toshiba is scrambling to form a new management team. the company plans to name the team by mid-august. toshiba says the chairman of the board masashi muromachi will temporarily replace tanaka as president. it says independent directors will account for a majority of the board. and the in-house audit committee will be headed by an outsider. toshiba says it will set up a panel to draw measures to prevent a similar scandal. >>> meanwhile officials at the tokyo stock exchange are expected to take action. gene otani is here with us with all the details. so gene tell us about this. what measures are going to be taken? >> we're starting to see some of the sidesques of what's going on in toshiba. the officials are likely to move toshiba into the alert category. regulations state companies that falsify earnings reports remain listed to protect investors but the shares of such firms are designated as securities on alert. the tse will examine the panel's findings as well as a revised earnings report toshiba is expected to submit in late august. in

angie: glad you brought up toshiba. a lot of people wondering what is going on with toshiba. i want to get your personal opinion about it. for it give you pause toshiba and japan in general? >> is a foreign investor, i look ofjapan and notice about 40% nikkei companies are trading below book value. but what is book value? things look cheap. i think that is worth owning. perhaps for the next few quarters as their economy outpaces expectations. on the other hand, if the toshiba news is more widespread than the company itself, that could undermine confidence in that market and really set it back even further than where it is now. angie: yeah, yet another asian market. china really shaking things up for foreign investors. how are you feeling about china these days? that chineses households are saving 40% of their incomes and there are few outlets for them. it is not surprising we are seeing that investment going around. the chinese are buying watches. they are trying to buy anything with score value to save some of the income they are earning. they do not necessarily want to cons

manages at the toshiba group oversee 200,000 employees around the world. they control the top share of nuclear power and have major stakes in other energy-related businesses. toshiba says chairman of the board miramachi will temporarily replace tanaka as president. now let's go to ramin mellegard at the business desk. that must mean toshiba's corporate culture has a lot to do with the predicament it's in now. >> that's right. and it's the uner workings of the company that is the focus. the process involved is just now coming out in the open thanks to this probe. the third party panel said subordinates found it difficult to receive instruction from top management. executives called the instructions challenges. then-toshiba president issued such a challenge in 2008 to the personal computer division. it called for an increase in operating profits of 5 billion yen or about $40 million at the current rate. the so-called challenge was set one month before the firm compiled its earnings report. the panel says this practice led to accounting irregularities. the ch

and the head of japanese technology company toshiba quits. we look at how the scandal could impact the japanese economy. [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] i am sarah kelly. thank you for joining us. marooned in special election has taken place against -- burundi's special election has taken place against a backdrop of violence. leaders have guided the vote saying it was unconstitutional and other serious candidates were prohibited from campaigning. it has plunged the room d into crisis fearing the violence could escalate into another -- the room the --burundi into a crisis fearing the violence could escalate into another civil war. >> the polling stations were almost deserted. i did not go to vote, this man says. i reject the idea of a third term for this president. it is unconstitutional. many fear a return to political unrest. there is no security in burundi. we are not sure what is happening. incumbent president voted in his home village

and the head of japanese technology company toshiba quits. we look at how the scandal could impact the japanese economy. [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] i am sarah kelly. thank you for joining us. marooned in special election has taken place against -- burundi's special election has taken place against a backdrop of violence. leaders have guided the vote saying it was unconstitutional and other serious candidates were prohibited from campaigning. it has plunged the room d into crisis fearing the violence could escalate into another -- the room the --burundi into a crisis fearing the violence could escalate into another civil war. >> the polling stations were almost deserted. i did not go to vote, this man says. i reject the idea of a third term for this president. it is unconstitutional. many fear a return to political unrest. there is no security in burundi. we are not sure what is happening. incumbent president voted in his home village

made to toshiba's security report. we will strongly urge toshiba to provide the correct information. >> reporter: it is another blow to japan's financial image. olympus was another embarrassment. japan has a culture of poor corporate governance. the prime minister has proposed a series of reforms, but they are in their early stages. the share prices dropped by 25% since it first disclosed accounting irregularities in april. the scandal may will implication implications beyond toshiba's shareholders. >>> still to come here on al jazeera, havana and washington have restored diplomatic ties but they are still poles apart on the future of this controversial u.s. prison. >>> women's rights groups demand changes to personal laws governing indian muslims. stay with us. ♪ this is a great place to work. not because they have yoga meetings and a juice bar. because they're getting comcast business internet. comcast business offers convenient installation appointments that work around your schedule. and it takes- done. - about a

