rates and monetary policy. we are following shares in hong kong and shanghai. there is a pause, a temporary pause as chinese stocks trade above $10 billion in evaluation -- in valuation. these are some key movers. cap a specific -- pacific property developers doing well. it looks like life insurers are the big decliners. bell international is unfair pressure. -- under pressure. more on that in a moment. >> talks between greece and creditors went nowhere. did not take long for both sides to realize that they do not agree on major points. david is here. let's not talk about what they agreed on what didn't they agree on? >> it is so easy to get buried and lost. so much noise. this is what they don't agree on, the soul -- sole budget that excludes things. and how grief should achieve -- and how greece should achieve this. the gap the between things, 2 billion euros annually. how greece achieves that, there is a difference in opinion. money not spent, how that comes to fruition. they want that gap, they want pension cuts the imf estimates it to be about 15% of the economy. it is making that big chunk come out of spending. greece says it is prepared to negotiate, but not on those points. progress has to be made talks will continue. really, they need to get something done. yvonne: it has been dragged down markets, investors very concerned here. adding fuel to the fire, local reports of the flames being fueled even more. >> there was a time when we had a default and an exit. we do not know which one comes first, who decide on the exit. but we do know is this is based on a local report in germany that mr. younger -- yunker has warned that the eurogroup will have no choice but to prepare for a greek exit if they do not strike a deal immediately. yvonne: what is next? >> the eurogroup meeting in luxembourg. it is hard to imagine, if they do not get a deal done, they need to meet in principle, one state gets this done, then they go across germany not sure if there will be passage there, but once it is signed off, they need to disperse money. they need to take note of what is happening. i want to mention one last thing. it does not mean if there is no deal on thursday, that it is the end of the road for greece. they have set aside enough money to meet the imf. and a lot of bonds will mature by july. yvonne: a lot of assumptions. what is next for greece we have a ceo who will explain the possible scenarios. >> next what happens they grieve -- they give up a third of their cabinet, they resign. they cannot vote against him. that would be unique, this is the first left-wing government there in greece and they have committed suicide within three months. they will be allowed to protest but measures will be put in place them a but effectively -- sherry: not just degrees, but we have talked about china this morning. there is a possibility for more rate cuts. >> the liquidity we think for the rest of the year remains forthcoming, so we expect to triple are cuts and we expect another rate cut, so it is also difficult to make a case that the market should come down even though valuations look high. sherry: can't forget about the fed decision due later this week. this is that national australia bank they expect to raise rates later this year. >> no one is expecting a rate rise this weekend, but i think there will be interest in the points, the individual projections as to where they think rates will be at the end of the year and subsequent years. at the moment, it is at .5-.75 and there could be tight means that tightening's. sherry: and now a closer look at stock movement today. hinted at shares in hong kong prada. zeb: we will look at prada. these luxury retailers have been hit hard by the slowdown in china. we used to see lines of evil waiting outside of -- lines of people waiting outside of these stores, but their sales are down. it is a three-year low, nearly 6%. they say that hong kong and macau will remain a challenge. this report is reporting their estimates. every retailer as you can imagine is trying to figure this out and how to write -- right this ship. trading lower, we have the latest home price data home prices at about 1%. the other big story in australia, the media industry there and this one getting a lot of attention, it evolves 10 -- involves ten network. they sold a stake today to fox tel. there you have it ten is down. new score is also down. -- sherry: in other news, alibaba is creating its own version of netflix and hbo. it will be available at about two months and will carry foreign and original material. this is estimated to be worth about $6 billion. this was a big one, jurassic world ruling the box office in its debut, hosting the second-biggest opening weekend ever. universal pictures'earned more than $200 million in the u.s. and canada. only the avengers has earned more. dress it world but -- jurassic world put it at a billion dollars. and protests against a currency scam. thousands of people robbed of more than $1 billion. take us through what happened. >> this is a scam, it had hallmarks of a scam. if it is too good to be true, it probably is. this is a website. it has closed its doors and vanished. it's explanation by the way for foreign exchange trading on its website to learn investors -- lure investors was taken word for word from wikipedia. you can see how maybe people in a remote parts of china if people are saying that this is promising to percent returns every month and we want to get money abroad, hey let's jump on board and they did. 29,000 people at least, some people investing 160,000 u.s. dollars elsewhere, $45,000. sherry: how did the scam work? >> they promised certain returns on investments and then down the road they all got e-mails saying that the system was hacked after they sent the money, and