believed to be discussing ways to improve ties and the push by china to set up the asia infrastructure investment bank. abe and xi posed for photographs. their meeting is the result of careful negotiations through diplomatic channels. it's the first time they've come together for face to face talks. abe plans to confirm japan and china will improve ties by getting back to pay sicks to a beneficial mutual relationship. chinese president xi addressed the summit and emphasized the importance of north-south cooperation. >> translator: our responsibility of advance countries is to help the growth of developing nations and reduce the north-south divide. >> xi touched on what's been called the new silk robe. he said china will cooperate with countries in asia and africa. >> translator: china will develop land and sea routes connecting asia and europe with relevant countries and work with them to establish the asian infrastructure investment bank. >> in other news across party group of japanese lawmakers has visited yasukuni shrine in tokyo which is holding its spring festival. it honors japan's war dead. tho

caterpillar as rivals try to get market share in emerging economies and as the china-led asia infrastructure investment bank looks to gain a foothold across asia alongside already established asia development bank. a lot of focus there for construction machinery makers as well. >> and as you well know currency levels can sway corporate earnings levels in the u.s. and japan. where are the key pairs now? >> that has dictated a lot of sentiment. right now, 119.31-33. analysts are expecting more of a result from euro slide this week on concerns about greece. the euro is expected to be guided by a series of indicators including manufacturing pmi and surveys from germany. we'll keep track of asian stocks. some concerns about overheating we did see shanghai's composite and the hang seng losing ground. the trading volume for shanghai was around $184 billion, ten times that of the first section of the tokyo stock exchange. also we'll see if there is any reaction to the ongoing tpp talks. that's all for me. back to you. >> sounds good. we'll be back with more of your headlines next hour. here's a check on some of you

greater business opportunities and two more countries have applied to join the china led asia infrastructure investment bank. this brings number of applicants to 50 nations and one territory. the chinese government said portugal and israel applied for membership on march 31st. participants includes countries in southeast asia and the middle east as well as britain and other european nations. russia brazil south korea and australia have also applied. the bank is intended to fund infrastructure projects for developing countries in asia. chinese officials have said countries that applied for membership before the end of the march deadline will become founding members. this will enable them to participate in creating the bank's basic policies. china is calling on nations that have not yet applied to join the bank, japan and the united states are holding back saying that the bank's governance lacks transparency. >>> let's check on markets. weak business sentiment here in japan had dampened tokyo stock prices then overnight on wall street shares also suffered losses as investors sold after seeing weak factory act

ramping up investment in the region and several of the members have backed a china led asia infrastructure investment bank, they are looking at a financing effort infrastructure of one dollar trillion per year through 2020. china is potentially filling the gap with 50 billion u.s. dollars under the aa i see, that is something to consider. >> ok, sophie, live in kuala lumpur. >> china is turning to the stock market to find a cure for its debt hangover. i know that soaring debt levels are at an all-time high. steve, what do these numbers tell us? >> for dollinger trillion -- four dollar chilean added to market capitalization in the rally. equity fund raising surpassing sales of corporate debt last month for the first time in three years. allowing money to flow into the equity market as they are faced with a broader economic slowdown. companies paying down my ability on april 23 announcing that it will raise $2.4 billion to fund the purchase of new aircraft and pay off debt. >> look at this chart. one hundred 23% after the shanghai composite. >> up 94% in the last six months . china eastern has tripled. thes

infrastructure investment bank. in 2020 will america be left out in the chill? steve, we have a huge response to your appearance on this asia infrastructure investment bank. is it equivalent to the i.m.f.? is it an i.m.f. killer? stephen stephen: not at this point but asia has massive needs to build its infrastructure. the asian development bank puts that at $8 trillion. and the world bank and i.m.f. the institutions that we sponsor are not filling the void. so, china has a massive amount of foreign exchange reserves and savings and desire to restore its role as a leader in asia. we are resisting i.m.f. reform that would give china a greater role and now resisting their desire to lead a new institution. we can't have it both. they have to be able to provide the capital leadership and we are holding them back who are we to say they can't do it this way? tom: if we assume secretary kerry gets some sleep after what he's done in switzerland what would be the prescription for him to get a better relationship with china particularly or aiib? stephen: push through the i.m.f. reform that would give china greater say in leading trad

china and the asia infrastructure investment bank. there is the relationship of the u.s. and china and china and the imf. how should the president react to a new assertive china? john: at the g 20 summit in november 2010, there was an agreement to reset and reform imf voting patterns that would have increased china's share of the imf-- tom: that is blocked by congress. john: the government has not managed to arrive at an agreement to approve it. as a result, here it sits with only the u.s. blocking this universally approved reform. that cannot be good. tha a -- the aiib, that's an institution that has a clear role. the other is the international institutions have welcomed it. the u.s. position might be reflecting the difficulty the administration sees in getting congressional approval in joining but it at a note of difficulty for international governance. tom: you came out of the midwest. cedar rapids iowa. good morning. an esteemed career and economics. the money question, how do you respond to americans who say the american taxpayer is funding the playground of the imf?

