we didn't hold back on criticizing china when we weught china was wrong, but also think knowledge when they moved in a positive direction. we knew when we needed their assistance, it had to be from the perspective of how we can advance something in our two national interests. you have to be able to sort the two separately. something that has come up less since the president took office, the issue of currency manipulation. here you have china with a trade deficit. is that enough to declare china a currency manipulator, how cautious should the treasury proceed? jacob: if you look at the criteria that are considered, now part of the technical process, the key issue is are they taking actions to drive down the value of their currency to gain unfair advantage? the way you measure that is are they intervening in order to devalue their currency? year, china has been intervening to support the r&b. that makes it challenging to look at the current situation and reach a conclusion that there is currency manipulation. clearly, there is a transition underway from a very managed exchange rate to a

china continues a strategy to control the south china sea. i testified last year that china was militarizing this critical international waterway by building bases on seven chinese man-made islands in the disputed groups. despite subsequent chinese assurances at the highest levels that they would not militarize these bases, today they have these facilities that support long-range weapons and placement of radio towers, barracks for their troops. china's militarization of the south china sea is real. i am also not taking my eyes off of russia. they flew bomber missions near alaska. it was the first since 2014. russia continues to modernize exercises itsnd considerable conventional and nuclear forces in the pacific. so despite the region's four significant challenges, it is my last word to you that we strengthen alliances and partnerships, working with like-minded partners on shared security threats like north korea and isis is a key component of our regional strategy. the five bilateral treaty alliances, australia, japan the , republic of korea

as regards china, the u.s. pursued a two-pronged strategy, seeking to engage china across all domains, economic in particular, but diplomatic and others, and at the same time, working at our allies and partners in maintaining our own forces in the region to preserve a balance of power that was favorable to our interests and the security of our allies. the goals of that policy were to deter thetability, to possibility of aggression, while waiting for engagement to work its magic. the u.s. hoped in effect to ,btain and to transform china to encourage its leaders to see their interests as lying in the preservation of that order, and to set in motion processes that would lead eventually to the economic and political liberalization of that country. as in europe, so also in asia. our ultimate aim was to build a region whole and free and open -- an open, liberal region. it has become important -- a -- apparent that this has not worked. china is far stronger, far richer, but it is more oppressive domestically than at a

china. >> no longer take the excuses from china that they're concerned too, they need to show us, the only country that can stop north korea is china. china has to cooperate. this is now down to do we want to continue to see these ballistic attacks from north korea or does china want to do something about it. >>> let's bring in will ripley. good mortganing. how much influence do they really have over their nuclear program. >> reporter: did you notice the difference in messaging with president trump saying the u.s. will take action against north korea and nikki haley saying only china can stop north korea. when you talk about sanctions china has to enforce them because they are the only meaningful trading partner. preemptive military strike very unlikely although secretary tillerson didn't take it off the table when visiting here in asia but would create such a destabilizing scenario north korea would consider it an act of war, not something that the united states would probably do according

a view from china.reserve officials basically have given a stronger signal that they may shift away from the post financial crisis investment policy. they also said they see considerable uncertainty about the effects of a possible stimulus from the donald trump administration. but they said they do not know how quickly there will be phasing out of investments. the owner of krispy kreme will buy panera bread. that is as it expands its empire in the us market. panera has about 2000 bakery cafes in the us. fresh offerings appeal to health—conscious consumers. india. the next instalment of our week—long series looking at the property industry. first it was undeclared wealth, now it is property. india's prime minister is on a mission to stamp out illegal financial activities, as well as tax evasion. but while last year's tax bank caused a lot of inconvenience for many indians, a crackdown on real estate may actually help them. like many indianfamilies, estate may actually help them. like many indian families

in china the ballpark statistic. it is definitely part of this process of chinese search for meaning with the collapse of the thoughts. buddhism is large. the other question down front? >> yes, sir. >> wait for the mic if you could. >> this may be a follow-up to the question just asked but i am wondering if there is increasing pressure from chinese business men to perhaps enter into joint venturing, if you will, with the american business to help their economy and likewise is there more entrance in our country in american businesses. >> the trading relationship between our countries has been started to become robust in the 1980s. it really took off in the 1990s. it exploded after 2001. that said, the business community in america is split on how it views china. in the past, it used to be after the collapse of the soviet union and tinman square it was the main thing that kept the relationship on an even keel. now, back to the question if you are a high technology manufacturer and you want to do business in china. the

