rishaad: the long-awaited shenzhen link opens today. gone?pokÉmon it's rival leaving pokÉmon in the dust. rishaad: the currency markets, that referendum, italians voting no to thengly, 59%, constitutional changes. haidi: we were expecting a tighter race, but a decisive outcome came in quickly. take a look at my bloomberg. this shows the plunge in the euro to lows we have not seen since march 2015. this poses a lot of questions in terms of regional stability, italy's banks. haidi: that is one of the biggest concerns, eight thanks perhaps in danger, facing problems with balance sheets, haidi: failing stress tests as well. that's right. not seeing much movement when it comes to dollar-yen. where is the safe haven demand? rishaad: gold. anyway, the open in singapore, taiwan, and kuala lumpur coming online. it up, the to set demand for havens, coming down to the fact how the market was position coming into this week. the governor of the central bank scheduled to speak. that being said, money coming into u.s. bonds, that is your yield right there.

that is where the shenzhen is different from shanghai.n on the type of holdings they could have. are has been a huge flow southbound because of the depreciation of the renminbi. which sectors will gain the biggest boost? >> i would believe that the themes will be the discounts. the aha discount. it will still be very attractive. i would also think that some devalued stocks will be interesting for domestic investors to diversify. that is why we have been very keen to start our own -- our onshore business, just in time for the shenzhen connect. we expect quite a bit of southbound flow in addition to the northbound flow into china. betty: good luck on that new project. en.ole yu why older people are spending more in japan, and have it is affecting the economy. this is bloomberg. ♪ betty: this is "daybreak: asia." i am betty liu in new york. shery: i am shery ahn in hong kong. senior citizens are spending as younger consumers are holding back on pursestrings. i went to bring the north asian economy editor henry honig. what does this tell us a

they will have access to what we call china's nasdaq in shenzhen.gnese investors out, they will have access to a range of small-cap stocks not previously available. haidi: i guess they are managing thectations because shanghai-hong kong stock connect did not take off. these are high-growth, new economy stocks. also, more prone to speculation, shall we say. >> the authorities at the exchange in hong kong and shenzhen have been keen to dampen expectations for the launch in early days. take up, be gradual part of the bigger picture of china's opening up, reforms, etc. we have seen the shenzhen exchange issue cautionary statements on their website to comingrs, thinking about to hong kong, to be wary of some of the tricks in the small cap's segment here. rishaad: are we going to see any kind of blurring between the h-shares and a-shares? it is hard to say at this stage. .e said that two years ago it did not happen for various reasons. i see no reason why should happen now in the early days. thei: it also feels like stars are aligning. i think i'm mixing

shenzhen stocks fall most since september.il surges to its highest in 17 months after opec's historic agreement with independent producers. >> donald trump saying the one china policy should be tied to trade. the fed prepares for its last meeting of the year with little doubt about what policymakers will do. it is 8:00 a.m. across the emirates, 5:00 a.m. in london, i am tracy alloway in dubai. angie: i am angie lohan and hong kong. welcome to "blommberg markets: middle east". it was the oil surprise, but as we look to the next event, it's all about the fed on wednesday. tracy: that's right. ahead of the fed meeting, i'm looking at inflation expectations. this is one of the fed's favorite measure of that, the five-year-five-year forward even break. it is nudging above 2% for the first time in quite a while. oil plays into that. if we have a rally in oil prices, you would expect that two feet in two inflation expectations and consumer prices, so it looks like the fed will have to consider that. almost everyone is expecting a rat

shenzhen, new home prices down by 0.3%. beijing unchanged.ling measures that have rolled out from september in many cities and locally as well, administrations have also brought out extra curb on properties. year over year we see the processes jumped. shenzhen up by more than 28%. than .8%. by more this is what authorities are concerned about. this big jump in prices. cooling measures to some extent but they are worried about property. this is one of the things the committee meeting was working at , they need to find a way to deflate and control financial risks. officials laid out steps on deflating the real estate bubble, including limiting loans for spec it is homes, purchases, and limiting supply. coulde said the property not be struggling. they have also said from this meeting that houses are to be inhabited, not for speculation. do notthat they really like property speculation going on. china, of course, they are moving to tighten the economy and even allow the possible impact of that. they are more effective in terms of cooling down the

