and the asia-pacific.ast month, washington said china was destabilizing the region with its dispute in the south china seas. task is almost over, and it is looking evenly matched, or are there leaks in the defense? what will the second half bring? 2014 and theg financial markets, as some investors fret over corrections. john dawson joins us right now. if you take a look at the s&p, it hasn't seen a correction of more than 10% in two years. >> the only one they have seen a 6% the last two years. of course, two years ago, that was the 2010 -- that was a concern. it hasn't happened since. many say it is going to happen. far, in thesia so shadow of quantitative easing, the bank of japan pumping out a lot of money onto the markets, but very different from china to japan, from india to south korea , very different cycles going on. let's get you the idea and have a look at the charts. there are lots of charts. japan, first of all, the mckay to 25 has underperformed all developed markets so far this year. down 7.5

edge folksh "asia edge" now.- "asia let's talk about china.e premier says they will hit 7.5% growth this year, they will hit 7.5% growth this year, are they not? >> more or less. they have already been signaling there is some plug -- some folks ability around the number. we think the second quarter is basically 6.9 and the third quarter maybe poster two 8%. that is basically why we are positive. are we going to see basically a return to all of the policies we have seen coming out of china in the past year? >> i think you are right. it isn't to the old-style stimulus come open the credit spigots and construction. it is targeted and reform-oriented. if there is a certain degree of reform-oriented stimulus, like investment in railroads, it is hard to say it is not a good thing to do. they will try to accelerate the timing of that. so it can have a fiscal boost from it. >> we have been talking about tencent today. m&a deals on the increase, especially in asia. >> this is something we are seeing on a global basis. this is a mimetic of the fact that

of those 19 are not in east asia. they're relative to central asia, not to east asia. and president xi emphasized no should dominate the security of a region and all countries have a right to their security independence from other countries. was that really targeted at the united states, or was that targeted at russian security ambitions in asian? i mean for the latter interpretation because of the locus of where he made the speech. that doesn't mean there were not elements aimed at the united states, but it suggests the complexity of the relationship. we should be very careful to do our homework before we jump to premature conclusions. great. thank you. prime minister rudd, you certainly travel to beijing a lot and have embarked on this very ambitious project at harvard to speak on these issues. i wonder if you will frame how this is all seen through beijing's eyes and how you think that sets the strategic framework going forward. >> good. thanks very much. i take very much stapleton roy comments. and there's two ways to transfer them to a snappy phrase which then cau

versus $180 million across asia. --is their intranet asia m&a intraasia m&a? there are some very notable exceptions. some of the drivers behind the m&a activity. i would mention one other thing. deals is notnt of extraordinary, this is the second largest quarter ever. >> let's talk about alibaba. we talked about tencent with company 58.com. >> there are three key drivers, among others. companieshnology buying either enabling technologies or companies that allow them to expand their portfolio. alibaba and tencent are front and center on that one. but having that seconds on enabling technologies. the second concept is securing resources. those resources could be metals, food, energy. cosco made a big deal buying an asian agricultural trader. after the first quarter, they bought a european one. etals bought a south african copper miner or part of it. all of those were multibillion-dollar deals. there were 14. a number of those were driven by that view of getting resources. then the last driver is sl we -- soe, state-owned enterprise reform. the postal child was t

to asia. but it will not offer china any vision of an integrated security system other than perpetual subordination to the united states in its own region. so i think it's a difference of tactics and important difference but not a fundamental difference of strategy. in terms of carbon, the obama administration, i think is following the lead of germany and some other industrial countries in thinking that the great economic challenge is to promote rapid decarbonization of energy supplies to avert the consequences of global warming. now, at the same time, with if you look at the world outside of the north atlantic democracies, this project is not being carried out by the countries that would have to carry it out for it to really be effective, that is, india and china particular. and of course china has just signed the biggest trade deal in human history with russia, to import natural gas which many environmentalists are trying to prevent being produced at all by fracking in the united states. you

