are dead. john has the latest. >> let's get straight to why what happened with regards to 154 dutch.ualties, not sure how many americans on board. >> joe biden said they are trying to find out. john kerry also trying to establish whether there were americans. >> they included the u.s.-russian tensions being so tense at the moment. intensifying reports that it was shot down by pro-russian insurgents. when it went down it was over eastern ukraine about 50 kilometers, 31 miles, from the russian border traveling at about 30,000 feet, 10,000 meters. it was authorized to do so at

authorized to fly in this area. no-fly restrictions and they said it was not a designated war zone. it was a billing -- boeing 777 wide body. it was designed to bring down military aircraft, cruise missiles. comments from the ukrainian ambassador to the u.n. insurgentsd russian talking about a plane they shot down. reaction was that they reported to moscow that they shot down a military airplane. then when they got to ground, they made a second call informing them that it was a civil one. >> the un security council

meeting today at 10:00 a.m. local time, an emergency meeting to discuss what is needed. there are blogs and tweets about this. >> i just heard what you have the investor saying there about rebels being in touch with moscow. we have also had tweets apparently in certain things were actually released on social media when they found out it was a passenger plane. comments were removed. >> they were released by the pro-russian insurgents. that's overall the latest, if you like, on that. then it's about reaction across the world. >> referred from david cameron and various other people, barack obama and vladimir putin. like they were on the phone at the time discussing sanctions when the news came in. putin told him about this. president putin is blaming the ukrainian government quite

where this happened they are responsible. the ukrainian president petro poroshenko denying that and he has also been talking to president obama. the crash site evidence will stay in place and he welcomes all assistance from the u.s. so farthe situation blaming the pro-russian rebels. it would seem that they are responsible for this and then you have angela merkel, the german chancellor, also involved in sanctions that they have not as of yet. she is demanding a swift independent inquiry in this. add to that the u.s. reaction, president obama himself, you can see that on the screen, the various leaders there, shocked and devastated. an unspeakable crime. the worldday for

saying it is less like an accident and more like a crime. vice president biden said it was blown out of the sky and that is probably the most vocal of the comments so far. you.hn dawson there, thank malaysia still unable to verify the cause of the crash. >> this is a tragic day in much 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. i cannot imagine what they must be going through at this time. sophie joins us from

bloomberg television malaysia. what are people saying there? rish, it has been a somber start this morning. in the first hour of trading, following 16%,% down the most in nine weeks so this is putting some pressure on the national carrier as well as major shareholders to draw up a revival plan which they said they were looking to issue in the next six to 12 months. on the part of the authorities involved among malaysia airlines said that they would read rerouting all european flights operated by the airline said this is a bit of a relief for those who may be traveling on malaysian airlines to and from europe. on the part of the malaysian government, they will be issuing

from the transport minister at 11:00 a.m. today there is a rescue flight schedule at 10:00 a.m. involvingbe a flight volunteer and support personnel to kiev. >> we just heard the prime minister there. what else did he say during that news conference? essentially, he did say that there has yet to be verification for the mh 17 incident but he is in constant contact with the related parties. he has spoken to president obama. ofhas spoken with the leader ukraine, petro poroshenko. he has been in touch with the dutch premier. all in all, a lot of transparency in terms of what

information has been offered to the public since this is a tragedy for the malaysian public at large. much for that,ry sophie, bloomberg malaysian tv. the other major story we're covering for you today, advance in the middle east, israeli troops invading gaza after eight fragile cease-fire ended. significantfirst israeli ground operation on the gaza strip since 2009 and a comes 10 days after airstrikes have left more than 200 palestinians dead. israel says at least 1200 rockets have been fired by hamas in the last week and a half. swiftactions parking interaction with a high number of civilian deaths in gaza that have an heart raking. the un security council is to meet in an emergency session later.

