rishaad: it's monday. this is "trending business,." here is what we are working on. enough is enough. greece giving it opinion as creditors demand a no vote sunday. the referendum taking everyone by surprise. euro weakening on that uncertainty, economy in the region watching the situation closely amid growing worries for the currency. the fallout spending.

at the closing banks, imposing capital control after a record amount of money pulled out. the withdrawal limit is just 60 euros per day. , #trendingn twitter business. in china, an important ipo. malaysia coming online. a look at the events so far. reporter: not looking great. so far in the asian region. we are seeing that risk off appetite continue on the board. share watching china's market when it opens later this morning, down 7.4% friday. the biggest decline since january 19 and the third-biggest on the shanghai composite since 2007. we are seeing a lot of weakness coming through on the week -- nikkei in japan. its biggest fall into once

today. we have had japan's industrial production numbers coming through. 2.2%.g expectations, down quite a bit of weakness coming through in a lot of the base metals. australian sharemarket impacted, as long as greece impacting investment everywhere, down by 1.8% in early trade. we are seeing the markets that are just come online following the trend, down 1.5% in taiwan. down also.e, it will probably be quite another ugly day in the asia region today. rishaad: of course, it is our top story. credit crisis deepening with banks closed. the euro taking hits, especially against sterling. david: against sterling, the yen yen, the dollar. name your currency.

following message queues to get to atms, the ecb was the big blow you late yesterday. capital controls. greece and outside a few hours back. that is a further run on the bank. a few things to note. next will be shut until sunday. that is the date set for this unexpected referendum. 60 euro withdrawal limit for day. withdrawals will come online. will open midday in greece. that is early evening here in asia. targets localo branches of foreign banks, and also the issue of new credit cards, prepaid cards. if you currently have one, there is no restriction to how much you can actually spend easing those cards. covercontrols also do not

accounts held abroad. when you talk about imports, most payments or transfers banks.are also those are set. greece has set up a special committee to approve payments payments forial, an essential imports like medicine or fuel. by sunday night, the queue has shifted from the atms that have probably run out of money, to the gasoline stations respect and fear of the ability to keep importing fuel. that is the latest. watchingen comments, developments very closely. at this point, that is what the latest is. closing banks to avert further pleading -- bleeding. rishaad: we will have a detailed look throughout the course of the show. tweet us your thoughts, #trending business.

china's central banks cutting interest rates again. the biggest two-week stock plunging nearly two decades. chief asia economist is in beijing. what prompted policymakers to act as aggressively as they did? i think there are a couple of striking things about this move. firstly, it is a combined rate cut and targeted preserve requirement cut. the combination of those moves illustrates a depth of concerns from china's policymakers. the second thing, on motivation, is really that this comes against the act off of signs of stabilization in china's economy. in the second quarter, it has actually been rather positive, real estate sales, industrialized stabilize.

what that suggests is the approximate cause for the action is that plunge in the equity 7.4% drop we saw on the shanghai composite index friday. there is a logic to that. there is a relationship between what happens in equity markets and what happens in the real economy. concerned that plunging equity markets would hammer consumer hammer ipo fundraising and potentially snuff out the recovery before it got started. but the risk is by signaling they are going to respond to market corrections, the pboc dose of moralr hazard into china's already dysfunctional equity markets. the risk is that equity avestors, anytime there is significant market correction, policymakers are going to be there with a rate cut or reserve requirement cut to rescue the markets. rishaad: thank you for that.

at the rate cuts in china. the other story we are following. anne: it is signing day. the asian infrastructure investment bank takes another step forward. says it will put $672 million into the project. the nikkei news says the philippines delayed joining, but will be an observer at this proceeding. analysts tell bloomberg tv the formation of the financial institution is a major achievement, given the u.s. is not a member. once the majord european powers agreed and pledged $720 million. the aiib will have 57 founding members. they want to have infrastructure in the region. representatives of the founding members will then take their

agreements back to their respective countries. aiib will have an authorized capital of 100 billion u.s. dollars. from signing day to trading day. chinese conglomerate ledges holding will make its trading debut. 1.8 billionound dollars in its offering after pricing near the top end of the range. they have a 30% stake in lenovo among other holdings. they had $47 billion in assets at the end of last year. legend holding real estate developments, and private equity and venture capital. they start official trading in hong kong and just over 20 minutes. we are also looking at china's campaign against corruption. it has ensnared some of the state run companies. china southern power grid and

some others are among those accused of false reports and other violations. firms, 14 state-owned were found to falsify profits to the tune of $8 billion. this is according to china's national auditor. its 2014 report was released sunday along with several statements reporting on the individual companies. in thealed violations approval, allocation and management of public funds, state-owned assets and resour inadequate due diligence and violations in decision-making procedures, leading to big costs or idle assets. also found in the financial industry to the june of 2.7 million dollars. including the bank of communications, china development bank and china export and credit insurance court.

