this fits in their strategy in asia, in china particular, because a lot of chinese companies are looking to expand out of china. emily: so amazon also does not have a great chinese strategy. >> the markets they are focusing on, indonesia, looking at other countries in southeast asia, clearly india is a big focus. google has talked a lot about their efforts and we have seen them chip away at returning to mainland china and they recently had a partnership with tencent, and now with jd. emily: what is your take on this, isaac? isi think the move important, mostly on symbolic levels. roughly less than 1% of the company's worth. but really what it is is google trying to say to beijing, listen, we want to come back into china, we want to do business with chinese companies. and so they picked relatively a nonsensitive company to do it with, e-commerce is less of an information business, than search engine, which has caused google problems in china in the first place. emily: i was in beijing when google left the country and there has been no sign of a potential return, so could this be more abou

china china it come comes on board and i lies he's young china chinese or. clive mightt be changing under u under mr trump has . a a single andnd this is goe rest wt provide that i bring my knees a ice has nt moren missile warnin. than where the forty four year long lines. it as that and then was led by one call kind man. dina rather. worries or real recession as mentors. australian one minister lee measures as hazardous saudi changing fresh restaurant hostess in a city statements and that. should be. conducted others there's was business onsite solutions free free political at a crossroads rubber governmen. changing its its willingly or more and government and companies recognize as one china policy. which was just in to add all elementary services businessn. ani decided i change. and a little the one china principle this is our favorite require. that jane changing so sorry mark does doesn't. hydrogen is west including. tom plans and and and about a ayoo'=c8q?o?oñÑgccgcggc 06/05/18 06/05/18 [captioning made possible by democracy now!] amy: from pacifica

you mentioned china. chinese data this week wasn't that is it going to stay that way?ns the other way, is the feedback loop going to come back to the u.s.? for: it is not sustainable the u.s. economy to be so strong. to go back to the start of the program, for the rest of the world to be weakening. either the u.s. is going to weaken, and there doesn't seem to be any sign of that, or the rest of the world is going to pick up. it is hard to say, but our bias is that after euphoria in europe and now depression in europe, we'll see some kind of rebound in particular. turning to china, this week's , butwas on the weak side the week before, we had good import numbers. china,e's a problem in -- is relatively stable. issues,ere are some started fundamentally by the 3% 10 year yield and attraction of capital, and some idiosyncratic issues within certain countries, but generally, and a risk off environment in em, you want to look to put money in and not take it out. jonathan: i want to get to the leverage story in a moment. colin robertson alongside andrea di censo and alan higg

she started having china chinese products the changing instantly in the mount mounted thought dial male. from long long china doesn't doesn't trade war yet again on a moderate rate of a trade war. content we have a very what you ever turn to reason and sent off to our so southern others this is the only way. fool that was that. the trade treaties began ganzack jan januaryry with u if you like hard hard so that it. was washing machine that a non monetary hearts deliver nine young in the movies talk on others as well china i never thought it'd. eight world last night i dated at the june the u. s. usa says twenty five five and fifty dollars lunch isolating them for that changing global interconnected tap tap bon bon. now now try to act mall a situation and then and then it stake basically stabilize tracked down. some economists if the isolating right right american female humans and their company. relying chinese products. the best around intensive process the indian and ended on july july they think. we don't have about a number of what. as much as some. just click microstructural reports

perspective precisely because these two french gentleman have been arguing against each other china chinese leaders nothing they only take germany seriously europe hate to see this. germany has a strong interest very strong in the west say to gain you to drag you through history you do a lot of. set we should come back to a leadership role in europe. russia back in a western orientation we have no interest at all said russia is moving east this is not in our interest but you has it's not have not shows that yes you have to choose . we had to make absolute matters o.c.d. like nation ukraine that life is not black and white i believe we'll i think there's a man in the white house yes well yes but for. charlie but i believe said we have to make sure said we are doing a lot of efforts as europeans is specially scenes sees united states irrelevant said we are doing everything to bring suspensions down and show you know is my opinion about it because to arizona i think the litmus test is going to be your energy policy vs you know what europe's energy is how she's been made in washington d.c. righ

