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tv   First Up With Angie Lau  Bloomberg  July 20, 2014 7:00pm-9:01pm EDT

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>> investigators visit the malaysia airlines crash scene for -- where russian separatists are accused of tampering with the site. downed jet have been removed. no sign yet of the black boxes. we will be live in that carrier's home city of kuala lumpur. welcome to first up. i'm angie lau coming to live from bloomberg headquarters --
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bloomberg's asian headquarters in hong kong. piles on russia to help get to the truth about what happened here it united states and ukraine say they have circumstantial evidence that pro-russian rebels shot down the 17.- the m h european investigators say that access has been restricted by gunmen. gracias transport minister is in the ukrainian capital and will soon be joined by the defense minister. our southeast asia correspondent is in kuala lumpur. what is a mood like there this morning? >> the whole country is still in a state of shock three days on. it is something very hard to accept. week to the muslim celebrations and no one in the country is in a mood for a celebration, it is pretty obvious. apart from that, there is also outrage. at editorials in the
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paper in malaysia. they are all expressing outrage and alluding what has happened. bodies were lying around until yesterday when they were transported in refrigerated railway cabins. until then, they were left to -- and there were reports of there's been a lot of concern and outrage. also about the tampering of evidence. the first 24 hours of crucial evidence had to be could -- secured. that is not happening. an airline that crashed in 1990 one, looters removed a key component. that component was never recovered. the case was that never fully resolved. a lot of outrage and shock where malaysians are concerned.
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>> has the malaysian delegation had much access to the crash site? >> none. there has been no axis for the malaysian delegation. the transport minister has been in this position for about a month. this is a huge challenge for him. he arrived yesterday in kiev. he has met with authorities in ukraine and is meeting with representatives from the dutch side. there is outrage that there was no access whatsoever. malaysia sent a delegation of about 100 people consisting of experts in the field of retrieval, recovery, medical experts as well. they have had no access whatsoever. as far as we know, the only itple who have had access to are international observers from the osce. they are given access for about
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75 minutes. not enough to make a full examination. they're still fighting for it. f has askedter raza prime minister -- president putin for help, but so far there has been no help. >> you have to wonder about the staff. this is the second time this year that this tragedy is striking malaysia. >> you are right about that. all-time low, according to the union of flight attendants. it has not seen a situation this bad. to two incidents came back back within a. of four months. it is impacting morale among the flight attendants. within a. colleagues of four months. that is indeed impacting malaysia airlines as a whole. this is a carrier that is deep in financial woes.
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it lost about $1.5 billion in a. of three years. it has been trying to turn around. it has been unsuccessful and the problems it is facing now are not helping. a cashort says it has outlay of one million u.s. dollars per day. it is something it can ill afford at this time. >> how about the mood of the nation? >> needless to say, i think the whole nation is mourning. flags are being flown at half mast. they have flown at half mast since friday. they can't believe the kind of .oss nazaf hasister know asked the whole nation to pray.
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wondering why this had to happen to the country. asim. wes has linda do know that the only international bodies so far that managed to access the crash site is the osce, but only as haslin da has said, for 75 minutes. now to the day's other big story . we are talking about the fighting in gaza. both sides have suffered their bloodiest day yet. and 137 palestinians israeli soldiers have been killed in the few past hours, bringing the total number of 0.ctims now to more than 43 john dawson joining us on the
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bloodiest day ever. >> it really is. that is why it is being -- of gaza -- hamas captured one israeli soldier. netanyahu making calls. president obama has called prime minister netanyahu. serious concerns on monday. john kerry will fly to egypt to discuss how to bring peace and an end to the hostilities. they're looking for a return to the 2012 cease-fire agreement. that is developing. netanyahu is saying that hamas is using civilians to protect russell bases.
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moment, the dead and injured, there are 3000 injured. many are now displaced in gaza. it is beyond the deaths. his is growing by the day and minute. this is obviously the bloodiest day in the current offensive. it is getting worse and worse and worse. >> it is heartbreaking to see just the people's faces in reaction, the average civilian. what reaction has there been in the united nations echo >> ban ki-moon in the u.n. was pelted by shoes in the armored convoy. is the ultimate insult in arab cultures.
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threw shoes and sticks of the armored convoy. he has been trying to broker an agreement. at the request of jordan, a nine: 30 p.m. eastern time. he was saying this yesterday, ban ki-moon, about how he concerned he really is about developments and the lack of a truce. israel must exercise restraint. they must respect the national community. the violence must stop now. today, the un security council is meeting at 9:30 p.m. at the request of jordan.
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>> many busy days ahead as well. that, johno much for dawson. rupert murdoch may be looking to boost his bid for time warner. he said to be considering selling his italian and german pay-tv assets. the sale could be worth more 13 billion dollars. time warner's board rejected the initial $75 billion offer by murdoch's toy first century fox. net income for the last quarter came in over 5% higher than what analysts forecast. higher profits are crucial as he expands his petrochemicals, refining and natural gas businesses. are underway for india's vast network of state-run banks. the government is looking at stake sales. continue on the size
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of the sale. the government plans to retain majority control. the changes await cabinet approval. kobe steel is ramping up investments in asia. rising demand from the auto industry means at cobre will step up production by 10% -- will step upel production by 10%. new zealand looks like this. it is fractionally higher after wall street recovers on friday. new zealand dollar spotted at 87 ..s. cents we're down to the opening korea and australia. it is marine day public holiday in japan, so no trading there. lots more to come on the show. we will have more on the downed malaysian airliner after the break. an aviation safety expert and former military test aylett will be with us.
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this is first up. stay with us. pilot will be with us. this is first up. stay with us.
