google will still be blocked in mainland china.google will still be blocked in mainland china. if you look at the overall relationship between china and india, and you look at the suspicion regarding chinese companies, in australia the recent blocking of huawei, how is google going to handle the data privacy issue, for example, beijing having access to all the data? could there be an amendment that eventually, google will be unblocked in china? that seems like it would bea in china? that seems like it would be a logical conclusion. why would google do that? something we don't know about? again, if you look at the relationship between the us and china issues of security, certainly technology rivalry, is going to result in more blockages, more compensation. this is a potential minefield. especially now with this vote that trump has in the senate by making a compromise zd. this could pose a bigger problem in terms of deals going forward. absolutely. i think this is the beginning of more to come in this area. certainly anything to do w

. >> remembering that that caused friction and conflict between south korea and mainland china and mainlandetaliated and reduced the number of mainland visitors to korea, south korea. and probably caused the economy somewhere around .5% gdp growth last year. as these talks progress, if that were revisited and there was some amelioration, we could start to see the mainland tourist arrivals pickup and that eouth.boost consumer spending in haslinda: we have also seen construction companies gaining. what other sectors are we looking at, apart from tourism? >> i think investors have really been trying to scratch beneath the surface and see how to take advantage of any thawing in the relationship. the one aspect which has really gathered momentum and has consensus is any improvement in the relationship between north and south korea via these talks with the united states would be cross-border investment, mostly commercial, not so much a social transfer, as we saw around the reunification between east and west germany. so commercial investment and largely infrastructure, because that will be the fi

. >> reporter: mainland china is critical to apple's success. company doesn't give us hard numbers on that country in particular but estimates of about 15% of annual revenue apple, of course, has vast manufacturing operations in china. most iphones, remember, are assembled there and shipped around the world apple ceo tim cook has made china a real priority, making frequent visits, making big investments in companies like ride hailing giant didi. he has been talking to the trump administration, impressing upon them that trade wars will hurt the american economy the administration has told cook it wouldn't place tariffs on iphones. apple declined comment on that report but it's consistent with what cook told cnn earlier this month, saying that i don't think iphone will get a tariff on it, is my belief, based on what i've been told and what i see i just don't see that. munster says china would want to be careful about socking it to apple here after all it's a big employer over there, with more than 1 million chinese working in some way on apple prod

but some markets, like russia, mainland china, you're required by regulation to keep the data and theechnology within the four walls of those markets. that's exactly what we do. we have the ability to have scale in those markets where we do it. the ability to process and manage that data and an lalytic. >> interesting a lot more to discuss. jeff, thank you very much for join the show today. >>> now coming up, we'll speak with celebrity chef wolfgang puck as he prepares to launch a new menu at his london restaurant stay tuned the first of alzheimer's disease is out there. and the alzheimer's association is going to make it happen. but we won't get there without you. visit alz.org to join the fight. theseare heading back home.y oil thanks to dawn, rescue workers only trust dawn, because it's tough on grease yet gentle. i am home, i am home, i am home >>> well, steak may be wall street's hottest commodity a small eatery minutes away from the new york stock exchange has launched the wagyu steak sandwich containing five ounces of beef, it cost around $185 and all products are sourced from

. >> reporter: mainland china is critical to apple's success and a very important part of its financial future. analysts estimate the country accounts for about 15% of the company's total annl revenue and apple has vast manufacturing erations in china. most iphones are assembled there and shipped. apple's ceo tim cook has made china a priority, t visiting country and making big investments in chinese companies like ride hailing giant. the "new york times" reports that the trump administration told cook it wouldn't place tariffs on iphhoesh today peter navaro countered he had no knowledge of any such exemption. apple could gett caughn the cross fire in other ways. apple is concerned that the chinese government could cause delays in the supply chain in retaliation for the president's proposed tariffs. some analysts say they aren't too worried. >> we estimate 100 million in cost could increase. so it's not cost perspective. the worry is from the supply chain pefpective. asow i think it is more of a scary headline than a reality. that is what investors are concerned about. >> analysts note