chinese environment are activen the country. american ngos and european in just the way involved in china and in private were funding 90% of chinese society with regard to the environment, we played an enormous role in terms of capacity development in china. that's another element they seem to have forgotten. third, chinese history isn't over. xi jinping is in power now and he has put in place his own model and own approach to governance but the will be another chinese leader and it's not necessarily the case that the will not be political reform and opening up in china's future. >> someday write a book called the fourth revolution? >> i'll try to be more creative than that. >> okay. as you can see with one of this countries real authorities on china come so let's take advantage of the opportunity. first question comes from one of this countries other real authorities on china, professor? with microphones, just quickly wait for. let us wr and make liz feel uncomfortable. [laughing] >> this is a terrific conversation, and i just want to supplement it, as the chinese would say, with 1. one of the signature policies of xi jinping as

first returning your company take take to set us on the trade treaty united not a state china chinese as nick rushworth explains. a profit off in the morning one of the world's leading luxury shahnameh. . nine nie la. seemingly investment to is on this is the plans and things you've meetings in with what know you night a state china china. from the solicitors i lined up to ten twenty five as time chinana. into t ts estimateted could be around around. hundred hundred time time. its feelinings what is going to come. to you as it does on on on from out of town is it just yet. china china's gluon times they say is a including within the changing. but it's in the downtown june execs they could a come with some of those first advancement from camp countermeasures. undoubtedly the plane may make going one of in the middle six executable to entrance twenty within with it hand to hand and china china one andnd o one more. thing is. that. i'd like i'd like. after brexit on the same things and held in place in its class was wisconsin's to enact anti lock locals bloody bodies will make a major is

you mentioned china. chinesethis week wasn't great, and it seems to me it is by america and get concerned about everything else. does that stay that way? if it turns the other way, is the feedback loop going to come back to the u.s.? alan: it is not sustainable for the u.s. economy to be so strong. going back to the start of the program, for the u.s. economy to be strong and the rest of the world weakening. either the u.s. is going to weaken, and there doesn't seem to be many signs of that, or the rest of the world is going to pick up. it is hard to say, but our bias is that after euphoria in europe and now depression in europe, we'll see some kind of rebound in europe in particular. turning to china, this week's data was on the weak side, but going back the week before, we had really good export and import numbers from china. if there is a problem in china, they are the canary in the coal mine, and it is relatively stable. look, there are some issues, started fundamentally by the 3% 10 year yield and attraction

china. for german clubs the message seems clear and a club that doesn't serve the chinese market won't be able to hold their own internationally. not so. we're reaching the limits of growth in areas like sponsoring hospitality old merchandise. in china sponsoring on merchandising has real growth potential as does promoting youth divisions you know ok i. choke ascends for a license coaches to question every month the city wants to take part in the chinese president stream of football glory eighty youngsters have been selected to get state of the art training four times a week a side benefit the shock of brand is becoming better and. on. the coaches aren't quite as focused on marketing. isn't just in spite of his sport we're footballers we're athletes and the field is where it counts that's all that takes first place especially when you're dealing with kids. and everything else like recognition or promoting the show like a brand that can happen on the side. it's it's. parents seem to welcome shaka football is healthy and maybe there's even money to be made with it. now they're here cheering on t

the china ice desk chinese economy is still quite lying on smes. the third adam also ntne that the made in china 2025 program sort of makes it easy for some politicians in the u.s.. personally i think that this made in china 2025 initiative is just a very vague objective china is trying to achieve and i do not think we should read too much into it. it is a document issued and mainly prepared by one single ministry you can also see the state council endorse this initiative of course the trade friction between the two countries should be understood. in tdecontext for the u.s. national security strategy making china a strategic competitor and several u.s. documents also made the same definition for china in contrast to the previous definition of china to the u.s. of course, the u.s. has its own issues. the u.s. will have a midterm election coming soon so politicians need to do something in order to win the election. wiinistration there are personnel changes. you know that better than i do. it turns out that the hardliners are now taking more important

