Apparently, have been shot down. Shot down, not an accident, blown out of the sky. Ukraine putting the blame squarely on russia, releasing recordings they prove pro russian separatists fired the fatal missile. Russian president Vladimir Putin blamed kiev. The state over which this happened is clearly responsible for the tragedy. Reports suggest a second black box has been recovered from the wreckage. A soldier, 111 palestinians reportedly dead as israel launches its ground offensive in gaza. Prime minister Benjamin Netanyahu is due to give a statement shortly. Equities remain cautious as stocks trade lower, but the safe haven begins to unwind. Seoul loses ground. Youre watching worldwide exchange. Bringing you business new from around the globe. Welcome to worldwide exchange. Lets get straight to our top story. 290 people are dead after a malaysian airplane crashed in ukraine. Russian president Vladimir Putin plames ukraines government for the disaster. Translator the state over which territory it happened is responsible for this terrible tragedy. I have already given certain instructions to the military departments that they need to provide all necessary assistance in the investigation on of this crime. And here is what former u. S. Secretary of state Hillary Clinton told the charlie rose show earlier. There does seem to be some growing awareness that it probably had to be russian insurgents. Now, how we determine that will require some forensics, but then if there is evidence pointing in that direction, the equipment had to have come from russia. If there is evidence linking russia to this, that should inspire the europeans to do much more on three counts. One, toughen their own sanctions, make it very clear there has to be a price to pay. Number two, immediately accelerate efforts and announce they are doing so to find alternatives to gazprom. You know, russia has not diversified its economy. It is largely dependent upon national resources, principally gas and oil. And thirdly, do more in concert with us to support the ukrainians. Malaysian officials are due to hold a press conference on Malaysian Airlines very shortly. Well bring you that coverage as soon as it happens. Gaza Officials Say an israeli soldier and 1 1 palestinians have been killed as the Ground Campaign against hamas militants get under way. Benjamin netanyahu said the operations netted work into israel. Hamas warned the offensive will have dreadful consequences. Prime minister Benjamin Netanyahu will make a statement shortly and well bring that to you as soon as it begins. Hadley gamble joins us now. What can they achieve now by a ground offensive that wasnt achieved in ten days of violence that weve seen so far . Certainly there is no evidence that anything concrete will be achieved. Certainly, the israelis are there, theyre going in, trying to make sure that these securities tunnels going from gaza into israel. At the same time, theyre trying to get more terrorists. Thats what theyre saying that theyre trying to do. Theyre trying to combat a terrorist threat coming from gaza. But unfortunately, it was not really within their interest to have boots on the ground. Were seeing israeli casualties and war saushlties. Thats going to give credit to hamas. Theyre saying, here they are, theyre in the street and the israelis wanted them to come to the table, they wanted to come to a permanent agreement here. And the problem really gets down to the nittygritty, which is hamas wanted certain things that israel was not prepared to give. Unfortunately we didnt have that cohesive narrative that weve been talking about. You had mahmoud abbas. Hamas isnt even really talking to him. Now hes in turkey trying to get hamas to come to the table. At this point, were not seeing a true leadership in terms of hamas. Its a big issue in terms of if you want a truce, you have to have someone to negotiate with. The israelis are saying this is not about toppling hamas, this is about taking out evidence where the violence has stemmed from. Youre talking about the idea of diplomacy and wanting to bring sides together. How does a ground offensive here move things Going Forward . It really doesnt. Inevitably, theyre putting pressure on how far do we go . Whats the end game here . In terms of the israeli end game, they want to be able to declare some kind of victory which is we achieve some sort of victory in combatting terrorism, now we can pull back, etcetera. The people in gaza, the humanitarian never gets thats the question, when is enough enough . For now, thank you. Back to our top story, 298 people are dead after a Malaysian Airlines crashed in Eastern Ukraine. Pro russian separatists and the kiev government are achieving each other of shooting down the flight with a missile. Jim ma say da is in moscow. Jim, we dont know who is responsible for this, but there is it seems circumstantial evidence pointing at the pro russian separatists right now. Will it change the game, the perceived game that people may believe Vladimir Putin has been playing throughout this crisis and how does it impact his relationship with the west Going Forward . Well, big question. Whether it will change the game is a big question. Its too early in the game to speculate on that. In terms of how it will affect the u. S. Russian relationships, its not going to help them. They are at historic lows, but the relations have not been as bad as this isnt the cold war. Putin doesnt seem too concerned in terms of the u. S. Or the worlds reaction, concerned very much at all about this new third wave of sanctions. Hes come out sounding quite angry yesterday and again today, more entrenched in his criticism of u. S. Foreign policy. And a lot of russian economists on the subject of sanctions arent panicking much, either. One calculated today that the latest sanctions would only add Something Like 0. 1 to 0. 2 off the gdp, which translates, he says, into 2 billion or 4 billion. Russians in the streets largely behind putin. His an exing of crimea in the spring saw his ratings shoot up past 80 . Just unheard of numbers. So putin can do no wrong, really, at least for now. That could change if sanctions do begin to bite. Putin and obama will certainly continue to talk. Well be as cordial as possible. Theres always going to be a huge gap between the two gentlemen. Putin will never, ever accept a pro west, pro europe ukraine. Back to you. Malaysians are set to hold a press Conference Regarding the flight shortly. Various elements right now to put together on this story to get a broader picture of whats going on. But it is going to come down to an investigation. But for now, joining us is edward hunt, Senior Defense consultant. Edward, good morning. Thank you for joining us. To start, is it a surprise to you that we could see separatists, the rebels in the east of ukraine having this kind of it is relatively unusual. The pictures that were used to seeing of insurgent groups, rebel groups, are using lower sophisticated weapons, shoulderlaunched missiles, which are relatively due to operate and designed to be used by someone with minimal training against a target of relatively short range. These systems will be used against 30,000 feet and are, therefore, not usual found outside the state and National Armed forces. Ukraine has accused the pro russian separatists of using missiles. Would they be capable of taking this down . Yes, in fact, these things are designed to destroy military aircraft moving faster and higher and maneuvering at the same time. A Civil Airline is a predictable target the. From a technical perspective, the missile would be used in a case of hitting and destroying it. And how easy is it for a weapons system of this kind to mistake a passenger jet for a military aircraft . Thats where it gets more complicated. The system has several aspects on to it, radar for tracking and for guiding the missile and whats known as an information friend or foe system to make sure it doesnt hit friendly aircraft. However, usually these systems are plugged into a wider network. Theyre able to look at the air Traffic Control picture so they can determine whether a suspected aircraft is a civil aircraft. In this case for whatever rope, that check was not made or could not be made so the decision was made to fire against the radar on the contact screen. Theres been a lot of focus on the black boxes and what they can tell us. Were showing pictures right now of the devastation of where the plane actually went down. Whats the likelihood that those black boxes were damaged in this and can tell us very little about what happened . That is obviously, the whole purpose is to try and discover what brought down an aircraft, which normally involved a lot of speed and a lot of altitude. Theyre likely to find more or less intact. However, they may not reveal who fired the missile or what kind of missile, what they would like to reveal is the degree of damage the missile caused, which obviously from the pictures was, in the end, catastrophic. And theres been talk about whether or not this was an accident. What about actually being able to run a Missile System like this as potentially a rebel or somebody that doesnt have training . Could a mistake have happened here . Its possible to make mistakes with all sorts of systems, simple and sophisticated. Something like this with two or three people who know what theyre doing, that could have been trained or people who would have been taught in some way. However, mistakes