has reiterated its claim to most of south china sea. g of defense chiefs and singapore, the chinese struck a more conciliatory term. he said that china would ignore an upcoming arbitration ruling sought by the philippines and hinted the united states should keep out of the area. the philippines finance secretary says the new president will build on recent economic gains. froms made headlines strong language and anti-crime rhetoric. he said he is developing tax reforms that will create a more equitable system. these brackets that have been developed were developed him was guess throughnd i the years because of inflation that it has become rather in -equitable and we want to make the tax system more equitable. example,rackets, for probably they will be much higher than the 500,000 peso cap they have now. that will also be a reduction in revenue. rishaad: stormy weather ahead for the markets. we discussed why we should be prepared for some turbulence. this is "trending business". ♪ 445 p.m. in baghdad in iraq. the iraq he army securing the

china is doing it in the south china sea and will do it in the east china sea, soon. these interests are directly and adversely effected here. >> yesterday was the anniversary of the tienamin square. do you believe that china has changed since that day? >> we heard about it for about 30 years from now preponderate dominant political force nap is who we're dealing with, and we're dealing with it through a barack obama, john kerry, hillary clinton style diplomacy. we're losing the momentum is against us in the south china sea, and i'm very afraid the new president in jan may have a bigger deal. >> how would you change it? >> i think you have to do several things, politically demonstrate that we will not tolerate this. number two, step up military operations in the south china sea. longer term, rebuild the american navy. so we have a stronger capability. we're not looking for hostilities here. the sign of american weakness is the kind of weakness that invites provocative action and risks the kind of confrontation that we want to avoid. >> it is a challenge we embrace. th

in the south china sea are in no way wrong. rather, they are essential in maintaining order in the region. so japapan fully supports them. >>> the u.s. is calling for the ruling to be respected by china said a unilateral petition builds against international law and says it will not accept the outcome. >>> a leader of pro democracy protests in beijing's tiananmen square calls f for support in tokyo. wang dan delivered a speech in tokyo to mark the 27th anniversary of the violent crackdown. wang spoke to a crowd of more thanan 300 peoeople. the e former student leader spe six years in prison following the crackdown. he now teaches in taiwan. wang said tiananmen was a turning point in china. he saiaid after the incident, young people that were passionate about politics gave up hope. hehe said they've since been simply going after economic interests. wang also criticized the current chinese administration. he saiaid president xi jinping' vision to create a strong country is only for state power. he said the country is moving furthe

sides remain apart on the most contentious issue -- china's increasing maritime activity in the south china sea. china claims almost the entire south china sea as its own. it's building manmade islands there and has deployed radar and other equipment. vietnam, the philippines and other southeast asian countries claim parts of the sea. >> i reiterated america's fundamental support for negotiations. and a peaceful resolution. based on the rule of law. as well as obviously our concern about any unilateral steps by any party, whichever claim it, to alter the status quo. >> translator: china has a right to defend its territorial sovereignty and legitimate maritime interests. we won't accept any ruling by the international tribunal of arbitration requested by the philippines, regarding the south china sea. and our position will not change. >> an international court is expected to rule on the validity of manila's claim soon. >>> turkish media are reporting that four suspects have been related to tuesday's car bombing. the blast in istanbul killed 11 people, including seven police officers, and wounded

nhk world, beijing. >>> china has territorial disputes with several parties in the south china sea. etnam state-run media criticized what it claimims is china's militarization of an artificial island in the area. the newspaper posted photos on its website of what it claims are chinese facilities on the johnson south reef of the spratly islands. the photos weree reportedly taking between late may and early june showiwing a seven-sty building, a light house, a spherical structure that appeared to be radar facilities. thee building is toppeped by wh looks like anti-aircraft artillery. there is large chinese military vessel in nearby waters. the article says china forcibly took the reef from vietnam in 1988. >>> leaders in the philippines are upset with china over a separate dispute. they've gone to an international arbitration court seeking a ruling that china's claims over most of the south china sea are invalid. but officials in beijing are urging them to negotiate instead. the chinese foreign ministry says that on multiple occasions it has proposed a regular consultation mechanism fo

that is what they are doing on the soft tennessee. -- south china sea. s before the makes a ruling on the conduct of china. the chinese government has been building artificial islands and many parts of the south tennessee. this part, that is the heart of the issue. it is more than likely they will rule in favor of the philippines and it is not clear than what the obama administration will do. there is a lot of pressure to increase freedom of navigation operations through that milestone of china's artificial islands. the americans are being who ised by vietnam clamoring to u.s. security guarantees. out 25lippines kicked it years ago. taiwan and malaysia have competing territorial disputes with the chinese. angie: do you think that the chinese will take advantage of this small before the november election? bear in mind since october of last year, the united states has had several operations. chinese know that will condemn the american intervention. that is the issue. forceinese have not used to deter the americans. i have had a few skirmishes just month whe

