bombers flew near chinese-built artificial islands in the south china sea earlier this week. last month the u.s. sent a navy destroyer to the area to challenge china's activities there. pentagon officials say that two b-52 bombers left sunday night and returned monday. they say chinese air traffic controllers issued two warnings to the aircraft but the bombers continued their mission. the officials say the aircraft flew over the disputed spratly archipelago but did not go within 12 nautical miles of the manmade islands. one official described the mission as routine. >> we conduct b-52 flights in international air space in that part of the world all the time. >> the u.s. destroyer mission on october 27th did enter the 12-nautical-mile zone around one of the islands. washington argued countries cannot claim the territorial waters surrounding manmade features. >>> japan's defense minister gen nakatani will continue to monitor china's actions after one of the naval vessels was spotted close to the senkaku islands. the japanese government maintains the islands in the east china sea are an inherent part of japan'

over time we can build trust between the chinese navy and united states navy. >> last month, the united states missile cruiser sailed within 12 months of the disputed reef, drawing protests from china. following the incident on november 7th, the two nations' naval vessels were used in an exercise in the atlantic ocean off florida. >>> nhk has interviewed an expert on north korea's missile and nuclear development. he estimates pyongyang has already made more than ten nuclear weapons, and he says the country could increase its nuclear stockpile by five times in the next five years. the senior fellow at the u.s./korea institute at the johns hopkins school of advanced international studies. he says the north has succeeded in miniaturizing nuclear weapons to the point where they can be mound on the country's nodong and teppo dong 2 missiles. >> north korea could have anywhere from 20 to 100 nuclear weapons. that's an increase from where they are today, bringing from 100% to over 500%. so, it's quite a possible expansion. it may take place over the next five years. >> we also referred the nor

. >> translator: chinese fishing boats are escorted by chinese navy ships. wherever they come near our island. the escort ships would sink our vessels if we tried to catch the fishing boats. >> reporter: chinese ships are large and use dragnets to catch huge volumes of fish. local catches have dropped sharply. >> translator: we used to earn more than $200 if we worked for three days. but our income has dropped to one-sixth that amount. >> reporter: indonesia lacks the manpower and resources to fight china. the single boat sent from a naval base 500 kilometers away patrols the water. two years ago, armed chinese vessels surrounded an indonesian government ship and demanded the release of chinese fishermen arrested on suspicion of poaching. indonesia complied. local residents fear china may seize their islands if nothing is done. >> translator: now china is demanding fishing rights but we're afraid it will claim sovereignty next. >> reporter: indonesian defense minister visited the islands in december. he said there would be a plan to deploy ships and fighter a

chinese navy around the world, drugs from the caribbean, yemen, everything is going on. how is the navy turning to meet those challenges? >> brad, thanks for the question and thanks for inviting, on behalf of new ceo i'm honored to be here with so many members of the national security community and look forward and telling you about how our navy -- how we are doing today and challenges that you mentioned. if you would ask me to prioritize, i'm not sure i could. what i could tell you, though is from a navy perspective we took a good hard look at challenge that is exist across the globe. we just released it in march. we took a real hard look at all of the things you mentioned. the strategy outlines kind of three key points that i think focused where our efforts are. number one is we are deployed forward, so the navy is your crisis response force and we are forward each and every day. today about 40,000 of young men and women are deployed on the tip of the sphere. they are ready to do a large number of things from humanitarian assistance when needed to detouring conflict and

betty: when you look at the disputes in the south china sea, the chinese sending navy ships off the coastalaska when president obama was visiting. the military parade commemorating the 70th anniversary of the ending of world war ii, some look upon that as increasing military aggression by the chinese. mr. yang: first of all, let me say that the commemoration of the 70th anniversary of the chinese people's war of resistance against japanese aggression and against fascism has been welcomed by the world. the purpose of the celebration is to bear in mind history, to respect the fallen heroes, and to cherish peace and to open up a better future. so this kind of celebration is not directed at any government. in his address at the commemorative event, the president actually mentioned peace in a very emphatic way 18 times. and let me say that the military of any country should move according to international law and that has always been china's position. of course, we have certain complaints about what other countries have done but facts are facts. facts speak louder than words. betty: when peopl

