angie: let's check in on virgin australia shares right now, after china's largest private airline operatord to buy 13% stake. it squared off its earlier gains and is leading. let's get more on the deal with virgin us trillion, ceo john borghetti. thanks for joining us/ y h iwhy hna? >> i think they are a perfect partner. it opens up china for us -- china is of course the biggest source of inbound tourists for australia and has been growing at a fast rate. it is now over one million that come to china every year, growing at a rate of 18%, as it has been. it's a very important market for us and they are an important and good partner. angie: so then why is singapore airline sharing at stake? -- sharing its stake? >> singapore airlines, a very important parlor as well, and we enjoyed strong relationship with them, but with the placement of genetic, it will drop a percent -- just a bright byproduct of the mathematics. angie: air new zealand was left out of the talk. why did you not let them know? >> we did lock them out. it was a decision that the board took -- it was a good aoposition with acc

virgin australia shares are higher after a chinese company said it is buying 13%, with plans to increase20% overtime. the company runs a dozen carriers. -- a virginrson australia's biggest possessor, air new zealand, says it makes a 26 percent holding. and global investors are about to get a double dose of chinese equities. valuea will have its full added to the close on tuesday. shares have been somewhat of a haven as they have outperformed the msci china index in the shanghai composite. powered by over 2400 journalists in over 150 bureaus around the world, this is bloomberg news. markets trading here in the asia-pacific, and this is what it looks like. .ikkei to 25 is down 1/10 of 1% we are seeing a mixed picture around the region. coffee seeing gains, but just barely. let's see if it hangs on, no, it is not. we have australian equities also on a downward trajectory of 7/10 of 1% down. chinese equities are once again in the cross hairs of short-sellers. of thenterest in one biggest hong kong tracking etf mainland stocks has searched this month to levels not seen since last year's marke

mightaland said it offload its entire virgin australia stake.ta coming out of australia. we just put a bit of flame under the aussie here. david: we typically do see the aussie react more than most other currencies. 7227. taking it back above 72

mightaland said it offload its entire virgin australia stake. economic data coming out of australia. we just put a bit of flame under the aussie here. david: we typically do see the aussie react more than most other currencies. 7227. taking it back above 72 u.s. cents. data of course. this was down to the building approvals which unexpectedly rose month-to-month. we can reverse some of the losses toward midmorning. we are back above the 111 handle here for the dollar yen. at 658.eeing cny it is flat of a young to look at this with them the context of yesterday. that being said, have a look at japan. we are now up half a percent. gaining a bit of traction over the last 30 minutes. rishaad: paul allen has the details of this deal. i'll, what is going on here? >> the operator of the fourth largest airline in china is paying 159 million australian dollars for the stake in paying a hefty price for it. $.30 per share. if a 7% premium on what monday closed at. the virgin ceo held a media call a couple hours ago. here's some of what he had to say. >> th

i am a believer in virgin australia. as done a fantastic job in investing money in making it a far better airline. going after the business market as well as the backend of the plane. it,gin australia has spir which qantas does not have, which the public enjoys. will -- but if there are other opportunities that come up, we will obviously look at them and make a decision. >> if you don't buy it, who would you be comfortable taking that stake instead of you? aboved: obviously, we've to have other airlines involved in virgin australia i can bring something to the party. i will leave you to guess which ones that could be. things that we have been approaching from airlines that are considerable and add a lot to virgin australia -- again, those discussions are going on. i cannot go into detail. >> moving on to politics, next month is the june 23 referendum in britain on whether to stay in the european union. which way would you i cannot to go, and why? go,ould you like that to and why? richard: i live in the british virgin isla

richard branson said talks are underway with potential buyers for a 25% stake in virgin australia. e virgin group is watching those instructions and has not decided if it will increase the 10% stake. branson also warned of the negative effect of britain hoped to leave the european union . effected of the negative of britain leaving the european union next month. devastated if they pulled out of europe. i hope that sense prevails, and when push comes to shove, people would realize that it would be enormously damaging both to europe and great britain, if britain was to walk away. powered by over 2400 journalists in 150 bureaus around the world, this is bloomberg news will stop -- bloomberg news. rishaad: coming up next, our best says -- our guest says -- open --th us next and next wind "bloomberg markets: middle east" returns. ♪ rishaad: oil above $50 having reproductions -- repercussions when it comes to the fx market. yes, a very busy day in terms of aspects news in our region. first, let's look at the u.s. spot index. a lot of trade is saying that there is speculation that the leas

>> obviously we would love to have other airlines involved in virgin australia they can bring somethingy. i will have to leave you to guess which ones they can be. , there havehings been approaches from airlines that are considerable, and i irgin add a lot to v australia. those discussions are going on, so i am afraid i can't go into detail. rishaad: you invited me on your inaugural flight to chicago a few years ago. dealt the has taken a subsequent 49% stake from singapore airlines. the focus seems to be on the transatlantic. are you comfortable with that? do you see this airlines having its wings clipped and curbing goes global and visions you talk to me about? -- those global ambitions you talk to me about? have always been against these big partnerships, and i fought bitterly against american airlines and british airways getting together. from the public's point of view, it is better when people compete. when they were allowed to get together, we needed a big is aer, and delta formidable partner and a really good partner. the reason we switched some of our routes across the atlantic

singapore airlines saying in an e-mail to bloomberg that it will reduce its stake in virgin australia if the deal goes ahead to 21.3%. both of those companies in focus today. generally, we are seeing a pretty solid session across the region. nejra: juliette saly in hong kong. the fed has shifted towards raising interest rates as economic data continues to surpassed analyst forecasts. treasuries have lost their edge over stocks stagnating in the second quarter. the s&p 500 has returned over 2%. let us bring in our guest. the senior advisor at credit suisse. bob parker is here. coming into the u.k. market later today after we heard from janet yellen on friday, do you think what she said on friday begs the question of when and not if? during the third quarter and probably july, we will see the next bed rate increase. i would be surprised if we saw it in june. month'swe need another wea to confirm the uptrend have seen in the u.s. economy in april and may after a weak first quarter. a very mediocre performance. january and february data were poor. as we go into june and july i think the d

buy virgin to australia. classic cartoon characters could see disney taking legal action in china.

virgin and u.s. also was aired in mexico canada australia different countries around the world getting a different versions of this. we spoke with them an hour or so ago when rep told us their ads are frequently different in other countries throughout the world and there are other differences as well. it is >> grant: neck give a specific reason why did errands the seven countries certainly interesting nugget. >> steve: teacher's aide, on- camera created a firestorm. >> pam: disability rights calling for changes >> steve: kelly has been on the story since the very beginning of. investigating earlier this year. >> reporter: 12 year-old stewart has never attended told been world. in this video is drawing a picture of what used to happen to him after he would act out in class. his store was 10 years old and is transferred specializes in children with autism and the school board was taken take it is restrained " " under month. at a previous school store would sometimes be put in the seclusion room because of his outbursts this is not a problem i just tell the world this is a problem that public-school with chil