David, what do we have so far . From the ings shanghai fda did confirm the factory in shanghai did tamper with the production dates of some of the meat pies. E mean the pattys that go into the burghers. Chicken must have had a hand. Chicken was taken off the enu here in hong kong. We are seeing the postgame account, these are processing plants in china that have export license to export to other places. Now what they found as i mentioned is that they did tamper with the production dates. Almost 70 of the repackaged pies have been sold to the market. That s yet Parent Company runs this and nine other plants in china said full recall all products sold from this specific plant in china. We want to rebuild the trust of the customers and cooperate with the fortunatelies. We are compelled to withdraw all products manufactured from his specific facility. Give it back. Dont sell it. In hong kong they are in even more hot water. Yeah. It is a tricky p. R. Mess that they have gotten themselves into. On friday they pulled the items off the menu. Previously, and i think it is here in the newspaper. South China Morning post. The front page they are basically saying that we are sorry for the lack of clarity but did not clarify. They basically held a press briefinglies and did not take questions. They apologized for what they called a lack of clarity. Last week they basically said from ey did not force plant in shanghai. They are apologizing for not being able to communicate properly causing a lot of confusion among people and authorities are trying to determine whether or not they knowingly sold the meat, tainted meat. We will continue to follow the story. David, thank you very much. Ok. We will have a look at the markets this monday morning. Trading sessions getting underway. Also there are quite a few closed, including singapore. That is right. A few markets are closed. We have indonesia, singapore and malaysia all closed for market holidays. Indonesia included in that. That is why that screen looks kind of bare at this moment. Taiwan starting their session. You out what is happening see modest gains there. Of course we will be looking ahead in 30 minutes time for the data that we got from china over the weekend. Industrial profits as well as the jobs market, the labor market. We will see how that impacts stock when trade gets underway. We have the market, index in the region slipping from a sixyear high. A nice performance to end out the week. Lets check in on the japanese markets. Ou are seeing a modest gain. Hi tacha chemicals, up 11 in the session. That stock rising as the First Quarter sales coming in stronger than estimated. Bloomberg reported hitachi may be open to closer links. Lets have a look at nissan in the north American Division recalling more than 200,000 calls. Recalls down to faulty air bags. This does come on the heels of a million vehicles being recalled. Craig, what is the latest . These models are more than 10 years old. They may ring a bell for headlines you may have seen for weeks related to a japanese parts supplier that supplied faulty air bags across the industry. The problem is the inflators in he bags. It has resulted in pretty scary accidents where serious injuries can result from this rupture. So you have seen a number of vehicles recalled by nissan and by honda and toyota and by u. S. Automakers and european automakers as well. It is a recall that they will take a substantial charge for that essentially may wipe out the expectations for profit for that parts supplier this fiscal year. Thanks for joining us. Lets find out about nissan and rival honda. They are reporting today and tomorrow. Steve, welcome to the show. Talk about what we are looking for here. Sure. I think we will have a mixed look last week they had a lot of currency head ind. Japanese had a currency head wind. You look over in the u. S. And their home market it is a different story. The u. S. You have honda basically sales performance. It is below u. S. Auto sales. You have toyotas in line. Nissan is performing better than u. S. Auto sales. In japan you have the april 1 tax hike that is impacting sales now. How does the yen play here . We mentioned it but what is it doing now . The yen is pretty much stable. So the yen impact will be muted. It will be more related to what happened in the andus what happened in the japan market. Now you mentioned the sales tax hike. Up to 8 now. They warned they would be absolutely crushed by this. What has been the deal though . Well, it is a ship and demand story here. Basically what happened, before april 1 we had a huge surge in sales. People were thinking like i better buy these cars now because it gets expensive because of the higher sales tax. They bought a lot of cars before april 1. Now we are seeing sales flat to down slightly. If you talk to industry observers and our Research Indicates sales may remain soft and may even go down further. Ok. When we look at what happened because china is the biggest car market in the world here. We have had this spat between beijing and tokyo over these disputed islands that crushed sales of japanese vehicles in china. Is there a follow through on that . Well, the sales have recovered since the antijapan protests. It has been relatively stable. What it did was expose some of the weaknesses except for nissan. Nissan has a different strategy. They are more aggressive. They introduce a lot more models. The consumer responded to that. Thank you so much for joining us steve. Now lets get the latest now on this conflict in the middle east. Fighting has resumed in gaza following the collapse of a fragile ceasefire. Hamas said they would stop firing rockets but israels cabinet discussed they sent a new wave of missiles over the border. It has killed more than 1,000 alestinians. Washington has released Satellite Photos it says show russia shelling across the oarder into ukraine. Claims are coming as the netherlands said heavy fighting prevented investigators from reaching the crash site. Up next can a name change the fate of Malaysia Airlines . We will discuss the future of the carrier. That and more coming up after the break. Well, reports the malaysian government is considering a new name for its struggling national carrier. They were losing money long