♪ betty: welcome to the bloomberg tv special, "china: behind the wall." i travel to beijing to visit china's historic state guest house. there, i spoke with one of the country's highest ranking officials. a former ambassador to the united states, a leader in the powerful state council, and china's top negotiator on foreign policy. we talked about the most pressing issues between the two countries, from cyber spying to the most recent market turmoil. but first, we began on chinese president xi jingping's visit to the united states. what does the president hope to accomplish in the u.s.? mr. yang: i think a lot can be accomplished. i believe the following three areas are very important. first, it is for the two leaders to have in-depth discussions following the discussion in california and in beijing about the international situation, about our respective country's policies. to chart a way forward, furthering our relationship. we expect that there will be quite a few positive practical cooperation results flowing from the visit. what people called "deliverables." i believe that t

not a program dominated by china. it is a program by which china works with other countries. stephen: tentacles that stretch from china through central asia to europe to the middle east and africa. to india and southeast asia, over land and sea to some of the world's most unchartered economic territories. >> defaults can always happen. infrastructure is a risky business. stephen: a project that, when it is finished, that will have cost china and its partners trillions >> these countries need infrastructure and at the end of the day, money will drive this process forward. ♪ stephen: hello. i'm stephen engle. welcome to a look at how the economic future of the world's oldest continuous civilization is evolving, a new dynasty being built from beijing on the foundations of a project that is china's belt and road initiative. fast trains are one of the symbols of modern china. and so too is the pace at which the networks are being built. top speed for the train? more than 300 kilometers per hour. and rightly or wrongly in the eyes of some, perhaps, a reflection of china's belt and road a

president says he intends to remain tainted the status quo with china. the first ever meeting between leaders of taiwan and china. they say it will set a precedent for future meetings. meeting, president xi jinping is in vietnam. the first visit and more than a decade. ofcomes against the backdrop relations strained by maritime disputes in the south china sea. john, what is the significance of this visit right now? 's visitdent xi jinping comes at a time when relations are at an extreme low. clashing claims and competing claims for territory, fishing grounds, drilling rights in the south china sea have escalated dramatically in the last two years. china placed an oil rig off the announce coast, which triggered violent clashes between the attorneys -- vietnamese boats and chinese boats. been violent anti-china riots in vietnam. the at concerned with china's efforts to reclaim reefs in the southsign a that in that china sea, creating artificial islands. rishaad: these countries have a having comeontext, to blows in the past. >> yes, they have. iny had a brief border war 1979. in in 1974

out today. and cathay seeing gains. korean air is up 2.5%. china eastern has risen 9.5%. the best-performing sector in asia today. the reason, angie has the answer. angie: thank you so much. what is given the airline stocks a left? let's bring in our report. michael, what is going on? michael: we have earnings out from china southern probably the drop in the price of fuel. angie: that is the key. what has fuel been doing to allow these stocks to search? michael: the key is what the airlines have been doing. the difference is the chinese and hair -- airlines have not been hedging their fuel prices. we saw pacific, they had been hedging their purchases and it came back to haunt them. they made a decision when prices were falling a few years ago that they were not do that. hedges are basically insurance. a risk that you are taking. the more confident they feel where price of going, the riskier. angie: european and u.s. airlines have hedged. something to write jet fuel prices fall. let's talk about high-speed rail. will it affect the output? michael: it is interesting. the chinese gov

. china's economy showed signs of stability even as growth sometimes seemed to sputter. >> i think we have a hard landing in the stock market already. >> the old economy drivers are back in action. it is the new drivers that are stalling. angie: japan's leaders went back to the stimulus well again and again with mixed results. >> we have to continue our accommodative monetary policy. >> i think japan has become this sort of test tube for the rest of the world. angie: it was an eventful year for many asian companies, from smashing successes to corporate crises. >> this is a huge deal. >> it is a combination of one debacle after another. angie: and asia made its mark on global markets as economists reckoned with the region's ups and downs. >> when the leaders say we want 6% growth, they get 6% growth. >> you can't have your balance sheets grow faster. angie: join us for a look at the best of 2016 straight ahead on "bloomberg best." ♪ angie: hello, i'm angie lau. welcome to a special edition of "bloomberg best". on this program, we will have the most important business news, analysis,