do happen. In the past when civil aircraft have been shot down, there is normally a degree of im going to have to stop one actually. Weve been waiting for a press conference from Malaysian Airlines and i believe thats just now starting. Thank you for your insight here. Lets listen in. Have indicated that Malaysian Airlines flight mh17 was shot down. Should it be confirmed, it would International Law and be in malaysian condemns any in the strongest possible terms and calls for to safely Drop International Civil Aviations, the ukraine government will institute an investigation into malaysia offers its full support to the investigation. Malaysian did formally invited to participate and great malaysia also International Investigations into the incident. And it is all parties to cooperate to ensure such an investigation can be completed. It ises essential that the integrity of the crash site be preserved. Malaysia airlines the airline has arranged some 40 to be flown to amsterdam. Separately, as the Prime Minister and now this morning malaysia will today dispatch a special malaysian Disaster Assistance and rescue team. In total, 35 team members, 15 members past ma hash ya airlines staff, two department of Civil Aviation staff on passengers, earlier today, Malaysian Airlines released on board the flight. This included 41 passengers whose nationality could not be verified at the time and they were from a previous flight and had not entered passport control in amsterdam. 21 of these passengers have now been identified and several remain to be identified. There is a praek down of no nagzltys of those on board. Soerp aus trail yap, malaysian, the united kingdom, four german, Malaysia Airlines connects the teams of those once all families have been contacted, the passengers manifest will be released. In addition, Malaysian Airlines released the the possibility for releasing further information about an investigation gradually investigating authority, which in this case is the Ukraine National of air accidents and incident investigation retrieval aircraft. And by the country whose air space they would pass through. And the International Air transportation, iatd, has also stated that the air space was traveling system airlines in the hesitation of Asia Pacific Airlines over ukraine. European Airlines Travel the same air space. In our reporting the incident, a number of other passenger aircraft from different carriers knew the same route. There were no lastminute instructions given to the pilot s called mh17 to change the route of the flight. Earlier today, Malaysian Airlines released a statement which shows the aircraft had the same amount of help. They are concerned that all the aircraft symbols are functioning normally. Before i take your questions, i would like to reiterate malaysias condemnations on any attack and support independent International Investigations and most of all its sympathies with those affected by this tragedy. Mh17 was carrying 298 passengers and troops, and what must be an incredible and difficult time. Thank you. Ladies and gentlemen, members of the media, now we will have a q a session. We will start the question with the local media first followed by the international media. Here. Please. Could you please identify yourself, your name and the agency that you represent. [ speaking Foreign Language ]. [ speaking Foreign Language ]. [ speaking Foreign Language ]. We will leave that press conference there. You were listening to the ma haitian transport minister. He expressed his condolences and sympathies for the families affected. 173 dutch, 44 malaysians, 9 british citizens, 4 germans, 4 belgium webs 3 philippines, one from canada and a person from new zealand, too. Hes expressed his outrage against this human indecency if the plane was shot down. Were still not clear on exactly what happened as far as the malaysian officials are concerned. He said that he welcomes a call right now for an independent probe into the downed plane. There have been calls for a u. N. Led investigation here. Its so complicated given the number of elements, the number of people affected, and we are expected to look at a plane thats been downed in auto war zone in Eastern Ukraine. A number of elements here welcoming the idea of an independent probe into what happened. Theyre saying theyre going to send a Disaster Team right now, 62 people into the region and the minister saying that 15 out of 16 Asia Pacific Airlines fly that same route over ukraine right now. The flight path has been approved by the aviation authority. The likes of qantas coming out and saying they stopped flying this route several months ago. Well bring you any further news on that as we get it. For now, we have to take a quick look at whats going on in the israeli situation, too. Gaza Officials Say an israeli soldier and 11 palestinians have been killed as israels Ground Campaign against hamas mill at that points got under way. Prime minister benjamin netten use hue says the network tunnelled operations into israel. Hamas has warned the event will be dreadful consequences. Benjamin netanyahu is set to give a statement on the situation shortly. We will bring you that conference, too, as it begins. But for now, were speaking to a smokesman for israeli Prime Minister Benjamin Netanyahu. Thank you for joining us this morning. Weve had ten days of violence between israelis and the palestinians here. What more can be achieved by a ground offensive, in your view . Well, youre right. Its been ten days of intensive conflict. From israels perspective, weve received 1,500 rockets fired from gaza. On our civilian poll lagz. We tried to deescalate. We endorsed the egyptian proposed ceasefire proposals. Unfortunately hamas rejected those proposals, despite the fact that they were supported by the Palestinian Government, they were supported about by the arab league, they were supported by the United Nations. And so we have to continue our operation. If hamas said no to a ceasefire, if the rockets continued to be fired at israel, so we will act to protect our people. So youve made a decision to launch a ground offensive because you believe all other diplomatic routes have been exhausted. What does this mean for diplomacy Going Forward . Well, we could have deescalated yesterday, we could have deescalated the day before. There were those Diplomatic Options on the table. There were the egyptian proposals. Hamas slammed the door shut on those ideas. At the moment, the Israeli Forces are in action inside gaza. Its note a decision my government took slightly. Obviously, when you send boots on the ground, there is danger for our own people and obviously other complications can arise, the danger of escalation and so forth. We took this decision because we had to take the decision because hamas closed the door to a diplomatic solution. And our Ground Forces are dealing with two primary targets, one, of course, the rocket being fired at israel to deal with the rockets, the rocket launchers, the arsenal of weapons that they have there and also to deal with the system between gaza and israel. And hamas has built tunnels that allow them to infiltrate terrorists into israel and they can pop out pop up on our side of the frontier with weapons, with explosives and cause mayhem to launch a mass casualty attack like they tried yesterday and we successfully stopped that attack. We have to be on the ground in the area to deal with those tunnels. So the message from officials has been you dont have to have to go back. Police the gaza strip. Whats tend game here . What does a victory look like here for israel . Well, thats the ultimate irony. Our goal is to achieve a sustained period for quiet and security for israel citizens, that there wont be these missile strikes, these barrages of rockets from gaza into israel. If that is achieved, the operation is a success. I believe there is a good chance we will succeed with that goal. Thank you for speaking to us. Stay tuned, well have coverage of the mh17 disaster throughout the morning. Well be live in equal kuala lumpur, in israel and moscow. Stay with us. We needed 30 new hires for our call center. Im spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast . Go to ziprecruiter. Com and post your job to over 30 of the webs leading job boards with a single click; then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter. Com offer2. Welcome back to worldwide exchange. The u. S. Says the Malaysian Airline was shot down over Eastern Ukraine. Malaysia condemns any in the strongest possible terms and calls for those to safely ukraine putting the blame squarely on russia, releasing recordings they claim prove pro russian separatists fired the missile. Russian president Vladimir Putin points the finger directly at kiev. The state over which it happens is responsible for this terrible tragedy. 