[speaking chinese] >> there is only one china in the world and taiwan is part of china. this is a fact, recognized the principlean important enshrined in a series of international documents including u.n. resolutions. there is no basis in international law for the taiwan region to establish or maintain so-called diplomatic relations with any country. since such relationships have no legitimacy, surely they have no future the taiwan authorities should clearly recognized this major trend. block the eventual and complete reunification of china. [speaking chinese] chinese]ing adopteddent trump has and america first approach and his policies are quite isolationist and populist in nature. people say this will hand china an opportunity to assume global leadership and the president said china will work with the international community to build a just and equitable new world order. will china step up to a globe or -- global leadership role, and what is china's view of the existing international system? >> [speaking chinese] >> i think your question comes down to whether china wil

what is china's position?basically china will hold the leaders meeting what do you hope to accomplish? >> [speaking chinese mandarin] [speaking chinese mandarin] i watch your show almost every night and i hope they will achieve better development. the countries are representative of the emerging economies and over these years they may have risen or fallen and they each space debate could face their own set of challenges but as they have put it the bricks are like five fingers each with its own strength. but when we come together, we are a fist that can punch as long as we stay united at the brickthebricks will not lose itr if more it will shine ever more brightly. >> [speaking chinese mandarin] [speaking chinese mandarin] [speaking chinese mandarin] [speaking chinese mandarin] [speaking chinese mandarin] [speaking chinese mandarin] >> translator: this year they entered the second decade as the chairman china will work with other countries to plan the future offering and the golden decade of the corporation and

china. -- part oft is the -- part of the blame trump has on china is their currency. he has accused china of having a weak currency, so i think tillerson will be laying the groundwork for some talks we will have this year on china's currency come on the u.s.-china trade deficit, and any trade barriers that china has for u.s. goods entering china. later next week the u.s. trade hopefulll go -- will go up for nomination, so once he is in his position in a significant acceleration of u.s.-china trade negotiations. host: let's take a look at the financial times today, focused on the recent words by secretary tillerson about the new approach to north korea. it says the trump administration is no longer willing to exercise "strategic patients" with north korea and is considering military options after a series of provocations. the secretary of state has said that the declaration marked a break from the obama administration's policy of attempting to contain down yanks belligerence through isolation

of china. this is a fact recognized by the world, an important principle in a series of international documents including un resolution. there was no basis on the international law for the region to establish or painting so-called diplomatic relations in any country. seeing such relationships has no legitimacy. shortly they have no future. the taiwan authorities should recognize this major trend. no one and no force can block the eventual end complete unification of china. >> [speaking chinese mandarin] interpreter: president trump has adopted an america first approach and the policies are quitepulp of theseare quite isolationist and populist in nature. people say this will hand over an opportunity to assume global leadership. they will work with the international community to build a just and equitable new world order so will china step up to the global leadership and what is the view of the existing international system? >> [speaking chinese mandarin] interpreter: i think the question comes d

human steps kurds capital him chinaing china. but one big difference between what the soviet union did and the compromises that gore chef had to cut with -- gorbachev had to cut and he had to promise a huge way of new capital investment, all which was wasted but that what's quid pro quo to buy off support from the industrial interest groups and i have a chart of a number tv industrial production members. they shoot up after 1985 as gore chef summers money into the industrial sector. that the industries demand in exchange for support but the soviet destroys are no mow efficient in 1987 than 1985 sew investment is wasted but stress stretches the budget. the huge cost of the program but no economic benefit. second indication study, agriculture. like in industry, the soviet union was very interested in arningbo china's agricultural reforms. china had this large collective farms like the see yet union where round farmer worked on the same fashion an incredibly inefficient system because individual farmers lacked incentive to produce g

tom mackenzie, our china correspondent. china leading out this road map. question we will look at is how beijing's policy decisions could play out when it comes to the economy. but next, the outlook for australian markets, the rba preparing for its rate decision on tuesday. this is bloomberg. ♪ haidi: this is "bloomberg markets: asia" i am haidi lun in sydney. rishaad: i am rishaad salamat then hong kong. we have a look at the latest business flash headlines. m&a talk, standard life in talks to buy aberdeen asset management, creating one of europe's biggest asset pools of more than 800 pay in dollars, seeing standard life share holders owning 30% of the entity. is said to cut costs and free salaries of higher paid staff. world's biggest pension fund posted its biggest quarterly gain on record. or $92 gpif returned 8%, billion in the months to january. a decline in the again boosted overseas investment. more than 80% of stock investments and strategies that track indexes and benefits from broader equity markets rising. look at chinag a second-biggest copper

