i think you don't want shenzhen. that's going to be ground zero for a chinese stock market implosion when it happens in the next few years. and like bob said, it's up 150% in just the last year. it's nuts. >> fda advisory panel coming to a decision on a drug that could be worth billions. regeneron and sanofi. the details. >> after a lot of discussion the panel of outside advisers to the fda did vote yes that the risk-benefit profile of this drug from regeneron and sanofi called preleron supports its approval in some patient populations for high cholesterol. they voted 14-3 yes. but then when they started discussing which patient populations it should be approved for that looked a little narrower than some people expected. they had approval for genetically defined form of cholesterol but then when you got into the areas for people for whom statins don't work well enough, high-risk patients having heart attacks or strokes can't get far enough on statins like lipitor, that was only 7-9 yes. 7 yes, 9 no. even fewer for f

thought they shenzhen composite plunged 6.1%.t index recouped all of those losses in a similar short space of time. what he is looking at is what he called a hyperbolic line and they shenzhen composite. to me that seems like an understatement. it gained almost triple in the last 12 months. that makes the market cap cannot be larger than the whole of the u.k. when it comes to stock markets. you cannot lose in shenzhen. you have not been able to. there are only 1700 companies on the index that have fallen this year. with valuations now, when you look at projected price to earnings, you look at any stock market, nasdaq is only 22. you can see why he thinks this is a market poised to decline. you can also see why you should not that egg instead just yet. as volatility shows today, people are getting more nervous about where the market is headed. jonathan: richard, i guess the take away for me there is the selloff in the morning. the ipo story, china nuclear power is hoping to raise $2 billion. i hear the bids were quite higher. richa

he was sentenced after proceedings in shenzhen. facebook has announced that its oculus virtual reality headset will work on the xbox one. oculus will start to ship its consumer version of the headset in 2016. the device lets people immerse themselves in games or experiences. now let's look at what is still to come on "the pulse." at 9:35, we will hear from the mexican president.

the shenzhen connect could be launched this year.g taken. 6% of aw, less than shares are owned by foreigners. this would be a tectonic shift. track thel funds msci. $1.7 trillion worth. angie: what are the risks here? stephen: some of the problems would be the dominance of chinese shares. abouty, h-shares make up seenf the mxef, and you've asia dominating, about 69% of that index. hong kong, including south korea and taiwan shares, these are about more than half. you are going to see even more dominance, lack of diversity, for this mxef in the china share market. six of the top 10 shares in that market index are chinese shares. if you add more, the diversity is an issue. angie: no doubt. the world is focused on the chinese market right now. there more than one china market. let's bring in bloomberg intelligence director of research tim craig. aere has been a little bit of variance, you can say. people look at a-shares an h-shares every day. tim: it has been fascinating. if you look at the shenzhen 9,posite, since september and we sor

the big talk was in china where there was a drop in the shanghai and shenzhen.dex is about 20% off the multiyear high but you have to understand it in the context of the cha zi rally. the shanghai we're still up, there was a 60% rally from march to june and it's still up 30% for the year. the shenzhen is up. morgan stanley has a thoughtful piece on the china a shares. this is probably not a dip to buy, the big comment. they think the probabilities that we're at the top of the cycle for shanghai and shenzhen. they had four issues al of which we've talked about on this show. increased supply two earnings and a slowing economy, three, high valuations and high margin debt. all of this is well known. what would change things? an improving economy but they floated one idea. china should institute 401 k programs. they don't had one tax advantaged in the stock market. but that'll take a long time. not clear if this move down we've seen are over yet. let's talk about ipos. talk about the one behind me in a minute. a mixed day for ipos again. serious therapeutics priced a

the blue line is the shenzhen composite.he red line is the small mid-cap growth index, still 52 times. interesting, the white line is the msci china. we still have a massive divergence, disconnect, if you want to use the phrase, between china shares that trade in hong kong and what trades in the mainland. yvonne: ityvonne: -- yvonne: it looks flat right now. >> if only we had a crystal ball. yvonne: we will see how things go. thank you so much for joining in on the discussion on this crazy run we have seen in china. time for a look at the corporate stories making headlines. the faulty airbag crisis is continuing to weigh on honda. about 7%014 profit by because of the cost of recalls. operating profit came in about $5 billion. net income was about $4 billion. honda has confirmed and eight fatality -- confirmed an eighth fatality. suzuki has told investors that arbitration to force vw to sell back a 19.9% stake has concluded. relations between the two soured after suzuki agreed to purchase engines from a rival. ebay's board ha

