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Closed Banks Hard on Greeks; Obama on ISIS; A Long-Term Campaign; Documents Say Cosby Got Drugs to Give Women for Sex; No Iran Nuclear Deal Yet; Awaiting Jean-Claude Juncker's Address on Greece; What Could Happen in Greece if Things Don't Go as Planned; Germany, France Open to New Greek Negotiations; Stocks Fall Sharply in China; Young Investor in China Optimistic; Jean-Claude Juncker Addresses Greek Debt Crisis. Aired 2-3a ET

Aired July 06, 2015 - 02:00   ET

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

(COMMERCIAL BREAK)

[02:00:33] ROSEMARY CHURCH, CNN ANCHOR: Europe's leaders prepare for an emergency meeting over the Greek debt crisis. But in Athens, banks are closed and a harsh reality is setting in.

Plus, from TV dad to accused sexual predator, what Bill Cosby admits he was going to do with a powerful sedative.

The clock is ticking in Vienna where negotiators are struggling to make a deal on Iran's nuclear program.

I'm Rosemary Church. Welcome to our viewers in the United States and around the world. Thanks for joining us. This is CNN NEWSROOM.

It is 8:00 a.m. in Brussels where leaders of the Eurozone will convene an emergency meeting in just a few hours from now on the Greek debt crisis. Greek Prime Minister Alexi Tsipras will be there trying to secure a new bailout deal for his country's struggling economy. He does have the backing of the Greek people, who voted overwhelming Sunday against more austerity. European leaders like Angela Merkel and Francois Hollande say the door is still open but Mr. Tsipras better bring serious proposals.

While Europe waits to see what Greece will propose, things are not getting any easier for the Greek people. Banks will stay closed until Thursday and capital controls remain in place.

Phil Black has more now from Athens.

(BEGIN VIDEOTAPE)

PHIL BLACK, CNN CORRESPONDENT (voice-over): The overwhelming no vote hasn't changed this new grinding reality for Greek people. The regular slow shuffle towards an ATM to withdraw just 60 Euros per day.

Some are losing patience. These men were arguing about who was next in line.

The cash shortage is a serious frustration for everyone involved in small business. Andreas says business here at the fish market has plummeted since capital controls was introduced.

UNIDENTIFIED MALE: The market is frozen, and people don't buy fish one week now. And we have big problems.

BLACK: And he knows it could get a lot worse if the new deal with the Eurozone is not secured quickly and banks are not reopened.

UNIDENTIFIED MALE: We're going to lose all our money and have to start from the beginning. And outside of Europe is no good for us.

BLACK: In Greece today, optimists are rare.

"In two years, we could be like Syria," this man says.

Taxi drivers are also gloomy. The cars sit empty. This man got what he wanted, a win for the no vote, but it hasn't changed his mood.

(on camera): The day after that referendum, how are you feeling?

UNIDENTIFIED MALE: The day after tomorrow I see black. I don't see the sun very easily.

BLACK (voice-over): This is a country potentially on the brink of economic ruin, but so far there's no outward appearance of panic. Greeks are approaching these next crucial few days with a steady, stoic calm.

(on camera): Why is everybody so calm?

UNIDENTIFIED MALE: I think because they're not afraid to lose anything more, because we've already lost a lot.

BLACK (voice-over): It's crisis fatigue after enduring years of bankruptcy and deep austerity. Some are just glad their country's economic future looks set to be decided one way or the other.

Phil Black, CNN, Athens.

(END VIDEOTAPE)

CHURCH: And CNN's Isa Soares is in Athens this morning and joins us live with the latest.

Good to see you, Isa.

Greece's prime minister will present his new proposal today as he tries to get this third bailout. But European leaders want Prime Minister Tsipras to understand that they're serious and need to see some solid reforms here. How is this likely to play out and how far is Tsipras likely to go?

