no beer from china. i said, type china. >> 1995. >> no data about china. i talked to my friend.hy not make something about china? we made a small, ugly looking page called something like, china --, so shocking, we launched it in the morning. 12:30, i got a call, he said you have five e-mails. i said what is e-mail? they were so excited. this is the first time i've seen a chinese website. can we do something together? i said this is something interesting. we should do it. >> why did you call it alibaba? >> alibaba. when i started, i said we should have a global name. a name that is interesting. yahoo!. i was thinking, alibaba is a good name. i was in san francisco that day. waitress came. i said do you know what alibaba is? she said, yes. open sesame. i said good. people know about alibaba. i think this is a good name. it started with"a" and so whatever you talk about, alibaba is at the top. >> you have said before that in creating alibaba you have to create trust. >> yes. >> people in china are used to face-to-face. how did you create trust? >> i think because we started with th

this china do about china is a major net energy importer.y prices will be a huge stimulus to china. prices, huge stimulus. stimulus alone is what is happening. theaw a move by the pod -- pboc trying to inject liquidity. why the disconnect? >> as we have been saying for two years, stimulus in in china no longer works. they are doing easing and rates are going up. since second quarter, despite the stimulus and bank injections, you have seen rates rise. bank rates go up, bond rates go up. shadow banking has gone up as well. the fact that they are easing -- it is actually going the other direction. this should be a caution flag. >> what is the overall take away we should really consider? >> you are seeing a deceleration overtime, no question. you are not seeing this current collapse everyone is seeing. the job market is robust, profit performance, the firms are doing well. they do not need to stimulate. good news. >> it is good news. the outlook for 2015 for china, to expect we will see a continued modest rise for china in terms of growth? china

the china hands who's studied china, many of them had been born in china. several of them had been born there. the scope chinese. they believed that probably weaken a better outcome. and this is kind of a tricky issue because of course as you know later after china was quote, unquote loss to the communist and the mccarthy a sum of far right-wing in america looked for somebody to blame. they blamed these men. but even before mccarthy, their careers were destroyed vinay came into conflict with another central or in the book a man named patrick jay hurley who is he american ambassador for the special animus very an ambassador there. my chapter on him is called the wrong man. i'm not a fan of patrick jay hurley. and i am a fan of john's ernest and these other very forthright honest men. one of the very few person knows that i put in the book is that i don't believe for a minute that if i had dinner i would've done any better than they did in their analyses. they think they are an extraordinary group. but they got something wrong in what they got wrong was the n

today i'm 100% trained in china. i never got train outside china. when people talk and say jack how can you speak english like that. why you talk like western guys. im think that was the nine years. these western tourists opened my mind because everything they told me are so different from the things i learned from the schools. and from my parents. so now i have a habit. whatever i see i use my mind. think about it. >> rose: is that how how this retained jack ma. >> the name was given by a lady, she's a tourist came here and she become friends. it is so difficult to pronounce. so she said you have english name. it's okay keep the english name. she said okay.o she said my father called jack, my husband called jack. what do you think about jack. i said good. [laughter] >> rose: first visit to america 1995. >> 1995, yes. i come here for a project helping the local government to building up highway. >> rose: and you tried the internet. >> i tried the internet in seattle. and in a building called u.s. bank. i don't know whether u.s. bank still there or n

what does china do about it? china is a major net energy importer.ower oil prices and energy prices will be a huge stimulus to china. the idea that they are seeing deflationary headwinds should not spur them to do anything rash. >> the banks chief china economist talking about that. >> the momentum is slowing. if you look at the quarterly dynamics, the economy is still slowing. inflation has been very low. a natural response, we are expecting more rate cuts. the dilemma is the structural issues in the transmission. money is not flowing into the right sectors. >> ronald wan says the jury is still out. >> gdp figures have been better than expected. in the fourth quarter, we expected 7.1% but they cannot to be 7.3%. the full-year figures are slightly below the target of 7.5%. i think it is still acceptable. something which we need to look at, for this year, we had yet to see if the performance of the market will remain strong. this year will be subject to scrutiny. >> that is the word on china's gdp. >> our next guest says china will not be the best-per