his visit in germany there was a match between a team and the chinese are used to this really is a big football fan. even looking toward china stadium in germany it's the only german club that shows perimeter advertising intended for chinese viewers. so it's you. paid off pretty quickly. the first year we had an approach the concept foreign partners and all that. but then thankfully it started paying for itself and to what's it going to get. in the football partnership between germany and china billions of euros are at stake and so is politics. but what about football will steffen lot of men and other professional german footballers succeed in helping china one day when the world cup. is just this too that's all and maybe one day my great grandsons great graham some will say what your great great great great grandfather kicked off it would take a while i think. it wouldn't be the first time china has pulled off the seemingly impossible. but. the fast pace of life in the digital shift has the lowdown on the way showing new developments and providing useful information the wittiest finds and interviews with the makers and user

donald trump's starting point is that he has a big trade deficit with the chinese -- between u.s. and china and that's a bad thing he wants to fix that and he wants the chinese to open up and buy more from america. if you are spending more than you are producing, that means you will have a trade deficit. if you are spending less than you're producing, that means you spend money and run a surplus. so america is spending more than producing. why are you able to do that? because you're the most powerful country in the world and everybody wants to hold u.s. dollars. so it gives you a privilege as somebody called it. why is america running an overall imbalance, and it's not mainly because of trade restrictio restrictions. that's one problem. but there's another layer to this, which is that china entered the wto in 2001, it was negotiated in the years before that, at a time when it was 4% plus of the world's gdp. today it's 15% of the world's gdp. so what was agreed then with a quite small player is now, in effect, with a very big player, and what was politically available then may n be political

china means cheap and fast. if you want quality, you go somewhere else. chineseseem to be copies of what is already on the market. now china wa nts to already on the market. now china wants to change that. and so it has come up with a plan. made in china 2025. it is a plan that the chinese government came up 2025. it is a plan that the chinese government came up with in 2015. it is essentially a roadmap for china to use it in a strength, making things, to help china become great and the future. to achieve that, china needs to up read what it manufactures. the year 2025 is just the first step to it by 2025, china wa nts to the first step to it by 2025, china wants to raise the quality of everything it manufactures. it wants to integrate digital technologies into industrial processes, leading to the creation of global brands you andi to the creation of global brands you and i would purchase, but from china. by 2035 they want chinese companies to be ahead of everyone else which means read through the major industries and leading innovation in the strongest sectors d

european or us companies investing in china and certain areas and all the way and that seems to be the discussion in the us right now that you are constraining chinese students to study in certain areas in the u.s. as well as constraining u.s. citizens working in china i mean it gets rid of person the end and the loser will be definitely on both sides so whatever is going on right now you touched upon this earlier how exactly is this going to affect us how will this mass impact and average. i think a joe sixpack in the u.s. will possibly pay more for a couple of items the chinese have been targeting areas where basically it's hurts the farmers so you have beans one of those the chinese have been identifying in the swing states of the republicans on don't trans backyard where the most the germans and the europeans have done the same thing so you can actually expect joe sixpack in particular those swing states to take a hit i don't know how the president is going to sell this us an advantage and then of course the comment you factor is will have to pay more for steel that makes their cars less competitive on global markets and in europe as well i mean

china. a chinese delegation came back here. navarro was largely left out of the talks. wilbur ross went over to china to secure deals. that is what navarro cited as no proggas. whether he was asked if there were future talks down the line, our phone is always open, but he added, neil, talk is cheap. neil. neil: indeed it is, and it is inconsistent. thank you very much, my friend. there is danger interpreting market moves by the minute. nothing substantially changed here. you might get a sense from peter navarro, conservative, some say the spartan trade warmonger in the white house, that is up to interpretation that he is sounding conciliatory in those remarks. he is just saying they will maintain their resolve. so far no one is budging on the other side, china. all are prepared, response tit-for-tat. the administration as you know is already lined up about $200 billion in additional tariffs on additional chinese goods if the chinese do that. there is no indication that the chinese are not. we're monitoring this very closely with the dow down close to 300 points. nicole p

