>> wreckage is all that remains. a malaysia airlines plane is shot down over ukraine. 298 people killed. the un security council called an emergency meeting. brought there who plane down. four months after the disappearance of another plane, an airline faces new doubts. lumpur.ive in kuala streaming on your mobile and

bloomberg.com. shopping --day, the shocking news that a malaysian airliner may have been shot out of the sky in ukraine. the circumstances are not clear him about what is clear that everyone on board is dead. john dawson is here with more. >> 15 malaysian crew, 154 him a the majority dutch, australians 27, 9 british, and curtly at the moment of figure of about 23 u.s. citizens. also 23 malaysian citizens as well. arrivede would have about two hours ago. it left from amsterdam and went down over the eastern ukraine, 50 kilometers from the russian border. it was traveling at 33,000 feet.

it was very much cleared and the international transport association said there were no flight restrictions. this was not a designated war zone so they were quite right to fly over this region. was assile itself wide-body plane. it a gadfly surface-to-air missile is designed to shoot down the lee terry aircraft, helicopters and cruise missiles. comment from the mayor about his reaction. it simply technically impossible. the thing is that are air defenses are limited to man

portable air defense systems and antiaircraft guns. they don't work past 600 meters or even 500 meters. >> this is very much an ongoing investigation but certainly huge shock, particularly for malaysia airlines. ,> we know now that aeroflot deutsche, lufthansa, air france, delta airlines completely isiding that airspace as pretty much every airliner after this incident. what is the reaction from leaders in russia? and also the rest of europe. >> i will give you two examples. , people suffering death on the plane. the first is angela merkel, who is shocked and demands a swift, independent inquiry.

i'll be slick president vladimir -- he blames the ukrainian government directly. -- obviously president vladimir putin. they have agreed that the crash site evidence will stay in place. angela merkel mentioning about the shock. there were 154 dutch on the plane. the dutch prime minister mark rutte says he is shocked and devastated. there were 27 australians on the plane. it is unspeakable crime if the plane was shot down. david cameron with comments about the nine britons, shocked and saddened. >> this is a very popular flight

path for europeans are people who travel from europe to asia. -- you areolutely absolutely right. 290 people dead, as you reported. john dawson, thank you so much. some of the major markets are just opening up right now in asia following the plane trash and amid escalating tensions in the middle east. what is happening? drop in overt three months, the s&p 500 dropping over 23 points. this is what we are seeing in the early minutes. south korea, japan, australia just opening up. new zealand has been up for some time now. the dollar-yen went from closer to 1.01 overcloser the past seven or eight hours or so. i want to show you what's happening across london. these are the opening numbers.

you can see the damage in the first opening minutes. the asa, just three points above 5500. the south korean cosby down .6%. kospi down .6%. you look at oil prices, for example, what do you have here? you, you had two things happening overnight. we have been talking about this all morning. let me just fixed this chart. my mistake, get rid of that. let's take a look at the japanese yen. there we go for the japanese yen. very clear what happened here. p.m., that's 11:30

when we first got word of the plane being shot down. this morning, 3:45 in the morning, that's when we got word from israel that they were on ground offensive on the gaza strip. now,s where we are right 101.23. we will continue to watch the job -- the dollar yen. basically a five-month time for the japanese currency. declineseing a lot of over in the japanese session. take a look at oil prices, where are we? 103.764 west texas here. it is playing out across equities, the bond market, the vix index jumping 32% overnight. is quite clear, risk aversion echo data lot of the and throw it out the window. this is your story of the day.

