prices falling for a third month. prices rose after an easing of mortgage policies. shares have fallen the most in four years. a major expansion in the domestic markets. qantas chief executive will unveil the deal later today. you can tell us what you think by following us on twitter. here's david with a quick check of markets. reaction tomixed the latest fed announcement overnight. fairly dovish. broad dollar weakness. there are a lot of data points that have come out. prices just came out.

zealand gdp numbers are out, very disappointing. top three and bottom three. .2% growth quarter on quarter. the month flattening out there. growth, year on year. missed the most pessimistic forecast from economist. the kiwi dollar getting whacked. amz, they basically have to cut is what they are saying, 3% on the cash rate in july. perhaps a 25 basis cut point towards year in. -- it seemsks to be

to be down at this point. you look at the cross spread on the two-year kiwi two-year, 16 month lows. kiwi dollar. let's go back to the fed. bond yields continuing to fall across the region with the exception of south korea. take a look at japan with 45 basis points down for the fifth or sixth session. from 1040.8 that's where we are for the quarter with the yields. i'll leave it there. back to you. signaledthe fed has on track to raise interest rates. that thelen stressed

first rate increase is less important than the subsequent ones. gradual is the keyword. don't get too excited about the first rate hike according to janet yellen. up u.s. currently has picked after a first quarter slump, but still not a whole lot of confidence out there. indicated tot quarter-point rises this year. members project one rate hike, or none at all this year. that is up from three. the fed also cut its forecast for the benchmark rate. that is down from the previous projection. yellen says she wants to see more decisive evidence of a lasting turnaround in the u.s. economy. cite signs of cyclical

weakness in the labor market. the job growth has rebounded, but wage growth remains subdued. she was also talking about labor market indicators that second it was still remaining flat. part-time workers would still prefer a full-time job. medium-termer the once the impact of energy prices and imported goods dissipates. don't focus on that timing of the first rate hike, according to yellen. instead, look at the trajectory for the ones that are coming after. rishaad: we will take a more detailed look later on in the show. we want your opinion. send us your tweet. propertyepid market recovery. stephen engle is standing by with details. have prices hit the bottom? it is improving.

we can throw away your over your because we know that is coming from a different race effect. that has been the trend consistently for some time. we have to look at month over month to see the u-turn that were starting to get with new price falls in fewer cities. 41 cities out of the 70 cities tracked in may saw new home prices fall. fromis better than the 47 the previous month, and 49 a month before that in march. i have all the data right here. it's like reading from a baseball line score. a big increase of 6.6% and new home prices, month over month, the six month and a row that they have seen new home prices increase. they are on the leading edge of this recovery. shanghai up month over month for the second month in a row.

beijing, a third month in the row of gains. the other interesting point is on the downside. the cities that are still seeing falls, they are narrowing. cityop worst-performing 0.6%.an the gains are whitening. back to you. rishaad: let's take a look at some other stories. we have the roundup. >> greece making headlines. the prime minister saying that he is ready to assume responsibility for rejecting an unfair deal with creditors. greece and its creditors, the imf, ecb, they are stalling. year old area finance ministers are planning to meet in luxembourg today. the gathering has been billed as last chance to seal an

agreement, but tsipras says -- as says he's ready to say no. officials are downplaying expectations. discussions with greece at the meeting will be very short. creditors have little to review. contentious issues remain, tax rates, and pensions. with only a slim chance of a deal during this meeting, attention is shifting to the summit of eu leaders scheduled for next thursday, just days before greece's bailout program expires. at the next look chinese company heading home. shares surged in that west. group proposed to to buy the

outstanding stock. premium tobe a 17% its previous close. it values it at $10 billion. we are seeing a big decline for jetnew zealand shares as star prepares to unveil plans to expand its operations in new zealand. qantas ceo and is even prime minister are attending the announcement happening now. jet star runs nine airbus is on five routes, but there is a possibility they could get more involved. we just had headlines coming out of local media saying that jet star is planning to fly to regional towns in new zealand and that they would use five turboprop airplanes for the new zealand service.