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>> let's return to the big story. we are talking about the downing of malaysian airliner in ukraine. joining us by webcam is john mccraw, former deputy director director of the faa flight standards division. john, thank you for joining us. we have heard about just the chaos on the ground as investigators are limited to 75 minutes on the ground. 900 so-called rebels, pro-russian forces there with guns in hand. how is the accident site going to be investigated properly here? questionk there is no that the accident site is now contaminated here to there been reports of components being removed, things moved around, certainly for humanitarian
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reasons you have to remove the victims, but when an accident like this happens in most countries, there is a very careful discipline and methodical process of laying out a grid, mapping and photographing every piece of evidence. theess in this case solution is and probably the answer is it will be easy to determine whether a missile knocked the airplane down or not and everything points to that. in that case you don't need quite as much forensics. no question, the site has been contaminated. >> at is it. if you don't need that much forensics, why is it still important to keep that area free from contamination? >> you really want to have a full set of evidence to make sure you can confirm everything. the intel community is going to be key here. they will know very accurately where the missile was launched from. they will know the path of the missile before it hit the airplane. they will be looking at radar and other things to see if they
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can determine evidence from that as well. ridiculously, the cvr and fdr are going to tell a lot about what happened in the flight deck , whether the crew was talking about deviating from the path or thunderstorms, as everyone has been reporting, which would be normal. if there was anything else going on, you need to be able to rule those things out. should there be any indication from the crew there was something else going on, then you have to turn to the evidence of the debris field. the debris field, there are reports that there have been rebels or unidentified gunmen down there rustling through the bodies, removing evidence. how would they be even able to cover up any kind of evidence that would point to one thing or another? , they will move components around. if the investigators ever get a chance to get on site, there may be enough by looking at the
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debris field, which is reported to be very large, which typically indicates an in-flight breakup of the aircraft. the fact that there were large pieces of the airplane in tact, also points toward an in-flight breakup, which is reasonable to think if you had a missile strike. one thing that some people don't understand is these missiles can to blow up when they get within a certain distance of the airplane rather than actually striking it. that can cause the airplane to come apart, the concussion from that explosion. that is how we ended up with these large pieces. if in fact it is directly indicative of an in-flight breakup, i would try to determine whether damage came from that cost that. they will have to look for evidence on the pieces of fuselage that are left. >> from what i understand, this evidence on the ground will point to the type of missile that was used to bring it down. >> i think certainly it will point toward the extent of the explosion that brought it down,
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if it indeed ends up being that. it is unlikely, if it doesn't up being that, all evidence points in that direction, it is unlikely that the contamination on the site will prevent them from determining and confirming the missile. any other evidence, anything that might have happened will be lost. certainly, the fact that they're going to personal remains is something that should not be allowed at any crash site. >> john, as a former deputy director of faa, described to me just how different this this scene is in terms of investigation and your concerns going forward. >> the big concerns right now in addition to the site having parts moved or removed and not having good documentation, the big concern is, whether the fdr's and cd-r's are in the hands of someone that is keeping those in tact. cracks are talking about the black boxes?
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>> yes. there are pictures that show what appear to be those in the hands of the separatists. they have been reported to have them in their hands, although earlier it was reported that those had gone to moscow. it will be critical to have an international organization or a group of countries look at the data from that flight data and talk it for supporters of that there is transparency and integrity in the investigation of this. how much is russia's current response indicative of any culpability it may have? >> from what i have seen, there -- between all three components, the russians, ukrainians and the separatists. here each accusing the other. certainly, the evidence we have seen of the missile launch would point to an area where you would think the separatists might have control. this is the stage where everybody is going to blame everybody else until they can get some hard evidence to show
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who actually launched this missile. osce areerstand the the only ones who have been able to be on the ground. what is it like, bring us into the minds of those investigators. 75 minutes surrounded by 900 armed soldiers. certainly, there must've been a lot of apprehension and fear. first, you're going into a crash of -- thereas a lot are still a lot of human remains. .t is horrific to see and smell a lot of personal effects laying around. even if there weren't armed guards walking them through the site, it would be a terrifying experience. i am sure that their ability to take in what they're seeing is probably hampered somewhat by being so closely guarded. >> final question, what needs to happen now if we are to salvage the crash site and preserve it a much as we can and get
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really transparent investigation moving forward from this moment? >> i think they need to form a group of international experts and formjoin together a team that can go into the crash site and get agreement that they can go in and do the rigorous investigation that is normally done in this kind of accident. without that, i'm afraid there will continue to be questions about what really happened and what the extent of the involvement of anybody is. >> john mcgraw, thank you so much for joining us out of stafford virginia today. ofn mcgraw is a consultant john mcgraw aerospace consulting. he is also the former deputy director of the faa. will have the latest on the powerful storm after this break. you're watching first up. stay with us. ♪
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>> invasion of gaza has seen its bloodiest day. at least 16 civilians and 13 israeli soldiers have been killed in the last few hours. the troops are ambushed in southern gaza as fighting raged across the territory. israel launched its offensive after days of rocket fire across the border. the army says its aim is to destroy the infrastructure of hamas and other groups. the defense minister says he hopes to complete that mission by the end of the week.
