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tv   Trending Business  Bloomberg  June 14, 2015 9:00pm-11:01pm EDT

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sherry:sherry: good morning, it is monday the 15th of june and this is "trending business." ♪ sherry: we will be live in sydney and singapore but first what we are watching this morning. protests in hong kong and beijing and chinese investors flying to geneva to demand money back. the fallout from an alleged currency trading scam the victims say robb thousands of investors of billions ofe dollarsd. authorities fear that they are
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targeting billions of dollars flowing overseas from china. asian markets are following this morning after the latest this morningalling after the latest collapse of greek talks. shifts to a wednesday meeting in luxembourg in what could be a defining week for greece in the euro zone. plus, a revenue streaming a chunk ofes to get the chinese online video market. aey are about to launch chinese answer to netflix and hbo. it is a market set to travel in value -- triple in value. let us know what you think by following us on twitter and include #trendingbusiness. the chinese and hong kong markets get underway in 30
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minutes but singapore, taiwan, and malaysia have just come online. zeb with a look at what is happening in the market is morning. zeb: good morning to you and given the dramatic developments in brussels, talks breaking down after 45 minutes we are seeing pressure on shares in asia and currency. opening indications, singapore and malaysia and taiwan coming online right now and what you see is decline at the open in singapore and taipei. that has been the story of the monday session in japan as well as south korea. down .2% in paris shares continue to be walked in the light -- watched in the light of mers. australia taking a stake of a
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network that might go out of business. immodest move to the downside, .25%. a modest move to the downside, .25% brussels having a clear impact on the currency market with the euro trading lower. level against the u.s. dollar. the dollar/yen looks like this with the yen moving as part of the commodity complex today, crude oil extending the decline and precious metals rallying which is what we see when there is concern in the market. precious metals tend to do better. gain andfter a weekly loss, chinese investors are taking to the streets in beijing and hong kong as they protest an alleged scam. lisa a nearly 30,000 people were robbed of more than $1 billion.
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stephen engle joins us for more. take us through what is happening. yuan arebillions of flooding out of china into global markets, reading opportunities for the chinese and also fraudsters. involves 25,000 chinese investors that alleged to have been scammed out of $1.2 billion that we know of. returnse promised 10% every month on these currency investments in switzerland. geneva prosecutors have confirmed they are investigating at least a couple of companies. swiss trust and an associated company. claimed to bethey licensed by the swiss regulator and were not. they allegedly lured millions from chinese individuals before shutting doors and vanishing. hearing complaints
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coming from all across china, from shanghai, and shenyang. they all thought a swiss investment would be safe. emptor shows that caveat applies to everyone around the world. .herry: it definitely does we will take a more detailed look at the story later in the story and we do want your opinion so to tweet your thoughts. include the #trendingbusiness. move on to the next story, greece is predicting a defining week after talks with creditors went nowhere after the weekend. both sides ended up walking away in less than an hour. more on this, david is here. again, what happened? david: nothing happened, i think. the euro is trading which is reflective of the concerns. they wanted to get a deal done
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before the markets open in europe later today obviously did not happen. less than an hour, both sides walked away. is still onference the primary budget surplus target in the gap between what greece wants and what creditors want. it is about 2 billion euros. greece confirmed that creditors want the difference, about 2 billion, to come in the form of more cuts when it comes to pension spending and increase on taxes, v.a.t. andretti isrio giving his testimony and greece will figure highly on that agenda. two days after we get a gauge of market and this is crucial with the eurogroup meeting in luxembourg the day after that which is the first day of the international forum in russia. greece,to end the week,
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85 million euros comes to. next week what you have is crucial, the summit in brussels and frankly both sides have not agreed by then it will be very, very difficult. of course, getting parliament to relieveshe deal, it before the bailout expires. there is a report of the european commission president is warning the prime minister if they do not get a deal done the eurogroup will begin steps for a greek exit. what would that means we do not know but certainly a lot of things are moving parallel to each other and we are against a tight deadline. a crucial week in greece. sherry: thanks, david. let's take a look at the other stories. here is your bond with a roundup. -- yvonne with a roundup. yvonne: alibaba is creating a
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chinese netflix. they announced a new service called tbo. it will be offered in two months to those who have the alibaba set-top box. it will be content produced by the company and bought overseas. no detail on how much this will cost you but some are speculating this could spark a price war in a crowded market. alibaba facing off with the likes of 10 cent, on a buying spree lately to get content. the funding platform has raised $86 million and invested in 24 projects. the online video market is worth $6 billion in expected to triple -- and expected to triple by 2018. upgrade, cost savings from basil -- trump dazzle.
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claims are the workforce, carrying 75% of passengers. they are in focus this year to get the most buzz. areboeing and airbus expected to get at least 220 orders for computing the robot ejects. jets.row body $20 billion. g.e leasing unit is expected 60 and saudi arabia also jumping in and i be a 331 body -- a330 wide-body. moving on to product, earnings taking a tumble -- prada, earnings taking a tumble, one third below estimate due to
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lackluster demand in china. the company says the asia-pacific market and hong kong and macau have not shown clear signs of recovery. first-quarter revenue rose 6.5%. the weakness of the euro compensated for the anemic growth in the asia-pacific region which is prada's most important market. ttingave been cu costs and investing lower price investing in lower-priced bags. they will have an extensive plan to overhaul the entire chain. sherry: another story we're following on bloomberg business is how asian investors are seeking bargains in apartments and luxury hotels. thanks to the euro. that is on bloomberg.com. check it out. coming up later in the show, we
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preview the fed rates on thursday with the chief investment officer for ubs wealth management. after the break we speak with a hong kong lawmaker and democracy advocate as the city's legislature gets set to say gay or nay on the first direct election. y or nay on the first direct election. ♪
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sherry: thousands of people marched in hong kong to protest against a chinese plan to elected chief executive. 3000 people turned up for the rally, well below the amount expected by the organizers. beijing is offering an election from a list of chosen candidates, something pro-democracy groups oppose. lawmakers will begin debating the plan on wednesday. >> true democracy should include the right to nominate.
