u.s. was president of. china of interfering with american politics and technology he says beijing is using economic and military tools as well as propaganda to advance its interests in the u.s. china's foreign ministry has rejected the allegations. and. top republican said there's no hint of misconduct in the f.b.i. reporting to supreme court nominee brett kavanaugh senate democrat said the reported sexual assault allegations complete the senate is expected to vote on cavanagh's confirmation later this week hundreds of thousands of people in need of aid on the indonesian island of little way see a week after an earthquake and tsunami devastated much of the odd and more than fifteen hundred people have been killed looting has become such a problem that soldiers have been ordered to shoot looters. let's get more on our top story now the u.s. vice president with china harry her stay is an ethical hacker and computer programmer who is best known for successfully hacking into voting machines in the united states and h

u.s. and china. the first largest and second-largest economy dominating many of the policy discussions within the g20, the imf. we will be able to recognize that this is not only a matter of two countries, this is a matter of hundred 89 countries. -- 189 countries. kathleen: i asked if there was any chance that leaders from the u.s. and china sit down at these talks and find some common ground? she said it was just about economics, maybe so. when you go home, you face the politicians, politics, and that is when it gets really tough. haidi: you will be attending a symposium. what's on the agenda? kathleen: john williams, president of the new york fed, spoke to bloomberg last weekend made it clear that more gradual rate hikes is what he is in favor of. moving toward normal, exactly what emerging market policymakers are concerned about. i will be speaking later with the central bank of south africa , also the head of the banco de mexico. a very full agenda. said trade,wati emerging markets selloff is go

u.s. and china. inflowsr a lot of the that lead into u.s.d other markets had more growth in comparison with emerging-market tech because interest in emerging-market assets has been more muted in comparison with last year. that, we also have seen outflows from the tech sector because of the corrections on the price front which many market commentators have said it is because of the significance price action earlier this year. we continue to like this sector because of strong earnings expectations, especially after the correction opens up more attractive valuations. nejra: you like tech that blackrock. you also like financials. banks have been underperforming despite good growth, higher rates, and respectable earnings. if that trend of banks under performing going to continue? steepeninge curve could continue given the robust growth outlook as well as argue that in the u.s. come inflation should hold for central banks targets. that, banks so far year to date have underperformed versus the broader markets. in our view, that together with regula

china's actions have contributed to a trade deficit with the u.s. that last year ran to $375 billion, nearly half of our global trade deficit. as president trump said this week, we rebuilt china over the last 25 years. now, through the made in china 2025 plan, the communist party has set its sights on controlling 90% of the world's most advanced industries, including robotics, biotechnology, and artificial intelligence. to win the commanding heights of the 21st century economy, aging directed its bureaucrats and businesses to obtain american intellectual property, the foundation of our economic leadership, by any means necessary. beijing now requires many american businesses to hand over their trade secrets as the cost of doing business in china. it also coordinates and sponsors the acquisition of american firms to gain ownership of their creations. worst of all, chinese security agencies have masterminded the wholesale theft of american technology, including cutting-edge military blueprints. using best-selling technology -- and using the stolen tech

china's markets to suffer. in fact, we want them to thrive. but the u.s. wants beijing to pursue trade policies that are free, fair, and reciprocal. we will continue to stand and demand that they do. [applause] sadly, china's rulers have refused to take that path. the american people deserve to know. in response to the strong stance president trump has taken is pursuing they comprehended and coordinated campaign of underlying support to the president, our agenda, and our nation's most cherished ideals. i want to tell you today what we know about china's actions here on. -- here on. some of which are publicly available. all of which are fact. speak,id before, as we beijing is employing a whole of government approach to advance its influence and benefit its interests. it's employing its power in more proactive and coercive ways to interfere in the domestic policies of this country, and interfere in the politics of the u.s. the chinese communist party is rewarding or coercing american studios,s, movie universities, think tanks, scholars, journalists, and local