more on that when "asia edge" returns. >> welcome back to this monday edition of "asia edge." the health check on china's economy shows a recovery in may. the slowdown may be over. >> hopefully it is over. we see the rebound to 50.8 for the official pmi from beijing. it is because beijing stepped in with targeted measures here and there. it gives you an indication that perhaps they are a bit worried. so they put this for for growth that they want to see happen. you did see an improvement from february. if you look at the various components, most of them were better except for employment because that dropped. many less of the people that were surveyed, some 3000 companies for the survey, expected to hire perhaps less in the future. not hire for the future. from a policy makers perspective in beijing, not what they want to see happen. worth noting here, it is starting to filter into the smaller-scale the companies -- small-scaled companies. 51.4, issuinge expansion back in april, but much more for may. and the smaller firms, that is perhaps where you still need a bit more suppor

. >>> we'll see how other markets in asia did today. most asian shares finished lower this wednesday. investors cautious before the u.s. federal reserve wraps up its policy meeting later on in the day. chinese equities under pressure. that's after the country's average price for new homes fell in may from the previous month. that's a first time that's happened in two years. this fueled concerns about the country's property market. the shanghai composite slid half a percent, finished at 2,055. some investors adjusted their stock holdings as a restart of new share listings draws closer. in sydney the as -- declines of .3%. 5,382. the lowest close since the end of march. the index was dragged down by a decline in the oil sector. australia's top oil and gas producer tumbled following the sale of a stake in the company by a major shareholder. meanwhile tokyo's nikkei average saw gains today. up more than .9%, 15,115. a weaker yen lifted market sentiment pushing up export related issues. >>> japan's trade balance is still in the red. the nati

"asia edge" coming up. this is bloomberg. >> this is "asia edge." look at our top stories. army strikes back. crude oils sending games with production under threat. who'sw do we determine the world strums thanked? >> thailand's rulers are under five are -- under fire. there are claims of modern-day slavery. rolling out new regulations, organize newo ownership. and more on this monday edition of asia edge. >> i'm tracking what is happening with your money this monday morning. . let's be honest. we saw this coming to respect. -- two weeks back. we are basically well above what we saw last week, about 113 for brent futures at this point. we are off the highs we had on friday but we are so halfway through the asian trading session. a hundred is what the average estimate from analysts.

asia edge is next. ♪ >> we are live in hong kong. this is "asia edge."stories this hour. as militants strike in karachi. asian stocks are at an eight-month high. coming up, the role of women in the revival of japan. womenomics.shes world cup work is still not done as the teams and the fans arrive. we are looking at the often rocky road to rio. how much would you pay for lunch with mr. buffett. someone in singapore thinks $2 million is fair. a lot of strong economic data . japanese gdp. report for the end of the month. china opened lower this morning. lucky 88.of by the

the pivot to asia. particularly a couple of things, first off, she was the one -- in the united states, but she was our secretary of state -- stood up against chinese expansionism in the south china sea. vietnam. old enemy of america. hillary sided with the vietnamese, helped back off the chinese. she in beijing freed the dissident civil rights activist and lawyer chen guan dang. were those bad things or can you at least admit certainly in asia she's helped strengthen america, opening up to burma, checking chinese territorial expansionism, standing for human rights. >> i think she worked with mitch mcconnell on efforts in burma. i think obviously she tried to at least give lip service and make some progress in the pivot to asia. here's the thing, paul. what are the tangible results she's going to talk about? i mean, you have this list of ten things you've talked about. first thing on your list is something she opposed. >> not true. i'm not going to let you get away with that. she is the reason we have s