in 2005, the auditor says the bank broke rules in loads. the others mentioned were found to have given out loans to unqualified projects. 56 seriesns now, cases have been handed over to relevant parties. we will see what the next step that, all part of the anticorruption campaign by president xi jinping. story, aanother squeeze on seniors in japan. it is on bloomberg.com. next, the casualties on off prices. coming up next. ♪

rishaad: welcome back to "trending business." atlas iron, suspended operations in shares after falling below $50. you did have to suspend shares , close too a whisker shutting doors. how close were you? guest: if we did not start this costs- we basically cut from $60 to $50, which means as the prices fall, costs go up. on the back of that, it saved the company. rishaad: what did you do to reduce cost base? guest: contact us cable a margin in exchange for profit share.

it took a big hit. rishaad: your borrowing from peter to pay paul. guest: but it is ok as long as we share some of the game. it is essentially not joint venture. rishaad: you last traded at $.12. guest: now we will go up to $190 million was -- with a five cent issue. rishaad: what has the take-up been like with that? guest: we had a shareholders meeting thursday. the reception in singapore and hong kong has been really good. we have meetings set up in london and the east coast of australia. it looks good. the $180what you do million for? guest: we will use a bit of it to pay down some debt and build a much stronger business. we are making money today. to be volatile in

the future, so we want to have a business strong have to get through that. rishaad: how close were you to actually setting up shop? guest: we suspended operations in april. if we didn't get new deals done with those contractors during april, we would not have reopened. it is basically a binary. rishaad: and it was what, 49 or something? guest: $45 70. rishaad: it must have been very painful. guest: it was. we were contemplating losing $25 million a month. we couldn't keep doing that. it was not business as usual. we had to stop and we look at everything. rishaad: what about the big boys out there, producing more and more iron ore? are they in effect trying to drive smaller operators like yourself out of business? tried i think they have to grow as fast as they can. i don't think they estimated the impact of the current market

dynamics. i don't think they did -- they are highly competitive. i don't think they'll do us any favors but i think we have surprised them that our business can break over $50 a ton on u.s.. if they do push the price down below $50 a ton, they come under credible with writing agencies. they lose a lot more money as they produce a lot more. rishaad: it is a question of oversupply, what about the demand side? everybody talks about china. is there significant weakness? guest: we never have. rishaad: the price is a function of oversupply? guest: prices dictated by two things. the other part is sentiment. and headlinesoric and those things. that drives teachers which has an influence. it is starting to evolve into a market where sentiment has more influence than actual physical trade-off of the iron ore.

underlying demands has always been high. amazing.that's what you are really saying is -- what will change the mentality? guest: time. the market dynamic we are seeing is new. five years ago, the iron ore price was set by two groups of people smoking cigarettes in a room. it has moved on now. it is becoming -- there is a traded market becoming more dynamic and it will settle down. rishaad: the question is, what happens next, what are your provisions for prices looking ahead short to medium term? guest: we think the price will stay where it is now. it will lose pipe -- plus or minus $15. but the selling mechanism is different. months ahead. if the price falls to $40 a ton, our business will be insulated not just by capital balance, but the fact we are locking in prices.

it doesn't matter so much with the price is today because we are already making money. rishaad: thank you, david from atlas iron, the managing director. headlines around the world. more than 400 people remain in hospitals and almost 200 in a disasterare after in taiwan. colored powder thrown into the crowd accidentally ignited. to park workers who through the park -- powder has been questioned. they could face professional injury.ce causing indiana, a historic neil best deal to curb iran's nuclear program. if they have overcome one of the most contentious issues. afterill wait for release u.n. inspectors verify restrictions have been implemented. foreign ministers from all seven involved in talks will gather again once a deal has been drafted.

latest mission to resupply the international space station has ended in a next vision and shower of debris. the unmanned rocket was carrying a cargo capsule with a blast off from cape canaveral. almost two and a half minutes into the flight, and the rocket exploded. the cause is not yet known and enough says everything was normal at the time. it is the second recent u.s. mission to fail in yes -- less than one year. next,d: coming up indonesia become one of the aiib's top 10 investors as they gather in beijing. the details, coming up when "trending business," returns. ♪

rishaad: this is "trending business." i'm rishaad salamat. investment bank takes another step for it. 57 founding members gathering in beijing to have a founding ceremony despite american warnings about governance. plating commitment, but the philippines say they will be an observer for now. haslinda amin has a look at a big day ahead. haslinda: big day. you can call it a rite of passage for china. chinaank gives china --

the chance to prove it can lead a multinational body. it has always wanted a bigger voice in the region. and now it has. 57 founding members, $100 billion in capital, operations expected to start next year. indonesia is committed. $670ledge more than million over five years. two notches higher is australia. others include south korea, russia and india. there is a lot of interest, despite resistance from the u.s. and japan. they are concerned about governance, transparency. adoptorry china will not the best practices. remember, china wants this to work. it wants to showcase chinese leadership and it wants the yuan to be internationalized. rishaad: the thing is, we talked governance.