there is chinese navy around the world, drugs in the caribbean, insurgence in yemen. what is changing fastest, and how is the navy trying to meet those challenges? >> thank you for the question and think you for inviting me. i am happy to be here with so many members of the community and to tell you about what the navy is doing today in how we are facing the challenges that you mentioned. me to were to ask prioritize, i am not sure i could. tell you is that from a navy perspective, we took a good, hard look at the security challenge that exists across the globe. our strategysed for the 21st century in march. we took a hard look at all the things you mentioned. the strategy outlines three key points that i think focus our efforts. one, we are deployed forward. responseis your crisis force. we are forward each and every day. today, about 40,000 young men and women are deployed on the tip of the spear, ready to do a number of things, from humanitarian assistance when conflict, toerring to crisis. being forward is something we do every day. second, our friends, allies, and

of warships in the mediterranean and persian gulf, we have near altercation actually with the chinese navy, a ship told them to leave and the chinese general said afraid united states. but proximity leads to problems. you can have an accident, maybe oil prices have been moving up because tensions are rising a bit in the middle east. maybe the markets aren't necessarily giving enough weight. so hedging that maybe with defense stocks or oil, with gold, u.s. treasury bonds, might be partly a strategy. >> it's always approach to me -- the markets aren't only about the fed or earnings or mi macroeconomics. s's th it's the unanticipate. >> we're in the unknown you think unknown territory given just how provocative things have come with withe russians assertg themselves. maybe new continue putin is dis people from a very bad economy. u.s. forces haven't been this close this quite a long time. so it's not something that you fret about. but for geopolitical crises -- >> you don't take it off the table. >> no, i don't think so. >>> we're continuing to track what is going on with volkswagen especiall

the chinese navy when you're gone up from the caribbean, the insurgents off of yemen. what is changing the fastest and how is the navy turning to meet those challenges? the >> thanks for the question and for inviting me. on behalf of the new cmo i'm honored to be here with as many members of the national security community and look forward to telling you about how the navy is doing what they are doing today and how we are facing the challenges that were mentioned. if you were to ask me to prioritize, i'm not sure that i could. but i could tell you though is from a navy perspective, media perspective, we took a good hard look at the security challenge that exists around the globe in the development of the cooperative strategy for the 21st century which was released in march, we took a hard look at all the things you mentioned. the strategy outlines kind of three key points that i think focus where our efforts are. number one, we are deployed forward. so the navy is the crisis response force and we are forward each and every day city about 40,000 of our young men and wom

it's a move that's sure to draw protests from the chinese government. the u.s. navy to continue doing quarterly patrols in the area. china claims sovereignty over most of the south china sea where it has been building artificial islands. >>> he calls dick cheney an iron ass and donald rumsfeld an arrogant fellow, but that's just the beginning as former president h.w. bush speaks out. "scrambled politics" is up next. beyond natural grain free pet food is committed to truth on the label. when we say real meat is the first ingredient, it is always number one. we leave out poultry by-product meal, corn, wheat and soy. and, we own where our dry food is made - 100%. can other brands say all that? for grain-free nutrition you can trust, does your food go beyond? learn more at beyondpetfood.com count on being slammed this hwith orders. we're getting slammed with orders. and my customers knowing right when their packages arrive. totally slammed! introducing real-time delivery notifications. one more reason this is our season. hai'm messing up every dish, pot, and plate... ...

the thai navy is also considering buying a chinese submarine. >>> japanese official released a handful of economic indicators this morning. we're joined now from the business desk. give us a break down of the numbers. >> as you know at the end of every month we get a look at people's spending habits, the cost of goods, the jobs situation and these numbers give us a better picture of the economy during the previous month. let's start today with people's spending habits. japanese shoppers were being frugal watching their wallets in october. officials say spending by households spell by 2.4% from a year ago. october marks the second straight month of decline. households with two or more members spent an average of 282,000 yen. that's around $2,300. the ministry say the consumer price index last month was off 0.1% from the same month last year. down for the third month in a row s when prices of energy and all kinds of food were excluded, the gauge was up 0.7% year on year. the figure had been on the rise for 25 consecutive months. the index doesn't factor in fresh food because those prices

