without welcome to this stage the vice- premier of china,. [applause] >> [speaking foreign language] . . clinton, as will be joining us in a while. secretary geithner, mr. liveris, and madame hills, all the ladies and gentlemen, friends today i am deeply honored to have this opportunity to meet you tonight. [speaking in chinese] >> translator: and mr. liveris >> translator: and mr. liveris raised a question for@@@@@@@@@ that's a book written by mr. biewbin which has had a very major influence on me. and i agree with these points outlining in that book and through this book i came to know mr. rubin. people sometimes say a famous teacher must have smart students. and i just came to know that ?erkt secretary geithner is a student of mr. kissinger and mr. rubin. so that's the situation between tutor and student. and that inspired me. so i'm thinking about teachers that i can name that are as great or as smart as mr. rubin and dr. kissinger. and i found one. found one, and this is when i was studying and northwest -- nw university in china there wa

the images of my last days in china came back, each one clearer than the last. i feel that i was going to crumble under the pounding waves of the motions come each stronger than the one before. standing on the base of the monument, i could clearly see the square occupied only by strolling tourists snapping photos. i had returned but so had my turbulent memories and they're seemed to be no place and the peaceful scene i saw in front of me. that is all from the book i would like to read and i would now like to open up to the floor if you have any questions. and there is michael going aground. >> [inaudible] >> my question is about the new memoir that has been released, and certainly it seems extraordinary, and he has his own version of events he is sharing in his memoir and i wonder if you could comment a little bit about how you might have seen his role at the time or how you might see it now. >> i haven't read the book. when i came out to the states to do the book tour the book was just being released in london. but i have been together interviewed with of the e

for their part, the u.s. and china began two days of high-level meetings in washington today with nuclear proliferation and the global economic crisis month issues on the agenda. in an address to the diplomats from both countries, president obama said that he was under no illusion that the u.s. and china will agree on every issue while underscoring the value of the relationship. >> the relationship between the united states and china will shape the 21st century, which makes it as important as any bilateral relationship in the world. >> for more on the talks going on today and tomorrow, we're joined once again by orvelle shell, a china scholar and a director of the center on u.s./china relations at the asian society here in through york. welcome back. >> pleasure. >> we just heard president obama as he was talking about the importance of the bilateral relationship between the u.s. and china. how significant do you think his speech was? >> well, i think they're trying to merge these two extremely important families. the

president, paul the year before. mary kay china's president, paul mak, says direct selling goes up sales growth when fewer chinese are joining the middle class. carol shen, general manager of estee lauders china affiliate, says the economic downturn heightens chinas importance in estee lauder's global strategy. >> i just think it makes china even more important and more strategic, because i think that around the world this is a growth area. >> the company has eight brands in china, and opened this development center in 2005. >> here the company tests products like mascara and foundation specifically for the asia market. it's the company's second largest research center in asia, and their research is paying off. in fiscal year 2008, the company's sales in china grew 41% over 2007. estee lauder has counters in 32 chinese cities, and during the economic downturn carol shen says the company is shifting strategies from further expansion to penetration. >> in the next 12 to 18 months we are going to go deeper in the cities we are already p

although past relations between the u.s. and china have been influenced by the idea of a balance of power among great nations, the fresh thinking of the 21st century moves us from a multi-polar world to a multi- partner world. in this dialogue we initiate today, that will enable us to shape a common agenda. we know that our nations face a common global threats from the economic crisis to nonproliferation, climate change, clean energy, pandemic disease, global disease, north korea, pakistan, iran, and beyond. silly must find common ground and work together in common purpose even as we may disagree on certain issues. as we will hear later from the president, the obama administration is committed to broader engagement using robust diplomacy and development, working with and beyond governments to solve regional and global problems. when i was in china in february, it was my first time back in almost a decade. i was struck as many visitors are by the transformation that had taken place. driving on the third ring road in beijing, i felt lik

