to rise ation china is not the 1st country to claim land in the south china sea and china is not as the 1st country to put the proly weapons. is to fold necessary defense this is our land and we've got to defend them so china's military has been on high alert to us mysel destroyer sails near china's artificial islands in the south china sea united states say the operation was just a freedom of navigation patrol but beijing says it as a violation of china's sovereignty and stability in the region why is that where the thoughts. well china and the united states certainly have a different opinion is regarding this kind of rationed the use a u.s. believes that as a challenge in china as the so-called excessive claims in the south china sea by china believes that china is defending its sovereign rights so we are. not talking about the same saying in different lights i personally headed charges delegations that itoshi shion with american counterparts on this very important issue what i can say is that. this very core concept oh you and conversational lova see that is freedom navigation both c

it makes china seem like a bad pla place. china could, for. president trump wants to see a healthy stock mark. they want their design off the table for the 2020 elections. both sides want to wrap it up but neither donald trump nor xi jinping can afford to look weak. >> thank you very much for taking my call. i'm not an economist, but i was just wondering, no one seems to mention, what impact does china's erode initiative have on the economy, and also, china is prepared to open an arctic silk road once things get going. i haven't heard anyone speak about that. thank you. >> you may have to explain also those things. >> sure. what china calls its belton road initiative is a program of china's norms recall and sort of creating a fighting-centric regime in the middle of that very vast to build very mixed record to date. there is no great shining success yet from these loans. there are one or two stark failures but china is also adjusting its lending. so if you mean what effect do those chinese loans have on the american domestic economy right now,

china was admitted to the w cio on the basis of chinese presentence that china would transition from being a state capitalist country to being one where foreign competition was welcome i mean just to put this in perspective in 2001 china agreed that its entire telecommunications sector and its entire banking sector would be open to american companies you know try opening a bank account in renminbi at a us bank in china it's impossible but they guaranteed that by 2007 that would happen now you know when is the time right i mean i think that this should have happened you know under the obama administration once it became clear that china was not going to live up to its commitments but at some point china should either obey the rules that it has committed to and you know that is. say and shaping or it should just admit that they're going to abandon the rules i mean i think it's kind of ridiculous when she gives major policy speeches talking about how you know china is committed to internationalism and rule of law when in fact it does nothing of the kind but professor i mean this argumen

google and he blocked in china just like facebook or instagram china's restrictions and tough regulations make it hard for american tech companies to reach more than seven hundred million chinese internet users relaxing those restrictions is seen as crucial for the future of the industry. many in the industry here are so committed to their jobs they brushed off trade concerns are still very alike very passionate about our work and so what happens over there is not going to impact our the quality of our work or our product trying to make the best as we can and then it's what the developers want to focus on new hard to or better software solutions and not politics. sometimes new doesn't necessarily mean better in the australia the central bank has confirmed that its latest batch of fifty dollar notes as a spelling mistake on the one word is misspelled sweet times across the world millions of notes been printed but the bank says it will only correct it in its next print. it just goes to show sometimes you have to read the fine print australia's high tech polymer banknotes are extremely hard

china is an important part but some reporters do express concerns about china's economic might. the country sells a billion euros worth of consumer goods to europe every day should we be afraid of china i also who grew up in beijing and now lives in germany. i want to find out if china's giant silk road investments in europe are a wakeup call if china or a partner or a rival. humanize. china's a partner aspiring to be a rival trying to be a world leader that's already a kind of rivalry. and europe has good reason to be cautious. not because of the initiative but because of the possibilities that might accompany the initiatives. even the nobody in china's ambitions might not be limited to the new silk road high the country could aspire to lead european and domestic markets. where will this leave european industry especially industry in western europe. and last but not least it's also possible the chinese technology will come to europe to the chinese tech takes top spot europe will have given up one of its last remaining resources and that would be very bad because of this let the

