toshiba falling by the daily limit.ading, the company announcing review of its accounting. this has to do with infrastructure project. this came as a surprise friday afternoon after the market, they released this. toshiba wasought rebounding. they are now scrapping the earnings forecast. angie: now they have a third-party team to look at the accounting. also, adr for toshiba plunged as well really indicating a drop. zeb: yes, they foreshadowed that it may continue. look at that. ok. there we go. angie: that is quite the punch. zeb: precipitous drop. that is what markets say when you fiddle with earnings. david: i am watching how cost akata. t net loss not coming in as large as expected. $250 million. it still made money, but it goes down further. no dividend this year. up $280-- profit million revenue. maybe they are thinking things are stabilizing there. david: let's hope so. it was a very turbulent year. it was a big problem when it comes to pr. angie: no doubt. somebody that has a pr problem is that she but today. da

what is going on here from toshiba?e are seeing the fallout from the accounting probe a launched on april 3. at that time they only said there is some potentially problematic accounting in their construction business. then on friday they suddenly ,ithdrew their annual forecast canceled year and dividend and said they might have to restate earnings going back as far as 2013. we know very little about what these problems are other than their power systems, social infrastructure units, accounting for 11% of profits, might have understated the cost of the business -- to the business. the company isn't due to report earnings in june and we are hoping to hear more about what is happening. 17% forshares falling, toshiba. thank you for joining us today with that. let's take a look at some of the other stories we are watching. here is a roundup. zeb: the next few hours could be crucial for greece. they allow talks continuing in brussels. european creditors threaten to restrict athens access to funding unless alexis tsipras prese

japanese electronics toshiba.ny with injury forecast pending a probe into improper accounting. the price of oil has gained after rising for an 8th week. we can't do with the cfo of statoil saying there are unique opportunities. >> there are unique opportunities within m&a that is fair. and with a low oil prices, it might be cheaper. we are monitoring very closely. jonathan: "the pulse" is coming up. we are joined by guy johnson. good morning. guy: greece, clearly what happens next? payment tomorrow is what happens next. does it not get made? the language is it gets made. just the start i would argue of a difficult summer for greece. today's negotiations have been downplayed in terms the expectation of delivering a deal. very excited about it but i am sensing the tempo is picking up. jonathan: we have lost our faith in the political deadlines. last week last friday the best day of the year. bonds. the interview i'm looking for two is the big guy from pimco. guy: do you say is inflation the back? is that what the ma

manus: trouble at toshiba. shares at the company tanks as it scraps forecast pending and accounting pro. -- and accounting probe. mark: welcome to countdown. also coming up today russian reunion. angela merkel and vladimir putin meet for the first time since february to commemorate victims of world war ii. tensions remain high over ukraine. the people's bank of china opens the stimulus cap again cutting interest rates for the third time in six months. challenging the country's 7% growth target. christine hah is on the story from beijing. good morning christine. what's is expected? christine: it was expected. a few economists had predicted the right path. over the weekend, we also had consumer price growth most important, the shanghai market has tempered the rise over the last two weeks. a lot of space for the central bank to cut rates at this point. cutting rates at this moment is more of a stabilizing -- a step -- a stabilization to the economy than a stimulus. debt levels are ready so high in china. we have s

what is going on at toshiba? reporter: a plunge indeed. the shares have fallen 17% in tokyo this morning. this is fall that from the company's accounting which they launched on april 3. at that time they simply said that some other construction projects might have used improper accounting. on friday, suddenly they have withdrawn their forecast. mixed their dividend and said that they might have to restate earnings for fiscal year going back to 2013. anchor: here is the thing. the lack of information itself is troubling. how bad do you think this could be? reporter: that's right. the company hasn't been very clear on which projects were affected or, specifically, which clients might suffer. we only know that it is their power systems and social infrastructure businesses which sprawling operations that include everything from air traffic controllers into hydroelectric dams. those two businesses themselves account for about 11% of the operating profit so the damage is potentially is significant. the company is reporting earnings next month an

