in china. i would like to hear how would you use your important long and trusting friendship with president xi and what i expect will be your growing knowledge of china as you visit every province to really make intellectual property and stopping the theft of me,'s inventions a key priority in your role as governor if confirmed. >> well, senator coons, the incident that i was mentioning a few minutes ago actually involved dupont pioneer. as you know, we share dupont pioneer. they've been a wonderful american company and we think it's critically important that the rights and i'm aware of the fact that they're doing some important business in china. we also have the world food prize in iowa, and one of the recipients of the world food prize is the chinese gentleman that was involved in rice. and there's opportunity for dupont pioneer and they're also going through a potential mesrgr right now, there's opportunities for them to work together for the benefit of not only these great american compani

is $45 trillion wealthier man china. -- than china. that includes national debt, the famous $20 trillion national debt. china has a lot of it too. we subject -- subtract that from the balance sheet. and the u.s. is $45 trillion wealthier than china. the federal reserve and credits, the u.s. household wealth totaling about $82 trillion. china is about $62 trillion. and the gap in national wealth is growing, not shrinking. merica is becoming wealthier while china stagnates. i would argue that this is a more relevant metric to size of the national economies than gdp, while china stagnates. i would which is not only looking at arbitrary metric spending, but we are also taking the chinese gdp numbers -- which all chinese officials know is absurd. the officials do not ven believe their own numbers. it is true. the last head of the bureau was on trial for corruption. part of the reason is chinese statistics are done at the local level. imagine if all 50 states in america each had their own fiscal bureau. imagine if there was one party rule, a

policy with china. i'm also interested in your thoughts as to what we may see by way of cooperation with china on north korea going forward. i understand that what the president has asked of china, but i remain concerned that we've seen this movie before and we really haven't seen any change in china's position as it relates to north korea. many of us are concerned that they'll only go so far, but they're concerned about the stability of the current regime will prevent them from take the necessary steps that change the equation for north korea. we welcome your thoughts on that matter. so let me lastly mention one additional issue. you will take, if confirmed, the oath of office to project and defend the constitution of the united states. before president trump took the oath of office, many of us urged him to take steps to avoid a constitutional conflict with the emolument clause, and he's the 07b8 president that has not divested or set up blind trusts for his financial institutions. that is not your doi

neighbors in the east china sea and south china sea. they attempt to use the threat of military force to address territorial and regional disputes. as you and i discussed when we sat together recently in my office, i am deeply concerned about the deterioration of human rights in china and the environment for civil societies, independent voices in the country. when i joined the senate foreign relations committee on east asia president xi jinping became the president of china. at that time many of us hope that china would be on the verge of a more progressive or reformed era. that along with growing interaction with the outside world and the significant economic development of human rights would indeed improve. yet, the opposite has proven true. president xi jinping has adopted a slew of laws that violate the most basic of human rights of the chinese people. that presents challenges to you as interests and values as well. the community of civil activists in china thrive in the 1990s and 2000 partly as a result of the us engagement both di

s economic dependence on china. the two allies should think seriously about new bilateral energy partnerships that could reduce south korean energy dependence on china in the middle east. washington washington and seoul's policy offices can work together to map out a strategy for engaging india, as well as asian countries. the chinese have proven with their coercion over the thaad issue that south korea's future welfare cannot be left in chinese' hands. finally, the united states should encourage new government to tack a stronger stand in supporting blackgoods off the peninsula in neighboring waters. in particular as part of a new engagement strategy, the u.s. with the support, south korea could show willingness to -- this would win partners among countries and be a distinctly positive platform for the united states and its regions. >> before we go to you, we have a quorum. i ask the economy to consider the list of 5,550 military nominations. is there a second? all in favor say aye. the motion carries. dr. freedberg

