they can all have their practices accepted in mainland china. further i will see if we use the prices, the financial crisis which broke out in 1997-98 as the second to the international financial crisis which broke out in 2008, for example, in both these financial crises hong kong stood the ground very firmly without succumbing to the pressure from abroad. this is partly because, most of because of the joint efforts of the hong kong government as well as the support from the central government. without the massive unconditional support from the center government, i would say hong kong probably would have succumbed to the pressure like other countries in this part of the world. >> history has demonstrated itself, the success. looking into the future when beijing has envisioned for hong kong is the part of the greater bay area strategy, very ambitious, all nine chinese mainland six plus hong kong, and that the combined gdp of 1.25 trillion u.s. dollars. that's roughly the size of the gdp of russia. so very ambitious plan, but did you think it's co

but because we were still against the communists in mainland china, he did impose martial law. 0bviouslyatic, but it was to protect taiwan. his goal wasn'tjust to make taiwan independent. he wanted to achieve freedom and democracy for the whole of china. he never gave up. he told us, "don't ever think we've lost the mainland." "marxism will eventually fail." history proved him right. chiang kai—shek died in taiwan ini975. general hau pei—tsun went on to become the head of taiwan's army and eventually became the country's premier. next, injulyi961, rudolf nureyev, one of the world's greatest ballet dancers, defected to the west while on tour in europe. i remember him as a great dancer — as a great personality in many ways. he had enormous technical prowess and enormous charisma. this kind of stylistic dancing, with unique movements and fantastic stage presence, is something we have not seen before and very rarely since. it shows you, typically, the choreography and the genius of rudi. i travelled to russia a lot in those days. when i went to leningrad, when i went to the performances at t

and that should be concerning to anyone in mainland china. es china have a back door that says, no, we're not going to give it to the fbi, even though that terrorist phone was his work iphone that was owned by his county employer. >> yeah. dead, guilty, and it wasn't even his phone. >> but now it looks like china is getting a back door. >> my understanding is that the problem here is that if you have all of this information on china and the chinese government says they want it for whatever reason, and you're caught up in the chinese courts litigating that dispute, you better bet privacy is going to come out in the losingan end. and i really have wrote a column about this week. it has been so annoying. all of these columns, all of these headlines about china's going to lead on globalization. china's going to lead on climate. china's going to lead on international diplomacy. this is a regime that just let a nobel peace die. there is a regime that did that before. it's nazi germans. so the idea to have people elsewhere applauding when the preside

translation: you could say leading mainland china was the lowest moment in his life.eat. i worked with chiang kai—shek very closely for five yea rs. kai—shek very closely for five years. i kai—shek very closely for five yea rs. i really kai—shek very closely for five years. i really respected him. he was very strict. but he was always very good to me. chiang kai—shek‘s life was very ordinary. he would get up life was very ordinary. he would get up every day at 6am. he didn't smoke oi’ up every day at 6am. he didn't smoke or drink. he was very disciplined. he issued a lot of orders. to be honest, so many that it was hard to keep track of them. some people say chiang kai—shek was a dictator. but this is unfair, and it is slender. but because we were still against the communists in mainland china, he did impose martial law. this, that is antidemocratic, but it was to protect taiwan. —— slander. his goal was not just protect taiwan. —— slander. his goal was notjust to make taiwan independent. he wanted to achieve freedom and democracy for the whole of china. he never gave

this is being reported in hong kong very freely, which is different from what's happening in mainland china bureau said many people they talk too don't know who liu xiaobo is. he's very sympathetic in hong kong for many years in part because in 2008, the document, ma nifesto, because in 2008, the document, manifesto, that he signed, pro—democracy manifesto for china if spouses and a lot of the liberal values hong kong already enjoys, for example freedom of speech, association and independent judiciary —— espouses. these are simply some of the freedoms hong kong people already enjoy and because of that there's a lot of sympathy for the man who is trying to espouse them for mainland china. juliana liu in hong kong, thank you so much forjoining us. let's return now to the twists and turns in washington over the investigation into the trump administration's contacts with russia, including those by his son donald junior. 0ur correspondent david willis is in washington. good to see you, david. so much to talk about, let's start with the new head of the fbi, chris ray, saying head of the fbi, chri

