`t just 20, 30 minutes. It`s more than

three and a half hours now and it`s unsure whether or not we`ll be open for the closing bell.

LAKE: That`s right. And they say, by the way, if we`re not open for the close, we will most certainly be open for business tomorrow. We don`t know

what it`s about. They`re calling it technical. They`re trying to look at if some sort of software rollout, maybe some miscoding, had something to do

with it. There were some early indications at the beginning of the day -- and Alison Costa (ph) can fill us in on this on more detail from the New

York Stock Exchange -- there were some indication there might be some problem with certain stocks. But no one expected it to trigger an entire

system shutdown. So they`re going to be taking a real hard look at this. Hala, these companies spend millions of dollars having backups to backups.

Clearly this did not work out the way they wanted it today. Not a good day and not a good day to hit the market that is already nervous about so many

other things.

GORANI: Because there are issues of course -- we`re going to discuss this a little bit later in the program -- with China as well, Greece as well.

We`ll be talking about all of that. Maggie Lake, thanks very much. We are also keeping close watch today on that market meltdown in China that is

causing concern around the world. If you look at the numbers, they are scary. The week`s long selloff deepened today. The benchmark Shanghai

composite fell nearly six percent on the session. Here`s some context. The index has lost about a third of its value since June 12th. I`m looking

at the exact figure here. Thirty-two percent lower for the Shanghai composite, really falling off a cliff, since June 12th. Across the board

the major Asian markets are down. There are growing fears of contagion. We will go to Shanghai in a bit.

Now long before China started worrying investors, there was Greece. The country is officially asking for a third bailout right now. The Finance

Ministry promised some concrete proposals to its creditors, to its lenders, no later than Thursday.

You can hear a mixture of many things going on here. The Greek Prime Minister entered the European Parliament in Strasbourg, Alexis Tsipras. It

erupted in cheers, but also some boos here and there as the man of the hour arrived to address European leaders. They don`t all sound supportive. The

Prime Minister, Alexis Tsipras, demanded an agreement with Greece`s neighbors and expressed confidence that his country can meet its

obligations. He also mentioned the suffering of ordinary Greeks.


That comment drew a sharp response from the former Belgian Prime Minister who now chairs the liberal group of European lawmakers. Listen to the line

from Mr. Tsipras and the response a few minutes later from Guy Verhofstadt.


ALEXIS TSIPRAS, GREEK PRIME MINISTER (through translator): Let`s not forget that for the last years the Greek people have made a serious effort

for adjustment. A very harsh and difficult process of adjustment. But this has exhausted the resilience and the patience of the Greek people).

GUY VERHOFSTADT, BELGIAN PRIME MINISTER: I tell you and you started and you said -- and it is true what you said. You said the Greeks did enormous

efforts, and that`s true. But the problem is not there. It`s that the Greek political class didn`t do enough themselves, in the case of Greece.

That is the problem today. And I`m angry, I have to tell you. I`m angry because you are talking about reforms, but we never see concrete proposals

of reforms.


GORANI: Well, it got heated in the European Parliament in Strasbourg. It`s usually sleepier there it has to be said, in that part of France,

where the European Parliament is located. Richard Quest is in the heart of it all. He is in Athens. And, Richard, we were hearing yesterday from

top-level government officials that the Greeks did have a plan to present to the lenders, but it appears as though that didn`t happen and now have

until Sunday. Will they deliver?

RICHARD QUEST, ANCHOR AND INTERNATIONAL CORRESPONDENT, CNN, NEW YORK: They don`t have `til Sunday, they have until tomorrow night. `Til Thursday

night, midnight, is my understanding, because the Eurogroup wants to have Friday to consider what`s being said, and then it goes to the full... It

won`t actually be -- I don`t see the full EU summit deciding one way or the other. I think what will happen is that by Friday we will know whether or

not the Greeks have done sufficient -- it`s we`re into this, you know -- have they enough? Is it enough and is it sufficient to get the Eurogroup

to agree to start negotiations, full throttle, ESM negotiations, Hala, and with that they need also the short-term relief so that they can pay off the

debt to the ECB.


We haven`t an Alice in Wonderland. We have got to the position where are they are negotiating lending Greece money, or they will be, lending Greece

money so that they can rob Peter to pay Paul.

GORANI: So what are the likely scenarios now moving forward. Because to be quite frank with our viewers, it was a bit chaotic yesterday. With on

the one hand there`s a proposal, maybe not, maybe there is. Maybe it`s a proposal requesting a short-term extension. Maybe it`s a long-term deal

that`s being negotiated. Maybe it`s Thursday, maybe it`s Sunday. Which is it? What is the most likely scenario moving forward now?

