the issue with china—us trade, that could impact apple? in china.ade, that could impact apple7m could, that's the cloud on the horizon for them. at the moment apple and its peers aren't being attacked in the trade war, they're almost getting a bye—bye as that escalates and so long as that continues, you're going to be reasonably happy with apple but that's a threat because the market, as you said earlier, is huge for them there. -- bye. we will have to leave it there and thanks for coming in to give us an analysis on apple and their results. we will tell you how they did for those three months up until september. the pound has strengthened after reports the british prime minister theresa may has struck a tentative deal with the european union on financial services after brexit. the agreement would give uk companies continued access to european markets and allow the continued exchange of data. let's go to our asia business hub, where shara njit leyl is following the story. the pound always sensitive to any brexit news but todayjumping quite a bit? ab

his comments come two days before the us president and china's xi jinping are set to meet at the 620 gentina. 6eoffrey 6arrett from the university of pennsylvania and told me why the us is going into this meeting with such a strong hand. there are two reasons the us is in a relatively strong bargaining position. the first one is that the chinese domestic economy is that the chinese domestic economy is experiencing real wobbles, where as the uf economy looks like it is going from strength to strength. the second one is the asymmetric dependence in the relationship, simply put, china needs the us economy more than america needs the chinese economy. that does get president trump the bargaining upper hand. you are saying that investment, rather than trade, hand. you are saying that investment, ratherthan trade, is hand. you are saying that investment, rather than trade, is a good way of fixing this. we know that there are issues around investment, particularly chinese investment, particularly chinese investment into the us national security and other concerns, how can this be an easy fit?

he made the us — china trade war. he made the comments in shanghai. pledge to create more than a million jobs in the us because of the tradable launched by president trump. trade war is the most stupid thing in this world. trade is to have peace, to communicate. there would be no trade deficit issue in the next two years because of technology. that is what he thinks about the tradable. let's look at the trade markets. they are high. most investors taking her wait and see attitude towards the us midterms. awaiting the results. we also saw resources stocks doing well with oil prices rising after sanctions reinstated against iran and stop after the fourth fatal stabbing in london in less than a week the city's mayor has warned in less than a week the city's mayor has warned it could take a decade to bring knife crime under control. in the past week two men and and two teenage boys have been stabbed to death. the rise in violent crime has provoked a new debate about cuts in police numbers in england and wales. here's our home editor mark easton hundreds o

mike pence criticised china's belt and road initiative and said that the us would help redevelop and l base in papua new guinea as well is spending $1 billion for electricity infrastructure across the country. china is also investing heavily in png to win its hearts and minds. from poor moresby our reporter. a grand welcome for a new friend. papua new guinea rolled out the red carpet for chain's president xi jinping, in town for apec and a state meeting. thousands of people have give that gathered here just to catch a glimpse of the president. this boulevard was paid for by beijing and it is the same thing across the country. 90% of the roads here are built in some way or another with help from china. this is infrastructure that papua new guinea really needs. china has not been shy about showing off where it spends its money. roads, highways, convention centres all bankrolled by beijing. but the way it does business here with little transparency has raised anti— chinese sentiment. but there are locals here to see china as a friend. this woman is the ambassador for the china papua new

china retaliates, but also on the side of exports. going forward, how can we predict how these economies will be in fact it, the us, also china. head of the federal reserve, jerome powell, was talking yesterday in new york and he was scaling back perhaps the thinking of interest rate rises in the us next year, which would imply the thinking is changing about the economic outlook for the us. it's extremely difficult to predict a. what we're seeing our already is radical uncertainty in its purist form. the trade war is creating the sense of it being hard to see what's next. what is clear, given the structure of the global business system and given how intertwined to be american and chinese economy are, it would affect them both deeply —— the american. it's notjust about trade but about finding a new global governance structure of this arrangement. isabella weber, thank you for giving us your analysis. we will keep you across the g20 summit. let's stay with argentina, because the host of this weekend's g20 summit has been battling a deep economic crisis. it's hoping rising global demand for its agricultural products could be the k

