as you know, so many chinese leave china. 3m two suitcases, they go to hong kong, tokyo, new york ande back with five full suitcases. was a better service economy in china, can you imagine a china in which imported goods are equivalent in price in china as it is in hong kong? good for hong kong, but that is one of the structural problems in china today. this is what they need to do. china has been so reliant on the vat tax and import tax. they have to change how they get the revenues and need a china in which imported goods are equivalent in price as they are in tokyo or new york. angie: you were just in japan yesterday. you have been very critical of negative rates. have politicians, has abe, advocated reforms to monetary policy? larry: what we have seen in the last three months under the governor of the bank of china, his last action in instituting negative rates has achieved negative results. we see 10% increase in the value of the yen. and, you have seen more savings. this comes to the point i try to make to all central bankers. we all save for outcomes. we save for our retirement

of beating china and new data from china.prise to put together the whole -- the right indices to watch. piers: there is some interesting points to be made about the transition of the chinese economy. very much recognizing the transition to a more consumer led economy. the exports are still very strong. i think there's a problem in the bank system but it has been known. there is a question that the government will actually step in and deal with the problem through most of the banks which it has a significant stake in. i don't see that causing the engine to stop or sees, but one of the things we have to sees is the economy. reallysumer led demand going to be the key driver going forward. that transition from third world to first word which they have been going through for the last 15 years is very much on track. it is indicating that we are starting to pick up when we look at our data. our international strategy perspective, the reason we are more positive on equities, the -- we saw chinese data. we start to see interest rate r

so this new china index is a way to do that. buying underlying growth in the chinese economy, but in the steelbanks producers, which we believe are part of the old economy and are condemned to continue to underperform going forward. vonnie: when you say you buy that index, do you put it all on that index? or do you also by other asian nation equities, for example, to try to hedge against china just in case? edmund: i think there is a good argument to buy asia generally. if the chinese economy stabilizes and grow somewhere in the 5% to 5.5% region going forward, that is good news for other economies within the asia-pacific region. some of the at undervalued markets, such as south korea. south korea is very interesting because it is not really in emerging market economy. but if you look at the actual economy itself, it is rather advanced. it is much closer to japan than it is to china. and yet the trade, again, very cheaply. that i wouldiwan suggest would be a good idea for those wishing to play of the larger china complex in the

we're also just kidding, i believe, breaking news from china. aggregate financing number, 751 million . let's get straight to the bloomberg first word news with nejra cehic. nejra: germany's economy grew at its fastest pace in two years. gdp rose just north of 2% in the month ended march 31. that being economist estimates of 0.6% growth. time for chinese companies to repay the u.s. dollar debt may be coming to an end. the greenback is rallying after its worst corner since 2010. that is driving up costs for businesses. capital markets said as much as $3 trillion were borrowed, including by individuals and foreign companies. buyers expiration of a potential bid for monsanto, with a market value of $43 billion, has triggered speculation that the german company might need to sell assets. according to a chemical analyst, bayer could shed its take in its plastics unit to help make the acquisition work. global news 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world. you can find more stories on the bloomberg at

ubses, and banks like saying the property sector will underpin growth in china into the third quarter. the top line is that april newices in china excluding affordable homes, up and 65 cities month on month. rishaad: thanks for that. tom mackenzie in beijing. center, thenvention third-highest ranking chinese official addressing hong kong. the chairman speaking and mentioning this one belt, one road idea that they are trying to promulgate their. promulgate there. going on to say he would boost cultural exchange and booze connect to the between the regions and help give a boost to the global economy as well and help the global economic recovery take place here is well, which is something that he sees as lacking. talking about this one belt, one road initiative. we are listening for anything he has to say about the future of hong kong. with, japan out there forecast beating figures, avoiding sliding back into a technical recession, gdp numbers for the first quarter growing bigger than expected, one point 7%, and your allies, bit of relief for shinzo abe as he hosts the g-7 summit. we are in tokyo. let's kick things off