before the disappearance in march and shooting down of mh17 over the ukraine. The carriers future has been questioned and the Financial Times says other options are being considered to protect the company. Andrew, thanks so much for joining us. I want to get to what the netherlands are saying that they are having difficulty to get to the crash site. What can be done about this . Well, it is truly shocking more than a week after this tragedy we still do not have full access to the site. Some investigators made their way there as journalists and that has captured a lot of mportant evidence. More tragic is recovery of the bodies is not complete. The Prime Minister trying to negotiate with the rebels and other efforts to get control of the site so the investigators can complete that work and the recovery of any remains. One week on from it we have more certainty now as to what really did happen. How much of the initial claims by the west that it was ukrainian rebels that shot down the plane have been corroborated . The evidence has accumulated on many fronts. The finger pointing continues as to who initiated the attack but we will leave somebody else to decide on that. What was clear is that it was shot down. The thing is Malaysia Airlines with two disasters taking place in the span of four months people are questioning its survival. Can it survive in the manner it is existant today . I have every confidence they will survive and recover and come back from this stronger. To suffer an accident or two is devastating for any carrier and it will take a considerable effort to rebuild complete rust in the carrier. This airline has a good reputation for safety. It is a fivestar airline in the awards. You know it continues to fly every day and carry tens of thousands of people every day. The challenge now is to focus on supporting the family and next of kin and to support the accident investigation when that can take place properly and meanwhile to keep the airline running. Rebuilding confidence is typical practice to stop advertising and there is a point it makes sense to start advertising. The message around that and the brand how you restore full confidence in the brand. The key thing is to build on the strength that you have with consumers and then to move forward from there. Perhaps the exercise in renaming it. It would just be smoke and mirrors and people would see through that, wouldnt they . Yeah. And there are special circumstances when you are talking about an airline that shares a brand with a country. You do not rebrand countries. So i think one has to look at that and the government is a major owner. He will have a big say in the strategy going forward. I think personally the restructuring was a task ahead of the airline like Many Airlines long before these accidents. Just a o be revisited final question here. These two events have shaken confidence. I think you should put into context how safe flying actually is. Indeed. It is a part of every day modern life. Last year 3. 3 billion flew. That is close to 10 Million People a day flying. You have to think about that. The accident rate keeps Getting Better over time. It is running at 1 in 3 million flights is lost in an accident. That trend has been improving. But every accident is a tragedy. People can rest assured flying is extraordinarily safe and we will continue this trend of improvements in safety. Thank you for that. Lets have a quick look at the stories we are tracking for you today. Beats is facing an action from bose to block noise canceling headphones. It has filed similar suits against other rival headphone makers. Apple agreed to buy beats in ts biggest ever acquisition. Hitachis c. E. O. Says he is open to talks between two of the largest manufacturers. Hey merged their businesses. We built a relationship where we can talk to them frankly. I will not deny the topic of merger may come up in a conversation. We will take a break. Coming up next, a look at the big beast that could transform the marine corps. A special report in a couple of minutes. Lets check some of the stories making headlines around the world now. Two u. S. Citizens contracted ebola in liberia. He medical director in monrovia. The other person works with the hospital manager. Nearly 700 people in west africa have kai died since march. It kills about 90 and it has no known cure or indeed treatment either. Insurgent fighting in libya has prompted the andus u. K. And others to advise citizens to leave the country immediately. Ighting has spread to tripoli. U. S. Evacuating staff from its embassy when a convoy came under fire in what is seen as an attempted carjacking. Banks and businesses have also been attacked. Ship hit a reef and capsized off the coast of tuscany killing 32 people. The hull will be searched for the remains of an indian waiter, the only body not yet to have been found. It has been a while since the u. S. Military has stormed any beaches but the marine corps is testing equipment that could revolutionize invasions that are done by sea. Lets have a look now. You can get more on that story. All you have to do that is download bloomberg plus to get it to your mobile or tablet. All of the basic food groups, and now we like hearing from you. You can follow me on twitter too. Ok. We are 25 past the hour at the moment. Minutes away from the starting of trading right here in hong kong. This is what it looks like. Hang seng closing out with a gain of what . We have declines there in the futures contracts. You might say a flat opening in prospect. Asian pacific stocks are generally speaking fluctuating i suppose you can say and the regional index is off the sixyear highs and we also have a few markets closed in this market of the world. Indonesia and malaysia and holy ore, all marking the uslim month. After the break he reveals his doubts over the countrys official economic model and we will hear what he has to say about that and indeed what is going on with the Property Market that he is so vocal about. Total recall. Chinas rising food scandal with mcdonalds and kfc. Applications for the japanese economy and the yen. Counting down to australias biggest debut in years. Straight to what is happening outside of the trading day. Fluctuations at the moment. What is going on. Well have a look of what is going on with australia and we will check in with him. Also malaysia and singapore as well. Not in the mix, jakarta. Of the holy month of ramadan. Find out what is happening with the biggest ipo in 4 years. A look at health scope. They are looking to raise 2. 