. >>> and big plans for mainland china and starbucks. craze is just now catching on there. >>> that's the "cbs morning news" for this tuesday. i'm hena doba, have a great day. ♪ g news" for this tuesday. i'm hena doba, have a great day. ♪ . >>> live from the cbs bay area studios in is kpix news. >> good morning. you are taking a look at coit tower. red, white and blue. it's election day. it's tuesday. june 5th. >> election day finally here. this is an exciting day for political nerds. >> thank you. that's good. >> everybody should care. >> there's a lot of thing that are on the ballot. >> yeah. >> that will affect everybody. >> we will cover some of them throughout the morning and the continuing coverage tonight. first, let's talk about the weather. >> yeah. it's a little windy. it won't prevent anyone from getting out to vote. it'll be cooler than what we had yesterday by a few degrees. slightly cooler than average and that morning marine layer. you can see that here on this live view of sales force tower. lower -- below the tower we se

problem no big chinese companies were more eager to invest in africa or in latin america than in mainland china so basically he's not that meeting the fact that this was all about. capitalism and just destroying sometimes so i thought of it so i kind of you talk about democracy demon but marx may have been a mistake marx and just was mistaken in the past have no law that when i think workers have a model and capital has capital just moves their own i. agree on that last word mark before we go to the yeah this the big thing is this the pundits were furious with donald trump for sitting down they were furious for some reason that the american flag was flown next to the north koreans like trump is meeting with a brutal dictator u.s. leaders meet with brutal day tears although you don't have a problem with obama and hillary clinton with mohamed bin solvent in the saudi flag so what's the deal here it's pure partisanship it's political theater the ones that were really didn't in all of this where the south koreans they were treated like children in all of this and the argument was all trumpets is ab

and the south china morning post has a story about how people of hong kong living on mainland china mayers are working, retiring or studying north of the border. now babita — a police chase with a difference is trending online. ever heard of a tank chase? well take a look at this — an american soldier allegedly stole this armoured vehicle from a base in richmond in virginia, before leading police on a two—hour—long pursuit around the city‘s main roads, at speeds of up to 65km/h. footage posted on social media, showed more than a dozen police cars, in pursuit of the personnel carrier. the incident ended without injury. an order of mexican nuns could be the unlikely saviour of a critically endangered amphibian. they‘ve partnered with conservationists to rescue the axolotl, a salamander unique to mexico that has been almost wiped out by pollution and over—fishing. 0ur science correspondent victoria gill reports. lake patzcuaro, central mexico. the only place in the world where you just might find a critically endangered axolotl local known locally as the achoce. this vast lake used to be t

problem no big chinese companies were more eager to invest in africa or in latin america than in mainland china so basically he's not that meeting the fact that this was all about. capitalism and just destroying sometimes so i thought of it so i'm kind of you talking about democracy demon but marx may have been a mistake marxist senator just was mistaken you know because have no model and i think what us have a model and capital has capital just moves around us agree on that last word mark before we go so the yeah this the big thing is this the pundits were furious with donald trump for sitting down they were furious for some reason that the american flag was flown next to the north koreans like trump is meeting with a brutal dictator u.s. leaders meet with brutal day tears although you don't have a problem with obama and hillary clinton with mohamed bin solvent in the saudi flag so what's the deal here it's pure partisanship it's political theater the ones that were really didn't in all of this where the south koreans they were treated like children in all of this and the argument was all trum