was where he's not so impressed with how the obama administration has handled in, the asia infrastructure investment bankcreated. the u.s. is fighting that effort, but paulson also says it's not a big deal. take a listen. henry paulson: many observers have said this is landmark, this is a watershed event china passing the torch. that is bull. it was not huge thing. we don't get everything right. we didn't get that right. peter: we didn't get that right referring to the obama administration and how it handled the creation of this chinese investment in infrastructure bank. but he says is another big issue right now in the big scheme of things. he says china has a lot on its late and he is cautiously optimistic china will be able to handle it. -- a lot on his plate and he is cautiously optimistic china will we able to handle it. olivia: peter cook, our chief washington correspondent. we will leave it there. i like it, hate polson calling bs. brendan: my children watch -- hank paulson calling bs. brendan: my children watch this hour. please. robert: you and i are of this age when we have seen japan. i rememb

the world bank and asian development bank could work along side the new chinese lead asia infrastructure investment bankves it's a positive step. >> i don't believe we should overblow what this is and what it isn't. they're doing a good thing. they have a high savings country. they have a lot of resources and a lot of interest in investing not just in china but throughout asia and the world. this is an institution that will allow them now with quite a large number of countries that join in to do something necessary in the world and finance infrastructure development. they spent the last 20 years saying one of the greatest needs in the global economy and in particular for developing countries is more infrastructure spending and that requires finance. now it's important that the institution has standards of governance the world has come to be accustomed to and they heard that message from the many countries that decided to join but we see this as a positive step on their part to try to contribute to infrastructure. >> julia, he said he was committed to supporting the new institution although questions rem

members, that's 25-30% of -- [inaudible] that's a big portion because that's aib is asia infrastructure investment bank. and it is already agreed and reflect in the mou signed last october. this one about residential board. i know that's many debate. i think that's the intention is increase the efficiency -- [inaudible] >> right here and then next. >> thank you. [inaudible] news agency of hong kong. i still remember last time when you came to this town you make a speech in peterson institute. you talk a lot about the bip, bilateral investment treaty and you also mention that china will not challenge the dominant leadership of the united states in the financial system. you mentioned that the be. i.t -- b.i.t. negative -- [inaudible] would be proposed in the early months of this year, but we still didn't see that happening. could we expect that the b.i.t. could be reached before or when president xi jinping comes to this town to have a visit? and secondary, you mention that china will not change the current international financial system, but do you think this time that international reaction and the res

well the asia infrastructure investment bank poses the latest challenge and the u.s.rtainly has had no shortage of challenges from china over the years. it's set up to fund infrastructure projects and develop the developing markets in the asian region. sounds innocuous enough, right? well, there's an interesting sub text here, and the sub text is that it provides a direct challenge to the international monetary fund and the world bank. now, the u.s. exercises a tremendous amount of influence in the imf and the world bank through its funding and it helps not only fund projects, but it also helps influence how those projects are developed. now, this started off as a fledgling project last year. now it's got 35 members, as kelly alluded to some very close american allies. so it's no longer just some shot in the dark. it's something that's quickly gathering steam in the world financial community. >> and we bring in here ravine joining us the ceo. we were just talking about your business off air a second ago, which is fascinating. what we really are interested in is your p

enhancing corporation with regional facilities and institutions, including the new asia infrastructure investment bank as i have said three weeks ago in china. there are many institutions that are burj end over the last few years in europe in asia, in various places and we need to work together. we need to corporate, to coordinate. second option, increasing the role of the special rights as a global reserve the integration of dynamic emerging markets into the global economy. of course, firming up the imf resources which, again relates to the quote at that reform that was intended in 2010. >> as a result of that the international monetary system would be reinforced and become more stable. so that's for the international monetary system. what about the international deed allotment system? well, 2015 is really a very special moment for development and an opportunity to make a tangible difference in the lives of a very large number of people, particularly the poorest. there are three critical issues on the 2015 agenda. one is financing for development, which will be discussed in july, the second is the ne

he took a look at the asia infrastructure investment bank.outfit china is pushing to be a competitor to the imf and the world bank. he took a look at some of the fears building on wall street in washington that this might actually challenge u.s. in the financial madoffrkets. they're also looking at this bernie madoff piece. he's been writing e-mails to scott coen who covered the whole trial and everything. he's been writing him e-mails saying, in retrospect my crimes aren't so bad. if you look some people actually made money with me. come on i think he's trying to get sympathy although i don't see how anybody can have search think for -- sympathy for this guy. whenever you put warren buffett in a headline you're guaranteed several thousand clicks. warren buffett's berkshire hathaway outfit bought a 10% stake in axalta. it does high performance coatings on cars. it fits into the auto theme lately. >> private equity owned. that was interesting. >> those are the ones the readers are hitting. >> i want to jump in earnings season is about to start

