if we're engaging with our allies in europe or asia for common security interests and common values by means that's what presidents of both parties have done for a long time. how then are you going to engage with a kim jong-il or a mammoud ahmadnejad, serial rule breakers living outside this engagement. and there's also a world of confrontation and that's what this president's speech failed to recognize. i guess he would argue we are going to get new sanctions, be able to organize, we'll be tougher on these like iraq-- or like iran and north korea when they don't abide by international rules. that seems to be what he's saying. if they don't sign up to new treaties, if they want to abide by the treaties we'll be tough on them. >> that's with a he's saying, but the point is, i think, to pick up bret's point, beyond that there's always the possibility or there has been of military action and that's where they don't want to go. therefore, in this speech, the president talked repeat i hadly about his commitment to the united nations system and so, i believe what he's doing here is taking th

and vaccines thatou have to get >> tb's not -- bonnie: and, by the way, ast time i went to africa or asia, i had to gt a whole lot of shts because i didn't have- i didn't didn'tet them reguarly oridn't get them asa child. >> well, tb is not a -- what do you call it? a dsease that appears now qte often, but hpv does cuse -- i think people ae -- half a million women are diagnosed with tat yearly all over the world, anda quarter of a milln die o. yo know, she saiearlier how long it took t say te word "bast." imagine sing the wod "cervix." it's a cance i don'tthink immigrants should be forced to get ts vaccine, but people should nderstand it's much more pevalent tha peop realize. >> ithink there's a certain obscenity related in part to he minority stat of th young women immignts who we're challenging here i think i really ges to america's vey old hitory. when you starttalking about immigrant status wome really girls, 11, 12, 3,14, 15-year-olgirls, having to tae a vaccine,which reall they're not making a choice aut. their pares are going t make the choice,or the governmentis making the choice.

. >> tb's not -- >> bonnie: and, by the way, last time i went to africa or asia, i had to get a whole lot of shots because i didn't have -- i didn't didn't get them regularly or didn't get them as a child. >> well, tb is not a -- what do you call it? a disease that appears now quite often, but hpv does cause -- i think people are -- half a million women are diagnosed with that yearly all over the world, and a quarter of a million die o. you know, she said earlier how long it took to say the word "breast." imagine saying the word "cervix." it's a cancer. i don't think immigrants should be forced to get this vaccine, but people should understand it's much more prevalent than people realize. >> i think there's a certain obscenity related in part to the minority status of the young women immigrants who we're challenging here. i think it really goes to america's very old history. when you start talking about immigrant status women, really girls, 11, 12, 13, 14, 15-year-old girls, having to take a vaccine, which really they're not making a choice about. their parents are going to make the c

if you traded in russia '98 or asia '97 or anything in the latin american crises of the early '90s youakdowns that have provided tremendous opportunities as i trader as well. >> is that what you did, tim? you identified the opportunities in that moment? because a lot of people in those days after lehman brothers were focused on that outliar, that 1%? >> before that moment. >> what happened. >> when you saw the emerging crisis in the emerging crisis you have to know the liquidity in our book and be very careful about changing liquidity. you can't sell something you can't trade. and especially in less liquid markets you have to be very careful about that because your portfolio will behave differently and know your counterparties because there was a lot of money that hedge funds had pledged through lehman through prime brokerage or high proffercated which is to say their securities were lent and didn't know of and you had to get out ahead of time. get your book tight. you sell everything that you can that you don't think that would sell in a shock situation smiecht coming up next, nationa

world, one of the most amazing experiences i have been able to have is being in europe or africa or asiativists that are dealing with the very same issues we are dealing with in baltimore, new york, cleveland, oakland and l a and atlanta that they are dealing with in paris, rome, berlin, johansburg, bause when we come together as activists sharing ideas, methodology practices, that all of us become better, and no longer can we just be talking about who gives the most awesome speeches, who gives the most pragmatic solution to the amendment of problems plaguing us? if you think that is happeng in america you have lost your mind. unfortunately, there are communities that are demanding that their leaders do more than just talk. there are communities that are demanding, it is great that you can give a speech, but i want you to solve my problem. i want to feel good after the program and go back to my community with nothing to take a. i challenge you this week to make sure that above all else you challenge us on the stage or leadership, you challenge board members to give me solutions and not r