and if the u.s. and china could make some agreements that would give heart to the world to show that they are now in the game in a serious manner, this would be an incredibly important move forward so that's going to be negotiated now. but they're much -- china's a developing country. we're a developed country. we have different obligations than they do. but how do we both consecrate ourselves to solving that problem? that's going to be one of the biggest questions under discussion. >> and then i presume when we talk about nuclear arms, we're talking about north korea? >> the internal subject of north korea. and the truth is, we love to think of -- if china would only do this, that and the other, we could trap north korea. but i think china does not have as much influence as we imagine. this is a very artartic independent state but it's extremely important. that we collaborate with china to do what can be done to bring them to heal, like iran. not an easy topic to have a clear solution for. >> orville schell,

consumer is -- the demand curve in the global economy in china is the supply curve, china's gdp numbers are very supportive. but indirectly, a lot of the stimulus going into place is one that is increasing supply on that cost base. for me, i don't regard china as being the strongest component. it's really today very much a commodity and sort of export play. we need to start to see china become a domestic demand story before we can say this is a new or differenting growth. at the moment, the china story is still very much what we have seen between 2030 the and 2007. that needs to change in dynamics. up and to that point, the u.s. consumer is very much the key focus of demand in the global economy. okay. more to come from churam chaudhry. still to come on today's program, nokia is expected to post a minor improvement in second quarter profits. what is the outlook for the hand set market and for the companies that make them? >>> for a review of the nokia numbers, we're joined by perry. i was just looking at the notes ahead of this. you have nokia on a cell. you seem to be rather downbeat.

the company expects china to overke the u.s. as mary kay's largest marketithin five yes. 2008, mary kay china saw 50 salegrowth over 2007. and deite the economic downturn, thfirst two months of 2009 saw a % increase over the year befe. mary kay china president, paul mak, says direct selling goeup in a down ecomy, and sales ha remained strong. >> even with t downturn we are growing very fast. 2008 is still a record yea >> rorter: it's a challenge u.s. cosmecs companies are facing in chin maintaining sales growth whefewer chinese are joininthe middle class. rol shen, general manager of tee lauders china affiliate, says theconomic downturn heightens chinas impornce in ese lauder's global strategy. >> i just think it mak china even more important and re strategic, becau i think that around the world this a growth area. >> the comny has eight brands in china, and opened this development centern 2005. >> he the company tests products like mascarand foundation ecifically for the asia market. it's the company's secon largesresearch cente

that's how president obama sees the future of u.s., china relations. the president spoke as the two countries began two days of talks on economic and security issues. both nations are upbeat about global growth, pointing to signs the world is moving toward recovery. as darren gersh reports, the question is how to keep the world's largest economies headed in the same direction. >> reporter: it was chinese state councilor dai binguo who summed up the self-interest that brings the u.s. and china together in massive meetings like this. >> ( translated ): we are in the same big boat, that has been hit by fierce wind and huge waves. >> reporter: as massive economies, both countries are critical to the emerging global recovery, and both countries also have common interests and problems. to see why, all you have to do is walk across the street from this meeting to the u.s. treasury. the u.s. government is selling a record $115 billion in debt this week. the chinese, of course, are the biggest holders of that debt, their stake topping more than $800 billion. eco

the headlines, china grows while others are shrinking. john records growth of nearly 8% as the stimulus package kicks in. fears over house some of the money is spent. the telescan has grown in strength, a warning from an american commander. troops are hobbled by lack of helicopters in afghanistan. america may be expanding military bases in colombia. what will their neighbors think? india and pakistan tried to get back to better relations after the terror attacks. >> the u.s. space shuttle endeavor finally lift off, destination, international space station. nasa celebrates 40 years since the launch of apollo 11. tom watson rolls back the years at the british open. it is 7:00 in washington, midday in london, 7:00 in the evening in beijing. the government appears to have pulled off the amazing trick of expanding the economy while most major countries still languish far behind. a growth rate of nearly 8% for the three months to june is an indication of beijing's massive stimulus package. the authorities are the first to admit the growth is pat

of the commodity places. even copper in china. you know the people's republic china only makes up a third of the demand for its sell. in fact, fertilizer in general and potash specifically represent the one commodity china doesn't control. despite the sympathetic decline of fertilizer stocks experienced today. the long-term impetus behind potash, my first fertilizer since i took tnh rather than focus on potash or mosaic, rising population levels, not just in china but across the globe, requiring more food, along with rising income levels in developing nations, which we will soon be considered, because it increases demand for better food like meat and livestock. they need to be fed. creating even more demand. these are trends that i don't think will go away regardless of what china does. farmers have an incentive to make their land more productive, that means using more fertilizer. that said, the reason i told you to stay away from these stocks because the fertilizer business has been horrible. horrible! mostly because farmers hel

