highly unlikely for china to be self-sufficient, so china will have to import a large quantity of foods from all over the world. >> reporter: last year's takeover of smithfield foods, the largest-ever chinese acquisition of an american company, was a significant part of the government's effort to acquire resources from outside its borders. smithfield c.e.o. larry pope is now an executive with the chinese firm. china consumes 50% of the world's pork? >> half of all the world's pork is eaten in that one country and growing, and growing steadily every two or three years. china's consumption demand grows by the whole size of the u.s. market. >> reporter: pope says smithfield is already gearing up to ship more pork to china. >> in many respects, this is carrying out the government's five-year plan, which is to improve the quality and the security of their food supply. >> reporter: chinese consumers view american brands, like smithfield pork, as safer than domestic products. after years of food scandals, they have become wary of chinese brands. >> the last couple of years, there has been a st

companies will have a path in china? china sees the success of this, are they more willing to let our companies play too? >> -- willing to let u.s. companies play as a result of this. i think -- you know, i think u.s. companies look at china. they look at india. they look at big markets. because here we have 318 million people and it is an easy economy, across every state. it is very difficult to do in the rest of the world country by country. but china and india are huge landscapes and it's been difficult for companies other than making investment in places to succeed there. so what are the big next landscapes you can go after? i think u.s. companies will continue to do what they are doing. i don't know that this is the wakeup call that everybody thinks. i think that u.s. companies did try very hard to find ways into china it's just very difficult to do. i don't know how it changes the landscape until alibaba starts making acquisitions. then the world changes a lot. and so it is going to be very interesting to see what

assive to say that was the old china, this is the new china. it argues that it's an inviting china, an open for business china. even throughout, it's never been quite open to all china. that china has never been, not then, not since, clearly not now. it remains an economic superpower that even now cannot grasp what it means to be an economic superpower. what it means to appreciate the workers that make you an economic superpower, what it means to attract capital and not chase off capital. recently china has been chasing off capital. china's hang seng index, abruptly selling off 2% this morning. just like they have been selling ali baba shares. they're not panicking but they because many fear the true colors of china are showing and they don't like what they're seeing. china not so much clashing with aga demonstrators as china's past clashing with itself. be rich or die trying, because the freedom to make money means the freedom of a government to comfortably embrace its citizens having money and making more money and wanting and doing the thing

industry, even in china's interior. in my opinion, the demand will keep growing 30% a year for more than three years. >> reporter: robot makers are going all out to take advantage of this opportunity. a japanese manufacturer in the factory in june last year. most of its robots are for the auto industry. their factory makes more than most plants worldwide. naturally the facility uses robots to make its robots. this machine is used to clean products. it uses dry ice and this helps speed up production. to meet china's growing appetite for robots, this factory has been stepping up manufacturing during the past year. it completed its expansion three months ahead of schedule and now it can produce 400 robots per month. on average, the plant now takes in 10% more orders than it had planned for. >> the chinese market is still very unpredictable. i am looking forward to seeing what kind of robots sell well here. i'm having a good time wondering what kind of factory would want this to become. >> reporter: cheap labor used to fuel

emissions are growing 4.2% in china. it will surpass the european union per capita for the first time ever. this according to the latest study. biggest hope for it. use declined client. the u.s. saw a nearly 3% rise in emissions in 2013. india saw a 5.1% rise. all of the few regions accounting for more than 2/3 of global emissions. 80% of the growth in global populations. not surprisingly, a coincidence, not. it shows the human race, that is us, we finally spewed into the atmosphere 2/3 of the carbon allowable in a the scenarios that scientists say will avoid reversible changes to the planet where we live. if pollution continues at this or rate, the limit will be reached in a 30 years. we will likely be around then if we do not breathe the air here. we are heading into the wrong direction and scientists say emissions must follow by 5% or more every year for many decades. to keep the world from warming more than 2 degree celsius. that is the limit before changes to climate kicks and. i hate to be flip it on a desk but i h

the thing i know for sure about china is that we'll never know china. it's too big, too diverse, too deep. there's simply not enough time. that's for me the joy of china, facing a learning curve that impossibly steep. even if i dedicated my life to learning about china i'd die mostly ignorant. that's exciting. that's too much, and it's changing so fast. ♪ china has a population of $1.3 billion people. and the number of them joining the explosive middle class demanding their share of all the good stuff, the clothes, cars, gas, fuel, it's the engine that might well drive the whole world. >> you like chinese food? >> very much, yes. >> what do you want? >> some good dumplings. >> the professor is an economist and current dean of the college of economics and management. like so many people you meet here, he's chinese but was educated in american universities and has taught at yale, duke and arizona state. >> so you forgive me, economics are not my area of expertise. i wall owe in ignorance. but china looks different every time i come. it's changing so, so

