♪ angie: calls for compromise. greece says a deal can be done, but creditors must be reasonable. let the good times roll. china is confident again and sales are booming. modi. months of as the indian prime minister hit the target in his first year? welcome to "first up."

i am angie lau, coming to you live from bloomberg headquarters. to our top story today. reese returns to debt talks today with a message to creditors. with money running out and big bills due in the next few days, the finance minister has again said that those who lent athens money are those to blame. that is interesting language. david: still sticking to this narrative as far as the finance minister is concerned. a little bit of a difference when talking about the prime minister. austerity is the only dealbreaker. he made a few points, saying it is not greece's fault. he challenged the perception that has been covered by media, this perception that a lot of

non-greek supporters have -- there is a fallacy that greece is unwilling to admit to reform. it is quite the opposite, he said. he said our creditors' inssite nce on greater austerity is subtle but steadfast. committed, he , that is the dealbreaker. --went so far as pointed out as pointing out, why have countries like spain, portugal, cyprus, ireland done much better than greece? all of them received some level of support. it is because the fiscal burden that was placed on greece was much greater. he even went so far as comparing greece to the u.k.

if you years ago, fiscal deficit to gdp was more or less the same. greece has done much more than the u.k. at getting it back into surplus. but the u.k. is doing much better. , if creditors insist that we much save -- that we must save more money, it will derail the economic plan because it does not work. people will suffer more hardships. his public support of the reform agenda that they have put forward wilson we breakdown. while that may be true -- will simply break down. while that may be leverage in negotiations is with the people who have the money. angie: of course. what about the bills due next month? can greece meet those obligations? david: what we know is they can actually come up with the money

for next month. 5ne will last them until june 5. at least liquidity. beyond that, it is hard to say. they have actually met a lot of these goals because they have saved. said, look at this. we have managed to meet our obligations. the fact that we are talking about more austerity is the problem. they oh a lot of money in june a lot of money in june. this a deadline, on may 31, that germany and france have set, that is unlikely to be met, simply because, between now and

the end of the month, you do not have any meetings with eurozone finances -- finance ministers. the deadline to come up with the deal is unlikely to be met. angie: and so it continues. david: for four years now. you for that. let's get the market reaction in europe. take a look atu europe, we ended pretty much in the red. take a look at the three indices here. pretty much in negative territory. emerging markets, those stocks also ended down on the outlook of the u.s. rate hike. the greek stocks, the ase down 3 %. that is the most in nearly three weeks. for the past year, it has fallen over 32%. one of the worst-performing

equity indices tracked by bloomberg right now. we did see a little bit of a selloff in it comes to the greek -- not greek, i should say german bond. if you take a look, the 10-year up about .3%. greece, though. we did see yields drop a little bit. you are still seeing yields above 11% right now. japan -- italy also in the green with a little bit of a selloff in those yields. let's take a look at the euro. that is also -- we saw a little bit of a selloff there as well. lightg negativity in the of these greek comments. the euro-dollar, at one point, dropped to the lowest level in four weeks. now at 1.09.

seeing a little bit of it -- of strength right now, up about 1%. the euro pound seeing a little bit of a weakness, down about 1% . this is because of questions about the june 5 payment that david just mentioned. will they pay it? no, if there is no deal reached. we also saw some upside to the dollar given the comments from u.s. seemsn that the a little bit more on the upside. we got those inflation numbers last week. the likelihood of a rate hike could be possibly this year. still on course for that. back to you. you can get more on all of the day's top stories at our new digital destination. it is bringing together the best of bloomberg news, business week, bloomberg television, and new, digital content all in one

address. also on bloomberg.com, all the fed policy and the likelihood of a right hike. rate hike. give -- a we will give you insight into market movers. bloomberg.com. check it out. another takeover offer might be on the table for time warner cable. charter communications made by may buy the-- company. sources say the deal could be announced as soon as today. charter tried to buy time warner in 2014, but was rebuffed. that deal later collapsed. vodafone is said to be considering lifting its indian arm. they are weighing a share offering for the business, which has 180 million subscribers. vodafone is the second-largest wireless operator in india.

in the latest fiscal year, their indian unit record sales of $6.6 billion, accounting for 10% of the company's total revenue. and the battle between coca-cola and pepsi is heating up on the streets of japan. the company that sells pepsico drinks in asia has agreed to buy jt's vending machines. it would help close the gap with coke. they have a total of 750,000 coke'ss, closer to 980,000. let's check on the market here in asia. due new zealand right now, where we saw a trade balance come out better than expected to a tune of $123 million in surplus. right now, we have new zealand fractionally lower.

we are also counting down to the japan, australia, and korea. let's head over to japan. last closed .3% higher. a seven-year high for japanese .quities here looking at the futures in chicago, pointing to a higher open today. the-yen right now, still -- dollar-yen still weak. saidr ago, analysts shanghai stocks were set to rally 28%. they ended up more than doubling. >> if you call 28%, you would have been a pessimist. angie: yes. it would be a bad thing right now. ofwe are seeing this rally the stock market more than doubling. analysts who cover the 50

largest companies traded in shanghai, they predicted this game for the index. what we instead saw was a surge in the past year. remember, a rally of 28% was still considered one of the best-expected returns among 45 of the world's major benchmark indices. analysts have, ever since, had to update their predictions. past theirks boomed target prices. the job has become even more difficult because it is not just the companies at multiyear highs. they have to factor in the possibility of further monetary stimulus. isie: predicting markets always a difficult task. why have analysts been so confounded by china? shery: it is not just the possibility of more monetary

