Transcripts For BLOOMBERG On The Move With Rishaad Salamat 20140721

Have retrieved the black boxes from the downed Malaysian Airliners. They say they will help to establish the truth. Washington claims to have circumstantial evidence that the rebels shot down mh 17 with a russianmade missile. A say their access to the crash site is being restricted by m a, investigators say. Restricted by gunmen. Haslinda amin is kuala lumpur, and she will be telling us what things are like their on the ground in the malaysian capital. In fact, we can go over to Haslinda Amin now. Is like. Hat it it is pretty somber. If you access social media, you see facebook, and an outpouring of grief, sadness, disappointment, shot. You see comments about, why did it happen . How can it happen again . Is. It mh 17. So this is a nation grieving, just one week to the monthations following one of the fasting month. You can hardly feel any form of celebration. No one is in the mood for that. Theround the city, speak to people in kuala lumpur, they are in a state of shock. How it is about Malaysia Airlines. Bey say they do not want to traveling anywhere. The nation is spooked by what as malaysia as far airlines is concerned. It has all happened in a period of a for your months. Of four months. Body in is a malaysian ukraine. They have no access whatsoever. A delegation led by the minister , he made a trip and landed in kiev on sunday. He has met with counterparts in ukraine and has been meeting with counterparts, and that is precisely to gain access to the crash site. Right now, they are being by prorussian rebels, and they have no access whatsoever. Are leading a delegation of more than 130 people, experts in the field of medical forensics, as well as recovery, but to date, nothing has come to fruition. In fact, a minister has president ,russias but there is a lot of frustration as far as malaysia is concerned. They are trying to i sure the evidence is not contaminated. Remember, what happened in thailand, a crash back in 1991, and a key component was never retrieved, and that essentially means that the crash could not be fully resolved, rish. , thank you. Amin you can find more on this story, just download bloomberg plus on your tablet. It is available on android, apple, or windows. Now, to the other days big story, and it is the middle east and the fighting in gaza. The Security Council is having an emergency meeting in the next halfhour after what has been the Bloodiest Day yet. Levelctims above that 400 marked now. That is right. They have a draft resolution. This was called, by the way, by jordan, one of the councilmembers, and von kee moon is calling the situation atrocious, and he expresses a growing concern over the high number of People Killed in gaza, including children. It calls for the lifting of israeli impositions imposed on people and immediate humanitarian assistance to citizens in gaza. It also called for an immediate ceasefire and withdrawal of Israeli Forces. Butan has called it, again, john kerry is flying out monday to egypt. Theyypt and im brokered that deal. Absolutely. There are increasing sentiments about this. They must exercise maximum constraint to combat this incident. I implore all sides that they must respect International Humanitarian law. President obama spoke to benjamin netanyahu, the israeli Prime Minister, and he raised serious concerns with netanyahu, and you mentioned john kerry already. Now about the numbers. The humanitarian aspect, as well, and what is the impact when it comes to civilians. The last 24 hours, we have seen 87 Gaza Civilians killed. Areas, one close to , and alsoi border have beenr 83,000 displaced in gaza, civilians, taking refuge in shelters. 3000 injured. They had a truth that lasted less than one hour. They were trying to protect civilians in gaza, children, women and children, who were there. John, thanks. Lets talk about what really happens on the market side. It seems to be a different kettle of fish. We are seeing stocks rebounding. In fact, it comes from the gains on friday. On wall street, the rebound, the s p 500 coming back from its biggest loss in three months. Now, over the weekend, the benchmark index did see a six percent decline. Also falling as a ground offensive continues in gaza. Lets take a look at what is happening. We see gains for the most part across the region. Japan is closed for a market holiday, so no action there, but early going as malaysia and the poor get going. About one quarter of one percent on the klci and the straits times. We will closely be watching Malaysia Airlines. Lets bring up the intraday chart on Malaysia Airlines. I cannot show it on here because it is not one of the biggest percentage movers. At the moment, you can see it is moving to the downside, i believe, in trade in kuala lumpur, down a few cents, so we will continue to watch Malaysia Airlines. Theyre expecting a press conference on mh 17, and we will bring you those as we get them. This one stock is down about 3 10 of one percent in that session. Checking in on what else is happening, the kospi index, these are the movers, some locallybased movers, and it looks like an Instruments Company is down about 6. 5 in the step textbased in medical devices. We will be closely watching the new zealand dollar. The kiwi on friday adding to tenths of one percent versus the dollar, and we should note that the euro is strengthening, as well. We will continue to follow the ukraine. Limited impact in this monday session across the asiapacific right now. Thanks. Other news, Rupert Murdoch may be looking to boost his bid for time warner, and he is saying he is thinking about getting rid of , and thean tv asset time warner board rejected the by murdochs 21st century and staterun banks, some sales, allowing staterun banks to sell shares, and that would bring more money into the system. Discussions continue on the size of the sales, or the government plans to retain majority approval in india. And an industry controlled by indias richest man. It is higher than what analysts were looking for. Higher profits are crucial as the expanses Petrochemicals Refining and natural gas businesses, along with starting a new Telecom Service next year. The prospects, looking to the future contracts. There we go. They are up about 3 10 of one percent, and the nifty off by one third of one percent. Up by one third of one percent. And seeing what geopolitical risk means for investors, and we will hear from a p capital. This is on the move. You on the move. I am Rishaad Salamat. Allocation, and everything is going to be dominated this week by what is going on over there in