"china is not a currency manipulator." he didn't say anything about i'm not calling them a currency manipulator because they're helping out with north korea. just china is not a currency manipulator, and that's true. most experts believe that china has not been manipulating its currency for some time now. so there really is no justifiable reason for trying to label china a currency manipulator. but yesterday, the president felt the need to link his acceptance of the truth about china's currency to china's efforts with north korea. now, if you're a trump voter, and you want to believe that, what you have to believe is that the promise donald trump made to you to bring back american jobs from china by forcing china to stop manipulating its currency is being abandoned so that china will help stop the madness in north korea.

with or without help from china. how are these comments going to affect the high stakes meeting with the president littater thi week? we have cnn's will ripley joining us now from beijing. what do you know, will? >> reporter: i know that so far publicly, chinese officials do not seem fazed from the comments in "the financial times" from the president. they put out a politely worded statement saying there is was a conversation between secretary of state rex tillerson and the top diplomat. they talked about the importance of the meeting. these are two powerful world leaders with different approaching who will get together on a golf course of all places, considering that xi jinping has banned public officials from golfing here in china. the u.s. thinks china is the key to reining in north korea. for a long time, china argued the united states needs to engage with the north. they do not have the economic leverage they feel they do. i can tell you from traveling to north korea and talking to officials there. they say they

haidi: china construction bank, the of china, ag bank among names we are waiting for. next guest is positive when it comes to vibrations after a strong performance this year. he is the head of equity and credit for asia-pacific at ubs wealth management. we have seen this reaction across various asset classes in china, largely due to tighter regulations as they tried to clamp down on over leveraging, products proving to be a headache when it comes to viewators, but how do you bank profitability and china going forward given that they are struggling still with that lens -- bad loans? >> a quick distinction is important to make in terms of systematic risks in the chinese banking sector. there is a defined between the smaller ones, especially the big ones. they had their share of issues, but the source of risk is more modest. in that respect, the activities happening earlier on from the central bank and more recently brc 2-d riskshould be welcome. tothey do too much -- de-risk this space should be welcome. generally speaking, we are increasingly positive on the asian banks

the south china sea. meanwhile, with a rebalanced policy, too heavy on rhetoric and too light on action, years of senseless defense cuts and now the disastrous decision to withdraw from the trans-pacific partnership, u.s. policy has failed to adapt to the scale and velocity of china's valchalleng. that failure as called into question the credibility of america's security commitments in the region. this committee has grown increasingly concerned about the erosion of america's conventional military overmatch as states like china and north korea develop advanced capabilities to counter our ability to project military power. while america's military remains the most powerful on earth, we must adapt to the new realities we face. we must think differently about forward basing and posture, logistics and mother-in-lawization and our joint force for the renewed reality of great power competition. specifically on the issue of munitions, this committee has heard testimony each year about the qualitative and quantita

-china relationship. as we all know, donald trump and some of his key advisers have targeted china for what they characterize as unfair trade practices, which they claim have jobs. millions of u.s. the rhetoric took something of a turn for the more dramatic, particularly after his election tabledsident-elect trump the so-called one china policy alongside trade issues, saying it could be perhaps a bargaining chip as part of a larger trade and economic negotiation. after some weeks, that very tense turn in relations reached thaw,nuous thought -- first with a call between chums to fire and president xi jinping of china, and most recently, there was the first encounter face-to-face between the president at mar-a-lago this past thursday and friday, so we are speaking today right on the heels of that very important first meeting. , it was changed quite dramatically in its complexion by the u.s. action in syria last week. we will talk about the effect that that had, among other things. in short, i really want us

china's not changing its trade laws. i don't see how trump can sign a bilateral investment treaty which calls upon limitations when he doesn't really respect that particularly international arbitration. but i think the progress that was made was what he calls the transaction. he probably let the chinese know and this is the trade-off. they want to keep that as well. two things. one you have to find less from other people. that's painless and i can see the grain contracts in the me contracts moving forward. i think that will happen and so on. you have to do something on the quote export site. i'm not quite sure what that will be that they are stuck about internal growth. by the way there will be a whole raft of unfair treatment cases that will come in for that he will end up with a court deciding whether it's legitimate or not and the congress will probably make some strange ruling. my real question to ask is why can't you accept or do you accept the fact that we can deal with this problem are what i call managed trade so