is china going to cripple the summer rally? is china going to bring commodities down? what's going on. why did it crack up 5% today. >> three questions, i will go with the last one first. the kerp today was there was indication from the authorities in china they will stop the crazy lending going on. they had an explosion in bank loan, actually andy bush did a great piece on cnbc.com on this subject. the record number of loans made, probably 20% have gone into the stock market and property speculation. they're talking about tamping things down. end of the story, i don't think they're going to. >> how about a second end to the story. should they? a lot of people have been talking about a bubble in china, pouring stimulus in, right? a lot of the stimulus has gone into the stock market and a lot has gone into forced bank lending, which is guaranteed by the government, by the bank of china, kind of like fannie mae and freddie mac. i hope that story turns out better than fannie mae and freddie mac did. >> both are true but that's only a part. when we've been speaking to compa

that was the intention then and today. >> is the effort in china? >> yes, but i am not sure there will never be anything different. as soon as the chinese edition was published, it was posted on the file server and everyone is downloading this thing. people who care about it, it need to read it, are getting access to it. they had a different view of things, a different view of what was happening on the ground in beijing, they added different view of what is an appropriate response, a different view about whether or not compromise is ultimately threatening to the state, whether or not people express themselves is something intolerable in a modern society. this debate is still going on. it is not history, it is -- this memoir has ended this debate. >> i believe the answer lies in the public reaction to this. to my surprise, each popular audience in hong kong, i think -- one thing, is because this character, zhao ziyang as a character is still being remembered and people want to hear his version of history. the other aspect is that people instinctively

cal shen, general manager of ese lauders china affiliate, says the enomic downturn heightens chinas importae in estelauder's global strategy. >> i just think it makeshina even more important and more strategic, because think that around the world this is growth area. >> theompany has eight brands in china, and opened ts development ceer in 2005. >> herehe company tests products like mascara a foundation spifically forhe asia market. it's the company's second largest search center insia, and their rearch is paying off. in fcal year 2008, the company's sales china grew 41% over 2007. estee lauder has counters 32 chinese citiesand during the economic dowurn carol shen says the company is shifting strategies fm further expansion to penetrati. >> in the next 12 to8 months we are going to deeper in the cities we are alady present , rather than oping in a lot re new cities. >> reporter: theompany will heighten brand awareness tough advertising anpromotions. but carol sh says estee lauder will maintn its one brand, one world philosophy. >> wbelieve our products are safe, high performance, t at the s

the fact is, china's auto industry is badly in need of consolidation. of the country's 150 registered manufacturers, just 20 account for 95% of all sales. the big winners, are the foreign brands with their state-owned joint venture partners. they produce the cars of choice- - commanding over two thirds of the market. china appears to offer the global badge makers a future, while the u.s. sorts out its own restructuring. ford's china based car sales in june were up 55% year on year. while general motors plans to double its china production to over two million units by 2014. stefan kracht is executive director of the china market intelligence consultancy, fiducia. >> those who are successfully operating in china, i believe, we will see further investments. and rather than being new investments, they are deeper investments into joint ventures that they have already set up or within the value chain: component manufacturers or suppliers. >> reporter: this positive outlook rests on the government's continued auto industry support plus, at the operational level

with the furthering of china's reform opening you, china and the united states will have eavepb closer economic cooperation and relationships. and china-u.s. relationship will surely keep moving forward at a new starting point at which this round -- new starting point. i wish this round complete success. i now give the floor to secretary of the treasury timothy geithner. >> thank you vice premier wang. it's a great pleasure to join secretary clinton and your entire delegation. president obama and president wu called on us to build a comprehensive bi-lateral relationship. this is a testament to the importance of that relationship and our commitment to strength g it. i had the privilege of studying twice in china almost 30 years ago. and if you look what china has achieved since this the leadership in that country has brought about some of the most remarkable transformations in modern economic history. no one can look at china and not be convinced by the basic fact that when china commits to reform it is able to deliver remarkable change. this strategic and economic dialogue breaks new g