stimulus. it is also the fact that there are so many more variables. we have more individual chinese investors. about 80% ofake up equity trading in china, not to mention that stock accounts are rising at the fastest pace since 2008. people say there is so much money in the market, it is making it difficult to assess chinese stocks. we also know that regulators, although they are trying to weed out speculators, they are also trying to help companies raise money through equities. in order to reign in credit --ansion that we have seen we have had so many ipos. more than 120 this year, which is almost matching the amount that we had all of last year. also, we have the shanghai, hong kong stock connect, giving greater access in the international market. thee: that has really been

key to this driver that we have seen in shanghai stocks. what are analyst expecting now? shery: hopefully they are not going to be too pessimistic this time around. however, they are tempering even with theow, possibility of further stimulus. they are saying that, starting friday, their closing price on friday through the next year, the largest 50 companies traded in shanghai should gain about 2.7%. we will see what happens. angie: exactly. thanks so much for that it coming up later on bloomberg, today marks one year since narendra modi came to power in india. we have a special show to review his hits and misses so far. 2:00 p.m. if you are watching in sydney. please join us for that. coming up next, will the rally continue or will the bubble

burst? we take a look at whether the rally in chinese stocks is sustainable. ♪

angie: some of the stories making headlines around the world could malaysia found human trafficking caps near its border with thailand, with nearly 100 graves containing an unknown number of bodies. police do not yet know who the deceased are, but local reports say they are migrants from myanmar. mass graves were also found in thailand earlier this month. tens of thousands fled their home country in recent years. the philippines says it's aircraft will continue to fly their usual routes over disputed islands in the south china sea, defying rising pressure from beijing. the president told reporters that flight lands would be based

on international law and that china should not bully a smaller country. pursuing arbitration to try to resolve the territorial dispute. fly the roots that we fly based on international law. we will still exercise our rights. just to be clear, we will defend our rights. that --he fbi says military jets scrambled to escort an air france flight into the city after a caller claimed a chemical weapon was on board. the plane landed safely and this search found nothing. later, a saudi arabian airlines flight was checked because of the threat. it appears both calls were made by the same person. alibaba, jd.com is widely considered to be the

amazon of china. leslie liu told stephen engle that the company wants to be far more than just an online retailer. we have created an open ecosystem. partnersrking with our to bring new products. we are not making any new products by ourselves. we are working with our partners. stephen: what kind of products are we talking about? has made an investment in a voice recognition technology company and smart home appliances. how do those mesh? there are already 400

products sold on our smart home website. we will keep adding new products into the pipeline. announced our joint venture from ifly tech. a voice controlled speaking system that allows you to use your own voice to give commands to speakers and have instantaneous access to millions of hours of content. additionally, you can use your voice to talk with this smart speaker. ask what the weather is tomorrow, what is a stock's price. alibaba,you know that your main competitor, has been criticized for allegedly facilitating a platform for the selling of counterfeit goods. even jd.com was in the news for

allegedly selling refurbished iphones that were passed off as new. as the technology guy, what tech is in place to make sure that you have a clean platform to sell goods legitimately? charge of then smart group. we are working every day to make every single product meets our and rank -- end rank. groups, wejd smart sold about a million devices. this year, we are hoping to add more devices into that mix. the growth is fast. if you compare numbers, by the end of 2013-2014, the number rose by 280%. we are looking forward to having much stronger numbers in this

year. angie: coming up next, we take a look at china's extraordinary rally. will it continue or will the bubble burst? " returns.t up ♪

hase: china's csi 3000 5000 for the first

time in seven years. our next guest says the chinese rally will keep going. why so optimistic? >> i just think it is the amount of liquidity that is coming into the market. a couple of factors at play -- these of stagnation -- ease of p,bc rate cuts, opening of markets to foreign investors, and retail investors not getting a return on savings in the banks, starting to put their money into the stock market. kong-shenzhen connection, it is hard to see the liquidity drying up in a hurry. angie: there are weak spots, though, no? >> most of the stocks are not trading on fundamentals. you have got to be careful, as

an investor, that you are not throwing hot money after hot money. in hong kong, you have seen the liquidity, the mainland shares have had some very volatile moves in the last week or so, which suggests that once people focus on some of the fundamentals, evaluations can be a little bit ridiculous. most of thehing is, action right now is momentum-based. it is about those retail investors. when the hong kong-shenzhen connect comes online, do you think that will continue? >> it is interesting to look at the shenzhen market, in particular. it is up 156% over the last 12 months, trading at 57 times earnings. 103 stocks are over 500%. that market is already really hot at the moment. then you have the dual listed

appetite. one would suggest that there is going to be some more drive. one thing that is driving world indexthe msci may include chinese stocks going forward. that would mean there is definitely going to be some benchmarking for chinese mainland stocks. angie: very quickly, if you already have a play in china and are looking at the rest of the region, what else looks good for you? >> markets have done very well in the region generally. growth of 2.4% in the first quarter. some underlying price dynamics according to the boj. we look at the second half, overall, the way in which the boj have their policy, you would think that japanese stocks will continually be driven up into the end of this year. angie: before i let you go, on.a, modi, one year

what are your thoughts on india? do you still want to keep your money there? >> i think there are still opportunities in india. there is a lot of work to be done. a lot of reform being done. i think the appetite is still there. -- therethey will be will be more capital inflow into india over the next six months. angie: always good to talk to you. thanks. mclaren says the stock boom is stealing sales. a closer look when "first up" returns. ♪