japan controls them but china and taiwan claim the islands. prime minister abe said the japan-china relationship is important and holding dialogue is necessary, especially when there are problems between them. he said japan would like to have summit talks with china without any conditions. japan-south korea relationship is not going well either because of mainly historical issues. as we heard, abe said he's hoping to have summit talks with south korea on the sidelines of apec meeting. >> masayo, japan's relations with russia is another focal issue. what did the prime minister say about that? >> well, japan is in a very difficult position in terms of relations with russia right now. the country has to work with g-7 member countries to put pressure on russia because of ukraine. but at the same time, japan needs to deepen relations with the country in order to solve the issue of the russian islands. we call it the northern territories. japan maintains the islands are an inherent part of japan's territory and russia illegally occupied them after w

china. joining us for the conversation, robert daley, current director of the wilson centers on china and the u.s. and hope, of john hop kings university. and isaac fish, editor for foreign policy magazine. professor, let me start with you. did the youth on the streets catch the hong kong authorities by surprise with their resistance? should they have been more prepared for this. >> i think that beijing and the hong kong government underestimate the anger and the persistence of the people of hong kong, particularly the young people. when they made a decision awhile ago that there will be no universal suffrage in the election, it's a moment in hong kong history. because hong kong, there has been quite a movement in hong kong, but the movement has been operating on the assumption that hong kong and beijing will honor the promise that they will have separation and real autonomy. and now this promise is broken, so i think it's a moment of awakening among the hong kong people this they need to re

the one thing i know for sure about china is i will never know china. it's too big, too old, too diverse, too deep. there's simply not enough time. that's for me, the joy of china. facing a learning curve that impossibly steep. the certain knowledge that even if i dedicated my life to learning about china, i'd die mostly ignorant. that's exciting. it's too much. and it's changing. so fast. china has a population of around $1.3 billion people, and the number of them who are joining an explosive middle class demanding their share of all that good stuff, infrastructure, the clothes, the cars, the gas, the fuel, is well, it's the engine that might well drive the whole world. very much, yes. >> okay, what do you want? >> order, of course, some good dumplings. the professor is an economist and the current dean of the college of economics and management that shanghai university. like so many people you meet here, he's chinese, but was educated in american universities and taught at yale, duke, and arizona state. forgive me, economics are not my area of experti

are you seeing that in china? >> yes, they own 80% of consumer shopping in china. that number is expected to grow by 2017. the reasons they are doing so well is because we take a look at china and i have spent many years there -- it is fragmented. if you want to buy a tv or a laptop, there are thousands of places to go to. is a centralibaba portal where you can find what you need quickly and instantly. you don't have to navigate the ground. you have to navigate the web. welleason it may not do as as in the u.s. is because in the u.s., it's really straightforward to navigate. if you want to buy a laptop or computer or tv, go to best buy or others or go straight online. in china, you only have limited options which is why they are doing really well. >> is the mobile platform so important because that is the first computing that many people in china will ever do? >> absolutely. if you take a look at those in second and third tier cities, they have spent time in places that you have never heard of and most people there -- this is a -- savvy city, they only own a smart

of china, the web tv of china, and the ebay of china. i was working in beijing for an advertising and pr agency. when a friend told me that a chinese company was looking for a senior manager to join its international marketing team, i became intrigued and flew to shanghai to attend a customer event. as i walked in, i discovered the website members were mobbing the staff. the attendees were mostly local manufacturers making products for export. umbrellas, plastic tubing, ball bearings, and just about any widget you can imagine. they had a lot of questions for the alibaba staff, and were eager to provide feedback as well. >> [speaking chinese dialect] >> the event was not a slick production, but there was an innocence that appealed to me. and i was also happy to see that the foreigners and locals mixed well, even if it meant having to learn karaoke. ♪ and most important, i got to know jack and thought he was a boss i could work for. yes, he seemed a bit crazy. but at least it seemed he was enjoying the ride. so, in march, 2000, i made my

