many of the central asian countries tend to be resource rich they have a lot of oil and other depositse these things but it reduces wheat and tobacco. —— goerges down. it relies on migrant workers. —— kyrgyzsta n. it relies on migrant workers. —— kyrgyzstan. a lot of challenges for sooronbaijeenbekov. the meeting of globalfinance the meeting of global finance chiefs in washington dc. miss yellen said she expected the us economy to exceed its long—term trend. the impact of hurricane is on the economy should be temporary. tom and is set is expected to step down as the company deals with a widening corruption probe. he told people in germany he would resign if he was no longer pa rt would resign if he was no longer part of the solution. the aircraft manufacturer is under investigation over its use in middlemen play in sales. the air bus ward said last week that it had full confidence in mr enders. here is a look at the markets and asia is in positive territory. positive moves to start the trading week after us equities had a strong retail sales and consumer prices recorded its biggest inc

third for his main rival more than three million characters residents were eligible to vote in the central asian state because he had lines i'll have more news for you in twenty five minutes time that's off the one i want to use which is coming up next a bit later i found out. the camaro rouge once ruled cambodia its oppressive policies by the nation's rich culture performance the band and most artists and musicians here. today a local circus is sparking an artistic revival by turning street kids into world class at the bands and at the same time pulling them out of poverty. this week and one on one east we go back stage into the lives of cambodian circus to. live on. their own like the lonely but i'm on our blog about mark on the author of. all the life on gnome go on but i love my family in the show and i played a part of the devil spirit that possesses the body of a despicable man the butt of the tongue mongolian five health plan that the man just wants to fit in and be a part of the community and people above the villages to be checked and appease him for the fact that. the gods on say his p

russian ministry of defense says that a good amount of those fighters were foreigners from the central asian republics from various arab countries and countries of the former soviet union and that would be highly characteristic of isis wooding to many reports foreign as our number locals syrians within the ranks of isis but many of those casualties were suffered by isis in the vicinity of. this city forty five kilometers south of that as sort of where we are now twenty four hours ago it was the largest city still held by isis in syria now it is perhaps the hottest battleground in syria was fighting lasting throughout the night and continuing now but the syrians are allegedly in possession of over half of the city more than fifty percent the northern and western side isis is rushing reinforcements to dean obesity the don't expect an offensive of these ferocity but eighty people a.t.g. hardass were allegedly caught in a slew of russian ash strikes as well as eighteen technicals pickup trucks with mounted high caliber weapons nevertheless the fight there continues and isis is still rushing rein

russian president is well known as a dog lover, so the president of turkmenistan thought this central asian to agree. the puppy is called verny, which means "faithful" in russian. the same vessel is at a new drilling site of the australian coast. somewhere between adelaide and perth. this latest expedition is focused on learning more about the history of plate tectonic movements in the region and about how the giant landmasses and adopt about where they are. joining us now is a scientist of the expedition and is ona ship scientist of the expedition and is on a ship off the coast of australia. thank you forjoining us. you are on a new mission involving more drilling into the earth's crossed. you are five days into this mission, what have you discovered so far? well, we are looking to study the birth of an ocean base. we started drilling about 83 million yea rs started drilling about 83 million years ago. we are 520 metres below the sea bed. we have gone down to about 91 billion years ago. the ship is able to recover tremendous quality of court to give us continuous history of that time. it t

russian president is well known as a dog lover, so the president of turkmenistan thought this central asianmr putin seems to agree. we normally see him with ferocious animals. the puppy is called verny, which means "faithful" in russian. so cute! on an expedition last month scientists aboard the vessel joides resolution found more details of a submerged continent off australia's eastern coast, called zealandia. by drilling into the sea bed, they hoped to learn more about how the geography and climate of the area has changed over the past 70 million years. that same vessel is now at a new drilling site off the australian coast, somewhere between adelaide and perth. this latest expedition is focused on learning more about the history of plate tectonic movement in the region, or how the giant land masses ended up where they are. earlier i spoke with brian huber, who is the co—chief scientist of the expedition and currently on a ship off the coast of australia. i asked him what his team has discovered so far well, we are looking to study the birth ofan well, we are looking to study the birth of