the smaller shenzhen composite, which is a tech heavy index, fell 6% overnight. the declines came despite the central bank cutting interest rates to record lows. >> then there's the iran nuclear talks. the white hou confirming today that negotiators will likely miss their self-imposed deadline that's tomorrow. but negotiators will remain in vienna past the deadline to air . among the sticking points the rate at which sanctions would be removed on iran and inspections of iranian nuclear facilities. >> for more on all of those global flashpoints, andfs we're joined by david kelli, chief global strategi at jpmorgan fund and jim paulsen, chief investment strategi. gentlemen, welcome. first of all, david, i'm going to start with you. there are s that impacted the market today. bu let's start with greece if we could. how do you think this is all going to play out? what res? >> it's very uncertain and of course that's why the markets so much around the world. what we think is the first important thi to recognize is that unless something strange happens here europe is re

shenzhen got slammed overnight compared to thehang seng. if these continue to. steam roll and get larger then the fed has a legitimate reason to say the u.s. might look fine but it won't necessarily with all these three factors playing at the same time. >> particularly the chinese. more than in puerto rico and greece. >> absolutely. look, china db again, again even in isolation, they're 70 export they have a bigger problem ultimately than we do. depending how this week plays out, if the market can stabilize it is not the four horsemen of the apocalypse. if we start to go into free fall around the world, i would certainly protect profits at home. >> china is the world's second-largest economy. we'll talk more about china later on in the show. check out ron's story on powerlunch.cnbc.com powerlunch.cnbc.com. >>> to the american housing market we go. a bullish sign today. a key forward looking indicator of home sales rising to its highest level in nine years. diana olick is live in washington with the details. >> hi ty. it was a gain but just barely. realtors are s

shanghai shenzhen kind of like their nasdaq and the hong kong hang seng.ng at the asian side of the etf, they need to know in china what they're buying. it is the wild west in certain ways. it is 1999 here in certain ways. is it not? >> exactly. the shenzhen is tech heavy when they describe it as we have always described the nasdaq here. i have been a huge fan over the years, when in doubt, go do an index fund from someone who's in the active management business. but for a lot of people the index funds make a lot of sense at least for a corp. in the case of china right now, you hit on a very important point for any viewers thinking about klein and taking advantage of this down draft. you really want to go with an active manager who has the history of being able to traverse these ups and downs because they are so huge. a marketplace that's down 20% which is what the shenzhen is -- as of yesterday, it entered into a bear market. that market -- still talking about about doubles over the past year so there could be no are downside. you have to have active mana

they needed to create another hong kong and shenzhen and wins . market just closing out this morning. it is lunch now. >> you look across these markets, obviously, let me summarize it. with theg is up exception of new zealand and the shanghai composite. we are up about one third of 1% overall. i want to look at the oil and gas players here. you have this huge pop up in oil prices overnight. crude around 70 something. we have moved on with comes to airlines. why showed you of course is an update. again, that is down. if you look across the chinese airlines, eastern and southern -- all down as well. it really depends how long oil prices stay at this air level. while we're talking about china, transport stocks -- carmakers are down. jp morgan going the opposite direction. reversing the weakness. power, that is the other nuclear player that went public late last year in december. now trading below five dollars. this had anistaken, ipo a little under three bucks. very substantial, i want to mention that nuclear power -- very good day, up 40%. turns out

take a look at the u.s., 20 telling dollars, aspect has seven chilean, and the shenzhen, -- 10 chileann. mutual funds listed in hong kong are now able to go into china and into the mainland and get investors there. you have more money flooding into those kinds of investments. have a combination, big retail investors. something like 81% of the market trading turns over once a month. they trade at least once a month. olivia: huge amounts of retail investors. change in regulations. the central bank greasing the wheels of stimulants. pimm: it was from real estate. olivia: we are saying that, watch out now. pimm: you have to keep having new money come in in order to keep the stocks going up. if that does not happen, there's nothing underneath it. olivia: thank you. with us for the next hour. much more, including, do you have $85 million to spare? details, next. ♪ olivia: welcome back. sales of homes in the hamptons, the posh long island enclave, are on the rise again. it was by two and a half percent $920,000. $20,000 -- great to have you here, dottie. fullye market flee bounced back? dotti