their ambitions will not be limited only to china. i think over the next 10 years globalization will be a huge thing. >> what you expect jack to do and alibaba to do with the money that they make on the ipo? it has been suggested that they could buy yahoo! >> on the balance sheet, they have a plethora of choices. what they have done over the last several months has been interesting. people would argue that it is not focused, but i would disagree. i think they have a plan. that want to be much bigger and china, i know that is hard to imagine. right now they are an e-commerce company with a financial services upside, but in china they could be any combination of the social networking or other businesses. and the rest of the world, only u.s. and china have the system that has the ability to expand beyond their own boundaries to tackle other opportunities outside of these markets. >> what about alibaba buying yahoo!? is that plausible? >> i think they will have a choice of things to do and will focus on emerging areas, whether in digital

the first is about china. china's government as a major reason for this slowing down gdp is the economic transformation which prefers to decrease the percentage of investment and increase the percentage of. >> the rebalancing. >> based on my own personal experience i think a lot of times people use more and more private debt to consume. will the control of the private debt have an adverse impact on the economic transformation? >> first of all will you join our study team? secondly i think you're exactly right. if you are rebalancing and asking consumers to take a bigger share of the economy one of the ways they do that is through debt. right now as a slideshow private debt-to-gdp has grown 60% in five years and is almost to 210% so yeah absolutely. it's the smaller part of it but it's part of it. >> do you think this is more important than the economic transformation? >> i think if you are looking -- rebalancing needs to occur. i think it's a harder challenge. we were just talking about this today. just to say

china's economic growth has slowed and investment from japan has declined. the xi administration wants to receive investment from japan and to boost its economy. but sino/japanese relations have been unstable due to domestic reasons on both sides. it's possible that china will change its attitude if a domestic political struggle occurs. so it is uncertain if the two countries can maintain a good relationship after the apec meeting in the fall. >>> military units with south >>> time now for a check of the weather with mai shoji. people in western japan are dealing with torrential rain, tens of thousands of residents in the city of kyoto have had to evacuate their homes, what's the latest? >> that's right. good morning, katherine. we are still talking about the very heavy rain, it's a slow moving frontal system that is now tracking across japan. it's dropped 100 to 200 millimeters of rain across japan. let's show you the pictures coming out from this situation. over 30,000 people have been advised to evacuate kyoto prefecture due to the threat of rising floodw

have could this affect china's economy is to mark -- how could this affect china's economy? i know a few employees who sold early and are kicking themselves right now but how many employees do hold shares and how much do they have? backs we know it is over 5000. probably as large as 6000 and the total amount is $8 billion. that is a lot of cash. >> the structure of dealing out equity, is that different from companies like facebook and google that we are more familiar with? >> most have not done what alibaba did. they took a page out of the playbook of western companies to employees ando even past employees. that is with this group came from. >> what does it mean for these employees? we know that many people in china are getting richer and there is a rising middle class but what impact do you see this having on the chinese economy? of --y will be a lot there will be a lot of mai tais consumed. people who do vested and started startups. a lot of the people once they have finished will think about sports cars and luxury items and some of this will go back into startups. >> we a

is a law in china. these are the basic principles. >> i felt it was unfair that he had to defend yahoo!'s previous actions but, while apple may not have agreed with his position, it offered a clear and consistent response based on his own beliefs. >> good morning and welcome to this hearing on the internet in china. >> yahoo!, meanwhile, continue to muddle through the issue and was ultimately call to congress to defend its actions. our besthina, we did to move beyond the controversy and call the strategy meeting to develop a plan. gave a typically inspiring speech but i felt he underestimated the complexity of building a successful search engine, and we left the meeting without a clear vision of how we would turn our newly acquired company and to china's leading search engine. for the next year, china -- from prhina suffered distractions and squabbles that threatened to hang a cloud over the entire company. unfortunately, things were looking much brighter on the other side of our company. ♪ >> [speaki

beyond hong kong into mainland china. what's the likely scenario if that happens? >> well, i don't think that will happen because china will do whatever it takes to prevent that. it will do the least interventions possible. it would like to make no interventions and allow the hong kong leadership to do everything in their control. but they will not allow, in my opinion, this type of demonstrations to occur anywhere in china. you see a censorship of social media regarding anything having to do with protests. you can criticize the central leadership and even personally. but you talk about getting a crowd together in any area, and that will be censored. china will do whatever it takes to prevent it. i don't think anybody foresees that it will require that type of intervention by china. >> but less than 24 hours ago, the riot liye yot police were p back. how likely do you think it is that we will see them on the streets of hong kong trying to control these protests. hundreds of thousands of people are out there, wall to wall

