Francisco. Shares of arii Asiana Airlines a skrugtruggle between the Muslim Brotherhood and the army intensifies. All right. Welcome to you. Start of a new trading week here on worldwide exchange. Just over an hour into the trading day, were certainly waited to the upside of nearly or more than 91 advancers out pacing decliners now. Gains toward the end of last week. The ftse last week up 2. 5 . Best week since january. Right now up with the best levels of the morning so far as well. Ftse up another 1 today helped no doubt by andy murrays historic win at wimbledon. First time in 77 years british male champ at wimbledon. Portugal, up nearly 2 as well on the bond markets. Still looking at the fallout, of course, from last weeks jobs report. Much stronger tenur eer 10year. Went up to 2. 75 on friday. Which is the highest since 2011. The spread the widest since 2006. A steeper yield curve normally is what you should get if you think the economy is going to be improving. Currently markets, dollar index up at a threeyear high today. Dollar yen, just a little bit low. 101. 14. We got up to 101. 54, sort of the may highs for this year. Euro dollar, pretty poor week for the pound last week. Down 2. 85 against u. S. Dollar. Now 1. 4883. People talking about low 1. 40s for cable. Ausse dollar 90. 58. Lets get more on where we stand with the first trading day of the week in asia. An update on singapore. Its a risk off mode across asia over earnings jitters and fed tapering fears. Markets were sold off heavily ahead of key data tomorrow. The weakness really came after beijing decided to tighten fresh credit to injuries struggling with overcapacity. Investors also fret authorities could restart the process very soon. The shanghai composite tumbled 2. 4 today. Hang seng in hong kong lost 1. 3 . Banking shares bodiroadly weake. Many think this will make the sector more competitive and could possibly hurt lenders net interest margins. In japan shares of softbank had quite a volatile day of trade. Rising as much at 1. 7 before ending down by 3. 4 . The turnaround really happened after s ps downgrade of the stock by two notches. For the broader nikkei 225 also extended weakness in late trade. The index lost 1. 4 today. Meanwhile the regions resources shares also lost ground, atrackiatrack i attracting weaker commodity prices. Chinas largest gold miner tumbled almost 7 after profit warning. Atlas iron and newcrest also took the brunt of the selling today. Thank you for that. Well catch up with you later. Weve been watching events, fast moving events in egypt. These are the latest shots of tahrir square. Were also getting well be out with the latest on that and reports of those deaths as well. Tanks apparently still blocking the bridge. At the same time, tension is very much on greece as well. The eu and imf also discussi ii possible cuts as part of the Fiscal Program as athens has been in talks for the last weeks. Amidst complaints from the eu it had not met reform targets under the terms of its bailout. The imf says details of the deal are likely to emerge before finance ministers sit down today in brussels. Julia is in brussels with her thoughts and the latest. Hi. Reporter good morn ing. As you said, the Euro Group Working Group trying to thrush out the details. V. A. T. On interest sales, that was one of the key election promises from the government. It may seem like a strange request. It is something they promise they are fighting for that. The big thing, of course, the Public Sector reforms cutting down the bloated Public Sector. One of the agreements was 25,000 Civil Servants to go on administrative leave and ultimately lose their jobs this year if they cant be transferred to other places. That apparently got an agreement among the troika and the greek officials over the weekend. There are just a few details still being thrashed out weve seen. Ultimately whats whats at stake here is an 8. 1 billion euro sum of money. 4. 8 billion euros to come from the eu. 1. 8 billion to come from the imf. Ultimately theyre expected to get this money, though it will come through in two separate tranches. A carrot and stick approach as far as the greeks are concerned. Yes, we can reach a deal today. Also weve seen with this Greek Program in months gone past we can agree to things. The problem is the impleme implementation and whether they can push through on Public Sector reforms. Its caused a splintering of the coalition over the last few weeks. The Prime Minister likely to struggle with the implementation of this even if we do get an agreement. Back to you. What are they saying about portugal . Reporter its interesting. Its going to be the new finance ministers first meeting with her euro group colleagues. The message is going to be clear from brussels, they need to keep up with the reforms and keep the focus on regaining bond market access. Of course we now have this new deputy finance minister, someone who tried to back away from austerity. Hes now in charge of the negotiations with the troika. I think we have to see how the negotiations go forward and just how far they can, if anything, step back from the austerity program. So i think as with greece, okay for now, but implementation risks Going Forward. Sure youre right. Good to see you. Thanks for that. Well be back with you later in the program. Portugals Prime Minister reshuffled his cabinet over the weekend. He promoted the man who threatened to bring down the government to deputy Prime Minister. He will also help coordinate economic policy. The eu commissioner has praised the portuguese government for providing political stability. European economist at Morgan Stanley, thanks for joining us. Last week we thought the government would fall. Clearly its a positive at the moment that they havent. Are they going to do any