up next, the shenzhen index not just yet.alking about the german bunds, he failed to make a profit, that is because he predicted, you know, he did wagering and he didn't go can all short on them at the right time so people talking about this a lot on social media, one person saying, how would you suggest shoring the index -- without options available, can be risky with china qb. another person saying, he is working on the timing this time. the forecast was well-timed and not necessarily well executed. of course, timing is everything. it for thist is thursday, stay tuned, it is asia edge. biggeste of the worlds ,eavily owned pr agencies working with multinationals and governments, this is bloomberg, asia edge is next. ♪ john: this actually is tiddlywinks that we are playing. >> on our menu tonight, the democratic party platter. first, family style. in our new iowa poll we asked republicans, would it be a good idea if george bush advised jeb if he became president?

you can see shanghai up 4.7% shenzhen up similar amounts. company is china's fourth largest brokerage by assets and it represents the world's second largest ipo so far this year. it also has a listing in shanghai and the stock is up 20% year-to-date. you can see up 4.1% at the moment. meanwhile, china national nuclear suspect looking to raise $2.13 billion. some analysts predict the ipo could put further pressure on the stock market. >>> big market swings in china's stock marks last week but its mainland shares have returned positive gains for 12 of the last 13 months. are shanghai stocks an obvious buy? >> it had one of its most volatile months in recent memory. last thursday the market plunged by over 6.5% briefly nearly correction territory. >> chinese stocks tumbled. several brokerages tighten margins. >> reporter: it was the drop for an index that has been one of the world's best performing. it's up more than 40% this year alone. but for many the dive wasn't entirely unexpected. analysts have been saying for weeks that the shanghai comp

ideas like hong kong-shenzhen connect will become important.usan: import numbers reflect a mastic weakness. to what weakness, -- domestic weakness but not paring what we are seeing with equity markets. we have mostly retail investors putting their own skin in the game. is there a disconnect? stefan: it is a more come located issue. car sales. in china, are doing is to me well, especially if you look at the three german luxury carmakers. those numbers speak for themselves. yes, i agree that on an aggregate level if you look at the imports, it is worthwhile to question, how strong is the chinese consumer? but if you go down a few levels below in terms of company statistics, bmw, audi or doing very well in china. susan: not doing so well, these g-7 greece talks. merkel. but there is the united front apparently against greece is greece going to rise to the occasion? stefan: we have the bungling of the june payments. we are no longer focus on the five, the 12 the 19. everything is push the end of june. nothing material has changed. they had more tim

it has been a down day for the shanghai and shenzhen indices. quite a bear market for the shanghai composite but in 19 days, it has fallen almost 20%. caroline is here. what are you watching? caroline: i'm going for green for a friday. i'm ending on the best performers on the stoxx 600. k+s surging. it is all about m&a. it is all about being potentially snapped up by a rival in canada. a canadian fertilizer producer. they are offering some 40 euros a share. currently up. they feel that it undervalues the project, the growth prospect for this company. 40 euros doesn't cut it. at the moment, there is no decision under way. k_s currently trading higher. tesco and sainsbury are rising for the same reason. now we know that dave lewis, the chief executive, had scandal after scandal because we unveiled that account in excess of 260 million pounds. clearly this is a company that is tarting -- starting to turn itself around. we saw like for like sales still down 1.3% in the first quarter but many were expecting worse. the volumes are better. we are seein

not sufficient and the sense of panic we have been seeing in shanghai and shenzhen as well. jon: thank you very much. back with morgan stanley's global head of ethics strategy. hans, when you look at the situation in china, have they cut rates because of the equity market? can you link those two? guest: i think that the authorities look primarily into the economy. they gave the signal earlier this year that they wanted to have a higher stock market and that could encourage consumer credit a man. when you look into what happened in the past year, we did see that credit demand was increasing but you did not see corporate deposits increasing at the same time. when you have a credit demand deposits not increasing, you can assume the replacement of existing credit is taking place. so one credit becomes new and then rates are lower and again so it has a zero effect on the economy. they try to get the consumer on board and maybe the equity market is playing in here. but it is quite a risky game because you have an overvalued housing market and your inflating the equity market and i

they the smaller tech heavy shenzhen also slumping for the second day in a row. let's get out to sri. he's in singapore for us. >> wilf i told you so and i said there was a lot of leverage in this market and we have been saying this for quite sometimes and with all the excess leverage especially among the retail investors we're going to see a high degree of volatility. that's what we're seeing right now on the down side. the same themes have been dominating through the week. it's an expectation that we'll see a further clamp down on he illegal margin financing to try to weed out the excess leverage. we have seen a lot of ipo activity. drawing interest and liquidity away from the main board and the other factor was the chinex. this is chinese tech start ups and it's the poster child, if you will of what the market has gone through. down by 6.4% at the close. overall, quite a positive tone for the markets in this region. supported by wall street but doing a pretty good job of shrugging off the greek jitters. that's where we stand. >> welcome back here. there is not