hong kong, the hong kong-shenzhen connect is back and japan selling off.n the middle east, what is happening there? a busy dayhas been of trade in the middle east. we are two hours away from the opening of the emirates markets 10:00 a.m. local time. this is how the markets closed upsunday, volumes in dubai, 1.7%, downside pressure in abu dhabi. are watching saudi arabia as they continue that rally, up .5%. foreigners picking up shares in egypt as well. let's look at first word headlines from around the world. here is haidi lun. headlines, political john key says he will stand down as leader next week and quit politics altogether at the next election. after eight years in office, he says he is not a career politician and it is time for someone else to lead. he has backed bill english as his successor. the south korean opposition may have secured a enough votes to impeach president park over the influence peddling scandal. motion is backed by 170 one opposition lawmakers, plus 29 members, which would just reach the 200 votes required. addressed -- will addre

, -- tanjin, shenzhen, in shanghai, all of over 25%, more than they were a year ago.hat is a real huge mountain that we have seen this year. bubblew, is that territory, and is that going to pop in 2017? carlos: yes, that is a very good point. again, we saw an update in real estate activity in the second half of 2016, and i was one of the large contributors to growth in 2016. we have asset bubbles in first and second tier cities like you have mentioned and the authorities have actually moved in to implement regulations that try to curb the rising housing prices. this means that real estate avestment will not be such significant growth factor in 2017 and growth, it remains to be seen whether the housing bubbles will burst as a result of these measures. the authorities are much more comfortable letting that sort of happened because they needed more growth momentum, which now is tolerating slower growth in 2017 read it is most likely they will continue to implement further controls. anchor: all right. we will certainly watch for the impact overall on the economy. carlos c

the shenzhen—based company, which competes with sweden's ericsson for the top spot in the global marketach $7118 billion. the government is considering plans to allow learner drivers on motorways for the first time. they'll be given access for lessons with an approved driving instructor in a dual controlled vehicle. it's part of a plan to improve road safety and give learner drivers a broader driving experience. sangita myska has more. the proposed changes to both driver and motorcyclist training willing will improve safety. compared learners will be able to have lessons on a motorway with an approved instructor. the biggest changes are for motorcycles. the training course which allows them to write and accompanied will be updated. motorcycle training will also move more online with novice riders having to take the retest and those holding a provisional licence will also have their certificates revoked if they get more than six penalty points. the rac have welcome the proposals saying that changes are needed to help modernise driver and motorcycle training. a study has found that people

all-day visit the naval base -- shenzhen abe visit theinzo site of the pearl harbor attack.eview of house and senate hearings from 2016 on toppings -- topics including the flint, michigan water crisis and wells fargo unauthorized accounts scam. had opened 2they million accounts, fired thousands of employees for improper behavior, and cheated thousands of your own customers, and you did not even once consider firing her ahead of her retirement? >> we will remember some of the political figures that passed away in 2016, including former first lady nancy reagan and supreme court justice antonin scalia a. at eight, our in memoriam program continues with shimon peres, hamed ali, and john glenn -- mohammed ali, and john glenn. >> join us on tuesday for the live coverage of the new congress. watch the official swearing-in of the reelected members of the house and senate and the election of the speaker of the house. for all they live coverage from capitol hill begins at 7:00 a.m. eastern on c-span and c-span.org, or listen to it on the free c-span radio app. next on american history

than 800 chinese stocks. >> from a foreign investor's perspective, shenzhen is the story of growth.f we look at next year's growth expectations, we are expecting the average citizen to grow about 20%, versus shanghai roughly flat. that really drives the momentum for the stock. definitely, there is more of a small cap, which probably a foreign investor would shy away. >> i guess the most significant change is really the removal of the overall quota. that quota, initially, was put there because there was a pilot, and there was not a clear certainty as to whether it would work, whether it would create unintended consequences. i think the removal of the quota is really the manifestation of a great confidence that this program is going to be great, not only for investors to be able to trade freely and easily, but at the same time allow the risk management to work. >> french drugmaker sanofi is reportedly preparing a bid for switzerland's actelion, potentially challenging a move by by u.s. health-care giant johnson & johnson to acquire europe's largest biotechnology firm. why would sanofi