then not a word. money gone. sherry: and these people trusted this company, why? >> that is the question. they fell for the scam. they gave them a place to park international investment. it is not necessarily a swift company. geneva prosecutors have confirmed that they are investigating a swiss stress company and a management company. basically they claim to be licensed by swiss regulators, they were not, and they got money from chinese individuals, shut down shop and ran away. we do not know where they are. sherry: this is something that we have all been kind of observing, which is not investigated when it comes to retail investors, not to blame the victims. but at the same time, there are things that people do to make sure that this money is not going into a black hole. >> there is some of the, but you also go, be smart with your money. beware. we will see how this pans out. singapore, hong kong china switzerland this crosses borders. we will see how it goes. sherry: $1 billion. double ouch. one billion outages. coming up paid to stay away. we will be in sydney, finding out how their relationship is -- with indonesia is facing challenges. ♪ sherry: checking stories around the world. many have crossed into turkey escaping islamic state. troops were overwhelmed by the number of refugees, 13,000 who crossed in the last three days and airstrikes on the islamic state in northern syria. south africa's high court is buying omar al-bashir from leaving the country. that is until it is decided if he will be arrested on war crimes. there is a summit in johannesburg with all the sheer -- al bashir almond them. he is accused of atrocities in the western region of darfur. and a satellite has come in with -- probe has communicated with scientist. batteries ran down after landing on a comment last year. now that it has direct some might it has recharged and could have power until october. equipment makers are facing a challenging future as networking transitions from hardware to software. on top of that, juniper networks is facing reorganization and redefining its strategy. my next guest took over the home as ceo at juniper rami rahim. you are a veteran employee, now the top guy, and your time at juniper how having seen the company grow as the internet itself grows? >> last year was a productive year for us, we sharpened our strategy, we really aligned the company around a mission i think is extremely powerful and important, to get that amount of -- of vast amount of capacity into the hands of customers and build cloud infrastructures. it is happening today and i think that juniper is at the forefront of that transformation. how much of that is hardware demand and how much of it is -- web? >> there is a need for software and hardware, but there is a trend where more and more of the challenges being sold -- solved is with cloud-based architecture. whether it is business, residential you are helping them with cloud, from a data center. when you are dealing with the kind of growth, internet growth in asia more than 50% of the internet users in the world are here, china has the most internet users, india is growing internet users at a rate of 40% year over year. to deal with that paramedics you need to develop -- performance, you need hardware and four. sherry: fiber optics optics is one of them, but you are not in fiber optic? what are you envisioning will be the future of demand? >> switching, routing infrastructure that keeps pace with the appetite of business and residential, mobile users around the globe. the majority of the demand is satisfied through infrastructure. there is a large percentage of the world that is accessing the internet through airwaves ones that information come of that value goes into the ground, it is typically fiber and these problems that we solved at juniper. sherry: rami rahim the ceo of jennifer. coming up, pro-democracy advocates back on the streets protesting in hong kong. we will speak to one lawmaker who says that these reforms from beijing are a step forward. ♪ ♪ sherry: alibaba is creating china's version of netflix and hbo. they have announced services that try to target 600 million families craving more entertainment content. that is a lot of families and possibly big revenue for alibaba. we are taking a look at this. >> we know that they dominate the online shopping business and now going into streaming. this is called cbo -- tbo. there is a smart tv that carries this innovation. some of their shows, bought overseas. we do not know how much it will be for consumers. this is already crowded by a lot of local players. alibaba may have some advantages because of the user base they have already they might be able to get subscriptions and they have a cousin relationship with the government, so maybe easier to get licenses that they need. netflix we talk about being the pioneers but alibaba could ruin plans for netflix to come into china. sherry: i guess taking a page out of the playbook of amazon. they have amazon prime, amazon tv, they have original content as well, and they sell a lot. it is an interesting model, because online video in china, how big is this? yvonne: $1 billion and is expected to triple by 2018. alibaba wants a bite of that. and a buying three for ali baba they have invested in media companies, they are buying stakes in different medias alibaba pictures as well. the stock has doubled this year. jack ma has his eyes set on hollywood. sherry: hollywood has an eye on china as well. interesting. let's check in on a trading. let's head over to sydney where this is a live look at the opera house and we see some losses from earlier in the day. still a half of a percent down. .5%. there is a battle against -- right now. many infected with mers right now. in hong kong, it was