in china. one is that the u.s. missile defense system would neutralize china's retaliatory capability. and we can understand china's -- this chinese concern by both the chinese security paradigm and the u.s. security paradigm. so, in the u.s./china nuclear dialogue, we have had some discussions on this concern. but in china there's another concern, that is, the development of missile defense in the united states would bring united states a lot of new defense technologies, new ideas, you know, new systems. they may not be missile defense. they may be something else. but they're new technologies. so, china worried that china would fall behind again, so this is a concern about technical lagging. so, from the mid-1980s china began to do research on missile defense to understand the technology. the purpose was to understand missile defense technology rather than deploy a missile defense system. because this concern is based on the chinese security paradigm. so, in the u.s./china nuclear dialogues, w

ultimately china if you think about china it's standing on an sca -- escalator. despite slow in the economy there's still rising, there's a consumer class. so you're right, nike, for example, will they don't have the limited edition high-end stuff but they'll have frankly sometimes like inventory clearing and things like that. but it's more than that in china. it is actually the most attractive way to connect with digital -- for the middle class through platform. when i say digital. it's really cell phones. it's way over half, 60% is on the cell phones. so useful, you're right. it's another site. virtual supermarket. it's brands that have those stories or very large merchants. towbow. they just started the cycle and that's when small merchants and they're 9 million merchants, so when i say 9 million merchants, a lot of those are individuals. so my friend ms. wong might be government official and she's trading so maybe an idea for bureaucrats in washington, but basically there's a lot of underemployed people in china as well as unemployed people or people just nee

not only in china, but globally as well.hat are not clear category leaders are finding it difficult to raise capital today than one year ago. >> on that point, over the past eight months or 10 months, we have seen some high profile names, without getting into specific ones, have seen their valuation taken down significantly. what does that tell you? we were in a bubble and it is slowly deflating real-time at the moment? >> what you are referring to is a specific case of u.s. mutual funds marking up and down investments based on public market comparables, so you have private companies and the mutual fund managers -- and by the way, when the market went up without a lot of attention, they were marking up these investments. down,th the market coming they have to correspondingly marked down those investments as well. the needre to do with to reflect market valuations in the private holdings you haven't port -- you have in portfolios. i don't think it affects the overall tide. you really try to do under analysis of the company yo

as china conflicts with vietnam over the south china sea. warns that this visit between the u.s. and vietnam should not disturb regional relationships. obama in hanoi as he is being greeted by vietnam's prime minister. minister wasprime replaced by a much more hardliner. this is regarded as a very important meeting. now -- now going into the presidential palace. how integral -- >> for japan, it is also important they have the backing of the u.s. -- they wantthat to make sure for future economic policies. >> how significant do you think this agreement is between japan and the u.s. for the yen? >> to japan, it is more significant. whether japan will be able to get unconditional support from the u.s. that is one of the pieces they have to make sure, although they have some different opinions, they are still working to get. >> we have seen the yen strength and quite significantly -- strengthen quite significantly. have you got any call on the yen? >> the yen should go lower. the u.s. does not agree with the path. i suspect the minister of regard

china. and let's contrast that with a local labor market that's at the 75th percentile. high exposure versus low exposure. that difference in exposure amounts over the period we examine the '90s and early 2000s to an increase of about an extra $1,000 in imports per worker. what's the consequence of that greater exposure? so in manufacturing industries, it's a decline in employment as a share of the working age population of about 0.6%. that might not seem like a big number, but this is the share in employment in the working age population, which has changed over time by a magnitude of 3.5%. that's decline is a big number. now if workers were smoothly adjusting between regions, what should have then happened is they moved into other industries. you move in the activities or leave the region entirely. we have seen neither of those things occur. what has happened is a movement out of the labor force and increases in unemployment that persist over periods of a decade or longer. not surprisingly,

china worries that china would fall behind again. aboutis is a concern technical lagging. 1980's when we began to ,o research on missile defense the goal was to understand missile defense technology rather than deploy the system. because this concern is based on the chinese understanding of the paradigm. in the u.s.-china nuclear dialogue, we do not have much discussion on these concerns. here and ihould stop very much look forward to the comments of my colleagues. thank you. -- >> thank you. chinesehighlighting conceptions of security and safety, the difference between nuclear deterrence and compellance. -- the focus on security situations. that is fascinating. i would encourage folks to read the article. there is an additional issue in that there is a way that chinese equal weightiven to security concerns and economic concerns as they make national security decisions which i found to be a very fascinating insight. what we saw in his presentation of what an institution like carnegie cap reduce. how many other institutions can americ

