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.

whether theis not plane was shot down. it is by whom. is right. that is the question that many ask this morning. .et's ring in john dawson who is to blame? >> that is the question. officials blame separatists and you have a phone call that was intercepted by an official and rebels deny it. we do not have the defense systems. they claim to have the system and it is a surface to air missile. was what they claimed on june 29. russia denies all responsibility and here is the interesting comments again.

it is the ukraine ambassador to the united nations. thate first reaction was -- they shot down a military airplane. they got to the ground and made a second call to inform that this is. -- the second biggest after facebook. in the world. very big and the ukraine and europe. there has been a rebel commander who took credit for shooting down the plane. he removed the post. that is on the contactor. post a very interesting and that is a development.

>> who is he? he is the commander. >> a rebel commander. >> a pro-russian faction. >> that is right. he posted and took credit for that. >> very interesting. social media space. >> very interesting. we know flights have been diverted. how many? what is the impact. >> i have a graphic. they are diverting all european avoiding eastern ukraine. all u.s. carriers are prohibited from carrying over the eastern ukraine. the chinese are following that and banning their aircraft. on april 3 before the ukraine crisis kicked off, the faa

barred all airlines. british airways is reviewing the diverting china is all flights over the whole of the ukraine. list and you have a few avoiding eastern ukraine. avoiding the whole of the country. >> this is not restricted airspace. >> it was not. it is clear. association says it was not a restriction. there were 400 flights a day traveling through this and it is a huge disruption around the world. the is more important is lives lost. >> 298 and three children.

they are unable to verify the cause of the crash. holding a news conference. this is what he said. >> it is a tragic day in what has artie been a tragic year for malaysia. what happened? our thoughts and prayers are with the family and those on board the flight. i cannot imagine what they must be going through. >> indeed. let's get over there. the prime minister saying there? in addition to echoing the thoughts that are shared by malaysians regarding the tragedy

, the minister has commented on how he and his officials are in constant contact with the authorities in the ukraine and he has been in touch with president obama to ascertain all information that is pertinent to the situation. it is very much a fact-finding scenario. he has yet to verify the cost of the tragedy. other comments are that he spoke to the ukrainian premier on how they will create a humanitarian corridor. the government will be sending a rescue flight that involves in thisrs and provides situation. >> tell me something. this is a disaster.

a terrible year what are people saying about the future of the carrier? it is a year of struggle. a national symbol, of course. there is a lot of focus on what will happen as they are restructuring. a shareholder said that they intended to point out a revival fresher this will cause on how they plan to provide together this revival. again, malaysia airlines is very much focused on how management and leadership will address the situation. and this is very much a case

where the government is as transparente as possible with the operations. >> thank you very much. >> download bloomberg on your tablet. avalon windows will get you the latest breaking news, views, and videos on that light and more. >> the other major story is israeli troops have invaded gaza. netanyahu ordered the army and tunnelsscovering secret under the border. it is the first significant and iton since 2009 comes after 10 days of airstrikes that have left 200 palestinians dead. beenast 1200 rockets have

fired by hamas into israel. on a show you live pictures right now. israel moved in. the -- tosays that hamas and other terrorist organizations. a high number of civilian deaths in gaza is heartbreaking. >> the past 24 hours have had a number of incidences involving civilians. i urge israel to do more to stop civilian casualties.

there cannot be a military solution to this conflict. >> this is the main focus of attention. all of that is for certain. they look. >> a little bit better. keep in mind that the markets have climbed into this morning. it could arrange the gains from the last days. checked, it down a or 9%. the volatility index is up. i want to point out the other asset classes. you really see when these things happen overnight. going into gaza

before midnight. that is from 11:00 p.m.. the sharp moves are falling. you look at gold and a safe haven trade. there you go. the same story. the -- is being given back right now. the prices are going down. take a look at japanese government bonds. it is 52 basis points and the lowest yield in a year. a lot of risk aversion.

we will watch closely. we will see the next steps. >> tragedy strikes again with malaysia airlines. the plane is shot out of the sky. we will see what it means for the future. a look at the global tensions flying out on the market. we will hear. that is next. stay.

>> analysis from our next guest. right. ok. let's start out. you have gaza and simmering tensions.

a full on civil war. a simmering crisis in the south china sea. >> a war will cause the markets to have a comeback. >> the thing is that your methodology does not account for china kill asians. you take a different view. here and youount have the ukraine on one french with israel on the other. believe that everything that is known about anything is in the price. triggered.will good

so far, there have not been hit. world aree developed at record highs. so far, the market does not see a problem. >> it has been a friend. some point.t >> at some point. i do not think in the next couple of days. the bull market will end after the inversion of the credit cycle. thatill go back and note the prolonged markets and equities have coincided with the yield curve and occurred several months after that. >> you are not invested in treasuries right now. you would be mad. focusingvestors start back on improving the economy

and treasuries will fall. the right time to buy we'll be in the next recession. do that think we will for a other 2-3 years. >> a lot of noise on the geo-political front. what are you concerned about. >> you look at the policy and i everything else comes to investing. interest rates are low and the credit cycle ignites. people spend money and invest in assets. asset rates are pulled up by the central banks. and everything goes down. that is what you have to walk. >> you were talking about the credit cycle and we have been there before. >> we go there every few years. nothing changes.