>> toshiba saw its shares arising after the results of the investigation. toshiba shares have lost 20% of their value since the scandal broke in april. we are seeing a muted trading session this tuesday. a lot of earnings are in vet -- in focus. the athens stock exchanged is still closed after trading was halted. no confirmation whether it will reopen later this week. some news moving those markets. sales rose in the first 20% of the first half of the year. 2.3 billion euros worth of sales from strong demand in asia. a weak euro would bring down its operating margin, but maintained midterm goals. -- saw its bottom line take a hit. the french group said sales were up nearly 4% in the first quarter, but declined in the last three months. the deal for operations and sierra leone could be worth a billion euros. >> back in france, the government has sprung into action as it tries to calm angry protesters. >> the prime minister is holding an emergency meeting. on wednesday, we are expecting the president to unveil measures to help the struggling sectors. profit m

. >> toshiba ceo faces pressure to quit. ibm falls after earnings miss. >> amazon rises on the crowd -- on the cloud. >> if that wasn't enough breaking now earnings from the biggest front maker. -- truck maker. anna: welcome to countdown. ryan: we will be talking to the ceo of this swiss drugmaker later in the day. just missing sales -- the estimate on sales coming in at just over one billion swiss francs. the expectation from analysts was 1.3 billion. anna: the swiss drugs giant considering -- reporting what they call a good second quarter. that number is for the second quarter and that is actually $12.69 billion compared to 12.7 2 billion that was the forecast. a touch shy or broadly in line with analyst estimates. a lot of focus on where this business is going and where they're going to guide the market. deutsche bank and ubs thought there could be room for an earnings upgrade. core ets for the second quarter coming in at 1.37. it -- this will -- we will have to wait and see whether we get anything of that ilk coming thro

. -- toshiba chairman steps down. and greg's it is going -- grexit is going nowhere. 70% of responders in a bloomberg survey thinks there's a danger that of the country will be out of the eurozone by the end of next year. manus: welcome to i am manus cranny. -- welcome to "the pulse ." i am manus cranny. the story of day from the asia. the president of toshiba along with two other executives, their resignation and their formal news conference and this was a $1.2 billion scandal restating their earnings over the past six years, unrealistic led to what is a systemic flawed accounting process, challenging the culture within japan. probably one of the single most important issues that will be addressed here which is so much power for people as of the top and no way for anybody to really challenge the toshiba accounting methods. everything from nuclear reactors and ships. a is now falling on hisao tanaka the president. if we have any headlines, we will bring them to you. our top story and that is commodities. bloomberg com

scandal at toshiba? >> to shiva appointed eighth third -- toshiba appointed a third-party panel to look at accounting irregularities back in may. it has cost toshiba $3.6 billion in market value already. the panel submitted the results last night, and the company released a summary of their results very late in tokyo. the summary is 70 pages plus long, and we are still going through it. the biggest take away is that over the past six years toshiba has overstated earnings by 152 billion yen. if not more. the accounting irregularities have spanned units from infrastructure to visuals and semiconductors. what is more worrying is that the report found direct involvement by top management. angie: how involved was top management here? can we expect heads to roll? this is probably the big question right now. the third-party panel was very careful not to place blame directly on anyone specifically. is thaty did find involvement was systematic even if it was not necessarily complicit. the management strongly emph

toshiba being placed on credit watch negative. that's the story to watch given that there's huge implications here for corporate governance so this is a step in the right direction. you're looking at near four week highs for the nikkei 225. the weaker yen is helping confidence. we are seeing the shanghai composite on the firmer terrain as well. we moved above the 4,000 handle. some do believe that's going to be the catalyst for people to get back into the market and start selling at these levels to lock in some profits. it's very important. the other performer down by 1.3%. you're looking at lows there responsible for driving the index lower. >> thank you very much. ladies. >> handing it back to the ladies. >> yeah. >> ibm's second quarter profits beating forecasts but revenue fell by more than 13%. they dropped for 13 straight quarters revenues. up to the strong dollar and the sale of a server business. it's newer businesses, cloud software and services are growing but reported a year over year decline in all of the major lines.