it's the new china, smaller version, but the new china. i'm not angry at china!esident for being a grossly incompetent president of the united states to allow this to happen. to allow this to happen. so, folks, in a nutshell, it's an honor to be here. and i'll tell you what really amazes me. i thought this would be like dr. martin luther king, where the people would be lined up from here all the way to the washington monument, right? unfortunately, they don't allow them to come in. and you have all these people on the roads and they're all waving and going crazy. we've got to do this for next year where rolling thunder allows everybody to be here. because i'm telling you, coming in, i said this, coming in, hundreds of thousands of people, the most beautiful bikes i've ever seen in my life. we do like those bikes. the most beautiful bikes. we've got to get those people here. and i know one thing, you're going to all behave yourselves, right? and i know another thing, there won't be any paid agitators in this group, okay? you know, i make a speech -- i made a speec

powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. china'se official says hong kong should seek integration with the mainland and not independence. at a dinnerremarks attended by the city's leaders at gave the keynote address the inaugural event. asked and industrial property developer what caught his attention in the speech. has been covering the whole spectrum. it is everything. from what china can do, what other countries can do, and what other people can do. there was a lot of ideology and grand scheme picture, but the big question is who is going to pay for it and how will it be paid for. it is a big question. i'm sure the funding will come from various sources. will be plenty of private funding and investors interested in the projects, if not all. if there is a political will, is there a commercial viability directly associated with that, meaning does this type of investment from a company like yours that you are primarily a developer -- does it make commercial sense? commercial sense comes in two ways, one is immediate and one is long-

. >> the mexicans are the new china. >> they're not going to pay for the wall. >> you have to let me deal with that. okay? they are ripping us badly. >> i'll charge for the products coming into this country. mexico is living off the united states. >> you can try to strangle them economically unless they pay for the wall? >> mexico will start behaving. mexico is not our friend. >> or you'll break them economically? >> they will not be thrilled. and china, the power we have is that we have rebuilt china. they've taken our jobs and manufacturing and everything from us. we owe china $1.3 trillion. they charge us tariffs. we don't charge them. the largest bank in the world is under this floor. >> china is going to have to okay you destroying mexico and okaying you putting a tariff on china. >> bill? >> do you think you're going to get it through? >> absolutely. i've been dealing with politicians all my life. they're all talk, no action. they're controlled by donors and special interests. when i tell somebody to do something, i'm not going to get a lobbyist calling me saying don't do that.

reporter: heading for the ocean, it is launch day for china's new 5000 ton research ship. is the country's latest bid to dominate the waves. when it comes to the sea, china really is thinking big. this research ship will explore the world's oceans, but it will also serve as a launchpad for submarines that can explore anywhere, no matter how deep. the plan is to take humans to the deepest part of the ocean, the mariana trench in the pacific. a chinese company is developing a submarine that will dive nearly 11,000 meters down. only two manned expeditions have ever been there. >> most important part is this part. reporter: this is a model of what the submarine could look like. its head designer says it will have to endure the crushing pressures of the deep, but he wants to make the dive by 2020. >> i would like to be the first of the chinese people to reach the mariana trench. that we are creating our history -- that can be exciting. reporter: the chinese government, with its manned submersible, has also been exploring the depths. now they are building a new vessel that can go

over a week, which is expecting the new china to suffer from the long-term. ur favorite calls for china, what would it be? >> it would be tech, environmental for these companies. it would be health care as well. angie: you are not worried about the debt bubble? >> we are seeing so many bubbles in china. everything has been debt bubble, everything recently. you have so many things to be afraid of. valuations are reflective in china. policymakers do not blow off anything, we should be ok in the long term. angie: thank you so much for joining us. coming up next, disappointing data out of china weighing on the aussies. ♪ juliette: welcome back. it is monday the 16th of may. recoveringar is after they sold off on disappointing data out of china over the weekend. they pushed tenure bond futures up 0.6%. the best onar it is record. three-year futures have raisin six basis points -- risen six basis points. the aussie dollar trading at $.73. they have more room to run according to goldman sachs. is against the yen on the possibility of the boj using outlooks. bank of a