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so they should vote down the proposal suggested. sherry: the chinese election proposal goes to the vote later this week. joining us is a lawmaker that opposes the plan, a party leader. thank you for coming in. first of all, you think you have enough public support? only 3000 people showed up. you were expecting 50,000 or more. the number of people turnedrn up reflected -- up reflected the confidence they have in democratic legislators vetoing the plan. on wednesdayit anyway, they may reserve their energy for the july 1 march. sherry: you are saying they will
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continue marching up until the reform plan gets changed? year you know, this is the 2003. there is every year on the first of july ended march. big march. sherry: you said you would be on the streets and elders been changed to this. are we expecting continued protest? alan: i am sure that after the veto on wednesday, or the vote may come as late as friday, the craving for democracy and real choice will continue in hong kong. the democratic legislature will rejuvenate itself to collaborate with the up-and-coming young forces. sherry: you are basically vetoing it, the whole process. alan: the government is
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proposing a resolution that is restrained. and the 31st of august, the standing committee. that did not give the hong kong people any real choice. toare definitely saying nay the proposal. sherry: there has been intense lobbying from beijing. do you think that there is a risk that some lawmakers could the fact? -- defect? alan: as we are talking i have no doubt about a veto. sherry: enough lawmakers? alan: there are 17 in the council and the government would need two thirds. sherry: they are four people away. alan: the pro-establishment controls 43 so they need at from our camp. they would love to get even one of us to support. plan iseven if the
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voted down, what happens next because china is saying they will not back down. alan: that is fear mongering. how can an ungovernable hong kong continue? just like we have seen in the was three years, whenleung at the helm -- when leung was at the helm. there must be a change to make hong kong governable again and stop being a headache for the government. sherry: there is already been fragmentation in the camp since the protests started. how do you think you can overcome that? alan: we have to answer to the call of hong kong people for something to be done in achieving real democracy. giving them a real choice so they can become real bosses. is pressure on, you see.
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by vetoing the government proposal, beijing cannot have any excuse to say to the rest of the world that it has handed in its homework under the basic law under which beijing has promised the hong kong people universal suffrage. so beijing will have that deliver andaudit to we will also collaborate with up-and-coming young forces in the political scene. sherry: those up-and-coming young forces, that is where you when it comesence to the understanding of universal suffrage. youhave allies saying should change hong kong's constitution, amend the constitution yourself. the civic party has said you do not want that and that is not the priority. alan: you may be right that it is not our priority but if it comes to that we may not say no definitely. 24/7, the 50 years
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204ised -- 24/7, the fit -- 7, the 50 years promised under the law is not that far away. become, howg will they will struggle in 2047. what is to become of hong kong after 2047 may be a topic that will hit the agenda. sherry: you have to overcome this week which is a big week for you. thank you for joining us. alan of the civic party. later in the morning on "asia edge," we will hear from the chairwoman of the new people's party to discuss the other side of this debate. >> timeout to take a look at stories making headlines around the world.
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syrian rebels are escaping into turkey from kurdish forces and the islamic state. turkish troops were overwhelmed with the number of refugees, run 13,000 have crossed into turkey in 10 days. fighters backed by airstrikes from the us-led collision are closing in on the islamic state in northern syria. review, the who says there is no evidence that the mers virus is spreading outside of hospitals and south korea. the hospital which was hit by the virus checked measures against the outbreak. 16 people have died from mers. and 150 have been infected since the outbreak started. monday has been declared a day of national mourning in georgia after people were killed and 20 are missing. heavy rain caused the river to burst its banks, wrecking homes
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and cars. dozens of animals escaped the city zoo, including tigers and bears and wolves. a hippo had to be subdued with a tranquilizer dart and officials warned residents to stay indoors until all the animals could be accounted for. next,: and coming up topping $10 trillion. -- we willuire stock look at why stock valuations are searching in china. ♪
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♪ back, you aree watching "trending business." i am shery ahn. the chinese equity market has hit a new milestone with stocks valued about $10 trillion for the first time. news emerging markets have been tracking the gains. how does this compare to the last peak? is below the 2070 but -- they are trading -- -- 2007 peak. sherry: some analysts are saying that there is a long way to go. why is it we are seeing the rally with the economy is
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slowing down? because people don't have anywhere else to put the money? >> on the one hand there is liquidity and on the other hand the government is promoting so securitization to help the economy. when retail investors put the money in and companies can raise funds easily and the government is happy to see that. sherry: basically we are following what the government is allowing for the chinese market to happen still. >> yard, that is a lot of people's mentality when they invest in stocks. they look at the official media for signs of whether the government is approving such a rally. allow it, right. are you concerned about a bubble? >> i think the regulators have taken many steps.