the first meeting since the american navy vessel sailed near the artificial chinese island. u.s. secretary of defense ash carter met with the chinese defense minister for about 40 minutes. carter said his military would continue similar operations. senior pentagon officials say he told chan all countries should stop reclaiming land or building military bases in the disputer waters. chan stressed chinese leaders would make no compromises on territorial disputes. the two failed to narrow their differences but agreed to continue dialogue. >>> china's state-run news agency says leaders are lowering targets. >> they're reporting president xi jinping is saying the economy needs to low at least 6.5% in the next five years and on monday the agency said said something earl. xi is reported as saying the annual growth rate will be needed if it's to double the 2010 gdp and per capita income by 2020. his comments came during the fifth plenary session of the 1th central commission of the communist party last week. xi said growth shouldn't be the only focus over the next five years. he said vol

chinese behavior. he called it: "...a sign of the critical role the united states' military power plays in a very consequential region...." u.s. officials say the navy means to continue challenging the chinese territorial claims, on a regular basis. >> sreenivasan: joining me now to help us understand the united states' recent activity in the south china sea and what it means, is bonnie laser, director of the china power project at the center for strategic and international studies in washington. so first, how big a deal is this if ash carter gets on a very nice ship and decides to take a cruise in territorially-disputed sphwhearts. >> well, secretary carter has done this previously when he attended a shangri-la dialogue in june this year. he was on a h.p. surveillance aircraft flying over the moroccan straits. so it's not unusual for the united states secretary of defense to be on a military platform in the south china sea demonstrating the united states has an abiding interest in peace and stability in the region. >> sreenivasan: is it a provocative act to be in this place at this time? >> undoubted through chinese see it that way, but the others

there's been talk from chinese challenges u.s. navy ships.know how those things can progress in a dangerous direction. >> well, and that is absolutely the balancing act here which is that, again, we have to demonstrate our commitment to certain national principles. we have to demonstrate, again, that in this parking lot of the world you're not -- in this part of the world you're not just going to have a situation where a bigger nation can bully a smaller nation on an issue like a territorial claim. on the other hand, you don't want to provoke conflict yourself. so i think when you look at what we do, it's very deliberate, it's very measured, it's, frankly, very transparent in terms of us demonstrating why we're doing what we're doing. but you also need to keep a dialogue. so with the chinese, for instance, at the same time that we've been very focused on building our network of partnerships and alliances in that part of the world, we've been very focused on increasing our military-to-military end goingment with the chinese. because these thin

we've learned tonight that a fast-attack chinese submarine kept the "uss ronald reagan" in its sights while they conducted exercises with the u.s. navye, tonight a chinese attack stalked the "uss reagan" off the coast of japan. they followed "the reagan" closely for at least a day. >> what could happen when ships operate close together is there's the potential for misunderstoodimi misunderstanding or a strategic miscalculation. someone cuts off another one, ships can collide. we've had cases where people didn't understand intent, where gun mounts were trained. >> reporter: the u.s. official did not say how close the chinese subcame to the carrier but it was submerged the entire way. there's no indication the submade threatening maneuvers towards "the reagan." the chinese commanders did not communicate with each other. it was a kiol fast attack sub. >> it has torpedos and has the ability to operate quietly. >> reporter: anti-submarine aircraft tracked the sub. >> they would make sure that the submarine knew that we've got eyes on you. >> reporter: the u.s. and china have been engaged in a dangerous cold war-style standoff over china's

they weren't chinese or japanese exclusively, but there was a chance navy because of a healthy reason or maybe and i infection or maybe you had-- you are very poor and may be worried about not having enough money, they were beginning to hear that, well, you can sail on the way to the united states and possibly get rejected and have to sailed back and i was a bit of a risk that sunset i would rather not take that risk, so you began to have reports years after they passed immigration restriction other people in seattle, saying a lot of chinese are starting to land here and go across the land of border. upstate new york, there were reports of irish poppers committed to buffalo, new york and working their way in. peoples whose job it was to enforce immigration and the politicians who created them began to say, wow, if we are going to restrict immigration, meaning people wanted to get around we will find ways to do so and they did. beginning in 1880s, you began to see through seattle and upstate new york all of this pressure of people saying if you sail into san francisco or if you sail in

