stocks rise across the region ahead of the latest french talks on greece. china aircraft ceo quits while on holiday. there's been no word from him since. down to the wire meeting creditors once again with the debt headline just days away. also coming up, hitting a sour note taylor swift pulling away from the apple streaming service accusing them of ripping off artist and producer's all in this monday morning a version of "asia edge." >> keeping my eye on the markets and we're seeing a third day up with the exception of a few weeks pots. energy share declines and a few banks as well pulling down the index. let's not take that away but it's a fairly good day for the markets. the s&p futures are dropping at last i checked. putting a sign some of the fears

of greece. again, volumes are quite low. just across the region with perhaps with the exception of malaysia. volumes are low. on average, simple math, about 25 cent lighter -- 25% lighter. we will likely see this climb during the trading session. where are we? a big drop in u.s. 10-year yield into this morning and late friday but back up a little bit right now. this is an indication of the spread between greece and everybody else. the euro lower for it third or fourth straight day. i believe it there. back to you. >> we've been here before.

we will doubtlessly be her again. greece leading the headlines as they are heading for emergency talks in brussels with one week to go before the deadline. creditors are losing patience. taking a look ahead to the latest meeting any chance of a deal? the markets sure seem to think so. zeb: it shows investors are not necessarily roiled by this. there are some promising words out of the europeans. we do have the top aide to the european commission president, jean-claude juncker saying the latest proposal submitted this morning.

the ecb will hold a conference call on funding for greek banks and then 7:00 a.m., they will face-off. you can call it a showdown and it is. the expectation is if greece wants to avoid default, alexis tsipras and his government will need to make some further concessions. >> what is the reality on the ground right now. trying to figure out what to do with their dollars or euros in the bank. what's the worst case scenario here? >> remember what we saw in cyprus. they are having significant withdrawals by depositors and greinke banks. the ecb has been prompting up -- propping up the system with greek banks.

confidence has already been undermined enough. they do not want to see this general population here packing and that is really the key challenge for the prime minister. it would require him to and build back on his election promises. if he chooses that course or the course of default you cannot have it both ways and that's the clear message coming from the european creditors who he will meet with tonight. >> zeb, thanks tonight. a lot of jerome of being made and we have been speaking all morning about the crisis. a chief economist from the bank of singapore. >> different and affecting --

>> more vague symbol. >> there will be a permanent reliance on european support even if you forgive all of this debt they will through more at you. it's more the basis of how you manager economy. the europeans are saying in that case, off you go. >> from the institute of global finance at the university in wales says greece and the creditors will reach an agreement on time. >> political, if you like forces will prevail and a bow for germany and greece will come to some kind of compromise. i think authorities are putting enormous pressure on the great government -- greek government and they realize their banking system could become insolvent and the risk is that they could

become bankrupt. >> as said mentioned, the founder and funds manager describes the situation is precarious. >> you put enough money in on friday but just enough to cover one day withdrawal. this is a slow-moving bank run. negotiations go on and ecb funding was just enough for one day. they need to resolve it kind of today. the money is only given day by day. it's a precarious situation. >> and that's the word from asia. in other news, likely to fall below next year. they may be forced into

cutting due to weak capital spending. it remains higher than where the central bank wants it to be. polish national carrier was forced to cancel a number of flights after a hack attack. it temporarily paralyze the computer system. domestic and international flights were affected delaying nearly 1500 passengers. the problem was eventually solved and an investigation is underway. bank of china may be investigated for allegedly laundering in italy. they are seeking indictments against a lender in the along the branch. more than $4.5 billion left frankfurt illicitly from italy to china.

gains for china aircraft after shares plunged on friday as the ceo unexpectedly resigned while on holiday and hasn't been heard from or seen cents. kyunghee park joins us now. what's going on here? >> they're basically responding to reports that were out in hong kong and china about the possible investigation being done for the former ceo in relation to a deal he had done with china southern. right now we have no information whatsoever on that at the moment. china aircraft has done their own sort of investigation to see if there has been any and usual transaction deals that have been

done and they have found nothing out of the ordinary. for now, we just have to wait and see what's going on. a professor at beijing university says any seniors expected to vanish like this the first thing the public will think is the worst, that he might be persecuted. angie: this is not the first time we've seen the ceos going missing in china. relate to us this increasing case of missing ceos in china. kyunghee: there is one case earlier this year in january where the chairman of the company couldn't founder securities had taken sick leave. the reports on why he disappeared. -- there were no reports. earlier this month they said one

