is week we don't have to worry, but china is strong we have to look at the strategies that china is adopting in order to fight what it sees as the warhead which gets into the realm of words you have heard, the jargon access aerial denial and asymmetric warfare. once i get to that point there is an issue we have to focus on. i go through the flashpoints for war whether itwhether is south china sea, east china sea, taiwan, north korea, and finally to try to cut throuw you present with seems to be an eventual conflict with china which is where we'll talk about the pathways to piece. i am going to move through this fairly briskly. let's begin with the intentions question. we start with, there is absolutely no question, china needs to have a strong military. no question about that. the british took the port, the opium wars is doing the same thing today, using coercion to take territory from people. germans and french were absolutely brutal us was right there as the junior imperialist at the time and of course we know the history of which appended. the chinese attitude is never again.

is radioactive money moving out of china? e is capital flow out of china, but a lot of the big capital outflows that we saw were chinese companies paying down their foreign debt with the expectation that the currency was going to weaken. companies have been borrowing offshore, particularly in u.s. dollars, wanted to pay that down and move the borrowing back to china. tom: i do not want to get you in trouble, but i'm honored to ask you this. there is a huge mystery about this chinese company buying up american hotels. with all of your years of following china, do we know who's balance sheet it is, or what is on the balance sheet? robert: not really. little seen efforts a over a decade ago that the chinese government came in and use reserves to shore up the banking system. a lot of this is intermingled funds. this isn't surprising. we saw the same thing for japan when growth prospects slowed. we saw an outflow of capital from japan into the united states. this is a fairly normal part of the global adjustment process. we will con

iron ore is up. chinalping us to kick things off today is jeffery gardner -- jeffrey garten. he has a new book. jeffrey, welcome. we have a lot to cover this morning, but first let's get to first would news with caroline hyde in london. caroline: u.s. vice president joe bi

china. angie: it is all about china. see emily chang's full interview with david nevins on the studio 1.0 this afternoon. that is in 1:00 p.m. in hong kong and 4:00 if you're watching us there is any. and deals aaution blow to the dollar. he joins us next to discuss the fallout on the currency market. you're watching "first up" ♪ ♪ it is 7:43 in hong kong. . here are the stories making headlines. about two hours before kickoff. media reports said there was a bomb threat at the stadium. officials say the match will be played at a later date. at least 13 people have been killed and more than 30 others injured in a bus crash in northeast spain. the bus was carrying university exchange students back from spain's largest fireworks festival. it crashed into an oncoming car on the opposite side of the highway. passing andad been alcohol and drugs test. a market shift out the first export of national gas in history. it first started exporting gas in the late 1970's. the shipment is the result of a joint venture. struggling to fee

our next guest is a long time china watcher, independent economist. what do you think will be the town set at this meeting this weekend? >> the government has made it clear that this is a time when criticisms are not welcome. rishaad: they don't like criticisms ever. form for people to voice their frustration, but not anymore. rishaad: are we going to get anything substantial? the people have been urging government to do more when it comes to reforming state owned enterprises. getting somes traction, would you agree? if so, how did they effectively get rid of millions of jobs, which is what this reform process would entail? getting laid off, that talk is coming back. i'm not sure this is really serious. the labor force is shrinking. gettingabout people laid off and social instability is a line to stop reform. talk coming back is against reform, so that makes me more worried about china. rishaad: you don't think anything will happen? over all in china, we do have a labor for ditch. the labor force is shrinking. have a labor shortage. the labor force is

is now pursuing modernization and development is our top priority. chinaeeds a stable neighborhood for its growing development. we will uphold global peace and this is in the interest of china's neighbors. china is remaining commitment to the path of peaceful development and will not waiver to uphold sovereignty and integrity. we hope all countries from within this region and without will work together to uphold regional stability and it is not the opposite that is in the interest of all. with russia today, on both china and russia, have recognized the business cooperation between the two countries is lagging behind the growth of their political ties. both sides have promised to change this by promoting trade ties and investment corporation. we have not seen a large inflow of development in russia yet. what is the reason for that? is it because of the sanctions between russia or russia's own economic situation? are chinese companies under precwith the united states and other countries from cooperating with russia? some experts believe china is not interest