ISA SOARES, CNN CORRESPONDENT: Good morning, Rosie, good to be speaking to you. It's all make or break in the next couple of days. One, because you said that money is running out. But this comes down now to whether these two Euro Group and Greece can see eye to eye. There have been major divisions for the past five months in terms of what agreements they want and what proposals they're putting through and what cuts they are prepared to make, crucially. And Greece is starting to understand it wants a bigger bailout and debt to be reduced but it needs to make some sacrifices and some said, look, we are not beggars. We don't want pity. We are prepared to work hard. But I think that Europe has to understand that the austerity we suffered the past five years hasn't worked. So something has to give. And I think now is -- we're going to see Alexis Tsipras going to the meeting with the Euro Group and the finance ministers later on and the E.U. leaders meeting and hopefully they arrive with more than ideas. So proposals have to be strong in terms of what they want to make and they know, I think from what Alexis Tsipras has put forward before that something has to give. Some measures they will have to suck it up to austerity, unfortunately but are they prepared to go far enough on the European side.

[02:06:14] CHURCH: Isa, you mentioned comments from people. And while the financial aspects of this play out, the banks are closed until Thursday. People are really suffering. We saw that in Phil Black's piece there. They are feeling the economy crumbling around them. But the reality is there are going to be tough days ahead. They're going to have to do this. What are people saying to you? Do they realize that? Do they understand that that's what lies ahead?

SOARES: They do, Rosie. That is something I noticed in the last couple days. They know they will get up and that's why some people are emptying out supermarket shelves because they are worried that things may get worse and that's why people are quietly queuing to try and get their money out and we're not seeing protests in the streets. 60 percent of people said no to these proposals. So they're aware but they are also aware it can't get any worse is what one woman said to me. It's between, you know, drowning in the ocean or getting bitten by a shark. It's going to be tough from here on in. They prepared to make the sacrifices. But all it takes is one small accident for all there to be no money in the banking system and then that's the problem. I think the minute that we see a no compromises from both sides and the ECB decides not to add more liquidity that's when they will get worried. The jubilation, Rosie, we saw on Sunday, may soon be undercut.

CHURCH: This is certainly a very delicate balancing act. We'll be watching closely and will have more on this later this hour.

Isa Soares, joining us there live from Athens, many thanks to you.

We have other news to cover too, 13 people are dead in an attack in northeastern Kenya. Officials are saying that unidentified gunman opened fire in Mandera (ph) near a livestock market. The victims were quarry workers who were sleeping when they were attacked. 11 people are wounded. And we will have more on this and bring you the details as they come into us.

After a weekend of sustained U.S.-led coalition airstrikes in Syria, the American president delivered an update on the mission against ISIS and emphasized that it would be a long-term campaign.

Barbara Starr has more on the latest tactics Washington is using. (BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): Coalition war planes pounded ISIS positions around Raqqa, the group's declared capital. Here just one of 16 ISIS-controlled bridges destroyed. It's the kind of progress President Obama wants to talk about.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: In short, ISIL's recent losses in Syria and Iraq prove that ISIL can and will be defeated.

STARR: Several airstrikes in populated areas. The Pentagon insists no change in policy, but could there be new flexibility?

COL. PETER MANSOOR, CNN MILITARY ANALYST: I think what the strikes on Raqqa over the weekend show is they looked at the rules of engagement for the airstrikes and they are willing to take more risks.

STARR: The U.S. hopes the strikes will force ISIS leaders to reposition troops and weapons. Syrian and Kurdish fighters are on the ground now less than 50 miles from Raqqa working with the Americans to pinpoint more is targets for bombing.

[02:10:06]MANSOOR: If you put pressure on a force with ground forces, with offensive action it forces the enemy to move, to communication and to mass to defend his positions and then he becomes vulnerable to airstrikes.

STARR: U.S. officials say one of the dead may have been an aid to an ISIS hacker believed to have communicated with an attacker in the Garland, Texas, assault on a cartoon contest.

The U.S. is still look for top is leaders including Abu Bakr al Baghdadi, who the U.S. believes could be in Raqqa.

ASHTON CARTER, DEFENSE SECRETARY: With relationship to leadership, they were not the subject of these particular tactical opportunities that arose over the weekend north of Raqqa, but we continue to take action.

STARR: But a setback in Iraq. Seven killed and eight wounded when an Iraqi military jet accidentally dropped a bomb on a residential neighborhood in Baghdad.

(on camera): The situation remains fluid. There are reports unconfirmed that ISIS has taken a town in Syria back from the Kurds who had captured it. ISIS wants the town to keep the supply lines flowing and the Kurds want the town back.

Barbara Starr, CNN, the Pentagon.

