south china policy, new south china policy, that means that the new government in taiwan avoids the chinese government to make a good relationship with southeast asia countries. i'm not optimistic because i think of those countries, and in mainland china in taiwan, and southeast asia -- in china, more willingness to cooperate with new government in taiwan. today, taiwan can benefit from its role in universal barriers. if taiwan tried to take advantage of deteriorating relationship between mainland china and the united states it would be a miscalculation, very dangerous. some people disagree about its conclusions, what taiwan can play you don't try to maintain or construct a relationship with mainland china. possible for taiwan to play a contractual role, but not saying the government should always rely on the goodness of mainland china and to find a new way through mainland china and to improve the current situation, thank you. >> what about here? the new wave so if you have a way for that and another question, china will be forced to taiwan and a message to taiwan to take some action? >> t

china is doing, they are building in the south china sea a military foretruss, and we have power over china because they suck is drive, and i have the biggest bank there has my tenant and i have great relationships with china, and what i say they know is true, and they just renewed the release and i couldn't believe it, and they obviously like the building. we have tremendous power over china because they take so much -- they suck so much money out of the united states. we should get china to fix that problem, and we should use our economic power because without us china would be in serious

china has moved into higher value added products like robots and computers, pitting china against south korea and germany. all this talk we've heard about china losing its global advantage, it's nonsense and not going away. you can see that reflected in the tensions by the fact that we have this big move through and populism and the brexit vote. angie: what about internally? juliette: they are still spending. we saw on tuesday a statement from the state council saying they are going to lift restrictions on infrastructure spending, allowing equal access granted to private investors in sectors such as education and medical care. they are saying it is a good time to boost infrastructure because commodity prices continue to decline. china continuing to ramp up. angie: thank you for that. china may be preparing a comprehensive overhaul of its tax system as well. sources tell us that beijing may change its consumer tax policies to accelerate the ship towards a consumption-led economy. we have bloomberg's china economy editor here for more on this. what are they proposing here? >> sources have

let's get over to china. nevermind china's overcapacity when it comes to coal mining, the largest producer is set to increase production. what is going on. has been cutting capacity and: steele, but what has been happening is they cut the capacity and output, prices have gone up much more than expected. of coal, thena world's biggest consumer and producer, so what they do affects price globally, is down 10% the shoe. the chinese president has been telling miners to lower their output. they cut capacity through august this year equivalent to the output of columbia and south africa. it has driven up prices. cashelbring up the new -- newcastle benchmark, up 44% after falling for five straight years to the lowest level since 2008. when you reduce the capacity of output from china, it raises the prices. spot prices for metallurgical cold to make steel have doubled since july, over 200 metric tons. people close to the situation in china say 14 chinese miners owned by the largest coal group, shanxi group, set to rai

and china. they didn't join the paris climate agreement and pledged to do their best to boost that and bring it into force. all eyes today are on a sitdown between the japanese president and the chinese president at a time of tensions over territorial disputes. not to be overshadowed by some of the tonsils we have seen on the security front. ahnill get more from shery a little bit later in the show. thank you for coming on for us. let's get to first word news now in singapore. debt nearing a level that may trigger a downgrade, moody's was $115 billion at the end of march. any sustained rise above 5.5 could mean a downward revision. softbank's $32 billion purchase of arm holdings is set to add to its debt load. -- angelaerkel merkel's christian democrats were beaten by the immigration alternative for germany. the vote is seen as a backlash against her open border refugee policy. the social democrats won the election, but the other party came second. she faces a national vote next year, and the re

that may have already gone to china or may soon go to china. >> so that's why there's a much greater fear in failing to catch chi mak. >> in 2004, the chinese didn't have a strong navy capability. they were really a brown water navy. a navy stable to operate in shallow water. chi mak chose the chinese efforts to be able to expand their capabilities into blue water. >> if these technologies are lost, then it means we don't have that edge. so, god forbid, if there's ever a conflict in the pacific that involves china with us on the other side, then i believe lost technology will cost u.s. lives. and that's one of the things that makes me angry. >> in the fbi we have to follow principles, policies and laws. and one of those is we have to have the evidence. our greatest fear initially was, will we catch chi mak doing what we thought he was already doing? >> the thing that hit me hardest about this case was that we've got a man who came here for better opportunity and, in fact, was a spy. sent by china to come here, pledge allegiance to the united states. he took an oath with a full intent

