and 14. the finance minister -- and 14 -- in 2014. the finance ministers is that is the plan unless something happened. ride if you are a chinese shareholder. david: you have the bump up mid-tuesday so if you measure it from friday we are down 11% to 12% from the regional benchmark. you look at these on the china index and those are being crushed this week. get the chinese index, there we go. 4% down. the index, at the start of june it was at 4000. underwater in a matter of a week. corporate down.

another thing and want to know, the first time since the recent that the oversold. oversold terrain. that is below 30. asia isadly speaking looking more negative than 30 minutes ago, down .3%. about the clearest leave wall street, a flat session. clearest-- not the lead it from wall street, and flat session. 23,000 new jobs in the unemployment rate. it is the participation rate that is continuing to fall the best since 1977. since 1977.

that tells you something else. this, we havee been talking about iran or prices with a big drop -- iron ore prices with a big drop overnight. the heaviestit was weighted stock on the index and if you strip that we are down 4%. this is supposed to be in the positive right now so that is really doing the damage. is a bit above water -- hang s water.volumesbove are flat. china is heading for the largest three-week drop since 1997 as david was alluding to. regulators vowed to punish anybody manipulating shares. it seems that don't serve mounting over the efficacy of government efforts to support the market. definitely panic going on in

china right now. authorities making late-night announcements almost every day this week to stem the market slide that continues this weekend yet stocks have fallen sharply. in addition to last friday, the shanghai composite index closed for the largest three-week fall since the asian financial crisis began. thebenchmark down 28% since begun june 12 and shenzhen down 33% over that three-week period. three weeks ago today the shanghai index hit the. -- peaks. the size of the french economy. on friday the regulator announced using of market trading rules -- easing of market trading rules allowing investors to use homes as

collateral. efforts were met with another selloff and again this morning. now the regulator is launching investigations into shortselling activities for stock index futures. the pro bowl farkas of -- you focusocus -- probe will on short-term manipulation. infront to stem the -- writing to stem the regulation, regulators are starting to look desperate. i want to give you the quote of that thebernard saying mood among investors is emerging on panic and it is extremely hard to call may bear in a rage. detail. more in the story. coming up we want your opinion on the event -- more details on the story coming up.

we want your opinion on the events. ore miners on the way down, the slide set to continue. that is what experts say. the question is, how much iran or is leaving australia? .nd you have the answer, paul paul: 38 point 4 million tons, a record in june. up 14% from the previous year and broke the previous record .et a month ago that is the main port in western australia where all of the iron ore comes from. the pricen impact on which we saw slipped 5% on tuesday. we are down to $55 per tone for iran or -- ton for iron ore. the government is forecasting a

10% rise in exports next year and later in the year we have a new player, the mine which is then many years in the making which will start shipping in 2014. the outlook is similarly grim, ton.orecasting $50 per looking bleaker. that is having a lot of pressure on minors today. fortis q down 5% in early trade. paulad: base for that, allen in sydney. let's look at the other stories we are following today. juliet as the roundup. claims thatimf greece will need another 40 to makeu.s. dollars debt sustainable as the country prepares for sunday's referendum. an.ce fired pepper gas

the prime minister continues to urge greece to vote no. european leaders are bracing for more political upheaval, whatever the outcome. there is noaying easy way of restarting financial aid. u.s. jobture on the front with employers hiring more workers as wages stagnate. 200-3000 jobs- were added last month but more -- 200 and 3000 jobs were added just remainut we stagnant. 203,000 jobs were added last month but wages remain stagnant. one positive element was the drop in the number of long-term unemployed to 25.8%, the lowest

level since march 2009. alreadyconsumers have propped up the property markets in sydney and the u.s. and now they are turning to japan. real estate agents in beijing are organizing tours to tokyo and osaka. the demand is driven by the wiki yen and excitement over the tokyo olympics. chinese investors are pushing home prices higher with prices in tokyo at a record high, up 11% over two years. the japanese housing market is likely to be positive news for government which is trying to reinflate the economy. rishaad: we're going to take a break but later in the program, yes or no? the crucial referendum in greece and what could happen if they decide to go it alone. after this break, we'll look at why japan is sticking with the tax hike plans despite

inflation. "trending business" returns in a few minutes. ♪

rishaad: let's have a look at stories making headlines around the world. the report into the plane crash in taipei says that the pilot shut down the wrong engine. his colleagues described him as nervous and hasty in the aviation safety council says that he failed a test as recently as may of last year. 23 people died in the crash. the report quotes the pilot as saying pulled back the wrong throttle . talks in are holding the margaret problem in southeast asia but did not discuss the refugees fleeing myanmar. the meeting was a continuation of talks in beijing. a trust fund will be formed to help migrants but they say they

will not become involved in domestic issues of individual countries. washington has formally requested the extradition of seven officials in switzerland. they will be arrested in zurich. they are accused of corruption ocation of world cups and broadcast rights. say that thes accused siphon off at least $150 million over two decades. japan still intends to raise the sales tax again despite the economy's continuing weakness. the finance minister says that unless japan is hit by an exceptional economic crash the rate will be lifted in april of 2017. joining us is kathy, the vice-chairman of goldman sachs japan. what do you make of the announcement? y: well, like you stated, it