china continues a strategy to control this t south china sea. testified that china was militarized in this international waterway by building bases on seven chinese manmade islands. despite subsequent chinese assurances at the highest levels that they would not militarize that support long-range weapons. dmien's militarization is real. i'm also not taking my eyes off of russia. it is on success it days for the first time since 2014. russia continues to modernize and exercises conventional and nuclear forces in the pacific. despite the reasons for cig inform cant chal lens, since my challenges, since my last wort to you we strengthened alliances and partnerships chls working on shared security threats like north korea and isis is a key component of our regional strategy. our treaty alliances, japan, the republic of korea are joint force efforts. we have also advanced important partnerships they are viewed that has helped underwrite peace. there is more work to do. we must be ready to confront all challenges from a tradition of strength and with c

for years the united states has looked at china china is the only country to curb the behey yor. instead china has chosen the bully south korea for defending itself from the north korean threat. china is doing all of this to stop defensive system. i welcome the trump administration on the issue of north korea. as these discussions continue the united states should be clear while we earnestly seek cooperation we do not seek such cooperation at the expense of our vital interest. we must not land not bargain over alliances with japan and south korea. as its behavior towards south korea indicates china has acted less like a responsible take holder and more like a bully. its rapid military modernization, provocations in the east modern sea signals an increasively pattern of behavior. despite efforts to rebalance u.s. policy has failed to adapt to the scale and velocity to rules based order. that failure is called into question the credibility of america's security commitments in the region. the new administration has an important opportunity. for example, i believe there is strong mer

-china relations.e expected to drop -- expected to address such issues like global trade, one china policy, and climate change. joining me is kevin rudd. he was the prime minister of australia from 2007 to 2010 and again in 2013. he now serves as the president president of the asia society

inside china.ng-edge technology, which we don't teach in college at all. so the human resource problem and the manpower problem is more and more -- getting more and more serious here in china. >> because everyone's going to the silicon valley? >> they offer better. obviously. oh, here are the -- >> these are the famous ribs? >> yes. >> maybe the number one thing that the seriously food-crazed traveler coming back from shanghai will tell you to eat other than the soup dumplings, of course? zeran paigu. or simply, cumin ribs. ♪ it takes two cooks working at once to make this dish. one deep fries the ribs in hot oil until just right. another toasts the ginger, cumin and other spices in a wok. and then in go the ribs. and if you are a devotee of what's called wok-hei, you sit as close to the kitchen as possible to capture that elusive fast-dissipating breath flavor of the wok itself. toss them around, coating those bones with all that good stuff, then serve. and because we like it to burn, thomas order

and netflix trying to break into china.n incredibly contentious investor -- wells fargo investor meeting in seattle. more members narrowly surviving that shareholder vote. this is daybreak asia live from bloomberg's u.s. and asian headquarters. i am betty liu where it is just after 7:00. >> i am yvonne man. we will hold onto the big gaps we saw after the french election. we are talking about hitting records again on wall street. it seems earnings was a big driver today. earnings as well as the anticipation we will get and be delivered this immense tax reform which includes a big tax rate,he corporate that will bring the animals. back to the business world. we have seen it so many times, the anticipation of this is enough to drive the markets to these records we have seen. will we buy the rumor and sell the news? we will see, come tomorrow. yvonne: will it be just tax cuts, or permanent tax reforms that the democrats can side with? that will be key. let's see how asian markets are faring. wall street and new zealand, shares

the president saying china can stop north korea's nuclear program. what's the united states -- >> reporter: sorry having issues with the earpiece, but this tweet and the statement president trump gave with the "financial times" is certainly -- well it's not phasing the chinese, they put out a statement a few hours ago saying during the overnight hours secretary of state tillerson had a chat with china's top diplomat and not mentioning at all any specific conversations about north korea. we know that the united states believes that china holds the key to reigning in north korea. they believe that china has economic leverage over the country they have not utilized but the bush administration also relied without success on china to solve the north korea problem, which is why president trump is saying the united states is prepared to go it alone, which means they might be willing to go at it alone, he said he would be willing to sit down and have a hamburger with kim jong-un as he said during the election campaign. the probably least likely according to