now also attracting people from bank of china, and china construction. the company added some, 10 senior executives since may and would like to hire 10 more by the end of the year. barclays set to add a hundred jobs to its i.t. operations in singapore. all a picture of cutting costs. some of the positions will be moved to india. though the bank did confirm its cuts it did not speak of the number people to be affected. this is all part of a theme of global layoffs of some 1200 positions. still ahead the new faces of hong kong's elected government. what they mean for relations with beijing. looking at that in depth. this is bloomberg. rishaad: u.s. trending business. younger, more radical lawmakers have been elected to hong kong after record numbers turned out to vote sunday. it is the city's first election since the pro democracy protests some two years ago. our bloomberg reporter at large has more on this. i guess everybody is closely listening for any disdain or otherwise out of beijing. >> yes indeed. yesterday evening around 7:30 beijing's affairs off

the slowdown in china's movie market. a switch and policy from china's central bank. the latest private indication of how the country's manufacturing sector is holding up. this is bloomberg. ♪ haidi: some breaking news out of china, the latest manufacturing at 50.1, banging on expectations. the manufacturing sector still holding ground. that marks the third love that the manufacturing gauge has stayed above that 50 level. after rate cuts, good the nextes, move be to tighten as early as next year? that is the view from a new bloomberg survey of economists. >> central banks everywhere always have that proverbial fork in the road. that is their job. that is what they get paid for. on the pmi ising for private sector companies. that it has been three months above 50 shows that there has been stabilization in the private sector, nonstate mostly. they have been stabilization. the argument is now that we have stabilization, we have had 11 months of the pbo see doing policy moves other than reverse other moves, aside from moving that benchmark rate. there could be some thou

if you look at gdb, china -- gdp, china will be the largest economy within a few decades. they will pass us at some point as the world greatest economy. gdp per capita is a different question, but overall gdp. what they see right now, it is somewhat similar to putin, which is why i think you see them having a lot of common thinking, what they see is that we are trying to keep them from achieving this goal. they talk about containment all the time, and american say, ,- and we americans say "containment? we buy your goods, how can we be containing you?" they mean strategic containment. they believe that we want to create a revolution in china the way that we did in, in their eyes, in ukraine. they see as trying to keep taiwan out. pivot is the equivalent to the chinese of nato. it says to them we will put a lot more force in your area of the world because we don't trust you. we prefer our structure of the past in east asia. our close relationship with japan, south korea, with soucy southeast asians. -- southeast asian states. one of the things that's interesting is the expan

he said china has leverage, china can do it, i will defer to china. do you agree with that china can do it. >> they have the most leverage with north korea. we gave up any opportunity to influence iran, sbeexercising leverage with iran. we need to work with china and put the pressure on china so they can influence behavior. the response today was hey, we're really going to get tough now. the world has heard that president, the former secretary of state make these kinds of threats, and these threats have never been followed through on. people no longer respect the united states of america, so yes we do need to use approximaprox until america reestablishes their influence and credibility around the world, it is china. trump criticized obama, but earlier this year he said he would have no problem speaking with the north koreans, willing to sit down with kim jong un. is it hypocritical of donald trump so say he would sit down with the north korean dictator at a time when he goes after the obama administration for it's negotiations with eastern on -- iran

only the china sea state. the worst elements of the political system were bolted and then went to pressure and the south china sea but also in the east china sea. the chinese surveillance but we permitted them to be villainous. nicole: gordon chang, we are waiting for this news conference this morning is vivid for president up on a page of me page of me say page of a statement that cicadas your your expert advice as well. nicole: in the meantime, other news. donald trump and hillary clinton talking about their experience and judgment to be commander-in-chief. trump criticizing the obama administration by nbc news last night. >> under the leadership of barack obama have been reduced to rubble. they've been reduced to a point where it's embarrassing to our country. a beautiful part of getting a loan. russia wants to defeat isis as badly as we do. if we had a relationship with russia, wouldn't it be wonderful if we could work on it together and knock the out of isis. i would have it very, very good relationship w

for backing in the fight with china in the south china sea and for the u.s. the philippines is a way to engage the region in its asia pivot and counter aggression from china. this incident though highlights the challenges obama faces even as he prepares to leave office. t.p.p. the trade deal hanging in the balance. a defiant ally in the philippines and increasingly ggressive china as well. >> what is really obama's legacy? in the region? >> well, his legacy would be closer relations with southeast asia. some analysts say under obama the u.s. has seen the most deliberate and sustained engagement with the region. laos, the smallest nation and where obama is right now is his final stop of his last asia visit as president. that, itself, underlines the mportance of southeast asia. >> a very colorful end certainly to obama's tenure and his last trip to asia. coming up later on bloomberg my colleague speaks with the canadian prime minister. you can watch that conversation as it happens on the bloomberg featuring highlights here on bloomberg television. some of the s