better job, though, at delivering the reform needed for the package . Thats the key question. And whether this will happen remains to be seen. Yes, this agreement, if confirmed by the president of the portuguese republic, would be positive when it comes to diminishing near term risk of political instability. When it comes to the reform momentum and the ability to deliver on muchneeded reforms, its an open question. Portugal so far has been described as a good student. One that has delivered on some reforms. Also on spending cuts. Even though the deficit targets have been revised twice because of these appointments on the tax revenue side. So with a new chief negotiator of the troika program keen to see some changes to the adjustment portugal is to go through, whether the reform momentum will be maintained is a key focus of Financial Markets. Yeah. Is that the key . While youve moderated your view on portuguese debt from bullish to neutral . Yes. Thats exactly right. We are more cautious at this stage. That is a theme that goes beyond portugal. But when it comes to the specifics of politics and policy in this country, we moderated our view because of domestic political concerns. Because of possible developments, not necessarily in the right direction, when it comes to the reform momentum. And also finally because of external factors such as a rise in core because of fears of early fed tapering. Do you think what we saw last week in portugal was just the cds playing politics in terms of trying to soften the terms . Or how big is the risk of the government breaking up . Well, i wouldnt expect the major changes in policy in the near term because there is not really alternative to the current path. This meeting of the euro Group Finance ministers will be the first with the new finance minister. But what is clear from the recent developments is that there is some sort of austerity fatigue going on there. Yes. Well have to see. I guess well have to see how the politics plays out. At the same time, just talking about yields specifically, clearly we saw response last week from the ecb and the bank of england to try and depress yields again. How much is the ecb and euro policymakers in danger of losing control of bond yields because of fed policy . Actually, i think what the ecb has done is quite important. They introduced some more concrete Forward Guidance and with an easing bias. Especially mentioning the deposit rate and talking more broadly about all the key policy rates that will stay either at the current level or will be lower with the 50 basis point threshold. The current level of the rate not seen as the lower bound. Thats, of course, our own consensus call for another ecb rate cut. And the reason, one key risk that has been introduced to the to the forecast, which is the tightening in the monetary and also Financial Market conditions because of developments elsewhere outside of the eurozone, including fed tapering. That is quite a shift. The ecb effectively is guiding towards extra monetary easing towards lower interest rates. Thanks for that. Just talking about the ecb, weve heard from mr. Novotny on the ecbs governing council. Talking about a bank bail in plan beginning in 2015 as well. Hes saying efforts to strengthen the Financial Sector are needed to ensure financial recovery. Also talking about stress tests showing solid results for the overall Austrian Bank sector. Individual banks remain conspicuous as well. Weve also got some other comments out from the troika. Well also talk about greece and eu aid as well. Have we got those points on screen . Theyve agreed to the they have agreed to the bail out tranche, apparently. Right. Conditional on approval. Right. Details emerging over the event that led to the crash of the Asiana Airlines boeing 777 in San Francisco over the weekend. Nbcs john yang has more. Reporter ke cly clues revea. Recordings of cockpit conversations seem to show the crew thought everything was fine until about seven seconds before landing when one crew member calms for increased speed. Then three seconds later they get a warning that the plane is about to stall, lose its ability to fly. A second and a half before impact, a call to abort the landing. But its too late. The approach speed was 137 knots. And the question was whether or not we had the lowest speed that the crew achieved. I will tell you that the speed was significantly below 137 knots. And were not talking about a few knots. Reporter National Transportation safety board investigators recovered the cockpit voice and flight data recorders. The socalled black boxes. From the wreckage and sent them to washington overnight. Theyve also inspected the wreckage inside and out. The boeing 777 was ending a 10 1 2 hour flight from seoul, south korea, on its final approach to runway 28 left over San Francisco bay. At least one passenger sensed something was wrong. I was looking out the window because i was just looking. I could realize we were too low. Basically it sound like we were about to land in the water. Reporter witnesses said the planes tail hit the seawall beyond the end of the runway. The rest of the fuselage slammed down on the pavement, breaking off a piece of the landing gear. Officials say that when the tail broke off, two passengers, 16yearold girls from china, were thrown from the plane and killed. The crashs only fatalities. They were part of a middle school group coming for a summer camp. Once the plane came to rest, survivors began their evacuation. A scene described by the pilot of another flight. We see people and i think we should they need attention. Theyre alive and Walking Around. United 885 heavy, roger. You said people are Walking Around outside the airplane right now . Yes, some people look like theyre struggling. Roger, we have emergency