we are told he is of central asian descent and came to america in 2010. he was born in 1988.we don't believe he was from new york city. we believe instead he may well have been from florida. that seems to be the state license card that he was carrying when he was apprehended. but obviously this is still an active crime scene just behind me. they are still trying to piece together precisely what happened. the new york mayor bill de blasio saying the belief right now is he is a lone wolf, that this wasn't part ofa a lone wolf, that this wasn't part of a broader conspiracy or plot. nick bryant in new york, thank you. let's talk now to our north america editorjon sopel in washington. this is an attack in donald trump's home city, and the president has responded tonight? yes, and it is the first apparent terror attacks since donald trump became president. i use the word apparent because that is the phrase the department of homeland security has used to talk about an apparent act of terrorism in new york, saying it seems to follow the pattern of other attacks that have taken place

third for his main rival all and three million characters residents were eligible to vote in the central asian states. voting also underway in venezuela as all twenty three states elect new governors regional vote is the first since a new super body was created by president nicolas maduro that some opposition m.p.'s see as a challenge to them in parliament his vice president tariq sami voted earlier in the state of our polls have put the opposition on course to win many of the same votes but the president sworn any elected governors will have to swear allegiance to a controversial new constituent assembly to raise a boat has the latest from a polling station in the capital caracas. well people have been coming for the four hours. previous elections where there were. already. around the country. broken and many people here are. doing everything possible to hurt. no major in. that. country. kenya's opposition leader has held a rally in the city of mombasa where he's urged his supporters to boycott the presidential election this follows days of violent protests despite the government ban two prot

campaign stands out going president has pledged a peaceful democratic transition a first for the central asian region open for us a walk reports now from bishkek this presidential election has been a test for democracy not just for kyrgyzstan but for a region typically governed by strong men who cling to power. though it is used in electronic voting system designed to eliminate fraud and had a genuine choice eleven candidates with two front runners. but panel of a charismatic oligarch promised to kickstart a chronically ill of recent economy. we will have the name of a new president and this name will be bob another pseudonym by jean b. ack of the incumbent presidents chosen candidate promised continuity today i voted for consistency in power for the development of our country for the future of our country. incumbent president almas back at him by a wants to be remembered as a leader who delivered the democratic first in the region a peaceful legitimate handover of power. that legacy however risks being undermined by the jailing of political opponents using state bureaucracy to influence the o

so now we all know what a central asian shepherd actually looks like back to you. >> at least in puppyon what if putin doesn't want a dog? >> what happens to the dog >> i don't know. i'm sure it will be a very well-behaved dog if vladimir putin is your owner. >> if it's big move, putin can ride it. >> that's right, he could! >> shirtless >> he could, brian >> the oil market closing for the day, jackie, deangeles and cnbc commodity desk trying to stifle a laugh it's okay. it's wednesday >> it's wednesday, brian we're watching crude oil today closing higher than $51 and getting a little bit of a bounce and holding over the critical 50 level and the recession high was $51.42 and that's the highest we've seen since october 2nd and definitely momentum here the support is coming from opec. the cartel raised its demand forecast by 230,000 barrels per day by 2018 and that's encouraging and it set its september output went up to 32.75 barrels per day and that was higher than the estimates that we reported earlier this week the demand increase is good and the production figures less so the eia r

presidential vote outright more than three million carriages residents are eligible to vote in the central asian state according to data published by the central election commission jim baker of secured more than fifty percent of the total vote in forrester walkways in bishkek with more on the fierce campaigning that took place between the outgoing president's favorite candidate and the opposition leader a more beck. it's been a pretty dirty campaign a lot has been levelled at this opposition candidate that's taking causing this election the ethnicity card because he's not actually completely kyrgyzstan the nationalists and he's nationalism is very strong here or maybe even had a diplomatic spat with the kazakhs who are accused of a favoring this candidate and that is ended up with the kazakhs closing the border restricting entry movement between think it's not because it's been it's been a big problem affecting a lot of unfortunately people crossing i suppose and also the president of kyrgyzstan though he might have been expected to stay serenely out of basic ways and he has waded in at every o

it's good for european countries, central asian countries, and middle east.this is something for china, it is not. the global peace, prosperity, for the common prosperity. it should be done with broad consultation joined -- joint construction and shared benefits. you say it's not just for china. is the ai ip just for asia? people asking questions about how much you should be investing in projects that don't have an asian footprint. when china took the lead in setting up this bank, the idea was very much clear. -- aiib would be developing asia's infrastructure but it's also indicated that the investment between asian countries and non-asian countries can occur. we will cover all of the countries which are interested in participating in the globalized economy and a cooperation. to your first question, i think private sector will have a wonderful opportunity to put their resources in the best projects for sustained returns. i think this is important. asian countries are keenly interested in working with african countries, south american countries, and eastern eu