decision 25the years ago to enter mainland china, it took me many years to make that decision. , but each time we only get more optimistic about the long-term future of china. david: how often do you check your stock price? >> very seldom. david: what is it now? >> i did not check this morning. $20 for hang lung group. my job is to manage the business, not the share price. david: you are very close. ronnie chan, thank you for joining as. this is bloomberg. ♪ ♪ >> from our studios in new york city, this is "charlie rose." charlie: we begin this evening with north korea, american intelligence agencies estimate -- that northa oh korea will able to launch a reliable missile that could reach the united states within one year. it had previously been thought that pyongyang was a roughly four years from developing long-range missiles. however, in a test earlier this month, north korea demonstrated capabilities of striking alaska. it forces officials to realize they miscalculated the

but 7600 stores and counting, this is a huge chain in mainland china.w branches bring growth or drain the cash flow? you could do a little bit of both. 30 years ago they had one store. now they have over 7000. that is in 30 years. they want to 600 stores this year and that will be quite significant. the problem is that they then start to cannibalise their own stores. what we are focusing on at the moment are the first tier cities, shanghai, beijing for example. but when we dropped to the legatees, it becomes a more challenging. how about the stigmas of the food scandals from years ago. has that been forgotten? i think it has. consumers are rolled by ruled by their stomach rather than their head. 0nce by their stomach rather than their head. once they are hungry, they will eat. there are occasionally food scares but they have been put in the past and they are focusing on the future. volvo, owned by china's company has become the first carmaker to announce it will no longer make petrol or diesel only vehicles. from 2019 all of their models will be electri

guest: we continue to see good progress in our mainland china business in the first half of the year.the outstanding features was getting approval for what will be called hsbc securities, the first foreign bank majority-owned security companies and mainland china. that for us is a huge strategic step in helping us connect international customers with a security market in china. the approval will get that venture up and running before the end of the year and build from there. in terms of core banking and retail banking and global markets business, we continue to see progress coming through mainland china in the first half of the year. growth continues to be pretty encouraging and clearly we have taken a strong focus on underwriting and it risk management in the marketplace. manus: you think the capital flight story is done and that wealth management adjustment has been handled well? have we passed the worst of the potential storms in china? that's an impossible question to answer. a great deal depends on central monitoring all see is being managed and that varies from time to time. the

hong kong kicks off a new week with a new chief executive and a new trading link with mainland china.an exclusive interview with the bbc, i speak to the new head of the philippine central bank. good morning asia. hello world. it is a monday. the start of a brand—new trading week. they you to join us for this week of asia business report. it was a busy week in hong kong, with the 20th anniversary of the handover. a new chief executive has been sworn in and is building stronger ties with the mainland. the link will allow foreigners access to the third largest world market. juliana loo tell us how it the linkup will work. —— liu. according to the central bank to hong kong and china, from today, foreign investors will be able to buy chenies bonds by hong kong. that is northbound trading from hong kong to china. —— that v programme has not yet been announced. —— that leg. it is institutional investors that will deal to make these trades. the likes of banks, insurers, and so on. this is the third largest bond market in the world. it is worth 9 trillion us dollars. at the moment, foreign inv

give more details in court on tuesday. 0ne silicon valley start—up has now reached the shores of mainland chinadreds of millions of customers. stripe, a digital service that accepts payments over the internet, is going against many other companies. they make up 90% of the mobile wallet market in china. joining us is the president and co—founder. how big a game changer is best for your business, partnering with these companies? good morning. as you can imagine this is something we have always wa nted this is something we have always wanted to do. stripe provides infrastructure for the online economy, we get businesses to set up and have the tools to accept payments, if you're online you're not just payments, if you're online you're notjust addressing a local market, you are serving notjust addressing a local market, you are serving a notjust addressing a local market, you are serving a global customer audience and one of the things that often holds you back from trading globally is payment infrastructure. we are very excited about the news this week, in an industry first out of the box, they can