china's biggest tech firm is due to reveal its financial results — how much is a trade war with the usurting alibaba? live from london, that's our top story on friday 2nd november. china's alibaba — with a market value of approaching $400 billion — posts results later — we ask how exposed it is to trade tensions with the us. we'll also look at the likelihood of a trade deal between the us and china — after reports president trump is drafting a pact for the two nations. the european markets have opened in positive territory. and we'll be getting the inside track on those reports about a financial services deal between the eu and uk — how much substance is behind them? our business editor simonjack will be here. as british spy agency gchq opens its own instagram account, we want to know, what advice you would give it on creating the perfect post? let us know — just use the hashtag #bbcbizlive hello and welcome to business live. delaet us know your instagram secrets. for now... we start with alibaba — it's china's answer to amazon and ebay. and since it floated in new york four years ago

opportunity of grabbing them away from taiwan and we also worry about china us actions against how once participation in the international one of the nations you know we continue to try to push through our. or membership in the some major international organizations and china is making it very difficult for us but my job is to tell the international community that the rights of the twenty three million people here in taiwan deserve to be recognized by the international community if a small country can be repressed and it isn't war tilse organization the hills right of the town and see people should be recognized by the international community as well you know if a small countries can be represented in even international civil war if you're going to zation the rights of the taiwanese people should be recognized as well if a cross country crime is very important to every country i want should not be left out to the interpol and therefore this is something that we continue to advocate and that war motivate myself to educate to the international community and you'll keep up your efforts to

economy is growing really strongly, but that being said china has a lot more tools to use it do to say, we are not doing this any more, we are respecting this? firstly, they have to admit there is a problem. the chinese government is insistent that chinese are not stealing ip from western companies, so they would have to admit it, the beginning, but then they would have to show they are cracking down on it. now let's talk about the women who are going to be in the us congress for the very first time, two muslim women. congratulations to them, and also we have the new york democrat, the 29—year—old. them, and also we have the new york democrat, the 29-year-old. two 29—year—olds! democrat, the 29-year-old. two 29-year-olds! whiten it, quite a result for women. give your take on that. -- quite a night, quite a result. a really high turnout for female voters. i think it is positive no matter what your political leanings, just because the more prospectives you have the better your policy making, i think. thoughtful disagreement, something... it is quite interesting to have that

after demand dried up due to a trade war between the us and china. after demand dried up due to a trade war between the us and chinam after demand dried up due to a trade war between the us and china. it has affected us financially. at this point, i have not sold everything yet. there is still time for the prizes to go back up. a farmer is a lwa ys prizes to go back up. a farmer is always optimistic. although indian is heavily reliant on agriculture and manufacturing, tariffs have yet to really be felt economically. which is why voters have chosen to focus on other issues. i do not think tariffs are going to have much to do with voter decisions. maybe 1% might think about it. they will be thinking about immigration, the hot button social issues. that has meant that most have turned their attention instead to how they feel about the president, with some queueing hoursjust to about the president, with some queueing hours just to sit president trump speak. 0ur terrace something you care about? not really. i think

between the us and china, orare tensions between the us and china, or are there other factors at work also what we are seeing is a slowdown in china. the government is mindful of this, even yesterday with the release of the pmi data, it is believed the government got together and said what do we do to support the economy? the key risk is that the economy? the key risk is that the chinese overstimulate, at the same time the us over titans and that would lead to a bit of a collocated start to 2019. complicated, use a. we already see the chinese in a bear market, we see their policies to rewind things, how can they manage that? it will be an issue of fiscal support. to forget, any easing we have seen monetary wise should flow into the economy into the end of the years. there will probably be a focus on tax and lowering tax. when you look across the board in terms of the fundamentals in this kind of market, what we are finding interesting is the fallen angels. copies who have disabilities but share prices have been driven down. let's look at the world ‘s most valuable market, apple, jute

the chinese vice president was a key speaker and he said that china is willing to speak to the us to resolution to the trade row everyone is talking about. xi jinping spoke yesterday at the china international import expo and he reiterated what we heard xijinping say, that china isa we heard xijinping say, that china is a champion of globalisation and free trade and crucially he said they are committed to opening up their market. but to hear from two of china's top rows in two days suggests one thing, that they are immensely worried about this trade row. many of the trade partners are worried also. chief amongst them australia. i spoke to the former prime minister of australia and he had this to say. the key thing, in all of our engagements with beijing and washington, is to be able to say to both of them, quite directly, political leaders, business leaders, think tank is, that it is possible to carve a rational way through this and secondly it can be done if the us agrees in turn on what outcome it actually wants. i think the responsibility for all of us is to say the reason global