ukraine, and, indeed, the tensions between russia and the west. How are you perceiving things . Geopolitics is becoming an unfortunate power in life. The tragic shooting of the plane and the loss of life. I think the broad impact on Economic Activity is likely to be quite minimal, and although we might see shortterm collections, corrections, like we saw in the u. S. On friday, the broader focus in the market is likely to be fundamental in the earnings reporting season in the u. S. , soon to be unfolding in europe, as well, and indications are so far the indexes have been quite strong. Ignoreket starting to what is happening in geopolitics at this stage. Should we see another spike up and a more sustained spike when it comes to the oil price . Even elevated gold price also . Very true. We are going to get a sustained rise in oil prices, at would derail global growth, global recovery. If you look at how the u. S. Intensity, the intensity to crude oil, it is not what it used to be. There is a mass of shale gas going on at the moment. Befored move higher hampering growth. At the same time, you have lots of production in one region. Now you have iraq in turmoil, but on the other side, you see a substantial return of iranian oil to the market, which can provide a great offset, so i am not saying the prices will not go higher from here. In a way thatpike could damage the prospects of global growth. Just stayingl, with the commodity side, because you are in favor of the Agricultural Commodities, what are you looking at in particular . Looking at soybeans, wheat, and corn. Agricultural commodities are down over 20 in just a few months, since may, and if you look at, you know, it china, it is a big story when it comes to these. Selfsufficient when it comes to food and agricultural items. They are a net importer of weeds. I think the market is overoptimistic when it comes to prospects for a great harvest, and weather patterns suggest there is an 80 chance of an el nino by october, which would suggest flooding in south america and dry and routes in asia. This puts Commodity Prices at ask, and the market is taking much, much optimistic view of i amield forecast, so buying soybeans, wheat, and corn. Now, looking at soybeans likely commercial reducers becoming net buyers. That does not happen very often. But that is not necessarily good news, is it . Is. Ell, it for Commodity Prices, when we rice change in Agricultural Commodities, prices moving below cost of production, and those farmers are going to hoard, not send it to the market, so you have that happening. Plus, the potential bad weather impact ahead of the harvest, and i think conditions are set for quite a good upside return on risk potential in Agricultural Commodities over the next few months. Thank you. We will be back with him after this break, so i just want to tell you what we have coming up. Releases official election results, and look at the big stories we are following for you this week. All right, you are back with on the move. You what is on our radar for this week. We are expecting the official indonesianm the elections on tuesday, and according to unofficial websites, tallying those results have one man ahead only by a narrow margin. And expecting to release a new product tomorrow, will it be a success to the smartphone for xiaomi . And china may see it second debt default wednesday. Toy have said they may fail pay 60 million in bills. The roads biggest corporate debt load at about 14 trillion, and on friday, japans minister witho abe has a visit brazil and others. This is on the back of the chinese president xi jinping going to the region. The trip should be making headlines, and lets get back to sydney. Our guest. Jinping, it sort of highlights the importance of also aboutit is confidence also, but it has done something really that has been how commodities go. Would you agree . I agree. The chinese equity market has been disappointing. This is with a relative performance. Markets, the markets will not work very quickly, but as golf improves, as prospects for s improve, and as policymakers become more open to finetuning the policy, the china share markets should benefit, the Profit Margins also being there he low. There is some upside potential there. But it has been that way for a wild, hasnt it is to mark we also believed others would do well. Well, i agree. If you look at european sharemarket, the pessimism around earnings is very high. Different for the u. S. Market, and there is optimism. Obviously, the u. S. Growth has performed, but also in europe, andgs are going less bad, there is a massive gap, and the european earnings are underperforming, which has brought quite a bit of pessimism around european earnings, at the time that loans are picking up, and business and Consumer Confidence is picking up, and the headwinds from a stronger banking. So, again, looking at expectations, there is a lot of upside potential. And this should perform. Does this mean that the u. S. Market is looking for that . I do not think it looks like that. But on some longterm valuation measures, and maybe yes. Annum,year return per in 2000, it was 15 per annum, and this points to a froth. Great talking to you. Now, the imf Global Economic outlook is also what we are watching for, but as we very busyit it is a time on wall street with several Big Companies reporting. By a earnings, netflix helped to kick things off, and investors will be looking for possible changes. And they expect to see higher subscriber numbers help to buy the original subscriber series black, andhe new there is High Expectations that apple will be revenue guidance at 36 billion to 38 dollars billion, and we will also be looking for intel with the of six. Mcdonalds, cocacola, verizon, on wednesday,nd Analysts Expect the Worlds Largest social network to post higher secondquarter earnings revenuebile advertising went there. There is also a new chief operating officer. Other powerhouses reporting, boeing, at t, pepsico, and baidu , and then will be amazon, General Motors, ford motors, caterpillar, visa, and starbucks. Also thursday, the imf will release the World Economic outlook, giving us an idea about that. The growth forecasts may be cut amid risks in the u. S. And we investment. From things coming out, sales, and consumer prices, both likely seeing an increase, but sales of new homes in june probably retreated from the prior month, though the pace for home sales would indicate a recent drop in u. S. Rates. We will have more for you right here on bloomberg television. Back to you. There inang washington, d. C. The latest on the Rupert Murdoch pursuit of time warner, and