of the supervisors had lost contact with him as well. this is not something isolated to china aircraft. it's happening more so with companies more so because the government did say that they would proceed with the anticorruption case no matter if it was company or government-related officials. angie: kyunghee have there been any response from shareholders on what happened yet? kyunghee: the two biggest are china everbright and china pacific they said they would not be reducing their shareholdings and would continue to provide support. we reached out to china everbright and confirmed this. they said, yes, china aircraft and what they said were correct. for now, the shareholders are backing them for now. angie: kyunghee park and the

latest case of the missing ceo in china. david, we've been watching some of the big movers today. david: people are busy this weekend. but start things off in hong kong. here is the big gold producer in china. we are down 1.5%. phoenix putting out a statement commenting on this a few hours back saying it cannot recommend a deal in the current form. they feel it is being "limited" to shop around for a better offer. they are taking a controlling stake in israel's fourth largest insurer up 0.3%.

there is a substantial profit warning here and they are expecting to see a significant drop in first half income. they make construction equipment , things like all floaters. -- off loaders. let's switch things over and look at the carriers in here. comments coming out of the resident from korean air that the impact of mers where the company is concerned could be bigger or is bigger than what happened with sars. earnings will sharply decline in the second quarter. investors are putting that one side. a big contract here from merck up to $2 billion looking at an order including nine massive ships 14,000 square foot.

the company, 4k it should be adopted by 32 other makers. back to you. angie: thanks david. still to come, the grid gold later on the show. taking a look at the markets for honey and how it's attracting counterfeiters. we will talk to counterfeiters in asian markets on the horizon. joining us when "asia edge" returns. ♪

angie: services were held at the emmanuel church in charleston, s.c., for the first time since i gunman killed nine members last week. they offered messages of

forgiveness and thanked the community for support. they have called for the death penalty for the gunman, 21-year-old dylan roof. the number of those killed by tricking tainted alcohol has risen a. a few more people died in critical condition and what they are calling the worse such incident. 10 years ago more than 100 died after tricking tainted alcohol in mumbai. holding ceremonies and respective capitals marking 50 years of bilateral economic ties. the meetings between foreign ministries in the first talk siinnce 2011. today's ceremony may pave the way for the first face to face

meeting between the country's current leaders. let's check back and on the markets with the co-cio at global investments. very good to see you. we saw a selloff in china last week, the worst week since may of 2012. it looks like it's three bounding in hong kong at least. china is on? >> we still look at valuations and they are sloppy win the nominal gdp growth is only 5% unlike 2007 or eight one day the music had to stop. i think that explains a disconnect between the two markets. angie: what do you think will happen in china mainland stocks when they reopened tomorrow? >> tomorrow is difficult but

what we first see is an economy where almost the entire world is affected. on the one hand, you have volatility where they are cutting interest rates. the structural issues still remain. so the growth is broken. angie: are you still overweight china? >> there are still good companies like internet, health care telecom, insurance. it is not growing at 7% but probably 4% or 5%. angie: let's take a look at the broader asian market here.

marginally overweight china. where else do you like? >> india is a story we have been following for a long time. most are saying in a no inflation world, you need good demographics, good leadership. that is what india has. it is significant overweight for us and where you get a heavy mix across sectors whether its i.t. pharmaceuticals, very well-managed. we remain confident of our exposure. you see earnings recovery happening of the next couple of quarters. there are early signs of margins being positive. india remains one of our favorite markets in a medium perspective. angie: do you still like the philippines? >> the demographics are good.

leadership is stable. the philippines sold off but typically we've seen in the past those are the best times to buy you in the philippines. you get in a good market at attract the values. -- attractive values. as it stands out in terms of growth, more investors are going to look at it. angie: and this is where the fundamentals do support your view of the markets. thank you so much for that. rahul, we have not talked about greece. we will save that. thanks so much for that. see you in about 20 minutes. coming up, itching to change their mindset. things may be starting to shift behind the scenes. more on that as asian edge returns. ♪

angie: there are now signs of change -- change in corporate japan. hedge funds says they played a role in pushing one of the oldest companies to raise its dividends. joining us now, sarah, we are talking about japan here and what's going on. >> they met about four years ago

and lost every single proxy fight. things looked a lot more compelling for the hedge fund. they have an increased their dividend ratio. from that point of view things are looking good. up 180% since october 2011. all were pretty much high for that. angie: this is just one example of what seems to be a general mood of that visit him in japan at the moment. what's going on? sarah: you have a shinzo abe really pushing for corporate governance in japan. he has introduced stewardship for japanese investors. you have the governance code for