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they are concerned a bubble is forming but on the other hand they are happy to see the rally ongoing so that companies can raise funds. otherwise it is difficult for them to raise funds in a debt market. sherry: thank you so much for joining us and taking a look at the chinese equity rally which is huge right now. x from bloomberg news. coming up next, 600 million chinese families might get a new source of entertainment. their version of netflix is on our report is next. in the markets in hong kong and shanghai get underway. we will have all of the opening numbers after this break. ♪
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sherry: welcome back. here are the top stories trending right now very it is a defining week agrees after the latest round of negotiations with the creditors collapsed in just 45 minutes. the european commission says that the brussels talks ended with no change in what creditors are demanding and in what reason is willing to do. the focus is now turning to a meeting of eurogroup finance ministers in luxembourg on thursday. everyone from chinese firms to hong kong tycoons are scrambling
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to get a piece of the next ipo in hong kong. conglomerate legend holding includes a stake in lenovo. they will go public later this week. half of which is offering to cornerstone investors. china starts a trading week with a market cap of more than $10 trillion for the first time. that is almost a dozen trillion increase from year ago. valuations are now at the highest in five years while the economy is growing at the slowest pace in decades. we are moments from the opening bell at the stock exchanges in shanghai and hong kong in the world meeting around china. that stocksally have rallied more than 10 chilean dollars. -- composite of 152%.
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remarkable numbers. you have to wonder even the economic fundamentals on china what the domestic investors see that foreign investors do not. it is generally a down day. and greece'swer factoring into that uncertainty in europe. federalep in mind the reserve is meeting on wednesday and investors will be looking ahead at that. in asia-pacific it will be busy and the markets are already underway. japan and south korea have been trading lower today. that is the case in hong kong now as we begin the day here. look at shanghai. shares are rising. futures indicate a lower start. the hang seng haven't these are the chief movers as the day gets underway. we have also seen some of the property developers active
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today. that is advancing because chinese resources are saying that they may have contract deals that are better than expected. the properties are leading on the downside. with the latest property market data. existing home prices in hong kong week on week of just under 1%. watch these hong kong developers in particular. that is what we see as the markets open in hong kong and shanghai. it will be a busy day as we are cheap or maintain the $10 trillion valuation. impressive numbers indeed. returning to our top story. some chinese investors are taking to the streets in beijing and hong kong as they protest an alleged currency scam. the dems are saying nearly 30,000 were robbed of nearly $1 billion. we have been tracking all of these reports. however, tell us what happened. >> there was a group of
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investors in china who lost one trail -- one billion or $2 billion. with a company called api. it claims to be based in switzerland. the investors were promised as much as 10% return per month. they also believe the money was safe because it is one of the biggest standards in the world. there was confidence. they received a message from the company is saying that the system was attacked i hackers and all of the money was gone. sherry: that was in january. the question now is what happens? what can they do to get $1.2 billion back? >> the investors have been protesting in beijing and in hong kong over the past few months demanding their money back. some of them even flew all the way from china to switzerland because they wanted to know the truth and where the company
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actually existed. they also visited a financial regulator there. now, no one has been able to tell them the entire -- they areey feel doing everything they can to recover the investment and. . sherry: there are many parties involved. how difficult is it to resolve such a situation? >> it is very difficult. and also regulators for the authorities to handle this kind of cross-border financial crime. there are so many countries involved. in this case, switzerland, china, hong kong, and singapore the investors.by no authorities have indicated any arrests of the minds of the scheme. not that many chinese
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investors can communicate well with the people in switzerland. sherry: especially when it comes to law and finance. gaineas investors will direct access to saudi arabian stock exchange this time next year. as it relaxes regulations. we spoke with the governor of the saudi arabian general investment authority. the measure is to give access to saudi stocks. >> it sends a clear signal that we are looking for quality investors, quality investors that bring in diligence, research, knowledge. bloombergs mark barton takes a look at what impact this opening up could have on saudi markets. $550 now the country's billion stock exchange is open
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to foreign investors. thelisted companies capitalization is the biggest in the arab world. is market capitalization bigger than moscow stock exchange and more than 2.5 times the uae's. what about growth prospects? saudi arabia is the biggest economy in the gcc. a political and economic union comprised of itself, kuwait, amber rain. it is not only the biggest, it is also the fastest growing. the saudi economy has grown 60% so far this year. if all goes to plan, it could join the msci emerging market ,ndex as soon as 2017 accounting for 4% of the total. for you get carried away, only institutional investors with at least $5 billion under management are allowed to invest directly and even then, each cannot hold more than 10% of the
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overall market value. what's more, you cannot hold more than 5% of any company, and together foreign investment cannot hold the majority. they are eager to diversify from black gold. investors can try their luck trading in the desert kingdom. checking in on some of the other stories we're following. ledrecord exit is of u.s. chinese companies moving back to china is fueling speculation about who will be next. analysts are betting on everything from real estate, to cosmetic retailer. chinese firms have been heading home to rally their local stock market. overseas listings are less appealing. the buzz around these companies has also boosted stocks. some have seen shares drop over 40 -- over 30% over the speculation. alibaba is treating its own version of netflix.