and i type, "china." no "china." no data. came back to hangzhou with one dollar in my pocket, scared, worried. and i came back and i said, "i want to do something called internet." >> logan: his first two ventures failed. four years later, he convinced some friends and former students, most of whom had never used the internet, to invest in him and his vision for alibaba. with just over $50,000 in seed money, alibaba was born. today, the company is valued at $231 billion, and is headquartered in hangzhou on a sprawling state-of-the-art campus that rivals any in silicon valley. ma's personal fortune makes him the richest man in china and one of the most influential. it's impossible to run a business on alibaba's scale without official blessing. you were quoted saying, "when you have millions of small companies using your site, and billions of dollars in transactions every day, the government cares." so, what do they care about? >> ma: they care that i can stabilize the country. i tell the government, if people have no jobs, you

china may step in to support the economy. china, gains led by the automakers. china rose out the policy on electric cars. defense related shares. report out off "the shanghai chinaties news," that will announce this blueprint, restructuring plan of military research unit. elsewhere, it looks a good so far. i will be back. >> writer to our top story. >> right to our top story. bloomberg news, asia government editor david tweed on the streets. promising more protests. any idea when we would be getting them? >> they have not actually said it when it will do the protests but we know we will be having the protests at least 10,000 people. that is a targeted number from occupied central. on to the streets in central hong kong and the idea is to bring central hong kong to an absolute stop. ok, what are the contingency plans that businesses are taking? >> we are beginning to see some of those. around under the hsbc building, it is an iconic building. use by the occupy wall street protesters a couple of months ago. what are they are doing is building scaffolding on the i

china is a host. japan is a guest. so host should treat guest very well spop w well. so why not korea-japan dialogue. and if japan could send the former prime minister to beijing to arrange this foreign ministerial meeting and perhaps the summit meeting, i think japan can also send special envoy to korea so that we can begin our dialogue. now i would like to take this opportunity to state my views to prime minister abe and the abe government in japan. japan is now trying to become a normal state, which means that from the perspective of the japanese leaders, japan is not a full state. something has to be changed in order for japan to become a normal state. and in my view, for japan to become a normal state, the first thing that it has to do is to come to terms with its own history, squarely face the past history. if it is a wrong history, you should learn lessons from it. if it is a wrong history, you should regret and apologize. if it is a wrong history, you should make sure that the same mistakes wi

perhaps china. i'm guessing, jim. >> it's all china. it's some statements out of china saying, listen, we don't need to stimulate as much. we're willing to accept decline in the growth. >> growth. 7% now, some saying in gdp. keeps coming down. all right. our road map this morning and it starts not with china but right back here in the u.s. with the iphone. the official initial sales numbers just out. guess what? new record, tim cook says they could have done better. >>> alibaba setting records. biggest ipo in the world not just u.s., we knew that would happen friday. what did push it over the line. it wouldn't be monday without a couple of deals. we've got two comes from overseas. we'll break them down for you. and a lot of talk, as well, speaking of m&a about hewlett-packard and emc. and eve dell. a lot more on hewlett-packard emc, what emc is thinking about right now. >> very good. it's so opaque. looks like it's -- keeps being floated and nothing happens. but i have learned from you that, when it's being floated, eventually somebody

in 2003 and 2004 and the managing director of china market research group focused on china. i asked by -- what do they see as their challenges? it is what your buddies challenges are. there has not been a company that has been around for 100 years that has been able to reinvent itself. there have been a couple that have done it successfully. apple has done it and it has done a nice transition. time will tell whether or not they get disrupted after they spent all their time disrupting other people. once you get outside of china and he is dealing in a more competitive market particularly if he focuses on the u.s. or europe he will come up against people who -- whose goal is to make sure he does not win. they are very smart and they have been very successful. >> one of the most tangible descriptions is that it is a little bit amazon and paypal with a dash of google. would you agree with that and do you think that they can take on these companies on a global scale? >> when they got started that would be apt. it was a copycat of those companies. it has emerged as innovative in it

. -- arerevious new phone they not in china because it is not approved in china yet or because of supply issues? tweeting to you at two in the morning saying my hopes and dreams were dashed. run andd get up for a by the time i got back my phone was already filled out. they had anticipation that demand was going to be so great. people there were more coming off of subsidized phones and able to upgrade than ever before. the potential market was greater than ever before. >> if they really wanted to because they meet the demands? >> at the end of the day they want to sell as many of these phones as quickly as possible. if they could have sold more they probably would have. >> the bigger screen, the bigger battery, the newer ship -- newer chip -- they did not have forever to do this. i always thought the marketing gimmick with the lines in front of the stores were a total joke. a >> they know how many phones they can make. they know how to get them to the store that morning. the fact they cannot manage the line is baloney. >> i think it shows the demand. apple gave away the new u2 album for f

