♪ terror andct of hague, 50 people gone that down at an orlando nightclub at the worst shooting in american history. elsewhere, the bears are ready to pounce on alibaba, a regulatory inquiry and the loss of an investor. shelving what may have been the biggest ipo in the world this year. welcome to "first up". i am angie lau and hong kong, streaming on mobile and

bloomberg.com. let's check markets in asia pacific. in new zealand, down a quarter of a percent, the new zealand .ollar at $.70 the strength of the kiwi weighing on equities and exports. over to japan, futures trading in chicago, and it is pointing to a much lower open from friday's close, the japanese yen continuing to rise. no trading inket, australia, a public holiday for the queen's birthday. morning,tory this president obama says a massacre at a gay nightclub in florida is an attack on all americans. it is being investigated as an act of terrorism. by a lone 53 wounded gunman in the worst mass shooting in u.s. history. we have yvonne man with the latest on this.

asnne: the attack happened 300 people were dancing and drinking. people described chaos and horror with dozens dead and injured as survivors rush to escape. ae assault was followed by three-hour standoff with people trapped inside becoming hostages. teams form thelt ves tosetting off explosio distract the gun man. >> we are dealing with something that is unimaginable. ask for a state of emergency. we are also issuing a state of emergency for the city of orlando so we can bring additional resources to bear to deal with the aftermath. the killer has been identified as a 29-year-old u.s.

citizen born in new york to afghan parents. it is believed he was armed with an assault rifle and hand gun. he made a phone call before the attack in which he talked about so-called islamic state and swore allegiance to the militant group. the fbi had previously afterigated mateen inflammatory comments about terrorist groups. inagain came to attention 2014, but no incriminating evidence was found. the islamic state that claim responsibility in a message several hours after the attack, but it is not known whether mateen had direct contact with the group. here is what president obama had to say. >> the fbi is investigating this as an act of terrorism. i directed that we must bear no effort to determine what if any inspiration this killer may have had.

is that he was a person filled with hatred. in the coming days, we will uncover why and how this happened and go wherever the facts lead us. >> it is a horrible tragedy. sad,e mourning, heartbroken, and it is not really time for any sensational news and rush to judgment. 's father said religion had nothing to do with the killings and that his son may have been motivated by homophobia. worst mass shooting in modern u.s. history. angie: we are expecting the latest check on the economy.

our china correspondent tom mackenzie joins us now. what can we expect. / tom: another litmus test for the chinese economy. they will release data on industrial output, retail sales, fixed assets investments, and real estate, and construction. the forecast for industrial output are 6% growth year on year for the month of may. that is in line with the 6% we saw in april as well. that will be an important gauge to see the demand for china's and how muchtput progress the government here is making on cutting back on overcapacity. that is a probably seem to be talking about so much nowadays. expected to are come in 10 point 1% in may year

on year, also in line with april. retail sales were slow willby auto sales, so that be an interesting component. retail sales a big part of the consumer sector here, a sector that is increasingly doing the heavy lifting is a slowdown in manufacturing and heavy industry slows. last month, we saw a reluctance from businesses to invest in fixed access -- assets. will we see any uptick in that data point as well? all those things worth looking at when they hit at 10:00 local time. comes in the data weaker than expected, can we expect more stimulus? that is a key question. bloomberg intelligence have been punching the numbers, and their assessment is that if the data comes in line with expectations, then policy will be kept on hold. the question of whether or not

easing will happen, there will have to be according to bloomberg intelligence a fairly drastic come down in the numbers or miss testaments, because there is this tension within the toernment here as to how balance this economic slowdown, whether to increase credit, and there seems to be an increased focus on reducing that credit, and we saw the comments from the imf over the weekend talking about their concerns about corporate debt loads in china. policymakers are very aware of that. they are feeling the pressure from the u.s. treasury secretary when he was talking about overcapacity and pointing to some of the credit and debt problems in manufacturing and heavy industry here. they will want to keep it on hold if at all possible. increasing credit into the system is something they would like to avoid at this stage as they try to fix some of the more central problems in the economy. we will have to see what the data says when it comes through.

angie: data dependent. thank you for that. live from beijing. other headlines for you, the imf is urging china to tackle its ballooning corporate debt. isid lipton says the problem serious and growing and must be addressed immediately. bloomberg intelligence estimates that china has accumulated debt faster than any other g-20 nation over the past decade climbing to 250% of gdp. former vice governor of the pboc says china needs proper transparentforms, bodies to reduce its systematic risk. , if poorly economy handled, small problem's could assume far greater importance. it should be the goal of future reforms to let financial products returned to the role of serving the real economy in a trance ford -- straightforward and transparent way.

it means constantly adapting to the needs of the market. chancellor angela merkel has called for investors to have the same rights as local shareholders in china. meeting the premier at the beginning of her visit to at it is she said th crucial and important to relations with the two countries. she said no one wanted a trade war between europe and china, and germany supports a stronger voice for beijing and the imf. widening investigation into te group of and into the biggest ipo this year. it has indicated that it is shelving its ipo offering. we are taking a look into this. what is lotte saying now. bethey say it is going to difficult to complete the procedures necessary to finish

the ipo process by july. it is looking like it is indicating that this ipo may not happen after all. it is not clear. this ipo would have been the world's biggest ever at $4.5 billion. if we look back, prosecutors raided the headquarters and offices of some units, including and it isunit, looking into allegations of slush funds and investment. sent200 investigators were to 17 locations related to the group. the group says they will cooperate fully with the investigation. it is huge, 89 divisions in korea, and it has assets worth more than $86 billion. te is the biggest

operator in korea and the world's third-largest operator of duty-free shops. this area is one of the most lucrative for the group. angie: hotel lotte was supposed to complete the ipo this month, wasn't it? wouldwas, but said it push the deadline back to july. this after another investigation into allegations of bribery concerning the sister of the , and prosecutors are looking into allegations that she and other executives accepted payments from a cosmetics maker in return for preferential treatment. from isn't any comment either side, but it is the latest in a string of setbacks for the group. lostvember, the hotel unit

a license for one of its outlets. fact, they were banned from broadcasting in prime time for six months because it was accused of two -- it had accused to executives of bribery. there had been a coup attempt from the older brother of the current chairman. the chairman has managed to push that away, but still, the pressures are continuing for the group and hotel unit with its planned ipo. angie: like a korean family drama and rely. thank you for that. you can get a lot more on that story and all the days top stories at our digital destination, bloomberg business, bringing together the best of bloomberg news, business week, bloomberg television all-in-one address.