charles: according to a new report, china's weapons technology is becoming an increasing threat to thelong-range missiles that can reach our u.s. military bases in guam. defense officials say their advancements present a growing risk, plus a u.s. warship sailed close to one of the man-made islands that's been in dispute and swiftly readied three fighter jets in the area. you can see, it's getting really to a position where it looks like something dangerous is going to happen here. this brings back to mind how important is the role of nato and how much should america be standing up to the threats? joining me now, captain chuck nash, and a man himself who killed osama bin laden, rob o'neill. captain nash, start with you, china has a missile perhaps aimed at guam. part of the triad, the mission is counterstrike from russia. but a new mandate? >> charles, i don't know that the chinese are looking to take out guam any time soon, but what they're looking to do is put a threat on us so that we have to take that into consideration and affect our judgment and position. it's estimated to have a

china block by block. heavier: despite the new factory, china is going through a major transition into a high-tech driven economy. the country's young entrepreneurs are certainly dedicated to the tech startups encourage them place to sleep in the office just to squeeze the most out of the working day. reporter: it is nighttime invasion, but the working day is far from over. in china's tech startups, 16 hour workdays are not unusual. an internet recruitment platform , he spends the night next to his office. it saves them several hours commute every day. from monday through friday, he bunks down here for top quests sleeping at work seems quite normal to me. our boss says our ambition will keep us awake that we won't yield tired. hard part is i can't do my child very often. companies expect employees to sacrifice our lives as the technology sector goes more competitive. it's 11:00 p.m. but people in this office are still hard at work. specs chinese people are adding a dose of fighting spirit to entrepreneurial culture. they disregard personal achievement and let their passion burn to further the dreams of their tea

china. why does the u.s. project -- were headheads -- warhead? the investment was so small. win veryect would little new continuity to the united states. the primary object was to targets inply buried various countries. according to the chinese muchigm, china worried so for important reasons. because a nuclear penetration d is aad -- warhea technical weapon. hurt the nuclear taboo against use of nuclear weapons. it would lower the bar of nuclear weapons use. that would hurt china's national interests, especially its commitment against use. for that reason, china worried. another consideration is technical issues. china always worries that other -- technical lagging. most chinese believe that would inviteging aggression by other countries. another -- a lot of chinese research seeks to understand new technologies. china has a plan -- china does not have a plan to deploy these technologies. the goal is to understand the new technologies. chinese believed the neutron bomb is the third generation nuclear weapons. -- first generation was the bomb. the second generation was the fusion bomb. totally newe techno

and that was based on less bad news. china is not going to be a big black hole.g kill us. we're not going to have a recession. but for the market to go higher we need some good news and i think that good news has to come from earnings and the jury is very much out. we need the dollar to behavior, that is not go back up. oil to behave, not go back down. and the isms and pmis that side of the economy has to show a little more strength. that is asking a lot. i think we'll get some of that and some better earnings in the second half. but, you know, i'm not going to put all my money on black for that one. >> i'm surprised you didn't mention the price of oil which has always been one of the key determinants of this market and -- >> i did mention it -- you are absolutely right sara. oil was going down too fast for too too long for comfort and the rally has given people, ah. the tough place of the world are not going to fall apart. not going to implode. so if oil would just stay in a somewhat stable if that is possible for a commodity trading range i think we'd be just f

the mexicans -- >> the mexicans are the new china. >> you are not going to get them to pay -- >> youdeal with that. i will tell you how. >> okay, tell me. >> i will chart charging for their product coming into this country. mexico is living off the united states. >> you try to strangle them economically -- >> they will pay for the help. and mexico will start behaving. >> or you will break them economically. >> i will do something, they will not be thrilled. >> all right. chinese hacked into the federal government system. what do you do to them for that? >> you have to do something for china economically also. the power we have, we have rebuild china. they have taken our jobs, they have taken our manufacturing. they have taken everything from us -- >> why give it back. >> we owe china $1.3 trillion. what you do, if you don't behave, we have to start taxing your goods coming in the country. >> a tariff. >> they charge us. and the largest bank in the world is right under this floor. >> congress is going to have to okay all this. >> they will be all right. >> they are going to have to ok

if i go into china with your old-new nexis, what is the story on the rural urban migration helping to that consumer? paul: i do not go that deep into china. i hit the top cities. i was in shanghai last week and there are more german cars on the road than in any other country, so if you are talking about rising middle class, some of the provinces are increasing. the rural urban has been going on in the important part of that story is the chinese labor market has been tight for several years. double-digit wage growth in china for a number of years and that is structural so that will help support the rising consumption story. for companies outside, you have got to pick your spots and go in. there are lots of potential entry points and the story has got legs. righthis really folds into the idea of rising wage growth, because the regime is a higher real rate as well. as you said earlier, they are very alone on this. paul: the other thing is the consumer sector in china does not historically use a lot of borrowing so a 50% down payment on a house. a lot of cars are bought with cash, so the

