i'm stephen engle.me to a look at how the economic future of the world's oldest continuous civilization is evolving, a new dynasty being built from beijing on the foundations of a project that is china's belt and road initiative. fast trains are one of the symbols of modern china. and so too is the pace at which the networks are being built. top speed for the train? more than 300 kilometers per hour. and rightly or wrongly in the eyes of some, perhaps, a reflection of china's belt and road ambitions. >> contrary to some other people's misconceptions, it is not a program dominated by china. it is a program by which china works with other countries, working with international financial institutions, multilateral development banks. so it is a kind of cooperation. unfortunately, some people misunderstood this as kind of a china program. china wants to take advantage of this to promote its own interests. nothing could be further from the truth. >> views on china are often mixed. again, china builds up enormo

stephen engle has been following all the developments. will fireworks fly today in amsterdam? could. this was a previously scheduled meeting. dime learned can also be a participant. mler cane -- dia also be a participant. the structure going forward for the alliance is certainly in question. we are hearing from sources that nissan ceo wants to push for a revision or a more equal partnership. noht now, run no owns -- or 15% of nissan. hiroto saikawa could make a push to have a motion put forward for a more equitable relationship with that partnership. it will be interesting to see how her know -- to see how renault response to that. the ceo was elevated last week. he could make a plate to get those -- a play to make those voting rights. it is a very just in power struggle right now. daimler is the unforgotten child in this alliance. stephen: they like the alliance going forward. it's a good thing for daimler. they make small vehicles as well as delivery vans. they could have a say in the alliance. . we haven't confirmed yet whether they will participate. but they would like to

stephen engle is at nissan headquarters in yokohama. lines crossing the bloomberg right now saying that a nissan official is now saying that ghosn has six houses provided including in tokyo and new york. that his sister had an advisory contract as well. we have been hearing all these different news coming from different sources. how transparent have these allegations against ghosn been so far? stephen: you know, the japanese media really coming out with a variety of different stories. we are getting new updates every minute. in the morning papers, we have that story. i believe it was from right here about perhaps some of that money that is alleged to have been misappropriated. it went to carlos ghosn's sister. this isreport -- critical evidence for tokyo prosecutors, who will hold a press conference at 4:00 p.m. today. sahi is from the a people. info thatcollected indeed carlos ghosn ordered reporting of lower pay to regulators, and that is the key point of contention with the ceo of nissan, as they did a several months long investigati

stephen engle is here. brand-new week, where do we go from here? e have heard from carlos ghosn, through the nhk. they are reporting carlos ghosn is reporting any wrongdoing. he remains in custody in a detention center in tokyo along with a former -- fellow board member, the representative director on the board. the two of them being ousted late last week, thursday as the sun voted to oust carlos ghosn s -- thursday as nissan voted to oust carlos ghosn as chairman. at four: 30 p.m. local time, mitsubishi, the third and smaller member will have their board meeting. we heard last week from the ceo whoitsubishi motors basically gave verbal endorsement to carlos ghosn, but a lot has transpired including a unanimous vote from the nissan board thursday night. they will meet later today, 4:30 local time tokyo to vote whether to keep carlos ghosn as chairman of mitsubishi motors. nissan owns 34% of mitsubishi motors. ceo of nissan who supposedly led this as some against theup carlos ghosn, but on the back of allegations of misconduct, which have been handed

stephen engle is just back from tokyo where he has been covering this fallout, in particular the meetingsmember week. where do we go from here? stephen: this story is into the second week. there are a lot of potential developments this week, especially today. meets laterhi board today and they will vote on whether to oust carlos ghosn as its chairman as well. of mitsubishi% motors. it bailed them out after a string of scandals. has stood byo carlos ghosn, at least last week. but the board will be voting today. it has two nissan members on it. we are hearing this would likely strengthen the cause of the ni ssan ceo in his influence, if you will, on the alliance. renault so far has stood by carlos ghosn as its ceo. the nissan ceo will be briefing global employees later today on the latest on what he calls the misconduct of carlos ghosn, as well as fellow director greg kelly. both of them remain in detention in tokyo. nhk is reporting that carlos ghosn has denied any wrongdoing. that is where we stand right now. ramy: great stuff. stephen engle for us out of hong kong. coming up we're going