. >> shenzhen at well. that market is dominated by individual investors who are buying stock on margin. there's about a million brokerage accounts a week being opened up by individuals who have precious few options. they can go to macao and gamble -- >> it sort of feels like the late '80s in japan. >> it is 1989 in japan. that's what we're saying today about china's dominance and in some ways -- in japan's case mercantile system in china's case, state-controlled system. when you take apart the chinese economy it is not that strong there is a lot of overcapacity. one read complained that i conflated our debt levels with total debt levels in china. but their debt is different than ours. if you look at state-owned enterprises, their corporate debt is government debt. municipal debt is what the government is buying there as part of their qe. debt levels are actually scarier in china than here in the united states. >> an important point for our viewers, understanding the differences between the indexes. shenzhen

he was sentenced after proceedings in shenzhen. facebook has announced that its oculus virtual reality headset will work on the xbox one. oculus will start to ship its consumer version of the headset in 2016. the device lets people immerse themselves in games or experiences. now let's look at what is still to come on "the pulse." at 9:35, we will hear from the mexican president. at 9:45, we break down the huge numbers the "jurassic park" franchise as the latest film hits the big screen. at 9:50, we take a look at the new ferrari causing controversy among purists. ♪ francine: welcome back to "the pulse." we are live on bloomberg tv and radio. let's head back to munich, we're joined by erik nielsen. i want to touch on volatility but i want to get back to the point about greece. you said that if greece were to leave, it wouldn't have any capability. we don't know what comes next. is this one of the reasons that you don't think they will leave the eurozone? because then it is the abyss? erik: sorry i couldn't hear the last part of the

the next trade he says, is chinese stocks among particularly the shenzhen shares. he said, not yet, but look out for it. back in april, he did talk about german bonds in the short of a lifetime. he got the timing a little wrong. hopefully he will get the timing right this time, mark. mark: thanks a lot. don't worry about friday's imf payment. that is the message from greek prime minister tsipras. he says a deal is in sight. all signs are leaving austerity measures behind. for more, let's bring in en in brussels and hans nichols in london. what is behind tsipras' conf idence today? hans: he says his proposal should be the basis for negotiations. the problem is, his creditors don't seem to be on the same page. here's what he had to say about the proposal handed to him last night. he said, ideas like cutting benefits for low income pensioners and raising rates for electricity by 10 percentage points can't be a basis for discussion. he did say they were close on this primary surplus idea. take a look at these numbers. this is what they expect to have in 2015. 1% in 201

cut.ad: you have a rrr .ou would expect i think the shenzhen market was down last time.ket tells us there is a lot of uncertainty in the market. a lot ofd of the day, the people are going to cut interest rate to make that cheaper. rishaad: there is talk that margin trading and margin lending. guest: people will have a pretty strong reality check. i think we will be seeing a pretty sharp correction. i don't know when that will happen. rishaad: how far is the rally that we have seen down to house prices and the housing market in .hina looking fragile guest: that has had a significant impact. have to park your money somewhere, and what can you do ith it in china? real estate. rishaad: out of all the ipos this year so far, which one has been the most interesting for you, and which one has been the most successful? guest: i would say gs securities in hong kong. certainly compared to some of the other ones. in the pipeline, more in the financial sector. i think we're going to see transactions by insurers as well and i think we will see transactions the medical or health care s