but what about the structure of this bank. will anybody have a veto? it,inda: as we understand china will have 26% of voting rights. it will have veto power. some reports suggest china is actually willing to cut voting rights to less than one quarter, if the u.s. and japan decide to become members us well. voting rights, indonesia wants some. it is looking for partners to form a constituency with a combined share of 6%. it is in discussions. the maldives is a possible partner. it looks like nations fighting for a voice, understandably given their voices are hardly heard at the world bank or imf. rishaad: thank you, haslinda. joining us with the latest on the aiib. stories making headlines elsewhere. vietnam evening courier --

easing on foreign energy. increasing holdings on another of industries. banks will remain capped at 30%. japanese are telling civil servants to work hard and play harder to improve worklife balance. they are encouraging employees to come in early so that they can leave earlier. participants will be encouraged to forget about unnecessary overtime. smalltime workers in japan take less than half of annual leave entitlement. apple is said to have started early production of new iphones. it will include a feature called force touch. this senses how hard uses press on the screen and can be adjusted. it is expected to be similar in design to the iphone 6.

it was also seen on the iphone touch and newest macbooks. -- apple watch and newest iphone. things getting underway in the markets. big declines. what is going on as far as numbers, all will be revealed including the debut of a legend holding. a chinese conglomerate and the free market. up by 4/10 of one cent. shares, after the short break coming up. stay with us, this is "trending business." ♪

rishaad: looking at top stories, and taking actions to avert financial collapse, ordering banks to stay shut. lenders will be closed for at least one week. customers will only be able to withdraw 60 euros per day until the referendum on sunday is over with. the decision coming up as talks with creditors broke down friday and the ecb froze the lifeline to greek banks. the biggest two-week route in china and almost a decade. shanghai shares on the bear

market, having fallen 19% since this year's earlier event. live images, raising $1.8 billion or so in the fundraising. let's have a look at what else is going on. for shanghai. we are fortunately seeing some good movement coming through. -- thenghai composition shanghai composite is up. the bank of china on saturday, cut their interest rates. we know that people like cheap

money and we are seeing a rebound. .ollowing that 7.4% good to see some green coming back on the board. up by about 2% in all of the banks of the shanghai composite. gains seeing some great coming through from all the banks in china. it is a little bit of a different story across the rest of the agent region -- the rest of the asian region. we are those greece concerns weigh on sentiment. high.lity is also very attend a volatility index advertised for quite some time. some ofei carrying back those earlier falls, most likely due to these.

the japanese index has had its biggest slide since january. the nikkei currently at a two-month low. still waiting on something coming through in australia on the metal prices. about -- down by about .201%. we're seeing a bright spot in china. rishaad: shares are up marginally at the moment. huge fox.g in in the great market, it was that much more than this. on top of that, i have to ask you what this company does. reporter: it is an investment company. it has developed a lot of tech companies like china car rental.

its ipo was priced at about 14 2050.estimated estimated range -- 2015. it is a tech focused company so investors are willing to give it a little bit of premium. it gained in a great market on friday. in terms of valuations, how does it stack up? you mention some of the companies and competes against. it is trading at about 13 times estimated earnings this year. legend is slightly more expensive. but investors are willing to pay a premium because it is more

focused on tech companies. rishaad: how about the appetite for ipos? hong kong ipos have raised about 17 you want -- about 17 yuan so far this year. rishaad: let's get you back to our top stories. greece is front and center. base.l controls are in banks are closed and the implications are being felt around the world. what do we know that we did yesterday? yesterday? idn't reporter: we knew that the lines .ere building up to get to atms

especially in places where cash .s used more than credit cards did post capital controls. 60 euro withdrawal limit per day. banks will be shut at least until sunday. it covers both local and foreign banks. if you have a credit card or debit card, there are no restrictions. what this does is most payments are basically frozen abroad. things for imports, transactions, that sort of thing. what greece has done, is that they stepped up a special committee that will be in charge of deciding which payments can go through for what they call essential imports, things that they call medicine and fuel. ecb capping their

liquidity assistance. there has been a lot of chatter and social media. what have people been saying? reporter: let's get to our to as has had to say. many asked what would happen after this referendum. we all know that his party is advocating a note to the referendum. let's get to the next one. the dignity of the greek people, he says, will send a message of hope and pride to europe. yanis varoufakis, the finance minister, he actually put this up 13 hours ago, so way before the capital controls. with the ecb capping, they really have no choice but to

stop the bleeding. is.ainly it rishaad: the banks are closed, and they are going to be remain closed until after this referendum on sunday. reporter: they will be shut at least until sunday. atms will come online midday. news coming up with a accident.topic #gr i guess his last point there, if the focus of the ecb is limiting .he fallout rishaad: thank you very much. you can find more on that story anytime or anywhere. just download the bloomberg application to your mobile or

tablet. the other top story we are covering today. china's central bank cutting rates for the first time -- for the fourth time since november. our chief agent economics editor is with me now. it is quite an unprecedented cut, the triple-r. one has to ask, what prompted them? reporter: just like alan , people are saying you can't really remove what it is doing this time when you consider what is happening on the chinese stock market. what they are trying to do a short of confidence because it hurts consumer sentiment. we know that there is considerable involvement. it is hard to separate the slumping stocks. alsoad: does it mean they