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typhoon rambis and is moving across southern china after causing damage worth up to $2 billion. it strengthened after cutting a swath through the philippines, where 94 people were killed last week. it crossed the coast with winds gusting to 200 kilometers per hour. it is expected to weaken over land as it heads over northern vietnam. investigators visiting the wreckage of the downed malaysian airliner says the crash site is surreal. the osce team says heavily armed pro-russian separatists restricted their access to the area, while unidentified people remove bodies and wreckage. they also claim to have retrieved the black box flight recorders. the bodies have been put in a refrigerated tray nearby. it is not clear what is going to happen to those bodies. the u.s. says it has circumstantial evidence at the plane was shot down by a missile that may have been supplied by
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russia. ukraine's prime minister says moscow needs to put an end to the violence. to unspeakable tragedies in less than six months, the laws of malaysia airlines flight to the 70 over the indian ocean and now murder of 298 innocent lives. and manyrecedented, wonder whether malaysia airlines can survive it. >> in its heyday, malaysia airlines was a first southeast asian carrier to fly to latin america. its 3.5 billion dollar home airport in kuala lumpur was an architectural marvel. as a reminder of its national importance, an image of the boeing 777 was printed on a national currency. but ever larger stakes in
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airline and became the carriers top shareholder. that led to a bloated airline, flying unprofitable routes as expensive unit contracts and an ever deteriorating financial results. malaysia's flagship carrier, its large,of pride, grew too too fast. the airline now loses an estimated $1.6 million a day. its share price tumbled in kuala lumpur. it has lost one third of its market value this year. zev eckhard, bloomberg. india's richest man, look what profits are particularly crucial this time around. you are watching "first up
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>> good morning, it is a great day here in hong kong. seven: 30 here live. we are 30 minutes away from the open of trading in south korea and australia. japan is off today there you are watching "first up." a surreal scene and a cover up at the malaysian crash site. fighting rages in gaza.
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raising the stakes. raisese of tv units warner.fer for time ukrainian rebels say they have the black boxes from the downed malaysian airlines plane and the pressure piles on russia to help get to the truth of what happened. southeast asia correspondent asim is in kuala lumpur. what is the mood this morning? >> this is a nation in a state of shock. taxi drivers, hotel staff, malaysians on the street, they will initiate conversations on what happened to mh 17. that therebelieve have been two disasters in a. of four months. it is a nation in a state of shock. also, they are outraged. minister, editorials
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in the local newspapers, they have expressed outrage at how the crash site has been looted and bodies have been left lying around, a stench coming out of the whole area. it was not until yesterday that bodies were placed in .efrigerated rail cabins until then, nothing was done. the outrage is also stemming from a lack of access. we know that investigators have not been allowed to the crash site. this brings back what happened in 1991. evidence were never retrieved. that stood in a way of investigations. it was never fully resolved. a lot of things to consider at e. s point in time, angwe
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>> how different is it this time around? there seems to be a lot quicker response and transparency coming from malaysia. >> absolutely. if you take a look at the press conference that was given by zaf. reversely,ra it took about a week before the prime minister addressed the media on the issue of the missing mh 370. in terms of how access all mh 17 hasn is, and -- been dealt with pretty rapidly.
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>> transport minister liao went to kiev to try to change that. he will be meeting with representatives from the dutch side, precisely to gain entry. he himself has spoken to president putin of russia. .utin has promised to help
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until now, there has been no proof of that. in terms of what they hope to achieve, they have access. they have a team of 100 hurry trying to establish the cause of it, to find evidence, to bring some closure to mh 370 and find what actually happened at this point in time. , ange. is being revealed from will be hearing ukraine's ambassador to singapore later on bloomberg television. bob low-salt on ski joining us -- sources tell us that cash from the sale of fox's italian and german pay-tv units may be used to boost the offer. rosalind chen here with us. i guess this explains the pop up
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in time warner's price, as everybody expects, rupert murdoch is going to add more dollars to that bid. >> the game is on. there is quite some time to go, i reckon. as you mentioned, the german and italian units will help build strength behind the bid. several weeks before 21st century fox approached time warner back in may, there has been discussion between fox and sky about selling its sky italian unit and its stake in sky deutschland. owns sky italian and a 57% controlling stake in sky deutschland. it could be valued at 13.5 billion dollars. fox could use that to help boost its offer. the sunday times reported that b-sky-b is close to getting an agreement to sell those units. >> this is the interesting
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thing. fox has a 39% stake in the sky be very haven't they been trying to gain control of this for a while? why would they diluted. -- dilute it? they were mired in phone hacking. it had to step back from that bit back then. their 39 percent stake if time warner does go through periods that stake has a value of $9.6 billion. it could help host the cash portion. knowing that stake would mean that fox is left with cable, broadcast networks, movies, tv networks. focusing on production. some people could say that could make it a lot more attractive to investors. -- staying tuned to this deal. thank you for that.
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zeb eckert is here with the uptick in business. news are still some good for reliance here. >> refining margins increasing, at least for these two refineries. these refineries are key for the billionaire who controls reliance. his natural gas businesses seeing some declines. he is diversifying into other businesses like petrochemicals as well as even fruit and clothing and telecom. he is spending a lot of money to do so, 1.8 trillion rupees. the key issue is how he will boost refining margins. as with the analysts are saying, angie. 5.5 percent increase of net income. that is better than what analyst forecasts were talking about. titan of the oil business in india is certainly staying on top. the refining is the key issue.