tie one's new leader blocks her predecessors attempt to visit hong kong. china's appetite for pork has doubled shipments so far this year. that is bloomberg.com/asia. check it out. the brexit vote is 10 days away. we will speak to one of the uk's leading economists and a supporter of britain leaving the eu. stay with us. ♪

angie: it is 7:15 a.m. in hong kong. theident barack obama says gunman who killed 50 people at a florida nightclub was filled with hatred to the massacre is being investigated as an act of terror. another 53 people were wounded in the attack. it is the worst mass shooting in american history. the killer has been identified as omar mateen, a 29-year-old

u.s. citizen born in new york to afghan parents. he talked about islamic state in a 911 call you for the attack. is therefore ae further reminder of how easy it is for someone to get hands on their weapon to shoot people in a school or a house of worship or a movie theater or in a nightclub. we have to decide if that's the kind of country we want to be. nothing, it is a decision as well. angie: the inclusion of chinese as ares has been described historical certainty. the prediction days for the decision to add the yuan to a global index. its new draft of oil

contracts still needs revisions, but is confident the first deal will be signed soon. theoil minister says government and regulators have reached a partial consensus on the language, but the first deals are 2-3 months away. iran is hoping the new contracts will draw $50 billion of foreign investment every year from global oil companies. powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. here is a look at the big events we are following for you this week. the latest data showing the chinese economy stabilizing, so is the cause for concern? the imf issues its verdict when it releases a report on tuesday. over the weekend, the imap second in charge said the country should take steps to attack its rising debt. this has been considered since

2013, and a decision has been delayed twice because of concerns over market accessibility. chinanclusion would give waited involvement of 40% in the index. the boj expected to keep policy on hold thursday, citing waning support from the ruling party reducing incentives for more stimulus ahead of the election next month. remains far from the inflation target of 2% after three years of unprecedented action. thursday is a big day for entertainment. that is when shanghai disney opens its doors for the first time, showing china and the world what 5 billion dollars buys you in the home park -- themepark game. prime minister david cameron says he is confident that the campaign to keep britain in the european union is working as the latest polls say opinion is too

close to call. the survey for the observer showed 44% support for britain remaining, 42% backing brexit. poll for thea sunday times online showed 43% of respondents wanting to leave the eu, with 42% happy to stay. let's discuss the referendum right now with the executive economics, capital normally based in london, but joins us now in hong kong. should britain stay or go? >> well, i have a decided position on this. i think it is in britain's interest to leave, but there are different views on this. this is not all about economics. lots of people in britain are view ofn this on a sovereignty, control, and migration. , if you take at look at the bloomberg probability index at the bottom of your screen, let's pull it up right now, it shows that over

the weekend, the polling shows that in fact of those in your camp, there's about a 10 point lead right now for brexit actually happening. >> yes, what has happened in britain over the last couple of weeks is that opinion has been turning towards the leave camp as anxiety about migration has been growing. one thing we have learned over the last couple of years is that these polls don't really tell us a lot. we go to the latest elections, the polls were hopeless. there were several occasions where the polls have been seriously wrong. all i know is that it is really tight. angie: if it is tight, there can't be certainty. let's say it is 51%, ok? still, half the country wanted to stay. >> even if we vote to leave, some people are beginning to

think that actually we might not leave, because this referendum is advisory. in order for britain to leave, after the referendum, a bill has to be passed in parliament, and parliament is strongly in favor of staying, so this will see very uncertain whatever the result. angie: you are one of the very few, if not the only one i really heard from with an economist point of view, who supports leaving. most economists have expressed the fall ofe, britain and the eu, the contagion effect would be hard to quantify, you think otherwise. what you think would happen? >> in the short-term, there could be some harm done to britain because there is uncertainty. i think this may already be happening, people putting off

spending decisions. that is possible. if you look out over the next few years, i find it difficult to believe that britain will not do well outside. those people who think we will be harmed seriously are talking about full access to the single market. people in hong kong had difficulty accessing the single market. all around the world, countries trade with the european union without being members of it. all britain would do if it left the eu would put itself in the same position as other countries. angie: a lot of countries don't support it, including china. stay with us. we have to go to break right now. roger will return for more on brexit when "first up" continues. stay with us. ♪

angie: welcome back. you're watching "first up".

we are still here with the executive chairman of capital economics. leave,d britain should supports it. we talked about what could happen to britain. what about the eu? i am more worried about the eu than britain in the circumstances. if you think about the world economy and vulnerabilities in the world, we have then threw a year where so many are worried about china, i think it is clear that europe is what you have to worry about. that is the center of low growth. the eu,in were to leave there would be calls for referendums in other countries in holland, sweden, the political situation in france is so you could see this leading to a series of results which would worry people and perhaps unsettle the eurozone. angie: if you are so worried about it, what you supported? >> that is a different kettle of fish.