are going to be ripping up their economic forecast? is it a part of that? lookter: it is not a great if they are coming in to shore up equity prices because that is a dangerous game for central banks. i think where they are genuinely concerned are signs where the economy is stabilizing in china, but they are not there yet. it is quite a fragile recovery. they have work to do and that is maybe why. rishaad: are we likely to see more of the same? reporter: some economists are saying this one came sooner than expected. so, to this feeling among economists that they might hold , but i don't think people

are saying it is finished completely. rishaad: shanghai composite started off on a fly. it is now down .3%. when tweet coming through saying that if they didn't bounce up today then you are in dangerous territory in terms of a bubble. let's check in on some of the other stories we're following today. intosplitting the company two. paypal will take over the digital payments business. they are traded on the nasdaq -- paypal will begin trading on nasdaq after the 20th of july. the crisis over faulty airbags is weighing on honda. they have revised down their profits about 7% because of the cost of recalls. honda did maintain its forecast this year. confirmed and eight

fatality in a honda equipped with a takata airbag. the sales partnership between suzuki and vw could be coming to an end. efforts for vwt to sell back its stake have concluded. suzuki's president says the company is embarrassed by this long-running arbitration story. up next, pboc cutting rates. says that this year would be a pivotal one for the global economy. it is still up in the air which way we are pivoting. ♪

rishaad: we're back with a breaking news story. in official now

bear market territory. it started off very positive this morning but then suddenly the whole thing with the other way. on. is what we have going quest stories making headlines around the world. the sri lankan president took office in january but parliament remains largely loyal to his present -- to his predecessor. the president wants parliamentary support during this, the final stages of sri lanka's civil war. the plane attempted to fly around the world powered only by the sun is sent off of its most dangerous mission yet. solar impulse left nagoya heading for hawaii earlier this morning. to divertwas forced

to japan after leaving china on june 1. the leg to hawaii is the riskiest because there is no way to land. tunisia has launched a .ationwide hunt for suspects at least 38 people died in what is tunisia's worst ever such attack. the killer has been identified as a 24-year-old student. he was shot dead by security forces. authorities say he acted alone but had accomplices who supported. the so-called atlantic state group says it is behind the .illing rishaad: joining us this week, arthur law.

let's start off with greece. capital controls, banks shut before next monday. guest: i think that the referendum gives a lot of uncertainty to the market at the moment. you suspect that the idea may come up. was unprepared and then cooperated. somenk the ecb has taken measures. i think that the long-term that the european community will probably suffer more than the core community. rishaad: the effects of it have been effectively sterilized.

especially with this part of the world. i think the direct implication to the asian economy in terms of trade, in terms of direct financial connection. it will be short lived in terms of negative implications to asia. i think that will be more implication to the currency and that will lead to a more profound implication globally. look at i'm having a these absolute violent movements taking place. , but weed up 2.5% plus went down into the red by one point percent, and would you believe we are positive now? and this is after just 17 minutes of trading. i think that the global risk market this morning will

probably be overpowered by the greece news. at the same time, you have a rate shut -- have a rate cut in china over the weekend. rishaad: you would think after that we would be seeing a huge bounce. rrr cut in the other cut is expected. rishaad: i don't get was expected. we would have seen movement to the upside in the past few weeks. earnings come the out and it is not that great. i think you should not see a significant bump. medium-term,in the it looks likes to me we should return to reason. rishaad: what is your take on

this? not the implications for the stock market because this is a dangerous game. arrestone thing, start -- help to arrest the slow growth in china. what is currently going on in china, you need to think about who we let to. governments need to cut more rates and expand to help support. rishaad: the question is, is it working? work: i think it will because they seen in any state owned enterprises unable to get funding come out to tap into the market. becauseore new names they can't get the local financing.

we have looked to .reece, look to china now we have chinese pmi and then in the u.s., earlier than normal .ata guest: we think that in the near term, the local economy will be stabilized. in terms of the u.s. side, we think that core recovery will remain intact. think that it will come out with a slightly positive total. rishaad: thank you. the shanghai composite has gone negative again. about togoogle search step out into space.

♪

rishaad: space exploration has always been a costly business, mainly funded by governments. elon musk and richard branson stepped into the void and googles want to join. it is launching a competition to entice companies to going to space. , a raceules are simple to and from the moon. there is history to be made in cash to be one. $20 million for the first privately funded team that lands on the moon, drives a short distance, and transmits pictures back to earth. hakuto is one of

the teams taking part. the robot weighs only four kilograms, has a 360 degree camera. the team has been testing the rover both inside and outside to gauge its mobility and range. the team leader says such a compact machine offers plenty of possibilities for space exploration. >> it could be used for delivery services to the moon. there is already a demand for that. there is also demand for collecting more data from the moon. >> a u.s. company is also taking part. >> our approach here is to split the cost with some of the teams and also to split the price.

that way, when we land on the moon, we will deploy multiple rovers and they will all drive out at once together to try and get the 500 meters as fast as they can. it would literally be a formula one race. be a place for economic development. >> that journey starts here with private enterprise. for we take a break, we're going to the past. is top of thed" box office for another weekend. it raked in more than $54 million. reaching halfd" $1 billion in u.s. tickets dale's just 18 days -- in u.s. ticket sales in just 18 days.

coming up, a legend having a successful debut in.com -- a view in hong kong. ♪ we live in a pick and choose world.