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>> you alluded to diversification. a very ambitious plan coming about broadband. >> yes, we're talking about a $12 billion outlay to outfit broadband across india. it is set for next year and it certainly comes as india looks to expand telecom to obviously beyond the major cities, into those smaller cities as well as rural areas. that is a key issue. every thing from outfitting schools, for example, with broadband services. we talk about education in india. modi is saying this is part of the new india. >> that is what they need to do. outfitting schools with toilets is as important as providing broadband access. he's is taking his oil wealth and spreading it to do something else. we'll see how that broadband network goes. it is an expensive endeavor, $12
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billion, but angie, his stock -- here on friday. >> all right, zeb eckert, thanks for that. >> the portuguese lender is seeking protection from creditors. espiritu santo is unable to meet its obligations. the company triggered -- after it missed payments in an audit -- and an audit uncovered accounting irregularities. general motors has issued an order to stop selling cadillacs. to dealers have been told halt deliveries because of a defective ignition switch. the order applies to the cars that use standard key ignitions, but not those that use the pushbutton start. record 25.7lled a million vehicles this year. maker of camel cigarettes has been ordered to pay $23
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billion to a woman -- $23 million to her -- to a woman whose husband died of lung cancer. they were conspiring to hide the dangers nature of smoking. the company is expected to appeal. those are the top corporate headlines this hour. es. david ingl >> a key event to watch this week. as bloomberg reports, it is very busy on wall street as several big companies report as well. will beeeks news dominated by net earnings. investors will be looking for possible updates on how the video streaming country -- company plans to launch its services abroad. on tuesday, apple will join the earnings fray. there third-quarter profits are expected to rise. will beat its revenue
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guidance of 36-38,000,000,000. watchersches -- apple will be looking for intel in the release of the iphone six. microsoft, mcdonald's, coca-cola, verizon and comcast. are expected -- higher second-quarter earnings after increased mobile advertising revenue. other powerhouses reporting wednesday, boeing, at&t, pepsico, and baidu. on thursday will be the likes of amazon, general motors, ford, caterpillar, visa and starbucks. also thursday, the imf for release its world outlook, giving its update on the global economy. christine lagarde warned that growth forecasts may be cut amid risks in the u.s. and weak
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investment. previously owned u.s. home sales and consumer prices both likely saw an increase, but sales of new homes in june probably retreated from a record in the prior month. indicate that buyers are responding to a recent drop in u.s. mortgage rates. we will have more on u.s. earnings later. >> the u.n. is demanding an immediate end to the fighting, as gaza sees its bloodiest day yet in the current invasion. after the break, the thoughts of a former diplomat with middle east experience, stay with us. ♪
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>> israel has so far ignored calls for an end to the fighting in gaza, saying it does not expect its objectives to be met before the end of the week. turning is now is the research director at the low e institute.
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he has served in israel and saudi arabia. thank you for joining us, anthony. when you hear about the bloodshed that we have seen so far, how do you get to place a piece when it has been so violent and bloody? effort toly, the build a durable cease-fire really needs to intensify. one of the consequences of what we have seen will be greater urgency by a number of players to build a cease-fire. the problem is, it is still very uncertain. hamas is still firing rockets into israel. keen toelis are still reduce hamas is inventory of missiles and destroy the network of tunnels into israel, to ensure that hamas cannot carry out further attacks into israel.
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these is going to lead to peace talks? internally in the region, it seems to be stuck in a quagmire with regional divisions of political islam. is it from the region or perhaps the united states? >> it is a very good question. situations, egypt has traditionally played the role of the broker of a cease-fire. under the mubarak regime, but also under mohammed morsi. given the conflict with the muslim brotherhood, which is of ofrse the whole movement hamas in gaza, it is fighting it more difficult to play that role. i think yes, it really is a place with united states is going to have to step up. >> what is the endgame here for
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both hamas and israel? >> for israel it is to degrade hamas'military capabilities and build a durable. of quiet. of some years. for hamas it is to relieve the siege on gaza and the restrictions on movement into and out of gaza. and also to obtain the release of prisoners. all of that is ultimately -- will be the subject of negotiations around the cease-fire. >> that is the thing, isn't it? we heard from the white house that obama has urged israel to get to a place of middle ground time, theat the same incursion continues. look, it is a very deadly and brutal negotiation that is being carried out on the ground at the moment.
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unfortunately, it is civilians on both sides that are the casualties. the israelis will continue to militaryegrade hamas' capabilities before international pressure grows on them to a point where they have to bring those operations to an end. hamas will keep firing rockets into israel in the hope that people -- that it will improve its negotiating position in a cease-fire and squeeze some --cessions out of israeli the israeli side. it is a brutal process. cracks we know what each side wants, but what is each side willing to give up or perhaps compromise to reach middle ground? -- isa constantly moving side will have its objectives. at any moment they will make a decision on how far, for the israelis, to what extent have a degraded the military
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capabilities of hamas. other willing at some point to say they have done as much as they can. balanced against international pressure they will face as a result of the civilian casualties in gaza. hamas will also have that kind of daily calculation, is is the best we will get out of the negotiation? at what point do they face ,ressure from their own people who are the main victims of this bring someo stop and peace and security into their lives. likelihood of the fear that many are expressing that this is going to draw in the regional players into a much more massive conflict? >> i think at this stage, you are not likely to see that. there is a great amount of turmoil in the middle east at the moment. there has been for a number of
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years. i don't think that means that other players will get drawn into this conflict, but what it does mean is that as this conflict continues, it is going to contribute to a situation in you will seeere more radicalization, more polarization, and that is ultimately in the longer term very unhelpful to building a stable and secure region. i recall the picture of one child who had lost most of his family members, and was quoted as saying, one day i will avenge my family. it is the current state of the crisis that continues to breed future tensions. thanks forlo, joining us. coming up, moving experience. why we are watching an elevator maker in the stock exchange when first up returns. ♪
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>> a look now at some of the stories we will be following. we will be expecting the official results of indonesia's presidential election. both candidates have claimed victory. show that one of them is ahead. the it be a successor to mi3 smartphone? and find out tomorrow tuesday. construction firm has said it may fail to pay and over $60 million bill. is the latest sign of stress in china, which has the world's biggest corporate debt load and about $14 trillion. on friday, japan's prime
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minister heads to latin america were he plans to visit mexico, colombia, chile and brazil. his visit, which will last until august 2 comes off the back of chinese president xi jinping's own trip to the region. ♪ welcome to the stock exchange. we are taking a look ahead to the opening in south korea and australia. our reporters are here to tell us which stocks are -- they are keeping an eye on. i hold my head in shame. i picked use a tan mitsukoshi for tomorrow. n mitsukoshi. >> that is some good spin. all right, let's spin it away
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from john. we're talking about today. >> correct me if i'm wrong, but i think south korea is open today. >> i hope so, because that is what i chose. i think it is open. we're going somewhere today with hyundai elevators. they're getting a $13 million order from turkey today to build lists as well as subways in its subway stations. it may bid to build over 200 subway stations in istanbul. watching south korean steelmaker pusco, reportedly trillion -- a2.5 $2.5 trillion bid.