george: i was in shenzhen, china. were looking for manufacturing partners.t with a few companies there as well. i am not going to say who. you know, the other thing about open sourcing this, there are so many more jurisdictions than the u.s. the u.s. government may not like what i'm doing, but some other governments may and hey, we would love to work with you. emily: is china more open to i george: i don't know. to be honest, i do not believe that it would be easier to navigate the regulatory environment in china, where i do not speak chinese, versus the u.s., where i speak english. but i don't know. emily: so, you know, folks like you have been willing to challenge regulators, but more broadly, people to not want to take that kind of risk. i wonder, how do you think regulations are essentially holding back self-driving car technology? george: i mean, again, i can really only comment on my specific case. in my specific case, they tried to regulate a product that was not even available for sale. they actually gave me 10 days to under oath provide them the use

charles: hong kong and shenzhen are officially linked together now, both ending in negative territory. the link allows foreigners to buy bankshares at 800 chinese firms while giving mainland chinese more access to hong kong listed companies. there is a bridge between china and the rest of the world. this is touted as china's latest effort to prove its capital markets are gradually opening. genie: charles, thank you so much. it is now time for the review. -- it is now time for the purpose review. pressr the purpos review. let's start in italy, were italy is waking up for this incredible defeat of matteo renzi that led to his resignation. >> let's start with the left-wing daily. they, like the majority of italian papers, are leading with a photo of sunday night's announcement. renzi is indeed stepping down. ae no vote won, and then i lost, andrenzi -- " it is my chair that got the chop." he wanted to slash the number of senators from 315 to 100. but as he admitted sunday, the only one losing their seat is in fact him. genie: how is a more centrist paper reporting this news? >> it essent

house prices in the city of shenzhen have increased by 62%! the situation is not much better in shanghai. reporter: we're in shanghai, on the sixth floor of an apartment building. the real estate agent guides us through the gloomy hallway. a one-bedroom apartment is up for sale, some 80 square meters in area. wie feng has been looking for a flat for two years now. and the offers seem to get crazier with every day that passes. the apartment isn't very attractive, but it's centrally located. the view is also rather humdrum. wie feng was hoping for something a little better. he asks what it costs and is shocked by the answer, the equivalent of more than 1.1 million euros. >> frankly speaking, this desire is always, you know, kind of frustrated by the reality that it is so expensive and so old, and i can't really picture myself living in this apartment. reporter: welcome to china's commercial capital. here in shanghai, apartment prices are rocketing. they rose 20% to 30% this year alone. people who want to buy and who aren't exactly swimming in mo

but there is always an exception model5, she was crowned of the year in shenzhen, china.en they say we want a black girl, they mean black like, i don't know, lot -- not like me. mentality.s a since then, now in fashion, especially african fashion, they are showing a lot of black girls. it was a way of fighting back against skin lightening. it's really common here in africa. for me, winning this kind of prize is worth the battle. >> the festival is also a celebration of west african music. >> we are singing for peace. so that thesinging politicians and everyone can come together and so that our country can be united in good health. the politicians, the businesses, we need to stand shoulder to shoulder so that our country is really well-known the world of. today, no one knows the nigerian flag. when you say niger, people think but we're fighting for recognition under the nigerian flag. >> they have joined forces to show that fashion can support industrial development, result that can help create jobs. >> we join development projects together with cultural projects and we ca