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rishaad: it is monday, the 29th of june. this is "trending business." without a look at what we're watching. the greek prime minister urging a no vote on sunday. that sinking feeling with the euro are a concern for the future. capital controls are in place after a record money was pulled

out. twitter @on rishaadtv. let's have a look at the markets across the asia-pacific. it is like a yo-yo over there in shanghai. reporter: it certainly is. i think that china doesn't want to see greece get all the headlines because we are seeing a lot of volatility on the shanghai composite today. this big drop here, where looks like the shanghai composite was actually going to get into bear territory. then we have been seeing a rebound back and forth in and out of positive territory. it is coming in flat at the moment but of course investors are reacting to that rate cut decision by the people's bank of china.

industrials are a little bit lower. region, weround the are still seeing that selloff. those greece concerns weighing on investor minds. the nikkei is down 2%. the us trillion market is also continuing to be sold off. we are seeing weakness across much the rest of the region. in hong kong, the focus is very much on that ipo. we think most of the stocks on the hang seng are negative territory and early traits. galaxy is down about 3%. japanese retail sales out -- retail sales up by about 1.7% in the month of may. topsy-turvy session.

a lot of the news is being dominated by greece and the debt crisis. banks are closed now until after that sunday referendum. david is here with the very latest. it is certainly going to be a very rude awakening when greeks start to get up in a few hours. this capital controls were imposed at 3:00 a.m.. like the only backstop authorities had. atmsw long lines across and the shifted from atms to gas stations. by sunday night local time, some of them run out of cash. saturday, and this is

according to two senior bank officials, as many as 500 atms have artie run out of cash. that puts that amount as roughly $1 billion. if you think on these capital controls. banks will be shut until at least next sunday. there is a 60 year withdrawal limit. a lot of spending over the next week really will be done by a .redit card greece has set up a special committee to approve payment steamed essential, things like payments for imports, fuel, medicine. an abrupt change of events there. they're looking at how asia , the, the euro is falling

biggest drop i think of the euro against the japanese and something like 2.5 years. it is falling to a seven-year low. certainly a very steep drop for the euro-dollar. back to you. we will have a look at that story later the show. tweet us your thoughts. the chinese central bank cut interest rates over the weekend to a record low after the biggest two-week china stock plunge. also at the moment, here's a look at some of the headlines. reporter: it is signing day.

the asian infrastructure investment bank takes another step forward today as its members gather for a shining ceremony in beijing. the philippines will delay joining, but will be an observer at today's proceedings. analysts tell bloomberg tv that the formation of this financial institution is a major achievement given that the u.s. is not a member. australia joined once the major european powers joined and pledged $720 million. aiib's aim is to fund infrastructure production. leaders will take the agreement back to their productive -- to their respective countries. it will have an authorized capital of 100 billion u.s. dollars.

to china's campaign against corruption, some of the leading .tate-run companies been foundned firms to have falsified revenue and profits to the tune of $8 billion. that's according to china's national auditor. the focus of the audit was in revealing violations in the approval, allocations, and management of public funds and state-owned assets and resources. it found violations in led to costs in assets. they also found that in the financial industry to a total of $2.7 billion, including the china export and credit insurance corporation.

it took the records of china to 2000ent bank's back five, and the auditor says it broke rules. the others were found to have given out loans to unqualified projects and companies between 2008 and 2014. cases have been handed over to relevant parties. we will see what the next step is in the anti-grass campaign. we are also looking at the crisis over faulty airbags that is weighing heavily on honda at the moment. they've revised down their profits in the last year about 7%. operating profit came in at about $5 billion. they wanted to maintain their forecast for this year. in a fatality has also been confirmed in a honda.

that is a look at some other stories we are keeping an eye on this morning. rishaad: the chinese central bank cutting interest rates over the weekend. the largest chinese stock plunge over two decades preceding that. it reminds me a little bit of alan greenspan and what the fed did in the late 80's. >> a student of the markets probably remembers the greenspan put. is common practice of cutting interest rates at a time when stock markets were perhaps less than stable. shaky markets getting a bolt of liquidity in the united states. that is what some are comparing to what the central bank of china did on saturday, by triple cutting. they cut the benchmark lending rate by 25 basis points, the fourth such cuts since november to stoke some growth in this

staggering economy in china. they also cut by 25 basis points the deposit rate and also, by 50 basis points, the reserve requirement at some of china's lenders. whether it is a coincidence or not, to lift up the staggering stock markets, that we will have to see. the shame guy composite index vacillates between positive and negative territory. rishaad: another story we're following for you. japan is mulling a politically dangerous move to cut benefits. coming up next, how the recent change ipos in hong kong and china? you will be hearing from an industry consultant. ♪

rishaad: >> the stories making headlines around the world. the government imposed capital controls over the weekend, but a record amount of money was withdrawn from accounts. greeks are only allowed to withdraw 60 euros per day. greek prime minister alexis tsipras caught negotiators off guard calling the vote of the a twitter. more than 400 people remain in hospital after almost -- and almost 200 in intensive care after fire engulfed a party in taiwan. tragedy happened after colored powder thrown into the crowd accidentally ignited. they could face charges of the