looking at this next chart, it shows you the majority of vc's, who are concentrated in the mainland. chinatly dominantly, as you can see in the graphic. haidi? this fund in beijing, is china's most active angel investor, having at least four of its portfolio companies listed in the u.s.. the ceo told bloomberg what you look for when she makes her investments. >> we have about 12 unicorns since we started seven years ago , and they are across many different sectors. the are really at the early stage -- at the early stage, it is not as much as but of the idea as the person. ideas can change, but we are looking at people who we think can trade billion dollar companies to riyadh terms of sectors, -- dollar companies. that we of sectors, chat ecosystem, they put a lot of resources into it last year. instead of downloading the app, people are using a mini program, which creates a whole new echo system. whether it is e-commerce or gaming, sharing, there is a lot of applications for this. consumer trends continue to be interesting. companies like alibaba incubated new concept is a grocery store, a

chinese smartphone maker xiaomi has announced it won't be listing in mainland china anytime soon, butfirmed it still plans to list in hong kong early next month. beijing has been encouraging chinese tech giants which are listed overseas to also float their shares back home. toshiba says us authorities have completed their investigation into the firm's accounting practices, and decided not to fine the company. the us securities and exchange commission decided to investigate toshiba in 2016 after the firm was involved in a $1.3bn accounting scandal a year earlier. the taxi hailing company uber goes to court in london today hoping to win an appeal to keep its licence to operate in the city. last year, the transport regulator tfl refused to renew uber‘s licence because of concerns about public safety and security. the compa ny‘s approach to reporting criminal offences and how its drivers were getting medical certificates were cited for refusing permission to operate in london. china has freed up billions of dollars in its banking system to cushion the blow of a slowing economy and a possi

their patents or give chinese companies access to their patents if they wanted to do business in mainland china and we've also seen things like well my own experience i was at a tech show a couple years ago and i want to see a new app developed by a chinese maker and now the little is a mid-level company they were displaying their new app on i phones i took a look at his i phone and as i was looking. and i realized it was running the android operating system meaning it was they were displaying their apps on faked cell phones which really just kind of goes to show you that while china has a different. a different way of viewing intellectual property and some of their international partners ok so it looks like does have a point however does tit for tat. tariffs one side's imposing one the retaliating against of force will this lead to anything well that remains to be seen i mean at the end of the day if we really get down to like a need to critique trade war the question is you know who's going to win who's going to come out of it on top and if we're looking in the near future i do think beijing

counting down to the open up markets in hong kong and mainland china. rish, how are we looking?gains premarket, , generallywing .25% to the upside. i think we have the glass half-full at the moment. let's have a look at casino stocks. a hidinganies taking lately. , bad down again, 1.25% numbers for maccallum not helping these casino stocks. cal -- for macau not helping these casino stocks. gdp in be talking about austlia shortly. hsbc's chief economist for asia joining us to go through those numbers. of course we have the hong kong open as well upon us. this is bloomberg. ♪ under a minute to kong-shanghaihong -shenzhen session opens. a lot to digest. therve bank of india with decisi on eir cost o borrowing later today. te shares in focus after the nasdaq another record high supported by those mega-technology issues. plus one, with that plus one being the united states , global trade under the microscope. t minus six days before trump and kim meet in singapore. hotel is a capella location for those talks next tuesday at 9:00 am. the reserve bank of australia keeping interest rate

the average person in mainland china consumes just three cups of coffee per year compare that 36un30person in the it cups in the u.s. but that demand coupled with the impact of climate change and the world's coffee supply could lead to a caffeine crash. fewer beans, and higher prices for consumers. >> in the next 30 yebert two toe million tons of coffee. and currently, the global supply of coffee is 6.9 million tons. >> if coffee does take off here is there enough supply? >> no. >> thankfully, there is still all of that tea in china. >> that is the "overnight news" for this thursday. for some of you the news continues. for others check back later for the morning news and cbs this morning. i'll also see you on sn digital streaming network. check it out. click the live window. from the cbs center in new york from the cbs center in new york city, i'm david > it'shursday, june 7th, 2018. this is the "cbs morning news." >>> a woman is free after diwoan bars, thanks to some reality star help. >> this is the greatest day of my life. i cannot -- my heart is just bursting with gratitude for w