disappointment, over the weekend we do not see cuts and that is weighing down on chinese shares today. s h i also down. some fluctuations in the market the latest on the opening after this short break. ♪ sherry: asian shares and itthe euro falling out the latest rounds of greece and negotiations collapse after 45 minutes. the european commission says there is no change between what creditors are demanding and what greece is prepared to do. the focus now turns to a meeting of eurogroup finance ministers on thursday. everyone from chinese firms to hong kong tycoons are scrambling to get a piece of the next major ipo in hong kong. conglomerate legend holdings is looking to raise around $2 billion. when it goes later public in the week. australia's struggling broadcaster is raising $120 million to stay afloat. it is selling a 15% stake to foxtel for 15 australian cents a share. that is a 43% discount to its closing price on friday. it will use the proceeds to pay back debt. let's get the latest from the markets as tokyo returns from the lunch break. how are stocks holding up today? >> japan is hopefully well satisfied from a good lunch to come back to eighta down day. vietnam is the only market posting a modest advance. we will get into it in a moment. why is it advancing? look at the material stocks -- the big decliners. mitsubishi materials down in the session. three stocks that want to take a closer look at -- it is one of the key movers. nearly 8% gain -- a frozen food company that provides warehousing and packaging. it is benefiting from an upgrade today. it has raised its profit forecast. a stock to watch, certainly one that is gaining based on its potential. japan tobacco is down 1%. domestic cigarette sales are up about 1%. that is good news for their overall business in japan. we also have the japanese finance ministry saying it will not proceed with a share sale of its japan tobacco holdings to fund earthquake rebuilding efforts. that had been under discussion for a couple of years. a representative of the japanese banking stocks in a new analysis indicates these banks hold about $118 billion in domestic equity. they would likely to be more sensitive to lower roe's from japanese companies. watch that and how it filters through to the ultimate balance sheet. that is a check on what is happening. >> thank you. thousands of people marching hong kong to protest against the china plan to have a new chief executive. 3000 people showed up at the rally, while below the 50,000 expected. it is having a list of its chosen candidates something that groups oppose. lawmakers will debate the electoral reform plan on wednesday. joining us in the studio is chairwoman regina. we talked with allan the leader of the city party. he thinks you will not get the votes. you only need four pro-democratic legislators to support this. you likely will not get it. what happens if it is vetoed? >> the government motion is likely to be approved. i think after the vote my colleagues will clamor for a new deal. i don't think that will be forthcoming from beijing or hong kong government. the chief secretary and chief executive have made it very clear that the election dispute has taken up so much of their energies and resources. a lot of pressing social issues have been neglected. they have been put on the back burner. it is really about time to focus on these pressing social, economic issues. sherry: that may be good but why not just give what many in the city want which is democracy based on universal definition of what democracy is and not necessarily china handpicking a group of elites of thee electorate and basically putting three of its own picked candidates for a vote? >> i think others are prejudging the decision of the nominating regime. the beijing package involves in franchising 5 million more voters. it is a big step forward for universal suffrage. i cannot see how people cannot be for it. it is universal and equal right to vote. being a eligible to vote. sherry: do you think this ultimatum will work? basically saying to these protesters and pro-democracy legislators that if you don't over this, you don't get anything. >> the voters will not work because of they want a system of nomination and election outside of the framework, that is equivalent to trying to rewrite it or cut beijing out of the picture. the reality is we are a part of china. it has guaranteed a separate system. our lifestyle and basic lives -- we cannot afford to renegotiate that. i don't think beijing will. sherry: if it is vetoed you will continue to press for change. in what way? >> my colleagues will continue to press. they will be adopting more and more adaptations like continued political cooperation. a lot more filibustering. a lot more holding up of public work projects which they don't like. hong kong will suffer as a result. sherry: that sounds really like a political threats and fostering. >> unfortunately. it is a wrong type of mindset to adopt. beijing officials have made it very clear the democrats will not hurt them. i don't think they would even be allowed to set foot in china. in mainland china. it will only hurt hong kong. so what would the voters think at the end of the day? all this focus on hong kong nationalism is really going against the grain of hong kong success which is our openness and outgoing character. i think this is really misguided. sherry: a lot of different opinions certainly. at the top level and on the streets. always good to see you. thank you for your insights. coming up on wednesday. a new disagreement is brewing. a turbulent relationship between australia and indonesia. the prime minister has not confirmed or denied that they were turned boatloads of refugees to indonesia. let's go to paul allen. how damaging is this? paul: well, we