the market in china will be the biggest in the world soon even before the us because you have much more population in china and the country is wider. you wouldn't have guessed it from this show but all this is taking place during the worst crisis theairplane manufacturing sector has ever experienced. anes annually, this year it will be lucky to hit 300 as falling demand and a lack of credit force airlines to cutback. >>bockman: this assembly line here in tianjin looks identical to the ones in toulouse and hamburg and thats of course deliberate because airbus wants to transfer as much work as possible out of the expensive eurozone to places like china where or course running costs are a lot lower. this factory will soon churn out 4 aircraft a month for the chinese market. officially airbus wants to capture half of the chinese market - but by having a major presence here the company's target is really around 70 percent. >>: however no-one could accuse airbus of protectionism, the work done here is work that was once done exclusively in europe. in other words well paying skilled jobs being

it is called the u.s. china strategic and economic dialogue, it's a big meeting, big conference that happens the next couple of days. president obama's going to be highlighting it this morning, and essentially, it's somewhat of a departure from the bush administration, prurv focusing on the economic relationship between the two countries. president obama when he first met with the president of china said i want to expand, so they're going to be talking about security issues, north korea, which they feel china's been very good in pushing north korea and some other things. and so it's beyond the economic priorities, it's really establishing a broad wide range between these two countries, heidi. >> yes, we want china continue liking america, certainly. and just for everybody's sake, we were looking at pictures of secretary hillary clinton moments ago. these are live pictures coming to us from the ronald reagan building and we also have secretary of treasury who is there and, of course, the president of china and th

china's concern for the u.s. economy...why it's pushing for america to be more responsible with our fiscal spending.. and should we be afraid of china's threats? plus, from yahoo to microsoft....the competition among internet search engines heats up...but do they have what it take to lure users away from google. and...finding happiness during this gloomy economy....why one expert says now is the time to look for the positive....it's all ahead on this edition of first business. welcome to the show everybody thank you for joining us and let's bring matt shapiro of m w s capital joining us from the options exchange. it looks like the stock market is continuing to like what they are hearing from companies reporting second quarter earnings results. this morning we are going to have some big names at&t american express ups and microsoft after the close and i think this is going to put points on if we can get to the century mark that with and stalking best of distance. cochran did so with initial claims this morning and

they produce the cs of choice- - commanding or two thirds of the market china appears to offer the global badge makers a futu, whilthe u.s. sorts out its own restructuring. ford's china bas car sales in june we up 55% year on year. while general to plans to double its china produion to over two million units by 20. stefan kracht isxecutive director of the china rket intelligence consultan, ficia. >> thoseho are successfully erating in china, i believe, will see further investment anrather than being new investments, they e deeper investmentinto joint ventures thathey have already set up or within the value chain: component manufacturers or suppliers. >> reporte this positive outlook res on the governnt's continued auto industryupport plus, at the opational level, maintaining low wages. re at lifan, xu yanping work ne hours a day with an hour off folunch, six days a week. holidays amount to 16 dayser year. her monthly takeome pay is $190. in new china, anssembly line couple wld be hard pressed to buy an apartment or own a ca >> ( translated ):f he's an engineer or in managent, i think we c

president barack obama said the relationship between the u.s. and china which shape the 21st century and said the two shared a mutual interest. the meeting is the first formal negotiations between the u.s. and china since mr. obama took office. we have this report from washington. >> china and america were standing together today, trying to speak the same language. >> yes, we can. >> not much of substance was announced, but there were grand themes. >> the relationship between the united states and china will shape the 21st century, which makes it as important as and have bilateral relationship in the world -- makes it has important as any bilateral relationship -- makes it as important as any bilateral relationship in the world. the current crisis has made it clear that the current choice is made within our borders reverberate across the global economy, and this is true not just in new york and seattle but in shanghai and other areas, as well. that is why we are committed to strong bilateral and multilateral coordination. >> some are hit hard by the globa