1 israeli soldier and many palestinians dead after israel starts a ground offensive. The safe haven trade begins to unwind as gold loses grouped. The israeli Prime Minister Benjamin Netanyahu is due to give a statement on the situation in gaza shortly. Youre looking at a live shot of tel aviv and the place where the statement will be made. Well bring you that live as it happened. Weve also been listening to the press conference of malaysian officials talking about the events surrounding the plane coming down in Eastern Ukraine. The transport minister saying if the plane was shot down, it convenes International Law. He says those responsible need to be brought to justice. There was a suggestion put forth that the u. N. Needs to lead this investigation. The malaysians, the situations in the east of ukraine, tensions between russia and ukraine right now. So an International Investigative body like the u. N. Coming into this to address broader concerns with how to deal with this. The Prime Minister said its necessary the crash site be preserved. There was a suggestion pro russian separatists found the first black box. There are reports that could be in russian hands. Concerns raised about that, too. For now, a lot of speculation. Officials are saying theyre going to dispatch a team o of 62 officials to ukraine right now. We have the official numbers of how many people on board. 173 dutch on board, 9 from britain, 4 German National oets plane, 44 malaysians and also the nationality of another 20 passengers do remain unverified at this stage. Officials pointing out that 16 air Pacific Airlines flights have been rerouted. Qantas say they have not been flying through this area for several months. The Malaysian Airline officials did say that the International Body had said that this was a safe route to fly. The ukrainians themselves are responsible for their own air space has banned people flying 32,000 feet. This plane, of course, was brought down from 32,000 feet. Plenty of questions are going to be asked about whether or not flight should have been made in this region also at what height theyre able to fly. The transport minister did put out his thoughts and players for all the families involved. Well continue to keep you updated on the various elements of this story right now. But you can head live to cnbc. Com for a live blog of news on the mh17 as it unfolds. Now, lets take a look at how the european markets are fairing this morning. We have seen the european markets bounce off their earlier session lows. Right now, youve got the ftse 100 down by 0. 4 . The german markets are down just over. 5 . You have seen a bounce into positive territory for the italian market higher by 0. 1 . Investors right now remain cautious. The geopolitical events, as well, as weve been describing this morning. Taking a bit more of a moderate tone as far as trading is concerned. Right now, as youre seeing, the malaysian index there down 0. 5 . We did see Malaysian Airlines stock itself down 15 . It pulled back 7 percentage points. Since then, weve got the russian micex under pressure. Actually, the underperformer in the Asian Session down over 1 in that session. We also saw the u. S. Markets that boar the brunt of this yesterday. The s p 500 down just over 1. 1 , the worst day for the u. S. Markets. So the s p 500 since air the 10th. Yesterday, we did see a 34 spike in the vix volatility index in yesterdays trading session, too. Lets take a look at the Foreign Exchange markets. The equity market under pressure. You see the dollar higher versus the malaysian ringgit. The dollar russian ruble down 0. 6 . We did see a bid flight to quality in the israel. And dollar shekel in israel pulling back to some of the losses the she cannel made in trading. They continue to make those gainkel. 19 of the worlds wheat supply comes from a combination of russia and ukraine at this stage. So not surprising that some of the moves we saw in the session and that ongoing move higher. What your thoughts on the Market Reaction yesterday and some of the pullback that weve seeing as far as caution is concerned in the markets today . Clearly, the Market Reaction yesterday in terms particularly. The russian assets were unexpected following the u. S. Sanctions. But the timing of the plane and the incident, obviously, is increasing the headline risks. Nevertheless, what weve seen to date, the Market Reaction as you mentioned is a bit more moderate. And the fact of that is we need really to wait and see the actual official investigation. Its very tricky, i guess. We shouldnt run into any conclusions because this is a serious incident and depending on the outcome of the investigation can have indications that are more severe and perhaps be an event that can bring an end to all this escalation Going Forward. One of the concerns that we were just digesting as this happened yesterday was the impact of the increasing sanctions already on russia, particularly as far as the u. S. Is concerned. What do you think is the likes of the highest of rosnet . Obviously, they did create a big headline risk and will have some compact in the shortterm. But we will look at the picture for the four sanction entities as well as even broader for the russian, corporate and banking space. There is still flexibility for another six months to a year in order to manage daily finance increase. Obviously, it would have further escalation of the sanctions and perhaps more severe sanctions can be used which are more critical, a scenario that is still up settled and this pressure will intensify. But for the time being, i think they can easily manage the situation. Plus, russia is expanding its trade links as well as fpsing with other markets particularly with china. Roznet is going to receive 65 billion which can cover all of its outstanding debt currently. Theres a number of unidentified members on this flight or people that were on this flight. Do you think if there were any chinese citizens it would make any difference as far as how china look at russia and their current dealings as far as ukraine and the east are concerned . Obviously, that might be the case. It wont be a very favorable event. But the country predicted the outcome of that. Its very difficult to say what has caused the understand. I think we better wait. But certainly if this event happened, we could see some challenges there. Right now, we dont know anything for certain and i think thats a point the markets have illustrated for us. What we know in the immediate aftermath is weve had condolences from both sides, not necessarily an immediate accusations as far as the americans and russians are concerned. Both sides are going to wait to see what the evidence suggests. Exactly. What do you think happens more broadly for the markets . Should they continue in this y way . Do they continue to rally here . In terms of a major rally, i dont see that happening any time soon. It all depends on the outcome of the investigation. Its still uncertain how it will go. If the situation is proven, it will have negative implications. If there is no proof, the markets will come back. The investigators are waiting concerning the russian actions and theyre waiting for the eu to decide on any additional sanctions. Thats more critical. And that is a good point. If it turns out that this was a separatist led attack, if it can be tied back to russian rebels in particular, this should be a signal for the eu to step up and in some ways match the u. S. As far as sanctions are concerned and specifically gazprom by name. What are your thoughts on the possibility, the likelihood of that even with this event in the last 24 hours . In that case, the chances for such an event occurring are going to increase. Concerning particularly gazprom, im not convinced. That would have severe implications for the european economy and will cut the gas to europe. Its quite interesting to see even in the recent sanctions that the u. S. Enforced three days ago, gazprom was not included in the named of the sanctioned entities. Gazprom is a very good title for potential functions. We are in summer markets, slow volumes, low volatility, and given value ages right now, do you have to expect any risk about definitely. We have a look at the gaza picture. They have the operations of israel, we also have a lot of crisis events going on in iraq and the middle east. We are going to be in a more turbulent scenario in the coming months. Thank you so much. Now, netanyahu is speaking. We will update you of what he says as we go through this. Hes talking about israeli decisions to launch a ground offensive, as we were just speaking there. The adviser for Prime Minister Benjamin Netanyahu says all other avenues of diplomacy have been tried and they failed and this is a situation they now find themselves in. Thats the other issue right now for investors to digest and to be focused on. Weve also, of course, still got the situation in the east of ukraine. Sri is in kuala lumpur where the press conference with the transport minister has just been going on. Sri, give us the latest of sentiment right now. The latest, julia, is that despite the reports that weve been hearing, that the black box possibly two black boxes from the stricken mh17 flight have been found. The transport minister for malaysia told us here that they could not verify at this stage whether they had been found and also these reports as to whether they had been dispatched by the separatists to moscow for appraisal and assessment. He also told us at this stage the ukrainian authorities cooperate offer any official information on the location of the black boxes. That is still very much a work in progress in terms of the investigation. He also said that the shooting down of mh17, if it is confirmed, contra convenients International Law and is an outrage to human decency. And he went on to say that if it was an act of terror, if it was an egregious act, then the full force of the law will be brought against these individuals and the perpetrators will be brought to justice. The other point i wanted to stress here is that