now china is.ast decade, growth has been declining. >> full disclosure, you have a volvo. >> that is not why i'm doing this story. >> very quickly, the shanghai car show. >> what is happening there has happened in the past. the government thinks it is getting a bit racy with the auto models coming out in their skimpy outfits. they've come out with a statement. let me read from it. we want to ensure that the show returns to its original spirit showcasing automobiles, not flesh. they say they are not ruling out banning these models. >> no models at all or no models with skimpy outfits? >> maybe they will be wearing trousers and codes. maybe a hijab. steve, thank you very much indeed. steve engle having a look at volvo and beyond. perhaps we may not be getting any scantily clad models. bloomberg.com should be your news source each day, every day, 24/7. >> that is all from us here in asia. for "asia edge" today. ♪ >> what you are about to see is one ladder, the strongest, the safest, the most versatile

what we do have for today is negative on china and japan. china, manufacturing at

china is less mysterious than pakistan, but is china and anthony? is it a future rival? is it a country we can cooperate with? we have a lot in common. we entered into these situations, there is an innocence abroad quality to the united states, we don't really fool the fully understand what is going on. there is something hidden in motivations. maybe i can be guilty of a kind of cliche about the inscrutability of the east and i don't want to be guilty of that. i think easterners can be understood in the same way it that westerners can be, but because maybe they are a little farther from our culture and they don't share our liberal democratic heritage they are a little bit harder for us to understand. i think in the end what this book does is portray again for the first time americans in this conundrum, this mysterious situation that as the great power they have to do something. exactly what to do was never going to be easy just as it is not easy even today and in china and other countries. let me stop there. see if anybody would like to be brave and ask the first questio

in 2015, where do you see china?be honest, we think the situation is just continuing to worsen. we've got the biggest debt bubble that the world has ever seen, and credit is continuing to grow twice as fast as gdp in china. i think a lot of people tend to be more positive on china and ultimately believe the company can grow its way out of the problem, but mathematically, that is impossible. when something is twice as big as something else and growing twice as fast. for us, there's certainly issues with shadow banking and the health of the banks, but on top of that, what is really causing us to be so negative is the deterioration in the growth outlook and the fact that we've got deflation looming on the horizon. >> where do you see the growth outlook for china? a lot of evil holding it at 7%. what are your thoughts? >> we think it is better to look at nominal gdp growth rather than real, and we are looking at a continued slowdown to probably ..75% this year less than 10 years ago, china was consistently growing at 18%

we talked about all these conflicts in asia, the east china sea, the south china sea. of course, the rise of isis and the breakdown of iraq and assad staying in power and violence expanding. political islam died. radical islam came up as a much more significant force. yet, it was also a year when the united states got its footing and became robust. if you look at this report -- >> the most robust economy in the world. >> where is the united states here? on the one hand, it means great things. you got oil going into the low 50's today. americans are doing well with that. you've got a five handle on american growth in the last quarter, but you also have things happening all over the world that are very dangerous to other people, not so dangerous to americans directly. our intentions in playing a major role in responding, they are not so great. another thing you don't see here, there is no internal china risk. we've gone through years where everyone said, china is going to fall apart, big political instability, what is going to happen? xi jinping is one of the most powerf

china stationed troops on the paracel islands. it also built a government building there to administer islands across the south china sea. observers say the new ship may trigger a backlash from other parties that claim the islands, including vietnam. >>> an armed man has been detained in northeastern china after apparently crossing the border from north korea and killing several residents. the case has prompted a reaction from authorities in beijing. >> translator: we have already lodged a protest with the north korean side. chinese security authorities are handling the case in accordance with the law. >> sources in northeastern china say the man broke into a home in the city of helong on the border with north korea. he killed four people during an apparent robbery. the suspect was shot by local law enforcement officers. he was detained and taken to a hospital. local authorities say a growing number of impoverished north koreans are taking advantage of winter conditions to flee their country across the frozen river. they say some