QUEST: All right. We`ve got to our usual three scenarios. And those three scenarios haven`t changed much in the last day or so. The first

scenario, of course, is that they actually do manage to do a deal. If that happens, they do a deal and then Greece manages to get the money. In the

short term no default to the ECB and they manage to negotiate a longer-term deal, two to three years, tens of billions of Euros, more austerity on the


The other option, that whatever they come up with just isn`t good enough. And on that option, then we are looking at Grexit, and what surprised me in

the last 24 to 48 hours is that more and more people are using the Grexit word. People who wouldn`t have said it before are now saying there is a

plan for Grexit.

The final one of course is that they agree to keep talking. That is a non- starter. Donald Tusk made it clear. He said anyone who thinks it`s going to happen that way is na

He said there is a deadline. If that deadline isn`t met, then it really is curtains. Now the credibility of Tusk, of Juncker, of the Eurogroup,

there`s a whole lot of them, Hala, is now on the line. This is it. And the problem -- and I`m going to leave you with this one thought -- the

worst of all, and it`s possible, Hala, it`s possible, is a Euro fudge. That they give just enough that everybody agrees that this is enough to

keep talking and to do a deal. But it too -- to come back in six months. It`s possible and Lord help the Eurogroup if that`s what they do because we

will be back again in six months from now.

GORANI: All right. I have a suspicion that this scenario is not the most unlikely one. But the good thing, Richard, is we will know soon enough.

We will know in 24, 48 hours what is going on.

QUEST: Tomorrow night.

GORANI: Right, exactly. So at least we`ll some sort, some sense of, of the way forward after some times, some murky situations and scenarios.

Richard, we`ll see you at the top of the hour on Quest Means Business. Thanks very much for joining us.

And Karl-Theodor zu Guttenberg, the former Federal Minister for Economics in Germany, a former Defense Minister, he in fact served under Chancellor

Angela Merkel, and he joins me now live from our New York bureau. Sir, thanks for being with us. What, what do you think right now Chancellor

Merkel -- what calculations is she making at this stage of the game.


laid out by Richard.


And for her it`s a bit -- a choice between, as we say in Germany, between the plague and cholera. On one hand, she could be accused of being the

gravedigger of the Eurozone by pushing Greece into Grexit, and many will accuse her of having just more or less just formulated an option where

others will follow. The other option is to keep them in the boat, and you are actually also destroying a part of the Euro -- Eurozone and a core

thought of the Eurozone and the European Union, which is stick to the rules, behave to a certain extent. Yes, you can count on solidarity, but`s

it`s not all about solidarity. It`s not only a one-way road. So for her it`s extremely hard and she had to fight against her only party as well,

who is actually in the meantime very, very skeptical to go for a third package deal.

GORANI: So, but is...? I mean I suppose the big question with this deadline looming is is Germany willing to let Greece go? Or will they find

a solution, as imperfect as the solution might be?

GUTTENBERG: So my personal point of view is I would like to let them go and have a controlled Grexit. But I don`t think that will happen. I think

that the Chancellor will do everything to keep them in the shaking boat and also to keep the impression that the Eurozone, as such the members of the

Eurozone, are united. If you just follow the last couple of hours, we see that there are so many voices within the Eurozone. So some of the Baltic

states say this cannot go on like it does right now. Others say, well, like France and Italy, oh, well, let`s keep talking, let`s try to find a

compromise. And in the midst of that everyone`s looking at Angela Merkel, what will her decision be? And we have heard a lot of times now already

that this is the last, last chance, the very last chance, the very, very last chance and...

GORANI: Is this really the last chance? That`s the question, because we heard deadline after deadline being missed. This time we`re hearing from

European leaders this is it. Curtains on Sunday if we don`t have a deal. Do you believe that?


GUTTENBERG: I don`t personally because we have found always ways out of the very last chance already for the last couple of years. And it`s the

strongest word so far we have heard, but nobody, as I said at the beginning, wants to be accused of actually having obliterated a wonderful

European idea. And the last one who wants that is the Chancellor.

GORANI: Yes. Now, even the IMF, and we, we learned that with IMF documents concluding that Greece wouldn`t be able to rebound without paying

off its debt completely, without debt relief. Why is Germany, some people are asking, being so intransigent?

GUTTENBERG: Well, Germany is in, in a very difficult role because we read, for instance, today in a big American paper that Germany should be a bit

more conciliatory because we have been helped out after World War II quite significantly as well. There is a point. On the other hand, there`s still

a belief in the political class in Germany that they people don`t know yet already that it will be extremely hard for any Greek government in the

years to come to pay back anything we have given them so far. So I think we should actually be true to the people and tell them the money is lost

and let`s talk about a restructuring of a debt as well.


