karishma vaswani is near the venue — the shangri—la hotel — here in singapore.a belligerent north korea, concerns over the south china seas, presumably use of the dominating the agenda as they have donein dominating the agenda as they have done in previous years but will any progress the phelps? it is getting under way at the shangri—la in singapore, you can see the security behind me is getting all of the guests behind me is getting all of the gu ests to behind me is getting all of the guests to come through for the next 2.5 days. main topics will be as you said north korea and the south china sea is thatjoining me to talk more isjim atelier, sea is thatjoining me to talk more is jim atelier, the sea is thatjoining me to talk more isjim atelier, the special adviser for international engagement with the real canadian navy. can you tell me what the main focus points will be at this event and what will be achieved? as he suggested the intractable situation with respect to north korea's nuclear ambitions will be certainly towards the top of the agenda, concern abou

both the shangri-la dialogue which the secretary and i attended over the weekend and today, countering the threat of violent extremism is of ourch at the front minds. the attacks that have occurred aroundnt day and weeks the world are further reminders, as if that were needed, of the new reality in which we live. during today's meeting we strengthened our resolve to harm. those who wish us we are both committed to defend ing and preventing the around the world including in the indo-pacific region. means addressing the prospects of returning foreign fighters. if that happens. and also in the australian context, whole of government with broaderal counterterrorism issues. has said,ry tillerson we have reaffirmed our condemnation of north korea's on provocations which pose a great threat to both global and regional security. we are committed to working very closely together, together and with our regional partners, to impose greater costs on the regime for that destabilizing behavior. this meeting has been a great opportunity to build upon our already close-working u.s.ionship with the new

for the latest report is outside the venue at the shangri—la hotel.th china seas, presumably all of these will dominate the agenda so will be expected progress? as you know from having covered this before there is really no official communique that comes from the two and a half day summits, defends misters from more than 50 countries around the world, the asian pacific region is in the spotlight, he will be giving a key speech and all eyes are on that for any hint as to, that is a big topic of contention because people say there have been a pivot away from asia by the us and so there will be a key speech from the australian prime minister malcolm turnbull, both the us and australia are expecting to urge china to do more of it comes to north korea's nuclear threat. in previous years, the shangri—la dialogue has been much about the south china seas. but as a sign of how that appears to be on the back burner if you are, the chinese delegation is not sending high—level officials as it has in yea rs past. high—level officials as it has in years past. that'

speaking at the shangri-la summit in singapore, he said smaller nations could band together. >> a coursef finer would find its neighbors resenting demands to seed autonomy and strategic space and look to counterweight beijing's power by bolstering alliances and partnerships between themselves and especially with united states. the world bank has maintained its outlook for the global economy, forecasting a modest despite monetary policy and rising protectionism. it sees expansion of 2.7% this year, rising to 2.9% next year. confidencecking up, is improving, and financing conditions remain benign. inna's biggest coal miner talks about a merger. the negotiations are at an early stage and may not proceed. the hong kong listed units of the state own company said they will be noted of significant matters while subsidiaries have requested a trading halt. foxconn chairman says apple and amazon are supporting his pursuit of toshiba's flash chip memory unit. the two have offered financial .upport for the bid the foxconn boss has confirmed his interest in buying the unit. the japanese authorities w

terrorism and trump dominate the shangri-la summit.aidi: the world bank still sees growth, maintaining its forecast for this year and next. betty: warren buffett launching this year's auction, raising money for the homeless in san francisco again. haidi: hello, it is just past 8:00 a.m. in sydney. betty: it is after 6:00 p.m. in new york, i am betty lou. maybe there might be inflation in terms of the bids for warren buffett, but there is much inflation in the jobs report from friday which led investors to believe may be the fed will not raise rates as fast as some expect it. we only get one, and it will come later this year. the nasdaq and s&p all trading higher. up 4/10 of 1%, the nasdaq also rising close to 1%. you had tech am, health care on friday leading the games. no surprise that financials took it on the chin. if there is fewer interest rates with tightening. that will not be a great margin for many banks. haidi: the low rate environment globally may be here for longer. but you have this interesting dichotomy. u.s. 10 years at

