imports the china and over the south china sea. we have seen the offshore yuan versus the dollar trade lower following these tweets, and the question is whether this is more empty rhetoric from donald trump or it confirms he will be taking a more confrontational line with china. >> very much the word out of beijing is that he is not president yet, and perhaps he is being badly advised. they are doing everything they can right now. >> america's four-decade one china policy may be put to the test with president-elect donald trump, saying no one can tell him who to talk to. this comes after the uproar after his phone call with the president of taiwan. he says his attitude will depend on securing better trade deals with beijing, and the one china policy he says may be china's policy, but not america's, unless he can make a deal. what is the buzz on the ground in beijing as to how china is likely going to react here? >> there has been no official comment so far, but we have had an indication from the state media, with the global times d

and china. it would improve relations. >> as sun li points out china town evolved into unique community. >> talk about grand avenue. >> this part is the most picturesque and visited by the community. it was built by the people who survived the earthquake and wanted to reinevent china town. >> you have the ideal chinese american family living in the public housing. so we have a happy endsing that ends of this hundred years of chinese american history where you have healthy chinese families living in china town. >> that was as good as it was going to get at that time, right. >> absolutely. >> soon china town would be in need of a ren na -- renaissa . >>> new award-winning restaurant is in the heart of china town. much needed renaissance of -- >> they both were it was time for a change. but having a conversation of how it should change or what should change about it to bring it into the next it's next life. for me this is about getting the conversation started about, about what products we believe

what he has heard to say about the one china , accusing china building fortresses in the south china sea and that china should not be doing that, so he is constantly pushing. but remember, he is the president-elect, not the president. china is continuing to be muted and its response to this controlling from trump. -- controlling from trump. the real question is what will be policy after he takes presidency. we're just getting a breaking news story from malaysia, the malaysian ringgit has the climbed to the lowest level since the 1998 asian financial crisis, dollar strength playing out here. dollar worth of the highest since the 1998 financial crisis, the ringgit the lowest since then as well, quite something. right, let's move on and have a check of the business flash headlines. airbus has suffered a blow to program, iran380 dropping the plane from its fleet upgrade. tehran reduced its order in a revised contract the superjumbo. airbus has already cut production as demand dwindles. the only carrier to give the aircraft a major role in its fleet. ukraine is to nationalize its biggest

in china. and even though trade is controversial, i think there is a consensus that investment is basically good. it is job creating, that, if president-elect trump is , he would say yes. investment creates jobs. think it is a reasonable theory to come up with that president-elect trump will president obama could not conclude, the bilateral investment treaty? that it will look to a business person as a little hesitant through and job creating? and that it would be a way to kind of lay a constructive foundation at the beginning of an administration? because they were this close to getting it done that they couldn't get it done. is that something that you think may be in the cards? sec. albright: not if that tweet t he you read is what i thinks. they would have to be a number of adjustments on tariffs and a number of different ways of looking at it. and the question is, whether in a negotiation on a bilateral treaty -- bilateral investment treaty -- for: so china would open sectors to u.s. invest

has leverage with china right now, you know, china desperately needs the u.s. economy to keep its growth rates up and its middle class growing and trump is going to use that leverage. >> and mike, josh earnest didn't spell out, i don't think he could spell out the progress that supposedly we've made with china but trump spelled out in another tweet some of the problems we have had with china, he says did china ask us if it was okay to devalue their currency making it hard for our companies to compete, heavily tax our products going into their country, the u.s. doesn't tax them or to build a massive military complex in the middle of the south china sea? i don't think so. >> well, i think what china probably was most upset about was donald trump's indiscretion, but as china and the rest of the world are learning is that the president elect speaks his mind. how refreshing is that, david? someone that tells the truth. and the people that are concerned about his behavior, they are the same people who said that when he ran he would never get the republican nomination

china was diplomatic, but what did china say? >> reporter: alison, they did not illicit response to the tweets. the minister for foreign affairs stopped by saying reaffirming the bilateral relationship with the u.s. and china, and under scoring what he was calling the mutual trade benefits the two countries enjoy as a result of the relationship. he went on to say that china is not in the habit of speculating the actions of president-elect trump or his transition team. he went on to say that china doesn't comment on the personalities or styles of foreign politicians. instead, he said china comments on policy. that begs the question, what is the policy and will the chinese and u.s. policy change? there was a phone call with the taiwan president that broke protocol which was met with concern in beijing. the tweets adding to the concern. we know that trump took a hard line against beijing on the campaign trail. the question here in china is whether this is just tough talk that appeals to president-elect trump's base or if it is a sig