shery: stephen engle in tokyo.eeping a close eye on nissan, which fell the most since 2016 in the last session. plenty more to come on "daybreak asia." this is bloomberg. ♪ >> haidi stroud-watts in sydney. shery: i am shery in new york. the u.s. is accusing china of theft. it comes 10 days before the leaders of the two nations meet at the g20 summit in argentina. the professor of global affairs at the johns hopkins university school of international studies joins us now from washington. welcome to the show. it is great to have you with us. there seems to be more consensus within the united states and u.s. allies that the trump administration is not wrong in addressing these concerns over china, especially when it comes to ip theft, but are they right on addressing these grievances now? there is a pretty broad consensus internationally and in the united states that chinese trade practices have been a problem for quite a long time and there are concerns around other unfair practices. critiques that have been raised o

stephen engle continues to follow this story for us. his is the latest in the ongoing saga. let's talk about what mitsubishi .otors did the board unanimously following in the footsteps of what nissan did last week. and that's ousting carlos ghos,. the third and smallest member of the renowned mitsubishi motors alliance. this is the ceo, now chairman and ceo, speaking last night. >> to be honest, i was in shock when i first learned the news. hosn, there would not have been an alliance achieved in 2016. i feel mitsubishi management should focus on completing the current management plans to remove any concerns among the customers and shareholders. stephen: nissan owns 30% of mitsubishi motors. they bailed out mitsubishi in 2016 after a string of scandals and profitability issues. some other news crossing the wires. ghosn hearing that carlos has told prosecutors that some of his roman numeral a should -- his renumeration has been rough -- has been deferred until after retirement. innocence,aining his according to this report, saying the paym

northernto our chief asia correspondent stephen engle. there will be another flurry of board meetings over the coming days as all of these companies struggle to work out what to do next. >> it's a very complicated story and a complicated holding structure of the nissan-renault- mitsubishi alliance. some have called it the ghosn- ian knot he has created. taken offs apparently guard by this news that broke late last night in asia. there, the board is going to meet later on tuesday in europe time. also thursday, as you rightfully said, we will get the miss on board meeting in yokohama, where the current ceo is saying that they will lean towards possibly removing both carlos ghosn, as well as the board director, greg kelly. this is what we do know. according to him in the press conference late last night, a hastily arranged one, a whistleblower complaint led to a several month investigation by nissan itself. ghosn was detained by police on suspicion of breaching japanese financial law, underreporting to regulators. during that investigation,

that's go to shanghai where stephen engle is joined by liam fox, the international trade secretary.ll try to have that conversation shortly. we -- what is as the up-and-down in the short to medium term? this way,t's put it consensus now and the markets form of dealn some that gets approved in march next year. for that reason, the pound is starting to rally at the moment. there will be some movement, and the u.k. is telling us there is movement on the backstop with ireland, that a compromise will be found. and in that case, there could be short upside for the pound. anna: i am reading headlines from the economy form in singapore. it is said that we will end up with a hard brexit. no, i think there are two things, do we get through march with some sort of outline deal, but if we have an outline deal that gets us into the transition period, we have two years to figure out the details which will be important. we may get to the transition, but will emerge from the transition will be a hard brexit and a tough deal for the u.k.. anna: thank you very much. edmund shing stays with us on the

our north asia correspondent, stephen engle with the latest.profit estimates for the fourth quarter, but raising profit goals. it is betting on an increase in sales. its new diagnostic system. let's get to frankfurt now. we have the ceo of siemens health and ears. great to have you with us. on atellica to give you the winning formula. how big could become for you? >> thanks for the question. atellica is an exciting product. we have a superstrong imaging business. a very successful first fiscal year. foundation, also our diagnostics business with more than 990 shipments. picking up growth momentum in our diagnostics business because of it over the year. for any of you out there just coming to terms with what siemens healthineer is, just think mri machines, big lip oratory equipment. -- laboratory equipment. you have already moved some production from china back to germany. my question is, how easy is it for you to reverse that? what would it take for you to reverse that and take your production back to china? have an effort of production, we hav