china is one of those. ntinues to be an engine of growth for the region, perhaps not for the world. angie: it's got to be a collective effort, it sounds like. bennett, always good to see you, joining us in hong kong. coming up on "asia edge" -- rishaad: we are going to find out why apple could be facing a potential crisis when it comes to the iphone. angie: back in two. ♪ a look ate now for what we will be watching for you in asia this week. nike releases third-quarter earnings on tuesday, and we will be watching to see how the company is faring in china. at second quarter sales defy the slowdown, jumping 24% to $938 million, while future orders increased 34%. china is hosting the annual bow forum. premier league to chang -- li delivering abe speech. stephen engle will be there with live updates and big guests. on thursday, we have singapore releasing its budget. the finance minister says the government will be particularly prudent with this year's finances. singapore's economy grew 2% last year. that is at

ace money is shrinking in china. base money is drinking in china -- is shrinking in china. onne: thank you so much. ♪ yvonne: welcome back. the man behind the most expensive piece of lingerie in the world says the diamond industry is under as much press -- pressure as any other business. berraated a gem studded for victoria's secret. >> the diamond and jewelry industry goes through a lot of different cycles and it is very much impacted by the economy. time we arerst going through a global slowdown where there is not one market driving it. >> how has a china's slowdown affected the industry? >> a lot more volume is happening at the lower point -- price points. where peoplen is are having more difficulties. >> how much of my holding right now? >> you are holding $13 million in your hand. but what is the difference between a good long-term investment and one that is not so much? >> you want to go for the rarest possible jams -- gems. nature produces a lot of diamonds, but very few are actually pure. although this one is smaller, there is a tent of yellow -- tint of yellow. go f

by the early 2000's china's first generation of tech entrepreneurs is born. d land reform guarantees private property rights in 2007. a boom in real estate development and construction creates 85 urban centers that are now home to more than half of china's total population. the country's new wealth has created over 400 billionaires and lifted more than 500 million people out of poverty. in just 30 years china has emerged from an agrarian collective economy into the world's second largest with an annual gross domestic product at $11 trillion making it the most rapid transformation of a nation's economy in human history. but china's success has also come with a heavy price. a toxic environment, corruption and cronyism, and a wealth gap that is among the highest in the world is now leading many in china to question the direction of its dream. professor pheng cheah: once i was in the san francisco branch of the departmental store barney's. when i looked around, the only shoppers were from the mainland. that's the image that i have of the chinese dream, especially

there is the actual link between china and the rest of the world. to be those built out, you need to have a situation where these markets are better developed. , 95% ofw, chinese debt all of it, there is no significant secondary market. there has to be product development. a reliable ratings system on the corporate debt side. all of that is still to be done. there's a huge reform agenda in the markets alone from the supply side. angie: do you see any opportunity in chinese bonds to buy potentially? the returns seem to be higher than u.s. treasuries. >> the chinese stock market melted down in august. at that point in time, you have decided to completely switch asset classes. you would be rich now. the question is, when are you going to time getting out of that? that is another issue. i think there's no question that there have been great opportunities and it's a market that is basically on the same side as japan. it is huge. it is about half the u.s. debt market. it is also chasing its own tail. it is not reaching the investing public. angie: what els

in both of those markets china implemented reform policies. this is the point about china. it is a developing economy story. it's an economy in transition. and they are in the middle of one of the greatest reform processes in the history of the world. markets are changing. united nations are changing and that can be disruptive. it happened in the equity and infoxchange markets. >> let's talk about equity market, in america and western counties we associate that with economic performance, is that a fair way to prepare things in china, when we saw double digit growth in china there was no equity movement. now there's huge equity movement and rough markets, didn't really growths. >> when you get you people look at the shanghai market, the schenk zen market almost as if it's on the par with other markets, and it's not. china is a transitional economy. the chinese equity market is where the western market were 30, 40, 50, 70 years ago. to put it on the same level and judge it in the same standard,you'll get critical. that is a long-term reform process, the key question is are the