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it will be available in china and about two months. it will carry original and foreign content. alibaba is hoping to get a bigger share of china's online video market estimated to be worth $6 billion. the company bought the stake in a chinese company in march and the chairman visited last year to acquire more content. australian broadcaster is helpng $120 million to stay afloat. it is selling a 50% stake to the -- for $.15 aest share. a 43% discount. proceeds to pay down debt. shares are following -- shares are falling today. brewing inreement is the often turbulent relationship between australia and indonesia.
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australian prime minister is refusing to confirm or deny that paidalian customs officers customs officers to return boatloads of refugees to indonesia. how damaging is this for relations? at the moment, it is a war of words. indonesia's foreign minister has said he wants an explanation from australia. hasralia's foreign minister suggested that indonesia in force the sovereignty of its own borders. this is all to do with a report from last week. indonesia is investigating this. that australian custom officials ordered a boat destined for australia and paid the six crew on board, i thousand australian tolars each in $100 bills take the asylum-seekers on board back to indonesia. istralia's prime minister
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getting a lot of criticism over this. he will not confirm or deny if it happened saying he refuses to discuss operational issues. he has said that a range of measures have been used to stop the boats. stopping the boats was a government promise that he is fond of reminding the country that he has delivered on. has effectively used taxpayer dollars to pay off criminal people if these reports turn out to be true. sherry: are there any signs of diplomatic action from either side? is as far stage, that as it has gone. last week, while this was going on, indonesia waived visa regulations of 45 countries but not for us to even though australia accounts for the third highest number of arriving in indonesia.
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another chapter in the long and difficult relationship between the two countries. ambassador to indonesia has only just returned. this has been going on for a long time. not only the stoppage of the boats, there were other scandals. you can trace it all the way back to the independence of east timor. these countries really do need each other. trade is important. while there are difficulties, it is just too important not to survive. next, more on up the latest property prices out of china. we will get thought from ubs wealth management when trending business returns. ♪
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>> welcome back. palestinian militants have been accused. has defendedtary itself against allegations. to preempt an upcoming yuan deal. about 2100 palestinians and 70 israelis, most of them soldiers were killed. south africa's high court has barred the president from leaving the country until a judge decides whether he should be arrested. an african union summit is being attended in south africa. for alleged atrocities in the
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western region of darfur for. that landed last year have woken that have awakened and communicated with its european scientists after seven months of silence. it is the size of a washing machine. -- the solar panel ran down. it is now back under direct sunset -- sunlight and it has been able to read charge. -- read charge. sherry: take a look at some of these events in asia. neweholders will vote on a security on tuesday. the new model ah. the unlisted stock will be restricted from trading for five years but comes with a bigger dividend. on wednesday, hong kong chief executive says a chinese backed election plan for the
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territories. china is offering a 2017 pick an for voters to successor from a list of candidates it approved. if lawmakers votes down a proposal, they will appoint the next chief executive without consultation. reduced official rates in february. while there is a trend across for monetary easing, analysts expect the bank to hold this month. last week, bank of japan governor says there is no reason for the yen to drop further now cuttingis very weak, the likelihood of a third wave of stimulus. we will get a better feeling for this on friday. at theake a look economic data that we have ahead of us this week.
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joining us from singapore is the head of equity and credit for the asia-pacific and ubs wealth management. thanko for joining us -- you so much for joining us. the chinese stocks are over 10 chilean dollars. valuation levels the highest level in five years. are they overstretched and where would you put your money when valuations are this high? between aistinguish shares. they are not overstretched even though compared to the last few years, valuations have been higher. think that there is a fair observation. liquidity is the main driver. liquidity for the rest of the year remains worth coming. we expect one more rate cuts. it is difficult to
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make the case that the market should come down a lot even though on the a share side relations to look high. sherry: liquidity does think to be helping property prices that leak. we have seen them pick up. we have those numbers coming up this week during could property again the a viable competitor for stocks now in china? >> i think we could move into that scenario. we are already seeing that since the loosening measures for property in china around march. we are seeing the first effects. see that month over month, prices are coming up. is picking uplume a lot of steam. by the way, that is usually a good indicator for half the year down the road that it will be supported for economic activity. coming back to seeing it, it oftentimes feels like it when you put liquidity in the markets
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and in china. compete because you could lose some of the restrictions. if people say a shares are not the only way where i can make money. ifould not be surprised rising property prices have the potential to compete with a shares more than they have in the last few months. therefore, also cooling down the rally with the ishares. -- with the a shares. is all this week it about the fed policy meeting coming up. we also have greece. what are you looking at for this week? far as the fed is concerned, no action but we do think they will repeat the statement that it might be appropriate later in the year to raise. the reason we are saying this is because we think the fed still wants more evidence that the first quarter rmb was overshadowed. they want to avoid backtracking
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after they have made the first step up. it would be safer for them to wait until september to get more data to confirm. as the april and may data seem to be suggesting. there is a strong and genuine recovery from the first quarter. it would be too early to hike now and i think that is also becoming contentious. we think with the september view. as far as greece is concerned, i would encourage investors to look not so much at deadlines because we have seen several times now that they are not sufficiently hard. i would take a step back and look at what the interests are. for greece -- if a grexit happens, it wouldn't really matter anymore because they have all of these mechanisms in place. thinking about two thinks. gs. just as importantly, more than
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half of the debt, about 60% of the debt that greece has outstanding is held by european governments. not by the imf. it is not as critical. if you think about a grexit and debt,about a 50% on greek you could see renewed austerity and that is the last thing that they want. just think it is important to bear in mind it is not so much dependent on deadlines. there is no greg's it by accident. it would have to be a conscious decision by european policy makers. we think the likelihood is only 30% or so. that is all the time we have right now. think you for joining us. -- thank you for joining us. falling asleep on
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the job. how one man fan that out the hard way. when trending business returns. ♪
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sherry: welcome back. let's take a look at what is trending on social media with david and yvonne. yvonne: we are talking about greece here because there is a whole lot of nothing going on. david: no progress. it is a topic that has so many angles. there is the local story and also what the creditors are saying. get to a comment here. some interesting things happened over the last few days here one us. the day started with many sympathetic people on their side. yvonne: some people are tired of
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hearing about it. david: the finance minister replies. we are refusing to tax electricity at 23%. they are speaking to that we are ready to compromise but not on certain issues. one user commenting on imf which put out a comment. start from the top. not the richest. yvonne: a lot more to talk about their. this is what happens when you fall asleep at work. this is a good reason not to. this is a guy from iceland. look at what happened to him. the story behind this is that he was staying up late to watch the nba finals and coworkers actually -- it has gone viral.