joining us is stephen engle. good to see you.ell us what is expected from the board meeting in terms of what they are divided over. >> the board is going to be convening there in the building behind me at the global headquarters in about one hour's time, 4:30 local time. from what the ceo has alluded to earlier on monday, they will ask the board to vote on whether to oust carlos ghosn as the chairman. there are normally nine board members but there are only seven in attendance because two of in aare still in detention tokyo detention center. they could be there until next friday when prosecutors could issue an indictment. only then would carlos ghosn be available for fail if the judge allows that. that is the side story. what we decide today is his fate as chairman of nissan. we are also hearing if shareholders revolt, they could ask for an egm which could then perhaps call for another vote to have him reinstated. so it's a very convoluted issue, but right now at hand today is the immediate fate of the factions within the board.

our correspondent stephen engle off the coast with our next guest.are aboard the pacific explorer, a cruiseship. o'brien.re with dennis predominant of a network here. quite an empire you have. you are also ireland's richest man. start with the chaos that is instilling right now. you said in january that the thatt was like dunkirk without the votes. how do you feel after watching it all night on your television? >> the u.k. looks like an emerging market. there is so much chaos because of the number of people that have resigned from the cabinet overnight. person, you racing would have to say that it is going to be difficult for her to approve the deal at this stage. >> how does the deal she has struck stick with you? >> it is the best of a bad deal. i think our own foreign ministry in ireland did a terrific job in making sure to keep that central stage because this all goes back to the peace agreement, the good friday agreement. it is not just trade, it is also political as well. >> how do you think dublin would fare in this situation. would note said

pause stephen engle in japan, thank you for joining us.inutes from the open of european equity trading this thursday. next, a look at the stocks we are watching. we will focus in on renault as part of that drama in the auto space. beats estimates. this is bloomberg. ♪ anna: welcome back. this is "bloomberg markets: the european open." we are seven minutes from the equity trading day. stocks we are watching. and the remy cointreau, banking sector and standard chartered. all eyes are on renault again for the fourth day. trade for ambled in record on monday. it stabilized since, but with the nissan board meeting coming tokyo, the future of the lines between mitsubishi, nissan, and renault. investors are probably expected the stock will trade at a narrow band until some clarity emerges about the future of the alliance. remy?the latest on >> from the cointreau released its first half results, but first half beat consensus estimates. that is good news. analysts are pouring over the results. the company missed expectations, so there will be quest

joining us now is stephen engle. i think a lot of people are leaving.uld have a decision already. might have already taken place. we have not seen this ceo leave yet. there will not be a statement tonight. they will likely have to wait for a statement that will be filed through the tokyo stock exchange. the journalists are here, dozens of us, waiting to see if there was a vote and the fate of carlos ghosn, whether he has been voted out as chairman of nissan. he might have weaker troubles in the works. the tokyo prosecutors office is building a case. convicted,dicted and the crimes are considered heavy. that could entail a 10-year prison sentence. this story will unfold over weeks and months. francine: thank you very much. we are back with christian and peter. peter, the implications for the outlines, mitsubishi-renault-nissan? , does the industry take a different shape? >> high am not sure it should. the companiessons have to get together is we have huge overcapacity in the industry. we have to reduce that capacity. one way are mergers. we can share pla

stephen engle is in tokyo.ine on nissan and all these allegations keeps on coming. >> that is right. we are learning from various reports from the investigation that led to the arrest of carlos , it was stemming from the board'sceo and the position grab to a merger that they were pushing between the key alliance partners. for more on this developing story, let's bring in the research head. thank you so much for your time. was this the best way out for nissan, if indeed they did not want a merger? >> that is an interesting question. it is true that they had expressed reservations about a merger. not sure this would be the best way to do it, must there was an underlying problem. >> there seems to be an underlying problem, the height --s at that hastily arranged press conference. too much control was placed at the top. i think he still had a big impact on the senior level, but at the same time, he has been distant himself. one of the incident they were concerned about was the whole inspection crisis. that probably