GORANI: Karl-Theodor zu Guttenberg, thanks very much. I have to jump in because apparently -- and you`ll be happy perhaps to hear this -- the New

York Stock Exchange has reopened. So let`s go live to New York there, to get a sense of what`s going on there. I believe we have the big board at

least and perhaps a shot of the trading floor. But the New York Stock Exchange which was halted, halted trading there for more than three and a

half hours. We had been told by officials there at the NYSC that trading would resume before the close. They have kept their promise on that one.

The close is in about 45 minutes` time. Right now what we`re seeing is the DOW Jones Industrial Average down about 200 points, more than one percent

lower, at 17,579. The Index was continuing to trade of course during the suspension because the stocks that the New York Stock Exchange -- that form

the New York Stock Exchange and the main Index, the Dow Jones -- are traded on other platforms. Maggie Lake is joining me now from New York once

again. So we`re back, Maggie.

LAKE: We certainly are, although we`re going to watch this, Hala, because I have a feeling that things are moving slowly, which is probably fine, by

the NYSC, is turn (ph). So we`re going to want to watch for these very important 45 minutes here. Traders were saying earlier there`s going to be

two key tests today. Can we hit the ground running? Can we get this, you know, trade resumes in an orderly fashion? Make sure everything`s working

smoothly and that all the technical glitches that were holding us back before, the problem that shut us down in the first place, were cleared.

And then the other thing is can we handle the volume? This is the busiest time of day, along with the open. It`s an important day anyway. Get on

top of, put on top of that the fact that there was a lot of volatility. Remember markets were down in excess of 200 points before this happened.

So you have nervous trade and the fact we`re coming off of this glitch.

Can they handle the volume? So it seems like they are opening in an orderly way. The handling the volume part we still want to see whether

that can withstand. So we can`t call it, open and everything fine, I think until we hit that close. But, listen, the fact that they reopened again, a

great relief. They did not want to have to close today without being able to reopen and go through an entire cycle of global markets, and all the

nervousness that would cause, and have to wait `til a 9:30 open again on Thursday. So this is good, this is what they wanted to achieve. The

entire day had been really working to that.

They are going to probably try to spin this as, listen, this wasn`t great, we feel bad for customers, we apologize. But the fact that stocks kept

trading, that volume hung in there, is a testament to the strength of the U.S. financial system. Other people are going to say, after everything we

know and what is at stake, this is a system that is clearly still vulnerable. So expect those two spins to happen as we watch this last 45

minutes, Hala.

GORDANI: Right, and we`re seeing losses accelerating a bit here. We`re down 226, one and a quarter percent. Maggie, thanks very much. We will be

speaking again with you soon.



Coming up, more backlash over Donald Trump`s controversial comments. The Professional Golfers Association is the latest to distance itself from the

Republican presidential hopeful. And later Pope Francis goes off script as he winds up a visit to Ecuador. We`ll have details and tell you where he`s

headed next. He`s headed high up somewhere when The World Right Now returns.



GORANI: Welcome back. Pope Francis is on his way to Bolivia.


It`s the second leg of his visit to some of South America`s poorest countries. He wrapped up a trip to Ecuador just a few hours ago, meeting

with clergy at a shrine in the town of El Quinche. The Pope went off script, putting aside a prepared speech, when he addressed the thousands of

worshipers there. He spoke about the importance of the Virgin Mary to Jesus` ministry and urged the crowd to always be grateful to God. The Pope

will spend a couple of days in Bolivia, but only a few hours in the capital itself. Shasta Darlington is in La Paz and explains why.

SHASTA DARLINGTON, INTERNATIONAL CORRESPONDENT, CNN, SAO PAULO: La Paz celebrating the coming of Pope Francis. But at 3,600 meters, nearly 12,000

feet, how will the 78-year-old Pontiff hold up? Concern about altitude for Pope Francis will begin as soon as he lands. Here at the airport there is

an emergency infirmary, medical care, and oxygen tanks for passengers rushed in everyday with altitude sickness. But according to many

Bolivians, the much better solution can be found right here at one of the local markets. Piles of tomatoes, cheese, and eggs. And next to the dried

chilies, cocoa leaves.

Dona Maria chews the leaves every day. Que usted piensa: Do you think Pope Francis will try it? He is going to chew it, she says. He`s here,

he`s going to chew it. Further down the road, Dona Pimitiva shows me how its done. It`s for hunger, she says. It gives you energy, and for

altitude. She says it`ll get rid of any hunger, make me feel stronger, and hopefully help with this headache. And it does help with my headache.