u.s. vice president mike pence a message to china's rulers is this. this president will not back down. in a fiery speech pedants escalating u.s. rhetoric. broadly blaming china for everything from military aggression in the south china sea to intellectual property theft to advance its global interests chinese security agencies have masterminded the wholesale theft of american technology including cutting edge military blueprints and using that stolen technology the chinese communist party is turning plow shares into swords on a massive scale u.s. media is reporting that includes inserting microchips into servers used by apple and amazon to spy on u.s. companies pence also accuse china of religious persecution and human rights abuses cracking down on chinese christians buddhists and imprisoning more than a million muslim weekers in government camps and domestically while the u.s. special counsel robert muller continues his probe into russian meddling in the twenty six thousand u.s. election. pence reiterated president trogs claim made last week at the united nations about china and the u

u.s.-china trade war has turned to mail. president trump plans to pull out of a treaty that gives chinese companies discounted shipping rates on small packages sent to american consumers. u.s. officials say the administration sought to renew the treaty but was rebuffed. theresa may is considering a plan to extend the brexit time.tion sources say the u.k. prime minister wants to keep britain bound to ua -- u.k. rules. the move could break the impasse but skeptics are likely to accuse theresa may of delaying brexit. japan's exports unexpectedly fell in september, the first drop in almost two years. that came as natural disasters disrupted economic activity. a continued gain in imports was spurred by higher energy prices. nejra: thank you so much. the u.s. treasury has stopped short of calling china eight currency manipulator in a new report. despite the concession, the yuan remains on the administration's watch list. to its lowestell level since january 2017. joining us now is bloomberg's china economics reporter. rate and happ

china. the divisiont won't show -- the u.s. was accused of escalating tensions and meddling in china's affairs. alphabet found a security ghitch on google back in march but kept it quiet over concerns bout privacy failures. >> we'll start with a quick look at how markets closed in the u.s. session. the dow and s&p 500 clawing back some of the earlier losses with the dow gaining 0.2% while the s&p 500 ended slack. of course we have some bargain hunting as haidi mentioned. utility stocks and consumer shares down, investors piled on to those sectors. we also had no clear direction coming from the bond market given that we saw some respite we the bond markets which saw as the columbus day holiday nears in the u.s. tech did plunge amid heightened tensions between china and the u.s. the nasdaq falling 0.7 the lowest level since august 4. suffice it to say a very volatile few sessions the fear gauge gaining for a third consecutive session now finishing above that 15 level mark. let's see how all of this will translate in asia. >> that

u.s. ships in the south china sea, sales to taiwan. as u.s. provocations? first of all, i think we have to be clear. what the incident that took place. you are right to say it was in the south china sea. so it's at china's doorstep. it's not chinese warships going to the coast of california or gulf of mexico. it's so close to the chinese island and so close to the chinese coast. so who is on the offensive, who is on the defensive? this is very clear. arms sales to taiwan, this is a good example of american intervention into chinese internal affairs. >>chris: let's talk about north korea. does china agree with north korean leader kim that any states he takes toward denuclearization must be matched by u.s. concessions on the other side. how do you respond to allegations, even by president trump that china has relaxed its sanctions against north korea and is allowing goods to flow into north korea? looks>> china has voted in favor of the un securitycouncil resolutions . we are - - >>chris: you have not relaxed them? >> we will implement them. >>chris: do you t

u.s.-china trade and the u.s. position on trade.lly think that the midterm elections changes that significantly. guessing there is a lot of attention being placed on the g20 meetings between president trump and president xi. our sense is that we need to brace for a protracted trade war quickly from the u.s.-china trade turning into something much longer than what people might have thought even six months back. shery: you are always great talking to you. thank you. jahangir aziz from jpmorgan. coming up, china is considering a tax cut to boost auto sales. that has automakers around the world rising. we will talk about the next. this is bloomberg. ♪ this is bloomberg. ♪ amanda: auto stocks getting a boost in the session today. surging on a bloomberg scoop that the world's largest auto market is proposing to have the tax on par purchases to 5%. let's get to david welch. pricessee in the share that there is enthusiasm. how meaningful will this be for automakers? david: it could really help. the chinese markets have been struggling for a