would certainly be deemed inappropriate for japan to further tighten fiscal policy by raising consumption tax at that point is the economy was suffering. but if you look at what has happened to japan in the last two and a half years since abe came to power, gdp has grown and the stock market has doubled in corporate profits -- and corporate profits are at a record high. property growing at 7%, all-time highs for condominiums. it does paint a picture of economy is struggling so assuming the trajectory continues, this is two years away from today, i think it is prudent for the government to raise the consumption tax because we all know that the structural headwind that japan faces is a large fiscal burden. again it is data dependent but assuming that we are on track i

do not disagree with the finance minister's comments. rishaad: we don't agree with them, either. , the prospect of it is seemingly still apparent. also, what about growth? whatentioned nominal gdp, about the headline number gdp, 2% growth in 2% inflation target -- and 2% inflation target. is that achievable? kathy: possibly. it depends on your time horizon. i think people forget that the number one driver of inflation from my perspective is service prices. 60% is services and what drives service prices his wages. and what drives wages will be -- what drives service prices is wages. tightermarket here is

than in the last 23 years. there are 20% more jobs available been japanese jobseekers. because of the tightness, employers are biting the bullet and paying more wages. you have not seen that reflected in real terms because of the tax hike. a muted nominal wage growth. cds andforward we will summer bonuses and the base wage will go up by over 2.3%. that is going to happen started increased summer wages and the base wage will go up by two .3%. hopefully this will set the stage for a stable environment where a fiscal tightening can actually be absorbed. rishaad: i guess you are factoring that in your recent upgrade in terms of the border market. the topics suggesting that you have a target of 1850 from 1770 before.

as it gives person we should see a move to the upside, yes? kathy: correct. having said that, like i said in that piece, we are expecting the market to be more range bound. due to greek issues and also domestically, controversial issues on the parliamentary agenda. reinterpretation and nuclear restart, these are divisive issues and you have seen the support rate taking a hit. in the next several months department will be range bound but heading into the first half of 2016 with higher wages and better inflation, ongoing corporate profit expansion. a think the market can do 23,000 nikkei level. rishaad: what we have seen is an inverse relationship with the yen depreciating and the market going up. is the inverse relationship

breaking down? absolutely. i think if you look at the lessons of history you will see that this is more the rule than the exception, it is unusual for the stock market to continuously rally against the backdrop of a continuous weakening of the japanese yen. the rallies akin to we have seen in past episodes were the young is stable or appreciates -- wheer the -- where the yen is stable or appreciates. it has to trickle down to domestic. if it shifts to domestic demand, the demand declines. decoupling is natural and understandable and expected at this stage in the growth cycle. rishaad: very quickly, the greece crisis looming a long way

away from your shores in japan but the you foresee any impact if this should rumble on an on? -- and on? beyond thekey issue short-term what happens after the sunday election is will this have broader contagion effects or risks that affect non-greek euro zone economies? course europe is not as high as the united states and china in terms of trade relationships with japan but europe is not insignificant. the question is, does it brought about? out --here -- robin broaden out? as far as our colleagues in europe, their view is that it will not spread to contagion risk. it is not like episodes in the past. having said that the negotiation process and the political

friction is likely to be prolonged for quite some time. thanks so much for joining us from tokyo. ui from goldman sachs. up next, could greece's capital can kill the health care system? a special report from athens coming up next. ♪

rishaad: we check in on the corporate stories making headlines. yvonne: alibaba is said to be looking for a bigger office in seattle. sources told bloomberg the company is considering space east of the city that could house 100 employees. alibaba currently has 25 staff in seattle and san mateo, california is the head office. shed the pause button on the sale. you may go back on the market if the ceo changes his mind. shares fell 10% in new york. does less sales jump in the u.s. after sales surged 32%. they beat estimates to deliver a record 111,000 model s sedans in june. that brings it to less than 40%

of the sales target. deliveries are expected to increase with the introduction of the model x. corporatethe top headlines, i am yvonne man. rishaad: the greek health care system was in a bad state before the crisis flared up and things look set to get worse because capital controls are putting a stranglehold on the supplied of vital medicine into the country. tom mackenzie visits to health care center in athens to see how it has been affected. >> you have the money in the bank but you cannot buy your medication because you cannot pay your supplier so you are going to tell your patience you do not have the medication. not the way people think.

>> whatever is imported in greece, we will have shortages and we will have problems. >> i am not going to call it a pharmacy run. but what are you going to say? for 20 hours we give medication and the rest of you go home. or are we going to be giving until we drop or the shelves are empty? and then what? greece, now we have 3 million people without insurance. the system right now in greece, is not good. now we have patients.

have, aple that we lawyer. patients who many were directors in the business market. this medication is 3 in 1, let's call it. not 30 for28 pills, the whole month, and it costs 25.38. those are the medications that we really need and we never have enough. if we had a truck load every day out there, we would use it. i am positive it will get worse and i just don't know how worse. we should close our doors and go home and let the greek government, whatever greek

government, take care of the citizens. so, over the referendum pans out you are covered on bloomberg. special coverage of the vote monday morning. 6:00 a.m. if you are in hong kong or singapore, 8:00 a.m. in parts of australia. look at the trading day, another torrid time on the shanghai down with nearly 7% the worst decline in this particular market since 1997. it is a declining picture across the world but none more so than shanghai right now. approaching the 7% loss handle at the moment. this is "trending business." ♪

truly ideas into action. the clinton global initiative attracts world leaders. the goal, find solutions to international problems and establish commitments to improve lives. on this bloomberg television special, we take you to the cgi america meeting in denver, colorado where a discussion on the wealth gap featured housing and urban development secretary william castro. >> we want to address the affordable housing concerns so that more folks can live comfortably and in a decent, safe place.