you think about all those countries, whether is india, the mile east, or asia where they did not havephones of any kind all of a sudd, everybody, one out of every two people has cell phone. >> it' volutionized their lives. before joined sprint was the board ofokia, theargest mobile phone producer but very large in deveping world like middle east and india and china where there is roughly 50% marketshare. it's just amazing what the cell phones have don culturay for many people not only the phone, we might talk aut this later, the known is become alst like swiss army knife in those countries, it's the ashlight. they d't have power they might live in a tent or shed ty can get charged during th day they come home it their light at night addition t their communication. >> charlie: they n't even go the land line business any more, do they? >>o. skip rigover it completely. you look at htory of cell phones in 26 yea ago, people talk aboutg, when -- that stands for generations when ople are watchingds on tv they talk about 3g and 4 gks. 1g was analog. that was the binning. then 2g came along a

you thin about a those countries, wheth it's india, thmiddle east, or asia where theyid not have phonesof any kind all of dden, everybody, one out of every two peoe has cell phone. >>t's revolutionized their lives. bere i joined sprint w the board of nokia, the largest mobile phone proder, but very large in veloping world lik middle east a indi and china where there i rough 50% marketshare. it's just amazing whathe cell phones haveone culrally for many people not onlyhe phone, we might talk about this later, the known becomealmost like swiss army knifen those countries, it's e flashlight. th don't have power ey might live in a tentr shed they can get charged duringthe day they come homit's their light at nit in addition to their communicatn. >> charlie: ty don't even go the land ne business any more, do they? >> no. skipightover it completely. if you look at history o cell phones in 26ears ag people talk about g, whe-- that stands for generations wn people are watching ads on tv they talk abou 3g and 4 gks. 1gas analog that was the beginning. th 2g came alo and 2g was digital you hear a

the graphs that show what the impacts would be of these weapons on a city in the united states or in asia or anywhere in the world, and the figures are staggering. the impact would be so destructive whether a terrorist got their hands on nuclear materials and were able to make a weapon because the more that we allow proliferation to spread, the more likely terrorism will become nuclear, and if we don't begin now to pull back from the nuclear tipping point, then we're only -- the next generation, my children, your children, goring to -- are going to face a future that looks bleak inside. >> sources in the middle east were telling me, you don't understand. iran is a lot further ahead than america realizes, at least publicly. you have contacts and have your feet in both worlds in terms of the middle east and the u.s. how close really is iran? >> i hardly have my feet in iranian nuclear, you know, weapons facilities, but generally what i hear from experts and not just in the region but international experts and here as well is that they do not have those weapons today, and that is why now is

the majority came from europe or africa of or asia legally on visas and then just stayed. you are not going to fi them. if it re legally possible to load them on school buses, the trains and buses would be 7,000 miles long and were you going to put tm? the united states economic policies towards latin american countries during the 20 a century has not done very much to help the situation. this has changed some in recent decades, but they existed as colonnades really economically they were there to prode agricultural products and other products to the uted states and it would have been better all the way around it thi country would encourage industrialization a little bit more. but, when we do, the road to hell is paved with good intentions. have youeard of nafta? that sounded like a good idea. let's go encourage all these factory developments down along the border, that is fine but the united states believes in free tradend it has since jefferson ran his race. what we call globalization nowadays. well, when sources of labor opened up in asia, they were cheaper than what wa

the interest is from a short-term point of view. >> dodge, what would you be most exposed to, asia, europe or the u.s.? >> asia, europe and finally the u.s. >> here in asia, you like india, thailand and why do you find these markets attractive? >> overall, the world markets are moving in sync. there is enough room room now, enough movement that has gone to the up side so that we suspect that the bottom has occurred in most of the markets. we're finding those markets are beginning to catch up to some of the larger markets, but they are representing where the action is to the up side for the short-term. in relative terms, the percent to the upside is more in those markets than in the larger markets. >> khuram, is this still a stock picker's market? do you still go out and choose your companies based on cash flow or do you go for something like etfs where you have this broad exposure? >> it has been on the macro markets, but i think round about june into july, the markets have started to change characteristics. it's very much a stock picker's market right now. very simply, a lot of screening. bu