which is putting a squeeze on wow wow it's amazing that so as manufacturing is leaving china now china's tariffs on western goods are allowed under the w t o the world trade organization rules for quote developing nations so yeah it's time to sell a developing nation in your eyes bay so i just said i think the answer would be no right hey i absolutely know i've argued this china hasn't been a developing nation for at least a decade you know you look at all that the top 20 tech companies half are from china the other half are from the u.s. china is got some of the most advanced company that the largest economic market in the world there are 50 percent of most global markets you know when you make 5 times the amount of electric vehicles in the rest of the world combined the highest rail yeah there is a there's economic income gap but in china but the same thing in the u.s. so china has been hiding behind the oh they thought they and they have successfully in international trade system and they claim were developing countries we need 25 percent duties against you and usually a few percent a

can china really afford this? well, first of all, allow me to share with you one secret of china's reform over the past a0 years. that is, in china we always tell ourselves, if we want to become rich, build a road. so building infrastructure connectivity has been a top secret in china's reform and transformation. they are calling it debt diplomacy. that is really what it's about, isn't it? you want to gain power around the world by actually indebting a whole host of nations, in ways which they are beginning to question. let me answer your debt issue a little bit later. now, i think china wants to tell all the countries in the world that, if we want to share with you any secret, it is building up your infrastructure. i think connectivity is good for all the countries involved in the belt and road initiative. now, where you build infrastructure, or any other major projects, debt or equity are equally important. so, if we look at the debt, the chinese debt normally is lower in interest, more generous in terms, and it

china relationship. but as roy pointed out, this has at least the potential to seriously derail any prospect of us china cooperation. certainly, the friction in the relationship to malicious china's willingness to make risks or to cooperate with the united states. china is careful about linkages, but it does take a holistic and long-term approach. the question that the report tackled head on is, what happens, what should we expect and do if us north korean negotiations begin. i won't even say resume because i am not much less convince than some of my friends that there really is a negotiating or was a negotiating process with north korea. the chinese who are great believers in the principle that judge is better than war war will be relieved but i think that we will find them to be deeply deeply worried about being frozen out. of a deal between jenny young and washington. china will need to protect its own equities which are very considerable as joe had mentioned to shape the outcome is and therefore will

pullingthink that is russia from china or china from russia. russia and china are not anti-russian or anti-china actions like balancing. however, some might be more calibrated so there might be some reforms that will not be supporting china either that some be supporting order.tric since russia is one of the powers, it could be something that might also contribute to china strategy. russia, iibrated but russia woulde balance china with united states or of china would balance russia with the united states. another thing to say about this technology, we are witnessing more and more chinese technological competition. this is a strategic factor that should be taken into account. because, as russia is having guessing, there are no other moree may have russia-china technological cooperation, so russia would have no other option but to have more technological cooperation with china than europe. i guess russia would rather have it with europe. but it is not the auction. -- it is not the option. foret me commend csis inviting a russian speaker and givin

treasuries but some claim that that would harm china more than america what china's doing now. ever is buying gold and for the 1st time start to publicly announce saying they have bought lots and lots of golf so let's talk about currency wars the dollar of gold where you see that of all of them well gold in particular we talked and we were way ahead of the curve on this man to talk about it years ago china was stockpiling gold not evidently through their central bank but they were telling all other state owned banks to buy gold buyable china was the largest producer of gold everything stayed in country and they were importing as much as they could get so people would look at the goals to succeed ok china's only got you know x. amount of tons in their central bank reserve but everything wasn't held there it's all held in the state owned banks and it sold every little regional bank every bank outlet sells gold bars you know they call the chinese government made a call it holding gold to the people and then when they saw this currency were coming to go believe they've been stockpi

china with their. walking back of some of the commitments they had previously made so there's a lot of concern obviously on both sides i think ultimately a deal gets done but regardless i think investors should look at the power of earning dividends as a potential hedge against any global unrest from an economic standpoint. real estate. utilities. things that really are not dependent upon china's. export import business are going to be probably safe havens for u.s. investors. local businesses health care is another one i think is probably a safe haven and something i saw him look at as the trade tensions ramp up now tom you know there's the u.s. china process is going on there's also u.s. separately u.s. europe talks going on on that trade relationship in theory of the chinese situation were to be resolved or this process would just fall apart it's possible that those preexisting tensions with europe could then come to the fore maybe on the main burner would be china now would be. u.s. europe trade jun