u.s. loses -- >> i agree. >> should china be kicked out of the w.t.o. if the u.s. loses? >> you know, yes, the first question -- we are committed to the trilateral process. we are working -- hopefully we will develop a common understanding of what new rules would look like with the e.u. in japan and then branch out from there. yes, we are probably a little more skeptical about the viability of rules to actually significantly modify chinese behavior. but that does not mean we should not pursue this approach which we are pursuing. for example, the 301 action, we took -- it has four components. we took one component to use the rules, the w.t.o. rules, and i brought a case to the w.t.o. dispute settlement system on the licensing issue, licensing regime in china. but the other areas which we identified, cyberespionage, strategic investment, other issues we felt were not appropriately covered by w.t.o. disciplines and therefore that's why we went he tariff route. well, it's still in the very early stages. the e.u. has also filed another -- very similar case. and japan may or ma

u.s. and china tight monetary policies. the u.s. implemented fiscal stimulus and tariffs. nowt hit by that trying to implement fiscal stimulus and playing catch-up. the big measures china put in was firstly to implement an ecb style whatever it takes to support its global bond market which is substantial, to protect lower quality bonds, to support liquidity in the bond market. liquidity injections into the banking system, which will take away a lot of funding strains. the third is consumption tax cuts. that is important. the government is actually taking a more pragmatic approach to stimulating. they look at the next several years and how we can generate sustainable growth over the course of the cycle. the chinese consumer remains in good health, giving tax cuts to that consumer will be a more sustainable way of growing over the next few years. we had one round of cuts implemented which was $60 billion u.s., a nice stimulus to push in, and looking at another $60 billion at the beginning of 2019, a nice way to reflate the economy. haidi: great to have you. the deputy portfol

u.s.-china trade war. there will be cost increases that will lead to a slowdown. i think the u.s.ill prolong in the future. that is making people worried. the midterms are important. not china will be much more accommodative to the u.s. demand. trade war might have concern to the slowdown of the economy. but they are trying to win the next revolution. the china investment will not slow down in terms of artificial intelligence or the autom otive sector. concerns of the trade war will affect the supply chain, but equity related investment sectors should increase. the wake-up point will be in the first quarter of next year. hery: when it comes to stocks in different industries, it is the relative. -- it is pretty relative. these stocks outperformed chinese techs. the blue line is fang and the white line would be baidu and alibaba. look at thee a sectors in both countries, which one will outperform? in terms of the three industries i look at, the i.t. segments into the bios sector, andnd the bio sector electric cars and alternative market sizes for these are 50% of the global market,

u.s. and china could become even more severe figures show that china's trade surplus with the u.s. has hit a record high that's despite the partial introduction of us tariffs on two hundred billion dollars worth of chinese goods on the month of september china exported thirty four billion dollars more goods to the united states than important. earlier our correspondent spoke with at the meeting and said resolving trade disputes would be easier if the world trade organization was reformed. it's about month speaking about the biggest risks currently to the global economy growing number of analysts is mentioning debt and currency devaluation problem in emerging markets. you yourself said that. examples like argentina and turkey very specific and you don't see a big danger of contagion why is that well the first thing i said is that of course one of the major risks surrounding our outlook is an escalation of the trade war there are some positive signs though with respect to the trade negotiations between the u.s. and mexico and canada but on the other hand it is still possible that this

u.s.-china trade were at this point. could get a local resolution resolving the tariffs at some -- butith a must bigger with a much bigger question is having other countries to have china have a different stance to how they treat intellectual property new ideas. be stayingwill both with us. we will turn our back to the united kingdom. theresa may's conservative party is holding its annual conference this week with the party fighting amongst itself over the the best approach to brexit. continuing questions arise over the the prime minister's leadership. anna, give us a idea of what is going on. >> absolutely. so chancellor hammond is currently speaking. we started the conference with big questions over theresa may's leadership knows the price we have seen the governing party and the u.k. arguing amongst itself still about which strategy to adopt on brexit. be on theson seems to move. writing about his plan on what he would do one exit. calling theresa may's plan preposterous. now the party is rallying behind theresa may.

