Authorized to fly in this area. Nofly restrictions and they said it was not a designated war zone. It was a billing boeing 777 wide body. It was designed to bring down military aircraft, cruise missiles. Comments from the Ukrainian Ambassador to the u. N. Insurgentsd russian talking about a plane they shot down. Reaction was that they reported to moscow that they shot down a military airplane. Then when they got to ground, they made a second call informing them that it was a civil one. The Un Security Council meeting today at 10 00 a. M. Local time, an emergency meeting to discuss what is needed. There are blogs and tweets about this. I just heard what you have the investor saying there about rebels being in touch with moscow. We have also had tweets apparently in certain things were actually released on social media when they found out it was a passenger plane. Comments were removed. They were released by the prorussian insurgents. Thats overall the latest, if you like, on that. Then its about reaction across the world. Referred from David Cameron and various other people, barack obama and vladimir putin. Like they were on the phone at the time discussing sanctions when the news came in. Putin told him about this. President putin is blaming the Ukrainian Government quite where this happened they are responsible. The ukrainian president Petro Poroshenko denying that and he has also been talking to president obama. The crash site evidence will stay in place and he welcomes all assistance from the u. S. So farthe situation blaming the prorussian rebels. It would seem that they are responsible for this and then you have angela merkel, the german chancellor, also involved in sanctions that they have not as of yet. She is demanding a swift independent inquiry in this. Add to that the u. S. Reaction, president obama himself, you can see that on the screen, the various leaders there, shocked and devastated. An unspeakable crime. The worldday for saying it is less like an accident and more like a crime. Vice President Biden said it was blown out of the sky and that is probably the most vocal of the comments so far. You. Hn dawson there, thank malaysia still unable to verify the cause of the crash. This is a tragic day in much has already been a tragic year for malaysia. As we work to understand what happened, our thoughts and prayers are with the families and friends of those on board the flight. I cannot imagine what they must be going through at this time. Sophie joins us from Bloomberg Television malaysia. What are people saying there . Rish, it has been a somber start this morning. In the first hour of trading, following 16 , down the most in nine weeks so this is putting some pressure on the National Carrier as well as major shareholders to draw up a revival plan which they said they were looking to issue in the next six to 12 months. On the part of the authorities involved among Malaysia Airlines said that they would read rerouting all european flights operated by the airline said this is a bit of a relief for those who may be traveling on Malaysian Airlines to and from europe. On the part of the malaysian government, they will be issuing from the transport minister at 11 00 a. M. Today there is a rescue flight schedule at 10 00 a. M. Involvingbe a flight volunteer and support personnel to kiev. We just heard the Prime Minister there. What else did he say during that News Conference . Essentially, he did say that there has yet to be verification for the mh 17 incident but he is in Constant Contact with the related parties. He has spoken to president obama. Ofhas spoken with the leader ukraine, Petro Poroshenko. He has been in touch with the dutch premier. All in all, a lot of transparency in terms of what information has been offered to the public since this is a tragedy for the Malaysian Public at large. Much for that,ry sophie, bloomberg malaysian tv. The other major story were covering for you today, advance in the middle east, israeli troops invading gaza after eight fragile ceasefire ended. Significantfirst Israeli Ground operation on the gaza strip since 2009 and a comes 10 days after airstrikes have left more than 200 palestinians dead. Israel says at least 1200 rockets have been fired by hamas in the last week and a half. Swiftactions parking interaction with a high number of civilian deaths in gaza that have an heart raking. The Un Security Council is to meet in an emergency session later. There have been a number of incidents involving the death of civilians including the killing of four boys on eight beach in gaza city. I hope israel will do far more casualties. Lian there can be no military solution to this conflict. All, tont, first of have an understanding by the International Community that the s needinian civilian protection. Since the party that is supposed to provide protection for them is the cause of their misery, it is killing them. Jonathan joins us from tel aviv. We heard from him a little earlier about the nights events. Has beentillery fire intense through the night. Palestinians say roughly around 10 00 p. M. There were power cuts across the territory. Reporters lives near the beach and he said you could hear the bombardment from the land, air, and sea. You talk to any israeli and they are just gob smacked. They cannot believe in the middle of the afternoon, you will hear the air raid sirens. They will go into a stairwell and the bomb shelters are open in neighborhoods and 10 minutes later, the all clear signal goes out and everyone is back at the cafes at the beach. In the back of all of these geopolitical tensions, Energy Prices rising to a swell and david will have a look at how much they are up. Lets look at the brent futures. From 5 a. M. , with two geopolitical events happening, the plane crash, and then we had the gaza strip invasion by the israeli military. Comments coming from the chief strategist as we look at crude futures right now. He says we potentially have more ground to gain as the market moves to reestablish the risk premium now. Apart from the escalation and the actual conflict there, the question is to what extent big picture will europe be drawn into more sanctions which ultimately will be impeding the flow of gas and oil. His recommendation, basically he predicts investors will sell the 105. 