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>> mount gibson, good save, john.
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>> levels in ukraine say they mh17's black-- boxes. morning in the netherlands and in malaysia. we are going to be live in kuala lumpur. and the bloodiest day. civilians and soldiers killed as the fighting rages in gaza. welcome to "first up." i am angie lau, coming to you live from our asian headquarters in hong kong.
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ukraineian fighters in say they have retrieved the black boxes from the downed malaysian airlines plane. he pressure grows on moscow to help get them to what happened. washington and kiev claim to have circumstantial evidence that the russians shot down mh 17. access to the crash site is being restricted by gunmen. our southeast asia correspondent is in kuala lumpur. you have been there for the past couple of -- you know, 24 hours. what is the mood like as you walk around and yeah there the story? story?gather the , dismay. the whole country is in a state of shock. they cannot believe what happened.
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370 just months ago, nothing has been found, and now mh17 has gone down. all 298 of the passengers have perished. so the country is in a state of shock. the flags are being flown at half mast. tough for the past three days, since friday. the nation is mourning. and there is outrage because of what is happening at the crash site. we know that bodies were left to rot for a number of days before they were transported to refrigerated train cabins. the destination unknown. there is outrage in the country at how badly the victims have been treated and how the families have been disappointed. the country is trying to do all they can. they talked about the transport minister and his position.
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it is a huge challenge to try to gain access to the crash site in ukraine. he has not been successful. he has met with the government in ukraine and he will be meeting with the dutch side to gain access from malaysia. >> you alluded to it a little bit, but what must it feel like for families of the victims to not know exactly what happened, have the crash site contaminated for investigators, but they do not even have access to the proper burial for the bodies. >> that will be a long time coming. right now, the only people with access or who have had access are the investigators of osce. this is an international investigation team. they have been given just 75 minutes, hardly enough to do an
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examination. given the fact that there has been little access, bodies being sent back to their respective countries to have a proper burial, that is causing a lot of tension, a lot of uproar among the international community, how badly ukraine, russia are handling the situation. >> no doubt. you have got to wonder about the morale for malaysia airlines and its staff as well. tell us a little about that and also these cancellations of malaysia airlines. how is it handling all of that? morality, itf could not be any lower. -- in terms of morale, it could not be any lower. morale is at an all-time low. crewmembers have been badly affected. they have been shattered and screwed by what has happened -- oked by what has
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happened. a number of them say they need psychological assistance, they are not wanting to fly. is very is -- morale low. in terms of cancellations, the airline has said it is willing to refund all cancellations for rerouting of flights or delays of travel. it regrets what has happened, but it appreciates the kind of support it has gotten from its customers. this airline is going through such tremendous financial difficulties. it has had losses of $1.5 billion over three years. day, so00 ringgit per it can ill afford the kind of losses it is going through. a turnaround when is in jeopardy. -- the turnaround plan is in
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jeopardy. >> live in kuala lumpur with the latest on mh17. you can find more on this story anytime, anywhere. all you have to do is download bloomberg plus on your mobile or tablet. that is available on android, apple, or windows. we are going to be hearing from ukraine's ambassador to singapore later on bloomberg television. at 8:40.ns us live now let's get to the other big story of the day here. we are talking about fighting in gaza. the u.s. security council is to hold an emergency meeting in the next 90 minutes after what has been the bloodiest day yet. john dawson is here with the latest. the number of victims above 400. >> the bloodiest day in this current situation. hosting thewill be meeting at 9:30 pm eastern time.
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we will bring you that when it happens. ban ki-moon driving through the clearly, heek and has been rattled. but he also wants to fix this end is very concerned about the lack of progress. here is ban ki-moon. >> this atrocious action, israel must exercise restraint to protect the citizens. they must respect international humanitarian law. the violence must stop now. obama has raised
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serious concern to benjamin netanyahu. john kerry today traveled to egypt. agreement brokered by the u.s. and egyptians. the battle is obviously in ukraine, but he is involved in this as well. 1.5 hours from now, that is the crucial one. the news as itou happens. >> that is something to watch. how about the civilians who live in gaza, being bombarded by rocket fire, stuck in the crossfire, watching their family members being killed. >> 87 civilians have been killed so far. those are in the crucial area that is close to the israeli border.
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83,000 have now been displaced in gaza. is going on.u what 3000 people already injured. dowill see what the u.n. can when john kerry flies to egypt. >> that is 9:30 later this morning. >> eastern time. >> very good. thank you for that. both ukraine and gaza weighing on sentiment this or morning -- this morning. zeb eckert joins us for more. what is the impact here? >> we saw an impact on the middle east markets. we had the dubai index falling about 6%. we saw stocks in israel tumbling as well as a ground offensive enters the bloodiest phase yet.
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mh17 and, ukraine and the israel ground offensive in gaza are having an impact. we want to take a look at how markets are trading. futures indicated kind of a modest move at the start. we saw new zealand little changed so far. the australian futures indicating stocks moving -- swinging between gains and losses. not a huge move in either direction. new zealand dollar is something you want to watch in terms of currencies, along with the euro and the yen. we are not seeing massive moves. friday was really the day -- thursday and friday, that markets saw the big tumble. a rebound, according to futures indications, is what we are going to see this monday. >> on friday, the volatility index climbing back up. i think it was 11%. >> the fear index, as they call it. that is something we use to determine where the volatility exists in stocks.