>>> in singapore, asia's biggest security summit kicked off on friday, rising tensions in the south china sea are set to dominate the three-day dialogue. aiko doden has this report. >> reporter: the meeting is attracting more attention than in usual years as the situation in the south china sea is evolving. the annual dialogue offers a rare opportunity for defense ministers and military chiefs from the asia-pacific region to talk about security. more than 560 attendees will gather at the meeting. u.s. defense secretary ash carter, the deputy chief of the joint staff department of china's central military commission admiral su and japanese defense minister gen nakatani are among them. the level of high attention reflects the shared understanding that security in the asia-pacific region matters to global security. china claims almost the entire maritime area as its own, while the philippines, vietnam and other southeast asian countries claim parts of it. beijing has built manmade islands and deployed advanced radar facilities and missile batteries in the disputed region. in may, a u.s. warship

particularly in the face of iran or china. >> all the lead rers talking about security in the south china seand china has been very vocal in it's response saying this should not be under discussions. so what are the tensions right now? >> you have totally dual narrative it's from beijing about what's going on there and from washington. to middle tar ties islands in the south china sea and in particular, in the meantime, they are absolutely doing that according to the intel reports and how washington is responding. what i was trying to get to with the question earlier is the u.s. is really trying to send this signal, but it comes up even with this thing we were talking about, the risk of provocation. is it a real one? because you don't want to get -- somebody said in the pentagon a few weeks ago does u.s. want to go to war over these rocks over the rocks in the south china sea? no. but if you're the u.s., do you want to let china essentially take over this region and then wake up one day and say oh, this is now -- i mean it's a game of risk. so it's really interesting how this will play out. >

increased tensions in the nearby south china sea are part of the reason. but more close to home, china has been getting a little too close for comfort. chinese naval vessels have recently sailed in japan's territorial waters. the reason for this? the u.s. vessels are the highlight of the exercise. they can move through shallow water. the ground self-defense force is bringing in 52 of them, according to a u.s. marine corps colonel stationed in okinawa. the reasons of the training will depend on what japan wants. >> they gain the seat of knowledge, working and training with the u.s. marines. and then they're going back to their battalions and reg i ments and are training so japan develops its own amphibious capability. whether it looks like the u.s. marine corps is yet to be determined. >> reporter: you can see taiwan over there. the japanese government has been building up defenses in this area. ♪ >> reporter: a ceremony for the deployment of the ground self-defense force unit. it's the unit's first deployment to the small island. >> establishing a stable de

aircraft carriers performed defense drills in the south china sea. the u.s. navy says that as a civic leader the country has an interest in maintaining security and prosperity and freedom of navigation and overflight. to make that point, it has been sending ships and planes through the disputed south china sea. beijing claims almost all of it as its own. the "new york times" quotes an american official familiar with the planning of the current operation that the message of the exercise is unmistakable and the timing deliberate. the philippines is awaiting a ruling in a case it filed against china's claims in the south china sea. the u.s. navy chief says the deployment was intended to demonstrate america's commitment to the region. >> we'll be there for our allies to reassure them and for everybody who wants to destabilize the region we hope there is a deterrent message as well. >> he said the u.s. navy seldom has two carrier strike groups in the same waters. he called it a great opportunity to practice war-fighting techniques and expressed concerns about chin

we support the millions in the south china sea. we expressed concern over the .ecent developments in the area all countries must abide by international law especially the united nations in the law of the sea. we will refrain from actions and implement fully the declaration of parties in the south china sea. in conclusion i think of vietnam on the u.s. that they are important. met andcountries have created a astounding progress in their relationships. i believe that the two countries .ave solid foundations i am honored to be here and thank you very much. [applause] >> american history tv. >> more than 10,000 flee cuba. florida ino key west nearly 2000 votes. why do they come? why are they so many? approximately 100,000 cuban refugees arrived in florida from the port of mariel, cuba. hear from these new arrivals and find out why they left. bill clinton accepts his party's presidential nomination in new york city. >> i proudly accept your nomination for president of the united states. incumbent president george h.w. bush excepts his p