earlier, i sat with china's ambassador to the u.s. discuss the state of relations between our two countries. ambassador's way, welcome to fox news sunday. i want to start with vice president pence's tough comments about china last week. here he is. >> >> when it comes to their maligned politics and policy, will continue to expose it. no matter the form it takes. >> chris: the vice president called out what he says is your economic aggression and what he called you're in bolded military and he alleges are your efforts to interfere in the u.s. midterm election. are the u.s. and china now engage in a new cold war? >> first of all, i have to say all these accusations are groundless. one of the fundamental principles and china's foreign policy is no interference in the internal affairs of other countries. and we have been consistent in this position. we have a very good track record. >> chris: you were part of a quite tough meeting with secretary of state pompeo in beijing this week in which top chinese officials said that they would take

relations it could attempt to bargain for concessions by capitalizing on u.s. china tensions for instance. oh you know. china has a strong influence on north korea and so does america and russia north korea is very important to us in order to resolve the issue of north korea's nuclear program we will require support from all parties including a major power such as the us china russia and japan that without the help of these nations we will not be able to secure folder nuclearization and achieve peace and prosperity on the korean peninsula but i say this because i want to emphasize just how important russia's role is to this anti-a thing. what's what's the bus. i said i'd like to ask you something when north korea and america had per america blame china blame beijing for manipulating north korea now the relations between north korea in america have improved i mean we don't see anyone in the knowledge ing beijing's role or thanking china say commanding north korea to improve relations with america in other words when relations are bad between north korea and the u.s. i

background what is going on here between china and the u.s. this is an extension of the sort of cold conflict, or maybe , overbecoming hotter trade and other issues. this is, was first raised by president trump when he was at the u.n. saying china was interfering with elections. he did not provide evidence. mike pence went further. there was no specific citations of actions they have taken. there was a lot of pointing out the fact there were retaliatory tariffs that china has imposed on u.s. goods, disproportionately hit states that have supported trump in the past. those are agricultural states, where china has the most leverage because of what they import from the u.s. impact thato the the administration is wanting to put more pressure on china. it works well for the group politically as they approach midterm elections in which republicans are in danger of losing the u.s. house. shery: we have seen military tensions between china and the u.s. in the south china sea, not to mention the report about china hacking. what sort of response have we

u.s. and china. the fed is raising interest rates and we are dealing with that, but that is something we have seen coming for a long time . people are hoping that after the midterms, we get a deal of some sort between the u.s. and china. but like you said, earnings are not doing much to lift u.s. stocks. if you look at a correlation of the individual stocks in the s&p 500, the real-life correlation between these stocks is at a six month high. that is typically when you see that break down and you see stocks moving on their own. but it seems like the stock market until today just wanted to go down. everything was going down together in a very broad selloff. vonnie: thank you to both of our czek ands, sarah pon cameron crise. kailey: former vice president joe biden and robert de niro are reported to be the latest high-profile figures to receive suspicious packages. in new york, a bomb squad removed a suspected -- a suspicious package left at the restaurant of robert de niro. the associated press says t

u.s. keeps increasing tariffs, china will back down. the u.s. should not underestimate china's resolve.iscuss with the former .xport import bank chairman theirant china to change system, their government-directed industrial policy, but is this a feasible goal? fred: it is a legitimate complaint. that is that there is a lot of subsidy. in the past two years, there was hope that china would be more of a market economy, more entrepreneurship and less engagement, and i think we have seen the opposite under xi jinping. i think it is a legitimate concern. the question is, can you unwind this? what we have seen also is that, because of this pressure to make china a global economic player, the commerce department has had to take more measures to control the economy. we have seen them subsidizing more exporters because of the tariffs. in july, they said they would cut import tariffs. at the trade war heated up, they said for u.s. automakers, they would hike tariffs. is a productive? fred: global growth rates are a big concern. the imf has reduced its forecast for this year's growth by 0.2%. not