think it has never been seen before in china. filling --ou are familiar with the area, what does it mean to have so much wealth in one concentrated location? will that change the area? >> it is not a poor part of china. it is already pretty well off. this is a shock. this is a very happy place today. >> what does mean for startups? he goes you hope when into other companies in the same way that people in silicon valley might want to invest in other businesses. is that same spirit in the chinese people? do they want to invest in up and comers? think that would be the ideal that would come for china for a lot of these people who find themselves with such liquidity shock. is a most enterprising areas in china. this is a great thing. i think they have the talent and they see that it can be done and now they have some capital. i think these are good things in terms of putting capital to where the talent is. charles lee, thank you so much for your commentary throughout the day. i will be back with cory johnson after this break. larry e

about 600 million people in china that are using the internet. 1.3 billion people in china. that could be using the internet. growth potential and it has become a country that has surged over 15 years ali baba has been in existence. they have been able to ride that increase in consumer activity online as the consumer population in china is used to shopping online much more so likeshopping in a retailer in the u.s. that transition came naturally in china. it was a much quicker transition in that respect. alibaba was there the beginning and has been able to capitalize the hallway. >> all right, leslie picker joining me from the floor of the new york stock exchange. thanks so much. preview of the g 20 meeting. we will look at the agenda as the leaders gather in australia. "bottom line" continues in just a moment. ♪ outbreak could spread to hundreds of thousands more people by the end of january. this is according to an estimate by the u.s. center for disease control and prevention. at worst-case scenario 550,000 or more infections. the projection assumes no additional aid or

china is out there. china is a threat to both parties. that is going to have a nuclear deterrent. there is no question about it in the nuclear context. >> this is political talk already. the upturn the -- the opportunistic point is that neither russia nor america's feeling from danger -- feeling of danger from china is objective in nature. the cases are very subjective and not by the objective threat of china but by how we perceive china. that makes the situation looks better. >> in terms of funny stories, when we started writing this paper we were hammered for being too pessimistic. increasingly we are hammered for being too optimistic about the nature of the relationship. even if trust is nonexistent. the myra memories conversations. what i still don't quite understand is if it was possible to achieve another arms-control agreement between russia and the united states, if we were able to obtain that we have, wouldn't that still be preferential to the proposal you put forth? or are you trying to say in fact -- i squirmed when i heard you say this -- are you saying that doing your

antitrust in china is really a very new thing. one of the things that you are seeing now is that antitrust agencies now need to take some time to learn antitrust and we -- beep up their staff and figure out what they are doing. relative to how it is developed in other parts of the world, this is actually fairly quick, for china to take the antitrust law seriously and be using it so aggressively. if anything, it is surprising that they are doing this as early as they are. have been ou vehemently disagreeing. what do you have to say? >> this is not a system of laws. the problem here is that state enterprises have become very powerful politically inside the chinese political system and they are undercutting foreign business. this has been going on for quite some time. also you have political disstress among senior leaders fighting among each other and you can't compromise with foreigners. this is the closing of china from the rest of the world. we have seen it across so many different platforms. i think that this is something fundame

it's really about how the events of 1989 changed china and how china then changed the events of 1989 as it rewrote its own history. it's about amnesia which one famous chinese author called a state-sponsored support. my book is about those people who refuse to play in the state-sponsored sport, those who refuse to forget what happened. my story started with one woman, a mother and i remember her by chance. i was working in beijing as a correspondent and i was sent to chung on a completely different story. i had just met her by chance and her name is -- and we met in this shiny new apartment block in this brand-new part of the city. she was almost like a throwback from another time. she was in her 60s. she was a very small woman. she was like an old-school dispossessed peasant farmer shuffling around in flip-flops smelling of garlic with an incredibly strong accent. when she began talking i discovered this was a uniquely determined woman and she was the one who put me on a path towards this book because she told me how she had lost her 17-year-old son on june 6, 1989 in chung. she sai

a lot china has going for it. it will be fairly soon china's gdp surpasses that of the united states, that would be a great moment of psychological crisis reor many americans, i do not care when that happens or that that will happen. i think we retain a deep and lasting competitive advantage and there's something i'm talking about the we are a resilient network bottom of society, change gets made in the spirit of i don't see anybody e ape solving this so i will stp up and sold it and no one is telling me not to and better to ask forgiveness than permission and zach ethos which permeates american civic ling the e in was you don't notice if you are just paying attention to the beltway and what is going on in d.c. is a reason for our relative adaptability and resilience. the other goes back to what we were descrntriing earlier whichs our open hybridizing intermingled intermixed cutenurl operating system and i boil it down this way. our vantage over china or any place in the world is simply this. america makes chinese