angie: what about reducing its presence on the -- in the south china sea. -- there are very stark differencesween the two. so many other nations claiming parts of it. china has long said their claims are indisputable. they did not include a single word about the south china sea in the 32-page final outcome document. but that says a lot, that they have a long way to go before -- to go to reach any kind of agreement. this is what secretary kerry had the same. i think it isy: important, and we have said this many times, that no claimant, none, not any country in gauge in unilateral actions that could be deemed by some of the else to be provocative and therefore problematic. stephen: by not mentioning it, i think we need to say watch this space. it will be a hot one. the yuan is back in the spotlight after talks in beijing. it also just posted its biggest two-day decline since february. does this mean that the pboc is guiding the currency to the downside again? heidi: that is a concern of some market participants. this is where we are at. has fallen 0.8% against this basket of currencies, the low

already, these a bit overshadowed by growing concessions with china's claims to the south tennessee. -- china seareporter: these talks are meant to bring the two sides closer together. it is hard to see how they can beijing's disk you did claim to the south china sea driving waves during the two. manual talks between the biggest economic powerhouses, china called for more trust. >> the pacific should not be a stage for competition. become an interest between china and the u.s. and the asia-pacific region, make it possible for both countries to keep up communication. cooperate more and relate to challenges. dispute: the maritime has pushed relations between china and its neighbors to breaking point. speaking alongside the chinese president, the u.s. secretary of state john kerry called for a diplomatic solution to the crisis. john kerry: really position we have taken is, let's not resolve this by unilateral action. let's resolve this through rule of law, through diplomacy, through negotiation. reporter: the strategic and economic dialogue is one of the most important meetings between the two count

international court will soon rule on a case filed by the philippines disputing china's claims to the south china sea. the permanent court of arbitration said the ruling will come on july 12th. the philippines maintains that china's claims to the sea as its historic right are groundless under international law. the country also believes artificial islands built by china cannot grant the country maritime rights, including an exclusive economic zpoone. chinese officials repeatedly stated that the country will not accept any decision by the court. china says the dispute should be resolved through dialogue between the concerned parties. meanwhile, the philippines is inaugurating new president rodrigo duterte on thursday. duterte said he may shelf the dispute with china if beijing offers financial aid for infrastructure development. >>> indonesia's president and his cabinets have discussed a strategic plan to develop islands in the disputed south china sea. joko widodo is standing firm and asserting his country's sovereignty. joko ordered an expansion of offshore oil exploitation and commercial fishing in

also we have moisture pouring in from the south china sea. monsoonal low. hong kong we have thunderstorm advisories and warnings in effect there on your tuesday morning. winds could get up as high as 70 kilometers per hour. talking about the monsoon, looking at heavy showers across parts of india. even stretching here back to the northeast. i actually want to show you video coming out of west bengal with the flooding we've seen here. this past weekend, in fact, up to 280 millimeters was reported at one location where the flooding was taken place in about a 24-hour span. that's causing traffic to be at a standstill. you can just see people's housing getting flooded there. farmers are fairly happy about this. we're looking at a drought since last year, but too much rain definitely causing some issues. and more precipitation is in the forecast, not only for eastern india, but even stretching back here towards the west, the monsoon gradually working its way over there towards the new delhi area. you're not officially in it just yet. temperatures still staying o

where have they been aggressive, in addition to the south china sea, that causes us concern? ja: i am glad you asked that question, because it goes well beyond the south china sea. one important example is the high himalayas. there is a long border between china and india that is not very well defined, and in the last few years the chinese have made repeated incursions over that porter. t-- border. there are actually really interesting youtube videos, because everything these days is on youtube, of chinese and indian soldiers throwing punches at each other. they are not allowed to shoot, but they are punching and recording it for everyone to see. the indians are also worried about chinese submarines increasingly active in the as one indian admiral put it, sneaking by the indian coast. the southeast asian states are worried. the indians are worried. to some extent, all of the flood of chinese investment into africa and latin america has all those countries worried as well. charlie: what is your assessment of she jinping? anja: he is a very strong leader. he is thoughtful and sm