Then there`s the tea, or mate, made of cocoa leaf. Now cocoa leaf is the main ingredient of cocaine, but chewing and drinking tea are considered

safe and legal here. The Vatican tried to minimize the potential effects of altitude by limiting Pope Francis` trip to four hours. But that hasn`t

dampened the spirit here in the high plains of Bolivia. Shasta Darlington, CNN, La Paz.


GORANI: Gave her energy, I`m sure. The New York Stock Exchange is back up and running.


We brought you that news moments ago, but it comes after a lot of confusion and frustration on Wall Street. We`ll get a lot more on the glitch next.

What happened?

And the roots of the Greek debt crisis go deep. We`ll take you to a factory town that once offered opportunity and jobs. Now unemployment

there is 30 percent.




GORANI: Welcome back. Here`s what`s happening on Wall Street. This is the big board. These are live numbers. We`re down 230 points, just about.

It was a chaotic day today. A quick look at the NASDAQ and S&P, they were not affected. They are both down as well. There are big concerns about

China, Greece, of course isn`t helping, and here`s Europe across the board. Of course, Europe closed before any of the computer chaos happened in New



Alison Kosik has been reporting from the New York Stock Exchange all day, and she joins me now live with more. Alison, we`re back up and running I

understand, but do we know what caused this mess?

ALISON KOSIK, BUSINESS CORRESPONDENT, CNN, NY: We do not know what caused the mess. What we do know though is that the New York Stock Exchange

opened for business I`d say about 15 minutes ago to sort of a whimper. I saw a whimper because not a lot of market orders are coming in, but the

fact of the matter is and what`s good about the situation is is the floor is now open for business. The hope is that it`s glitch-free until the

closing bell at four o`clock where the closing numbers can come in. Hala.


GORANI: OK, so how has that affected -- I mean how has this big computer problem affected trading, volume? Are we likely to see any negative

aftermath from all this right now?

KOSIK: Well, I didn`t see the market jump either way when the New York Stock Exchange opened. As far as the volume actually coming in here to the

Exchange, it`s extremely light, only because a lot of customer aren`t putting their market orders into the New York Stock Exchange. Because the

Stock Exchange has essentially had its doors closed most of the day, we are seeing these market orders go elsewhere. And you see, you see a lot of

these traders sort of looking at their screens, waiting for things to connect again. And it`s happening very slowly. But they say it`s

important to note that it is happening, that the Exchange is open. Because you have to remember, it was important that the Exchange -- traders tell me

-- it`s important that the Exchange opened so it could close. Meaning that a lot of these stocks, a lot of these mutual funds that come through here,

they need those closing numbers and it would have been -- it would have been a more difficult situation, they say, if the market didn`t open and

close, and that`s essentially what happened here today.

GORANI: OK, Alison Kosik at the New York Stock Exchange, thanks very much. They`re back up and running. We`ll see what happens at the close as well,

and I`m sure there`s going to be a lot -- a serious post-mortem here going on today at the New York Stock Exchange, what exactly happened there.


Because this problem wasn`t just a few minutes, it was over almost four hours of suspended trading in New York. And this is the world`s biggest

stock market, so it wasn`t a small problem and it`s one that they`re going to try to avoid, I`m sure, at all costs.


We`re going to take a quick break. When we come back, computer glitches not just at the New York Stock Exchange, all over the place today,

including one that grounded United Airlines for a while. And later, we`ve all taken a selfie or several, but we`ll tell you what Russian officials

are doing to combat a rash of dangerous, sometimes even deadly, selfies.



GORANI: Welcome back. Here`s a look at your top stories. Trading has resumed ahead of the closing bell on the New York Stock Exchange. A

computer problem shut down the market for nearly four hours today. You can see the numbers there, down 253. The U.S. government is saying there`s no

indication that this was a cyberattack on the systems there.

And it is official, Greece is formally requesting a third bailout. Banks in the country, though, will remain closed at least through Monday.

European leaders have given Greece until midnight Thursday to deliver some concrete proposals of reform in exchange for cash. Sunday is the deadline

for a larger deal on the Greek debt crisis.

Another nosedive for Chinese markets today as a week`s-long sell off deepened. The benchmark Shanghai composite fell in a single session nearly

six percent today. The index has lost about a third of its value since the high on June 12th.

Pope Francis is all done with his visit to Ecuador and is now on his way to Bolivia. It`s the second leg of his South American tour. The Pope visited

a nursing home in Quito earlier today and he also met with clergy at a shrine near the capital.