"see what's possible." >>> breaking news this morning that is sure to anger china. ncing at a joint news conference with vietnam that the u.s. is lifting the ban on the sale of military equipment to vietnam. cnn's michelle kosinski is traveling with the president and joins us from hanoi. michelle, this came as a surprise to the reporters following the president. tell us about that. >> reporter: there was some uncertainty if this would be announced during the trip. the white house talked about it prior. they put it in terms of it will be discussed. it didn't seem like it was a definite decision made here. when the president of vietnam was the first to announce it and that was through a translator. everyone wanted to make sure that was indeed true. it took president obama several minutes before he confirmed it. the arms embargo has been gradually been lifted. >> the united states is fully lifting the ban on the sale of military equipment to vietnam that has been in place for some 50 years. the decision to lift the ban was not based on china or any other considerations.

katty: it is extraordinary how fast china is moving. more news on our website.nk you so much for watching. ♪ funding for this presentation is made possible by the freeman foundation newman's own foundation giving all profits to charity for the common good: foundation pursuing america's elected needs e*trade, and cancer treatment centers of america. e*trade is all about seizing opportunities. cut. i will take this opportunity to direct. we will call you. evening. smoke and atmosphere. you are young farmhand and e*trade is your cow. e*trade is all about seizing opportunities. proper nutrition can help maintain your immune system during cancer treatments. are is why here dietitians part of every patient copperheads of care team. integrative cancer care lives here. learn more at cancer center.com. >> bbc world news captioning sponsored by newshour productions, llc >> woodruff: good evening. i'm judy woodruff. >> sreenivasan: and i'm hari sreenivasan. gwen ifill is away this week. >> woodruff: on the newshour tonight: >> it is my responsibility as commander-in-chief

today, china's foreign ministry voiced hope for progress with the new leader. ( translated ): china and the philippines have a traditional friendship. we indeed hope that the new government of the philippines would meet china halfway, taking concrete measures to properly deal with the disputes so as to put the ties of the two countries back on the track of sound development. >> sreenivasan: duterte has also expressed wariness about closer security ties with the u.s., but yesterday, he called for talks to include the u.s., japan and australia. >> sreenivasan: in washington, a white house spokesman said today: "we look forward to strengthening and deepening" ties with the philippines. but policy questions aside, duterte's hard-line approach has sparked concerns that he could be a dictator-in-the-making, in a country with an authoritarian past. in 1972, president ferdinand marcos declared martial law in the philippines, and ruled unchallenged for years. he was ousted in 1986 by corazon aquino-- the widow of a fierce marcos critic-- and she became president. now her son, benigno aquino, is

a special report from beijing. ♪ china's economic new development over the last few decades. that could easily be described as sudden periods. our very own stephen engle inkled up and took a ride this soon-to-be listed beijing auto racing circuit. >> here at tracked day, anyone 100 85e out and spend u.s. dollars to have fun at the track. beijing's gold import is trying to put china's emerging car culture on a new track offering for example an alternative to dragracing on the street. >> we're basically just giving them what they want. they have needs. they want to go somewhere to drive fast. and the cars are so little. >> a property developer accelerates into a more asset light licensing model. their franchising racetracks and auto clubs nationwide. seven are already built with more on the drawing board. >> with so many cars being sold in china with the young kids as you can see today and they spend money buying cars. they spend money on the track, on girls. >> but not all girls are along for the ride. world estimates she has spent upwards of 30,000 u.s. dollars on gas, tires,