companies and a stock index helping them use the cash more efficiently. what that's doing is it's putting the activist playbook at the heart of the japanese establishment. activists had tried and failed to get them to do many of those things in the past but now we have the government telling them to and that's a huge difference. it's a better climate for activism in japan. as you said, we have seen other exits. both of them came away with some of what they had asked for. there are people winning herald. angie: how does japan compare with the rest of asia here? sarah: i guess the biggest activism story in the moment is elliott associates against sam son. you could not get a bigger opponent there. we found out -- we will find out

july 1 whether they are successful against holding aga inst samsung. that will be big in the next few weeks. angie: sarah mcdonald, think you for joining us, on the activism not only in japan but across asia. softbank says its first one of 1000 pepper robots sold out. they started selling the robot and softbank says they're not taking any more orders for now but will announce additional sales in july. it can respond to emotions with human like body language. ♪

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angie: but top stories this hour. a senior eu official says greece's latest proposals are a good basis for progress when eurozone meters -- leaders meet later today in brussels. the clock is ticking towards the deadline to make payments. prime minister alexis tsipras is hoping to convince creditors he is ready to compromise. shares in china aircraft are on the rise in hong kong, bouncing back after a 19% plunge on

friday. that's when it told investors that its chief executive had quit while on vacation, hasn't been heard from since. the resignation comes amid china's widening campaign against corruption. bank of china may be investigated for alleged money-laundering in italy. the news agency says prosecutors are seeking indictments against 297 people. more than $4.5 billion may have been transferred and illicitly from italy to china. let's get back to our top story now. greece. negotiators hold an emergency meeting in brussels today. the next deadline just a week away. the government demanding an end to austerity. bloomberg's guy johnson was there. guy: it is sunday night. this is a pro-government rally.

the prime minister has just left brussels. over the next few hours, he will be meeting with jean-claude juncker, mario draghi, and christine lagarde. he is working on proposals that will keep these banks open. we are expecting the shutters to open again tomorrow morning. the big question is, will they open on tuesday morning? whether these shutters go up or down is as good an indication as anything else as to how the situation is developing. europe normally find a way to do a deal at the 11th hour. guy johnson, bloomberg television. angie: there's no shortage of issues on the agenda as china and the u.s. meet for their annual strategic economic dialogue in washington. the challenge may be finding topics on which they can agree. we will take a closer look at

this. china and the u.s. have a lot to talk about. >> the world's largest economies. the number of issues are adding up on the economic front and the strategic front as well. we have allegations that china was behind the cyber attacks that stole a lot of u.s. government workers' personal details. there is rising tension in the south china sea that the united states and pentagon had said they are not going to let go unnoticed. those are going to be really right at the top. we heard from a state department official, saying the most difficult issues are going to be hit on right at the top. monday morning, bright and early in washington, d.c. they alternate every year between china and the united states. last year was in beijing. other issues, the transpacific partnership that president obama

is trying to get going. that excludes china. we have the aiidb, the infrastructure investment bank that the united states has stayed out of. other issues include the illegal trade of ivory. it was put on the agenda. human rights, intellectual property, long-standing issues as is the value of the currency. a lot to talk about. angie: how do you think the cyber security breach of 4 million american contractors and workers is going to play out? >> probably not going to go over well in discussions. these are going to be talks held in washington. perhaps when the doors are closed, they get right down to brass tacks and talk about these issues. that will probably be right at the top. given that they are on u.s.

soil, they might not pull their punches. if they are in china, a little more diplomacy. the chinese probably want this to go as smoothly as possible. don't ruffle too many feathers. smooth things out ahead of xi jinping's state visit in september. they don't want the noise to drown out this crowning achievement for xi jinping, having a successful visit to the united states. angie: thank you so much for that, stephen engle. other stories we are tracking today. china's steel output will shrink as the bull market in iron ore drives up costs. the china iron and steel association expects crude steel output to fall as much as 2% this year. chinese producers are being hit by rising costs in the collapse of steel prices. glencore has sold one of its nickel mines at a discount of more than 90%. that is quite a steep discount.

the operation was valued at $2.4 million in 2007. glencore has offloaded it for just $19 million. the deal follows an industry trend of disposing of assets that have lost value. the mine was part of glencore's acquisition of estrada. it had been bought at the height of a commodities boom. prices have since collapsed. vietnam wants to be more open to business and is to relax regulations to attract investors from at home and abroad. let's bring in our south these asia correspondent, haslinda amin. is this an attempt to breathe life into a sluggish economy? haslinda: it is. a move that has to be taken. they risk falling short of gdp targets for the year. here's the plan.