that is something we need to watch. chinaun this for another three or four years before it reaches debt. your deficit goes toward 90% of gdp. when is a augmented, i am included the local government -- when i say augmented, i am including the local government. 60% and rising at the pace of 10% a year. that is one thing we need to watch. i imagine when china gets to 100%, you will push the limits. ,aybe the wrong way to play it but you will see a significant drop in growth. the property market is key. it is the collateral of all lending in china. while it is a different problem for the u.s., construction-- the companies are quite lowered. you still have very high ratios and rising. guy: daniel, that raised a few eyebrows. how do i invest around that? daniel: this is old china versus new china. you have overcapacity concerns. you're going to have layoffs and restructuring. it is notable that when people talk about whether emerging markets are cheap and you look at buying wishes, you see the index that is china that appears to be

emily: what is a progress report on alibaba's push into rural china? they bought a big stake in sunni. is it working? gordon: it is certainly working. they have 12,000 or so rural centers. they plan on going to 100,000. i don't doubt they will make it. that will not be a material factor in the next couple of years. they have this big head start. this will be huge because there are so many people in rural china that have had no access to online shopping. this is a good thing. emily: gordon chang and david kirkpatrick, with me for the rest of the show. coming up, activist investors appeared to have a new favorite techtarget this year, but will they help or hurt this budding industry? later, my in depth interview with lincoln ceo jeff weiner. how hindsight changed his thoughts on yahoo!'s uncertain future. ♪ emily: shares plummeted monday because late on friday, the company announced that its ceo and cfo had sold the majority of their personal stakes. not a boost of confidence for investors, especially since the disclosure came after dismissing doubts abou

it is worth pointing out that in many ways north korea is treated as a domestic issue for china. it is ultimately the leadership, the party and the ministry of commerce that dictate policy over north korea, not the foreign ministry. at the moment north korea, i think, senses that china is not prepared to turn the screw even harder because the north korean leader has gambled. he knows that china won't do anything that will risk the regime crumbling and creating what the chinese leadership fears most, a refugee crisis right on its border >>> thank you for that. air strikes in northern iraq have killed at least 25 people and injured around 70 others. the u.s. and its allies hit an area, mosul's university and shops nearby. the city has been held by i.s.i.l. for over a year. on sunday the u.s. military confirmed it had carried out 16 air strikes on i.s.i.l. over the weekend. talks are said to begin between the syrian government and the opposition in geneva. u.n. special envoy is hosting separate talks with the high negotiations committee and the syrian government delegation to find a

china is still strongly opposed to u.s. plans to deploy a high at tud missile system in-- altitude missile system. >> translation: we oppose that because such an action harms the strategic security interests of china and other countries of the region and goes against the goal of maintaining peace, security of the area. >> reporter: the provisions of this resolution go further than before, but will it p properly implemented and how will the north koreans react. in the past when they have been punished it has only provoked them to take further action >>> joining us on skype is robert kelly a professor of political science, a specialist on korean security and missile defense issues. this was a low-level response on the part of north korea. how come? >> i'm fairly surprised that the north koreans didn't do something more and i imagine something more is probably coming. my guess is why they pulled no punches was because china voted for it. they need access to china's banking system. the chinese are behind this, which it seems lik

daniel pinkston is a lecturer and explained why the nuclear program is a concern >> china is opposed to north korea's nuclear program. they want to see a peaceful resolution of this issue on the peninsula, but on the other hand they want to avoid any instability or collapse of the regime. so for china returning to negotiations for the longer term, as long as north korea does not engage in provocative behaviour, i think that is sufficient for china. however, for the u.s., south korea and other friends and allies of south korea, there really needs to be some progress in denuclearisation and if not talk for talks sake causes political problems and it is unacceptable in south korea, washington and elsewhere >>> donald trump and hillary clinton have moved a step closer to winning their party's nomination for the white house after super tuesday. in donald trump won 11, krudz won in his states. this pushes ahead. 1237 delegates is needed for the party nomination. he has 319. his closest rival ted cruz has 226. alabama, arkansas, georgia, massachusetts, tennessee, texas and virginia. bernie

is "what'd you miss?" to an expertpeak uses the china currency devaluation is misconstrued. joe: -- nd one -- alix: square reports earnings for the first time. and whether they can gain a market share. u.s. talks resuming their advance. they gained as oil prices rose and we are looking at a potential eight year bull market. alix: happy anniversary. scarlet: where were you on march 9, 2009. alix: i have no idea. florida on a beach on vacation. i remember watching tv. scarlet: eight of 10 groups finished higher with energy leading the advance. the laggard was telecom. a quiet day, kind of like yesterday. at one point, we were higher and we eked out a decent gain. chesapeake was the best performer in the s&p. chesapeake is weighing the sale of some of its assets. it's where a lot of people are going for undiscovered shale, selling assets to pay for debt. it is a positive for the stock. joe: something i have had my eye on is that wild japanese market. a yield on a 20 year bond jumping up -- it's off a really low level. it shows how wild the market has become. is it supposed to b