china's yuan performing overnight, with the state bank intervened for an increasing spread between the spot point and midpoint. and other newsut of china today, the manufacturer's purchaser's index shrinking for a 14th month. the major asian equity sort of a mixed bag. shanghai managed to throw up by a percent. >> quite surprising we saw the gains in shanghai, given the data out of china, the pmi worse from the official numbers on sunday. also the surprise that we saw australia so well because miners in london are suffering heavily. the minors reacting poorly. ftse down 1.75%. the banks out of focus as well. we've seen ubs reporting a sharp drops in profits and that decline. and we'll hear from the bank's ceo in 10 to 15 minutes and also on the downside, commerzbank in germany. and hsbc reporting the decline. and it was up over 2% initially. this is quite a change in sentiment in the last hour for hsbc, albeit it's offset a lot better than ubs and commerzbank. french back bnp paribas with a 10% net profit even as taking a hit from volatile market. that one is holding ton gains at 2%. >>> a lot of interesting moves to show yo

. >>> much more to come on "action news." chinas celebrating the birth of a brand new baby to a giant panda. >>> a young boy born without an arm feels like a super hero with his brand new process -- process process -- process prosthetic. we'll tell you how it was created for less than $100. we'll be back. no other nasal allergy spray can say that. when we breathe in allergens our bodies react by over producing six key inflammatory substances that cause our symptoms. most allergy pills only control one substance. flonase controls six. and six is greater than one. more complete allergy relief. flonase. 6>1 changes everything. >>> trump versus clinton, the two trade jabs as the presumptive republican nominee fights for support win his own party. >>> a man and a woman are hospitalized after being shot on the streets of wilmington. this morning the search is on for the gunman. >>> a wildfire in canada keeps growing now there are fears it could spread into a neighboring province. >> reporter: meteorologist chris sowers is outside with a

if you look at the local bond market that has been a major new story in china in recent times.he way we look at it we do not think chinese bonds are that attractive given the currency risk involved. what is interesting is this has not played out in international markets and you'll get asian corporate credit markets, they have been relatively resilient. to the concerns in china. the way we look at this is if you look historically at the returns and risk of volatility and investment grade credit that would suggest you would be liking this sector but given the risks in china and the concentration of china and these indices we are seeing it is ok until it is not and you do not know when the positive sentiment is going to change but for us it at this stage to be recommending that strongly to clients. within corporate credit we still have a preference for u.s. investment grade bonds, corporate bonds because we like the spread involved, we like the yield and in a risk off environment they should be relatively well protected. thanks for that. steve brice at standard chartered. >> john

news this morning. president obama lifting a 50-year-old ban to sell weapons to vietnam. a move sure to anger china. we are live with what the repercussions could be. >>> and new this morning, iraq begins a new fight to take back a critical city from isis. we are live with the latest. a lot happening this weekend. very busy. good to have you with us. welcome to "early start." i'm george howell. >> i'm alison kosik. it is 4:00 a.m. in the east. egypt deploying a submarine to help in the search for egyptair flight 804. the submarine will scour the bottom of the sea for the jet's black boxes. investigators believe what will reveal from the flight. whether it was mechanical failure or terrorism or something else. french authorities confirmed that the plane sent automated messages signals smoke at the front of the aircraft moments before it disappeared from the radar. joining us now is cnn's ian lee from cairo. ian, have they made it to the spot of the site of the debris? >> reporter: we not have been able to hear if the submarine has made it on site. on board the submarine, it has an array of cameras and

deliveries in china pickup and new models are driving in the u.s..a airbag scandal might affect 100,000 cars. they have put aside when hundred million dollars for repairs. -- $100 million for repairs. incomeourth-quarter net came in at about 87 million dollars, 17% below what analyst were expecting. related -- results were released after they completed the acquisition of the italian designer of cars. by -- inrged in mom mumbai. the company also appointed deputy managing director leave the company for a five-year term from august 1. trillion. rose to $53 -- $53 million. india's power is producers saw a drop in earnings. profit fell almost 8%. still, it beat estimates. the company accounts for almost 16% of india's generation capability. the plan to travel that by 2032. the shares are down nearly 2% year to date. those are some of the stories making headlines. finance minister says he has every confidence in thereforms proposed by government. speaking exclusively to bloomberg television, he said the overhaul of the economy has changed the way investors