ten or 15 years will be exporting to asia most likely will be services not cars, not refrigerators, not goods. this is what the west is producing, this is what it can export, this is where it can be competitive. i think that might be a crucial element of a rebalancing. that might be our export edge if you'd like. >> puru, let me pick up on this consumption story that you're talking about here in asia. you know, it is true this is probably the way to go forward here in asia, but given that if you take a look at china, still the per capita spending power only about 1/10 of the levels with see in the u.s. the japanese, one of the fastest-growing societies. korea, we don't have a pick up in the consumer demand. how do you see this growth story being led by consumers actually being carried out? >> well, chloe, we've had huge economic growth in asia over the last 10 or 15 years. india has now joined in, vietnam has joined the wto. they're big exporters, and as these companies start producing more and exporting more, you get a wealth effect on

what places or markets in asia would you be interested in?what would you consider a good buy in asia? >> i'm not saying i'm not interested in china. it is the story, likely to be the story, the dynamic that makes the change in the global economy. allied with india and other large emerging markets like brazil. but in terms of asia as a whole, i think -- i do believe it will need to be a rebalancing story. the export model of asia has come under threat and i think it's going to be a sustained, threat, christine and those economies will do better. the problem with that lovely thesis, it's very hard to generate domestic demand when you're paying slave labor wages, which is what most of asia does pay, hence keeping cheap, cheap production and therefore cheap exports. >> a number more of viewer e-mails, phillip. p.j. writes in ses cadburies is no worse for you this time of morning than later. thank you very much. that was direct relations to seeing sweets roll across the screen a few moments ago. i do want to talk to you about gold too. i'm quite e

all of these animals can be found in southeast asia or possibly on that wall behind you you. tonight. the terror suspect naji beulah zazi is now in new york after being in denver. he was building a bomb to attack on american soil. two other suspects now in custody. one after an arrest in dallas. the other in springfield, illinois. and on this day back in 1965, baseball legend satchel page basement only person who play a in the leagues he took the pound at 5. born leroy page in mobile alabama and got the name satchel working as a baggage handler. in the negro leagues as they were called, he lent his services to the highest bidder. he was so good that from time to time he even called in the outfield and then strike out the side. on that day in 1965, page pitched three innings against

asia. have you seen any slowdown in the last six, eight months now? a lot of people say particularly in china, you've got back to 8% growth or so. >> well, asia certainly has slowed down very sharply at the beginning of the year. basically as it responds to the clamps in demand from the west. but actually, what we've seen is really quite a surprisingly quick recovery. so most asian markets are looking much stronger now. particularly china. >> i know africa has been an important opportunity for your company. give me a sense of what's going on there. we had a number of people on this program the last couple of days, shay comment from cutter for one, the ceo of coca-cola, who is joining us on monday. they're telling me that africa represents a big opportunity. tell me what you're seeing in terms of africa. >> well, for us, actually, africa has been one of our stronger businesses over the course of the last year or so. remarkably resilient, despite the crisis. we are continuing to invest, because we do see lots of opportunities in the continent. >> where are people investing in africa? where is the money flow? >> one of the really big opportunities is nige

that the days of strong bonds are a relic of the past and that the future for the united states is asia or india or maybe some morals i want to tackle these doubts head on, because i must say i get the impression that many americans are losing sight of what nato is and how much it does. in the interests of u.s. security, and that is a trend we need to reverse. afghanistan is a case in point. i know that there are many here in washington who are frustrated by the restrictions some nato nations put on their forces. by the time it takes for nato to make decisions, by reluctance of some countries to send more forces to the mission, even for training, let me be very clear. i understand those frustrations, and i am already working hard to address this very real problems. i also think that people are missing the forest for the trees. yes, running this mission as a nato operation has its share of challenges. all things considered, that is to be expected. but those challenges are far, far outweighed by the benefits very much for the united states. first and foremost, all 28 nato countries are in th

this may not be representative but, you know, you hear these comments from people in china or elsewhere in asia, they're actually managing their currency and they are expressing a certain degree of nervousness and raising questions about the role of the dollar in an academic way. they're not doing much. i find when i... i don't want to generalize too far, but i think it's probably true. when you get people that are not quite leaders of the government but they're not on the firing line of managing their currency, say, look, you know the's a dollar problem, we've got much more important things to worry about than whether the dollar is going to be depreciate add little. now the dollar's depreciate add whole lot, then you worry, too. but i think... i think there is a recognition of larger interest. whether in china sees interest in growing, that's their imperative, they want to employ those several hundred million people who are unemployed. >> rose: because it's associated with harmony in their own country? economic growth and the avoidance of social tension are directly linked in their judgment? >