again exceeding china.india is the place that will be stocking up any extra supply that is out there. yvonne: is this a larger trend? what is really driving the growth? dan: it really is. if you look back about 15, 20 years when china's huge growth spurt started, they're about the same place india is right now, about 4 million barrels a day of oil demand. what china did was embark on an industrial revolution and india is doing the same thing. the prime minister is trying to increase manufacturing jobs. that drives oil demand in two ways -- one, you are making more goods than he to be trucked and shipped which requires oil. you are giving workers better wages. they have more money to spend on flights, cars, things that drive oil demand growth. yvonne: you mentioned cars, i guess you can see a lot of the growth out of the car lots in india. what is the auto market looking like? dan: it is booming. the total domestic vehicle sales growth rose by 5% last year to more than 20 million passenger cars, increased by

we have this engaging china but it's time for national security -- china.the way i think of it as this. jack is very dominant. it has to move into new areas. sometimes 70% or 80% of the market. the area he's chosen to expand two, two of the biggest star finance and media. both of those are factors for the state plays a very big role. i talked earlier about how jack created this triangle of logistics in e-commerce. and as a currency for digital things in china, but increasingly for everything. when jack launched a fun, if you have money in your account, you can put it and pay 2% more than the state bank and he caught a leftover treasure. $100 billion went immediately into that thing. the banks were scared. even though the banks control hundreds of trillions, they never experienced competition like this and they been pushing back. you go to the bank and say are you sure this company is an upstart. the banks are fighting back in the same in media. in fact, xi jinping is increasing state control. a lot of journalists are quitting, things like that. but on the o

dollar on the back of the china data.k to the disappointing china data, highlighting the challenge facing policymakers trying to reform the competitive -- economy, and curb excess credit. let's bring in our china correspondent from beijing. what does the data tell us? what it tells us is some of the major drivers of the economy here are slowing down. we track the gdp on a monthly bimonthly basis. wasame in at below what it from march here it is. we have some more details over the weekend, breaking the numbers down with industrial output coming up 6%. in march.low the 6.8% the national bureau of statistics saying that is likely due to a slowdown in the coal and steel sectors, suffering from overcapacity and weak demand. then there is retail sales. the chinese consumer, keeping their hands in their pockets, particularly in automobile sales. way below the 12.3% rise in march. then there was the fixed asset investment which missed forecasts as well, suggesting business leaders do not have confidence in the economy at. -- yet.

in china. we have two, one international and one domestic. today, basically i will explain the two issues. i will begin with nuclear terminology in china. the first group of nuclear terms i want to explain include security and safety. in english, security is about how to avoid who we attack. safety is about how to avoid accidents and natural disasters. in chinese, however, there's only one word. it includes the meanings of the two words. so in china, the assumption is that the consequences of secure problems and safety problems are very similar. so we should treat them together. we should use the same system to deal with two different kinds. here in the united states, people treat two the issues separately. nuclear safety is a safety issue. nuclear security is a security issue. in china, we consider that -- we look at the similarities of the two kinds of issues. so in china, this is caaccordin theory, we should not only emphasize one side. for example, it allows china to optimize its nuclear we

china's leaders, even as china's economic growth decelerates. in march, china announced its military budget will grow 7.6% to $144 billion in 2015. for 2006 - 2015 china displayed military budget an average of 9.8% per year in inflation-adjusted terms. china's publish military budget, amid several major categories of spinach or such as rnd, the procurement of form weapons and equipment. the true expenditure dod estimates in terms of total military spending for 2015 if they exceeded one 80,000,000,000 dollars in 2015. 2015. as a result of these investments, they continue to make strides. for for instance, china's military. last year china unveiled the day of 26 missile, a system that could produce ground straits to the asian pacific. beyond beyond this there program entered a new phrase phase in 2015. i will highlight three key security department. the first is that the first is there maritime activities. in 2015, china used tactics to assert its claim in the south china sea reclaiming vast acreage on existing outpost and instructing military fac

we have to be worried about the debt in china.the economy can continue to grow 75% you can grow out of your problems. havean't grow at 6% and your balance sheet growth faster. the future i would much prefer seeing the economy growing at 6%. trying to reorient their economy. empty suitcases and gilded hong kong and tokyo new york london. they come back with full suitcases. can you imagine if there was a better service economy for tourism in china. can you imagine the china will reimported goods at that rate. as it is in hong kong. that is one of the structural problems with china today. this is what we need to do. china has been so reliant on importation that they are going to have to reject how they get the revenues and they needed china in which those things happen. yvonne: you were just in japan yesterday. you've been very critical of negative rates. have the politicians abdicated reform to monetary policy. larry: what we've seen a last three months his last action in instituting negative rates was negative results. an increase