not to east asia. and president xi emphasized that no country should dominate the security of a region and all countries have a right to their security independence from other countries. was that really targeted at the united states? or was that targeted at russian security ambitions in asia? i lean toward the latter interpretation because of the locus of where he made the speech. that doesn't mean that there were not elements that were aimed at the united states, but it suggests the complexity of the sino-russian relationship. we should be very careful to do our homework before we jump to premature conclusions. >> thank you. prime minister redden, you certainly travel to beijing a lot and have embarked upon this very ambitious project up at harvard to help think about these issues. so i wonder if maybe you would frame a little bit about how this is all seen through beijing's eyes and how you think that sets the strategic framework going forward. >> good. thanks very much. it's -- i take very much stap

they're further relaxing visa regulations for travelers from southeast asia. and they're planning to offer wealthy tourists special visas, allowing them to stay for up to one year instead of just 90 days. they're also expanding the network of duty-free shops. still, historically, it's taken japan 10 to 15 years to double foreign visits. so is 20 million by 2020 possible, or does it just sound good? hiroki fukanaga who represents a group representing japanese ends believes the target is within reach. but he says tourism officials must work on luring people to places away from the so-called golden route between tokyo and the ancient capital kyoto. >> only 20% of the whole entire contents of this country is already discovered. but we have to look at 80% of the things that we have in this country already. which the people, foreign people, doesn't know. >> reporter: but some in the industry question the government's approach, this push to focus on figures. they say doubling the number of tourists could end up ruining aspects of japan visitors have come to cherish.

>> asia did quite well.ordic banks, singapore banks, three each in the top 20. >> all right. thank you so much for that. you can read more about the world's strongest banks in the july-august edition of the bloomberg market magazine. there it is. bloomberg market that. is the cover. other stories making headlines for you. the first chinese bank to get a license. they are set to get a license by the end of the year allowing them to boost transactions and lend larger sums. meanwhile india's new prime minister more tough decisions need to be made to revive the economy. and growth is stuck in india. near a decade low and inflation averaging about 10% over the last two years. new federal budget is expected next month. and russia's state-run energy producer ended talks with ukraine saying outstanding gas bills must be paid today. the company has given ukraine until 6:00 p.m. to pay up. ukraine owes about $2 billion for past deliveries and they are refusing to lower its price. gazprom fell for a second day friday i

and i remember you have talk about equilibrium of powers in asia. and i'm most concerned about southeast asia and the south china sea. i'm going to ask you as the leader of australia, where do you see the role of australia and old allies, u.s. allies, pacific allies in that region? especially with the current situation in the southeast china sea or the south china sea with china actively assertively, aggressively invaded. it did invade vietnam and all the countries, especially the philippines. and there had been people killed recently, two ships sank. and right now, we have about more than 100 vessels, chinese vessels in that area, including air forces and military efforts. >> thank you. firstly, i'm not the prime minister of australia. >> but you play him on tv. >> that's a different bloke, tony abbott. >> you all look the same. >> ouch. >> americans. i can never tell them apart myself. >> talk the same. you and the guys from mississippi. it's all the same accent. shall we continue this? anyway, let's go to the core elements of your question, which

elephants on the edge of extinction--two stories from asia, coming up on "earth focus." beneath the canopy of indonesia's rainforest, life comes together to produce an amazing symphony of wild sounds. [whistling] [low growl] [roaring] [chirping] [bellowing] but now, the rainforest's most booming voice is increasingly hard to find. [deep trumpet] the sumatran elephant teeters on the edge of extinction, and there's no one else to blame but ourselves. [loud buzzing] it's here in grocery stores where the fate of indonesian elephants begins. you may have never heard of it, but palm oil, a common vegetable oil, has been a growing presence on supermarket shelves since the 1990s. it's high yield, versatility, and price make it an exceptional competitor against alternative vegetable oils. today, palm oil and its derivatives are present in 50% of all packaged food. products like bread, cookies, chocolate, chips, and even shower soap. the consumer benefits, but the sumatran elephants pay a price. their habitat is cleared by legal and illegal loggers to make room for palm oil planta

