leading chinese developer is staying well clear of hong kong. twitter.e a look at don't forget the hashtag. t.ving a look at another spur 13 days of advance. daivid: 15 year high. a few minutes back, we thought we were heading towards -- we are back above 20,000. 606. you look at all the data points at different economies in asia and now the currencies are trading -- it gives you a very clear picture of who the winners and losers are. take a look at japan. have dollar-yen pushing towards 1.25 it is squeezing countries like korea for example.

take a look at this -- yen. ones back to 15 at point three years that. back. you look at the currency has strengthened monetary policy to some extent. data --key piece of hong kong retail sales are out later on this afternoon. the importing to cut tariffs on various things. the reason we see a lot of shoppers come to hong kong is because things are very expensive on the mainland. is what the yen is trading against the chinese currency which is why department store sales, despite japanese consumers, you are seeing those gain. department store sales are up 9%

across the brands because you have a lot of these tourists come into the country and do their shopping there. shanghai is up. i will leave it there. back to you. the indian central bank is expected to cut rates again after the latest gdp is growing show were thean estimated. governorntral bank made a policy statement at 11 a.m. mumbai time. surveyed 41 economists say they are likely to cut. data was showing some weakness in the indian economy. there were some numbers that were slightly worse in the year ending in march. that was a 7.4%.

it is slightly low but still causing some concern. indicators showing slower output and sluggish corporate earnings and that is what is leading some economists to say there will be a rate cut today. goldman sachs changed its course. they think the rates will be cut. factors like the monsoon and inflation are issues he has to bear in mind. right now, he is aiming for 6% inflation target by january of next year but there has been a lot of volatility. there is a monsoon due to start any day now. have beenorecasts below average for the second year now. it may push food inflation higher than forecasted, faster than last year. that is one factor that is slightly concerning but difficult to predict. also, the impact of oil prices rebounded. prices fell at the end of

last year which helped the economy greatly. that are is that impact as well. as well as fed policies which could be weakening further. we will wait for the address and about 3.5 hours. rishaad: we will take a look at that story later in the program. we do want your opinions with t hat hashtag. the future of malaysia airlines after a string of unprecedented disasters last year and the disappearance of their flights. a new course that will involve sacrifices for the staff and changes for the passengers as well. what is the bottom line? down means a slimmed carrier, one of focuses on profitability. more focus on domestic line,

tropical southeast asia flying and akey competition strong business clientele. that is the targeted market that malaysia airlines once the court because business travelers tend to pay last-minute fares. to capture those travelers, they will install new business-class seating. those medium range to fly across the asia-pacific. part of this involves cutting costs by 20% which means working some contract, catering contracts, catering contract -- union contracts. they seek to boost revenue. the airline industry cause ancillary revenue. it could be checked baggage fees or frequent flyer programs. that is just speculation. the new boss of malaysia airlines faces a daunting task. last year -- a difficult year for the flag carrier after the

disappearance of mh370 and the shooting down of mh-17. both traumatic events for any airline and it will take quite some time for them to recover from. the boss has a lot of confidence in his ability. he has just turned around and another airline. time will tell. rishaad: let's have a look at the other stories today. we have the roundup. >> good morning. we are talking about european leaders and the imf saying they need to ramp up talks over greece. the talks huddled at an extraordinary meeting in berlin about ways to divert a recall. that includes angela merkel, christine lagarde, mario draghi and francois hollande. the goal was to hammer out an offer that greece could

consider. the intensity may be needed as the greek government faces another debt payment to the imf this friday. it is the smallest of four totaling $1.78 billion this month. greece says they can make the payment. the timing coincides with the expiration of the euro bailout by the end of june. talks are dragging into the fifth month. deadlines have come and gone. it has resulted in little as disagreements over pension and labor laws persist. let's go to hsbc. they may be preparing to cut as many as 20,000 jobs. the ceo will announced layoffs next week. unidentified sources said the exact number is still being worked out. they avoid more than a quarter of a million people and have been trying to reduce costs and sell businesses to bolster earnings.

this while spending billions of dollars to boost internal compliance. it is also considering leaving the u.k. and returning to asia after taxes and regulations cost more than $1 billion. theysts say it is vital set a clear target for reducing expenses so they can prove return to their shareholders and have seen insufficient evidence of progress. he is expected to announce the target when he meets the shareholders on june 9. fc -- they are fighting back rumors about its food on social media in china. thatuing three companies claim chickens were genetically modified to have six wings and eight legs. not a pretty picture. and they were misled want more than $200,000 in compensation and an apology. the move comes as yum! brands tries to recover from a food scandal in shanghai.