given as well the china led infrastructure investment bank closing the gap for infrastructure investment in southeast asiao contend with four asean -- for asean. rishaad: let's have a look at the other stories we are watching today. let's get it over to sherry. southeast asia's largest bank has reported first-quarter estimates.thatg income rose 3% to a record $953 million for the months ending in march. a one-time gain from selling a property investment in hong kong. rising domestic interest rates which time to a six-year high in the first quarter, imposing greater charges on borrowers. this is helping to upset slowdowns in lending as the economy goals. singapore generated more than 60% of dbs' revenue last year. loans rose 11% from a year earlier. volkswagen as the family feud with their has ended in a high drama -- family feud there has ended in high drama with the end of two decades of unyielding authority. stepped down after losing in a power struggle that through volkswagen into disarray. he publicly challenge the authority of ceo martin winterkorn and dismissed him as a potential successor as chairm

to attract additional investment into infrastructure with the resources of this asia investment bankich will give a boost to the economic development in the region and to our bilateral relationships with china. >> julia asked the russian finance minister about the pressures on the nation's economy. >> the most complex part of it was the end of 2014 and beginning of 2015. we experienced two kinds of external stocks. one from the oil price. the plunge in the price of oil by 1-half and second on restrictions of capital inflows and trade. as a result inflation went up and interest rates went up so we had to cut the expenditures and redistribute them this year. >> do you believe now if you look at the economy and you look at the environment do you believe the scope now for rates to go low to support the economy? because the currency is under pressure today through speculation that the central bank will cut rates so this already concerns about the currency if you lower rates. >> well i wouldn't say that the ruble appreciated because of speculation. we see main trends. capital out flows dec

infrastructure investment bank. officials with the chinese finance ministry say 57 countries are from southeast asia and the middle east. also included are g7 members like britain and germany and russia india and brazil. japan and the united states have not applied to join. they say the bank's governance lacks transparency. taiwan applied for membership but was rejected. no reason was given. the bank's founding members will decide on their capital contributions and the bank's lending requirements. they want to establish a bank by the end of june. >>> some experts see bright spots in japan's economic future. analysts at the organization for economic cooperation and development have upgraded to the growth outlook for 2015 but they say bold restructural reforms are needed. the ocd releases a report every two years on japan's economy. the latest report upgrades the growth forecast for this year to 1% from the previous outlook of 0.8. it said lower crude oil are pushing up personal spending and capital investment. for 2016 the outlook has been upgraded to 1.4% from 1. ocd general secretary urges japan to make further progre

infrastructure investment bank. our concern with the bank is this, we're -- we don't oppose it. to the contrary. the more investment you can bring in infrastructure in the region, in asiaesperately needed. it's a foundation for economic progress. but as i suggested earlier, how it happens is vitally important. and so the concerns that we've had about the infrastructure investment bank really go to its own standards. what are the governance rules of the bank? what role does the board of directors play? what are the standards that it would advance in terms of worker rights, environmental protections, intellectual property, capital requirements, things of that nature? we've spent 70 years building international institutions to support financing and developing around the world, and in doing that we have tried throughout to raise the standards of these institutions in a way that benefits the people that they are working with. what we don't want to see happen is some kind of race to the bottom where the standards are diluted. that has been our only concern. so my sense is that -- and indeed, not just our concern, even the countries that have decided to join have been very cl

asia really needs roads. existing lenders aren't meeting the demand. the asian development bank estimated 32 of its member countries would need over $8 trillion in infrastructure investment from 2010 to 2020 over $700 billion per year. the world bank and other existing lenders couldn't come close to meeting that demand according to the "washington post." so why not have an additional lending entity help? more infrastructure in asia would help the economies there. by extension, that would help the rest of the world, including the united states. unlike imf, this bank isn't writing the basic rules upholding international economic system it's funding roads and bridges as many state-owned banks do anyway. what does deserve criticism is the utter fecklessness of the united states congress. china might not have started the bank in the first place had the u.s. allowed china to have more influence in the world bank and imf. even though it has the second largest economy in the world, china gets less than 5% voting power in the world bank and has less than 4% of the vote at the imf. tiny belgium and netherlands have more voting power than china at the imf. legislation that would in