angie: it is 7:30 here in hong kong. that is the view of seoul we are giving you right there. they are one hour ahead of us. they are back to trading today birthdayking buddha's on monday. we are 30 minutes away from the open of trading there and in australia and japan. on your mobile and online, you are watching "first up." ♪ angie: the top stories this hour -- greece returns to the

negotiating table after the government blamed its creditors for the long-running debt it has had. tsiprasnister alexis says a deal can be reached by the end of the month. they are still revisiting areas such as pensions and labor market rules. the government said it will not take any measures that will further deepen the recession. another takeover offer may be on the table for time warner cable. sources say charter communications may buy the company for just over $55 billion. that is a 14% premium on time warner's friday closing price. the deal could be announced as soon as today. charter bid for time warner in 2014 but was rebuffed. a competing offer. that bit later collapsed. and the renter modi marks one year in office today. marksand narendra modi

one year in office today. he was elected to improve the country's creaking infrastructure. critics say he failed to deliver. the opposition party says it has been a year of missed opportunities. let's check in on markets this morning. where the trade balance came in better than expected, 123 million in surplus. new zealand dollar spot strengthening. we are counting down to the opens in japan, australia, and korea. let's get back to japan. seven-year highs for japan. futures in chicago pointing to a higher open. weak against the u.s. dollar. there are signs that confidence is returning to the high-end consumer market in china with sales of super luxury cars starting to pick up.

what is driving it? the booming stock market, maybe. that pun.bout mclaren is seeing demand for their supercars. they are expecting sales to go up this year. sales and dealer traffic have been the best ever in china. shanghai composite up nearly 136% in the last year or so, given a massive boost by the hong kong-shanghai link as well. we are seeing millionaires, billionaires being created almost week to week. the more rich people there are, the more demand there is for these cars. we are not talking luxury. we are talking super luxury. the kind of cars that only a handful of people have in the

country. mclaren sold about 140 cars in china last year. leastre expecting to at double deliveries in china this year, especially when they start delivering their new models. angie: how much do these cars go for? 546lind: something like the coupe, at the more affordable range, over $350,000. angie: like a house somewhere. rosalind: in some places, yes. the cars go up to more than $600,000, $700,000, $800,000. some of them, maybe not mclaren, but other carmakers, allow you to customize their cars. for example, fitting diamonds into the inside of the car. that will increase the price of the car. angie: you do not want to snag your clothes on diamonds that you put in your car. carmakersluxury

specifically targeting the chinese market? carmakers --luxury rosalind: super luxury carmakers are going to go where the money is. the market has grown 27%, up from 12% in the past five years. why wouldn't you follow that trend? that is where the money is. the stock market going up massively as well. it is going to be a huge boost for them as well. companies like maserati, .olls-royce ,hey are looking across asia not just at china, but the , just east, africa waiting to see where the ultra rich people are. that share is growing faster in these regions than anywhere else. angie: when the equity markets

have doubled in the past year alone, a lot of new millionaires with money to spend. thank you so much for that. miner fortison ore will be in focus in asia. they have interest in buying or increasing their stake of the company. china is the world's biggest buyer of iron ore. it's appetite for the mineral is a key driver of price changes. for more on china's entry into iron ore, let's head to david stringer, joining us from melbourne. is chinese interest in mining in australia heating up? david: good morning. it is probably right to say that it is heating up. if we look at acquisitions by chinese companies in the australian mining sector, just in the first order of this year, that certainly was the highest -- deals has the highest value since 2013.

so that is the case. there is a bit of a heating up of the sector and a heating up of chinese interest. it is not just iron ore. that is a key commodity for china, but they are also looking for copper deals. management completed a deal just earlier this month, 1.2 billion dollars for a copper producer in australia with a big project coming online in the next couple of years. it certainly looks as though the appetite for deals from china is unabated. -- china, last week, announced investments in brazil's iron or sector. what is it going to do in australia on iron ore? david: that is a key question going forward over the next couple of years. china's biggest publicly-listed dealmaker have a huge project on the development board in

australia, where companies like bhp and rio produce their iron ore. that project is on the board and is worth about $6 billion. that is one project. a huge chinese conglomerate, expanding demand they have already in australia. there are plenty of projects in train and plenty of investment to come in the australian iron ore sector. angie: iron ore prices have been falling. our potential investors being deterred by this? potential investors being deterred by this? david: it is an interesting point. demandrices have fallen, for iron ore in china is not growing as quickly as it once was. it is still growing. that is the key issue.

are rife, producers they will continue to see tens of millions of people transfer from rural areas to urban areas. they will need to continue making those investments. the current price environment does not seem to be acting as a deterrent. angie: david stringer joining us from melbourne. thank you for that. to another david now, our david ingles. a quick look at other top headlines this morning. david: thanks, angie. they could have third-party financing. news comes a week after rio any mongolian government ended a two-year dispute that stalled the project. foreign drug makers in china are facing more pressure. from next monday, the government

will put price caps on most drugs, raising the level of competition. many governments have been introducing new businesses to bring costs down. staying in china, import tariffsts -- import will be reduced to help boost consumption. many chinese prefer to shop overseas because prices are overinflated by heavy taxes. those are the top corporate headlines this hour. i am david inglis. -- ingles. angie: indonesia has taken another step towards its goal of being an islamic banking hub.