taiwan and china split amid great acrimony at the end of the chinese civil war, and china claims taiwansovereign territory and threatens to said china must recognize that its efforts to diplomatically isolate taiwan are not beneficial. trade agreements that taiwan manages to sign with , and any mores trade deals with taiwan, would be beneficial for both taiwan and for china. trade or is talking up it is he doing anything else, any other overtures, to improve the relationship? >> this was one of the most interesting things he had to say. he was keen to point out that taiwan needs innovation, investment, but the other thing he says taiwan needs is immigration. when yous at a time anti-immigration rhetoric and the united states, brexit, so this is a remarkable thing from the premier here. he said taiwan needs to attract more talent into taiwan to make up for what he says is the biggest threat to taiwan's economy, the brain drain, talented come young, ambitious people in thai one are being taken away -- people in taiwan to being lured away singapore as wages have stagnated for more than a d

in china, and the recent, "unmade in china." he has conducted many briefings about chinese trade and u.s. competitiveness to members of congress, senior military officers and the business community. his analysis has been featured in the wall street journal, the financial times, u.s. news & world report, npr, bbc, and other cable and other media news outlets. with that said, please help me to welcome jeremy haft. [applause] jeremy thank you very much. : thank you all for coming today. thank you for the world affairs council of colorado springs for hosting us. i confess that i was the one who voted for no podium. i tend to get lost. it's the darndest thing. when i started doing business in china 20 years ago i was 6'4". , part of the thing i want to talk to about, the view on the ground in china is very different from what we hear in our politics. the topic today is timely. we have president xi arriving to trump meet with president to talk about a host of pressing issues. and so doing, i want to bring your attention to a study tha

of china.magine there is further downside ahead when it comes to the aussie dollar. the aussie dollar fallen for a fourth straight week going by how the decline has been. we have first word news with paul allen. paul: new korean president moon is-in has told china he aware of concerns about the u.s. missile shield and will try to resolve the problem. in a phone call with president xi jinping, he said it would be easier to settle differences if north korea were to stop being so provocative. president xi jinping to examine restrictions on korean companies working in china. likehizer clear as the u.s. trade representative. the white house told lawmakers that china is one of america's leading trade problems. preparing for a widening of a ban on laptops and large electronic devices on planes bound for american airports. they are meeting the department of homeland security to discuss the decision, though it is not clear if there will be an immediate announcement. the march ban affects flights from ei

the only country that did not say china was china. there is a reason for this. but we can understand why we feel this existential angst about china, because all the economists echoed this point of view. anybody that reads the newspaper sees china, the world's largest economy. now, we have been told it is -- it is the world's largest economy. anybody reading vanity fair in the summer of 2015, there was an article by joseph stiglitz, called "the chinese century," where he said china just surpassed the united states as economy. how could we not feel existential angst? how could you whether you voted for trump are not somehow feel a yearning that the best days of america are behind us and we should somehow try to make ourselves great again question mark china is the thematic ground to this desire. doeso we get this, where joseph stiglitz say china is the world's number one economy? it is based on a number, all the stuff is based on numbers and this is why it is difficult to get this across in sound lights and bumper stickers but it is important. economies are sized

this, the headin of china's largest oil and gas producer, cnp see, china national petroleum corporationy issue as the energy security. and i asked him about russian pipelines digging gas from russia to china, why there were delays about it, and also prospects with u.s. energy, oil and gas, into china. >> china's reliance on imported oil is over 60%, which means that almost 300 million tons of crude oil are imported every year. the u.s. has very rich oil and gas resources while china needs to diversify in imported crude supplies. american crude will certainly be one of our options as the u.s. government is losing its restrictions on oil export. it is strategically important for china to expand the national gas ratio in his primary energy mix from the current 6% to 10% or 15% in the next five to 10 years. tom: would you consider investing in u.s. energy? we are interested in investing in u.s. lng projects now that america has lifted export restrictions on lng. opportunities in building natural gas plants and customization facilities were investing in lng projects, we will consider them. t