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he said he was only napping for 15 minutes but it was enough time for them to snap this picture and now he has gone viral. i will be right back with trending business. ♪
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yvonne: good morning. sherry: this is trending business. in jakarta, taipei, and bone by, this is what we are watching. asian markets are calling this morning following the euro lower after the latest collapse of greek debt talks. a meeting in brussels lasted just 45 minutes before breaking up with no progress made. attention now shifts to a wednesday meeting in luxembourg in what is shaping at the
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defining week for greece and the eurozone. chinaotest -- protests in and protesters are flying to geneva. the victim say it involves 29,000 investors with more than a billion dollars. --horities fear that the sinking relations claims that australia has paid people smugglers to take asylum seeker to indonesia and they are posing a new threat to bilateral relations. australia's ambassador has just returned. we are live in jakarta with the latest. you can let us know what you think about the latest stories by following me on twitter. let's start with a look at the markets. let's check out the trends
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and what is notable in the trend met. is -- look at the all of the markets in the asia-pacific that are trading lower. take a look at jakarta right now. this is the latest market to begin the monday trading session. of 1%.ed of 3/10 on indonesia, there is a cabinet meeting today. the president will be discussing the working class. numbers that the statistics bureau of jakarta released -- will release at 11 akaka you -- at 11:00 a.m. we started the day with some modest positivity. the trend is now learning lower by just under 1%. moving to hong kong and shanghai the big focus is $10 trillion market valuation, a record after
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this record run for chinese shares. we now see the shanghai composite and the hang seng moving in the same direction in lockstep. it continues to trade lowered. there is some concern given the flood of chinese investors flooding into the market in recent weeks. his is supported by fundamental? happened, given fresh optimism and recent weeks -- stock dock connection program. property developers in focus. international -- issue store sale. it is slower which is not having a good impact on the stock. keep an eye on citic pacific as well. we will bring you more on those
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markets in just a moment. sherry: a sea of red. let's go back to the top story. reese is facing what could be a defining week. both sides ended up walking away from the table without an agreement. equity markets, the euro is taking a hit. david has the latest. only the equity markets and the currency market are also seeing them being indirectly pushed up because of the lack of progress. two things. why this recent collapse in talks which happened on sunday. was that a deal would be in place before markets opened up in europe. it was a soft deadline that was given. the main difference is still on the primary budget surplus.
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the gap between what greece wants and what its creditors want in terms of savings. about 2 billion euros annually. creditors want that to billion to come in the form of more cuts, pension cuts. on the other side, they want to see an increase in tax. greece has stood firm on those two points. greece towe expect during the ro draghi's speech. luxembourg also happens to be the first day of the international economic forum. on friday, we are back to the markets. .5 million euros the summit next week.
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sides have not agreed by then, it might well be passed the point where funds can be 30thrsed in time for the assuming greece has not set any money aside or has no money for this month and obligations to the imf. will take a more detailed look at that story later in the show. we want your opinion so please tweet us your thoughts. chinese investors have been taken to the streets in beijing and here in hong kong as they protest against an alleged kurds a scam. victims say nearly 30,000 people were rob of more than $1 billion. stephen engle joins us with more on this story. what happened here? >> the old story that if it sounds too good to be true, it probably is and that is what looks like happen to 29,000 chinese investors from all across china.
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allegedly hoodwinked by some scammers based out of switzerland, promising exorbitant returns on foreign exchange investments. up to 10% returns per month. that sounds a little bit too good to be true. we have swiss regulators, prosecutors who have confirmed that they are investigating a couple of companies. investors say they claim that they were licensed by swiss regulators however they were not. the lord money from chinese individuals, one investor investing upwards of a million yuan. they have vanished. complaints have been coming in from all across china, shanghai and surrounding areas. they all thought swiss fx investments would be safe.
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let's take a look at some of the other stories now that we are watching. here is a bond with the roundup. -- here is a bond. we are talking about legend holdings, a chinese conglomerate whose holdings include the world's largest computer maker, lenovo. couldors from state firms raise as much as $2 billion. legend is offering shares at dirty 982 43 hong kong dollars apiece. 24 cornerstone investors which is half of the offerings. on track, for the busiest first half in four years. legend has expect -- has expanded into a company with
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huge assets and a huge number of employees. legend looks to start trading on june 29. foxtail is coming to the aid of 10 network holdings. australia's biggest cable tv company announced it will buy a 50% stake after it said it was at risk of going out of business. $119 million of capital raising. and it willy owned pay 15 australian cents a share. than stocks closed on friday. existing shareholders will be allowed to buy shares of to the same value at the same price. it's share of advertising revenue slumped to 20%. they will spend the money to reduce debt.