we will look at the market open in hong kong and shanghai, as well. Alexa Malaysia Airlines disaster, washington said it was hit by a russianmade missile. Gazas Bloodiest Day. The uterine emergency session meeting as the fighting rages on. The you and the United Nations emergency session meeting as the fighting rages on. Ukrainian rebels say they have achieved the black box flight recorders. We have this report is a pressure grows on russia to establish what exactly happened. Thenspectors from organization for security and cooperation in europe but a closer look at the remains of Malaysia Airlines flight and 817. Three days after it was shot down over ukraine. They were not alone. Heavily armed separatist rebels shadowed their every move. Inspectors say bodies have been continuously removed from the site since the day of the crash. They can also inform you that earlier today we were at a by thisstation location. We have seen and witnessed ourselves for wagons, of which three were loaded with what we bodies in were 196 refrigerated conditions. Containingthe train many of the bodies. It provides further graphic evidence of the challenges here. It is also guarded by Armed Russian separatists who have guns but no uniforms. Their intent is clear, even if their chain of command is not. Our obligation is to secure this train, to prevent strangers from getting inside. Just as haphazard as the handling of the bodies is the treatment of the crash site. And of the usual meticulous investigations are happening. Brains have already moved some of the debris from the widespread crash scene. The whereabouts of the black box flight recorders is unknown. The situation is exasperating for the international community, particularly malaysia. Reeling from the loss of a second Malaysia Airlines plane this year. Ukrainian government has informed the International Investigation team that the crash site is under full control of the separatist group. Unable to each day, the crash site has paul allen, bloomberg. Us on the other stories making headlines around the world. The invasion of gaza has seen its Bloodiest Day yet. 13 Israeli Soldiers were killed in the past hours as well as 16 s. Estinian the army said its aim is to destroy the infrastructure of hamas and other groups. Is expected to be completed by the end of the week. Causing about 2 billion to the south of china. 18 people are known to have died after the storm made landfall in. Wisconsin in hainan up to 200 kilometers per hour. Itd expect it is expected to weaken as it heads over land into northern vietnam. We do have a couple of minutes of trading. Hong kong hang seng. Are seeing gains today across the asian pacific. Rebounding in 500 the friday session. Better earnings with google and some of the tech names listing stocks there. Yesterday, 6 drop for the dubai index. We want to watch that impact from the ukraine. Gazaround invasion in still in the minds of investors. We should know to japan is closed for a market holiday. Elsewhere, youre seeing a modest move to the upside. A bit of a downward move for the shanghai composite. Lets check in some of the early movers this monday. The checksum of the resource it looks like some of the resource names. Telecom is moving down. Were are seeing property shares moving. Going. Till early we should note, citigroup out with a new report on the hang seng. Could see about 16 upside in the next year. That is one you want to watch. Elsewhere, klci malaysia continuing to see a decline. We are following Malaysia Airlines. Lets bring up the stock and see how it is moving. Earlier it was unchanged in a declining market. Investors, of course closely watching the news on mh 17. We saw the share reaction there. Malaysia airlines now unchanged. We are expecting a press conference later today. We will get you more details when we have them. The stake a look elsewhere across the region. This is what we have here. A quick snapshot of the currency market. You take a look at the crude oil markets first. We will start with commodities. Crude oil is trading lower. Lower,ted the session second day of declines. Brent crude in london also down. You see the difference between the texas benchmark as well as the london benchmark. Is also lower. That will indicate some interest among investors and taking on a bit more equity risk. 1003 at eight dollars for the yellow metal. Are seeingencies, we a rebound in the euro today. We do have ministers meeting in brussels tomorrow to map the way forward in terms of sanctions against russia. That may impact currencies. The kiwi dollar is the currency to watch. It had its biggest weekly drop since january. The worlds biggest fast food chain runs into food safety issues in china. I want to get over to the United Nations Security Council. This is the palestinian representative. Over 400 People Killed in gaza. On a groundel takes invasion of the gaza strip. That is what we have at the moment. The un Security Council is discussing this. Lets get back to the story concerning food safety. Andoncerns yum brands mcdonalds. It is again this problem with supply chain in china. . Out of date food again that is reported to be the case. It is mcdonalds and yum brands. Kfc, pizza hut, fairly big networks in china, in all the big cities there. The name of that supplier is si. This stems from a report on dragon tv. Happened is that reporters of the network went into the factories and saw evidence that the workers repackaged the food, change the shelf life to another year and then shipped them out. It is currently being investigated right now by fda. Hais it is a problem with a supply chain but it does not help , wetation, which is already have a lot of food safety issues in the country. What do we have in terms of maidenpliers . Have a apology or rejected these accusations . Husi is owned by an illinoisbased american company. Are are saying they cooperating with the investigation. They are actually suspended from operating by the shanghai fda. Mcdonalds and yum are basically stopping purchases of beef on the request of the shanghai fda. Mcdonalds is also doing its own internal investigation of the matter. Thanks a lot for that. Out what else were doing here as well. Were looking at Rupert Murdoch and his bid for time warner. Fox has been rejected. It could be selling off foxs italian and german Pay Television units in order to boost that offer for time warner. What is the latest . What do we know . Deals being discussed. This one could possibly boost a renewed bid for time warner. Three weeks ago, before the news of the time warner bid came out, 21st century fox has been talking to bskyb about its italian and german units. Sky deutschland and sky italian. These are supposed to be worth 13. 