shouldn't be worried by china and the china and u.s. have normal trade ties. >> and rose on higher business. while had cash profits hey fell to over 200 milcon. commonwealth margins fell on competition. a campaign and trade disruptions with the u.s. and grain worries about its unpredictable neighbor. tell us about expectations for the day. >> presidential candidates have already started voteing about an hour ago, one cast his vote here. people are lining up tore cast a vote. there are more than 13,000 polling stations across the station and get exit polls after polls close. but give quen this is such an unprecedented vote after the ouster of the former president, there is still questions about what will happen next. at least, we would see a transition team with a president-elect. the president will immediately resume power and the winner of the elections. you can imagine that the interest is very high and not surprising and seeing the lines for all of those voters trying to cast their ballots and the national election commission said a

china should properly take actions. china should understand. between the united states and understand the fact that there were talks on this regard. >> china seems to be more aggressive with south korea recently in the response to the deployment of the missiles. china deployed economic south korea,inst they seem more aggressive with south korea than they do with north korea. is this china moving in the right direction there? or are they still trying to keep a relationship with pyongyang in a way to not put much pressure on them? road form one was organized on the day the missile was launched. that china do not like that north korea chose that date. how china would receive the message of north korea, that would be the point. north korea has been provocative. the provocative behavior is what we have to stop. that, japann for with strongly appeal to china. relationship last year at the g 20 meeting, i did have a summit meeting with the chinese president. this year is the anniversary of our friendship treaty with china. the presidents have agreed.

this. >> do you think china will? china was more aggressive with south korea recently in its response to the deployment of the thaad missiles. seems to be more aggressive at south korea than it has been with north korea. you talked about the limitation of coal but do you -- is china moving in the right direction there or does it seem to be still wanting to keep that close relationship with pyongyang in a way that is not putting much pressure on them? >> translator: for china, the one belt, one road, the extremely important forum was organized during the weekend. on that day, the missile was launched i'm sure the chinese deeply perplexed that north korea chose that date, china would receive the message of north korea that would be the point. so north korea is provocative behavior. for that, japan will strongly appeal to china. as for in terms of sino-japan relationship, during the apec i had a meeting with president xi. this is the 45th anniversary of normalization of diplomatic relationship. and president xi and we ha

and second—tier markets in china and second—tier markets in china and second—tier markets in canada.round the world. however, i think the issue remains what is going back and forth between the two countries. is that trade balance? what are you expecting and what are you looking forward to in this one belt one road summit taking place in beijing?” think what comes out will be interesting. much of it will be details that a prearranged in that, we all know that infrastructure is going to expand very greatly, um, we know that this will connect china to any countries in central asia, western europe. however, aside from just a building a lot of infrastructure, what services come out? i think it is a mystery to everybody. a mystery and an ambitious plan from the beijing government. if the us policy for america first pushing its allies to look to china for better global and regional leadership? on behalf of canada, definitely. they have, the us have slapped a tariff on canadian lumber, china is our second biggest market for our lumber. canada has spent decades selling wood into china. the po

does that push china closer?further signs of a cool down in the chinese economy. what are the latest data points telling us? we are getting pmi this week, but we are you have a good idea what this will look like. is crystallized around this idea that we will see a cooling chinese economy in the second half. we did get stronger industrial profits for april, up 14%, slightly lower than what we got in march, 23%. we have a terminal that shows what has been happening, #8130. in 2014-2015,t you saw week industrial profits in china. in 2016rted to pick up and powered ahead from december 2016, then this huge pickup in march, so april still strong, increasing 14%, but we did find out from their data that there is increased pressure for chinese exporters when it comes to credit and the expense of credit, so that may start to push down profits going ahead. we also got ford indicators, some syrup -- ford indicators, some surveys that china is starting to weaken and wobble somewhat. we have a standard chartered survey lookin