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shares of 10 falling. alibaba because it is creating chinese version of netflix. it has announced a new online video service. called tbl. o. the content will be produced by the company and the rest by overseas. no details on how much it will cost. some are speculating it could spark a price war in an already crowded market. .t will face off with soho they have been on a big buying spend. how big is this market? worth $6 billion.
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it is expected to triple by 2018. sherry: coming up later, paid to stay away. iswill find out why jacquard relationship with australia is facing another challenge. we will speak to nepal's only billionaire about efforts to rebuild after two devastating earthquakes. ♪
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>> welcome back. have cut of syrians through the border fence and crossed into turkey. beensh border has overwhelmed by the number of refugees. around 13,000 have crossed into turkey in the last 10 days. syrian and kurdish fighters backed by the us-led coalition
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are closing in on islamic state held town. in northern syria. monday has been declared a day of national mourning in georgia after flooding killed 12 people there and have left more than 20 others missing. heavy rain caused a river to burst its banks in the capital wrecking roads, and homes. damagedoo was severely resulting in dozens of animals escaping including tigers, lions, bears, and even wolves. a hippo had to be subdued. officials are warning residents to stay indoors until all of the animals can be accounted for. sherry: after a weeklong review the who says there is no evidence that the mers virus is spreading outside of the hospital and into the wider community and south korea. the president visited the hospital in seoul to measure -- to check on measures being taken to prevent a further outbreak. 150 people have been infected
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since the outbreak started. it has been nearly two month since a 7.8 magnitude earthquake hit nepal destroying half a million homes and killing and than 8500 people injuring more than 16,000. my next guest and his family are spearheading a campaign through his charitable foundation to rebuild that country. joining us now is the country's first and only billionaire. priorityand that your is to talk about nepal. tell us what you hope to achieve. you know the worst has happened. hasreality is that today it left us with half a million homes completely destroyed and unlivable. 10 million people without their home. priority before the
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monsoon creeps in. sherry: mid june. >> sometimes july which will make life much more difficult. these areas especially in difficult terrains could experience a landslides. people need to be brought back under shelter. they need to be given some form of a transitional home and that is what we have done. our group has worked to provide for twoich can be used or three years where four or five people can live. per home. we are building 10,000 homes based on our own initiatives. helped us to build many of these zones. the need is half a million and that is what needs to be done. sherry: you're getting support from other business leaders as well. >> people want to work together.
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we are providing that support. in construction and full distribution. we believe that we have the organization that needs to be used. the first 100 homes will be delivered in a week. know's -- one needs to that the morale of the nepalese people needs to be rebuilt. business is down. people love nepal. trekker. sionate we want to rejuvenate them. sherry: how can you build back that confidence? to go there want because they are scared of more disasters. tourists don't want to
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go there because they are scared of disasters. sherry: life has become more normal? >> restaurants. traveler infrastructure is on tuning well. well.functioning the nepalese people have demonstrated over the years that they are very resilient. sherry: the trucking industry is so big for your economy. how badly damaged has it been and how much more will it take to recover completely? >> the trucking industry is up in the mountains. , there was very little built-up infrastructure needed. these people involved in those industries are there and the airports are fully functioning. flights are coming in. the issue really is to send out
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the right message that this is the right time that nepal needs you. sherry: where were you when the first earthquake hit? bank of thethe river at the tiger sanctuary where we are building a resort. sherry: you are in everything. they did a great job in meeting the immediate demand. nepal survived on that product for the next eight or 10 days. -- our company did a great job providing that. there is a tremendous sense of goodwill and solidarity that has been demonstrated. provide home,
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health the children get back to school. up of theonfidence nevill nepalese people. sherry: how do you create more of you especially after all of these disasters? >> nepal will have to come together and it is beginning to come together. the political parties are coming together. sherry: that is 1.i wanted to talk about. last week, you had a breakthrough on key issues on the constitution. that in times like these, the country can come together. the 25th of june we will have a big meeting to rebuild. aboutnot a question putting the financial resources together but what kind of new nepal do you want to build? sherry: will you be part of that new nepal especially the political scene? these are questions for the
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future that destiny alone can answer. my commitment is to nepal and i want to do anything possible. my family and my organization is working to bring nepal back together and to take it to the next level. we want to rebuild the pol with a new vision. sherry: a different vision in the political arena. politically, and at the end of the day, politics has to deliver prosperity. sherry: are you hoping to expand more? >> as a group we have done well. we are growing. verticals like hotels, financial services. we are committed to creating a and list thenepal
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company in the hong kong and new york stock exchange wednesday. sherry: you were hoping to enlist in the stock exchange. thank you so much for joining us. next, no snoozing on the job. man'sl look at one problem when trending business returns. ♪
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let's turn to yvonne and david. david: there is a weird giggle in my chair, i do not know why. yvonne: let's talk about the grease talks. reece talks. david: 15 days until the current bailout package expires. this on social media but a lot has been said. the imf account tweeted out this blog -- a link to the blog. a link to the blog and i recommended to anyone who is really following this story.