you have got to think about the long-term, decades into the future. it has taken 40 years for britain to have a referendum on the subject. what happens next tuesday is not the point. for british people, this is mainly about sovereignty and control. brexit wast that a going to cause a cataclysm for europe or the world economy, i would not support it, but we don't know that. we don't ourselves believe it will cause a cataclysmic result. it could cause political development's which would change the structure of your. angie: china does not want that. like so manya, other countries and organizations, is in favor of the status quo. japan does not want it either. we have lots of japanese firms in britain who really want written to stay in the eu. history suggests that they are not really good judges of what

is in britain's estrus -- interest. , ife: could this trigger there is a brexit, could this trigger global contagion, a global economic meltdown? is unlikely. the fact is that the world economy and a number of ways is looking a bit healthier. then it did earlier this year. thea was a big worry at beginning of the year, oil prices were week, commodity places were on the floor, that was a more probable meltdown time. stabilize, china has the oil prices up, lots of emerging markets looking better. i think this catastrophe story is overdone. angie: enjoy your capital economics asia conference. capitalws, not economics, to be clear here. thank you for joining us in our

studio today. coming up next, the bears are out for alibaba. why some investors are losing confidence. that story and a

it is a public holiday in sydney for the queen's birthday. are 30 minutes away from the opening of trading in japan and south korea. story dominating the news, president obama says the shooting at the orlando nightclub was an attack on america. he called the killing of 50 people an act of terror and hatred. gunman was ae 29-year-old u.s. citizen of afghanistan's. he was armed with a handgun and an assault rifle. he was killed by police after the worst mass shooting in modern american history.

>> he attacked more than a nightclub. it was a place of solidarity and empowerment. people came together for awareness and to speak their minds. this is a sobering reminder that a tax on any americans regardless of race and ethnicity religion or sexual orientation is an attack on all of us. this is bloomberg news. let's check in on markets in the asia-pacific region. extending losses this hour. check out this new zealand dollar figure. strong kiwi definitely waiting on dairy farmers. let's take a look at japan. futures trading at chicago. this is what is pointing to. compare that to a close of 601.

a regulatory investigation is weighing on alibaba stock. traders have never been more bearish on the chinese company. shortselling as soaring to a record high. the bad news just he's coming for alibaba. >> we've seen factors upon factors that have put a target on alibaba's back. life is not a consolidated entity. not huge in terms of the reduction but still unsettling because they have caught the market off guard. of 120 million.

shares are out there to borrow for shortselling. since december what we saw about 60 million. it has doubled since then. coming to short interest. the stock has been on a roller coaster since its ipo. shares down about 6%. writing on this wave of bad news that keeps coming in. take a look at the fourth quarter sales. still relatively strong for alibaba. the digital milestone in the march quarter.

look at relative valuations. 23 times projected 12 month earnings. seven commerce providers. still looking pretty cheap among those. some analysts say they are still not sure when those rifts are going to be realized. angie: let's take a look at the news. news says an announcement about the supermarket chain could be made this week. china has been looking at walmart since 2014.

walmart declined to comment on this report. saynese online recruiters they will look for an investment bank in the next few months to help prepare for ipo in about five years. earlier this year bids were raised about $37 million. selling shares to yahoo!. his rating was launched in 2009. it operates membership websites. a chance encounter with warren buffett is worth $3.4 million. the annual charity lunch auction. will dine with buffett at smith and lewinsky steakhouse. in aid of a charity that helps homeless people.

china'sk set to become highest grossing high is hollywood film since furious seven. ticket sales have gone to a hundred $57 million. in north america the film was beaten to the top spot by a horror movie. that was a look at some of the stories making headlines today. angie: japan's favorite messaging app has finally pulled the trigger on its ipo. why now? the company now that stories about a billion dollars. we got bloomberg's tech reporter tracking the story for us in tokyo. this doesn't seem like a particular good time to go public. but they are doing it. why now?

>> back in 2004 the company could've been valued at ¥1 trillion. those kinds of valuations kind of made sense. pagefour was when facebook $22 billion for whatsapp. user growth was growing head over heels of that time. justumber of subscribers 2014. since then user growth has slowed down. you might have to go ahead and raise the money. the financials actually look pretty good. growing about 40% last year. from 40% of that also came

games and streaming music which might be surprising to some people. is among the top 10 publishers of content. these stickers are still contributing to revenue. money is coming from japan which is its number one market. taiwan and thailand are second. most of the basis here that underscores the company's challenge of having to go out and get new users before we see the other messaging services get to them. angie: if you want to know what apple is planning just ask siri.

alex: the apple worldwide developers conference is where they all gather in san francisco and apple shows the new products. these parks are not new iphones are new macs. they are software developments. they will be in your operating system to your mac in your at apple watch and crucially for your iphone. that accounts for about two thirds of apple's revenue. seedevelopers are going to an update to apple music which has had a tepid reception in the year that it has been available. it is been a troubled product. kit which developer allows programming's to build siri into their applications. they could potentially order a pizza or a taxi from over -- googler--

just by asking the computer to do that for you. a 30% moment apple takes cut of absolutely everything processed through the app store. if you can convince the customer to subscribe to it for more than a year then apple will cut the percentage that it takes. down to 15%. people to buys subscriptions rather than one-off purchases. that helps apple predict its revenue stream for the year. while locking in customers. any attempt by washington to tweak the draft runs the risk of the deal collapsing. what is singapore's thinking on >> singapore says the

tpp goes well beyond typical trade agreements. it reflects u.s. commitment in asia across the pacific ocean. it is central to president obama's economic and military rebounded asia. as you know the tpp was signed last year. 12 member countries including australia and vietnam accounting for 40% of the world economy, it is the biggest u.s. trade deal since nafta in 1994. is now waiting to be ratified by the legislatures of the 12 member countries. there is risk that the treaty may unravel. both u.s. presidential candidates, donald trump and hillary clinton, oppose the deal. companies like ford motor oppose the deal. say they wouldps

safeguard company profits at the expense of workers. some u.s. lawmakers have called angie:to be renegotiated what are the chances of tpp being ratified anyway? >> the best chance to ratify the pact will be after the november elections the lame-duck session of congress before the new congressional term begins in early january. republican senator john mccain was in singapore recently. he alluded to that. that could happen. the risk lies in any attempt to he's made agreement clear the deal will fall through if anything changes in any way. that would be unacceptable to member nations.