china coming to this feeling fairly confident after china back to the one china policy. anything at them, wanting to be as prepared as possible. yvonne: let's bring in a china expert, chairman of the east asian institute live from singapore. it is interesting professor, we talk about the delegation that trump will be bringing at mar-a-lago like wrecks wilkerson -- rex tillerson and wilbur ross. who is it shaping foreign policy for trump? who is behind this right now? >> at this stage, no one is trying to shape anything. it is more a question of getting to know each other, the script has not been written out yet. but how to shape the script is what they are up to. the chinese are very experienced. xi jinping has been around for a ande, he knows the score, he knows what china wants. but he is not at all clear what president trump has in mind. i think he is quite right to say that he is prepared for anything, but not prepared to show too much of his hand. he wants to take it step by step because there is no rush. i do not think he is in any particular hurry to get things so

activities in the south china sea. it's time for the u.s. to push back in the way we do sensitive operations in the pacific today. these operations should be regular, unpublicized, undertaken by discretion and should not be constrained by the promise of chinese good behavior on other issues. fifth and finally, we will not be able to tame chinese power without strengthening our friends and partners. there are diverse initiatives that are required for success and i'll flag a few. the united states should first begin to seriously think about working with its partners to replicate china's access and denial capabilities. the united states cannot afford to put off the aid and enhanced training to tehran for much longer as we out to urge military spending and reforming concepts of military operations. as a matter of national policy, we should affirm our strong support for trilateral corporation whether or not the united states is party to these activities. as kelly emphasized, we should not give up on the nations of southeast

in china.th a total investment amount of more than 800 billion yuan. but as i said, because of the astory and they were still lot of red tapes. a lot of the investors, when they are working in this market, problemsd a lot of like low efficiency and red tape lack of transparency. so that, we will continue to work on those problems. and secondly, we do try to introduce a different investment product. to hedgey to help risks. for example, in february of this fell on china to hedge foreign-exchange rates in the onshore derivative market. so that would provide -- to the hedging onshore. in the market. and secondly, they tried to make tax policies related to foreign institutional investors, , simple and china to more clarified. so to increase the tax policy transparency, that is also important. of the indexes, i would like to thank a lot of people here for your help, on recent -- including the china bond market. it is a good phenomenon and it is good for the future and it is good for institutional in

china.as all about whether president 0bama got a staircase or not from his air force one plane. it is all these things that will be symbolic of the relationship, i think, things that will be symbolic of the relationship, ithink, going forward. ina relationship, ithink, going forward. in a strange way you could argue that donald trump has already won by the very visual xi jinping coming to the united states to donald trump's, not just coming to the united states to donald trump's, notjust his nation, but really to his estate. and it is specifically for them, not on the sideline of some other summit. donald trump is setting the agenda. clearly the world is hopeful for a stronger unison between the two nations. and we are getting more footage right now. they are meeting inside that resort in mar—a—lago. body language is looking fairly positive at the moment. but as you say, trade is the big issue. i think in the long—term, after the niceties of the summit, that is when the tough work is going t

china has just china could be the dominant snooker superpower.ous and lucrative tournaments in the world. prestigious and lucrative tournaments in the worldlj prestigious and lucrative tournaments in the world. i think it just shows the significant growth in snooker generally, and globally, particularly here in china, it is... you know, that growth has been consistent and our vents are getting bigger and bigger. 0bviously delighted to see that happening. it is great for our players, they are playing for huge prize pools now. the one tournament china would love to stages the world championship. it is being held in sheffield since 1977, and the city has a deal to keep it there until 2027. but, in the future, could the tournament ever m ove the future, could the tournament ever move abroad? you can never say never. myself, iam ever move abroad? you can never say never. myself, i am passionate ever move abroad? you can never say never. myself, iam passionate about staying in sheffield, because that is what i remember, and the game starts. realistical