investors failed for compensation from toshiba and two of its former presidents in connection with the scandal. an attorney says other investors may join the suit which was filed with the court in california. the investor claims to have suffered huge losses from a plunge in toshiba's share prices after the scandal came to light. phillip kim is representing the u.s. investor. he spoke with nhk and said that a third party panel had concluded there were connecticutaccounting irregular arts. >> there will be damages. and who's included in the case will be the issues. >> he mentioned the possibility of other investors joining the lawsuit. ? there are other law firms as well that are looking. i don't know what their response is, but, you know we did file the only case but other law firms are out there offen. >> kim said the third party panel's conclusion that toshiba's management had admitted sonbility would work to the investors' advantage. they try to avoid lawsuits that waste amoney and time. the data in june remained in the red for the third month in a row. the me limb there in trade bal

this is what the prosecutor actually said about the culture at toshiba. and i have a direct quote here. there exists a corporate culture where it was impossible to go against the bosses' will. they postponed loss reports or moved certain costs into later years. so the picture here, paula is that toshiba executives wanted to keep the numbers artificially high when business was difficult. the culture said no one could go against that. big resignations have resulted. interesting to see how the fallout continues from here. >> obviously in japan with the corporate culture this is a humiliation for this country that means so much to japan. how are investors reacting to all of this? >> you might think there would be a massive selloff after that sort of news hits the share market and the broader public. but in fact the company popped up today, paula. what happened is that the investigation was first announced back in may. and that is what spooked investors initially. they didn't know what was going to come out. the stock was down 24 25% from that high back in may

the findings mean toshiba will have to restate six years of profits. the japanese government says toshiba needs to clean up its account. >> translator: corrections had to be made to the securities report. we will strongly urge toshiba to provide the market with the correct information. >> reporter: the scandal is yet another blow to japan's corporate image. olympus was another embarrassment. the prime minister has proposed a series of reforms, but they are in their early stages. toshiba share prices dropped by 25% since it first disclosed skting irregular laities in april. it may have implications beyond the shareholders and further undermine international confidence in japanese companies. >>> a top aid to former chinese president has been arrested and expelled from the communist party. he is to face trial accused of accepting huge bribes as well as keeping mistresses and stealing party secrets. it's part of a campaign launched by the successing president. scott heidler has more from beijing. >> reporter: he was the top aid for former president. these

anna joining us with the latest on toshiba. whistleblower, and what it says about corporate governance to other stories. israeli people have arrested four people over the hack attack on jpmorgan. it compromise the data of millions of people. links to tel aviv, west palm beach, and moscow. a remarkable story. came tuesday.rest two people in israel, two in florida. not charged specifically with this, but fbi sources saying there is likely a connection. in the jpmorgan attack was used for a so-called pump and dump scheme. t contact details to salmon if you live information to the company. two men arrested tuesday in israel on charges of running that regulation scheme. an men arrested for running illegal bitcoin operation. the connection is identified and an fbi memo. stoled: saying they no not just from jpmorgan. e*trade not responding to our request for comment. jpmorgan saying they discovered note fraud against account holders. the details are stunning. the attackers took -- they had three months of intrusion at the main data ce

and toshiba paired earlier gains and lost 1.7%. these electronics makers are big exporters so a stronger yen also worked against them. another sector hit hard today was banks and financials. shares were down as kuroda -- mitsubishi shed about 2.4%. sumitomo down 1.9% and also mizuho 1.9%. one analyst has told me that the markets tend to be choppier. reporting from the tokyo stock exchange. >>> let's check on other markets across the asia pacific region. performance was mixed though many markets slipped on the back of a lackluster earnings in the u.s. the benchmark in hong kong fell almost 1%. and the heng sang had losses across almost all sectors. stocks of apple suppliers pulled down shares in taiwan. it head down to 8,918. the shanghai composite eased from yesterday. the benchmark rose for a fifth consecutive day. it gained 0.2% to close at 4,026. australia fell 1.6%. investors took profits after tuesday's six-day high. resource and financial sectors were among the hardest hit. >>> visitor numbers to japan keep breaking records.

