not have happened in shenzhen alone.combination of hong kong and shenzhen that makes the miracle happened. stephen: so what is next for dji? what are you going to be looking at? we have seen innovation -- you are already a decade old, $1.5 billion revenue company. are you looking at augmented reality, artificial intelligence? what is the next step for you? ofof course for dji, the use ai and artificial intelligence to drive drones into the commercial application, so for dji itself, and also the robotics activities in the universities, and other efforts into many other things. stephen: of course, consumer grown -- consumer drones were your golden goose. that was a success story. tell me about otherwise you are excited for. you have a startup platform trying to get this innovation going. you have google technology -- sounds like google, but it's a different company, with motion controllers and the like. >> yes. it took a little bit longer to but after the manufacturing industry in china moved the industry from 3.0 to 4.0,

we reflected a lot of those to that shanghai and shenzhen exchanges.hey were positive about working with us in making this thing happened. particularly a very strong role and they the vice chair president of the shanghai exchange. they engaged directly with us to figure out a way this could happen. yvonne: stay with us, we will continue more after this short break. plenty more to come. another will discuss china's inclusion in that decision from time,t 9:10 hong kong 11:10 out of sydney. this is bloomberg. ♪ betty: we are counting down to asia's first major market open this morning. we are looking at japanese futures, down about 0.3%. watching as we count down to the hong kong in chinese markets. they are opening at 9:30 a.m. hong kong time. i am betty liu. yvonne: i am yvonne man. let's bring back msci chairman and ceo, henry fernandez in our new york studio. talking about this china inclusion, essentially some arguing this is a watered-down proposal from the msci. just north of 7.3%, higher than what the initial basel was. but still, i drop in the oc

they established what is known as stop connects one is connecting the shenzhen market, where i am nowo hong kong, which is a much more free wheeling market. and the shanghai market to the hong kong markets. that allows them to get more for foreign investors access into the mainland markets so the chinese are excited right now with what they're seeing even though there are a lot of restrictions still on this market they're seeing this as an important symbolic move. >> eunice, hong kong's stock index, much like london's, heavy international ownship. what is the percentage international ownership of the shanghai index people expect it to rise significantly now. >> it's 2% so, it's a really, really low percentage so for that reason there is a lot of potential for investors to get into the market like i said, one of the main problems is that the chinese authorities, despite the efforts, still have not really built a lot of confidence among global investors that they won't interfere in the markets so because of that there's still a lot of restrictions and people are worried about getting mo

shanghai flat, shenzhen up by .1%, hong kong firmly in the red.bc asian head of equities in 10 minutes and talk more about the implications of this msci inclusion, not just china, but other emerging markets here in asia. this is bloomberg. ♪ ♪ announcer: from our studios in new york city, this is "charlie rose." david: good evening. charlie is traveling. i'm david leonhardt. we begin this evening with a look at politics. controversy continues to grow surrounding president trump's alleged involvement with russian interference in the 2016 election. yesterday, jay sekulow, one of president trump's lawyers, said trump was not under investigation by the special counsel. his statements, however, contradict the president's own tweets, current confirming he was a target. last tuesday, jeff sessions testified before the senate intelligence committee.

across the board in shenzhen, they are doing that.n's gdp is a must the same as hong kong when it was just a fraction of that 20 years ago. how do you compete or integrate in such a high price environment mike hong kong -- like hong kong? amy: we have high-caliber people. we have some of the you disruptors around the world coming to hong kong for the form as well. i believe, at the end, it is how we work together to create a vibrant ecosystem here in hong kong. actually, the u.k.'s playing a role because technology and innovation have made is a priority for some time. we will announce the collaboration with hong kong x. we want to encourage more successful startups in hong kong. we need different parties working together, for example, the business, government, and also all the startups, and create a kind of networking engagement platform. thehen: ubs survey, 80% of most recent survey of hong kong millionaires say this is an era of uncertainty. what are the risks to the property market and the potential bubble and bursting of that? amy