investors will be allowed in more areas. only six sectors will be banned still. previously, it was 51. the government will loosen regulation in more than 100 other areas. this is the most significant easing since 1990, when vietnam started lowering private companies -- allowing private companies. it is about survival. there is intense competition for fdi from the rest of asia. so far, only $4 billion in committed fdi. less than 20% of what is targeted. neighboring indonesia saw fdi climb 14% in the first quarter. the at nominee is playing catch-up. it has to hurry. angie: how about mistakes foreign companies can hold in vietnamese firms? will that increase? haslinda: that is part of the plan. the government will sell stakes

in larger chunks. foreign investors will have more opportunities to invest in these companies. the target is ambitious. it wants to sell shares at 289 companies by year end. we will see if that materializes. angie: all right, thanks for that. snake oil or liquid gold? it has a reputation for being a superfood, but some remain skeptical. at up to $100 a jar, new zealand's premium honey is the latest product attracting the attention of counterfeiters. paul allen investigates. paul: the rich color in this vat of honey betrays its value. its reputation as a superfood earns farmers more than $50 a kilogram. that has propelled it to record earnings and a record stock price. >> it has become truly liquid

gold. the price per kilogram is fivefold over conventional honey. paul: while claims about the health giving properties attract a fair share of skeptics, there are also studies supporting its credentials. celebrity endorsements have helped boost that image, from actress gwyneth paltrow to tennis champion novak djokovic. the market has spoken. minogue a honey retailing at up to $100 a pop. where there is money to be made there's also counterfeiters. >> every year, 1700 tons of honey are actually produced in new zealand. the global distribution of manuka honey is in the range of 10,000 tons. you are estimating that approximately 83% of manuka honey available for purchase

around the world is not real. paul: the value is found in the manuka tree unique to new zealand. 80% of a's as exports go to china, where most of the fakes are uncovered. >> it is a real issue for us the credibility of what we've created here. the proposition to sell overseas is going to be challenged when you have counterfeiters operating. paul: the unique kanuka honey -- manuka honey association is working on stricter rule to ensure the gold keeps flowing. angie: before we go to break, a story for you. italy has reinforced its dominance of the pizza market. 60 top chefs worked through the night to create a pizza 1.6 kilometers long.

the guinness world record confirmed it is a new record. organizers say the pizza weight nearly five tons including 1.5 tons of mozzarella. it was cooked for milan world expo. slices were free. coming up next, we are just hours away from the latest greek debt talks. the view from asia and how the region may be affected. you are watching "asia edge." ♪

angie: checking headlines around the world now. south korean ministers report more deaths from mers. the latest deaths take the number of victims to 27, with three more people added to the list of sufferers. mers has affected more than 1100 people and killed 400 worldwide. iran has voted to ban -- two

international sanctions under proposed nuclear deals with the west. the decision may complicate talks on the agreement. washington has said it won't approve any deal without full access to iran's nuclear program. congress has the power to review any agreement. a german judge may decide later today whether an al jazeera journalist should be extradited to egypt. his arrest has prompted protest demanding his release. a cairo court convicted him on charges of torture, which he denied. egypt accuses al jazeera of supporting the muslim brotherhood, the now banned party of ousted president mohamed morsi. welcome back. joining me are zeb, yvonne, and rahul chadha.

how do you feel about greece? >> the last thing you want at this point in time is something like this. you hope that the damage is less for the greek economy. it is something like the ukrainian prices. what we saw -- [indiscernible] i really don't believe it is -- [indiscernible] all we are looking for is a little recovery. stephen: if you ask angela merkel, she says we are being pretty pragmatic. >> i get your point. that's why this is taking so long. angie: they are about to go on holiday. they better figure this out.

stephen: that's right. zeb: they want to get this done in time for summer holidays in europe. on a serious note, it is stunning to me that there hasn't been more give and take from the side of athens. i know they want to stand their ground, but why do you think they haven't been more willing? >> it has to do with the whole mandate on the election. we will be able to extract a better deal. suddenly, you realize that it is greece during the same thing every two years. i think the key thing was the central bank in greece telling citrus and his team -- telling tsipras and his team, you better fix it up. they've got to explain it to the people. yvonne: how terrible could it be

if they did exit? would this be a chance for greece to start a new and maybe try something new to the table? >> probably, but the next two years are going to be extremely painful. one cannot really imagine how painful that would be. if you are willing to go through that pain, then it is. from a global perspective, it raises the question, does it mean similar things can happen to ukraine where you have more default? and like the way i said you won't really have a strong recovery in the world. it is a very tenuous recovery of the eurozone. yvonne: greece is really going to bear the brunt of this. everybody who has the euro, who has the resources, they already took their money out. >> it is for tsipras and his team.