they trailed most fast food peers, some of which are highly franchised. this is the government intensifies the campaign to clean up rumors on social media because internet marketers have been convicted of trying to manipulate by posting false information about competitors. back to you. rishaad: coming up later in the program, the details of more than one million japanese people leaked in a cyber attack. we will see how the fallout may have affected public support for the prime minister. hong kong or shanghai? we are talking to a chairman about the property investments and the tale of two cities. ♪

>> the stories making headlines around the world -- local media blame bad weather for the disaster and say the ship was hit by a tornado. more than 150 millimeters of rain have fallen in the area. believes in bangladesh have filed murder charges against 41 people over the collapse of a factory that killed more than 1100 workers. a doesn't government safety officials are among those facing the death penalty if convicted for the 2013 disaster. they have been forced to work despite cracks appearing in the wall. philippinest of the have promised those responsible for a deadly fire last month will face charges. 72 people died when flames engulfed the building. the president says local officials and far department personnel will be among those charged. he is ordered safety inspections of three her

thousand factories in manila. rishaad: taking a look at the billionaire chairman saying what he called the negative political environment in hong kong. he says it will be a different story when it comes to his next idea. poipo. >> i do not like being in hong kong. in shanghai, we will have a long queue ahead of us. >> do you think the current boom has run its course? vincent: i think it will be boom or bust. stephen: that is the difference. vincent: it is moving a bit too fast. i expect they will try to temper it. it will not bust anytime soon. stephen: how bullish are you on hong kong and the property market and the economy?

vincent: hong kong is going through a very tough time. my imagination that hong kong could become so politicized in a short amount of time. hong kong is still hong kong. it is still very efficient. property prices are up. it is a matter of supply and demand. people want to stay in hong kong. they have to pay hefty prices because it is a place to have a roof over their heads. there will need to be some changes. i think even for our town planning, there is some problems. 40% of our land is green open-space. stephen: like the british. vincent: hong kong is so short of land. stephen: you think they will reduce that percentage?

vincent: they need to build public housing for the people. the don't people are so upset in hong kong because they never have the hope of living in a decent flat. they are paying thousands of hong kong dollars to get a bed space. stephen: you are primarily a developer.ed how is the uncertainty in hong kong affect how you allocate projects and money for hong kong versus china? vincent: my new investment is on the mainland. i'm not even looking at the hong kong market. i know a bit too much about politics. it has to run its course and hong kong might have to really have a big bang with their face before people wake up. stephen: does it shock you that assets were given out of hong

kong? vincent: it was a very smart move just merging with the company. rishaad: we were talking about hong kong and property listings. let's take a look at the hong kong stocks. david: it is very important to make the distinction what our hong kong property stocks and hong kong listed property stocks because it is not necessarily the case that the business is here. that means it depends which sector you are looking at. we look at the hang seng composite -- down by a fifth of 1%. you have the real estate play. a quick check of how these are doing. at 28 and 26. this is why perhaps we are seeing a bit of a pop-up. exposed,these guys are

or the main business is across the border on the chinese mainland. let's take a look at the big names that analysts have brought up. is ridiculously expensive to put a roof over your head. it is more of a social problem. that said, hang seng composite -- up 24%. i'm just picking out of a hat. we are basically performing as well as the index. depending on how you want to pronounce this -- on an evaluation basis, it is trading at about 10 times earnings. the hong kong property index is 17 times. it is still fairly cheap. why? analysts are pointing out because of our currency regime in hong kong which basically ties the hong kong dollar to the

u.s. dollar. it is tightening up. you have mortgage, rising industry. it is a whole other debate. when rates increase across the pacific, we have to import that monetary policy from the feds and it does not bode well for the property sector. point, that is what it has done. i will leave it there. rishaad: just taking a look at the dollar because what we have is continued strength against the yen in particular. it's been an absolute tear against the japanese currency. it is weakening past 125 against the grain. the first time that has happened since 2012. we will take a look at that later on. coming up on trending business, finding out one why buyer was going to pay almost a quarter of

a million dollars for this. it is a second handbag as well. details after this. ♪

rishaad: this is trending business. the personal records of more than one million people have been leaked in japan after a cyber attack on the country's

pension service. brian joins us live from tokyo. how concerned are the japanese public about this? brian: good morning. this is a big story in japan. if you look at the newspapers this morning, the front page look like this -- everything above the fold about this story. concerned andusly have been quick to respond. he was on tv last night apologizing and in many quick action from the health and welfare ministry. the secretary came out this morning with a fairly standard japanese apology where he expressed regret and promise to do his utmost to limit the damage. mistaken,f i am not there was a similar attack in 2007. of their being the same thing this time?