apple's been talking with the supplier about moving some of its assembly jobs from shenzhen to america. the biggest threat to american jobs in the future isn't the chinese, it may be robots. american factories make twice as much as they did 30 years ago but they do it with 1/3 fewer workers thanks to automation and automation is expanding. mcdonald's is using kiosks. the home improvement chain lowe's introduced robots. charming customer service robots that seem like no threat at all. in fact, your kids might enjoy a stop at lowe's on a saturday afternoon. one guy whose job will always be safe is marco macaro because he makes the robots. he's ceo of fellow robotics. makes the lowe's boots joined by sarah lacey and laura mandaro of "usa today." thank you for being here today. >> thank you. >> i don't know if this is much of a threat to u.s. workers because your robot doesn't have any arms? >> how can we help in a better way the customers coming into the store? we're seeing a lot of innovation happening in that space. how can we tell not just by greeting people with a handshake but how ca

hashong kong shenzhen link had a lackluster start up and investors are pushing firms. going on? >> lackluster is an understatement. yuane first day, 3 billion . 50,000 u.s., dollars of the quote that was used up. rishaad: that is it. southbound any better? no, equallyal -- back. this was supposed to be a big brokeragesinese which are the enablers of this kind of trade. since that has not happened, that is not great news for the brokerages. shanghai also had a dismal start. what do they say about the future? >> do you believe in chinese stocks? down to.hat it comes that kind of trading has not been great. purchasing chinese stocks has not been great. there has been one and there are more coming because of the peg to the dollar. rishaad: -- >> there is a problem there. chinese brokerages have another problem which is bond exposure. we know where the bond market is going right now in china. rishaad: surging, no yields. >> chinese brokerages have about 40%-60% of their books in bonds. that is what they disclosed. recently, we saw a small chinese brokerage say they had some

property developer upped its stake in another property developer, and that followed comments from the shenzhen stock changes saying they are going to be monitoring the stock acquisitions from evergrand, particularly from the insurance unit. they are part of a three-way tussle, there is another company that owns 24%, and it borrowed money from brokers, offering products to their wealthy clients. there are a number of actors involved in this, including an insurance company and 4 c life. we heard from an analyst who said these leveraged acquisitions do pose large financial risks, and that is why officials here are now so concerned. >> tom, thank you so much for joining us. tom on the regulators slamming he acquisitions. coming up, australian banks, the latest account numbers. we have them live for you next. >> breaking news out of australia. paul has the numbers from sydney. better result than expected. we have a current account balance. market was expecting a $13.5 billion deficit. it is pretty well on the second quarter improvement on the $15.5 billion deficit we saw there. hasn't changed at al

what benefit do you see from the shenzhen connect as well?henzhen connect growing number of mainland investors who can invest will be tremendous. it is a household name. everybody and china knows meitu. if you go on the streets, 90% of the ladies will raise their hands. rishaad: i've never heard of it. sophie: going back to what you said earlier, that you been helping meitu gain access to the u.s. do you seeactivities in that world? think china cap developers have become the best in the world. i think everything else being equal, the chinese app developer will be better than the average has aan because china large market, huge capitalization, the engineers are getting better, so not only alsoaces like meitu, but artificial intelligence, autonomous vehicles. i think china will be as serious power to be reckoned with on the global scene for technologies. rishaad: this is the biggest tech ipo that hong kong has seen since 2007 when alibaba listed. for so long, nearly a decade, the point is does this mean we will get more tech ipos? in the tech s

we have also seen shenzhen breaking through, copper breaking through the day moving average. .5%.oing terribly well in the session. some weakness coming through from jakarta, down by .8%. indian stocks are up by about .2%. also taking a look at the fx space, this is where we are going to see some movement. two days of dollar weakness is helping push up the strength when it comes to the japanese currency. you can see it playing out when it comes to equities. the aussie dollar has been stuck, 75 resistance level. we are hoping with that stronger-than-expected data, we could see it going towards 76, but the aussie dollar has been pretty much unmoved. what we are seeing is a little bit of a breather when it comes to the weakness, coming off these asian currencies. you will have to see how the dollar index goes from there, but certainly that weakness has been taking the pressure off a little bit. tracy: thanks so much. let's take a turn toward fixed with the head of asian fixed income match rotor investment management. i want to start with the sharp that i think sums up all we have bee

china will waive capital gains taxes for foreign investors when the hong kong-shenzhen stock exchangethe markets. juliette: an interesting comment from james woods saying this buying spree looks exhausted. we are seeing some weakness in asian markets today. tech stocks under pressure, similar to the u.s. the australian market giving up gains we saw yesterday, the asx 200 down .6%. down .7%, also under pressure, casino players being sold off again today. the yen continues to extend its rebound against the dollar.