we trump: i do not see why need to be bound by the one-china policy unless we make a deal with china. they are taxing us heavy at the borders when we do not text them. -- we are mess of building massive fortress in the middle of the south china sea. >> trump already angered china when he took a congratulatory call from taiwan's president. he is the first u.s. leader to officially talk to at taiwanese leader in four decades. genie: the champions league is coming up in february. we have found out who will be playing whom in the final 16. the big games to watch our monaco versus massachusetts city. and for the other fans out there, pfg versus arsenal on a. it is december. christmas is coming to while santa claus may be almost sameness -- most famous for flying through the skies with addedindeer, he has diving to his skill set. underwater santa is a biologist at the guadalajara zoo in mexico. he wanted to give them and their visitors a different take on yuletide fun. he will do that throughout the rest of december. time now for a business news. we want to show you who has been in the fish

china relations? >> as part of the shanghai communique, so of the clear advantages and obligations obligations, i will not separate my views from the shanghai communique from established procedure. also, at this moment, uh call reaction of the of leadership of the determination to see if a dialogue can be developed. but it is no question that the policy of opening to china is based on the premise. >> does this excepting a call when he is not yet president, i wanted to argue with prohibition it is about official contact and since he is president-elect and not yet president that is not official contact? no? >> that is a good way to describe it. [laughter] >> cents i look to avoid confrontation, a but i do recall pdf running into a deputy assistant secretary of state because i worked with the state department with the prohibition days said you are not supposed to be here he said i have been named but i've not taken officer lance nonofficial. so there is precedent for that but after that turmoil the presi

>> well, with china -- china's claims are basically the entire china sea, they are their waters because of islands and the island ownerships are in dispute and need to be determined by rule of law by the people have countries that have conflicting claims. china has acted unilaterally and has caused a very dangerous situation. we strongly disagree of how china has pursued this issue. it's not only the waters are claiming, the air is exclusive to them. we do not recognize that. the international community does not recognize that. now, we don't know exactly where this vehicle was -- neil: right. >> if it were in international waters this is an extremely dangerous act by china. neil: it follows other provocative actions, just yesterday off the coast of taiwan following on actions they took last week when the leader headphoned to congratulate trump and they responded by a show of force off the coast of taiwan, tripling up and quadrupling up with russian military aircraft they had purchased. where is this going? what does your gut tell you? >> well, clearly what we are trying to do is get the

however in china it is based on the recognition. recognition of the beijing, as china as china. a one china policy. you recognize china as the seat at the u.n. security council. you recognize china beijing as the seat of government of china and taiwan something different. to have the us head of state call the taiwanese head of state, there is a reason that hasn't happened for 40 years. because those communications between the heads of state should be between the head of the chinese state and the u.s. state. this is not just a disruption of protocol. it is something that has enormous diplomatic and political meaning, certainly to china. i'll tell you tonight it is a 100% certain there are heads spinning in beijing. >> it is in essence truly incredible that this is happening tonight. jim, thank you. i want to go to ivan watson now. our senior correspondent based in hong kong, actually here in new york tonight. and we're awaiting the chinese response. obviously early in the morning in beijing. >> 8:00 in the morning on a saturday there. so it is a bit early. and it will be very int

he also accused china of building up military bases in the south china sea and said china had not done enough to rein in north korea, so he has been vocal on this. china has been listening to my but on the other side he wants to appoint to china as an ambassador, the iowa governor terry branston, seen something as a china friend. he has known president xi jinping for quite some time. so what they are trying to work out is whether this is a thought through strategy that trump will take to the negotiating table to win over concessions, or whether it is grandstanding from trump to play to his face. rishaad: tom mackenzie joining us there from beijing. ousted head tata's taking another swing at cyrus mistry at an emergency general meeting. we will be live in mumbai. sophie: plus, the proof is in the pudding. our next guest says we will have to wait and see on whether oil producers stick to their word on output cuts. this is bloomberg. ♪ rishaad: a quick check of the latest business flash headlines. hyundai merchant marine up after announcing it will join the world's biggest shipping alli

what was china's reaction? >> reporter: alison, officials are used to hearing tough talk on the subject of china from candidate trump on the campaign trail. they may not expect to hear from president-elect, but that is what they got. the tough line against beijing. he tweeted it out, but it is met with tempered response. a spokesperson from the ministry was asked about the response from china. the response to reaffirm the importance of upholding the bilateral relationship to focus on the economic and trade ties with the two countries. the spokesperson went on to say china would not speculate what is motivated the actions of president-elect and his team. china doesn't comment on the character or style or personality of foreign politicia politicians. they respond to policy. that is the big question. what will the trump policy be toward china? if this doesn't suggest the policies will change under the trump administration, that is yet to be seen. state news has weighed in. one op-ed was penned and that up ended th