highly anticipated visit. in august he will be hosting a dinner with president obama. singapore is the only southeast asian country to be honored with a state dinner in obama's eight years in office. it is a recognition of the importance of singapore. up, we'll take a look at how we are expecting asian markets to open for the week. this is bloomberg news. ♪

angie: the stories may headlines around the world. the fbi says the gunman who killed 50 people in a florida nightclub had pledged allegiance to the so-called islamic state before the massacre. the 29-year-old was killed in a aootout with police, he was

u.s. citizen born in new york to afghan parents. he has worked as a security guard. it is the worst mass shooting in u.s. history. president obama said it is an active hate that is being investigated as terrorism. taiwan's new leader has blocked her predecessor from making a landmark visit to hong kong. the former presidents travel request because it needs more time to make security arrangements. had been due to address a journalism awards ceremony in hong kong on wednesday. it would've made him the most senior taiwanese official to visit the former british colony since 1949. a surge in weapons imports by saudi arabia helped push global arms sales up by more than 10% last year. more than twice what it spent the year before.

purchasers also rose across much of the middle east and southeast asia. -- u.s. is still the eu world's largest arms exporter followed by russia. it is difficult to agree to a deal on jet repayment. he says there is no rationale for basis of inquiries by malaya. it is making it even harder to raise resources. he is thought to all about $1.4 billion links to kingfisher airlines. he is living in britain. a powerful explosion in beirut tour several cars to pieces and wanted one person. badly damaged one of lebanon's biggest banks. the blast happened as local people sat down for a meal. after a daylong fast of roman

on. this is bloomberg news. interest rate decisions in the united states and britain and japan top -- top the agenda this week. the week ahead on wall street is likely dominated by the federal reserve's two day meeting on monetary policy. closelys are listening to see what the policy have to say about the economy. and when they will raise interest rates. it is all most certainly will not be pulling the trigger on this particular meeting. especially as they assess the u.s. economy. is still seems to be too fragile to withstand higher interest rates. u.s. analysts will be closely watching the meeting in japan. the latest round of economic data here in the united states will likely shed light on the retail sales and consumer

prices. both of which are forecast to rise. which economists say may decline in may. after searching one month earlier. that only adds to the mixed economic picture. the federal reserve is faced with a tough choice. apple will be holding its annual software development conference. it will also be the site of bloombergs tech conference 2016. twitter's executive chairman will be among the speakers. while last week's run at a record for the s&p 500 disappointed investors and came up one point short. another run at the all-time high is possible in the week ahead. although strategists say ongoing concerns about global growth and brexit could keep many u.s. investors on the sidelines. has been later

than normal. angie: some breaking news. symantec will buy tech systems -- blue coat systems. symantec has created a new office of the president after the surprise to parts or of its ceo. asian futures are pointing to a negative start for the trading week after global markets closed lower on friday. juliet is watching the board for us. what can we expect when japan and korea open shortly? investors woke up on

saturday and saw this red coming through from wall street. a lot of trepidation for markets in the asian region. it is looking less likely that we will see the market moving higher. ball flight 1.3%. camean see the asia index under quite significant selling pressure. down to half percent. australia is closed as the country marks the queen's birthday. in japan there is a big bank of japan meeting this week. we are seeing the yen start to strengthen. korea futures also suggesting we will see losses.

0% on the bloomberg function. very few people think they will increase rates. a few weeks ago they thought there might be as much of the one in three chance. the nikkei is suggesting a forward down the corridor futures. australia is closed. do that weakness we have seen and commodities. having a look at this flight to safety haven. the yen is strengthening. also seeing quite a bit of flight to safety haven's in gold prices which are up by about one third of 1% there.

there has been a little bit of a poll on oil. mainly due to an increase in u.s. drilling rigs. that $50.gh just having a quick look at the australian dollar. angie: coming up, the game maker has caught one of our reporters eyes. after taking a big operating loss will be game over for the stock? that is coming up on first up.

angie: breaking news. will buy blue coat

systems. for more than $4 billion. that is according to the wall street journal. it is reported to be an all cash deal. it will take on the symantec ceo role. you can see the one-year chart we saw that big plunge in the first quarter. forecastlowered its for the earnings. and revenue. this after the world's biggest maker of cyber security software said it is under pressure after pc sales were dropping quickly. ceo andbrown is the he's uprising we in late april. shares plunged there. the new ceo has been named as well. to the stock exchange where we are taking a look ahead to the openings of japan and korea.

>> i'm looking at mobile phone gaming. about 35%. it forecast a breakeven first quarter at new levels. after full-year operating loss. it was not as bad as had been originally forecast. foras originally forecast $21.7 million. it is in one of the pioneering companies in this industry. putting a lot of money into virtual reality. the shares got a bump up. the manufacture of car parts is reporting that some funding is buying that nissan is selling.

we'll see how that goes today. thank you for a much.