it will potentially offer a roadmap for the rest of the country. our southeast asia correspondent has been taking a look at this. >> the choice is puzzling. this is the region that went through a 30-year, bloody conflict. more than 30,000 lives are lost. it has massive issues with insurgency, which ended only in 2005. take a look at its religious makeup. the highest percentage in all of indonesia, which, by the way, has the largest muslim population in the world, aceh is only one of 34 administrative regions that implemented sharia law. plus, islamic banking has been thriving. last year versus just 10% for the conventional market. aceh isthe players say

where the demand is. and bankingislam initiatives should be developed and hopefully, it will provide a roadmap for the rest of indonesia. it is quite difficult to tell if it is going to succeed. financehe islamic market is estimated to be worth about $2 trillion. what is aceh's plan to grab a slice of that? haslinda: slowly, slowly is the plan. it will not be the first such convergence in indonesia. shareholders will vote about it this week. the move is expected to set the precedent for the government, lled oveready mu transforming a state lender. that would instantly add a few billion dollars of islamic banking assets. all eyes, as you can imagine, are on aceh and indonesia to see if it would work commercially, if an islamic bank would be

commercially viable. it is challenging. size matters. scale matters. law makes it harder to compete with bigger conventional rivals like those in malaysia. angie: indeed. thank you so much for that. coming up next, 12 months of modi. one year after taking office, has the indian prime minister delivered? we will take a look at that went "first up" -- when "first up returns. stay with us. ♪

some otherking stories making headlines around the world. british prime minister david cameron has darted his campaign .o reform the european union the talks launched a week of efforts by cameron to renegotiate the terms of britain's membership.

he wants changes ahead of the u.k. referendum on the eu that is expected sometime next year. a tornado has struck a town in northern mexico, killing at least 13 people and damaging hundreds of homes. cars and trucks were flipped over and blown onto buildings by the force of the storm, which lasted only a few minutes. the mayor says the first tornado recorded in the 100-year history of the city, which is just across the border from texas. more than 500 people died during a heat wave in india that saw temperatures approaching 50 degrees celsius. been worseates have affected, but the heat is being felt all the way north to delhi. roads and markets have been deserted as people and animals seek their way to cool off.

high temperatures are forecast to continue. things are also figuratively heating up in india. one year since narendra modi took power in india. so far, the markets have given him a generally positive or card. while he remains popular with voters, businesses and investors are less enthusiastic. here is a look at the numbers behind modi's first 12 months. ♪ angie: all right, that was a

bloomberg poll of investors, giving him 7.4 out of 10. that is not necessarily an a, but let's take a look at the past year in india. rob, if we were to ask you to give him a grade out of 10, what would you give him? rob: i would break it up into two things. in terms of -- after the taper getting into power and fixing the macro vulnerability indicators, i would give him a nine out of 10 for that. the current account deficit has come down to just 1% of gdp. we are forecasting inflation halved. fx reserves have grown. vulnerabilities, i

think india has done the best. 10 for restoring macro stability and strength. in terms of reform, i would give him something like a 6.5 out of 10. there has been progress in things like moving fuel subsidies, opening up the , in terms of a new monetary policy framework that has been set up, and reenergizing the ministries and streamlining it. they have public infrastructure investment. there have been reforms. i would give him a 6.5 out of 10. that is not bad. this is the world's biggest democracy. you cannot expect a big bag of reforms. that reality check is starting to be understood by the markets. the first monthly outflow of money from overseas investors out of india in may. why the you think, perhaps,

there is lack of enthusiasm or perhaps a depleting enthusiasm for india? i think you can look at it month i month. every month is not going to be an inflow. capital flows are often quite volatile. it depends on what is happening externally as well. i would not pay too much attention to that. the way that i think about india havethink policymakers been very farsighted. this is very unusual for an emerging market economy. india could have very easily cut interest rates, done a big fiscal stimulus, and let the ruby appreciates it -- the rupee appreciated substantially. that would have led to a boom, but a bust in a few years time. i think india is doing it very

sensibly and making sure inflation gets down to 4% and stays low. they want to get the fiscal finances in shape and they do all of theirse up competitiveness, letting the rupee appreciate in the short term. i think growth is picking up and inflation is coming down, but without the punch bowl, i do not think investors can expect a quick buck from india. it is not going to be a boom-bust cycle. it will be a more long-term, sustainable recovery, but it will be more radical. angie: -- more gradual. angie: what is the next year going to look like for india? rob: we are forecasting growth of 8.3%. almost 2% higher than china. we think inflation is going to come down further. the key thing is going to see where they can do some of these big reforms, like labor market reforms, introducing a goods and

services tax. if they canisition, get that through, it would make it much easier to do infrastructure spending. or threee next two years, i think it is the biggest turnaround story out there. angie: it is an exciting one to watch. thank you so much for joining us 's first year. later on, more analysis on narendra modi's first year in office. we will hear from money managers on his hits and misses so far. is 12 months of modi special at 2:00 p.m. if you are watching us in sydney. up next, we take a look at if riseai's expansion plans the stock up. ♪

angie: welcome to the stock exchange. we are taking a look ahead to the opens in japan and south korea. our reporters are here to tell us the stocks they are keeping an eye on. we are headed to south korea. hyundai motors has been down for the last month, but now we are hearing from local media reporting that they will open a ,ew plant in alabama, u.s. because they are seeing more demand. we had those reports back in march and then they denied it. they said, there is nothing planned at this stage. we have another report saying that they may make an announcement in about two or three months. u.s.,g up demand in the more car sales. we will see what it does. if you guys know the

special, it is pretty good. they are going to be getting into a mobile video viewing and sharing service month.ing service next over the last year, down about 17%. investors are still excited about this stock. 10 sells. holds, a lot of stuff going on for the company. david: nippon is an engineering services firm listed in japan. it has basically won the contract in the construction of two jetties in iraq. $30 million. what happens, see

guys. that is it for the stock exchange. our stocks are based on news events. back in an hour to see how the three

angie: calls for compromise. treat says the deal can be done that creditors must be reasonable. -- only innumber china could one predict a rally and end up looking like a pessimist. today's top cars are the true mobile devices. i'm angie "first up," lau. life from asian headquarters in hong kong, streaming on bloomberg.com. breaking news out of singapore.