-china policy. of course, chinese officials ra react the throughout the weekend first with the call to the white house asking for clarification and a slew of statements that have come out from the chinese over the weekend continuing to urge the united states to stand by take one china policy. carol? >> jessica schneider live outside of trump tower. later this hour, alexandra field will join us from beijing to discuss china's reaction to all of this. let's talk about that and much much more. with me, cnn political analyst rebecca berg, national political reporter for real clear politics. karen tumulty from "the washington post," andrey brower, former lieutenant governor of south carolina and cnn commentator bakari sellers. welcome to all of you. what do you want to talk about first? we got a lot on the plate this morning. let's start with jill stein. she's expected to speak at any moment about this recount and is holding this rally in front of trump tower. what is she expecting to gain from that? >>

the foreign ministry said the one china principle is the political bedrock for china u.s. relations if it is compromised or disputed, the sound and steady development of china relationship as well as other major issues would have out of the question. those words were obtained coming out of the state media. the state run news agency xinhua just posted a commentary titled principles not impulsiveness needed for china/u.s. ties and the global times, a communist party paper also described trump as naive like a child when it comes to foreign policy and a man who has no idea how dangerous his words can be. china considers a one china principle to be core to its interests, regarding taiwan. the u.s. recognized this principle since the 1970s and china just grisles at any suggestion that taiwan is an independent country instead of what beijing believes it to be, a rogue province. i spoke to one long time china analyst who said to me that it's not really such a bad idea for washington to take on a tougher line when it comes to beijing, however, he's concerned about what's a blunt mo

shift in china policy. today beijing issuing a blistering response to donald trump's increasing anti-china rhetoric. quote, trump and his transition team should realize making trouble for china-u.s. ties is making trouble for themselves, adding that the slogan, make america great again, saying making trouble for china won't make the u.s. great. the white house added its own criticism. >> it's unclear what the strategic effort is, what the aim of the strategic effort is, and it's unclear what potential benefit could be experienced by the united states. >> reporter: the storm started with a call between trump and taiwan's president, the first between a u.s. president or president-elect and taiwan's leader since the u.s. first recognized beijing in 1979. trump then doubled and tripled down on his tougher stance over the weekend, tweeting, did china ask us if it was okay to devalue their currency, making it hard for our companies to compete? heavily tax our products going into their country. the u.s. doesn't ta

the one-china policy which has china in a very, very concerning level. they have sent out some tough statements. so you are seeing, you know, donald trump being provocative when it comes to china. and, as you kind of pointed out, sometimes less so when it comes to russia. >> mark, thank you very much. we'll be right back. technology is the only thing that really entertains us. i'm gonna use this picture on sketchbook, and i'm going to draw mustaches on you all. using the pen instead of fingers, it just feels more comfortable for me. be like, boop! it's gone. i like that only i can get into it and that it recognizes my fingerprint. our old tablet couldn't do that. it kind of makes you feel like you're your own person, which is a rare opportunity in my family. (laughter) ♪ ♪ see ya next year. this season, start a new tradition. experience the power of infiniti now, with leases starting at $319 a month. infiniti. empower the drive. i thodid the ancestrydna toian. find out i'm only 16% italian. so i went onto ancestry, soon learned that one of our ancest

a military confrontation with china in the south china sea? could it lead to a trade war with china and i'll throw out a third thing, north korea. north korea's getting very close to have a nuclear weapon it could place on a missile. china is our leverage to stop north korea from doing that. >> but, but isn't it possible, china's also building military installations in the south china sea, right? it's becoming more and more aggressive militarily. the united states is worried about that. cheap steel on states like ohio cheap chinese steel and that makes the manufacturing jobs go away in the rust belt of america. so, when you consider those things, which are more important to people's lives, frankly, in the short-term, right? then, then, again, donald trump's supporters would say, go for it, donald. >> right. well there's a lot of agreement that there are problems with china. but i think that two issues. one is how is he conducting this kind of diplomacy. twitter is not subtle nor are the statements he makes. that can have dangerous consequences

china, flying nuclear capable bombers over the south china sea for the first time in an apparent warning to president-elect trump. this after trump questioned whether the united states should keep its long-standing policy that taiwan is part of one china. we'll get reaction to all of this from a democrat on the house intelligence committee andre carson. and our correspondents, analysts and guests are standing by. first, cnn's ryan noblestower i. what's the latest? >> reporter: it's been a busy day for donald trump here on 5th avenue as a parade of potential administration officials have made their way into trump tower. as the trump transition continues to take shape, the president-elect remains at the center of a fierce debate over the alleged role of russia in an attempt to interfere in the presidential election. tonight, donald trump refusing to accept cia reports that conclude russia attempted to intervene in the presidential election, tweeting can you imagine if we tried to play the russia/cia card? it would be called conspiracy theory. this just hours after telling fox flues t fox n

and china. offered them in 1973, a direct hook up with our early warning satellites and said in a top-secret eyes only memo just declassified a few years ago -- we will provide you radar technology to make that are used of the intelligence and warning we will be giving you in real time because your bombers are all on one base and you need to be able to scatter them with early warning technology. so, i am trying to lay out for you what i cover in a couple of chapters in the book. of is the grand strategy china plays down the military spending in the military strategy. you miss understanding what china is up to if you look at the military side. acronym notntagon used by the chinese. they do not describe what they have been doing for the last 10 years in our vocabulary. their version of what they are doing is back to the 1955 challenge by chairman mao. had a list of indicators, a net assessment. assessmentnd of net about how we would surpass the americans. sincet time, they have changed this but at