♪ angie: 50 people gunned down in an orlando nightclub. president obama says it was an act of hate and terror. the killer claims islamic state allegiance. lotte group is shelving its ipo. message delayed, finally pulling the trigger on its share offer, but it's hesitation has cost billions. coming to "first up" live from hong kong and streaming on mobile and bloomberg.com. a quick check of markets.

asian stock futures have been tipping into negative territory, and there we have it. nikkei 225 down 300 points from friday's close. that stronger yen is at play. this ahead of chinese industrial production, retail sales figures, fixed assets data , coming out at 10:00. the kospi coming online, also in negative territory. let's see what the day holds. is weakening as well. no trading in australia because a public holiday for the queen's birthday. all right, our top story this morning. theident obama says massacre at a gay nightclub is

an attack on all americans and is being investigated as an act of terrorism. 50 killed, 53 wounded by a lone gunman in the worst mass shooting in u.s. history. what are we learning about the killer here. ? tom: he has been identified as omar mateen, a 29-year-old u.s. citizen born in new york. he made a 911 call before the attack in which officials claim he said he was a follower of the so-called islamic state. he had come to the fbi's attention in 2013 when he made comments to coworkers about links to terrorist groups, and then the following year investigated for possible ties to an american who became a suicide bomber in syria, but no incriminating evidence was found. hadas emerged that mateen been working as a security guard

since 2007. the company says they have fully cooperated with law enforcement authorities and prayers and thoughts are with friends, families, and people affected by this unspeakable tragedy. angie: the presidential candidates have also responded. what are they saying? donald trump called this the worst attack since september 11. should president obama resign because he disgracefully refused to say the words "radical islam." he accused hillary clinton of the same and predicted such attacks. he took to twitter to say the following. clinton meanwhile said "we need to redouble our efforts to defend our country from threats at home and abroad and keep guns like the ones used last night out of the hands of terrorists

or other violent criminals." here is what president obama had to say about the investigation. take a listen. the fbi is appropriately investigating this as an act of terrorism, and i directed them to spare no effort to determine what if any inspiration or association this killer may have had with terrorist groups here it what is clear -- groups. what is clear is that he was a person filled with hatred. wille coming days, we uncover why and how this happen and go were the facts lead us. 's father said his son may have been motivated by homophobia. security has been stepped up at gay pride events and gave venues across the u.s. angie: thanks. checking on some other stories making headlines. the international monetary fund is urging china to tackle its corporate debt.

pton says the problems must be addressed immediately. china has accumulated debt faster than any other g-20 nation over the past decade climbing to 250% of gdp. it should be the goal of future reforms to let financial products returned to the role of serving the real economy in a straightforward and transparent way. innovation does not mean novelties. it means consommé adapting to the needs of the market. a former vice governor of the pboc says china needs proper financial reform and transparent supervisory bodies reduced its systematic risks. the economy is not raising if poorlythreat, but handled, small problems could assume greater importance. you heard her speak a moment ago. the inclusion of chinese a-sha

res in the msci has been described as a historical certainty. comes days just before a decision on adding yuan -denominated shares to the index. he said the index without a-sha res is incomplete. semantic will buy blue coat systems for more than $4.5 billion. an interview with the chairmaen they had been searching for a ceo since michael brown stepped down in april and may disappointing financial results. the bluecoat deal is expected to be completed by october. because of a here widening investigation into korea's lotte group. the conglomerate's hotel

division has now indicated that it is shelving its offering and what is a latest in a string of issues. into thising a look korean drama unfolding in real time. what is lotte group saying here? it said in an e-mail statement that it looks like it will be physically difficult for ipol lotte to complete the given the measures it has to take, for example additional it disclosures. -- additional disclosures. some units have been rated, including the hotel unit, and lotte home shopping, allegations of slush runs and investment.

there were 200 investigators sent to 17 locations. lotte group says it will cooperate with the investigation. in korea alone, $86 billion in assets. it is the largest hotel group operator in korea, manages an amusement park, lotte world, and is the manager of the largest duty-free shops. angie: it is the key source of the troubles it has seen recently. there is another investigation ongoing looking into allegations of bribery involving the chairman sister. other -- other lotte group executives accused of accepting preferential treatment at duty-free shops. they are looking into this. a load of latest in

pressures on the group. in november, and lost its license for one of its duty-free outlets in seoul, korea. just last month, it was banned from its -- it's home shopping site was dan from broadcasting in prime time for six months executives were accused of bribery. this comes on top of a family coup that the older brother of the chairman had tried to stage, group facing a lot of issues at this point in time. angie: you can't pick your family. thanks for that. japan's favorite messaging app has pulled the trigger on its ipo, but it cost it big bucks. the company is looking to raise $1 billion now.

our tech reporter has been tracking the story in tokyo. have made $4 billion, now may be making $1 billion, is now a good time to go public? >> even at that modest you were is the biggest ipo by a tech company this year, which says by ames about where the ipo market is right now. 2000 14, when the company originally planned to go public, it could have been valued at ¥1 trillion. those sort of violations made sense back then. at that time, the company's users -- in a year, which would have justified a lot more higher number, but since then, user growth has slowed and facebook is making inroads in asia, so the bottom line is that it is

probably now or never. line stack ups against global rivals? an impressiveilt business for itself. they generated about $1 billion last year, most of it coming from games, about 40%. line ranks among top 10 game publishers for smartphones by revenue, together with kandi crush and clash of clans. stickers,% gain from cutesy rabbit and bunny stickers, that business is still thriving, but the business is slowing. the number of active users has not changed much in the past year, which underscores the need to capture more users in other countries than japan. angie: thank you so much. live from tokyo. some breaking news now in the and the chinese

right hailing app. didi receiving $600 million investment from china life. uber raised overer $3 billion from the saudi arabian sovereign wealth fund. coming up next, an addiction t u might find it hard to kick. ♪