"china's to blame"? >> yeah, the message's very simple, is that, "the elite shipped the jobs overseas, and i'm going to bring them back." >> thank you, indiana. >> sullivan: that message helped propel trump to the presidency. and once there, he assembled his team of advisers on trade. to oversee economic policy, he idbrought in the former prt of goldman sachs, gary cohn. >> the job had in the white house was to convene everyonesi who lly had an onion on an economic topic, and try andme p with a recommendation or two, or present to the president completely diametrically opposed opinions and allow the president to make a decision. >> in the roosevelt room, we would have a trade meeting every tuesy, and then we would tak some version of that into the oval in a smaller group.ak if youall the other nastiness on the things like the paris accord and tppthis other stuff, roll it up, and put it to the factor of ten, they don't compare to these weekly nasty trade meetings. ♪ >> sullivan: from the start, the week

tom shepherd sells products to china, and he so imports raw materials from china. >> our sales to china have gone down, and our raw materials from china have increased in cost. >> sullivan: how big of a problem ishat for you? >> several million dollars of, of profit lost, in a year. >> sullivan: okay. yeah, you're getting it from all sides, then.ea >> that's right. if what we're trying to do is protect the american economy, this is a bad way to do it. >> sullivan: but despite the uneven consequences, president trump was all in on the tariff strategy. it's a strategy he's been talking about for years, as r back as the late 1980s, when he first tested the possibility of becoming president. >> our guest, the famed developer donald trump of new york... >> sullivan: back then, trump's target was japan and its trade practices. >> the fact is that you don't have free trade. we think of it as free tra, but you right now don't have free trade. and i think lot of people are tired of watching other countries ripping off the united states.gr this is t country. >> he believed from the beginning that

china does something in the south china sea, we do something in the south china sea. cost him position -- cost imposition can be something else as long as we are doing it in a way they understand. so much.you if there are follow-up questions we did not get to, someone was not called on, please follow up with me after. >> monday night on "the communicators, we talk about the challenges facing small and .edium-sized telecoms companies >> when we think of other issues in washington such as open internet or net neutrality, that debate is important to smaller companies because it has a traumatic impact on the ability of our members to obtain financing to be able to provide more broadband in smaller communities. >> it is becoming more and more difficult for an operator of our size to compete effectively in the video business, given the ever increasing content costs. >> watch "the communicators" monday night at 8:00 p.m. eastern on c-span2. >> now, a house appropriations subcommittee hearing on the agency preparations for the 2020 census and the legality of a citizenship que

on the china side because china is working with the. any of the part of this all over the world the united states is closing its doors on many of the countries it james says so to say the same question because fred brings up a very interesting point here because if it's we're going to get into this binary world here there's a lot of countries in the middle and a lot of these countries though they might be our allies of the united states they do far far more business with china this is creating this is creating a huge dilemma for many parts of the world go ahead james is a huge mess and i. think it's. more the intelligence assessment 2019 said china is a big threat and the united states government has to do every thing any day every day to push back on that threat and i think we're in a war a trade war this is not about soybeans this is a polarizing the economy of china. cyber war a technological war against a while way this is not about one company walk away this is about crippling their technological advances in 1959 with split nic the

into provincial levels oh inspecting china monitoring china's a 3rd of a tease. something like this it's just really no country would accept such such as such terms james i mean again i used the word hubris here i mean but i suppose it wouldn't be chinese and. investigating american companies in economic behavior it's only a one way thing right. i mean. you know when you look at trade war it's about money and if you look at the biggest pot of money in the war oh it's the military and because you know complex in the united states yesterday trump in an interview said there is a military industrial complex and they like war and the gravy train traditionally historically for this military industrial complex have been scary russia and china you know the vietnam war was not about vietnam it was about the domino theory the chinese were going to come down and eat up and then malaysia and indonesia and the world was going to go to hell now they are mean needs a bad russia and we're surrounding russia with army units and the united states navy needs china as the bogeyman a