china and for japan the east china sea is important in the territory. therefore from the japanese defensive posture we do have to predict and south china sea the coral reef that cannot be tolerated in that is the place where the japan uses the ceiling . they have facilities built their safety and japan should collaborate with the rest of the world so that japan should commence china to follow the world by the international community. the difference between north korea and china that china is able to consult diplomatically. north korea diplomacy it cannot work. therefore, the thing facing us as north korea should be currently china is using the lateral approach trying to change the south china sea. japan and russia used to have a good relation and when i was the defense minister, it was first carried out very good relationship but at that point russia trade out being electoral the change of status in ukraine in the ukraine from japan but we should not tolerate the coercive that change of status and therefore together with united states japan carried out

on china and china has been providing ballistic missile technology in all probability, and we know thaty have been providing components and semi processed missile materiel to the program that is obviously unacceptable to us. so there is a lot of negotiation right now between washington and beijing, but eventually, president trump has to make a decision that if the chinese can't solve it, he will, as he has told everyone, he will solve it himself, and that is going to be extremely ugly. >> i askcolonel jack jacobs thi before, and i will ask you again, this is the on going threat for some time, and any discussion of having a real missile defense system in that region? >> we have the terminal high altitude missile system deployeded on the korean soil, and that is two weeks now. and the new president of south korea moon jae-in wants it removed and this is a matter of contention between washington and seoul for some time. the united states is quite effective with missile defenss s if we move the aegis missile destroyers off of the coast of north korea, but also, we don't have much in the way

while you look at the situation of china, and the island in south china sea, fighter seem. further they adjust in training or diplomacy. they say aircraft will not be used but military aircraft exist there that is the fact. and therefore as time passes, strategy balance weigh more heavily to china. and therefore, this not a deal in it should be taken care for the best to great interest. >> stage here and then in the front row we have best and brightest of japan's national security thinkers.ve the and the reality is we could probably get more and more members to fill the rows who would agree with what you're saying. members i think there is a pretty strong consensus among political elites about japan's strategy going forward and people can tell me i'm wrong later but i would argue among american treaty allies there's more consensus in japan than there is anywhere particularly in europe and include europe and australia. and that's all quite impressive. at the same time, the national security legislation was a hard, hard legislative fight. and almost half of japanese opposed i

and in london, china and the philippines hold their first talks the disputed south china sea later ashey hope to ease tensions. and staying with the maritime theme we hear how scientists are searching the ocean for monsters with teeth from the deep. glad you could join us. it is seven in the morning here in singapore and midnight in london, seven in the evening in washington where president trump has spoken about the appointment of a special counsel to ta ke appointment of a special counsel to take over the russian investigation into potential ties to his campaign. he said the entire affair was a witch—hunt which hurt the country, as he put it, and he denied ever asking the fbi director to end the investigation into his national security adviser michael flynn. we have the details from washington. the president's just not happy with the scrutiny he continues to come under over his links with russia. the entire thing has been a witch hunt. and there is no collusion between, certainly myself and my campaign. but i can only speak for myself and the russians, zero. i think it divides the c

students at this campus from china, no option but to pay up campus from china, no option but to pay upfiles i'm locked by the hackers. translation: the encryption of planet —— ra nsomwa re was advanced. the encryption of planet —— ransomware was advanced. individual users would not be able to recover theirfiles. for users, they should also make always back up their files, upgrade best suit —— security softwa re files, upgrade best suit —— security software and use antivirus tools. that is the main advice from security experts. download the latest security patches from microsoft and regulate backup data to devices not connected to the internet. let's look at some of the other news. we will be keeping an eye on this week. later today, thailand and sales growth numbers on the january p0 —— january to may period. since the death of their king last year, thailand is expected to have grown at their fastest pace in force ——4 yea rs. at their fastest pace in force ——4 years. google's developer's conference gathered from around the world. letter this week, conference gathered from around the wo

we are 30 minutes away from the china. in looking at the theme today, it's hard to get away from the higher bys drive, led the cohesive comments from the oil ministers of russia and saudi arabia and beijing yesterday, saying that they want to go another nine months when it comes to this supply cut deal that was reached. and began in january. take a look at this chart. to the supplier that opec can't control. u.s. inventory numbers drilling reports as well. 2017-2018, and 2019 consensus forecast as well as the number for wti is all leading to $50 a barrel. the question is whether we can put higher -- put higher. we are seeing risk appetites and lifting, broader commodities as well. we are seeing a nice recovery for the lack of iron ore. most of these base metals are doing nicely in the day, but we are looking at the longevity of rally.l singapore, taiwan, and malaysia are coming online. we will see nice gains today. let's go to sophie for a look at how things are tracking. sophie: oil prices are continuing to plot on that p