so we had the shanghai, the hang seng and the shenzhen lower. taiwan also closed down. we had some headlines with the president-elect donald trump making some movement over there as well. japan's nikkei down 0.8%. >>> let's have a look at the broader markets. oil prices particularly strong last week. we already said energy was the best performing sector. oil gained some 12% for the week as a whole. so big mover there for oil prices following the opec decision. up again today, 52.26. so a lot of oil strength over the last week. we'll see if that will continue. we'll look at the ten-year treasury, we saw movement interweek, but we ended where we started below the 2.4% level, just below there today. a little more stability there, but yields have elevated since the election. gold prices this morning are trading a little low. we are down 1% at 1166. >>> and now to this morning's top global market story. italian prime minister matteo renzi announcing he will resign after voters rejected constitutional changes that he backed. julia chat lee is joining us live from rome this mo

shenzhen stocks fall most since september. historic agreement with independent producers. >> donald trump saying the one china policy should be tied to trade. >>

not a lot of fanfare, but the shenzhen's kind of like the nasdaq, some people say, of china, versus the which is like the nyse. we'll see if there are any developments on the trading front between the mainland and hong kong, guys, back to you. >> dom, see you in a bit. let's get to the bond pits as well. rick santelli at the cme in chicago. good morning, rick. >> good morning, carl. the referendum was predicted by all, but maybe the market response was a little bit more aggressive in a way unforeseen as we see most of the yields are up throughout europe especially italian 10s. they're up about 14 basis points around 2.04. but if you look at those they really haven't broken out of their more extreme range they've exhibited as some market prepared. we have jobs numbers. look at two-day charts of two-year, we're up, yes, but not as much as we were on the spike highs after the data. same could be said for tens. open to one week. you can clearly see we didn't quite reach up to the 2.49 level that we did friday, but rates are still higher. up five basis points on a 10, up three on a 2. so a l

scarlet: what will be the straw that breaks the camel's back in terms of breaking up shenzhen?isis. if you look at the euro, these getive pillars -- if you a government that is fundamentally opposed to these pillars, that could be the straw that breaks the camel's back. joe: fascinating study. frighteningly plausible. scarlet: up next, brothers release which earnings before the bell tomorrow. we will discuss if mortgage rates -- this is bloomberg. ♪ . . nina: i'm nina mullen does. let's get to bloomberg first world news. in charleston, south carolina, a whiteal in the case of a police officer charged in the shooting of a black motost. the jury was unable to unanimously agree on a verdict slater, charged with scottg 50-year-old walter a brokenpping him for tail light. president-elect donald trump met with former vice president al gore in what gore said was a lengthy and productive session. mr. gore: i found it an extremely interesting conversation and to be continued. i'm just going to leave it at that. thank you. gore sat down with a bronco trump, reportedly to discuss lima cha

maybe the shenzhen sees a little wobble?: when you look at housing in the context of the consumer in more general, we have had the best bits and the last six months or so since the brexit wrote, and that moment of the vote, i think people had -- there was a lot of fear of an immediate recession. we have had really fair. there.nomy -- relief people have drawn in their horns before. they were positioning probably for a yes vote rather than a no vote. when we got the no vote, let us get on with it. now, what is happening, is we have the significant depreciation of the currency. that is feeding through to inflation expectations and we know the cost of living is going to go up and are which is going to keep pace? pace?es going to keep it is on the agenda to get wages up. the private sector, there is quite a lot of caution. we are seeing investment productions actually diminish. people are often quite rationally. it is too uncertain. how can we commission significant investment will we don't know the scenario we are planning for?