you have sets of those principles which china has violated over time, and now china seems to be moving in a direction in which it is creating new norms and expecting those that engage in trade with china to adapt to the chinese new norms. it's not for the united states or any country to tell china what its economic model should it is fair for the united states to take stock of the distortion china is making in the international trade system, the economic system, and to take measures to try to either get china to move towards and converge towards norms that are recognized by the liberal economic order or to develop countermeasures against that. >> would you expect the u.s. to south chinao the sea the question of taiwan? >> i don't think those are issues that are transformable from the -- transferable from the trade debate. they define interest in particular parts of the world or functionally defined interest in ways that benefit them in that these are not socially transferable. that said, i know the united states does remain concerned about china's very aggressive military buildup and r

are not made in china. this then the anti-american rhetoric has been ridesing i want to show you a graphic that has been going around social media that was done by the people's daily, which is a communist party paper. it's entitled this is china's attitude towards the trade war the translation is negotiate, we can. fight, bring it on, bully us, you wish after 5,000 years of trials and tribulations, what kind of battalions have the chinese people not been through? le state media has been whipping up the nationalism likely because it wants to prepare the public for a long hard fight against the united states and also to try to placate some of the critics here to tell them that china is prepared all of this comes as the two sides have been escalating the tariff tiff, the ustr that opened its comment period on tariffs of $300 billion of goods. china unveiled its tear ifrs that you know that now pretty much means that alof the goods have extra tariffs on them china is prepared for a comprehensive response that's

with a review of this week's top stories just ahead is a reporter with maxim safety talking trade with china and the latest iran tensions and more stay tuned. max kaiser this is the kaiser report krypto spring is here it is just bleeding right into our lives we can hear the lawn mowers outside and they're getting ready for crypto summer and then crypto sente zia crypto parallel dimension and the bit coy and obama it's all happening it's all happening right now stacey in the meat space things are coming apart however the meat space is ruled by tweets from donald trump and donald trump is continuing apace the error of globalization is over at least for now we've had many periods throughout the last 4 or 5000 years of globalization then d. globalization and we're now going through a period of de globalization we see these trade wars hotting up you know. basically blacklisted huawei the 2nd largest mobile phone builder operator manufacturer in the world and they're also way ahead of any western competition in terms of 5 g. technology they do however while way requires many many parts many chips

china trade disputes china has called the u.s. an economic terrorist and signals it could stop exporting rare earth metals to the u.s. and that matters because rare earths are used in a wide range of consumer products from i phones to electric car motors as well as military jet engines satellites and lasers now rare earth are a group of 17 elements here are a few of them therion for one is used in catalytic converters and cars bastien site is used in nuclear industry. is used to make magnets and lanthanum is used in camera lenses and so forth now china supplies nearly 3 quarters of all the world's rare earth 120000 tonnes that is the big produces include australia with 20000 tonnes and the us used to be a major producers but now turns out just 15000 tonnes so are rare earth supplies going to be the bargaining chip in the us china trade war our correspondent andrea hang joins us now in singapore and in cyprus we welcome jameel global head of currency strategy and market research at f.x. t m good to have you both on the show andrea

tariffs coming back into china and also when leaving china. francisco, thank you. that is bloomberg technology global link. do not miss "bloomberg at 5:00 p.m. in new york. coming up next, "bloomberg: australia," and flooding in the u.s.. we will dig into the details next. this is bloomberg. ♪ . . . at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. there is reward. ♪ ♪ beyond work and life... who else could he be? there is the moment. beyond technology... there is human ingenuity. ♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. take your business beyond. >> it's 8:30 a.m. on a cool sydney.here in the markets open 90 minutes away. allen in sydney. >> i'm coming frou new york where it's 6:30 p.m. you're watching "daybreak australia." >> jess? >> thanks. the editor of china's global says beijing is seriously considering estricting rare ea