china and met the people of china and have on their own time understood the connection between china and the bay area. so without further a do, we would like to ask barnes and green to get up. this is where the drum roll comes. and unveil the uniforms that the warriors will be wearing this celebration of the chinese new year. go for it. [ cheers and applause ] wait. there is more. >> wow. >> all right. very nice. how about that. thank you, guys. back to you, bob. >> now, as exciting as it is to see harrison and dramon when we left the warriors, it was difficult because we had to leave the other warriors and we left the guys standing on the curb very upset that they were not chosen to wear the chinese new year jersey. these are great. first and foremost is where to get them? >> thanks for asking, bob. >> that was a trick. >> starting right now you can go to warriors.com and preorder these jerseys. the first game is on the 20th against the san antonio spurs. the shop will be full of chinese new year jerseys and if you travel to travel they will be available there too. >> we are g -- go

we talked about all of the conflicts in asia the east china sea the south china sea. it was the rice of isis and the breakdown of iraq and assad staying in power and violence expanding in all of these places. political islam died. radical islam came up as a more significant force, yet it was also a year when the united states, the world's largest economy, got its footing and became robust. and if you look at this report -- rose: the most robust economy in the world? >> i don't see any united states here rose: what does that mean? >> on one thing, great things. you have oil going in to the low 50s today. americans doing well with that. and you have got a 5 handle on american growth in the last quarter. but you also have things happening all over the world that are very dangerous to lots of other people, also dangerous to americans directly and our intentions in playing a major role in responding there not so great. another thing you don't see here is there is no internal china risk. i mean we have gone through years where everyone said, china is going to fall apart. bi

there was a foreshadowing that would take place in china itself. then noblemen had of version of the red diaper baby who lived in moscow only went to back in 1949 and only spoke russian. there you go slavs, argentine, and they lived in a school and there was a child that grew up in the same situation. her father spent 70 years in a siberian work camp and believes the secret police chief of mao and his henchmen had persecution of fellow communists they had known was aimed at covering up his own earlier role with chinese revolutionaries. the very language of chinese communism is a notes of discourse the style of propaganda, the notions of socialist realism congresses in the newspapers and ultra serious theoretical journals and the vocabulary of internal debate and struggle. to have that lexicography of labels all of them newly mintedism. like revisionism and the correction is a the party line and the adulation that victorious revolutionary such as mao and the vietnamese used to their own colts of a godlike genius leader it was nurtured and supported

it means japan doesn't trust china's navy. also china's navy doesn't trust the msdf. they take aggressive action. so it is very dangerous. so something happened which cannot be understood then the other navy will take some action against the other's action. if they can communicate, they can understand each other. they can try to understand the other side intention. so it is the very important for avoiding a miscalculation. >> reporter: japan's defense minister gen nakatani welcomes the resumption of the talks. >> translator: it is gratifying that talks have resumed. i believe they will start a mechanism that could realize a system that will help avoid an accident when the dangers are getting higher. >> reporter: japan and china had already agreed to establish a hotline and hold regular consultations between defense officials before the talks were broken off. o'hara says he thinks discussions on monday were focused on when and how the communication mechanism should be set up. >> if they can have the specific frequency for communication between japan and china, so other

optimistic about china. just focus on a single issue. we are in a world of multiple challenges. >> what about the unintended consequences -- >> that he just referred to. he was probably not talking about roger federer. but i wanted to bring up roger federer. >> because he is swiss. >> he is flying the us trillion open and he joked with the reporters. he said, i guess this means i really need to win. the aussie dollar and the swiss -- it is down in the last five days about 13.5%. his take-home pay -- she gets paid no matter how well he does. in swiss francs he is taking home less, so he has to work harder. of course he is joking. this is not the unintended consequence schwab is talking about. it is places like denmark, where the danish crown -- a surprise move by the central bank. they cut interest rates. they want to limit the gains we have seen in the krone. the currency was before the rate cut the highest since 2004. >> the swiss had protection from the european central bank, the danish as opposed to the s