year and a half since a devastating cyclone to through mymar also known as burman southeast asia. 100,000 people or more may have be killed and many are still suffering. ase hear fromthe cadian broadcastingcorporation, the aid effort is bing hampered by widespread corruption. >> reporter:n the dta where burma meeti the sea, life is harder than ever. it's been 16 months sncehe cyclone swamped everything re. after struggling with the military junta, international aid flowed in, but many have reived next to nothing. th family tries toke out a living selling charal. there e eight children to provide r. d there's been virtually no help sin nargus hit. "i just go a bucket and a pan, that's it she say "i that all you got?" she's asked. "f other livin i didn get ything." the fami's pigs are not for eating. they too will be sold to pay for vital supies like cooking oil. ey can't afford to send the kids to school a they oen go hury. "i lost everything, atever i own. i d a smll houe. alsogone" she says. it's the same storyin village aftervillage on thedelta. inedibly, many are still waiting for reli supplies.

asia. whether it's what's going on in gold or all of the m&a news over the past couple of days and the week b for that matter, we see the futures at this point pointing to a much higher open on the dow, the s&p 500. keep in mind that the dow and the s&p are coming off their worst week in nearly two months. moving on to the treasury market, let's check the yield on the ten-year bund right now. it's sitting at 3726% on friday. the price of the benchmark ten-year treasury note here in the states did go down. the yield finished at 3.44%. it was up that day and it was down for the week, however. we have the government coming in with a significant amount of debt to auction off this week, including $38 billion alone in three-year notes and that's happening today. >> as maura mentioned, the story remains what has happened in gold. whether this is concerns over the economic recovery, over inflation, or the weaker dollar or a combination of all that stuff, including the gold jewelry buying season, the spot gold price right now sitting at $ ,005 per troy ounce. >> thank you, mike. let's talk strategy

this mayot be representativ but,ou know, you hear these commen from people inchina or elsewhere in asia, they're actually managg their crency d they are expressing rtain degree of nervoness anraising questns about the role of the doll in an academic way. they're nodoing much. i find when i... i don'want to generalize too far,ut i think it's probably true. when you get people tha are not quite leaders of theovernment but they're noon the firing line of managing eir currency, sa look, you know the's dollar problem, we've got much more impornt things to wry about than whether the dollar is going to be depreciate ad little. now the dollar's depreciatedd whole lot, then you worry, too. bu i think... i think theres a recnition of larger inrest. whethern chi sees interest in growing, that's their imperativethey want to employ those several hured million people who are unemployed. >> rose: because it's associated witharmony inheir own country? economicrowth and the avoidance of social tensio are directly lked in their judgment? >>nd it's directly linked with their faced with the res of the worl

years is in mark contrast to the debt build up in the anglo-saxon world. >> they might think, gee, asia or the emerging markets is place to be for my investment money. on the other hand, we have see the emerging markets in asia pull forward so much further and faster. do you think we need a consolidation? >> i think we do. the cautionary things. look at the chinese stock market and we are all a big believer in the chinese structural story. asset prices can vary on the economy. doesn't necessarily need to stay long because you think there is a story. long way and, of course, china repiece out before the rest of the world last year in china and well off the recent peaks now. another reason to be cautious. >> is the chinese stock market a leading indicator? >> i do think so. i think there's another indications as well. the levels of commodity stocks in china got to an extremely high level in august. indications they're commodities have slowed down a little bit. indications that the domestic price of some of these commodities is coming off. domestic price has come off 20% in the last month or

whether it's pakistan or southeast asia or somalia, as we did in the last few days.tant troop buildup in a place where it will only cause more resentment, i think, is a very ill-thought out policy. >> you wrote an editorial that was published in "the wall street journal" in which you seem to have little faith in the afghanistan government. you say, quote, even if we invest billions more dollars annually for the next ten years and sacrifice hundreds more american lives, we are unlikely to get a credible government capable of governing all afghan territory. the suggestion there is that stability across afghanistan is just -- it's a lost cause. >> well, that's a concern that we have to look at. we have to look at the priorities of the american people. our priorities, of course, are domestic, and internationally, it's getting al qaeda. if we can help afghan people and their government succeed, we should. but we shouldn't do it in a way that drains our resources in a way that makes it impossible for us to be effective against those that attacked us on 9/11. and i think th