responding. Reporter it seemed to come in too low and too slow. For whatever reason the pilot didnt or couldnt correct it. At some point the aircraft begins to settle and the pilot will immediately pick up on that. If hes very close to the runway, theres no time to recover. Reporter investigators still have to corroborate what they heard in these conversations. But this could be a big piece of the puzzle. Lets get more in seoul with reaction to the event. Hi, ross. Take a look at how Asian Airlines shares closed today. Down by close to 6 after losing as much as 10 at a point in the days trading. Of course, in reaction to that crash landing of its jetliner. Markets seem to have this consensus for now that this case will pose at least a shortterm risk for the airline and the stock price which was, by the way, already struggling this year because of other factors like the strengthening of the korean one and pickup in oil prices. A couple of local brokerages lowered their target prices this morning on the countrys number two carrier as well, citing the damage caused by Asian Airlines and notified the boards operator will be that said, will be more than 137 billion korean one. But, of course, there are some on the defensives like Morgan Stanley that said its tprematue at this point and investors need to take a slower approach. The damage to the reputation is real key, of course. Asiana on its part tried to dodge finger pointing to the fact the pilot was training into this model boeing 777, saying he is a very capable pilot and that hes had apple mple experience that job. In pyongyang other news making progress on opening the joint kaesong Industrial Zone. South korean Business Owners will visit the Industrial Park for inspection checks on wednesday and working level talks will resume later this week. The kaesong Industrial Zone was shut back in april. Tensions between the two neighbors hit a fever pitch. Protesters were out in force in cairo and alexandria last night. 42 dead and 322 injured after clashes between promorsi and antimorsi supporters turned violent. Joining us with the latest, youssef, whats happening right now . Reporter well, ross, the military is still on high alert. We saw tanks move about this part of the area as well. You mentioned the violence. 42 people kimmed according kil Health Officials. Most of that violence concentrated outside the Republican Guard bar ricks in cairo where it appears the army might have gotten involved. The army describes it in a statement as an attempted terrorist attack that killed one of its soldiers and appeared to have gotten quite violent. Were seeing already a response to what some have described as one of the few islamist parties of note in this transitional road map process. They have announced their withdrawal through their spokesperson on the verified twitter account. He said that decision came in light of what they described as the Republican Guard shootings and what ultimately led to the massacre. It is clear, ross, that this may lead as well to a delay in some of the cabinet announcements. Remember, we had two options for the position of Prime Minister and president. One was mohammed elbaradei. On the other hand, a locally well known figure and respected not so much internationally known, but still a man who has experience with investment and investors. That could be a very strong sign in which direction the army wants to take this country. At the moment tensions are just running very, very high. If islamists are feeling sidelined. They feel like theres a crackdown going on. You mentioned the egyptian central banker going to abu dahbi. Under Mohamed Morsi the situations was not very good. They had soured to a very, very bad extent. Now theyre opening a new page. Youre seeing an attempt to tap that potential for aid and assistance. The financial position clearly is going to be impacted by this. Ive seen reports suggesting its even worse than some thought. Reporter well, that would be a sign of that. Youre looking at foreign currency reserves. 33 billion before january 2011. That has dropped by more than half, ross, to just below 15 billion. Most of it is going to be in gold and sdrs in less than three months worth of imports. Those fell by another 1. 1 billion in june. That shows you the struggle to keep the system running. Because now it is really at its knees. The egyptian pound which the central bank has been trying to support by injecting dollars in the market, its starting to lose its grip as well despite some of the positive and encouraging sentiment we had before the weekend. We are still waiting for the stock market to open in the next 15 to 20 minutes or so to see how investors are taking this escalation in violence. Not just in cairo, but across the country in the sainai and alexandria and other parts of egypt. Thank you very much. Meanwhile, amidst lingering fears about middle east supply disruptions brent may test 110 a barrel this week according to cnbcs latest survey of oil market sentiment. To find out more head to our website, cnbc. Com. You can also follow us on twitter cnbcworld. Also on todays show well speak to will independence lead to brighter days . Also, Japanese Mobile operator softbank is back in focus as Credit Rating agency s p slashes its status to junk citing the multibillion acquisition of sprint next teel well speak to the International Chamber of commerce. The use trade talks kickoff today amidst allegations of spying. Whats at stake . Well head out to new york citys alcoa kicks off earning season. Well look at earnings. Look ahead with jpmorgans chief equity strategist at 11 30 ce terks. Plenty more to come on worldwide exchange. [ kitt ] you know whats impressive . A talking car. But ill tell you what impresses me. A talking train. This ge locomotive can tell you exactly wher