for example, the tensions in the south china sea. mplications -- here is deputy head of asia for research. thank you for joining us. the south china sea is a powder keg potentially. the thing is how where he should we be -- wary should we be? >> we don't think a major conflict is likely anytime soon. we think that is a remote possibility. however, the biggest risk for countries and companies that have assets going through the south china sea would be unintended escalation as a result of conflicting claims by different countries such as china, vietnam, the philippines, malaysia and so on. rishaad: that is just it. could we get to weigh position where the sides become so polarized that doing business in one jurisdiction may mean that you cannot do business in another? anton: that has certainly been the case in the past whereby companies that have operations in china, but have displeased the chinese government have been threatened to have their access to the chinese market cut off. there is a possibility of that. there is also the other

tom: i would like to follow up on the south china sea. your head of command told me that he expects the chinese to establish an air defense identification zone over the south china sea requiring violence from other countries to identify themselves before they fly into the space, which is international airspace. how are your pilots repaired to deal? will they respect that? sec. james: first of all, on behalf of the pilots, our pilots are trained and perform in professional airman ship ways. that is to say we put focus on training and i have confidence in our pilots. with respect to how the united states would approach such a zone, it is my belief that coming we have already said, we would not recognize such a zone. we would continue to fly, in a professional way, within the confines of international law. richard: that sounds like it could generate conflict if the chinese are demanding that you identify yourself and you do not recognize the zone. isn't that a recipe for conflict? sec. james: what is a recipe for more conflict is declaring su

security and freedoms of navigation in the south china sea. we expressed concern over the recent developments in the area. all countries must abide by international law, especially the united nations convention on the law of the sea. we will refrain from actions and implement fully the declaration on the conduct of parties in the south china sea. and work for the early conclusion in this area. thatnclusion, i think vietnam and the u.s. are important partners. the two countries have met and created astounding progress in their relationships. this is beyond expectations. and our partnership today has moved to multilateral compliments. i believe that the two countries have solid foundation to strengthen our partnership, especially in the context of the coming visit to the is not -- vietnam. i am honored to be here and thank you very much. [applause] >> you are watching american history tv, 48 hours of her grammy and on -- programming every weekend on c-span tv. online for information on our schedule you to keep up with the latest history news. ,>

china has maintained the disputes related to the south china sea should be resolved through dialogue between the concerned parties and not between china and asean. the hostage was one of two canadian men taken from a resort hotel. along with a norweigan man. the other canadian was executed in april. he's been kidnappeding foreigners and demanding huge ransom money to raise for its campaign. >>> singaporeans famously love to eat and street foods courts are part of daily life. but these days, few young people are interested in taking up the work of cooking al fresco, one exception is a japanese man with his own haka stand serving up a famous local dish. his customers are slurping it up. nhk world has the details. >> reporter: there are about 6,000 hakas around the country. many long-standing are facing -- not many young people have a taste for working at the haka stands where the job is hard and the pay is low. a street food afficionado worries about the future of the simple cuisine. >> it's a challenging time for street food and haka food in singapore. >> this man from japan opened a m

when we are asking them to take a tough line perhaps on something like the south china sea, they see our lack of consequences in other circumstances and question whether or not they should take a hard line position against a powerful nation or a situation such as their neighbor china. and so we can't look at things in isolation as how we are responding to russia, because it affects what's happening and what's on people's minds in southeast asia, in singapore. people around the globe are looking at our lack of response and lack of consequence and deciding whether or not the u.s. is somebody that they should hitch their wagon too so to speak or not. i think that's the great challenge. whether it's crimea, ukraine, inf is, syria, georgia, they don't see the consequences. when we asked them to take a tough position, they don't see the reason why they should because they know the united states isn't going to follow through. and that's hurting our leadership around the globe. and it's hurting our ability to rally our allies to our side and to create the kind of rules-based order that we nee

reported so far this year in the rich fishing grounds of the natuna islands in a corner of the south china sea. >> translator: poaching by chinese fishermen is increasing this year. china uses fishing boats to establish its presence in the area. >> the indonesian navy said it seized a chinese fishing boat on friday in its exclusive economic zone. it said it fired warning shots at several boats that were fishing illegally. several fishermen were detained. china's foreign ministry responded sharply. it said an indonesian vessel fired on the fishing boat injuring one person in what it called traditional chinese fishing grounds. >> translator: we launch a strong protest over such excessive use of force. we urge indonesia not to take action that can complicate and expand the conflict or affect regional peace and stability. >> the indonesian navy defended its actions on tuesday saying it they were appropriate. it said the fleeing ship ignored its warnings and no one was wounded. indonesian naval officials pledged to beef up patrols near the area, which is where the natunaize are located. china has s