toshiba canceled dividend payments in may. it is expected to revise downward its operating profit by more than $1.2 billion for the five-year period that ended this year. >>> stock prices in shanghai continued to recover. buy orders flooded in on friday for the second day in a row. the shanghai composite index rose more than 6% at one point in the morning session. it finished the last trading day of the week up 4.54% at 3,877. stock prices rebounded on thursday after beijing introduced a raft of measures to prop up prices. shanghai stocks began rising last year. they peaked about a month ago hitting their highest point in seven years and five months. securities firms and government-related funds are believed to be still buying stocks. but sources at shanghai markets say 1400 firms or about half of all listed companies there have suspended trading. some experts say that could drag down shares. >>> the extreme volatility of chinese stock prices has implications for global markets and for individual investors. our reporting in be

had to be made to toshiba's security report. we will strongly urge toshiba to correct the information. >> the scandal is another blow to japan's corporate image. financial fraud at olympus was another embarrassment. the prime minister has proposed a series of reforms but they're in early stages. toshiba share prices dropped 25% since it first disclosed accounting irregular lants in april. it may have implications past shareholders and undermine confidence in japanese companies. >> a new poll suggests three quarters of the united states approved the restoration of dip ties between the u.s. and cuba. monday, the embassies of both countries were reinstated and flags raised to mark the end of more than half a century of hostilities. the u.s. cut off ties with cuba in 1961, two years after the communist revolution. last december, the two opportunity tories greed to reestablish relations encouraged by pope francis. travel restrictions imposed by both countries remain in place. after talks with the cuban foreign minister, the u.s. secr

toshiba had to reshape their earnings for six years. greece's creditors weighing a deadline for a new bail out to disperse the first of aid. they met an ecb debt repayment yesterday. greek markets are closed today. two greek officials said they would only reopen after proposals on wednesday. novartis reported a decline after the u.s. dollar erode sal es. almost 14 percentage point at the biggest drugmaker by sales. the stock traded lower by 2% in this morning. for more on novartis joined by director of research at bloomberg intelligence. samuel, take us by the numbers. i see it in the ibm as well. take me through the results. samuel: sales came in and we have to look at from profit side. sells with 11% of u.s. dollar strength and 6% rise in currency. and the operating profit rose pretty nicely. the dollar impact was the same almost as we saw in the first quarter. not a new issue are further strengthening of the dollar impacting them. the reality is the same. on profit and sales. jonathan: novartis earnings and viewers will be tanking wh

the head of the japanese electronics giant toshiba has resigned after it was revealed the company has been exaggerating profits. investigators found that since 2008 toshiba overstated profits by $1.2 billion. >> a deep bow of contrition from one of the most for stooges japanese companies paying the priced for financial scandal -- one of the most prestigious japanese companies, paying the price for financial scandal. >> i'm stepping down from the post as the ceo and president. >> toshiba is one of japan's biggest companies. it is best known for consumer electronics, making things like televisions, camcorders, and computers. it also makes medical scanners, x-ray machines, and nuclear reactors. it is alleged that managers set unrealistic profit targets, and turned a blind eye when employees distorted figures to meet demands. it started in 2008 when the financial crisis hurt business. it got worse with the fukushima disaster which closed down to the nuclear industry. they say it is a wider problem in japanese business culture. >> they need to sustain the reputation, which is tarnished. it

a major shakeup at toshiba. the chief executive has resigned a day after a panel said he and other executives are responsible for several years of overstated profits. the panel said executives overstate their profit by a million dollars and set unrealistic profit targets. 16 board members stepping down along with tanaka. ohio governor john k-6 jumping into the 2016 white house race. the second term republican governor and former congressman set to launch his campaign today. in case it was also at lehman brothers managing director. he will make the announcement 11:35 a.m. eastern time. we'll carry the speech live on the fox business network. donald trump may be trying to an extend an olive branch to the gop. the presidential candidate was on the o'reilly last night and appeared to back off criticism of senator john mccain's military service. >> i have respect for senator john mccain. i used to like him. i raised a lot of money for his campaign against president obama. certainly if there is a misunderstanding i ta

panel of experts submitted to toshiba the results of its examination. it conducted hearings with about 200 senior officials and others. sources say the panel's report is expected to state the accounting regularities were found in a variety of information. the panel is expected to say the firm needs the revise downward its operating profits for the past five years by more than 150 billion yen or $1.2 billion. the report will show the vice chairman ordered his subordinates to pass profits by more than $18 million. he reportedly issued the instruction just before the executives compiled earnings reports, while he served as president. the panel also plans to say president and ceo sent e-mails to company executives urging them to inflate earnings by delaying the posting of expenditures. toshiba bosses intend to determine the level of responsibilities i responsibility of other past executives. >>> a record number of people from abroad visited japan last year, over 13 million. they spent more than $16 billion, another record. the country's tax exemption progra