but they're new technologies. so, china worried that china would fall behind again, so this is a concern about technical lagging. so, from the mid-1980s china began to do research on missile defense to understand the technology. the purpose was to understand missile defense technology rather than deploy a missile defense system. because this concern is based on the chinese security paradigm. so, in the u.s./china nuclear dialogues, we do not have much discussion on this concern. i think i should stop here and very much look forward to the comments from my colleagues. >> well, thank you. that was a fantastic presentation. i sort of think of both the presentation and the article as a rosetta stone of sorts. i mean, you're highlighting chinese conceptions of security and safety, the difference between nuclear deterrence and compell compellence. the focus on security situations, that's all fascinating. i would encourage folks to read the article because there's an additional point in the article that we ran out of time to raise

china, aresed with we overlooking india? >> i think we all are. it is one of the reasons i wrote the book, the brave newth china and united states, because in our public discourse, we have so much worry about china. one day, they seem 10 feet tall, they are about to come get us, and the next day they are the , doomed dragon and their economy is falling. india factors much less in our discourse. if you think about it, within a decade or 15 years, india will have 100 million more people than it china. it is going to be the third-largest economy on earth. laura: these two countries are the superpowers of 30 years time? >> i think they are. and i hope it's not a competition between three superpowers. i hope it can be a cooperation between china, india, and the united states, where we get along quite well. trade remains open. there are no military conflicts. that is what i am hoping for and what i argue for in the book. free for that, but you know the situation in the quarter hours of power washington, in delhi, and beijing. how do you think the three countries see it? >> right now is a difficult time in our

new security to the united states. the primarily provost of the project was to counter deeply buried targets in countries. so for the two reasons china should not worry, you know, without new capability and little aggression against china. according to the chinese paradigm, china worried so much for, you know, important reason. because nuclear penetration warhead is a technical nuclear weapon. united states sends a message to nuclear weapons are usable. that would hurt the nuclear taboo against use of nuclear weapons. it would lower the bar of nuclear weapon use. that would hurt china's national interest. especially china's commitment. for that reason china worried. another situation is technical lagging. china always worries that other countries would develop more advanced technologies while china does not understand much about the new technologies. such kind of situations is called technical lagging. and most chinese believe that technical lagging would invite aggression from other countries. so a lot of chinese research projects are aimed to understand new defense technologies, that does not mean china has a plan to deploy these t

. >> the mexicans are new china. >> they're not going to pay for the wall. >> let me handle that. >>l me how. >> i will tell you how. >> tell me. >> i will start charging for their product coming into this country. mexico is living off the united states. >> you would try to strangle them economically unless they pay for the wall. >> they will pay for the wall. the wall will go up. and mexico will start behaving. >> or you will break them economically? >> i will do something that they will not be thrilled. >> all right. chinese hacked into our federal government system. what do you do to them for that? >> you have to do something with china economically, also. china, the power we have is that we have rebuilt china. they have taken our jobs. they have taken our manufacturing. they have taken everything from us. they have taken money. do you know that right now we owe china $1.3 trillion. we're paying them. >> do to china. >> do to china as you say if you don't behave, we will have to start taxing your goods coming into this country. >> a tariff. >> we charge them tear rifs. we don't ch

some other news now. china says it will overhaul it's military and have forces capable of armed warfare by 2020. the report says they aim to transform the army into a world class force. they want to improve combat capabilities by investing in modern weaponry. islamic state militants in iraq ve attacked a popular cafe frequented by supporters of the spanish football club, real madrid. the town is 80 kilometers north of baghdad. in the claim of responsibility, i.s. says the attack was carried out against the shi'a. fifa has appointed a woman as its secretary general, the first female to take the post in the history of the mail dominade -- male dominated world of football. she's fatma samba diouf samoura, of senegal, a career diplomat. today, canada's prime minister justin trudeau got a first hand look at the widespread damage caused by piled -- wild fires in alberta. among the wort was fort mcmurray where 90,000 people were forced to evacuate. the prime minister met with first responders and volunteers, thanking