the deal would help the company reach its target of operating 5000 stores in mainland china by 22 andunced it will sell most of its assets in the us to try to raise cash and focus on its operations here in asia. the firm has been hit bya here in asia. the firm has been hit by a collapse in commodities prices and allegations of improper accounting. the singapore —based company has lost 75% of its market value this year. its share price has plunged by half after the company warned of a quarterly loss of around $1.8 billion. earlier i spoke to simon littlewood, the president at consultancy house acg about why the company is in such trouble. they have made one mistake after another. it is ironic singapore places so much emphasis on commodities trading asa much emphasis on commodities trading as a core industry. there are about 17,400 people employed in the industry in singapore. it has compound annual growth of about 7%. the trade minister last month was talking about how important it is. noble has got in all kinds of trouble by basically expecting commodities to continue to go up. it is

stores, the deal will really help the company reach its target of operating some 500,000 stores in mainland china as the seattle —based site —— starbucks announced its profit, income fell about 8.3% untiljuly which matched market expectations and of course the latest results come, really, the first under the new chief executive kevinjohnson who took over from the co—founder how witchell in december. he describes the china buyout as part of the firm's long game to deal with calling growth in the us. we know of course starbucks is the world ‘s largest coffee chain, it has really been affected by reduced footfall in america's high street and shopping centres and lots more consumers america's high street and shopping centres and lots more consumers are shopping online and hence the move to target china and asia. thank you. in other news — air france—klm is buying almost a third of virgin atlantic, leaving sir richard branson's parent company, virgin group, with a minority stake in the airline he founded. air france—klm is taking a 31% stake, worth £220 million, in virgin atlantic as part of a four—wa

in no longer operates in mainland china.rt has ruled a bankruptcy case brought by the r.b.i. against as our steel will continue.l will they have more than $6 billion of loans and insists it is making serious efforts to revive operations and be paid debt. they are trying to force bankruptcy proceedings. come: plenty more still to with asia's first major market open moments away. shery: and of course, we did see the msci regional benchmark at the highs level since 2015. we look at the details of how they will start trading with sophie, written, watching the open in australia, tokyo, and korea. sophie kamaruddin, watching the open in australia, tokyo, and korea. sophie: take a look at futures in sydney, pointing slightly higher here. margaret's are going to be watching the rba minutes to see whether that central bank will join the hawkish game we have otherbserving from central bankers. japan is back online, looking to knock off 30 points at the start of the nikkei 225 trading session this tuesday. the earnings growth is contin

china wants it because of hydrocarbons, oil, natural gas, which they do not have on mainland china. number three, china will seek to marginalize the united states, push us out, form stronger attachments to the nations of that region. they want to control the trade, the hydrocarbons and all of the asian periphery. >> are they successfully getting into position where they can deny us access to that part of the world? >> they will if we let them. this is why we need a capable fleet, which we need sea power. hugh, we're not going to find a land war in asia. we're not going to send our army to fight shine nah. but we will be shoulder to shoulder against them and perhaps over time operate with them in the maritime space. that's why sea power matters in asia. >> you'll be on the radio with me this week talking about "sea power. 11 years of sea, the same view the ancient mariners have, and i like that part of it. at the end of it, you left me thinking, do you have political ambitions? ever going to run for anything? >> i've served my country for 37 years in uniform. i look for other opportun