they early reported that just a would make a significant announcement on the expansion of its domestic operations in new zealand. south korean carmakers have edged out there japanese competitors in a quality survey in the 90 states. it is the first time in 30 years that japanese auto companies have fallen below the industry average and quality. porsche came up tops in the survey, followed by tia, jaguar, -- based on consumer reports. those of the stories we are following this hour. back to you. later, acoming up monsoon brings in more rain than expected. we are live in mumbai for an update. ♪ bank stake's private and the latest property numbers

that of china. ♪

>> stories making headlines. flooding in parts of southern china. record rainfall last weekend. swollen rivers washed away houses and caused landslides. heavy rain caused flash flooding in shanghai. prompting social media storm about the prosperous cities poor drainage system. china's latest high-speed rail route. line passesion ry through scenic spots. the line is due to open the passengers on july 1. world heldund the

prayers to mark the start of the holy month of ramadan. different countries started ramadan on different days due to various interpretations. authoritieseligious declared that that they will begin from sunrise thursday. rishaad: back to our top stories. new home prices in china fell from the previous month. we have a chinese economist. what do you make of these numbers? perspective,lical the worst days of the property market are behind us. structurally, we think the sector has a long way to go. you have seen rate cut's going on, government action and feeling demand, is

that working? >> for the macro numbers, we have not seen strong evidence of that. we believe that the government will continue to do that. in the second half of this year, we will see more stabilization coming out. prices, whaterty on pricepinion behavior in the future. >> diversions among different cities. aboutgan has been talking it. we will see strong demand and limited supply, but in third and fourth tier cities, the oversupply is series. rishaad: asset prices on the whole, there are those who argue that there is a bubble building. would you agree? >> i think you are referring to the equity markets.

in certain pockets of the theets, there could be market being overbought and signs of over a valuation. the market as a whole, we do it's not quiet bubbly territory. rishaad: what are the growth indicators? on the gdp growth, does it fall in line with your expectations? in terms of macro, we would like to see -- the most important indicator is that investment is the key driver of china's growth. we need to see that slowing down in that category to stabilize a little bit instead of falling sharply. that is what we are observing in

the past quarters. rishaad: what about interest rates, rate cut's? more to come? >> i think there could be one more interest rate cut this year. these rr cots will be later this year. rishaad: is there more evidence of investments coming in. what is investor interest? are think our clients showing very strong interest in china's equity market right now given the massive rally we are observing. i have to admit that there is a lot of confusion, the diversion of economic performance and equity performance. some people are still not

convinced. people: we have seen reshuffled their emerging market portfolios with money diverted to china. >> i think this is only the starting point. from a longer-term perspective, when you look at how china is actively promoting the opening of its capital markets to foreign institutional do l investors. also, the gradual opening up of capital accounts. you will see more foreign institution money allocated into china. this is just the beginning. rishaad: what are the risks? i think the macro situation has to continue to be under control. you cannot have a hard landing. think you cannot see a kind of

risks off environment globally. either triggered by europe or other places. those of the things we are keeping an eye on. if you look at it from a currency standpoint as well, is there interest in currency as well? >> jp morgan has been fairly constructive on it for a long time. simply based on the fundamentals of the chinese economy. at this point, we think it is in the chinese government's interest to maintain stability against the u.s. dollar in the near term. position see a healthy

in chinese currency. rishaad: many thanks. j.p. morgan private bank. coming up next, we take a look at why social media is abuzz with japan's law change. ♪

rishaad: this is "trending business".