-- china's record. whether patient has used little to avoid painful compliant and what the united states has done about it. sections are not the only two in our arsenal. -- sanctions are not the only tool in our arsenal. we must assure that aggression against our allies will result in support for the united states. as carter segregated -- as h cartertated -- as stated that we are standing guard 24 72 the turn against the north korean threat. tubeding conventional abilities, missile defense and a clear about. we must repeat these insurances to our allies. you must continue with show of force exercises to demonstrate to the regime that it will bear a heavy price for any aggression. the b-1 nuclear bomb in -- bomber overflights were a good start. we must expedite the placement of terminal high altitude area defense and republic of korea and i want to take our partners for the decisiveness and commitment to this critical capability. we must strengthen and build a genuine and lasting trilateral alliance. the

in china. china is becoming a real market for us. as recently as when we were selling ray donovan, we sold it in there for pennies and now, there is a real real interest. it is the first major sale we have made in china. it is significant. emily: can you win the world without china? can netflix dominate without china? david: here is how i think about china. china has always been a terrible market for american television. piracy is rampant. you know, the movie studios figured out how to do stuff in china five years ago. now they are making real money and i expect there to be a lot of growth there in the next five years. and i think we have spent a lot of time talking about china. emily: what about apple? what do you think is apple's future in television? ♪ emily: how did you get to hollywood? david: i just drove here. emily: in a volkswagen beetle? david: in an oldsmobile. my grandmother's oldsmobile. i came out soon after college. it was actually when i was in scotland. i found a bunch of hard-core film geeks who would have given t

so lots of condos to china. we can do great with china. and i'm not blaming china. i'm blaming our leaders for being so stupid. [cheers and applause] we're going to stop companies from leaving our country and keep those jobs right here in pensacola. but right here in america. [cheers and applause] the era of economic surrender is over we will also have a very, very strong border. [cheers and applause] that stops people and drugs and those drugs are poisoning our youth and poisoning our people from illegally pouring into our country. we will build the wall and mexico will pay for the wall. [chanting build that wall] >> we're losing our jobs, folks. we're losing our jobs. it's all so easy. when a company makes product and they fire all their people in the united states and they announce they are moving, as an example, to mexico, we have to let them know there are consequences when they think they are going to sell their product back into our country. and when we tell them the consequences are 35% tax to cross a now very strong border, when we become president, and the

up, a warningg for china. our next guest says that without reforms that there is a risk of a sharper slowdown. ♪ rishaad: this is "trending business". u.s. businesses are increasingly anxious about the november elections. there willest says be extra pressure on china regardless of who moves into the white house. he is with me now. let's start off with the chinese angle. there will be pressure not just on free trade, but fair trade. >> that is true. u.s., europe, the and other countries, so this is a long-term issue about not just free trade, but fair trade. be pressure. will my own sense is that when you get into this kind of pressure, the country which runs a huge trade surplus is in a tougher spot. that there is a trade war, but certainly the pressure on china is very likely irrespective of who wins. i think china will have to in some sense give. rishaad: china would lose a trade war. there is no upside for them to engage in one. fair trade is best for everybody. we are getting trade numbers later on. ust

china relations. the atlantic council hosted this one hour 15 minute discussion. >> good afternoon everyone and welcome to the new school year. i told my daughter said early this morning walking them to the bus really early. i am john, chair of the atlantic council. we're delighted to have you here this afternoon. today's event, the art of cyber war, cohosted -- are part of the councils theories. a broader effort to examine ongoing affairs and relations. i would also welcome all of those who are watching online. i encourage you to join the conversation on twitter using the # ac cyber. last september president barack obama and chinese president reached an important agreement to curtail commercial cyber espionage. while many initially doubted the effectiveness of the deal, recent reports by the private sector and the department of justice indicate a sharp decline and try these cyber attacks against u.s. companies over the past year. china's neighbors in the asia-pacific region, however face a different

important place brightest can and come to china and learn about china. you know, for 200 years it was not a good bunch of centuries for china, for a culture that is 5500 years old it dominated the gdp.with 25% of global by 1976 they were down to about 2% of global gdp. so it has had a huge rebound. and i think part of the program is that it is one of the few times that the best and brightest have come to china, over a long period of time, with no desire to exploit it or have it just be a market. it is really to learn from the chinese. betty: learn to innovate. stephen: yes. so this is very much valued in china. betty: are you worried that that will become my do not want to say broken, but it will be in jeopardy given what is going on in the politics here and at the rhetoric we have seen out of both candidates at -- are you worried about that? stephen: i am not surprised by it. one reason why i wanted to start this is i could sense of the populism in the u.s. certainly and is spreading to other countries after the financial crisis. it is only a matter of