our assumption is by middle 2019 we should have a trade deal between the us and china. and the us and japan. what about slowing growth, higher interest rates, is this impacting the bottom line of major companies? if you look at the previous earnings season in the united states most companies were quite positive on guidance, so we have a disconnect between what companies are saying and what is happening on the stock market. that is fairly typical of late cycle nervousness. in terms of fundamentals, things look very good. let's catch up on the weather team in india as whatsapp has appointed a new boss for its operations. crossing to mumbai and bbc‘s samira hashmi, is this because of incidents happening in recent months? that is right, over the last couple of years there have been lynchings and mob beatings because of messages, fake m essa 9 es beatings because of messages, fake messages circulated on whatsapp, and ever since these incidents have taken place, ever since these incidents have ta ken place, the ever since these incidents have taken place, the indian government

very well that china prefers extramarital dimension their indirect approach i see china using economics and diplomacy rather the weapon of military force in other words is to be. assertive aggressively demonstrated but . use only the last resort what. the mail what beijing want. from taipei is a political face. certainly a friend upholding taiwan international sporting event would be a loss of face or be just sort of the they will be considering an irritant by them but. with. should be very careful before hyping war. yes military buildup separately demonstration military force of this is what is going to happen but. i don't see the big powers in the pacific fleet walking to war. here across it for three to six in the flesh point but but. if you're in the broader war people and leaders know very well that war and war could be disasters even for china the mystical and internationally change you expect president sides to perhaps soften her stance towards beijing i mean she's made overtures she said i'm willing to speak to president xi jinping if we're equals and there's no political precon

people in taiwan are smart enough to make their own choices as i've received when we talk about china using the weapons we've seen them running military drills just in the last few days how real is not threats when you get some people saying oh they would never start a war if it's not in their interest they've got other things on their plate but of course you just heard from i know that it is a very real threat indeed i believe that china would go for the mayor would go for military option all the effaced with a formal declaration of independence but people familiar with china such as a culture know very well that china prefers extramarital dimension the indirect approach i see china using economics and diplomacy rather the weapon of military force in other words is to be. assertive aggressively demonstrated but . use only the last resort what. the mail what beijing want. from taipei is a political face. certainly. a friend upholding taiwan international sporting event would be a loss of face for beijing sort of. they will be considering an irritant by them but. with. should be very careful

worker we have united states china has ten they are so far ahead and when i came back to us i'm looking they were still writing paper checks i mean in china i did everything financially with my phone their banking system despite having four or five state banks has. has so much more innovation than u.s. banks because u.s. banks game is about getting money from the federal reserve it's not about actually searching for depositors and making loans anymore so they haven't innovated on their business platform so we're going to states in terms of banking so far behind united states and ai that links in with a china has so much data out there whether it's from the vehicle you know the. fleets which is like there were all through the economy they have you know the national id systems so they have all this data and that's why they're expected to be able to crunch the data with machine learning and come out on top of the i think that's what most people expect at this point yeah. oh i'm sure going to be a i and you know people look for how they played a role in twenty sixteen election and the break

us from taipei via skype. legislator for the ruling democratic progressive policy the d.p.p. from beijing china tangan a china political analyst and also from taipei fabrizio member of the taiwan strategy research association at taiwan center for international strategic studies a very warm welcome to all of you teaching as we record this program the results are only just starting to come in but what are they indicating so far i think it's zero defeat for party my party and we realize that people are not happy about our performance for the past two years so we countries are that we need to do more to make the people and voters believed we are doing the right rushing here and there are more in a time where you are right trick why do you think it is why do you think voters are not happy with your performance. first of all we have launch a brake company has a reform especially the pay sure you fall and we realize that the pension reform has. al in it a lot of voters and but on the other hand some of our traditional supporters are not happy about the scope and speed of our reform meaning we are not