brian: the scale -- that was a little bigger in 2007. that was 50 million pension records that went missing. in this case, it is over one million pieces of data. it is still a little early to tell. we will see surveys within a couple of days that will show what the public reaction is. for now, looks like the abe camp is circling the wagons. he was asked about the fate of the minister for the health and welfare ministry. he said he didn't think he would have to step down. that could change depending on the fallout. rishaad: brian, this is a country famous for its aging population. i'm sure it has greater residents because of that. brian: that is exactly right. if you think about it, japanese pensioners have not earned any money on their savings for more than a decade, 15 years.

they don't depend on their pensions as the only lifeline they have. they are living longer and we have seen a rising trend in tcrimes against elderly people, targeting them because they don't seem very savvy about fraud. i expect a lot of people will be concerned and angry about this. rishaad: thank you very much, brian. let's move to having a look at what is happening on social media and what is trending. >> hi. we are still talking about this bag that smashed records on the auction block in hong kong. $223,000 for this beautiful bag. >> 18ts 18 karat gold -- carat gold, it has diamonds and crocodile. people are talking about the ridiculous amount of money these bags cost. at this point, they said it beat

the bag that once belonged to elizabeth taylor. spent fived i minutes of my life trying to understand why anyone would pay this much for a handbag. there are people in admiration --h these bags, if somebody i will send it away to the hermes store. we talk about the amount of money here. it is like a mortgage payment pretty much. we are talking about windows 10 though. >> it will release of the end of july. this is going to be good for people using windows 7 and 8.1 already. tablets and pcs will get an upgrade later in the year. i'm not sure about the pricing. the design will blend with windows 8 and the appearance of

windows 7 which people are more used to using. towill have a new browser succeed the explorer browser and voice control assistance on the desktop. someone says -- windows 10 for free? it is true, but only for upgrades. >> we will see what happens with windows 10. rishaad: malaysia airlines looking for a fresh start for what it calls a hard reset. we take a look at the turnaround plan when "trending business" returns. ♪

rishaad: our top stories -- rescue teams searching for survivors after a cruise ship capsized and sank in the yangtze river. its owner reports the number of people rescue range from 12 to 30. weatherdia blaming the and saying the ship was hit by a tornado. more than one million pension records in japan have been leaked by hackers. the leak was discovered last

week and the number of cases may yet rise. this is the second time it has gone missing in japan. more than 50 million records were lost in 2007. malaysia airlines has begun a restructuring after admitting it is technically bankrupt and trying to ris recover from last year's twin disasters. about 6000 workers and cutting by 20%. it is not expected to break even until at least 2018. let's take a look at the markets. we just had the lunchtime break in tokyo. there has been a slide in the last 13 days. david: a bit of a weak last few minutes. we will get to that in a minute. we are watching the whole ects it isen eff having across different industries with exporters and importers. tourist sectors. at one point, you go back five

or 10 years, these are department store operators in japan. you would not think of these are tourist exposed. because of the week currency, we are seeing big improvements as far as stores are concerned. nine, 10, 11%. that is basically the average improvement for may. because themean japanese consumer is not doing too well, retailers there are on the losing end. look at how the japanese is performing against the chinese. if you don't believe me. check out how crowded the last long holiday was. japan is just about flat for the morning session. the retail names -- they go flat.

there we go. .et's see we get some of these eon.retailer and let's move things along. above 1.25, we are back below that. it is like watching a for a movie.- horror 15 year low against the u.s. dollar. are youa bear on the yen or a bull on the u.s. dollar? that is a different debate. 8.93. bank of korea, june 11. we still don't have a complete survey of these forecasts.

they are certainly being squeezed by some dropping exchanges. down.ar chart straight there we go. 21%. back to you. rishaad: the other top story -- the malaysia airlines is charting a new course. andrea joins us now, representing several carriers, including malaysia airlines. they have a lot to do. >> absolutely. the competitive pressures are felt by everybody. malaysia airlines carried more than one billion passengers for almost no profits. it is basically broken even. a lot of carriers are facing a lot of structure and have to restructure. --haad: 30% of the staff some people i have been talking to is there has to be more. this is a very capital

intensive business. if you are going to cut, you have to cut fairly ruthlessly. it is a fresh start. all the staff are laid off. two will get new offers on new terms. he has to adjust the fleet number. he has to invest for the future. it is a very complex challenge. it can work. if we look back at the u.s. industry, they have been through a chapter 11 bankruptcy. we saw japan airlines go through a very similar tough restructuring. carriersa lot of u.s. had the protection of chapter 11 bankruptcy. they emerge stronger, too. are they are role model? like japan airlines. andrew: each market and framework is different. the idea is you have a radical restructuring and you emerge fitter. that has been demonstrated