the first quarter gdp numbers. let's go to haslinda amin. better than expected numbers. q1 gdp coming in a 2.6%. the quarter before and higher than 2.2 expected by economists. looks pretty good. construction, services, and finance grew in the quarter, helping to boost numbers. tough to get the government keep its gdp forecast for the 2%-4%.tween singapore knows that it is an expert that relies on economy,. recovery in the u.s. is helping. it is the number three export market. plus china stepping up measures to shore up its expansion. china is singapore's biggest export market. the recovery they're helping singapore as well. if you look forward, singapore's finance minister points out, the

city cannot rely on a pickup on global growth over long-term. the city has to improve productivity and persist, with economic restructuring and innovation. that is because domestic employment is slowing. plus, singapore is manufacturing sector has been volatile. it has contracted several times and been susceptible to both domestic and external headwinds. companies have to work towards diversifying the economy and growth. there's also some upside inflation where it says the result of the tight labor market, even though domestic employment is waning. have you addressed that? h it's going to be hard. it is a tight labor market. the government has implemented measures to put a lid on foreign talent.

that has weighed on the lexus manufacturers, that activity has to be increased to manage the slowdown that the sector is seeing. it is a balance. isefully the government optimistic. it can be done with help from the government itself. first quarter gdp, 2.6% out of singapore. thank you so much for that. greece returns to debt talk today with a defiant message to creditors. big bills due in the next few days. the finance minister has said that those who lent athens money, are actually the ones to blame. but david is going to connect the dots of this argument for us. because it seems pretty ridiculous. but it actually has some things that are good points. takes two to tango.

both sides have their own points to be made. there were certain demands. came withmands that the bailout, which as we all know, is maturing over the next month. the big principal payment over the next year. that said, credit time. an op-ed published yesterday, he made a few points -- who is to blame, why don't we have a deal? he says don't blame us. the only deal breakers is creditors insist on even more austerity even at the expense of the reform agenda that our government is so eager to pursue. on this point, let me point out one of the things he brought up. fallacy, the a perception that greece is not willing to commit to a set of reforms. it is absolutely not true. what they don't agree with is austerity.

what it will do is leave more damage. public make the accepting the terms of meeting the obligations a little harder to bear. creditors insist on greater austerity, then the government cannot and will not accept the cure that has cured within itself over five long years to be worse than the disease. basically he says it is a worse situation. last countries like italy, spain, portugal done much better than greece? it is because there was a lot less physical burden placed on them to begin with. he takes a look at england. to gdp wasdeficit more or less the same a few years ago and greece has actually done much better and had much more progress compared to britain. they are saying, we will agree to a lot of things but not this. angie: so if greece is saying

they are held to a different set of rules than everybody else? david: you could argue they were in a bigger problem which is why morewere held to such -- obligations. that said, the leverage is with people with money. that obligations coming up, internal obligations coming up. it looks like they will be able to pay. they have money until june 5. beyond that they will need the money. angie: thank you for that. let's get the market reaction in europe/ . yvonne: i think we are much looking at overall europe, we ended pretty much in the red. look at all the three indices tracked in the euro region. euro stoxx 50 two thirds of a percent. all in negative territory. downmerging markets also

as well on the outlook of that hike.etar -- rate that is the big story in reaction to david's report, saying overall they need to compromise. the asc is closing 3%. worst-performing major equity indices tracked by bloomberg, for the past year take a look at the athens stock exchange. the gauge has fallen for more than 32%. region, scm mib down about 2% overall. it is not a pretty picture in europe. let's look at the bonds here. in greece, we did see a little bit of a drop in bonds. in terms of the yield, we are still seeing a scary number. we are still well above 11% on those yields, down half a percent in the greek tenure. up as well.unds

now we are seeing 60 basis points. fees,ms of the current and ongoing negativity when it comes to the euro. take a look at what happened during the day. it found, plunged to four-week low against the dollar. a drop the lowest in about a 109., the euro pound did not look very good. at a two and a half month low. the questions about that june 5 payment is the big question among many investors, saying will greece pay the payment? and the end the interior minister says he has no voting power here, he says no deal, no payment for june. we will see what happens. we also saw an upside to the dollar in the last couple of days which counters some of this.