the us trade award was one of the reasons why the company chose taiwan over mainland china. so theft of intellectual property. those two things would be a death kneu those two things would be a death knell to our business. if a company like us, a small start—up manufacturing company, at mainline china we would sign a suicide note effectively. patents are crucial for us. effectively. patents are crucial for us. taiwan has a respect for ip that is equal to the us. kinestro is one ofan is equal to the us. kinestro is one of an increasing number of multinationals, including 6oogle and amazon, that have already set up manufacturing and research facilities in taiwan. that's in the past three years, or they hope to in the near future. taiwan is actively trying to attract foreign companies with promotional videos, such as this one. taiwan's economic officials tout the island's advantages. translation: our industrial clusters are ready. our industrial clusters are ready. our talent is ready. the investors understand the trade war is long—term, so they are definitely reassessing where

china is stepping up its sphere of influence. our asian business correspondence sent usf dollars in aid and investment in papua and new guinea. apec may not have been able to have been held in port moresby, the capital of papua and new guinea. but this new friendship is raising concern in some other quarters, namely with australia and the united states in america. they seek beijing's cheque—book diplomacy as a way to china to exert more influence in a pa rt china to exert more influence in a part of the world which is strategically very important to them so strategically very important to them so what can we expect over the next few days? perhaps more trade and aid deals from china for popular new guinea but also from the united states, australia and japan. this country has become the latest battleground between the west and china. now let's brief you on some other business stories. facebook faces a new controversy over alleged tactics it used to discredit its critics, embarrass rivalfirms and downplay problems at the company. the new york times has published a wide—rang

china this year or next year? it's an important piece of business and the us largest expert. >> us china relationship is exporting to us and a quarter of a commercial aircraft delivery go to china today and very important market for us. look at the growing global aerospace market and the world needs 43,000 new airplanes over the next 20 years and 7,000 of those are in china. here in the us aerospace is the biggest trade surplus generator and $80 billion of surplus per year and boeing business and supply chain is the biggest piece that. maria: i know it's the second largest market and the industry really but this is where the growth is. talk to us about why there's a good happening in china. billions have not even been on a plane before and you think that's going to grow your business even more? >> it's a long-term sustained growth business. it's the incredible strength of the aerospace market place. look at passenger traffic around the world is growing at 67% a year driven principally by middle-class people that are committed to the traveling public for the very first time in her life. think every year now we are

china welcomes the world as it talks global trade in beijing. but will the trip he overshadowed by its dispute with the us over tariffs? live from london, that's our top story on tuesday the 6th of november. in beijing china hosts top trade officials — while in shanghai it's trying to convince thousands of foreign firms that it's open for business and that it does plays fair. we will talk you through what is at sta ke. also in the programme... as the us goes to the polls — we'll find out what role tariffs could play in the midterms. for financial markets in forfinancial markets in europe, the trading day has begun. it is a mixed picture for now, we will talk you through the winners and losers. how do you persuade kids to turn off the computer and get outside? we speak to one entrepreneur who's trying to help keep but you needs an app to access it! and one in five britons have already done their christmas shopping — unlike their european neighbours — so are people in the uk particularly organised 7 let us know, have you done yours? i haven't! just use the hashtag #bbcbizlive. i have to say, i wish i was on

and china. mainly concerned the us and china. direct effects are quite limited, they are marginal. they are marginal. channel and uncertainty is really dragging on in less than. dragging on in less than. situation, we have brexit and also the need for more integration. the need for more integration. international stage but dairy week in germany. in germany. so what is your outlook for the eurozone? for the eurozone? how difficult will it get? it get? some are saying it could head back to recession? head back to recession? is early days to talk about recession. recession. a year on year basis, eurozone gdp is growing. is growing. and as that lifts we might see a bit of a bounce back in germany. of a bounce back in germany. ready, institutionally, for the next recession or a downturn. recession or a downturn. clearly more needs to be done on that front. that front. other day about italy in more detail. "the foundation of the smartphone of tomorrow". 3 inch tablet. into producton within months. cody godwin was there. and today they

us and it's not the two countries are the us and china do not already use the military force or start wars ok so in this way maybe people think that china are not that powerful because of china trying to be our friend but we now get even reports of china creating islands i know that china is surrounded by nato nations military but we also get now images of china being the warlike country as well there are many. issues that to remain in to be solved under this is seen to many other countries by china trying to resolve all the usual so we says the surrounding countries peaceful but britain didn't. publicly back the belt and rode massive keynesian infrastructure system to africa asia europe did you tell the british government they should publicly back it why did they not because of things like military. i think because it's. a different the political system compared to many western countries rather than to our among you for the country. and actually you u. k. is a quite a supportive you know last year. both on the road to. china u.k.'s chancing or to china it's time for you. at the momen