the crash site, that should remain intact. The evidence should not be tampered with. He made it very clear at this press conference. He said this, it is essential that the integrity of the mh17 crash site be preserved. And there are other issues that came up here. He was peppered with questions about why International Carriers like Malaysian Airlines were over flying what is to all intents and purposes a war zone. And he was very clear on this, once again, and he defended that position because as you maintained, it was in line with International Aviation protocol and rko standards. Once again, Malaysian Airlines and a host of other airlines have come under a lot of pressure and a lot of criticism for over flying the Eastern Ukraine despite the fact that almost two aircraft prior to the mh17 are downing were attacked by a pro russian separatists within the space of a week. So that is where we stand at the moment. Let me also add that he clarified that mh17 didnt send out any distress call, as well nap is where we stand at the moment. And i think the emphasis is going to be on the investigation now. Its going to be an International Investigation, but one that is going to be complicated by the fact that this aircraft came down in disputed territory and in territory that ostensibly belongs to pro russian separatists. Back to you now, julia. Thank you so much. There are far more questions at this stage than answers. It will take us some time to work through the details of this. You can head to cnbc. Com for my blog of news as more information unfolds. Now, we are listening in also to a press conference with the israeli Prime Minister. Hes just said hes prepared to expand the ground operation in gaza at this stage. There is no other option but to act on tunnels on the border. We were just speaking to Senior Adviser of the Prime Minister and he was reiterating the same point, that theyve exhausted all other avenues of demroimsy right now and this is the stage they find themselves out. Its very difficult to determine how to move forward and the solution after what is now ten days of violence. Well continue to keep you updated on further comments. After the break, we continue our coverage of the mh17 disaster throughout the morning. Stay with us. Were continuing to watch the press conference with israeli officials. We saw them saying the country is prepared to expand their ground operations in gaza if necessary. He said there was no other option but to act with tunnels on the border. He said the world sees a warped picture of what were doing, but we have support. This comes back to the question that weve been asking for the last ten days of a proportionate response for the israelis towards hamas and whats happening right now in the gaza strip. He said only hamas is responsible for the escalation now. We spoke to Prime Minister netanyahus spokesperson earlier on the show and he was saying this is israels focus and the only goal is purely on the defensive basis at this stage. We made the point to him that right now the goal is to or the desire is not to topple hamas in the region but its not to go in there and police the region. He said this is a purely defensive response. The question now is weather that response is proportionate. And the Prime Minister saying the warped view is being seen by those around the world. Lets take a look at some of todays other big corporate movers in the markets this morning. Ericsson said revenue beat expectations up 15 from the previous quarter. This is bank sales from russia, china and brazil. They expect brisk sales to continue throughout the year. Another story from volvo, they missed earnings estimates because of weak demand in its main market, europe. And shire among the top of the stoxx europe 600 as the markets anticipate a possible merger with u. S. Drugmaker abbe. The deal is expected to be around 55 million. 11 times revenue, is it is fair . Yes. I think the consensus is this offer is quite fair. Weve seen quite a bit of a jump from the initial offer which was 39. 15. That was the one done unpublicly and then the public offer was rejepthed around the 46 pound mark. That was itself considered quite decent. And i think a few bumps were expected and now i think everyone is expecting meaningful engagement here right now. How shocked are you going to be if this doesnt come . I think there will be a lot of surprises here. Right now, the final negotiations are really said the rumors are that theyre around the reverse break fees, given the uncertainties in the u. S. Tax laws. So weve had a little bit of noise this week in terms of the u. S. Treasury secretary coming out and saying he wanted to put down the type of inversions that not only just do that when they would get around to doing it, but back to may 2014. So that puts a lot of uncerta uncertainty on this deal because its really about the tax driver. Absolutely. And i was just going to ask you, you buy into the thought that this is about diversification . You look at them like theres only no synergy there. Are you going to pay that much for just diversification . I mean, the consensus really is in the industry as its worth to go through with this deal if theyre going to get that tax break, which is quite a big break. So it all comes down to Tax Consultants at this stage saying, look, were not sure where congress is going the take this, but it could be retroactive tax policy on what does appear to be inversions . Yes. Does abbvie walk away on that basis . They could walk away. We dont know how solid these suggestions are, the suggestions made to congress. We dont know how much weight thats going to hold in front of them. So i think that the negotiations right now are going to be very intricate on the part of shire. Shire dont want to go through with this and come out like the loser. Abbvie, if they are not going to get the tax breaks, abbvie will not want to go through with the deal. If it does fall apart, i think people will be very surprised. I think thats why were seeing last minute negotiations happening to get the right agreement done if this does come to play. Thank you so much for your insight. Back to our top stories, 290 people are dead after a Malaysian Airlines plane crashed in Eastern Ukraine. Pro russian separatists and the kiev government are accusing each other of shooting down flight mh17 with a missile. The flight was en route to amsterdam. Chuck is in amsterdam. Chuck, many individuals lost their lives in this, but by far, the greatest losses were Dutch National necessary this crisis. Whats the reaction been there at home . Has it had any knock on impact to slight because there was a similar flight leaving today, i believe. Well, youre absolutely right. The exact same designator, mh17, it leaves in a little over an hour from now. Passengers are checking in and we had a chance to talk to one of the boarding passengers who said, yeah, are you nervous about getting on this flight . Certainly the person was nervous, but they said i dont have the money to change the i can tell the. Ive got my ticket in hand so im going. One of the things that struck me as rather curious, you could expect to see some sort of sign of relief from the airline at amateur dam, but there is no sign of that at all. T business as usual. This is a cochaired flight with klm. No notification at least on the check checkin, but maybe on the aircraft that the plane wont be flying the same route but will be going north of the ukraine instead of going over the ukraine itself. Many, Many Airlines announced that they were changing their route of flights. The number of things that gets you is the number of clemg aged or High School Students going on Summer Holiday and, you know, you know that among those passengers, there had to be a lot of young people going down to kuala lumpur, and then perhaps on to bahli and what not. Many of them were taken off to a hotel which is off at the airport site itself where were told theyve been given grief counselors and any sort of aid they need. What were stilt waiting for here is we should get the nationality of some of the 40 other passengers and some of the ages of those aboard other than the infant which they have already identified. Chuck, thanks for that. Now, for up to minute coverage of the mh17 disaster, head to our live blowing on cnbc. Com for all the information, fallout and the comments that have been made on this coverage. Lets have a look at how the european markets are trading right now as we head into the session. Lower by around 0. 5 as far as the uk markets are concerned. We have bounced off some of the lows this morning. 0. 6 lower for the german markets. The french markets relatively unchanged. A bit of less caution that we saw in the end of the u. S. Session yesterday. As far as the futures are concerned, the u. S. Markets right now, as you can see, a similar story there. Relatively unchanged right now, totalling slightly higher for the u. S. Futures. Well discuss the reaction in the markets as far as the situation in israel and any further developments on the situation in east of ukraine. Stay with us. Were back in two. Welcome to worldwide exchange. Im julia chatterley. These are your headlines. Ma haitian Officials Say their airline was shot down over eastern ewe crepe. We condemn this and call for ukraine taking the blame squarely on russia, releasing recordings they claim pro russian separatists fired the missile. Vladimir putin plaming the incident directly on kiev. Benjamin netanyahu says he is prepared the widen the ground offensive in gaza. Stocks trade lower, but the safe haven trade begins to unwind as seoul loses ground. Sglaiz. Announcer youre watching worldwide exchange, bringing you business new from around the globe. 