toshiba is accused of intentionally delaying booking losses. the company may now have to sell assets worth $1.7 billion, and reports say that could include part of its stake in the atomic power plant maker westinghouse electric. a company spokesperson has said toshiba is not aware of a deliberate delay in accounting for losses and is still awaiting the results of that investigation. now, facebook's market value has dollars, becoming the first company in the s&p 500 index to reach that level so quickly. the social network listed just three years ago has been previous record holder google in talking to $250 billion level. google needed about 80 years to manage that. comparison, apple is worth more than $720 billion. now, this came after facebook climbed 2.4% monday to close at a record. investor confidence that the company will continue to increase mobile advertising sales if making the stock more attractive. revenue from ads increased 46% in the first quarter from a euro here. more than two thirds of that came from mobile ad sales. rishaad: comi

toshiba canceled dividend payments in may. it is expected to revise downward its operating profit by more than $1.2 billion for the five-year period that ended in march this year. >>> residents of japanese descent have long provided labor for japanese manufacturing. more than 300,000 of them lived in japan at its economic peak. now the number has fallen below 180,000. where have they gone and what are they doing. >> reporter: the city is home to the largest number of japanese brazilians in japan. but even there, things are not what they used to be. the evidence is all around. including a housing complex where many brazilians live. >> translator: many apartments are empty. we never used to see this. >> reporter: there are fewer brazilian children in town. a brazilian school decided to downsize. >> translator: at one time, 30 kids filled up this room. the current situation is quite sad. >> reporter: most of the brazilians returned to their home country. the economy is expected to grow as next year's olympic games draw near. more

aarlet: there has been shakeup at toshiba over an accounting scandal. several top executives are out and the company will need to restate earnings for six years. toshiba announced after the closing bell in japan that the president and his two predecessors will resign over the company's flawed accounting practices in which it alleged top executives set unrealistic profit targets and delayed booking losses. the resignations are effective immediately. the chairman will replace tanaka. executive will also resign. humanity the teams will be announced in mid-august. toshiba has pledged to correct its earnings by $1.2 billion. its share price rising 6%. scarlet: toshiba makes nuclear reactors, home appliances, and computer chips. the iran nuclear agreement is heating up in the u.s. and middle east. lawmakers must sign off on the deal. it calls for iran to abandon making atomic weapons, if it wants sanctions lifted. despite the historic agreement, iran supreme leader says that his country will not stop its proxy wars in yemen and lebanon. secretary of state joh

toshiba -- almost triple the company's earlier estimate. toshiba overstated its bottom line under pressure from management. the president is scheduled to hold a news meeting tomorrow. the company has lost $3.6 billion since may 8, when they canceled the year-end dividend. apple stock is jumping as analysts prepare for the third quarter earnings. shares were up as much as 3% today. another big question, whether we will learn more about the apple watch. the company has said it will not break out watch sales. the ceo said he is happy with how the product is selling. we have with us our bloomberg news reporter tim higgins, who covers apple from san francisco. what do we know about how the watch has been selling? what new details are we expecting? tim: they have been pretty clear they are not going to release sales results for the watch. it will be in with "other." it will be looked at closely to try to get an indication of how the watch has been doing. emily: it leads one to believe maybe they are not doing that well. frank: i think apple is a

rishaad: a look at toshiba, shares on the way up. they would reinstate more than $1 billion in earnings and news the cochairman is to quit the board in all public posts as well. correspondent joins us. what more can you tell us? reporter: good morning. all theer read third-party panel with that came out last night concludes three months of suspense a you see the markets welcome the relief and ¥150 billion over the past six years is somewhat less than going forward. it is still three times a more than toshiba's own forecast. investors are welcoming some clarity on how much of a hit toshiba will take. the question remains our responsibility at the top management. the report was careful not to place it on any specific person but we had ministry economy -- the minister of economy say he has heard vice-chairman will resign. and it has been widely presented that another person will resign. they will get a chance to a dress these allegations later today when the company holds a briefing at 5:00. but the markets are looking forward to havin