li was china's richest man.was wiped off and half an hour last may before shares were suspended. making --ight stop the brazilian playmaker says it is considering closing its factory in will make a final decision later this year. it says it is falling due to a lack of falling incentive and tax laws make it cheaper to import planes anyway. g ona is making -- takin elon musk and jeff bezos in the space race. the mini-shuttle is set to blast off before splashing back down in the bay of bengal. it is supposed to be more cost effective. they point to spend only about spacelion on its entire point. that is a fraction of nasa's $ 149 billion -- $19 billion budget. for china correspondent has been taking a look into this. of forgetting my homework of all and the dog ate it. my homeworkte excuse being used by a chinese company. they mysteriously go missing just before repayment is needed to be made. there is a shuffling of assets that happens as well. of course we have heard, we had headlines earlier this year when certa

that is china.peaking at the symposium in hong kong heat of is that despite reforms, china's debt remains a worry. >> i would give the chinese leadership some of the best marks and trying to transform their society. we are on the fourth year of the china awayriented and from an export dependence economy into a much greater service economy. that is a very hard thing to do. it takes many countries 50 years to do that and countries generally have recessions as a transition. so, to say to china most recently, as for policy behaviors, the market is saying that china's dependency on debt and the leverage of the balance sheet and a continuation and investing in some of the companies is not a good long-term solution. i would say, indeed, it is not a good long-term solution. hopefully, this is only a short-term remedy and they get back to the basics of trying to build a better domestic economy. anna: larry fink there, clearly worried about debt levels in china. andrew parry is still with us in the studio. yo

china would be in a more dangerous situation, china would face or lose them, my guess is china wants to off stand the technological first. second, i believe china would develop countermeasures and one of those countermeasures is deploying decoys. some call decoys or would have. they would not. a real warhead and many, that does not change. this is a comment. >> in the corner. >> in carnegie, to american -- this kind of nuclear dialogue, the chinese and american side to make the distinction for security threats and challenges, i wonder how will america respond to different ways, what kind of condition will you think the challenge would transform? >> over to you. >> having a hard time grasping the question. let me say a few words about how i thought about these issues and the value of these discussions during the cold war with the ussr, and cumulative process for developing understanding on both sides i would say again, and mutual predictability as being a benefit to ability, strategic stability or stability period or stability period, and over time, there will be a body of concern sha

as well as china falling. exports to china falling 7.6%.did see some supply constraints during april after those earthquakes. that might have restricted or effected some shipments when he came to car parts and electronics. it was the drop in oil prices that dampened imports even more, 23.3% down in imports for the month of april. oft leaves a trade surplus 7.5 billion dollars, bigger surplus and we saw in march. that is nearly 2.5 billion dollars more than what economists were expecting. this goes to show the pressure that the prime minister has to revive growth, especially after he did not get the blessing from g7 nations when it came to what policy levers they should pull next to revive growth. of tensionn, a lot about that over the weekend on what to do next since it has appreciated so much this year. the u.s. not particular convinced when it comes to intervention. we did see some fiction bween the u.s. and japan, the sharp at dissonance and views in some time. the finance minister of japan reiterated that the recent moves in the yen hav

and a bit short in china. the last bearish bets were so high, that bull markets turned into a $5 trillion rout.; also, version australia chairs take off as they take the stage. it would take a look at why the billionaire founder is on a global buying spree. and i am keeping my eye on what's happening with your money this tuesday. it's the last trading day of may, and despite what will be a monthly loss, it is shaping up fairly decent, a fighting chance, across asia-pacific, especially midday. the markets that are lower are off the bottom. what do we have? china is the outperforming market -- 2%. shanghai composite, other metrics, also showing very sharp gains. the index gaining the most since march. the story is coming down to speculation that the msci, the index compiler, will be including a shares in the reaching of these indices. they includewon't it? investors are choosing to focus looking at how these brokerages that financials trading on the chinese markets. currencies, the past four days, what's been ha

chinao be china -- beat to mars.nother official has been fired after an internal investigation found that he accepted millions of dollars. sources say he took cash from 2008-2014. it is not yet clear what they were linked to. he may face charges of conflict of interest. this is bloomberg news. rishaad: coming up on "trending business," is it the end of a love affair for a hedge fund manager dumping shares of chinese technology companies? ♪ rishaad: this is "trending business." hedge funds are shifting away from china tech stocks on rising concerns about their growth outlook. in beijing.s tom is this the end of a love affair? >> maybe not the end, but there is not a lot of sizzle in this romance. dumped chinese textile holdings in the first quarter, down about 12%. 10 of the biggest holdings were in internet-related firms. in a traveloldings company were sold off in the first quarter. you have other tech companies , and another, almost a third of both of those companies were sold off by hedge funds. one of the biggest