298 people are dead after a Malaysian Airlines plane crashed in Eastern Ukraine. Pro russian separatists and the kiev government are accusing each other of shooting down flight mh17 with a missile. Russian president Vladimir Putin blames ukraines government for the disaster. Malaysian officials have held a press conference in the last hour, confirming those on board. Officials have indicated that Malaysian Airlines mh17 was shot down, should it be confirmed, it would International Law. Malaysia condems any in the strongest possible terms and calls for those responsible to be safely prosecuted. Sri is in kuala lumpur. Sri, i know theres more questions at this stage than answers. But can you tell me what we do know at this stage . Well, remember, julia, would he have been hearing very International Condemnation with Vice President joe biden going so far to say that this blaem plane was blown ow of the sky by a missile. We heard from the malaysian transport minister about a half an hour ago. He stopped shy of saying that this plane was shot down. He also didnt go as far as saying who was to blame for this. But he did say this, that if it was confirmed, if the flight was shot down, that the contra convenients International Law and is an outrage to human decency. The outrage itself is the crash scene investigation. You and i know that this is going to be on over the fact that this came down in disputed Eastern Ukraine territory. Now, what we do understand is that this is going to be an International Investigation led by the Ukrainian Government. That is what the transport minister confirmed to us clearly earlier on the today. And all of that will be in line with protocols set out by the International Sie nationanation organization. Weve heard a lot of reports about black boxes, one or maybe two being found and retrieved by the Emergency Responders on the ground in Eastern Ukraine and some reports going as far as saying that the separatists have dispatched one of the black boxes to moscow for analysis. The transport minister could not verify those claims at this stage. He did make it very clear that the crash site needed to stay intact to ensure the integrity of the debris and the debris field. This is going to be highly contentious because there are claims that the debris is being moved around by the separatists in order to allegedly cover their tracks. So this is going to be a very, very tricky issue for the crash scene investigators when they do get there on the grown. And it is going to be an International Probe into what went wrong, julia. Back to you. Now, we were just talking about a potential merger with abbvie and shire. They have agreed to merge the combined Companies Worth 137 billion. As far as price is concerned, theyve agreed to 52. 48 share offers. It was higher than we were speculatin speculating. 53. 2 pounds is what we were speculating right now, an nd indicated value of 53. 19 shares value the entire issue. To be issued on a fairley diluted basis. We confirm the numbers on that at approximately 32 billion pounds. Thats the level right now. Shire shareholders expected to hold new abbvi shares, presenting approximately 25 of the issued Share Capital of abbvie right now. Thats approximately 25 holding of shire shareholders in new abbvie shares of the Share Capital of new abbvie. Right now, the entire company is worth 137 billion. Right now, the shire shares will be delisted in london, so delisted in london after the merger and further details now coming through and abbvie bidding 24. 4 pounds in cash, thats 0. 896 new shares for shire. The indicative value, as i said, 53. 19 pounds per shire shares, valuing the entire issued and to be issued Capital Shares at 32 billion pounds. German chancellor Angela Merkel is holding a press conference, will no doubt make comments on the latest situation in Eastern Ukraine. We will bring you updates on whatever she says on that point as soon as we hear. Now, lets get back to our top story today. The situation right now in the Eastern Ukraine with the downed Malaysian Airlines plane, nbcs jik maceda is in moscow. We were talking earlier about how putin makes a move as far as the fallout from this situation is concerned. Right now, we have no confirmed details of who is involved. How does this impact russias relationship with the west . Well, it clearly will impact russias relationship with the west. We have to consider that the day began with president putin very quickly calling president obama about the crash. Everyone was surprised how fast that happened. That was an encouraging moment. So its still unclear whether the plane being shot down was actually part of that initial call. What is clear is that theres been so much finger pointing and blame gaming since that took place, youve got, for instance, the ukrainian president poroshenko calling it immediately a terrorist act. Blaming both the pro russian rebels for launching the ground to air missiles that apparently took out the plane and he also blames russian president Vladimir Putins government for providing weapons like the sa17 for the boot missile launcher to the rebels. On the other side, you have the pro russian separatists denying it categorically, saying theyre incapable of taking out a plane at 33,000 feet. They blame the ukrainian army. Putin himself has been very cautious, perhaps because hes worried about future relations with the west, with the United States in particular. He seems to have backed off from accusing one side or the other, of pulling the trigger, but he clearly laid a larger blame directly on kiev, saying if the Ukrainian Military has not broken the ceasefire, the unilateral ceasefire, we might add, and if it had not restarted its socalled antitror operations, then he said this whole tragedy would never have happened. So there we have putin once again casting himself as a man of peace. Now, in terms of the real fallout, its really hard to say. This is certainly not going to help relations that were already at a low, not historic low, but certainly a real low point since the end of the cold war. President obama has launched a new wave of sanctions against russia. But putin so far does not seem very concerned about that, julia. This third wave of sanctions only seems to have made him more angry. Back to you. Great point there, jim. The other thing weve been discussing this morning is what happens with the alleged two black boxes that have now been found . The first one believed to be in the hands at least of the pro russian separatists right now. Theres speculation that that black box is now in russia. What are your thoughts on that and having the kind of information now with the russians . Well, the thoughts turn quite grim when i think about it and whenever analysts think about it. There are analysts here today who are extremely worried about those black boxes ending up in the hands of russia. Remember how strongly putin came out with his first major comments to russian reporters about the crash saying that russia had to be taking a lead role in the investigation. And if it didnt, it would mean that it would prevent, i think he said, any objective conclusion. So already there he seems to be wanting to take or intenting to take the lead. Normally, in this situation, it would be the Ukrainian Government and president poroshenko who would be doing that very same thing. If those black boxes are handed over to by the separatists or a separatist to the russian government, its quite its going to be a as one man put it, a disaster piled on to a tragedy. German chancellor Angela Merkel is holding a press conference. For now, what shes said is we need a ceasefire in ukraine to allow a rapid investigation. She said those responsible for mh17 must be brought to justice. Commenting as far as russia is concerned, she said russia must work towards a political solution in ukraine. I have to say weve heard that many times before. And ill tell you back to what we heard from Hillary Clinton as saying that if this is attributable to the pro russian separatists and if ultimately we can tie russia to the weapons that were involved, then this is a call now for the european leaders to step up their approach to russia right now. Obviously, right now, nothing is proven. We have no concrete information over who actually did this and what the involvement is for now. But for now, were hearing from Angela Merkel saying that ukraine and russia as far as theyre concerned need to work towards a political solution. Well keep you updated as further comments are made. We have to take a quick break, but stay tuned. Netanyahu spoke in the last hour. Well update you on that right after the break. Welcome back to worldwide exchange. Malaysia calls for justice as 298 people die in a plane crash over eastern ewe crepe. Russia blames ukraine and in the middle east, israel says it could widen the offensive against gaza. The israeli Prime Minister said theres no other option than to act on the border. Only hamas is responsible for the escalation of this crisis and he says the world see aes warped picture of what theyre doing, but that they have support. It raises questions again about the response. Hadley gamble joins us now. What can