certainly we will be watching, even that we have these remarks over the weekend, the shangri-la dialogue possibility of chinese aggression, we've had the stepped-up military presence in the south china sea. rishaad: he really wants them to mid to 2% of their gdp being spent on the fence. many of them have not been able to get there. let's get to what is going on with the trading positions so far. we're pretty much in the red. ,> major benchmarks in asia sydney and soul down. when it comes to emerging markets, we are seeing them climb for a third day. drag ineeing the shanghai deepened when it comes to chinese markets. pmi is nots supporting sentiment. merging currency against a slightly weaker dollar. 680 for around the fourth straight day. pretty much in line with what was predicted. take a look at the barn space. asian bonds tracking that move higher, and we saw the treasury is given a softer jobs report out of the united states, also seeing gold and the yen going up to dance been -- gains. i just want to show you what is going on with the town in the d in thethe -- the poun wake of th

it's exactly the same year whenjames hilton publishes lost horizon, which introduces the idea of shangri—laf peace and harmony, precisely the world that had been so obviously left behind by industrial warfare that they'd gone through, the world where people could live extraordinary long lives of peace and harmony. and a better world. 450 feet of rock soaring out of the north atlantic, known as the old man of hoy, and a very crumbling old man he is. in1967, 15 million people in the uk watched live asjoe brown and five others took on the old man of hoy in 0rkney, off the coast of scotland. we just had a bit of a slight tangle in the rope there, which stopped me pulling the rope into the carabiner to secure myself. he was then, and still is, among the world's most well—known climbers. but his greatest achievement was nearly 30 years earlier in the himalayas, scaling the unclimbed mountain of kangchenjunga. it's almost as high as everest but harder to climb. some of his fellow mountaineers were involved in the successful ascent of everest two years earlier. they were climbing royalty — joe was

you highlighted that quite well in your shangri-la dialogue speech. can you touch on that again for the committees benefit and the benefit of the american people just how important our allies i are not only in a specific but globally in terms of us securing our national securityhere is objectives? >> senator sullivan, there's an awful lot of talk about asymmetric advantages and competitive advantages and disadvantages. and i would put our allies and our alliances from native to the pacific bilateral multilateral as our asymmetric advantage, especially if you put a list ofe our allies alongside a list ofof china's allies or russia's alliances. you can see the proof coming through from history that nations with allies thrive, and those without them do not thrive. >> so we are an ally rich nation and her adversaries and potential adversaries are allied -- is that when we look at. >> was a perfectly. >> so we should be working to deepen those alliances and expand them, correct? >> absolutely. >> do you think everybody in the administration gets that and i

speakingm turnbull there, of course, later today at the shangri-la dialogue.e's got the keynote speech. anticipated speech. it's going to be a very important speech outlining the government'salia foreign policy stance. >> okay. just to follow up on all of that, with president trump quitting the paris accord, how much of an opportunity, david, is this really for china? >> betty, this is a huge opportunity for china to there,y put itself out world's most responsible leading nation. they can present themselves just as they did after we saw the pull out ofs t.p.p., the trade accord. you saw xi jinping, presenting free as the bastion of trade versus the protectionism we're seeing out of the united states. isn't good --s the climate deal is exis existel china. china needs to clean up its environment. but in terms of soft power, a huge opportunity. >> thank you so much for joining analyzing the turnbull interview. and russiadia discussing trade and defense. where they go now. this is bloomberg. >> this is daybreak asia. i'm yvonne man in hong kong. >> and i'm betty l

terrorism and trump dominate the shangri-la summit.nk still sees growth, maintaining its forecast for this year and next. betty: warren buffett launching

strength, dual carrier operations in the east china sea, one person will be giving a big speech at shangri-la. it will not cut it. no amount of u.s. power will resuscitate american leadership and revive american interest in the face of this challenge. that has to be an economic components, institutional component. as long as countries in the region believe that china is the future economically, our military will not stand that perception. whether there it is tpp or something else, there has to be a major economic trade initiated for it. my personal critique of the trump administration as it relates to asia has been the transactional nature of the way the president has talked about his approach to asia. very focused on north korea saying things like, what will i do, start a trade war? the president does one again -- president of taiwan again, i will have to check with others. because of desires of lowering tensions with china with north korea, as someone who is worked on this issue for many years now, i think many who have would agree, this is the wrong approach. what united states should be d