-china relations into sharp focus. it was the first time since 1979 american and taiwanese leaders have spoken in a break from diplomatic practices. trump said it was a routine congratulatory call, but on sunday night, he criticized china's military and economic policies in a series of tweets. in china, an editorial warned the united states risked a confrontation with beijing. meanwhile, the obama administration says national security official spoke with their counterparts to make sure of u.s. commitment to the one china policy. joining me now is ian bremmer, president of the eurasia group a global risk assessment firm, and richard haass president of the council on foreign relations. his forthcoming book is called "guess what: a world in disarray." i'm pleased to have both of you here. i begin with you, richard how , serious is this? how did it happen? how will it play itself out? richard: it is pretty serious in the sense that the call broke ground, unfortunate ground that hadn't been there since the late 1970's. the

and china, one certainly on taiwan, one over the south china sea, one over trade. all very dangerous tense issues, without any articulation of exactly what the change is, other than we're going to be tougher here. and the thing is that each of these has a potential for an escalatie ining conflict. the south china sea, you have u.s. war planes flying over those islands. i was on one of them last year, coming in very close proximity to u.s. war planes. you have chinese warships sailing by those islands coming very close as well. as you raise that tension, those conflict points, one of those, whether it's in the military sense or as van says, in a trade sense, has the potential to blow up, to some degree, and when that happens, it's not just the chinese that pay, right? it's americans who potentially pay as well. >> we're going to have more on this conversation. we're going to focus on a completely fake news story. a member of the trump transition team, and the man who opened fire at a washington pizzeria. later, protesters trying to stop an oil pipeline score what lo

the aim is to reinforce china's claim to the whole of the south china sea. more than 40% of the world's trade passes through the waters below us. china is determined to assert its control. america and its allies say they won't let that happen. but as we have found out, it may already be too late. rupert wingfield—hayes, bbc news, in the south china sea. now to evidence of a startling rise in gun violence the us, including in barack obama's hometown of chicago. killings in the city have reached a 20—year high. a deadly summer of violence brought this year's death toll to 500. most of the victims and their killers were young men. we spent a week in chicago and found a world where guns rule. a world where guns and gangs rule. in my neighbourhood, they start young. that is the edge, and they are dying from guns. very young. we have to teach children how to defend themselves. it is like, what do you do? you are caught in the moment. you would rather be caught with protection than without it. i have never seen so many guns. like, we have so many guns. but i ha

/china relationship. he lived in a port city eight years, developing a business park and importing foreign goods. it's where he met his wife and raised their daughter. in 2010, he moved to bellingham, washington, where he began exporting among other things alaskan fish and timber to china. he says the playing field has never been level. china puts tariffs up to 30% on u.s. fish while their fish comes here duty-free. >> they basically are grabbing us by the nose and kicking us in the rump. >> reporter: when it comes to china, president-elect donald trump sounds a lot like candidate trump. >> they haven't played by the rules, and i know it's time that they're going to start. they're going to start. >> reporter: during the campaign, trump said he would label china a currency manipulator, back out of the trans-pacific partnership, and hilt chinese imports with tariffs up to 45%. all needed, trump says, to correct a 3 3w568 dollars trade imbalance with china. >> the nation of china is responsible for almost ha

us exports to china are valued at $162 billion. the country is america's third largest export market. but imports from china into america are far higher, standing at $198 billion. and this, according to president—elect trump, is the problem, a trade deficit with china totalling $336 billion. mr trump says closing that gap would create a lot ofjobs in america. an america that has certainly lost plenty of traditional manufacturing jobs, like here in pennsylvania, once the heart of the us steel industry. but although people may blame outside forces, economists argue that the job market has changed and that cheap goods from china have been good for hard—pressed us consumers. with china, maybe just we challenge them on one of their policies and then they retaliate in some way. they may announce a retaliation, they may not. but it looks like quite a bit of friction with china in the months ahead. china's response, as ever, cautious. but caution with an edge. china does not appreciate being called an economic bully. translation: china