of plans to still stock in mainland china may be an example of beijing's ambitions getting ahead of itsty. our asia tech reporter joins us now. what does this mean for the ipo? shelley: they said they were going to list offer $10 billion and ended up having to half that. they wanted to do half in china and half in hong kong and they could not do the china portion. already we are looking at a smaller listing them we were expecting. kathleen: so the reception is everyone is really excited. the mosthis is one of hyped up ipos. supposed to be the biggest one since alibaba. then we started to slowly see that come down piece by these. they brought down the valuation, now we are getting rumblings that retail investors in hong kong did not quite oversubscribed for this offering as much as people thought. haidi: it is interesting timing for any company in that space at the moment. how do you anticipate it being trade tensions, market volatility as well over in china are infecting xiaomi and other tech companies in the pipeline? shelly: it is interesting because xiaomi does not actually have oper

it may hit a snag in its hopes to reach 100 billion dollars valuation by postponing the mainland chinaof its listing. stephen engle reports from beijing. stephen: xiaomi's decision to postpone a simultaneous listing in shanghai with its hong kong ipo could lower ambitions. the hong kong ipo is said to be the world's biggest in nearly two years to raise about six point one billion u.s. dollars, but it is a considerably shaved down offering that originally was expected to top $10 billion. the companies cfo says there is no timeframe to revive the domestic part of the listing. sources say xiaomi scrapped offering because of differences with the regulator overvaluation, but xiaomi says it has no dispute with the csrc. may dispute xiaomi's valuation. the ipo is said to be marketed at up to 29.3 times forecasted 2019 earnings, making it twice as expensive as apple and pricier than tencent, china's biggest internet company. xiaomi says it deserves a premium and valuations because it sees itself as an emerging internet and e-commerce company rather than simply a lower margin smartphone player.

the look of chinese characters to me is very interesting but it's disappearing because actually mainland chinase are beautiful to me. the things are continually fascinating -- fascinate me. >> douglas: yeah that's what the city is about. >> anthony: but those are disappearing. >> douglas: those are disappearing because i think the government wants to present an image that is like modern and western so we've got to clean ourselves of these sort of messy street people. >> anthony: i hate that. >> douglas: yeah but i think actually our generation -- the new generation is beginning to appreciate what we have because we grew up in a wealthy period and we had happy childhood memories so we want to preserve that. i really see it happening in hong kong. finally. ♪ ♪ >>> if you're like me, you went to college. if you're not like me, then you actually graduated from college. and when i think college i thinkle "a" classes sleeping through 8 "a" classance football. now most colleges the exciting thing about football is the game. but some college the exciting part is what happened at half time on this epis

. >>> starbucks is building a new store in mainland china every 15 hours.r the world's coffee supply and the price you pay. you're watching "cbs this morning." (butch barks at man) butch is like an old soul that just hates my guts. (laughs) (vo) you can never have too many faithful companions. that's why i got a subaru crosstrek. love is out there. find it in a subaru crosstrek. i always thought (roosevelt) mthat cigarette is roosevelsmoking just messed up your lungs. i never thought that at only 45 it would give me a heart attack. i never thought that it would stop me from playing basketball with my kids. i never thought that it would give me a scar like this. and i never thought that it would change my life forever. my tip is: do your heart a favor and quit now. (anncr) you can quit. call 1-800-quit-now for help getting free medication, if available and eligible. the toothpaste that helps prevent bleeding gums. if you spit blood when you brush or floss you may have gum problems and could be on the journey to much worse. help stop the journey of gum diseas

foxconn has the maximum 44% in shanghai on its opening day, the largest tech company listed in mainland chinathe business is more valuable than ebay with the market cap of over 60 billion u.s. dollars. clients include amazon, dell and cisco. up to 30% of the revenue comes from apple alone. company's strategic investor list reads like a who's who of china's top firms, including alibaba, tencent and baidu feud -- baidu. state companies also took a large part of the pie. tom mackenzie, bloomberg. emily: here to discuss the global supply chain for apple and the foxconn ipo, we are joined by ian king, and we also have garrett with this. you have an apple analyst who says the report is just noise, should we be skeptical? garrett: i think it's worth treating the report with a hefty grain of salt, we have seen reports about the supply chain before, it is an sure what supply chains they are talking about in the report. you can see how investors are reacting on the supplier chain sign, there have been deeper in tech's, but in terms of what to expect from apple in terms of sales, i don't think you can e