for most of the southeast asia, and i include australia in that regard. we would like to see them developing systems that can deal with the south china sea problem. that can overcome interaccess problems, submarines, australia developing their submarine defense. it's one thing to explain to the chinese that an architecture that is optimized to deal with a north korean threat need not concern them, it certainly would be that much tougher to complain how australia plays an indispensable control in the architecture. >> and i generally would agree. i would say, though, in terms of space, cyberspace, in the common operating picture that i talked about for the region there is overlap, obviously between those dimensions of security cooperation and missile defense. it's not the same as. but they are the building blocks. in that sense, given our very close relationship with australia, one of the five country really so close with asia on these issues, is this an issue they're interested in in those dimensions and i think we should be working with them. but they're

next guest thinks that asia valuations look attractive.g as is mark matthews, head of asian research with julius baer. if valuations look attractive here, what are you buying? >> well, i have had a soft spot for china for the last six to nine months, and i admit it has not gone anywhere, but at least it has not lost a lot of money either. i am talking about the shanghai composite. and i think i will stick with that story from a pure valuation perspective. its long-term average is roughly twice, and it is not a particularly earnings driven market. as we know, it is not a valuations drive -- driven markets, byother merely retail, but i think over the next 12 been 18 months, a series of events will play themselves out, so if i would pick one value market in asia, it is china. china is alsos, causing a bit of consternation in asia with geopolitical concerns, rising up with the between thepute asian nations, the philippines, think thisdo you could potentially impact trading partnerships, trading relationships, and then, in effect, the economic

today there is reason to doubt not only in asia but in europe and the middle east and africa, south asia as well. maybe it is no surprise, but it is still a little bit unsettling to see people like richard haas, president of the council on foreign relations write, quote, american foreign policy is in troubling disarray. we are witnessing an excel rated movement for a post-american erated movement for a post-american world. even like walesa, saying, the superpower is not taking the lead. to say he intends to argue to president obama if he does not lead, find a country that will. these are not your typical obama bashers. the spectrum, there's concern that under barack obama, america is in withdrawal mode. there's a fear that the president thinks and acts like he can make things happen in the world just by giving a speech, that he can protect america with his rhetoric. i'm a big fan of churchill and reagan. i have a lot of appreciation for effective communication. the communication has to be backed up by something, and backed up by someone who's willing to make the tough choices and defend

we have important opportunities in east asia-pacific. but i think in the competition between the urgent and the important, the urgent wins. >> obama announced a pivot to asia after the wars in iraq and afghanistan. u.s. leaders were also responding to china's rapid military buildup. >>> pro-russian separatists in eastern ukraine are signaling they want to find a way to end the fighting. one of their leaders has met with government representatives for the first time. and he's agreed to honor a cease-fire declared by the president. the prime minister of the self-proclaimed donetsk people's republic made the announcement after talks with former ukrainian president kuchma. russia's ambassador was also present. ukraine's president petro poroshenko declared a week-long bilateral cease-fire. he also revealed a plan for peace. he's urged pro-russian militants to stop fighting. the u.s. and russian presidents got on the phone to discuss the situation. barack obama asked vladimir putin to use his influence to help in the unrest. putin reportedly s

asia-pacific on the way up overall. sydney is one of the key drivers. the top bit of news is tony abbott trying to get an abolition of the carbon tax or parliament once again. a quick look. we do see the kospi higher by .4%. chinese manufacturing expanding more than expected. we were expecting contraction, but hsbc showed expansion. in fact, chinese equities largely to the upside. we have the tokyo reopened coming up on the other side of this break. >> refugees flee and hundreds of thousands as the insurgency gains ground in iraq. questions about singapore's ability to fight back. and taxing times in australia. tony abbott tries again to repeal the carbon levy. let's have a look at some of the world news. a series ofarried airstrikes in syria that left a teenager dead. the 15-year-old boy died and his father and another person were wounded in what has been described as a project t -- a projectile. russia supports a cease-fire in endine and negotiating an to the deadly violence. president putin bank says any solution must include the rights of russian sp