desk china c.e.o. alan seen a consensus during new york watching week to unpack the details of entering the world's largest market. part of what i do is look to expand the reach of coin desk around the world and we try to find territories that are under-served in the sense that there's a lot of block chain and crypto development going on in those territories but there isn't a lot of. hard core coverage of the sector in local language and so china is a great example where there is just so much happening in blocking development across all sectors and all ways that you can think about. a block chain development and you know. it's certainly available there but only in english and therefore we found a great partner to create a local edition of. just china where we will be producing local content tailored to the local market as well as translating content from the global edition . are we looking at what i want to give this what are we looking at original content or is it just kind of translated from the u.s.

you keep going to read you keep on then that and then china ok and then china's china's all of the other laptops they might not use microsoft any more licensing is a very lucrative business for the united states because they practically have to do nothing and collect money and when you take the licensing away u.s. licensing away on the global market and you try to compete with china no other this i think it is very very short short sided in terms of really going to be hurting a lot of u.s. companies and by banning this and you know they talk about china stealing why would china want to buy along buying 44000000000 dollars worth of chip to install in their form if they're stealing or they need is buy one chip right now and you copied a no they're buying $44000000000.00 worth of chips from c.t. to put into full because they want to abide by the rules and regulations and not to . do today. and to explore into other people's property rights exactly gets go back to james here you know it's very interesting is that if you look at the lecturing that china's been subject to over the years let's

are sending to china. because of that is about trade agreement we need to make improvements on to make sure that american goods are able to be shipped freely and fairly to china. we see tariff barriers, but also nontariff barriers. sometimes these government rules and regulations that prevent american products from being freely and properly sold in china. so what the president has done by bringing on the terrace is bringing countries back to the table to negotiate. that will allow deal to come in place that allow american workers and american farmers to take the goods we are producing here in the united dates and be able to sell them freely and fairly in china, which will ultimately bring a bit more of the balance to the trade deficit, which i think you identified. ast: representative steil, early as next week, the house vote ofve on a contempt for attorney general william barr. more and are seeing more partisanship in the house of representatives. it is not productive and us from doing real work for the a

china you think it does them some issues here is china cannot to change and not for a change such as china's own technology development and also china as a state owned enterprises and certain things but of course this should go back to goshen table but at the moment of both countries and the political environment it's very critical of each other. there's a huge trade imbalance between the two countries president has more than doubled the tires on chinese imports yes what effect is that going to have on china. well certainly as a nation china will suffer more that's obvious chinese. acknowledges some of the challenges that elitist years of the risk and the pressures but they're not and. the issues that it's not just a one way street they believe it should trade should be willing and the space competitive advantage so therefore they think that the u.s. pressure on china isn't going to be the way that it hurts china you know sylvia way plus the concern about the strategic or security issues such as the taiwan and and the cyber man of course us are also becoming clear critical of china's

-china relationship. we went through a long period of expectations that, as china developed, it would inevitably liberalize and open and become more western. that seems to have been an incorrect assumption. china has accomplished the single greatest elevation of people out of poverty probably in human history. something like 500 million chinese in the 25 years since i last visited. have emerged there, by global standards, from poverty to something like the middle class and have produced a huge community of new consumers. that's a great accomplishment. and shouldn't be overlooked. there's a huge range of area where we could and should be cooperating. there's very little focus on areas of cooperation and ways in which we can work with the chinese on things from nuclear nonproliferation to combating pandemics like ebola. there are areas of competition there are going to remain areas of competition and that's fine but we should be clear eyed about it. but we don't have enough of a real conversation with china