(END VIDEOTAPE)

CHURCH: After dozens of accusations of drugging and raping women, we are learning comedian, Bill Cosby, did buy sedative drugs with hypnotic effects. This admission comes from Cosby's testimony during a 2005 sexual assault case he settled out of court. In his deposition, comedian, Bill Cosby, admitted to buying drugs to use for women he wanted to have sex with. But Cosby does not say he actually gave the drugs to any of his accusers. Cosby has repeatedly denied all of the rape allegations and has never been charged.

But with this latest news, some of his accusers are talking to CNN. Patti Maston, a former Playboy bunny, spoke to Anderson Cooper.

(BEGIN VIDEO CLIP)

PATTI MASTON, FORMER PLAYBOY BUNNY WHO ALLEGES RAPE BY BILL COSBY: There were four other men in the room playing cards and smoking cigars and watching sports and Cosby asked if I wanted to have a drink. It was 7:30 in the evening. I wasn't much of a drinker. I said I'll have a little Grand Mariner. And he fixed the drink behind me and I took two sips and that's the last thing I remember.

ANDERSON COOPER, CNN HOST, A.C. 360: Really?

MASTON: At 4:00 in the morning, I woke up in bed, naked, bruised and battered.

(END VIDEO CLIP)

CHURCH: National correspondent, Deborah Feyerick, thank you so much for joining us.

I need to ask you, where does Bill Cosby go from here? Does this somehow legitimatize the allegations against him?

DEBORAH FEYERICK, CNN NATIONAL CORRESPONDENT: It vindicates the allegations. And, Comedian, Bill Cosby has long denied drugging and sexually molesting these women even though they have been vocal in speaking out. But it's in court in reports that were unsealed, Cosby testified he did get Quaaludes. He was asked, when you got the Quaaludes was it in your mind you were going to use these Quaaludes for young women you wanted to have sex with and Cosby answers yes and the lawyer asks if he gave the Quaaludes to other people and he once again answers yes. These documents were part of this deposition a decade ago in a defamation lawsuit and the young woman accused Cosby of drugging and molesting her giving her three blue pills. She asked Cosby whether they are herbal and Cosby said they are your friends. And later said they were Benadryl, the antihistamine. Cosby has denied the allegations against him. But there are a number of civil lawsuits he is now facing. The information in this deposition, clearly not going to help his statements that he never molested these women.

CHURCH: No, and Quaaludes, this is a drug that acts as a sedative and hypnotic. What did Cosby say his motive was for giving the drug to this particular woman?

FEYERICK: Cosby is giving broad answers to the questions put before him. But what is interesting is it is made very clear that the woman could not fight back. That she knew what was happening but she was in this semiconscious state in which she felt him behind her and she simply passed out. When she awoke, her clothes were in a state of disarray. The lawyers are trying to get to the point that Cosby knew what was going on and was aware what was happening, but as far as why did you give her these Quaaludes, he was vague, and he had a lawyer with him making sure he didn't answer certain questions.

[02:15:16] CHURCH: It's worth pointing out, the statute of limitations ran out. So Cosby has never been criminally charged. So what's going to happen? How are some of these lawyers going to get around that aspect?

FEYERICK: He may never be criminally charged only because of the fact you do need evidence. You have to have forensic evidence. But he can be essentially sued civilly, which is happening. His lawyers have maintained that, no, there are certain laws that preclude this. But this could open up a new avenue for lawyers representing these women to go after him but it's the long and short of it is even though he has denied that all of this ever happened his reputation now, based on this new information, it's going to be hard for him ever to come back. He will always be associated with this.

CHURCH: Indeed. It will be interesting to see what he and his lawyer have to say in the aftermath of this. We'll be watching closely.

Deborah Feyerick, thank you so much, as always.

FEYERICK: Sure.

CHURCH: We turn now to another story we are following, a quarterback for one of the top U.S. college football programs has been dismissed from the team after a bar fight.

I do want to warn you, you might find the video disturbing.

This is surveillance video from June 24th from a bar near the Florida State University campus. Deandre Johnson is seen arguing with the woman. The fight turns physical and Johnson punches the woman in the face. It is shocking. She suffered bruising and a small cut. Johnson later turned himself in and is now charged with battery. Johnson's attorney says the video shows his client wasn't the national aggressor and he is taking steps to learn from this experience. In a statement he says, "Deandre is extremely embarrassed by this situation and would like to express his heart-felt apologizes to everyone including those who were directly affected."