it is easy to make the bear case on china. cturing pmi's are one of the things that people focus on, but nonmanufacturing pmi's have been in positive territory for a long time and that part of the economy is growing strongly. people often rely on old economic indicators, because that is what china used to be about. but china is now about value added manufacturing, and it is about consumption, the internet, service sectors, education, health care, insurance, etc. there is one country where the consumer has been so poor in terms of spending, years of deflation, shrieking population, aging population, and of course i'm referring to japan. >> it's interesting because it came top in our survey -- he got the best score in terms of conditions because abenomics is having real traction in corporate governance. companies are getting better, paying attention to returns on capital, paying attention to paying money back to shareholders in the form of dividends, paying attention to board structures. rishaad: what about the consumer? >> in ja

employment scene, and every thing that is happening china as leaders gather for the end. chinese stocks are rising. this is the longest winning streak in five months. decliningaying is 4/10 of a percent. after chinese policymakers announced measures to reach their growth target is here, the afx 400 is up highest level in months. a different story for japanese stocks, which fell in the morning session. today, they're down 4/10 of a percent. best three weeks since 2014. thursday, a big decision in new zealand, stocks are not doing too much. i will be back more with -- i will be back with more. has rejected china fears of a hard landing. rule number one with the there has been of a 6.5 percent growth this year, and those technologies are facing difficult times ahead. heidi is now with us. heidi? heidi: to put that in the context, there is still a very high growth target. the supply-side reforms would come at the expense of shorter-term growth. this .5 to 7% is the first actual growth rate we've had since 1995. in terms of the other targets that we have been watching out since

there is he knows will be a more -- china ismmunist a kind of country. worry, they investing commercially or as a foreign-policy. what is a strong need for investing? needy does austrailia foreign investing? whether you think china will overtake the u.s. in economy, it will certainly be the region's superpower. let's not forget this is an election year. this is the problem, isn't it? what is the chance of a sensible public debate of this issue. between somewhere non-and absolutely none, unfortunately. class in australia has become short. there is a lot of money coming into the economy, and people have become more tactical and a weight they are looking at things. something like for an investment really does need to be done with strategically. a chance there will be a reasonable conversation between the government and the opposition in the electorate. it could come down on the other side. in the regions and rule areas -- areas, they could beat the nationalism drum. it is a fairly cheap way to go but it never really fails for whichever candidate is using it

korea is one of the world's biggest exporters to china. so beginning, 4/10 of a percent, but that is after rallying for seven consecutive sessions. what is interesting is that it offers higher yields than other currencies, so analysts are saying that reserve managers will be buying korean debt, and that will help support the country's currency. it is currently trading at 1206.41. we have the national people's congress in china going on, with leaders saying they will keep housing purchase restrictions in place. real estate now falling more than 5%, despite february contract sales rising 89% on year. petro china falling 1.7%. we hear from an official saying type -- china national petroleum 2016 traffic by 26%, and crude output by 3%. --send down back to you. rishaad: more from the china foreign minister, speaking on the sidelines from his national people's congress in beijing. this is the scene at the moment as he talks about what has been going on in the south china sea, saying china was not the first of the weapons there, and they cannot be

is there any truth in that? john: i think china is not quite at that level. you have to remember they still have -- to act on fiscal policy. i don't think china necessarily eeds to be so austere. if the problem is a lack of demand and expectations at some stage, the only sector that may be left to spend would be the government sector and that is fairly standard in any economy. you have to have fiscal policy to bring expectations and activity back up. tom: john, i want to talk about chronic and the idea to have mathematics of it and the behavior of it in china. bring up the chart. this is china g.d.p. with a moving average and we have never been here is what you need to know in modern history. our moving average is below 2000 t was in the early slowdown. there is a chronic stones the slowdown. what does that -- sense to the slowdown. what does that chronic tone government? john: i think it is a risk. you're already seeing nominal g.d.p. fall and deflate and going negative. in some ways the economy is already in deflation. not good for companies who are heavily