>>chris: the administration takes a hard line against china on the march. are the u.s. and china in engaged in a new cold war? we will discuss the growing tensions with china's ambassador to the u.s., cui tiankai. only on "fox news sunday". plus, >> if he don't look good, we don't look good! this is our president! >>chris: we will ask our sunday panel what they make of kanye's visit to the oval office. and our "power player of the week". >> welcome to blair house. come on and. >>chris: a look behind the scenes of the presidents guesthouse. alright now on "fox news sunday". and hello again from fox news in washington. we begin with breaking news. the return of american pastor

u.s. and china.hore yuan setting above six. 92. -- 6.92. aussie bonds are nudging higher ahead of business confidence and data for september. oil trading near a one-week low as. -- that is how we are looking heading up for the asian session. word: let's get you first news that with jessica summers in new york. strained u.s.ady china relationships have taken a turn for the worse. bundlemike pompeo cited -- fundamental disagreements. he was there to break china on his short trip to north korea but long accused washington of escalating the trade war interfering and taiwan, and meddling in china's and turning affairs -- internal affairs. the trump and ministration said to be concerned about the depreciating -- you on. fallen in the last xmas raising regulation that china has deliberately weakened it as straight tensions escalated. we are told treasury secretary steve mnuchin is under pressure to confront beijing. the government of pakistan is to approach the imf for a bailout package to destabilize the e

we see lots of signs of china slowing down. as in the u.soften sought china as competitors in manufactured products. for much of the emerging markets, china was the great customer because it is relatively resource poor. if they slowdown, that will be felt around emerging markets and there are questions of debt. david: at what point do supply lines get changed? china decides to buy from other people. u.s. companies decide to invest in different places. how long can this go on before longer-term changes, if not damage. >> companies are grappling with that. those kinds of decisions, how do you invest in where you set up your supply chains, are not we you do on a month-to-month basis. you try to forecast over years. the uncertainty and trade policies something we have been hearing many businesses complain about that because it is difficult to know where we will be. david: how does politics play into this? we have a midterm election coming up. happy if thisas does not get resolved the china? the democrats don't necessarily disagree with that. >>

u.s. dealing with china has had so many issues, especially in the trade area. the u.s., together with europe, should join hands and approach china as a group and deal with the grievances about property rights it -- intellectual property rights. once you do this, it is a much more focused issue. feel thatna doesn't deposition of a currency manipulator. is there anything that has been intervening to try to support that? does it mean it will not happen? julia: based on current criteria, china doesn't really meet those conditions. the treasury could change these criteria, or it could signal that it is taking a more discretionary approach. even the language itself, if it is not labeled a currency manipulator, the language will be keenly watched. i think the main issue is at this point, tariffs and counter tariffs continue to come in and it has escalated. there is a lot of desire to see us not taking a further step in the trade war escalation. haidi: i want to draw your attention to one of our charts, just going through a snapshot of the selloff we saw in financial m

u.s.-china trade war has been going on for nine months. started at the beginning of the year, seems like it has been forever. each time there was a stage where the market said this is temporary, it is going to be over soon, there will be a truce . that is changing. the news today, bloomberg had a great report on the details of mnuchin's comments about the threat of currency manipulation. you pile that on and invoke a 1988 law and say we will interpret this with the 1988 law, not the recent statute. you look at the trade war, the tariff wars which are invoking law which was designed to protect national security and written half a century ago or something like that. you say, what's happening here? the prediction from peter navarro in the beginning of this was we will settle this. it will be quick. if you remember the interview, and there was a column in the wall street journal of march this year, look what has happened. the forecast are wrong. all sides are digging in deeper, and that is a dangerous thing. we will see earnings that may start

china for imports. in terms of export markets, the u.s. is not so reliant on china, so i think that sets the scene where the u.s. is a larger market and in that respect. i think retaliation through a tariff could be a change the u.s. is looking for. and i think that's why we asked the w wto. and lack of property rights and subsidizing through the policy mechanism the u.s. and been talking about. they have been asking for reforms for a decade. and didn't start with the trump regime, but occurred under obama and so forth and the ue and the japanese will given a luke warm welcome. and i think for the chinese it's different and the u.s. says, well, we are going to use the tariff instrument as a way to pressurize the reforms that they want at the level of wto and levelling the playing field with respect to china. >> i think that this is a gamble by the trump administration. and it made-- a belief that u.s. interests were better served within a system where market power wouldn't determine outcome. where all countries regardless of size would beha