. -- banks in china. it is a record. there is a case in point they point to which is the shanghai development anchored in the last three years, that bank has increased its short-term barbering by 75%. the other side of the equation is that third customer deposits have increased just 24% over the same time frame. it is a balance that some with -- some would say is unhealthy. we have seen the authorities over the last year trying to keep the seven-day repo rate her 2.4%, so relatively low, as they try to increase liquidity and support the economy. the flip side is you see some liquidity going into bad loans and some of china's shadow banking, and if those product start to unravel, there could be significant problems. angie: i mean the latest news joins the warnings on the health of the chinese banking system. can we expect worse here? that's right. we heard from the bank of international settlements last week saying there were concerns about the growing risks in the chinese banking sector. we heard from s&p

it seems the way china is working. there is an exemption under the unsc resolution 2270, allows north korea to sell coal and iron ore. china continues to import north korea's coal. i ask, mr. ambassador, what would be the impact of a complete ban on china's import of the coal and iron ore, and is the administration working to this end to get rid of these loopholes and exemptions? >> yes, we are indeed working to address the problem of north korean coal exports generally, and specifically to china. if in sanctions you follow the money, the money takes you to coal. it also takes you to some other sectors. but your question was to coal, so i'll stick to that. the most effective way would be, of course, to address this through a new security council resolution. nscr is generally accepted and legally binding. if that is not possible, there are other options. we can seek to convince chinese individual companies that it would be in their own best interest to avoid dealing with the most suspect north korean coal exporters. and

some of the ten asean members have territorial disputes with china over islands in the south china sea. beijing has built airstrips and radar facilities on artificial islands. in july, an international arbitration tribunal, dismissed beijing's claim to most of the waters. asean foreign ministers were divided over the ruling when they met shortly after. the sources say the leaders will likely avoid detailed discussion on the ruling. they say the leaders are expected to agree to speed up talks with china to adopt a legally binding code of conduct for the sea. the leaders of japan, the u.s. and china will join the others for the east asia summit on thursday. >>> a spat between the filipino and american presidents has taken some of the attention off the summit's agenda. barack obama canceled what would have been his first meeting with rodrigo duterte after duterte made profane insults against him. now a spokesperson says the filipino president is expressing regret over the comments. >> he regrets that his remarks to the press have caused much controversy. >> duterte made the insult in a ne

i believe that we do have leverage with china. i believe, based on my extensive discussions when i was secretary of state, there is even a conversation starting within china about how to handle the changes in the north korean regime. china has no interest in seeing the kind of build up which we are going to be doing. i will stress this. we will not leave our friends and allies unprotected. we will do everything we can to put in the most effective missile defense system against northhing -- anything korea does. china is not happy about that. we have a lot of leverage and be will exercise that leverage. we will put together the kind of negotiations that i think can lead to a beginning of containing and controlling the behavior of the north korean government which has a danger of affecting everyone including china. thank you all. >> do you have a responsive donald trump appearing on television? [laughter] >> every day that goes by, this just becomes more and more of a reality television show. it is not a serious presidential campaign

this is the 14th complaint against china. wto,feel by going to the it's a more direct avenue in response to the claim that they're violating those rules. is the largest agricultural export. china is an increasingly large importer but there is trade friction between the two, especially in a highly charged political election year. big exporter. they say through tear of cut and remove result trade barriers, china has gone from a $2 billion year market to a $20 billion plus market. that sounds like a great situation. the backdrop to this is u.s. farmers have seen their incomes in commodities like wheat and corn. u.s. wheat prices hit a 10 year low in july. corn also in year a nine-year low. years inventories at a 16 high. also september 1. they're importing and exporting and selling wheat of what is the political risk ones we expect from china? >> you run retaliation. the ministry of commerce in china is expected to announce a decision this month are potential terrorists for imports of u.s. drives. basically an animal feed byprod

-china relations. the panic council host at this hour 15 minute discussion. >> good afternoon, everyone. welcome to the new school year. i told my daughter's religious learning block to the guys. i'm jon huntsman, chair of the atlantic council. we are delighted to have you here this afternoon did today's event, the art of cyberwere cohosted by the brent scowcroft center for asia security and cyberstatecraft initiatives are part of the councils series. a broader effort to examine ongoing affairs and cross state relations. i would like to also ballclub all those watching online. i encourage you to join the conversation on twitter using hashed out a few cyber. last september president barack obama and chinese president xi to curtail cyberespionage. while many initially doubted the effect of ms. of the deal, recent reports by the private sector and department of justice indicate a sharp decline and cyberattacks against u.s. companies over the past year. china's neighbors in the asia-pacific region, however