we're also talking about a lot of rain in east asia. you can see the cloud cover extending from japan all the way down into places like the philippines and the indochina peninsula. in the tochiki prefecture up to 126 millimeters of rain fell over a 24 hour period. it looks like as this system continues to move toward the north and east the tropical storm that was in effect has now merged with the system. it has just become a low pressure system. but the remnants is bringing a lot of moisture into japan. so be prepared to see some more rain coming up for the next couple of days. we're also looking out for this low pressure system west of the philippines. that may become tropical as we go throughout the next couple of days. even if it doesn't become a tropical system, it ha z a lot of moisture with it. it will interact with the monsoonal front. so expecting anywhere from 250 to 300 millimeters of rain for taiwan and also parts of luzon. luzon already saw 60 to 90 millimeters of rainfall during the past 24 hours, so it looks like that the

you see in asia what it looks like without u.s. leadership and without a navy we keep talking about and a profit to asia that is happening. meanwhile beijing can see what is happening with our military , and everyone is scared including countries that you would not automatically assume would want the u.s. around like vietnam. you're seeing a bit in the middle east, and when there is a withdraw of u.s. leadership, it's not always a good outcome because you have people cutting deals with the bad actors in the region. case in point that have is some of the erratic behavior we've seen from had hamid karzai. >> wasn't he also making the point that sometimes it is the united states, because it isn't anybody else? >> exactly. i think he was talking about a new kind of american leadership. i think it would be great and the president administration would love to see some of these other countries that were mentioned stepping up whether it's india, brazil , or some of these other countries to take a role on the world stage. but they're not in

many have invested in southeast asia. daiichi already has subsidiaries in vietnam and australia but the u.s. is the world's biggest insurance market and industry executives do expect it will keep growing. >>> let's get a check of the markets now. investors in asia gaining risk appetite on upbeat economic numbers that came out of china over the weekend. the data showed that factory activity in the country expanded at the fastest pace in five months in may. most markets finished higher. tokyo's nikkei was the top performer in the region. shanghai and hong kong were closed for public holidays. the nikkei average seeing a nice jump. it was up more than 2%. finished at 14,935 the highest close in just about two months. a wide range of shares were in demand. export related issues, and financial stocks, led the advance today. daiichi life, though, was down nearly 5% on investor concern about that plan to acquire an american firm. and in sydney the s&p asx 200 index closed higher by a little bit less than half a percent, 5,518. m

. >>> to the markets, investors in asia waiting for a key u.s. jobs report due out later in the day. here's how majors finished throughout the day. many participants not that willing to make aggressive move ace head of the major data release. a number of fresh stimulus measures announced by the european central bank failed to stimulate strong buying across the board. tokyo's nikkei average down finished at 15,077. investors took profits from a four-day winning streak. a stronger yen dragged down export related issues. the shanghai composite designed half a percent. 2029 at the close. irns staying cautious about china's economic slowdown and imminent public offerings prompted selling today. >>> investors appear to be putting more money into southeast asia market following the ecb measures. finished higher by half a percent, 3296. financials and transport shares led the advance. >>> for years investors in real estate in china have enjoyed a market that's been red hot but they're finding things may be cooling down. new home prices in beijing, shangh

a lot of shut today in the asia-pacific.o david who was watching the session in tokyo. >> it is continuing its momentum. i want to show you first what is happening with the dollar yen. what we have seen in the last 30 minutes is weakening. it is basically over the 102 handle here. as far as the topix index, 1.5% in the morning session, 1217. and a lot of momentum. back in may, it posted its first monthly gain so far this year. as far as volumes are concerned, we are right about give or take about a fifth higher compared to the previous month average. despite the fact that, yes, we are seeing yield. points,p over 58 basis give or take 1.5%. the dollar yen is weakening. three stocks we are watching --sely in japan, each eli i-ichiach eli -- da looking at a deal of $4.5 billion. we had moody's cutting the debt rating to stable. that has reversed earlier losses. san rio, maker of hello kitty, 2%. much as ¥3rth as billion for the buybacks. we see shares being pushed up. that is what is happening in japan. on the lunch break right