a shakeup at toshiba. several top executives are out and they will have to restate earnings for six years. announced after the closing bell in japan that the ceo and two predecessors will resign over the company's law and accounting practices, in which it is alleged top executives unrealistic profit targets and delays between losses. their resignations are effective immediately. a number of other executives, including today pay will also resign. toshiba has pledged to collect earnings by $1.2 billion. the share price rising six percent. toshiba makes appliances, and also, nuclear reactors. john kasich will become the 13th republican to enter the presidential race, making the formal announcement later today. he served 18 years in congress the or being elected governor. the first test is getting into the presidential debate next 10th, because only the top will make it. olivia: the fifth anniversary of a measure that seemingly may know what happy. on this date 2010 president obama said the dog-frank reform ac

a shakeup at toshiba over an accounting scandal. the company will have to restate earnings for six years. julia: toshiba announced that his twoident and predecessors will resign over the company's flawed accounting practices in which top executives set unrealistic profit and the resignations are effective immediately. a number of other executives, including two vps will excite and the new management team will be announced in mid-august. pledged to correct its earnings by $1.2 billion. its share price rising 6%. scarlet: toshiba makes appliances and nuclear reactors. singer taylor swift is taking on china, teaming up with the second-biggest e-commerce company for a fashion line for chinese customers. swift is coming to shanghai for a concert in november. those are your top stories this morning. aboutng news in new york a potential strike at the two major airports. sounds like the strike is no longer potential, it is planned. more than a thousand security officers, baggage handlers voted unanimously to authorize a strike that would be

investor has sued for compensation from toshiba in connection with the accounting scandal. an attorney for the plaintiff said other investors may join the suit filed in california. the investor claims to have suffered large losses from a plunge in toshiba's plunge in prices after the scandal came to light. the partner in the rosen law firm spoke with nhk and said a third panel party had concluded there were accounting irregularities. >> the issue with respect to fraud, i think is pretty much set. there'll be other cases moving forward as far as who's included in the case will be the big issues. >> kim indicated the possibility of other investors joining the lawsuit. >> several dozen. but there are other law firms as well that are looking as well. so i don't know what their response is. but we did file the only case. but other law firms are out there. >> kim said the third party panel's conclusion that they had admitted responsibility would work to the investors' advantage. >>> checking the markets, share prices in japan ended higher this thursday. our business reporter give

toshiba is trying to get an explanation. this is a scandal that started when market regulators found problems while investigating the company's balance sheet earlier this year. that's a live event as you can see. we'll keep our eye on events here at al-jazeera. >>> demonstrators have been scuffling with police in nepal. they stormed the stadium. they are angry about a draft constitution. they say many minorities are being excluded. >> the draft constitution in flames. people from the town angry at not being allowed to participate and present grievances on the new constitution. earlier scuffles with leaders including the former prime minister didn't include them in their survey. >> translator: they created the procedure. they made police detect the locals. >> reporter: the government declared a public holiday. but there is tension across the entire southern belt of nepal as locals protest and demand that past agreements are respected. also suggestions were collected under heavy police presence. people are concerned that this

you have more on that counting scandal at toshiba. will: yeah, these are the ones where the results came out from the independent panel finding that there were systemic and delivered a thames to inflate profits -- deliberate attempt to inflate profits. today, the fallout, a 15-second bout of contrition and the ceo resigned, as well as the vice chairman. the ceo said the prices could be the biggest emotion of to shiva's image -- toshiba's image in its 140-year history. accounting irregularities covered up struggles with computer chips and a small computers. mr. tanaka: it is not my understanding that i gave orders for improper accounting. but the reality is that such an observation has been made. the new executives and management must take preventative measures accordingly. stuart: the former ceo there could what about the markets will? william: equities in the u.s. are striking. tracking down the u.s. market -- the dow jones down more than 1% after ibm and united way technologies climbs over 5%. nasdaq trading down about 1/5 of a perc

a shakeup in toshiba over an accounting scandal. the top executive is out and the company will have to restate their earnings for the past six years. we have the story from hong kong. >> or shiva announced after the closing bell in japan that the president and his two predecessors will resign over the company's flawed accounting practices in which it is alleged top executives set unrealistic targets and delayed booking losses. happeninggnations are immediately. a number of other executives will also resign and a new management team will be announced in august. toshiba has pledged to correct their earnings by $1.2 billion. its share price rising 6%. betty: toshiba makes nuclear reactors, home computer chips, and other items. lawmakers here in the u.s. and in iran must sign off on the nuclear deal. it calls for the islamic republic to abandon making atomic weapons, if it wants sanctions lifted. despite the agreement, iran supreme leader says his country will not stop their proxy wars in yemen and lebanon. secretary of state john kerry