More now on our top stories. A glitch that halted trading on the New York Stock Exchange for hours. Computer bugs disrupted trading in the past.

Also, there were big problems if you were traveling with United Airlines today. It had several problems with its computer system, and it`s had some

major issues since its merger with Continental in 2010. Samuel Burke is digging into those stories at the moment and joins me now live from New

York. Let`s first talk about United Airlines. They said something was wrong with their router. What is -- what does that mean exactly?

SAMUEL BURKE, BUSINESS CORRESPONDENT, CNN, NEW YORK: Hala, I spoke to one security expert who compared it to the router that you have at your home.

We`re used to wireless routers and it`s a bit different. Your wireless router at home, it`s more of a middleman, bringing content from websites to

your home, but it`s similar in the sense that it`s transmitting information. Though for this airline, probably what this router was doing,

a much bigger one, was sending out lots of information from the corporate center, the corporate communications center, sending out to the airlines

applications, reservation systems, flight paths, etcetera. And there was, looks like according to United, some type of problem with their router.

Yes, a backup system was kicked in, but that only helped the flights in the sky.


So what the security expert said to me is that this just shows how over- reliant we are on computer systems and that, even if this wasn`t a hack, it shows that, if there were a major hack, we don`t have enough backup systems

to help us. So a problem with the router, at least that`s what it looks like for now, Hala.


GORANI: And now let`s talk about the New York Stock Exchange. This isn`t the first time that there`s been a major suspension. I mean it happened

with the NASDAQ, it`s happened even years and years ago with squirrel gnawing through electrical wires. This is the -- this is not a first.

BURKE: Animals, humans allegedly, and computers.


Let me just walk you through a little bit of this history, going all the way back to 1987, as well as 1994. Problems caused by squirrel, literally

interrupting trading. In 1987 a squirrel was carrying a piece of aluminum foil which caused a power outage for about 40 minutes at the NASDAQ. That

squirrel lost its life. Then in 1994 a squirrel drove the market nuts again, as the L.A. Times put it in a headline, chewing through a wire.

NASDAQ Exchange stopped for about 37 minutes.

Flash forward to 2010, that was known as the flash crash. I think I remember you reporting on that, Hala. The Dow Jones plunging nearly 1,000

points, briefly erasing roughly one trillion in market value. Well, since then, a U.K. trader has been arrested for allegedly causing that flash

crash. Prosecutors say the trader used illegal trading techniques, and it`s just all highlighted the dangers of so-called computer-generated high-

trading frequency.

And then flash forward to 2013, just a couple of years ago. The NASDAQ trading halted for three hours and 11 minutes, apparently because of

connectivity issues, which sounds similar to some of what we`re hearing today. So it really can be anything from squirrels to allegedly human

beings to just plain old computer issues. We all have to go and reset our routers sometimes.


GORANI: Right, sometimes you just have to Control Delete, as long as it`s not human being gnawing through electrical wire. I think when that day

comes we`ll all be in big trouble. But the lesson we learned today is that, even though we don`t know what, what caused the problem, trading

continued on these big stocks of the New York Stock Exchange on other platforms.

BURKE: That`s right. So there is some type of backup system. Throughout all this the number were changing slightly, so there is a little bit of

backup. But every expert I talked to today just emphasized over and over again, we need to prepare for the big one, as a lot of them like to call

it. Because we saw what can happen, how a company can be really brought to their knees like we saw with Sony, which the U.S. government alleges was

North Korea behind that hacking. So this is maybe a test run, a good way for us to see that we need to invest more in communication and in backup

servers, in the event that this is major hacking the next time around.

GORANI: All right. Samuel Burke in New York, thanks for that. Let`s dig a little bit deeper into what happened at the New York Stock Exchange, and

also of course discuss the situation in Greece. Stephanie Flanders, Chief Market Strategist for the U.K. and Europe at J.P. Morgan Asset Management

joins me now. Stephanie, nice to have you here. Very briefly, on the New York Stock Exchange, there was no panic?

STEPHANIE FLANDERS, CHIEF MARKET STRATEGIST, J.P. MORGAN, U.K. AND EUROPE: No, there was no panic, and I think that it`s a reminder maybe not just

that we have to think about these technical issues sometimes, but also that as a platform it`s only I think about 13 percent of trades now on the New

York stock market are actually using the New York Stock Exchange. So everything else could pretty much carry on as normal and....

GORANI: This was circumvented easily and volume, by the way, really didn`t suffer too much.