5 billion. Fox has 57 of the german unit and 39 of the italian. It could be within the next few weeks or so. That could help bolster its bid for time warner if it were to make another bid. If it does. Some is also the matter of 39 of the sky the in britain. Hey wanted control for that it made a couple of bids for that as well. Think the last bid they made was back in 2011. Time, they were tied up with a phone hacking scandal involving one of its papers. It abandoned the bid then. What might happen is if sky decides to sell its stake, 39 percent in bskyb, it could loosen up some cash and would boost the bid for time warner. People are also saying that by getting rid of the distribution would be left fox with cable broadcasts and tv studios. That would help to make it a bit more focused. That is something that investors might quite like. Take a break. Still on the way, were looking at longterm trends of crude oil. Tensions up in the middle east. Do stay with us here with on the move. Interpreting the market is an exercise in reading between the lines. On friday we had new data on housing prices. It showed new home prices in a Record Number of cities in china. What happened . In the market, we saw shares a Property Developers actually rallying on friday. It all came amid concern that a it didntsecond seem to royal investors to roil investors. Group, theseate are the two Largest Real Estate Companies in china, up to about 8 . China operates in the commercial center of beijing. That is a snapshot of developers in china. Lets take a look at the data. Prices rose in 55 out of 70 cities, tracked by China Statistics bureau. That compares with 35 cities for the month of may. It shows that property prices are moderating. It could be dangerous for developers. The concern is bond default. Home sales rebounded 33 in june. Therein lies the issue. Certainly, prices restrict the lending market. Their ability to pay back debt becomes an issue. Now us is takes a closer look at this. , the sevendays repo rates were up 62 basis points over the past month. If you take a look at the 14 day rate, it is up 79 basis points. What is a suggest . Analysts say it indicates we could see in new wave of defaults in china, a debt as debtors struggle to make payments. Builder in the interior of the country. It warned that it could miss a 65 million july 23 debt payment. The Second Company to make such a warning. It would be the second default in china this year alone. We had another back in march. Chinas leadership is concerned about this. The premier commenting several months ago that debt is a major concern. He spoke out on what he called unavoidable defaults. The evidence is rising. Credit risk also increasing. 750 billion in the Corporate Bond market in terms of risk. Agricultural bank points out, there is reason to be concerned. Those bond defaults could spill over to the larger banking system. Shadow banking, the Property Market and he faults by developers in china are continuing to be an issue. That is a Global Outlook for today. I am zeb eckert. The wreckage of the downed Malaysian Airline is surreal according to the investigators. Prorussian forces restricted their access to the area. There are are also said to have retrieved the black pox flight recorders. The bodies have been put in refrigerated trains nearby. It is not clear what will happen to them. The United States says it has circumstantial evidence that the plane was shot down by equipment that was supplied by russia. It is high time for russia to stop supporting terrorism. If they stop to support, and application of this will be very simple a simple but effective one. They wont have shells, bullets, tanks and Missile Systems. Washington and kiev say the rebels had at least three of these russian made surfacetoair missiles and claim to have pictures of them being driven to russian border after the plane was shot down. The radar guided weapon that can hit targets at 140 miles an feet an altitude of 72,000 could certainly hit the plane which was a 32,000 feet when it was hit. Subsequently, we have seen a bit of a pullback. The barrel of crude can be. Lets get 102. 89 more from singapore dominic schnider. Thank you for joining us. What are you making of this . Obviously, that is introduced that has introduced uncertainty. However, if you look at these events, theyre mostly not lasting. Looking beyond the horizon, you dont want to chase that rally. If you think about crude oil, you go nothing happens, away with positive returns. If you want to take exposure to these kinds of uncertainties, crude oil will definitely be the better way than compared to gold where we see demand in asia on the soft side. Eastw much is a middle laying into what is happening . Particularly, we have this conflict in iraq on top of what is been going on in gaza. The possibility that iranian crude may enter the market and could replace some of the lost iraqi crude should that happen. Yes, there are many moving parts. The problem we have seen or the conflict with israel and gaza and the situation there has not really had that much of an impact, i would not say at all. The story is more related to iraq. People are a little bit afraid of, even though i must say it rock remains healthy. It is really a mediumterm issue. 60 of incremental supplies down the road should come from iraq. It is a longterm rather than an imminent cut in supply. I think right now, if you really want to take a position and expect more uncertainty, i think crude oil is one way of doing it , but over time, as are going into the fourth quarter, you might even see iran coming back. That will weigh a bit on the crude oil price. It is not a fantastic return. Youre looking at more of a hedging purpose than anything else. When you turn to what is going on in ukraine and malaysia the pressure is on vladimir putin. He could be facing a third round of sanctions. This or any readthrough for the gas price their . Russia is the most important supplier of asked to europe. It is very important. It produces more than 10 Million Barrels and exports 7 Million Barrels. Much of it to europe. Obviously, you have a positive impact on prices. We dont think this is going to happen. On the other side, if you look at gas prices in europe, they have fallen off 40 in europe mainly due to the fact that the winter was extremely mild. We are trading now at very low levels, multiyear lows. I think you can have any risk or geopolitical premium can quickly push up prices without actually supplied being curtailed. For the time being, we