this has offended china. it is india and the united states ganging up against china.ns are higher today than they were a couple of years ago. and your anxieties as well, about kashmir, why we should be more concerned, even more concerned now than we have been in the past? the united states and india, going up against china, china has forged closer and closer to pakistan. it is a counter ganging up against india, with china and pakistan. what has happened is that this economic corridor, as it is called, a massive highway through disputed territory, as mandated by the united nations. the entire area of kashmir is disputed, as far as the united nations is concerned. so, driving a highway, and economic corridor through territory which is disputed, is something which obviously india is not happy about. he has been mentioned already in the last couple of minutes, you can't avoid that, we must talk about the united states. you probably know that president trump is completing his first 100 days in office. jeffrey, you are not too long back from the us. i was very struck that

also i'm convinced we've got to push back on china's militaryism in the south china sea, the east china sea, and take a comprehensive approach to dealing with china. what they have successfully accomplished inside the country and outside the country is they want to have economic relationships but accept us politically in all the challenges we cause politically. that's what goes on inside the country and goes on outside country geopolitically, and we have got to push back on them comprehensively. lou: as we look at their economy slowing, their debt rising and production capacity obviously has been built up to a point that's unsustainable now with those economic challenges china becomes more likely to be destabilized or adventurous or both. general jack keane, as always, great to have you with us. >> good talking with you, lou. lou: we're coming right back. much more straight ahead. much, much more. stay with us. as north korea's threats against the united state escalate, the pentagon today carried out a successful interception of an icbm missile. >> the bottom line is it would be a catas

demand from china.ng part of this travel boom taper off a little bit as airlines have depleted existing air rights, the united states in particular. discussions are designed to enhance them to the administrator of the civil aviation administration said in on therview said sidelines of the belt and road form. they are looking to boost air links with countries that fall within that one belt and road. i will be watching some of these gas producers. they are likely to react to that exclusive conversation with the head of cnpc. we have had output with chinese in gg production -- energy production falling to have have the story with beijing wanting to impose a 6% on gas district or investment returns to conserve fuel consumption, getting that energy mix right to raise the share of natural gas to 10% from 6% last year. that is the hong kong listed trading up,fcnpc and the number of gas producers falling in the previous session on friday. we look at whether it is time for the united nations to change its approa

has been slowing in china.re is not as much our ring and rising debt, and there has been more and more restructuring. issuing, giving china a push, saying we are watching this problem, and maybe this is a warning to say, make sure you are addressing this. a small downgrade now, but something china has to address to stay on track for the future. haidi: right, let's move onto the previous story, which is top meeting of personalities in the central bank space in tokyo today. governor kuroda did not adjust the boj's goal to hit 2% within the time they wanted, but he talked about how hard it is to shift inflation expectations, as did ben bernanke. it is animal spirits, being able to shake this off after some years of deflationary expectation. was defendinge the bank of japan more or less. he said it is vital for the boj to pursue its target. higherve to get an inflation rate. he said restoring the 2% target would restore stability. is stillledge the boj some distance from achieving its price target. thatso acknowled

so in the way that china response expectations of the global community, we would also like to urge china to move that direction. >> and finally, prime minister, a new president has taken office in south korea just last week. he favors not only a more conciliatory relationship with north korea than his predecessor, but has taken a tougher line with japan over the issue of the comfort women. he said during the campaign he rejects the agreement you signed with president park a couple of years ago. i think you had a conversation with president moon last week and i'm sure this issue came up. are you prepared -- is japan prepared to do more on this issue given the importance to you and to korea and to the united states of a healthy, productive relationship between japan and south korea? is japan prepared to make more concessions and to acknowledge more responsibility for comfort women in the way that president moon would like? is that a basis for a deal you can get again? prime minister abe: the other day with the new president moon, we had a telephone conversation about we would like to furth