FLANDERS: No, we didn`t see -- I guess there was probably a moment -- we know there was a moment -- where people were questioning is this part of

something we should be worried about. And then the moment it was clarified I don`t think it was an issue.

GORANI: But we`re not also the, the -- we`re not seeing panic with regards to Greece really. I mean right -- it, it`s a down day today, clearly. But

really when the very negative Greece headlines came out, still we weren`t seeing panic. Why not?

FLANDERS: No, I think it`s sort of controlled nervousness.


I don`t think when you talk to people in the markets and elsewhere, no one will say, hand on heart, they have no worries at all that something nasty

might happen in the next few weeks if you do see Greece tumbling out of the Euro. Not just to Greece, which we know will be terrible for Greece, but

in markets. But no one feels completely confident, but everything we look at, the potential avenues for contagion look to be much weaker than they

were a few years ago. The tools for dealing -- excuse me, the tools for dealing with contagion also seem much stronger. So there`s plenty of

reason for people to be reassured and for the markets not to be panicked every day, even with these headlines.

GORANI: But are markets on some level pricing in a Greek exit now?


FLANDERS: You would have to think at this point that people were pricing in. You never know. I was looking back on the various papers that we`ve

written at J.P. Morgan and elsewhere, thinking about the decision tree. You know, if this happens, trying to game out what might happen in Greece,

going back the last few months. We`re on the Grexit side of the decision tree. It now looks much more likely than it did a few weeks ago and

probably more likely than not. So you`d have to imagine that people are expecting that to come.

GORANI: It`s more likely than not is...

FLANDERS: It`s more likely than not.

GORANI: ...what top economists are, are right now...?

FLANDERS: More likely than not, we would say. But if you think about how would you change your investment position now, on the basis of that

knowledge, when you`ve probably pretty much cut your exposure to Greece as it is? You know there`s very little private investment exposure to Greek

assets at this point. So it`s not clear that, you know, if we were pricing in a Grexit, it`s not quite clear...

GORANI: So a few billion, Greek -- I mean Germany and France, still those banks...

FLANDERS: Well, the big losses, yes. There`s a some -- still some exposure to the banks, but of course the major losses are going to be felt

by European taxpayers and by European sovereign governments because it`s the public sector that now holds the vast majority of Greek debt.

GORANI: And what would the impact of a Greek exit be? I mean if markets are saying there`s no panic because really the exposure to private banks is

a lot lower than it was in `08 and `09, right now taxpayers will pay for institutions that won`t be paid back because Greece will default on its

obligations -- so what would the impact on ordinary people be at this stage?

FLANDERS: Well, so you would have a huge legal and bureaucratic argument around how those debts will be borne. The EC -- European Central Bank will

face a serious issue in terms of its balance sheet, which would have to be resolved. It`s not supposed to take any loses. It`s not supposed to be

able to have any loses. But, you`re right. In terms of people on the street or ordinary investors even, it`s hard to see how there would be a

major impact from this. And certainly not one that would derail the economic recovery that we`re seeing. There`s been a lot of good news out

of the European recovery of the last few months. It hasn`t been derailed by things, funny things, happening in the U.S. And it`s not being derailed

so far by worries by Greece.

GORANI: And those who criticize the lenders say really what the bailout did -- yes, of course it injected a lot of money into the Greek economy --

but mainly it sort of shielded the economy, it shielded the banks from the negative impact of a possible default, and it didn`t really inject that

much cash into helping the economy rebound or create jobs.

FLANDERS: Well, that is one of the argument, one of the stronger arguments that this Greek government has and maybe one of the reasons why this very

extreme government came to office. You can certainly say that the public bailouts really helped private sector creditors get out while the going was

good, if you like, and....

GORANI: And took a bit of a loss, but it wasn`t a disaster.


FLANDERS: And I`ve sort of thought over the years it`s a shame to call something a bailout, makes people think it`s a handout, when we know that

actually the debt has gone up massively. None of this money came for free. It all came -- it came with conditions attached, but also it came in the

form of a loan. So all this support, as you say, has just increased the debt for Greece, but reduced the exposure of the private sector.


GORANI: Right. And Stephanie, now you -- it has to be said -- and I actually predicted a yes as well, and I believe you did as well on the

referendum, right?


GORANI: You were surprised that the Greeks voted no, and it was a landslide result.

FLANDERS: It was really surprising to a lot of people , to -- certainly to me, because we were also looking at polls that have consistently said the

Greeks wanted to stay in the Eurozone, they want to be in the European Union, and I think people had underestimated just the sheer frustration

there was with the way the negotiations have gone. But as I say, one -- as I said earlier, once you have that, once you had that result of that

referendum, everything became a lot harder. And certainly the good will around the table now in trying to reach this deal in the next few days is a

lot less than it was a week ago.