china urging coma on both sides. lira jumping as president erdogan claims sweeping new powers, the biggest changes in turkey. dump in ans data hour, looking at first quarter growth, 6.8%. let's bring up this chart, #6839 showing the potential for further gdp growth looking ahead, the blue line indicating that target the government put andlace, anticipating 6.5% 2019, a six .8% handle, but the data dump continues and we have industrial output, retail sales, and fixed asset investment, all of that out in 60 minutes. not exactly the most surprising of indicators. we were expecting that 6.8% for a second quarter, but the question is whether it is sustainable, and also at what cost good we had credit numbers showing momentum in terms of money supply, shadow banking still running hot and china, so we dig deeper into that within the next two hours. we are 30 minutes away from the open in china, that singapore, taiwan, malaysia coming online and sophie taking a look at how markets are faring. a thin session with a number of

now, china.andshake, the body—language and the words tonight — this is as good as it gets for diplomacy nerds. it's china meets america, xi jinping meets trump, and the world's waiting to see who emerges on top. perhaps they're not as different as they seem. nationalists, businessmen who both recognize the art of the deal. whether they both end up with one is the stuff of the next fascinating 2a hours. trump fans still remember what he said about china on the campaign trail. the question is, does china — and will it bear a grudge? look beyond the sun—kissed setting and you'll find a minefield. this is one of those encounters that matters. the big beasts get to stamp their ground in the same room, to the gaze of the world press. and this is where we really start to see who has the upper hand — xijin ping or the man who airs his diplomatic grievances on a chat show. the president of china's coming, a man named xijin ping. do you know xijin ping? i never heard of him. i don't know who he is. if you

, china here is key. what we've been seeing in the past few days is also a shift in president trump's attitude towards china, which in this situation is probably the only way and the only country and the only government that somehow has leeway on north korea because of north korea's economic dependence on china. and so probably a clear shift in the attitudes towards china, at the same time the strong message of u.s.'s resolve. although at this stage, it looks like the u.s. is trying to find a diplomatic solution, political solution, and not trying to es ska la ka la -- escalate the tensions too far. >> i wanted to ask you this, too, we all know, the leader is unpredictable. but there's the fear, too, that u.s. president donald trump is, as well. this is what worries people, there's the brink man ship and for many watching across the globe, they don't know what's going to happen, next. and they are worried that the u.s. will strike. >> right. and as you said, both leaders are unpredictable in different way

at least for china i know united claims it has the most nonstop flights from the u.s. to china.here is a blowback here. very potential blowback here because the chinese population feels that united was discriminating somehow against this passenger, that can be a severe problem. united also has the most nonstop flights to china from the u.s., among u.s. carriers. big problema real because in terms of going to secondary chinese cities, united really has that market right now, along with chinese carriers. when it comes to chinese competition, they have more service than the others. that was the top trending story on weibo. that is china's social media. people are trying to figure out if this was illegal. could we see a lawsuit coming out of this? i think it is probable you will see a lawsuit. there is a statement this afternoon from two law firms in chicago that say they are representing him in that he released a statement through those firms and wanted to thank people for their support. they also said he is in the hospital. i think that because we have these attorneys on the case

we have also got china. china's growth remains pretty robust. however, there is some sense it may decelerate in the second half of the year. there is some hope as well that china will try to offset the property market the celebration with more infrastructure investment, that will help companies like umag sue and hitachi construction -- like kumatzu and hitachi construction. with mixed messages. haidi: the missing pace when it comes to abenomics, is there an indication they might switch this economic growth in export numbers to a more demand-driven performance were the spending will pick up? brian: it's kind of difficult to say. we have seen mixed signals. on the one hand, the labor market, you look at the jobless rate at the lowest in decades, yet wage growth is rising at a slower pace than it was last year. that is not good in terms of household sentiment and spending. imf raising its projection for japan gdp. sign. a good on the other hand, we see analysts setting back their forecast for when the boj mesa to taper, probably not this year -- wh

china believes the united states should negotiate, the united states says china needs to do more to use its economic leverage to scale back their nuclear ambitions. the other thing you mentioned trade. these two economies number one and two in the world linked but the president has been incredibly critical of what he calls c cal call c-- a very interesting meeting set in florida later today. >> donald trump hit list will be jobs, jobs going to china, trade barriers and the currency, three thing that is got him elected frankly matt rivers, we'll see if that comes up today. thank you. >>> let's bring in cnn chief correspondent christiane amanpour. the chemical weapons attack and president trump in a press conference says this about crossing lines. >> the country of north korea, we have a big problem. we have somebody that is not doing the right thing. and that's going to be my responsibility. but i will tell you that responsibility could have been made a lot easier if it was handled years ago. >> okay, so let's get there with north north korea christiane. obviously the president wants hel