but a financial investment in property development outfit in mainland china upping their stake to 14.23%st over one million shares, so we will see if that gives a boost to investor sentiment today. rishaad: right. hsbc. it is among the most traded 2808s in hong kong, btv shows you what has been going on here. 1% in therd of premarket auction period. we are looking at the daily traded volumes. this is the most traded stock in hong kong. there we go. we had that spike up, reflective of selling pressure. the day britain voted to get out of the european union. to today, andut again eating traded heavily. here we have it. this is the move of in hsbc since the start of the year, up 55%, showing you what is going on volume wise and regard to that. ok, there we have it. let me tell you about what we have coming up, the central bank in china, what is in the works for the pboc? how it's control is spreading. that is next. this is bloomberg. ♪ so we need tablets installed... with the menu app ready to roll. in 12 weeks. yeah. ♪ ♪ the world of fast food is being changed by faster networks. ♪ ♪ data,

days people in mainland china have a different opinion to people abroad.e know relatively little about him so there is no way i can give a comment on what he said. criticism of beijing is focused on the government's refusal to grant the activist's wish to go abroad for palliative care. doctors saying he was fit enough to do so. the international community thinks this disturbing. no regrets coming in about awarding the prize to him. the struggle for human rights is peace building and that is why the committee i chaired awarded in the peace prize. china tonting call for release his widow. as his spouse she has been held under house arrest for years. region, a hong kong court has disqualified for produce democracy politicians disqualified four democracy politicians. they will modify their oath to china. the disqualifications mean the pro-democracy camp has lost its veto power over major decisions. it is time now for business. i'm joined in the studio. parisstarting here in which is celebrating another anniversary, of the bike sharing service. >> paris is the

i don't have the numbers yet, what i do know is two policy banks from mainland china will be issuing icultural development they, a china policy bank and another bank offering foreigners the issuing bonds for potential foreign buyers today and tomorrow. this will be baby steps and then we will get a sense of this event. strongly talked about, the relatively high yield in mainland china seems to be in high demand. we had some other quotes coming from the deputy governor of the pboc, he said there are a lot of foreign issuers too that have strong interest in cny bonds in the mainland. there are a couple of different avenues to participate in. rashaad: still ahead of this hour, there is no need to worry about the trillions of outflows from china. will be talking about the breakdown of why. ♪ india takes a huge step to tackle its informal economy. we're going to get an assessment of how it is going with moody. this is bloomberg. ♪ ♪ this is "bloomberg markets: asia." rashaad: let's have a look at the biggest headlines. shares in australia plunging over 11 first. the reason, it has pulled o

. >> for the first time, foreign fund managers can trade in china without opening mainland accounts. china is the world's third-largest that market with nearly $9 trillion. officials are using hong kong's are ready established positions as a major financial help to ease access to the market. let's take a listen to hong kong's chief executive. in theher new chapter mainland and hong kong. we are allowing overseas investors to allow access for the first time through infrastructural connection established between the mainland and spawned markets. newsenty of good economic in europe. europe's unemployment figures holding their lowest level since 2009. oil and gas performing especially well. the frankfurt dax up over 6/10. let's take a look at more of business headlines for it teslas new model for he has passed all regulations for production according to ceo elon musk. in 2016, the company produced just 85,000 vehicles. numberys he expects that to reach 500,000 in 2018. discount cursory chain is set to spend 5 billion overhaul its stores around the world. seeking underwriters offering.ic d

moving onto the south china morning post — it's reporting on the heatwave that has hit much of mainland china known as the "dead sea of china" in sichuan as temperatures reached as high as 39 degrees celsius. and finally the japan times. it leads on the story about the japanese prime minister shinzo abe who is currently being questioned over claims he exploited his political power to help a long—time friend. the paper discusses how the leader is facing a battle with losing the trust of voters. more on that story now: japan's prime minister shinzo abe is facing an uphill struggle amid plummeting ratings and a growing lack of confidence in his leadership. the latest public opinion polls suggest support has dropped to less than 30%. rupert wingfield hayes is in tokyo. talk us through the story a little bit more. why is it proving to make him so unpopular? his reputation has been tarnished by a couple of different scandals. one earlier in the year about a school being construct did weather was a sweetheart landed deal, a piece of land was sold or about a million us dollars and it should have been