is only 1/10 of china's. the u.s. released the data after bloomberg submitted a request under the freedom of information act. global news, 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. you can find more stories on the bloomberg at top . francine: thank you so much. we should all be worried about china's debt. that is the message from larry fink, the ceo of blackrock. he spoke to bloomberg earlier. >> we all have to be worried about it. but keep in mind, if the economy continues to grow 6%+, you can't grow at 6% and have your balance sheets grow faster. muche future, i would prefer seeing the economy grow at 6%, without the same time some form of deleveraging. francine: larry fink'commentss -- malcom scott joins us. it seems the pboc is gearing up for a bigger world. >> it does. it seems the pboc is among those people who are worried about china's that. broadening, looking at areas of formerly didn't. little nitty-gritty instances. credential framework it has set up

in china.he likely sales driver. and japan has g7 finance ministers for a two day meeting beginning on friday. this includes sluggish local growth, rising currency tensions and the limits of monetary policy. but there would be furthered to miskick -- there might be discussion of further spending. the president of taiwan has refused to adopt a 1992 thing about the status of the island, if there was only one china. beijing has warned any breakdown in relations will be blamed on her. my next guest has downgraded japan as a stronger-than-expected yen. the earnings and markets lose e-nomics. in ab we have the head of equities in asia. you downgraded your stance on japan after that in action with the boj. >> a bit of a surprise, but it was on the downside. we downgraded japan at that point in time. he sullied the market, and central banks are not helping as we thought they would. reduce japan the neutral position. angie: what does abe need to do to regain confidence? >> central banks for injecting li

we continue our expansion into china. we are filling quite bullish on china.top of that, we believe that us,a is a huge growth for 90% of revenue comes from china. india is only 3%. we believe that india will be the next big growth for us. you have long wanted to consolidate the group into one single airline. how far are you are away from being able to do that? what does such a carrier look like? >> well, the dream is to be like a ryanair or easyjet with one corporate structure. forum, weeconomic persuaded them to rename it. i think we will make some announcements at that. i've had good meetings with the prime minister's of thailand, indonesia, malaysia, and singapore, so i believe the potential for creating single ownership of airlines is not far away. it requires companies like ours to keep driving it, but i do see some light, and it is exciting times. haidi: do with this. after the break, joining us to continue the conversation on "first up". ♪ set to acquire for $1.1 billion. that is according to the daily inquirer this morning. they are expecting that dea

you have to understand china. china is curbing costs.crease in for the past seven years. china is curbing growth. haidi: that was the story. nothing seems to be able golds shine.ll yvonne has been taking a look for us. yvonne: we have seen the momentum really build on the metal this past month. if you compare the dollar index to the gold rally, you can see this divergence has widened here . we did hit 12.99 on friday. dollar has hit that 11 month low. ont all started happening april 28. we saw a double whammy on the dollar. to fed and the boj continued keep things unchanged. also, the boj stunt markets by doing absolutely nothing so we saw the yen spike and there was more pressure on the dollar. those are huge issues that are going to be supporting the price of gold as well as other alternatives in terms of the raw materials. take a look at silver. it is just skyrocketing. seeing it at 17.82 an ounce. it has reached a record. we have reached the highest sawl since last may when we the price of silver around the current price right now. t

china, we have a trade deficit with china of $505 billion this year. we have a trade deficit with mexico $58 billion. they are killing us at the border and everything else. we all know that. the drugs are pouring across. people are coming across. everybody is coming across. they do nothing to help us. they will. they lend up being good neighbors. we'll have a good relationship if i'm in there. but when we have a trade deficit with china of over $500 billion a year, i say let there be something. they are taking advantage of us. we can't do any worse. if we had a trade war, to be honest, it can't be worse than having a trade deficit of $505 billion. i say that loud and i say it clear. let me tell you what will happen. when we get tough with china, they will stop devaluing their currency. they are absolutely killing us by devaluing their currency. they are making it impossible for our companies to compete with china. and by doing that, it's taking our jobs away. look at our country. lock at the jobs. the real job situation, not the phoney job with the 5%