>> there have been a number of incidents involving the death of civilians including the killing of four boys on eight beach in gaza city. i hope israel will do far more casualties.lian there can be no military solution to this conflict. all, tont, first of have an understanding by the international community that the s needinian civilian protection. since the party that is supposed to provide protection for them is the cause of their misery, it is killing them. jonathan joins us from tel aviv. we heard from him a little earlier about the nights events. has beentillery fire

intense through the night. palestinians say roughly around 10:00 p.m. there were power cuts across the territory. reporters lives near the beach and he said you could hear the bombardment from the land, air, and sea. you talk to any israeli and they are just gob smacked. they cannot believe in the middle of the afternoon, you will hear the air raid sirens. they will go into a stairwell and the bomb shelters are open in neighborhoods and 10 minutes later, the all clear signal goes out and everyone is back at the cafés at the beach. >> in the back of all of these geopolitical tensions, energy prices rising to a swell and david will have a look at how much they are up.

>> let's look at the brent futures. from 5 a.m., with two geopolitical events happening, the plane crash, and then we had the gaza strip invasion by the israeli military. comments coming from the chief strategist as we look at crude futures right now. he says we potentially have more ground to gain as the market moves to reestablish the risk premium now. apart from the escalation and the actual conflict there, the question is to what extent big picture will europe be drawn into more sanctions which ultimately will be impeding the flow of gas and oil. his recommendation, basically he predicts investors will sell the 105.20.t once they hit $

just overnight to give you a sense of this move here, that's about two dollars 50. it could happen. that's the context we're looking at right now. far as theng out as gold prices concern. in sydney, we're are off the lows of the day. looking deeper into the resources sector, there you go. rising and this time. risk aversion, gold mining names. gold, gold, gold gold prices of u.s. dollarsg 20 per ounce. same story we are tracking here and equity markets also falling. back to you. discussing the geopolitical applications of the downing of the malaysian airline. you are watching "on the move." ♪

>> coming to you live from her central studios in hong kong streaming on bloomberg.com as well as your mobile device, this is "on the move." story, shooting down of the malaysian airline in ukraine. here is what we do know. the selling 777 flying from amsterdam to kuala lumpur -- the boeing 777. shot down bywas pro-russian rebels, something that is denied by them. all 298 on board were killed. the malaysian prime minister says that there was no distress call and he cannot say what

caused the crash. via skype by a specialist and defense studies at the australian national university. for joining much us. if it is proved to be pro-russian rebels who downed the aircraft, what does -- how does that change the geopolitical game? where does that leave the russian president and russia itself? certainly change the geopolitical dynamics significantly because we have a demonstration of a very careful approach to managing russia militia. you would think that this would have required high-level management. you do not deploy this kind of surface to air missile system without checks and balances and you do not deploy them in the middle of an internationally recognized civilian airline flight route and expect that it managed by some half

trained member of a militia. it is a serious and egregious briefer responsibility by whoever is responsible. the question there is who is responsible? >> i need to get to the reports we've had of a telephone call from the rebels to moscow saying aat they thought it was military aircraft and there were some tweets made to the same effect. >> what we got here is ukraine and the russian rebels are operating. this could well be a ploy. if it is verified, if the , thecript is verified

militia that are reporting back to russia and then getting direction from russians, then this is a damning act of international terrorism, and effect. this is something the international community will react very strongly to. will germany, france, italy joined the eu and get a backbone and opposing with some sanctions what the russians have done? the question beyond that, it's hard to say yet. to be fair, we do need to wait to verify exactly what happened and we are in the context where people are trying to deceive each other and there is layer upon layer of complexity in this campaign because the stakes are

really high. gowe have about 12 hours to before the un security council is meeting. what can they do on top of the sanctions already on russia should they determined that they were behind it? >> that's the thing. a stronger act in support of the ukraine may very well be called for. there are a number of matters that could probably be implemented but it could include deployment of american military equipment particularly patriots-related equipment that they have not been given so far but it could be a bit of a game changer in the equation. pretty delicate balancing act because putin really does want to up the ante on this. he has the numbers. he has the forces. they are along the border and they can completely change the equation.