is your studio shaking things up, how is it different, and why china? m a newoing entertainment company, it's not going to look like the existing six major studios. and thed has changed, six major studios do something better than anybody else, which is they make market and to be these giant behemoths. >> you do everything. >> we take advantage of the vacuum in the middle, where the $20 million to 80 main dollars range, nobody was living there, so we went to that space. that if yourlso going to form a new company, china has to be part of it. we went to one of china's largest private equity firms. tpg and not group over there, our largest shareholder. we put this together, and as we started going, we radically underestimated the appetite on the part of these big stars and big directors to make these movies. if you're not doing a sequel, a remake, or a big tentpole, a traditional film, there is not as much opportunity to tell the story. >> is this about money or meshing of stories? there are cultural differences between the slate of chinese movies that come

weird way, between what is going on in china and the u.s. is parallel. s we are to continue to be winning. that?ey achieve they cannot hold back the tide of progress and we have seen that in the capital markets. rishaad: one of the ways they can keep growing is because they have a physical side being dealt with and the monetary side. this is not something most central banks are finding. there are not finding that governments are providing them with the fiscal support. the primepan, under minister, they talked about this goal, monetary, and reform. that is missing in china. reform, we are seeing that in china. all the they will do will not succeed as well as they hope. strong youmeone all say this does not actually work for a central bank to do everything. hurt us: in deed. the answer to a country's problem is not to be found in the central bank. they need to reform. the answer is not to be found in monetary policy alone. you cannot solve your short-term problems with monetary solutions. we have seen that layout. rishaad: what will be the big news? curtis:

china. these are just proposed rules. this is of attempts to cut china off from the internet. they tried it five years ago and it did not work. cory: it seems like it would would not help and it seems like it is focused on individuals and not on helping businesses do business. gordon: absolutely. the premier, the czar of the economy, talks about innovation economy because you have manufacturing contracting and investment losing efficacy, so he is looking to the internet and he has something called the internet plus strategy. well how can you have that , strategy if you don't have an internet? it doesn't make sense. cory: is this saber rattling? gordon: i think it is. because, you know, they have tried this before and obviously they have not carried through on their threats. the we've got to remember this is consistent with a line of attempts over the last of three or four months to really close off china. for instance, they had rules that would prohibit foreign websites from publishing in china. it goes on and on. the leader of t

it is the first major sale we have made in china. it is significant. ily: can you win the world without china? can netflix dominate without china? david: here is how i think about china. china has always been a terrible market for american television. piracy is so rampant. you know, the movie studios figured out how to do stuff in china, maybe, what? five years ago? now they are making real money and i expect there to be a lot of growth they're in the next five years. and i think we have spent a lot of time talking about china. emily: what about apple? what do you think is apple's future in television? ♪ emily: how did you get to hollywood? david: i just drove here. emily: in a volkswagen beetle? [laughter] david: no, in an oldsmobile. yes, my grandmother's oldsmobile. i came out very soon after college. it was actually when i was in scotland. i spent a year in glasgow. i fell in with a bunch of hard-core film geeks who would have given their right arm to move to hollywood and i realized, i have no immigration problems. i'm not scottish. i'm american an

the aim is to turn china into a for innovating in china. haad: what do we know about president xi jinping's preferences? a tendency ton not promote from his own power base. with five officials worked president xi jinping before. that tells you about his promotional style, which might offer some clue. rishaad: what else to expect from this midterm power transition? aswho is going to emerge president xi jinping's's successor? it for he will accept him or will he choose his own person? rishaad: let's have a look at what's going on. xiaomi has no plans to go public, invited at $45 billion in 2014, a funding round secured more than one billion from investors. saying anexecutive ipo is not on the calendar. it is planning to introduce a high end device. shareholders have voted to oftinue back the chairman the retail conglomerate, holding a meeting over the weekend after an internal this beaut. he was proposing to form a new board of directors, giving himself the role of chief executive. he says he intends to resubmit the proposals of the next share