>> like to safety in terms of the market. malaysia saying it is still unable to verify the cause of the crash. najib razak held a news conference earlier and here is what he had to say. >> this is a tragic day in what has already been a tragic year for malaysia. as we work to understand what happened, our thoughts and prayers are with the families and friends of those on board the flight. what they muste be going through at this painful time. >> what else did the prime minister have to say? >> the prime minister said that he is doing his best in a very trying time.

a tragic day in what has already been a tragic year for malaysia. the press conference was held at 4:00 in the morning. the government is assuring that it is taking swift action in responding to the crisis. the prime minister also said he has spoken to the prime minister of the netherlands and the ukrainian president who pledged there will be a full and thorough, independent investigation and the government will the negotiation with rebels in the east of the country to establish a humanitarian corridor to the tragic site. he spoke to president obama who agreed the investigation must not be hindered in any way. itaysia is actually sending, is bashing eighth special flight to kiev -- dispatching a special flight to kiev carrying a rescue and medical team. >> no doubt there are a lot of

-- there is a lot of sadness coming from the ground in response to this from najib razak, but it what point does this turned to anger? conference,e press there were one or two relatives who were quite agitated because they were not being given information, and demanding information from malaysia airlines officials. , we are seeing next of kin and relatives arriving and they are being quickly brought into a special holding room to be briefed. for the moment, the media is not allowed inside the holding room. next thank you so much for joining us. let's get more on this. we are joined by john mcgraw, a

former u.s. pilot who work for the national air transportation association. we will get more from john when we connect with him a little later on. let's just update for you right now, malaysia airlines crashing in ukraine. no sense, despite a lot of the allegations that it was a surface to air issel that brought them the plane, but officially the investigation continues. in a moment, the latest from the middle east as israel in the late -- invades the gaza strip. ♪

>> the world has reacted with shock and outrage to the shooting down of a malaysian plane in ukraine. joining us is bloomberg news , let's startndent with the reaction from washington.

>> the reaction has been interesting. president obama first learned of the crash from president putin, it appeared. he was having a conversation with the russian leader on his in to an economic event wilmington, delaware. according to a statement from the white house, it appeared noted theresident crash in their phone call, which was primarily about u.s. sanctions that were introduced yesterday. and stan president obama has focused on confirming whether u.s. citizens were aboard the flight, details of which still had not been confirmed yet. president obama since has been on the phone with ukraine president pershing go as well as najib razak. calling for an investigation

into the cause and details in various factors that led to this devastating crash. so far in his latest move, president obama has spoken with his national security team where he discussed ways that america various probes and investigations for the crash. un security council also meeting in an emergency meeting later today. let's get more on the malaysia crash. by johnoined via skype mcgraw, a u.s. test pilot who also worked for the national transportation association. he can give us a sense to what the american reaction is going to be there on the ground. we know there were americans, we don't know how many, but give us a sense of what obama administration and officials in the u.s. are now going to do. a tragedy,certainly

coming on the heels of the other malaysian accident. it's a very difficult situation. , think of course the americans the ntsb and others will be offering investigative help, but this will be to a different level. there have already been a lot of american and other countries focusing their intelligence assets on that part of the country. determineery quickly when a missile was launched and what the trajectory is. i don't think there will be much of a question and what happened here, and they will probably quickly start investigating this from an intel perspective to find out who actually fired the missile and whose control they were under. >> here's the thing, though. this airspace was not deemed banned. it was not warned. airliners were still flying a very popular route out of europe to asia including aeroflot.

air france, lufthansa, delta airlines, all of these and many others have now ceased operations over that airspace. we do know that to ukrainian planes were shot down. why was this airspace still maintained as being safe? >> well, the u.s. in late april or early may issued a special regulation that prohibited u.s. operators from flying in and out of the country. the reason is, the biggest threat they thought they would face would be something like a surface to air missiles or potentially being shot down mistakenly by other airplanes that low levels. not at this out to two. overflights in most situations, the intel would say you're probably safe. less capable shoulder fired surface to air missiles cannot reach that altitude. and the bigger missiles are