on the access level, china withd up a second link shenzhen and hong kong.educe the list of stocks included in the end and relegated mostly big cap stops that they focused on. also addressing one big saying for international investors is the trading suspension issue which is quite prevalent here in china. they limited the ones they were including, the stocks that had not been suspended for more than 50 days to address that concern. lastly, the other issue was china's assistance, another issue to do with control. i've got to pre-approve investment products linked to its stock. some of that process has apparently been loosened and simplified to msci's liking. anna: so that some of the detail of what they changed. what it means for the main and market, the allocation within the msci emerging markets, some say is more symbolic than meaningful. what does it mean for chinese mainland stock? >> you are right, we're seeing that in the reaction today. it's not an open arms sort of rally here that we are seeing. the index is barely up in shanghai and shenzhen. ultimat

shenzhen is the silicon valley of china. yvonne: singapore, catching up? one big challenge is to remain our status -- retain our status as a big financial center. we have a lot of competitors. singapore is a competitor. shanghai is a competitor. even shanghai is trying to catch up. we have a lot of edges. we have our judicial system, the rule of law, the human capital. because the competitions are so strong, we cannot be complacent. yvonne: do you think this is an opportunity for beijing to win hong kong people over, to address these issues? do you see that kind of will coming from president xi? you know him quite well. he was here in 2004 and you met him. do you think he has an understanding of hong kong, 20 years later? fred: absolutely. yvonne: how so? fred: his father had a long relationship with dandong, and he was a relatively free solicitor to hong kong. in 2004, i was a secretary for financial services and the treasury. i had the honor of working with him. we took into the hong kong monetary authorities and talked about the economic growth of hong

favorable government policies helped shenzhen become one of the biggest manufacturing centers of theult, thousands of companies and millions of workers have moved to this city to be closer to the action. during peak iphone season foxconn hires almost a million , people, accounting its workforce to a few hundred thousand during low seasons. such a clustered effect means that most of the components need to make a phone, a laptop, or a drone are within a 50 mile radius. attempts to re-create this have so far failed. brazil is a perfect example. apple was facing high import tariffs in brazil and urged foxconn to make iphones there. foxconn built a factory, but very little changed. rather than doing lots of high-level manufacturing in brazil foxconn continued to do , most of the work in china, where the supply chain was nearby and parts could be preassembled. this meant most of the iphone was made in china and shipped to brazil for local workers to slop together, like legos. in the end the brazil project , failed on two levels. it hired a fraction of the workers the government expected an

in hong kong as we count you down to the start of the trading day in hong kong and of course in shenzheni. the fed reserve, the high coming through, the next wall of worry. what does the fed do with its balance sheet, lifting the cost of borrowing in the future? boe, rate decision there and light of what happened with the u.k. election. boj starting off its two-day meeting today. uncertainty, did donald trump obstructed justice? that is the question at the moment being faced. looking forward to data too. i am rishaad salamat from bloomberg's asia headquarters. politics playthat out when it came to the fx situation, the strength of the yen dampening the sentiment when it came to japanese equities. in australia, jobs numbers, and notoriously volatile data point. let's get over to paul allen. the unemployment rate has fallen significantly to five point 5% come up 2000 jobs created. australian dollar jumped impressively off the back of this. looking for 10,000. we got 42,000. another wild read. it never fails to disappoint, does it? this is where the picture does show a trend, full-time

but the creation of direct stock links between shanghai and hong kong and shenzhen and hong kong, the two big exchanges in mainland china, now make it far easier to get money into and out of the mainland stock market. all right. what does all this mean for investors? it means if you own international indexes through exchangex chan change-traded funds, for exampl the chances are you'll be owns much more china stocks if this goes through. it will take place over several years, by the way, indexers don't have to go out and buy hundreds of stocks immediately in the chinese mainland market. of course, there's es tfs for all this. the biggest of all shares, emerging, the similar of eems are out there, if you want more direct exposure to mainland china stocks, symbol kba is one example created specifically to attract the index msci is using. part of the decision may be strategic, by the way. vanguard already uses an index from a competitor, ftse, that does include mainland china stocks. the symbol is vwo. finally, this decision comes at 4:30 p.m. tomorrow. for "nightly business report," i'm