toshiba officials have already said they expect the firm to revise down its operating profit for the past three years up to march last year. >>> overnight on wall street the dow jones industrial average ended almost unchanged and the nasdaq ended up slightly. we go to ramin mellegard at the tokyo stock exchange. good morning and happy friday. what are you seeing on the final day of the week? >> a lot of investors are asking the question of when the federal reserve may actually raise rates given the fact that data releases out of the u.s. have largely disappointed a lot of investors, pushing back their estimation for a rise in interest rates. so that's clouding the market somewhat. but let's have a look at how the nikkei and the topix are opening. a negative open so far. both indexes trading lower. we'll see how thats develops in the morning session it notched up a fresh 15-year highs. and that's the longest winning streak for around three months. let's see if we can maintain that today. head winds may come from manufacturing data out of the u.s. and china which shows that growth is n

toshiba is also setting up a third party committee to further investigate the matter.'d like to turn back to my interview with the first female director of the u.s. patent and trademark office michelle le e. after being the deputy counsel of google, she focused her efforts on improving the patent system. now the u.s. pto is encouraging more women to enter the s.t.e.m. fields. here why she is focusing on the issue. >> i was born and raised in the silicon valley my dad was an electrical engineer. all the dads on my block were engineers. they invented things, filed for patents, and started companies. some of the companies succeeded and some did not. or those that did, they revolutionize the world. i also built a radio with my dad in the living room together and i went to m.i.t. to study electrical engineering and computer science, so i've always had innovation and entrepreneurship in my background. when i entered m.i.t., women were certainly in the minority. when i went to grad school at the m.i.t. artificial intelligence lab the numbers were even lower. so there are defi

toshiba said it's accounting review into infrastructure is likely to cut profit numbers.ion in operating profit. it is the first time toshiba has indicated the potential impact of withdrawing its forecast. adr jumps 10% following the announcement. airbus cashing in on india's drive to modernize the military. it is supplying transport planes, and india has been boosting defense spending to town to china's influence. has approvedr modi $40 billion worth of project since taking office. is said to be working with an advisor to sell investments, which includes stakes in companies in asia, the middle east, and africa. assets could be valued at $1.5 billion. that is a look at company headlines. as promised, it is time for an interview with nissan ceo carlos ghosn about recalls over safety. he told bloomberg it is going to take time and effort to overcome concerns. we have been discussing this issue for a long time. it is not always easy because we really need to check what is going on with the supplier. we need to check with customers and include the regulator in this. but i thi

toshiba tanks. shares of the japanese industrial giant are under accountingid problems.story and more when we return. mark: welcome back to the bloomberg market day. let's get straight to a check of the markets. julie hyman is standing by. julie: we have stocks declining across the board. fairly moderate declines. two fourths of 1% down across the board. we were talking about the advances we were seen in energy prices and therefore energy stocks. of course, that is being counterbalanced. stocks why we are seen declined. materials stocks, that is a big stick liner by percentage, down about 9/10 of 1%. that is wiping out the gains and then some. let's go towards materials. disappointing earnings. fmc corporation coming out with earnings per share that missed analyst estimate. taking 6%. international flavors are reporting earnings that beat estimates but their forecast is coming up short compared with what analysts had been anticipating. those shares down about 4%. let's check on rack space. this is a provider of cloud services. going into its earnings report, expectations

areounds like investors reacting positively to what toshiba said on friday.vestigating these accounting problems for a few months now and they had a press conference on friday where they made some small steps toward resolving this issue. on delay in being able to announce their earnings. the members of the committee who are going to investigate the accounting problems that they are trying to get to the bottom of. hadproblems they have had something to percentage of a completion accounting where they had long-term projects over several years and have to figure out how much profit they are going to get from those. one area is power plants where they had a power plant that may take 5-10 years to complete and they need to figure out how much revenue they are getting in each quarter but also each profit. angie: how deep are these accounting problems? reporter: they don't know if this point. they had said that in the areas that they investigated so far, they uncovered about ¥50 billion in problems, a little bit more than $400 million. if investors knew it was just