be achieved that hasnt been achieved with the actions weve seen in the last ten days . Secondly, is that a sign from the caution and that hes acknowledging the iraqi from the west. Some of the comments that have been made about the proportionate response here . I think hes did definitely acknowledging that there has been some throw back in the press reports in the west in terms of what theyve been doing in gaza. But at the same time, if you cast, as the israelis have done within the narrative of a survival narrative, then they have no other choice than to continue with this course. He wants to bring hamas to the table and how else can he do this . Unfortunately, the real victims are the civilians in gaza. Also, being in dpaz, you have to recognize that youre creating more resentment because now they have a legitimate agreement in this case. Unfortunately youre going to cause more and more problems. But politically, he has no other choice than to continue. We talked to the spokesperson for netanyahu earlier on the show. He said what does this mean Going Forward. What does it mean, hadley . I think youre going to see hamas will inevitably have to come to the table. And both sides recognize this. Its just yet again, what we were talking about in the last few days, who walks away as a winner here . There is no real winner in this situation, but how can you contract the whipper to your own base millie that weve walked away as winners in this situation . Unfortunately this is being a longer process than we initially had hoped. We asked this question, too, what is a victory here . I get the long gape, but in the shortterm . They want to be able to say yes, this is an argument about our very survival as a country and as a people and weve been able to protect ourselves. Hamas, unfortunately, what they want to say to their people and what theyve been able to say in various ways in the past is we put up a good fight and the israelis inevitably backed off and they cant get rid of us completely. Really, they dont want to get rid of them completely. They dont want to go back and police the gaza strip. They dont want to be there again. What they would like to see is a government that they can trust to keep things under control. Really, hamas has been a bit of an ally to many of the countries. Hadley, we will come back to this story after the break. Well continue our on coverage of the disaster of mh17. Stay with us. German chancellor Angela Merkel is holding a press conference. Shes discussed the Eastern Ukraine downed plane. She said a ceasefire is needed in ukraine. The ceasefire situation is not happening. Thats the first thing that senates to happen before we can see an investigation take place. Those responsible for mh17 need to be brought to justice. She said russia must work towards a political situation in ukraine. She said russia does carry the responsibility, not the current over the last 24 hours and the events that have happened there, but she is apportioning some blame to russia right now for the tensions that remain in the region. Key point, she said theres no cop termation on who brought down the plane. There is a lot of speculation that it was down to the pro russian separatists and, of course, questions being asked about where they got the whatever it was that shot this plane down. Still a lot of speculation about that, too. Well continue to bring you those comments as they come through. For now, have a look at what former u. S. Secretary of state Hillary Clinton told the charlie rose show about the situation earlier. There does seem to be some growing awareness that it probably had to be russian insurgents. Now, how we determine that will require some forensics, but then if there is evidence pointing in that direction, the equipment had to have come from russia. If there is evidence linking russia to this, that should inspire the europeans to do much more on three counts. One, toughen their own sanctions, make it very clear there has to be a price to pay. Number two, immediately accelerate efforts and announce they are doing so to find alternatives to gazprom. You know, russia has been diversified its economy. It is largely dependant upon natural resources, principally gas and oil. Thirdly, do more in concert with us to support the ukrainians. U. S. Markets boar the brunt over concerns of what this crisis means now in Eastern Ukraine. The s p just down over 11 yesterday. Right now, we see a little bit of a pull as far as the futures are concerned. Right now, the s p 500 indicating higher by 2 points, the dow jones indicating higher by 14 points and the nasdaq higher by 10 points, too. They were indicating slightly higher around an hour ago. If we head towards the u. S. Equity markets, we did seem to be losing ground, but now pulling back up. John from lpl joins us now. We did see a bit of a knee jerk reaction in the markets, there was the situation with israel, too. We have to bear in mind, low volatility, low volumes, too. Whats your take on what we see today . Yeah, i think it is. Part of the year that were in, were in the earnings season. So thats generally been a positive for the u. S. Equity markets here over the last four years. So thats where the support i do believe that the Market Reaction yesterday was pretty typical of what you see here. The markets trying to wrap their head around what exactly happened, what was the cause of it. More importantly, is this going to escalate from where it is . I think the futures tell us now that the markets are comfortable with where we are now so the markets largely are going to start to focus back on the earnings season. We have earnings here today and then on the fundamental macroeconomic picture here in the u. S. And overseas, as well. So as an investor, how do you play this . Do you remain defensive or do you think as you just suggested there we can end up seeing a pretty swift snap back . We have to see an investigation on this to determine who is responsible and what actually happened . Yeah, i think theres enough uncertainty around this event and around was going on in gaza that markets will probably take it easy today. They will be long over a weekend. Its the summer again, low trading volumes so i think today is sort of a wait and see. Theres earnings throughout, theres some key economic data. So i think it will be a wait and see mode again today. But certainly markets are on edge here. John, i have to cut you off there because we have to take a quick break, john from lpl financial. Stay with us as were bringing you our coverage of the mh17 disaster. Were back in two. Job to over 30 of the webs leading job boards with a single click; then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter. Com offer2. Welcome to worldwide exchange. Im julia chatterley. The u. S. Says a malaysian jet carrying nearly 300 people were shot down over Eastern Ukraine by a surface to ground missile. Malaysian Officials Say if its true, an an outrage against human decency. In the strongest possible terms and calls for those responsible to be ukraine putting the blame squarely on russia, releasing recordings they say include pro russian separatists fired the missile. Russian president Vladimir Putin blames the finger back at kiev. The state over which it happened is responsible for the terrible tragedy. Israeli Prime Minister Benjamin Netanyahu says hes prepared to widen the ground offensive in gaza. Equity investors remain cautious as stocks trade lower, but the safe haven trade begins to unwind as gold loses ground. U. S. Markets are called to open higher. Announcer youre watching worldwide exchange, bringing you Business News from around the globe. 298 people are dead after a Malaysian Airlines plane crashed in Eastern Ukraine. Pro russian separatists and the kiev government are accusing each other of shooting down the flight mh17 with a missile. Russian president Vladimir Putin blamed ukraines government for the disaster. Malaysian officials have held a press conference in the last hour. They are concerned with nationalities of those on board including 173 dutch and 44 malaysians. Take a listen to what he said to say. The u. S. And ukraine have indicated that Malaysian Airlines flight mh17 was shot down. Should this be confirmed, it would be contra convenient International Law and be an outrage against human decency. Malaysia condemns any in the strongest possible terms and calls for those responsible to be safely prosecuted. Sri is in kuala lumpur. Sri, weve discussed that there are many things going on at this stage. What are you hearing about the possible investigation that have been called for a u. N. Led investigation to take place . Yeah, thats right, julia. Its going to be complicated by the fact that, as weve said many times, this flight came down in disputed territory. So thats going to be one of the issues that is going to prevent air crash investigators arguably from performing a clear picture of exactly what happened. But lets be clear here. The international outpouring of that condemnation has been very swift and fast and strong and the Vice President of the United States, joe biden, certainly hasnt pulled any punches there. And he said that this flight was shot out of the sky by a surface to air missile. What we heard from the malaysian transport minister was a little bit more of a nuance. He did say that if it was confirmed, if you heard it from the sound bite earlier, if it was confirmed that this aircraft was shot down, then