typically in control of the government. there is very little upside for a government to shoot down aircraft like this. >> the investigation will continue, no doubt a lot of resources will be flooding the ground in ukraine, including a lot of american officials. john mcgraw, thank you so much for joining us today on the latest. -- 290 eight aboard, including three infants, deceased. today's other major top story, israel has invaded the gaza strip to stop firing over the border. tanks and troops were sent in over the failure of an egyptian peace plan. it is the first significant ground operation in gaza since 2009. it comes after 10 days of aerial attacks that have left more than 200 palestinians dead. at last count, 200 35. israel says at least 1200 rockets have been fired by hamas

in the past week and a half. have our correspondent from tel aviv joining us on the latest in gaza. jonathan, what can you tell us? ,> the israeli prime minister benjamin netanyahu, he pointed to one event that led him to order in the ground troops. botched this infiltration attempt into israel for a tunnel. there were 13 armed palestinians who made it under the border and israel he troops spotted them and shot them down. netanyahu later said it was because of that incursion that he decided to send in the ground troops. >> what happened to that cease-fire just a few hours earlier? >> there was a pretty strong effort to try to head off the ground invasion. you had the u.s. and the united nations and especially egypt, the mediator, trying to arrange a cease-fire. there was a brief truce that

lasted about five hours of that people in gaza could at least five food. in the rocket started flying again. >> we will leave it there. joining us from tel aviv, earlier jonathan telling us that schilling is now coming from air, land, and sea into gaza as israeli troops are on the ground there. coming up, we will be live at the be 20 summit in sydney to hear from the founder of one of the worlds largest online employment websites. stay with "first up." ♪

>> day two of the business summit in sydney. let's go live there. paul allen is standing by to speak to the ceo of the world are just online employment company. paul, take it away. >> a slightly more somber mood at the be 20 today, as you would expect. we will distract you with something else, job creation. mr. bassett, employment creation has been something of a theme here at the summit so far. is there any sort of actionable policy recommendation you could make to take to the g-20 meeting later this year? involved inountries

the actual recommendations involve lifetime skills and ascation as well entrepreneurialism and creation of jobs. do expect to see anything come out of this, or is it just a talk shop? >> i'm hoping there is. change,as government entrepreneurialism. unemployment here in australia has become an issue as it is creeping up. do you see job creation in this country as the mining investment boom winds down? [indiscernible] and increase in research, finance, and so on. rather ambitiously

stated you want 100% of all job hunters online. how are you going to achieve that? >> about 25% say they want assistance in finding a job. do you view sites like linkedin as competition? you described it as noise without outcome. they are very serious organization and they have done a good job in the u.s. and europe in particular. we continually strive to get better. >> in terms of australia, you must be pretty close to the saturation point now. or can you go in a mature market like this? we feel we can do much

better. the 25% that we do have, there is the 75% that we don't. >> what is your priority for expanding into asia? you are quite interested in going there next, aren't you? >> we have a strong presence in china. we are excited about the prospects in china. in southeast asia, we are hoping with aplead transaction business there. transaction.e a i think it's about education. we need to make education more appropriate for the new world. of seek, the jobseeking website, thanks very much for joining us here in

20.tralia at the b >> as you said, paul, a somber mood cast over the conference at b20. in a moment, the latest on our top story, the malaysia airlines disaster in ukraine that claimed 298 lives, occluding three infants. ."o with "first up are ♪

>> it's 830 here in hong kong and the clouds are looming over tokyo harbor. .ain is on the way we are in our from the open of trading here and you are watching "first up." and malaysia airlines plane is shot down over ukraine. 298 people killed. the un security council called an emergency meeting. and an invasion is underway.

israel orders soldiers into the gaza strip. everyone was lining up for it, but alibaba is putting off its ipo in new york. to you.ning let's return to our top story this morning, the shooting down of a malaysia airline jet in ukraine. the circumstances are unclear, but here is what we do know. the boeing seven 77 was flying to kuala lumpur from amsterdam when it came down near the town of torez your the russian border. 298 people on board were killed. the majority of the passengers were dutch, the nationality of 41 people cannot as yet be identified or verified. the malaysian prime minister najib razak said there was no distress call, and he cannot say what i'll's the crash.