toshiba facing an accounting scandal. sharp as for another bailout. takata dealing with airbags. the source behind to these problems? bruce erickson is joining us. professor, thank you for joining us. -- this a a result result of any effective corporate governance or not enough? guest: good morning. a pleasure to be here. think global investors how for a long time had a concern about risk-averse his return in japanese countries for other risks tied we wondered if the board of directors was functioning properly. -- relative low number of directors and some resistance to increasing. at the same time until recently, performance is measured by return on equity was roughly half of that the companies in the u.s. and europe. knowelated issues -- as we , i've a nymex came along and the stock market doubled. in addition, the tragedy -- strategy. came along and the stock market doubled. onumber of initiatives based that. some amendment to the companie'' act. code of past two years, best practices comes from the u.k. a very new company governance code taking effect in a few weeks on june 1.

that is toshiba. another day of gloom for that business.avid: this will be a continuing developing story over the next few weeks. yeah, it is the second day we are seeing pressure on the stock. it is not as bad as monday. stocks fell 17%. they were down by about 2% right now. it is off the lows. the problem with toshiba -- it started last friday when the company said we did an investigation and there were problems in accounting. several over units understated costs across some of our projects so what the banks did they stopped coverage. we are talking at least seven banks -- goldman sachs mitsubishi -- but have come out and said we are going to stop reading the stock until we get more clarity. the stock is down 2%. it is hard to imagine just use two days ago, the stock was at 480. it is not feeling a lot of love. back to you. anna: thank you. manus: greek officials bought themselves more time to have economic reforms by assuring german led creditors that they have made progress on policy. the finance minister referred to his country's previ

the big story is toshiba share in the red.sts suspended coverage following an investigation into improper accounting processes. david ingles files this report from hong kong. david: these seven banks has stopped coverage in the meantime. investors really hate that phrase in accounting and regulators. going a little bit further, we know about the understanding cost and other projects. themght actually see revised downwards previous earnings reports at some point in the future. let us show you were asian equities ended today. ending in the green while the hong kong was off by 1%. here are some of the top stories crossing bloomberg terminal at this hour. richard shelby calls his proposed revamp of the dodd-frank reform act a work in progress. the chairman of the senate banking committee may unveil his bill today to remove some of the tougher restrictions from small and medium-sized next. it will also increased scrutiny of the federal reserve. the parent company of the giant and food lion circa markets are in merger talks. if they

toshiba to be facing an independent investigation. experts expanded the scope of the inquiry beyond infrastructure projects. timing now look at the of booking expenses and inventory evaluation. the external audit is in addition. 420 may cut profits by million dollars. and for your profit rose to $279 million. the airline said cost savings having to do with hedges on oil. economy, the investment will improve teacher performance. and short seller carson block it defended his move saying is "a very bad company." the founder has previously questioned cash flow management. he spoke after publication of another research that criticized its accounting practices. he has fallen more than 26% this year. they say it will make its financial reports more transparent. >> noble is not really our fight. it's been on the rail for a couple of years. we had conviction at that point. what happened in this case is a former noble employee actually began writing critical research and distributing that publicly. some of the research we had done was additive

toshiba is setting up a third-party committee to further investigate the matter.i'd like to turn back to my interview with the first female director of the u.s. patent and trademark office michelle lee. after spending nine years in the tech industry serving as deputy general counsel of google, lee focused her efforts on improving the patent system. now the u.s. p.t.o. is working to encourage more women to enter the stem field. listen to why michelle lee is focusing on this issue. michelle: i was born and raised in the silicon valley. all the dads on the street i grew up on were engineers and they invented things. they filed for patents. they started companies. some of them succeeded and some did not but for those that did they revolutionized the world and the way we live. i helped build a radio with my dad in our living room and i went to m.i.t. and studied electrical engineering and computer science. i've always had innovation and entrepreneurship as part of my background. i have to say when i entered m.i.t. we were certainly in the minority. women were certainly