GORANI: Well, allegedly we`ll know in 24 hours, but you know we`ve heard this...

FLANDERS: Yet another deadline.

GORANI: Yet another deadline. We`ve seen those come and go. Stephanie Flanders, thank you very much. We really appreciate your time this

evening. Great talking to you.


And this crisis in Greece hasn`t been just a recent phenomenon, it`s been going on for years now and the downturn has taken its toll on the Greek

people. Phil Black has visited the Chalkida, once a thriving economic powerhouse, now a town with one of the highest unemployment rates in all of


PHIL BLACK, INTERNATIONAL CORRESPONDENT, CNN, LONDON: In Greece, even economically depressed, industrial towns are very beautiful. This is

Halkida, about an hour`s drive north of Athens. But the stunning scenery means little here. These are people without ATM cards, mostly pensioners,

lining up for hours, yelling, shoving each other, desperate to get inside a bank. This woman`s watch was broken in the crowd.

Look where we are today, this man says. We`re being humiliated before the world. But this community`s economic pain began long before Greece`s

recent cash shortage. Halkida once thrived on local industry. Now factories surrounding the time lie broken and empty. They`ve been scaling

back and closing down steadily since the start of the crisis in 2008. Halkida`s mayor, Christos Pagonis, says the flow on effect has hit every

business, every person. He tells me unemployment is over 30 percent, among the young it`s over 60 percent.

Every day around 300 people now come here for free food. It`s not much, but these are the most desperate and their numbers are growing. We meet

(Haralambus) (ph), laid off six years ago after working 28 years in a local factory. He doesn`t like relying on charity. He says it feels dark, but

without it, there`d be no solution but suicide. This cement factory used to be the pride of Halkida, what no one builds in Greece anymore, and the

plant closed in 2013, more than 300 jobs lost. The former workers have a standing protest here, in the center of town. They want the factory

reopened and Greece to move on, any way it can. You want Greece to stay in the Euro?

UNIDENTIFIED GREEK MALE: We prefer to have money, any money, and you can - - we can -- with this money, any name -- money is our lives.

People here say to admire Halkida`s beauty is to look through a narrow, misleading window. The reality is poverty, unemployment and a community

that dreams of recovering its dignity. Phil Black, CNN, Halkida, Greece.


GORANI: This is The World Right Now. History and beauty usually draw hordes of tourists. So why do these stunning sites go unseen by so many

world travelers?


GORANI: Well, while nuclear talks grind on in Europe, Iran`s economy continues to suffer under the weight of sanctions that have become such a

sticking point in those very negotiations. But the country`s natural beauty and rich history are not disputed, and they are untarnished in many

places. Fred Pleitgen looks at the impact of the sanctions on what might otherwise be booming tourism business.


FREDERIK PLEITGEN, SENIOR INTERNATIONAL CORRESPONDENT, CNN, LONDON: It is the embodiment of imperial Persia. Persepolis, the archeological site

where the ceremonial capital and its temples once stood. Tens of thousands of people come here to Persepolis every year, but it`s only a fraction of

what the Iranian government thinks it could draw if the tourism sector here were better developed. So getting it up to speed is one of the main goals

of Iran.

Persepolis and its many palaces and temples are just one in a wealth of sites in the area around one of the largest cities in Iran, Shiraz. There

is the Nasir al Mulk mosque, also known as the pink mosque, with its colorful windows that create unique light, the Karim Kahn Castle, right in

the center of town, the town of the poet Hafez, arguably the most influential in Persian history, and much more. Western tourist (Sweebeed)

(ph) seemed please.

FEMALE WESTERN TOURIST: Yes, people are very inviting, welcoming, and...

MALE WESTERN TOURITST: (INAUDIBLE) easy to travel by bus.

But the problem is not as many foreigners as anticipated are coming to Iran. Economic sanctions against the government may be one reason. Even

though the country expects a six percent rise in the number of visitors, authorities acknowledge they still have a long way to go. The government

says it already has done a lot to ease visa restrictions, but it also realizes massive investments are needed in new hotels, roads, airplanes,

and airports.

In 10 years` time we want to have 20 million tourists here in Iran, the Tourism Minister tells me, and we`re expecting a revenue of about $30

billion. This is our goal and we have a program to achieve that goal. Of course, the lifting of sanctions would certainly help to achieve that goal.

The Iranians acknowledge that some Westerners are afraid to come here because of the political situation and hope a deal could help mitigate some

of those concerns. Fred Pleitgen, CNN, Shiraz, Iran.