china. saying we need to make sure foreign economies stabilize. this is her talking about china. m talks about the fact that it is now coming to the perception of investors in the u.s. based on the turmoil in january, we saw all the concern about outflows. is at stabilizing? >> i think it is. the .2 would make is that the chinese economy is transitioning tha from one focusing on manufacturing output to one that is service sector. yes, it is stabilizing, but the amount of that or how much stabilization there is is unknown. the first important thing is what is the impact on the u.s. economy. second, what does it mean ?or commodity exporters the point we would make is that if china's transition to a service victor driven economy -- a service sector driven economy, that's good for china, but not for exporters. another thing we would have here , in addition to the risk for the dollar,'s weakness and commodity exporters, and we think australian dollar, canadian dollar, brazilian real, will come under pressure. tom: i have to rip up the script. does that mean oil lower? >> in the short-t

china? gordon: i think that is what china is trying to do, to force foreign companies to create content in chinaould violate the january rules, but that's the only approach i think, in the short does because clearly china not want to have foreign generated content on chinese websites. it sounds terrible, but yes, i think that is the only thing companies can do right now. cory: gordon chang, thank you very much. turning to the u.s. markets. suggested no rate hike anytime in the near future. we take a look. words ringing in my head right now, and those words are "perceived cautiously." janet yellen was talking about interest rate rises or may be the lack thereof. taking a look at what has happened in the markets, the s&p, dow, nasdaq, all in a broad rally, going higher. look intraday on this day of trade, we can actually see that when janet yellen said gave a lift to the markets. right around 12:20 p.m., you sue that left. and then we never looked back. let's take a look at some of the .pecific stocks for tech stocks, you can see these were the biggest gainers, on the order of 2% or more. a court

iron ore is up. china is in the news and helping us to kick things off today is jeffery gardner -- jeffrey garten. he has a new book. jeffrey, welcome. we have a lot to cover this morning, but first let's get to first would news with caroline hyde in london. caroline: u.s. vice president joe biden is vowing to "wipe out this evil that is islam a state." he was at united arab emirates, where he spoke to troops. he says the u.s. has carried out 1800 airstrikes against islamic state since october. angela merkel says she hoping for talks to be cut,. angela merkel and other european leaders are holding an emergency summit in brussels today. they want turkey to do more to stop migrants. nancy reagan is being remembered as the first lady who nurtured the political career of her husband, ronald reagan. she died yesterday. the couple met when they were both actors. illegalaigned against drug use and became a advocate of stem cell research. she died at 94. global news 24 hours a day, powered by 2400 journalists in m

nunn: i think china has to on northack down korea. it is china's interest and they have said so for north korea to continue to develop a nuclear program. they are ready have weapons and the crucial part is when they match weapons of missiles. we have every reason to work with china. to get a lot tougher. i think we ought to have some very serious private conversations with the chinese about what we would do if economic sanctions really koreans toe north the point they collapsed because the chinese and our friends and south korea worry about economic the repercussions thereof. so we have to have conversation about what we would do and willoperating with china squeeze the rules on north korea, but having north korea with nuclear weapons and missiles to go with it is something that is against all global security and will be stabilized -- and will destabilize northeast asia. david: thank you very much. that is former senator nunn. there is a two-day summit that we are watching closely. next, a look inside of ray dalia's culture and the details

that is a quick look at the risk radar. china'schmark stock index has rallied above the 3000 level the first time in two months. that is after policymakers loosened controls on lending. the managing director, christine lagarde, has said that china is on track, but expects there to be more difficulties on the way. >> that transition will be good for china, and good for the world. like any transition, it will not go without bumps on the road. we should expect that, because there is a delicate balance to be struck between a deliberately slowing economy and reforms that need to be accelerated. >> the australian prime minister has set the scene for an early election which would see both houses of parliament dissolved for the first time in 30 years, unless the senate passes legislation to crack down on trade unions who he says are acting as a handbrake on growth. >> the growth slows and obstruction by the greens on this key legislation must and buying. -- must end. they will have an additional three weeks to deal with the legislation. pl