i'm sorry, but china does not make our foreign policy and china does not tell our leader who is they may or may not speak with. >> and on that point, the democrats blasting president-elect trump on this issue. yet they didn't blast president barack obama on his steps to get a better relationship with cuba. >> you know, i think that's exactly right, they're trying to portray this as some kind of a sign that mr. trump's foreign policy will be incomp tent. the real issue here is that we're looking at a new president who will be strong and decisive in principle and will not follow in the steps of barack obama. >> what do you make of the fact that china issued a stern rebuke if you will of in phone call between these two leaders, although china does not recognize taiwan has having a leader, it calls it one china and this is the first break with diplomacy since 1979. >> this is the way china deals with this relationship. we need a good relationship with china, and i think we will have one with a principled and strong new president and a principled and strong secretary of state whom by the

reaction to china. and i were talking a few days back to the former boss of the ecb, jean-claude trichet. he describe the current account surplus as enormous. it's only going to get bigger going forward from here. is that become a political problem for germany in 2017? >> not in 2017, i think. the pressures in europe will build over time. if you look at the electoral calendar in 2017, we don't see any big events triggering stress around the current account surplus. i think the issues you have, when you look beyond 2017, the pressures which have led to a rise in populist politics, not only within europe but in the u.s. around the world, those pressures are not going away. we have seen some improvement in global growth, and you still expect european growth to remain lackluster for a number of years to come. headwinds remain significant, the demographic headwinds, the productivity headwinds remain very significant. the results of those pressures is going to continue to build. i suspect we will still be tal

china relationship. thank you. from the nyse, the company is cut --ing trading on our platform, from 10:50 through 11:05 because of a technical issue. all orders will be canceled, so again, it is going to suspend trading for 15 minutes because of this technical issue. we will bring you any updates. we will let you know when trading has resumed at 11:05 as scheduled. mark: coming right up on the european close, barton is looking to sever ties in order to boost returns and focus on the ones that produce significant profits. today. net story stocks 30 minutes away from the end of the monday session, the stoxx 600 is down today after two weeks of gains. it is the week before christmas and volumes are down 20% over the 100 day average. look at the currency board as well. there is more of a slight to haven today. stirling is down against the dollar. this is bloomberg. york.is 11:00 a.m. in new 30 minutes left in the trading day. >> i'm julie hyman in for vonnie quinn. this is "the european close" on "bloomberg markets."

brandstad has ties with china and he would be source of strength for donald trump in china. at the end of the day, maria, if we look back into history and u.s. policy being about a win-win relationship. right now china is winning. not the u.s. that's why donald trump has made it clear that he will make sure that we are leading from a position of strength of america and china will not be bullying us and the fact that we need to definitely change the perception here and the idea of the trade deficit which is $365 billion and it really shows that donald trump is wanting to put someone who speaks and represents in a solid way in governor brandstad. kevin: isn't this post more important now than ever now that the new administration has sent strong message that is are they are deepening the ties with japan, you saw yesterday, you have government officials from the japanese government meet with the trump team. is this sending a message to them specially about the south china sea? >> absolutely. i think that what we have seen under president obama's administration is clearly the fac

cpi year on year from china. and the correction we have, 3.3% for the year on year, as opposed to the number expected of 2.3%. at the moment, 1.5% moved to the outside was month on month, not year on year. so that is what we have currently going on. the ecb sent shock waves through europe and bond markets, more hawkish and dovish than expected -- expected. they will buy fewer bonds per month. does that work or not? >> that is the question of the day. especially if you're a global bond trader. cutecb announced it won't its monthly bond purchases to 60 billion euros a month from 80 billion euros. you could call that a tapering, right? that was not expected it, so that hit the market hard. but notwn the road, now. the extended its bond purchases six months past the march 2017 and date. nine months, now they are to the end of next year. that is more because they said they would be done at the end of the third quarter. we would get a six-month extension. means 540 billion euros more purchased than it would have been o

and china last year. more of that is imports than exports, true, but americans are consumers as well as producers. if we begin to block off access to our markets, they block off access to their markets even more, that is not good for americans. does russia due to chinese relations? russia is complicated. the last few years have been dominated by talk of russia and china working together against the united states. it is a murky game. i am not sure how that will play out. after the election, almost all emerging markets went the -- immediately after election, almost all emerging markets went down, because there was expectation of fiscal stimulus, and fed tightening, that would pool dollars back into the u.s. the exception was russia. markets because the where more accommodating with even the lifting of sanctions. vonnie: if you look at the bloomberg at the primary winners, there is another russian index in the top 10. you are just back a few months ago from some baltic states. what did you make of the reacti