either taliban or this talk of islamic state that has certain cells in the afghanistan pakistan central asian region which is called a risky peak. acronyms these people are seen to be behind this now i think on one hand you have a seasonal issue coming up because as we move towards winter usually it's tradition for predators in afghanistan to increase their attacks on one hand but these types of attacks where they are using suicide attackers they are very brazen . go deep inside live military installations or inside mosques that are somewhat protected in symbolised or in the provinces sure that the taliban and was the highest cells are trying to disrupt any attempt that may be be happening behind closed doors to try and it political solution to afghanistan's problems on the one hand at the same time i think they're sending some messages to the united states to regional powers to the afghan government to the afghan people and that message being what i mean do they want to be part of any potential peace process or do they not. what software they have and you know it's been almost twenty years m

kurdistan's i'm going president has pledged a peaceful and democratic transition first in the central asian region while been for a walk in reports from bishkek this presidential election has been a test for democracy not just for kyrgyzstan but for a region typically governed by straw men who cling to power though it is used in electronic voting system designed to eliminate fraud and have a genuine choice eleven candidates with two front runners almost back but panel of a charismatic oligarch promised to kickstart a chronically overaged economy. we will have the name of a new president and this name will be baba novel. by the echo of the incumbent presidents chosen candidate promised continuities today i voted for consistency in power for the development of our country for the future of our country. incumbent president allmers back at him by wants to be remembered as a leader who delivered the democratic first in the region a peaceful legitimate handover of power. that legacy however risks being undermined by the jailing of political opponents using state bureaucracy to influence the outco

. >> laura: we have an acting assistant secretary for central and south asian affairs at state. we still do not have a permanent assistant secretary. in other words, a career diplomat, no offense to alicia wells, but it's not trump's pick. why is that? why the snail's pace of getting people nominated and approved? >> well, the names have been put forward in most cases. i think we're -- the president was making his case last week when he had lunch with the republican caucus on the senate side. if you compare where this administration is relative to the obama administration, we are way, way behind. maybe less -- maybe half the number of those confirmed. and even under the last bush administration, we're way behind. you know, the senate democratic leadership has been very, very effective in slowing things down to a snail's pace. >> laura: as the secretary of state slowed things down at state department? i mean, reports are that there's a bit of a divide there that some of the names that the president wanted have been rejected. that means then we don't have these key positions fille

investors are betting and number of asian central banks may need to follow their western counterpartsest rates to boost exports. is with me now. how might we see rate rises play out in asia before we even get there though, i want to get your reaction to this data showing industrial production up 27% in september? what happens with industrial profits, are they a function of ppi come which has had an impact on industrial profits? has that given these companies the pricing power to be more profitable? >> there is a definite correlation. rishaad: let's look at this, 9463 on the bloomberg. the ppiwe have seen in turnaround in china has led to a pickup in profits. rishaad: it is mirrored. 2016 when this ppi went negative into positive, profits completely went up as well. >> a much more positive story for china's manufacturing sector. it helps factories to raise prices and flows through wages the cost ofown repaying debt, so it is an overall positive story. rishaad: the question i asked originally is exports and monetary policy? >> china is part of what is happening in asia. we are seeing it

the main location is the historic house yonder for them to look asian in central violin when they will be tastings and workshops all week. whether it's dancers performing that can kind of the moon or paris street scenes many of the tutors and attracts motifs are instantly recognizable now the work of the french artist is being showcased in an exhibition in milan soriano it examines the influences that helped shape his work like japanese art for example. he wrote the missing once you consider all the materials that she knew was drawing on the use of photography the references to japan the history of post impressionism is what really stands out is the idea of the modern woman immediately for the first time. time we see a woman who is similar to ordinary women today. you can. two hundred fifty of the artist's works are on show in the fleeting world of tutors in the track until february eighteenth. catherine the duchess of cambridge did an impromptu dance with paddington bear on monday the wife of britain's prince william canceled many of her appointments in recent weeks pregnant with the

months ago, on august 18, i sent a letter to the acting assistant secretary of state for south and central asian affairs and the u.s. ambassador to pakistan expressing strong concerns about human rights violations of the pakistani government in sindh. six of my house colleagues, three republicans and three democrats, joined me in that effort. there are other human rights concerns in pakistan i should also bring to the attention of this house. people in sindh face religious extremist attacks. isis claim responsibility for an attack on a shrine in sindh that killed 08 people. yet go government has not acted o protect religious minorities and in general has not acted to protect the people of sindh from islamic extremism. in addition, in sindh, there are forced converses of sindhi girls belonging to minority communities. while the numbers are unclear, reports suggest that every year perhaps 1,000 girls and young women in pakistan, including many in sindh are forcibly converted upon marriage. marriage not of their choice. to muslim men. the pakistani government has not done enough to stop this practi