not only combating violent organizations like isil, but also situation in the south china sea, a resurgent russia, ongoing dangers from iran, north korea, but here we are, class of 2016. soon you're going to be confronting the challenges head on and you will entrusted to carry out the nation's will with our most precious resource. that is not equipment. that is america's sons and daughters and i have no doubt you are ready and as you graduate you must lead. aim high, airmen. aim high. now it is my honor and privilege to welcome our commander-in-chief, the president of the united states, president barack obama. [applause] president obama: hello, air force. thank you so much. thank you. it is wonderful to be back at the united states air force academy. thank you, secretary james, for your service to our air force and to our nation. governor hickenlooper, academy leaders, faculty and staff, especially your outstanding superintendent, lieutenant general michelle johnson. and most of all, congratulations to the class of 2016. [applause] as he prepares to conclude a remarkable 40-year career in

we demonstrated that over 220 years the south china sea is probably the most viable commercial ocean in the world with china's increasing assertiveness what advice would you give concerning how to maintain freedom of commerce? without provoking china to do something more pressing? to think any are smart enough to take the device? [laughter] >> i will give this to you because you have done so much work on this issue. >> the problem with this issue with the track of the dialogue someone said the united states is rated as a freedom of navigation issue in china from said as the sovereignty issue as have their neighbors and the problem with framing it that way he almost make it impossible to compromise because it was to go down in history to compromise with that strategy? so i think we have got to insist on international standards what we're doing in some sense when the standing is we failed to do this with the south china sea in trying to make up for lost time due it don't talk about it but it does need to be done and the second thing we need to do is a communication channel and conflict

> indonesia has rejected china's stance that the two countries have overlapping claims in the south china sea. this comes after a series of confrontations between indonesian navy ships and chinese fishing boats. >> translator: for indonesia, we have no overlapping claims of any form with china in our waters. our position is clear and i've already said that repeatedly. >> there have been three reported confrontations in waters an natuna islands so far this year. >> the latest confrontation occurred last friday. the indonesian navy says it seized a chinese fishing boat that was operating illegally in its exclusive zone. indonesian officials say warning shots were also fired at several other chinese boats. on monday, china's foreign ministry said the shooting took place in waters which are traditional fishing grounds and where china and indonesia have overlapped claims for maritime rights and interests in the area. china says it does not dispute indonesia's sovereignty over the islands, but its claim of jurisdiction over almost the entire south china sea does include waters near them. indonesia

for competition. >> those were important comments because many people were concerned that the south china seawould overshadow important topics to get through over the next few days.l in terms of the south china say with kissing ash carter -- we have heard ash carter say that china is at risk of building a wall and secretin's including -- and a secludeing themselves. but certainly, the focus here should be on the economy. that is where the delegates want to be focused, and not on these tensions over the south cina sea. anna: so, there is the geopolitics. prioritiesrica's during this meeting, tom? tom: as you know, we sat down with the u.s. secretary of the treasury, jack lew, yesterday and he went to the priorities for the u.s. in these talks, the economic priorities. and obviously, a big focus is the reform agenda. the u.s. wants to know what is happening with the reform particularly when it comes to overcapacity within sectors like steel and aluminum. take a listen to what jack lew had to say. >> the reason the jury is out is these thiese decisions are not always made by economic advisers. t

manila is facing the growing presence of china in the south china sea. the u.s.ific fleet announced that the uss ronald reagan and uss john began air drills. the u.s. as a pacific leader as a national interest in maintaining security and prols p prosperity. a u.s. official familiar with the plans of the operation as saying that the message of the exercise is unmistakable and the timing deliberate. the article notes that an international arbitration court is expected to make a ruling in the case filed by the philippines against china's claims in the south china sea. the u.s. navy offered an olive branch to beijing inviting gnat ivy to a multi national drill off hawaii in late june. >>> newspapers around the world are closing their doors because of falling circulation. a japanese newspaper in the u.s. could meet the same fate. more than a century of community ties may not be enough to save it. nhk world has that story. >> reporter: it is one of the oldest newspapers published in the united states starting with japanese american comedy. the paper was all in japanese