even if china had more pressure. once china stopped providing oil to north korea, however, that triggered a six-party talk. however, even though north korea did not receive oil from china, it's possible it could get oil from russia. about the me worry impact of the sanction to be imposed by china. o the question here is how the trump administration would deal with this. >> the missile to syria and in afghanistan, another bomb was used. d the korea was -- was deployed in japan. ven with that if they continue nuclear missile development, what would be the next step for the trump administration, if they try to be patient like the previous administration or if north korea does not respond, further steps will be taken by the trump administration, so their approach -- japan needs to pay a lot of attention to the next step of the trump administration. japan's alliance from bilateral to multilateral, that is for is h korea, the -- this very important. east asia defense minister's meeting is held regularly. this is important

/china relations.asing number of chinese firms are seeking to bolster manufacturing capabilities in the united states as president trump seeks to bring factory jobs back to american shores. eunice yoon has more. >> reporter: in the vision of the future, everything produced at this factory in china will be made in america. he found kier, but three years ago he started building a plant in south carolina an investment that will total 2$220 million. the u.s. has obvious advantages he says. there is a lot of concern in washington that the u.s. is not just competitive compared to countries like china, but more and more chinese businessmen believe the opposite. that the u.s. is gaining competitiveness in manufacturing and they're looking to invest. american john ling makes a living helping chinese companies find locations to buy in the u.s. >> chinese companies are going to the u.s. because they think by doing so they can lower their costs of production. in certain pockets of the u.s., the land will be much,

china is one example of that.a which has a lot of potential is also not growing at the clip it was a couple of quarters of ago. so be slowdown is there, but look at china, india, other markets, even the united states. percentage on top of a large number means a lot of growth is there. the key to look out for for apple will be can they keep growing but had more and more services. the other thing is that apple is managing to sell their phones at a more expensive price, and this is key. lateste this with the samsung galaxy, a more expensive phone than the year before, so we are not seeing prices come down. we are seeing them rise because they are putting more functionality, more hardware, better cameras in their, and guess what? consumers are willing to buy. rishaad: that is all good news, but ultimately when you do that, you continue to compress margins. their margins are incredible, but the good days cap lest forever, can they? >> it is all about the software, the services. hashardware of an iphone never been the b

end technology story in china. we are seeing there is a split in china's economy.ring sector is still under pressure, but it looks like still relatively resident at this moment. i think this is kind of a part of china's economy at this moment. if we do see another disappointment on these numbers again, we saw what happened the previous month and what seemed to spark this route and commodities. do you think there is still not much of an end in sight in terms of iron ore and copper prices? see that the commodity prices, especially copper and iron or prices, have peaked already. if you see that the commodity look at the overall china's investment momentum, it looks like the momentum has slowed and the new projects have dropped a lot from the big levels. don't think hand, i it is a bad thing, because we know that china's debt is at relatively high levels, so china needs to find a balance between all the indicators. investment should slowdown in the future and consumption should pick up a little bit. on the other hand, we do see that the impact of the physical stimulus

he is a great entrepreneur and he loves china.st way for jack ma to show is lots of this country is to make it easier for americans to their goods to china. this sneak a shot in manhattan is an example of just that. this sneak a shot in manhattan is an example ofjust that. stadium goods has a physical store but 90% of its business is done online. since august, they had been selling on alibaba august, they had been selling on aliba ba and it august, they had been selling on alibaba and it has been a big boost to their sneaker empire. we do over $100 million this year and it is about 20% of our business. they run about 20% of our business. they run a start—up which has refreshing. we can channel partnerships with other large marketplaces. we deal with... they treat us like we are trusted, you know, multibillion dollar company. the leader of china's biggest e—commerce retailer has big ambitions. he wants to bring 1 million american businesses to china and 2 billion customers in the next decade. they have been talking about making a b