but in recent years, china and the u.s. has become increasingly active in the efforts to win indonesia over to their own side as tension increases in the south china sea. chinese president xi jinping and indonesian president joko widodo agreed to step up cooperation between their country's supply industries. china provides anti-missiles to indonesia. the countries are also discussing radio equipment. meanwhile, u.s. president barack obama promised to cooperate in developing equipment for indonesia's navy. the u.s. has already supplied it with fighter aircraft and attack helicopters. japan is also reaching out to indonesia. last december saw the first meeting of the foreign and defense ministers of the two countries. japanese self-defense force personal visited an advanced service belonging to the indonesian navy. japan offers to help the force develop the nautical charts it needs to deploy submarines. >> translator: depending on what the indonesian navy wants, we will consider helping them develop new skills. >> reporter: c

anna: trouble in china. a top analyst says the country may need a bailout worth trillions of dollars but the morgan stanley ceo says he is up beat. >> the second largest economy in the world and growing at 6.9%. it is certainly growing at a rate demonstrably faster than the rest of the world. preparing for the u.k. referenda before a pre-vote, that as the corporate bond market suggest that don't accept a brexit. one of the world's most showinge hedge funds is a great\showing backlash. ♪ welcome to countdown. anna: a very warm welcome to the program. it is past 6:00 in the morning. here in london. let's get to a very interesting chat. a reminder of where we have been in the dollar over recent months. fed chat boosting the dollar once again and that has been the story for the past month. we have here in the blue a chart that is showing what is happening in the dollar to dollar index which is sinking. a bit of a boost as investors increasingly factor in june, withas possible meetings the fed getting a boost fro

china,on the subject of it is clear that there is some source of cyclical recovery underway in china. you still have the very severe structural headwinds, which may well impact the country for a number of years to come. but cyclically, china is recovering. the marketsting how always tends to focus on exports for china. they always say that is the best indicator of what is going on in china. rubbish. imports tell you how much demand there is within the domestic economy. the import growth a year ago was -20%. it is now getting close to zero. -- there yet,y or but we are getting close. it will continue and there are signs that it can continue. dealthat provides a great of order for the global economy. i am not sure enough to send oil prices that much higher. anna: where do you stand on the eurozone growth at the moment? germany factory orders in march. exports picked up. it seems there was a bit of a domestic demand falling a little bit, orders for outside the eurozone surging. getting that kind of a boost to the german economy. it is a very volatile status. where do you think the eurozo

are going toallets be encouraged by china but only on china's terms.y could be in the works. the authorityf has pretty much said it. bitcoin is definitely not in their idea at the moment. transfernables you to money without the monitoring of the government. which is precisely what they don't want to do. rishaad: what is the technology and how does it work? alex: block chain is a huge phenomenon of 2016. 40 of the major banks of the world are getting together and trying to come up with block chain standards. the opportunity is that if they don't get into it now then the market may pass them by. if they don't do it now they would never do it. it is encrypted and distributed ledgers that banks can use to ,ransfer money and trade immediate settlements. reducing the execution risk. paying the banks money. rishaad: thank you very much. up, the golden opportunity that the hedge funds have coming up. we'll tell you what that is. we will tell you when trending business returns in a couple of minutes from now. ♪ rishaad: asian equities dropping again today for t

as china's group of car -- uber

that we welcome a rising china. in fact, that's the reason that we're hopeful that they can be persuaded to abide by the international rules of the road when it comes to resolving competing claims in the south china sea. when you're an economy as large as china, when you're as influential as china is, particularly in that region of the world, then you benefit from the ability of disputes to be resolved without going to war. you benefit from disputes being resolved with the expectation that everybody's going to follow the rules. that's the case we make to china. i think that's an indication of how we're able to work with china, how we welcome a rising china, but, look, we're going to have our differences and we're not going to shy away from expressing those. reporter: quick question on iran. the secretary of state in europe. does the white house want to see more european banks do business in iran? mr. earnest: i think what the white house wants is to fulfill our responsibility to international financial institutions,

jack didn't start out to create the amazon of china and it is into the amazon of china because there was a company that did try to become just the height in meters of mount everest except that it isn't that it was convenient and there was an unlucky name for the company. jack didn't want to do this in 1999 when he founded the company and he was right because the market wasn't mature enough for three important reasons including he didn't have enough money. he also couldn't pay for the goods and he couldn't ship them reliably. if we fast forward one of the reasons it is so successful is that he sought peace problems and he created what i call an architecture of trust. those of you that visit china know that the rarest commodity oother than the fresh air is trust. it's just the society developed in a certain way and trust with preserved within the family and then theoretically it was going to be the state and the party but those other things are broken down and to ultimately create a successful trading environment he understood he had to close that loop so heated and innovation some peo