waiver countries, but remember that you will definitely need a visa if you plan to travel on to mainland chinanese new year is always a good time to visit, though you might need to book well in advance, as hotels are busy. remember, that summers here can be hot and humid. bear that in mind too. there's no shortage of cheap and effective ways to get around hong kong island and neighbouring chau lei, but if you're looking for something a little more traditional, why notjump aboard one of these iconic trams, also known as ding—dings. the trams operate on six routes every day between kennedy town and all of the main tourist attractions on hong kong island. there you go, ding—ding. if you want to get away from the hustle and bustle, don't forget hong kong is surrounded by dozens of smaller, less developed islands, so it's often just a short ferry ride away to some peace and quiet or an empty beach. stay with us, because still to come here on the travel show: as new security measures stop you boarding some flights with laptops and tablets, lucy's here with clever tech to take on board. what are the

moving onto the south china morning post, it's reporting on the heatwave that has hit much of mainland chinaa lake known as the "dead sea of china" in sichuan as temperatures reached as high as 39 degrees celsius. and, finally, the japan times leads on the japanese prime minister, who is currently being questioned over claims he exploited his political power to help a long—time friend. we were reporting on that earlier. the paper discusses how shinzo abe is facing a losing battle with voters. and that brings you up to date with all the papers. one of the pope's most senior advisors is due to appear in a court in australia, to face charges of sexual assault. cardinal george pell has returned from rome saying that he is innocent, and will clear his name. as our sydney correspondent hywel griffith explains, the case is the latest controversy to hit the catholic church in australia. in george pell's hometown, people have become used to confronting the past, and dealing with the spectre of abuse. ribbons mark the places in ballarat where members of the christian brothers order sexually assaulted

about why, with the singer about to embark on an asia—wide tour, no venues have been scheduled in mainland chinahat it called, "bad behaviour." hejoins a long list of blacklisted musicians, including oasis and us band maroon five, though most have been banned for perceived political statements, rather than behaviour. i also told he has been told to his conduct to become a singer truly loved by the public. does this sound familiar at all? a public body puts the naming of one of its vehicles up for a vote, and the people doing the voting choose a name that is a little unusual. it happened here in the uk, and now it's happened again, this time in sweden, as the bbc‘s tim allman explains. do you remember boaty mcboatface, the british polar research vessel that never was? well, meet trainy mctrainface. apparently, anything the brits can do, the swedes can do better. the local rail operator, along with a national newspaper, put the name of the new train up for the vote, and the great swedish public, in their infinite wisdom, decided trainy mctrainface was just the ticket. it is fun, it feels like boat

hopeful began with a note for investors with the opening of a new bond link to mainland china. bond connects between china and hong kong has finally gone live, the third that gives new access to the mainland's $10 trillion debt market. live atond connect went least in one direction, heading north into china. no timetable according to dignitaries today for southbound, but it is an inevitability. is going to happen -- it is going to happen. nearly $10 trillion bond market, but less than 2% of that is in the hands of foreigners. there's lots of potential. a lot of risks, as well. a lot of questions about transparency in china's corporate bond market, and the issuing of ratings, whether they are a true representation of the risks. -- thechinese market chinese bond market is a bit like the chinese stock market. they can change policies of the drop of a hat. we saw a recent plunge in yields because of a crackdown that no one saw coming. foreign investors are a little bit unsure whether to get in. anchor: north korea has fired another ballistic missile. it is the 11th test this year at

mainland. china condemned the launch and urged restraint, but president trump expressed frustration with beijing last night, criticizing chinese leaders over trade, and then saying: in a visible show of force, the pentagon ordered two air force b-1 bombers to fly over the peninsula. they were accompanied by south korean and japanese fighter planes. at the same time, u.s. and south korean forces conducted joint live-fire exercises. ploy four more units of thell advanced u.s. "thaad" anti- missile system, in addition to the two already in place. the pentagon reported a successful test of the "thaad" system in alaska last night when it shot down a medium-range ballistic test missile launched over the pacific. north korea said today its missile program is a response to threats by what it called" american imperialist beasts." in a significant deterioration of diplomatic relations, russian president vladimir putin today confirmed that the u.s. must reduce its embassy staff in russia by 755 by september 1.