are at the words stage. indonesia's foreign minister has demanded an estimation over this. the australian prime minister says indonesia needs to have the sovereignty of its own borders. this is not been confirmed that an australian customs official paid 5000 australian dollars to each of the people to head back to indonesia. the australian prime minister has neither confirmed or denied. they say they used a range of measures to stop the boats . that was a key election promise the government has delivered on. the opposition has been making a lot of mileage out of this accusing the government of paying money to criminals. you can be sure that even more mileage will be made of this ruling issue angie. angie: paul, plenty of words here, but are there any signs of a diplomatic action from either side? paul: it is only recently that australia has gone back to indonesia after the last falling out between these countries which was over the execution of two australian nationals who had been held for about a decade on drug smuggling charges. nothing concrete yet. this is not just words and exchanges, language at this stage. it feels like bailey a month goes by without a new chat -- barely a month goes by without a new chapter written in this relationship. angie: paul allen, thank you so much. in other news, honda shares are dropping for a second day after they said they would have to spend an additional $360 million to cover recalls over faulty airbags. honda's the company most affected by what has become the largest product safety recall in u.s. history. takata agreed to increase its recall by 34 million units. one of india's largest resort companies is merging its unit. billionaire -- the resources will combine and free up billions in cash and simplifying the group structure. the $2.3 billion deal will give them some relief. the shares have followed nearly 40% in the past year. state-owned firms and hong kong tycoons have been attracted to legend holdings upcoming idea which could raise as much as $2 billion. we have shery ahn looking into the listing. everybody wants it these of this. shery: they sure do. what we do know so far is that legend plans to sell more than 300 million shares at about 39 hong kong dollars. a piece. we do know a bit of the company. let me tell you they owned, as we mentioned the computer maker lenovo has about a 30% stake in the company. their business ranges from i.t., financial services to properties. according to their website, they have assets of about $47 billion and employed more than 60,000 people. they say the ipo funds will be used for strategic investment including further development of existing is mrs. and new business -- businesses and new acquisitions. this has become a very popular ipo. we have the former property chairman walter being part of one of those investors. we have electronic makers tcl as well as a billionaire. more than half the offering of about $950 million in stocks as already been allocated to 24 cornerstone investors. they will hold the shares for six months in return for a guaranteed allocation. this comes at a time where the trading market is rallying. we know chinese stocks are worth more than $10 trillion. it comes at a time where the mmci has declined to put shares into his global benchmark. there is also a bunch of ipos -- about one dozen approved for this week. back to you. angie: thank you. coming up next, china stocks fall for the most in two weeks. there is room for some easing but do not hold your breath. asia edge is back in a moment. ♪ angie: checking some stories making headlines around the world. the israeli government has accused the palestinian's of work crimes. they have defended israel's military against allegations that its own forces made crimes against you meditate. -- humanity. it is expected to be critical of israel's wartime conflict. hundreds of women and children were killed. most of israeli soldiers were casualties. after a week long, the world health organization says there is no evidence mers virus is spreading across south korea. the president visited a hospital hit by the virus to check on measures being taken against the outbreak. 15 people have died for mers. nearly 150 have been infected since the outbreak started in south korea. monday has been declared a day of national mourning after flooding killed at least 12 people and left more than 20 others missing in georgia. heavy rain caused this damage. a river burst its banks. dozens of animals apparently escaped the city zoo which was severely damaged including tigers, lions, bears and wolves. officials one residence to stay indoors until all the animals can be accounted for. we are trying to keep the animals in the zoo here. joining us is richard, david and andrew sullivan. let's talk about china right from the get-go because richard, $10 trillion. that is nothing to sniff at. richard: it really underscores the magnitude that is being seen in china. it shows investors cannot ignore it. the market cap is doubled this year. that is $5 trillion added which is the equivalent market cap to japan. the u.k. is about $3.8 trillion. it is really showing how much value has been added. of course, this is the relatively low in terms of gdp. bears would say this shows the risks of what happens when the stocks are reversed. angie: what do you say? >> it is part of the fact that china is opening up its economy. it is taking money from under the bed since the shadow banking system and putting it into the public arena. that is what the government wants to do. they want to keep it going. they had trouble getting money out of the bank's because they tend to focus on the soe's. that has helped them. it needs that capital market working in order to reform which is part of this future value. collects there