they will discuss priorities in the asia-pacific. possible future presidential candidate. former secretary of state hillary clinton will give interviews to 80 news on her new book. it is titled hard choices. we will see if she makes the decision to run for president. we will have more of the news for you on bloomberg television. >> coming up next, we will have the latest on what reporters are watching on these topics change. that is when we return after this short break. ♪ welcome to the stock exchange. we will check in. a seven-month high. motor.atsu they are up. i think it is one trade. >> john is making it up. >> let me make my case. market, of the chinese that made the newspaper. they report is saying that they'll be coming back in. they will partner with a chinese automaker. they will supply them with transmissions for 36,000 cars. it is not a lot. but it is good news. in the future, they may consider supplying engines or jointly producing cars. >> we hope that chinese consumers will buy them. the big bad today and the winner is

asia relies on gas.ll right now, the market indicates that oil prices will be going down year on year. we think there is a lack of fact. t. lag effec lots of uncertainty. negative foreally the utilities which are already looking at a market forecast higher. cost when youur buy your electricity is paying for fuel. >> no doubt. we have seen several countries cut their gdp forecast and how would that affect power utilities? >> that is another basic driver for our utilities. you need to gdp growth. 1%.gdp growth is japaneveloped market like or hong kong, it is probably half of the rent. -- the rate. slides a little bit of a for the sector. >> already two slides. cost for utilities, what can we expect? >> a little bit of the bright news because it is looking at flat interest rate so that is good. [indiscernible] that is a little bit of a positive. >> thanks for your outlook. thank you so much for joining us. a bloomberg analyst. thank you. a quick check of the markets and around the region. we saw agreement a

asia continues its exceptional economic rise.orea's rise is a major driver of the asian rust verity that raised hundreds of millions from oferty to higher standards living. korea is the world's 13th largest economy in the u.s. is seven largest trading partner. the economic miracle travels by the sea. , wealth,f this prosperity, and power in east asia will increasingly be determined at sea. at the same time, and those guys to this audience, korea's history has always been driven, not always favorably, by its location. korea has a long seacoast that faces west myself, at least in many capable ports. it is surrounded by bigger powers and profits greatly from economic connections, greater asia and the world here at by contrast, mongolia might be the example of the disadvantages of being landlocked. but the weight behind the success, the inter-korean demarcation line at the dmz is one but not the only geopolitical fault line in the region. because korea's growth and prosperity is inextricably length -- linked to the environment, korea

a quick word about central asia. we talk about the shift in russian strategy in central asia from being the dominant buyer of gas to now taking a subordinent role to china. we have seen russia and gas accept a loss in the region as the commercial realities has meant that the they are sending much more of their gas east than north and we would expect that to continue. we don't see exports from central asia into the russia rebounding and remaining into the 20-30 bc for the foreseeable future. just to conclude, given the half hour is up. this graph at the end is intended to show that although some of the issue we addressed in the book are problems as markets have changed and driven a change in strategy particular at gas prom. russia is in an interesting competitive position relative to europe and asia. the vast amount of their infrastructure is west toward the european market and we believe despite the fact that gas prom is quite high cost in the european context it is competitive and to put a number on that, we calcula

we can't lose southeast asia.o we have to stabilize south vietnam. >> on january 2nd, 1963, south vietnamese troops surprise a vietcong battalion at a village called ap bac. five american helicopters are shot down. three american advisers are killed. 63 south vietnamese die, half of them shooting at each other. >> we've got u.s. military advisers flying combat missions. we've got advisers that are accompanying south vietnamese forces into the field. so by this point, their role had gone beyond simply advising. >> we have learned a bitter lesson. the army of south vietnam cannot cope with the committed gorilla enemy. it is trained for conventional war american style. >> there is growing uncertainty about whether the advisory effort is really working. >> then in the midst there is a what's called a buddhist crisis. >> the war in vietnam has literally become a fight on two fronts. on one hand, the they face the vietcong communists and on the other hand a revolt of the majority, a fight which has been joined by thousa