central bank top. -- talk./ looking pretty good so far. quite a few good tailwinds for the asianentral banks are reconciling. i want to show you what is going on with futures in tokyo. the stage is nicely set for gains following the new highs we saw for u.s. stocks. because the is pointing -- the kospi is pointing to a softer start. we are not seeing a flight to safety than. the dollar -- safe havens. the dollar-yen holding above 112. that u.s. andorts north korean diplomats might meet in moscow this week. unclear prospects for who becomes the next fed chair. hays talkingen about john taylor becoming that dark horse, and that send bonds fighting. i want to share this -- bonds sliding. this chart.are u.s. bonds have been moving in line with china's pmi. you have u.s. 10 year yields on the bottom panel. chinese pmi, the white line. you see the slight correlation given that we are in this era when global inflation has been stuck in a rut. this is more of a key driver. yvonne: it is not just the pmi data that has been impressive out of china, but the ppi data as well that send copper

buying plan for october, despite the recent surge in yield, reduce in the pressure on the central bank. the asianthe treasury today and gold losing ground by 1/3 of 1%, while the dollar is rising for a third straight session, gaining 1/3 of 1%, dragging on currencies in asian like the rupiah. check out what is going on in the g10 space. risingenback is against its fellow currencies. the euro, losing about 1/3 of 1%. catalan leaders signal that they might declare independence within one week. the british pound is also on the td , but down 1/3 of 1% oday, continuing to drop after disappointing economic data. gdp grew any slowest pace in four years. i am at the board to show you some early movers in asia. goldman sachs says a rising competition amongst drugstore operatives will negatively impact sugi. toshiba, that is snapping a two day clime. and nissan, it is the worst performer on the asian regional benchmark today, slumping after suspending new car registrations in japan. rishaad: thank you, sophie kamaruddin. it's a spanish political crisis which has barcelona facing off with madrid and here's

central community with the ways of interacting. with the inability to marginalize other people is marginalal as asian. -- marginal as asian. so that is intolerance of the tolerance. the freedom of expression but that responsibility you canet do this straightforward criteria there should be no platform with no risk of district and free speech. >> is there a criteria or could there be?. >>. >> but rightht now and to speak at berkeley i don't agree into looby honest there were understanding with the powerful political tendencies in this country and being treated as inseparable so in some ways it is an easier case because he harassed individual students. >> he h is deliberately trying >> i would think so and hope so but the whole platform of i do worry if it expands and people who feel they have very little power in this world for good reason. so with an exercise is in power they are likely to push that as far as they can go. because they feel victimized but that is not necessarily but it could be the only venue but it is useful for those progressive ideas. you cannot overstate how lethal the right is because notst just they s

this time around we have a central european region and an agent region. both have shown good in -- asian both have shown good increase in profitability. mark: what do you think is challenged at tesco as we approach the end of 2017? alan: we are focused on improving the competitive offer and giving our customers what they want. little by little, we are on track for delivering that 3.5% to 4% operating margin by 2020. you thees it trouble way we are progressing on brexit negotiations, the unstable government, or do you get on with it? alan: we are focused on our clients and we deal with all things externally as they happen. was my conversation with the tesco cfo alan stewart. now, a look at some of the biggest business stories in the news right now. shares of mylan surging. u.s. regulations -- regulators have approved a generic of a multiple sclerosis drug. they sold $3 billion of the drug in the past year. bruce richards is getting ready for the next recession. richards is planning a new distressed fund to take opportunities -- to take at -- advantage of opportunities of another global sl

asian metropolis. the stormy weather that we've seen across parts of northern and central europe will ease as we go through the next couple of days but still quite a brisk northerly wind driving in say the tightly packed ice a pass on the charts here indicating that very strong winds which continues to fade down across a good parts of germany denmark poland czech republic into austria winds not quite as strong as they were yesterday where they did touch a hundred kilometers per hour in places but still quite a brisk wind nevertheless five celsius in warsaw seven celsius there for berlin and on the strength of that wind it will feel bitterly cold cold enough for some snow force that's noble transfer a little further east which as we go on through moscow the top times then of around four degrees celsius is a touch milder place to say across western past london gets up to around thirty degrees celsius with reasonable amounts of sunshine not so sunny the coast northern parts of england into scotland good part of olland chances of some western weather just squeezing in here further south it is fine and dry twen