global coordination going on. you are seeing china do its own thing and it disrupts the system. and we -- i have been around a long time and this is probably the lowest level of global coordination since the 1980's. charlie: there is some influence, isn't there? hasn't the chinese changed a little bit or said they intend to change currency issues? mohamed: think of an orchestra. the chinese basically when the instability gets too large, they put global responsibilities before their domestic responsibilities. they don't appreciate their currency. when financial markets calm down, they say we have to take care of domestic responsibilities and weaken their currency. that has been the cycle. in august, they surprised everybody with appreciation. that caused a lot of global instability. when calm returned in november, they went back to pursuing a currency depreciation until we had another shock in december and january. that shows you china is trying to balance domestic responsibility with a global responsibility. you're are the second largest economy in the world. you have to act respons

imports from china and the chinese president matches with chinese own tariffs on the same imports from the united states. equity markets move sharply down on news of a growing trade dispute but they come back as investors start to sort out what is real and what is not. hit any bread basket, china draws a bead on the american farmer with soybeans at the top of its list for retaliation. shery: markets reacting to trade, already with some big swings. here is abigail doolittle. >> we have had some intraday volatility and we do have the major averages lower with the dow down more than half a percent and the s&p 500 down about one third of 1%. the nasdaq down. a big change from earlier when the nasdaq and the dow had been down about 2% on the lows with fears of a potential trade war with china. cooler heads prevailed and you can see that the russell 2000, which had been sharply lower, now up fractionally. some investors talking about the russell 2000 is the index investors want to go toward in the case of a trade war because most of the revenue of the smaller cap companies can to come from the u

going on in china and the leadership in china in terms of where it is moving, it is going to be fundamentally good. you are looking at something that is a short-term challenge e will berom where will in five years. with vibrant, young entrepreneurs and economy beginning to flourish. >> why have we had so much volatility since the start of the year? >> the volatility has been a result of the world that we have an ease and monetary policy all around the world. there not going to have same effectiveness and the easing of monetary policy because at interest rate is zero, you cannot cut interest rates. the risk premiums have gone down. there is a big vulnerability. when china is dealing with the rest of the world, china is a negative on the margin for the rest of the world. the world is vulnerable because of a lack of monetary policy while as the prices are comparatively high. >> how do you explain volatility? is it something we need to learn to live with? are several things going on. one is that chinese are in the transporting -- transitioning to economic consumption. there are a lo

chinese markets. the essence of what's going on in china is an adjustment. they have a debt restructuring challenge. they have an economic restructuring challenge and they have to come up with a new model. they have a capital markets challenge. they need to build in addition ways that circulates capital through the system better. they have a balance of payments challenge. that will pressure on the currency. these are things that have happened repeatedly through the rest of the world. the united states has had three major debt crises. we had the s&l crisis. we've reshaped our economy many times. we have gone into other areas. we have had another of talents of payments and currency issues. one of the things being misunderstood is what is a normal balance of payments and too much debt restructuring kind of recession? japan used to define recession is anything less than 3% growth. i think it's been confused with the longer-term feature. i think the reforms going on in china and the leadership in terms of where it's going will be fundamentally good. you're looking at something th

china, head. welcome to "first up", live from hong kong. top story, morgan stanley afters overnight reporting a loss related to private equity investments in china. james gorman described last quarter as the "worst for fixed income since the financial crisis." let's get on this now and the rest of the trading news. following onnley the heels of goldman sachs and j.p. morgan chase with a similar story of a very rough quarter for fixed income. trimming an earlier loss of more than 8% in the session. a lot related to private equity investments in china, and also suffered a drop in bond trading revenue. as we mentioned, the ceo calling it one of the worst bond trading quarters since the financial crisis. james gorman has about to run a less volatile bag, and says "we had an unusual pick up in the merchant bank -- pickup in the merchant bank." $.42 a share mississippi three shins per share, missing estimates by a lot. missing $.63 per share, missing estimates by a lot. full-year profit forecast, 14 straight quarterly decline in revenue, affecting the challenge of a turnaround for a tech

-- will sign the turf order later. there could be retaliation. had saidrporate china trade wars are never the answer. haslinda: one of the top china's good news for expert recovery. help growth beat forecast. it has been a roller coaster ride. up down, up down. today is taking a look at where asia index is right now. prospects of a full-blown trade for now. easing. the data out of japan, strong economic data. .ook at how the nikkei is doing a stellar performance from the hog saying -- hang seng. keep an eye on the hong kong dollar. it is trading at the weaker end of its peg. there is some suggestion that the federal bank may come in and intervene, and help out with liquidity. david: we'll get of course a lot of the hide rates coming out in the next 10 minutes or so. hopefully beget this hour trade numbers out of china. we're talking about the risk appetite in the markets. although coming out of the yen. pushing the dollar above 106. we're hearing from donald trump and the white house that that announcement on steel and aluminum could come at 3:30 p.m. eastern time which is roughly 4