-- charges of the professional flight to a spacex the international space station has ended with an explosion. the cause of the blast isn't yet known. it is the second u.s. resupply mission to fail in less than one year. chinese the conglomerate legend holdings .ade its debut the pboc cut its benchmark lending rate to record low and also cut the reserve requirement. our next guest is the author of "ipo: a global guide." great to see you again. legend comes to the market today. cents -- it iswo

probably near to the top of the range there as well. what is the story here? half of the deal was already parked away. so you could say the banks already done half of the job. the book was also said to be .retty strong it is a 2 billion u.s. dollar ipo. rishaad: that is in case you want to raise more money. guest: you can then raise more money. in this case, the timing is horrendous. given that all the markets in asia are down and they are trading slightly up. .ishaad: we are down now i think it was $42.98. .ery important

does all this -- he said it's a horrendous trend of timing. this voracious appetite for these stocks and ipos in china and hong kong, is the party over? guest: i don't think it is. i think the markets are going to continue to be pretty volatile. i think we very much will continue to see a binary outcome for ipos. some will do pretty well. it has actually been binary for some of the bigger markets. the small caps have been the real winners in hong kong. that's not sustainable and it is supply and demand.

when you're talking about very small quantities doesn't mean an awful lot. i think investors will apply pressure and demand valuations that a realistic. the money is there, and i think as long as you have a balance between supply and demand, the chinese market will continue to do pretty well. about $16 billion for an ipo. the largest ever run for capital markets in the first six months of the year. rishaad: in the last two weeks, we have seen declines take place -- guest: two sharp corrections. rishaad: is this part of a big correction or we perhaps bottoming out. i think with the two corrections, the market is still

up over the last year. i think the market will continue to increase but a steady pace. in hong kong, we have 12 transactions that should come to market. in the first week of june. cut.ad: you have a rrr .ou would expect i think the shenzhen market was down last time. guest: i thicket tells us there is a lot of uncertainty in the market. a lot ofd of the day, the people are going to cut interest rate to make that cheaper. rishaad: there is talk that

margin trading and margin lending. guest: people will have a pretty strong reality check. i think we will be seeing a pretty sharp correction. i don't know when that will happen. rishaad: how far is the rally that we have seen down to house prices and the housing market in .hina looking fragile guest: that has had a significant impact. have to park your money somewhere, and what can you do ith it in china? real estate. rishaad: out of all the ipos this year so far, which one has been the most interesting for you, and which one has been the most successful? guest: i would say gs securities

in hong kong. certainly compared to some of the other ones. in the pipeline, more in the financial sector. i think we're going to see transactions by insurers as well and i think we will see transactions the medical or health care sector as well. rishaad: thank you. next, committee capital of indonesia becoming one of the aiib's top 10 investors. ♪

rishaad:rishaad: rishaad: the asian infrastructure bank in beijing for a formal signing. 57 countries committed to the project despite american warnings about governance and transparency. indonesia has confirmed the level of its involvement here as well. this is a significant day, is it's not? reporter: the finance minister signing articles of agreement for the asian infrastructure investment bank. indonesia will be one of 57

founding countries by investing $672.1 million u.s.. there will have 20% aid in capital and they are expected to in early 2016.s this is in line of the speech before leaders obtaining the summit last april. last out with criticism against the world bank, imf, and asian development bank, saying they should know long rely on these three institutions. indonesia in terms of covering infrastructure investment needed.

and perception programs from railways, roads seaports, and land that need large investment. the brown -- the groundbreaking --200-7000 kilometers 200-7000 kilometers. rishaad: thank you. we are talking about this failed partnership between suzuki and volkswagen. it could be coming to an end. arbitration to cause vw to send the shares back. that was after suzuki agreed to purchase engines from a rival. the suzuki president says the country is embarrassed by this long running arbitration. the japanese government is telling civil servants that they

are working to improve their work-life balance. the campaign would encourage employees to come into the office earlier to ensure they leave at an earlier time. participants will also be encouraged to forget about unnecessary overtime. vietnam has eased curbs on foreign investment. from september, investors will be able to increase their own inks from a number of industries. foreign ownership of banks will remain cap at 30%. let's get a look at the story before we go to the break. topping the box office in america for another weekend. the monster movie raking in more than $54 million. who did beat?

out" and "ted 2." it is the fastest film ever to reach that particular milestone. the shanghai composite having a real sea salt right today. it has been up at the open about 2.5%. the japanese market on its way down. korea, taiwan, singapore looking like this. this is what is going on in the broader asia-pacific. ♪

