10 things you need to know before European markets open

Good morning! Here's what you need to know in markets today.

Greece is on the brink, and the eurozone governments are having an emergency summit. After Thursday's Eurogroup ended with no progress, European heads of government will gather on Monday to try and resolve the Greek crisis, according to the FT. At that point it will be barely a week until Greece's June 30 IMF payment is due - and the country seems likely to default without a deal.

And the situation for Greek banks is looking precarious. Leaks from Thursday's Eurogroup meeting suggested that the European Central Bank (ECB) didn't know if banks could open on Monday, which the ECB denied. However, an emergency call on the Greek banking system's access to emergency liquidity assistance is going ahead today.

More sanctions against Russia are being readied. The United States and European governments have readied a new round of penalties against Russia targeting its energy and financial sectors as part of a sanctions-in-waiting strategy that officials hope will enable the West to respond immediately if Moscow-backed insurgents seize more territory in Ukraine.

US investors are shorting Chinese stocks in record numbers. Bearish investors are putting money where their mouths are, and short-selling ETFs that track Chinese yuan-denominated shares. According to a report from Bloomberg, using data provided by Markit, "short interest in the largest exchange-traded fund tracking yuan-denominated equities rose to a record 16 percent of shares outstanding Wednesday". Only a month ago short interest stood at just 8%, according to the report.

Airbus is threatening to pull out of the EU's drone project. The head of aerospace giant Airbus has threatened to pull out of Europe's plan to develop a military surveillance drone should EU governments keep interfering in the process, the Financial Times reported Friday.

German producer prices stayed stagnant in May. No change in prices was registered from April, leaving them down 1.3% year-on-year. Analysts were expecting a 0.2% rise month-on-month, which would have translated to a 1.1% fall year-on-year.

Intel's CEO confirmed layoffs in a leaked email. Intel CEO Brian Krzanich confirmed recent reports of layoffs in a company-wide email sent out earlier this week, The Oregonian reported. "Yes, we are implementing headcount reductions," he wrote in the internal memo. "With today's incredible pace of innovation and change, companies consistently need the flexibility to invest in skills and experience required in new growth areas."

And it sounds like layoffs are still going on at IBM too. Two IBM employees reported that layoffs have commenced inside IBM this week, according to a union organisation that tracks such things, Alliance@IBM. Layoffs have been ongoing all quarter, according to one employee posting to the Union website, who said the last layoff in his unit finished in May.

UK borrowing figures are coming. At 9:30 a.m. UK time (4:30 a.m. New York) the UK releases its latest figures on public borrowing, for May. Analysts are expecting borrowing of £10.05 billion, up from £6.038 billion in April.

Asian markets are mixed. Hong Kong's Hang Seng is up by 0.89%, and Japan's Nikkei has climbed 0.98% since Thursday's close. But China's Shanghai Composite is sinking, currently down 3.57%.