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u.s. it rebound from the biggest loss in three months. set for if you believe the futures. japan is closed for a holiday. there is no trading in the japanese markets. >> the latest on the downed malaysian plane, the crash site is being tampered with. this is "first up." we will be back in a moment. ♪
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>> recapping our top story, investigators say the crash site is surreal. team says heavily armed russian separatists restricted access to the area while people removed bodies and wreckage. they claim to have retrieved the black box flight recorders. the remains of nearly 200 victims have been put into a refrigerated train nearby. it is not clear what will happen
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to them. the u.s. says it has circumstantial evidence that the plane was shot down by a missile may have been supplied by russia. ukraine's prime minister says moscow must end the violence. >> now it is high time for russia to stop the support of terrorists. of the stop the support implications of this will be very simple but effectual. because they will not have shells, bullets, tanks, and missiles. >> washington and kiev say the rebels had at least three of these russian-made surface-to-air missiles and have pictures of them driven towards the russian border after the plane was shot down. is a radar-guided weapon that can hit targets up to 140 miles an reach an altitude of 72,000 feet. at around 33,000
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feet when it was hit. let's check commodities for you now. oil, gold, and copper are all looking like this. copper prices down to 318. a major copper acquisition goes china shareholders of minmetals today. willie go through? -- will it go through? see you in our hong kong studio this morning, hours before the 10:30 start of that extraordinary meeting that you have with shareholders. what do you think the outcome is going to be? >> i think that vote is a foregone conclusion because a major shareholder owned 74% of the shares and has indicated -- there is >> you have to do the rigmarole of getting the votes in place.
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a lot of people are wondering what the extent of this new budget is going to mean for mmg. >> it is a transformational acquisition for mmg . a is amine that will produce lot of copper in its first five years. prospectivehighly for more copper. areay small amount of the has been explored. it is a fantastic opportunity. obviously, our focus will be on completing that project we -- that project. >> it is forecast to produce 400,000 metric tons of copper per year. are we still on that timeline? >> we have not gotten the keys to the car yet, so we have a lot of people interacting. we are waiting to get this vote through. all of the components for the completion so we can get on the we willnd confirm when
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complete it. the target is for the second half of next year. >> of course, you need the keys to the car. but you also need the road to drive the car on. want to useif you that metaphor a little bit. people are wondering about the infrastructure of this project, corresponding with the communities to make sure that you do get this output in a time that you imagine. >> absolutely. communities, no matter where we operate in the world, communities are key. having that direct relationship between our employees and the local communities is exactly what you need. the issues very from place -- vary from place to place. 700 daughters -- 700 kilometers from the border, we are looking at the rail. we need 130 kilometers of lying coming in and they go through the communities as well.
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andve to say, xstrata glencore have had a good relationship with the people on the ground. but it is locals dealing with locals. at is the key. >> let's talk about your outlook he you revealed your production report june 30. second-quarter production report 2014g that you cut your output outlook. >> yes, that is for us. the century line is coming to its close within next year. mine, ifbits of the you have any hiccups for how you maintain the production, we have some issues around a wall that has moved, so we have dropped our guidance by 10,000 tons. we have had some issues in the underground mine and the support of the bolts in the wall. again, we are taking 5000 tons
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.ut of about 470 thousand tons. >> but you have raised your copper outlook. >> we have raised the outlook for our production. congo is performing extremely well. we are projecting an extra 2000 tons from there and another 2000 tons from our other minds. inarsenic is often found copper in south america. i wonder about the quality of the copper in las bambas. are you going to worry about that? >> that is a really key point. you look at the whole world, all of the clean robberies have tended to be mined. the ones that are being mined byproduct.senic as a
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you cannot transport it it it is more than .5% in concentrate. none of the countries will take it. the concentrate out of las 40% inis about 30% to no arsenic.per, but so it is fantastically clean. >> 10:30 is the vote. >> 10:30 is the vote. >> a lot of proxy votes will be handed in. as you said, it will be a foregone conclusion. what is your outlook for the rest of the year? the commodities space is a very interesting space right now as we have a lot of geopolitical events rocking the market right now. >> that certainly affects consumer confidence, particularly for any investment. if i take that aside, what i am seeing is the united states is starting to pick up. -- i sit on the board
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of an aluminum company in the united states and we're definitely seeing the united states pickup. they are the second largest consumer of copper in the world. at is really important. and you have china and all of copper wiring, copper tubing. >> you are not worrying about the property slump? >> we are seeing some of that come off significantly. we have seen that. what you are seeing from the chinese government is they are moving to public housing, not the speculative, domestic, private issues that we read so much about. >> and so the demand for copper is robust still. nice to see you in our hong kong studio today. good luck. >> thank you. >> good stuff, including a look ahead at the big events this week. more for you, including the results in indonesia's closely-contested election. stay with us.
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>> welcome back. you are watching "first up." global economic output is a key event to watch for this week. it is also a very busy week on wall street as several big companies report. >> in news will be dominated by earnings. netflix kicks things off on monday. investors will be looking for updates on how the streaming
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company plans to launch services abroad and analysts expect to see higher subscriber numbers helped by "orange is the new black." on tuesday, apple will join the earnings race. profits likely rose with high expectations. the world's highest company by market value will be its revenue guidance. eager iphone fans will also be looking for intel into the release of the iphone 6. reportinganies tuesday, microsoft, mcdonald's, coca-cola, verizon, and comcast. facebook highlights wednesday higherpected second-quarter earnings after increased advertising revenue. wednesday's earning call will also see the new chief financial officer. other companies reporting wednesday, boeing, at&t, baidu.
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thursday, the likes of amazon, general motors, caterpillar, starbucks. the imf will release its world economic outlook, giving an update on the global economy. christine lagarde warned earlier this month that growth forecasts may be cut in mid-risks in the u.s. and weak investment. other reports coming out this u.s. homeously on sales and consumer prices both likely saw an increase. homes in june and retreated from a record in the prior month. buyers responding to a recent drop in u.s. mortgage rates. more on the weeks news and earnings for you right here on bloomberg television. back to you. >> reporting from washington dc. now a look at some of the stories we will be following for you in asia. we are expecting the official results of indonesia's presidential election. according to an official website tallying the results, to cowee
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is ahead. gadget makernese expected to announce a new product, -- a new product tomorrow. we will find out on tuesday. day, ay next construction firm says it may an over $60 million bill. it is the latest sign of stress in china, which has the world's biggest corporate debt load at around $14 trillion. on friday, japan's prime minister, shinzo abe, heads to latin america, where he is due to visit mexico, colombia, chile, and brazil. ♪
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>> it is 8:30 here on a rainy day in hong kong. we are seeing asian stocks rising following a global rebound after mh17 crashed in invasion ofisrael's gaza. we are an hour into trading here and you are watching "first up." bodies are removed from the malaysia airlines crash site amid growing concerns about a cover-up. pressure mounts on moscow.
