Pimco woes. The death toll from turkeys mine explosion rises to 205. The countrys Energy Minister warns it could be the countrys worst incident of its kind. Youre watching worldwide exchange, bringing you Business News from around the globe. Good morning to cnbcs worldwide exchange, tragic news out of turkey this morning. Well be getting the latest update on that. Meanwhile, plenty of other Corporate News were following this morning. Lets kick off with sony. Its recorded its sixth annual loss in seven years. The company says it must bite the bullet on restructuring as it tries to turn around its failing electronics division. Shares this morning in frankfurt are lower. Weve seen losses of around 2 , 3 . Joining us with his thoughts is managing director and head ofation research at pellham smithers. What is sonys fundamental problem. Theyre still making hardware electronics. Until they can work out a way of creating an environment in which that is profitable, theyre in trouble. Others are making hardware electronics. Apple by creating a Software Environment where you spend money to download games, video, music, samsung by creating a video and Semiconductor Chip business that goes into it to make money. The problem with sony, i think as far as investors are concerned they fear that theyre so busy casting off bits and pieces that perhaps dont work that they dont have a longterm strategy. We have the strategy update on may 22nd. Is that going to give us anything new . Theyve been restructuring for quite a while. Probably 15 years it seems like, yes. They have been having to sell off the bits that are good to fund the restructuring costs. Theyve been ending up with one or two areas which are quite profitable, high profile, like music and movies. These are not businesses that will generate billions of profit. We go to the imaging, the gaming business. Can we assume as we look forward now, even those businesses will be profitable for them . It goes back to the point you originally made, making the things they think can work work. This is it. If you look at the forecast for this year, at an operational level, they officially expect to make money from cameras, from mobiles and from televisions. Now, theyve never achieved all three of those together. So its going to be impressive. What should be noted about these forecasts that come up with, there appears to be about 100 billion yen, 1 billion in restructuring cost which is are nonallocated. This is the wiggle room that hes trying to put into his numbers so that as the year goes on, having set expectations so low, he can then beat them. But that assumes, of course, all these other areas where these forecasting profits dont disappoint. Weve seen a lot of companies lowballing forecasts. How does this compare relative to what weve seen . I thought theyd low ball about 180 billion. Its 40 billion below that. Its quite a gutsy forecast, because hes going to have a miserable shareholders meeting, period, in june. You know hes ready for that . I dont think he is. Hes seen it before but this time around, he has no time left. If hes recording a net loss come this time next year, i cant see him 50 million smartphones they expect to sell. This year. Theres a distribution issue with them. Their latest model is probably the best android smartphone on the market. If you wanted to buy really . Yes, its fantastic, screen, picture, everything. Plus you get access to all sony video and stuff like that. Its a really nice hand set but they really only sell it here and in japan. Sonys distribution has been destroyed. Theyre hardly anywhere in the states, most of asia and china theyre nowhere. These forecasts have them trying to break into some of the other markets. That is a shame. One place where they have an excellent product and they cant get it to market. The thing is, they have several excellent projects. The ps4 is really good if youre into gaming. In the professional world they have fantastic cameras for cinemas and stuff like that, against all of that they have all of this mediocre stuff, secondtier mass market stuff that loses manage. Thanks for joining us this morning. We have some latest news coming out of Glaxo Smithkline this morning, concerning allegations of corruption against the former head of their Chinese Business and a couple of associates. We take allegations being raised in china very seriously, says gl Glaxo Smithkline. More on that to come a little bit later. Outflows from pimco have dented First Quarter profits at the Asset Division of allianz. Annetta is in frankfurt. The cfa playing down the issues that theyve had at pimco. How much of this do you think is to do with concern about the management of pimco itself in order of the rotation . What im hearing from allianz, theyre quite comfortable with the situation theyre in right now. There was a shock to the management. What happened at their top management at pimco. Right now they have a new Management Team in place. Of course, the outflows are not great. Looking at the sheer numbers, only judged by asset undermanagement from third party, that 21. 