asia that the u.s. would object to. if japan improves relations with china or the republic of korea, that's absolutely in the u.s. nterests. the u.s. needs -- japan is our most significant ally in asia. we need to have good relationships with asia. there's nothing inherently bad about pushing and emphasizing relations with asia. so i'm hopeful that this will all sort itself out and these specific issues will not get in the way of the alliance but to be honest i'm a little bit worried at the margins because i'm not se the dpj has never had to resolved these contradictions internally and i'm not sure how they're going to do it. briefly on the economy, this is frankly one other reason why i think foreign policy will change fairly little. because the dpj was elected to change politics first and do something to change the economy second. and the manifesto the party put out has 55 key recommendations. five of them are on foreign policy and defense. almost all the rest are about people's lives. that's what the voters care about right now, frankly. they're not unhappy with japan's foreign policy at this point. they're unh

of strong transatlantic points is a relic of the past and that the future of the united states is asia or india or maybe some morals -- somewhere else. i want to tackle these doubts head on. i must say that i get the impression that many americans are losing sight of what nato is and how much it does in the interest of u.s. security and international security and that is a trend we need to reverse. afghanistan is a case in point. i know that there are many here in washington who are frustrated by the restrictions some nato nations put on their forces. by the time it takes for nato to make decisions, the reluctance of some countries to send more forces to the mission, even for training, let me be very clear. i understand those frustration. i am already working hard to address those very real problems. but i also think that people are missing the forest for the trees. yes, running this mission as a nato operation has its share of challenges. all things considered, that is to be expected. but those challenges are far, far outweighed by the benefits, including very much for the united states.

that events in far off places like in the middle east or afghanistan or in the subcontinent or in places in asia have no effect on us, this is the answer today. this place remains an enormous target in the eyes of a lot of people and we are so vulnerable because of all those things that make us so great. our freedoms and our sense of security that we have but america has been changed today by all of this. >> we want to find out more what is being done for those who were injured in these attacks. leslie is with the american red cross. i believe she is joining us from washington. miss van zandt can you hear me? >> i can. >> what resources do you have available to you to pour into the areas here in washington, d.c. and new york city and outside pittsburgh. >> we have volunteers and they are the first people on the scene and responding. unfortunately probably now some of them are also victimized by the events. we are mobilizing 80,000 units of blood to transfer to regions as needed. and we are taking guidance from emergency management personnel on what assistance we can provide to them to make this

i'm not sure if you're looking at africa as the potential for growth or an opportunity for investment. i recognize asia has been the place where the growth has been. and people continue to believe that's the case. but what are your thoughts on africa? >> well, as it rets to electronic payments, it's going to take a while in africa. we have a strong business in south africa. there are other countries that we intend to invest fairly heavily in. but as a continent, it is not a significant contributor to our volume right now. nor do i think it will be in the short run. i think it will in the long run. >> mr. saunders, real quick on the regulatory reform that we're going to see, what are your thoughts on the reform on the table so far? obviously government playing an unprecedented role in business today. we could have a consumer protection agency. what are your thoughts on that? >> i think that there were a lot of things that needed to be addressed. i had thought that they were addressed in udep, but they are in the cardec. as far as a consumer agency, i think that the government is going to do what they th

in the gold market, we're moving into what is traditionally seasonal demand in asia i can't for gold products,t play a role or on the sidelines. >> you don't see the demand because people don't have as much money. so they will buy for christmas a certain amount and i'm not convinced it is worse than last year, probably better because psychology is better but don't look for a run away there rather the dollar i think is the influence on the gold. if you were to ask me one influence, i think it is dollar related and i think that the dollar sitting here against the euro at 146, 145 is the euro, i think the your joe euro can go y year anden that wouldn't surprise me in the gold market in october and november get a secondary run. i think the fireworks have happened. >> we would hold powder and get prices from both guys in chart talk. we will put gold with jim and ira after this. >> so far it appears the third time is the charm in the past year with gold over $1,000 an ounce. we're with jim hyerczyk and ira epstein. jim, you mentioned you will be buyers on dips below 1,000. at what price would you put new offers in.