that is why i hope that right medicines him comes in. stephen: what does this mean for asian economies? you said there's not going to be contagion within the eurozone. what about here? >> i think it is going to be a blip. we are taking the opportunity to buy. across markets -- there are great opportunities. in china there is a cyclical part of the market, the industrials, the internet companies the telecom companies are interesting. you pick the names you want to buy. there is going to be a recovery. make sure that your levels are good. angie: i just want to make sure you are here, and not of here. >> [indiscernible]

we are clearly at the bottom of the u, not at the top. zeb: it seems to me the economy is not only one of the issues the fallout, but the legitimacy of european institutions. there is a larger issue here of the ecb, the eu, the european commission, not wanting to be steamrolled by a large country -- by a small country. even if it is an element of their union. >> you are right. that is why they've asked greece to come back with more stringent proposals. that is really the key thing. stephen: does this paved the way for a fiscal union? >> i think that's a tough one. that's what germans are talking about. you see the french taking on all these tough reforms. the germans may go for that.

basically, the jarman's -- the germans are holding out for a fiscal union. you need to realize that people are enjoying at your cost. if you see the economies getting competitive, it may be a fiscal union. as these things keep happening you are not going to see that happen. yvonne: do you see angela merkel budging or going past the 50% she hopes for? >> i think she fully realizes what happened in russia where we had the german economy which was doing exceedingly well suddenly losing momentum. the last thing she wants is any of these things. the way we discussed before, she is not willing to be steamrolled by a smaller economy. you want to set a strong

precedent for other economies. we have seen spain, the italians, but we have not seen much happen in france. you don't really want to see -- [indiscernible] angie: setting the precedent. either way. don't know. rahul chadha thank you so much. this is one to watch. thank you so much for joining us. coming up next, drawing a crowd. how a french animation's goal has become the toast of hollywood. ♪

angie: taylor swift has pulled her latest album from apple's music streaming service. she's unhappy that apple won't pay artists for a trial period. she posted an open letter to

apple on her blog, saying three months is a long time to go unpaid. swift withheld her music from spotify for the same reason. "jurassic world" has maintained its record-setting performance, earning more than $100 million in its second weekend. the film has raked in more than $800 million around the world. "inside out" was the second highest earner of the weekend, taking more than $90 million on its debut. that is a new high for an original pixar film. animation has become a multibillion dollar industry and animators are in high demand. as caroline connan reports, graduates are making their mark in hollywood and around the world. >> i've been an animator at dreamworks for 20 years. caroline: 20 years ago. that is when dreamworks

cofounder jeffrey cap merck convinced the french man to trade his tiny paris apartment for a job in l.a. >> when i started at the studio it was for the first project we did called "prince of egypt." i remember the feeling of thinking of the character as a human being, and drawing it and seeing my first shot on the big screen. caroline: at first kristof wasn't that interested in the american dream. but the u.s. studio wanted his skills. he was a graduate from paris, one of the top animation schools in the world. >> with no animation school anywhere else, it was the first school in there. for a long time, it was the only school. it had a really high level of artistry and technique.

so those guys who were graduating from that school were among the best in the world. caroline: the creme de la creme only 25 out of about 700 applicants are selected every year. today, the 2015 soon-to-be graduates are rushing to finish their animation movies for the festival. that is where big studio headhunters from pixar to disney and dreamworks will be battling to hire them. >> i had some people, some studio guys saying here is my card. caroline: hugo is not worried either. he tried three times before being admitted. >> [indiscernible] caroline: the french students

will be competing with cal arts graduates in the u.s. the huge success of animation has increased the need for talent. >> you can find students all over the planet, in london, shanghai, australia, south america. caroline: just like kristof. many young creative's are likely to travel from paris to hollywood. caroline connan bloomberg paris. angie: animation. you can get more on that and all the day's top stories on our website. it is your online source for business and market news bloomberg.com. that's all you have to type in. go check it out. you can follow us anywhere you are on twitter. i am @angietvlau.

you can follow everything we do at bloomberg. that's it from us here in asia. see you tomorrow. ♪

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