david is having a look at what else is going on. david: china'sstatement on friday, loosening the rules around margin trading, leading to gains there. let the give you the bigger picture. ,sia looking like this japan is shut today. there is not a lot of appetite for risk. break, healthy break, if you will. we've had five straight weeks of gains. this week still early on. i mention the shanghai composite, 1.7%. let me look at the line chart for that one. it reached 3000 a few moments 2999, the first time in two months, the prospect of more 3005 -- now -- now sending that one up. it is the brokerages enjoying the biggest gains at the moment, unsurprisingly given the new flow. brokerages,at the 8%, 9%, across some of these names. 9% as a whole, financials up by 1.7%. index higher the other markets story it is australia. we are seeing declines, some pressure at the moment. we will flesh that out for you a bit later on, all the political developments, but causing some pressure on the equity space across sydney. 76 aussie dollar, we topped $.76sense las

is overcapacity -- jack: china is part of it. u have to separate it and go around the world. china was in the rapid growth period it was in coming into its own as a major economy. the challenge was to manage one of the hardest economic transitions the country made economically going from a tightly state-controlled system to -- charlie: an export economy. jack: to a consumer driven economy. they understand intellectually what they have to do. it is hard. take something like excess capacity. it is shrinking their economic potential. they have committed to shutting down excess capacity. coal, aluminum. that would be a big hard thing to do. charlie: and you believe they are making the right decisions. the plan has committed to very significant steps. and the political will to withstand the bumping us that comes from doing hard things. china still has a lot of capacity. and their understanding of what they need to do. for a few months, china is out of tools. that is not the case. they have a lot of foreign reserves. iny have a small de

serena williams says her rival is showing a lot of courage. china, hong kong markets getting underway in about half an hour. singapore, taipei and kuala lumpur in time. we have a stronger yen, which is earnings outlook for exporters. the cost be currently unchanged. -- the kospi currently unchanged. expecting the rbs rate decision tomorrow. they are expected to keep their cash rate steady at 2.5%. we are seeing the market housing boom and the bank in little bit cautious about overheating .emand and it's one hour to trading in japan. let's take a look at some of the movers and japan. all of these stocks are plunging today after the ratings were downgraded. fujifilm cut to hold. mitsubishi has stayed down 1.8%. 2.2%, air rising today despite reports that pilots are going to rally in hopes of getting more active wage talks going on. following two point &, even when i be case securities raised its price target to 30,000 yuan from 27,000 yuan. sk hynix isakes -- down 1.3%. d: have a selloffs earlier in london. let's get over to sydney. paul is over there

china is boosting its military presence in the south china sea, creating bases on islands carved out of coral and sand. the concern is more than one third of maritime traffic flows timesh this region and 15 as much oil as passes through the panama canal. scott thuman examines the dangers of the green lagoon. scott only a few yea a cays in the spratly islands off the coast of the philippines and south vietnam were largely uninhabited, wanted only as fertile fishing grounds. today, converted to military outposts equipped with runways and sophisticated radar towers. adm. harris: china's intent to militarize the south china sea is as certain as a traffic jam in d.c. scott: admiral harry harris, jr., is head of the us pacific command. he came to capitol hill to raise concerns about china's intent. adm. harris: in my opinion, china is clearly militarizing the south china sea and you would have to believe in the flat earth to think otherwise. greg poling: you're seeing an entirely new island, where nothing existed before. scott: greg poling runs the asia maritime transparency initiative. the

strange step.ry that is pure china. in different directions, you have to sit back and wonder is it the real fundamental change? copper has been doing better. >> how is liquid iron ore trading? >> unbelievable. it is terrible. all these little traders woke up. the stock market plunging. we were off to the races. >> this great ball of money moving through china. it has gone through equities and housing. >> they are treating iron or like tomorrow. >> thank you so much, can half that of bloomberg intelligence. still ahead, the domino effect of oil. super low prices has led to a downgrade in the energy sector. how long will it last? we have some breaking news. julie hyman has her headlines for us. exelon whereand halting news. now it looks like they are not abandoning the merger attempt. making several different concessions to try to make a $6.8 billion acquisition of pepco happen. one among them sane pepco would not pay a dividend under certain conditions. it looks like exelon will provide a customer base rate credit. they p