security network," but he also criticized china for building up its military reach on islands in the south china seasult, china's actions in the south china sea are isolating it, at a time when the entire region is coming together and networking. unfortunately, if these actions continue, china could end up erecting a great wall of self- isolation. >> sreenivasan: a top chinese official said any attempts to isolate china would fail, and the u.s. should scale back its" provocative" military exercises and patrols. pope francis is taking action to hold bishops more accountable for punishing pedophile priests. today, the pope issued a decree that bishops who mishandle sex abuse complaints by catholic parishioners could be removed from their posts. in proclaiming the new policy, the pope abandoned an idea of a vatican tribunal to handle instances of cover-up or negligence, which he had proposed only last year. the head of "snap," the main group for u.s. victims of priest sex abuse, says he's "highly skeptical" the decree will work, because it's just another" untested" process. he called on the church simp

far apart on some of the most contentious issues such as china's growing assertiveness in the south china sea. secretary of state john kerry called for a peaceful solution to any territorial disputes. chinese councillor says all the islanders in the south china sea are chinese territory. beijing said it would ignore an arbitration decision in a dispute with the philippines over the territorial issue. >>> a survivor of the atomic bombing of hiroshima has called on the president to do more to rid the world of nuclear weapons. barack obama made an historic visit to hiroshima last month. >> mr. obama talked about maybe this won't happen in my lifetime. he repeated it once in prague and this time in hiroshima. why. why not? if there is a strong political will, it could happen. it can happen. >> she was 13 when the bomb devastated hoesh ma. she is now 84 and lives in canada. >>> a top aide to obama accompanied the president to hiroshima and also attended the symposium. ben rhodes pledged that obama will pursue ways to free the world of nuclear weapons during the final month of his term. she told rh

threat posed by militarily aggressive china which is seizing territory in both the east and south china seas>> trevor: there is a big deal, obama selling arms to vietnam and only doing it because china is seizing territory in the south china sea. i love how passive aggressive world leaders are. they're never just, like, yo, china, cut it out! instead, obama is, like, vietnam, i have 34eus also -- china, are you watching? china! just wait. vietnam, i have some -- china, china! vietnam, i have some -- china! yeah, watch, some missiles for you! some missiles! (laughter) you know, politics aside, people, you have to admit barack obama is the coolest president ever. he really is. he plays basketball, he tells jokes. (cheers and applause) you know, he smokes. it's like as if the president were black. just something special. now he's leaving and looks like choosing his replacement is a lot harder than anyone expected because 2016 was hillary's presidency to lose. looks like that's exactly what she's doing. >> for the first time ever it is close. 43.3% to 43.2 -- >> the only time anyone should be st

and the reformation taking place there, the fastest in the past six decades. >> reporter: the south china seaprobably the most front issue. we have seen relations strained not just because of the economic issues we have outlined but because of the south china sea. the chinese president addressed this saying he hopes both sides would avoid a miscalculation of judgment when it came to a strategic decision. and this was a statement that came after over the weekend we heard comments from the u.s. defense secretary ash carter who was in singapore for another conference, and he had said that he's concerned that china could be building what he described as a great wall of self-isolation because of their activities in those waters. >> eunice yoon, thank you. >>> still to come, boris johnson slams donald trump denouncing the republican presidential candidate's comments. more on that coming up next. ? we're good. ? five million? good. we scale on demand. hybrid infrastructure, boom. ok. what if 30 million people download the app? we're not good. we're total heroes. scale on demand with the number one c

angie: what did they say about the south china sea? ephen: that's interesting, because in this outcome document, not a word was mentioned about the south china sea. this is probably the most contentious issue right now between the two sides. it reflects how far apart they are on this issue, since it was not mentioned in this. they basically said only the 30th point of 120 points in that document, this is what they said. they reaffirmed their commitment to uphold the principle of peaceful resolution and distributes in the asia-pacific region. no specific mention of the south china sea. john kerry was a little bit more pointed in a post press conference will stop -- press conference. secretary kerry: i think this is important that no claimant, not any country, engage in unilateral actions that could be deemed by somebody else to be provocative and therefore problematic. more thanhina claims 80% of the south china region, along with some of the other nations along that rim. they say their claims are indisputable. obviously they are, though