china has a -- i think what we have seen in our conversation with china is china is working with us more effectively in trying to stifle north korea's dangerous activities. i think all of us need to do more, including china. there is been some contact, some senior-level discussions, but i believe the bottom line is the russians remain committed to the shared goal of, and they do want to make sure that the north koreans move in that direction, despite some of the contact we have seen recently. >> most of these tools are readily available through anyone around the world. many are of tactics techniques in cyberspace predominantly criminals are openingly available through the marketplace and frequently posted online. so the acquisition of capables is readily available. >> thank you. i think i have time for one more question. north korea's cyber-capabilities were first revealed back in march of 2013 as south korean financial services and media firms were attacked. at that time it was the latest attack from a malware development project called operation troy which revealed pyongyang was attemp

maybe not in china, but it certainly is in china and the united -- in the u.s. and europe as well. >> we're going to talk about china little bit with cleveland miller later on this hour. anastasia i want to look at the president's tax plans, raising from 23.5% to 28%, which is significant on capital gains. can we smell the sweat of fear from wall street? >> there are two parts to this proposal. there is the tax credit for education, tax credit for the dual income for childcare. some of the has to pay for that and that some of the as the top 1% and it is the 100 largest firms -- financial firms in the united states. that is not one to sit well with either the ultrahigh net worth clients or representatives across the aisle in congress. it is a nice plan, but i'm not sure it can quite translate into the reality. there's something i do want to say about the education tax credit. one of the things we talk about when we talk about inequality is, it is true that the top 5% maybe the top 10% in this country, will actually experience inflation-adjusted positive wage grow

china in terms of u.s. companies exposure it's been growing but it's not a major force in their earnings. what is a big force has been buy backs and the more companies buy their stock back the higher their earnings per share growth will be. they were enormous last year and will be this year. that helps boost earnings. i know it's artificial but that's the way the game is played on wall street. >> do we expect the buy backs to continue if we continue to see a rise in volatility? >> definitely. the volatility means there's more ups and downs this year. we'll is more sell offs but it should still be an overall goodyear and the reason it will be a goodyear for stocks is because of the buy backs and the volatility increases the opportunity for companies to buy their stock back because they outsource to wall street trading desks who are great at taking advantage of this volatility. >> last week the s&p 500 lost 3.4% volatilities. losing about 5%. are equities heading higher and if so what's the catalyst? >> the w

one of the speakers was china's premier, who speak about china's economy, and plans for the future. >> now it's a great privilege, pleasure and honor to introduce his excellency premier li keqiang, premier of the people's republic of china. premier li it's a pleasure to welcome you back to davos. because you have joined us five years ago, and actually we welcome you back also to your home. because, the world economic forum has now two homes. one is here but also we have some of davos and we have our office in beijing. this just expresses the great cooperation which we have established under your leadership with your country. and i want to thank you for all the support, and particularly for your presence and i should mention our appreciation also for being accompanied by such a distinguished delegation compromising the minister of foreign affairs the chairman of the ndrc and as a distinguished members of the chinese administration. mr. premier, you come here at a moment when all our eyes in some way are directed to china. we are living in a world where your country has achieved great s

china is high at 92%. in the u.s.eople have confidence in their president. 41% saying that they have none at all. can you explain to us why that figure is there? the role chinese feel. >> it's an interesting question. i think that we, in the west tend to think that the democratic system as we have it is universal. i don't think that's correct. i think that the political system works according to the history and culture of a country. so, the chinese -- in china, the relationship between states and society. today, since 1949 and historically for 2,000 years has always been distinct from what happens here. i don't think you can describe china as a nation state. it's a civilization state. >> there's a difference there. here in the west and the u.s. as well people don't think of respect their leaders. they don't want to em late what happened in the u.s. here in europe you have process and democratically elected government with european bureaucrats. there doesn't seem to be anything aspirational about democracy at the momen