typhoon merbok has made landfall on the coast of shenzhen city in southern china's guangdong provincea speed of twenty kilometers per hour, waves up to six meters high were seen at a pier. the hong kong observatory raised its third—highest warning signal to eight — meaning that financial markets, schools and businesses are to remain closed. its wind doesn't count as a strong one week in their system. you can see in radar images, it is quite small and sent it at the eastern eye of the wind. if hong kong is impacted by the strong gale, it will have to be quite close to the estuary. also making news today. a 22—year—old woman in singapore has become the first female citizen in the country to be detained under the internal security act for radicalism. the ministry of home affairs who announced the news on their website — said the suspect was intending to make her way to syria, to join the so—called islamic state and to find a husband. the jury has begun its deliberations in the trial of the us entertainer bill cosby, on charges of sexual assault. his defence lawyers rested their case afte

shenzhen, those prices look like they fell -- shenzhen prices fell 0.6% month on month.ssessed 70 cities and prices rose in 56 cities month on month out of the 70 surveyed. that compares to a number of 58 in april, 62 in march, 56in february, 45 in january. the number for may is 56 cities across 70 that are monitored where you have seen price rises. that would seem to the roughly in line with where policymakers would like this to be. they've been putting these curbs in place, tightening the screws, whether it is down payments or sources of funding for developers, putting price caps in place in some cities as well. they want to cool the price rises in the top tier cities. has appeared to have fed through to these prices. the real estate sector crucially important for the chinese economy. feeding into the health of the chinese consumer as well. that is why we pay so much attention to these numbers and we talked to chinois earlier. he said that he expects possibly some of these curbs to be edged back. he doesn't see that they are the major sources of growth for the economy.

i is an issue, as is the need for authorization from both the shanghai and shenzhen stock exchanges when it comes to etf that includes these a-shares. that could be a sticking point. morgan stanley says if the decision does go through in less than 20 hours time, you could see a market uptick about half a percent to 1%. it will not be hugely significant at this stage because it would not be implemented until june 2018. if the decision goes against china, you could see a market follow of 1%. morgan stanley says initially, you might see passive inflows of $1 billion to $1.5 billion. this is the first step in a long process of including these into the msci, something bloomberg intelligence says would eventually or could eventually lead to about $400 billion worth of investment or foreign interests in china's a-shares. a move forcould be now in the short term. how does this all play into china's desire for a greater international role for the yen? into therly, it ties focus that they want on trying to liberalize their capital markets and internationalize the renminbi. they want this to happen

brad: tony ma is very reclusive, your typical shenzhen businessman, does not like to talk too much aboutompany. martin lau is the coo, the president of the company. he is considered the cheryl sandberg -- the sheryl sandberg of the business. when the company was negotiating last year, he flew 10 hours to helsinki, ill, had a fever, and played a game so frequently on the trip that he scored the 97th highest score in the world that week. he played supercell engineer and won. lots of different talents. he's one of the managers. emily: quite a skilled gamer, too. good to know. does tencent have a chance to expand wechat internationally? brad: the easy answer is no. it's an indigenous known -- indigenously chinese app. lots of stuff crammed into wechat. in the west, we tend to have one separate app for all that we do. martin lau admits this, that they have to take another path, and that path more recently has been investment and acquisition. emily: tencent attempted to buy whatsapp. what happened? brad: they saw the opportunity. martin was going to travel with tony, who had back surgery and c

increasingly, you find when you go to shenzhen, shanghai, beijing, you find the people you meet there practice their english than they are to suffer my bad mandarin. it is the international language. you see how many parents want to have their kids taught in english, and it lays down the benchmark. rishaad: right, what about the erosion of the basic law, for instance? you seen any changes with regard to the finance industry, which 20 years ago perhaps -- >> not so much the finance industry, but people are aware -- insidiousd u.s. change that is happening, and that is more from young people educated overseas, have seen real democracy at work, and wonder why they can't have it at home. rishaad: what about the political tensions and the societal tensions as well? how much is that being manifested in some sense wages falling? ex-pats don't get the same packages they used to, for instance. as a is no longer seen hardship market by any means, but we are seeing wages in the finance industry, the general to keep fixedeen costs low and payout discretionary bonuses. that got upset after they fi