they would Face International con perpetrators would face the full force of justice and the malaysians would do the utmost to bring them to justice. There are several missing parts of this equation here, given the fact that the black box still hasnt turned up. Thats what the malaysians told us. There are a lot of reports circulating around the internet that the pro russian separatists have retrieved one or more of the black boxes and sent them to moscow for appraisal. The transport minister here could not verify those claims. But i asked him about it and i asked him about what the next step would be if, in fact, the black box were black boxes were sent to moscow. And i also asked him if he believes that this was a willful act of terrorism. This is what he had to say. When the authorities and apology apologies so and do you think this is a willful act of terrorism or the a miscalculation on the part of war . All these operations of even now we are the benefactors. As he pointed out in your intro, julia, a lot of countries and organizations like United Nations and nato are putting a lot of pressure on the International Community to come together to really push for International Investigation. Thats whats really needed here. But this causes another set of problems. Its a big question. And we got an answer to that from the transport minister of malaysia. He said its going to be Ukrainian Governments who are going to be the lead agency of this investigation in line with the protocols set out by the International Civil aviation organization. The other point here is is that essential to ensure the integrity of the crash site . Thats what the malaysian transport minister made very clear to us earlier on today. And thats the point thats been reiterated throughout the day by the organization of the Security Organization of security and cooperation of europe that are on the ground there. They have spent their monitors and their resources to the crash site to ensure that it isnt tampered with or moved around and to ensure that we really get to the bottom of this and establish the facts. Thats where we stand right now, julia. Back to you. Thanks so much, sri. Joining us now is ian bonds, director Foreign Policy at the center for european reform and carla gallo. Ian, im going to start with you. We dont know any concrete details of who is involved, but there does seem to be an element that the pro russian separatists were involved. Would you agree . Yes. The separatists claimed about two weeks ago that they had acquired some High Altitude antiair missiles and that seems to be the kind of missile that may have been used in this case. Ukrainian military aircraft downed in the last few days, which i guess is another evidence that even points to that fact. Thats right. Thats right. But this flight was at a much higher altitude. So we have to be looking for a relatively sophisticated system thov achieved that. And the fact that the rebels claimed to have had such a system even though now they are denying that seems to me to point to the fact that they are probably responsible. There are a number of steps now that need to take place. An investigation. Sri was just talking there about the integrity of the site. Theres concerns the separatists have already removed at least one of the black boxes here. Yes. There is serm going to be an emphasis on an investigation into a war zone and given the initial access to the scene which are under the suspicions. But further down the line, if there was an independent investigation, still other bits of the puzzle remain uncertain and particularly the involvement of russia. Because theyre going to deny it, even if it ultimately comes down to pro russian separatists, we can in some way find a link that those came from russia, Vladimir Putin is going to deny it. Yes. I believe most likely Vladimir Putin will continue on the current line, that this was caused by kiev and by the but you cant and we bond control of the separatives, and we deny supporting them with weapons and anything like that. Hillary clinton suggested that if that can be proven, the separatists, the russian involvement, then the europeans themselves need to step up and push sanctions. If that is the case, how does this alter the relationship, do you expect an escalation of tensions between particularly the u. S. And russia Going Forward . At some point if it becomes proven . Given the vast majority of people who have been killed are, in fact, europeans, i think its inevitable theres going to be a ramping up of tensions between are we capable of stepping up sanctions at this stage . Look at how difficult its been so far. We are absolutely capable of stepping up sanctions. The European Council this week instructed officials to draw up further lists for sanctions by the end of this month. And i assume that as a result of this event, as it becomes clearer exactly whats happened, that those sanctions are going to be significantly tougher. Let me just add one thing, which is regardless of whether an investigation can establish definitively that the separatists were responsible for this particular incident, the fact is there would not be fighting going on in Eastern Ukraine if Vladimir Putin and his team had not encouraged it. They bear some responsibility for this. Do you believe what we might see as a fallout, if we can tie russia, that illustrate helps in some way bring russia, ukraine and the west to the negotiating table around this . Ive heard that interpretation quite widely. But i suspect this is unlikely because ultimately the west and russia have very different narratives. So there is very little score for investigation and understanding and finding a middle ground. I think they would both remained entrenched unless the evidence is conclusively pointing to certain weaponry being used coming from russia or with russian Training Provided for that use. And that seems very uncertain at the moment. I think i want to pick up on that finer point. Nothing is certain at this stage. A lot of investigative work needs to be done. We have to wait and see how this whole thing plays out. Gentlemen, thank you. Head live to cnbc. Com for a live blog of news on mh17 as further information is provided and the situation unfolds. Israels Prime Minister Benjamin Netanyahu has been speaking in tel aviv in the last few minutes. Hes mentioned that hes prepared to expand the ground operation in gaza. He said there was no other option but to act on the tunnels on the border and hes saying only hamas is responsible for the fallout and, of course, the violence that weve seen now for the last ten days and for the escalation that weve seen in the last few hours. He said the world has a warped picture of what were doing, but we do have support. In the last few minutes, german chancellor Angela Merkel has commented on the situation. She says both sides in the Israeli Palestinian conflict must accept painful consequences, that germany stands by israels light to selfdefend. She warnings there is a new policy to weapons used by hamas and that countried attacked like that must be allowed to defend them. Themselves. Up next, the latest from the white house as toous reacts to the downing of the Malaysian Airlines jet in Eastern Ukraine. Stay with us. Xkc welcome to worldwide exchange. Malaysia calls for justice as 298 people die in a plane crash over Eastern Ukraine. Washington blames rush yanl separatives. And in the middle east, israel says it could widen the offensive against gaza. Israels Prime Minister netanyahu has been speaking in tel aviv. He said the country is prepared to expand the ground operation in gaza and he says while the world sees a warped picture of what theyre doing, they do have support. That, support, echos comments by Angela Merkel in the last few minutes, too. Joining us now is Martin Fletcher live from tel aviv. Martin, a spokesperson for the Prime Minister this morning said this is just about defense. Is that what people there are saying . And are they welcoming the latest excursion . Well, julia, i guess they say the best defensive is attack and thats whats happening in this case. Israel is attacking gaza with much of its might right now. Theres been a massive air and sea assault on gaza to back up the Ground Troops that went in last night. So their ground assault on gaza. Now, defensive in the sense that their goal really is only to stop rocket fire from gaza into israel. Theyve been averaging about 130 rockets fired from hamas a day into israel. Without caughting remarkably little damage thanks to the iron dome system. But israel is aimed at stopping that, but also to destroy what they call the secret Tunnel Network with hamas built up inside gaza. Their goal is to allow the Palestinian Government to cross underground secretly into israel and attack Israeli Soldiers and civilians. And the final straw for israel was yesterday, when their intelligence spotted about 13 palestinian gun men inside israel, just emerging from a tunnel. Theyve bombed that tunnel, most gunmen appeared to escape back. But that apparently was one of two reasons that israel decided to go ahead with the Ground Invasion. When hamas refused the egyptian ceasefire proposal two days ago, that is when israel gave the green light for the Ground Invasion and that tunnel attack plus massive rocket into gaza, thats why the government decided to go ahead with the Ground Invasion, julia. U. S. Drug giant abbvie agreed to buy shire for more than 54 billion in is deal set to significantly reduce its tax rate. They have received the backing of shire aprod. The Company Shareholders would own about 25 of the new firm should the deal go through. Abbvie plans to base the country in the uk allowing it to benefit from the countrys lower tax rates. Meanwhile, google Second Quarter profit rose 22 . Sales were led by apps on google play. The volume of clicks on search ads are googles own sites. James center schroeders joins me now. Whatever you say about these results, it does show further evidence of the struggle to monetize mobile at this stage. There was a high profile exit from their ad business, too. What does this mean for the companies . I think theres a danger theyre people focus too much on the monetization in mobile. The cpcs, which are effectively the price that google is getting for each click has been a massive focus for the investors over the last couple of years or so. But really on balance, with the takeout, volumes are rise 33 . Price might be down 6 . But we still got overall greek revenues grog 22 year on year. For me, thats the more important number. 