china comes up with long term plans and they have 5 year plans 10 year plans and this is part of the reason they've been able to outcompete us because we only have quarterly plans and whatever the shareholder dividends are that quarter and that's all we care about that has always that creates a long term result and consequence which is the dust realisation of america because shareholders were always going to as if they could extract the equity from us industry that was always going to be send over your jobs to china and china that was their plan and they were like thank you thank you all right when i got older just in time mentality of globalization became extractive yes predatory yes you know the globalization of self there's no problem with it if you are but if you abuse it and you screw things up it was only possible only possible post 1971 to do this 1972 of course china becomes opens up to america you know nixon sends over his trade representative in the then they end up becoming part of you know world trade and w t o n all that stuff after that but 971 is when we go off the gol

china trade deal? thomas: the equity market has generally been picking up the compression of relativity, driven by positive signals coming from central banks. you look at the positioning of volatility markets going into this week, we were seeing signs the market was as stressed as it was last year when volatility became the driving force between -- driving force behind stock market movements. this was not a warning in its south, but a sign that everything would remain under wraps. regardless of what you think about the trade war itself, it is pretty clear uncertainty was introduced, a deal many investors had assumed was already given. that seemed to crack up. i think that is the main short-term concern. for a long-term study of, it is about the long-term macro economy and not short-term signals itself. what we are looking for is evident of a positive effect coming, particularly out of china -- this does not seem to be materializing. the numbers do not look as strong as they should if the stimulus was a

china trade. i think i think we're seeing the opposite we're seeing a new tariffs now coming from china at the weekend it's going to 2 sides are entrenched in their position even more and i think this this move in mexico is going to throw things into even further confusion only back to you in frankfurt what are investors preparing for in the days weeks and months ahead they're preparing for trying to continue on this path staying true to herself and they're fearing that it might lead to a recession 1st in the united states and then in other parts of the world but they're also expecting central banks to act and are somewhat comforted by the fact that that might medicate the effects of arts in frankfurt and clifford cohen here in the studio thanks to you both. it's been an ugly dispute that the world's top economies have been locked in just this month the united states ramped up terrorist on chinese products china quickly retaliated with its own terrors that kick in on june 1st not just weeks ago th

china's role as a kind of emerges now is that as the big asian superpower over to an n r china expert here at the business thanks clifford oil prices have been rising this year with output curbs and global turmoil in countries like venezuela libya the us is tough stance on iran is also doing little to help supplies buyers of iranian oil have been exempted from u.s. sanctions through a waiver program have just lost their special status time ran out for iran's eight biggest oil customers thursday as u.s. oil sale waivers expired and iran is feeling the pinch its currency the reaal has already lost two thirds of its value against the dollar since the year began the i.m.f. said the iranian economy would shrink six percent this year and that was before the latest u.s. moves iran says it's determined to continue selling its oil. because nobody can push iran out of the markets even the u.s. the biggest of them all can do that then nothing. new measures hit an already complicated global oil market american sanctions on venezuela and turmoil in libya threaten worldwide supplies analysts expect

china and the us have had a fruitful relationship for the last thirty years ever since china shall we say pivoted away from communism became a global economy the deal seems to have worked however soon as donald trump takes power they seems to be an issue can you just explain to us what's at the heart of all of this. i think it is a combined result of a shift in power and the interpretation of it because in the past forty years china is probably the largest the largest beneficiary from the current trading system has benefited more than a us with a double digit economic growth almost every year or so now and lifted the millions out of poverty and it's becoming the second largest economy in the world but i always look at it on the u.s. economy is doing ok not nearly as impressive as china does and again quality has become a major issue in the u.s. and the politics is very divided so facing the especially after president xi jinping has took office the relationship between u.s. and china has really changed we saw that the u.s. labeled china as a revisionist and then as a competitor so from