president underscored the need for china to take steps to label -- to level the playing field for china to take steps to level the playing field for american workers for reciprocal market access. the two sides noted the urgency of the threat of north korea's weapons program. they reaffirmed their commitment to denuclearize the korean peninsula and fully implement un security council resolutions. they agreed to increase cooperation and work with international community to convince the dprk to peacefully was all the issue and abandon it -- resolve the issue and abandon illicit weapons programs. the two side came to discussion over maritime security. president trump noted the importance of adherence to international norms in the east and south china seas and previous statements on non-militarization. he also noted the importance of protecting human rights and other values deeply held by americans. the two presidents agreed to elevate existing bilateral talks to reflect the importance of making progress on issues. they established a new, high-level framework for negotiations. the u.s.-china

the president of china, will that tough talk lead to progress on trade with china.north korea, how can trump come away with a much needed wineed ed win. >> a very busy day. live at the white house. joe? >> reporter: chris, this really is a defining moment for president trump and this admi administrati administration. as you said he railed against china and his trade policies on the campaign trail. he promised a big win at the negotiation table. now going face to face with the leader of china certainly trades will be an issue. but these leaders have a lot more to talk about. >> these heinous actions by the assad regime cannot be tolerated. >> president trump confronting multiple international kgs nati including today's meeting with the chinese presiden

going to china, enabling us to do better in china. china has a consumption upgrade.l's becoming more globalized interviews, and taste , and in the way they consume. way for alibaba to take advantage of it. caroline: what sort of goods are we talking about? i am thinking a crackdown on luxury items will hit the french juggernauts. what will be sold in the u.s. to china? what we seeing with platforms is that you see apparel, fashion goods, mass-market price points. you see beauty products, health ,are products, gadgets electronics, a variety of things are doing well in china that were originally designed in the u.s.. they may have been manufactured in china, but were designed in branded in the u.s.. caroline: let's talk about another of your key investments, xiaomi. the way and having very powerful smartphones at a cheap price point. it seems that the competition is hot at home. when you see the company going? hans: four xiaomi, two fronts. they are the number two and number three in india now. initially to buy a phone in india, you had to go online to buy xiaomi. it t

the eu is already china's main trading partner, and china is the eu's second-biggest after the u.s.de comes to more than $1 million a day. the mantle ofn facilitating global trade. currently, finland's board members say they may not share the same values, that we share the goal of free trade. xi jinping has said that a prosperous and stable europe is conducive to the global economy. he has made statements like this, especially since the u.k. voted to leave the european union. haidi: this is not a bilateral relationship we have necessarily spend a lot of time looking at in the past. tell me about this relationship between finland and china. xi jinping's visit is a chance for china to resurface a relationship between china and the nordic reason. this is the first visit in my than 20 years, the last time was 1995. he will meet with finland's president. on this bloomberg chart, we can see the white line that shows finland's exports to china. it just crossed over with the blue line, which is china's exports to finland. posted a, finland trade surplus with china last 2002.the first since

china. china is north korea's only allied. you know, without china support, they support north korea. they give them 85% of their fuel and food that they could bring about the end of the north korean dictatorship. >> china may push for change but they don't want to destabilize north korea and end north korea and north korea and end up with a low refugee crisis. what can i do here? >> they can threaten to cut off support, but china relies on the united states just as much as north korea relies on china. there are ways that we can pressure china to pressure north korea. if the u.s., for example where to put a tax on chinese imports or make it harder for them to get imports into our country, that would be devastating and they're not going to put their relationship with the u.s. at risk just to please north korea. tribes are degrading relationships with the chinese. a great meeting with the chinese president and i hope to see that -- nicole: at the same time, they do not want the north korean regime to fail because ultimately that