World powers are working down to the wire as another deadline looms for Iran's nuclear program. We will have the latest on the talks coming up next. Do stay with us.

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[02:21:36] CHURCH: Welcome back, everyone. Yet another deadline has come with no deal for Iran's nuclear program in sight. A senior Iranian official says the U.S. needs to make some constructive moves but Western leaders say Iranian demands are holding things up and that could force them to leave the negotiating table.

(BEGIN VIDEO CLIP) JOHN KERRY, SECRETARY OF STATE: If we don't have a deal, if there is an unwillingness to move on the things that are important, President Obama has always said we'll be prepared to walk away.

(END VIDEO CLIP)

CHURCH: John Kerry there.

CNN senior international correspondent, Nic Robertson, joins me now from Vienna.

So now we know that the ministerial meetings went into the night there. What are still the main sticking points that you're hearing about?

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Rosemary we haven't had a read-out from the meetings. And these were unprecedented in the scale and scope so far. There were two hour and a half-long meetings last night, not just with the P5+1, the U.S., China, Russia, France, Germany, Britain, all of their foreign ministers, the E.U. foreign policy chief, there as well, but it's the Iranians involved as well. The foreign minister, Mohammad Zarif, was in those meetings. So two hour and a half long meetings last night. That tells you something that the sense that real pressure and the real tough issues are being addressed. We've been told all along it's at the foreign minister level they try to deal with the tough issues. What are they right now? We know from a briefing from a senior Iranian official yesterday, what is emerging as a tough red line for both sides, the Iranians want the U.N. resolution that puts an embargo on Iran not linked to nuclear negotiations. They want that lifted if there is going to be a deal. We talked about how sanctions would be lifted if there is a deal, but this is something slightly different. This is about the arms embargo that has been imposed on Iran through a U.N. Security Council resolution. Iran maintains that is illegal. For the U.S. and others, that is also a red line not to lift it as a basis on the part of these talks.

Other issues still require further negotiation, the research and development, how long that can continue as the basis of an agreement. That's something Iran doesn't want limited. The inspection of sites in Iran has been a contentious issue. There are details about that, the possible military dimensions hasn't been fully discussed how much Iran may have developed in terms of nuclear weapons in the past that is falling short of the p5+1 expectations as well -- Rosemary?

CHURCH: Nic Robertson monitoring and watching the negotiations. We'll see what comes of it. Talking there live from Vienna, many thanks to you.

As hours of negotiations on Iran's nuclear program continues, CNN's Fred Pleitgen visited an ancient city in Iran whose residents feel they could help the sides solve their differences.

(BEGIN VIDEOTAPE)

[02:25:00] FRED PLEITGEN, CNN SENIOR CORRESPONDENT (voice-over): With its ancient mud-brick houses, the village Abunay (ph) is unique, even by Iranian standards with the country's wealth of diverse cultures.

The folks here like to take things slowly. They might even appear somewhat frail at first sight. But they know and follow international politics.

"We like the American people. We like Obama but we don't like Congress," says 74-year-old, Hani Ameri (ph).

And her 80-year-old friend, Hajama Jamal (ph), adds, "We've heard that Obama said the military option is on the table. Well, we're not afraid of that."

Abunay (ph) is one of the oldest places in Iran. The city council says it dates back almost 4,000 years. Its people still wear a traditional colorful dress.

(CHANTING)

PLEITGEN: We were allowed to film a Koran lesson for women and girls inside the oldest and biggest mosque in town but the people here weren't always Muslims.

(CHANTING)

PLEITGEN (on camera): This mosque is about 1,000 years old, and before it became a mosque it was a Zoroastrian temple. Zoroastrianism is an ancient religion of Persia and Zoroastrian is still the language that people speak here today.

(voice-over): And they believe their traditional mindset has made them great negotiators, well known as conflict mediators in this part of Iran.

Reza Ali Resali (ph), the head of the village council, tells me as he believes as the U.S. and Iran try to improve relations they could learn a thing or two from Abunay (ph).

"The people have always talked to each other in councils," he says, "and the output and the thoughts of the council were always stronger than any one man's thoughts, and this is what creates civilizations."