. 30% is china. it china goes down, the index goes down which is what has happened. it is understandable. what we do is active investors is say we will not follow any index. we will go after these countries and companies that will not be affected and therefore we can escape from this downturn. alix: do you escape in africa? mark: yes. africa is very interesting. there are a lot of countries there that are beginning to look much better than before. the problem with africa is liquidity. you do not have good liquidity. it is only for specialized investments and private equity investments. with the exception of south africa. david: as you look for these opportunities as an active investor, do you differentiate between services oriented companies and manufacturing? , -- you talk about engle -- when you talk about bangladesh, are you talking about manufacturing question mark mark: export oriented manufacturing and consumer goods. interested in low-cost consumer goods. , cheaplike hair oil cosmetics, that s

goods entering china and that's almost as much as all of us exports to china in 2018 hours washington keeps up the pressure threatening to raise more tariffs on chinese goods beijing has responded by threatening to stop supplies of rare metals crucial for many high take items now meanwhile on the u.s. doorstep the president on a trump has said he will levy a 5 percent tariff to all goods coming in from mexico unless mexico curbs migration across the u.s. southern border the terror could rise to 25 percent in october trump wants mexican authorities to do want to combat illegal entries to the u. s. makes it was president andres manuel lopez obrador says he will respond with quote great prudence to a trans latest threat and that he also won't stop his country russia find the united states makes a cold canada agreement. now lots to talk about with clifford conan from business and also pads who joins us from the front with stock exchange hello to both of you i'd like to start with you clifford looking at this entire picture are we watching the end of global trade as we know it. well it's c

and china? >> we asked about trade and asked about tariffs and it is in our survey, 12 possible concerns and what we see because of small business owners, and so many different sectors and areas to be involved in, asked members who is most concerned and and what we found were whole sailers and agricultural business owners were the most concerned about it but as as far as other industries and other sectors there wasn't as much concern. >> interesting, sharon in your reports mixed impacts on tax reform and i found that surprising because the tax reform has driven the small business, why do you think that is? >> as it came last year and asked around the tax reforming what impacts it would have, came out and said small business owners thought this would be a game-changer and what we found in this survey, nor -- more neutral in impact, came back to be more neutral but much more to be seen after extensions filed. >> optimistic overall compared to history. is that impacting your hiring, are there capit

china and the us have had a fruitful relationship for the last thirty years ever since china shall we say pivoted away from communism and became a global economy the deal seems to have worked however soon as donald trump takes power they seems to be an issue can you just explain to us what's at the heart of all of this. i think it is a combined result of a shift in power and the interpretation of it because in the past forty years china is probably the largest the largest beneficiary from the current trading system has benefited more than a us with a double digit economic growth almost every year or so now and live to the millions out of poverty and it's becoming the second largest economy in the world but always look at it on the u.s. economy is doing ok not nearly as impressive as china does and again quality has become a major issue in the u.s. and the politics is very divided so facing the especially after president xi jinping has took office the relationship between u.s. and china has really changed we saw that the u.s. labeled china as a revisionist and then as a competitor so f

operating in china. they could slow down investment approval, ramp-up inspections, renege on whatever promises they've made so far to open up the economy to foreign competition. then we get into the world of financial markets. if you put treasuries to one side for the moment, they could probably let the yuan soften a little bit, but the question is by how much before that starts to trigger broader instability. they have some options up their sleeve, but it certainly can't match the u.s. dollar for dollar on the terror front -- on the terrace front -- on the tariff front. david: what about the yuan? it seems to have strengthened. equitiestainly on the side, you are absolutely right. our colleagues were reporting stock team did come into support stock prices. we have seen that before with episodes of severe volatility. but the yuan is still an unknown and all of this. it is up over the past year despite having a pretty horrid week. the currency could start to weaken over coming weeks and months, and china

in the south china sea. i think the parallels are very far away which america established the monroe doctrine towards colonial powers and the late 1800s. any action on this colony both north american, south american will be a threat, china is very far from that. that's why you have the freedom of navigation passengers in which china dutifully asserts its alleged claims and in which the u.s. and others who conduct these passages respond. it's hardly a threat. spira just ahead, explain why the way america deals with china would be the greatest to promote a challenge of our time. hey, who are you? oh, hey jeff, i'm a car thief... what?! i'm here to steal your car because, well, that's my job. what? what?? what?! (laughing) what?? what?! what?! [crash] what?! haha, it happens. and if you've got cut-rate car insurance, paying for this could feel like getting robbed twice. so get allstate... and be better protected from mayhem... like me. ♪ is it to carry cargo... or to carry on a legacy? its show of strength...