in addition to harassing other regional states, five chinese navy ships were spotted in the bering sea off of alaska during president obama's recent trip to alaska. meanwhile hackers in china continue to conduct cyber espionage and cyber attacks against our government and critical sectors of our economy. russia, iran, and north korea are doing so as well all in the past year. again and again national security requirements have materialized after the budget control act was passed. but we forced our military to tackle a growing set of missions with arbitrary and insufficient budget levels. revised periodically with whatever additional resources the congress is able to scare up. the results speak for themselves. since 2011, as worldwide threats have been increasing, we've cut our defense spending by almost 25% in annual spending. not only has annual spending decreased but so have the long-term budget plans of the department of defense. each year the department releases a five-year budget. however, each year it is reduced its five-year plan in an effort to closer align its spending to the

navy. the australian government refused to comment on the reports >>> chinese security forces killed 28 people it described as terrorists, happening in the volatile region. it belonged to a group behind an attack on a goal mine. >> south korea accepted a proposal for talks by north korea, according to local media, the newsagency said the meeting will be held thursday. and state media suggested it would be held in the boarder village. they decided to try to improve ties in cross-boarder tensions >>> u.n. chief ban ki-moon has urged myanmar's president to work together as the government hands over power. the opposition leader held talks with parliamentary speaker. the mld party won a landslide victory in the first full election since the end of rule, but cannot form a government until next year. >> croatia is refusing to take been 162 people rejected by neighbouring slovenia as economic migrants. three countries shut their borders to people from states not affected by war. croatia allowed in refugees from syria, afghanistan and iraq. >> macedonia is imposes similar restrictions leading to a back

navy sent a warship past chinese-built islands, through waters that beijing claims. at a meeting there today, admiral harry harris said the move wasn't meant as a threat. but a top chinese general complained it soured relations. >> ( translated ): i had planned to have a good talk with you on the south china sea issue. however, regardless of the solemn representations of the chinese side, the incident has created a disharmonious atmosphere. we are resolute in our determination and will to safeguard our sovereignty and maritime rights. >> woodruff: at a separate meeting in malaysia, china's defense minister told u.s. defense secretary ash carter that there's a "bottom line" on challenges to china's territorial claims. he did not elaborate. >> ifill: the iraqi politician who played a key role in promoting the u.s. invasion in 2003, has died. state t.v. reports ahmad chalabi had a heart attack and passed away in baghdad. after 9/11, the exiled leader helped persuade officials in the bush administration that saddam hussein possessed weapons of mass destruction. that turn

the chinese navy has an around the world flotilla going on, insurgents off yemen. verything's going on. what is changing fastest and how is the navy turning to meet those challenges? >> brad, thanks for the question and thanks for inviting me. on behalf of admiral richardson, our new cmo, i'm honored to be here with so many members of the national security community, and i look forward to telling you about what the navy is doing today and how we're facing the challenges you've mentioned. if you were to ask me to prioritize, i'm not sure i could. what i could tell you, though, is from a navy perspective, we took a good hard look at the security challenge that exists across the globe. in the development of our cooperative strategy for the 21st century, we just released it in march, we took a real hard look at all of the things you mentioned. the strategy outlines kind of three key points that i think focus where our efforts are. number one is we are deployed forward. so the navy is your crisis response force. and we are forward each and every day. today, about 40,000

chinese premier li keqiang a week ago. >>> hackers have reportedly been trying to steal secrets about a future fleet for australia's navy. australian media say those responsible for the attacks are from china and russia. hackers have targeted ship builders in germany, france and japan that are bidding for the project. the newspaper says a submarine shipyard belonging to a marine systems of germany has been targeted between 30 and 40 times a night. australianedia saying none of the hackers' attempts have been successful. australian officials plan to replace the country's submarine fleet in the 2020s. the companies submitting bids will send their proposals by the end of the nth. australian officials have raised the issue of cybersecurity with each of the bidders. >>> and as many analysts have been saying the chinese which he is slowing down, and new numbers out of china seem to support that view. gene otani has more on that and a roundup of other business headlines. gene. >> thanks, james. china's exports and imports continue to shrink last month. it will be extremely difficult for the country to achieve the target of a 6%