♪ betty: welcome to the bloomberg tv special, "china: behind the wall." i travel to beijing to visit china's historic statehouse. there, i spoke with one of the country's highest ranking officials. a former ambassador to the united states, a leader in the powerful state council, and china's top negotiator on foreign policy. we talked about the most pressing issues between the two countries, from cyber spying to the most recent market turmoil. but first, we begin on chinese president xi jingping's visit to the united states. what does he hope to accomplish in the u.s.? >> i think a lot can be accomplished. i believe the following three areas are very important. first, it is for the two leaders to have in-depth discussions following the discussion in california and in beijing about the international situation, about our respective country's policies. to chart a way forward further in our relationship. we expect that there will be quite a few positive practical cooperation results flowing from the visit. what people called "deliverables." i believe that the president will reach ou

betty: hello, i'm betty liu. welcome to this bloomberg special edition, "china: behind the wall." i traveled to china and spoke with a former ambassador to the united states, a leader in the powerful state council, and a top negotiator on foreign policy. we talked about the the most pressing issues between the two countries, from cyber spying to the most recent market turmoil, but first, we begin on chinese president xi jinping's much-anticipated visit to the u.s. this is happening a few weeks away from the visit of xi jinping to the united states. what does the president hope to accomplish? mr. yang: i believe the following areas are very important. first, it is for the leaders to have an in-depth discussion, following the discussion of california and beijing about the international situation, about our respective countries, the policies, and about the future of our cooperation, particularly to charge a way forward, furthering our relationship. we expect that there will be quite a few postivive, practical cooperation results flowing from the visit, what people call the deliverables

next, heading to beijing and the apec summit. china offers an investor to counter the u.s. optimism. increases speculation that china will finalize a long-running agreement and of coming days. the burning issue in spain. why independence would mean for one of the world's biggest football clubs, all of that and more on "asia edge." >> back to our rubric story. -- top story. bloomberg news emerging markets what is going on? we have been waiting and it is over with or is it? >> it has finally been announced. like all investors, we have been waiting to see if it will close out. the chief executive visited where he met xi jinping. >> and an announcement? >> and certainly it well. it will begin on monday, next week. there are still a few issues in and out but it does not seem hopeful that it may come. >> what are they? tax and other regulatory issues? >> the taxes always been a major obstacle. a big hurdle for people to want to invest. while hong kong does not charge a capital gain tax, the mainland it does. they have not collected it and mainland investors are happy. foreign investors ne

medium and long term is the u.s. and china finding a way to coexist more productively economically. there is a good chance we will see progress from the trade discussions. i've met with policymakers on both sides and i am encouraged. i think we can expect progress to be in stages, but i am hopeful that we will see progress and i think is important. the chinese realize it is important for them. the u.s. realizes it is important for the u.s. and for economic growth around the world. >> does this deal lead to a phase two? does it mean something concrete for the world economy? david: i think we have to hope that over time, in a world where both these economies are super important to global growth, that we can find a way to make progress on all these issues. certainly, it is a step in a positive direction. i am a glass half-full guy. i am going to assume china's interest in the u.s. interest and the global economy at bard -- at large, we should see progress. >> you were just in hong kong and you postponed a party. david: we had been celebrating around the world this year the 150th anniv

caroline: bears beware. china steps up yuan intervention. one official says the currency is destined to fail. to increase production. knowledgeable, be worried and want the jim rogers bad news is coming in 2016. he joins us. ♪ welcome to "the pulse." i am francine lacqua. let's get to the markets. we have had volatility over the last couple of days. let's get some of the stocks up for you. if we can get the board. here is a picture from the european stoxx 600. automakers, investors tried to set valuations after we had a lot of losses. we had a four-day losing streak so far. maybe a little bit of investors thinking it's a right time to go back in. crude oil at 30.6. i wanted to show the rand, we saw a big follow-up to the rand yesterday. japan still one of the biggest bigs -- bids as it is considered a haven. leslie to nejra cehic. nejra: the people's bank of china is set to repeatedly intervene with the offshore yuan market since yesterday, according to people familiar with the matter. the bank has been cracking down on speculators in a move it is maintaining a stable curr