the most popular in china and they do not even use -- google, android software and the china market as. >> yvionne mann, thank you. that outlook from hsbc. that is when "on the move" returns. ♪ >> you are back with "on the move." bringing in head of asian strategy. the top stories of what is going on in greece right now. just shy of a majority and could end up with one. what could this mean? >> in terms of eventual outcomes and the european union, we think it is in everybody's best interest on a deal of a new program to be reached. that's the ecb and imf and we think that is the most likely outcome. it is a very low probability of what we do think the outcome brings is volatility back to the ecb's decision in recent times. we think volatility is back to stay. >>won 4%. when it comes to the currency market, does it continue down? you have been talking about parity by the end of the year. some have talked about 95 against the euro. >> we are looking at 109 which is quite conservative. >> i am saying you are sticking your neck out. >> it was a bit higher. we think the trend and we believe

china, india.can't imagine how much in price structure, how much production, anything everything. india has done very well in i.t. has done well. they have done the industry. if you talk about the inside structure oil, 70% of our oil. it makes things easier to come in and invest, a huge possibility within india. anything you do is a premium. >> what are you here in davos to do? business or are you trying to understand commodity prices? i know you are in india, so you're somewhat hedged i guess, but at the same time, it's very difficult to understand where the prices of a lot of these commodities are going. are people worried? >> i live in london. we are a ftse company in london. i really enjoy it. i've been here. i find a lot of interest in india. people are thinking about the bureaucracy, economic model. as you've indicated, a massive market, and you already talked about the found in india, consumed in india model, and that's what the governor is talking about as well. would it be a mistake for in

in china. the other is the strong u.s. dollar. a strong dollar may lead to emerging market crisis. although, could also have china's exports if emerging markets suffer crisis this may hurt china's capacity to overseas countries to infrastructure. but any recession in these developing countries may mean chinese infrastructure companies to lose overseas steels. >> japanese officials are working on ways of expanding exports of infrastructure. in vietnam, they hope to make the post office more modern and efficient. >>> japan's state minister and his vietnamese counter part exchange a memorandum in hanoi. ministry officials say japan wants to improve the postal system and trust in their postal services. japan also relies on banks and insurance businesses. >>> the japanese government plans to work with its private sector in realizing the project. it would help introduce japanese companies. the government hopes to launch other emerging economies, too. it's already exchanged a mem random with myan mawr

china is a big market.it as a big market where we can go into the different provinces to grow the graded commercial development. >> some say china has a property recession. is that the case? >> we saw it and heard about it. we're are a bit slow in china. we are looking to the supply and demand balance. we were able to work along supply and demand, so we are ok. >> you are walls, but maybe you will be willing to build homes. >> we have homes, but it is more collaborating with other people. we will be building offices. it is a center where you attract the other populations into the area. so far we are doing quite well. >> very well i would say. >> not bad. >> would you go to perhaps building more homes -- you could spread it out and build off it? >> we're still building the homes around the center. the shopping is the center. whatever we build is around the center. this is the same for him -- forum, and the same formula we do in china. >> i must ask you what is the main concern. we have got oil prices very lo

talk about how big china mobile is, the largest operator in china.verizon, and sprint combined. thater analyst saying around 2 million more iphones were sold in china then north america in the order. the apple watch most likely to increase even more loyalty among first-time customers. we are going to watch these numbers very closely tomorrow. that is when apple is expected to released first-quarter earnings. >> china making great games for apple. but there is a lot of challenges in that market. >> you have new competition and run-ins with the government. the latest release of the iphone, they were delayed by a month because of the retracted regulatory review process. you're going to see more about xiaomi.-- you have makers that are much more popular or cheaper. and in terms of design, similar to apple as well. >> smart phones cheaper, that is a trend around the nation. thank you. china is calling for foreign talent. its latest move? loosening visa restrictions. christine, what is the plan here? that plan is to make it easier for foreign professionals