we have the shanghai markets and shenzhen as well, hong kong coming online. stocks in shanghai falling for a second day along with hong kong equities falling around 8/10 of a percent. this morning we got the pboc said the daily you want to fix a 6.7934.hanged at industry and focus in chinese stocks is the auto space, given regulators on the mainland are looking to adjust the elected vehicle policy. let's pull it up on the board, one stock here. it has been trading in hong kong pending inside information announcement. around 3.6% at monday's closing. it focuses on selling mid and high end ranted cars -- branded cars. turninge in the region, to our attention in singapore. noble group is plunging to a 2000 low. shares falling for a six day in seven, retreating below 30 singapore cents. noble could face a harder time negotiating with creditors and made that concerns. now a check on what's going on in sydney. looking at all the lenders. inking stocks on the back foot -- banking stocks on the back foot. elliott told bloomberg times are getting tougher for bank earn

they have all the links between hong kong-shanghai, hong kong-shenzhen.s would be a move in the right direction. last year, the decision went against china, you saw the yuan selling off. a-shares are denominated in renminbi. it would be moved toward the greater international use our -- of chinese currency.in terms of what you hear from morgan stanley , they have said that reforms are going in the right direction and i think it is time this happens. of course, there are risks around corporate governance, and somewhat argue if you get more foreign government involved, that would be improved. stake forte a bit at beijing's assets. thank you. still ahead, more on the implications of the msci decision on asia. also, is it the game changer it is thought to be? rishaad: u.k. government turning soft on brexit? we break down day one of the negotiations next, was global chief economist -- with a global chief economist. this is bloomberg. ♪ rishaad: a quick check of the latest business flash headlines. australia's competition tribunal half cleared a bid for a rival

shenzhen climbing in hong kong. pair-based warehouse operator said to be in talks to join -- it has been growing warehouse property in hopes to boost its logistics business. ♪ emily: this is "bloomberg technology," i am emily chang. facebook ceo mark zuckerberg has written a new mission statement to give people the power to build community and bring the world closer together. at an event in chicago, he rolled out new tools for group services in order to further engage its users. >> we have to build a world where every single person has a sense of purpose and community. that is how we are going to bring the world closer together. we need to build a world where we care just as much about anyone -- a person in india, china, mexico, nigeria, as much as a person here in chicago. emily: we're joined by david kirkpatrick, from techonomy. what is your reaction to this change in mission statement? david: there has been a lot happening at facebook recently in talking about themselves differently. i think they are unbelievably

they can and cannot stop trading for her they are allowing investors to get into the shanghai and shenzhen. they say that gives better access to markets. there is concern if you can get your money in and out of when you want to. they say that will address that. the third reason they are moving towards this is that others are already including them. the london stock exchange has a sub index were emerging markets tracks chinese a shares. the vanguard uses for its epf's. if msci waits too long, they might lose out. they are suddenly included in my portfolio of emerging markets, my bond manager now has to buy some, what reason would there be for me to buy this basket of stocks when i can participate in china in a different way? some stocks have been highflyers in the past. over the past year to date, we are seeing the shanghai and .henzhen composite down 4% it hasn't performed as well as shares listed offshore like tencent and alibaba, which are included in the emerging market index. you get the high fliers now. if you are forrester rebalance -- against a portfolio, would you buy any of these

rolled out in the last few years, connecting hong kong with mainland stock exchanges in shanghai and shenzhen, which allowed foreign investors to invest into china through hong kong and chinese investors to invest into hong kong through the mainland domestic stock markets. a lot of these concerns, yep, msci did work with authorities to resolve them. critics are saying issues still at hand here, one for instance is stocks are still suspended on the chinese markets. no idea when they'll start trading again. not enough information to figure out what next for them with the stocks that have been suspended. let's bring in kevin leyong for more >> they still have to clean up their act. there's a lot of things to deal with suspensions are still there. pre-approval restrictions are still there. so it's a first step they're giving, a first clearance they're giving, but then more to be done for bigger inclusion right now you can see the inclusion is a partial inclusion. i would not call that a full inclusion yet. >> the other issue at hand is whether foreign investors want more exposure to china the dom

this will just have 0.5% weighting to the index two, the recently launched stock connect between shenzhen and hong kong could be helpful observers point out the lack of adjustments on repatriation rules for foreign investorsand daily quota for stock connects among many others as potential stumbling blocks they add it may not mean much about chinese equity markets openness even if the country gets the nod back to you. >> that's enormous i will direct you to bob p pisani's piece on cnbc.com about this the kind of money we're talking about. msci more than $10 trillion of active and passive assets benchmarked against it emerging markets alone, 2 trillion u.s. dollars. a great piece by bob pisani. >>> sterling, a look at cable. 1.2682 a bit of rebound off the lows. but it's been steady around the 1.27 mark. we're just below the mean of that i think 1.28 is the mean there a longer term level on sterling, five-year high was 2014 where it hit 171. then, of course, before brexit vote, the brexit vote it was trading around 146, 145. but 127. very split opinions. everyone was bearish on sterling and