pacific command and our allies like a single ground-based idiot intermediate range missile and hold mainland china at risk. this question can be left to another day but the united states cannot afford to take a one-dimensional view of old trees because of threats we face are no longer one-dimensional. what we cannot afford is to stand by like shops while vladimir putin cheapens the inf treaty openly and notoriously. russia as it always does is marshaling strategic advantage against the united states through a series of incremental provocations, calculated to operate just below the threshold of retaliation. deploying an intermediate range cruise missile is perhaps the most provocative step as yet because it would eventually allow russia to hold all our bases, all our troops, all our allies in eurasia risk. the time has come to put an end to this. we cannot impel the bear to return to his then, we can at least lay traps in his path around the world. thank you all. [applause] >> thank you senator, that was a great way to kick us off. i thought i'd start with a couple questions and open it up to the a

the goal is to own 5,000 stores in mainland china by 2021.ced a fall in income for the three months tojuly because its growth in the united states has been somewhat slowing down. so i guess this big announcement in china going to prove to investors how important china is and how it's going to grow even more in the chinese market. thanks. let's stay in the region. asian stock markets sagged on friday — that's after us tech shares retreated from recent rallies. in tokyo, the nikkei closed lower as the market was dragged down by some disappointing earnings reports and that fall in us technology shares. across the pond, the tech—heavy nasdaq's streak of all—time high closes ended thursday with apple, google—parent alphabet and netflix shares all slumping. one bright spot though over in china — with stocks ended higher on with the shanghai benchmark index recording the sixth consecutive week of gains, bolstered by recent solid economic data. shares in europe ending on a muted note. in a few hours, the united states will announce second—quarter gro

mainland china's consumption is a very big part of the hong kong economy.the case for the next five or 10 years. francine: christian, how vulnerable is china financial? lly? christian: it was all laid out correctly the way the situation is right now. can they finely calibrate their way out of reducing leverage and particular the corporate and maintain the 6.5% growth? inn we have congress october, we are looking whether there's any indication from the president that he may be willing now that he has consolidated power now that the economy has shown it can growth it needs to to lower possibly the 615% because it's a difficult to attain if you want to attain reform and deleveraging. jing: in the next five years, the critical challenge facing the chinese leadership will be to deleverage the economy and basically continue to undergo the rebalancing away from investments to services and consumption coul. been need to have to tolerate near-term growth basically lower than the previous couple of years. in the next five years, i believe that will be several importa

. —— in mainland china. over time apple has been given toa was over time apple has been given to a lot of chinese government laws and regulations on all sorts of things. for example start of the year apple removed the new york times at comet apple store inside china, the new york times is banned in china because of its reporting and now the new times app is longer available on the apple app store. it is also decided to allow or give in to the chinese government's request to the chinese government's request to install data servers in the chinese mainland. it is tried to reassure its government customers that it will keep data but many people think this will mean that apple will hand over some of that data to the chinese government when requested. now we have apple's announcement or its acknowledgement that vpn apps are also not on sale in the app store so itjust goes to underline this ongoing demand by the chinese government for apple to give in to certain laws and regulations and apple says it simply is foll