the south china sea. meanwhile, with a rebalanced policy, too heavy on rhetoric and too light on action, years of senseless defense cuts and now the disastrous decision to withdraw from the trans-pacific partnership, u.s. policy has failed to adapt to the scale and velocity of china's challenge. that failure as called into question the credibility of america's security commitments in the region. this committee has grown increasingly concerned about the erosion of america's conventional military overmatch as states like china and north korea develop advanced capabilities to counter our ability to project military power. while america's military remains the most powerful on earth, we must adapt to the new realities we face. we must think differently about forward basing and posture, logistics and modernization and our joint force for the renewed reality of greater power competition. specifically on the issue of munitions, this committee has heard testimony each year about the qualitative and quantitative sh

tom: this is about china and xi jinping trying to recast globalization in china's image.se investment and infrastructure to link at this overland route and maritime route, linking asia to the middle east to europe, to africa , and they want to open up new markets. president xi jinping said this was a project of the century and would be a force for peace in a and theth many traumas difficulties, and he committed to an extra $70 billion of funding. china's development bank has allocated $240 billion, and it is thought china makes 10 $500 billion to this project. president xi jinping lang this out in front of many dignitaries, including president putin of russia, president erdogan of turkey, who sent the center of economic gravity is now moving east. this is also about china securing its energy supply because china is the number one importer of crude. it has become dependent on other countries for its energy needs, and it is on that note that we spoke to the chairman of china national petroleum corporation, the largest oil and gas producer and china, and we asked about the p

let's start by putting china in context. many say china wants to increase its power.onomy context for us. it is different than it even five years ago. is the greatest change that has happened over the past 20 years. in 1990, china produced 4% of the world's gdp. today, they produce 20%. it has become the major player. in the trade area, there is no country in the world for which china is not either the largest or second-largest trading partner. china is deeply integrated in the trading area. states, the year 2000, only 5% of u.s. exports went to china. today, close to a quarter. europe, same story. china is an integral part of the world's economic system. there was a time when people said china is a threat, and there were calls for protectionism and the like. more and more people recognize china is an opportunity. as such, one really needs to ask, how does one bring about a greater interaction and integration of china, not only in the trading system, but also in the international government system? in other words, china must play a larger role in running world affairs

come u.k., and china markets closed.hat ninth ofring the stigma still, but a lot happening on the data front. speakers. several fed atindeed, let's take a look market reaction. markets closed on friday and unchanged on friday, a lot of economic members straight ahead in the u.s., including housing, on friday. looking at the market so far, the only market open is new zealand, a touch lower here. to be starting things next given how thin trading is likely to be today, but heading lower when it comes to the nzx 50. let's head to australia real quick. we did see recovery after that group meeting. pretty soft open for the aussie dollar, but looking to the upside on the asx 200 today. japan, north korean concerns, , but someof risk off strength for the japanese yen, -- 11.22 ithave seen a pause when comes to this equities rally, but it seems no surprise six weeks where stocks have surged to records. the breather we did get on friday come in indeed. let's roll the boards and how markets closed to finish the day ahead of a long

protect the south china sea. the reclamation of the coral reef cannot be tolerated and that is the place where -- there may increase japanese safety and japan to collaborate with the rest of the world so that japan could convince china to follow the rules set by the international community. the difference between north korea and china is that china is able to consult diplomatically. in north korea, the policy cannot work, and therefore, the crisis facing us is north korea should be at the top of the list, the top of the ranking but currently, china using the lateral approach in trying to tame -- change the south china sea. japan and russia used to have very good relations. -- the ukraine is a distant place from japan, but we should not tolerate the coercive change therefore and together with the united states, japan carried out the sanctions and japan and russia, the relations have been somewhat strained, but if the change of status by force, i think that is a universal principle, so anything which is contrary to