earnings and central banks all in the mix. sophie: asian stocks looking mixed.ues. five-year yields climbing 11 basis points, 4% amid expectation of tighter financial regulation in china. indonesian to your bond slumping while stocks in jakarta on the way up, gaining .5%. gdp growth may surprise to the upside if investment picks up. currencies and the dollar falters, but the kiwi dollar moving the most in the g10 space. the rbnz new finance chiefs said reforms to the monetary policy mandate results in lower interest rates. we are thick and earnings season. some movers this morning. shares falling after its profit miss. analysts show recovery in the fourth quarter. komatsu's climbing to a decade earningsokyo after its beat. yahoo japan falling after earnings lower than forecast. a few of the highlights today komatsu following the caterpillar train. thank you. the big four banks that report this week. let's get first word news with paul allen. paul: president trump has unleashed tweets attacking hillary clinton and the democrats has reports say a grand jury has ap

yvonne: asian markets in general, we heard from different opinions from the central bank thinkors sayinged right now. then you have barclays saying the markets are as benign as in 2006. her we in overdrive. >> in asia, we are not. about lowking interest rates globally. if you look at the average in asia, corporate have been paying a relatively high cost of debt and capital. even if interest rates were to rise by 50 basis points or 75 basis points -- what concerns you more, asset prices are low volatility. not beenlatility has that low. it depends on the assets you are considering. we still see compression across asia. growth next year will more even spread across asia. opportunities are , more opportunities to invest, then 2017. yvonne: there is so much to ask you about. i have one big question, quickly, the dollar. you say a sudden appreciation in the dollar is one of the biggest risks. why? what would cause that to happen? >> it is the big risk. will that happen? we don't think so at this stage. we believe the deficit in the u.s. will widen, so that should weaken further the dollar or

asian stock. or is he just another man that could be running the fed? criticizing the centralr trying to do too much with monetary policy. is talking about the prospect of a deficit for the current tax plan. and just skimming hitting toward $50. you have the higher u.s. stockpile. ubs are saying that opec led cuts need to be prolonged to support the prices. let's have a look at the bond markets. the cattle and crisis -- catalan crisis harrowing the spanish people. this is the german yield moving, seeing a slight drop in the yield and you're seeing the spanish government bonds heading in terms of the yield at 1.7 2%. those are your markets. quick update on the markets, let's turn our attention to bloomberg first word news getting up-to-date with juliette saly. juliette: u.s. president donald trump has suggested that the government debt for puerto rico would have to be wiped clean to recover from the devastation of hurricane gloria. people have been without power and in many cases drinking water [inaudible] summon puerto rico's government estimating reconstruction cost would be

central-bank decisions, earnings, apple, and geopolitics in the mix. donald trump kicking off the 11 day trip to asia. early days when it comes to the asianzealand with early gains, just of 1/10 of 1%, the kiwi dollar at 68.63. that is down since the election in late september. we have some suggestions that the monetary policy mandate, it could result in lower interest rates. figures in australia, we're seeing up about 6/10 of 1%. 76.71 aheadollar, of the pmi, a big data point for the china proxy. get more on what we should be watching as trading gets underway in asia, we have our local markets editor here with us. equities looking to get a strong start to we have a good tailwind coming off the u.s. -- the best u.s. gdp in three years. lots to be digesting this week. is, but ultimately it comes down to earnings and optimism is strong going into, and the next wave of earnings we will see in the next week or two. the question is, whether they are big enough or strong enough to deliver. , ahave petrochina, sinopec lot of different sectors, not just oil, we have chinese banks coming out today, we have tech. there is a lot riding on those earn

asian people in their departments. we have to become attractive again. interesting, you talk about -- you do see that issue with the h-1b be. there was a moment where i.t. was central frankly it is a feature for everybody because we need machine running experts and the demand is very strong. matt: them he ask you about the analyst firm that said in a note , the advertising companies like omnicom, wpt, they are facing strong competition from firms like yours. the expected wave of consolidation. does that make sense to you? paul: frankly, the looks to me like a stretch. the other day i heard my friend saying we will continue small acquisition. testified by the ,pectacular win at mcdonald's can resist and beat the best american companies. we are in gauged with a strong partnership with some of them. guess we are engaged with a strong partnership with some of them. guy: let's come back to the issue of germany. the need for digital manufacturing to become the future for germany. there is a huge push among the politicians in germany to try and digitalized the german economy. how far behind is it? do you think enough german to go to university broadly? d think they go to