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as a response to this, a simple of -- a simplification of the problem. who moves on pension reform because greece does not want to move. -- if ituser is saying was that simple, we would've done that in the first place. comment, -- many talk about grexit but no one has presented at credible proposal on how it could be legally achieved without greece's consent. yvonne: the saga continues. sad --witch gears to a poor guy. he was staying up late. he is from iceland. he was watching the nba finals and his coworkers that him napping. the 15 minute naptime sparked a
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social media meme. he said -- we don't like to think -- take ourselves too seriously. a lot of empty eight fans staying up late. david: it is happening right here. yvonne: don't let coworkers catch you this time. that is the big message here. david: don't let yourself get caught. yvonne: you ever fall asleep david? david: not on live television. herry: ♪
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♪ top stories, asian shares and the euro falling after negotiations with greece collapse. the european commission says there is no change in at what creditors demand and what race is repaired to pay, they are billion. $1 the finance ministers are in luxembourg. and everyone is scrambling to
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get a piece of the next major ipo in hong kong, can god -- conglomerate holdings looking to raise about $2 billion when it goes public later this week. half of which it offers to cornerstone investors. alibaba is creating its own version of netflix and hbo, it will be called -- fox and will be available in about two months. he will carry original and foreign content. they hope to get a share of the video market estimated to be about $6 billion. now we will see what is moving the markets across the asia-pacific. >> generally a down day for in --s in asp shares shares in the region. and that the federal reserve meeting on wednesday. we will watch that closely. b: it is red across the screen
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and all the markets. that is driving the benchmark lower. we have seen action in the money market and precious metals, declines in oil and that has an impact on commodity producers in the region. down .90%., shares the chinese economic recovery and whether this impressive gain we have seen in a week will continue, is the question. this is led by domestic buyers and if you look at selling pressure today, it is evident by the exchanges win in the market was rallying and investors came here to seek bargains. this stock rally, but today is down. prices here, home prices, just under 1% week on a week.
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thanks are leading the way today. -- banks are leading today. in the australian market, this is what you have, 10 network holdings. did all -- foxtel purchase today, according to the consumer commission in australia. it raises issues, they will look at it, no decisions taken so far. , theyer in the past month have warned about of solvency and today there is a decline, it .260.ding at is withmy next guest the in situ that advises economic policy in europe. joining us from taipei, dennis.
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thank you for coming. let me get started with what happened on sunday. that was the deadline for national parliament to approve the disbursement of funds. what happens next? i think the big problem is that greece is receiving emergency assistance of nearly one billion euros a day and therefore does not have much pressure to act until the very last moment. this is not helpful for the future of europe. sherry: what happens immediately, because we have heard reports that greece doesn't have money to pay the ims -- imf at the end of the month. comings another meeting up, so practically speaking, what happens, can they make the payments? no way in my opinion
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that greece campaign back debts that it does at the end of the month. the only question is whether it can reach agreement on it getting further loans to repay the debt and that can only happen if it connects itself to structural reform. it has not happened sufficiently so far. the government, they are committed to resisting such pressure and that is the nature of the problem. in order to get out of the problem, you would need the greek government to commit itself to in automatically implemented fiscal plan and structural reforms that included selling off lots of national enterprises, the labor market, making it more flexible, and in return it would get bonds and
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possibly a right off of current loans. that is the only possible outcome. everything else could become disorderly. sherry: how much sympathy to you have for cyprus right now and the situation he is in. you argued that measures should be loosened, but only if reforms come in return. timethink this is now the when the greek government has to realize that it needs to make concrete and credible to reforming its fiscal policy and structural policy. that cannot continue to rise without limit and it must invest more in restructuring the economy and becoming more competitive. if the government would commit
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itself to doing something which is in its own interest anyway, then i believe european partners would be happy to continue to help them along. in the absence of such commitments, the patients with greece is wearing thin. sherry: you mean people will be ok with greece exiting the eurogroup? now, what form the exit takes need tohing that will exercise our imagination very quickly if that becomes the only other option. couldrderly exit destabilize financial markets, -- is degrees -- i f greece was given provisions
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and offered a plan that would allow it to reenter the european union and the euro at a future date, then that could be another option, given that the current options are beginning to look unlikely. you.y: dennis, thank let's move on. a new disagreement brewing in the often turbulent relationship with indonesia and another country. they are returning boatloads of refugees back to indonesia from australia. all yet is in jakarta. what is the reaction? the indonesia and australia relationship is at risk after claims that smugglers
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were made to take back both carrying refugees. the media reports that men were paid money to turn around after being intercepted in the sea. the united nations report that about 54 migrants were from -- indonesia is a place where a lot of migrants leave and treachery just really a. smugglers were indeed a turnaround the boats, immigration ministers have denied the allegation. but this incident mars tension between the two countries, which have a long history of friction. 2013, leaders in australia
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have vowed to stop smugglers. policies of turning both back have strained relations with human rights groups, and the united nations which has also criticized the policies of humanitarian concern, especially after the crackdown on human trafficking there. this has left thousands of hilum -- asylum seekers stranded. head over to australia with the different stories making headlines there. broadcaster is the parent sell a stake to the biggest cable company there. david has more from me. so why does foxtel want to invest?