stephen engle has the latest. what is in this indictment? he smoldering scandal. what was goldman sachs environment were allegedly involvement? now it's becoming more clear with indictments coming from the department of justice. the question going forward everyone on wall street will want to know, are these just a few rogue agents, if you will, some bad apples among goldman sachs? or is this going to be widened out? is the testimony and plea bargain from tim leistner going to expose others? that's the big question right now. goldman is sticking to their same line they have throughout this investigation from the department of justice, that the firm continues to cooperate with all authorities investigating this matter. as far as what we know, three bankers have been implicated by the department of justice. criminal charges have been fired against two of them. will others be next? one of the most senior execs in asia, former cochair in hong kong, has been placed on leave pending review of allegations. he has not been charged with wrongdoing. ceo

stephen engle is with us. fluid story. what do we know? are so many layers to the story. as to what it means to the i alliance best of the allies the carlos ghosn has been building and consolidating into a possible merger. . we will know much more thursday when the nissan board lands to plansnd perhaps vote -- to meet and perhaps vote to have carlos ghosn ousted along with greg kelly. this led to a several-month-long litigation within nissan. ghosn detained by police last night after this investigation was handed over to the police, suspected of reach of japanese financial laws. according to the ceo who had that hastily arranged press conference last night. the nissan board is set. to meet thursday. nissan says the two men underreported their compensation to securities regulators during the investigation. nissan uncovered "numerous other significant acts of misconduct, including personal use of company assets." not a lot of the details or what the financial law breaches were. by kyoto news reporting that hisn may have understated compensati

stephen engle, our chief asia correspondent.g for other key events, particularly in china. industrial profits on tuesday. >> the bank of korea rate decision -- we are expected there as well. this will come up a bit later on. bruno le maire will be on "surveillance" 7:30 hong kong time this evening. ♪ ♪ >> this is "bloomberg: daybreak middle east." aramco's chemical ambition. this ego tells bloomberg he wants the company to become a global refiner and chemical maker and says the ipo is still on. >> we are committed to the ipo for sure. it's about timing. backs take it or leave it brexit divorce deal. theresa may now has to sell it to hostile lawmakers back home. asian stocks in u.s. equity futures are higher after last week's market meltdown. investors look ahead to the fed minutes and the g20 in argentina. in the saw the rumbles into week two with reports from japan saying he has told process routers he did not intentionally understate his a package at nissan. ♪ >> it is 8:00 a.m. across the emirates. this is "bloomberg daybreak

rishaad: stephen engle's is following the latest in tokyo.le case is being built against carlos ghosn, and he is also trying to get a defense team and play. >> i was reading the latest story out of the south china post, the business jet for personal use -- is a golden age for japanese journalism. i might say that now because the nikkei, the saudi, a number of newspapers out with their own scoops but the latest story is carlos ghosn telling prosecutors the money that is now being payment thateing was underreported to securities regulators was actually deferred payments for after his retirement. to deflect criticism he was being paid too much. however, that is according to the newspaper, sailing -- saying carlos ghosn was justified in doing that and he maintains his innocence. however, the nikkei comes out and says those deferred payments are not ok, because they were fixed at the time they were announced, therefore they needed to be reported to authorities. this is a really convoluted story. another one from another newspaper said ghosn may ha

we were speaking the stephen engle a couple moments ago and he was telling us about this huge divideetween china and the united states. if we don't get any breakthrough at the g20, what will leave a turning point for equity markets in asia? >> hi. if you do not get a breakthrough at g20, markets will selloff. you have seen the recovery and sentiment the past couple weeks on the expectation they are going to start the negotiation to ass, which would lead deal over the next two to three months. you see the rally in asian equities. -- he same time you see if there is no deal at least in the near term than there will be a risk sentiment. shery: what about valuations? we saw asian stocks getting cheaper and cheaper. valuations dropping last month to the lowest since 2016. could this support markets? >> absolutely. valuations are fairly attractive in all of asia. you look at it in absolute terms. japan, hong kong, china, singapore. they are all very cheap. the concern is for growth outlook, where is where job owning comes in. valuations will carry the markets higher. believe by thee first