i looked at the shenzhen index, up 137% this year. what is driving that? anastasia: liquidity.uidity is coming from two places. first is the investors being able to access mainland shares. we talk about you 40 maybe it is not fully there yet. the utilization of the quota is not actually at 100%. that is the first pillar. the second take filler is the -- big filler is the liquidity from pboc. determined to deliver 7.5% growth, they have to deliver growth but not inflate the bubble. vonnie: is the state happy with this? valuation increases help state owned companies. anastasia: there's the wealth effect helping the economy. the chinese government is careful not to inflate the bubble. the way to do this is to back regulations. tom: what is happening on trading desks? i think they can trade for fullface and credit. what do they do for a taiwan? is it like the old days? pick up the phone, hello, are you there? anastasia: it still is very much on a negotiated basis. tom: it is still somebody going hello. brendan: what are you doing? vonnie: using a tin can. tom: it is really importan

the tech-heavy shenzhen index down 20% from its peak area this month after a plunge in the last two weeksday's single best chart. i know that you actually had the single best chart yesterday. tom: there is china, there is a trend, and up we go. that is a regular old chart. we spike up and we come back. we have a long way to go to get back to trenton. -- get back to trend. vonnie: they are still trying to buoy this market. tom: willem buiter is with us. is china a real system? greece has to work within a real system in europe. is the linkages of china government, fiscal and economics, over to the central banks -- is it a legitimate system or is it completely jury rigged? willem: it is a recognizable em style financial system with a liquid stock market. not much else by way of financial asset markets. the foreign exchanges are still controlled to a significant extent, so the markets are a liquid and thin. -- our -- are illiquid and thin. it is an attempt i think, to deal in their markets. unless chinese government improve significantly. i do not think there will be a lot of voluntary takers

>> from a valuation perspective, shanghai and shenzhen have been flashing caveat emptor signs.hat the impact that will be on retail investors in china and overall economy. we see that being a risk. the government had somewhat of a tacet involvement in this supporting the markets, trying to create the wealth effect. if you see a prolonged decline, the issue is does that have an impact on the real economy? >> simon, this correction seems to be happening more quickly than perhaps you anticipated, no? >> it's happening, but i've been saying i thought the market was overvalued. i would agree that the real risk is whether this has an impact through the wealth effect on the chinese economy. to that i would say two things. if you look at the market on the way up we had more than doubling of the stock market over the last year. if you look at what happened to retail sales, retail sales were only up 10% year on year. the wealth effect on the way up wasn't there. why is that? quite simply only about 7% of chinese investors or chinese individuals are set up to trade stocks. the market gain

the shanghai marge and shenzhen is up msci the -- is going to aknown if mainland china shares will beded. the eem is the big one that everyone owns. that index, if they add, china mainland shares to that a lot of western money manager will owning shares in a big way. that has a lot of people talking about how it would change the dynamic of global investing. now, china mainland shares have been a real roller coaster recently, but on the whole, shanghai sup 45%, that's not a typo up 107% over the year partly on the stimulus from the chinese government partly on more trading, but also anticipate maybe they will be include the a-shares. this is why china's been quite angry about their weighting. china is only 3% of the global weighting of a stock market. u.s. is 50%. china is 15% of the global gdp. their argument is simple. we want more weighting in the global indexes. remember, everybody uses these indexes now, so it will change the way people invest. finally just a quick note. a lot of discussions over the weekend. the industrials on the to many line down 9% on the transports to up 1% o

>> the shenzhen index went from 2200 to 3200 in a month, about a 40% return in a month. if there is a lesson if something gets too hot, gets oversold, you have to be a near-term seller. there are so many short sellers in this business. they'll gravitate to the stock that's done really well. i wouldth rah rather be in the u.s. than china. >> what about fundamentals? is china fundamentally a story for people to get involved with? >> china has a secular growth rate that is above most of the western world. over time i think it will go up. they are also good at financial engineering, which we are good at too. we do more financial engineering than they do. i would prefer to be in the u.s. after this correction passes it will take two or three months of downside pressure to take off the overbought condition china is in. maybe we can start building a bull case for china. right now, it just got too hot and will attract too many short sellers to be there short term. >> if you are looking five years out, maybe longer would it make sense to buy it at these levels anyway as you watch

shanghai is roaring back and the shenzhen roaring back. in the u.s. i was impressed with lennar.ic and the beat was because the arch sale price was better than expected. i saw estimates that 3% people were guessing. they got a lot more for their homes than they expected. there are a few more incentives but nobody is complaining about that. look at the prices. lennar, the whole home building group is strong. these stocks are all starting to come back and i think they can withstand slightly higher rates nnlt on the sysco u.s. food merger, they haven't said what they're going to do but you can see the stock is holding in there. there are a lot of good things about the company as a stand alone. they have a great dividend. 3.2%. estimating growth for several years into the future but the problem is there's no real plan b that i can see. i called around. i don't know what anybody thinks they're going to do. they can talk about more cost reduction. the business transformation effort they have. they own a lot of distribution facilities. with what we saw the other day with some companies