and the cold war was in a stalemate. china's economy was cut off from the world, and a huge percent sapercentage of the people lived in poverty. we had a dialogue of narrowed focus with a shared rivalry with the soviet union. today we have a comprehensive relationship that reflects the deepening ties among our people. our countries have now shared relations for longer than we were estranged. our people interact in so many ways. and i believe that we are poised to make steady progress on some of the most important issues of our times. my confidence is rooted in the fact that the united states and china share mutual interests. if we advance those interests through cooperation, our people will benefit and the world will be better off. because our ability to partner with each other is a prerequisite for progress on many of the most pressing global challenges. let me name some of those challenges. first, we can cooperate to advance our mutual interests in a lasting economic recovery. the current crisis has made it clear that the choi

possible impact on the dollar. china is the top u.s. creditor. with more than $800 billion in u.s. treasuries. meanwhile, china's second quarter gdp is up nearly 8%, and it's being closely watched worldwide as the first major economy to show signs of improvement. >> translator: a more open and more dynamic chinese economy will bring opportunities to all countries in the world, including the united states. >> and the president said he hopes these two days of talks will help overcome mistrust on both sides, whether it's the economy, climate change, or relations with north korea. maria? >> all right, hampton. thanks very much. we take a closer look at the u.s.-china dialogue right now with joe muse, and don straszheim. nice to have you on the program. good to see you again, don. it's been a while. joe, you've been in china recently. give me your sense of what they're trying to accomplish with this meeting. >> well, maria, i think this is primarily a listen politely and go your own way sort of a dialogue. you heard already in hampton's introduction, w

now, that's good for the china economy but it's not necessarily good for the rest of the world. >> there's been talk recently coming from china about pressing for perhaps a new currency that would replace the dollar when it comes to big international dealmaking. do you think that is a real threat here? >> well, because of our deficit spending, the chinese are concerned about the dollar and their investments in the dollar. and they would like to have some sort of alternative. but i really don't think that's going to happen for a long time. i think the dollar will remain the currency of choice, at least for the foreseeable future. >> because they own so much of our debt, wouldn't that undermine sort of their own investments? >> yes, they'd be hurting themselves if they took a dramatic shift away from the dollar. this is something that could happen gradually over time but i wouldn't expect anything soon. >> brian, thank you. >> it's been a pleasure. >>> by the way, for more on the g-8 and the issues at this summit, you can read a commentary by "worldfocus" blogger nina hachigian at worldfocus

we talked about the relationship. china/u.s. relationship, the reason it has come so far today, because the trend on history, moves in historical way is. that serves the people. that is because both countries have come to appreciate that point. henry kissinger is with us tonight. dr. kissinger was one of the pioneers in normalizing the relationship between our two countries. and he was more lucky than most of the chinese people present here tonight because he had a chance to meet premier joke, who we loved deeply. and he had the opportunity to me mr. dun chao he witnessed an experience, how great changes have taken place in china. so henry kissinger is an eyewitness of modern china. friends here tonight also witnessed, parts and sections of china opening up the process, who was riding a bicycle in beijing in 1981. and including his father. on the internet, people sometimes talk about my relationships, sometimes they think i am one of the uncles of secretary timothy geithner. because his father -- was the representative of the for

the main news, china seeing some of the worse violence in times. "bbc world news" is presented by kcet, los angeles.

because the market now believes that china no longer needs anything from the rest of the world. china's full up. that's what everyone was saying behind the scenes today. and what was the tell? something even i never saw coming -- two straight weeks of copper inventory increases where it's kept. the repository is in london. for me, that was the signal that china's kaput for now. i mean that's the reason why shanghai's market took a 7% plunge last night and brought our machinery and raw material companies down with it. two straight weeks of copper inventory builds in london leads to a huge sell-off in china which then crushes cyclical stocks in america. is that crazy? no, i'm not crazy. maybe a little overreaction. but this is the new world. the new world order, where we used to be china and china's now us. you know that a dozen years ago china used about 10% of the world's copper and we used 30%? do you know it's exactly reversed now? they use 30%, we use 10%? since copper's used in all kinds of construction and infrastructure projects, none of which we're doing, a decrease in dem