couldnaling -- it could give china the appearance that a chinese currency is in response to have some that my positive effects. the harder question is how do you keep it controlled? china historically has not want it uncontrolled. risk that the a outflows would become too big and that would test china's tightened capital controls. china has probably -- probably has a little bit of latitude. i think china could manage, but there is clearly a risk. you think they could go back, but maybe in a smarter way. >> i think there is a couple of questions. weakening.a's the volatility is the desired outcome. i think there are a couple of important differences in china's position now than its position back in 2015. is it led to a big run-up. it has not come back with the same strength. the second is that china tightened its controls. there is arguably less scope for money out of china than now and the third is a little bit more broadlye and china has transitions against the dollar. that does not mean you can devalue, so i don't think that is decisive, but i think there are differences that m

chinese investment b. does it really need china i mean we're talking about silicon valley here. well chinese investment in the last year into the u.s. in the tech sector has gone down and the concerns that president trump has been expressing about these the so-called industrially significant technology is not only economic it's political so it's about the place of the u.s. in the world again because it's quite so significant because china is getting ahead now is it getting ahead of a lot of countries as far as tech goes as far as ai goes are many of those high tech sectors you know could this also backfire because it doesn't want the us at some stage need china is a good partner. so i would i would break this issue down into two parts so one is the tariff issue and that's hugely problematic and that is and slapping on of tariffs on the e.u. china etc is not going to put america first that's one issue but there is a very important second issue which is china is getting very far ahead in this important very. significant area high tech right so that some of the things you mention. r

firms likely sold more things to china than chinese firms to the u.s., in more recent years. l in china that? that should be what we are looking at, and vice versa? datai: up we aggregate the together it is about $400 billion, $400 billion worth of products. looke net balance, if you at it that way, it is actually very small. the latest data from the u.s. government, from the bureau of economic analysis shows that china runs a small surplus in 2015 of about $20 billion. that surplus is shrinking as well. if you look at the trade site, china renick huge surplus. best china ran up a huge surplus. i think the bilateral trade element is very misleading. thei: talking about de-leveraging side, the negative side effects we are bracing for was maybe a flurry of defaults. a litmus test of whether the government's and policymakers are willing to allow the market forces to take place, and let the chips fall where they may. . we had a story out of bloomberg today looking at the defaults by 12 bond issuers in 2018 through to june 4 of this year. the likes of j.p. morgan and fidelity warni

china, i provided some estimates. that 25% tariff on $50 billion u.s. dollar chinese goods do not seem to have a very big impact, estimated at .1% of gdp. but if trade friction escalates so that china's export growth decelerates sharply, say by $100 billion u.s. dollars, then it could have a much more significant impact on the chinese economy. the estimate is eight percentage points. so china could still grow, you know, 5 to 6%. but i tend to be looking forward to a better scenario in which those countries will not impose sanctions against each other, and china would further expand its demand by importing more products from the u.s. and at the same time, by opening up its service sector to the u.s. so in this scenario, the impact will be very small, or even nil. the question is, does china have the capacity to increase imports from the u.s.? my answer is yes. if you look at the consumption of china's gdp, it's probably the lowest among the major economies in the world. at only 39% household consumption in relation to gdp. this is much lower than the 69% in the u.s. ev

china markets. we also have a guest from j.p. morgan, he looks the chinesethat they only account for 3% of china's gdp last year. we should just hold on, just chill, you know? [laughter] yvonne: that is exactly what the pboc governess had, right? rishaad: yes, and we are joined brisco laterayden burres situation.ut the we will also look at some of the ratings for these countries in this part of the world as the trade frictions and the trade war depends. what does that mean, we will be joined by our guest on that as well. ramy: thank you so much, .ishaad: because it that the nikkei is because it that the nikkei is down by about .10%, but the kospi is looking positive. that is the latest from "daybreak: asia." this is bloomberg. ♪ theaad: this man in spotlight. china's stocks in the spotlight. saying thevernor bank stands ready if things get worse. shun it could squeeze u.s. companies, and that goes beyond tariffs. noble group reaching agreement with goldilocks. in hong kong, i am rishaad salamat haidi: also --i am rishaad salamat. a big day for central banks,