dont expect that the European Union will go so far that we see disruption in energy supply. Often these deals are oneonone. How does that affect things . At the end of the day, guys from is tied to the government. , gazprom any sanctions from would be affected immediately as well. There is no difference if this would be a Different Company or basically the state owned company exporting gas. There is no difference for me here. Great talking to you, dominic. The closer look at the Missile System that is thought to have brought down the malaysian aircraft. S is on the move coming to live from hong kong. Military and intelligence in the u. S. Say it is increasingly likely that the airline was shut military russian weapon. It can hit targets flying more than twice as high as mh 17 was. Concern about a coverup of the Malaysian Airlines crashed flight. Details coming up. Imaad salamat i Rishaad Salamat and this is on the move. Rebels in ukraine say they have the black boxes. Investigators complain about tampering of the crash site. The un Security Council is asting in gaza meeting gaza suffers its Bloodiest Day yet. How Rupert Murdoch may finance the deal. The pressure grows on moscow to help get to the truth about what really happened. Washington and kiev claim to have circumstantial evidence that the rebels shot down mh 17 with a russianmade missile. European investigators say their access to the crash site has been restricted by gunmen. Theysian ministers are in ukrainian capital and will soon be joined by the foreign minister. Are in the malaysia cracks to aviation disasters in the. Four months. How is the feeling on the ground . It is shock. City,ou walk around the you see malaysians on the street and talk to cabdrivers and hotel staff, they say they cant believe this is happening to the country. The nation is in morning. The flag is at half mast for a third day. Ce as faralso indignan as malaysians are concerned. If you ask a social media, you see how malaysians have rallied together. Criticism about how Malaysian Airlines should not have gone on that particular route when flying between amsterdam and kuala lumpur. They have rallied, saying that is a safe route. You have shown solidarity backing Malaysia Airlines. This is in comparison to what happened to mh 370 were malaysians were pretty critical about how the airlines and the government were handling the case. They are standing together as a nation. Theyre also pretty much in shock. To aviation disasters in such a short. Of time. Short period of time. Doing him how much they have . En getting the malaysian delegation has been having no access whatsoever to the crash site. The foreign minister arrived in v yesterday with a team of theres a broader delegation of about 132 or 133 experts, forensic experts, also people dealing with recovery. They have been trying to gain access to do their own independent investigation, but they have had no access. Has appealed for access. Was some access, but only for 75 minutes. Not enough time to do a proper examination of the crime scene. That prorussian rebels have been controlling the area and they have been seen to be digging through the evidence. It takes us back to what happened in 1991 when a plane crash in thailand. They never found the key evidence. What that means is that the case could not be fully resolved. Do stay with us. As we know, too dreadful incidents in recent months. Many are asking whether this carrier can actually survive. We will have a look at its history and its prospects. In its heyday, Malaysia Airlines was the first Southeast Asian carrier to fly to latin america. Its 3. 5 billion home airport in kuala lumpur was an architectural marvel. As a reminder of its national importance, an image of the 777 was printed on the national currency. In 1993, it bought ever larger stakes in the airline. It became the carriers top shareholder. That led to a bloated Airline Flying unprofitable routes with an ever deteriorating financial result. Malaysias flagship carrier, its source of pride, grew too large, too fast. Malaysia airlines now loses an estimated 1. 6 million a day. Its share price tumbled 11 friday. It is lost one third of its market value this year. Seth eckhard, bloomberg. Zeb eckert, bloomberg. Can this carrier survive . It will be hard. Beenis a carrier that has in tremendous financial difficulties. We are talking about them losing one and a half billion dollars in a. Of three years. It continues to be burning cash one plus Million Dollars per day. The last strawy for Malaysia Airlines. Analystsok at the rated by bloomberg. They sell the shares, they dont buy into that prospects of Malaysia Airlines. Difficult for this company to turn around. With mh 370 and before it was resolved, we have mh 17. It will be tough for Malaysia Airlines to turn around. Much, has ery bloombergwnload the plus app on your mobile. It is available for android, apple and he does. The big story of the day in the middle east, the fighting in gaza. The Security Council has begun an emergency meeting after what has been the Bloodiest Day yet. Latest me with the number of victims, any developments here . Is any news coming out of the meeting . So far, the only thing we have is that we only have the first one to speak to the press. Israels u. N. Ambassador rice. He denied a report that the israeli soldier captured by hamas. That is the latest. Is ongoing. It is an emergency meeting behind closed doors. Could be on the agenda a draft resolution. Ban kimoon has artie called israels latest incursion intro should. The second. In he expressed grave concern at the high number of civilians killed in gaza including children. He is calling for protection of civilians, immediate ceasefire, withdrawal of Israeli Forces from gaza, the lifting is it the lifting of is really restrictions on the movement of goods. There are obviously 87 gazan civilians killed. There are also 3000 injured. Their 83,700 displaced in gaza taking refuge. Humanitarian assistance immediately. Now. Is ban kimoon he is heading the meeting right now taking place. Israel must exercise maximum restraint and do far more to protect the citizens. To all sides,mand that they must respect International Humanitarian law. The violence must stop now. Meanwhile, the israeli Prime Minister raised serious concern. John kerry will be traveling to egypt to seek an end to hostilities. To the 2012a return ceasefire that was broken. Obama is calling, john kerry is going. What is been the impact on the lives of civilians . They must be torn apart. 