and china.are 30 minutes away from the we are 30 minutes away from the open end the mainland and in hong kong. -- sophie: we do have new zealand stocks leading the drop, voice for the biggest fall since november, down 1.2%. aussie shares are snapping a four day advance. the year-to-date rally is a repricing for an old-school economic recovery led by shipments to the u.s.. take a look at currencies, the dollar did reach a year to date low. the singaporean dollar appreciating against the greenback. baht extending last week's rally as foreign funds pile into thai bonds and stocks. week, there were stronger inflows into korean assets. is strategist says the won shrugging off geopolitical concerns and domestic politics to make it the region's best performer year to date. below $50 a barrel, take a look at this. we are seeing an exodus of oil price optimism on this chart. you can see how net long positions for wti have tumbled. that is the line in white on this chart. of a furthers price drop have dou

now we have a strong china and i think -- at least on the surface a strong china. were confronting the whole problem of what you wish for. as to china's soccer versus china's mentor ihink were working in that place and right now were very much at the crossroads about how the relationship will go forward and very specific things are going to push it in one direction or the other. for example, how china feels and how we deal with north korea. how we will manage our trade issues. these are going to be important and how this game plays out. also, in how china confronts its debt overhang, social social problems and how we deal with our own issues individually and not involving each other will be important factors as well. right now, without trying to prophesy were at a crossroads and with a new administration here and entering another five years this is a story that will be a compelling one regardless of what happens. one thing on american decline, is that all of us at some time think the chinese definitely have a will overestimate that america will fall in place. ameri

-china relationship.saw during the election campaign a lot of frustration and anger that will be reflected in policy. steve: tpp is not necessarily dead? mike: we will find the roles we negotiated will find their way into effect into a number of different ways. froman, thank you so much. sending it back to you. great conversation with former u.s. trade representative michael froman. david: a great conversation in the hainan province. we're looking forward to the reopen in tokyo. we closed very strong there. lower.yen surged 1% gain for the nikkei 225. on the way up in the morning, do we see a continuum? three minutes to the reopen in tokyo. ♪ >> it is 11:29 in singapore, 12:29 in -- the man behind london's worst terror attack in a decade had a string of convictions for violence and had once been investigated for extremism. khalid masood has been named as the killer of three civilians and a police officer before he himself was shot dead. he had a history of relatively minor convictions between 1983 and 200

people are still hesitant about china. year, we could see renewed enthusiasm in china.hong kong, you are seeing fund flows from southbound trade supporting the market. controls have been a big issue here, and something the chinese government has been clamping down on to we have a chart showing that. how big a problem has this been for chinese investors trying to get their money out? investingbeen elsewhere, but within their own economy. wante chinese government to change or alter the household asset allocation and shifted from so overweight property h-shares, a-shares, so investors in mainland china look at equities as a long-term asset allocation. rishaad: it is a casino. >> at the moment. it is an emerging market, so there is the evolution of the market. >> we see that with h-shares, and considerable flows, almost a hedge against the yuan. we did see a flat quarter for a-shares. there is concern about government intervention. do think this market will pick up and mainland investors will put their money back in? it tends to be a momentum driven market. >> small-cap nam

in china, you never get a strong cpi in china.ose trade numbers out yesterday were pretty unusual, even for the time of year. do you put it all down to seasonality. a lot of people are saying export growth is meant to be strong for china. it is the trade deficit expected to continue or you don't think that reflects chewed trade data when it comes to china this year? >> i would like to combine two for analysis. the chinese new year can be quite disruptive. i would expect china to be a single digit type of exporter for the full year. i think the whole region's exports are picking up. market share, questionable. for the most part, it is interesting. lowhe one hand, double-digit growth for the first two months. then, lost because of commodity prices. you definitely will see a deterioration in terms of trade in china. whether china is already getting the trade deficit territory, it may be a little too early to say. when you take away the seasonal a smallstill have service for trade in china. this year, china, i think, has a small trade

imports in china.r ross, the head of the donald trump trade team, will he take that cudgel up? kathleen hays, thank you. we are looking at the business of banking in asia. this is bloomberg. "daybreak asia." >> abn amro is one of the oldest banks in asia during it sold its regional business. a change in asian strategy for abn? haslinda: a tweak in the strategy. it is pretty strategic. i spoke to marine. it is good to have you with us. abn decided to get rid of its management business. what is the focus of the bank in asia? >> the focus is the bank. we have several businesses. it is very industry focused. we have commodity and we have a clearing business. that business has been steadily growing in the past few years. haslinda: industry growth, where is it and where will it the? >> the asian numbers are included in the global growth numbers. since we started from a smaller base, we have been expanding geographically. last year, we opened a branch in shanghai. we have a long history in asia. shanghai was

from the definition of the communist party of china, they would say that the china government will chooseor you to elect election. but i would say that, if there is a screening process to deny 01’ there is a screening process to deny or reject all of the pro—democracy politicians to be the candidates of the elections, it is not a democratic election at all. so what will your view be of the likely winner of this chief executive race? because we don't know yet, it looks as though carrie lam... well, let's call it selection. carrie lam, it looks as though she is the likely winner of this process. she is deemed to be close to beijing, she has already had a senior position in the executive of hong kong. would you regard her as completely illegitimate, given the circumstances? carrie lam being elected, it would be a nightmare at all. and i would say that he would be the chief executive of hong kong after the 26th of march is not dependent on the hong kong people or hong kong elite. it depends on president xi. so whether the president of china will elect carrie lam, at this stage, no one knows.