for china and its 1.3 billion people, going to the movies has china is expected to become the biggest movie market in the world in the next two years. well, unsurprisingly, hollywood has taken notice, partnering with chinese studios and making blockbusters as much for the chinese audience as the american one. but as holly williams first reported last april, the u.s. film industry is also facing competition from a new generation of chinese moguls and movie stars with big ambitions. hollywood, rising in the east. >> holly williams: in the remote hills of eastern china, this is a magic kingdom that not even walt disney could have dreamed up. it's called hengdian world studios, and at over 7,000 acres, it's the largest film lot on the planet. a palace for every dynasty, a village for every era, where last two decades. these sets aren't flimsy facades, but full-scale brick and mortar replicas of china's imperial past. and when the films wrap, a brief silence, before the sets are flooded by 15 million tourists who visit every year. it's all the domain of xu wenrong, a one-time farmer who re

china has? mr. russel: what i've heard xi jinping say repeatedly is that china's three no's are no war, no chaos, and no nuclear weapons on the korean peninsula. i think they have multiple objectives that are in conflict with each other. part depending on north korean behavior, in part depending on the pressure for the persuasion from the united shifts in the chinese from a bias towards maintaining stability and preventing -- sen. menendez: in my mind, equally the same to some degree. when you have war, you generally have some degree of chaos. no nuclear weapons. there are some that suggest that if that is their dynamic, then allowing south korea to pursue the possibility of nuclear power , nuclear weapons, changes china dynamics as to how far it is willing to push north korea. mr. russel: i think the chinese are very mindful of the risk that either south korea or japan might distance itself from the u.s. nuclear umbrella and pursue their own capabilities. that, i believe, what to motivate china

his eighth face to face with china's president. as you mentioned, tomorrow he has a meeting with turkey's president. they'll discuss the fight against isis in syria and iraq. trial come up -- likely to come up, turkey's insistence that it extradite the moderate muslim cleric living in pennsylvania that the turks believe is behind the failed coup in july. that's likely to come up. as you mentioned, he's going to have his first formal meeting, the first meetings period with the uk minister, prime minister teresa may. the brexit trial come up there. there's not going to be a formal meeting but an informal one with russia's president putin. they'll talk about syria and ukraine. a lot on the agenda from counterterrorism to trade issues to climate change. of course, tpp. not all of the nations here for the summit are party to the tpp, but several nations that will be at the asean summit are part of the tpp. this is a centerpiece of this pivot to asia, this rebalance to asia. the u.s. believes it's very important to close the deal, to hav

we have these regional tensions with china, the south china sea. you mentioned north korea as a diary or this calendar event? it is held every two years. it is an opportunity for the u.s. military to get its own forces, the various branches of the military, to work together and work off the same page. instead of inviting other nations or partners -- rishaad: a couple of technical issues there. we do apologize for that connection. up next, a tough time for wealth aregers, how banks rebalancing their strategy. this is bloomberg. ♪ rishaad: let's get to the business flash headlines. the world bank says its current president is the only candidate for its next elections. will be interviewed ahead of the decision at its annual meeting next month. by thee was put forth obama administration and is widely acted to win. the world banks top job has always been held by an american. inting office space singapore is getting cheaper. fell by 7% in the first half of this year to $775 a square meter. hong kong went close to four times that and still rising. the b

donald trump has repeatedly said that he's worked with china, the bank of china which is a tenant in one of his buildings, he'll do it out of a position of toughness, which is something that -- >> he personally knows china -- >> he doesn't owe china a cent. that story was incorrect. again, it's not true. >> you're going to maintain that the trump companies have no debt to china whatsoever. >> there are companies that may owe china. but he's not obligated for a cent for that debt. >> let me show you a moment what he had today with hillary flynn. >> does donald trump know more about isis than you? >> that is a statement that he made well over a year ago as he got into this -- as you get into the primary, so, i put things in context. i've been with him for almost a year now and i will tell you that this is a very capable guy. >> so boris, general flynn refused to agree with donald trump that he knows more about isis than the generals do, do you think donald trump knows more about isis? >> it's interesting, you're key to pick and choose small things donald trump. hillary clinton told con

we're disturbed about china. on the other hand it would be hard to manage the north korean problem without it. we have the economic interdependence. this is an environment in which the united states is not very practiced at the kind of great power rivalry we're starting to see. >> it would seem your reference to the interwar period is also concerning if not alarming because it was the interwar period that led to the second world war, led germany to go in the terrible directions it did. >> exactly, over -- the munich analogy is overused. nonetheless, the lessons of that period do apply to a degree but once again in a very different world. the other big factor that's changed here is that great powers now share the stage with so many non -- so many actors who aren't states, terrorists and so forth, ngos, multinational corporations and also the fact that technology through things like social media has empowered small groups of people and individuals in ways that are unparalleled in modern history. >> peter, dennis, w