to ensure toshiba's debt, the on monday that is the highest level since july 2013. it's also the worst performance for a japanese company during that. appointed by on theirill report findings. the result could be more than a hundred million dollars affecting businesses from infrastructure to pcs and chips. president could step down in september in order to take responsibility of this scandal. rishaad: taking a look at netflix, it's as it is planning to roll out in china. it reported better-than-expected gains as far as subscribers especially internationally. say, toan, they regional shows such as "daredevil" and "orange is the new black". >> they base their value on future earnings rather than current earnings. netflix's current earnings are meager, and will continue to be so for a couple of years because they are getting and inveing it in film production and new tv series and licensing. bet strategy so far seems to working in terms of getting new users. 2018 when they would love expanded to more countries, the revenue would keep going up because they have new custo

toshiba has said that the third-party inquiry will lead to earnings write-downs. delta is said to be backing a proposal to restructure japan's bankrupt skymark airlines. the nikkei news says delta has .ffered to join the plan intrepid aviation has been negotiating with several carriers after saying this time that skymark's own plan would not win enough support. wandae property developer says they plan to expand into the financial sector. a statement on their website as they are targeting acquisitions in banking, security, and insurance at home and abroad. wanda expects one third of its revenue to come from overseas by 2030. that was a look at some of the corporate stories making headlines this hour. angie: the world's biggest social network has become the fastest company in the s&p 500 to reach market value of $250 billion. that is taking the crown from archrival google in terms of speed. it seems that investors really do believe that facebook is here to stay. >> absolutely. massive news for shareholders. it has become the fastest-growing company to reach this mar

. >> in the meantime the ceo of toshiba stepping down. you can see executives here bowing overnight in a dramatic news conference as they publicly apologize. an independent investigation has found senior officers were aware of inflated earnings. toshiba said it's considering replacing half of the board of directors. it's been difficult for a lot of these large asian tech companies. sang samsung, toshiba and others. >> i don't know what to say. >> it's not the first time we've seen this in japan. and perhaps it won't be the last but interesting. >> what would happen if they were in china? what would they have done? have you looked at the numbers of white color executions? >> the transparency is far less than in skrajapan. but when it comes to the usa, rule of law, transpashrencytransparency, corporate governance many of these markets are much more difficult. >> that's why i always find that when you're in the overseas markets, people act as if there were countries to market. no. i remember when people were excited about russia. that's fine

--via: toshiba will greece will correct 1.6 billion over a six-year. after an internal accounting pro that found the company measures under pressure from management. the company president is planning to hold a briefing on the matter tomorrow. to shiva has lost 3.6 alien in market value since may 8. -- toshiba. scarlet: an uncomfortable moment for seth blatter. torose from front row seat shower him with one dollar bills. not anything new for him. last month he tried to disrupt the performance i kanye west at a performance in britain. something about these european protesters showering them with money. olivia: russian billionaire murray milner says he was to find life beyond earth and putting his money where his mouth is. he says his breakthrough listen project would be the biggest scientific search so far for signs of intelligent life elsewhere in the universe. the 53-year-old made his betting on internet companies. he was an early investor in facebook and twitter. those are some of your top stories. while we were talking, zach johnson wins the british

now an accounting scandal continues to rattle toshiba. the company is expecting a major personnel shake up. let's get out to the nikkei for the story live from tokyo. >> thank you wilfred. more than half of toshiba's directors are expected to re-sign in september. this news comes as latest fall out over the discovery made in may that toshiba was manipulating it's earnings for years. he even called the scandal the biggest crisis the 140-year-old company ever faced but third party investigators discovered that he himself as well as his predecessor were among the top officials who instructed subsidiaries to delay booking losses. suspicions over his involvement have been growing and earlier this week he told close associates of his intentions to re-sign effective in september. his official announcement will be made next week when investigators release the report and in addition the auditing company which had signed off on years of inappropriately calculated earnings may also face penalties or suspension over it's involvement. now his last dut