22 is incredibly healthy. So i am less concerned about the cpc focus that the market gets into. 22 is very, very and its distracted by the numbers. What about their acquisition trail, tighten aerospace, ness labs, there is a concern that theyve gone on quite a sporadic investment spree and a few eyebrows being raised over what point thats going to pay divide dividends. Are investors more happy about the 60 billion of cash now on the Balance Sheet . Just wonder fg that offsets the other. The cash is the big number and we see that across a lot of Technology Companies in the u. S. I think with google the nature of their acquisitions tends to worry people. Theyre a little bit offbeat. They go into we say ness labs, we start seeing Drone Companies similar to what facebook is doing and People Struggle to make accepts. I think if you look back at the last ten years, the history of their acquisitions, it has done very, very well. The acquisition of youtube back in 2006, the double click which formed the base of their networks business, and even android itself, which is now the operating system for most of the worlds smartphones. They have a very, very good history. They always worry you, but generally it pays off. Thats what investors are doing. Great to talk to you, james. Now, back to our top stories, 298 people are dead after a Malaysian Airlines plane crashed in Eastern Ukraine. The white house is waiting with its reaction to the downing of the Malaysian Airlines yet. Hampton pearson is in our washington bureau. Hampton, just talk us through response. Hello, julia. Thankfully, the obama administration, no real surprise here, is saying it is shocked by news of the Malaysian Airlines jet crash near the Ukraine Russian border and its blaming moscow for fueling tensions that may have led to the disaster. In a statement late thursday, white house pretty secretary josh earnest says, quoting now, we will while we do not have all the facts, we do know this incident occurred in the context of a crisis in ukraine that is fueled by Russian Support for the separatists, including through arms, materials and training. And he goes on to say, quoting again, this incident only highlights the urgency with which we continue to urge russia to immediately take concrete steps to deescalate the situation in ewe crane. The white house is calling for a ceasefire to allow an investigation into the crash as well as the recovery of remains. Earnest says there are concerns about the integrity of the crash site and its vital that no evidence be tampered with. U. S. Authorities are still working to determine whether any americans were on board that plane. Now, in an interview with pbss charlie rose, former u. S. Secretary of state Hillary Clinton said it is likely pro rush separatests shot down the jet, but forensic evidence would have to prove that. If there is evidence linking russia to this, that should inspire the europeans to do much more on three counts. One, toughen their own sanctions, make it very clear there has to be a price to pay. Number two, immediately accelerate efforts and announce they are doing so to find alternatives to gazprom. You know, russia has not diversified its economy. It is still largely dependant upon natural resources, principally gas and oil. And thirdly, do more in concert with us to support the ukrainians. Now, the faa is telling usair lines to avoid flying over Eastern Ukraine for now, expanding the order the Agency Issued back in april covering crimea and adjacent areas of the black sea. The faa says no scheduled u. S. Flights are using routes through this particular air space. Thats an update from the white house reaction and we will see as the developments continue to unfold. Julia. Thanks so much, hampton. Malaysian officials have held a press conference in the last hour. Theyve unveiled the nationalitities of those on board. 173 from the netherlands, 44 malaysians, 27 from australia, 12 from indonesia, 9 frs uk, 4 germans, 4 bell gums, 3 from the philippines, 1 canadian and one from new zealand. Right now, 20 remain unverifunv. I think the standout is the numbers from europe. The comments youve heard Hillary Clinton talking about, if we said the russian involvement, just what response comes from europe right now . There are plenty of announcements to go through. We did see the s p 500 losing 1. 1 , in fact, the worst date syrup april the 10th. Right now, were seeing a slight bounce. The dow indicating higher by is 12 points and the s p up by 1. 5 pints and the nasdaq just shy of 8 points higher. Allen from bulls eye options joins us now. We do seem to be seeing a bit of stabilization as far as the futures are concerned right now. Whats the way to play this now . Do you stay defensive . Well, i think you saw a shift to taking a risk off yet, just immediate iraqi to the unfortunate events. But overall, the markets are resilient. For me, its not how the market acts. Its how it reacts. Anytime weve had any issues, any crisis, the market has bounced back. Even if you look at yesterday, before the afternoon events here in america, the issue with the sanctions on russia, the market opened up sharply lower. We came back all the way back to abo positive. So it did bounce back right away. Look to see what happens as far as the lows in price that were seeing yesterday as a support point. What im watching is the vix and bonds. Im old school, so i use the bonds as a measurement of flight to quality and fear. And the high yesterday is what im going to keep an eye on. Im going to be pretty confident that the market will be resilient and come back. Lets remember, we got within a quarter of a point or so or i think one point of the alltime highs of the spx this week. People are looking for an excuse to take profits and i think thats what yesterday was. Given that its a friday, given that its summer market, low volatilities, low volumes in particular, too, i said stay cautious. You said you think there could be a bit of a bounceback. Is there an opportunity for investors perhaps to dip their toes back in . Yeah, i think it is. But i think a lot of people are waiting to see how things settle for today. If you look at it, were only a few points off of where we started the week in the s p. So i think there will be opportunities, but we needed some sorting out of the markets because weve come such a long ways. And thats really what i think things were. If you followed the vision, the vision had a huge surge up yesterday, the highest point in three months. Every time weve seen that surge in the vix, its gotten beaten back down and the price in the s p and the market itself has come back. Im looking for that to happen one more time. I dont think this changes the fundamentals. Its just a knee jerk reaction, like you said, i think. Allen, great to get your perspective. Chief openings strategist at bulls eye options. Well give you a quick look at how the futures are faring, too. A bit of a bounceback from the loss he we saw in yesterdays sessi sessions. Thats it for todays show. Im julia chatterley. Thanks for watching worldwide exchange. Squawk box is up in a few minutes time. Good morning and welcome to squawk box. Two major stories, israel launching a ground offensive into gaza after more than a week of missile attacks. And u. S. Intelligence Officials Say a surface to air missile did, indeed, take down Malaysia Flight mh17 over ewe contain, killing all 298 on board. Now the Investigation Centers around pro russian separatists and russian military. Its friday, july 18th, 2014. Squawk box begins right now. Good morning, everybody. Welcome to squawk box here on cnbc. Im becky quick along with joe kernen. Andrew is off. Approximated Israeli Forces are carrying out Ground Campaign prayings inside gaza today. This comes after a tenday air war. Israel says it is targeting rocket launchers, tunnels and more than 100 other targets. This is the first large scale Israeli Ground offensive in gaza in more than five years. And a Malaysian Airlines shot down over Eastern Ukraine, stoking tensions between russia and the u. S. Lead remembers demanding an International Investigation. Kiev and moscow are blaming each other or the tragedy. And the Global Market did you watch yesterday . I remember i saw this happening. Markets were still up 40. I didnt check for a while and the next thing i knew, down 50