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this company has a reputation as being a money pit. -- have billion are partly son,ey, rupert murdoch's bruce gordon who is also a millionaire. they are major shareholders in this company and they have lost money. so, as you say, why would you invest in ten. declined,e share has so what is the attraction? they are getting it cheap. if you look at where ten's shares are, they are getting it about a third of cheaper than the average price it has been
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all this year. if you think that the estrogen market is turning around -- plus trillion -- australian market is turning around, -- sherry: how do they recovered and make a turnaround? has been in a bad situation. they have lost a lot of audience share and revenue to larger competitors, nine and seven. but things are turning around. nine in particular a couple of weeks ago, gave out warnings that results would not need -- meet targets. in part because of the turnaround we are seeing in ten. also ten's problem is there
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limited content. it is a risk. the question is whether this is a cyclical decline in the market there or a structural one. it is cyclical, then the market will rock back. then you have competitors like netflix making sherry: it is a difficult business. sherry: ok. coming up next, china may be stabilizing, but our companies still suffering? we will have analysis after the break. ♪
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back, let's look at stories around the world. in the gaza strip, many accused of war crimes. allegations that forces did crimes against humanity. now about two dozen 100 palestinians -- 2100 palestinians have been killed. and in south africa, they have leaving theder from country, trying to decide if he should be charged. that he will be
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indicted twice. ofs is in the western region par 4. after seven months, the space probe that landed on a comment last year has woken up and communicate with european scientist. this lander, about the size of a washing machine, became the first spacecraft to land on a comment last november. batteriesday ran -- ran down, but under direct sunlight now can recharge and could operate until it returns. berry: china's push could paying off. the economic slowdown may be stabilizing, but it does not mean that shanghai will meet targets. how are companies faring, we are joined by joseph. and others. joseph, let's start with you,
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infrastructure and utilities and when we talk about china, we need to talk about electricity consumption as a powerhouse. how has that been affected? >> it is not going to well. it is actually bad. you have a double whammy right now, number one is the gdp growing at 7%. you expect a 1-1 portion. consumption is growing at 0-1%. something is not right. the industry, not really pushing electricity consumption and you have this shift into more residential, .ore commercial consumption that is only 25% of the total. the driver of the bus at the end the secondary industry and it is not moving. sherry: michelle, tell us how that is affecting operators and
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coal producers? >> is not a clear picture. coal production is coming down we can see that cold crisis now is dropping by 20% as compared to last year. it is humming to its lowest in eight years -- coming to its lowest in eight years. profit is slow. definitely not good. sherry: and if we are talking about belichick to consumption, what about oil consumption and the gdp growth? >> there is a strong relationship between oil consumption and gdp rate. we will look at the ratio between will consumption growth , .67l conception growth over the last 30 years. however, that ratio jumped to
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year.5 last we think this happened because the chinese economy is shifting away from this industry and focusing more on services and manufacturing. this may continue in the future as china remains in his normal stage. sherry: but as the structure goes, what about the fact that they are also focusing on clean energy and that affecting other industries? >> for electricity, the good news is that china is still as they solar, as much can. the bad news, in the short-term, which is the consumption is down, said rates for things like windfarms is large. that can affect profitability.
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there is a lot of capacity terms of opportunity. sherry: we could be cleaner air and hong kong. -- coal, coproducers producers, what is their strategy to cope with problems? >> there are two of them. --solidation is happening consolidation is happening. they are given government support. expandond, they plan to exports. that is good because china is oversupplied and we expect more demand from korea and japan, even thailand since we have the overcapacity. sherry: thank you guys. and coming up next, bring on the
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competition. more on the latest challenger in india's mobile industry. ♪
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♪ sherry: welcome back, you are watching "trending business". inecommunication companies india will take on a new challenger this december. it is coming from billionaire -- a new billionaire. mumbai for that story. service willom start in december this year. the network is currently being tested with the launch being inflated over the next few months.
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muchout will mark a awaited return of the billion or the space. in 2005s a family feud within the billionaire stanley. is india's richest man, amnmbani. this is the only company that build thethey business, and growing concern from investors. they have spent millions of dollars so far. they are working with device , to equip these
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phones and make them available by december. let's take a look at the markets in the region as the trade. this composite down 1.1% -- at .67%. today not so well. they are coming down from high the raterse we have cut in south korea, which made a record low of 1.5%. now we see it trending downward. down. -- taiwan is singapore is down 1.13%.
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that is it for trending business, stay tuned for asia edge where we recap the stories of the day. our guest runs one of the top equipment companies in silicon valley. stage two. ♪
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♪ (ee-e-e-oh-mum-oh-weh) (hush my darling...) (don't fear my darling...) (the lion sleeps tonight.) (hush my darling...)
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man snoring (don't fear my darling...) (the lion sleeps tonight.) woman snoring take the roar out of snore. yet another innovation only at a sleep number store. at the peak. this is hong kong island as we begin the week. it is a mixed picture in asia today. we are live in hong kong and this is "asia edge". >> the top stories this hour, a defining week ahead for greece, stocks fall, and what a
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legend. the biggest stakeholder set to raise $2 billion. and an international who did it, lose $1 billion in a currency trading scam. and the fight for hong kong's political future comes down to the wire as opposition to beijing's plans grow. we will speak to one of the key actors. >> and we are tracking equity markets. look at the board, the only ones posting a gain is the amount, vietnam, justs over the line. facing a lot of uncertainty in the moment. investors looking ahead to the federal reserve on wednesday when they had their meeting.

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