mattis did at the shangri-la conference but russia has to change its behavior. we're not so good at getting russia to change their behavior these days because the president clearly has quite an ambivalent relationship to russia. as we saw in megyn kelly's interview with president putin, president putin says he has nothing to do with anything. >> we'll talk morgue about that right after the break. thank you so much for helping us kick it off. in manchester last night, a show of courage and defiance in the city still recovering from its own recent tragedy. ♪ somewhere over the rainbow >> just 13 days after the suicide attack outside her concert, ariana grande and a star-studded lineup including coldplay, justin bieber, miley cyrus and others all performing for 50,000 fans in a stadium. the benefit concert raising more than $13 million for the red cross and he the relove manchester emergency fund to support the families of the 22 killed and den ininjured including children. with heightened security just one day aft the weekend attack in london, organizers vowed to

secretary mattis will give a big speech at shangri-la dialogue tomorrow morning. singapore time. not going to cut it. no amount of use military power in the region will resuscitate american leadership and revise american interest in the face of this challenge. there has been economic component, and institutional component. as long as countries believe china is a future economically, our military is likely to be able to bend that perception. whether it's tpp or something else, there has to be a major economic and investment and trade initiative associate with u.s. policy in asia. the third piece, my principal critique of the trump administration to date as relates to asia in terms of criticism has been the transactional nature of the way the president has talked about his approach to asia, very focused on north korea saying things like what am according to, start a trade war? before i call the president of taiwan to get unconnected with president xi because he's helping us with north korea. lots of rumors about freedom of navigation operations that happening until recently because

that discussion, we have indicated to our counterparts, both individually and over the weekend at shangri-lat we will support them in their efforts to address the prospect of returning fighters as well. we have the world's most populous muslim nation to our north. president widodo and his cabinet exemplify a sensible and moderate approach to islamic terms in our neighborhood. similarly malaysia. similarly the muslim communities of other countries in our region. we need to be able to engage with them in a constructive way and make sure that where possible we assist and provide tools that enable them to challenge this threat too. >> secretary tillerson, the australians have spent years of diplomatic effort to address the deep concerns of trade and climate. but the trump administration tossed those pacts aside. now after rejecting the priorities and work, you're here in australia to make specific and concrete sacrifices for your priorities in iraq, syria, afghanistan and north korea. what specific promises have you brought on trade and climate to assure australians do not interpret america firs

secretary mattis will attend the sha shangri la dialogue in singapore where he will meet with counterparts to discuss security issues. with that i'll be glad tieo taka few questions. kevin. >> thanks, sean. i want to ask about the push to the travel ban to the supreme court. is it fair to say one of the reasons the president wants to keep this going is obviously we have a full court impanelled, and if you look back yesterday, it appeared his base was very pleased with what he decided to do. i would also like to ask about some follow-up on the xl pipeline. can you give us some follow up in terms of jobs and development? >> i think what we said with respect to the executive order in question has been fairly consistent since its implementation and the first court action. last night we asked the supreme court to hear this important case and are confident that the president's executive orders are well within the authority to keep the country safe and protect us from terrorism. the president is not obligated to sponsor countries of terrorism, and until he determines they are properly vetted and

in india closing in on record every take a look at some equity movers in asia, starting off with shangri-lay 2014, this after goldman sachs and deutsche bank upgraded the stock to buy optimism's about sales growth in hotel markets. kobe steel is one of the biggest a mixed bag for energy stocks. china's biggest maker of poly cynic on use. take a look at this. we did have the yuan reversing. we also saw moved in the offshore interbank rates in hong kong. we are seeing the overnight drop the most since january, down to 8.68%. manus? manus: thank you very much. you, theify for average price that they are going to get the market is 50.113, the closing price is 50.47. the bidding will start on that. let's talk about one of our business stories in the business community. donald's decision to ditch the pairs climate accord, while disney ceo bob iger, elon musk, they both quit. they went to twitter. this is the first time that he has expressed a tweet and his disapproval and it read this, today the decision is a setback for the environment, u.s. leadership, and for the position in the world. for mor