then you had the china news over the weekend. which wasn't bad. i thought it actually hung in there pretty well, considering the run that we've had for the market to have a day like it did today, i think it's impressive. i'm scared, i'm not a buyer here. it's gone up so far, so fast. >> in a short period of time. >> down to 18.10 was a pretty big number. >> in january we did that, too. we've had this incredibly volatile market. >> if you look at the average dxy, it's much lower now. we have a little bit of a tailwind for multinational earnings. >> but my point would be, isn't that what the rally from 18.10 up to here is about? isn't it about the weaker dollar and stronger oil? that's what's changed. >> it's also been about value investors taking a look at stocks that nobody wanted before these dash for trash type names, whether it's industrials or -- >> i don't know. i don't think the value -- >> there are those -- >> there's no way karen's buying freeport. >> some of it may be short covering. >> industrial space, there are those people who though

despite that rather weak statement that we are expecting tomorrow, china has reacted angrily. the official news agency has accused japan of using the g-7's him and to try to isolate china diplomatically. >> thank you. every day overcrowded boats leave the shores of libya full of desperate migrants willing to risk everything for a shot at a new life in europe. those boats randomly fall prey to the choppy mediterranean waters and we seldom witnessed the drama that unfolds at sea. these pictures taken by the italian navy show you exactly what it's like the moment the boat capsizes. >> and italian navy ship captured the scene. the faithful and deadly moment this wooden boat packed the tols with people -- packed the gills with people rocked violently back and forth before it flipped into the sea, throwing the 567 people into the mediterranean. a few crawled onto the sinking hull. most began to swim. several people died. those on board were migrants. mostly from sub-saharan africa. seeking a better life in europe. they were rescued by the italian patrol boat. it had received a satellite sos call from

new treatment. our global science correspondent reports. a radicalent: solution for china's shortages. g business. this farm has a new use for its livestock. parts of their eyes are being transplanted into humans. here are the animals that could help the blind to see. they are under quarantine because they are being bred for meat. their corneas are removed as byproducts. the government gave the go-ahead last year. it is being rolled out on a massive scale. tos patient is the latest have undergone this experimental procedure. ,is cornea has been infected leaving him unable to see on one i. it meant that he lost his job. now, he has been given a pig's cornea. his sight is already returning. >> the doctor says in two to three weeks i will see clearly. of course, it will be huge transformation. newespondent: the operations could ease china's transplant crisis. 8 million people are blind with damage to the cornea and major causes. there are only a thousand transplants each year from human donors. it has taken this company 10 years to develop an alternative. >> we are trying to use animals to

lockwood: we probably got more from china than new zealand.hatf the great things trade liberalization does is not just open up the market, it is how open people's minds are two what is possible. do theland has had to hard stuff on trade. we did not have many options. anna: thanks, but no thanks. agreements ise people opening up to the world. anna: it is interesting what it does geopolitically. we had david cameron putting forward a very passionate case yesterday. rebuffed by boris johnson, of course, but says there are geopolitical reasons. international stability to stay in the eu. do you think trade plays a role? andrew: i think it plays an enormous part. when you trade with the country, you are less likely to fight with them. having a trade block like the european union also keeps the peace. the whole international geopolitical area is more stable when you have a big block like europe able to negotiate on even terms with a big bloc like america and china. i think trade -- i completely agree with lockwood that trade opens minds and contribut

ishaad: why this selloff everyone is talking about the new economy of china. out of the old economy. move it to the new one. tom: we have seen a big selloff in u.s. china-listed shares. we look at the index and it is down year-to-date about 30%. through december and february, it is down 25%. it is seeing a bit of a pickup there. valuations are a big part of this. some of these firms trading at 51 times their earnings, their average yearly earnings. that is a concern for investors as well. there are other opportunities. this is kind of a natural shakeout. rishaad: thank you so much for that. e-noimcs given a much-needed boost to japan's fertility rate? we are finding out in tokyo next. ♪ rishaad: picking up our top stories. a string for the yen weighing on japanese exports. gained almost 1%, traded further. chinaf asia's tongue watches seeing further decline for the u.n. but without the chaos that came with it, the evaluation in january for that china will use verbal support to avoid spooking investors. that is a translation to domestic demand, a main driver. he