. >>> toshiba officials say an accounting irregularity is forcing them to revise downward their outlook for a three-year period and an in-house committee is looking into the matter. the operating profits will be lowered by $420 million from fiscal 2011 to 2013 which ended in march 2014. they add that more amendments may be in store. a further investigation by a third-party panel of lawyers and public accountants will be set up this week. >>> let's look at how markets are performing after we saw a mixed overnight session in the global markets and in wall street we saw modest moves. the dow jones almost flat following weak retail figures but the nasdaq did close a bit in the positive up slightly more than .1%. let's see how markets here are starting the day. ramin mellegard joins us from the tokyo stock exchange. what are you seeing so far? >> the april u.s. retail sales were weaker than expected and that pushed the dollar a little bit lower and putting doubt in investors minds as to the timing of the federal reserve when it may want to raise rates. but let's have a look how that is affec

earnings reports will be a focus after the shock that we got from toshiba on monday. the company is going to withdraw its earnings forecast and not pay any dividends after irregularities in accounting proceeds. softbank came out with net profit with a record of 28% increase from a year earlier. another mobile phone giant here kddi is due to report earnings among many other names. we'll keep track of that and i'll have another report in a couple of hours to see how the shares have been trading. back to you. >> talk to you then ramin mellegard from the tokyo stock exchange where the nikkei and topix are down this morning. >>> jcb is teaming up with a leading bank in indonesia. they want to expand their operations in the market. executives from jvb and bank manderi signed the deal on monday. jcb is targeting the country's wealthy and has issued 100,000 cards there so far. they say the tie up will increase the number of stores that accept the cards to 400,000 by year end. a rise of 50%. they want to boost the company's market share by offering more rewards to credit card

it is the first time that toshiba had indicated the potential impact of withdrawing its earnings forecast. shares overall had slumped about analyst x least seven -- analysts suspended their ratings due to the uncertainty. there were problems although they were limited. they say investor trust was betrayed and this was a loss of faith likely to result in a discount on their industry peers. let's talk about southeast asia's biggest phone company. they say their core business will speed up. they added customers at the fastest pace in three years. sales grew 5% from the year-earlier. expects revenue will rise in a mid-single-digit pace, which prepared -- which compares with the 1.2% rose we saw last year. facing increasing composition .rom telstra we are starting to see a little bit of a turnaround. they did see a gain of 32,000 customers in the fourth quarter. singtel using its cash to improve digital service and cyber security. investment in emerging-market carriers including india's airtel matured. people say they are trying to transform themselves into something that is more value added.

was on sharpfocus and toshiba yesterday. sharks shares were down. recovering some of that now. continuing its stride. the announcement it was withdrawing its ordering -- withdrawing its earnings forecast. at least seven banks have said they're not covering the stock. back to you. half $1 billion in damages tied to faulty mortgages. this has sparked a global financial crisis. eleanor must deception -- and nor must deception. sparked by the meltdown lending market and to global banks here. more. no they may face as much as $500 million in damages for the sale of these defective securities. they were sold to the government mortgage agencies in the u.s.. they were at the center of the housing meltdown in this judgment. the u.s. district court judge coated manhattanite 361 page those said the banks sold securities knowing they were backed by faulty loans. she said there are disturbing examples showing it was willing to secure defective loans. they say they are confident they are consistently candid and professional with all dealings. we could see a settlement in both cases. market,