has officially regarded taiwan as part of china since the 1970's, but even that so-called one china policy is up for grabs, according to the president-elect. publicly, china's tone is measured, although one member of the government did say tearing up the policy would amount to a rock andting up dropping it on their feet. >> we ask american leadership to understand the sensitivity of the taiwan issue, stick to the one china policy and the principle established by the three joint communiquÉs between china and the u.s. gary: with just 39 days to go before he is sworn in as president, donald trump seems determined to tear up the diplomatic playbook, be it with russia or china. the geopolitical tectonic plates are most definitely on the move. gary o'donoghue, bbc news, at the white house. katty: ok, what does all this mean? bill cohen is still with me. you have worked throughout your career with intelligence services. with af, out with the -- with a with this if it was as mr. trump says, ridiculous? mr. cohen: i don't think so. this is really going at the heart of the intelligence community to

ambassador to china. joining us now from a washington bureau is white house correspondent mike the warning. -- mike dornin g. how did they meet and how have they kept this relationship going? to iowa onident went an exchange and after he spent time with i would families, when he was a lower-level communist party official, governor branstad met him then and they kept in touch and it has been great for both president shi and for branstad. on the president's first trip to the united states after becoming president he went back to iowa. david: why does i will remain so port and -- important to china? --iowa has a huge act gri agriculture business, a huge export of grains and i believe president shi grew up in a rural community. it is important for export of manufactured goods to china and also just food supply. david: in light of what we have seen over these last few days, donald trump's call with the president of taiwan and the tweets he has written about china, what does this say about his attitude towards

it's not entire clear why china took it. this is not like when they kept our high tech surveillance airport that crashed on hainan island and sent it back to us in a number of boxes apparently trying to reverse engineer as much of the equipment as they could. this little drone thing, it's cool, but it's not going to have a lot of intelligence value to the chinese. this is a commercially available thing. if china wants one of these, they're expensive, they're about $150,000, but you can just buy them. this particular one does belong to the u.s. navy, though, and china taking it and refusing to give it back is basically just a one-finger salute to the united states of america. it's meant to be an embarrassment, meant to be an insult, meant to be a diplomatic provocation. and the timing would appear to not be random. at the same time that this has all gone down, late last night, china also announced and released footage from its one and only aircraft carrier conducting its first ever live fire, live ammunition real missile exer

china is the biggest international market. is not only market a benefit to local makers but foreign players. anchor: up next, we speak to one of malaysia's biggest banks git.t the weekend ring ♪ ."onne: this is "daybreak asia betty: a quick check of the latest headlines. airline earnings set to suffer the first annual decline in six years as oil prices trim margins. that air transport association says combined income will be a fraction under $29 billion. however, airlines are increasingly resilient. >> we are being helped by the oil price in 2016. we must be aware of the ability to very well and efficiently restructure their business. we have increased the resilience of the industry. airlines hasppine confirmed an order for 12 planes. the manufacturer says the deal -- it could rise to 400 million. starbucks is seeking to foode the growth of its sales by persuading customers to come back for lunch. they want to boost food from 20% of sales to 25%. they want to add cafÉs over the next five years. hasthe malaysian ringgit lost

more signs of china cracking down on speculation. at least on their commodities markets. 2%, 2.5%.s up back to the opec story. what are we seeing as far as effects? airlines and oil producers, very basic, plain, vanilla. chinese airlines down. southeast asia, east asia. airlines,oard, qantas so forth. i won't go through this, but fairly substantial gains through a lot of these regions. let's see how far this actually holds. these are extreme gains we are seeing in this space. host: let's explore this a little bit more with craig mcmahon, asia-pacific head of research at wood mackenzie, one of the biggest energy analyst firms. we get good insight into how the oil prices going back to their glory days. does this really mean? -- what does this really made? not the glory days, that is for sure. i think what it does mean is we are going to see the balancing in doing oil markets between supply and demand really being accelerated. oil demand is forecasted next year at about 1.4 million barrels per day. local oil supply is forecasted to grow

yvonne: up next, it has been a tough year for china. those lucky enough to get a that wentny company public, whether the good times can keep rolling. this is bloomberg. ♪ yvonne: it is 8:30 in singapore. from theour away opening of trading. i am yvonne man. betty: quite the opposite in new york. a rainy and gloomy all day. it would have been snowing if it was a little colder. i am betty liu. let's get to the first word news. reporter: donald trump says it is time for the u.s. to bigger and better things after the sheda administration puni russia. the tycoon issued a statement saying he will meet intelligence officials next week. russia rejects the accusations. announced angs has campaign to eliminate waste. the plan is nicknamed the waterline project. he has spent four years cutting costs. has trimmeduring some $700 million of expenses. also, italy's bail out of the world's oldest bank has won the green light. the rules say banks with a capital shortfall are not allowed to benefit from liquidity schemes. and a north korean economic le