And the ancient civilization of Abunay (ph) in central Iran is one that, despite its old and traditional ways, remains strong and vibrant and at ease with the world.

Fred Pleitgen, CNN, Abunay (ph), Iran.

(END VIDEOTAPE)

CHURCH: And we are waiting to hear from European Commission president, Jean-Claude Juncker, ahead of an emergency meeting on the Greek financial crisis. We do play to take you there life in France for his comments right after this short break. Do stick around.

(COMMERCIAL BREAK) [02:31:] ROSEMARY CHURCH, CNN ANCHOR: Welcome back to our viewers here in the United States and all around the world. I'm Rosemary Church. We want to update you on the top stories this hour.

Greek Prime Minister Alexi Tsipras is expected to present new bailout proposals to Eurozone members at an emergency summit in Brussels today. Greek banks are running out of money and the government says they will stay closed until at least Thursday.

In about an hour and a half, Britain will begin marking the tenth anniversary of the deadly attacks on London's public transportation. Terrorists detonated devices on three tube trains and a bus.

Nigerian authorities say the death toll on two attacks in Jos has risen to 44. No one has claimed responsibility. But the militant group Boko Haram has been tied to violence in Jos in the past.

In just a moment, we're hoping to go live to Strasburg, France where we will hear from the European Commission president, Jean-Claude Juncker.

As we wait for him to make his address, we want to go to London where our Nina Dos Santos is standing by.

Nina, when we can see Jean-Claude Juncker there preparing, he could speak any moment, in fact, what are the expectations? What is he likely to say? Because he would like the see serious reforms from Greece and so far we're not seeing that.

NINA DOS SANTOS, CNN ANCHOR, THE BUSINESS VIEW: Good morning to you, Rosemary. This is the man who is making a very impassioned speech saying he felt very angry and not a little betrayed by the Greek government's decision to hold the referendum. So he was quite vocal going into that referendum that the Greeks should be under no illusion that it wasn't just austerity that was at stake here. Their vision of austerity and their stance against it but really their position inside the Eurozone. And what we're likely to hear is him steering a set of discussions with the Euro Group. Before we have an E.U. summit to potentially come up with a last-minute deal. A lot of economists saying at this late hour it's unlikely any firm deal will be put on the table. But what we have heard from Europe here is it is now up to the Greeks to put forward some kind of credible proposal. This may be the last chance for the Greeks to put forward a proposal. The Greek party will have to think clear and hard about what they want to put on the table here. The second bailout that expired at the end of the last month that precipitated the referendum, that has now expired. Since they rejected austerity the Europeans are going to have to say what it is now you want? That's what we are expecting later today.

CHURCH: There is this sense given this referendum and it's no surprise that people in Greece, they don't want more austerity measures but the reality is there are going to be tough times ahead whether they say yes or no. And as it turns out they said no. But is the message getting through to Prime Minister Tsipras? Does he realize this is really a do or die moment for him? [02:29:57] DOS SANTOS: Yeah, this is one of the positions that the

European leaders have been taking a very strong line on here, Rosemary right into the referendum and after the referendum they r repeatedly said you have to make sure you are telling your people what is at stake here it is their future in the Eurozone and not just towards austerity. And I think no one in the single currency area denies the fact that the Greek people have been through an enormous hardship here, the most precipitous fall in living standards for a couple of generations and 50 percent youth unemployment and 26 percent unemployment across the country. It has been crippling. And many economists say austerity is not necessarily the right answer. The Syriza government themselves have been advocates debt relief yet again for the country saying we don't have a hope in paying back the current debt burden. There is no point in saddling us with a bailout if you don't give us debt relief to wipe some of that free.

Remember, though, the Greeks have already had one set of debt relief and we saw that private sector haircut as part of the second bailout. That is why the markets have not moved much, Rosemary. The problem is largely contain budget but a lot of the debt is in the Euro countries. And Jean-Claude Juncker runs the executive arm of the European Union are so sensitive to where we go from here. Some countries like France and Germany and other countries don't want to see their taxpayers foot the bill for giving debt relief to the Greek people if they don't implement those kinds of reforms that the Germans feel are so necessary to shore up their economy and position it eventually for growth many years from now.