but it is a big management challenge. it is one that christoph mueller is well -- rishaad: ok, but how much of its legacy as a former flag carrier or the flag carrier of malaysia? there will still be safety challenges? andrew: being a flag carrier has its pluses and minuses. they are prepared to put additional finance into malaysia airlines but only if it is positioned for optimal growth. the business plan will have to be signed off. on a have said the additional fine -- they had said the additional financial support is only if they are in a better shape. rishaad: do they have a goal as to what this airline will look like three or four years down the track? andrew: it will be slightly smaller.

not as dramatic as some people think. it will be more focused on routes where could make money. it will have a competitive cost structure. they will have to continue to invest in the product. rishaad: a relatively young fleet. andrew: it is a mixture. they have the 777's, the older types wish they have to refurbish. they have to refresh the shorter fleets. they have to keep renewing the fleet, but the main thing is to take a hard look at the routes and decide which are the more profitable once. rishaad: i want to get to this story as well. we have been covering this one. claims emerging that some flying schools in india -- 35 minute flying experiences. in new delhi, how widespread is this problem?

>> if looks widespread, it is not near that. it is been happening since the 1960's. fours been at least decades. they have flying hours so it becomes easier for commercial flights. it is been happening for quite some time. dozens of pilots in india have a certificate with flying hours. rishaad: it is pretty obvious why these flying schools are doing this because they want people to come to them, right? anurag: that is one part of it. the second part of that -- you can have assumptions if they are showing that in their books. they are not spending the money. that is one part of it. have the aircraft to

actually do the training. india has connected all the flying schools in 2011. they actually found out people who log hours on an aircraft have not at all. these other kinds of things that have happened. it is still ongoing. we talked to a regulator about this and she told us they will conduct a new warning for all the flying schools in india. rishaad: what is the government, the airlines doing about it and how are they reacting to this story? india: the government of -- it was downgraded last year and india hired more safety inspectors to make sure flights are safe. they are doing, apart from that, they will start a new audit

looking at all the flying schools. , they have to go for expensive corrective training for these pilots. whopoke to people, pilots don't have the right amount hours. it is a big headache for the airlines. they have to do collective training. rishaad: thank you so much for that. andrew has stayed with us. give us your thoughts -- 35 minutes. logging tens of hours on planes. on top of that, some people are not actually getting any hours. using planes without any engines and getting credit for logging hours as well. it seems like it is pretty widespread. how concerned should people be? andrew: it is pretty shocking allegations. it highlights the fact our

industry is extremely complex. the government has the response safety.to ensure everybody has to play by the rules. rishaad: it is not exhort of thing you can hide, is it? airlines,cruitment by the pilots go through a lot of tests, including flying training tests. airlines will filter them out. they should not have to. pilot records are important documents. they should be having proper oversight and it is a very serious offense if it is fabricated. rishaad: the profession of being a pilot -- in india, an aviation scene that is burgeoning for huge demand for pilots and that is another reason we are getting this. andrew: indeed. the world will need about half a million pilots over the next 20 years. those will beof

required in the asia-pacific. we do see a lot of growth ahead in terms of islet training -- pilot training. these kinds of reports are and point to the fact it has to be properly regulated throughout the industry. rishaad: thank you so much for coming and joining us today. andrew, from aapa. coming up, art over the ages. the special report on the radiohead frontman's 18 day long song and the exhibition around it. ♪

now, testifying to congress over the faulty airbag

crisis that is triggered the biggest auto recall in history. they are turning to the competition for help. let's find out more with craig. this will be takata's first u.s. hearing since december. the first impression of the committee members -- craig: i think it is a pretty safe assumption. the hearings in december in november were pretty ugly with the members of congress really pushing hard to get this recall done and since then what we have seen, as you mentioned, it is only become a bigger crisis with the number of cars recalled now reaching 34 million. it is not only the biggest auto time, and may the biggest consumer recall of all time. even bigger than the tylenol crisis many years ago. is havingint, takata

to go to its competitors for help. one of the things that the takata executive will mention tomorrow is about half of the replacement parts going into the cars are actually made by takata competitors. year,e point later this around september, the executive says 70% of replacement airbags will actually come from companies other than takata. advancedntions in its testimony that those airbags will not use ammonium nitrate. it will continue to use that chemical propellant that a lot of members of congress have questioned whether or not that is safe. that is definitely another focus tomorrow -- during today's hearing. rishaad: thanks, craig.

