korea. the south china sea is still being developed by china. you have the chinese currency stabilizing. which probably is a good thing. we will have to see. this is an administration that seems to make it up as they go along. what the policy is going to be six months or a year from now, i have no idea. >> i don't know that a trade war with china -- anything that will bring tariffs is a dumb idea. , thatfree trade guy but will extend beyond china. that will extend to our partners in north america, europe, we seem to be picking lots of fights these days. china seems to be, we seem to be concerning a lot of trade partners. tariffsal, a rise in would have to be bad news i think. >> that was scarlet fu and joe with jiml's interview chanos. certainly a wide-ranging one. he says he has plenty of their shorts in the u.s.. he's finding a lot of opportunities. i don't know how good it is for the bulls here. >> given where the equity markets have been there is an opportunity for short-sellers to china wave. not just in but across the world. let's get to sophie to see -- let's -- the m

and exercise our navigationeedom of throughout the region over the south china sea. and we repeat the calls that we've made and the solidarity shown with other nations in the region, including the ensure thats, to the rule of law is complied with, that no unilateral actions the south china sea, which would exacerbate that any and territorial disputes are resolved in accord with international laws. >> does it put australia in a situation, given how reliant we are economically and withegically when it comes our relationship with china? >> we have a very strong relationship with china, a very strong, rock-solid relationship with the united states. our wholeedrock of national security. may i just say this to you, that to maintain and exercise freedom of navigation and overflight. senatoru agree with mccain's comments that china is acting more and more like a bully? >> senator mccain can speak and very eloquently for himself. had a very good visit here in australia. we were very honored to receive a very good friend of australia. fors a wonderful advocate the australia-u.s. alliance. he is

, the japanese government is wary of key technology moving overseas, especially to china or south korea. so really the participation of japanese investment in some form essentially reassures everyone and helps the deal go forward. in terms of deadlines, final agreement within one week. after that, closing the deal with due diligence and hurdles is for march of 2018. money ontoiba gets its books, it will have trouble being listed under tokyo stock exchange rules. betty: what about western digital? will they get in the way of a steal at all? reed: western digital was wary of the toshiba memory chip unit going into the hands of broadcom. broadcom is out of the picture now. the question is whether toshiba will continue its efforts to block the deal. they have an injunction they have asked for. i think a hearing on that is in mid-july. anything can be worked out. presumably the buyers have agreed to go into final negotiations, have considered the legal risks to be not too huge. there are questions whether western digital will remain in the next or -- in the mix or not. yvonne: what abo

. stockpile. >> president donald trump a and his south korean counterpart will hold their first meeting. the economic challenges are up for discussion. let's get more now. with, we continue to see north korea, it's between what the u.s. wants and china. let's talk about the impact here in terms of trade. >> moon wants to keep trade off of the agenda. it will be difficult. president trump has talked repeatedly about his dissatisfaction with the free trade deal the obama administration negotiated with south korea in 2012. a bilateral deal. which president trump has called horrible and a one-way street. that can show a chart shows, the trade deficit the u.s. had with south korea. that continues to get bigger. horrible.led the deal why? >> he is pointing to those numbers. the trade deficit. the koreans respond that it doesn't tell the whole story. you have to look at the foreign direct investment from south korea into the united states. that has gone up sharply since the deal went into effect. executives will be traveling with president moon from the largest korean conglomerates and

forward? reporter: it is fair to say that this policy has been in sport for a while. china was not the first to be the victim of it. in 2015 there were two south korean operators who were also arrested and served time in jail. they were released last year. at the same time, if you look around asia, there are more casinos striking up everywhere. it is clear that china is looking ahead and it wants to make sure that the growing market these other casinos see in china and china's wealthiest vips, the biggest gamblers in asia, they want to protect them and protect them market from these other casinos. you look at japan, they have casino legislation. that is a massive market for china. australia is building a new market. in sydney will target vip rollers alone. if you look at southeast asia, vietnam, and the philippines, there is a whole lot of temptation there for chinese gamblers to move out of china and take that capital with them. that is what -- chinese authorities want to prevent. betty: thank you so much. on crown resorts and the sentencing of their officials there in china. , pr

the news out of south korea, reportedly looking to suspend the claimants of the u.s. thaad missile system. stocks with exposure to china such as amorepacific getting hit , given some of the lash out we have seen from china regarding the missile system. betty: thank you so much, sophie kamaruddin on all the factors playing into the asian markets. what about the european market? the big issue facing europe comes to a head on thursday as the european central bank tries to thread its policy needle between a strong economy, weaker inflation, and u.k. voters choosing between candidates promising a lot at a time when brexit makes it hard to deliver much of anything. bloomberg's global economics and policy editor kathleen hays here. the world is waiting to see how mario draghi finds his way through this hot mess. kathleen: exactly. those are technical terms. here is what is going on for him. the economy has gotten stronger in europe. at the same time, inflation is weakening. how can mario draghi come up and not acknowledge stronger growth? if he doesn't, it could hurt his credibility. but