china had a tough day down about a third of a percent the shin zen com shenzhen comp .uropean trade is soft across the board today. oil prices falling yesterday down about 0.6% for france and the uk germany outperforming. only down 0.3% >> the broader market picture. treasuries this morning. mentioned lower yields 2.14 on the ten-year yield buying of treasuries the bond market is not buying the inflation story the fed is trying to tell it's oil and commodities across the board. kit juckes of socgen pointing out cocoa futures are at a low as well. there's the ten we're yield ever lower. as for the u.s. dollar, the dollar/yen reversed after this time this morning. it was higher yesterday. that fueled better tone. it's weaker against the japanese yen. dollar is weaker against the euro as well the pound is weaker against the dollar at 1.26.66. >> having gotten an interesting intersb int intraday bounce yesterday. >> gold prices quickly, let's show you what's happening there. usually in the reverse of the dollar higher this morning by about whatever percent >>> shares of sta

one-size-fits-all because another challenge for them has been not just easing the prices in cities like shenzhenbeijing, but .hifting some of the excess we have a chart that shows something of a case study, g #btv 170. it shows what has been happening. beijing, vis-a-vis the city 3 hours drive east of the capital. prices in beijing have edged down or remained relatively flat. the other city, they have picked up quite significantly, particularly in the month of april, and that has helped to draw down the inventories, down 16%. the pboc has been leaning on lenders to ensure they are very vigilant when it comes to mortgage lending, so all signs are that these curves are going to remain in place. it would depend on sharp shocks. linked into everything from cement prices to white goods and impacting the retail spending power of chinese consumers. it is something very closely watched. we will get the made it out around 9:30 hong kong time. anchor: we will be watching for those. thank you so much, tom mackenzie, on the chinese property market. we are staying on this subject because the top property bub

there's nothing confusion about shenzhen, there's something democratic about taiwan. i always that you it was a crazy argument i think people are the same the world over >> lord pa ashgapatte, let's che gears for a moment and talk about the newly formed alliance between the dpshup and the conservative party a lot of people call it a fiasco in your own words, what would you call it? >> i think it's mistaken for three reasons. first of all, actions have consequences you give people a bong in order to support you, sooner or later they come back for more. >> you say it will cost the uk dearly and the conservative party. >> to think this is the last time the dup will ask for loot is crazy of course they want more spending, but so does scotland, wales, parts of london it doesn't do much to help the conservative party thirdly, i think in the future it will endanger the cross-party talks. >> how long will the prime minister last in her current position >> i think she'll last as long as her colleagues think it would be dangerous for her not to last i think she's on borrowed ti

evergrande falling after it agreed to sell a 14% stake in vanke to shenzhen metro, earning evergrandeglencore moves to top the bid for coal assets. it says it has the right to match or beat glencore's offer. short seller targets in hong , a share buyback at aac tech dropping after a three day rise. valuations on the msci china index have been pushed average higher. -- pushed ever higher. h-share index has widened. it is primarily weighted towards , without a single text stock, but that could be up for a revamp. thank you so much for that. sophie kamaruddin there. let's get first word news headlines with steve engle's. >> the latest readings of japan is disappointing, core machine orders fell 3.1%. economists had expected .5 percent gain, orders were up 2.7%, short of expectations of at 7.3% rise. producer prices were unchanged. corrode it is seen as increasingly likely to win a second term ahead of a policy meeting this week. of a,ey finds a third saying he is the only possible contender after his term runs out in april. expectt majority don't any change in policy and tell after gover

very dependent on the technological strength of taiwan industry.t i think, one should think more shenzhen andand the concept used in the past to extend one nation -- one country, two systems toward taiwan. get perhaps trying to representation in the mainland on to taiwan as happened under the kmt. a co-op strategy rather than a military strategy. i think that is where we should be focused. >> another example of war without bullets in that context. if i can, graham, i expect you want to respond to some of these things. i wonder if you would take us to the next question as well, what do we do about it? what are the policy implications? you have staked out, effectively, the stakes. you showed us what the risks of then, theggests, but hard question is what do we do? how much should it accommodate is its rise and how much a check against eventual war, or does it hasten war? graham: let me make three points. i think the difference among us, clarifying and going to the point, that's let me start with a point and i will come back to in the conclusion of the book, i say this book will be very unsa