china. host: if you could help unpack this. a politico review of startups by chinese investors found that only 5% had received government contrast, loans, or grants from a few thousand dollars to several million dollars. often, the contract only entailed research, space technology for nasa. others ordered lab equipment for the commerce department or machine tools for the military. startupsse tech needing u.s. government support. ry: those were one of the seeds of this project. potentially the u.s. government was giving out contracts to technology combinations that had chinese money behind them. everyone told us that would raise significant concerns. as you can tell from that passage, we did not necessarily thata smoking gun of nature. but we did find there were companies that had had u.s. government contracts, even if it was not necessarily at the time that they were receiving money from chinese investors. but it does raise the specter that there is some cross-pollination here. through talking to cyber security experts, it is certainly something the chinese government

is going hard with china on trade why it wants to slap these tariffs on chinese products so there's been no indication from u.s. officials that it was going to be a little bit softer on china just because just because the talks have been successful between u.s. and north korea ok lawrence and many thanks for that from beijing. on those singapore talks the u.s. actions say it says sanctions against north korea will not be lifted until it has completely denuclearize pompei was on diplomatic told briefing north korea's neighbors on the summit between donald trump and kim jong il but on those comments appear to contradict north korea's view that the process would be phased in and reciprocal. the brain rallies across the u.s. against the time the ministrations separation of migrant children from their families seeking asylum in the united states thousands of children have been forcibly removed from their parents and placed in detention facilities a laborde with mexico many families say they were told that children were being taken to be washed and interviewed but did not know that they would

companies investing in china and certain areas and all the way and that seems to be the discussion in the u.s. right now that you are constraining chinese students to study in certain areas in the u.s. as well as constraining u.s. citizens working in china i mean it gets really person the end and the loser will be definitely on both sides so whatever is going on right now you touched upon this earlier how exactly is this all going to affect us how will this mass impact and average. i think a joe sixpack in the u.s. will possibly pay more for a couple of items the chinese have been targeting areas where basically it's hurts the farmers so you have beans one of those the chinese have been identifying in the swing states of the republicans on dawn trans backyard where the most the germans and the europeans have done the same thing so you can actually expect joe sixpack in particular those swing states to take a hit i don't know how the president is going to sell this us an advantage and then of course the comment you factor is will have to pay more for steel that makes their cars less competitive on global markets and in europe as well i m

china. facebook has not been able to get there and i think in part because -- the chinese government is getting very, very tougher about the internet, but social media, there's a reason that the principal social media platforms in china or chinese. now, some of it has to do -- the chinese will tell you that alibi back -- ali baba or we chat understand the chinese market better and that's why americans have not been able to do very well. this suspect if you are we chat, you understand that you're a chinese company and therefore there's no question but that you'll be playing by chinese rules, and so i think social media companies have actually in some ways dodged a bullet and might have looked good to go into cline a number of years but but chinese is turn interesting a very different place than it was few years ago, and just on xi jinping and talking about political risk. china is -- it's interesting. one problem with authoritarianism is that there's no peaceful way to change power, and people tend to stay too long. those their problems. you get presidents for life. the chinese communist party h

china. the 200 billion chinese goods after china retaliated to the potential total of u.s. tariffs to $450 billion. >> peter navarro told in a row lou dobbs china is making a big mistake. president trump surprise china on monday when he announced the threat of new tariffs. a programming note for you. peter navarra will be a guest on "mornings with maria" at 7:00 a.m. this morning eastern time. trying to all right, a lot of breaking news to get to on "fbn:am." president trump in the fight on immigration and of course the fight with china and of course we are talking about the markets. latina features. better story today in the european market. gerri: the european market moving higher overnight trip to ftse up 85 points. a better open for the market today in the entire world doing better. glad to see that after yesterday morning. cheryl: good morning, everybody. welcome to "fbn:am." always a pleasure to have you join us at 5:00 a.m. eastern time. 5:01 a.m. eastern time. here in new york elitist. gerri: i and gerri willis sitting in here today and we are glad to see a stronger