u.s. and china. gary, former u.s. ambassador to china, oh, boy, ambassador, i have to get right to this.it looks like to chinese weponized the supply chains of apple and amazon or the companies frm who they bought their servers, how does this affect an already tense standoff? >> we will have to get to the bottom of the details especially that companies have denied being hacked or being -- having any components in their motherboards or in their servers, but it's obviously a very serious allegation and we will have to get to the bottom, it doesn't help with the current state of u.s.-china relations which at all time high -- low excuse me with the trade difficulties and some of the military maneuvers that have almost caused an accident or a collision of our naval forces in the south china sea and everything else that's going on. this has got to be great concern. liz: china i understand angry because president trump has started this trade war but by the way, allegations of these chips being placed, hidden inside the motherboards goes back to before he was president, 2015 when president obama

certainly an environment of heightened u.s. chinaons, we should be more concerned about all of these instruments for influencing behavior. guy: thank you for coming in to spend so much time with us here at number, tina. let you knowt to about the auction results now. turns out it slightly weaker than forecast. it true 2.989 along the highest 32.32 with a yield of 2.989 versus 2.987 right before the sale. the bid to cover the ratio is a little weaker than the last auction, today 2.56. michael ishurricane expected to be the strongest to hit the continental united 2004, holding 2% oil production in the gulf of mexico. joining us with the latest is bloomberg hoss tina davis. tina davis.berg's how bad could this get question mark tina: this -- get? tina: what it's not going to bring is a lot of rain to the region. we are talking about a dangerous storm surge associated with the system, but it won't drop feet of rain or necessarily cause dramatic flooding. that's kind of the good news, it is going to be much more of a wind event. it is not

u.s. is unhappy with and china will obviously be on the u.s. with, and china will obviously be on the. in practical terms, it probably does not matter that much because in terms of the legislation for a country labeled a manipulator, the steps after that, the punitive steps, they have already had them. sean callow, thank you so much. a new flag wish device taking aim at apple. this is bloomberg. ♪ shery: this is daybreak asia. hallway overtook apple as the number two smartphone maker in august and they are celebrating with a new flagship device that might take it to the top. read, cell phones have more and more features. how much does this new wally device have? >> on the back of the new phone there are three cameras. one more than apples cap and phone -- top and phone. they have come out with a phone that has a lot of brand-new features it hopes will appear to a lot of high-end users. the other one is a fingerprint sensor on the screen and ai software that can detect people and objects in real-time as the phone works. so the bet is that it is a

the report declines to name china a currency manipulator. actually said that no major u.s. trading partner was need relating their currency. it's a semiannual report that comes out. treasury secretary stephen mnuchin has been under pressure from the white house to shame certain legaler a framework, china didn't quite cross the threshold to be labeled by this report as a currency manipulator and the treasury department did not do so. in some ways it does give a amid rising tensions on multiple fronts with china, but it was also somewhat expected. so we cannot say it will significantly ease tensions going forward. shery: secretary mnuchin has been talking about currency manipulations is back in july. a receiving any sort of consensus building within the white house when it comes to its approach toward china? greg: we have heard from president trump that he himself has called china a currency manipulator. he has made those comments, and in some ways what is interesting is that the report continues to contrast with his own treasury department, which is saying we are very concern

u.s. and china imposed tariffs.he official data showed that factory growth is growing at its weakest pace in two years. the numbers showed this, pmi slipped to 50.2 from 50.8 in september. that's a hair short of a contraction. there's a lot of attention on the new export orders. they show what future business could look like. the sub index dropped to 46.9 from 48. so factories are getting hit by slowing domestic demand and also by the deteriorating afraid teis between the u.s. and china the central bank set the yuan to its lowest level in ten years. that's been sparking a lot of debate here if the policymakers will allow the yuan to weaken past the psychologically important 7 level. stock market did relatively well despite this there was one stock that is not doing so well. that's the stock of wh group this is a top pork producer, it's listed in hong kong the company said its profits are taking a beating because of the trade war. the q3 numbers came in 31% down from a year ago. that's because of the high supplies as

china recent example, threatened to deny a business license for a major u.s. rporation if they refused to speak out against our administrations policies. and when it comes to influencing the midterms, you need only look at beijing's tariffs in response to ours. tariffs imposed by china today specifically targeted industries and states that would play an important role in the 2018 elections. more than 80% of u.s. counties targeted by china voted for president trump and i in 2016. now china wants to turn these voters against our administration. china is also directly appealing to american voters. last week the chinese government paid to have a multipage supplement inserted into the des moines register. the paper of record of the home state of our ambassador to china, and a pivotal state in 2018 and 2020. the supplement designed to look like a news article casts our trade policies as reckless and harmful. fortunately, americans are not buying it. for example, american farmers are standing with this president and seeing real results from the stance they have taken