our traffic growth to asia has been an important part of the story their counting up to 10 percent of our traffic into sfo and with an increase on an executives 20 percent in the last 5 years a trend which i hope will continue and service the needs of the san francisco bay area and the 14 million residents of chu do. we feel we're the right partner to build it's schedule to asia in terms of the designation traffic and connecting traffic to other popular designations by ain't and it's star line passengers. early this year we opened a renovated boarding area this takes did airport experience to a new level and provide amenities you will only find in a lecturer hotel and in the next 10 years sfo will invest over $4 billion of improvements to the terminal one and 3 facilities providing a hotel and the extension to a long term parking facility as well as dramatic xochlts to those wonderful international terminal cities to elevate the passengers experience this will have an exceptional traffic experiences and all will benefit from the airlines easy connections to 37 cities in the u.s. on be

he refuses to be the american president who loses southeast asia.has to keep going in deeper. >> are we going to send marines in? >> yeah. >> i guess we got no choice but scares the death out of me and it's a hard one. westmoreland and taylor come in every day saying please send them on. what do you think? >> well, it's better than being like we just got in this thing and another way out. >> you couldn't have been here for the worse mess. >> be lucky but they will say i created it. the trouble, the great trouble i'm under, a man can fight if he can see daylight down the road somewhere but there is no daylight in vietnam. there is not a bit. pappardellee with the best of the bay. prepared from scratch daily and always served with unlimited salad and breadsticks. taste the flavors of the season at olive garden. at uwe know you can't afford wrong turns on the road to your future. that's why we build tools like our career guidance system. it's kind of like gps, you know, for your career. it walks you through different degree possibilities and even lets

asia very positive.ropean markets coming up nicely and some of the same things running through what drove asia and what is running europe. let's find out the details. let's talk to caroline hyde. >> thank you very much indeed. let's check out what is moving. the key movers today, at the top of the charts is a ryan. this is a finnish drugs company. it struck a deal with bayer. it is now up 15%. treatment.veloping a they raised their profit forecast for 2014. they will get 50 million euros up front and are eligible for royalties. rio tinto also higher. the miners are outperforming this morning. chinese manufacturing data coming in stronger than anticipated. we saw expansion if you are looking at the government figures. 50.8. it is the biggest demand area for the likes of copper, metals. so miners going higher, up 1.5%. on the downside, alcatel lucent. they are selling debt that converts into stock. if you have more stock on the area, the share price is going to go down. off by 1.5%. but it is a positive st

welcome back to "asia edge." to talk about the reform we heard earlier this year. it was a little bit of a surprise. not really, it had been in the works for a while. but when it was announced, it was a positive affirmation of the reform we saw from china. the shanghai-hang seng through trade. what kind of actions are you taking? >> we have obviously seen some strong and close and we are now in a position where we are probably going to launch a new china neustar's fund. it will be toward the more may cap flavor and we will look at a shares for the first time. i think what people have got wrong is the quota system. they are in the aggregate. they are a net aggregate. one is not more, the buying or the selling is not greater. we are optimistic in terms of the mid-caps. there are 266 stocks in the a chair. 100 in an account, you can buy these 266 stocks for the first time ever. set up as many calls as we can to go through those companies, value them. there is a lot in there. there are gray consumer names. eagle,ve and time, golden ichiro ,ome industrials, great staple