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russia's business elite are said to be horrified. and raising the stakes. the sale of sky tv units may boost fox's offer for time warner. good morning to you. i am angie lau. european investigators at the sight of the downed malaysian plane say their access to the scene is being restricted by gunmen. rebels say they have retrieved the black box flight recorders. paul allen has this report as the pressure grows on russia to help establish what happened. >> inspectors have got a closer look at the remains of mh17. three days after it was shot down over ukraine. they were not alone. heavily armed separatist rebels shadowed their every move. bodies have been continuously removed from the site since the day of the crash. >> earlier today, we were at the
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seenay station and we have trainsnessed ourselves loaded with 196 bodies in refrigerated conditions. >> this is the train containing many of the bodies that 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 training, to prevent strangers from getting inside. >> just as crass as the treatment of the bodies is investigation of the crash site. none of the usual meticulous investigations are happening. trains have already removed some of the debris from the crash scene. he whereabouts of the black box
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flight recorders is unknown. the situation is exasperating to the international community, particularly malaysia, reeling from the loss of the second malaysian airlines plane this year. >> ukrainian government has informed joint investigation seen that the crash site is under full control of the separatist group. establishn unable to a safe corridor to the crash site for the international team. and thean separatists ukraine government blame each other for shooting down mh17. each day, the crash site is mismanaged further clouds responsibility and sharpens the pain of the victims' families. >> pressure is mounting on moscow. tougherht include sanctions. meanwhile, russia's business elite are living in what one analyst has described as a state of fear. joining us more on this, what do
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we mean here, a state of fear? >> we always talk about the possible terms of these sanctions in the weeks to come and the following months. how theave to consider russian economy is structured. you have individual business interests closely tied to national interests. let's put everything aside. it is bad for russian businessmen. a day before the plane was shot down, the u.s. already announcing the latest set of sanctions, one of which was on the largest gas producer. they were basically cut out from raising new debts. maturities over than 90 days. it is things like that which could hit home. the former prime minister told
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us that the threat of sanctions right now, because of what happened, against entire sectors of the economy, is now very wet -- very real. there are serious grounds for businesses to be afraid. leveled, theld be russian economy would collapse in six months. he was the former prime minister when president putin was president in 2000-2004. businessmen are afraid. whether they speak publicly is another matter altogether. you do have people in horror. at the same time, no one will speak out because of the threats of retribution from the government. >> isn't that the whole point of sanctions, to create the environment on the ground where the political elite are pressured by the business elite? cacophony of voices just
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growing ever larger and louder against putin here. >> it depends on what the sanctions are and where they come from. but the rest of europe -- what eurasia is saying is to expect additional measures from the u.s. in the next few weeks. toinvestigators are able determine that the rebels carried out the attack. that is the other thing. how will investigators determined who carried it out and how it was carried out? the situation on the ground right now is not exactly one that is conducive to an impartial investigation. so that is something to watch very closely. >> or fight at the downing or horrified at the sanctions? >> it is a human tragedy. we are seeing very real impact. >> thank you. orchids trading here in the
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asia-pacific and this is what it looks like. the cost be climbing .25%. the index 200 climbing as well as asian stocks rise, being led by korean shares right now. we are also seeing oil slipping for a second day here. asia-pacific, excluding japan, because japan is off on market holiday today, climbing this morning. let's move on and talk to some -- and talk some tv for you. ok. we have rupert murdoch's bid for time warner, his original approach rejected. of the germansale and italian pay-tv units may be used to boost the offer. >> there are lots of deals being discussed in the media space right now. in particular, could be used to help bolster the bid for assets from time warner.
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before 21stweeks century fox approached time warner, they had been talking italiasky-b to sell sky and sky deutschland units. those are valued at about $35 billion. in skya 57% stake deutschland. the proceeds could be used to boost its offer for time warner. they could have a deal on the italian and german units in a couple of weeks. outill see how that turns and what will happen after that. >> that is the key. talk about b-sky-b a little bit. fox has a 39% share. weren't they interested in getting majority stake control of b-sky-b? why dilute it now? >> mr. murdoch has been keen in getting a bigger stake in
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b-sky-b for quite some time. it made a couple of approaches. most recently in 2011. in 2011, her dog was embroiled in the phone hacking scandal with one of his u.k. newspapers. he had to abandon that did. -- that bid. going back to what might happen he might sell a stake in b-sky-b if the time warner deal could be increased. selling the stake would mean -- some people say that getting rid of that aside and focusing on the production side would make it attractive for investors as well. >> ok. that is what murdoch is betting on, raising the price. bide has not made another or raise his offer yet, but i do not think he will give up that
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easily. >> thank you so much for that. a quick look at some of the days main stories. general motors issued an urgent order to stop selling cadillacs. dealers have been told to halt deliveries of the cts sedan because of a defective ignition switch. the order does not apply to the latest car that uses pushbutton start. last month, gm recalled nearly eight point 5 million vehicles, bringing the total number to a carsd 25.7 million recalled. and the maker of camel cigarettes has been ordered to pay $23 billion to a woman whose husband died of lung cancer. that is according to her lawyer. reynolds american was sued in a florida court for conspiring to hide the dangers and addictive nature of smoking. it is expected to appeal. industries controlled by india's richest man, net income for the last quarter came in over 5%
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higher than what analysts forecast. higher profits are crucial as you stand his natural gas business along with starting a new telecom service next year. , the world's answer to the malaysia airlines disaster. we are going to hear from ukraine's ambassador to singapore. this is "first up." stay with us. ♪
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>> welcome back. you are watching "first up." investigators visiting the wreckage of the downed malaysian airliner say the crash site is surreal. team says heavily armed separatists restricted access to the area while unidentified people remove bodies and wreckage. the russians also claim to have retrieved the black box flight recorders. the remains of nearly 200
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victims have been put in a refrigerated train nearby. it is not clear what will happen to them. the u.s. as it has circumstantial evidence that the plane was shot down by a missile that may have been supplied by russia. ukraine's prime minister says moscow must put an end to the violence. -- high time time for russia to stop the support of terrorists. if they stop the support, the implication of this will be very simple but effective. they will stop because they will not have shells, bullets, tanks, and missile systems. and kiev say the rebels will have three of these surface-to-air missile systems and claims of them driven towards the russian border after the plane was shot down. the buk is a radar guided weapon that can hit targets at 140 miles and reach an altitude of 72,000 feet.