china for its imports. in terms of export market, the u.s. is not so reliant on china. so i think that sets the scene where the u.s. is a larger market, and in that respect, i think retaliation through a tariff could bring about the changes that the u.s. is asking for. meaning to level the playing field. i think that is why they also ask for the reforms at the wto. there have been some occasions where the chinese have not been respecting some rules regarding lax enforcement of intellectual property rights, or some subsidization in industrial policy, mechanisms that the u.s. has not been happy about. they have been asking for reforms for the past decade already. so i think it is something that did not start with the trump regime but actually occurred already earlier under obama and so forth. and the eu and the japanese have given it a lukewarm welcome so far. i think the bargaining positions for them vis-a-vis the chinese are also somewhat different. and i think the u.s. is in a position saying, well, we will use the tariff instrument as a way to pressurize the reforms th

china radio international now broadcasts beijing friendly programs on over 30 u.s. tlets, many in major american cities. the china global television network reaches more than 75 million americans. it gets its marching orders directly from its communist party masters. as china's top leader put it during a visit to the network's headquarters, "the media run by the party and the government are propaganda fronts, and must have the party as their surname." it's for those reasons and that reality that last month, the department of justice ordered that network to register as a foreign agent. the communist party has also threatened and detained the chinese family members of american journalists who pry too deep. it blocked the websites of u.s. media organizations and made it harder for our journalists to get visas. this happened after the new york times published investigative reports about the wealth of some of china's leaders. the media isn't the only place where chinese communist party seeks a culture of censorship. the same is true across academia. look no further than t

china. abouterybody is talking the u.s.-mexico-canada trade agreement or revised trade agreement having the clause that has been described as an anti-china clause, making it harder for china and -- canada and mexico to consider negotiating with china. the eu does not have a negotiating -- agreement with china. the uniteded that if states is hands-off trading with china, will they say yes? given that they may want to protect autonomy in trade policy? >> i think the tariffs are very much part of the trade initiative. the european union, the japanese government would never say they support the policy of tariffs. the european union >> when it is the metal and the aluminum and they are being hit -- >> it has been impressive the level of compartmentalization of those issues. so far, the eu and japan have managed to separate those things out. i don't think it has been helpful, but i don't think it has interfered at a practical level. if there were to be terrorists on automobiles, that could fs one -- terrace -- tarif automobiles,

u.s. treasury avoids labeling china a currency manipulator. the yuan's it's at its weakest level since january 2017. mending fences, we will hear from former canadian prime minister on rebuilding the u.s. canada relationship. let's get you started with a check of the averages. we are seeing u.s. stocks trading at session lows. several firms missing earnings estimates. that's pulling down the dow which is now losing for a second consecutive session. is also down. we are seeing tech and telecom stocks leading the declines while the nasdaq is down 2.3%. treasury yields are being pressured today and we are now seeing the dollar gaining ground the most since august. a lot of this pressure was exacerbated by the tweet from 7 -- secretary mnuchin saying he had met with president trump that he decided not to attend the future investment initiative summit in saudi arabia. following that tweet, we saw more pressure for the market and all of this now playing into what is happening with investors and the selloff today. we are seeing that selling pressure h

retaliated.ready so, among those trade issues, this u.s. chinaict is most difficult and most serious. trade, conflict of tend to make will negative but on both sides -- eventually, u.s. and china would agreement.mise the yen, which has been weakening a bit. how important is that trend, which could continue with dollar stronger trade warl in terms of hitting the target? >> exchange rate -- in the short affected byld be interest rate differential -- that is true. -- inflationun differential. originally in the short-term, it affects exchange rate. thing is thattant -- the fundamentals. i think the current exchange hopeiguration -- i exchange rate stability maintains -- it the bank of japan governor speaking to kathleen hays. let's talk about the outlook for japan with james. we were talking about the fact haven.n is a how much is it a haven and in control of governor kuroda? >> it depends how badly the stresses in the market. the external stresses, it seems they respected by the fact have a policy in the bank of japan that the yen will rally. that s