google has talked a lot about their efforts and we've seen them chip away at returning to mainland china and they recently had a partnership with tencent. emily: what is your take on this, isaac? >> i think the move is important, mostly on symbolic levels. the price is roughly less than 1% of the company's worth. but really what it is is google trying to say to beijing, listen, we want to come back into china, we want to do business with chinese companies. and so they picked relatively a nonsensitive company to do it with, e-commerce is less of an information business, than search engine, which has caused google problems in china in the first place. emily: i was in beijing when google left the country and there has been no sign of a potential return, so could this be more about being back into the good graces of the chinese government than it is about building an e-commerce strategy? >> we did see google open up an ai center in beijing, that is what they have been pushing with chinese developers. i think they are trying to back end with their cloud service. this is much more around their

opportunity with a-shares, main mainland china being included in the indexes. the sixth biggest company in the world by market capitalization which nobody ever heard of. once it becomeses hot like amazon i think it can go through the roof. that is down as well with the china tariffs. then you have intel. i always like to buy when others are fearful. look what happened with wynn resorts with allegations there. that stock rebounded. i also think you rebound with intel. liz: that is buffettesque way of looking at things when everybody is running out. intel taking 2 1/2% hit. tencent, going into the market tariffs, why do you think the market is down? china tariffs. people are scared about them, that is the simple reason. liz: should they be? >> i don't think so. i think it is market noise. i'm worried about the fed rising interest rates and continued spike in interest rates. mix that with a trade war. liz: perfect way to end that on an upbeat note. josh, good to see you. [closing bell rings] stocks off the low but the dow looking at the longest losing streak in 15

it's the largest take company listed in mainland china.oxconn to move beyond cranking out iphones. jack ma's fund has raised about $40 billion in its latest funding round and the financial is said to be valued at $160 billion. investors in the latest rally included singapore sovereign wealth fund and silver lake. flash. your business julie: we have been watching this story on verizon. it has new leadership at the company. hans vestberg is heading it up. he is the former ceo of ericsson. he takes the top job in august. let us bring in john butler. you and a surprise for is this the right direction for verizon to go? >> yes and yes. it was a big surprise. hans has not been with verizon all that long. many people may remember him as the ceo of ericsson. he was there about six years. he did a great job. he's a great visionary. john: he is big on 5g. his belief in mind is that it's really going to transform the industry. it helped to shape him as a good choice for that role. the timing and the actual news is a big surprise to many. wase: lowell

they wanted to raise some money out of the mainland domestic market through the china depository receipts which did not work out partly because regulations are complicated. no caps on has done that successfully and they were not able to pursue that at the same time they did the hong kong ipo. the fundamental reason is they never really persuaded investors

>> reporter: there's an increasing change because of policy all the way over in mainland china. thehinese government last year instituted a new anti-pollution policy which is raising the standards of the recycling process. you may not know this, but actually china is known for taking almost all of the world's recycling and making it into new stuff for you to reuse. now because of these new policies, they won't be doing that and so million t ofs of garbage and trash are now kind of in limbo here. so what we've been finding in our reporting across the country is that we've gone into recycling centers and found some of these recycling centers who used to ship all their recycling to china are no longer able to do so and china is refusing those shipments. as a result, some of that recycling ends up going to the ndfill or ends up going to the dump. what we're going to tell you more about tonight this is going to cost you when it comes to your recycling bill and what it means. ouu work so hard to recycle as you said andant to make sure you're doing right by the planet. soo we'll look s