china is down 41%.y lost more than half the value -- half the volume. >> it is two stories, it is the ip or the corruption in the mass market, where you are seeing capacity, mine. it depends on which side of the coin you fall on. delisting.e company >> they are, and the reason for that -- keeping the nasdaq listing. the reason is the lack of volume. basically shares have been falling like most of the stocks. you can see about 40% last year. a list against hong kong since 2007. you see it significantly underperform. to compare this on average last , compare that to the nasdaq's 98 million. is a germanic difference. that is why they are coming off of the hong kong exchange. >> they are focusing on the u.s.. >> and the volume, the money. >> thanks for that. time for a look at some of the other stories we are following for you today. sales more than tripled last year for xiaomi, helping rick -- helping revenues doubled. xiaomi also says it is the highest valued i.t. company yet to go public. an important pr

now it is china. china sales up 33% for volvo but in the united states, down 7.9%.declined for a decade now. it has a reputation for safety. the new v had the highest safety rating in europe40. they have done ok in that market with the new compact. geely wants to recapture the u.s. market. >> you have brought something along with you. >> full disclosure, i own a volvo. >> that is evidence. how do we move forward on this? the chinese car market is vast biggest car market in the world. >> 18.9 million total vehicles sold in this market. the bigger story is the pace of growth, just 10%. last year, it was 17%. the pace of growth is slowing. it is a more mature market. we are seeing volkswagen up 12.5% year-over-year. gm ford up 10%. although up 33%. these are beating the market. because of license plate restrictions in china, the pace of growth is starting to slow. >> we have seen the corruption crackdown. >> audi is doing well. >> you have to get the pundits and and one of the way you get the punters into the shanghai auto show it may not be quite as risque as it has b

in china, we saw a flying stockmarket. >> china will be another major support. think that that will go further and helping asian market. one major thing is that china is no longer suffering from inflation. lower inflation, which has paved the way to loosening monetary policy which will benefit the stock market better than last year. >> one reason we do see the inflation environment softening his commodity prices, that is softening commodity prices -- is softening commodity prices. but your money, but do not been t your house? >> i think it depends on policy in countries like opec and russia. i think the demand is not bad. the globe is lower but the problem is on the supply side. u.s. production is at a record high, and opec is maintaining output level. that is affecting the oil price. more than half of the oil price is supply rather than demand. >> you are anticipating further declines for oil right? people want to maintain share so thatey pump more. >> we do not think there is downside. as long as oil price remains low around $50, $60 or $70. >> you are looking

china.ut engaging china does not mean forgiving bad behavior. cost and position against thatt behavior is something g we need to inject into our policy. >> speaking of that, there were recent, last year, agreements bebetween beijing and washington. two were seen as significant. do you think there were significant or do you think they were optical windowdressing? >> the two memoranda of understanding are a framework for talking. they are not fixed rules. we do not have any fixed rules with china right now in the maritime and air space, and the east and south china sea, and beyond. there are many disputes. i was recently in china having this debate with the chinese. they do not want binding rules that limit their ability to create a greater influence over the regi. >> what are some of the most important trends in the region from your standpoint? >> nationalism from the maritime countries of the asia pacific. i thought this in india recently. there is a new loading dock working across the pacif

china's challenge. growth in one of the world's biggest economies is at the slowest rate it's been in 24 years and comes at a critical time for the global economy. all that and more tonight on nightly business report. i'm bill griffeth. tyler and sue are off tonight. ibm with better than expected earnings with a fast growing cloud computing business and security software and despite decreasing demand for its servers and storage products, here are the numbers that came out. adjusted earnings $5.70 a share, topping analysts forecast by 7 cents and fell from a year ago to $24 billion. that just missed wall street forecast. shares initially higher in late trade on the news but then turned negative on weaker than expected forecast guidance for the full year. bertha coombs joins us from the nasdaq with one big takeaway from ibm's report. >> reporter: bill the big takeaway that ibm getting smaller. the company went from over a billion shares at the end of 2013 and as of december 31st they had 991 million share

couldn't have done it without china, china gives them the life line and china monitors all of its internet transactions and it doesn't have a true open internet per se, china had to know what you know, isn't that correct? >> at this point, sir -- and thank you for that question -- i do not know what china knew at the time. >> do they know now? have we directed to them the knowledge that we have sufficient so they know that in fact their lifeline to the internet was in fact engaged in espionage, supporting industrial espionage by north korea? >> sir, we have shared our information from the chinese computer response team and had telephone conversations with them as well and we continue to exchange information regarding this incident. >> so based on that, my question, which goes to the very heart of not the sanctions on a country that is so isolated that the only thing we know for sure is that their people are six inches shorter than people in the south. in fact, since sanctions on north korea are extreme and have not worked, because they simply do not care enough about their people to reliev