it's only in the eastern part of ukraine where the russian people dominate. the majority of ukraine is not russian ukrainian. they are quite culturally distinct and separate. i don't think that's what he high to do, but there are stakes here. emotions are high. there's the russian reputation is being extremely silly this this is verified. or do youh harder back down? here's hoping that president putin will recognize that this is something that requires a significant that down. the fact that he has put flowers on the malaysian embassy grounds , the fact they had the minute to an attemptaks at contrition, a recognition by the russians that they've really blown it here. they've taken this a step too

far and essentially by leading the militia operate without sufficient control and restraint by the russian benefactors, they have really brought upon themselves the empathy of many countries around the world. like inky so much for joining us and for your candid thoughts from the australian national university joining us there on skype from canberra. the effect this is having on the market, we go over to beijing with the details right after this. ♪

you are "on the move" with me, rishaad salamat. microsoft announcing the largest round of job cuts in its history, 18,000 people, as they integrate the nokia handset business. shares did manage to climb about 1% in a declining market on that news. helping second-quarter sales coming in ahead of analyst calculations with revenue coming in at about $13 billion, google boosting user traffic. >> they do not want to rush the

process of the regulatory approval from the fcc -- from the sec. alibaba wanted to list on august 8 seen as an auspicious date in the chinese calendar, but the ipo may now happen in september when it lists on the new york stock exchange. it's expected to be the biggest offering in american history. prices in china reaching record levels. stephen engle joins us now from beijing with the details. the big question right now, what's the bigger risk to the economy -- inflating the bubble and exacerbating the debt worry or a sudden downturn that knocks out a main pillar of the domestic economy? the latter scenario is starting to take shape as begin home prices for june.

they fell in a record number of cities tracked by the government and numbers just released in the last hour. new home prices in china of the 70and 55 out cities monitored by the government month over month. year-over-year, still 69 out of 70. they change the way to compile the statistics. tier one cities both declined by 0.6% from the previous month, the most since -- since the way the records were compiled were changed in the first month of 2011. prices fell 1.7% in the eastern that saw angzhou price decline. this is month over month gaining 1.7%.

number of is the cities that saw price gains. it's been a germanic turnaround over the course of the last two quarters. prices rose in just 8 out of 70 cities. two months ago that number was 44. in january, 62. now it is 8. cooling measures have taken hold and they may have gone too far. we'll see. >> stephen engle, china correspondent, with the latest housing prices. no survivors. they think progress and rebels are responsible for shooting down the malaysian airliner. we will have the latest from kuala lumpur right after this. ♪

tragedy.ible an airliner shutdown in the ukraine. who is to blame? pro-russian separatists? it is the second malaysian airlines disaster this year. let's get more. we are at the airport. what are you hearing? of the scenessome there are harrowing. .> it is

family members have been coming and going. they have been rushed into the holding room. no members of the media are allowed in. i understand that they have been put up at a hotel not near the international airport. somewhere in the capital. , in thee, this morning press conference by the prime , he said it was a been a day in what had an tragic year. we expect another conference in the transport minister. i have met and spoken to a few members. one was waiting for his brother and sister-in-law. his nephew just graduated in england. he was stunned. not even crying.

completely shocked. i spoke to a psychologist from she had who said that rushed to the airport to give counseling to members of the crew. they keep on flying today and tomorrow. that is despite the tragedy that has befallen their colleagues. it is very traumatic. >> yeah. absolutely. what is the airlines saying at the moment? >> you know, they are really trying to take care and explain to the family members. they were supposedly departing from kuala lumpur to kiev. deployedairlines personnel to kiev.

they will go to the site of the crash. they are not saying much. they are very guarded. they have the experience of mh 370 two draw on. -- to draw on. to hold aaordinary press conference at 4:00 in the morning and the government is showing that it wants to be open. the prime minister said that no stone will be left unturned and the perpetrators will be punished. i have spoken to several world spoken to he has several world leaders, including barack obama, who have said the same thing. >> thank you very much. the disaster is the major subject so far this morning.