christ china is very good that. -- china is very good at that. they made it happen.ths we haveo seen growth. steve: in europe you are seeing some recovery. guest: it is stagnant. look at china. everyone says 6.9 is slow. compared to the chinese markets, how big it is, 6.9 is huge. steve: thank you for your time. we will send it back to you. manus: thanks for a much. let's talk about the region and the fiscal restraint. months of cheap oil have horse the gulf nations to tighten their strengths. cut another 17% this year. the imf is concerned that austerity may cause unnecessary pain. i read this and i say this is , i reflect back on the warnings to george osborne about coming too far too fast. where are we in this debate? >> -- this isere that the worry. the imf is expecting you could end up with economic growth at 1.3% versus 4.3%. last year a major slowdown and the economy sector could be slowing down more. the issue here and what the economists say, governments need to be helping the economy. and trying to pull down when times are good. but this is a story of diver

's moves in the south china sea. theatic pictures capture moment and overcrowded migrant boat capsizes off the coast of libya. five people died. also coming up, the price of oil has passed $50 a barrel for the first time this year. we will tell you what is behind the move. of the disappearing act louvre museum. you could be forgiven for thinking the famous pyramid had simply vanished. we will tell you more about that. france has begun to dip into its emergency fuel reserves to deal with gas shortages as hard-line trade unions slow down the oil sector. it's not just the oil industry. electricity production could slow down with strikes and most of the country's power plants. unions are also calling for mass protest across the country. all to kill the government's reform plan that aims to make french labor laws more competitive. the government's main adversary is the hard-line union known as the cgt. they have a lot staked on this fight with the prime minister. for the only day union still defying the government in an i

to deal with china. duterte and binay, on the other hand, say they want to build ties with china through dialogue. >>> japan's foreign minister has laid out a development assistance plan worth billions of dollars for some southeast asian countries. kishida is currently touring the region. he laid out japan's policy in a speech in bangkok, pledging to set up a new framework for the so-called five mekong states. they include thailand and myanmar. kishida said it's aimed that helping them build infrastructure, improve customs procedures, and develop workers skills. the day before kishida met with his thai counterpart and they agreed to develop areas along the mekong river. >> translator: thailand holds the key to developing and linking areas along the mekong river, because of its location in the center of the river's basin. >> kishida noted the rapid economic growth projected for the region. his thai counterpart called for japan's support for his military government. it plans to transfer power to a civilian

of china and u.s.? what do we watch out for? >> i'm pretty much a centrist on this. i worry about an economic slowdown in china and overassertiveness in china especially in places in the south china sea where china is trying to exploit the rules and expand territorial control over its neighbors and this could lead to flashpoints whether in taiwan or the philippines or taiwan or the next u.s. administration in particular. at the same time we vitally need china as part of the global economy to avert global problems with our own domestic economy and through international economy, for the well being of the planet. so we can't get away from working closely with china but the competition is still likely to grow, in my perspective, and china and how it handles itself will be extremely important as it's run up to its party congress next year. we need xi jinping but we won't be able to trust him on certain issues as maritime tension or viesh space but we will work with xi jinping in china to the extent he's will

from japan to china, analysts concerned about the rising risk of a default chain reaction in china.away. we talked something about last week when i was at the morgan stanley china summit, the risk to the banking system, and is a banking crisis possibly looming in china. and influential ratings analysts talking about the nonperforming loan situation in china being much worse than the government figures of 1.75% of outstanding lending. she says it could go nonperforming by the end of the year. why is this tied to the possible default? a lot of these liabilities are tied into wealth management products. guy rock a did last year, issuing 3500 new wealth management products every week in china last year. the industry went from 23.5 trillion -- excuse me, 7.1 -- and basically they are taking individual's money and traditionally they invest in bonds, equities, and derivatives, but now what we are seeing is cross investing. wealth management products investing in other wealth management products, layering on top of each other, and often times only on single underlying assets or shaky assets

part of one china. likely that china is not going to like what they don't here. a military parade starting as we speak. the stock markets there, we party scene big outflows this quarter. sorry to bring you back to business, but what is the story there with the iphone? end ofiphone at the april, tim cook said the smartphone market is no longer growing it they've had their first quarter-on-quarter sales decline in over 10 years, so that will weigh on taiwan's corporate profits for one thing. exporthe entirety of the sector, which makes up two thirds of gdp here, so she is facing some dire economic conditions. she has three quarters of negative growth, so it's going to be a really important first year for her. rishaad: thanks very much indeed. right, quick look at what's at this ceremony taking place, this dance performance taking place ahead of a military parade. we have the first female president of taiwan being sworn in as the new president. she let the democratic progressive party to a landslide win in