the dollar of about half a percent. talk about the movers here today. korea backng also after a holiday for buddha's birth. day. racking the nikkei right now, suntory will be required -- acquiring japan tobacco's operations and the vending machine business. up about50 billion, 6/10 of a percent. drinko doing very well. operatingoming out, losses bigger than expenditures, so not looking good, but ¥596

million from a year ago or at least all sales drop nearly 6%. thank you. checking on other stories making headlines. another takeover offer may be on the table for time warner cable. made by theval company for over $55 billion. timeis a 14% premium on warner's friday closing price. it could be announced as soon as today. offert made a competing and that bid collapsed. they were are considering lifting indian arms, weighing a share offering for the business which is 180 million subscribers and its biggest unit by customers. largest is the second operator in india. billion sales of $6.6

accounting for 10% of the company's total revenue. breaking news right now out of australia. check it outetals, climbing close to 12 and a half percent right now. our next guest says forget about the u.s. right now and take a look at opportunities in emerging markets. when "first up," returns. ♪

angie: checking stories making headlines. malaysia says it found 28 human traffic cams near the border with thailand with more than 100 graves containing an unknown member of bodies. we don't know who the deceased are media reports say they are muslims from mina mark -- mina ynamar. tens of thousands of muslims have fled in recent years.

that cameron has started campaign to reform the european union. their top launch a week of pan-european efforts to renegotiate the terms of britain's membership. he wants changes ahead of a u.k. next year. suspected a toy need a has struck a town in northern mexico, killing at aast 13 and killing -- tornado has struck a town in northern mexico, killing at least 13 people and destroying hundreds of homes. the mayor says it is the first tornado recorded in the 100 years since the city has been across the border of del rio in texas. market trading here in the asia-pacific. japan's nikkei to 25 climbing just fractionally. kospi is invent territory. rtrtis skew -- fo

escue climbing. my next guest says investors should return to the market in the medium and long term. when investors ask you what should we put our money in, they often say may be, are things looking good in europe? maybe the united states. do emc been factor at all? guest: i think we have seen the money has been leaving the em and going into the more developed markets, in particular over the last six months. money has been going to europe. the markets in europe are very cheap, and very attractive. very low interest rates. i think there is a case for

emerging markets you have to be selective. you cannot buy all of the emerging markets, certain markets. in asia for example, we have reforms being implemented and that is very powerful. angie: like? guest: number one, china. onpite the markets going investors are not really committing in the chinese market. angie: it is hard when retail investors -- and it is a big momentum play. they like fundamentals more. atst: if you look fundamentals and economic growth, it's already there. it is very disappointing in terms of growth. reforms have been implemented. by the way, highlighting a couple of things happening in the last weeks.

which i think at stimulate the economy little more in the second half. ratehree-month interbank has come down by almost 200 business points. since april. electricity production has been very weak. morning -- month of april we saw be bound. the market has stabilized. bearish on the economy but things since to be stabilizing. that is china. india of course, people are very disappointed, especially this year after a big run last year. modi will continue to implement reforms. angie: 2014 was the first day in office for modi. he has done what some would say ok, but more needs to be done. he's got opposition in congress. guest: it's a big country. -- each state is different.

it takes time. the markets always go ahead and get excited. they realize now that it may not be as well. but the medium term of the country will perform. anyuld be a buyer of weakness in indian equities. , some say the budget could have been so much more aggressive. we also saw in terms of capital investment in public infrastructure, kind of go up for india. how does india unleash the power that is india? it has been mired in bureaucracy for so long. they need to make it easier to acquire land for investment. they want to do something on that front, but we haven't seen any more details. we need to wait on that. the other things is to introduce the national sales tax across

the regions and all provinces. right now each province is different. you need a unified tax. that will be done i believe over the next 6-9 months. it takes time. for now, i think the focus should be on japan. angie: ok. guest: japan has been performing despite currency not moving much. there has been coupling from the strong market and weak currency. angie: hi you going to give an excuse for japan as well, it is not as big of a country as india is still in terms of reform there has not been the kind of reforms that were promised from the get-go. guest: if you look at what is happening within the corporate, now we are seeing so many share buybacks. companies are willing to give more dividends. that is reform. companies thatut are really giving you more dividends, shared buybacks

focusing more on ease. that is reform. and that is happening. it is not a surprise that the market has been performing well. angie: good to talk to you, raymond. global us from our investors in hong kong. thank you. greek talks are back on as the government continues to blame its creditors for the method is in. more after the break. ♪

is may 26, 2015 in hong kong. these are the headlines. the euro at its lowest level in nearly four weeks versus the dollar, as greece told creditors to ease conditions for bailout funds. the currency fell to a two and a half month low against the pound as the interior minister went so far as to say, no deal, no imf payment in june. the $ gains after the biggest weekly advance and or years. singapore's economy expanded more than estimated last quarter. gdp numbers at the top of the hour, rising 3.2% from one quarter ago, up from 1.1% april estimates and beating forecasts

of 2% growth. saidsland central bank growth will be supported by firmer recovery in the u.s., europe and japan. singapore's economy expanded 2.6% in the first quarter from one year earlier, beating economists forecast up to -- up. new zealand's of from expected. 72 million. experts all five and a half percent from a year ago think the drop of milk powder from china. export volume falling 66%. there overall rose 1.2%. headlines this morning. back to you. convergence of automobiles and consumer electronics has already happened at the ces asia event in shanghai. the car more so than the smartphone. it is the mobile device for users.

reporter: what is a for doing at an electronics show? >> it's got a lot of electronics. tech shows are a convergence of all electronics and the internet of things. millions in this vehicle. while we are doing is we are seeing the tech versions of all of these technologies and this is one more of them. reporter: how far away are we from having pilotless cars on the road as a mass product like the smartphone is such a popular product? >> this is interesting. if you look at global trends, we are seeing urbanization. when you take problems and how do you solve those, a vehicle like this does fantastic. every time you stop, the engine is not running. that energy is going back into the battery.