many of the laborers are from elsewhere in china. so much ethnic chinese have migrated here for work that they are now the primary population. vegetable vendors often wind their way through the streets of lhasa. tibetans once ate vegetables that could be grown at high altitudes such as white radish and chinese cabbage. now they can get all kinds of produce. one tibetan man is trying to get more people to try a traditional tibetan staple called naked barley. tibetan farmers modified regular barley so it could be grown at altitudes up to 4,500 meters. people here take pride in this agriculture accomplishment. local farmers flou now grow watermelons and cucumbers in greenhouses. the naked barley promoter is creating new recipes and offering them at a restaurant he runs. he also makes traditional cheesecake and dishes he discovered while studying in beijing. but his top selling item is naked barley bread. >> he dreams of one day selling this bread in other parts of china. in 2006, a railway line connected lhasa to shanghai province in we

china is doing, they are building in the south china sea a military foretruss, and we have power over china because they suck is drive, and i have the biggest bank there has my tenant and i have great relationships with china, and what i say they know is true, and they just renewed the release and i couldn't believe it, and they obviously like the building. we have tremendous power over china because they take so much -- they suck so much money out of the united states. we should get china to fix that problem, and we should use our economic power because without us china would be in serious trouble. they have -- they take tremendous amounts of dollars out of the united states and without us china would be in tremendous problems, but we don't have leadership and people to get them to do that and when you ask the chinese, oh, we don't want to get involved. they don't want to get involved. in the meantime this guy is developing the real deal. two years ago they were saying they couldn't lift them off the rocket ships and now it's the real deal and i think he is being helped by iran, and

exports to china remain weak. south korean manufacturers are facing fierce competition from their chinese rivals. global money markets have e stabililized but the hwan hahas remained strong while the yuan has weakened. this is making it tougher for south korean companies. >> and regarding gdp they expect moderate growth this year. >> translator: i believe the economy will expand 2.7% to 2.8% in 2016. the question is whether it will continue to pick up through next year. i think this will be difficult. both the south korean government and the central bank seem to believe that economic conditions will improve next year. but i think that view is too optimistic. >>> you can catch our report again online together with the full transcript. look for nhk world and "business wrap." >> that's a look at business news. i'm going to leave you with the markets. >>> eel is a popular dish in japan that many worry it might not be on the menu for much longer. wild japanese freshwater eels are now endangered. to boost stocks million

xi says china will remain firm on its aim of denuclearizing the korean peninsula. but with the options running out, china's leaders' ability to deal with north korea seems increasingly limited. >>> north korea's latest nuclear test was at the top of an agenda at the emergency meeting of the comprehensive test ban treaty organization. ambassadors and other representatives from more than 100 countries, including japan, the united states and south korea, took part in a meeting. the latest observation data on the nuclear tests was reported as the gathering. >> the more tests that's done by the dprk the more they improve the technical capability with regard to developing nuclear weapon. it underscores the urgency and the necessity for the force of this treaty. >> the treaty was adopted at the united nations general assembly in 1996. but as the u.s. and some other countries have not ratified it, the pact has not come into effect. >>> a passenger train derailed in northwestern spain. at least four people have been killed and more than 40 others are injured. the derailment

china firing a warning shot at the u.n. china punishing five electric carmakers for skimming $150 million in subsidies. it was an idea of what you think about the top stories. follow me on twitter. getting to breaking news, the interest rate and south korea was one and one quarter half percent. it remains the record low 1.25%. what is the bank of korea saying? it is saying we have pretty much stable forecasts here, and this is probably lied with the economist we have been talking to. more breaking news coming in from the government there. they're suggesting there is an earthquake that could be an artificial one north of the border. sherry, what is going on market wise there? we are seeing asian stocks falling for the first time in four days. it is at the lowest level in almost two months. downealand being dragged by industrial, down 4/10 of 1%. the nikkei has started in positive territory and is negative now, declining for a third consecutive session. the yen is strengthening. 1% --is also down with an more than 1%. have ch

this is the fifth-largest bacon china. it is the number one bank in terms of number of branches -- more than 40,000 ranches across china. branches across china. there are half a billion retail customers. this does not necessarily translate to efficient see either. there are concerns with the nonperforming loans with a slowing economy. angie: it is all about the quality these days with the chinese banks. how postal savings addressing that? you can kind of see, we can take you into the bloomberg terminal and you can see the comingof the sbc -- psbc to market when china's growth is that 6.5%. more than a decade ago -- also, the use and offering of rough management projects is must -- much riskier. in this a lot of risk bank that we do not necessarily know. angie: that could explain today. thank you. let's get the latest from the markets. day for asiant equities. we are seeing a big downturn in most of the major markets, led by this 1.5% decline in japanese equities. more than half of the stocks are trading without rise today.