Now, the immediate problem will be in the banking system. One thing we haven't mentioned is overnight the European Central Banks tightened the screws on the Greek banks. They will be shuttered until Thursday. It is difficult for people to start living on less and less money every day, especially when they are queuing up and there is not enough money in the cash points. It will be one of the reasons Greece may fall out of the single currency area.

CHURCH: Nina Dos Santos, in London, stand by, if you would, as we wait to hear from Jean-Claude Juncker.

We have Isa Soares there live from Athens.

And, Isa, the worst-case scenario, if things don't go as planned, if Greece doesn't come up with the reforms that the European leaders are looking for here, what happens next, and what do the Greek people believe is likely to happen next?

ISA SOARES, CNN CORRESPONDENT: I think the Greek people have one idea in mind and that is the option to only staying in Europe. They have to suck it up, to be completely honest. I don't think they are contemplating a position of getting out of the Europe. But as Nina pointed out is all it takes is a small accident for that to happen. If there is no money coming to the banking system, what that will mean is they will have to issue their own currency or IOUs and that practically means they will be making it impossible to stay in the Eurozone. So a very delicate situation at the moment. But Greece is going into these Euro Group meetings knowing it's make

or break and they will have to make some sacrifices here. But also I think they will continue to push hard on debt relief which is something they always push hard on. It's up to see if Angela Merkel is prepared to give in on that. The Italians and French have been more amenable to debt relief and the IMF has also suggested and proposed. But now the ball is in Greece's court to come up with a credible proposal. It's the credible proposals that the E.U. has been having for a long time.

But in terms of the red lines, I think the debt relief will remain one huge red line, Rosie. And now I think it will most likely see some sort of debate between Eurozone leaders about who is prepared to give in on the idea of debt relief. I don't think we are going to get a deal today, Rosie. I think this will take days if not weeks. It has taken five weeks and we haven't got the a deal. But time is critical now because the banks are running out of cash soon. And that 60 Euro limit there is not enough money and the banks will not have enough money and that's when things will turn nasty.

[02:40:00] CHURCH: Isa Soares live there in Athens.

Nina Dos Santos live in London.

I want you both to stand by if you would. We will come back to you when we hear from Jean-Claude Juncker, who will address the European parliament on the Greek debt crisis any moment.

But European leaders like Angela Merkel and Francois Hollande say the door is still open on talks for a Greek bailout deal, but they say Prime Minister Alexi Tsipras better bring serious proposals to the table.

Jim Bittermann reports from Paris.

(BEGIN VIDEOTAPE)

JIM BITTERMANN, CNN CORRESPONDENT: If anyone thought that Francois Hollande, France's president, was going to talk Angela Merkel out of her hard-line position to demand more austerity from the Greeks, they would have been wrong after the meeting today. Merkel left just about in the same position she was in when she arrived here, talking about the fact that there is no room now for any further bailout the way things stand as they are now. The Greeks will have to come up with some kind of an offer and she said it's a question of responsibility.

ANGELA MERKEL, GERMAN CHANCELLOR (through translation): Countries have to shoulder their own responsibilities. So with respect, we need to take into account the views of the other 18 countries involved. That's also democratic. We have a shared solidarity because we have a single currency and we want to retain this currency, and so we need responsibility on all sides.

BITTERMANN: So now both Merkel and Hollande are on their way to Brussels for a summit meeting to see what the Greeks will bring to the table and see whether it will meet Angela Merkel's standards but also the other members of the Eurozone community who want the Greeks to do a better job of managing their economy.

Jim Bittermann, CNN, Paris.

(END VIDEOTAPE)

CHURCH: And we are still awaiting the address by Jean-Claude Juncker to the European parliament on the Greek debt crisis. When it happens, we will take you there.

But we want to take a very short break right now. We're back in a moment.

(COMMERCIAL BREAK)

[02:45:17] CHURCH: Welcome back, everyone. Stocks in China fell sharply Tuesday despite a number of support measures by the government. The ongoing volatility is worrying global investors about the possibility of a crash.

Andrew Stevens joins us from Hong Kong as the markets are about to close there.

Andrew, why is China's government getting increasingly involved in trying to stop the falling market there?