to stay out of the situation, recognizing that it's at a tense moment in its relationship with mainland china. there are a lot of complicated dynamics in the region. the question is if the united states seems to be willing to walk away from some of its traditional associations, if those are no longer as important in this administration, what does it mean for the region? that is the big question mark, whether it's on issues of human rights or on issues of trade, more -- more practically speaking. i think there are big question marks. >> lindsay, as we wrap this up, who comes out the winner here? is it very easy for north korea to come out a winner here? does china come out the winner no matter what happens? >> i think, unfortunately, it's hard to see how kim jong-un doesn't come out of this situation with a stronger hand than he went into it with. the reality is that he's already made a huge transition and reaped huge gains over the last couple of months moving from sort of isolated international pariah to a global leader who's sitting down with other world leaders, looking like a very sort of

these are bonds issued outside of mainland china. it invests 80% of its assets in the securities.banks, sovereigns, and financial services and reaches across the credit spectrum rum investment grade two below, even unrated debt. it has 50 holdings and includes lenovo, the import and next for bank of korea commonwealth bank of australia, and chinese bonds. million in assets and carries an expense ratio of 45 points. light,t gets a green investors should note they are fully exposed to fx risks because there is no currency hedging. scarlet: props to our team for that fantastic job. joe: coming up, what you need to know for next week. this is bloomberg. ♪ this is bloomberg. ♪ scarlet: "what'd you miss?" erasingin u.s. stocks the loss for the week, closing up .9%. wilbur ross travels to beijing for more trade talks on saturday. joe: i will be watching for japanese prime minister meeting with president trump thursday to discuss preparations for that planned u.s. summit with north korea. julia: it is back on. this friday begins the g7 leaders summit. scarlet: that does it for "what'd you

china taking a major step forward today with mainland shares joining the msci club.no question in our mind that they are really intent on opening the country. >> i think it is very positive. another validation the markets are becoming global. whate important fact is the a share markets coming into the availability, the opportunities are incredible. the number of companies is quite incredible. >> it will be a plus. it is a nice thing that gets the world more educated about china. >> china seems to me to be a perfect fund management. let's discuss this with our guest. what is your take, how important is it or the opening up of china? is it pure symbolism or does it run deeper? hao: at the moment, it is a baby step forward. less than half a percent inclusion initially, and a few months, .8%. step, symbolic in nature. over time, it will be more important. rishaad: how much interest are you getting from your clients with regard to the -- this? hao: not much. [laughter] the pensioners have to go in by default. they are probably by because of the index construction. importa

china's stock regulator -- s -- xiaomi is to list. they were said to raise about half of their initial public offering from mainland chinese investor. 24 hours a day on air and @ticking to be on twirt. this is bloomberg. rishaad: developing story in china, it saying they'll take strong countermeasures. why is the tariff -- the tariff war putting $200 billion on the firing line and president trump is threatening to add to that. this is escalating quickly. commerce with a statement a short while ago. >> it's like a punch and judy show without the amusement factor. we heard the min stroif commerce saying they'll take countermeasures, qualitative and quantitative. trump said if they retaliate to these additional tariffsering he's got another $200 billion he wants the ustr to look at imposing as well. you're looking in total potentially at $450 billion of tariffs imposed on chinese goods coming into the u.s. market. that's almost the entirety of all shipments from china to the u.s. the total is about $500 billion. you're starting to hit consumer products and the kind of goods that arrive of supermarket shelves in the u.s. that's potential

phenomenally significant growth opportunity ahead in china, and the best way to capture that is to unify mainland chinael. dynamic semiconductors says it is proceeding with plans to take over a company with a heavy dependence on apple. the british company says it is conducting due diligence, and there was an early report from bloomberg news that said it would primarily be paid for by cash on the balance sheet and debt. extended trading tuesday. companies may take a hit as the trade were between washington and beijing accelerates or escalates. "the new york times" reporting that president trump assured apple ceo tim cook the u.s. would not be placing tariffs on iphones. however,trump's -- however, advisor, hetrade said else. this is key. >> peter navarro has said he does not know, and this really tells us all we need to know about how the ministry is reproaching this -- approaching this. apple iphones or almost all made in china, a few in india and some in brazil, but most -- apple iphones are almost all made in china. they are u.s. brand name, so if you're going to put tariffs on them, that is really h