you highlighted that in our shangri la speech. can you just reiterate that in terms of securing our national security objective? >> there's a lot of talk of asymmetric advantages and competitive advantages, and i would put our allies and alliances from nato the pacific as our asymmetric advantage especially if you put a list of our allies alongside a list of china's allies or russia's alliances, you can see the proof coming through from history that nations with allies thrive, and those without them do not thrive. >> so we're an ally rich nation, and our adversaryies and potential adversaryies are ally poor, is that one way to look at it? >> that's one way to look at it zblch so we should look to deepen and expand, correct? >> absolutely. >> do you think everyone in the administration gets that and is doing that? >> as you know, sir, secretary tillerson worked closely together exactly on these lines. he leads foreign policy and i provide buffer to his efforts. i also know in terms of homeland security, secretary of homeland securi

ernst: thank you for bringing up the shangri-la dialogue. while you where they are, the other countries participating in that dialogue -- what type of support for the looking at from the united states? sec. mattis: much of it is along the lines of what the chairman just mentioned with operation gallant phoenix. guaranteeing information, everywhere from interpol to secret services of various nations working together, so that transnational threats are recognized. galant phoenix is critical. oft is where our strategy working with allies helps take the load off of. for example, singapore has offered isr surveillance aircraft to the philippines. that is the way we need to get everybody working together against this threat, and not carrying the full load ourselves. sen. ernst: thank you. because i am nearly out of time, our special operators have a dw ell time of a one-to-one ratio. this was mentioned in a conversation recently. what can we do? i will tell you it is because they want that. they will not say no when they are given a mission. i thin

one of those amazing moments in american foreign policy, one or two days, big conference in asia, shangri-la conference. the secretary of defense jim mattis had to tell the assembled, quote, bear with us. bear with us. they were complaining about everything the president was saying and doing and about all aspects of foreign policy. most recently paris pact. the fact secretary of defense had to plead for time, that's where we are now. >> speaking of secretary mattis, david ignatius in a moment, trump's reaction to the terror attacks was in contrast to the response to his secretary of defense james mattis. >> i don't know enough about it yet, the details. let me get up to date and i'll talk to you on the plane. >> what -- the london police saying this is a terrorist attack, two dead, dozens wounded. >> i need to confirm everything. i like learning about something before i talk. let me look spoke it. >> really? that's good. at least someone in the white house does. >> david ignatius, that's actually how leaders usually act. secretary mattis is the best of the best. >> it's not funny, though. >>

secretary mattis, it was a pleasure to meet you during the codell that our chairman led to the shangri la dialogue. i've appreciated your commitment to continued positive engagement in the region. while we are allies and partners have been subjected to mixed messages at best from the administration, it is my hope that the rhetoric and the actions of the department of defense will signal consistency. secretary mattis and general dunford, if you could speak about employed forces in the endo asia pacific region, given political and financial considerations, what additional value is gained by having forces stationed on a u.s. territory, and what flexibility does it provide and what limitations does it remove to allow you and your force providers to be ready and ready to engage when necessary? >> congresswoman, the asia pacific theeater is a priority for the united states, for the united states partner of defense. the value of the forward deployed forces in themselves is they are a stabilizing element. if we did not have them out there and had to flow them in the event of a crisis, it could

the shangri-la dialogue is a gathering of defense ministers around the region and many of their counterparts in other countries. there's one asian defense minister who not be there. that's the north korean. i tried many times to get the north koreans to come to shangri-la dialogue and it's been one of the failures every time i have my annual review, i get that checked off as an area to improve on. so let's get serious about north korea. we have four renowned experts to address aspects of the north korean issue. starting with victor cha on my far right who is a senior adviser and the inaugural holder of the korea chair at csis. that's another think tank in town. he's also director of asian studies and holds the ds song chair in the department of government and school of foreign service at georgetown university. from 2004 to seven, he served as director for asian affairs at the white house on the national security council. he's a long-time iiss member and contributor. sue mi terry is asia's managing director for korea. from 2009 to 2010, she was at deputy national intelligence officer for each