stephen engle caught up with u.k.tional trade secretary liam fox and got to ask direct questions on the subject. >> have you spoken with the chinese government officials about their opposition to the uk's plan to have its own wto tariff quote? >> if anything the chinese government officials regard brexit as an opportunity. they see the u.k. will be a will to set its own trade policy for the first time in 40 years. the further you get away from the epicenter of brussels, the more people can see opportunities it brings. our tariffss -- on we want to replicate eu tariffs as much as possible. schedule, wehe have a methodology in line for that. as an article 28 discussion. >> that could delay the process considerably. >> not really. we will be able to trade on schedules. the europeans are throwing up their hands in horror at my own party, but we are trading on uncertified schedules as an eu member. we did not trade on schedule in 2004 and 2016. , they time he got to e25 were trading on schedules that were decades-old. >> h

stephen engle caught up with the u.k.de record terry in shanghai this week and got to ask some very direct questions on the subject. ♪ >> have you spoken to the chinese governor or officials about their opposition to the plan to have its own terrace? chineseything, the officials we speak to regard brexit as an opportunity, and they see that the u.k. will be able to set its own trade policy for the first time and the further you get away from the epicenter of more people can see the opportunity that it brings. we want to replicate the eu andffs as much as possible there will be some disaggregation and we have a methodology in mind. described asat we disaggregation -- >> but that could delay the process quite considerably -- i heard some europeans throwing their hands up in horror in my own party that we are currently trading on schedule as an eu member. since 2004 ine 2016. the services schedule that we are trading on, -- >> how important is that to you? it's very important for the butre of the united kingdom we have count

they are getting down to stubbornness right now. .hery: thank you so much stephen engle joining us from hong kong. we will have more on trade with capital markets and mickey leavy. he said china needs to maintain its trade channels with the u.s. haidi: alliancebernstein joins us to see whether they are seeing value in asian credit. this is bloomberg. ♪ is bloomberg. ♪ asia. this is daybreak i am shery ahn. haidi: i am haidi stroud-watts. markets are rebounding and currency.supporting bolstering market sentiment, but , it leaves -- apec the the sentiment worsened for wear. let's look at the first -- fixed income portfolio manager. the disarray in papua new guinea couldn't even get it together to put together a broad set of principles in a joint communique , does that lengthen the odds we will see resolution in buenos aires by the end of the year or next year? >> it places additional pressure on the g20. markets are not really expecting any significant announcement or trade deal out of the g20, but i think there is anticipation we will see the framework for agreement to be established in

here with possible market impact of the talks is stephen engle under -- englander.f we do get any sort of reprieve or any sort of truce, does it mean dollar down and yuna up -- yuan up? >> i think that would be the general trend. you have to be careful. i think what is most important is that there is some indication tariffs will be delayed. hugoesn't matter if they but -- lisa: come on, it matters if they hug. steven: maybe for a few seconds. andink markets will selloff the doesn't matter what they say on the negative side as well, but if they say we are making enough progress to delay the implementation of further tariffs, markets will rally on this. lisa: what do you think is a bigger risk factor, the fed or trade? steven: i would say based on the market reaction and the rally, the fed is opening the door to finishing the rate hike cycle. it looks like the fed. the equity market pickup we have seen over the last few days is 80% fed and -- lisa: really? at 693,a look at trade 694, 695. there is a huge optimism priced into that. tradeif it's 80% fed 20% do you expec