central committee of the communist party. what i would rather connect it to is we are the wealth. many of the same drivers were driving global growth are driving asianrowth but it may be more impactful there. if you are seeing where it is happening, and is in technology, materials, and financial services. asian a benefit to economies like china, but also india. interestingething to emerge from this study is billionaires are responsible for businesses that have a workforce equal to that of the u.k. that is stunning. what was the most appraising fact to you to come out of this study? guess the sheer numbers. about 28 million people are employed by billionaires. those who joined the rings of the billionaires are responsible for about 3 million in terms of employment. what we're seeing is this have a final impact. -- a vital impact. it is job creation over wealth creation. enhancing growth industries within the countries. i think there is a powerful role billionaires play in terms of initial -- a social game. scarlet: that make sense. you are seeing a global growth pick up as well. we are seeing this in europe, although i do not see any highlight their

prices were triggered by the central bank dropping its language that a neutral policy was up for it for an extended. time frame. -- eighteing a check snap in the asiandollar up for a second session. the rba updates came out, and we highere dollar trading urea traders may have few incentives to take up positions before u.s. retail and abi data. we have the greenback dropping with treasuries ahead of u.s. regional and inflation figures. confidence in trump tax plan showing the dollar headed for its first drop in five weeks. we will elect a check what is going on in seoul, korea and we had a drag in health stocks and health care is gaining 2%p kospi gaining .1%. let us highlight what is going on in the itc's, samsung pulling up the screen here to show you that the stock -- it is the biggest weight in kospi in terms of index points, and it is sliding despite clinching a record third quarter of profit. slide that we the are seeing for the kospi. kobe steel is among the worst performers, dropping over 7% this morning. we are seeing losses among more news stories alleging falsified data. morning, we are also hearing that some china companies used alumina f

asian -- mortgage securitization. it has been replaced by the u.s. treasury whose issuance has gone up dramatically, and also by corporations who use the issuance in the lower-rate environment provided by the central banks. this is not very productive activity. was practiced by our friends in japan many decades ago and it is the exact same thing. so, when people say we are not japan, yes, we are. and i think that is reflected in the record of the issuance of the bond market in the u.s. in the past five years. this is a chart from our friends at the st. louis fed. you can see the big surge in high-yield spreads during the crisis. i think chairman bernanke , the real objective of monetary policies to get spreads down. because high-yield spreads tell you whether the economy is working, or not. today they are very low, very tight. and they're so tight i would argue that a lot of banks have a hard time making money. when you think that citibank has a 1.6% spread on their industrial loan book, and the average cost of funds for the bank is 72 basis points, that is not a great debt. still, they are not getting paid enough. the average for most fdic insured banks is 12%. there still not making a lot of mon

asian of the places. can you speak to how serious the cyber threat is from north korea? they've attacked the south korean banks in 2013. they've obviously been advocated and other attacks since the central bank heist, et cetera. how serious she would take the cyber threat along with these of the threat from north korea? .. as a measure, you can see they've done this with the missile program as well. as you watch them measure western responses to attacks, they attack not always the case that there is an overresponse, but there is a response that is perceived by kim jong-un and he is trying to measure, figure out where the lines and boundaries are from not only u.s. policy, but the policy of the other states that have been attacked as well. so, we're very mindful of it. they have a very robust capability. it is cheap. if you compare the amount invested in their cyber program compared to the amount of money invested in their conventional weapons systems program or nuclear program, it's pennies on the dollar and it's its effectiveness if you were looking from a business perspective. >> it gives them the ability to profit and reach out beyond their borders and disrupt, if not destroy. >> it'

asian region now. it was only 6% last year and they are pumping capital and investments into china and elsewhere. it looks like the central will be in asia for a long time to come. jonathan: unlike european lenders, this bank is trading well above book value. i imagine that's because is looking less european. people in the market are looking for that guide as to what happens with buybacks. is that's something the next ceo will run with? reason why hsbc is doing so well from a valuation perspective is because it actually pays a dividend with most european banks don't. if they do, it's miniscule. they have kept their powder dry and not announced any new buy back today which white we see the shares 1% down. they're living it for the next year. john flynn comes in in february and has a few things to sort out. for all the european banks, he probably is in the best position of any ceo. talk about the cost. revenues were up nicely but they did not leave much of a drop to the bottom line. what is the plan to the bottom line questio? >> 300 million dollars of those costs were performance incentives. additionally, they said they're