the us and china. and at some of the best pictures from bigwig competition in portugal, some people stayed on their boards but not everyone. we will look at some of the best waves and the biggest wipe—outs. well, as i mentioned, the syrian army is claiming it has completely reta ken army is claiming it has completely reta ke n a army is claiming it has completely reta ken a level, army is claiming it has completely retaken a level, the last comboy of rebel fighters and civilians has been evacuated, that leaves the city and the full control of the government the first time in almost four years, we are being told by the red cross in syria that more than 34,000 red cross in syria that more than 3a,000 people have been evacuated from the city in the last seven days, most of them have gone to the neighbouring province of idlib, primarily controlled by the rebels. one of those to leave a level —— aleppo is a seven—year—old girl which a mother —— her mother used to send tweets on account, it has

we have on the phone, gordon chang, author of china, the coming collapse of china. but first to you, jeff. she punted on that one. reporter: she sure did. was not taking bait at all. mary barra is pretty good doing that sort of thing and steering clear of controversy. i thought it was interesting, she agreed to be on president-elect trump's economic council. but at this point that was a paper transaction. she has not up this point even talked to him. we'll see where this goes. liz: gordon, you're on the phone. what has your digging turned up? is it ford? ford has operations in china. general motors does business there. they have buick plant for many, many years with a chinese partner. now suddenly post-phone call where donald trump took congratulatory call with the stated enemy of china, the country of taiwan, suddenly they start crying price fixing. against at least one of these companies. again we don't know which ones. >> we don't know which one. everyone's been saying either gm or ford. clearly what china is trying to do is inestimate date trump -- intimidate tr

everybody and china knows meitu. if you go on the streets, 90% of the ladies will raise their hands. rishaad: i've never heard of it. sophie: going back to what you said earlier, that you been helping meitu gain access to the u.s. do you seeactivities in that world? think china cap developers have become the best in the world. i think everything else being equal, the chinese app developer will be better than the average has aan because china large market, huge capitalization, the engineers are getting better, so not only alsoaces like meitu, but artificial intelligence, autonomous vehicles. i think china will be as serious power to be reckoned with on the global scene for technologies. rishaad: this is the biggest tech ipo that hong kong has seen since 2007 when alibaba listed. for so long, nearly a decade, the point is does this mean we will get more tech ipos? in the tech space, would you looking at? invest in early-stage companies, so technology differentiation, the founders having lots of experience in the ing a

-china relationship. we have one china policy, that is all official. contacts must be with mainland china. but we have something called the taiwan relations act that includes the idea that we help taiwan defend itself. that's where these weapons sales come from. the chinese don't like them but they've accepted them over the decades. >> for people who think maybe this isn't a bad idea, putting china a little on edge about what the future holds, and maybe things will be different, and maybe they need to be different in their relations with the u.s. >> well, i think it's the thing if you want to make news, you ought to know you're going to make news. and it shouldn't be inadvertent. if you're going to change a policy of 40 years that's been subscribed to by democrats and republicans alike, you might want to give some thought to it. you might want to do some consultations with people. and you might want to decide whether this is maybe a time to change something. but as far as we know, there wasn't any discussion whatsoever before this phone call. so it doe

and it risks infuriating china with one china policy which claims that taiwan is part of china. trump tweeted after. interesting how the u.s. sells taiwan billions of dollars on military equipment but i should not accept a congratulatory call. china released this statement, we urge the revolution side of the u.s. to adhere to the one china policy abide by the pledges in the three joint china-u.s. communiques and handle issues related to taiwan carefully and properly. >>> democrats are asking president obama to declassify intelligence after new information specifically to help donald trump win. cnn's jim sciutto has details now. >> christi, we are learning there's new information that russia's election-related hacking is believed to have been intended to help spear the election to donald trump. democrats now want president obama to make this information public. >> reporter: democratic senators are pressing the obama administration to more forthrightly state that russia's meddling in the u.s. election was intended to help donald trump. multiple sources tell cnn. the democratic pre

china policy. mr. orlins: does this, excepting a call when he is not yet president, i would argue that what our prohibition is about official contact and since he is president-elect and not yet president, that actually is not an official contact. no? that is ager: well, good way to describe it. [laughter] -- orlins: sense that it since i look to avoid confrontation that is the way i choose to describe it. i look to the secretary of state in taipei and i know since i worked in the state department there are prohibitions. i said wait a minute, you're not supposed to be here. he's a, i have been named but i have not taken off yet. i am not official. so there is precedent for that kind of contact. so what do you think after that , the president-elect was out a tweet after he criticized and i had to write it down to have it precise. "did china ask us if it was ok to devalue their currency, making it hard for our companies to compete? heavily tax our products going into their country? the u.s. does not t