leader of north korea's in china again kim jong un met the chinese president xi jinping the state t.v. says he's on a two day visit it's kim's the trip to china this year since march beijing is north korea's largest and closest ally in the world. and is reeling the j.p. has pulled out of the coalition governing indian administered kashmir promise and iran promote his hindu nationalist party and into an alliance with regional policy p.d.p. often inconclusive election in twenty fourteen the chief of p.d.p. has resigned following the announcement the whole journey is a seeing a journalist in utah and he says the alliances they shaky from the start the attack on a journalist should not go very on the last day of the penalty midday of rum zug a just a day before the festivities were to be good i think that. the death nail on this alliance as well as all of these tough policy sent to do delhi had toyed around with. the rally this aligns never would though the two had an agenda of alliance where they had signed off on a document which suggested that they would take initiatives to it's buildi

the chinese export more than 3 times as much to united states, as we export to china. mr. trump making it clear that chinese can squawk as loud low aloudly asthey want. only acceptable result will be a deficit in trade. >> china has been taking out $500 billion a year, out our country, and rebuilding china, we have to to something. we will make it fair, our friends and our enemies, i have to say, in many cases our friends on trade have treated us worse than our enemies. lou: joining us tonight one of president's warriors for fair trade, peter navarro. good to have you with us. have the chinese under estimated president's resolve to move forward with tariffs? in particular treader to trade y trade with united states. >> they have, this man as the courage and the vision, this president promised back to june of 2016 he would use section 301 to crackdown on china's unfair trade practice, he is doing, that no one should be surprised. the problem is that china targeted crown jewels of american technology, they use 4 attack vectors to go after it, they steal it they force transfer

china. we sent over earns the u.s. did, 130 billion worth of product the. navarro says the argument there is ceiling the chinesean hit us with. here is statement on a conference call today. quote, what the president did yesterday announcing additional $200 billion it is clear china does have much more to loose. what we have at stake is $130 billion going to china. what they have at stake is over $500 billion coming to us. speaking to the national federation of independent businesses here in washington, d.c. just a little while ago, president trump said now is the time to take on the trade deficit with the chinese. >> i always say we have rebuilt china. they have taken so much. it's time, folks, i'm's time. so we're going to get smart and we're going to do it right. we're actually getting a lot of support but we have to do something about it. reporter: a spokesperson for the commerce ministry in china was asked about the newest 200 billion-dollar threat coming out of this white house, and whether or not indeed we have in a quote, trade war. this was their take, quote, as we said before china does not want a trad

and i think for the chinese leadership, the goal would be for china to surpass japan in that regard as well. so those would be the sort of the four criteria by which a chinese leader, oh, and i'm forgetting a very important one, which i will get to in just a second. those would be the four cteria by which a chinese leader could say, see, we are now back to where we belong, if they satisfied those four criteria. but there's a fifth one i mentioned in my remarks, and that is the complete recovery of all lost national territories and i'm looking at you, taiwan. and i think as long as -- you know, multiple chinese leaders over the years have this. as long as taiwan remains politically separate from the mainland, the mission of restoring china to its rightful place in the world will remain incomplete. >> thank you. so, nate, just to shift gears a little bit to north korea, because we haven't greafed thad that quite as much. so many people view the intdo pay comas a sea and an air type of theater. i think your study really transcends just a groundorces perspective, and i think it's applicabl

they tear in chinese between 1200 b.c. and or hundred 80. chinaees america as the world hegemon and the using propaganda to convince the rest of the world that america is today's aggressor. confucius once said there cannot be two emperors. we clearly see what their vision is for the world. to deal with this threat, we've got to take care of what god has given us. the united states. america is still the largest in the world. we still have the strongest world in military history. though the innovative engine of humankind history. erica is still the model of freedom around the world. today, president donald jay trump, thanks to you, is in the white house and not hillary rodham clinton. [cheers and applause] i thank god for a lot of things a lot of things, but i think god everyday for that. president trump is re-engaging with the rest of the world and reassuring our allies and reasserting american leadership and priorities. dant be the hegemon, but we stand for freedom. so many people around the world as matt that depend on us for encouragement, for s