the circumstances are unclear. mistaken may have been for a military jet. wonder if, maybe, whoever was doing that thought it was a tactical aircraft. airlinery mistook the for a ukrainian tactical aircraft and took it down without realizing what they were aiming at. >> the second tragedy to hit malaysia airlines. in march. what are you hearing? >> take a look at shares right now. down 13%. investors are spooked by the incident and rightly so. the carrier had financial problems and the stocks have

plunged over the last six months. it was indicated earlier. the flight is missing without a trace. this is the last thing they wanted. there have been in deep losses over the last years. insight. expect the losses to continue through 2013. -- 2014. talk about having a reputation at stake, they have been struggling with the turnaround and have taken several steps back with this. it is difficult to return to profitability with this incident. customers,es with however you look at it, they are under tremendous pressure. analysts are not convinced they can save themselves. of 13 out ofations 15 analysts say to sell the

shares because the future of the carrier is not looking good at all. >> what do we know about compensation? it is a bit premature to be asking that. >> it is. depends on the circumstances of the crash. that will dictate if they are required to foot the bill. it could amount to billions of dollars and this is coming hot 370.the heels of mh the speculation is that they may be forced into bankruptcy. two back-to-back incidents are among the worst disasters. do not forget that they only have enough funds for one more year. if the government

does not come to their rescue? that remains to be seen. he said is a tragic day for malaysia and is certainly a tragic day for malaysia airlines. you, our southeast asia correspondent. .t is not all about mh 17 it is about what is going on in the middle east. gaza is invaded by israeli troops. >> these are the events that happened in the span of 4.5 hours. this is how things are looking at this point at 10:30 in the morning in hong kong. what wees are less than started with. you look at the biggest stocks, market cap lost. we're talking about 57 billion u.s. dollars that have been wiped. onhave gained a little bit

the day. i want to point out a few that we are following here. you look at japan, hong kong, and austria. this is the index. the gauge of markets here. the expectation is that we will see a rocky session. you look at the measure for hong kong and that is up. that is the equity market. i guess it is a reality check, as far as market psychology is concerned. there is risk out there. back to you. >> indonesian violence after the elections. let's get more on what has been done to maintain calm. what plans are in place?

>> good morning to you. has saiding president the situation will be safe next week. will ensure any disputes on the election result. the losing candidate should accept the constitutional court decision. the policewoman came the situation will calm and he said that it is their responsibility in the government to ensure that the next transition from his government to the next government comes smooth. is makingal police sure that people possibly -- people's lies will not be disrupted. election commission

headquartered -- over possible chaos when the official announce this -- the official announcement. the presidential candidate is leading with more than 75% counted. both election commissions ensure that any dispute of the election result will be resolved as soon as possible. >> focusing on the bangladesh financial industry. we -- the best bank in bangladesh. >> thank you for having me here. >> what separated you and why do

you think you won this award? our shareholders will be happy about this. isis looking for a bank that making innovation and differences from the rest of the banking. the banking started in bangladesh in 1983. had bankingyou doing traditional things in traditional ways. systems and so on. it happened for a long time. we had experiences in foreign banks and some new ideas. >> let's talk about bangladesh. we hardly ever talk about it as a destination. given someomebody -- of the terrible stories we heard -- what are the other opportunities available?

>> can i borrow a phrase from the governor? this is much under sold. at the other things, it was considered the breadbasket. , in theeen growing and last 4-5 years, it has gone up. this has reduced by 50%. it is a model. have a large number of people and create a large to mystic market. >> -- domestic market. micro-lending. are you involved in that?

>> i have been in the past. i know a little bit about that. number of these and they have done tremendous in pushing. no doubt about it. there are other factors. year.e $14 billion a money for equities. 70-80 look, it is about every year. it is a bank. now, they have changed the strategy and created a new one. projectse optimization are where the growth will be. the interesting thing is that it

is not going to start there. bangladesh is different from regard.untries, in this >> you have been asked about interest rates and it eating too high. what are your plans? >> interest rates will go down. it is a matter of questions. all banks and commercial? it is equity in the markets. >> in dollars, it would be almost about 13,000 -- 13 billion. that is no bank that can hold onto rates. they are not going to go down below inflation figures. inflation is in single digits. that is good. they could have been less. i do not think it will go below that. that will be good. this can be expected in the near

future and a reversal. it will remain. >> thank you very much for joining us. citibank there. untold story. right. a look of behavioral economics. .e have companies interacting we will return.