>> the stories making headlines around the world -- sepp blatter has been accused of putting the organization into destitute. "no one has but more disgrace ."e feifa the corruption scandal is widening. of central and north american soccer have been banned as well as information from fifa's own committee and the u.s. attorney general. fly around the world powered by only the sun has hit trouble. they made an unscheduled stop in japan after some bad weather. they noticed the worsening conditions but hoped the plane could fly on but it proved too dangerous. they will resume when the weather improves. the locks of love have been

broken in paris. city officials have started removing an estimated 60 tons of padlocks left by lovers on the famous bridge. the tradition of locking a lock on the bridge began about 10 years ago. last year, a partial part of the bridge collapsed due to the weight. rishaad: if you thought radiohead's epics were not long enough, thom yorke has written a song that goes on for 18 days. it is a soundtrack for in next an exhibition in sydney. we went to go see and hear. >> i'm running a little late to this exhibition, eight days late, but hopefully it will not matter too much. bandatures the art of the radiohead. thom yorke has returned the

favor by providing the music -- a mix of three ambient tracks that run for 18 days. during its 430 hour run time, listeners will not hear the same two minutes of the same sound twice. the perfect foil for the menacing art and the cavernous space. >> when thom contributed this, he did not want to overpower the artwork that was created. he wanted to be complementary to stanley's work. this is the thom yorke erasor. er. it is amazing. you can see all these other pieces that tell the narrative of the story of all these scenes. y te shrine to the point you

bear -- a story of disgruntled teddy bears that eat their parents. an ever-changing, long piece of music. soundscape itself is closely guarded. it is encased behind this wall. when the exhibition is over, that as it. >> at the conclusion of the exhibition, the sound system is deemed to be destroyed which is quite beautiful. we will destroy the tracks so they don't get released. >> fans of extremely long pieces of music -- you can still get your fix in this german church where it is currently playing for the next 625 years. some moreo get errands before the ultimate destruction. there is discussion underway to bring it to the u.s. rishaad: up next, more easing

ahead. we will find out why the central bank is cutting interest rates once again in mumbai. ♪

rishaad: we look at what is trending today. yvonne: hi, we are talking about the crocodile bag that smashed all the records last night during an option in hong kong. roll the video. you want to see what this looks like. for model here -- it went $223,000. 18 karat gold, diamond hardware. it beat the previous auction record and even beat the bag that once belonged to elizabeth taylor that was sold at $218,000 in 2011. it has been a lot of reaction on

social media. diversity please do not -- people saying please do not tell me and alligator had to die for this. who would pay that ridiculous amount of money? switching gears, talking about windows 10 because microsoft announced they will be launching the program here in july. we have talked about whether this will be a big move. it will be a fusion between windows 7 which was pretty popular among users and a little bit of windows eight that did not fare too well. the global release coming at the end of july. unless you are19 eligible for a free upgrade from the company. again, we will see how things turn out in the next couple of months. back to you. rishaad: the trading day over in india -- one of the stories driving is the rate.

it is expected to cut interest rates again. the latest growth reports show the economy has been slower than forecasted. we are joined now from mumbai. good morning. expectation is the central bank will probably cut interest rates at the rate at which the central bank lends money to commercial banks to seven points to 5%. -- 7.25%. one predicts a 50 basis point cut. we will of course know which way the governor has decided to go in a few hours. but it is definitely not going to be an easy decision for him to make. the central banks of developed economies should take responsibility and given all the commentary, especially on the fed decision, is not going

to be easy for him. he also needs to balance the latest data from the domestic economy in india which is not pointing one way or the other. manufacturing activity has bounced back to a four-month high making for a strong start to the economy in the fiscal year. but the sector index which measures the output of its industry strength rose four poin 4%. the biggest concern at this point is over the monsoon. the first wave of the june to september season being delayed further. the official weather prediction is it could be a few more days before the delayed monsoon. it is coming on the back of on seasonable rain. we have seen the worst heat waves ever. all of that not likely to have any concern for the decision later. back to you. rishaad: thank you.

that is it for this edition of "trending business." it is asia edge next. we recap the biggest news so far, especially in india and australia. ♪

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mark: i am mark halperin. john: i am john heilemann. the rand paul government surveillance victory lap -- [whispers] rand, they are still listening. ♪ [chuckling] john: happy national heimlich maneuver day, sports fans. on the show tonight, a message from bernie sanders, a love note for scott walker, and rand paul's hate mail. but first, a lindsaygram. that cracked me up. he announced he is running for president. he is the ninth republican to officially enter the field. it will get even more crowded