caller: i think sessions shenzhen's -- should be brought forward, and i know he is afraid, because ifou have to deal with mr. rochester, he would know that [indiscernible] this messy got himself into. the russian situation is a situation. can you tell me why that -- this is a separate issue -- why is it people whothat disenfranchised people from voting come from the republican side? the crosschecking, i know the is more of ag thing were democrats and a are involved, but the crosschecking is more of a republican thing, and it has been very successful in taking people off the voter roll. host: i think you answered your own question. caller: but why is it coming more from the republican side? host: our independent line, from new york city. good morning. caller: i do not things to sessions has anything to hide. he is not afraid to come forward . i said i will step aside, you find what you will find. and it is the same democrat hypocrites -- if hillary, god god forbid, would have won, they would have been saying the same thing. where are the back talent -- intochannels in collusion that? t

it is on the financial industries in hong kong so i think, one should think more about shaman and shenzhen and the concept used in the past to extend one nation -- one country, two systems toward taiwan. perhaps trying to get provincial representation in the mainland on to taiwan as happened under the kmt. something along those lines, a co-op strategy rather than a military strategy. i think that is where we should be focused. more to say but i won't say it now. >> another example of war without bullets in that context. if i can, graham, i expect you want to respond to some of these things. i wonder if you would take us to this next question which is, what do we do about it? what are the policy implications? you have staked out, effectively, the stakes. you have given us a sense of what the risks are, of what history suggests, but then, the hard question is what do we do? how much should the united states accommodate china's rise and how much is it a check against eventual war, or does it hasten war? graham: let me make three points. partly responding, because i think the differences among

if you look at chinese stocks, you see a little bit of a mixed trade. ,he shanghai and the shenzhen trading down. stocks which will be included, we saw that announcement overnight yesterday. those have extended gains. traded in cap stocks the index, understandably, continue to gain as the smaller cap stocks fall. like london is going to slightly outperform but not by much. downtse is going to open 0.2%. forwill see a sideways open european equities. nevertheless, we can monitor what is happening with the macro. coming up, the market open. this is bloomberg. ♪ guy: welcome back. one minute to go until cash opens in europe to read we will market a clear sense of direction from equities today. here is the fair value on your bloomberg. you get the fair value line. helpoks like london will form slightly. a few ex-dividend in the london to the attention to. united utilities is one of those names, but a few others as well. i think the fx story remains interesting and particularly the pound, in my mind. matt: absolutely. yesterday, we hit a 125 and on the pound, so we have seen real gains since the

all of that, then you look at what could investors put into the market through the shanghai and shenzhengram with hong kong, the ceiling was restrictive, so therefore, what we are able to do is spend time with the regulators as well, and they will work with us to see if we can get it done in one step. our announcement is on to steps to make sure we -- on two steps to make sure we have enough for stability. now, simonng us quijano-evans. how does this change how investors can take offers? simon: it is important from a political point of view, from an inclusion point of view, including china and the global economy. you saw them joining the fdr for the cny. they will have a stepwise approach. which is very small considering that is a $7 trillion market. simon: it is a very small thing. i think msci does not want to shop the global markets either. if you want to invest in chinese stocks, you can do so offshore anyway in hong kong and other areas to a certain extent. it is a significant political move and it is part of this whole move as we move into including china. we are talking maybe abou

grande down, selling a 14% stake to shenzhen metro. and samsung, have a look at this chart.t's quite interesting because we have these stocks in facebook, amazon, netflix, google, but you have these other tech stocks in japan, the so-called sunrise have been doing very well, up 65% compared to a 19% rise in the topix index, certainly outperforming those stocks that had the drop. anna: juliette, thank you. let's get back to the u.k. political story. theresa may will face angry lawmakers today in a showdown that could signal the end of her premiership. how close to the end are we? it comes the day after she reshuffled her cabinet, which took place in an ongoing situation over the weekend. er rival unsuccessfully stood against the prime minister in last year's conservative leadership race. another nemesis, george osborne, told the bbc that may's days are numbered. >> theresa may is a dead woman walking. it's just how long she will remain on deaths right. i think we will know very shortly. in other words, we could get someone next week or next month. anna: let's talk about the u