is>> we had a show today that there is $450 billion worth of margin debt. what happens if and when that margin debt starts to unwind? how does a regulator try and control that without risking the market tipping over or getting too excessive? >> it is 10% upward down a day. the most we will see any day is 10%. on the margin financing side it depends on the blue-chip of the shares being pledged to security. if it is a blue-chip, it might go up to a 50% margin. if it is a secondary or third, you might get 10% or 15%. it is already being regulated. within the organization we are watching which shares are moving and how much money is being put against them. that is what we have seen in the past couple of weeks. it has gone up slightly against the shooters except -- shares accepting security. >> it is rumored that they were going to cut -- could have cut weather was a reservation. angie: a lot of people came in the weekend just in case. >> according to your notes, they are holding off as much as possible. why? >> especially this week -- why would you cut the head of the fomc? if it does do something, you will look silly to have cut because they would try to find more ammunition afterwards. if they can hold off doing it, i am sure it will. it has changed its policy from being -- to pulling the lever and waiting for time and seeing what the fallout is. that shows you the pvoc is more confident that it could actually maneuver itself position itself better than it has in the past. angie: the chinese money -- why are we seeing that much more spill into the hong kong market? you look at the premium now and it is about 38%. a lot of people thought that would just shrink? >> there were a lot of ipos going on in china just like in hong kong. the ipos in china are not held back by the 10% per day. the opportunity to get 30% a day sucks the money back into china and people go for the ipos there. we see that evanebb and flow. you tend to see a pickup in what happens in hong kong. people every much active trading in china and that is the nature of the game. that is why you are seeing some of the international money pulling out because it is not used to that volatility. >> of course, what is happening in greece. 45 minutes -- that is not good. what could be done in 45 minutes, including walk away from what could be the end of an experiment that was supposed to garner value and growth in europe and the world economy? >> i think it has been an ongoing story. there was a lot of fatigue. i'm sure people did not hear the right words and that was it. angie: they both have a lot to lose. maybe betting the other one has more to lose than they do? andrew: it is a huge overhang. the greek market selloff on friday ahead of that news. you can only imagine this will be worse today. i think most people have made preparations just like the greek banks are seeing money coming out and going overseas it has come to a level to where maybe it is being mitigated as far as the immediate consequences will be felt. the longer-term consequences will have to wait and see. people be looking at what happened to places in iceland that defaulted and that gave them the ability to turn around the economy. angie: that was a long time ago. it was last decade. thank you so much, andrew sullivan. thank you, richard and yvonne and david. coming up next, saudi arabia opens its stock market to foreigners for the very first time. what could it mean for investors? we will hear from the head of the country's investment authority after this short break. stay with us. ♪ angie: quick check of the markets right now on monday. let's take a look right now -- down more than 1.3% calling for the first time in three days. there is a lot of sentiment weighing down because of the anticipation that it may have come in with rate cuts over the weekend which did not happen. shanghai composition is falling 1.5%. looking ahead to the markets in the east -- early sees investors will gain direct access to the saudi arabian stock exchange for the very first time after a relaxed regulations. bloomberg spoke with the governor of the investment authorities and told us the intention of opening up access. >> the measure is the capital market sends a clear signal that we are looking for quality investors that bring in diligence, research, and help the economy grow. angie: bloombergs mark barton takes a look at what impact this opening up could have on markets. mark: a slice of saudi, the country's $550 billion stock exchange is open to foreign investors. 170 listed companies, the capitalization is the biggest in the arab world. its market capitalization is bigger than moscow's and more than 2.5 times the eue's. what about growth prospects? it is the biggest economy in the dcc, a political and economic enterprising itself. it is not only the biggest, it is also the fastest growing. the saudi economy has grown 16% so far this year. if all goes to plan, it could join the emerging market index as soon as 2017 accounting for 4% of the total gauge. before you get carried away, only institutional investors with at least $5 billion under management are allowed to invest directly and even then each cannot hold more than 10% of the overall market value. once more, you cannot hold more than 5% of any company and together foreign investors cannot own a majority. with the world's largest oil producer eager to diversify from black gold, investors can try their luck trading in the desert k announcer: the following is a paid presentation for p90x3 brought to you by beachbody. do you wonder what it would be like to be in amazing shape? do you look in the mirror and wish you had a six pack? don't you want a body that can perform like this and look like this at least once in your life? now, you can get that body. faster tha