there is no way china is going to back down on its claims or the south china sea or the east china sea, and that is one of the big positives of instability. when china is to go shooting, they're saying, let's talk, but not that we will compromise in any way -- and china says, let's talk, they're not saying that will compromise in any way. >> they expect china and japan to go to war in the near future or at some point. that is pretty stunning given the top diplomats will be discussing ways to bring down the temperature here. this extreme nationalism are talking about, what are the true economic cost? have we seen a cost to the economies of japan or china? >> certainly to japan, it is taken a bit of a hit. the companies have an less welcome. the calculations the chinese leaders are making, it is not about trade with japan or even korea, it is about what kind of political environment do they need in china to drive the kind of changes there pushing for? about thenalism is domestic position of the communist party. they're making a lot of big changes and maybe some top coverage. >> but it se

to china in 1997. since then, it has had a special status within china that allows it freedoms like public protest or a capitalistic economy that are not allowed elsewhere in the country. sean hawkins takes a look at the terms of that agreement. >> the union jack or place by the chinese flag after over 150 years under british rule. in july, 1997, hong kong was formally -- formally handed over to beijing. and so, hong kong became chinese territory. but with a difference. kong missednist beijing promised to maintain the capitalist economy. unlike in mainland china pro-democracy demonstrations here are tolerated. and the tiananmen square massacre can be openly commemorated. in 2007, china promised that hong kong residents could vote directly for their territories leader in the 2017 election, a print this -- a position previously appointed by beijing officials. >> the timetable for universal suffrage has been set. hong kong is entering a most important chapter in its constitutional history. >> but now afte

china is a changed country since then as well. but to be honest, speak to most people here, they're not expecting a crackdown in the immediate future, and the chief executive suggests that people will get sick of this protest, that when they realize that it is causing economic harm to hong kong they will start to turn against the protesters. so that does suggest that this could go on for a little while longer before there is any move made to try to re-claim the streets. >> all right. our andrew stevens reporting there live from the streets of hong kong. many thanks to you as always. >>> among the big questions now is whether china will back down from its position with the whole world watching. sophie richardson is the china director at human rights watch. we asked her how this may play out. >> the chinese government will absolutely try to blame economic damage or unrest on the protesters and will try to, i think, mobilize others, possibly, the international business community, you know, to criticize what's happened. the chinese go

>> this is not a poor part of china. it is pretty well off but this is a shock in terms of stimulus to the local economy i am sure. it is very happy place today. some people in silicon valley might investigate other businesses. there's that same spirit. >> these people suddenly find themselves with the footage he shot. it is known as one of the most enterprising areas in china as well as location in the south. they have the talent and it can be done. these are good things in terms of putting capital to where the talent is. >> thanks for your commentary throughout the day. i will be back with you after this quick rate. -- break. larry ellison has stepped down as the ceo of oracle but does that mean he will be any less involved in the operations of the company he founded? that is next on "bloomberg west." ♪ >> welcome back. i am emily chang. we want to follow-up on a story. on august 12 we spoke with john mcafee about his life after fleeing belize where he is wanted for questioning in connection of the murder of another

apple has a new record number of iphones without selling them in china. when will they hit china? ♪ >> you are watching "bloomberg west." i am emily chang. turning to alibaba. a 25 billion dollar ipo was the largest ever in the world. shares surged 38%. today, the stock closed down slightly. so, what are the risks associated with alibaba's ipo? joining me now is cory johnson. >> it was pretty flat. they do not want this to collapse on the second day. they were active. we know that it is easier for them to do that. it is interesting. there is a price that makes things different for alibaba. it places a different emphasis. $89 is a different matter. it means that alibaba is an expensive stock now. just my opinion. >> at $68 a share, it was below its peers. >> exactly. it is a question of how fast it is growing. right now, it is valued at 55 times the operating profit and the operating profit is growing 52 times. the price to earnings growth is equal. the problem is, the growth rate, while it was 62 times in the last year, it has been coming down and the growth has slowed dramatica

in hong kong, like china mobile or china telecom corp. or the nine -- non-chinese companies. $.10 or gamings casinos, and you name it, so the group has really widened. >> ok, what about the listed premierwe have got shares. does this affect that in any way? premium, for the 76 newly listed stocks, covered by bloomberg intelligence, it is for the past three months. h shares,e material they still have a premium. 10% is accounted for. gives opportunity. i think this will be for the consideration for investors. >> thanks for that, from our bloomberg intelligence. ?p next, what lies beneath plastic particles are finding their way into our food chain. a special report from sydney. a special report when we continue. ♪ ♪ >> let's just check on some of the stories making headlines around the world, and the thai prime minister has named his cabinet. officials nowy control many areas, including justice, and there is a civilian that is part of the government installed after the last two in 2006. the general was confirmed as premised her last week