could apple's number one market be china? china may have overtaken the u.s.nd iphone sales in the quarter that just ended. it was the first quarter with iphone 6 and iphone 6 plus sales. china is becoming increasingly important for apple. we are a year into the partnership with china mobile. apple moved a new store drying huge crowds and prompting a tweet from co to tim cook. -- ceo tim cook. i spoke with an analyst at creative strategies and bob o'donnell. >> a couple of things about apple with the iphone in china. the chinese market has been very focused on large phones. it was the iphone 6 and 6 plus that triggered this interest. the chinese market is not interested in smaller phones. until apple had an offering, that was one of the issues. in a lot of the emerging upper middle and upper class, they are incredibly brand conscious and apple is a luxury brand. you get the combination of this brand affinity and a phone in the size they are looking for, it makes sense that they are a huge hit. it shows you how the company is moving and adjusting their business

china. they have opened up a new store where huge crowds were drawn. that's just the start. cook said that apple plans to more than double its chinese store count to 40 by the end of 2016. joining us to talk about what this means is been and bob -- be n and bob from tech analysis. i river not too long ago apple saying that -- i remember saying that apple saying they had four stores in china. >> a couple of things about apple with the iphone in china. number one, the chinese market has been very focused on large phones. the iphone 6 in the six plus in particular really triggered this interest. they are not interested in smaller phones. until apple had an offering, that was one of the big issues. the second thing to remember is that in a lot of the emerging upper middle and upper class they are incredibly brand conscious in china. apple is a luxury brand. you get the combination of this brand affinity as well as a phone in the size they are looking for, it makes perfect sense that the six and

china cr chr csr -- what is the story here? securities regulation saying the shanghai exchange is examining share training -- trading for executives of these companies. you are talking 11 employees, including the chairman of cnr. that they did trade securities in six months leading to the time when shares were suspended pending the merger. according to filing, we did see trading take place by cnr. but they are investigating whether or not there were violations found. we are following that story. shery ahn, back to you. >> today, we had the launch of the asia financial forum in hong kong. you have been there live all morning in the company of john dawson and a string of guests. john, is the swiss franc top in your conversations? >> without a doubt. it has been the center point of conversations. in davos a lot of people are going to be talking about that as well. it was a significant you turn -- u turn. of concern, will denmark do it next? we also have the ecb deciding on quantitative easing. based on what we've seen here swiss a

to go away in china. is extremely competitive. right now, the manufacturing cost compared to the u.s. is two dollars compared to what it is in the u.s., $35. china has a long runway, it's at the edges that are really important. can it go inland? you still up to ship from a further point to get to the shore to put it on a boat. there is trade-off. >> the key to that is you are exporting higher value-added stuff. that is what china is trying to do. >> when you look at companies like alibaba and xiaomi china is becoming a place renovation. is it becoming an easier place to grow these types of tech companies? >> innovation is a broad spectrum. right now, china has adaptive innovation. what alibaba is just expert at is being able to take what's going on in the u.s. and jack ma even admits that he brought e-commerce to china. they have been able to innovate within that framework to adopt to the chinese market place. they haven't had come to the paradigm shift in innovation where they are making global innovatio

china and taiwan claimed them. the officials met in tokyo on monday. the mechanism they discussed is meant to avoid accidental clashes at sea or in the air. the meeting came two months after japan's prime minister shinzo abe and chinese president xi jinping agreed to restart the talks. last year, a chinese fighter jet flew abnormally close to a japanese self defense force aircraft on patrol. japanese authorities say the incident could have triggered an accidental clash. japan and china have already agreed to establish a hotline and hold regular consultations between defense officials. details of monday's talks have yet to be disclosed, but discussions are believed to have focused on where to set up the hotline and when to start the communication mechanism. >>> france's top defense official has unveiled unprecedented security measures. he's ordered soldiers to stand guard across the country. it comes after last week's deadly attacks in and around paris. >> translator: we've decided to mobilize 10,000 personnel to protect sensitive places across the coun