with china as well. one of the things that we have spent a lot of time on is the deep concern we have with the use of the cyber rome to steel trade secrets and to use cyber for commercial gain and this is an issue that the president engaged directly with president sian and we got an agreement with the chinese that they will do that. others say that has to be enforced and implemented. at the same time throughout the region and around the world we are trying to stand up every day for enforcing the property rights of our companies and every industry including the pharmaceutical industry so this is very much at the top of the administrations agenda and i think when i hear my colleagues from treasury, from commerce from ustr they are intently focused on it so i do want to give you the assurance we are doing everything we can. >> thank you, and north korea keeps invading our computers and our systems here. i was just wondering, are we reacting back or are we just trying to put up a wall so they can't do it col

china does not abide by the u.n.'s call for -- it means that china does not recognize them as refugees. they simply recognize them as illegal aliens so they round them up and send them back to north korea knowing fully well that they will be persecuted. i think it should also be noted that over 70% of these defectors are women, who are subject to all sorts of sexual assault, including rape. so the stories are well chronicled of some of these victims and what they've had to go through before finally finding their way to korea is just unthinkable that this is happening in 2016, that this is happening right underneath our eyes is just unacceptable. so to answer your question, the first thing is for us to really emphasize on china is for it not to send back the defectors, whether the answer lies in a creation some kind of a refugee camp in china or in mongolia or wherever it may be, but first and foremost i think it's very, very important that we convince china to adhere to the principles of the international community. t

and a bit short in china.arish bets were so high, that bull markets turned into a $5 trillion rout.; also, version australia chairs take off as they take the stage. it would take a look at why the billionaire founder is on a global buying spree. and i am keeping my eye on what's happening with your money this tuesday. it's the last trading day of may, and despite what will be a monthly loss, it is shaping up fairly decent, a fighting chance, across asia-pacific, especially midday. the markets that are lower are off the bottom. what do we have? china is the outperforming market -- 2%. shanghai composite, other

laura: wrote china and india have large militaries.rs with united states in solving global problems? >> >> india very much is a partnership. and it is becoming more and more so. our military already exercises more with india than any other country on earth. that is quite surprising. it worries me a little bit that there is so much increase in military expenditure all over asia. so 50% of the new arms imports around the world in the last few years were just in asia alone. and china, i think the obama administration and the bush administration has done a lot to try to increase the communication we have with the pla, the chinese army. it's not always perfect, and tensions remain. so we have a lot of work to do. laura: thank you very much for joining us. >> thank you. laura: being showcased, havana, whether a visit by the kardashians or more, cuba has for more.lace from havana, our report. report: in a fast-moving cuba, some things never change. the annual mayday parade is a show of strength by lower -- loyal revolutionaries, especially th

after china, mongolia is the second largest producer of raw cashmere in the world, responsible for 40% of the global output. however, many of the buyers visiting the company's booth were unaware of this. >> translator: whether the cashmere comes from mongolia or whether it comes from china, that's not really the sort of thing i've ever really thought about. >> although mongolia produces large volumes of raw cashmere, it doesn't have sufficient facilities to manufacture it to finished product so 5% of the output is exported to china. however, work is currently under way to ensure that the production and sale of cashmere products becomes one of mongolia's core industries. mongolia's largest cashmere manufacturer privatized in 2007 has actively striven to introduce the latest technology from japan and italy and develop products for overseas sales. leading this effort is the company's ceo, one of mongolia's most prominent entrepreneurs. >> translator: monday goalia has around 600,000 house holds and a population of 3 million. roughly 147,000 of the households are involved in cashmere produ

brad: apple is not doing poorly in china. 59 billion dollars in sales last year in china.eally better than any other american technology company and there is a history of failure there. the iphone sales are down in china. you mentioned services being closed down there. what is the state of the what do in china and you think tim cook is thinking there? >> apple has enjoyed stratospheric growth in china. it has hit a hurdle. growth has slowed. this is clearly a play on one level at least to build the services revenue in this country, if they can push apple pay. we don't know the details. if they can push apple pay, and can help drive the growth. brad: what are we likely to see? apple services like apple pay. what else being pushed out to didi users? hans: you campaign for products, .- you can pay for our ducks you can pay for services utility bills, and we pay or we have alipay. with didi, there are millions and millions of ride today. that the payments and apple is part of that. for apple pay to be more popular in china, it means and at where people will want to use a payme