the broadcast. tonight education, healthcare, china and more with the president of yale university, richard levin. >> china's progress toward liberalization, towards freedom of expression, towards rule of law is only going to be helped by our engagement, our example. the more students that come to the u.s. and experience freedom, better off we are. they're going to go home and they're going to have a taste of what a free society is. american universities are actually the best instrument of diplomacy that the united states has. >> charlie: the president of yale for the hour, next. captioning sponsored by rose communications from our studios in new york city, this is charlie rose. >> charlie: rick levin is here the president of yale verts millions 1993. he has expanded yale abroad and at home. he's visited china 12 times in the last 8 years. he's established many joint ventures with their universities. the endowment has been hit hard. he serves on president obama's advisors of science and technology. i am pleased to have him back at this table. welcome. >> thanks for having me. >> charlie: let me do a

competition over natural resources and the emergence of china. pite these changes, we have continued to approach the region in many cases with a limited short-term scope which was the focus of the hearing that we held in our subcommittee last week, but nonetheless the strategic value of this region should never be underestimated. this hearing, with its many nominees underscored the call for a comprehensive strategy to guide american policy in asia. particularly, in devising a response, a proper response, a measured response of the growing power of china in this region. maintaining a strategic balance in asia is essential to protecting all of our interests and the interests of some of our closest allies and partners. the countries in this region depend on the united states to remain proactively engaged and to adopt a long-term commitment in our engagement to the region and i would urge the nominees as they take up their prospective positions to engage this approach in their relations with the host countries. it should incorporate an awareness of re

to 5 per cent level >>: 200 billion dollars worth of holdings and more to invest - we meet the head of china's sovereign wealth fund gao xiqing, >>: as a sovereign wealth fund... for us, we are a much longer term investors >>: and working on the short game, golf gets a 21st century makeover for audiences with small attention spans. >>: an application of shorter form golf that can do for golf what 2020's done for cricket >>abirached: hello and welcome. i'm raya abirached and this is world business, your weekly insight into the global business trends shaping our lives. it's been a traumatic past couple of months for south korea, what with the north korea's testing of a nuclear weapon and the suicide of a former president who had tried to bring the two countries closer together. but amid the gloomy political news, analysts are suggesting south korea's economy will do better than expected this year thanks in part to lessons learned -- and enacted -- since the 1997-98 asian financial crisis. >>reporter: neither foul weather nor the threat of nuclear annihilation can keep bus loads of tourists away

the kospi closing up 1.4%. in china, the market gets a lift from the country's first ipo in about a year. shares and toll road operator, sichuan expressway, more than doubled, prompting authorities to suspend the stocks several times. seeing sichuan express there. closing at 22,251. australia, closing up thanks to gains in commodity prices. over to you, bertha. >> a very busy week for economic data. nobz housing, consumer confidence and the first read on second quarter gdp. one report of note today. new home sales, which are forecast to rise just over 2% in june to an annual rate of 350,000. of course, the earnings parade matches on this week with about another 140 companies in the s&p 500 reporting results. today, we'll hear from dow component verizon before the opening bell, along with corning and honeywell. amgen reporting after the close. >> coming up on "worldwide exchange," shares in sichuan expressway, we've been talking about it, soar. is this another sign of a market bubble such. >> plus, fed chairman ben berna

productn to er two million units by 2014 stefan kracht is ecutive director of the china maet intelligence consultancy fidua. >> those w are successfully opating in china, i believe, weill see further investments. and ther than being new investments, they ardeeper investments to joint ventures that ty have already set up or thin the value chain: mponent manufacturers or suppliers. >> reporter:his positive outlook reston the governme's continued auto industry sport plus, at the operional level, maintaining low wages. he at lifan, xu yanping works ni hours a day with an hour off for nch, six days a week. holidays amount to 16 days p year. her monthly take he pay is $190. in new chinaan assembly line couple wou be hard pressed to y an apartment or own a car. >> ( translated ): ihe's an engineer or in managemt, i think we could afford e. if hhas the same salary as me, i'm afraid wcouldn't. >> reporter: the u.s. au unions may sdder at this hard reality but, for the b brands that build in china,t's their liline. although theovernment is efctively driving growth and the nsumer c