property and making it harderfor us intellectual property and making it harder for us companies that want to sell their goods in chinaing, of course, says that is not true. samir hussein has more from new york. the us government says that the companies were looking to get information about the research and development of products relating to memory storage devices from the semiconductor company micron technology. they are american‘s largest chip making company. this is the fourth case like this that has been brought by the usjustice department since september. it is really pa rt department since september. it is really part of a broader crackdown against laois chinese espionage on american companies by the trump administration as it takes a more aggressive stance against china. both china and america have said that they are not registered for any cyber attacks to steal corporate secrets from one another. but the us justice funds as the chinese and holding up their end of that agreement. none of the companies that have been charged have yet released the statement. samir hussein they're speaking from new york. us prose

us. it's a local election being closely watched in china taiwan. independence . so how will the results affect on going with this story. and welcome to the program. millions of taiwanese voted in mid-term elections on saturday the ruling democratic progressive party was dealt a severe blow to the vote is being closely watched by government leaders in beijing which regards taiwan as a breakaway territory reports from taipei. well behind me one of the one hundred fifty thousand places where votes are being counted in these local elections as well as the ten referendums that are happening alongside it as always in an election in taiwan china has been the dominant overriding issue that's because for the past few years relations between beijing and taipei have gone from bad to worse they started to get bad when president zine when was elected in january two thousand and sixteen relations with the previous government here in taiwan had been good some say too good which is why resign when was voted into office her crime in china's eyes is this she refuses to accept the

trade wars, us and china is very much top of the agenda. sticking with europe...ahead of that meeting between president cheapening and donald trump and they are in negative territory now. president xi. that 620 summit in argentina means the global economy is very much in the spotlight, and there are plenty of other big economic stories around this week. there's been a string of reports about what brexit will mean for the british economy and the price of oil has continued to fall. 0ur economics correspondent, andrew walker, is here. andrew, as always, it is just getting busier and busier for you. how is life these days? do you ever get breast? if it is not brexit, it is oil and if it is not oil, it is trade. —— do you ever get any rest? there is a plan for the new trade deal the united states, mexico and canada have negotiated. nafta was a lot easier. there was a plan for that to be signed by the three leaders in the margins of the summit. due to happen in a little over three hours' time. we do not know whether they will nail it down because there are some continui

imports into the us with tariffs. and chinaut has less wiggle room to manoeuvre as the us buyer is much more from china than it exports from the mainland —— buys. we will have to wait and see those developments in buenos aires between president xi jinping and president trump, sally. thanks a lot, rico, see you again soon. now let's brief you on some other business stories. italy's government says it will stick to its high—spending budget plans, setting up a potential stand—off with the european union over its deficit. the european commission has already threatened italy with fines unless the plan is revised. the italian government says it will end poverty by trebling the previous government's planned budget deficit. a study claims prime minister theresa may's brexit deal —— we still have time to look at markets really quickly. i mention the fact, and rico mention the fact, that the comments to the wall street journal about trade have unnerved investors, but also we have a fall in technology stocks yet again because of concerns

china. joining us from singapore thank you very much. we are ready to make major cuts on wasteful spending that's what italy's deputy prime minister luigi myo said in an interview over the weekend it's a signal that role might be ready for a dialogue with the european commission over its costly budget plan brussels had earlier rejected the budget saying more debt would put the stability of the whole euro zone into jeopardy the u.s. said to announce its next move led to this week. the italian government is holding its course but on the streets of rome people are nervous now that the ball is in the e.u.'s court many italians fear that brussels will have to crack down on the italian government to maintain credibility. i think that this almost personal war against europe will not enable us to free ourselves from the disadvantages we experience and will not help us enjoy the advantages of belonging to the e.u. . i feel uneasy very much so because we are in a very difficult situation and the people who represent us don't seem to understand the