china has congratulated carrie lam, although china studies to formally approve her appointment.ina does not necessarily bode positively for carrie lam because there are increasing concerns in hong kong encroachment of china on hong kong's affairs. recognizes the divisions and frustrations in hong kong society and says she will try to work to ease these moving forward. there is a lot of discontent bank to the increasing wealth gap and surging property prices, property being out of the reach of many young people. she has promised to focus on boosting the economy. she has a projected cash surplus of $12 billion for hong kong in the current financial year, so that should help her, but she said she will not look at electoral reform. >> thank you so much for bringing up for us. up next, an alliance in the air. american airlines and china southern shaking hands. this is bloomberg. ♪ ♪ 7:30 a.m. monday, 30 minutes away from the major market open. betty: very crystal-clear, unusual. things are turning up. sunday evening here in new york, markets closed mostly down on friday, getting back

the one thing i know for sure about china is that we'll never know china.e, too deep. there's simply not enough time. that's, for me, the joy of china -- facing a learning curve that impossibly steep. the certain knowledge that even if i dedicated my life to learning about china, i'd die mostly ignorant. that's exciting. it's too much. and it's changing so fast. china has a population of around 1.3 billion people. and the number of them who are joining an explosive middle-class, demanding their share of all that good stuff -- infrastructure, the clothes, the cars, the gas to fuel them -- it's, well -- it's the engine that might well drive the whole world. >> zhou: you like chinese food? >> anthony: very much. yes. >> zhou: okay. what do you want? >> anthony: please, uh, order. of course. yes, some good -- some dumplings. [ zhou speaking mandarin ] >> anthony: professor zhou lin is an economist and the current dean of the college of economics and management at shanghai jiao tong university. like so many people you meet here, he's chinese, but was educated in

bether potential buyer could china.na's state-owned nuclear enterprises are pushing to build reactors around the world, pakistan, argentina, and the u.k. come a so having andinghouse will help them up their prestige on the world stage. china,s one thing, but there could be some safety issues that the japanese government has well is perhaps the trump administration might think about before that sale goes through. those of the two big names that have been floated out there. stephen, broadly speaking in terms of the nuclear power industry, quite startling the way that japanese nuclear power generation has plummeted. u.s. new to power generation is the yellow line, pretty stable, but that decline when it comes to japanese nuclear power generation since the middle of 2012 -- what is the outlook now, particularly in light of these troubles we are seeing? japan, theclear in fukushima disaster in 2011, and public opposition to nuclear has pushed it down. the japanese government is hoping to get the number around to where it was

china gets growth. the soviet union gets collapsed. and growth even of a moderate kind, say the soviet union or gorbachev, it certainly wouldn't hurt, why was china able to get growth fairly rapidly however it's reforms at soviet union by your telling didn't get any growth at all? >> it's the time lab. in 76 and in 78 he started his reforms very early and there is not in immediate demand to result. they start in the countryside and pulled into the sentry and he has a decade to improve his reforms are working. gorbachev faced opposition and didn't have the time. he had to make a big bet and hope that it paid off. the result was that he only got a couple of years, very rapid growth in couple of years to get results but unfortunately he doesn't get that resort in the time. and then you have this big fiscal limitation crisis that led to a class. if you look up the privatized business over time you see substantial growth and improvement but it doesn't happen in a quick time frame which gorbachev had. you had to rush and hope it comes rapidl

and china's missile systems.his is aimed at protecting south korea from north korean missiles. we know the chinese are irritated by what pyongyang is doing. the spot light is shifting away from npc and focusing on these regional, geopolitical tensions. leverage overt of north korea, accounting for 70% of his trade, provides north korea with energy and food aid. in february, it canceled the import of north korean coal, so it does have clout, but does not want to undermine the regime in north korea to the point of collapse. one big fear for china is a refugee crisis across the border, so it is a complex and different set of pressures that china is facing, and thought by that the communist party is divided on how to deal with this we have to get a few details from the foreign minister. what about beijing's relations with the region? tom: i think it is fair to say that this is bad for china's image in the region because china is effectively propping up one of the most destabilizing forces in the region, if not the wo

how about the eu and china?rged china and germany to have a deal that includes reciprocity. there are many european officials who are still concerned about some of china's trade policies. --orts from china to the eu so it is a thorny deal when you negotiate trade, and perhaps that's why so many regret that the trump administration is moving away from these multilateral deals and move towards more bilateral deals, -- i don'tinvolve want to call it headbutting, but i guess that is what negotiation is. yvonne: thank you. still ahead, big is beautiful. we look at how suvs became the new rulers of the road. risk, theying for factors that could derail this year's equity rally. this is bloomberg. ♪ yvonne: you are watching "daybreak asia". i am in yvonne man in hong kong. ramy: a quick check of the business flash headlines, the dalian wanda partnering with ibm , introducing what this services to allow chinese businesses to have access to infrastructure and language services that allow consumers to talk to apps. more se