china is pretty much our next destination.ng to have retail store in shanghai pretty soon. angie: you heard it here first. what about an ipo? we remain optimistic. we look at the capital markets, which are not doing well at this point, but for us we are focused business, really focused on delivering the best experience for gamers everywhere with our products, our software platforms, and that's what we want to do in the near term. just focus on the experience, for gamers, by gamers. angie: you are not only as ceo. you are a superstar in the gaming world. thank you so much for coming in. it is good to talk to you. razer's ceo. next, a japanese food producer announces plans to buy back shares. all the details for you on the stock exchange, coming up next. ♪ on whatet's check in our reporters are watching this morning with trading underway in asia. reporter: the battle of the buybacks. clearly, someone won. chance. reporter: that was my initial production. reporter: first come first serve, right? 2.42%k here is as much as for shar

also coming up, turning our focus to china. ♪ rishaad: foreign exchange data from china pointing toward. reporter: everyone is looking for signs of stability in the chinese economy and we got to a degree. point 1%, theour second month in a row of rising outbound shipments. that is a number made prettier by the yuan appreciation. helpedr currency exporters be more competitive by chinese leaders are not banking on a boost from overseas demand for their recovery efforts. the premier saying, the economy still faces great downward pressure. domestic demand continues to be week. imports fell for an 18th consecutive month, down 5.7%. lower by near 11 percent in dollar terms. that helped bump the trade surplus up to a larger than forecasted $45.6 billion u.s.. china's foreign exchange reserve posted their first back-to-back monthly gains in two years, last year, china had to burn through half $1 trillion in reserves to defend the yuan after that surprised devaluation. last month, we saw some stability return as china's reserves rose by $7 billion to $3.22 trillion. fed holding off from raising

. >> here's what i see in china, we see in china, the middle class there is booming.o you look back just five years ago, there were about 50 million people in the chinese middle class. five years from now, that number's going to be almost 500 million. i mean, this is an as is unprec growth. >> i parsed every comment. you did not talk about middle class. which made us feel that something was wrong. >> no, it was my error for not talking about it. >> okay. >> i could not be more optimistic about china. i think the long-term thesis is in tact. there can never be anything in the history of the world. and i'm still as optimistic as i've ever been. >> cook tells us that companies love the product growth. i know we were watching it separately, feeting about it almost at exactly the same time. the most interesting point compared to this the comments on china. >> i agree. >> i think it's important that was very much a long-term view that he was more positive. that doesn't change the answer before that sales declines have happened this year in china, down 70%. and over the year

can china have it both ways? is china trying to sideline asean in relation to the south china sea maritime disputes and what's the administration's response to the consensus between china, brunei, cambodia and laos and what is the position on asean's role on resolving the maritime disputes? >> thank you very much. first of all, i very much appreciate your comments on north korea and agree very much with you that china has a unique role to play because of its unique relationship with north korea. we're seeing some positive steps forward in terms of implementation of the security council resolution but it's not yet dispositive so we're looking very carefully at that. can't agree with you more that china can't have it both ways in a number of areas. it can't be a party to the law of the sea convention and then ignore or reject the provisions of that treaty including arbitration as an appropriate mechanism and the binding nature of any arbitration decision on the parties to that decision. so, we would expect that chi

china's internet search engines reject the words "panama papers." this lawyer says the government is blocking his effort to publicize the information. >> translator: i posted information about the "panama papers," but it was deleted immediately. >> reporter: he kept on posting connections to china's leaders. but in mid-april he was taken in for police questioning. >> translator: regardless of the content of the "panama papers," citizens have the right to pursue the truth. the government's approach to cover up the information is unacceptable. >> reporter: china's ruling elite are wary of what further revelations from the "panama papers" could mean for the administration of xi jinping. an administration that's made tackling corruption a major talking point. nhk world, hong kong. >>> the u.s. has once again sent a warship into disputed waters in the south china sea. the vessel sailed close to one of the artificial islands being developed by china. this is the third such operation by the u.s. since last october. the u.s. department, defense department,

in china -- most violent peri ods in china's history. further turmoil in brazil as the president awaits trial over impeachment. protesters have been taking to the streets in support. a film focusing on recent atrocities in china is screened at the glamorous film festival. china whereegin in 50 years have passed since the start of the cultural revolution. the campaign unleashed by chairman mao is widely recognized as one of the darkest times in modern chinese history. millions were humiliated, tortured, and killed during the people which the government officially labeled a catastrophe in 1981. half a century later, there are still not official commemorations. china, a a rarity in museum dedicated to the country's cultural revolution. it is private memorabilia commemorating the red era, regarded as one of china's most divisive and deadly periods. ideahave long followed the of not to speak but to let the cultural relics talk. what is important is to hand down the experience and lessons learned. onorter: half a century ago may 16, 1966, he l