stephen engle is at the headquarters. what are we expecting to take place?inating story that is captivating both sides of the continent. in tokyo as well as paris. that is the fate of carlos ghosn. perhaps going to be decided later this afternoon. depending on how the factions go, he could be ousted as chairman. we heard renault is standing by him as chairman until they have more evidence. let's get some more perspective on this. turning it over to my guest. the deputy head of research. you do cover nissan quite closely. this was ang like palace coup. reading in the papers, nobody knows for sure. what we are reading, it is more and more sounding that way. we are hearing more about this criminal issue being connected to their ownership and shareholding. what the relationship between the two bank company should be. >> we are hearing from various media reports nissan is going to push for a change in the structure. hearing it isbeen inevitable and not feasible going forward. they did not want a merger. how do you see the structure playing out if indeed carlos gh

joining us now is a stephen engle, who has been tracking the events. good morning to you.hat stood out in this speech? president xi used a lot of colorful metaphors, as often chinese leaders do. specificscked were like the european chamber wanted . firms specifics on opening up and reform measures. he instead rolled out old pledges he talked about repeatedly. being a champion of globalization, also opening the market further to foreigners. that is the audience that was here today and all week at the first annual china international import expo. he is going to make this an annual event. 3000 companies from 172 different countries are represented here. hasght add, mostly country of multinational companies. not a lot of big ceos. that is symbolic as well of the reception so far at the import expo. he did talk as well about punitive compensation systems for intellectual property rights violations. the devil will be in the details. he also plans to boost domestic consumption. the has been a long-standing pledge of the chinese. he upped the pledge saying we are not only going to

now we welcome our bloomberg colleague, stephen engle. ephen, welcome, thank you for staying up to talk with us. from the chinese point of view, give us a sense of the chinese reaction to this back and forth on trade. mr. kudlow now saying don't be in a big hurry. >> at the opening of the chinese international import expo he was saying that china is in it for the long run. he mentioned that this is a 5000 year economy country and that they are here now and that they are here to stay. again, he did not mention the united states or donald trump by ore, but he did criticize the lack of globalization, from some members of the global economy and their protectionist nature. you mentioned those quotes from xi jinping, but we also heard from the head of alibaba, who said it is the most stupidest thing in this world, a trade war, that is. they are in it for the long-term and they are also going to not give any fire to the electorate ahead of the midterm elections coming up in a few hours starting in the united states and your time. right now china

stephen engle has been covering this story all week and joins us now from tokyo.that indicates that perhaps carlos ghosn underreported his u.s. dollars.ion surmised heation had underreported by some $44 million. numbers keep on getting larger. has notadd that carlos been charged with a crime yet but he is still being held in detention in tokyo, waiting for what prosecutors are doing now which is building a case for a possible indictment. local media said he could be held in detention for at least another week. another report said it could be extended as long as december 10 before any indictment, and therefore any eligibility for bail. he is in a pickle right now on the legal front. as far as the board vote last night it was a surprise it went unanimously. we were contemplating whether people who came from renault, we knew the day before they had not sacked carlos, they had employed an interim ceo to take over. the expected maybe the board vote last night at nissan headquarters would be tighter. it was not. it was unanimous. it looks as though the cio was quite con

joining us now is stephen engle. a headline crossing the bloomberg right now, nissan saying the board has dismissed carlos ghosn. what do you make of these latest revelations? it is an amazing fall from grace. he built it into a global powerhouse alliance. step inht be the first his career beginning to unravel. he was voted out unanimously by the board. couldld not vote, nor greg kelly, also said to be in detention under the same sort of microscope by prosecutors. we will get a final statement in to next two or three minutes the tokyo stock exchange on this move that now nissan is saying has happened. they have not removed him from the board outright. thatdicates, this boat, there might not be more resistance from renault. crossing.w more lines if they don't name an interim chairman, they are not decided net. men saying the two masterminded the conduct. remind us what is alleged to have happened here. >> they put together an investigation that lasted , basicallyths allegations that he misrepresented or underreported