made ave china has proactive choice, rather than a reactive response. china has not stopped.is still growing developing long-term infrastructure. to partner with other countries so it could see the initiative. china has not design the whole thing, they have encouraged companies to go abroad. establishing an organization to help the financing of that region. yvonne: would you consider building mark copper smelters in china? we aren't -- a mining company that operates overseas. they do have the plan to have a certain good quality copper smelting business in china. yvonne: great to have you here in the studio. let's do a quick check of the latest business headlines. softbank is selling a 25% stake in arm holdings. they set up with saudi arabia. sources say a billion dollars in shares purchased by vision fund. they wanted included in the $100 billion fund. the deal is separate from the $25 billion softbank plans to contribute. foxconn looking at making a deal on toshiba's memory business. they have approached a company to explore the possibility of working together on a bit. all

and china.t all depends on that relationship being kept in order, and whether the leaders on both sides develop mutual respect and understanding of each other. is allowedow if xi to play golf or not, but i am sure he will have a good visit. betty: we will see what comes out of that session, but let's talk about china it self. uncertainty over the economy continues to rise. for our viewers, if you take a can at the bloomberg you see that economic and certainty in china is peaking relative to other regions, and that will be .he purple line that is relative to the world economy as well. how much is it a risk for australia, the u.s., and other countries reader is so much uncertainty over what is happening in china economic policy wise? i have to confess, i have long been a china optimist. over 30 years of working and watching china has not disappointed me. i think the pessimism is , and china outperforms what most expectations hold for it. at present, the numbers look pretty good. up, thehasing inde

travel from china to south korea.avos the president was a big supporter of free trade. >> that is right. this is the economics of idealism. china, the world is in flux with trump coming in. , you are lacking the natural free trade leader in the states. china looks to step up to the mark. retaliates, at least unofficially, against korean companies and stops tourist going into korea. it puts them in a difficult position. it is a nightmare scenario for the chinese. they don't want to be caught in these positions. they would like north korea to behave itself and be quiet in the corner. but that is not where we are. the fascination and malaysia as well also throws things into the mix. it is just a very uncertain picture. how do you price that risk? it is very difficult. you don't know how it is going to play out. it is symptomatic of the tensions in northeast asia. yvonne: it is so difficult, as you say, to price in the risk. our earlier guest said, what can you really do? how do you price something so uncertain? i want to

to have it in places it is one the hot beds of extension in all of concern china to be complimented by shanghai is an audience of tremendous impact so i want to say thank you to the warriors for including us of course, october will be another one the exciting times because they'll have already parades through the country hopefully with yet another win and we look forward to that you know, i must say that sports continues to be be an international language in and of itself that's why i appreciate the chinese chamber here that is going to probably. >> wage again, the community support that the warriors have given all the communities of san francisco and not just chinese community i know filipino community and asian community all the ethnic organizations that are diverse in the bay area welcomed to the games that's why i them comfortable at the games when you go there on our games you see people from you'll different backgrounds there yelling and screaming but also for the team and also just recognizing the value of diversities in the san francisco bay area have that recommended open o

in china we have a dual brand strategy. we have a flagship brand in china.field is being introduced in the chinese marketplace. are you preparing for more protectionist policies out of the trump administration? are you expecting that could hurt your business there? ken: i would say we are not expecting any trade wars. certainly, that is a dialogue amongst everybody, what will happen with the trump administration. the trumpl belief, administration recognizes american agriculture is the antidote to what is most complained about in the trade deficit. and on a world scale it is most competitive and helps balance out the trade deficit that we have in the united states. betty: thank you so much, can sullivan, executive director of the wh group. ♪ ♪ tencent planning to spin off its business to its users and keep them glued to its chat service. we have someone here with of the details. were the big highlights? >> the miss was mostly because there cost of revenue jumped 60%. they are opening up their wallet, trying to invest in cloud content for its video platform an

it is not as clean-cut -- maybe bangladesh,e -- -- maybe it was china. >> how will china react to thisolm: when china gets hit with tariffs on tires, it will hit back elsewhere and to look at some of its biggest imports from the united states, don't forget while it runs a trade deficit, it is a major importer of goods from the unit states. aircraft is one key area. electrical machinery and equipment, all of the machines and equipment that feed the chinese factories and equipment, much of that comes from the united states and we have the a close other than railway, and china, might japan, does import some u.s. cars and has joint ventures with u.s. automakers, so china can definitely hit back in these areas. you so much,hank malcolm scott, and staying on that, president trump decision to pull the u.s. out of the transpacific partnership has left the remaining countries short. australianormer ambassador to china and we asked him if the tpp needs to be completely rethought. >> a lot of work has gone into tpp, many years, and i think countries have taken themselves to a much higher level of