>> time for a look. we need a large communication group. he is an advocate of what is called behavioral economics and a social policy advertiser. thank you for joining us. let's start off with a simple question.

what is behavioral economics and how does it relate? is what it should be. a theory of human economic behavior that is based on actual than ad reality, rather mathematically elegant theory. the important part is simple. conventional economic theory assumes that people act on the basis of perfect information is not friendly to marketing. that would not need marketing to exist. behavioral economics deals with how people make decisions and it is important. bookadvances include the knowledge and have enormous implications for policymakers and businesses. that is why i am here.

a new office. we have an organization that specializes in behavioral science. >> you talk about nudging. advertisingper than campaigns. aren't you putting the main thrust out of business? >> you are not the first person to suggest that. our job is to work to make sure that every aspect of the marketing activity works as well as it could. cases, it is important to understand that the way in which consumer choices mixed in is in line with our psychology. if you design choice or your product range badly, the best advertising in the world may be ineffective. it is important for us to get

every aspect of the decision-making journey optimized and efficient. not just cost the most money. >> we are going to run a bit of video now. pickpocketsheard of . a lot of advertising is counterproductive. tell us how this works. >> it is a way to dramatize the risk of pickpocketing. they came from a behavioral inside. signs are dangerous and ineffective. the reason that pickpockets hang instinctively,s, they pat the pocket where their valuable possession is. pickpockets use besides as a crappy jewel to reveal where the wallet or money is kept. we realized the problem inherent

.n that and took the process we did it in reverse. >> you put things in their pocket. somebodyalized that had put something into their pocket and that means that the but he could take something out. let's move onto the next thing. crime-riddenairly area of town. taking baby pictures. >> be interesting things says kind orgery of that anything large tends to reduce violence. we had huge evolved mechanisms in our psychology that causes to respond unconsciously to choose and our environment. you probably already know about the broken window theory. a color ofthere is

paint that reduces violence. , andok shop shutters unconscious to that this is an unsafe area. they tend to encourage, implicitly, the risk of violence. we reverse the process by getting local graffiti artists to paint them with pictures of children. we noticed a drop in crime in the area. what is equally interesting is that we set aside a budget to repair the shutters because we graffitieey would be d. once you did this, nobody graffitied them at all.

>> that is all we have time for. interesting. still to come, the iconic hong kong system turns 100. a look at how they keep themselves on the tracks after this short break.

>> this is the trading day across asia pacific. heading one direction at the moment. down. it is off. not really reflecting what is going on. we have that outside. situation where we witnessed on the thursday session. let's look at what is going on in japan.

it is down over 1% right now. that is where we close out the morning session. we have 25 minutes more to go before we get it re-opened in tokyo. the u.s. treasuries jumped the most. invading the gaza strip for the first time since 2009. it is over the skies of ukraine. that is what we have at the moment. our coverage so far today. the malaysian airliner in the ukraine and the death of 298 on board. israel's invasion of gaza. we are going to get over and have a look at the scene at dawn

over the city. that is what we have at the moment. more oneed, will have this and all of the top stories as angie joins me for asia edge next.

>> asia edge. >> terrible tragedy in malaysia. who is to blame? pro-russian separatists? what happened? the second disaster this year. >> the other news. on the offensive, israel invades dies.

we will have the latest on the region. said to be pushing back the offering in new york and we will ask what forced their hand. swinging the ax. microsoft cutting jobs. streamlining for the cloud. all of that and more in asia edge. in the skies and striking malaysia airlines again. shot down over the ukraine. had 298 onng and board. and russian separatist rebels have are each rated lane. -- ukrainian and russian separatist rebels have already --ded lame holes they are blame.