>> 8:14 a.m. hong kong, monday morning. the stories making headlines around the world. the gunman who killed 50 people in a florida nightclub had spoken about the so-called islamic state in a 911 call before the massacre. wasear-old omar mateen killed in a shootout with police, a u.s. citizen born in new york to afghan parents and had worked as a security guard. this is the worst mass shooting in u.s. history. president obama says it is an being hate that is investigated as an act of terrorism. chancellor angela merkel has called for investors to have the same rights as local shareholders in china. meeting in beijing, she said the rule of law was crucial in relations between the two countries.

tradeid no one wanted a war between europe and china and the germany supports a stronger voice for beijing and the imf. new draft oil contracts still need revisions, but confident the first deals will be signed soon. and oil minister says the government regulators have reached a partial consensus on the language. the first deals are 2-3 months away. contractsng the new will draw as much as $50 billion of foreign investment each year from global oil companies. minister david cameron says he is confident the campaign to keep britain in the european union is working as the latest poll say opinion is too close to call. the survey for the observer shows 44% support britain remaining, with 42% backing so-called brexit. online poll in the sunday times shows 43% of respondents wanting to leave the eu, with 42% saying they are

happy to stay. powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. angie: markets trading in the asia pacific, looks to be a down day across the region. losseskei 225 extending beyond that 2% markup on the back of a stronger yen. the kospi below 2000 points. it is a very heavy week. investors are waiting for rate decisions this week. we have chinese data coming out today. my next guest says central banks are in a world of their own. asia-pacificw is cio, managing $6 billion in asian equities, $20 billion in asian stocks. they are disconnected from the rest of us? >> that's how it feels to me sometimes.

join theank sometimes asset management side, and they don't understand what they are doing anymore. they seem to be an a mode they can't get out of. that is why i call it hotel california. they have started something and there is no easy x it. exit. 50 basis points, that will be an achievement, but means interest rates or zero. angie: you can check out any time, but you can never believe. i know the classics. the fmo's he wants to leave, wants to find the next it. plotat's what the dot always suggests. it is much as hope as it is reality. don't underestimate that inflation is still above 2% in the u.s.

interest rates at zero? i don't know. angie: we are also finding yields across the board as investors flee for the safety of bonds, also going into negative territory. >> yeah, so maybe it's just my frustration as an equity investor. haveworld is something we never seen. everything we have modeled is difficult. what can you do when it is close to zero? what is the true value of the underlying equity? that makes it hard for me to say this is where we are going because we are in an environment that seems quite unreal. your assetquity is class, where are you specifically? enjoy the favors of japan, although today it is not

a market that seems to want to go up. i believe the corporate there are doing the best things in the , nowest of shareholders following what has been happening in the western world, putting attention to shareholder value, putting attention to corporate governance, and there should be at re-rating in the japanese market. abenomics may not be working exactly, but the micro things and companies are doing more things in the interest of shareholders. angie: what about india? a it is pleasant to be in country that is actually still and a normal world, where interest rates are at a certain level, but there is attention on central-bank policy because interest rates are 6% to 8%, depending on what majority you look at. market is ok, and i think the most beneficial thing that india has is that domestic

investors are starting to return to the market, just like we have seen in other countries where interest rates are going down, then departments become less attractive -- deposits become less attractive. we are not as bullish on gold anymore. bullish on not so gold anymore. i'm not sure whether that is the right thing. then my sense as a value investor is ok, you are paying quite a high premium for those equities already, so i find it hard to find interesting stocks, but i do like the structure of the market. gold, they may not like but a lot of people fleeing to golden light of brexit, fmoc, boj. >> gold was traditionally a safe haven in case of inflation. that is not on people's minds at the moment. it also appears to be a safe haven for deflation.

traditionally the cost of holding gold is quite high because you don't get any interest on it. the cost of holding gold is getting better and better, and that's a major reason why gold could continue to go up. central banks are buying gold, switching out of bonds. if you are buying european bonds , you might as well buy golden not pay anything. angie: buybacks and dividend increases support stock prices, so why aren't we seeing more upside here? don't knowpeople where the growth is going. it is a very uncertain environment, so people are flocking to what they consider to be quality, and that has been a major issue in japan. quality investors are everywhere. value investors like me are nowhere to be seen. they are afraid. the versionsu see

between valuations in the japanese market becoming quite extreme. stocks that have that sense of stability and quality are trading at high levels. stocks that are more exposed to the cycle are trading a very low levels. angie: where is fair value in this region? slightlyalue should be higher than where we are, supposing china will stabilize, we should see some upside, but i don't expect a lot from the region this year. angie: we will leave it there. next, a double digit drop, a warning that the pound could be pounded if britain leads europe. ♪

>> the dollar has posted the fifth weekly gain as traders look to the fed. it slumped on june 3 win a

-- when a jobs report lackluster jobs report decrease the likelihood of the fed raising rates. brexit, onens about analyst addicted the pound could fall 30% if britain leads the eu. -- analyst predicted the pound could fall 30% if th britain leaves the eu. a new poll shows the leave campaign gaining traction. africa leading losses with em currencies. unless risky asset is the yen .allying

continueding the yen to strengthen today, up 4/10 of 1%. i also want to check in on the aussie, a little weaker today. now a little bit higher. the head of income and fixed said australia's economy is worsening in the currency could fall to 40 sense nation is spending like it is stuck in 2006. those are the stories driving forex markets. angie: how china's manufacturing is faring win "first up" returns. returns.first up" ♪

angie: it is 9:30 a.m. in tokyo. it is raining over the imperial palace, as it is apparently over global markets. the nikkei 225 down. you're watching "first up". top stories this hour, the gunman who killed 50 people and of florida nightclub in america's worst mass shooting had been working as a security guard since 2007. omar mateen was 29 years old, a u.s. citizen born in new york to afghan parents. the fbi had investigated him declaredore, saying he