in china.o stick around with us for the all in discussion. that, an interview with the president on of ubs wealth management and whether there is room to run for chinese equities. that is next. this is bloomberg. ♪ shery: with that the goal of strengthening its position as asia's top wealth management, ups keeps its eyes firmly fixed on china. david: the president of ubs wealth management spoke earlier. china is obviously one of the key markets and is here to stay. there is a large fundamental trend on wealth being created, and we want to capture that by going on sure. owne markets have their dynamics. we felt looking at the china equity market that there is more potential and we think the valuation gives more room and there is a secular trend from growth. we are long china. would be the biggest concern voiced us by your clients right now? much should geopolitical risks do we have. how much will the rally be sustainable? when you look at the clients institutional clients have been cautious, and

the culture spread to china in the late 1990s. from then a number of young people who like anime and manga slowly began expanding the culture. initially the movement was met with disapproval but when the chinese government began promoting them, they began investing, creating major industry. cosplayers who now symbolize the culture are making a living from cosplay. some of them appear in dramas and variety programs. major dramas featuring cosplayers are even in the works. china's cosplay is experiencing dramatic shift. this episode follows these changes and the young people attempting to create their own culture by building a society where cosplay leads to business. >>> this is northern beijing where the china national convention center is located. a large scale event was held over two days from december 31st, 2016. despite the new year season, more than 100,000 people attended the event. some attendees came far. the beijing animation games carnival is the largest such event in northern china. it is held four times a year. the 220,

a lot going on here in china.aviva, they are shaking up the roles as we asked them to clean up the industry. i want to talk more about the regulators at this point. they have been increasingly scrutinizing the product with higher yields. they are not limiting what you can buy at this point. what impact does that have on of business?-aviva's chris: i think it is good news they have a more disciplined approach to the industry. we have had a range of products come out. we take a traditional sovereignty management approach, more aggressive. is a 300-year-old company, more focused on. we are making sure investments are sound and secure the back the promises companies are making to consumers. in hong kongapital it will have impact on the domestic industry here. depending on the company they have varying shares of sales to mainland chinese visitors. truly that will have a short-term impact. we will see how that hands out. standpoint,kong independent rules were made in 2007, new rules about distribution. it will shake up

and china time?would be very unlikely if he wasn't asked. ,e do submit these questions and is up for the foreign ministry to pick which ones he answers. the u.s. is clearly front and center in terms of issues that have been discussed at the mpc, whether in the halls of power or the big meetings and discussions by the ministers here. like kaiser has made these lightts -- like kaiser -- haiser has made these comments. the chinese and communist party have been taking a very powerful prose -- approach to how they respond to the comments out of washington. clearly, this meeting between the two presidents in april is going to be key. what they want to do, the chinese, is to have some role as washington firms up their asia policy. let's see what we hear from atme minister -- premier li this press event. thene: do we get any sense last week of the political chess game going on behind the scenes? been a very has tightly orchestrated affair. what we haven't seen are any of the likely contenders coming and hogg

what for it than his prea‘eeeseorfi china? do you think it could about china?y component in this move towards north korea even - fact towards north korea even the fact they have been some complex in terms of rhetoric and you have china against this anti—missile defence? from the us and south korean perspective, the whole anti— missile deployment system does not make a lot of sense because they feel that china is the key to all things north korea not be china had the instance implemented sanctions in a much more tight way as they were supposed to based on the un security council resolution, this whole thing would not have happened. could we see more sanctions coming from the chinese without the influence of the west?|j think without the influence of the west?” think that the without the influence of the west?” think that - the compliance think that although the compliance has been much better now than the past but i feel more the degree of sanctions from here on and what was was that it was not missing was that it was not implemented. it is a little too little..

as well as china.nounce and welcome the professor of the policy of asian globalization. to talk more about this meeting, thank you for joining us. we would love to be a fly on the wall during this meeting tomorrow. you actually advise his staff as you are telling me before. this may not be the best idea for china. why? >> taking a high risk. they do not have a team to work nominated 70 and 50 of them have come from another congress. i don't think donald trump as a policy framework. last but not least i do not believe there is a constructive consensus in washington dc. the country is one of the washington establishment are deeply divided. she takes a risk to go visit donald trump because it could be quite underproductive. it might be too late to step back but he proposed this should be the most formal meeting of possible between the two. what needs to be accomplished and what are the priorities? >> donald trump is a smart enough to ask her to go to his home instead of washington dc. she will not be expo