welcome back. haveemocracy protesters close ranks. what are the implications? >> the earliest time we could 5:00, maybe at 8:00. say,will look around and we will hold a vote at 10:00. but there are some people who might not want to do it then because they will be surrounded and people students who have gone there after work. we saw that last night. tomorrow at the latest. 1:00, all the students will be in school and people will be at work. perhaps it will be more convenient to do it then. as has been widely

expected, what does this mean for hong kong as a financial hub? >> you need to look at what the movement is about. it's not just about democracy. it's about china and their relationship with hong kong and the concern amongst many people in hong kong that china is ,ncroaching on the one country that was agreed. it guarantees the independence of the judiciary, freedom of speech, many things you don't have in china, and that is the concern in hong kong. of honge that sense , then that will have an impact on the spirit of the people of hong kong, particularly if we see the judiciary undermined. that could change hong kong's

relationship to china. rishaad: interesting. thank you for joining us. let's take a look at what's trending on social media. >> you are taking a look at greece? of year old officials bracing for the worst. anticipating talks will break it down. angela merkel must do things back to common ground. a lot of people saying this is not looking too good. we have a couple of weeks until the bailout deadline. starteople saying, let's watching the market domino effect. they need external expert assistance and management, not another handout. greece wants the eu to give them billions of year old debt. a lot of pessimism in greece. not so much in japan.

banning dancing after midnight has been relaxed. it was in place for 67 years this is a club. police have turned a blind eye and tell now pick now they have decided to relax this band. they will be able to go out dancing and it won't be even legal anymore. talking abouten this rule on social media to one person saying, it's about time. it's ridiculous. as i mentioned, this never happened. it has never been really in force. it was part of an anti-prostitution law. now those clubs that will allow you to dance will be designated as part of the sex trade. >> another person saying, don't

you have too much fun, people. things can happen at night. anyway. it's going to be fun. something to watch. back to you. rishaad: thanks. mission and possible, -- impossible, why the eu may be asking too much. ♪

rishaad: the top stories trending. confidence returning to china's property sector. prices fell in fewer cities. rose in 20 out of 70 cities, and unchanged in nine cities. the latest numbers out of china. foreign direct investment rose 7.8% for the month of may. outbound investments for the first five months at

wuan00,000,000 destinations. the take a quick check of the markets with david. david: a lot of corporate stories. let me focus on these property prices. it depends on how much of an optimist or pessimist you are. we are doing a little bit better. look at financials, a shot in the knee. doing very well, up 1.7% as a sector. if you look at you run your, it

is still the same. in every single city but one. still seeing declines year on year. that bee and said, it depends on how you look at it. still data -- seems to be stabilizing. three big stock movers today, australia, one in hong kong and air newew zealand your zealand, we talked about that, competition. toy will be starting service regional new zealand come the end of the year. cutting or offering

discounts on your suvs, that is the discount. it is getting a downgrade from brokerages. just before i go, when last company i want to mention -- nhl technology. so we are up a further 6.6% today. put out a statement to the stock exchange saying we do not know why the share price is gaining. there is no information to release. certainly something to watch. anchor: more on the fed's plan. a go slow approach in hiking interest rates. janet yellen said tightening would be gradual.

yvonne: they say they are on track for the first rate hike later this year. but the pace will be slow. rate.ept their benchmark but they did cut the forecast for 2016 to 1.65% versus 1.875%. more fed members seem to be cutting back on their forecasts as well. some expecting just one hike or even none by the end of this year. seven members versus the three who made a similar call back in march. the economy has picked up after that first quarter slump, but she still was to see evidence of a lasting turnaround. she did stress that there should not be too much focus on the timing of the first type, more so on the trajectory of the subsequent ones to follow.

volatility could spread across the market. yellen says no promises. ms. yellen: uncertainty about long-term rates doesn't appear to be unusually high. we can only do what is in our power to attempt to minimize needless volatility that could have her percussions for other countries or five front -- for financial stability more generally. and that is to attempt to communicate as clearly as we can about our policy decisions, what they will depend on and what we are looking at. : the fitted -- the fed still cautious at this point. some say that a economy's across the globe have not picked up enough steam. anchor: what does this say about the u.s. economy?

they talked about jobs growth. there has been a rebound. inflation still below target, about 2%. she also talked about consent -- concerns about a strong dollar. it has appreciated significantly in the last couple of months. the worry that this rate hike could ping the dollar up even more which could be a concern for many members and could drag the economy for quite some time. but she said it is also data dependent. no chemical formula here. anchor: thank you. europe finance ministers will meet today in a last chance to seal the deal with greece. agrees to its demands, will it actually deliver? this has been dragging on for months. is there going to be some resolution finally? clive: i think there is.