friday, but the week began on a hopeful note for investors with the opening of a new bond link to mainland china♪ >> the long-awaited bond connector between china and hong kong has gone live, it is the third link and gives offshore investors access to the mainland's market. >> ni 20 a.m. is when the gong -- at 9:20 a.m. is when the gong banged. no timetable according to the dignitaries today for southbound, but it is inevitable that it will happen. right now market conditions favor going northbound for foreign investors, only going into china. as he said, $10 trillion bond market, but less man 2%, about 1.5% of that is in the hands of foreigners. though there is a lot of potential. a lot of risk as well in questions about transparency and also of course the issuing of ratings, whether they are a true representation of the risk. >> the chinese bond market is like the stock market, there are issues and of the government has no to completely re-change the market. we have seen a plunge in yields because of a crackdown that nobody saw coming. as a consequence, foreign investors are unsure whether to

was going to take private its hong kong shares last year, it promised it would be re-listing in mainland china. that was the deal. would have 12% returns. it doesn't look like it's happening, because the government doesn't want another have really leveraged company to list in china. it's not a quality priority. the government already said wanda would not be able to invest in overseas assets. so wants to buy this essentially troubled real estate developer right now? picketing get the good valuation it was hoping to achieve. haidi: reading the tea leaves on policy and what it means for the other conglomerates, i want to play sound from our interview trading snp global investor. they suggest this could just be the beginning. >> it does seem like the regulator is putting more scrutiny on them. perhaps the funding, domestic funding of these acquisitions may be temporarily put on hold or could be primarily put on hold. we have to see what the regulators do on a more permanent basis, these actresses since will be -- but it seems like for now they will be put under more scrutiny. todi: is this a warni

, news inday morning mainland china saying sunac and wanda will be investigated for financing productsked out. 's market cap is only $8 billion, and the latest deal with wanda is over $9 billion. sunac is a heavily leveraged company. if financing runs dry, stockholders are left with a worthless piece of paper. rishaad: if you look at ever grande, we tend to be very with chinese developers, but they have been trying to do leverage. what else have they been doing? >> they have not been making those overseas acquisitions. also, they have been very nice to the government. 14% percent stake in a $1 billion loss, and the whole deal is $4 billion, so a huge loss. they have been nice to the government, so they are the good kids on the block suddenly. rishaad: what are the broader prospects for mainland developers? >> you need to play nice with the government. that is the biggest story that comes out of it. if the government wants to come into real estate development, give them a good price. rishaad: there we go. just sticking with evergrande for a moment. it has a triple a rating, while it is

the 7% comp we posted in china and the acquisition we announced yesterday to make all of mainland china that around a company operated model we think having two major growths in u.s. and china is going to fuel the company forward. my charitable trust owned starbucks forever. at the same time i try to figure out why i suddenly have to worry about data away from starbucks we're talking one of the great growth engines of our time i didn't think it might continue and causing your numbers to come down why didn't you take them down last night instead of adding a full quarter knowing that's going to happen last time. >> i understand jim. we factor that into our q-4 guidance we're in the middle of our physical year planning process including the acquisition of east china and so as we land those strategic actions as we put this aop together we'll be very clear about our guidance we're three weeks into a 13 week quarter. and took precautionary guidance and a lot can happen >> you talk about retail disruption on the call everybody understands that but you also talk about on going macro pressures t

strengthen the economic ties between hong kong, which is a huge financial of, and -- hub, and mainland chinai think there was a stronger bargaining power between hong kong and china at the onset of this relation to because hong kong was at a time where it's economic growth and its economic strength was a much bigger boom to china's overall economy. as the growth of china eroded the negotiating power hong kong has? matt: in 1997, hong kong was almost 20% of china's overall gdp. they had a lot of room to stand on and negotiate from. now, it is like 3%. china has grown tremendously over the past 20 years. they have a lot more leverage and they are not going to necessarily stand for some of the anti-chinese rhetoric we have been seeing recently. we have seen some crackdowns where booksellers selling anti-communist paraphernalia and works get abducted and disappear and wind up apologizing in the mainland a few weeks later. there are questions about whether hong kong has diminished in terms of his leverage. let's remember it remains under british common law. free speech as an independent judiciary