pmi will be important out of china. the china data has been consistent with a little bit of weakness. some possible destabilization. a lot of the many stimulus has worn off. effectalysts think the is fading. might need to. whether they are going to is a different story. the finance minister said don't expect any more stimulus from us. that is not what you will get. >> they will not go for a large package. some people will describe it as stealth stimulus. they do not want the economy to weaken too much, but the reason they are not so worried is you view look at the labor market -- if you look at the labor market, they are no longer having to create so many jobs. really -- they can actually manage with a lower growth rate. why not cut rates? they have a lot of firepower. good question. if you look at the growth of social -- total social finance. it is coming down. 15% year on year. not so far ahead of nominal gdp. the rates are rather tight. factthink it reflects the that the monetary transmission mechanism in china. cred

number within china? are we fixated on it whilst overlooking the structural progress that has been made in the country? >> we are fixated on the headline growth. we are using the previous decade to judge the next decade, which is wrong. we should get used to lower growth rates in china. the old model of growth in china, which was driven by investment and exports, is dead. what we need to see in china is consumption picking up and service becoming a much more important driver of growth. it is happening as we speak. we are underestimating the true extent of the rebalancing already taking place in china. the big problem in the global .conomy is inadequate demand the big hope is that china is trying to solve this, trying to create its own demand. every company, there will be a slowdown in the chinese economy. this is a cost worth paying. >> we will pick this conversation up when we return. stay with us. we will take a short break. ♪ >> welcome back. back with us, standard chartered head of research. we prom

but do most of their business in china. a lot of index investors are frustrated that they've been left out on some of the most exciting things going on in china, like elsewhere in the world, people doing more of their buying online, and the mobile revolution of things like that. alibaba and a couple of other u.s. listed chinese internet companies are the best way to play this. >> tell me about the red flags in this company, and there are some. there are some involved in financing. it's not run by the government of china . there is someone on the board who is a son of a communist party member, they incorporated in the cayman islands. they were listed in new york because it's less restrictive than hong kong. any of this worry you or is this business being done. >> there are investors who say whatever the exciting opportunities are presented with alibaba there are risks they don't know how to model or understand. as mentioned before alibaba--what you're buying is stock in an offshore holding company. that's ti typical in a lot

china and taiwan claim them. japan coast guard officials say one of their aircraft spotted the vessel friday morning. it was dragging what appeared to be a wire. the area in question is about 170 kilometers north of kuba island in the senkaku chain. coast guard officials radioed the vessel to stop and said that unauthorized research in the area was not allowed. the chinese crew did not respond. the coast guard has sent a vessel to monitor the ship's activities. it's the second time this month a chinese ship has engaged in similar activities off the senkaku islands. >>> iraq's prime minister awarning that the militant group may have tried to carry out attacks on western soil. they uncovered a plan that targets subway systems in the united states and france. >> his officers learned of the plan from a militant captured in iraq. a u.n. security council spokesperson says white house officials have not confirmed any such plans and said her officials need to review information from iraq before making further determinati

china does not make american chinese. china does not want to, is not interested in does not know how to. it not in ircivilizational operating system to figure out how to take immigrants and welcome them and fuse enemy and help them, empower them to change the very meaning and the content of chinese-ness, are there more people from the rest of the world coming to china? you bet. working in china? yes. making now chine? sure. but changing the idea and the content of chinese-necessary? no. that's the point here. that is the very essence of the american idea, and i think that, plus this network local resilient bottom-up citizenship, middle-out citizenship, gives me hope. >> host: i will say from experience, better to asking forgiveness than permission is embraced in china. >> guest: true enough. >> host: could you see a citizen university existing in china. >> guest: what a great question. yes, i could, but not today. not so easily today. >> host: what would have to happen? >> guest: i think this is -- thick there are pockets