as mike indicated -- >> the shenzhen region in europe. you get there. >> yes.t is something is something i tried to confront with regard to how they manage this. we have been sharing a lot of information back and forth with some of the means and processes we are trying to employed attract foreign fighters. what is what is also clear to us is it needs to be particularly with foreign partners the whole of government approach. we are trying to share with them the benefits we have experienced by ensuring that the free flow of information among the inner agency in many instances we develop an effective relationship with a foreign partner only to discover that the partner flow is not optimized to try and ensure appropriate law enforcement has been alerted. the bottom line is things are trending positively in the information sharing. >> the bilateral trade. >> multilateral. multilateral. the other challenges again. we estimate about 4000 in total foreign fighters flowing. what we have seen foreign fighters from over a hundred countries. some of our other partners) hav

shenzhen a lot of fast tech companies. down 6%. the sen shen is still up 94% for the year.ation of what's going on. look at that chart for the last six months or so. the market there is dominated by young investigators. mom and pop households. 4 million brokerage accounts in march alone. this have been millions of accounts opened in china in the last few months. that's good news and it's a problem. as the markets run up they stay in but get out fast and those are signs of a little bit of concern over there. i think a correction is certainly in order. there was a flood of ipos over there this week and i think that's also putting pressure on the market. >>> the wellness fad keeps going. mind body is going public today. they provide software and help for yoga centers, health care centers to manage their businesses. $14. and the restaurant businesses are high. we talked about wing stop and bojangles'. and another one last night priced at $20. another big string of victories for those restaurants. ipos, finally action. next week 14 ipos. three energy companies, three cloud-based

the shanghai and shenzhen up very nicely in overnight trade. we're all caught up on what's been happening in the markets here and around the world. back over to you. >> a very turbulent day, mandy, in the currencies the euro versus the dollar. certainly yesterday and the euro under pressure right now. let's find out what the currency market is signaling about the drama unfolding even as we speak in greece. sarah eisen is at the new york stock exchange. >> does seem odd that the euro is going through an existential crisis that threatens the viability of the single currency and the market kind of a big shrug. it is down today, the euro but still up for the week and up sharply yesterday so the question is why the resilience? here are some possible scenarios going around the desk. trade remembers thinking a yes vote is looking more likely on sunday meaning greece will stay in the euro. also, there are no signs of immediate contagion threatening other countries and the greek troubles could actually push a federal reserve interest rate hike later. th

shenzhen in china doubled in value. the italian index up 18%. the french cac up 14%.ber, you have to duct the move on the euro. is this a time to continue to invest overseas for growth? let's bring in bill speith. >> i'm bullish on equities in general as a general asset class. that includes the u.s. for me it's based on where we are in the economic cycle. we are in mid cycle edging closer to late cycle. that is not quite as favorable a position to be in. in europe we are mid cycle but with more of a dash of early cycle on the backs of the q oefrn that's happening in europe right now. the u.s. trades at about 17 forward pe. germany is at 14 forward multiple. yet in the same stage of the cycle. >> the opportunity until lately did look like the ramp was significantly higher. why isn't europe the obvious trade here? why would you go with the u.s. instead? >> is the united states in mid cycle or late cycle from the economic recovery? the irony from that is we still have a housing depression and we are six years into the recovery. if you study economic history books, and th

as mike indicated -- >> the shenzhen region in europe. you get there. >> yes. that is something is something i tried to confront with regard to how they manage this. we have been sharing a lot of information back and forth with some of the means and processes we are trying to employed attract foreign fighters. what is what is also clear to us is it needs to be particularly with foreign partners the whole of government approach. we are trying to share with them the benefits we have experienced by ensuring that the free flow of information among the inner agency in many instances we develop an effective relationship with a foreign partner only to discover that the partner flow is not optimized to try and ensure appropriate law enforcement has been alerted. the bottom line is things are trending positively in the information sharing. >> the bilateral trade. >> multilateral. multilateral. the other challenges again. we estimate about 4,000 in total foreign fighters flowing. what we have seen, foreign fighters from over a hundred countries. some of our other partner