chinese ground controllers responded with a verbal warning. a navythe island last month. the u.s. does not recognize them as sovereign territory. you can get more on these 24 hours a day at the new bloomberg.com. francine: think you so much. downing street where david cameron is talking about "jihadi john." >> we have been working with the united states, literally around the clock, to track and down. ins is a combined effort, the contribution of both our countries was essential. anwasi is a barbaric murderer. he was shown in the sickening videos of the beheading of british aide workers. you posted not going in serious threat to innocent civilians, not only in syria, but around the world and in the united kingdom, too. executioner, leave and let us never forget that he killed many, many muslims, too. he was intent on murdering many more people. so this was an act of self-defense. it was the right thing to do. today, i want to thank the united states, the united kingdom has no better friend or ally. and i want to pay tribute to all those professionals

so many wealthy chinese buying properties in places like sydney, hong kong, london and new york >>> thank you for that. adrian brown in beijing there. al jazeera learned the australian navy has turned away a boat of asylum seekers. it was within 200 metres of christmas island. it is being escorted back to sea by the navy. the australian government is refusing to comment on the reports. andrew thomas from sydney. >> reporter: we've spoken to a number of people who live on christmas island and saw this boat early morning friday their time just off christmas island. a small green and white boat. they weren't able to say how many people were on board, but they said that the boat was intercepted by an australian navy boat a couple of hundred metres from shore and then escorted back out to sea after which they lost sight of it. australia's government won't confirm or deny any of this. their policy is not to comment on operational matters, but if it is the case, the boat of refugees has got one a couple of hundred metres from australian rritory then it is significant because it will be the first time that has happened in well over a year. australia's government made much of the

a retired officer says the navy often shoots unarmed missiles over the pacific. >> they wanted the russians and the chineseh to see that we are still very capable and we have these weapons and they work. >> lockheed martin has been making ballistic missiles in sunnyvale since the '50s including the model involved in the most recent test that's a trident 2d5. >>> time now is 6:39. a linebacker for the raiders may face felony charges in pennsylvania. why taunting a dog could land him behind bars. >> and there's some growing opposition to a pair of plans to get new life out of an iconic bay area building. ,, with a 100% electric nissan leaf... what will you do? how far will you go? how much will you see? electrify the world. now with a class-leading 107 miles on a charge, the nissan leaf is the best selling electric car in america. >>> 6:42 on this wednesday. november 11, veterans day. let's take you on a ride around the bay area with the sunshine, 60 degrees in half moon bay through pacifica. it will be in the low 60s around the peninsula, swinging around to the santa clara valley at 63 degrees in san jose.

navy plans to increase the patrols near china's artificial islands in the south china sea. xi jinping is asking not to military the island. chinese leaders warn a minor incident around the islands could spark a war. >>> arrested for allegedly leaking church documents. they were taken into custody over the weekend. the vatican calling the actions a grave betrayal of the pope's trust. this comes amid two allegations of mismanagement in the church with two books coming out. >>> and the latest on the russian jetliner which crashed and left 224 people dead. more coming up. >>> new clues into what may have caused the russian passenger jet to crash killing all 224 people on board. what investigators are saying this morning. we have live team coverage just ahead. >>> the gop debate revolt crumbles. republicans failing to agree on demands for future debates. who pulled back and what it means for the race moving forward. welcome back to "early start." i'm alison kosik. >> i'm miguel marquez. it is 29 minutes past the hour. looking into the cause of the crash of flight 9268. the satellite detects a heat flash. that heat flash coming the sam

navy investigators have positively identified the u.s. carrier alfaro -- el faro. with 32 sank last month people on board. no survivors have been found. and the chinesenment of agrees that an environmental pact should have countries were in new every five years. this is ahead of a meet in paris. president obama has signed that bipartisan budget phil, averting a fiscal crisis. it increases discretionary spending by $112 billion over the next two years. and former president jimmy carter promised he would lighten his work schedule after his cancer diagnosis, but he admits that hasn't happened. the reason is mr. carter says he feels just fine. the 91-year-old was diagnosed with cancer in august. you can always find the latest news on bloomberg.com. betty? betty: mark, thank you. that was mark crumpton at the news desk. and julie hyman has a check of the market movers. it is market monday, so there are a lot of movers there. so far we are on track to have the best year globally for m&a. the company is buying visa going tod the deal is be as much as $23 billion in value. it has been eight years since the two have been separate companies, but the shares are