two decades. china is in focus. apple has become the latest and biggest corporate casualty of the pullback by the chinese consumer, and the company says the trade war hasn't helped. is this just a china problem? will the rest of tech get dragged down with it? the apple ceo now faces his biggest test since taking over. first, the shocking letter from tim cook to shareholders. apple cutting its revenue outlook for the first time in two decades, citing weaker demand in china amid the ongoing trade war with the united states. apple dropped a big can't that iphone sales -- big hint that iphone sales were dropping in november. here is a take of some of what we've seen on bloomberg television. >> they will still hit an all-time high in earnings-per-share this quarter, so profits per share will still be better, even though revenue will decline for the first time in a long time and, unexpectedly, they have hit a real speedbump in china and with the iphone. >> people who have been watching apple closely for a long time have known that the wall was going to hit at some point, and it's just h

>> coming up on bloomberg best, the stories that shaped the year in business across asia. china's economy showed signs of stability even as growth sometimes seemed to sputter. >> i think we have a hard landing in the stock market already. >> the old economy drivers are back in action. it's the new drivers stalling. >> japan's leaders went back to the stimulus well again and again with mixed results. >> we have to continue our monetary policy. >> japan has become a test tube for the rest of the world. >> it was an eventful year for asian companies. smashing successes to corporate crises. >> this is a huge deal. >> asia made its mark on global markets as economist reckoned with the region's ups and downs. liters 16% growth, you get 6% growth. t-rex you can't have your balance sheets grow faster. >> join us for a look at the best of 2016. just ahead. ♪ lau.llo, i'm angie have this program, we will all the news we brought to you on bloomberg asia in 2016. as the year began, china was the focus of concern for investors around the world. growth, aout slowing sliding currency, and an e

up on the show. we will hear from joseph stiglitz on why he is not seeing signs of change in china. aramco controls 1/10 of the world's oil and saudi arabia may sell one stake. wars feels the force in china. their record setter has a $53 million opening. those stories and more. keeping an eye on the markets. bad are some of the numbers. the regional index excluding sinceat its lowest level november 2011. hang seng down 2.5%. the hang seng china enterprises index at a four-year low. the australian market down 2%. hong kong is leading the region. out of the 50 stocks on the hang black.nly one is in the quite a lot of selling coming through elsewhere. shanghai market down by 1.3%. china railways have in the standout day, though. .lsewhere, widespread selling thailand is coming online down. every sector is in the red. basic materials stocks down by 2.3%. looking at some of the nature .overs the weakest performers are on the h share market in hong kong. brokerage stocks coming under pressure today. take falls in early trade today. developers coming under pressure, now. yanke missing 7.8

about the perception of china, and the task facing chinese regulators? well, we have, i am pleased to say, an a-star panel. thank you so much for coming on. jiang jianqing, chairman of the board of the industrial & commercial bank of china. christine lagarde, the managing director at the imf. fang xinghai, vice chairman of china's securities regulatory commission and director general at the intercontinental economic department. gary cohn, president at goldman sachs. zhang xin, chief executive officer and co-founder at soho china. and ray dalio, chairman and chief executive officer at -- chief investment officer at bridgewater associates. thank you so much for joining us. ray dalio, is there something that the west misunderstands about chinese markets? and does that exacerbate the volatility we have seen the last few weeks? mr. dalio: i think there is a lot the west does not understand about chinese markets. i think the essence of what's going on in china is an adjustment. they have four major challenges. they have a debt restructuring challenge. they have an economic restructuring

power listing, the nuclear ambitions of china coming to the stock exchange in hong kong. and, london's king of bling. for themaking jewelry biggest names in music. >> i'm david ingles. [coughs] excuse me. as you can see, it is a fairly mixed region. play is just starting to play out. these, aat some of little bit of a pickup over the last few minutes or so. we have some key data out this morning. continuing to fall, perhaps why we are seeing the yen weekend. jobs, far from done. you have the yen falling. across the region, taiwan and , taiwan is out at about 4:00 p.m. india comes out later on tonight. before i go, thailand also comes out. they have an update on trade. we will see how that impacts trade. i will leave it there for now. let me send it back to you. >> for the first time in three surpassed japan as the world's second-biggest equity market. xi jinping over shinzo abe. >> both countries may have stepped up their stimulus but it looks like investors are more confident towards beijing to revive the economy over abenomics. china just cut interest rate for the first tim

