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Given the weekend ’s events it bears repeating that the echoes of 1914 are growing louder and louder. We are likely embarked on the death spiral phase of a game of Chicken, just as in the summer of 1914. The stakes are, for now at least, not nearly as cataclysmic today as they were a century ago, but the social and political dynamics are eerily alike.

• Greece faces last chance to stay in euro as cash runs out (Reuters)
• Tsipras Begins Brussels Campaign to Keep Greece Inside the Euro (BBG)
• Greek Crisis Shows How Germany’s Power Polarizes Europe (WSJ)
• Eurogroup Head Dijsselbloem Calls for ‘Credible’ Greece Package (BBG)
• Europe Not Playing ‘Domino Theory’ Leaves Markets Calm on Greece (BBG)
• China stocks fall again despite support measures (Reuters)
• Chinese Trading Suspensions Freeze $1.4 Trillion of Shares Amid Rout (BBG)
• Crude Creeps Higher After Downturn (WSJ)

"When I hear the Germans say that they maintain a very moral stance about debt and strongly believe that debts must be repaid, then I think: what a huge joke! Germany is the country that has never repaid its debts. It has no standing to lecture other nations. ... Germany is really the single best example of a country that, throughout its history, has never repaid its external debt. Neither after the First nor the Second World War. However, it has frequently made other nations pay up... "

• Greece Bailout Referendum: They Voted ‘No’. Now What? (BBG)
• Varoufakis Quits as Greece Enters New Showdown With Europe (BBG)
• Merkel to Meet Hollande as Greece Told to Make Next Move (BBG)
• German line hardens after Greek referendum 'No' (Reuters)
• BOJ keeps rosy view of regional Japan, watching markets after Greek upset (Reuters)
• Oil falls on Greece vote, China stock market turmoil (Reuters)
• China Urges U.S.-Iran Compromise 36 Hours to Nuclear Deadline (BBG)
• U.S. and Iran: the unbearable awkwardness of defending your enemy (Reuters)

This process will be spreading throughout the globe going forward. Indeed, the FDIC has proposed precisely the same “bail-in” program if a “systematically important financial institution” were to go belly-up in the US.

Meanwhile, Greece defaults on an ECB payment nobody remembered...

The Greece impasse set to culminate on Sunday continues to have a massive impact on at least one stock market, unfortunately it is the wrong one, located on a continent which is mostly irrelevant to the future of the Greek people (unless that whole AIIB bailout does take place of course). We are, of course, talking about China which as noted earlier, started off horribly, plunging over 7% with over 1000 stocks hitting 10% limit down, then in the afternoon session mysteriously recovering all losses and even trading slightly higher on the day, before the late selling returned once more, and the Shanghai Composite plunged to close down 5.8%: an unimaginable 20% total roundtrip move!

The market may be scratching its head over the outcome of this Sunday's Greek referendum, soaring on the faintest trace of good news such as the report of Tsirpas' capitulation this morning then reluctantly selling off as the euphoria is rejected, but for the bookies the outcome is now clear: earlier today Ireland's Paddy Power announced it has "paid out five figures" in winnings to gamblers who bet that Greece will back a July 5 austerity referendum that may seal the nation’s future as part of the euro region.

• Tsipras backs down on many Greece bailout demands (FT)
• Creditors skeptical of Tsipras' offer (Reuters)
• Greek Pension Rationing Begins; Poll Shows Tsipras Backed (BBG)
• Greek referendum poll shows lead for 'No' vote, but narrowing (Reuters)
• Greek Bank Controls Heap More Pain on Crisis-Weary Citizens (BBG)
• Greek Crisis Ripples Across European Companies as Markets Swing (BBG)
• China Stocks Fall: Shanghai Composite Index Drops 5.2% (BBG)
• China June factory, services surveys fuel hopes economy leveling out (Reuters)
• Some Chinese Are Taking 22% Margin Loans to Finance Stock Purchases (BBG)

• EU in last-ditch bid to Greece, urges "yes" vote to bailout (Reuters)
• In? Out? In between? A Greek legal riddle for EU (Reuters)
• Tsipras Says EU Won’t Eject Greece as Cost ‘Immense’ (BBG)
• Empty Greek ATMs Force Tourists to Stiff Santorini Cabbies (BBG)
• Anti-austerity protests in Greece as bank shutdown bites (Reuters)
• Puerto Rico governor calls for bankruptcy; adviser says island 'insolvent' (Reuters)
• Puerto Rico Urges Concessions From Creditors (WSJ)
• Hilsenrath - For Fed to Delay Rate Hikes, Global Tumult Would Need to Infect U.S. (WSJ)

According to Germany's FAZ, "the Greek Court also estimates that the referendum will cost around 110 million euros, according to a well-informed policy analyst. Money that in view of the strapped Greek Checkout simply will not be there, even if the country saves a EUR 1.6 billion full-scale default to the International Monetary Fund this Tuesday."

Update: GREEK BANKS TO REMAIN CLOSED UNTIL JULY 6 : KATHIMERINI

Despite the reassurances from any and all elected (and unelected) officials, given the run on bank ATMs in Greece has turned into a stampede, it is not surprising that the CEO of Piraeus Bank just announced Greek banks would remain closed for at least one week; further as reported yesterday, the Greek stock market will also remain closed. 

Multiple “emergency” meetings have been scheduled for Sunday as EU officials scramble to figure out how best to deal with what is likely to be a turbulent week and to consider the impact a potential Grexit will have on the currency bloc, its member nations and institutions, and on the global financial system as a whole. Meanwhile, Germany assesses Grexit damage.

Six months after the massacre at Charlie Hebdo that left 12 dead in Paris, France was hit by what officials are calling a terrorist attack on Friday. According to multiple reports, two men drove a car into the entrance of an Air Products factory in southeastern France triggering multiple explosions. A decapitated head covered in Arabic writing was pinned to the factory’s gate.