6 or 21. Billion figure makes up 2 of those assets on the management from third parties. But perhaps take a listen as well, what the cfo of allianz had to say on that question whether its down to management problems or whether its general market trend that the former cash cow is having a little bit of a tough time right now. I think the press makes it much bigger than it really is. And our outflows, i think, there are two points to consider. One, compared to q4 where we had to really some real outflows, its reducing, i trust half of what we have seen in q4 which supports my story. And then additionally, you should really look at all the large competitors in the u. S. Market actively managed fixed income has seen in general outflows. The fixed income market is small, also on the funds have seen the inflows. I think there is certainly a change in what people like. Let me also bring you an overview of the general operational situation of allianz. They had a record quarter in terms of revenues. The best in the countrys history. Pc, property and casualty business is doing really good, operating profit there is up by 13 . Life and Health Insurance also is rather flat lining. But still positive. They had a huge surge in premium income in the United States in their Life Insurance business. That is quite surprising. But actually mirroring what were hearing from a lot of german companies, that the u. S. Business is doing really well. In terms of outlook, theyre restating their outlook for 2014. Theyre quite confident in meeting their goals. Thanks for that. Were just an hour and ten minutes into the trading day here in europe. Weighted to the downside this morning, decliners outpacing advancers by a ratio of 63. This is after gains yesterday, the ftse 100 up 20 points, the dax up 0. 5 . The dax was getting close to record highs. Its fairly flat at the moment. The ftse is off 0. 25 , down 0. 2 the cac current, the ftse mib off 0. 5 as well. We hit a yield of 2. 6 during the session yesterday and retail sales came out below forecasts, barely up in april. We saw a decline in receipts for furniture, electronics, appliances, retailers as well. Treasury yields as a result back down it aiel of 2. 59 , not far away from the threemonth low of theyearold of 2. 57, nonfarm payroll report as well. Gilt yields as well, 10 30 london time. About an hour and 20 minutes we get the bank of england inflationary report coming out. Are we going to get a slightly more hawkish bank on its forecast . Those expectations have seen sterling continue to rise. Today against the dollar, moving on, sterling, not near the here we go. 1. 6863 is where we stand at the moment. Up to near 1. 70. The real big mover, of course, has been euro, continue tos to decline. Down at a fresh 16month low. We continue to wonder whats going to happen with the ecb. And the euro dollar, 1. 3707 at the moment. Weve seen three big figure moves for euro dollar in the last three sessions as well. Dollar yen, very much in the ranges at 1. 02. On that note, lets find out whats happened in asia today. Weve spoken about sony, of course. What about the rest of the markets and the stocks there . Sri is with us out of singapore. Pe low. Very good morning to you. We saw another record close on wall street overnight. As you mentioned, the currencies are very much in focus, dollar yen still seems to be on the offensive. 101. 50, 101 seems to be the lien in the sand in terms of mather support levels. Interestingly, weve also seen euro yen on the defensive. We see the move lower below 1. 40. That could hurt as some of the export stocks that have a strong footprint relate to europe. Watch for further yen appreciation. If it does happen, i could put those stocks on the defensive, those stocks correlated to the story in europe. Elsewhere, i do want to talk about the politics. Because were seeing strong gains in the jakarta composite. Thats down to the election. Now, president ial election in july, i should say. President ial hopeful has secured the support of the countrys second largest political party, so that boosts his chances in the july election. Remember, well be getting the final count, the final tally and the official numbers in india at the end of the week on friday as cnbc will be on the ground reporting live from the indian capital at the end of the week. I think the critical point is this, the exit polls have been wrong in the past. They were wrong in 2004 and 2009. If mr. Modi fails to secure anything more than 230 or 240, which is the best case outcome for the markets, if he does fall short, then we could see further giveback for the sensex. Right now it seems to be profit taking from the highs weve seen. Ross, back to you. Thanks for that, sri. Good stuff. Catch you later. The death toll from turkeys coal mine explosion has risen to 205. The Energy Minister warned that the incident could turn out to be the worst mining disaster the countrys seen. Youre looking at live pictures in turkey. Emergency crews were able to evacuate over 360 miners at the time of the blast. The countrys worst mining disaster was back in 92. Well keep you updated as that story develops. Tragedy. Also to come on todays show, facebook founder Zuck Zuckerberg turns 30. Hes already worth an estimated 26. 6 billion. Is that all . Well speak to wall street journal best seller to discuss his business success. Wonder if he wants to come live in london. Whoever said art is a poor mans trade, art auction christies broke records last night. Phone out how many millions the new york auction house made. Plus, all systems go. Forget formula one. Apparently today its all about formula e. Well find out how the new racing startup aattracting investment from Richard Branson and even leonardo dicaprio. [ female announcer ] theres a gap out there. Thats keeping you from the healthcare you deserve. But if healthcare changes, if it becomes simpler. If frustration and paperwork decrease. If grandparents get to live at home instead of in a home. The gap begins to close. So lets simplify things. Lets close the gap between people and care. Its all about latency. About speeds and feeds. Its all about how fast does it run. I often sit with enterprises who ask me about how Mission Critical and hows the performance of the cloud. And i tell them, if you can maker gamers happy, you can make anybody happy. Youre watching worldwide exchange. Uk drug giant gsk released a statement after chinese authorities accused an employee of the firm of bribing doctors. Glaxo says it takes the allegations very seriously and that they are deeply concerned to the company and country to its values. Gsk added we want to reach a resolution that will enable the country make an important contribution. Eunice is with us. Can gsk draw a