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mh17 was flying at about 33,000 feet when it was hit. the world is demanding answers to the malaysia airlines disaster. joining us now is ukraine's ambassador to singapore. you among so many other voices around the globe demanding answers. what are you asking for and how do you expect to get them? >> good morning. it is not something you wish -- is mr. like to say, this of notith his supply rebels, but terrorists, on ukrainian soil, financing them with intelligence support, sophisticated weaponry, etc. otherwise, the conflict on the ukraine-russia border, exercise on ukrainian soil, will last for
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much longer time. casualties will occur on the soil of ukraine because of terrorist activity on ukrainian territory. >> let's break down what you are saying with the facts on the ground. or at least from your expertise, the facts on the ground in ukraine, as to why you think russia is responsible for the downing of mh17. >> it is widely spoken, unfortunately, that the rebels on the eastern part of ukraine -- but in fact, these people are mostly mercenaries. militants,ll-trained trained on the russian territory by special services.
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of so-called rebels, but actually terrorists, is not possible without incredible, overwhelming support from russian territory. missile systemk could appear on the territory of ukraine? it cannot be handled simply by joined such who activity in ukraine. i can go on much more on the subject. >> ambassador, tell us what the eyewitness accounts are saying about what happened to the buk surface-to-air missile launcher and what has happened on the ground? fact, this system crossed
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the border from russian hundreds and there are if not thousands of those who witnessed this system moving kilometers by the territory of ukraine. there are much more evidence is -- evidences, namely, the intercept of communication between chieftains of terrorists on ukrainian territory with their rulers, commanders in russia. these names, names of these people in dialogue, were identified and are now available even on youtube. not to say in the united states and -- the united nations and osce. >> you are talking about the intercepted phone conversation between two parties, one alleged
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to be one of the special forces on the ground, or terrorists, as you characterized them tomorrow armed militia on the ground, talking about the crash and presumably taking response ability for that. you are so certain that ukraine did not shoot this down, as russia alleges that you did? planes is not the first which was shot down over this region. mistaken, almost a dozen different aircraft were at this territory. but at much lower altitude. weapon which was used this
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time belonged to the much more against type of weaponry. -- advanced type of weaponry. ukrainians never use such a weapon because terrorists did andpossess a single plane there was no purpose for the ukrainian side to use such weaponry. , talk about -- i am sorry. we are running a little bit out of time, but i want you to address -- you are in singapore and you are ukraine's ambassador to singapore and also to this region. how much cooperation are you , as itto assist malaysia tries to get its victims home, and other nations also involved in this? how much needs to happen and how much cooperation can you give
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given the situation on the ground? is -- whatever we with ajust to provide hotline and a consular service embassy.lable in our we are ready to provide any information which is available exactly online. sayhe other hand, i would -- let me use this opportunity to mention -- please remember, , that itin this region is threatening to each person irrespective from the distance of the place of catastrophe. this is very meaningful to assume, to understand, and all
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of us should withstand the menace which comes from kremlin. >> there are talks of sanctions right now. who should be helping ukraine more? do you think enough is being done, not only in the instance of mh17, but the incursion into ukraine? >> a couple of months ago, there was a resolution for ukraine. 100 countries around the world supported ukraine against russian invasion. think that double this number of support will inevitably bring russia to the table of can defend thed world from the threat coming
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from moscow. >> thank you so much for joining us this morning out of singapore. ukraine tosador of singapore, joining us out of our studio this morning. tall orders, but are the stocks being watched by our reporters reaching new heights? we will find out after this short break.
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>> welcome back. you are watching "first up." and we are in the thick of it. the stock exchange, let's check in on what our reporters are watching with trading under way in asia. first, it was the japanese stocks. then we realized that japan was off today. you said mel gibson -- mount gibson. >> that was something else. >> the wave of the world on atlas.
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conceernthe swiss' about the falling rice of iron ore -- >> did you do this just five minutes ago? macquarie,quarry -- you can see, off by a hair. >> good one, john. you did pick a winner. very suspicious of the timing here. let's move on to david. >> this steelmaker, engineering units winning contracts in australia to build railways. of thathat in context is a unit that made $8 billion last year. >> and we are taking an elevator right to the -- oh, to the bottom. >> it looks like we are going to the basement instead of the upper floors. it gets a $30 million order from
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turkey. hyundai elevators will be building subway station lifts. but it looks like john has me beat. >> at is the verdict from the stock exchange. thank you for watching us today. "on the move" is next. ♪
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♪ morning, everybody. i am rishaad salamat, live in hong kong. this is "on the move." ♪ accusations of tampering with as investigators arrived at the malaysian airline's crash site. vladimir putin, repairing andtions with the west, gaza suffers its bloodiest day yet. in the


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