yvonne: let's get the stephen engle. he has been covering the story all week. he is in tokyo today.out how the ouster might be the easiest part. what does this mean for the alliance? will it change the balance of power at least? stephen: the is still in the picture at renault. renault decided not to oust a mess chairman and ceo. they will wait a little longer. interim chairman and ceo. this board vote last night makes it a little compensated because it was a unanimous vote, including two nissan board members who had come over from her know. -- from renault. for some time that ghosn was guilty. the last thinking in few days, if indeed he was ousted and he would be ousted eventually from the alliance, if, if, if, what is his legacy? he has iconic status here as well as in the auto industry. bring up the 15-year chart of nissan. who was ons head bloomberg television earlier what shareholder value has carlos ghosn brought to nissan investors? over 15 years, after the turnaround story, we saw years that are pretty flat. david: he has not been charged, right? when we get to that point, ho

our correspondent, stephen engle, has been tracking the story. rks at the board meeting in a japan. stephen: and they seem to be on the same page publicly. of course, there are underlying issues nissan would like to address, such as a equitable structure within the alliance. the japanese feel that the french government and renault have too much control over the alliance, with voting rights that nissan does not have. that may get pushed to a later date as in the sun gets their ducks in a row to take this on that later on. keep in mind, the three main players attended the meeting in amsterdam by videoconference, so it is kind of hard to have fireworks when you're not actually face-to-face. so you have the three ceos right now, ceo of nissan, as well as mitsubishi, and terry ball array , the interim ceo. keep in mind, renault has not hosted carlos ghosn as chairman and ceo yet, they want more proof of the allegations before they made any kind of move. the nissan ceo spoke to reporters and said at three leaders are aligned on the direction of the alli

athaad: let's have a look what is happening with all of this and let's get more with stephen engle followingthe moment in tokyo. how is the story progressing? everyn: it is progressing -- progressing. every minute i get a new alert on what is happening here, as well as in paris. a list to update you with nissan. they will have a board meeting tomorrow where the current ceo is expected to push for the ousting of carlos as chairman. right now we are getting a report from japan's -- saying nissan is eyeing revising the alliance. that is an interesting development. it is always considered the backstory that nissan did not agree with the current ceo who was in disagreement with his thought. cementefforts to further with renault. the sec reporter we are month away from carlos really cementing a move to merge the companies. but he was against that and he had publicly stated he was against that. keep in mind, nissan officials ife growing more unhappy, you will, with the inequitable relationship in that alliance with the french government has a very strong 15% stake in renault , therefore had much mo

haslinda: stephen engle there with us. let's bring in christopher richter.s unfolding drama? we are talking about a man who basically saved nissan from near collapse two decades ago. let the global expansion of a carmaker, how do you read into this? christopher: i take issue with the comments that it was the efforts of many. it was, but until mr. ghosn arrived, the many at nissan were not doing anything. you needed someone from the outside at that point. haslinda: what does it mean for the tie up now? issue,pher: the biggest and this has been thoroughly discussed, is what is the future of the renault-sans alliance -- nissan alliance? on the one hand, maybe this is kaput, but the take i have gone it is what mr. ghosn was trying to achieve was a merger of equals. on the renault side they may be saying, we own 43%, we are not far from -- we have the larger stake not far from a majority. maybe we need to be more assertive in our management of nissan. yvonne: given how lopsided against the ownership structure was with his alliance, do you think it could be positi

engle whog in stephen is back from the big trade expo in shanghai. what are we expecting to see?y to see the tug-of-war. on the one hand, a slowing chinese economy. tariffs inr, higher soybeans which could push up prices. bpire likely to see inflation staying steady at 2.5% in october, same as september. this is the highest pace of cpi inflation since may of 2014. that is due to food price inflation. pork makes up a big part of that food portion of inflation. china has already imposed tariffs on u.s. soybeans. china imports a lot of soybeans. and they go into hawk feed -- hog feed. if that goes up, pork prices go up. so you can see the trickle up onact on the tariffs inflation. and you have a slowing economy. so we have to look at pricing power at the factory gate. that is likely, according to an economist, to have eased off in october 2 3.3%. it was 3.6% in september. it was 4.7% in june. 4.6% in july. so we are seeing less pricing power at the factory gate of chinese manufacturers who have to import and export into the domestic economy. paul: you mentioned the seasonal distorti