3000 injured. That was a truce agreed. Lasted for less than an hour. The total death toll is about 430. That happened in a matter of a week or so. Civilians today. Where do you go to evacuate your family . You walk and walk and walk, but whered you go to . Theres nowhere to go to. That needs to be addressed quickly. A quick look at equity markets. Asianr the thing in pacific is responding to what is happening in gaza and the ukraine. Were seeing a rebound today that follows a rebound today that follows the global rebound that started friday on wall street. The s p 500 coming off of threemonth lows. Asian stocks are extending their gains with a few notable exceptions. Ng the markets declining down about 1 5 of 1 . Elsewhere on the region, firm gains. It looks like jacquard and taiwan are best performers today. Jakarta and taiwan are best performers today. The stock is been unchanged for much of this mornings session. We will see if it has moved at all and what is the down market today. We have seen currency active. Look at what else is happening around the region. We are tracking Commodity Prices, oil prices. The moderately lower. As well as the prices in london for brent crude. Taking a look at what were seeing right now in the currency markets. Emerging market currencies are advancing, theyre rallying today. The modest gains for the taiwan dollar. That currency that we talk about so often here. It is advancing. Seng is kong hang swinging between gains and losses. One to take a look at because it is disappointed investors, forecasting a slump and profit. Manufacturing is doing quite well in hong kong today, up 4 . It is raised its guidance for the related latest quarter. Is increasing on russia to establish what happened. The Prime Minister has certainly been commenting on this. This is coming up next. The world is demanding to know exactly what happened to the Malaysian Airlines jet. The pressure is on russia to establish the truth. Some good may come out of this tragedy. An opportunity to resolve the conflict in ukraine. Colin, thank you for joining us. Lets start things off with the basics. Allowed tos airliner fly over a part of the world that had artie seemed to military aircraft shot down in recent days. That had already seen two military aircraft shot down in recent days . There are three parties that are related and concerned. That is International Civil thetion authority, individual airlines will do their own Risk Assessment. The International Civil Aviation Authority had just put new guidelines in place that planes must fly above 33,000 feet. The Malaysian Airlines had made the Risk Assessment and they were following the guidelines. I dont think Malaysian Airlines are to blame. Who is to blame . Other fingers are pointing at the prorussia rebels in the eastern part of ukraine. Too far one of the systems, you have to be either welltrained be a russianindeed soldier yourself to have that knowledge. The thing is, how grossly do you and moscowmir putin were involved . How links are they to these prorussian rebels . Is extremely difficult to tell. Insurgents he situations like help,states fund, support, supply them with arms. I dont think they exercise full and total control. ,hey create these entities these nonstate actors, who then act on their own accord. Problem is hes not able to control what the rebels do. What are his options . Is there an awareness of that amongst the powers of the west . My problem is that most of the western leaders have a rush to judgment, which is understandable. Answers to these difficult questions. The problem is that we really dont know that much about what is actually going on yet. We have to wait for a full independent International Investigation before we rush to judgment. Is, if they put the pressure on putin and russia, you will get a backlash reaction that they will not cooperate with either the inquiry or the consequences of that inquiry. I think we need to not rush to judgment, have less public pronouncements about who is to aame, and more about getting full independent inquiry in place. That is the thing, isnt it . We are getting a lot of these claims and the danger could be that we are backing russia and putin in a quarter in a corner. I think of a go back to the roots of this conflict when the that was a mistake in my view. Putin was always going to see trojan horse for nature moving eastwards. The americans have a long history, called the monroe doctrine, claiming a sphere of influence over their own area. Russia has felt the same. If you look at their history since world war ii, they have cleared security concerns. That does not make it right, but i do think the west should be more understanding of what is driving the soviet position. In the current context, if they they will dig their heels in and not cooperate. So if played well, this could work out quite well, if he manages crisis well, both sides could sort out the situation in the Eastern Ukraine. I dont mean by this to suggest that the Ukrainian Government was involved at all, but the only real side that benefits from the bringing down of a civilian airline in this conflict is the Ukrainian Government. Moved into iraq, the Media Attention has been focused elsewhere. The two transfer planes did not really figure on the outrage radar. They went nobody commented on those. Attention has come back to the ukraine. It doesnt help brush or the rebels who shut down the civil airline, because nobody is going to support a movement that engages in those kinds of acts. Even if it was an accident, they have not benefited from it at all. In fact, it works against their cause. That. Nk you very much for that is right from the university of sydney. Boosting the bid after the break cared will have a look at the latest of Rupert Murdochs pursuit of time warner. You are watching on the move. Rupert murdoch spit for time warner. His bid was rejected for 21st century fox. German Pay Television units and italian could be used to help pay for the bid. Fox has been talking skytel you and sky deutschland. It wholly owned skytel you and 57 of the german unit. Our sources are telling us that this deal might go ahead in the next two weeks or so. It would basically help to free up more cash, which could help any renewed bid that fox may make for time warner. Estimated to be worth about 13. 5 billion. They have been talking for quite a while. Aboutly, fox was talking these units in may. Fox bid well before the for time warner. Bidell me about murdochs for a stake in england as well. He has been wanting to get full control of bskyb, where are we with that . He made a couple of bits before. Bids before. F there was a phone hacking scandal in the u. K. He abandoned the bid back then. A 39 in bskyb if there is a time warner deal. The stake has a value of 9. 