20. T once they hit just overnight to give you a sense of this move here, thats about two dollars 50. It could happen. Thats the context were looking at right now. Far as theng out as gold prices concern. In sydney, were are off the lows of the day. Looking deeper into the resources sector, there you go. Rising and this time. Risk aversion, gold mining names. Gold, gold, gold gold prices of u. S. Dollarsg 20 per ounce. Same story we are tracking here and equity markets also falling. Back to you. Discussing the geopolitical applications of the downing of the Malaysian Airline. You are watching on the move. Coming to you live from her Central Studios in hong kong streaming on bloomberg. Com as well as your mobile device, this is on the move. Story, shooting down of the Malaysian Airline in ukraine. Here is what we do know. The selling 777 flying from amsterdam to kuala lumpur the boeing 777. Shot down bywas prorussian rebels, something that is denied by them. All 298 on board were killed. The malaysian Prime Minister says that there was no distress call and he cannot say what caused the crash. Via skype by a specialist and defense studies at the Australian National university. For joining much us. If it is proved to be prorussian rebels who downed the aircraft, what does how does that change the geopolitical game . Where does that leave the russian president and russia itself . Certainly change the geopolitical dynamics significantly because we have a demonstration of a very careful approach to managing russia militia. You would think that this would have required highlevel management. You do not deploy this kind of surface to air Missile System without checks and balances and you do not deploy them in the middle of an internationally recognized civilian Airline Flight route and expect that it managed by some half trained member of a militia. It is a serious and egregious briefer responsibility by whoever is responsible. The question there is who is responsible . I need to get to the reports weve had of a telephone call from the rebels to moscow saying aat they thought it was military aircraft and there were some tweets made to the same effect. What we got here is ukraine and the russian rebels are operating. This could well be a ploy. If it is verified, if the , thecript is verified militia that are reporting back to russia and then getting direction from russians, then this is a damning act of international terrorism, and effect. This is something the International Community will react very strongly to. Will germany, france, italy joined the eu and get a backbone and opposing with some sanctions what the russians have done . The question beyond that, its hard to say yet. To be fair, we do need to wait to verify exactly what happened and we are in the context where people are trying to deceive each other and there is layer upon layer of complexity in this campaign because the stakes are really high. Gowe have about 12 hours to before the Un Security Council is meeting. What can they do on top of the sanctions already on russia should they determined that they were behind it . Thats the thing. A stronger act in support of the ukraine may very well be called for. There are a number of matters that could probably be implemented but it could include deployment of American Military equipment particularly patriotsrelated equipment that they have not been given so far but it could be a bit of a game changer in the equation. Pretty delicate balancing act because putin really does want to up the ante on this. He has the numbers. He has the forces. They are along the border and they can completely change the equation. Its only in the eastern part of ukraine where the russian people dominate. The majority of ukraine is not russian ukrainian. They are quite culturally distinct and separate. I dont think thats what he high to do, but there are stakes here. Emotions are high. Theres the russian reputation is being extremely silly this this is verified. Or do youh harder back down . Heres hoping that president putin will recognize that this is something that requires a significant that down. The fact that he has put flowers on the Malaysian Embassy grounds , the fact they had the minute to an attemptaks at contrition, a recognition by the russians that theyve really blown it here. Theyve taken this a step too far and essentially by leading the militia operate without sufficient control and restraint by the russian benefactors, they have really brought upon themselves the empathy of many countries around the world. Like inky so much for joining us and for your candid thoughts from the Australian NationalUniversity Joining us there on skype from canberra. The effect this is having on the market, we go over to beijing with the details right after this. You are on the move with me, rishaad salamat. Microsoft announcing the largest round of job cuts in its history, 18,000 people, as they integrate the nokia handset business. Shares did manage to climb about 1 in a declining market on that news. Helping secondquarter sales coming in ahead of analyst calculations with revenue coming in at about 13 billion, google boosting user traffic. They do not want to rush the process of the Regulatory Approval from the fcc from the sec. Alibaba wanted to list on august 8 seen as an auspicious date in the chinese calendar, but the ipo may now happen in september when it lists on the new york stock exchange. Its expected to be the biggest offering in american history. Prices in china reaching record levels. Stephen engle joins us now from beijing with the details. The big question right now, whats the bigger risk to the economy inflating the bubble and exacerbating the debt worry or a sudden downturn that knocks out a main pillar of the domestic economy . The latter scenario is starting to take shape as begin home prices for june. They fell in a Record Number of cities tracked by the government and numbers just released in the last hour. New home prices in china of the 70and 55 out cities monitored by the government month over month. Yearoveryear, still 69 out of 70. They change the way to compile the statistics. Tier one cities both declined by 0. 