central bank to raise rates this year. he admits the matter is complicated by china, oil prices and a stronger dollar. or cleese says the fed probably will not raise rates until next march. -- barclays says the fed will not raise rates until next march. china is who donald trump blames for the market turmoil. they want president obama to cancel next month's visit by xi jinping. walker blamed the market tumble on what he called china's manipulation of the economy. he said president obama should cancel the visit. donald trump said he would give him a dinner, a mcdonald's hamburger. get down.'ve got to yuan, devaluation of the changes in currency, it has been an unbelievable market run. there has been a shift in gdp in the u.s. in the last two quarters. normal market a correction. but i'm still a long time believer in the stock market like warren buffett says you have to look at a long view. brendan: watch the interview with salesforce's mark benioff at 4:25 eastern on bloomberg television. portfolio gotyour hammered, the world's 400 richest people lost $124 billion yesterday. the bigges

. -- repeatingeading his claim to china south china sea. let us know what you think of our top stories. follow me on twitter @rishaadtv, include #trendingbusiness. shanghai, shenzhen, and hong kong reacting to that u.s. jobs report. here is juliet. what a disastrous number for that payrolls number. we are seeing weakness come through from a laser on the open. singapore opening higher. from malaysia on the open. singapore opening higher. most of the weakness coming through from the nikkei 225 as the yen holding near one-month highs. this is a story of dollar weakness. the likelihood of a june rate hike in response to that jobs number now only 4%, down from 30%. the likelihood of a july hike down from 50% to 27%. down 1.4% with the yen holding on to those highs. australia, up by a third of 1%. gains from gold players. that shows you how much there is in terms of risk off sentiment. investors flocked to that safe haven gold price. zealand closed today, also korea for a public holiday. hong kong will be close later in the week, so an abbreviated week for investors in this region. the yen d

>> i am zeb eckert, and we are "on the move in asia." ♪ signs of recovery. china manufacturing grows at its fastest haze in months. european companies are losing their confidence, saying china's golden age is over, and feeling the heat in australia. the last two years were their hottest in record. -- on record. i am zeb eckert in for rishaad salamat. thanks for joining us. some recovery in may, indicating the worst of the slowdown in china may be over, and david inglis is looking at this. pickup, 50.8.a it was not a big surprise, because if you look at the range of forecasts from economists, pretty much everyone was expecting we would still see expansion. as high as 51.5, so i guess you could argue that it is more in line with expectations. this is really a survey, at least for this particular one. a series of questions. how many optimists are there, compared to pessimist? a number above 50 indicates that people are perhaps a little bit more bullish on their own business, so that is what we have for the large enterprises. if you look at the medium sort of companies, medium-size

i am emily chang in san francisco. trade tensions tighten. china retaliates by vowing to slash tariffs and president trump signals that he's prepared to escalate. we will tell you about u.s. tech stocks taking a hit. plus, vmware has agreed to buy carbon black and pivotal in the largest ever deal. why those deals sent shares tumbling. and a new u.s. cyber agency says priority number one, countering threats from china. how it plans to keep the tech supply chain safe. first, ramping up the trade war. eared down onmp b china in a series of tweets, writing in part, the vast amounts of money made and stolen by china in the united states for decades will and must stop. our american companies are ordered to start looking for an alternative to china. for more i want to bring in sarah mcgregor, who has been following the back and forth. talk to us about this new round of tariffs, soybeans, cars, oil. who will be hit hardest if these go into effect, and how? >> the fact that china is retaliating -- when the trump administration announced these new tariffs, china said, we will respond. $7

much more. china's vice president, wang qishan, set the tone in his keynote speech. he warned against protectionism. vp wang qishan: [speaking foreign language] translator: we should pursue common, comprehensive, cooperative and sustainable security and reject zero-sum games and cold war mentality. viviana: some of the world's most influential people in banking and finance shared their thoughts on the global economy and capital markets. let's start with goldman sachs' ceo david solomon. david: i think one of the big issues, when you think about economic growth in the medium and long term, is the u.s. and china finding a way to coexist more productively economically. i think there is a good chance that we will see progress from the trade discussions. i've been fortunate to speak with policymakers on both sides, and i am encouraged. i think we can probably expect the progress to be in stages, but i am hopeful that we will see progress, and i think is important -- here in china, the chinese realize it is important for them. the u.s. realizes it is important for the u.s. and, cand