>> a look at our top stories, greece shutting the banks, lenders remained closed for at least one week, only those drawings are -- drawing 60 euros per day after a referendum with decisions and talks taking down late on friday and the freezing its credit lines to banks. the biggest two weeks stock grabs in two decades, a record low over the weekend with fourth

production since november and the one year lending rate lower -- 4.85%. send 90%, that is the middle of this month, global asian shares down the most in two months. let's look at what is happening and what is moving these markets for the moment. here is juliet. shanghaiere on the compensate it is fluctuating wildly, up by four point 41%. -- 4.41%. you can see weakness coming through generally are ross from the outer asian markets. driving the market -- driving the movement is that rate cut

from the bank of china on the weekend and of course, as you can imagine investors knowing that money is going to be cheaper coming through on the financials with this technology center impacting the shanghai and mimicking those gains somewhat, down by about 4%. of other stocks that we are watching today around the australia the law firm their continuing their 23.5% aftere, down admitting a u.k. accounting error that has had an impact on its books. the health care sector also weakening. woolworth's had a great run on friday, pulling back in the australian market today. ofan, we had a little bit industrial data out, weaker than expected, down 4% on the year, we have seen some of the industrials in the red.

retail sales are actually higher in may. not really giving much of a leg up to those retail stocks. down by about one point 7% at the moment. certainly on the shanghai it is moving and we cannot up with it. >> greece of course is the big egg story. mohamed el-erian, amongst other things of bloomberg columnist. president obama's global development council, former cio at pimco as well. welcome to the program. well, next sunday is this referendum. it really came out of left mohammed: it it? did. he felt the only way that he could deal with that was by going to the people and asking

their opinion but he underestimated that it would be fromdifficult to navigate the time of the announcement. these are going to be very difficult and dangerous days for greece. >> absolutely. a little while ago you were tweeting that this could lead to what you call the grexit in -- a gr accident. there is no plan b. suddenly the payment system stops. the banks are closed. the stock market is closed transactions become very difficult. evil run out of cash. suppliers cannot get there is in. this is classic. we saw it or in the russian christ this.

the logic of the sudden stop is the massive economic contraction, social unrest, and it is going to make continued membership of the eurozone very difficult for reese. >> indeed, that's what everybody really wants an answer to. on sunday they encourage the finance minister's party to vote no. i would guess they need to get a very solid no vote out there to get the leverage they want in talking to the eurogroup. there are two issues. one, you out of referendum? and that ability is a road in quickly. if you want to put a gun to my head and say -- give me the probability right now the greece in the eurozone in the next few weeks? i would tell you 15%.

--re is an 85% probably will probability that it will be forced to leave. not because it wants to but because it is no longer able. apart in your view on the two sides? mohamed: substance they are not our apart that the problem is that there is no trust and when there is no trust people require you to do things up front. the list of prior actions of what greece had to do was very long. there is a fundamental difference of view. when you cannot agree on the past and there is no trust it is difficult end up with an agreement. what compounded all of this was an enormous amount of internet.

insults, if you like, accusations and counter accusations that quite versatile. -- personal. trust, but inout your view both sides are blaming each other. who is at fault, then? look, this is a tragic situation. we must not forget the citizens who have been suffering for five years already. youth unemployment is over 50%. they are about to face an even bigger depression. the biggest tragedy in all of this is what is happening to the greek citizens with soaring levels of poverty taking place. who is at fault? everyone is at all, i think. this has been an accident in the making for a number of years, tof like think an inability

understand each other's point of view. europe should have been most forthcoming. >> in other words, both sides are as equally responsible for this? correct. therefore you will see an enormous blame game in the neck extend month where fingers will be pointed all over the place. about the mention average greek citizen who is going to have to bear the -- where the brunt of this pain. how long will he get?

mohamed: bigger parts of the greek economy are coming to a halt. it is the oil in the car, if you like. everything else has enormous difficulty functioning area when you close the banks for several days, you basically trigger an economic depression. we will be seeing economic activity coming down significantly. international trade will go lower significant he. the government will have to issue iou toss. situation thatc is difficult to control underground. >> some are saying that they will have to print new money. mohamed: absolutely.

the only way they will be able to pay their pensions and the bills is through new government iou's that will evolve into a parallel currency. >> let's talk about the wider effect of the crisis in greece. our people actually perhaps the mohamed:ine about it? there are three trick -- three channels of transition. economically this is not a major disaster for the rest of europe or the global economy. second element of transition is financial. you live in an interconnected them and there are some uncertainties. one, to the extent that it is being felt in markets today, it is a technical one.

already asset prices were elevated to begin with so that big -- get a across-the-board selloff of financial assets. the key issue that will determine the extent and duration of the selloff is the european central bank. if the central bank steps in with a larger asset purchase program and therefore creates a firewall around the peripheral bond, those of italy, greece, portugal and's name, the ecb can go a long way with limited contagion. >> mohamed el-erian, thank you so much for joining us there. well, it's not the only story today, there is the matter of

the chinese central bank moving down to new lows at the moment, we haveing the economy a look at the act now. it is hard to separate these two. some economists out there are drawing comparisons with alan greenspan. there is a bit of a name going in which time will tell , but i think that it shows that these product makers are nervous though they have four time zones with other measures as well. >> that is just it, isn't it? it is a dangerous game for central bank, people say, to get involved with share trading.