line after this issue or are there likely to be further ref layings . Its difficult to say at this point. A lot of people were very surprised by the results of this investigation because of the fact that the company had been cooperative with this investigation and even today at that briefing of the Public Security ministry, one of the officials said that gsk had a responsible attitude throughout this investigation. So people are very surprised and wondering just that very question. How, what we know so far is that the Chinese Police have charged gsk staffers with bribery. They said at the conclusion of this tenmonth long investigation that they found that gsk sales staff bribed hospitals as well as doctors in helping to raise revenues for the company in the hundreds of millions of dollars. They specifically had identified the former china head, a British National named mark riley. They said riley ordered staffers to commit bribery in order to try to help the Company Reach high sales targets. Whats also been unsettling to many foreign Business People here is the fact that throughout today, we have been watching some of the chinese gsk staffers on tv, in their orange jump suits admitting to the crimes and telling everybody here exactly how they conducted these bribes. In fact, there is one gsk legal staffer who specifically accused riley of ordering hr and finance directors of destroying evidence during a Crisis Management campaign. So you could imagine how unsettling this is for many foreign Business People here, especially people who are very much wanting to keep in touch with compliance in this country. Eunice, as bad as this is for gsk, i fail to believe, if its true, they wont necessarily be the only big pharma Firm Operating in china thats done this, too. Do you believe gsk is being made an example of here . They are the only company right now thats being investigated, arent they . It does appear they are being made an example of here. But we dont know whether this will be a oneoff or if its going to become a widespread campaign. We do know that the Health Care System has been heavily criticized for having a very corrupt system, because of the way that the finances work in chinas Health Care System where the hospitals dont have a lot of funding. They rely heavily on the markups of drugs and doctors are very poorly paid in this country. It leads to this type of these types of conditions that would allow for this unsavory type of behavior. Now, what the next step is for gsk and for this entire case is that we know that the case has now moved to the prosecutors and the executives involved, not only riley but also the chinese executives will now be officially charge d, later face trial and they could face jail time. Were told the charges involved could mean jail time for life. As of right now, mark riley, according to the Public Security ministry is still in china and the British Embassy confirmed they are offering Counselor Services to him and are in regular touch with him as well. Eunice, thanks so much for that. Katherine boyle joins us on set to discuss this more. We dont know how broad this is going to be. If in fact gsk is guilt of doing these things, there will be other big pharma involved, too. There was a lot of focus whenever the story first emerged on the particular travel agency that appears to have been used to funnel some of the payments through. Thats a travel agency that was used by a lot of big pharmaceutical companies, novartis, roche, people like that. Important to stress, no investigation there yet. Novartis undertook their own internal investigation. This is a huge Health Care System that every Big Pharma Company has been trying to get into in the past few years. Its potentially going to overtake the u. S. For the biggest market for health care at some point. Theyre are a lot of companies trying to get in there and using various means to get in. Meanwhile, we have a second day of hearings today into pfizer and astrazeneca. This time, theyre speaking before the sans and te scienc technology. Well see things like if astrazeneca is taken over, whether some of its really important, potentially lifesaving treatments might face delay in getting to market. Thats something that astrazeneca chief executive was very keen to stress yesterday. I spoke to him after the hear. He was really keen to stress that these the disruption caused by m a and potentially people getting fired. Theres an issue in terms of culture as well. It would be interesting to see if pfizer moves in whether they try to impose a pfizer culture on astrazeneca researchers. These are individuals and human beings. If they feel like theyre not being treated right, they walk out the door. That disrupts your research program. One of the points about pfizer in particular, it hasnt focused that much on research and development. Its bought in a lot of r d, so has astrazeneca to be fair. There are still a lot of big pharmaceutical companies. If you look at, for example, i was read a note from citi, laying out some of the key milestones, astrazeneca has two pages, pfizer has one. That suggests like just how much is coming in the pipeline. Very quickly, very quick line an how you think ian read dealt with that yesterday. I think that he dealt with it as well as he could within what hes allowed to say under Takeover Panel legislations. He definitely came across as being potentially touchy under fire, which may not have helped his case. If youre a betting man, id go my guess is no better than anybody elses. Id say this isnt going to happen. Really . At the end of the day do you think theyll come back with a better offer. Theyll come back with a better offer. I dont know that the uk Pension Funds, if it was cash, they might. I dont know that Pension Funds want to stay pfizer paper. There is always a price for everything at which it might shift. Internet firms have come under pressure to remove sensitiv