he says china is easy to work with. >> china's approach to development is very successful, when they get involved and aren't just interested in natural resources. that's because it wasn't so long ago that china itself was a developing country. now it's an emerging economy. so, the chinese know how development works. they've built up industry in some countries, like ethiopia which has been largely neglected. nearly all countries in africa could provide for themselves and even become export nations if they made use of their renewable energies and natural resources. so jobs need to be created, and that's best done through farming. it needs to be an integrated approach, including training, and with the necessary technical equipment so that things can be produced inside the country. with renewable energy now, africa mustn't become totally dependent on importing power generation plants, they need to be made in africa. especially in rural parts of africa that are not yet connected to the power grid, smaller regional grids need to be set up. there needs to be at least a modest power supply so

neighbors, these things are not likely to change the reality that china ist, embedded in the world supply chain. >> please give us some specific examples of what this would actually mean for the rest of the world. >> well, china's economy is shifting towards more economic consumption and then the masters of the people coming from the countryside would be given household registration with access to healthcare and education for their children so they are likely to boost up the growing internal consumption already during the past five years or so. indeed, services have already overtaken manufacturing as the major contribution to the economy and then the rate of growth or consumption of china, in fact, exceeds the rate of growth of other developing countries so china is going to ease the tax burden on the consumption and that means there was tremendous opportunities for the import of branded goods from the rest of the world. and of course china's demand for resources is likely to continue to decline and therefore there will be a further and continuing reduction

the question is which one is going to move. china's continued growth is at the center of world growth right now because within europe and the u.s. you're seeing the kind of crab-like sideways movement, a little bit of forward movement in the u.s., but in europe it is still undecided. the question is can the problems that are being faced in the developed countries be solved with fiscal and monetary policy and that increasingly, even the experts are saying those days are gone and that you have to reach structural reforms. the question is can they be done in u.s. and in europe. china is attempting to as it tries to climb out of this middle income trap, and that's why you're seeing this deal 6.5% being stressed at the lower end because that would bring it to 2020 goal of being around that 12,000 per unit income that is typical of where the middle income trap kicks in >>> premier lee also talks about the inadequacies in the government. are we about to see a ministerial shake up particularly in line with president xi jinping's anti corruptio

how china is becoming a rising force in world stocks. what about china's doomsayers and how to deal with some of those pessimistic views. ♪ to china'st's get meeting this weekend, rising pressure on the leadership to balance growth and reform. great to see you. what will be the headline? will be headlines about supply-side reforms in stabilizing growth. issues,e a host of environmental issues, because beijing as having smog. rishaad: as we have been seeing this morning. orl these just be headlines will they actually have substance? a good is indeed question. we have heard about supply-side reform for a while, so everybody is looking for some specifics. the government has out find -- steel industrye cutting 10% of excess capacity, but how will they do it. what are some of the measures to make sure that this will actually go ahead? also, -- rishaad: the excess capacity is actually a big problem, isn't it? you can only address it if you make a lot of people unemployed. have unemployed people, they are unhappy, and the central government does

google is blocked in china, apps are blocked in china. is there a way forward for google in china? go: i don't know. it is a tricky issue. i do believe that it may not be the end of it. i personally don't think that it is the end of the road for google in china. purely thinking for how useful google is and the fact that , people in china who are at university study abroad. they depend heavily on google even despite the fact that it is blocked. that i just think at the end of the day someone is going to , figure out a way to solve whatever issues exist to bring all of this innovation to the people in china. emily: how satisfied are you with the pace of innovation? hugo: i'm quite happy with the pace of innovation. i think especially because i understand how hard it is to make progress when you are supporting hundreds around the world. i think android is entering a new phase by expressing itself through some of the different screens in different types of devices. there is basically an entirely new and completely unexplored galaxy of options here. emily: google doesn't make money off o

is in sacred areas. translator: who will protect the environment in the west and in china? t is government responsibilities. but the tibetans don't think of it that way. if you think of it that way, you are not buddhist. you are the protector. no matter if you are a newborn or 80 years old, you are all protector. you have responsibilities. allives should be protected. fred: in some districts, local governments are recognizing the sacred mountains, and some are even hiring tibetans to take care of the national nature reserves. translator: the cultural values of buddhism are very comforting the schars of conservation. i felt at last we found a way, and i began to gain confidence in humanity. these tibetan people are not wealthy, yet they can still think of other creatures. not just other people, other creatures. this is altruistic behavior. if they can do it, there's hope that other people can do it as well. [bells ring] gary: i've made a whole series of films about the beginning of environmental movements in different parts of the world at different times, and in each of the