>> it is déjà vu. and financial crisis happens every seven years. >> it is taking. thank you. we will discuss a lot more things on the geo-political and global front. china housing market. we will head to beijing.

>> weakness in home prices has reached record levels will's tough we are joined with the details and implications of this and that is a concern. >> yeah. absolutely. the implications are wide and you have the question about the bigger risks of the chinese economy. rising property prices. now, the latest data with a downturn in prices. that knocks it down the domestic economy. new house prices fell in a record number of cities tracked by the government. 55 ofices are falling in

the 70 cities monitored by the government. it is a sequential fall. that is the most since 20 oh 11. declineds in the city from the previous month and it is the most since 2011. prices fell in the eastern city. they saw price to clients and the prices rose in eight cities. and theber was 44 cooling measures have taken hold. they may have gone too far. and it ise discounts going to relax credit conditions for mortgages and new homebuyers. back to you. >> thanks.

>> the largest round of job cuts in history. the losses are about 14% of the workforce. that is have the employees added in the acquisition. there is a rising demand for top google is trying to boost features. better sales. what was it down to? china and brazil. it is down. big blue says the declines in products include mainstream services bowls of less severe than before. we have reports that they are going to delay the stock to view. it may be in september. we have details that it will be

in august because of a lucky number in china. >> it will not be happening. they will delay the initial share offering and they have to review. they were as to make amendments. because there have been on and acquisitions are he according to washington insiders. they have been targeting an went off onand they summer holiday. >> it is going to be in september. doesn't need a roadshow? >> it is hugely popular. it looks like september will be the day. happens, it may be and it could go forward.

i should note that there is an interesting report that says that this could price below analyst valuation. and whatme market cap was the thinking about that? it was an analysis of an estimate. the new valuation could said the averaged this is the estimate. we will see. >> still massive. thank you. down to theunting outer named a few minutes away and it is pointing to what it looks like. that would follow the broader market. the stock falls from the high in sydney. and theeeing losses

selloff continues. markets thatat the are down. rain is a selloff. we have big stories. troops on the ground in gaza and the downing of a flight. we are looking forward to the business in tokyo and we will get the latest on japan reopening after the break.

>> it is a terrible tragedy. malaysia airlines to tear maybe under threat stop invasion underway. israel sends tanks and troops into gaza. this is all unsettling the markets. more on the top story. the tragic shooting down. we are joined on the line. the current tell us

response is and what is the latest from the officials? >> yes. fullnow that there is a was aconference and it sign that the government wants to show that they are acting swept and dealing with the tragedy. there was supposed to be a conference and that has been postponed until 4:00 p.m. this afternoon. tragedy could not come at a worse time. ands the month of ramadan the passengers are coming home. awful for really

relatives. whooke to one this morning was stunned and he had his brother and sister-in-law who had gone to england and they were on the aircraft. it is awful to contemplate. malaysia airlines as issued a statement. -- they will be avoiding the usual flight routes. earlier route was declared safe by the international aviation association. it was not subject to restrictions. the sense the aircraft this on a rescue and medical

mission. they will be following that up with another aircraft. in what hasic day been a tragic year for malaysia. >> the hearts of the world go out to malaysia and another tragedy in the air. thank you for joining us on the line. a subject forr is our guest. the circumstances are not clear. the plane be -- may be mistaken for a military aircraft. >> you wonder if whoever was -- maybe they mistook for another ukrainian tactical aircraft and took it down without realizing

what they were aiming at. once this is the second tragedy to hit this year. and i explained appearance act in march. let's take a look at what this means for the carrier's future. this is the second time this year. >> it looks pretty murky. a lot of financial issues. the billion in losses. stocks are slumping over the past six months. this morning, lower. they have yet to be found. the incident will only sync it deeper. it is about survival. they are turning around. it will be difficult. a task to return to

profitability. from agents in australia whoever reported cancellations on the flights following this incident. the carrier is under stress and analyst to not like it. not looking good for malaysia airlines. >> 10 malaysia airlines survived this incident? >> it will be difficult. we know they will only last one year.

they said that it will help in the rescue. other commercial carriers have been down. 1988, we knew to that a bomb had caused the tragedy. it took 11 years. they did not survive today. it is no longer in operations and a different story for another care your -- carrier. a flight was gunned down by a soviet warplanes. part of the incident is still mysterious and they have survived the incident. >> thank you. this is playing across regional markets today.

what is happening? is trading higher and everything else is falling at this point. if things stay the way that they are, there is a silver lining. aey will be able to have small weekly gain. maintain a weekly gain. past 30 minutes or so have had gold prices come down a highs bit compared to the and we are now at 113. despite a little bit of weakness , we see a lot of gains across the gold. there should be indexes over

here. we had some the biggest gainers here. i want to point something out. they will go to the index. we have in asia. there are two indices that i want to point out. the biggest jump. i want to point something out. bloomberg conducted a global poll. hotspotsthem which pose the greatest threat to the market.