peter: we are going to see inres begin trading again hong kong and in mainland china later this morningors will be able to trade after about two ms. it is been a long suspension for that company and predictions are that shares will go down pretty dramatically. that challenge that the company has gotten out from this that hereence, from the it was not able to buy components from american suppliers, including semi conductors and electrical components which were essential to their operations. however, it did miss out on several weeks of revenue and doing business. it still faces us looming challenge as you mentioned, that the u.s. senate is moving ahead with legislation which could reimpose the ban just after the commerce department agreed to this settlement. departmentmerce settlement is very severe. as you mentioned, they have to pay more than $1 billion in fines and replace top management in the entire board. quite serious. ramy: since members of the u.s. senate have voted overwhelmingly to advance this. do they actually want more on top of this record fine? peter: they are suggesting t

alistair: it's a change in the last 1.5 years. 2010, google took its search engine out of mainland chinareally trying to engage with the company. it started taking a two-pronged attack. one was using artificial intelligence capabilities to set arm and partnerships in china. the other one is making investments and doing partnerships. it already did an investment with tencent, which is so huge. the jd one falls into that category. i guess it is another reentry point for google in the china market. does this narrow the gap or the fight with amazon? alistair: it looks like an expansion, really, outside of china. it was notable that google gets a stake in the chinese company. about 1%. in the joint press release, they said this was focusing on southeast asia. jd's point of view, this will help them on the online customer acquisition point of view, so google is a specialist. they want to get people who are searching for products and wanting to shop online. you go online, and they are usually in those regions. jd wants to be in the mix along with amazon. getting some of the online traffic. barr

have a plan to sell stock to mainland china shows beijing's ambition getting ahead of its reality.a display of screens as it depends on rival samsung. ♪ yvonne: happy friday, it seems like no bad news on trade. that's good news for the markets. wrapping up an ugly quarter for us for asian stocks. we have been talking about the worst quarter since 2016. em continuing to spiral into this barrel. a key decision from the bank of indonesia. it will be interesting on how they halt what we have seen. kathleen: what is happening is more and more traders and investors are looking at these big signs. they are looking to selloff in emerging-market stocks, they are looking at chinese currency, volatility of the markets. they are asking themselves if they could be contending with something worse? u.s. gdp continuing to snap back. if trade tensions don't get too bad, the fed will hike rates two more times this year. there seems to be unease with the people in the markets when they see the markets behave how they are. yvonne: certainly is the case. let's look at how the market opening is. it look

mainland china markets and taiwan are off for the dragon day holiday.ey are pretty lackluster. in, particular a lot of these segments, energy, auto, technology that could potentially be affected by trade tariffs. rishaad: right. haidi, stay there, because we'll be putting the best charts against each other. you can access them on the bloomberg by running the function of the bottom of your screen. and kicking things off is haidi. i pose a serious threat. we were just talking about trade, and i want to continue that conversation. this is probably a micro way of looking at the implications of the trade tariffs. soybeans were one of the many auctions on that list when it comes to tariffs being thrown about. these charts show the important attendance. along with the u.s., brazil is the other biggest toy supplier when it comes to china. you can see maybe china is preparing, right around the u.s. election in 2016, we saw a steady ramping up when it comes to chinese imports of brazilian soybeans. if you take into account that a 25% tariff on u.s. soybeans raise