next available for the time you accelerate. when you look at trends globally of large megacities and congestion, this is a vehicle that does very well. reporter: as we get more interconnected with appliances, whether indicating our living room or garage with smartphones, how safe and secure is it that we will not be hacked? use the same security or better than you would find in a bank. you doing ast are you are leading the innovation and electrification at ward -- ford to reduce anxiety and get faster charging? >> batteries are getting lower cost and more capable. but also we have been finding ways to actually charge batteries faster. i think we will keep seeing that trend. we will see larger batteries, see them being able to charge faster. i will be an enabler for more electrification, because people can move the vehicle and get as far as they need to go, recharge

in fairly reasonable amount of time and keep knowing. reporter: -- keep going. reporter: there are solar panels on the roof. gigi your cmac solar and concept here -- energy concept. is that feasible or just one? >> putting solar on top of a vehicle is feasible. the question is when does it make sense to do it. technology expense involved. and can you get enough energy to make it worthwhile. i think we are still deciding on that. if you look at solar in general, the prices of come down, but we need to make sure that the customer gets the benefit. we are still continuing to look at that. ♪

angie: the lion city is a roaring. first quarter gdp coming in better than expected their demands away from the opening of trading in singapore. you are watching us on "first up." top stories this hour, singapore is maintaining growth after the economy grew faster than expected in the first quarter. grew 2.6% year on year.

forecasting growth between 2%-4% for the full year. greece returns to the negotiating table today as the government blamed creditors for the long-running debt to pass -- impasse. alexis tsipras says the deal can be reached by the end of the month. but the government says they want and at any measures that will deepen the recession. another takeover offer on the table for time warner cable. smaller rival charter communications made by the company for just over $55 billion. that is a 14% premium on time warner's friday closing price. the deal could be announced at the end of the day. waster bid in 2014 but given up one the other bid collapsed. japan slipping

into the red. it is slinking into the negative territory. kospi is also lower right now. australian equities are getting a lift from fortescue, jumping the most in one month. that is from reports companies linked to the -- to china may be interested in buying it or raising their stakes. china is still the biggest worlds biggest iron ore buyer and its appetite is a key driver prices. let's bring in david stringer. is reallyike china heating up its interest in australia. that's true. the evidence points to that. if we look at the first quarter of this year, the value of deals by chinese in the australian mining sector was highest in two

years. it suggests things are heating up and chinese entities are on in hunt for assets either australia or held by australian companies. it's not just iron or, it is also copper and gold. we have seen this morning, i raised offer for the shares in northern gold it does not already own. " producer in western australia. a cost the board, interesting resources from chinese companies. angie: really wanting to be so involved across all of the sectors. ore.fically iron china already had a deal announcing investments in brazil's iron ore sector last week. what about the sector in australia? guest: australia and brazil are

the two biggest suppliers, exporters of iron or. it is no surprise there also very active in australia. biggestchina's steelmaker, they completed a deal that the head of a consortium took over a small australian miner just last summer. it wasn't because they wanted theyinor, it is because wanted involvement in a much larger iron ore project in australia here it best. the $6 billion west cobra iron ore project would give them a good position in the region of the country that already hosts the operations of bhp and rio. see thee steel we also giant chinese conglomerate, and australia.ne in

that has already cost about $10 billion. despite challenges, they are continuing to press ahead. plenty of investment and activity from chinese company in iron ore in australia. angie: another challenges the falling price in iron ore. are they not deterred by that? guest: seemingly they are not. i guess that is understood by the deals with brazil we saw struck last week. while the growth in demand might iron oreg, demand for from china is still growing. iron ore said last week that the reason many --estors

angie: david crossing over. thank you so much for us -- for that. checking in on corporate stories making headlines. david inglis is here. mays: rio tinto is able to $6 billion. it is hoping to tap 30 party and will be targeting 20 banks. after reeling the mongolian government ended a dispute. is giving consumption of boost. hughes and skincare products will be reduced by an average of 50% -- 15%. they want to move the economy away from exports. toy chinese buyers referred

overseas of course because prices at home are inflated by heavy taxes. let's stay in china. facing pressure to lower prices with the new rules kicking in the government will remove price caps and raise the level of competition. many have already introduced a new bidding systems to bring cost down. nearly $150e billion of prescription drugs were sold in china last year. those are the top corporate headlines this hour. one saw this coming. a rally that would more than double chinese stocks in one year. stocks to gained a mere 28%, but if you call that you are being pacifist. -- pessimist.

28% is a lot of people would kill for that. still one oft was the biggest expected returns from among 45 of the world major indexes. still falling way way short of what really happened. we are seeing stocks, the 50 largest companies traded in shanghai. --y have gained 100 30's 116% there. more thanai composite 130% itself. we are seeing that analysts, ever since they made the call they made the call that have been scrambling to update the those forecasts. they have been trying to assess chinese stocks, ss companies who are trading on multi-year highs as well as trying to dig to the possibility of further government stimulus. that is the thing.

predicting markets has always been very difficult. that is the analyst job. they are supposed to figure this out. why has china confounded them so much? sothis is because we have many more variables in china now. we have more individual investors in china than anywhere else. 80% ofuals make up equity trading and stock accounts have been rising at the fastest pace since 2008. one analyst is saying there's so thatmoney in the market, assessing chinese stocks has become much more difficult. regulators are trying to weed out speculators, but at the same time they had tried to expand the role of equity markets and helping companies raise funds as the government tries to rein in credit expansion. we are seeing more ipos this year. at least 120 this year. that is almost matching the total number we had last year. he also had a shanghai hong kong stack -- stockinette which gives

greater access to the chinese market to international investors. assessing what the market will do in china has become very challenging. analysts are giving it a go. there saying for the next year are expected to ask and 2.7%. -- expand 2.7%. angie: thank you for that. confidenceigns that is returning to the high-end consumer market in china with sales of super luxury cars starting to pick up. what is driving it? the booming stock market. let's bring in rosalind chin weighing up the evidence. when markets go up 100%, there are a lot of people with cash. reporter: the past five months alone the stock market has gone up 132% -- 136% actually.