about women in the workforce, but we have nothing support, in terms of corporate governance, we see toshibaharp really blow of the impression that things are getting better -- blowup the impression that things are getting better in japan. stephen: i think there are bad examples of corporate governance no matter which economy look at, and japan has five to go as it relates to women in the workforce -- far to go as it relates to women in the workforce, the management rights, and ultimately women of the board. japan ranks very low as it relates to representation of females or gender opportunities of the board of directors for japanese companies. angie: all right, bny mellon, you have a lot of the ip guest -- vip guests that will be listening can what do you want to say to japan to get them on their feet sooner and quicker? to have an open discourse about what are the opportunities that exist in japan, what will drive the growth, because ultimately, the growth of japan, just like continuing growth of china, is so important to overall growth. we see essentially these four large economies are und

westinghouse is owned by toshiba, i think you know. you know there is a push by the nuclear community to make sure we can sell the goods and services. and so you know there is that push. at the same time, you know look, china does use a technology that we transfer to them. and will use it. we know this. let me tell you this again we , know this. while i think it is article eight, section eight, of the agreement states you cannot transfer civil material into military operation. we know they are going to do it. our witnesses yesterday said that. you know, we know that they are in violation of the nuclear supplier group issues. we have these two facilities in pakistan. one and two. we know they are not in compliance. we know that they are saying they will not be in the future. we know that there are entities that we believe they could easily shut down that are involved in proliferation. they are transferring dual use items and technology to iran. it is pretty interesting. i thought the witnesses yesterday were really good and transparent

there was a huge scandal in l.a. 80s in toshiba and a norwegian firm that was involved. and this technology -- a lot to do with submarine quieting and at the end of the cold war we were running into a problem because soviet submarines were getting very much quieter event the begin age we had was being lost in part because of industrial espionage. what they couldn't do on their own, they were fantastic in terms of basic science and mathematical theory but they couldn't get -- once you went beyond pherae to how to apply and manufacture it, these guys couldn't compete -- these guys are really trying to adapt to that. they were trying to steal what they could. >> we have time for one more question. one of dr. geoffrey herrera's students. >> yes. the basis of this question comes from taking a global security in the beginning, focus on more traditional global security threats particularly in regards to powers of china and whether the system will increase instability throughout the term, we have transitioned it to more non-traditional security threats. in the conclusion of your

shares of toshiba dropped after news of an accounting probe investigating irregularities in its books. >> perhaps the most expensive painting ever is up for auction tonight, part of picasso's paintings. >> impressionist modern post war contemporary, those terms are important in the art word. the big galleries are combining all these art genres together, because they say art collectors are keen to broaden their horizons. there is a big sale, this could go for $20 million. this is a very famous andy warhol painting of elizabeth taylor. the star of the show is right here this is a picasso painted in 1955. if it goes for the full estimated sale price of around $140 million, it will become the single most expensive painting ever sold at auction. >> most of these young collectors who have become billionaires are not collectors in the traditional sense. collectors in the traditional sense would spend a lot of their living hours working studying, looking at art. these collectors tend to be more impulse shopping. >> christie's tell me if all the art sells for the full price this evening, they

toshiba risks losing its place in the nikkei stock index as it works to quantify the cost of an accountings up. they are racing against the june 30 deadline of when the deadline will be reassessed. you can find more on that story at bloomberg.com/europe. anna: new ways of renting office space or making an even easier for the so-called boiler rooms to dupe investors before disappearing without a trace. here with more is caroline. how much are we talking here? >> we are talking billions. we thought these sorts of crimes are formed in the city of london were potentially done by banks but there are actually con artists out there area and 5000 british investors so far have reported losing 1.7 billion pounds and that's just in one year, 2013-2014. this is an enormous scale of small-scale swindling. these cold calling con artists are cashing in on serviced offices. the way you can earn responsibility. you get your mail redirected, your phone calls, all for 105 pounds per month or you can sign a lease to occupy a physical office. these serviced offices, we are seeing more and more demand. you got