perhaps we are starting to in china little bit, but i think generally the expectation is that china wille dormant until the national conference in the fall. greg: we think the fundamentals in em still look pretty attractive. when you look at valuations, though, we are not from a place where we feel like em with the place to be relative to the broader market. from a fundamental standpoint, we think em could continue to hold in for some time at least given what we are seeing. oksana: since i seem to be the contrarian here today, em is at its tightest five-year level right now. and about maybe 100 basis points wider than the all-time high. this is hardly a valuation. i am not saying there are no pockets in em that may look good becausfuamentals very, -- vary, but i think the exception would be the overwhelming so of euphoric inflows and i question how much do the investors understand what they are buying and ultimately when we buy, we buy china. jonathan: china has not rolled over em. why? oksana: it is going to take some time. jonathan: greg, help me out here, why? greg: athe end of the da

air china and china southern proposes to consolidate their free units into a new company.atch the open after the bank reported a fifth consecutive year of rising profits. to 1.6ome rose 7.5% billion dollars, beating estimates compiled by bloomberg. earnings from trading bonds in the first quarter helped boost they predicted similar results this fiscal year. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am courtney collins, this is bloomberg. thank you. we are looking at financial leads, the bidding race for moneygram. is a worried u.s. regulators will intervene? ask why bonds are at a turning point. this is bloomberg. ♪ yvonne: this is daybreak asia, i am yvonne man in hong kong. betty: i am betty liu in new york. equities slide after strength magnified losses in the selloff of european bonds. we have the head of americas fixed income strategy. say the bond markets are at a turning point. what do you mean by that? >> we are at a confluence of forces happening at the same time. on thed was mildly hawkish side. t

china needs to do this.it can be business for chinese companies, it becomes a classic fiscal stimulus by increasing spending. the negative side is that china is getting too total debt levels approaching 300% of gdp. it is close to the limit. keeping the economy going by increasing debt levels is not going to be viable for much longer. hard to see why china would do this politically. some are calling it china's marshall plan. economically, it is interesting to consider why they would want to do it. this chart shows the existing focusedrelationship is on the united states, japan, and other countries, some of whom are on this trade route. are smaller relationships, and they want to expand the countries they trade with to firm up that export base. and japan first first. they need to diversify in order to keep the trade going. i think that china also sees an to step into the leadership role of trade. this is a major opportunity for china to forge partnerships with a lot of these smaller trading partners. anna: it

more likely to be aligned with china or wanting to improve relations with china, if china is even doing it to a progressive administration, i think the problems will continue. -- song: [translated] to theto his statement, beijing economic depression that they are carrying out against it hurts not only the koreans, but the people in china. why does china keep on doing this damage? us.a wants something from by pressuring south korea, china wants to see a change not just in korea, but in the u.s. and japan, as well as north korea. actions, they want the parties to come together. all the interested parties to come together and discuss resolution. because we have decided not to discuss that or come to a , china is frustrated. in that regard, i actually blame park geun-hye. refused to talk to china about these issues, including security issues. it's important that whenever we take measures, that we don't do it on our own, but as a result of having discussed these measures with others. i think that south korea needs to improve its relationship with china and having a new president provides an

here's the china consumption in 2006 and here is the tip point at the end of 2011 where china consumptions is the real question, windows chinese consumption -- when does chinese consumption bring us back? >> we're at a cyclical event in china, cycle around a very high trend line. tom: agreed. >> i think the chinese consumer is getting a break right now on food prices and they're going out to spend it. that is being a catalyst. we're seeing that in the retail sales numbers over the last few weeks. i know we are getting a new retail sales number out today. we're hoping to see acceleration back toward the 9% or 10% figure. the would be a catalyst for economy to resume its long-term trend growth. francine: i spoke to you a little earlier -- i spoke earlier about the china investment plan. >> no question u.s. will be impacted and i believe the u.s. will have to join this effort and join the one belt, one road program. there is a lot of benefit to be achieved by the u.s. companies in this program. i think the chinese are going to be very careful not to favor chinese companies unduly. it is goin