one is china.interesting -- aroundted in deploying the globe, and interested in the supply chain for toshiba's machine. they are a potential buyer. south korea, that's another possibility. they deployed this advanced third-generation nuclear reactor that toshiba is building. there's a good fit. the least likely fit is mitsubishi heavy and other companies in japan. because of technical incompatibilities in any case, any buyer is not going to want liabilities associated with nuclear business so toshiba will have to figure out a way to restructure debt is off of the southss and observe it in -- itself. rishaad: this is an industry backed by spiraling losses, credit downgrades, and growing debt. the difference between the companies that survive and the ones that are flailing is a level of state support. what is the government in tokyo doing for this? is there any word from them? reporter: i think at this point given the accounting scandal we saw with toshiba in 2015, and now this involving the nuclear

china 200 nuclear weapons, nobody would contemplate attacking china. great britain, small number of nuclear weapons, that is part of the debail talking about the bigger program to upgrade all three grades of the nuclear triad, land-based, submari submarine-based and bombers that have nuclear weapon, how much of the triad needs to be upgraded, what should we be buy nothing terms of how many nuclear weapons. the goal is deterrence, not actually fighting nuclear war. host: kansas city next, go to maurice, independent line. caller: how you doing? good show. i'm a vietnam veteran and veteran working in the coal industry. i would think everyone should have the right to protect themselves. i don't know, it seems to me is there anything, the question to me, is there anything we're doing to provoke these other countries to want nuclear weapons? like you say, everyone has the right to deter and protect themselves, i don't know, it's confusing to me, like i said, 32-year cold war veteran, made many nuclear weapons parts and i hope you understand what i'm saying.

to china as far as the homeland. i know that china has very specific concerns about a missal defense system recently deployed to south korea and we just need to make china believe that there is no imminent threat to their homeland. i think they and we know that north korea, as it exists, is not sustainable. host: thank you. the chinese leader will be in the u.s. next month visiting president trump at mar-a-lago. the washington post headline -- they tested the rocket up historic significance in the post as details in terms of what happened, well missiles were not new, the tactic was. to outsmartdesigned the terminal high altitude antimissile battery that the u.s. is the point to south korea, which would have difficulty shooting down for targets at once. developed engine was by the north academy of the national defense science. missal experts are waiting for higher resolution photos from the state media, looking for clues about the technology. the engine appeared smaller than april of last year and the color of the fla

this is china's communist party elite.ates to the annual showpiece rubberstamped national people's congress. of course, you would expect them to say that their leaders are doing a betterjob of governing than donald trump. but nevertheless, what they have to say about it is pretty interesting. america, if you think you are having a tough time of it politically, why not study what china has to offer? what we are finding here is what you might callan what we are finding here is what you might call an outpouring of politeness towards donald trump. what you often hear american politicians criticising china, here, it's not really been the case. —— while you often hear. there you have it. it is interesting because here at the great hall of the people, behind closed doors, there are plenty of discussions going on about china's own political intrigues, questions of whether or not president xijinping might intrigues, questions of whether or not president xi jinping might stay on beyond a second term but, you know, it is different he

and china.his is an important opportunity to follow up on the telephone conversation between president trump and president xi and to pave the way for continued productive high-level engagement. since the historic opening of relations between our two countries more than 40 years ago, for u.s.-china relationship has been guided by an understanding of non-conflict, nonconfrontational, mutual respect, and win-win cooperation. it is important that the leaders of our two countries engage in further dialogue to develop a common understanding that will guide our relationship for the next half century. the united states and china are the world's two largest economies, and we must both promote stability and growth. our two countries should have a positive trading relationship that is fair and pays dividends both ways. we will be workingn thagoing forward. host: comments of the secretary of state. "the london guardian" reporting on his travels through asia. military action against north korea in option, th

they want to improve their china access.similar to what delta did with china eastern. could be see us carriers increasing holdings and shareholdings in chinese mainlands? that is contingent to open skies agreements forming between the united states and china. if you see that, you can see these carriers working more closely together. you might see some code—sharing. if this deal goes through between china airlines and american airlines. u nless airlines and american airlines. unless they can have a joint venture, they will not be able to talk about price scheduling and other key things. if you see an increase in stakes in china, could this impact the likes of cathay pacific, chinese carriers having a sta ke pacific, chinese carriers having a stake in the hong kong carrier? hong kong airlines has a large codesharing deal with cathay. if you see american airlines trying to shift some of that traffic to china southern and a stronger relationship between china southern and cathay, major competitors, i cannot imagine cathay will b

that is because china is such a big country.p—down measures to pass all those measures. sometimes they can be downloaded. citing for this year, china is going to set a lower bar for growth, because for the past two yea rs, for growth, because for the past two years, people have been focused on growth. if you really want to promote growth, it sometimes you need to sacrifice reforms and the measures to contain the risks. they also trying to input into this target of about 6.5% may be donald trump's policies, branding china as a currency manipulator that could impact growth, going forward? that is right. i think this is also taking a few factors into account. number one is donald trump's policy. number one is donald trump's policy. number two, of course, the rate hike that might affect chinese growth. china is preparing for all the possible outcomes from the international stage. and briefly, do think that a trade war is eminent between china and the us. in the business use, making headlines, deutsche bank will be offering shares to