the other hand, the housing market, if you want to see house prices to incomes at 30 times, go to shenzhenther cities. when they need to boost growth, they will have to find a way to do it other than cutting interest rates. they are also struggling to limit the currencies, so the reserve numbers today are round 3 trillion. it suggest they are trying hard to maintain those reserves. the commonest party congress approaches. it's coming up later on this year. some suggest that ahead of that, there's a dilemma about whether the chinese economy keeps doing as it is doing, but they will do they can torything stop it below the 6.5% target. not for thet reserve level and the fact that this you're china, politically it is huge. politics is pretty much everywhere around there right now. the people's bank no doubt or try to limit any downside this year. it flies in the face of accusations especially from the u.s. that there are downsized currency manipulators. , going back to the protection thing, is that the only way they will have less to retaliate if we do get something from the states is to then

metroves after shenzhen emerged as a white knight last year and has now become the top shareholder. remained static since it face the hostile takeover in december 2015. that compares with enormous gains for rivals china ever grand and country garden. amazon is said to be ready to sell nike shoes directly through our brand registry program to keep fake goods off the site. sources tell us that will let nike have greater control over how its products are sold, making sure counterfeit goods are not offered by third parties. shoe retailers tumbling, foot locker, dick's sporting goods, and the u.k. sports direct and jd sports all slumped. president trump is sliding down the bloomberg billionaires latter as his office properties bring in less cash than his creditors were expecting. his net worth is now put at $2.9 billion down from $3 billion a year ago. the calculation relies on data compiled from lenders, mortgage documents, annual reports, market data, and a new financial disclosure released last week. global news 24 hours a day, powered by more than 2600 journalists and analysts in mor

all week we've been talking about it even with oil up, we have new lows today just show you the shenzhenhere's two sessions, and it kind of drooped later in the afternoon in the prior session, and this is where a lot of the tech-heavy names, sort of like the nasdaq, two issues are going on number one, there's some discussions, rumors out there of some the bank regulators, this is h & a wanda being scrutinized for their m & a activity there a second issue is regulators have reportedly shut down the video services for not having proper licenses, but look at some of these video service stocks weibo is trading down yy also has, and momo, the speculation is these are all live video piece that is go out that users can post, an the regulators can't figure out how to regulate it, because it just goes out that is the speculation going on among china internet watchers. we'll keep an eye on that and let you know what else is going on the important thing china is moving all week right now i'm still waiting for altice to open and of course david will be talking to the ceo verse soon, of course, along

we are across the street from shenzhen.out tencent, and amazing things happening on wechat. betty: are you on wechat? geoffrey: of course. someone was giving me a red envelope the other day, a very chinese gift. the third thing is, the asia-pacific, what is the balance? the success of hong kong, the future dynamism of the innovation economy, and u.s. and china in this century. betty: you know the region well. when you look at hong kong in the next 20 years, what do you see? geoffrey: we see a lot of stuff in the media about housing affordability and other issues. obviously, there is the status of the relationship with beijing. it seems to me that having a financial rule of law center is so advantageous to china as a country that i would actually expect some kind of navigation through the smaller political province. long-term strategic, the way hong kong's position today, works in the global economy. look at the relations we have seen between the u.s. and china, asia and the u.s.. let's take u.s.-china first. this has really

dow up 55 been good morning bob pisani >> happy tuesday everybody good day in europe and in china shenzhenthe fed meeting we get the fed drift, the pendcy of the markets to move up in the day, day and a half before the fed meeting and yesterday around 3:30 we sort of moved up no real news up there, move up about four points overall, moving up again today and this say well studied phenomena, the tendency of the markets to rise before the fed meetings the market moves up nine, ten points since the close on yesterday here sector check here, you can see the first one there, that's the semiconductor etf and the banks up, consumer discretionary and consumer staples to the downside couple developments last might, a report from the treasury on easing dodd-frank regulations helping some of the regional banks. you see some of the regionals, regions, key korpds, huntington up citygroup a new high also up today. oil is flat, disappointing to those hopeful oil can get toward $50. saudi arabia are continuing to try to cut production, cutting exposure to the u.s. but not having a big move on oil here. fr