of business, all eyes are on the east as asia, led by a bullish china, delivers growth, while the developed world flounders.but is this just a temporary blip, or are we witnessing a structural shift in the global economy, and will this boom in the east prove a boon for central asia. world business got the opinion on the ground from the world economic forum in dalian. >>reporter: among the great and good of global capitalism, it could almost be considered a hero's welcome. >>reporter: and that's because, here in dalian, china's premier wen jiabao looks like delivering on what he promised less than 8 months ago in davos: 8 percent growth in 2009, fuelled by a 600 billion dollar stimulus plan that he now vows to expand - and so create new engines of growth. premier wen says the measures are timely, forceful and effective. >>: rarely have governments, global executives, the markets hung on every word uttered by a chinese leader - notably those from countries-in-crisis, looking for direction. >>zatlers: china also feels confident to lead. but the confidence is also responsibility. and that's the best message that i've heard these days - because we

we have asked in polls in the future in asia what is the most important norm or value that should guideovernments and the andersen is democracy. we have found in a pole in china that over half the people say free elections, democracy, rule of law. so these principles have a powerful hold in asia and i think what you see in the japanese election is that. a growing norm in a sense particularly in democracies in asia that people should have control of their own lives. our tradition is out of rebelling against booker si and against government and guaranteeing civil liberties. that is our tradition. but i think that the japanese, koreans and other democracies are moving in that direction. it used to be considered bad form to say this because asians have different cultural traditions but it is quite evident in the polling that democracy in asia is having a powerful hold. host: to our radio audience michael green the topic is elections in japan sunday, what they mean for the u.s. we will continue for another 10 minutes. he is with csis. we have the congress, they have the diet. what is the dif

not just among ourselves but in a global economy that seems to be focused more on investing in asia or in a place like brazil than in the united states. that's not good for our long-term interest. that's not good for people who need a job. >> when you look at the g-8 and the movement they are trying to make to get everybody on the same page that's not going to take into account changes in china, brazil and other places. is that a good first step to try and get on board. >> i think it is. you need the eight economies of the world trying to move in concert. we each have our national interest that are different but ultimately a lot of commerce. we're seeing it today. to the extent there is a recovery, it's largely being driven not by u.s. economic growth but by chinese and other growth. their growth is good growth. we need to see it here as well. >> all right. if you, the guest that always has somewhere to go. where are we going? >> commercial. >> e-mail us here at squawk@cnbc.com. if you like what you're seeing, stay tuned. we have dick armey. up next tim geithner defending the bailout p

this was probably one of the most monumental political developments in the last 20 or 30 years in asia, and what does that mean? that is what we are going to export to night and we have got some fabulous people to help us do that. this is the third of our series that we do jointly with tc-99 youth's schaefer school of journalism. we are really proud to have that opportunity in thank youo very much. i like you probably get a little tired with kind of shouting angry journalism in america and what i always admire about bob schieffer is his tough as nails but cybil, a fair and honest spirit tha he brings to his journalism but alsbrings to us in this forum. we are really grateful to have all of them. i would just like to say a special word of thanks to where friends at upc. this is a company that has a deep commitment to moving-- improving the quality of public policy in america. they have gen us a chance to partner with them on this. the wall know them andou wrote down on one of their elevators and it is part of the products they have made possible for us. thank you for all of that. we a

asia. what sectors or companies do you think will lead the next stage of the rally in equities? >> well, so far, the current rally has been led by the same sectors that decline the most. basic industry, industrials and financials. but as this recovery goes into the next stage in the expansion, we do agree that the odds favor a blow average muted recovery. and so we think that that is going to favor the more defensive areas like consumer staples and health care and not coincidentally, that is probably where you have the best values today right now and in large, high quality, defensive names that have not quite participated at the same level over the past six months. >> all right, hank, thanks so much for joining us. hank, of course, from haverford investments and lothar will be back with us in just a moment. meanwhile, let's check in with tok tokyo. hi there, makioko. >> it's a great day and the nikkei 225 rose 1.7%. among gainers, resource related stocks stood out. nikkei reporters at jfe steel will restart a scrap steel plant which halted operations last year. the company said