president obama says the u.s. and chinaake the lead, whether it is the global economy, climate change or dealing with nuclear threats in places like north korea or iran. clearly, the global economy tops the agenda as this u.s./china strategic economic dialogue gets under way. u.s. officials say china must understand a slow u.s. recovery and debt-weary american consumers means its chinese cannot expect exported goods to the u.s. will be a major path for chinese recovery. >> as americans save more and chinese are able to spend more, we can put growth on a more sustainable foundation, just as china has benefited from substantial investment and profitable exports, china can also be an enormous market for american goods. >> treasury secretary geithner and secretary of state hillary clinton will lead talks with vice premiere wong and state counselor dye, a top diplomatic and security expert. china is america's top creditor, holding $768 billion in treasury securitie securities. going forward, they say the goal should be a balance

and the g-8 summit in china. joining us now with some analysis is tomo kimoshita and live out of hong kong. before we get to the currency issue, let me ask you about property prices rising for the first time in seven months. is this price recovery anything to talk about it or is it artificial dow to cheap credit in china? >> well, out of the various segments of the investment that rio asset sector has shown kind of a slowing for the -- until two months ago. but it is very good to know that this secretary is reviving. it is business elements of speculation, but this is based on the real demand. because of the lower interest rates and the government stimulus package and the government policy to make it more affordable for the residents to push chas property, those middle class consumers are purchasing those housing. so i think this is going to really help the economy in the second half of this year and next year. >> so real demand is really going to happen. what follow through impact will it have on understand indus

we'll even take a look at china. is the s china really the cat's meow? or is there a speculative bubble going on? what should we do with it? you're watching the "kudlow report." maybe we had a game changer. welcome to progressive.com. you must be looking for motorcycle insurance. you're good. thanks. so is our bike insurance. all the coverage you need at a great price. hold on, cowboy. cool. i'm not done -- for less than a dollar a month, you also get 24/7 roadside assistance. right on. yeah, vroom-vroom! sounds like you ran a 500. more like a 900 v-twin. excuse me. well, you're excused. the right insurance for your ride. now, that's progressive. call or click today. we decide to turn in early. we just know. announcer: finding the moment that's right for you both can take some time. that's why cialis gives men with erectile dysfunction options: 36-hour cialis or cialis for daily use. cialis for daily use is a clinically proven low-dose tablet you take every day, so you can be ready anytime the moment is right. tell your doctor about your medical conditio

in just a moment we will turn to the u.s.-china dialogue, the economic dialogue that began this week -- we will talk to gary hufbauer, but first a look at some of what president obama has said about relations between the u.s. and china in the 21st century. >> today you looked out on the horizon of a new century them as we launch this dialogue, it is important to reflect on the questions that shape the 21st century. while growth based called by events like the current financial crisis or will we cooperate for balanced and sustainable growth bringing more people out of poverty and greater prosperity in the world. will the need for energy read competition or climate change or build partnerships to produce clean power and to protect our planet. denueve -- will nuclear-weapons spread unchecked or will we forge a new consensus to use this power for only peaceful purposes? will extremists be able to stir conflict and division or will we be able to unite on behalf of shared security. will nations and peoples the find themselves solely by t

the weakness you've seen elsewhere? >> china is a very big market for basf. nevertheless, our main markets are north america and europe. it might be difficult to live up to the expectations which we have created in 2008 when we had record earnings. >> mr. bock, what about the situation here in the u.s.? you say it's too early to tell, but are there any signs at all of stabilization or bottoming? >> our problem, frankly, is that our customers also don't know what's going to happen. we get autos on a very short notice. small quantities, more frequent ordering process and also our automotive customers i think don't have a clear picture of what's going to happen moving forward. so we have no indications that there is an imminent recovery of demand. what we can say most probably the decline has bottomed out. >> now, when it comes to your margins, mr. bock, i wonder about the development. if there's no real nand, your cost cutting will be at an end. what about the margins going forward? >> you have to keep in mind that the profitabili

the u.s. by september. economic recovery. china and the united states get together in washington for charts and talks, a relationship that could shape the 21st century. welcome. coming up later for you, it has been nearly a month since combat controlled by u.s. forces in iraq came to an end. we will see the reality. and $75 and stop the distribution deal? we will hear from a young filmmaker behind the new movie. zuma tap into a change in the mood of the poor black majority when he won the recent elections, taking over as president. despite his election promises, he is facing a challenge from his constituents. thousands of south african government workers went on strike today, crippling public services in the biggest economy. police clashed with some of the biggest workers. protesters are in during the biggest downturn since apartheid, and have run out of patience. we reports from johannesburg. >> images from another era. south africa's police force firing plastic bullets to control their own people. the police in the northern town