the south china sea. before he left president obama sat down exclusively with us and talked about how china must accept more responsibility along with this increasing power. >> if you sign a treaty for international arbitration. it is not a reason for you to go around and flex your muscles. you have to abide by international law. it's not because we have to. it's because we recognize that over the long term building a strong international order is in our interest. i think it will be in china's interest as well. >> that was a very different story from yesterday. the president was given what's being called the bare bones reception when he arrived. tensions boiled over between members and chinese officials over security access. white house correspondent explains what happened. >> still lots of buzz surrounding this in terms of how chinese security officials have been handling certain events and not granting the kind of access to the u.s. press that travels with president obama. they normally would get. they

china, meanwhile, is laying blame in the south china sea. will president obama confront them? >>> also, does turkey concern obama? its nato's second largest army and a crucial american ally. i asked president obama what he thinks is motivating the unqualified support that working-class whites seem to have for donald trump. >> i think we have to pay close attention to what is going on. >> then, understanding trump's trip to mexico from the mexican perspective. former foreign minister tells us what his country thinks of donald trump now. but first, here's my take. as we are all consumed with the ups and downs of this bizarre campaign, president obama is on his last trip in office to asia. one of the purposes of the trip is to breathe life in to one of the ideas that has animated his foreign policy, the pivot to asia. it's a big idea and it's the right approach but obama is now the last man standing who is willing to push for it. foreign policy is consumed with momentary crises. in the long run, the future is defined by the winners, not the losers. and when the flashpoints of tu

they are launching in china now. china-based ceo. his ideas that come if you would too long, it's awkward to happen. but if you go in early, you have a chance. example,t uber, for waited too long. do you think tech happenings have a chance if they go in early? robin may be an exception because he's been to china many times. but it is a struggle. any start up should focus on one thing. the u.s. and china are by definition completely different. we would not recommend our chinese companies to think the u.s. market initially. but if they wait later, the catch-22 is that it will be too late. emily: so what your device? kai fu: -- so what's your advice? kai fu: they should invest with us. or license technology to a chinese company. if they use company -- of a u.s. -- if a u.s. company is really ahead, take a 20% share in a chinese company, maybe a startup, and give the technology to them and let them run wild with it. emily: talking little bit about the companies in your portfolio. you have 300 startups. name a couple that you find the mos

for that he was detained in mainland china for months. his forced confession was a warning to others. china sent him back to hong kong to spy on his customers. but instead, he went public and now lives under police protection. he says the g20 should talk less about business and more about values. speakse countries should up for hong kong because we have -- don't have the power. when world leaders visit china they should talk more about human rights. they have a moral responsibility to do so. reporter: china has warned its guests to avoid politics, and in these troubled times, rights are low on the summit agenda. but the war on western values hangs over this gathering, undermining china's ambitions for global leadership. carrie gracie, bbc news. laura: hillary clinton will surely want to represent the u.s. at the g20 next year but must win an election at home. guideg two just-released documents, the democratic nominee to not recall every briefing she received on handling government records when secretary of state, due to a concussion she s

now there is a bit of questioning the demand needs of china. overall from an investment in perspective, this is not a huge part of global growth and earnings story unless you are looking at energy companies, because in the u.s. earnings have been positive if you strip out the energy-based company's. focusing on the aspects of the indices as a negative investor that are not related to energy or if they are related have been fundamentals are -- and are in the right -- tankers or storage facilities, then you've got a good investment strategy going forward. .ark: inflation information lower pound, star industry prices. it will seep through into the cpi. this is ryan's third chart. he is trying to blow us away today. ryan: what the chart here shows you is the blue line is brent. it has been falling could we saw you kate cpi decline on the back of that. -- falling. we saw uk's cpi decline on the back of that. all of the pass-through from lower oil prices into cpi, that is now gone. do you think this is going to be meaningful in terms of inflation goi

emily: one thing you have on facebook is china. you guys have found a way to penetrate china. how -- how would you rate your progress in china? do you feel like you've cracked the code? do you feel like there's a lot more work to be done there? jeff: i would hardly suggest we've cracked the code. china is a very challenging market. a highly competitive landscape. and it certainly exceeded our expectations. we were up to 18 million members we started roughly a year ago. we had amassed roughly 4 million members in english over 10 years. so we have seen that substantially grow by virtue of localizing our core offering. in terms of our core businesses, talent solutions, marketing, etc., there is a lot of room for growth as well. it is still in the very early days. we have been focusing on getting the membership experience right. we are pleased where we are but there's still a lot of work to be done. emily: you've mentioned you had to make compromises in china and you had to ask users to censor themselves based on what the chinese government wants to see or hear. how do you actuall