6 from the previous month, the most since since the way the records were compiled were changed in the first month of 2011. Prices fell 1. 7 in the eastern that saw angzhou price decline. This is month over month gaining 1. 7 . Number of is the cities that saw price gains. Its been a germanic turnaround over the course of the last two quarters. Prices rose in just 8 out of 70 cities. Two months ago that number was 44. In january, 62. Now it is 8. Cooling measures have taken hold and they may have gone too far. Well see. Stephen engle, china correspondent, with the latest housing prices. No survivors. They think progress and rebels are responsible for shooting down the Malaysian Airliner. We will have the latest from kuala lumpur right after this. Tragedy. Ible an airliner shutdown in the ukraine. Who is to blame . Prorussian separatists . It is the second Malaysian Airlines disaster this year. Lets get more. We are at the airport. What are you hearing . Of the scenessome there are harrowing. It is family members have been coming and going. They have been rushed into the holding room. No members of the media are allowed in. I understand that they have been put up at a hotel not near the international airport. Somewhere in the capital. , in thee, this Morning Press Conference by the prime , he said it was a been a day in what had an tragic year. We expect another conference in the transport minister. I have met and spoken to a few members. One was waiting for his brother and sisterinlaw. His nephew just graduated in england. He was stunned. Not even crying. Completely shocked. I spoke to a psychologist from she had who said that rushed to the airport to give counseling to members of the crew. They keep on flying today and tomorrow. That is despite the tragedy that has befallen their colleagues. It is very traumatic. Yeah. Absolutely. What is the airlines saying at the moment . You know, they are really trying to take care and explain to the family members. They were supposedly departing from kuala lumpur to kiev. Deployedairlines personnel to kiev. They will go to the site of the crash. They are not saying much. They are very guarded. They have the experience of mh 370 two draw on. To draw on. To hold aaordinary press conference at 4 00 in the morning and the government is showing that it wants to be open. The Prime Minister said that no stone will be left unturned and the perpetrators will be punished. I have spoken to several world spoken to he has several world leaders, including barack obama, who have said the same thing. Thank you very much. The disaster is the major subject so far this morning. The circumstances are unclear. Mistaken may have been for a military jet. Wonder if, maybe, whoever was doing that thought it was a tactical aircraft. Airlinery mistook the for a ukrainian tactical aircraft and took it down without realizing what they were aiming at. The second tragedy to hit Malaysia Airlines. In march. What are you hearing . Take a look at shares right now. Down 13 . Investors are spooked by the incident and rightly so. The carrier had financial problems and the stocks have plunged over the last six months. It was indicated earlier. The flight is missing without a trace. This is the last thing they wanted. There have been in deep losses over the last years. Insight. Expect the losses to continue through 2013. 2014. Talk about having a reputation at stake, they have been struggling with the turnaround and have taken several steps back with this. It is difficult to return to profitability with this incident. Customers,es with however you look at it, they are under tremendous pressure. Analysts are not convinced they can save themselves. Of 13 out ofations 15 analysts say to sell the shares because the future of the carrier is not looking good at all. What do we know about compensation . It is a bit premature to be asking that. It is. Depends on the circumstances of the crash. That will dictate if they are required to foot the bill. It could amount to billions of dollars and this is coming hot 370. The heels of mh the speculation is that they may be forced into bankruptcy. Two backtoback incidents are among the worst disasters. Do not forget that they only have enough funds for one more year. If the government does not come to their rescue . That remains to be seen. He said is a tragic day for malaysia and is certainly a tragic day for Malaysia Airlines. You, our Southeast Asia correspondent. T is not all about mh 17 it is about what is going on in the middle east. Gaza is invaded by israeli troops. These are the events that happened in the span of 4. 5 hours. This is how things are looking at this point at 10 30 in the morning in hong kong. What wees are less than started with. You look at the biggest stocks, market cap lost. Were talking about 57 billion u. S. Dollars that have been wiped. Onhave gained a little bit the day. I want to point out a few that we are following here. You look at