so you have westinghouse a division of toshiba, pressing you to do business pressing you to allow this agreement to go forward. we have other companies that want to do business. you also have our national interests, if you will. you have a country that let's face it doesn't honor agreements. talk to us a little about the internal dynamic if you will to give us a flavor of the various pressures you're dealing with because it does feel a little bit like mercantilism is trumping the specifics of agreements being honored relative to nonproliferation. >> sir, let me repeat. i'll ask general klotz if he wants to comment on economic and commercial issues, but my job is to look after the nonproliferation policy of the u.s. that's been consistent across administrations, supported by congresses and that's why negotiation of these treaties falls within my bureau. and i repeat, we would still be negotiating if i weren't satisfied this is in the best interest of promoting our strong nonproliferation policy. jobs are important. relationship with china is important. but my job entrusted when confirme

i want to point your attention on flashes coming in on toshiba. it's going to hold a briefing to exam accounting issues. it will hold a briefing at 10:30 gmt on accounting. a probe may mean it needs to mark down three years of profit by around 7%. so first this is now a conference being held by the company to examine those accounting issues. you can see the stock ending down by around 3% on the day. but shares were down following results as the 2% revenue growth excluding currency effects was considered too low. the first quarter was in the united states by whatever was a different chinese new year timing and of course volatility of the ukrainian market. all together the shares have been trading very well in the beginning of the year. we were up 40%. so with the end of the day yesterday, i think the investors are being cautious and it is quite reasonable to look at the performance of several days not just at yesterday. >> you have a big exposure to asia specific. what are you seeing in that market still? do you think the chinese are still willing

. >> shares in toshiba rose today as the company had investor fears following an accounting probe. the company may have to write down three years of profit by about 7%. much less than some analysts had feared. >> honda will recall 4.8 million cars to replace potentially fatal air bag inflay tos. it comes only a day after toyota and nissan recalled vehicles. six deaths have been effected so far. all in cars made by honda. price action flat today, honda and over the last 12 months up 22%. >> still to come on the show, the dollar bulls shy away as disappointing retail sales data knocks the green back. what does this mean for emerging markets? we'll discuss that after this break. stick with us. >>> delay the debt, greece's finance minister says athens should be allowed to push back bond repayments to the distant future. >> generali puts in it's best performance sending shares higher. >> a fresh start. sharp's ceo is optimistic of a recovery after the struggling japanese electronic giant secures a $1.9 billion bailout. >> let's get a check on this thursday morning. stocks did end higher

so you have westinghouse a division of toshiba, pressing you to do business, pressing you to allow this agreement to go forward. we have other companies that want to do business. you also have our national interests, you will. you have a country that, let's face it, doesn't honor agreements. talk to us about the internal dynamic, to give us a flavor of the various pressures you're dealing with because it does feel a little bit like mercantilism is trumping the specifics of agreements being honored relative to nonproliferation. mr. countryman: let me repeat, i'll ask general klotz if he wants to comment but my job is to look after the nonproliferation policy of the u.s. that's been consistent across administrations supported by congresses and that's why negotiation of these treaties falls within my bureau. i repeat, we would still be negotiating if i weren't satisfied that this is in the best interest of promoting our strong, nonproliferation policy. jobs are porn, relationship with china is important but my job, entrusted when confirmed by the senate, is to look after nonproliferation p

there was a huge scandal in the late '80s toshiba and a norwegian firm involved and it basically was -- i'm not a sports car in the world. it had to do with ball bearing technology, something with ball bearing, just rolled around, evidently have a lot to do with submarine quieting. toward the end of the cold war we were really starting to run into problems because the soviet submarines were getting very much quieter and a big edge we had work the lost apart because of industrial espionage. so what they couldn't do on their own -- they are fantastic in terms of the basic sciences and mathematical theories and so on but they couldn't get once they went beyond theory cannot be applied and how they manufacture it, these guys just couldn't compete, particularly got into the area of information technology. so sensors coatings, all these things that become products, these guys were really struggling to try and adapt to that. so they were trying to steal what they could. >> we have time for one more question. >> yes so the basis of this question comes sort of from taking the class of global