taiwan's new government is facing pressure from beijing and having an impact on business and trade. we report how one sector is trying to improve performance on chi china. >> reporter: top tourists spots are facing a new wind from across the straight. the number of visitors from mainnd china is plummeting. shops are losing their biggest source of income. >> translator: there is just nothing we can do. >> reporter: chinese tourists use this hotel. no many rooms are vacant. >> translator: we want to know why the chinese have stopped coming here. he headed 15 buses to the fleet when the government brought a surge in tourists. recently, he's been forced to sell some of his wheels. chow says mainland authorities are restripgting the number of travel permits. >> it's 100% political. there is no other reason behind the sudden change. >> reporter: measures are underway to offset the pressure. city officials are trying to attract more visitors from southeast asia and organized a special event and invited a tv crew to cover it. >> reporter: a cooking show host flew in from malaysia to showcase recipes with the the event is part of an initiative to turn the islan

we have a very good presence in china. >> we are combining a new product for pigs. a great product that's coming out of china. >> i have to ask but the hedge fund manager. he is all over talking about herbal life. it looks like they had a good quarter. it seems like he is really happy with zoetis. the board member doesn't have to stand for elections. he is happy with you. >> i think what is good is that our shareholders are ready. we had bill, very strong i have the coaches. they decided the work is done and it is probably good that they focus on some of the activities. but they are the share holders. up the big five, you can't trust them. the ant-trust department. we face the challenge of ant-trust. and we had last year the division of pharma. our interest in aquatics health. and we'll be assessing it. there will be other companies that will be in there. >> i didn't mean to say i hit the dog i didn't have your medicine. i'm going to get that. they know it's there. and none of that elizabethan collar that drives you cdc. >> such a good stock. and that you know compan

all that story built on china. , when you get negative news out china, oil prices are heading back intosoon. commodities go back down, makes whole recovery that happened in the last few months seem on shaky feet essentially. so you do have that problem, whether we need, chinese economy not to just collapse in a engineered program of building stuff that is not going to work out and commodity prices are going to keep falling. deirdre: jonas max ferris, nomiki konst, ford o'connell all with plea there. a very quick break to take. with we come back, more on the markets. deirdre: quick recap for the markets, down across the board. nasdaq down by the most in percentage terms, down 1%, dow and s&p 500 lower as well. worth noting if you're tracking commodities. gold slightly higher but bouncing off a 15-month low. oil down for the third straight session. with me now, david asman and charlie gasparino. this is such a big markets day so glad to see you both by the way. >> good to be here. deirdre: handsome in pink, both people. charlie, i come to you first. you cover hedge funds, watch them the w

news. nejra: china's consumer prices continue to rise at a healthy pace in april but still below the governmentrate. the inflation was mainly driven by food prices that gave the pboc reason to hold off on another rate reduction. the consumer pride index narrowed last month. poverty will be his top priority as he claims history -- victory in the philippines election. commentsof unguarded failed to damage his appeal, capturing about 39% of the vote. the massive wildfires that swept 85%ugh fort mcmurray left of the city intact, but completely leveled some neighborhoods. about 88,000 residents were evacuated and production from -- surrounding oil towns was was cut by about 40%. global news 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world. mark: thank you. credit suisse has reported a second consecutive pretax loss. tm isief executive tj and tihanent -- tj and tm -- thiam spoke to francine lacqua in zurich. tidjane: january, february are very bad. march was better and april was better than march. may showing some positive signs so it is always difficult w

libby: india is the new china.s about to or may have already eclipsed japan becoming the third-largest consumer. india has massive construction projects come massive industrial projects going on. which will drive their demand. they also have a growing population and urbanization that will increase demand for the refined product side. give us a few names were we will see consolidation. side, on the upstream smaller producers going to you will see ad lot of opportunity in companies enterprise, and integrated midstream company that has natural gas. vonnie: is there opportunity for exxon and chevron? libby: it is an opportunity for them to scoop up. they have to replace the pleading assets. .- depleting assets david: china's a stock market has now gone quiet. we will show you this next in off the charts. ♪ jon: there is no testing with round numbers, isn't there -- there is an obsession with round numbers, isn't there? both north ofnow a $50. vonnie: it's been almost one year since china's equity market began to declin