GORANI: Coming up, can taking a selfie actually be dangerous?


In Russia they think so and they`re taking action. Stay tuned to find out just how they are doing that.



GORANI: More bad news for Republican presidential candidate Donald Trump. The Professional Golfers Association and Trump have quote mutually agreed

to pull a PGA golf tournament from one of Trump`s courses. It follows Trump`s controversial comments about Mexicans, Mexican immigrants. Well

Donald Trump has been speaking to CNN`s Anderson Cooper. Have a listen to what -- of what, to some of what he had to say.

ANDERSON COOPER, ANCHOR, CNN`S ANDERSON COOPER 360o: You`ve been very vocal in the media, very accessible, you`re on Twitter. There was a tweet

that caused you problems that was rescinded, it was a retweet about Jeb Bush`s wife. You said that -- the original tweet said Jeb Bush has to like

Mexican illegals because of his wife. That was somebody else said that, you retweeted it. Did you authorize that? Do you regret that?

DONALD TRUMP, AMERICAN BUSINESSMAN: No, I didn`t authorize that, but I will say this. Look, I have millions of people on Twitter and Facebook. I

think I have over five million people on both. That`s a lot of people. It`s sort of like...

COOPER: So do you regret that (INAUDIBLE)?

TRUMP: ...owning a newspaper, a big one, without the losses, it`s good. I don`t regret anything. Look, some -- I, we, we -- it was a retweet, it

wasn`t me. And it was actually, if you look at it carefully, it was a retweet of a Breitbart story that was a very good story, a very fair story,

a very strong story, a very good story. But do I regret? No, I don`t regret it. I mean, you know, look, I would say that he would. If my wife

were from Mexico, I think I would have a soft spot for people from Mexico. I can understand that.

COOPER: Do you think that influences his position on illegal immigration?

TRUMP: I think it could. I mean, maybe it should, if he loves his wife, and I know he does. I hear she`s a lovely woman, by the way. So if he

loves his wife and she`s from Mexico, I think it probably has an influence on him, yes. I can understand that.


GORANI: Doubling down. You can hear that full Donald Trump interview with Anderson Cooper on AC360. It`s at 8:00 pm Eastern Time, that`s 1:00 am in

London, on CNN.


We told you earlier about the Pope`s tour of South America. Well, he was in the Ecuadorian capital earlier today when a child asked him to help take

a selfie. The Pope is up to date with all the latest trends. He tweets, of course, and he duly obliged, taking the time to pose with a few of the

kids before heading on his way.


The Pope isn`t going to put himself in much danger, taking a selfie. But in Russia the Interior Ministry is warning that taking a cool selfie can

cost you your life. The move follows a number of cases in which people have been injured or even killed because they posed on high ledges, with

weapons, or even with very dangerous animals. Now it has even released a safety brochure on how to a stat -- a snap safely. CNN`s Kellie Morgan is

in Moscow.


KELLIE MORGAN, PRODUCER, CNN, LONDON: The photographers train the cameras squarely on themselves, eyes focused on the tiny screen as they strike a

pose. A memory is captured to last a lifetime. But beware say Russian police, some selfies are increasingly cutting lives short.

The number of accidents while people were taking selfies has been growing constantly. People are looking for new perspectives in unforgettable

places. They are taking risks and forgetting great photos can be done in a safe environment.

In response, Russia`s Interior Ministry has launched a safe selfie campaign, complete with diagrams warning of potentially lethal self-

portraits, many inspired by actual events. Selfies with dangerous animals, portraits from high buildings, photos taken from cliff edges, and selfies

near moving trains. He was only injured, but Russian police say there have 100 incidents this year alone and some have been fatal. Most recently, 21-

year-old Eddie ______, picture here on her VK page. She died after falling from a bridge while she was taking a selfie in Moscow. The selfie

obsession this young man tells us is a relatively new trend in Russia, and he quotes a local proverb.

RUSSIAN MALE (translated): If don`t take a risk, you don`t get champagne. In other words, no risk, no reward. Selfies are cool and trendy, these

girls tell us. Another pair say, yes, they`re prepared to take a risk for an image that grabs attention.

So it looks like the selfie is set to stay, at least until we start feeling ridiculous taking these self-portraits. Until then, Russian authorities

say don`t let that spectacular photograph be the last memory you every make. Kellie Morgan, CNN, Moscow.


GORANI: This is The World Right Now. I`m Hala Gorani. Thanks for being with us this hour. The very latest on the turmoil in Greece is coming up

at the top of the hour. My colleague, Richard Quest, is live in Athens.