let's go live to kuala lumpur. what is the reaction there? since the news of the incident was first released to the public, there has been quite a steady stream of information from the government related to what information they do have. at 4 a.m., the prime minister did hold a press conference in which he did state that the cause of the tragedy had yet to be confirmed. he has spoken with the president and malaysian officials are keeping in constant contact with the ukrainian officials to ensure they have all the information available and they disseminate it accordingly. as of 7:50 a.m. this morning, malaysia airlines did update their list of passengers on board. they did confirm that there were 283 passengers, 45 of which relations -- were malaysians,

including 15 cabin crew members. there is still much to be learned and the prime minister did say he was keeping in contact with other leaders that are involved. he did speak with president obama, and they both agree that the investigation should be full, thorough, and independent. sophie, tell us what the mood is on the ground there in malaysia. there is no doubt that this comes on the heels of what was still the mystery of the tragedy of inmates 370. 70. now yet again -- of mh3 give us a sense of the country's mood as well as the people. >> understandably, the mood is somber. there has been out touring of grief and a showing of solidarity among malaysians. there have been many almonds on social media giving support to those -- many comments on social media giving support to those

who are touched by this incident. the government has been quite transparent in the information they have so far. malaysian airlines has been available to the public. the european representative has said that any family members who kiev from kuala lumpur and amsterdam may do so if they wish with the support of malaysia airlines. then, this is a chance for public to rally around the incident. this is a situation where not all information has been clarified, so this is a time when more information needs to come to the front for the government of malaysia and other related parties to take measures forward. us fork you for joining the latest out of malaysia. this is the second tragedy to hit malaysia airlines this year, following the unexplained mh370 in march.f

joining us is our southeast asia correspondent, haslinda amin. indications, malaysia's pre-trade is down nine percent. that is an indication of what is to come. this is an airline with financial woes, whose stocks have plunged about 50% over the last six months. the plane you mentioned earlier still missing without a trace. this incident is the last thing it needs. there are a concerned about bankruptcy. it has been in losses for the last three years that have amounted to 1.3 billion dollars, with no end in sight. to continueosses through 2016. high fuel costs, competition from budget carriers, and talks about jeopardizing its reputation and future. malaysia airlines has been

struggling with a turnaround. it has probably taken a few steps back. it will be extremely difficult for it to return to whentability, especially it has yet to win back customers. however you look at it, malaysia airlines operations will be under tremendous stress, under pressure. if you take a look at the recommendations, 13 out of 15 analysts we track on bloomberg say sell shares of the carrier. the future is looking pretty murky. >> we're getting word right now malaysia airlines dropping 8.9% in pre-trading, and investors certainly are going to have concerns that you voiced right now in selling off. this is not the first commercial plane to have been down. is malaysia airlines likely to survive? investors certainly concerned about it as we see in pre-trading.

really hard to predict. as it stands now, malaysia airlines says bankruptcy is not an option. we know it has funds to last only one year. whether government will come to its rescue afterwards, we are not sure. like you said, other commercial carriers have been downed. if you go back to 1988, pan am 103 over lockerbie, we knew immediately that a bomb had caused the tragedy, but it took almost 11 years to bring anyone to trial. pan am did not survive. today and am is no longer in existence. airfferent story for korean flight double a seven gunned down in 1983 by soviet work lane over the sea of japan. most of the bodies were never found. but korean air survived and is still in operation today. so it's really hard to say what the fate of malaysia airlines will be. there are still lots of

preliminary questions being asked, like who could have shot it down? those questions need to be answered first. was behind the garage that brought down 298 souls? thank you so much for that. the other big story, israel has invaded the gaza strip to stop the barrage of launch missiles over the border. firstvasion is the significant israeli ground operation in gaza since 2009. this comes 10 days after aerial attacks that have left more than 200 palestinians dead. israel says at least 1200 rockets have been fired by hamas in the past week and a half alone. major markets have been up and running for about 30 minutes. david, what is the damage looking like? >> we just have four markets open in the asia-pacific.