-china trade war. it's a major political year for china.we get any sense of the political chess match going on behind the scenes? it is sometimes the case that the you read the tea leaves and tried to get a feel of what is really going on behind the scenes at this big piece of political theater. as you say, we do have the party congress at the end of this year where we are likely to see a leadership recessional -- reshuffle. were looking for president xi jinping to shore up his power base mother we have not had any clues as to what is going on. everyone has been on message. heard of xi jinping being at the core of the country and the party as a strong international and domestic leader. that is the message being put out. it is a big year for china. we make it more from premier i at this press conference. haidi: thank you for that. still ahead, futures trading, is that picking up steam in asia. we get the lowdown. with the fed hike all but baked in, margaret's listening to janet yellen's language on wednesday. we have a preview. that is next.

we took a trip down to southern china, guangdong, the manufacturing heartland of china.nt to a city called h uaijo. wages have increased, demand relatively flat, the raw material prices have gone up, but for many of them, shrunk -- trump has to be a threat. they are looking to move to places like myanmar and the it not. we spoke to taiwanese offices looking to move to other offices in the region. take a watch as to what we found out with this city in southern china. this scale isn this delicately coordinated deathly molten glass, -- blue pipes and more. it used to be used to be worth it. it is now more expensive and cooling demand means profit going up in smoke. now they have to contend with new trade tensions. 90% of the glassware made in this factory ends up on shelves in places like home depot and lowe's in the u.s. any tariffs imposed by donald trump on chinese exports would kill business. town, past the hoax of shuttered factories, this person has made his decision. he will move his factory this year. the new u.s. president was the nail in the coffin. the uncertaint

we announced that the bridge is china -- between china and russia is coming in. prices are going so good, people want to get back in. are you thinking that to happen, when it comes to these local miners in china? >> it is one of the reasons i talked about volatility. people talking about the possibility of bringing back production. es, we are min itively considering bringing back online. it cannot be brought back online instantly. you cure up your mining operation and logistics. i don't think who see a supply fix in the immediate future. shery: we do have the tokyo reopen next. this is bloomberg. ♪ live-stream your favorite sport at the airport. binge dvr'd shows while painting your toes. on demand laughs during long bubble baths. tv everywhere is awesome. the all-new xfinity stream app. xfinity. the future of awesome. it is 11:29 in hong kong. gorsuchreme court neil says he would not hesitate to rule against president trump if the longer require it. he also refused to say if we would uphold the ban on travel from six muslim nations. gorsuch said he made no promi

china isjust to go? then we take them to japan. china is just growing and growing because of that.ys in china has exploded. and you have made the most of that and this year in terms of your turn over you've smashed last year's increasing turn over, haven't you and we're only in march. what i found interesting, i looked at your website and it was great and interesting, but i understand from last week you could book online. is that not a little bit backwards? i would have thought you should have had us booking online many years ago? yes. we grew very fast and because the destinations that we do such as china andjapan, destinations that we do such as china and japan, people like to talk with us and they need our expertise and knowledge. we do audio experiences for example, over our holiday. 0urjob is to make it easy for you to go to china and experience the hole thing. so it's a three meal stay and all the entertainment and everywhere in china. so that's the reason we grow so china. so that's the reason we grow so fast. in the past, even working with our travel agents they are very st

china feels that could be an offensive mechanism targeting china or that could be used against china. china does not want a war on the peninsula, nor does the united states, because north korea has thousands of missiles and artillery shells that are aimed at south korea, which is just a few miles away. population centers of millions of people just within seconds away. and any type of a strike against north korea, and you should talk to -- maybe have some military people on your show, but they would say by the time we could launch anything against north korea, north korea would within seconds retaliate and launch their missiles and destroy the many population centers of south korea. so this is a very, very dangerous situation. and we're just going to have to look at all different types of options, from economi and diplomatic efforts to try to get north korea to stop developing nuclear weapons. >> you've sat in on high level meetings with chinese officials. you've talked the issue of north korea. today president trump says china is doing little to help in putting an end to this situatio

and china, saying as the u.s. pulls back, this should now be the position that australia should look to strengthen with fhcichina, and it doesn't need e a quid pro quo, that they need to have this strategic security alliance with the u.s. , this incredibly important economic and trade relationship. china being the biggest trading partner for australia. >> on tom's point there, tom talked about a lot of the things china hopes to get. chinaanything specific on tradet we should be watching out for for the next 3 1/2 days? verys, the premier got specific. he said we will continue to import more from australia, including chilled beef from australia. that is a wrinkled from the free trade agreement that was signed about 3 years ago. currently most of the australian beef that goes into china is frozen. there are factories in china that are licensed to export fresh beef. that is something that will be mentioned, something over the commentary leading up to this trip and australia focused on as well. the prime minister says