♪ emily: he is one of the most well-known tech titans of china. kai-fu lee got his start at apple, then moved on to microsoft, then sparked a lawsuit when he left to run google in china. that was before the search engine left the country. facebook and twitter were blocked by the government, and a thriving chinese tech scene sprang up in the void. running a billion-dollar fund to invest in the next generation. joining me today on "bloomberg studio 1.0," sinovation ventures ceo kai-fu lee. you came to the u.s. in 1973. you were 12 years old and moved to tennessee. tell me about what must have been culture shock in that moment. kai-fu: i did not speak a word of english, but the people were extremely friendly, that southern hospitality. i made a lot of friends. in class i was totally lost. they were teaching in front and i was reading my chinese books. emily: somehow you caught up because you went to columbia, phd at carnegie mellon. you were working on speech recognition, of all things, which now four decades later is the forefront of new technology. kai-fu: also artificial intellige

angie: boeing unveils the biggest china investment and lands $8 billion in jet orders as the president pays a visit. engulfed by scandal, volkswagen ceo martin winterkorn steps down by acknowledging deliberate in mission cheating -- emission cheating. welcome to "first up." let's check in on markets in asia. new zealand has good news, upgrading its forecast for payout for milk for decimal farmers -- for milk farmers. we are seeing them lead the gains. font terra is climbing, 4.4% up. $.62.aland dollar is following australia and japan. let's go to japan's big ketchup. on friday it was down, futures in chicago, check that out. it is going to have to join in and catch up to be selloff we have seen in asia. dollar yen right now is straight -- strengthening. markets in indonesia, malaysia, and singapore are closed because of higher icy -- holiday. the chinese president has met with business leaders in seattle, one of the biggest winners with boeing. orders.d $38 billion in this is quite a significant deal for boeing and for china? >> you better believe it. right now i am standing

♪ emily: he is one of the most well-known tech titans of china. kai-fu lee started at apple, then microsoft come been sparked a lawsuit when he left to run google in china. facebook and twitter were blocked by the government, and a --ing chinese tech is seen now he is starting a fund to invest in the next generation. joining me today on "bloomberg studio 1.0," kai-fu lee. you came to the u.s. in 1973. you were 12 years old and moved to tennessee. tell me about what must have been culture shock in that moment. kai-fu: i did not speak a word of english, but people were extremely friendly come a southern hospitality. -- friendly, southern hospitality. i made a lot of friends. i was reading my chinese books. emily: you caught up, went to columbia, phd at carnegie mellon . it were working on speech recognition, which is now the forefront of new technology. kai-fu: also artificial intelligence, machine learning. it was an exciting age when there is so much unknown and naÏve optimism, but it is gratifying to see that coming to the real world. you join apple in 1990. how closely did you

. shares of china beginning to trade in hong kong this hour. a $2 billion ipo. plus, toy story. chinese artist i went way accusing -- chinese artist ai ofwei accusing lego censorship. follow me on twitter. the china and hong kong markets coming online. certainly, the bowls really charging out of the gates this morning. >> possibly good news by the markets surprised cuts in the main interest rate by the people's bank of china friday. lifting markets across the asia-pacific. certainly singapore, taiwan, and malaysia come online, we will see if they fall into line. the asia-pacific index rising at this hour. chinareally a bet on acting to cushion growth amidst a slide. investors see perhaps a buying opportunity. shares in australia up 4/10 of 1%. awell as earnings some and and a activity. we'll be watching all of that very closely. using oil prices moving and we are watching gold very closely and have anticipated action, or perhaps not this week. rishaad: thanks. right now, this rally can be partly attributed to the people's bank of china stepping in and putting their foot on the

safety in dollar. >> we will bring you retail sales out of china. we look ahead to alibaba. good morning. you are watching countdown. devaluationeen more we're seeing the repercussions through the emerging markets. elliott will beginning us an update on what we are seeing. this is deval 2.0. you can see what is happening. the dollar strengthening. he seems to be the safety trade around the world. a really sharp pickup in the currency for a second day. we have got the second-biggest amount we have seen in two decades. market.to feed the market will have a bigger say in setting the rate. i want to give historical context. today we are going to get that opportunity. let me show you this chart. that is the asian financial crisis. this is where we are right now. it gives you a sense of historical context we are dealing with their. >> these are the economies that are most exposed. , south africa treated as its biggest trading partner. >> it was great when china was ahead. .antastic this is good news. today, not so much. look at what is going on in the aging -- asian trading section. wh