overwhelmingly, it is the middle east on the minds of investors. it has been happening quietly and now, this happens. to watch this.e it is the invasion of gaza and the middle east. thank you very much for joining us. to start us off by saying here we go again. >> yes. ands a tragedy that unfolds there does not seem to be any and it's tied. is a situation going from worse to worse. reports, hamas will not agree to a cease-fire. not the one proposed by cairo or the u.n.

who knows what is next? it is clear that hamas is determined to continue and -- the assaults and rocket barrage as. .> it is gone there there does not seem to be activity at the moment. protagonists sit down the table and come up with something. the peace process is dead. >> i am not sure. it is interesting to note that the establishment and the international community is protecting their right to self-defense. obama has been critical of policy and as stated that israel should defend itself against rocket attacks and he has stressed that no country should

expect to endure this aggression. he listened egypt, he blames hamas. he says a mosque and save lives that were lost if they agree to the truce. more remarkable is the palestinian authority president saying that hamas has been trading in palestinian blood. if world is watching to see hamas will do the right thing. you know, the casualties are lamentable. reportednew york times that the defense forces are issuing warnings. report by the u.n. right counsel and the river said representative.

u.n. condemned hamas. so, the next step is for them to decide if they're going to do the right thing and benefit their constituents or continue with trying to wreck the peace process. is, what can israel achieved by invading. -- invading? >> there are several aims. and there arets reports that israel identified terrorists attempted to penetrate into israel from the gaza strip to perpetrate some

kind of work crime. rocket launchers and infrastructure used by hamas. they launch into israel. israel agreed to the cease-fire and continued firing on israel and violated a humanitarian truce. a government needs to protect the citizens and the rocket attacks from hamas have expanded . i do not think anybody would blame netanyahu for ordering this incursion and stopping the violence against israeli civilian population. israel is attempting to protect the population and stop the rockets from reaching major cities.

time.are out of thank you for that. thank you for joining us. >> israel orders ground troops into action and 18,000 are on reserve for the gone strike -- groundstroked. impact andthe market the news. the top story is what is happening in israel and the ukraine as we take a look at tensions around the world. wealth management.

the situation playing out right now.

to getare going to have worse before there is a difference in equities. tell us about what we are seeing right now. >> we are seeing a consolidation. >> we live in an environment -- andterest rates are asset prices are a function of that. asset prices are going to be lofty. >> you take a look at the trend and we look at the polls. most look at the middle east as the site of the global fallout. is that where you think the trigger is going to be? ande look at the analysts lsu said before, it's everything you need to know. it is in the middle east and

investors are not seeing this as a problem at the moment. >> that is the real problem. yeah. >> i agree that the oil price did do that massive concern. many economists have said that it will not have that high. >> nobody was concerned. it is not the cartel. >> concerned right now. russia and the u.s.. the cold war. >> the prices suggest that. >> do you think that is in the price? >> of course. it is in the price. >> yeah. unknowns in the price. we do not know what is going to happen. >> we are going to shop prices.

not everybody knows about everything. happenng drastic could tomorrow and the prices go down. it is what is known. todo you think this leads dynamic situations here? we have an offensive and a diplomatic problem created by the airliner. >> you are going to have some safety andflight to stocks have come off. of course. you will have that. i'll think so. monetary policy will eventually prevail. what you think will happen with the sanctions? >> quite possibly. it is not going to be good for the stock market.

are underissue pressure as of late and that is going to be bad news. i do not think it is going to be bad for the rest of the world. -- the eu puts sanctions forward. merkel has made it clear that she wants an investigation and is on the verge of sanctions. >> that is problematic for russia. will have ank that huge impact on american companies. >> mobile. >> possibly. in russia.est the chart looks terrible. would not invest in russia. the chart looks terrible. look at price and fundamentals. if a company --

>> when is a technical analyst a technical analyst? price and, to give you an example, a great company with fundamentals and falling, we would not buy. the fundamentals had to be supported by a price action. >> i am not a technical analyst. hillary clinton was on charlie rose and talked about europeans needing to take the lead on the sanctions. do you think we will see pressure from the european community towards russia? >> sure. i do not know. nothing is for sure. might be having a small glass of wine. that is for sure. >> i am not for sure. thehat is for sure is that

un security council will meet. thank you so much. board.l to come, all -- aboard. >> a look comes after this break.

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>> recapping the main story, tragedy strikes and a plane shot down. it was flying from amsterdam to: or -- kuala lumpur. ukrainian separatist rebels have traded blame. the security council will meet later today. lowest level in nine weeks. the disaster comes after the onyx lane disappearance of the plane. unexplained disappearance of the plane. isthe other major event making itself felt across the markets in the world. it happened 13 hours ago. launched a army ground offensive on gaza. this is coming through. in and following

the collapse of a temporary cease-fire falls it comes after airstrikes and civilian strikes.

>> you are back with the extended issue of asia edge. a terrible tragedy as a malaysian airline is shut down in the ukraine. who is to blame? they believe it is pro-russian separatists.