allegiance to so-called islamic state and a phone call just before the massacre in a gay club in orlando. the presidential candidates have been sparring over the orlando attack, with donald trump saying it proved he was right on islamic extremism. hillary clinton clinton is calling for tighter gun controls. the killer was armed with an assault rifle, and the democratic candidate said the weapons of war have no place on our streets. presidentwhile says obama should resign for refusing to use the words "radical islam" in his remarks. >> the place they were attacked as a place of solidarity and empowerment, where people had come together to raise awareness, speak their mind, and advocate for their civil rights. so this is a sobering reminder that attacks on any american regardless of race, ethnicity, religion, or sexual orientation is an attack on all of us. and asian stocks are

dropping for third day following a global retreat and equities and commodities. uncertainty taking hold is said hold ahead of central-bank meetings and the u.k. vote on brexit. oil also falling in early asian trade. powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. australia is closed today to mark the queen's birthday holiday. let's see how japan and korea are faring following that weakness on friday on wall street. it is risk off sentiment today, investors bailing out of equities. every sector in the red. that stronger yen really putting downward pressure on export stocks. , only two out225 of 225 of the stocks are higher at the moment.

oil and exporters, but gas players coming under huge pressure due to that weakness in those commodity prices. down 1.3% in kospi the first half hour of trade. by 6.3%.pping down futures for china and hong kong also suggesting we will see selling coming through. there are a lot of central-bank meetings for investors to focus on. the bank of japan meeting this week as well. we are expecting to see investors treading water in till we get more clarity about monetary policy from the big central banks. having a look at some of the big movers across our region, the best performer on the regional index so far. es -- and will

conduct a reverse stock split. hokuryo and hyundai merchant are two that we are watching. having a look at the yen, a lot of strength coming through. this flight to safety once again. we are also seeing quite a bit of movement in the gold prices well. it is continuing to rise in the asian session, up by a third of 1%. close,tioned australia but china industrial production data coming through, and ahead of that, the aussie flat. quite a bit of selling coming

through for the first trading day of the week. the international is urging china to tackle rising itporate debt or risk what calls dangers detours as it attempts to rebalance the economy. tom mackenzie joins us right now. what is the ims saying? -- imf saying? tom: this time it is coming from number two, david lipton, speaking at an economic conference, in town with other imf officials, doing an assessment of china's economy. he chose some rather pointed words on this, saying china's corporate debt was serious, growing, and that it required immediate attention. he also said it would be a key fault line in china's economy, particularly as it tries to shift away from manufacturing

and heavy industry towards the consumer, so he is clearly very concerned and says that progress has not been quick enough to date. we know that there is around 1.3 trillion u.s. dollars of loans to borrowers who in many cases will be unable to pay the interest rate payments on those loans. we know that china's total debt , so is around 240% of gdp this is the latest warning on china's corporate debt pile after the imf in april said the scheme that china has implemented to swat debt to backfire and leave zombie companies, when these companies should be left to die, so a painful transition that china will have to go through, but there are growing voices and growing levels of concern on china's corporate devil, this time from the ims and david lipton. angie: we have more china data out as well this morning, what

can we expect? juliet touched on that. this is some important data at 10:00 local time, industrial output from a. we are expecting that data to come in with an increase of 6% year on year, and line with the 6% increase in april, and that will give us some tics or as to the progress the government has made in cutting back on capacity and demand, particular for sectors like steel and coal. we will get retail sales figures as well. 10.1%re forecast to rise in may, in line with april's number. in april, auto sales were off and drag that number lower, so that will be an interesting component to watch, as our fixed assets investments. in april, that came off. people and investors and businesses will less willing to put their money down on fixed assets. that is one to watch as well.

we will also get construction and real estate numbers out. all of this will play into decisions by policymakers and the pboc to step up easing or state pat. angie: live in beijing, thanks. let's take a look at what else we are following for you on the bloomberg right now. rosalind: japanese online recruiter says it will prepare for an ipo. the company hopes to raise more than $9 million when it goes public. shares earlier. it offers a paid website to connect job seekers companies and recruiters. walmart ready to name its china chief. an announcement about the new role could be made this week.

the chance of i lunch with warren buffett is worth $3.46 billion. the winner was 50% higher than last years. the top bidder and seven guests will dine with warren buffett in new york. he has raised more than $20 million since 2000 and eight of a charity that helps homeless and poor people in san francisco. war craft looks set to become china's highest grossing hollywood film. , takingthe box office ticket sales since wednesday's debut to $157 million. it could not match that success in north america, where it was beaten by the conjuring 2.

main dollars. -- $40 million. those were a look at some of the stories making headlines. angie: a regulatory investigation is weighing on alibaba stock. with short interest soaring to record highs, yvonne man is taking a look into this for us. alibaba seems to be facing a lot of problems these days. frome: we've heard investors, saying and figures may be too good to be true. for the past couple of weeks, we have seen an accumulation of factors on why short sellers may be putting a target on alibaba's back. , now we learn about softbank cutting its stake in the company, not a huge reduction in the piece of pie,

but still unsettling investors. when it comes to the short interest, it has peaked since the 2014 ipo. it has never been this high. this is the number of outstanding shares borrowed for short-sellers, 124 million last week. it more than doubles from december. the stock itself has then on a wild ride. it has dropped 6% in the past few weeks as we learned about the sec investigation. the questions raised right now is why is it not consolidated under alibaba's accounts, because alibaba owns nearly half of that company. raise questions about

single day transactions, one of the biggest promotional days. analysts say that could be detrimental if they have to restate results, and could cast a greater shadow on china companies listed in the u.s.. sgie: have they put any ell ratings on the stock? .> no sell ratings alibaba still showing some great growth here. milestones,latform $450 billion sold during that time. alibaba relatively cheap compared to global peers. 23 times projected 12 month earnings. compare that to a median estimate, and average multiple of 51, so alibaba cheaper than the likes of amazon. on concerns of corporate governance, accounting, analysts

knowy that it is hard to when it will be realized and exposed to shareholders. that is the big question there. angie: thanks. tumbling after investigators widen investigations of slush funds and investment. the entire group down, the biggest being lotte shopping. this is halted what could have been the biggest ipo this year. hotel's division is shelving its offering after a string of issues recently hit the group. in a statement, lotte said it would be "physically difficult to meet next month deadline to complete the ipo." coming up next, singapore sounds a warning about the transpacific partnership. find out what is at stake, next. ♪