china,.china, how hopeful do we think -- you mentioned in your opening statement that china has been more forthcoming and we want them to be more so, but they themselves are engaged in cyber attacks in a systematic way. so how reliable do we think the chinese will be in trying to rein in the north koreans and their cyber security malfeasance? >> i will defer to the general. >> to? >> our dhs colleague. colleague. more generally, i believe chinese cooperation on the north korean issue organization has improved. i would.to their cooperation on the un security council passing a resolution act. as an example of how their cooperation as improved. it can improve improve further command we we will continue to work. when they think about strategic interest -- >> but my question -- we are limited in time. i understand all of that. when it comes to this topic cyber security, their hands are dirty. why would we count on them to help us bring in north korean cyber security attacks when they are engaged i

in china. this is 1839 to 1841. you have the japanese war who come online and do defeat the chinese in war. basically at this point by 1895 things are gang busters. who is paying attention to what is in the world in the 1890s. sure the balkans perhaps this is early for the balkans but certainly not early for asia. there are those very smart historians in the united states like brooks adams making the important comment that it's eastern asia which is the prize for which all of the energetic nations are grasping. you can see this sort of language here. it's very much not simply being used in the middle east. it is not simply used in the scramble for africa but also used quite importantly in increasing sort of great power tension to asia. this i guess it is hard to see with this map here but essentially what is happening particularly after the sino-japanese war is carve out spheres of influx. you are not taking parts of the dynasty apart but are carving out special interests special ability to cre

rivalry from china jumped even more. a mainland chinese to come and travel and a big part of the local economy here. you are watching "first up." the fallout from the franc. one hedge fund wiped out. slumped togs, a two-year low. asia's richest man is said to be shopping in europe. good morning, i am angie lau. this is the view right now, snapshot is optimism across the board. sharply after it basically is disappointing the markets a loss instead of doubling profits. kospi 1% higher. macquarie opened up its forecast. off andn forum kicks john dawson is there for us. over to you. >> we are just warming up for what is day one of a two-day meeting. the governor is speaking shortly but i am joined by andrea, the chairwoman of the banking authority. she has jet leg thank you very much for joining us. lag so thank you very much for joining us. of the the reaction banking community to the shop? ck? >> we are still seeing the last years with attention to several banks in europe that were lending to customers in foreign currencie

china relations. we have spoken to a lot of chinese interlocutors who say that these things get done deliberately, generally, within their system. we mentioned this in the report, for our own administration and congress. for athey talk a lot about the economic leverage in the region. they need to acknowledge the shift and see that it is a major change in the way that they approach things. we collectively, would like to see them respond more strongly. pursuing things like the bilateral investment treaty. inside the system as well now like a foreign ministry, not playing the roles that they did under that administration. taking the full scope of how to take this into account is going to be critical. is interesting that someone at his level chose to do so, but i did not find it surprising. >> let me just have a couple of things added to chris's remarks. the recent conference does signal a number of more proactive foreign policy actions with the claiming, of course, the china is now going to have a great

and the key aspect for china is the flow of oil. china is energy hungry. but there's also the issue of growing international prestige. venezuela in need of financial assistance. do tell us a bit more about china in latin america and it will participate in china. what is the relationship been like over the yas. -- over the years. is it a complicated relationship? >> sorry, i missed that. >> between china and latin american countries. ties have gotten closer. what is the relationship we are looking at. is it complicated or easy? >> well the benefit for the latin american side which is full economic upside and no geo-strategic downside - china has incredibly important relationships with a host of countries, but it is engaged in bitter territorial disputes. when it comes to economic ties with latin america, there's no issue to sour the relationship. it's a booming trade, and no conflict. the same is true of africa. it's still convenient. because this is a case of china being able to step into latin america where historically the states have been the key power,