ANDREW STEVENS, CNN ASIAN-PACIFIC EDITOR: I think it's simply they don't want to look helpless in the face of this. The Chinese government has always presented a very strong friend and led from the front about the Chinese economy and it has that unwritten understanding with the people of China, I will provide you with gains and with wealth and you will give us your loyalty. So they don't want to be seen to be unable to stem these flows. Let's take a look at the markets now. Just 15 minutes to go on the trading day in Shanghai. And you'll see there, the index has flattened out. It was down by 3. 5 percent at one stage today but coming back at the end of the day's trade shows the volatility that has been going on in this market. A lot of the big state-owned brokerage companies continuing to buy stocks to prop that market up. And that's why you are seeing that stability there.

Another interesting development today, Rosemary. A lot of countries in China are taking themselves out of the firing line. It's extraordinary, really. About 27 percent of all the 2800 companies listed on the Shanghai and Shenzhen stock markets have suspended their own trading. They usually have to have a good reason to do that revolving around sensitive share information. Some of the reasons they are giving is things like they are planning on making important announcements. They are taking themselves out of it so you can't trade in those stocks. But highly unusual. And to many observers in markets like in Europe or in the West, a very sort of dubious maneuver.

But at this stage, we've got this flat -- what looks like a flat close in Shanghai but we don't know whether this has finished yet, this slump in the market. Certainly it's being kept alive and force fed by the government. That can't continue. They are hoping that this will be enough.

CHURCH: Indeed. And I know Andrew Stevens, watching it very closely there live from Hong Kong, many thanks to you.

Millions of investors have lost thousands of dollars in China's market slide. The new capitalists are learning the downside of stock investment.

But Ivan Watson reports one young investor remains optimistic despite his losses.

(BEGIN VIDEOTAPE)

IVAN WATSON, CNN CORRESPONDENT (voice-over): School is out for the summer but instead of heading to the pool or the beach, 17-year-old Li Wohan (ph) hits a coffee shop where he gets to work immediately on the day's stocks. He says he first started investing in financial markets when he was only 15.

(on camera): Where did you get the money to invest? Did your parents give you the money?

LI WOHAN (ph), STOCK INVESTOR: I borrow from my parents.

WATSON: A lot of money or just a little to begin with?

WOHAN (ph): Just a little. Just 3,000 U.S. dollars.

WATSON: To start with?

WOHAN (ph): Yes.

WATSON: That's a lot of money when you are 15 years old.

WOHAN (ph): Yeah.

WATSON (voice-over): Incredibly, Li claimed he doubled his parent's money in one day by buying crude oil and silver futures.

(on camera): Do you think you got lucky that day?

WOHAN (ph): Yeah, yeah.

WATSON: You got lucky.

(voice-over): Li has been buying and selling stocks ever since.

But lately, his luck may be running out. Over the last three weeks, China's once booming stock markets have tumbled more than 20 percent. At one point, this high school senior says he lost 140,000 RMB, around $22,000.

This teenager is not the only stressed-out person riding the stock market roller coast these days.

(on camera): Here's something Chairman Mao probably wouldn't approve of. China now has some 90 million stock trading accounts. There are currently around 88 million card-carrying members of the Communist Party. That means there are officially now more capitalists than Communists in China.

(voice-over): Most traders, analysts say are so-called retail investors, people like housewives, students and taxi drivers, attracted to a stock market that had been growing.

(END VIDEOTAPE)

[02:50:12] CHURCH: All right, we are interrupting this to go to Strasburg in France. You see there the European Commission president, Jean-Claude Juncker, about to address and addressing the European parliament. Let's listen.

JEAN-CLAUDE JUNCKER, EUROPEAN COMMISSION PRESIDENT (through translation): And those who don't like Europe are able to pay compliments to those who serve Europe. I think that you have done sterling work. And I would really like to congratulate you on what you have done.

And first of all, I would like to thank you most of all for having been able to take on with open arms a number of proposals that the commission put forward either at the very beginning or just before the very beginning of it in particular the investment fund plan. And I think you have really done excellent work. And for the council, the commission and the parliament, you have managed to steer this project through and bring it to a good conclusion and in paying homage to you I pay homage to the European parliament, who did everything that they had to do. So we have had an ambitious presidency and, given that, the commission did not hesitate to put forward a number of proposals. You mentioned some of these, the energy union, the capital markets union and others, and all of this was possible because the commission felt that they were being carried along by a very ambitious presidency.