we have nafta, trade with china. all of those events, videos from all of those events are available on w americastradepolicy.com. we are looking at the future of trade and hosting a series of events looking at things like 3d printing and the impact those have on trade. we couldn't have timed it too much better. last night the president was tweeting about trade deficits. as you know, the mission is to educate about trade policy. we couldn't be more happy than to have today's panel. we'll have a discussion and then open it up for questions. with that, peter. >> thank you very much. thank you all who successfully braved the rain today. obviously we have a very timely discussion topic today. really it is at the very heart of the debate about u.s. trade policy. we are very fortunate to have three recognized experts in trade policy, economic policy. to my left here is rob shapiro. they specialize in economic risks and economic policy. he is also at the georgetown university school of business and previously served among ot

i think we will see that, it is trading in china, it takes place a lot in china.here may be a lot of people trying to get money out of china. do you think that that rampant demand from china is continuing? where we're going to see most of the trade, where this is happening. 90% of all bitcoin trading is taking place in china. that has nothing to do with this. >> what is the driver? i think it was a function for them to get a love or money. bringing this to all markets. this would have a regular stock exchange property. >> we will see how well it is doing and where it is coming from, thank you for shutting the light for us. is largest jobs figure surprise with the upside. 250,000 jobs were added to the united states, unemployment went down to 4.7%. jobs were of these from construction and manufacturing. this was a good start for the trump administration. many continue to wonder if the momentum will continue. the tech sector has concerned with the new talent. we have jake schwartz joining us. as well as david kirkpatrick. thank you very much for joining me. are digg

it may be a lot of people trying to get money out of china or assets out of china and using bitcoin too it. caroline: do you think that demand from china is continuing? we find out later where the trading is happening. we are seeing 90% of all bitcoin trading happening in china and that has nothing to do with the twins. driver?: what was the functionhink, again, a for these guys to create more money. the trading of the etf to all markets. but it would have created a regular stock exchange proxy for this currency in the way there proxies for other currencies and gold and so on. caroline: we will see how it pans out. that was a cory johnson shedding light. the largest u.s. jobs figure delivered a surprise beard 250 5000 jobs were added last month in the united states. the unemployment rate fell to 4.7%. games that -- gains come from construction and manufacturing. many are wondering if the momentum will keep up, especially in the tech sector with growing reforms on the h-1b visa. from new york, jake shorts and my guest host, david kirkpatrick. thank you for joining me. it is hard when yo

coming up next, we stick with china because china-australia ties are in focus.ese premier li keqiang heading south, arriving this evening to push his free trade message. we will speak to nick coyle about the importance of business between these two trading partners. ♪ it is 9:29 a.m. in hong kong, cloudy, rainy day, counting to the start of the first trading day of the week. i am rishaad salamat coming to you from bloomberg's asia headquarters. haidi: i am haidi lun in sydney. we are seeing a negative session in asia, picking up that lead from wall street overnight. take a look at the yuan, china and focus, not least of which is the impact on the small rural lenders, banks who have failed to make that repayments, forcing the pboc two and jack hundreds of millions of yuan into the system. the money market rate climbing the highest since april 2015 as the pboc tries to strike this delicate balancing act. right, also, of course, those losses we solve for u.s. is a theme there trump trade is over with and those progrowth policies will not get easy passage through --

china, because china accounts for about one third of gdp growth.ndia has about 17% area to economies, more than half of gdp growth. nobody is a beneficiary of a sharp, abrupt adjustment in the chinese economy. -- y: haidi: one of the things is that the yuan exchange and -- exchange rate might be further liberalize. does that mean more volatility? will that give rise to the current debate between the u.s. and beijing? that it will.ow the u.s. can back off that debate, i suppose, but it is the one issue. every president in the past couple of decades has spoken about be chinese current -- the chinese currency being an issue. >> they are on the technical fence, and you can justify tax or trade policy to do whatever he likes, so the broader kind of relationship, which is in focus. and there we should expect that there will be some change in the way the u.s. treats china as a trading partner, certainly in most other areas. the ministration has delivered something, and we should risk spec something that is uncomfortable. haidi: in terms of the pace that w

-china relations. he also said the u.s.-china one china policy was the highlight of u.s. one china policy. he talked about this being the foundation. it points to a sigh of relief over the phone call it in the -- where trump did say he would support one china policy after previously questioning whether or not that should be part of the bargaining chip for the u.s. when it approaches trade with china. trump came out and said he will stick to the one china policy. everything else they can negotiate and work on and move things forward. from the chinese policy that is the bedrock now and from here they can move thing forward. >> secretary of state rex tillerson is in talks with prime minister shinzo abe. >> we are outside the guesthouse which is part of the ministry of foreign affairs where the talks with his japanese counterpart will happen later this afternoon, as well is a meeting with prime minister shinzo abe. north korea will be a top the agenda. also issues with china. don't forget about the issues with japan the united states is withdrawing from the transpacific partn