china. so far i don't see people concerned too much that there is a deal ready in the wings for the u.s. aidi: you have got to be extremely optimistic to draw that correlation. thank you so much for that. president trump is certainly hailing the new north american trade deal as historic, but it is too soon to talk to china. with one trade dispute settled, can we expect any progress on the big one? let's bring in our next guest. evan, really great to have you on. extrapolate the positivity. some sort of structure around japanese, u.s. trade ties as well. any kind of positivity around china? evan: no. i think it will be the exact opposite. all these recent deals give trump confidence to think he can withstand making a quick deal with the chinese. i think it takes pressure on trump, especially the nafta deal takes political pressure from the farming community, and it just emboldens him to take a really hard line. so i think we should expect an increase in the tariffs on $200 billion to go to 25% in january. i think the trump administration increasingly wants deep, large structural changes in

u.s.-china relationship? this doesn't help. theare bringing essential new cold war situation that will develop between the u.s. and china. china will deny. we will press forward. this will strain relations. i don't see how we come back from this for quite some time. china denies it, it will be another smoking gun. >> from a security and military point of view, it sounds like that sources are telling us they've known about this for three years. part of aont, this is long-term process they have been going through. for trump, it bolsters his case on tariffs. from a political point of view going into the midterms, it makes his case even stronger that we have been in this war with china and we need to do something about it. david:from a if he knows this, e it is part of why he have the case? wrote theactically campaign strategy for the republicans going into the midterm. this is what i have been saying all along. the democrats have been pushing back. there is this wonderful independent newsagency verifying what i am saying. up tos g

u.s. oil isn't the only thing china is throwing overboard they are selling us bonds that's u.s. debt while at the same time they have their own increasing debt problems as the chinese economy is slowing down some are reporting china is local governments are under a pile of debt amounting to roughly forty trillion you one that's about five point eight billion u.s. dollars and s. and p. analyst was quoted as saying the potential amount of debt is an iceberg with titanic credit risks here to discuss the u.s. debt and china debts and and debt in general and trade are the president of euro pacific capital peter schiff in our to correspondent in china expert caleb wapping gentlemen welcome thank you peter i've enjoyed being with you on the in question program last week i saw you were there early. we are but i want to take a little bit different tack to day you've spoken about the need to reduce government spending in the u.s. but i'm curious as to your take on how the economy would have done without this tax cut without this sort of fuel injection sugar high. well we may already be in

i do not think china will target or attack u.s. companies in china. at will not change the course of u.s. trade policy, i think that is very clear. it would probably end up hurting chinese employment or oil investment. i think the rule is to hunker down and try to offset the impact of the trade war by using decisionsnd careful that will tighten control of currencies, and try to avoid provoking further trade tariff measures. but it will be a bumpy road. david: donna, we have to leave it there. i think we will start talking that later. thank you so much. there is more coming up on the program. this is bloomberg. ♪ this is bloomberg. ♪ we are waiting for chinese trade data to come through, but we are getting comments from the china customs .reatment -- trade they did flight exports in the fourth quarter. they are talking about have the trade growth may slow down, and how imports of consumer goods increased on tax cuts. watch and wait for those. david:they did flight exports ie fourth quarter. when they come out, we will get them to you. markets are stable

u.s./china.ities on both sides of the ocean reflecting the concerns that we had earlier in the year? >> i think the outlook for the two economies is a little bit divergent, carl. the u.s. economy has considerable nearterm momentum there's a compelling case to make that it's going to fade as the fiscal stimulus wanes, fiscal risks mount china has a dicier near-term economic outlook as the gdp and monthly data flow for september indicates. the longer term is more compelling, more policy space to utilize. there is a divergence here >> in terms of that longer term outlook, i know they just announced these plans. is that what you're referring to >> i think those are cyclical responses, morgan, and they will put a floor on the near-term risk of the chinese economy. the rebalancing of the consumer has led the economy dealing with some of these productivity issues for the supply side initiatives. that frames the longer term for china. with the renovations and this trade war they are still constructive fo