. >> they are from asia, you idiot.ill was signed by the governor in may and now the fish is officially known a [bleep] carp. no. it is called invasive carp. it displaced many wildlife species. but where did they go? take a look. >> if i had that in a magazine i would caption it, what the duck? anyway, jed jedediah they were imported into the united states from asian countries which is why they are called asian carp. does that even matter at this point because it may offend somebody? who is this idiot? >> obama's america, greg. that's what this is about, political correctness run a muck. >> run a muck indeed. >> oh my gosh, i am so tired of worrying about everyone's hurt feelings. we all have to sensor ourselves. who cares if your feelings are hurt temporarily? you will bounce back if you have a backbone. if not, go get one. >> that's insensitive to vertebraes. >> you were all for renaming the fish, you said in the green room. >> first of all what they don't explain is these asian carp are eating all of the african-amer

there's a lot of cultivation you mentioned asia trip. you laid importance groundwork in indonesia that later paid off with on san suu kyi and all those little things that aren't in the newspaper that nobody knows about that are on the schedule. so i think that really does come through through in the book. >> i'm glad you said that because i wanted that to come through because one of the virtues that i think we americans need to cultivate is patience. that is true probably in our lives but it's particularly true in our diplomacy. so much of what still matters in the world is based on building relationships and looking for areas where you can establish some level of trust and one of the examples in the book which is quite dramatic actually is how we were able to navigate through a very difficult crisis over a blind dissident in china and not in danger the substance of the framework for the relationship we have been building with china. when i came and i knew from my time in the senate that we had very extensive economic discussions with ch

in the asia pacific, we're supporting southeast asia nations as they negotiate a code of conduct with china on maritime disputes in the south china sea, and we're working to resolve these disputes through international law. that spirit of cooperation needs to energize the global effort to combat climate change, a creeping national security crisis that will help shape your time in uniform as we are called on to respond to refugee flows and natural disasters and conflicts over water and food. which is why next year i intend to make sure that america is out front in putting together a global framework to preserve our planet. you see, american influence is always stronger when we lead by example. we can't exempt ourselves from the rules that apply to everybody else. we can't call on others to make commitments to combat climate change if a whole lot of our political leaders deny that it's taking place. we can't try to resolve problems in the south china sea when we have refused to make sure that the law of the sea convention is ratified by the united states senate, despite the fact that ou

let's move on as well. -- mario -- francesco renzi is in asia.t is one of the major international trips since becoming the prime minister. talk about the significance of it. it is pretty significant. renzi came about a few months ago but he was not elected. he came through palm entry maneuvering. -- parliamentary maneuvering. he had a big electoral win and his party did in recent elections. this,ing a trip like raising his profile is probably a good thing for him right now. -- i get about the china angle. vietnam and kazakhstan, anything in particular about those countries that stand out for you? >> know a tight prime minister has visited vietnam since 1970 tie-in prime minister has visited vietnam's is 1973. prime minister has visited vietnam since 1973. he has pledged to boost trade to 5 billion. there are definitely opportunities for apparel companies as well. italian has a big investment. he'll be visiting kazakhstan to promote energy deals. >> you mention a couple of names and ceos. talk about what they need to get out of it as well. know, t

all that when "asia edge" returns. >> welcome back. so we were talking about u.s. equities.ou are still very bullish there , europe, all the rest. you are selecting europe even though things are so kind of contemptuous when it comes to russia and ukraine and all the rest. >> you can always have a geopolitical problem at any time. but if you look at the economy as such, europe is past the point of no return. that occurred to an half years ago. they has a market is recovering in an employment rates are coming down. the ecb is extremely accommodative right now and that is the recipe for rising stock prices. >> the imf already warned britain about rising house prices there. people are kind of taking it in stride at the moment. >> they are. pakistan --sion now >> china, vietnam -- >> and china phil baines, there is no shortage of hotspots. philippines,ina there is no shortage of hotspots. no one wants to see war anywhere. there is confidence that politicians will do enough to keep them from getting out of control. atwhen you look at the vix the lowest in seven years, what does it