looking at this, thinking that from a wider perspective, china needs the us more than the us needs china0, chinese president will look about how he can change policy in china to try and kicked the effect of the trade wars to dissipate. all right, we will leave it there, you are back later. some interesting stories to discuss including the value of further education, get in touch with your thoughts. still to come as the living wage rises we should look at how you should negotiate next pay rise. i will be listening to that! you're with business live from bbc news. if you work for an employer who signed up for the real living wage in the uk, you could be set for a pay rise this week. the minimum hourly rate will rise to £9 across the uk and to £10.55 in london. lola mcevoy from the living wage foundation is joining us. first of all, explain to me, not all companies abide by the living wage, what percentage have you got on board? that's right, i rate is voluntarily paid by a700 uk businesses, they stepped up to go further than the government minimum because the real living wage is based on t

using china rather. perhaps risking an international financial crisis maybe more because of the debt do you think we should the code statements made by some major nations when they criticize china i think for china to have its own system no matter its economy or political system and this may be the largest comes we. can say there is a population but during the process i think a wish for the gave the chinese government more support rise of more criticism because even for us government as there are not criticism even us creators so much trouble for the word press usual thank you thank you and that's it for the show we'll be back on monday with revelations of another p.r. spinning for saudi arabia in twenty four hours after the hundred year anniversary just a hip hop artist and i just know he will explain how world war one paved the way for a century of u.k. u.s. conflict until then you can talk about social media with your money forty nine years to the day that the bulk of major initial claims about syrian

major deal breakthrough, after which tariffs are removed and suddenly we have this trade between us and chinae need to remember that this is not just about trade. this is about the competition between the us and china, the two largest economies, this is the great power rivalry between them across multiple dimensions, economic, trade, military, political, geopolitical, so military, political, geopolitical, so it won't be the end to these tensions. what we might get is we have some sort of ideal, perhaps delaying the tariffs that were to be increased from 10— 25% this january and that might boost sentiment and help provide some relief to market, but it is going to be long—lasting. perhaps some temporary result to the market. there is an issue, that at these big events, apec was another one, we are not getting these joint communique is, we are not getting some form of statement even that they are willing to work together. what will it take? dragging the rest of the world into a trade war isn't good for anyone. that is not what donald trump thinks. what will it take? there are reports that are su

the speech from vice president pence in october were seen as a defining moment, suggesting that us— chinange. and will be stiff fine us policy for sometime to come? especially, as you say, the democrats and republicans seem to allow it. yes, i think vice president pence's speech it really was a very stark dividing line. basically what it signalled was that we we re basically what it signalled was that we were on the precipice of a kind of post— engagement world. but of course, the question that hovers over that statement of what does post— engagement look like? because china is still there, and the united states is still there, and there are issues that need to be adjudicated between them. russia's highly secretive military intelligence agency, the gru, has celebrated its 100th anniversary. it does so against a background of scandals, including accusations of meddling in the us presidential election, and of involvement in a deadly nerve agent attack in britain. but on home soil, russia's military spies have been praised by vladimir putin for their dedication and unique abilities. the bbc‘

continued trade tensions with china and the us. ia from china setting up stores in rural areas by the end of the year. let's go to by and we're joined areas by the end of the year. let's go to by and we'rejoined by areas by the end of the year. let's go to by and we're joined by sameer hashmi. they want to flood india with its smart phones? rico, it's already flooded in. if you look at the smart phone market, xiaomi is the smart phone market, xiaomi is the number one player in the market in the smartphone category and they've been consistent over the last two or three quarters. looking at the smart phone segment, 30% belongs to xiaomi in this highly competitive market but what's interesting is there going to open stores. xiaomi has always been an off—line driven business model, but they've realised in india, if you go deepin they've realised in india, if you go deep in the small cities and villages were tremendous growth is expected in the next two years, sales will come from not online sales. smart phone penetration is increasing a

how china has even resorted to it interestingly enough china used to really disregard that system and there's a feeling that i his attacks on the w t o donald trump has worked to undermine the credibility of this very important organization if that rules based trade system goes away we will get back to something resembling a lot of the strongest and that is very very problematic. hoffman. a sort of britain that i'm guessing the british prime minister recently is going to have a busy time there looking for countries. to trade deals after breakfast. going to have a busy time with that and argentina could be a perfect partner because you know is also looking to get out of their economic slump slump with trade but they have this little problem the u.k. and argentina it's called the falkland islands which are u.k. territory but argentina for a long time has said we want them back it's ours and this was of course the reason for the falkland wars and ever since the beginning of the eighty's the you know u.k. prime minister has shown his face here on this territory so this is a first for a lo