. >> political developments in the last 20 or 30 years and asia. what does it mean? that is what we are going to export tonight. we have some speakers to help us explore that. this is the third of our series with schieffer school of journalism. we are proud to have that opportunity, bob. like you, i've probably get a little tired of angry journalism in america. what i always admire about bob schieffer is he is tough as nails, but he is civil, fair, and honest. it is that kind of spirit that he brings to his journalism but also brings to us in this forum. we are grateful to have all that. i just would like to say a special word of thanks to our friends at utc. they have given us a chance to partner with them on this. you all know them, you wrote down on one of their elevators when you came here. -- you rode down here. bob, we will turn it to you. i want to welcome back my very dear friend, kurt campbell. he is not over in the state department. he went over to create the senator -- center for new american security. >> welcome once again. as they like to say in baseball

or profiting from the rain forest. we will take you to borneo. >>> in south asia, how drought is one factor causing a poor harvest of sugar cane, soaring prices and even sugar rationing. >>> and we will visit a pristine place in southern africa described as a lost eden, untouched for now by destructive forces. >> from the world's leading reporters and analysts, here's what's happening from around the world, this is "worldfocus." made possible in part by the f5 following funders -- major support has also been provided by the peter g. peterson foundation, dedicated to promoting fiscal responsibility and addressing key economic challenges facing america's future. >> good evening. i'm daljit dhaliwal. we are going to do something a little different tonight by taking a broad look at one subject that is in the news this week, the global environment. in just a few months, the united nations is going to hold a major conference on climate change in copenhagen to try to reach a new agreement to cut greenhouse gases. it would replace the current treaty, the kyoto protocol, which expires in 2012. and it is in that context that the un

asia. political developments in the last 20 or 30 years in asia, and what does that mean? that is what we are going to export to night and we have got some fabulous people to help us do that. this is the third of our series that we do jointly with tc-99 youth's schaefer school of journalism. we are really proud to have that opportunity in thank you so very much. i like you probably get a little tired with kind of shouting angry journalism in america and what i always admire about bob schieffer is his tough as nails but cybil, a fair and honest spirit that he brings to his journalism but also brings to us in this forum. we are really grateful to have all of them. i would just like to say a special word of thanks to where friends at upc. this is a company that has a deep commitment to moving-- improving the quality of public policy in america. they have given us a chance to partner with them on this. the wall know them and you wrote down on one of their elevators and it is part of the products they have made possible for us. thank you for all of that. we are really grateful.

leadership hallways all across the world, whether it's in washington or whether it's in europe or whether it's in asiagovernment comes up with something tomorrow that none of us could predict. how could the market possibly divine that. the market isn't fundamentally driven. >> rick, you know, in a way kevin believes in what you're saying. >> that's the one thing -- >> in words if not in action. the idea this game is halfway over. you can't say there's any victory if all we did was stop the panic. the getting out part is as significant as the getting in. >> to me the headline said it's only half over but he sounded like it's only a third of the way over. he's talking about triathlon where you get out of the water and you've still got two more legs to go. >> he sounds like he thinks the economy can stand significant increase in tightening. that's why i asked is this a sign we're getting better. >> the actual answer judged by his answers is no. he voted for a statement that kept a lot of these things in place up to the first quarter of 2010. we're getting there. but i think the other thing is, for lack o

what has been alluded to in terms of big, off state owned conglomerates moving into china or moving into east asiaworld. there's not much stuff being made in the west anymore, and the raw material for that is essentially oil and gas in most cases. so this is the relationship that's going to deepen over the decades. but it's been getting off the ground more slowly than people would have thought in terms of bilateral investment because the chinese have been very difficult and conversely a lot of the petrochemical investment happening in the gulf countries is still dominated by either local merchant families or western multinationals. so the chinese have not broken into that yet. but it will play itself out over the decades. [ inaudible ] >> there will be a great deal of chinese interest in the vast gas reserves off qatar that may be developed? >> qatar has stopped developing it, because they got more money than they can handle and gas prices have come down quite a bit. the production itself is controlled by national oil companies in partnership with usually foreign service providers. and i don't see

asia-- they will be responsible. anyway, and not sure we want to assess the pieces or will, but japan and china come asianness historically had a hierarchical relationship and others have said this is the first time where japan and china are powerful of the same time. china is moving up in japan has an awful lot of national power and it is deeply uncomfortable. you can see it in the opinion polls in the deep anxiety about china in japan. it is chinese submarines, it is nuclear weapons, it is chinese blocking japanese and diplomatic negotiations around the world. it is poison dumplings. it is pretty broad and yet at the same time china has been japan's largest trading partner, larger than us, for about four years now so it is a complicated mix of rivalry and interdependency that fundamentally won't change. in the near term i think this government has been very clear, this new government, hatoyama, they want to move closer to china. they want to emphasize history shoes. that is it that thing as kurt said, it is synergist. does malpass when there is tension. i think steve says ratley roller-coaster and there may be a danger