china. yesterday he warned that washington would impose a 10% tariff on $200 billion of chinese goods. s government denounced the threat as blackmail and said there would be a strong response. last week, mr. trump ordered tariffs on $50 billion in chinese goods. china then said it would raise tariffs on $50 billion in american goods. >>> president trump's trade threats caused asian markets to tumble this morning. they also kept u.s. markets on edge yesterday. gains in energy shares helped curb the worst of the decline. the dow lost 103 points. the s&p 500 shed almost six. the nasdaq edged up slightly. >>> the chief executive of volkswagen's audi division is under arrest in germany. rupert stadler was detained yesterday as part of an investigation into the alleged manipulation of emissions controls. authorities are looking into whether cars sold in europe were equipped with software that turned emissions controls on during lab testing and off during regular driving. volkswagen has admitted to cheating on u.s. emissions tests. >>> meantime, u.s. online survey company survey monkey says it

the chinese history between 400 bc and 408d. chinaees them as the world hegemon and use propaganda to convince the rest of the world that america is today's aggressor. confucius once said that cannot be two sons in the sky. nor to emperors on the earth. we've clearly see what their vision is for the world. to deal with this right we've got to take care of what god has given us here in the united states and america is still the longeslargest economy in the wo. we have the starkest military in world history in america is still the innovating engine of humankind history in america is still the freedom around the world. president tom, thanks to you, is in the white house and not hillary clinton. [cheering and applause] i thank god for a lot of things but i think ever thank god everr that. president trump engages the world and reassuring our allies and reassuring and reasserting american leadership and priorities. we don't want to be the hegemon but we stand for freedom and there are some of the people around the world that i met in the la

a war of words has broken out between america and china after the us accused the chinese of expanding intimidate its neighbours. china said the comments — by us defence secretary james mattis — were irresponsible and not worthy of rebuke. mr mattis was speaking at a security summit in singapore. from there karishma vaswani has sent this report. the us is here to stay in asia. that is the message us defence secretary james mattis had for his asian counterparts in singapore today. but he also warned of china's increasing influence. and whenever the two sides are in the same room, they usually argue about the same thing. china's power in the region and the impact on its neighbours. china's militarisation of artificial features in the south china sea includes the deployment of anti—ship missiles, surface—to—air missiles, electronic jammers and, more recently, the landing of bomber aircraft at woody island. despite china's claims to the contrary, the placement of these weapons systems is tied directly to military use for the purposes of intimidation and coercion. china says it owns all of

china. since june 18, the chinese equities underperformed other parts of the msci emerging markets index spacecould say china is in some white playing catch-up -- some way playing catch-up. is that the argument here? is there something to be confirmed -- concerned about? meenal: data has been softer in china. we have the pmi's next week, which are going to be important, seeing if this is a shorter-term impact. that has been a contributor for why you have seen selloff in chinese currency. there is a lot of talk in the markets now about whether the currency will be used as a policy tool in debates around trade. we do not think that is the case at this point. that does not mean the market will not continue to price that in. ultimately, the base case remains the same. we see easing from the pboc over the last few weeks, the reduction. it is natural you see the currency depreciate. we do not think it is changing the fundamental story. the pmi's next week are a very important indicator. anna: can i ask you about commodities? copper on correction, and this applies to other metals as well. chart that

chinese. the foreign ministry just a couple moments ago said that china would respond instantly to defend its terests one source who i spoke to who spoke recently, in fact yesterday with the chinese commerce ministry said those -- that the ministry plans to retaliate quickly, and that the specifics of their actions could be announced as early as tonight your time. the chinese said they plan to match the tariffs product for product on the same amount of goods. also that the tariffs will likely cover soybeans, and that the deal negotiated in washington will be off the table. so the multibillion dollar offers for purchases of l & g or farm goods will not be available any longer to the united states. the reports also hit the shares in hong kong of the telecoms company zte. investors were afraid that the rescue deal is now off and all of this is creating a lot of uncertainty, brian, including some other reports that the qualcomm/nxp deal is now still not approved by chinese regulators, and it's all going to be unwelcomed uncertainty today for president trump xi, because president xi is celebrating