he and he billionaires, every week. -- new billionaires, and new billionaires every week. and dealers have been the best ever in china since they set up in 2011. david mcintyre is the regional director and says growth in supercars as being seen in china. we're not just talking average luxury cars. super high-end. the cars that go for half a million or more than half a million u.s. dollars at times. the ones that can be customized with diamonds. angie: it makes your average mercedes-benz like a taxi. reporter: the people who buy these supercars are people who don't want to be seen with carts everyone else has. car.want a really unique

mclaren only sold 140 cars in china last year. but is expected to double, that is still a niche but very very high end market. angie: where do you put diamonds? reporter: rolls-royce actually says you can put diamonds in it. go maybe you can compensate with other bling. angie: you put the diamond in the customized umbrella holder? reporter: they insert them in the roof apparently. angie: oh ok. i know nothing of these luxury things. but why are super luxury carmakers targeting the china market? reporter: they are going to follow the money. of course, the stock markets have risen exponentially in the last year or so, especially with

the hong kong shanghai link giving that a boost. also, it is not just looking at china. it is looking at other markets in asia as well. in anticipation of new millionaires being minted, also looking at the middle east and africa. china has now i bigger market than all of europe. , one of the reasons why they are going to this area. the china luxury market has risen from 12% to 27% over five years. you want to follow the money. angie: all of the money is in china. thank you for that. islamic banking. indonesia tries to rival malaysia's hub for finance. we'll take a look at the plan when "first up," returns. ♪

angie: welcome back. you are watching "first up." indonesia is looking to a province to drive its campaign to be a hub for islamist banking. a $2nts to tap into trillion industry dominated by neighboring malaysia. haslinda amin has been taking a look at this. isn't this a little bit of an unusual choice? haslinda: it is a surprise toys. it is recovering from a 30 year conflict. bloody time of insurgency that claimed more than 30,000 lives. look at the religious makeup. muslims account for 98%. the highest percentage in all of indonesia, which has the largest muslim population in the world. regions, it dozen is the only one that has implemented sharia law.

concern is now rising islamic flogging among punishments for things like cheating and adultery. but islamic finance has grown there compared to conventional banking. 18% growth. banking has been driving. there is demand. it makes sense for it to become an islamic banking ground. it may provide a roadmap for the rest of indonesia. angie: so then how will it develop islamic finance market? what is the plan? haslinda: it will be easy. it is still early days. first thing on the cards is to to fully conform to islamic banks. it will be the first in indonesia. shareholders will vote this week. the move is expected to set the way for the government. it is already thinking of

transforming a state lender. that is a significant move for indonesia. angie: thank you for that. checking stories making headlines. the beans says its aircraft will continue to fly their usual route over -- and the philippines says it's aircraft will continue to fly their usual routes over this unit plans. disputed islands. manila is pursuing arbitration to try to dissolve -- results territorial disputes. the fbi says two planes had been searched at jfk airport after anonymous threats were made. military jets scrambled to escort and air france jet after a caller claimed a chemical weapon was on board. the plane landed safely and the search found nothing. said it appears the

calls were made by the same person. more than 500 people have died during a heat wave in india, seeing temperatures approaching 50 degrees celsius. felt all theeing way to delhi. animals seek a way to cool off. outdoories are urging to take precautions with high temperatures forecasted continue. this week marks one month since the devastating earthquake hit nepal. a claimed the lives of more than a dozen people and left many more injured. bloomberg has been to see how people are trying to rebuild their lives.

angie: so much more recovery to do there. coming up next we have our eyes on the market with two korean

companies in focus this morning. stay with us. you are watching "first up." ♪

angie: welcome to the stock exchange. let's check in with trading under way in asia. there were local media reports saying south korea could not build -- are trying to build their second plant in alabama. down almost 1%. the cost the overall is falling. -- kospi overall is falling. angie: then why is the other one rising? we have had word of this since march.

reporter: kakao will be launching its mobile video and sharing service. very popular. does what they are expecting to unveil this. -- next month is when they are expecting to unveil this. --lysts angie: not liking it as much as david stock. david: thank you for your support. what do we have here. engineering services firm in tokyo. 30 million u.s. dollars to ofsult in the construction two jetties in the southern port of iraq. a big business. risky part of the world.

angie: a little bit. that is the verdict from the stock exchange. business," up next. reporter: hello. we are having a look at the state of bond markets and central-bank divergence. at that andg a look looking at a tuesday situation, that is his argument. then we have justin butler from misfit. angie: how is this going to fit in? reporter: all about technology. it must be a compelling since xiaomi has made an investment.

also trending in social media, the chief design officer at apple. angie: sounds stylish. thank you for watching us on "first up." stay tuned. ♪

rishaad: this is "trending business." let's have a look at our top stories. on china'sing renewed iron ore. one of the world's biggest buyers could use to drive the market. the fed refuses to be backed into a corner about when rates will rise. we hear from stanley fch