and he stressed the importance of friendship with china. >> translator: japan and china share responsibility for the region's peace and safety. the world is paying attention to our relations. >> suga said prime minister abe has always maintained that the door for dialogue is open. he said it is important that leaders of the two countries meet and talk, even when they have contentious issues. japanese officials are hoping for a meeting between abe and xi on the sidelines of the asia pacific economic cooperation summit in beijing in november. and the chinese president gave japan a mixed message. he took hard and soft lines in a speech on relations. an expert on china explains why. >> translator: president xi appealed to people in china saying the government will not bend to japan. and they will continue criticizing japan over historical issues. the public supports this attitude. but this alone could result in sending a wrong message to japan that china doesn't want to promote relations with japan. that is why xi mentioned friendship with japan in his speech. the two messages seem contradicto c

meanwhile, there's an area of heavy rain and strong winds in northeastern china. but behind it very cold air for. that will lower temperatures, ulan bator your high is going to be only 9 degrees on your saturday with a low of only 1 degree, and cooler conditions are expected on sunday, only 5 for the high with low minus 5 degrees. you may see the snow flurries on this day. and cold air will affect northeastern china, such as hardbin and hokkaido as we go into next week. across the americas, wet and windy conditions are still happening over the west, such as seattle and vancouver. and ahead of it another round of clouds. this is the low pressure system in front, and this is the severe weathermaker providing a risk of hail, thunderstorms, and heavy rainfall from the northern rockies down towards the four corners region, and desert southwest. now, looking quite clear for the rest of the eastern u.s., and rainy weather has moved away from the northeastern u.s., such as new york city, as well as washington, d.c. however, rain will continue to pound the florida peninsul

china is the answer to your question, rish, the china figures disappointing. china, hong kong, and australia. >> the full-year growth target is under threat. john was just mentioning, pointing to a continued slowdown. an economist is in beijing. it is pretty weak. could it be seasonal? or does it run deeper than that? >> no, i do not think this is seasonal, rish. we have already had signs that pmi numbers,eak signaling that the factory sector had slowed down a bit, that the industrial output dropping 6.9% year on year, the slowest since the financial crisis, was a real surprise pre-and electricity output -- was a real surprise. electricity output is seen as a real gauge of what is going on, and it actually contracted year on year, a shocking number, and what it seems to the signal is -stimulus, which the government issued, is slowing. and this is slipping out of reach. is, they did something rather strange. >> and they do not normally do they? they put out a statement. that is sending out another message, isn't it? china's government is fairly tightlipped and

they raided microsoft's china offices in july. the ceo will be traveling to china later this month. a microsoft spokesperson says that the trip was planned before the chinese government investigation began and that they are committed to applying with -- comply with laws and addressing the questions and concerns. so, what could the anti-monopoly probe mean for the microsoft business in asia? from new york we have the author of "the coming collapse of china." we also have david evans, by skype, from boston, who teaches antitrust laws at the university of chicago. david, i will start with you. being challenging towards u.s. businesses is one thing, but raiding the offices of microsoft is another. how serious is this? >> for microsoft it is pretty serious when you have one of the chinese anti-monopoly agencies launching a significant investigation like this. certainly it is something that if i were running microsoft i would take very seriously indeed. >> what, exactly, is the chinese government so upset about? >> it is not clear. one of the difficulties with the investigations taking pl

antitrust in china is a new thing. one of the things that you're saying now is they had to take some time to learn and we got there staff and figure out what they are doing. antitrust isto how quickped this is fairly for china to take the antitrust law seriously and to be using it progressively. if anything is surprising that they are doing this as early as they are. vehemently been disagreeing. what do you have to say? >> law is not important. this is not a system of laws. the problem is that state enterprises have become very powerful lyrically inside the chinese political system and they're undercutting foreign business. this has been going on for quite some time. you have political distress among senior leaders and you cannot compromise with foreigners. this is a closing of china from the rest of the world. we see it across the many different platforms and i think this is something fundamental. this is not just an issue with the antimonopoly law. >> do you think it is that serious, it is that fundamental? >> i do n

you can check web sides like blacked in china to see what sites are blocked in mainland china. outside of mainland china, protesters in hong kong have not reported censorship of social immediamedia media. but say cellular internet connections are moving slowly. many have turned to the fire chat app, which doesn't need an internet connection. it allows you to send text messages and photos. but uses a combination of bluetooth and wi-fi to send messages. the company says it was downloaded more than 100,000 times in hong kong alone, between sunday and monday. samuel burke, cnn, new york. >> censored or not, you have been watching cnn's special coverage. we appreciate it. i'm errol barnett. >> and rosemary church. >> if you are watching in the u.s., stay tuned. "early start" begins after this break. enjoy your day. >>> explosive new information about the armed white house intruder. just how far he made it inside the president's home before he was stopped. this as the head of the secret service faces tough questions on capitol hill. is he able to keep the president safe? >>> isis fig