infrastructure investment bank. they have a capital base of about $50 billion. that is in direct opposition to the japanese-led asiaopment bank. believesnk of japan inflation will reach 2% by the end of this physically -- fiscal year. the imf does not. they say it has been harder to estimate the timing because of oil prices and wages of. the imf says it explained -- it expects japanese prices to grow is halfwayhat towards their target of 2%. a probe into the actions of sri lanka's central bank governor says he had no direct role. he has been on leave of absence during the investigation into allegations that his son-in-law benefited from options. findings will be presented to parliament over the next few days. some of the stories making headlines today -- is entering asia's protein drink market with a $400 million takeover of a chinese drink company. coca-cola will pay cash for the business. the drinks, sold under the china green brand, include red being and walnut varieties. they return to china after a foul attempt to buy the country's biggest juice maker. peugeot will be looking at making modules for vehicles. in

infrastructure investment bank as i have said three weeks ago in china. there are many institutions that have burgeoned in the last few years in europe, in asia and in various places. and we need to work together. we need to to cooperate to coordinate. second option, increasing the role of the special drawing rights. facilitating integration of dynamic emerging markets into the global economy. of course, firming up the imf resources which again relates to the quota reform that was intended to in 2010. as a result of that, the international monetary system would be reinforced and become more stable. so that's for the international monetary system. what about the international development system. well, 2015 is really a very special moment for development. and an opportunity to make a tangible difference in the lives of a very large number of people, particularly the poorest. there are three critical issues on the 2015 agenda. one is financing for development which will be discussed in july. the second is the new sustainable development goals that will be discussed at the united nations in september. and the third one is the climate change that will be discuss

asia infrastructure bank. we made the offer to the chinese, we will work bilaterally. can this get to a place where it is accomplishing the goal that we both share of having good, sustainable investmentinfrastructure? we have not closed any options for the future. as they launch the new bank how do they make sure it operates in a way that enhances the economic opportunities in the areas where they are investing? what can we and the international financial institutions do to make sure that is done in an effective way. i'm hopeful that we can be successful working together. good investments and solid projects. that's a good thing. we have never discouraged participation in that kind of investment. it's important to do it right. we want to be partners in helping china and the partners they have achieved that goal. peter: the iran negotiations among norse possibility -- among your responsibilities. the white house says the president is willing to sign this legislation. it's clear that you guys don't love this legislation. is there a risk that this could unwind these negotiations gekko jack: the president has made it clear many times that he thinks it is important that congress not take a

infrastructure investment bank as i said three weeks ago in china. many institutions that have burgeoned over the last few years in europe, and asia, in various places. and we need to work together. we need to cooperate, to coordinate. second option increasing the role of these special drawing rights at the global reserve asset and facility and the integration of dynamic emerging markets into the global economy. and, of course firming up the imf resources which you can relate to the quarter reform which was intended in 2010. and as a result of that, the international monetary system would be reinforced and become more stable. so that's for the international monetary system. what about the international development system? 2015 is really a very special moment for development, and an opportunity to make a tangible difference in the lives of a very large number of people particularly the poorest. there are three critical issues on the 2015 agenda. one is financing for development which will be discussed in july. the second is the new sustainable development goal that will be discussed at the united nations in september. and the third one is the climate

infrastructure investment bank as i have said three weeks ago in china. there are many institutions that have burgeoned over the last few years in europe, in asia, in various places. and we need to work together. we need to cooperate to coordinate. the second option, increasing the role of these special drawing rights. as a global reserve assets and facilitating the integration of emerging markets into the global economy. and of course firming up the i.m.f. resources, which again relate to the quota reform. that was intended in 2010. as a result of that, the international monetary system would be reinforced and become more stable. so that's for the international monetary system. what about the international development system? well, 2015 is really a very special moment for development and an opportunity to make a tangible difference in the lives of a very large number of people, particularly the poorest. there are three critical issues on the 2015 agenda. one is financing for development which will be discussed, in july. the second is the development goals which will be discussed in the united nations in september. and the third is climate change which wil

infrastructure investment bank iib. chinese president made this proposal is based on the real demand for infrastructure development in china. according to ibb figure the next ten years $8 trillion gap in asia, that's between money supply and real demand, so big gap. one sign we really hope world bank play more important role increase the lending leverage and give more support to infrastructure development in asia. we take the responsibility we give the proposal, give our suggestion to the international society, particularly to asian members. now it's time we establish aib. president xi jinping made very clear when he met with delegate in beijing to sign mou for establishment of aib. president xi jinping emphasized three points. i strongly believe these three points are the real guidance for china's proposal to establish aib. fortunately, president xi jinping emphasize we must join with the challenge to promote growth, and we have strong solidarity, we can achieve the goal. president used the old frame to say if people can really solidarity together, [ inaudible ] can be mold. the president emphasized this solidarity. secondly the president also used the chinese old saying if you want becom