toshiba intentionally manipulated it's accounting methods. the company's stock dived by over 7% and this is on top of their stock already plunging by 16% since the accounting scandal came to light in may. the president speaking at the annual shareholder meeting last month called it the biggest crisis in the 140 year history. toshiba had been overstating it's profit for an aggregate of 55 billion yen. e-mails have been discovered from supervisors in which they urged to delay the booking of losses and has become apparent that over several years the top managers pressured subsidiaries to meet budget targets and this likely prompted subsidiaries to pad their books repeatedly. the discovery of such deliberate maneuvers could prompt penalties on toshiba for false identifying earnings report and could see top management being forced to step down. that's all from the nikkei. back to you. >> thank you very much. >> shares in retail closed higher after a 36% jump in profit. this thanks to sales and a weaker yen. but sales are likely to undershoot forec

stories we are tracking this morning, bad news piling up at toshiba. a preliminary report from independent inquiry say it failed to's thought prophet being overstated. in involves as much as $1.3 billion. may stepba president down in september to take responsibility for the scandal. an overhaul of management are also expected. shares are up nearly 2%. most in twoat the months. the losses far worse than anticipated. sharks fall last quarter is around $282 million. that is 30% worse than pessimistic rejections. against the or crucial shareholder vote taking place in south korea, we have an update when he returned. ♪ ♪ ♪ ♪ get excited for the 1989 world tour with exclusive behind the scenes footage, all of taylor swift's music videos, interviews, and more. xfinity is the destination for all things taylor swift. emily: xiaomi may be a new kid on the block, but it is no longer so little. xiaomi rivals apple and samsung in the chinese smartphone market and is valued at $45 billion. worldwide it is not a household name. former google executive hugo ba

off toshiba lap top. >> july is a quiet time for them the in shopping. it's changing now. we are shopping month bile. this promotion might do better because we can shop while sitting in the car. >>reporter: all leading to deals promising to be as hot as the weather. it's not just on line. lots of major retailers offering big deals right now including best buy. planning major sale for next week. fv abc news new york. >> the all right. well, this is quite the story. despite a predator status of course group of beach goers came to the rescue of great white shark. it was found stranded open a massachusetts beach. the people there started throwing water on it to keep it alive. witness say the 7 foot male was trying to get a bird when it ended up in shallow world trade center. shark eventually towed with a rope about a mail offshore where it was freed t.video posted on you tube capture the rescue. >> incredible. >> let's get one last check of the weather with sandhya. >> hi. we look at live doppler 7hd watching the low clouds and fog advancing from the coast t

. >> toshiba boss seen here many the middle bowed out after a $1.2 billion accounting scandal. he says he is deeply sorry for mistakes made. >> the responsibility lies in the management, including myself as a response i am stepping down from c.e.o. and president. >> independent market regulators found when the investigated the balance sheet, they had. inflating the profits for years. >> they will have to restate sick years of profit. >> directions have to be made to the security report. we will strongly urge them to provide the market with the information. the camera and medical equipment was another embarrassment, japan has a culture of poor governance, they have propose add series of reforms but they are in the early stages. share prices dropped by 25% since it first disclosed irregularities. women's rights groups are campaigning for a ban on instant divorces by muslim men. they can divorce their wifes simply by saying t alak three times and it doesn't even need to be done face to face. she has. looking for answers. her husband working in saudi arabia phoned her and said the

that's more trouble at toshiba. -- more trouble at toshiba. freshwater victory over apple music, taylor sloot launching a clothing line for chinese fashionistas. -- tyler swift launching a line for chinese fashionistas. what is going on. we are used to equity markets of volatility. right across of the board pretty here is david. david: we are seeing the spillover of crossroads spotted -- pockets of the market because of the drop in commodity prices and look across the currencies and not so much in brazil. taking a bit of a hit. the aftereffects of this commodity price. equities, very nice today. games across the board.

. >>> and the chief executive of toshiba has resigned saying that profits over six years have been overtated by $1.2 billion. >>> well, it's been a year since sanctions were imposed on rush for its role in the war of ukraine. it denies backing pro-russian separatists but the sanctions appear to be hurting the russian people more than the russian government. >> the shelves are full. there are no french cheeses. >> the prices have gone up. all categories of food have gone up. >> elena like many other russiaens have fewer rubles to spend than she did before the war started in ukraine. the e.u. and other nations want to punish moscow imposing financial and trade sanctions. in turn russia imposed it's own measures including a blockade on many agricultural products. coupled with a drop in the worldwide oil prices the ruble has slipped against the dollar making everything more expensive. but what has according to the polls remade steadfast throughout is the support for the russian president. his gamble in ukraine appears to have paid off. >> if the thought was that the sanctions would hurt vladimir