. >> tuesday night at 8:00, president obama and shenzhen shinzo abe visit pearl harbor. abe is the first japanese leader to visit the site of the attack that launched u.s. involvement into world war ii. a review of house and senate hearings on topics including the flint, michigan, water crisis and the wells fargo scandal. >> you found out one of your divisions have created two million fake accounts, fired thousands of employees for improper behavior, and had cheated thousands of your own customers, and you did not even once consider firing her ahead of her retirement? eastern,ay at 8 p.m. we remember some of the political figures that passed away in 2016, including nancy reagan and antonin scalia. friday night at 8:00, hour in memoriam program continues with shimon peres, mohammed ali, john glenn. this week in prime time on c-span. join us on tuesday, january 3, for live coverage of the opening day of the new congress. watch the official swearing-in of the new and reelected members of the house and senate and the election of the speaker of the house. i were all they live

leading that listed developer has plunged after it has blamed shareholders to issue new shares in shenzhen group. a pointted to pay up to of billion dollars but major shareholders could not agree on the deal. it has promised not to plan any major asset moves over the next month. job cuts in the face of slowing growth after years of aggressive expansion. the abu dhabi-based company says it is undertaking "organizational reviews and structuring that will result in a measured reduction of headcounts." according to people familiar with the plan, the layoff started in the last few week and will offense 1000 and 3000 people in units such as i.t., human resources. that is your bloomberg business flash. anna: juliette, thank you very much. verdict in the decade-old old negligence case will be issued today. christine lagarde denies any wrongdoing in the affair that led the french state to pay to bernard. manus: she joins us from outside the building in paris. how likely is it that christine lagarde will be found guilty? impossible, but it does seem very a mike lee. last week, the french prosecutor

when you look at chinese markets, is the first trading day, the first day of the shenzhen hong kong,ot exactly a rush out of the gates. about 6%-15% depending on which way you look at it, not a lot of people are rushing in. have a look at the bond markets. long story short, yields trace ack a little bit, 2.34%, and quick look at the currency market. dollar-yen flat here, the euro, .06,session low in asia, 105 just barely above 105. the other currency we are watching closely was the key we jar. the prime minister saying he will be stepping down, not seeking reelection. that's the story across asia as we get started. manus: thank you very much, david ingles with the latest on the markets. italian prime minister matteo renzi says he would quit in the early hours of this morning after losing a referendum. he called to push for constitutional changes. >> [speaking italian] >> it is clear that my government ends here. i want to thank my ministers for the extraordinary venture, and i will offer my resignation to the president of the republic. manus: with the euro dropped to a 20 month low,

let's get to the start of the session of shanghai, shenzhen, and hong kong.e to out there. i will show you what the floors are saying. hong kong, shanghai, and philippines joining what is a fairly consistent move up across the asia-pacific, with the exception of taiwan. volume is not quite there as you approach the holidays. as you walk the street of hong kong, it is a bit quiet already. australia just topped its 17 month high. japan 6% up. 1%g kong, one third of yesterday. it almost entered into a technical correction. we are seeing a bounceback. some fairly critical levels this index is hitting. apart from this, everything has gone up. nikkei, australia, south korea, even new zealand. that said, that is a 10% drop. so-calledr a academic technical correction. have a look at this bloomberg chart. it shows much more than the index level. you have the 200 day moving average. it fell below that at the close yesterday. when it comes to momentum, the bottom of the chart, the lower handle shows a bounceback about 31. 694 that isat cnh, the year to date charge. 724

or did percent, shanghai, shenzhen. ,he first one, that is a baker makes cakes and that sort of thing wrap things up with a look at one of our big stories this morning that sophie was just talking about, toshiba. six-month chart, your drop, this is christmas. if you measure from here, a 33% wipeout in market cap, so where are we right now? if you fall again by limit, that takes the value to $8 billion or $9 billion. the 200 day moving average is at about 304. we have had at least five or six haveside analysts reinforced their call on the stock. buy, mostlya overweight. i was doing some simple math, the street estimate, a simple , so if you ¥433 think the bad news has been priced in, although we don't know how large the write-down will be, that is about a 40% return potential if you believe what the street says. rishaad: thank you very much indeed for that. right, let's focus on japan's ailing corporate giants, but smaller businesses have been on -- showing positive signs for the future. what is it about these deals that makes you feel that perhaps they are on the right track? there ha