disputes in the south china sea. these are testing an international order that we build. where the sovereignty of nations is respected in all nations abide by the same rules. in south korea and the specter of nuclear terrorism still threatens us all. threatso meet these while also seizing the incredible opportunities of this moment in history, that is going to be your challenge. the challenge of your generation. which leads me to a second lesson. as we navigate this complex world, america cannot shirk the mantle of leadership. we cannot be isolationist. it is not possible in this globalized interconnected world. in these uncertain times, it is tempting sometimes to pull back. to try to wash our hands and complex and seem intractable. us from pearls harbor to 9/11 that oceans alone cannot protect us. hateful ideologies can spark terror from boston to san bernardino. in a global economy is not possible to stop trading goods and services with other countries. we public health systems on the other side of the world allow diseases to develop that end of reaching our shores. tu

beijing has reiterated its claims to most of the south china sea.ssing a meeting of defense , talking ofngapore common development and security throughout the region. ignore an upcoming arbitration ruling. hinted that the u.s. should keep out of the area. even after a 40% plunge on the shanghai composite, valuations still tower over other markets. we have yvonne man checking in on the story. is it still too early to jump back in? >> may be so. if they do not see a bull market anytime soon and it is because of the government intervention we have seen that is elevated the stock prices. profits continue to shrink. we have seen a 13% decline in earnings in the past year. the biggest risk is the investor psychology. since the 40% plunge since june -- since january, we were main pretty low, below that 3000 psychological line in the sand. compare the valuations to the rest of the world, china still looks pretty expensive, three times more than any other major market. at 59.e ratio that is still higher than u.s. tech shares at the height of the.com boom. th

where it makes it in the east china sea and south china sea, what advice advice would you give a presidentconcerning how to maintain freedom of commerce on the high seas while not provoking china to do something more aggressive? do you think any of them are smart enough to take the advice? >> can i put this one to you because you have done so much work on this issue and then i will add. >> the problem with this issue is i was on this track to u.s. a china dialogue a week ago. someone said you know the problem with this issues the united states has framed it as a freedom of navigation issue. china has framed it as a sovereignty issue. as have a number of its neighbors. of course the problem with framing something as a sovereignty issue is you almost make it impossible to compromise. who wants to go down in history as having compromise their nations strategy, their nation sovereignty. so i think we have to insist on international standards and freedom and navigational and the like, what we are doing is in some sense -- my understanding is we have failed to do this as often as we should have

tom: i would like to follow up on the south china sea. ld me that he expects the chinese to establish an air defense identification zone over the south china sea requiring violence from other countries to identify themselves before they fly into the space, which is international airspace. how are your pilots repaired to deal? will they respect that? sec. james: first of all, on behalf of the pilots, our pilots are trained and perform in professional airmanship ways. that is to say we put focus on training and i have confidence in our pilots. with respect to how the united states would approach such a zone, it is my belief that -- we have already said this, we would not recognize such a zone. we would continue to fly, in a professional way, within the confines of international law. richard: that sounds like it could generate conflict if the chinese are demanding that you identify yourself and you do not recognize the zone. isn't that a recipe for conflict? sec. james: what is a recipe for more conflict is declaring such zones in the first p

now they have, they did not talk about specifically the south china sea which is a security concern thatnited states has had with china and the president discussed it in the recent trip to veietnam when he talked about selling military equipment to vietnam, but the two leaders didding a e gree that india is going to move forward with the joining the paris climate agreement which is a huge priority of the president, and carbon reduction, and all of this is consistent with the relation that the president is nurturing to achieve various of the goals. >> and i would say, carl, the timing of modi's arrival in washington is key, because so many key political strategists have been talking about it. it is the seventh meet iing of prime minister modi and president obama at the white house, and as john mentioned they have been inkrecreasingly bilateral ties with u.s. and india and mentioned the use of exercising navigational freedom which indirectly mentions the south china sea, and we know over the last two weeks, the relationship of the u.s., and china has deteriorated a little bit, because the

china is saying an international court should not oversee the dispute in the south china sea. challenging china's claims to more than 80% of the south china sea. beijing says it will seek solutions through direct negotiations. u.s. investigators have delayed plans to retrieve the black box of a freighter that sank in the atlantic during hurricane joaquin. the national transportation safety board's mission is on hold until august because resources needed for the effort are not yet available. of thecrew members vessel died after it lost propulsion and sank last year. california voters will have the chance to legalize marijuana. advocates have collected enough signatures to put the issue on the november ballot. it would let adults by one ounce of marijuana and marijuana products at licensed retail outlets and make it illegal -- legal to grow up to six marijuana plants for personal use. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. back to you. it is early days when it comes to quantifying the overall m