you know, china uses in those two areas, east china sea, south china sea, their coast guard, which is really, when you look at some of their ships, they're about as big as our cruisers. so this is where we believe the operational concepts are key. that it is not just the hardware, there's going to be cyber, economic, diplomatic, so that's what we're driving at when we talk about what are the concepts that we want to come at these problems with. >> i appreciate that. just to close out, i think one of the most important things you said today is we're in danger of a slow motion change of strategic balance where we don't have a response. the next thing we know, there are islands in the south china sea, the strait at the north of the black sea is closed and we don't have a response. it's the frog in the water, as it approaches boiling. i appreciate your testimony and your work. very, very important for the country. thank you. >> thank you, senator king. senator tillis. >> thank you, mr. chairman. thank you, gentlemen, for being on the commission and your past service to the country. i was

you can confirm that 90% of large companies in china use microsoft and they don't pay for it. u happy this administration is pushing back on china? i know we're not sure if tariffs is the way to do it but what is the way then? >> not sure. i don't work at microsoft anymore. hard to see the internal issues. all i can say is without any pressure, nothing's going to change. not clear tariffs is the right way to go, i'll be silent on that. but at least this free trader's mind you have to think about more draconian measures. maria: you've been watching the industry, a student of technology for a long time. let me get your take on this new focus on tech and that is the regularegulatory environment. 25 years ago when you and i first started talking, these companies weren't where they are today. so google, alphabet, amazon, you know, -- well, microsoft as well. they've gotten so much bigger and you were around to see the way the e.u. targeted microsoft at a time because of the law of large numbers. it was so big that it was -- it was so powerful you became a target at microsoft. now al

us growth. how strong is it against the backdrop of an ongoing traits but with china. of the us dollar, how much will that hurt american companies train to compete abroad? so that was michelle in new york for is explaining what is happening on wall street. let's go to our asia business hub now where sharanjit leyl has been keeping a keen eye on those asian markets. talking about some of the issues the night before we saw some serious declines for some asian stocks. absolutely. the asian markets were following on from the us. the tokyo market dropped well over 3% earlier. it seems to have given back some of those losses now howeverjust like the us, those concerns over apple suppliers have hit asian mark suppliers have hit asian mark suppliers —— markets as well and there has been a big sell—off in tech companies, some diving well over 8%. taiwanese suppliers of the iphone a deep in the red. oil prices we re iphone a deep in the red. oil prices were mentioned earlier, they were the other reason for falls hitting energy and resource stocks in the region, particularly in a

a lot of these stories are intertwined, trump, china, give us your take on the political risk. intertwinedake on the political riskm is huge, i am economist, but i have become more of a political strategist and economics is very much in the back seat which is interesting because it is generally emerging market strategist that have to pay more attention to politics and now it is the likes of me so it is huge since trump came in and the trade was took over as a significant theme. and underneath that, brexit. there are also popular is things linked to brexit and trump and links teams in europe. you have italy, italian politics, nationalism in europe. so there is a lot of politics in different forms coming through. away from that politics, let's talk about companies which is oui’ let's talk about companies which is our normal domain. that is news yesterday the apple share price was falling. again related to what president trump had to say about ta riffs president trump had to say about tariffs and its share price fall in very close, if not below, the value of microsoft. it did briefly yesterda

and as investors tried to decipher some rather conflicting signals of the prospects of calming the china—us meet china to meet some kind of deal. in europe, markets have opened largely higher — ftse 100 pushed up as the pound has been pushed down again on concerns over brexit — and whether a withdrawal deal the uk has brokered with the eu will go through. we have the details of what's ahead on wall street today. on tuesday, a top us economic advisor touted the strength of the american economy. you can look for confirmation of that when the commerce department releases its second estimate of third—quarter gdp. in its original report, the agency estimated that the us economy grew at an annual rate of 3.5% between july and september. thanks to strong consumer spending. that offset a fall in exports and weak investment spending. one pillar of the economy is of course the housing market. new home sales data for october is likely to show a 5.5% drop from last month. with black fridayjust behind us, the holiday shopping season is very much on the minds of retailers. investors will also want to hea