china is extremely sensitive about the one china policy. anyaad: trying to brand country as a currency amid later, moving beyond that, if we look beyond the rhetoric, what about any real impact? >> i'm not sure about real impact. trump is walking a very dangerous line. at some point in time, you want a certainut beyond point, you don't want to take a certain chance. on the other hand, if you look at the evidence over the past hass, the taiwan dollar risen against the greenback, but the chinese currency has dropped almost 6%. that is a huge almost devaluation, depreciation in any. of time. -- in any period of time. i'm sure he has his reasons. the real impact is he good push things beyond a certain point where it could affect the entire asian economy. a good have a knock on effect and currency stocks and all of that. sophie: leading into perspective here, china is a behemoth. taiwan, but we are seeing with the u.s. relationship in this region, what else can we anticipate here? take a look at the economics of taiwan. >> they have been plannin

one china rule pretends taiwan is part of china. now the chinese were quick to react. one government newspaper said mr. trump had the intelligence of a child. this man, a spokesperson more reserved pointing out the one-china rule kept peace for years. mr. trump will meet with tech leaders, many of whom are concerned about our future relations with china. they are almost exclusively built in china. tim cook from apple is going but there are at least three execs invited who will not go, head of airbnb and the head of uber and elon musk indicated he's too busy. futures calling for a lower open. let's show you record numbers. dow closed up friday 142 points. record on the s&p 500. the fed does meet and starts its two-day interest rate meeting tomorrow. we expect it will raise rates the selke time this dwreer. i know the fed can be dry -- >> they have the beige book. >> who is going to care about what some guy, what he invented in 1700, right? >> if it were a red book you think it would be more interesting? >> at least a sexier color. be

china considered taiwan part of its territory. even inside of washington some are saying any public support of taiwan, which is i stable democracy, is a bad idea. that drew this reaction from former state department on v.a. christian whiten. quote, if a little courtesy to a democratic friend could threaten peace in the pacific, then we need to re-evaluate our defense and come um with somebody better and he joins us now in a fox report interview. good to see you. thanks for being here. so you feel strongly about this. and can i ask you, christian, why is there a big deal about a phone call. mr. trump is going to take a lot of calls? >> right. no, the problem is that a lot of the china policy is predicated on a complete lie. this lie that taiwan is a part of china, that the president of taiwan sent isn't the -- isn't the president and that trade will improve the behavior of china when we know the opposite. in the last decade china has gotten worse toward the only people and has jobbed us blind and stealing jobs and intellectual prop

you do not need to own stocks in china. there are enough amazing american companies you can buy technology stocks with, google, facebook, amazon. i would not touch this stock. i would not go here them until we figure out what he's xwoik to do. >> amazon has its own problems with counterfeits. they took counterfeit sellers to court this year for the first time. >> this is a known problem with a large peer to peer marketplace. i don't think it has huge impacts on alibaba. yes, there are brand implications trying to enter the u.s. and expand it to southeast asia. . a announcement the stock dropped less than a percent, down a little more than this morning. i don't think so this is a big deal. what's interesting here is the correlation between this and fake news. you have large peer to peer marketplaces with the goods. it's becoming much more real and this is an issue. ? fake is becoming much more real. little scary. uber, meanwhile, halting its self-driving test in san francisco after about a week and a half, this after the sta

francine: what worries you in china? mr. flint: the question is if you can make a change from a heavy infrastructure-led, export-led economy to a consumer driven, technology-savvy, research and development economy smoothly. the transition is under way. big steps have been taken. heavy restructuring is under way. the population is supporting the transition. that is reflected in political support, but it is a massive undertaking to transition the economy, but you can see the research side, the consumer side, the tech side is going very, very strongly. chinese firms are beginning to invest in lower wage economies in the same way that other businesses used to invest in china, so they are going into vietnam, myanmar, africa, and effectively replicating the stage of development that they went through in other countries and building infrastructure to create trade flows, trade corridors. as ever when you try to do something very ambitious, you worry something interrupts it, but i think china has managed it successfully so far. franc

i don't know why we have to be bound by a one-china policy unless we make a deal with china having to do with other things, including trade. i mean, look, we're being hurt very bad ly by china with devaluation, with taxing us at the borders when we don't tax them, with building a massive fortress in the middle of the south china sea, which they shouldn't be doing. frankly, they're not helping us at all with north korea. you have north korea, nuclear weapons, and china could solve that problem. they're not helping us at all. i don't want china dictating to me. this was a call put into me. i didn't make the call. it was a call, very short call, saying congratulations, sir, on the victory. it was a very nice call. short. and why should some other nation be able to say, i can't take a call? i think it would have been very disrespectful, to be honest with you, not taking it. >> you recently intervened with carrier to save about a thousand jobs from moving to mexico. you've said at one of your rallies you're asking for a list of ten companies that are thinking about calling them as well. sh