we are basically looking at red right now. , $6.7caps here in asia million over the past few minutes or so. the nikkei to 25 is the biggest rack to the dollar. the yen is the strongest level against those currencies since february. kospi lower and the sx lower by about .5%. want to show you what's happening in australia right now. basically a sea of red there. there's one group of stocks gaining today. of the 200 on the asx 200 lower. let's dig deeper and take a look at the mining shares.

you get deeper into that mining, there you go. gold is up.are up, substantial gains to about 4%. very quickly i just want to show you what's happening with the gold price. where little off the highs of this morning. 1322 announce. , twoa look at this chart events, the plane being shot down and israel going into gaza. that's when the plane went down, that's when israel announced it. a $26e are looking at is u.s. ounce pop per ounce in gold price. risk aversion, until we do get a better idea of where this will take us, investors will simply

take risk off the table at this point. >> up next, were going to get into the business management software with the asia-pacific president of sap. stay tuned. we will be right back. ♪

>> is friday, july 18, and these are the top stories. a malaysian airliner has been shot down over eastern ukraine, killing all 298 people on board. the boeing triple seven was flying to kuala lumpur from amsterdam but it disappeared off the radar. crane, russia, and separatist rebels have all accused each other of being involved. just finished a conversation with the prime minister of the netherlands. i offered our condolences on behalf of the ukrainian people and invited dutch experts to open an investigation of this act of terrorism. i would like to bring your

attention to the fact that we are not calling it an accident or a disaster, but an act of terrorism. beck several airlines say they have change their routes to avoid flying over ukraine. lufthansa, klm, and delta are among them. the airspace is a popular route between europe and asia. israel has invaded the gaza strip to stop hamas firing missiles over the border. it's the first significant israel he ground operation in gaza since 2009. it comes after 10 days of aerial attacks that have left more than 200 palestinians dead. least 1200 at rockets have been fired by hamas in the past week and a half. business, software maker sap has raised its 2014 outlook for its web -- web-based services as customers switch to more cloud-based products to try to save money. let's get more from the

sap president. thanks for joining us. it was a slight beat in terms of revenue and for operating profit , it was slightly a miss. but pretty much overall a satisfactory outcome. tell us how you got there. >> good morning. it's certainly the growth engine for growth globally. we posted 48% growth here in our cloud business and 12% growth in the on premise software. so we are delighted with those results and delighted to be part of that winning momentum here at sap. >> no doubt there is a lot of competition in this space. worked day and salesforce.com nipping at the heels of sap, trying to take market share.

how are you offsetting arrivals? japan, in asia pacific there are a number of elements uniquelybrings that differentiates us. we are delivering cloud services to our customers at scale. the second is we are doing it profitably. our solution is resonating with our customers here in asia very much against our competitors. we had a company in australia that services the oil and gas industry, to choose the sap on-demand solution in a direct head-to-head against salesforce because it had such a depth of functionality that that company required. >> we are seeing the biggest second-quarter growth for sap coming out of the asia-pacific region. how much is japan's recovery part of that narrative? wasur biggest growth engine

actually australia and new zealand come in southeast asia and korea. australia posted triple digit growth for us. japan is in recovery mode and we are expecting a significant second half from japan. we have built a number of our conversations around the strategic imperative to simplify their business and reduce cost. >> talk about the deals that we can expect from asia and sap. a number of m and a deals that have been happening this past year. anymore on the horizon? a decisionctually that happens at the board level. sap's goal is to simplify for our customers complex business processes and to offer into to end functionality. so you can see in q2 the fieldglass acquisition, which