the most important one is that the stock connect program linking the home market with shanghai and shenzhenyou know, consult with our clients and the clients thought that that was a good access into the market that is better than the two other accesses which is the qualifying for institutional investor and the r & b qualifying for institutional investors. that one one thing the second thing is the reduction on the number of suspended stocks since the decline in the control. >> less control. >> a little bit of less control and more of an ability of shares and, three, the loosening. restrictions on the data in order to create index link in investment vehicles, so those were three things we focused on and our clients focused on to be able to get to this point. >> sebastian, how many stocks are we talking about, and what's the time frame i mean, when does the new version of the index start to trade? >> so, we are talking about 20022 stocks, large-cap stocks which will be added to the emerging market index starting in june of 2018 in two steps first step as of the beginning of june 2018 and the

point 1% after rising .1% on friday, but we do have the shenzhen rising .2 5%, and h-shares on the upng that gain on the hang seng, rising for a third straight day. the surge we have seen in the yuan is a positive for chinese stocks in hong kong. the pboc set the daily fix at 6.7 935, stronger than friday. taking a look elsewhere in the region come the nikkei 225 swinging into the green ever so slight the. i want to point out what is going on with the taiex in taipei, up .3%, one of the biggest gainers in the region, tech heavy gainer of 3% this year, and taiwan saying production of semiconductor equipment will top $1.3 billion. you guys were talking about those coal players in china given reported talks of a potential merger. take a look at the shares listed in hong kong. up over 17% at the open, 2.6%, also on the rise here 4.27% as companies are said to be in merger talks. the shanghai listed shares are suspended from trading. elsewhere in the region, seoul, korea, the share price swinging on its first day of trade following a restructuring. surging after a jump in same-store sales.

not all internet -- marisa: one of the things i'm seeing is huge innovation coming out of china, shenzhenthe chinese government is doing something which i think is very interesting. previously all this used to be state-owned enterprises. china is fostering them. they might be giving them real estate, other support, but they are letting the entrepreneurs own their businesses in many respects. that has created sort of an ecosystem similar to silicon valley that has fueled really interesting innovation that i think is going to be disruptive almost more so than silicon valley. you see companies getting created that are going to probably leapfrog the technologies that have been developed on the west coast. francine: do you still have doubts -- they still have the reserves, aty of currency that is being propped up, and outflows being curbed. are you concerned that they do something wrong and we have a unstablization of china? mark: there's some escaping money, but a lot of it has been investment going into plants and infrastructure for a long-term return. like the u.s., all this money going out

theshanghai composite on back foot marginally, but the shenzhen is up .1%.n saying -- hang swinging between gains and losses. it closed up for the first time in two years on thursday. the yuan daily fix weaker for a second day. now to pull up the board and show what we have when it comes to movers in hong kong. man wah, questioning if it is really more than apple. dali foods was also upgraded to outperform. the share price adding nearly 4% on thursday. aac tech also with gains. that is a reaction to some short seller activity in hong kong. coming: some lines through. let's get some other developments out there. labour has made gains, including taking the welsh seat from the conservatives. polls are saying theresa may's party will lose its majorities. jeremy corbyn says labor has changed the face of british politics. sessiond touch new lows, weakening below 1.27 against the dollar as the tories trail to win some seeds from labor. also stronger against the sterling. the ftse 100 futures down. the u.k. could be without a fully functioning government days before

turned down three times previously, they had to open up the shanghai and hong kong connections, the shenzheninvestors could get money in and out. they had put restrictions on a number of day stocks -- days stocks could be suspended from trading, so this could lead to more international governance that over the long run, this will make the chinese market more accessible. david: he is a reform candidate, as it were. does this give him more clout within china to say see, we need to keep reform and movement going to get this agenda accomplished? >> well though, in the sense that people can say was it worth it? do we get that much out of it and do we want to open up what will matter? but it is his people in place, and he will continue these reforms. when msci turned them down, they did act because they do seem, regime, to forward your, and that i have done it with stocks. david: joining us now is jeff dennis from boston, and still ko is david co. stock -- stok. think this is tremendously important in the short-term, what it is important in the long term because it is basically saying in terms of