get at odds on tactical issues and on how to achieve things like non- proliferation in northeast asia oriran. how do you do that? we are divided internally in this country on that. the bush administration was deeply divided on how to deal with north korea, and no one really knows the answer. the russians have still not quite grasped interdependence, but they are limited. they are not an enemy of the united states. they are just the difficult partner. it is more their view of the world, not a point of independence, but the chinese get that. we are certainly not going to end up in a war with either one of them, as far as i can see. that would be the height of insanity with nothing to gain and everything to lose. host: "no details overlooked as china prepares to celebrate the anniversary of the people's republic of china." what does this mean for china and its people? guest: they had a couple of bad centuries and china did not do well and was a very poor country 30 years ago. they have accomplished a great deal. having been there and seen that change is just remarkable, not only the physica

asia. has the recession somehow affected pricing or had labels come up with second tier labels that could somehow make it more affordable to consumers out there? >> yeah. armani is a perfect example. he has his main line and then emporia, a cheaper line. so they're doing things like high street collaborations, all the people at top shop, all the new generation designers like christopher cane, a huge name here in london, has recently done a line for top shop. that is a small way in which the average person on the street combines the quality london design. how much, though, is luxury fashion suffering at the moment? i mean, we can'tly have this debate and whenever we have a luxury company on, they're very keen to say, no, we're doing absolutely fine. but then you have an analyst on saying, well, no, they are suffering. >> inevitably, they're suffering. apparently in august, the buyers that were meant to come over here haven't come because it has been a very tough august. inevitably, fashion is suffering. they will say everything is fine, everything is fine, but they're not. but i think we are start

or so. decent day in asia. japan is still on a holiday, although the asian development bank did raise their forecast for economic growth for 009 and 2010 they're talking 6% growth. ty a look at oil. we've talked about supply this week. the dollar, as you mentioned, down almost across the board. yeah. 91.34, almost to 1.48 euro. the year high is against the dollar. and with a weaker dollar, is gold rebounding this morning? >> yeah. up 12 bucks. $1,017.70. >> equity res rather oil, everything is up, but bonds are down -- or the yield was down, wasn't it? >> yeah, a little bit. >> let's get overseas and see what's happening around the world. christine tan is in singapore, but before that, geoff cutmore is in london. hey, geoff. >> we've got the likes of bhp billiton, rio tinto, all those big mining companies listed on the london exchange are up about 1% to 2% at the moment and that's helping lift the european markets as a whole. i'll show you how that breaks down sectorwise. and it is the basic resources. the trav

or their job. this is going to ravage our economy. >> joey comings, a resident of american samoa. >>> in southeast asia, typhoon ketsana has been downgraded to a tropical depression. the death toll has climbed above 300. tens of thousands of homes have been destroyed by mudslides in vietnam. strong winds have blown down entire villages. >>> in this country late today, gm announced it is going to get rid of the saturn brand. talks to sell the division have collapsed. the penske group, headed by the racing legend roger penske, was in negotiations to buy the brand. with the talks broken down, the brand, once touted as the future of gm, is dead. here's chris bury. >> reporter: for more than 300 saturn dealers and 13,000 gm employees, this is the end of the road. for gm, saturn had become an unwanted, unprofitable step-child. >> general motors ignored saturn. they launched it strong. they brought it out and let the product age and become uncompetitive without putting more money into it when they needed to. >> reporter: saturn debuted 20 years ago. gm's long awaited answer to japanese imports. >> going to be a great feeling. >> reporter: saturn

what has been alluded to in terms of big, off state owned conglomerates moving into china or moving into east asiaand setting up plants there to push further down the value chain and get more bang for the buck out of the cubic feet of the barrel of oil. and there's a natural complementary between asia and the gulf. asia is the manufacturing power house of the world. there's not much stuff being made in the west anymore, and the raw material for that is essentially oil and gas in most cases. so this is the relationship that's going to deepen over the decades. but it's been getting off the ground more slowly than people would have thought in terms of bilateral investment because the chinese have been very difficult and conversely a lot of the petrochemical investment happening in the gulf countries is still dominated by either local merchant families or western multinationals. so the chinese have not broken into that yet. but it will play itself out over the decades. [ inaudible ] >> there will be a great deal of chinese interest in the vast gas reserves off qatar that may be developed? >> qatar has