7 billion. Would meanir stake that fox is left with cable and also broadcast networks and movie and tv studios. That would help make it more attractive to investors and make it a more focused company. Thank you. Apesof the planet of the topped the box office in north america for second week. Nearlyie has raked in 140 Million Dollars for 21st century fox. Disneys fire nd rescue disneys planes fire and rescue is second. Chinese collectors have shelled out millions at sothebys and earned a big onus. Picking up more than 400 million amex points after using his credit card to buy an ancient chinese ceramic cup. 200,000 u. S. Dollars worth of vouchers. Your get more on those doors and the rest of todays news if you go on our website. Business and market news 24 hours 24 seven. Bloomberg news, check it out. Indonesia have a smooth transition of power . The count nears its end. Indonesian election in jakarta. Taking a look first at incidents in ukraine. Investigators looking at the wreckage of the down Malaysia Flight. Heavily armed prorussian separatists restricted their access to the area. The rebels also claim to have retrieved the black box flight recorders. The victims have been put in refrigerated trains thereby. The u. S. Has circumstantial evidence that the plane was shot down by missiles provided by russia. It is time for russia to start to stop supporting terrorists. Stop of that support, the effect will be a simple one. They will not have shells, bullets, tanks and Missile Systems. Kids andn and kiev said that they had weapon canuarded reach 72,000 feet. The invasion of gaza has seen its Bloodiest Day yet. Israel launched its offensive after days of rocket fire across the border. It is destined to destroy the infrastructure of hamas and other groups. The purpose of this operation is to dismantle the tunnels, the mas haschannels that ha built and amassed in unbelievable ways. It will dismantle the military infrastructure of hamas only by smilitarize them hamas weapons will we be able to move to the next age and that is the political stage. Palestines representative in the line says there must be an immediate end to the Israeli Offensive in gaza. This crime has to be stopped and stopped immediately. And our people are demanding that those criminals who are committing these crimes against than 400 in the more 50 killed so far about 112 of them are choking. A large number of them are women. A large number of them are elderly and disabled. And those who are committing these crimes against our people should be held responsible. The vote count in indonesias president ial election is all most of her. Almost over. Sending around 14. 3 dollars in the campaign to be president , he is doing all efforts to make sure he wins the election. Both camps have said they have found evidence of [indiscernible] they are in the final stages of the vote count with about 98 of all total votes counted. This is the data from the late evening. According to a website that tracked actual results after the Voting Results up to the hasission website, prabowo 47. 1 . A dinner has been held on sunday for both president ial and Vice President ial candidates. Both candidates have been and asked both candidates to guard the process. Clarks lead is lets check on the market. Lets start with the jakarta composite. About. 5 . P advance comes along with the election as we await results. Seng swingingg between gains and losses. Shanghai is lower here in the kospiand the index is lower. Indonesia among the emerging market currencies seeing gains today. Rupiah up about. 5 . Fourth day of gains for the accuracy. The taiwan dollar actually seeing some honest moves to the upside aired another check of hong kong. We see the hang seng up modestly. Three stocks to keep in mind as you continue through this trading day. China coal energy disappointing investors on its forecast, dropping after forecasting a slump in profit. 1. 25 . Nicom also down its a june subscriber data in lower in may. Lets keep it the chinese thing. Foodworlds biggest. Upplier to change they are changing the shelflife, repackaging that space. Repackaging it and changing the year on the shelflife to make it seem as though it has not yet expired to put it simply. That is a report out of dragon tv in china which spurred these moves from mcdonalds and yum brands to say, no. The report is they went into the factories and saw that the food was being repackaged and then they changed the dates of the shelflife. It is currently being investigated. The old headache of, regardless of our standard, youre operating procedures, if you dont know where your food comes from, that will give you headaches down the road. Hasnt responded . Has it responded . It is run by u. S. Companies. They put out a statement to the gm in china reported by chinois. Is saying they have a very strict Quality Control system. They are cooperating with the investigation. Their operations have been suspended by authorities in china. Mcdonalds and yum brands stopped all purchases. That is not the only story making corporate headlines today. Lets look at some of the others we are following. Portuguese lender that rattled our gets earlier this month is looking for protection. They are unable to make to meet obligations. Europe. Any triggered General Motors is issuing an urgent order to use up selling cadillacs. Dealers have been told to halt the delivers of the 2014 model of bts sedans. Isason is a commissi defective ignition switch. The maker of camel cigarettes has been ordered to pay 23 billion to a woman whose husband died of lung cancer. Was sued in acan Florida Court for conspiring to addictiveerous and data. Disasters and five months. What is the future for Malaysian Airlines . A european investigation is on the side of the down Malaysia Airline in their access is restricted by gunmen. Goes on russia to establish what exactly happened here i. Look at thea closer remains of Malaysia Flight in 17 mh 17. Aged inspectors say bodies have been continuously removed from the site since the day of the crash. Today, we were at a and we have seen and witnessed ourselves four wagons of which three were loaded with what we understand is 196 bodies in refrigerated conditions. This is the train containing many of the bodies and it provides photographic evidence of the challenges here during it is also guarded by armed separatists who have guns but no uniforms. Their intent is clear, even if theyre a of command is not. Our obligation is to secure the strain, to prevent strangers from getting inside. None of the usual meticulous