i think a genuine deadline is approaching at the end of this month. greece is going to have to find the money to make payment. and if it doesn't have the money to do that, then it will be in arrears. and that is a trigger -- it may not be a technical default, but that is a trigger for more actions. that is a deadline and something is actually going to have to happen. anchor: this is seen by many commentators like a less chance. if the deal does not happen, what are the indications than? clive: we have seen many last chances. there are more ways i can see this thing being spun out. way, the optimistic scenario is they find a way to carry on extending and pretending, which is what they have been doing before this crisis began. that could happen. a way to findd some financial bridge that will let the negotiations drag on. that does get harder and harder

to do. i think the critical question is whether the ecb is willing to play along with the scenario and which there is no definitive solution but basically they kick the can down the road. the ecb is keeping the show on the road by extending liquidity to the greek banking system. and if it decides it can no longer do that because greece is in arrears or in default, than that is the end for greece. that forces them to introduce capital controls. the next step is exit. happens,f the default what are the invocations on the euro system? can it cope? clive: in the short-term, it can cope. the understanding that it can cope is one of the reasons this crisis has dragged on as long as it has. but i think the feeling among the european finance ministers that they actually don't need in

the end to settle with greece, that they can let greece a default and the system will manage that. i think in the short-term, they are probably right. in the short-term, the financial fallout for the rest of the system is manageable. there is a risk that people would start to look to periphery countries and ask if they are next. but i think the short-term verdict is the system can manage with this. the problem is, in the next crisis -- there will be another crisis in the euro system at some point -- people are going to remember that greece , that greece was allowed to leave the euro system, and that will be highly to stabilizing. i think there is a long-term downside for europe in letting this situation unravel. anchor: what are the options for the greek prime minister? does he do a bad deal instead of doing no deal at all? clive: that is the critical question.

one of the things i think europe should do -- i think they should already have done -- is given tsipris a way to back down. capitulation is something he has been unwilling to do because that would be such a political blow to him in greece. i think he needs to be given an exit ramp. might involve is a willingness on europe's part to discuss debt relief. so far, they have not been willing to do that. they say we will do this deal on fiscal targets first and then maybe we will talk about that at some point in the future. if europe gave some ground on debt relief, just saying it was willing to talk about it as part of this negotiation, that might tsipras to saysip pres

that he had gained something. i think europe needs to help tsipras to climb down. in the meantime, he does not look like he wants to climb down. anchor: you can catch that story anytime, anywhere. just download bloomberg to your mobile or tablet. have become the biggest foreign purchasers of u.s. homes for the first time taking the top spot from canada. from china spent more than $28 billion on american months. the past 12 the survey shows chinese homebuyers lean towards more expensive properties with an average price about $800,000. may be planning first bonds. yuan

it could happen as early as today. . cities from singapore to frank for -- to frank for it have been trying to push business. oracle is falling in extruded -- an extended trading. the fiscal fourth-quarter revenue fell. hurt by her see fluctuations and sagging sales of new products. the company declared a cash dividend of $.15 a share. up next, destination new zealand, jet star.

jetor: juststar has an -- tor has announced plans extend into new zealand. jeb: they are making an attempt to crack new zealand's regional domestic market. they already fly between the main cities in new zealand. they have announced a plan to fly smaller planes, 50-seaters between 15 of the smaller cities. the ceo held a press conference a short time in new zealand. he said jetstar is going to bring competition to monopoly domestic routes around the country.