them over to china.nother interesting topic we need to be talking about is currency manipulation. china of course has been trying to figure out where it stands in terms of the u.n. basket of currencies and the dollar. donald trump said it is potentially a currency manipulator. has not done so far. one final topic is the u.s. tried deficit, or if you look at it from the chinese side, the chinese trade surplus. $347 billion in 2016 was the amount of money the u.s. saw in terms of deficit. donald trump has been saying that has been very unfair and according to the american people, and he said he will do something about it. we will be looking at jobs, we will be looking at the currency, and we will be looking at trade, caroline. caroline: ramy inocencio, live from florida, great to have you on the show. our next guests says the diplomatic relationship between president xi jinping and president trump is considered to be one of the most important in the world. and this will be the biggest test so far for the u

this has offended china. it is india and the united states ganging up against china. higher today than they we re tensions are higher today than they were a couple of years ago. and your anxieties as well, about kashmir, why we should be more concerned, even more concerned now than we have beenin even more concerned now than we have been in the past? the united states and india, going up against china, china has forged closer and closer to pakistan. it is a counter ganging up to pakistan. it is a counter ganging up against india, with china and pakistan. what has happened is that this economic commodore, as it is called, a massive corridor through disputed territory, as mandated by the united nations. the entire area of kashmir is disputed, as far as the united nations is concerned. so, driving a highway, and economic corridor through territory which is disputed, is something which obviously india is not happy about. he has been mentioned already in the last couple of minutes, you can't avoid that, we must talk about the united states. you probably know that president

china. again, this is not something that is isolated between south us against north korea. and all kinds of things going on. china has a pivotal role to play, probably more than we do. i look for to them having those negotiations on mar-a-lago this weekend. host: are those topics you believe they will address? guest: those will be really strong topics, i believe. korea talk about north launching another bomb, another test, this is destabilizing to the area. for a in a resolution system only focus at north korea. it is not aggressive. it is protecting our allies in south korea and the 28,000 troops we have there. host: if you want to join in on the conversation with our guest about north korea and other call in, post on .witter a guest: i think he wants to be mechanized in the world as a legitimate superpower. of asiane chair pacific affairs and there, was brought up who is trying to hurt north korea? i cannot think of anybody. you look at the attack on his half-brother in malaysia when that

in china.o see what happens in france because, this election in france may be a lot closer than people think. most people think you will have two candidates in the first round. ton it will automatically go him. some polls that have come out in the last few days indicate that the second round may be a lot closer than people think. it think a lot of these are overhanging the market. the u.s. growth not being what people hoped it would be. happens in see what china. as i mentioned on your previous programs, the chinese are doing everything to stimulate the economy to keep it above six and a half percent, because they have the 19th party congress this fall. pick thehen they will thestanding committee of bureau, which is the number one in 14 issue for xi jinping. that.ave interest to keep do you thinke go, that the inflation numbers and what we see with bond yields is notthat the fed behind the curve with their rate cycle? with what i stick told you in the past couple of months. i think there will b

construction in china.irst quarter gdp saw a record number of starts in terms of long-term construction, so we are looking ahead to that. we will see how we at it is happening in terms of japan's komatsu and other construction makers in asia. yvonne: ramy inocencio on caterpillar. caterpillar is doing well in yvonne: asian market set to extend gains. that euro hangs on to its biggest advance since june. he pboc wants to control asset bubbles. yvonne: sansone's new phone suffers troubles. tinted screens and dodgy wi-fi. toty: north korea threatens attack an american war threat -- war ship. yvonne: this is the second hour of "daybreak asia." in hong kong. in newi am betty liu york. it is just after it :00 p.m. we had a big rally in the u.s. and we had financials leading the way. looking quickly at the open here in japan, looks like it is opening slightly in the negative. certainly some other factors to watch in asia aside from lingering risk of fact from the french collection -- election. yvonne: they're wait

situation --y need some time for china a tough situation. they need some time for china. has a weak position in terms of the nato, how much they should be contributing. south korea, another huge trade surplus against the u.s. i would imagine that germany would be in the spotlight. shery: thank you so much for joining us, head chief asian economist. and our currency editor, thank you so much. the u.s. backs away from enabling china. >> it is 7:30 here in hong kong, happy thursday. it is easter weekend. we are 30 minutes away from asia's first major market open. friday, 7:30our p.m. wednesday here in new york where markets closed down, the s&p 500 down about 1/3 of a percentage. i am ramy inocencio in new york. shery: i am shery ahn in hong kong, you're watching "daybreak asia." let's get first word news with courtney collins. >> president trump says he will not brand china currency manipulator. he is changing a core campaign promise and blames a strong u.s. dollar for changing competitiveness. u.s. 10 year bond yields and the dollar fell after the report saying the currenc