5 billion with 2. 10 per share. That is the price indicated in the lead up. The biggest in years. In effect since the operator was funded. Controlled 44 clinics. Is forecast to make 147 million profit. Currently, it is held by a private Equity Company. The Carlyle Group and they will retain 38 of the shares. To getre plenty looking into this aging demographic. The malaysian employees and willalian and a blackrock be major investors. It will be the first time that ordinary investors are dan are going to get an opportunity to buy into healthscope. It will take place at midday local time. How much publicity has it had . Reasonable enough. It has not been a great deal of publicity and the local media because it has been a wellknown as the largest ipo in 4 years. Theres a bit of interest. It has not turned profit for a while. It is a bit of contention. Return to profitability in 2015. Populationtrys ages, it will be a good time to be in the health space. Paul allen joining us from sydney. Healthscope, what is it going to be debuting in . We are looking ahead to markets today. That is right. Good to see you. Region. Across the well start with australia. It is trading lower. The regional benchmark. For the week last week, we had a 1. 4 gain. As mark is again underway in hong kong and shanghai, moderate advances. Shanghai lifted by some of the data over the weekend. I want to take you to the asx and commodities because we are tracking Precious Metals with the ongoing gaza situation and a bit of a risk of the table of investors. This was you see. Crude oil in new york is pretty much unchanged. Copper in the middle space is a down. Gold am a look at it. It hit a oneweek high on friday. Gold, look at it. If we look at the aussie gold miners, this is what we have. All seem very nice gains. It seemed the best. The shanghai and the composite, eye onto keep an property investors. They authorized debt sales for the first time in five years and it is having an impact. Whose a list in the market. We will have a lift in the market. One of our relieving the movers on friday as well and they had results. The transport stocks moving downward. A subway operator in hong kong and a major priority for development here. Down about 0. 8 . Likehai composite looks its a best share performer, market performer. Key stocks moving to the upside. 8 as we interpret the latest data which came in pretty strong. Jobs was mixed over the weekend. Thanks, zeb. Questions around the countrys economic model. Our guest spoke to charlie rose. The data judge shows the open. Is completely wide and more and more credit is going to support less and less of growth. The chinese economy based on construction, charlie, it is really manufactured growth. The moment you put a bridge or building up, it counts as gdp. The problem is when you finish building, you have to put up another. Chineseorm that the felt was coming up is a little safer. And a lot of you will never be economic. Grown gones from gdp growth of double digits 7 plus. 1 to we have to color this with the concept that china is the only major industrialized nation that knows is a you will gdp on january 1. [laughter] because . It is what they are going to say it is going to be. Whatever they say it is going to be is what they will report . A cartoon of them and our presentation of all of them are round the table and say the growth as. 5 at how do we get there. Theres a lot of theres a lot. [laughter] going for thatot economy. The emerging middle class. Social tensions. They are making a serious effort to deal with corruption and clearly dealt with corruption. Try to deal with aleutian. It is a priority for them. The third priority is a sustainable economy. And try to deal with pollution. They also lead are very serious people and they are not to be underestimated. However, there is a saying in china, the mountains are high in the emperor is far away and all action happens at the local level. That is where the democrats even though they can correct things, theres a little bit too much faith put in the Planning Committee because the local level is still to produce numbers. Will catch in that chat with jim chanos at 11 00 p. M. Of the stories making corporate headlines today. Supply is the latest food scare. With bad dates. Almost all of the prepackaged meats have been sold. Closed andas been five people are under arrest. The bank of china has announced massive shares. Under new rules, the four biggest banks might face a shortfall by 2019. The battle for at travelers in india is heating up. Singapore airlines and a local partner are planning to start flights by september. Last month, air asia started u. S. As low as 2 dollars it is the summer and its time to plan the next holiday. The five leading cities in terms of tourism. All right. We have to take a break. We will hear from bank of america strategist. On the move is back in a couple of moments. A look of the trading day. Where off a six year we are off a six year high. As the ipo taking place. G is upngs hang sen 0. 8 . Some of the shares right here. We go. O, there up 0. 5 . No training in indonesia or malaysia. It is a public holiday. Are not quite what they used to be. Does it paint a picture of bad as it could be . That is the topic. For decades, the country was among the worlds most exported. If you look at to value of. Xports are down by 0. 25 policy makers have pointed to weak overseas demand. That it wasnt that are pointed to as a why we are seeing such sluggishness. Well . Whydoing is it doing well . Behind. Ports, lag why doesnt look so bad . Why does it look so bad . It fell against the dollar. 23 against the euro. If you look at the one we are seeing at 35 . Japanese exports are much cheaper. That is the point. Consider the word, exports. Despite electronics are popular. These if you buy outside of japan are not made in japan anymore. They are not considered exports. If you take a look at the japanese yen over the past 10 years, it has strengthened substan