all of mainland china is a company operated much we're focussed on the long-term growth potential it presents for starbucks. >> our fear, of course, is that a trade war, depending on how it develops, could dampen economic growth that might be in the united states it might be globally you never know it's pretty early in this process. but we're watching these steps that are taken by the united states and other countries around the world in trying to figure out what it means to economic activity. >> that's right. i mean, there is our economy is red hot and it could certainly cool a bit. if you believe in what kevin johnson is talking about, look, short, young china and buy young. but that hasn't worked they're the same exact price we've had a lot of stocks in technology just soar i think they can give it back. we've been looking at 12, 13 times sales for the new ipos those seem excessive but again watch call coqualcomm the banks get hurt because people sell the banks. no matter what any time there's a slowdown. what arnie said. any time there's a slowdown, people sell the banks. marriot

josh >> tyler, mainland china, we know, is critical for the iphone maker. unting for an estimated 15% of annual revenue and apple depends on china as a key part of its supply chain. remember, most iphones are assembled over there the trump administration told tim cook that it would not place tariffs on iphones, according to "the new york times," though today, white house trade adviser peter navarro countered that he had no knowledge of any such exemption regardless aside from tariffs, apple could get caught in the cross fire. they're now reportedly concerned that the chinese government could cause delays in its supply chain in retaliation for these tariffs. tim cook has been talking to the trump administration and working hard to improve relations with china, making investments in chinese companies, analysts point out one strong advantage for apple, it sells a popular device in china and its assembly employs a lots of people over there, more than 1 million chinese work in some way on apple products guys, back to you. >> josh, thank you, josh lipton. >>> so h

china has always wanted. the stabilization and security of north korea and the removal of american troops from asia, especially from the mainland. for china, the trump administration has been the guest that keeps on giving. even whenmp confronts china as he has on trade now, he has totally undermined his own efforts by alienatingers allies in europe and japan rather than having them join together to put collective pressure on china. don't forget, trump began his term in office by pulling out of the transpacific partnership, which was created specifically to stand as an alternative to the chinese market and a bustopo this. the long game for the united states over the next few days is how to handle rise of china. right now, we are quitting the field. for more, go to cnn.com/fareed and read my column this week. let's get started. there's so much to talk about. let's get right to it with my guest today, susan rice, who was the u.s. ambassador to the united nations for the first obama term and part of the second, until she became the president's national security adviser. welcome back to the show, ambassador rice. >> great to be wit

>> mainland china accounts for an estimated 15% of apple's annual revenue, and it assembles most of theones there, then shipped, of course, around the world, so investors might be worried here about whether apple now gets caught in the cross fire of the burgeoning trade war. trump administration, as you mentioned, told tim cook, they are not placing tariffs on iphones according to the "new york times," and just today, white house trade adviser had no knowledge of any such iphone exemption. regardless aside from tariffs, apple could face pressure in other ways for example, apple is now reportedly worried the chinese government causes delays in the supply chain in retaliation for the proposed tariffs tim cook has advantage in the fight, though. apple controls 10% of the smart phone market there, and assembling the devices employs 1 million people chinese guys, back to you. >> but, josh, i guess if we look at the share price in recent sort of weeks and months and quarters when nthey reported, hw they do in china is absolutely key and a little tariff on the phone could change the needle in

if you look at indexes with a huge weight, they hold up better than mainland china play seems like aenomena that people want to hide in large internet companies the question is, when does that dynamic overshoot a little bit >> well, here's the thing, it's actually making sense to hide in the u.s. companies because if you think about it, well, to goe or facebook, do they have business in china? no, because the chinese government is so restrictive on the ability of u.s. companies to be able to do business there, you don't have much revenues out of google or facebook or amazon or netflix so for those names, this does not matter much. today was a global momentum tech-led selloff, but i think what if you sit back and think about it more broadly, you go, well, that does not matter to them if you're a semiconductor company or sell pcs. pcs, no. 1 market is china smart phone, no. 1 market is china. that's a big problem so it makes a lot more sense to take those stocks down than other names. other than a fact up 100% for the year >> the semiconductors down 3%. dan, to be clear, you agreed tha