it is a stunning reversal from one china currency manipulator.t is a stunning reversalfrom one of his key election campaign promises. mr trump told the wall streetjournal that he changed his mind because china has not been manipulating its currency recently, and that doing so jeopardise talks with beijing about how to deal with north korea. earlier i spoke to an economist about whether the us president was softening his trade stance on china. in the past, china has arguably used currency to push its trade policy. they have moved away from that over the past year or so, and i think although the past year or so, and i think althouthock, the past year or so, and i think although jock, donald trump the past year or so, and i think althouthock, donald trump is the candidate a year ago was very vibrant on this point, that is not currently today's situation. again, he is not looking for a fight but he will push them on market access on things like tech, financial services, steel, autos, that is where you will see a very forceful donald trump. the us tre

air china h-shares, likewise china southern and china eastern.cks that fell in yesterday's session 3% bank branch under suspicion of wrongdoing. it is believed to be in relation to fraudulent bank bills. this is a throwback that instrument used in china that can be sold on to banks and financial institutions. apparently the fraud is to the tune of 3 billion yuan and affects private clients and other banks. they are looking into that. they are setting up a working group to assist police. coming up, ambitions shifting in china, and we speak to the country's chairman live from the auto show. ♪ rishaad: there we go. , beautiful day in hong kong looking across victoria harbour. counting down to the start of the trading day in hong kong and shanghai and shenzhen, futures contracts suggesting a slight movement to the downside. asia-pacific stocks overall falling back, a rather unconvincing session for u.s. equities and at in the headlines after that snap election called by prime minister theresa may. i am rishaad salamat from bloomberg's asia headquarte

or, perhaps, it is the fact that the us has put on china to call ita that the us has put on china tor. either way, china is the one to watch you and the key ally that the us may have in solving this. staying with north korea — the russian president, vladimir putin, has called for the resumption of six—party international talks. he was speaking after talks in moscow with the japanese prime minister. both leaders called on all sides to show restraint. we call on all countries involved to refrain from military rhetoric. we see it as a girl a call for the resumption of six country talks. translation: president putin and i have agreed that japan and russia will continue to co—operate closely and appeal to north korea to fully comply with the un security council resolutions and avoid further provocative actions. also making news today — human rights officers in the philippines have discovered a secret lock—up cell in a police station in the capital, manila. it was hidden behind a bookshelf, where 11 people were being held. the undocumented prisoners said they had been there for a week. the

china is a currency manipulator.00 factories since china entered the world trade organisation. when you look at china, when you look at every country, every trade deal we haveis every country, every trade deal we have is horrible. it's going to be only america first, america first. as with many other issues donald trump has been consistent from presidential candidate to president and on the issue of china just last week he said the meeting will be difficult because we can no longer have a massive trade deficit and job losses, telling american companies be prepared to look at other alternatives. also the chinese perspective on this, and editorial from the people's daily which is state opened, it says trade ties will benefit the countries and the world. a much more positive spin. the global times which is also state—owned, calling this summit and new start from the two countries. we have not talked about yougov result —— abouta have not talked about yougov result —— about a golf resort as much as this one. he welcomed

in china it is seen as such.hinese were likely reassessing their thinking on trump and their patients clock in terms of trump. press, the chinese state run media has been negative talking about the syria strike. i think they are concerned. this is meant to be a single -- signal on north korea. the korean peninsula needs bilateral cooperation to resolve this issue. nothing will move forward unless bosch -- washington and beijing work together. there will not be a grand bargain or some kind of magical wand strike to make it work. it requires some kind of substance -- consistent, bilateral diplomacy for the countries to work together, otherwise we are in a disconcerting situation. ramy: i want to dive into the bloomberg terminal and show the ectr function. this is the trade flow with north korea to its biggest trading partners. china is well on top, $6 billion in the last year. we know that china and north korea are the strongest of allies. it does not have much, but doesn't this striking from syria raise any chance