and china. the snapshot was we saw the media and entertainment sector of the most. .utures are mostly flat that is because we are seeing the tensions ease. as is the overarching headline. let's look at some of the big movers and what you see are various different stocks and different stories. different gainers and losers. this put pressure on the stock. hoover -- lyft and uber both rebounded. the drivers for these auto sharing services are contractors, not employees. that alleviates investor concerns about who would pay their wages now that these drivers want more. some of the other stories, let's this. look at we have one more panel for you. we have cisco, that will influence the tiny -- friday tech trade. cisco coming in with some strong sales and profit forecast. a sign that corporations are continuing to spend on the computer networks amid optimism that china and the u.s. will solve their trade conflict. it surged 21%. a big win for cisco. shery: let's talk about oil. it managed to pose gain

s biggest exports to china. oil was spared but you're seeing other countries take market share, brazil, soy beans, on l.n.g., russia, u.a.e. and saudi hit u.s. market shares. since tariffs have hit the marketplace, they've increased their share as the u.s. lost their share. yvonne: thank you, alex wolf, catch up with all our interviews and interactive function, go to tv go, you'll be able to check out the functions we talk about. if you have questions, feel free to send them throughout our way. tv go. this is bloomberg. ♪ >> as i said if you struck out one on the revenue this quarter, underlying greth was broadly in line with cost growth. ♪ rishaad: the latest business headlines, bitcoin jumping to -- jumping to almost $8,000 with its listeningest winning streak since 213, the jump of 5% comes a few days after it broke through 6,000. this is revising the entire crip toe currency market with similar rises in others. yvonne: uber closed 17% below last week's i.p.o. price. the c.e.o. sent an email to staff duri

stuff and a new intellectual property law in china and a new regulation in china and finding political guys for aiding ip theft and a huge support group inside china that wants to protect ip there was great progress made on those ground >> john, i want to come in on that issue because one of the fictions from the trump administration is that nothing that we did before worked. that is patently false. >> you mean in previous administrations. >> in previous administrations it is, by definition, not true that everybody before the president was an idiot and he's the only smart guy there were things that worked. for example, remember we worked very hard on getting the chinese, that had a big effect look, it wasn't perfect. we had cases in the wto. we won 95% of our cases there as do most people who bring cases there. that worked. it did not work for intellectual property or other things the idea that everything we did before it didn't work and that this is the only way to do it is a fiction. >> but if it didn't work for interlectual property, john, go ahead and respond. >> the reason guys ar

while overall exports in china may be lowered china's government says it's private companies i exporting more goods than ever pictures like these from chinese state television show an upbeat private sector statistics released by china's customs of ministration said private companies exports were up eleven percent year on year for the first four months of twenty nine t. it said this high profile a means private companies were a major driver of the foreign country's foreign trade. and now to some of the other business stories making headlines around the world shares in the german engineering congo armored siemens have jumped after the group of boarded steady profits in the second quarter the results follow its announcement that it will spin off its power and gas units for mccall division a division has come on the increasing pressure in recent years as many companies move to renewable energy like wind and solar gas or unit is the company's least lucrative siemens plans to focus on digital industries and smart infrastructure as well as its health and mobility its. germany's geographical loc

how does china respond? nick: as max indicated, they deny vehemently that huawei is under the thumb of the chinese government. they say huawei is an established, well-respected company globally, and countries and companies around the world should use its hardware. the u.s. administration view on the other hand is, listen, huawei might say it is independent, you could have a debate about that, but the fact it gets heavy subsidies from the chinese government and is also bound by chinese law, where regardless of whether it wants to help the chinese government it can be compelled to turn over information and turnover access, to basically do whatever the chinese government wants. you could say, ok, we are obstinately independent but in a system where the chinese government and communist party has almost total control. so that's the debate. on the other hand, huawei has already made itself crucial and really integrated itself into networks around the world. africa, for example. many, many countries are heavily rel