just today, the navy released these pictures of the sub and the crew that launched the missile. >> aimed at the russians and chinese, to see that we are still very capable and we have these weapons and they work. >> reporter: so sorry, conspiracy theorists. in the end, that thing in the sky, which was seen from three states, wasn't a ufo after all. it was a trident 2 d5 made in an area better known for megabytes than missiles. >> the fact that it's here and been so well done for so many years is impressive to me. >> reporter: a single missile costs $31 million and can travel 4,000 nautical miles. in sunnyvale, mark kelly, kpix 5. >>> time is 5:09. would you be willing to pay more for your meal if you didn't have to leave a tip? some restaurants are hoping you answer that with a big yes. we are going to tell you where tips are being phased out. >> reporter: and on this veterans day here in santa clara county we are set to hear about a new program that will try to end homelessness among veterans in just two years. >> on this veterans day it sure is a cold start. we are going to have your daily forecast plus i'll tell

they thought chinese intelligence would notice these activities, and make hanoi worry about what nixon might do next. , when nixonith this asked the navy to drop the plan, the chief of naval operations duly supplied him with a mining plan code-named duck hook. all this activity took place in the deepest of secrecy, seeping -- is seeking maximum secrecy. only a few advisors knew the actual direction of policy. but because of the threats and signals failed to sway moscow or hanoi in the summer of 1959, nixon and kissinger concluded that mining would not be enough. they stepped up their warnings and initiated planning for a massive shock and all mining and bombing campaign slated for early november, the date of the threat they made to hanoi through a letter to ho chi minh. these plans for escalation were also code-named to duck hook, although the joint chiefs of staff's had their own code word for a similar plan they were developing on their own. together, the plans were known as the november option. the mining of north vietnamese quartz and bombing in the hanoi area, the initial concept for duck hook included proposals for ground incursi

navy in a generation. we are reducing 40,000 positions in our army. the chineser satellites. we have no answer for it. they hack into our computers through cyberwar fare. we have no answer for it. we are lacking in every component and we're not doing research and development to confront the challenges that are around the corner that lie ahead in the years to come. >> all right, let's talk about immigration. i watched governor kasich and donald trump as well as jeb bush weigh in. they differ when it comes to immigration, what we're going to do with the 14 millions that are here already since we cannot deport them all. donald trump says we can. what does marco rubio say? >> i say we're starting that argument the wrong way. the first step has to be bringing illegal immigration under control. you know the lesson of 2013 when i was involved in a bill in the senate, the lesson i learned from that is the people in the united states do not trust the federal government on immigration. and you're going to have to prove to them that illegal immigration is under control, tha

chinese on the subject. did andetary: what we we'll continue to do isn't new at all. we have been sailing the united navy in the south china sea for decades and decades and decades. so we did that. we're going to continue to do that. noting that?y even they are not noticing it because the united states is doing anything new. they are noticing because china is doing something new. china is making extravagant plans. they are not the only ones who are doing that. are other claimants as well. trying to settle those claims not by talking about them, but going out to redredging them and building airstrips on top. a lot ofgotten attention. and in turn has caused people to notice we're still doing what we've been doing. i want to be clear, you called it a challenge. we're doing what we've been seven years. why is that important? thee been talking about middle east and -- so the middle east is in the newspapers every day. the asia pacific where half of humanity live and half of the economic activity which is far --e cons sensible consequential for america's where most of the growth theets for all of businesses in

navy since ships and the army sends in troops and supplies. it's called humanitarian and disaster relief. it's a disaster relief. i have that in greeting. honestly western militaries, the japanese military, the chinesery is getting better at this. a lot of militaries can do this pretty easily. if you keep doing enough and enough you will get a capacity issue but it's pretty easy to do. the impact of bases is like rising sea level, drought, forest fires. those are coming up in sort of the longer-term. i sort of got the yellow kind of color on there. but at least for the bases it's probably still a few decades out and do we really see the big effects. but the things that got in the yellow to orange, the arctic is changing very fast as i mentioned. and even just in the last year you now have russia that has certainly built up their capabilities but their intentions are frankly much harder to understand. there's a lot of very bellicose rhetoric coming out of russia. and how much of that is into consumption, how much of that is for doing other things, and how much of it is like a, we mean it lacks i'm of the view that you can't just discount this entirely because little pop quiz, what is the nation that