investigations are happening. Cranes have already moved some of the debris of the widespread crash scene. Whereabouts of the black ox like orders is unknown. The situation is exasperating for the international community, reelingarly malaysia, from a second Malaysian Airlines loss this year. The Ukrainian Government has informed the Investigative Team that the crash site is under full control of the separatist group. It has been unable to establish a safe corridor to the crash site for the international team. Both the russian separatists and the ukraine government blame each other for shooting down the plane. Lets talk about the future of Malaysian Airlines. Thank you for joining us. The pressure from our point of view is can it survive . Will Malaysian Airlines be flying in six months time . In its current form, if they dont change at all then the answer is probably no. Is unprecedented to lose two planes and just four months. Thats correct. In the history of aviation, which is about 100 years older now, no airline has had to go through what the Laser Airlines is going through right now. To major disasters in the span of four months. Two major disasters in the span of four months. They will go through four or five months of negative assumption before people start to look forward and put the past behind. For the case of Malaysian Airlines, four months after the first incident, things were about to recover and this happened. I think the perception on the airline is at an alltime low and will probably take a long, long time before passengers start flying back with them. What will happen next . Do we get the government privatizing this airline and soak up the losses and the longerterm and protected . Ifdo they just shut it down we dont see any recovery in four or five months . As for now, the government and the management of the company would be very hesitant to talk about the future because all efforts on the incident, securing the answer and getting closer to the company. For us, from the outside looking in, we believe that it is imperative that the company and the government needs to privatize the company and do some huge transformation with regards to the company. Form, i believe Malaysia Airlines will not be able to survive. It will exhaust all its capital and will not have any money left to continue flying by middle of next year. It is not just Malaysia Airlines. There are a lot of other act actors, ground crew, ground crew and such, right . Correct. Insurance prepares for things like this, efficient bounce sheet strength. Of course, it will dent the Balance Sheet for year. Aretheless, not many people too concerned about the insurance company. They have what they what it takes to persevere. More importantly the direct Company Supporting Malaysian Airlines, like mainly the inflight food caterer, the order boards the airports of fy two, and also the Ground Services through, at the end of the day, Malaysia Airlines generates 15 billion ringgit of revenue a year. That is going into the pocket of a lot of companies and a lot of individuals. All of this is under deep scrutiny right now. Will the government look at this airline and say, or haps what you just said, it is to big to fail . Too big to fail will be the word i choose. Deeperompany that has root links to all malaysians is probably a more accurate depiction of Malaysian Airlines. Whatever happens, the malaysian people love Malaysian Airlines and identity, food service, redneck sort route network, they will continue to fly with them. For international passengers, the Brand Association is not there. People tend to be nervous. Due to several incidents. In this day and age, you probably have five or six choices of airland to of airline Sigourney Weaver you want. I got Malaysian Airlines will be on the top of their priority ist. This is our top story right now. We have a look at what is. Appening in new lines industry indias richest man, having a look at why profits are rishel this time the end of the trading day in mumbai. Lets have a look at where the prospects are. This is where we have futures meeting futures moving. Losses you sawhe elsewhere. Watching reliance industries. The headline definitely is that reliance has been analyst estimates. Profits rose the most a betterthanexpected. Refining margins is what has never profit jumped almost 1 billion and a quarter, the highest quarterly profit by any company in a civil quarter. Quarter. Ingle high profits is crucial for reliance because it is spending nearly 11 billion to 12 billion to expand businesses, including polyester petro chemicals. It has seen output from one of fall nearlylocks 50 because the government slapped a fine on the company that it is just producing less natural gas than initially targeted. And also plans to start a fourth generation of broadband service. It has announced there could be some changes as far as i goes forward. But a key focus will continue being the 4g service rollout. Thank you. Have a look at some of the stories we are following this week. Expecting the official results of indonesias residential results on tuesday. Jake how we ramped prabowo prabowojokowi and her claiming victory. On friday, japans Prime Minister is heading to latin america. He will be visiting mexico, colombia, chile, and brazil. His visit will last until the second of august and comes on the back of the chinese president who has also been on a trip to the region, leaving argentina for venezuela earlier today. That is it for this monday edition of on the move. Asia edge is coming up. We have the latest coming out of Eastern Ukraine and also having invasion of gaza by israel. Also a look at the largest european restaurant hell in five years restaurant deal in five years. Hello, everybody. This is asia edge. The deadliest day yet in gaza, forcing a un Security Council meeting under way as we speak. The chaos to the crash site in Eastern Ukraine, investigators are now being let in. Relations repair the with the west. Rupert murdoch may use the sale of sky tv units germany and italy to push its pursuit of time warner. Boycott a and yum supplier accused of selling out of date meet. An official investigation is underway. The largest european restaurant order in five years will meet new chinese owner of honey capital. Keeping an eye on the markets, we placed an order for an update in asia and that is what we got. We are following a global rebound today despite the ongoing zing ukraine and gaza. You are seeing Southeast Asia with the exception of malaysia today advancing. Equities moving higher in sydney. The asx moving higher on commodities shares. Hong kong and shanghai see