released into the type of cloud offering we can offer our customers, not just procurement online but also contract labor, effectively covering all the services that a customer will might want to procure. while i have no insight to what the board is planning in terms of acquisitions, i know that sap is looking at what our customers need, and if acquisition is what we need to achieve that, that will be a decision the board will make. acquisition was a web delivering software including a $3.4 billion purchase back in 2012. interesting as to how that part of growth is going to expand in asia. in terms of strategy, what can you directly influence that we can see in the coming quarters? one of the elements we can directly influence is some of the innovations we see here in

asia. for instance, the sap platform is an in memory platform that allows customers to operate real-time. teamw the german football lift the world cup recently with sap being the 12th man on the field, providing some real-time insight into the sporting movement on the field. here in asia, we have similar innovation happening in the arena of sporting. the calcutta knight riders in india. i just recently announced a new stadium. these innovations with partners and organize and -- organizations here in asia are ones that will help you'll our input into the development and acquisition cycle of sap. >> last question for you before i let you go. talk about just how much the pent-up demand for businesses

has been in terms of capital expenditure, and how much of that recovery in expectation of capital expenditure spending is going to flow through to your business in asia? thinghink the wonderful about sap is that we have been offering on the cloud the ability to put them into a public cloud environment, allowing companies to actually as a way ofd delivering cloud software. we have a strong position in terms of providing backbone software that runs businesses. we are still seeing the demand for that software here in this market, as companies look to globalize, expand their borders, simplify their business, and reduce cost. >> thank you so much for joining us today. still to come, one of the year's

most eagerly anticipated ipos could be delayed. details on why alibaba may choose to wait. ♪

>> time for a look at some of the corporate stories we are following. microphone -- microsoft is to impose the largest round of job cuts in its history. losses amount to about 14% of the entire workforce and includes 12,500 positions at nokia, half the employees added in the acquisition. the entertainment studio is to be shut down. comes one month after its first show was rolled out. named ceockard has

meg whitman as chairman of its board. replace the ceo who is stepping down for health reasons. those are the top corporate headlines. >> now there are reports that alibaba is to delay its u.s. stock debut in september. zeb eckert joins us with the details. for weeks we have been talking 8/8 being a suspicious number, and now what? to nine.guess we go alibaba seeking to delay its ipo because the securities and exchange commission in washington needs more time to review its prospectus. it has made three minor revision since may i'm according to the company, it has to do with the deal spree that alibaba has been on. of stakesght a number

in companies across various industries over the past few months. that delays the approval process. it doesn't e-mail the process. that is important to know. the goal according to insiders was to try to get this done by august when many fund managers go on vacation. they wanted to get the roadshow done so they could market this. that was delayed, and insiders tell bloomberg they don't want to rush the process. the company doesn't want to rush it, they would rather get it right before they list. quick strengthening that roadshow with all these acquisitions, they were flying fast and furious, keeping us very busy here at bloomberg. remind us of what the they havens are that been making. >> is across a range of industries and it takes the sec more time to look at what alibaba is doing. one example is in china, to challenge uber.

alibaba getting into the game because they are backing a technology-based company with luxury cars. it's just one example of the industries they are getting into to try to broaden their service and appeal and connect with ordinary, middle-class chinese. that is where alibaba has built its success. >> alibaba delaying what was 9.ected to be 8/8 to now stories,p the top waking up. asia, you have israeli troops now with a groundswell in gaza. also, a malaysian airliner shot down over ukrainian airspace. dead,uls on board, all three babies included. that is it from us on "first up."

asian market selling off across the board. wall street seeing the biggest drop in over three months. $60 billion in, asia's largest company selling off. move thoseon the quote coming up next. ♪ .. ..

>> good morning. i am rishaad salamat live in hong kong. this is "on the move." shock and outrage. no survivors, as a malaysian jet is shot down in ukraine. invasion underway. israeli forces are in gaza after a fragile cease-fire collapses. are going as microsoft streamlines to the cloud. shockrld is reacting with and outrage to the shooting down of a