remarkable reforms in the sector. china's success in shifting the structure of domestic demand growth including a greater role of spending by consumers will be a huge contribution to our global challenge in bringing about a more rapid but more balanced and more sustainable global recovery. and these efforts, of course, are closely linked to our shared environmental goals. a shift towards domestic growth towards a more service-oriented economy away from the type of heavy industrial-led export-led growth of the past will be critical in moving china to a less carbon intensive and more energy intense growth. we share a special responsibility to ensure that global trade and investment remain open and rules-based. we have both committed along with others in the g20 to swear against protectionist measures and have trade between our two countries. we need at a moment of opportunity in reshaping the global economic and financial architecture. this is no less true in the areas of climate and diplomacy than it is in economics, of course

our correspondent gives an eyewitness account to the ethnic clashes in china's far west. han chinese take to the streets after uighur protests led to 150 deaths. >> president obama tells russian students they are the last generation to be born in a divided world. >> in 2009, a great power does not show strength by dominating or demonizing other countries. >> tokyo replaces moscow as the costliest place to live. we will have the full crankiness. -- full rankings. >> jackson fans gathered in los angeles for a tribute to their hero. >> it is 7:00 a.m. in washington, midday in london. in china, a scene of escalating ethnic tensions by the han chinese people and the uighur population. protesters from both communities have been on the streets. many are carrying weapons. after the death of more than 150 people in clashes on sunday. the remote region in the far west of china has seen growing instability as more han chinese migrated. hundreds of ethnic uighur women demanded the release of people arrested on sunday. many were seen directly challenging the police. they were not there

the p.d.s. series, ming series, in china which is very popular here. and so far we have sold eight million of the phones. >> reporter: the launch of china's third generation mobile phone service may present more opportunities for the company. motorola recently secured a $310 million contract with china mobile which includes infrastructure for the transition from second to third generation networks. it's not only china's mobile carriers that motorola needs to win over. kao says the company is focused on connecting with mobile phone consumers as well. >> we're going to be more focused, understanding the needs of those customers and providing the solutions to meet their needs. >> reporter: meeting customers needs is important for motorola to make a comeback. with 670 million mobile phone subscribers, consumers in china may play a crucial role in reversing motorola's worldwide decline in sales. shannon van sant, "nightly business report," beijing. >> paul: tomorrow, street critique guest hilary kramer has stocks for the recovery. she's chief market strategi

the auto sector. a key government policy is to supercharge china's west. and that's where shanghai based yang kai sees his small company's future - by providing a seamless, more efficient service between the coast and china's next growth region. >>kai: government's development policies favour chongqing (pronounced chong-ching) and sichuan. as far as i know, a quarter of the stimulus package will be spent there. and also, this is a new growing market. so its logistics industry needs strong standards. >>reporter: good highways were developed there during the boom years. now, work is underway to strengthen the weak rail system; and the government is developing the yangtze river as a key logistics artery. a decision welcomed by shipbuilders like mr. yuan >>deming: demand in the coastal region is not big nowadays. but in the yangtze region, demand is very big. >>reporter: like elsewhere in the world, china's logistics industry is suffering from a dearth in demand, while those customers still active are demanding better service and lower prices. those fit enough

the u.s./china relationship is going to be the defining feature of international politics in the next several decades. it has to go well because the consequences of it going badly are horrible for everybody. it will go well. >> so the president said it, that it would define the st centry. >> and here he was being more correct. >> gideon rose and susan shera, thank you both for joining us. >> thank you. >>> finally tonight he is no stranger to performing, though he himself may not see it quite that way, but fact is he has appeared before millions. mostly speaking, but sometimes singing. and now a well-known record label has signed him. he's none other than than pope den dict xvi. gavin records will feature him on a record called alma mater featuring the pope's singing prayers. supply the pope's vocals from previous speeches and speeches. record the accompaniments in london's abbey road studios. the studios of course of players the place that famous musicians record almost all of their albums. two of