>> it is extremely dangerous. if they intervene every time it goes awry, good luck. one of the things in china is that there is a retail investor component in the index that cannot be removed from the real economy when the stock tanking. that hurts consumer confidence. >> this is going to create volatility, isn't it? >> it becomes a vicious cycle, but i hope a are looking at a bigger picture here with a floor on their stocks with confidence in their system and at the same time more in industrial exports and real estate sector. >> where do we go next? are we going to see more loosening of monetary policy? >> some say that it will come sooner than expected.

that they could not have one right. maybe they are all the field for a little while, they would likely not step off to see the data flow, but they are not out 40 gamesme completely out according to economist. >> we will have a look at the latest chinese moves. we have had this world leading stretch of interest up 30% of the moment. we will be looking at expectations. ♪

, facing early elections in driving reforms. parliament remains largely loyal to his predisaster.

the president wants parliamentary support with investigation into the finals ages of their civil war. a plane attempting to fly around the world on its most dangerous mission yet. impulse headed for hawaii this morning, the plane was headed to japan and china on the first of june, this leg eating the riskiest. -- being the riskiest. holidaymakers, the worst ever such attack, the killer identified as a 24-year-old student. he was shot by security forces. the interior minister says that he act alone one so-called islamic state says they were behind the killings. chinese equities day, the

composite briefly entered into bear market terrain. let's bring in bloomberg intelligence. it is a fascinating -- what on earth is going on? up, we were down, it seems we are up again now. >> i think that this is the tension that we are likely to see through the rest of the summer. we obviously had a massive move. last friday.all you have to go back to 2009 to find this -- similar drop. you have got hedge fund investors who might be looking at this. >> what does that tell us?

pictures, theof big valley that we saw in 2006 and 2000 them in, it shows as well that in 2006 and 2007 there were three times when we had aggressively larger corrections and then another significant bounce. we have had three progressively larger elections. the similarities continue to be serious. on the positive side, you have got the opportunity of taking advantage of pboc policymakers who clearly seem to be reacting to market and certain. cut.is now the fourth rate it was a double cut this time. you have got ongoing reform. most importantly from a stable active you have recovery from , global moneyt coming in and the tension over the baton being passed. impacted but has this

-- i guess we have seen eight shares in asia, you can discount that figure, but it is getting wider, isn't it? past couple ofe weeks we saw a big selloff in the a market. nfc i was only down 2% in china. listedlook at the dual stocks in particular, there is premium.us the 105% that is down a bit from where was, but still a reason. >> ok. >> this is getting to the chart with it see right here.

rarely moving. here? >>we go from that's what everybody wants to know. standpoint,uation two weeks would be fine. again, a does back to -- are you looking at that risk, china? the hypergrowth technology stocks there, we have fallen from 70 times but we are still at two times. >> snap it up. >> composite has fallen but we are at 31 times earnings. shanghai composite is back to a multiple. if you were looking at china stocks here, it's one of the fromest market globally

bloomberg intelligence. next, careful with charging cable. is this a hit or a miss for mobile devices? ♪

>> this is "trending business." ever wish you had been in charge of a phone or tablet without having to plug it in? a new range of furniture, but is it any good? we are putting it to the test. comes in tangle of charging cables. at home, on the go, it's seems like our wireless devices are constantly attached to wires.

this is the new ikea line of wireless charging projects. $10 $119.e from it uses a wireless charging standard supported by most players, it's up for apple. if you want apple you have to buy in adapting case. but those are really ugly. and it he enabled phone drop it onto the pad to charge. it doesn't always work, though. precise to be very about where you place the phone. another downside is that it does not charge as quickly as it would if you had just plug it in. part of why is because it will stop charging as soon as you pick up the phone. and when it's on the charger it generates white a bit of heat.

it will automatically shut off when it gets too hot, but he is never good for a phone. >> the funniest part is they recognize the short comings and have added a u.s. report on every piece so that you can plug your phone in the normal way anyway. >> at the end of the day it's not that different from having your phone plugged into accord. we don't need wireless charging, we need that are batteries. >> let's have another look at the markets at the moment. , positive atanghai the start, then it went negative and is now down again. 1.8% lower, a lot of capital on sunday with banks are

many closed until then. ♪ we live in a pick and choose world.

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>> top stories of this hour, the greek debt drama comes a full-blown crisis as the people get a chance to speak on sunday.

euro weekend negotiations collapse, there are growing concerns for the future of the currency. the human effect, banks are closed, capital withdrawals are limited. coming up in this hour, the chinese trillion dollar penny stock. the shanghai composite treats investors to another wild ride. all of that and much more this monday edition of asia edge. >> keeping an eye on the markets, we have white a wild swing coming through once again today. the banks have a bit of a good rally on the bank of china, cutting rates and dragging the market lower. continuing on those