the big winner here is probably going to be the consumer. anchor: the key question is the big enoughew zealand' to support so much competition? paul: that is the big question. unless you are from this part of the world, you probably have not heard of it and the population is quite small as well. .amilton has 150,000 people you can drive to auckland airport in a little over an hour and get a better deal on a flight there. so it will be interesting to see if jetstar can make this work. others have tried and failed. new zealand's regional roots are small and difficult to make a profit from. sharelook at qantas's price, that is down a little as

well today. off about 2%. the market not exactly embracing this bold new move. anchor: many thanks for that. yvonne: italian police have busted a major international mafia drug trafficking ring in a joint operation with spain and the u.s. the drug was believed to have been transported in shipping containers from columbia to various ports around italy. more than 30 people were arrested in the staying. a tiger that broke lose after severe flooding at a zoo has death.a man to this came a day after authorities said all the escaped tigers had been accounted for. the zoo director has. taken accountability for the misinformation and now says that a tiger cub and a hyena are

still at large. lawmakers are voting to vote down a china-backed election plan. none of the legislative council's pro-democracy members said they would support the proposal. the bill would allow a citywide election in 2017 from a list of candidates approved by beijing. anchor: singapore airlines says it wants nonstop flights to the united states. haslinda almond spoke -- has linda spoke exclusively -- haslinda spoke extensively. >> all the economies in southeast asia are still open, especially singapore. which is fine with us. we have no issue with competition.

also see in southeast asia there is a proliferation of the lcc operations, which is not quite at a pace that you see in on asia. the two fundamental changes [indiscernible] have been especially felt in this part of the world. are the glory days of double-digit profit margins over? >> i don't think so. what we have done in positioning the company for the future is precisely to ensure that this company has a good growth story going forward. so based -- the star a -- so vistara based in india will

have a chance to grow. on thea: i want to touch u.s. market. is disadvantage because he cannot fly directly. so you are in talks with boeing on possibly a new model that will enable you to do that. is lack of reason viable intermediate points, and that's largely because the countries concerned are not really giving us the rights to operate, what we call fee freedom. so there isn't a commercially viable at craft that can fly nonstop. 5, butd to fly the a34 that is not fuel-efficient for the technology. talking tobeen boeing to try to get them to have an aircraft based on the new technology to operate

nonstop from singapore into the u.s. the discussion is still ongoing. haslinda: any seasonable timeline to expect? >> the manufacturers are telling us you need new technology and you need some time. so i can i give you a timetable until they give me an indication. aslinda: you seem to have comprehensive strategy for the longer term. but when you look at the share price, investors don't seem to be buying into the story. down 30% in the last five years, four and a half of which you were ceo compared to the likes 17%.thay pacific, up what have you got to say to your shareholders? >> i would assure them that they should see all this growth coming in in the next few years and they should start to invest more. [laughter] haslinda: so the shares are undervalued? >> i think so. please, encourage everybody to invest more. [laughter] it's a good time.

up next, the weather forecast.

anchor: an unexpected weather forecast has seen billions wiped off the indian stock market in just two days. what is going on? reporter: learned me start with the good news first. theofficial forecast on is is 11% over normal since the first of june. the data signs are to cut the

monsoon forecast in june. the rupee also has bid on a rally, reflecting the rash of economic data we have seen last week, including the retail inflation index. the may talk about what is happening with companies. scrapping ant year expansion in north india. not looking like good news although there seems to be some good news coming in on the headline on the monsoon. anchor: here is a reminder of what is turning today. sherry: a lot of excitement in japan because clubbers will be able to groove the night away

legally. parliament has just relaxed a rule that a -- a 67-year-old rule that band dancing in clubs legally after midnight. now they will be able to do that as long as they have a good level of lighting, the brightness of twilight. we canson saying finally dance and tokyo let we have always dreamed of. niceer person saying a little job for the police going around with light meters making sure it is not too dark. another person saying now you don't have too much people -- too much fun, people. for "trendings it business."

mark: i'm mark halperin. john: and i'm john heilemann. and with all due respect to pope francis, the world is definitely getting hotter. but you are pretty hot yourself right now. ♪ john: ok, happy national eight -- eat your vegetables day. a handful of new polls in battleground state provide a snapshot for the clinton campaign and that picture looks like it has been taken without instagram filter that is kind of brown and gray. let's go to the big board wher