composite 1.2 and shenzhen down three-quarters of a percent.all that in response to italian referendum overnight. >> i also wondered about the general view on china. >> phone call, too, i guess. >> done some things trying to drain liquidity out of the season. a lot of things going on there. president-elect donald trump taking a hard linebacker. his phone call with the president of taiwan pointed out in a tweet china did not ask for permission to devalue currency, tax products in china or build up military. ruffling feathers could increase risks. seema mody with us for who has the greatest exposure to china. >> tough talk has reached a new level, 35% tariff on goods made in china that seems to be the major concern for wall street. companies like walmart which had $50 billion over the last 12 months, added tariff will hurt walmart's bottom line and drive up u.s. prices of chinese made goods, even other companies like mcdonald's and apple. the sector with highest exposure is tech with half of u.s. imports from china being electronics will by value

. >> i would just like to jump in to add and say i was in china in shenzhen in august at a meeting where the governor of the province announced $500 million in robotics research at local universities for the province alone. >> wow. >> this is for the guangdong province. let's consider our investment, our national robotics initiative is amazing. it's wonderful. it's at $30 million a year for the whole community and our whole country. >> you know the amount the u.s. spends annually on ai research? funding basic a ireport? the president released a report, ai should be important. and the number was a billion dollars. it is nothing. we need at least 10 x. >> i agreement. and i think it probably should be some sort of a public/private partnership. we need government, families, all of the institutions. just coming back to you, daniel, regarding your home company slovenia and other places, i was just in slovenia alone. they have invested heavily in a lot of the artificial intelligence research and people. but it's not reaching the markets. how do we bring that talent that right now everybody is

. >> tuesday night at 8:00, president obama and shenzhen shinzo abe visit pearl harbor. is the first japanese leader to visit the site of the attack that launched u.s. involvement into world war ii. a review of house and senate hearings on topics including the flint, michigan, water crisis and the wells fargo scandal. >> you found out one of your divisions have created two million fake accounts, fired thousands of employees for improper behavior, and had cheated thousands of your own customers, and you did not even once consider firing

there are all sorts of rumors and is a shenzhen allegations out there. but are they receiving support from outside? scott: they have active fundraising. they have for years. in operation in the gulf, and in other parts of the world, presently in the gulf good i can't comment on the recipe of it, but there was a significant story in "the washington post" several days ago that a -- that individual saudis contribute financing. their financing comes from a commendation of collecting taxes , extortion, external criminal activity, smuggling, and of course the drug trade and all of that combines into a pretty sophisticated financial operation. are rumors that russia at least in the north are getting supplies and guidance. james: there is another recent article regarding that funding from individuals in the gulf that was drying up a little bit because the ambassador mentioned earlier that most ladies taliban are not killing foreign soldiers and more. they are killing other afghans. and that is becoming more distasteful. here.'s go right >> thank you. the afghan

. >> i would just like to jump in to add and say i was in china in shenzhen in august at a meeting where the governor of the province announced $500 million in robotics research at local universities for the province alone. >> wow. >> this is for the guangdong province. let's consider our investment, our national robotics initiative is amazing. it's wonderful. it's at $30 million a year for the whole community and our whole country. >> you know the amount the u.s. spends annually on ai research? funding basic a ireport? the president released a report, ai should be important. and the number was a billion dollars. it is nothing. we need at least 10 x. >> i agreement. and i think it probably should be some sort of a public/private partnership. we need government, families, all of the institutions. just coming back to you, daniel, regarding your home company slovenia and other places, i was just in slovenia alone. they have invested heavily in a lot of the artificial intelligence research and people. but it's not reaching the markets. how do we bring that talent that right now everybody is