And let me also pay my respects to your country's negotiators. And it is true since the entry into the Treaty of Lisbon, the role of the prime minister and foreign ministers has changed somewhat. We have a permanent president of the council, and so it no longer falls to a prime minister to chair the European Councils. We have the high representative who chairs the foreign affairs councils. We have a permanent president of the Euro Group. So it is no longer the finance or economy minister who would chair that meeting, so the work has changed.

Now, when I was prime minister of Luxembourg, I had to chair the council, the Echo Fin, the Euro Group meetings as well, so I really do understand what the constraints are, what the onus and what the unfortunate elements are of a presidency. But I think you manage very elegantly to run this presidency and I would like to pay my respects, to you the excellent negotiators you had, and the very good work that was done by your permanent representative.

We are geniuses, of course, those of use who are presidents and prime ministers, but compared to those who do the real work, well, we don't compare. So I would really like to pay my respects and pay homage to all of those.

(APPLAUSE)

JUNCKER (through translation): And I would also like to give my congratulations to the civil service. It really is excellent. This evening, we will have another European Council on Greece.

And I just like to say a few quick words about that. In the German press, I'm reading all sorts of things about myself having disappeared. But I think any such glee is premature.

I said nothing about the Greek referendum on Sunday evening or, indeed, yesterday. And I think that ought to be allowed. And, in fact, it might do others some good to think before speaking.

I have not disappeared. I come to the European parliament to talk about the Greek referendum. This is the home of democracy.

(APPLAUSE)

JUNCKER (through translation): Quick-fire interviews to the press are no substitute for debate in the European parliament. Either you respect the European parliament or you don't, and I do because I am accountable before the European parliament and, hence, this is where I come to speak.

[02:55:00] And I'd like to say the following. I don't want to start with this but I'm going to anyway. The European Commission has been criticized in certain member states over Greece, especially in countries where they speak the language I'm speaking now. The fact is, the European Commission needs to be able to speak its mind, or does the European parliament want the commission to be an institution of technocrats? I am not a technocrat. I show the political responsibility.

(APPLAUSE)

JUNCKER (through translation): And it is quite extraordinary that the president of the European Commission should be the only person not entitled to talk about Greece or the future of the Euro. I find that unacceptable. And the same goes for the European parliament and its president. The president of the European parliament regularly takes part in meetings of the European Council. And communicates to the European Council, the views and sensibilities of the European parliament in a satisfactory manner. The idea of the European parliament president going to the European Council to speak and then leaving and remaining silent, that is not going to happen. It is the right and the duty of the president of the European parliament to speak out. And I'm grateful to him for doing so on behalf of the European parliament. I think it is to be welcomed that the president of the European parliament speaks out. However, sensitive some of the things he says and whether or not he has a formal mandate, the European parliament is certainly no paper tiger.

And now to the European Council and Greece. We are told we must respect the Greek people's vote. And I'll certainly do that. The voters of Greece, the citizens of Greece have spoken and I'd like to understand what they said. A question was put to the Greek people about something which doesn't exist.

Perhaps you would like to explain to me in detail what the question was that was put to the Greek people. But maybe that would be too much of a circus.

(SHOUTING)

(BELL RINGING)

UNIDENTIFIED MALE (through translation): Just a moment. Just a moment, Mr. Juncker.

UNIDENTIFIED MALE: (through translation): I think we'll be able to carry on in a moment.

UNIDENTIFIED MALE: (through translation): Ladies and gentlemen, Mr. Coburn, we've missed you in the last few weeks. Everybody is entitled to shout out comments but not to take the floor uninvited.

JUNCKER (through translation): I don't like to be interrupted but sometimes I like to be interrupted by people who constantly interrupt me.

CHURCH: We have been listening there to European Commissioner President Jean-Claude Juncker addressing the European parliament in Strasburg, France, on the debt Greek crisis. A little bit of heckling on the side. This is a tense moment for the European parliament and the European Commission.

And we heard from Mr. Juncker. We are told, with must respect, the voters of Greece and we will do that -- of course, referring to the no vote out of the referendum -- but he would like to understand what exactly they were trying to say. He said he has been reading all sorts of things in the German press that imply tht he has disappeared, he's absent. He said that's not the case at all. And he said that he has -- we're going to continue to follow this.

But we're going to take a very short break. We'll be back in just a moment.