>> 8:45 a.m. in hong kong. the stories making headlines around the world. i want to bring you live a vigil and, washington, d.c. after president obama says the gunman who killed 50 people at a florida nightclub was filled with hatred. massacres being investigated as an act of terror. another 53 people were wounded in the attack on a gay club in orlando. it is the worst mass shooting in u.s. history. it is a vigil here in front of washington, d.c. -- the killerion has been identified as omar mateen, a 29-year-old u.s. citizen born in new york to

afghan parents. talked about so called islamic state in a 911 call before the attack. this massacre is therefore a further reminder of how easy it is for someone to get their hands on a weapon that allows them to shoot people in a school, or a house of worship, or a movie theater, or in a to decide and we have if that is the kind of country we want to be. if we do nothing, that is a decision as well. >> it is a horrible tragedy. we are mourning. we are sad. we are heartbroken. not really time for news andational rushing to judgment. 's new leader has blocked her predecessor for making a visit to hong kong.

it rejected the former president's travel request because it needs more time to make security arrangements. address an due to journalism award ceremony on wednesday. the trip would have made him the most senior taiwanese figure to visit the former british colony since 1949. searching weapons imports by saudi arabia push global arms sales up 10% last year, $65 billion. a new report says the kingdom spent more than $9 billion in 2015, more than twice what it spent the year before. purchases rose across middle east and southeast asia. world's is still the top arms exporter, followed by russia and germany. powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. singapore is urging the u.s. to ratify the transpacific partnership agreement without changes. it says any attempt to tweet the

draft runs the risk of the deal collapsing. over to our southeast asia correspondent right now. what is singapore's thinking on the tpp? clear, tppe stand is is of strategic importance, about u.s. commitment across each are, key to president obama's rebalancing to the region economically and militarily, so it goes beyond typical trade agreements, more leveling the playing field. tpp has been controversial. countries, including australia, japan, canada, mexico, malaysia, and vietnam signed, accounting for 44% of the u.s. economy, the biggest trade deal since nafta in 1994. the tpp may this unravel.

donald trump and hillary clinton both oppose the deal. companies like ford motors say it should put a limit on a country's ability to manipulate its currency. say it protects company profits at the expense of workers, and some u.s. lawmakers between -- twoo tweaked. angie: what is the chance it will be ratified? >> it has the best chance of being ratified after the u.s. elections in november, before the new term begins in january. john mccain said exactly that when he was in singapore last weekend. the deal may still unravel if there is any temp to -- any k the tpp in twea

any way. the pact has been submitted to parliament for japan itself. thebeing discussed ahead of singapore prime minister's visit to d.c. and august, tpp expected to be on the agenda. angie: thank you so much for that. here's a look at the big events we are following this week. the latest data shows the chinese economy stabilizing, so is there no more cause for concern? the imf issues its verdict when it releases a report on tuesday. the imf said the country should take urgent steps to tackle rising corporate debt. china will find out on wednesday includedes are to be in the msci index. delayedsion has been twice because of concerns over market accessibility.

chinanclusion would give a weighting of 40% in the index. the bank of japan is expected to keep policy on hold again on thursday. boj governor corrode up remains far from -- kuroda mains far from his inflation target of 2%. thursday is a big day for entertainment, shanghai disney throws open its doors, showing china and the world what $5 billion gets you in the theme park game. the resort goes against wanda city, which launched at the end of last month. road ahead after nissan announces it is selling a stake in a company. we are taking a look at the bidders who could step in and take over here on bloomberg. ♪

on what ourck in reporters are watching with training underway in asia. >> i don't think it's close. forecast the first quarter breaks even after posting a full-year loss of $21 million. it's not giving shares any boost at all.

it is investing heavily in virtual reality. in may, the shares got a bump up after it announced the release of a new game. game off. >> turn off the playstation. calsonic kansei, the manufacture of car parts. wasearned that nissan potentially selling its stake, 41%, of this company. the stock plunging. wasfinal round of bidding completed on friday, and some have comebidders through, and the news has sent the stock flying up and down. funds are also looking at

acquiring shares that nissan does not hold. this buyout made the $2.8 billion. 5.3% up. thank you. that is the verdict from the stock exchange. our reporters picks are based on news events. that is it for "first up" today. hours, the next two taking a look at markets, but an hour to go before the action could change. data points coming out of china, industrial production figures to give us an idea of how the old economy is doing, and perhaps we get an idea of how new economy manufacturing is doing. samel sales out about the time, looking for a 10.8% gain for last month. chancellor angela merkel in china, state visit taking place

there. there is a considerable amount a angst with regards to company's bid for a chinese robot maker. she is pressing chinese leaders to be more reliable and transparent as well. a host of other business leaders, basf, representative joining us and an hour from now. apples development siri ande, focusing on how to improve in the wake of competition. that is "trending business" for the next two hours. ♪

♪ it is monday, the 13th of june. this is "trending business". i am rishaad salamat. ♪ rishaad: we will be taking you to beijing and singapore this hour. investigatediller by the fbi. president obama to announce is the hatred as clinton and trump argue about radical islam and gun control. symantec