yes, i mean china also. china also. china is a very important part of that region. so how does it differ? the first thing i would say is that a couple of other members of the task force are very helpful, gary in particular a bob in helping clarify exactly what the u.s. policy is right now. i think we should say up front that we have deterred major war and that is an accomplishment. that is something that has been done. but we haven't done is change the north korean calculus to continue to defy, not the united states, but the united nations. they are defined the united nations security council resolution. both on the nuclear program and on the missile programs. that intensifies. so what has changed? i think the main thing that i would emphasize here, we have four major steps and a lot of other steps in the comprehensive and adam did a terrific job of bringing them together. but what we emphasize in the op-ed this morning that mike and i had in the washington post is that the steps have to be taken in parallel. this is not sequential. we cannot wait until the sanction

it has been a long wait for this, the fifth-largest bank in china, china postal savings bank of china. it is the largest bank in terms of branches, more than 40,000 branches. angie: we will be watching as we watch this ipo debut and hong kong. thank you for that. we will touch base with you again. coming up, the road ahead. we talk exclusively to baidu about whether they will do fine age of artificial intelligence. markets in shanghai get underway. we have the opening numbers next. this is bloomberg. ♪ ♪ angie: all right, there you have it. the postal savings bank of china, oversubscribed 2.6 times, and there you have the smiling faces of the of initials ready ng that bell as they get ready for the official start of the hang seng index about their open in 30 seconds. as you can see, they are ipoaring to celebrate the poised to hit the market here, raising $7 billion in this hong kong ipo that will be the world's biggest first timeshare sell this year. the beijing-based lender is selling at the lower end of the range. there you go. trade foral start of postal savings bank of china.

china was strong for pepsi. now that the latest deceleration that has been the industrial side, forget pepsi co or yum. starbucks, who cares. nike. how about the capital goods? you know what, i hear good things here too. i think it's so critical that cap pit ar, caterpillar is doing much better in china. see the break-out in that stock? it's all china. it's been getting slammed. cat's total machines increased. something no one is talking about. despite being down double digits everywhere else, considering the big earth-moving equipment caterpillar makes, that's a powerful sign for the part of the chinese economy that many people think is languishing. it's not just cat. earlier this month cnbc's own delivering alpha conference, the founder of impala asset management pitched a stock called tech resources. tck is the symbol. it was one of his favorite names. here's a company that's low cost miner mainly of copper and zinc and the thing that's used to make steel. all the commodities are controlled by chinese demand.

rishaad: not long until china comes out with their numbers. china editor is with us now. what sort of should you expect to be painted? get more evidence whether the rebalance is on track or not. we are expecting a pickup in factories and industrial production. it will likely come through at 6.2% from 6% a month earlier. an investment for of 7.9%. that is slow by chinese sanders. -- by chinese standards. rishaad: it is not a happening. >> it is virtually zero. it may go to zero. we have the state stepping in. we will probably see that trend again. what it tells us is monetary policy ease -- is still effective. those effects are tapering off now. we may get the aggregate financing numbers. we are looking for a bit of a comeback on that front. a seems to be going back 10.5% back in july. that was the shocker of the july numbers. the big follow-up design credit aggregates. rishaad: that take a lot of pressure off chinese policy makers. did we see a bit of a shakeup from these numbers? >> anything is possible, but the most recent signals continue to be this juggling act. they'

this could stabilize china. history says are, there are a lot of top-tier customers in china who are willing to pay up for the product, and apple is kind of a barbell strategy here. they want to meet the needs of the most demanding customer, and what we saw today was a product squarely targeting that most demanding customer. they also want a full set of products for our kinds of customers in china, but very skewed toward the midrange to the high-end. revenue,t could help because probably in the next few quarters apple will skew more high-end in china, so you could start seeing stabilization. emily: it's interestingemily:, ben bajarin earlier said the big screen is not really motivating chinese customers, at least the so what is? plus, alex: the status symbol. i have been wondering, looking at this new tool lends system -- dual lens on the rear of the camera. if you are not willing to get a larger handset and the discomfort which may come with it, this might incentivize you to go for the higher-end model, for the

narrator: and china drives the demand for ivory. knights: china now is estimated to be 70% of the world's ivory market. there is a tradition of ivory carving, but also, of course, the massive growth of the chinese economy. narrator: around 300 million people make up china's middle class today. that's more than the population of the united states, and they are looking to spend their money on luxury goods. ivory has particular appeal because of its long history in china. it has been carved there for more than 2,000 years, expressing many core chinese cultural and traditional values. knights: i think in some cases, people are speculating that ivory is almost like a currency that they can invest i in fofor the future. alie: you walk through beijing and in some of the stores you see ivory mantelpiece, exquisite carvings going for like 50,000 u.s. dollars, 60,000 u.s. dollars. knights: but in addidition to that, you have thihings like chopsticks, bangles that people wear, small carved items. all these things are made from ivory, and unfor