some of the member nations have conflicting claims with beijing to the south china sea. ere's rising concern even among those who don't over china's increasing assertiveness in the waters. as fransiska rinatta reports, that includes indonesia which had remained neutral. >> reporter: indonesia's natuna islands are in the south china sea. chinese fishing vessels frequently operate there. local fishermen are suffering as a result. >> translator: poaching cuts our income in half. >> translator: we flee immediately if we see a chinese ship. otherwise, our boat will be capsized. >> reporter: china claims most of the south china sea as its own. that includes parts of indonesia's exclusive economic zone of the natuna islands. indonesia has been targeting poaching ships. it's damaged or sunk more than 200 vessels from various countries. >> any fish that is still swimming in our corridor is indonesian fish. anybody fishing there without permit, we can sink them anytime. >> reporter: amid growing concerns over china's activities in the sea, the indonesian government gave nhk access

the countries that dispute territory with china. the leaders vice president yet made any -- rejected beijing's south china sea claims. they're still fine-tuning their final declaration that will be released thursday. several leaders remain seriously concerned about recent developments in the south china sea and they stressed the importance of peaceful resolutions of disputes in corning with international law. the leaders also share serious concern of recent developments on the korean peninsula, that includes north korea's missile test. >>> let's now take a look at the latest in business news. u.s. markets were back in action after a long weekend and investors saw a slump in the dollar. >> i think a rate hike wasn't in the cards any time soon, that's why the dollar suffered, but interestingly, a lowered dollar also -- thatnded up boosting stocks, wall street ended slilg slightly higher with the nasdaq ending up just about half a percent. we're going to see how all of this is affecting trading here in tokyo this wednesday morning. good morning, rumi, tell us what you're seeing at the open. >> very good morning to you, i

leaders of the 10 countries and invited neighbors such as china are keen to display choke -- close ties. but the summit has been dominated by the tensions of territorial rise in the south china seabeijing came under pressure on the last day of the summit when the philippines produced surveillance photos it said showed fresh c near a disputed . many -- shoal. beijing claims that most of the sea is based on a vaguely defined dash line on chinese maps from the 1940's. the area is a key shipping lane, believed to be rich in resources. the summit ended with a victory for chinese diplomatic clout, with no mention of the country in the final statement, expressing only concern of a recent development. meanwhile, trade was also a key item on the agenda, but u.s. president barack obama expressed frustration at delays in adopting a transpacific partnership trade agreement, blaming the u.s. political season of the failure to win passage. >>'s standards in countries rise -- >> if standers in countries rise, they will be competing in who can -- instead able be competing for who is working the smartest and has the best products and the best ideas. reporter: before departure, the farewell dinne

china sea. china's state run media says the drills will end on monday. in july, thehey saw the claims most of the south china sea dismissed by an arbitration tribunal in the hague. the case was filed about it philippines. since the ruling, china has been trying t to avoid becoming isolated in the region. it's demonstrated williness to ho talks with southeas asisian naons including the philippines. ththey belve officialslsnd media coveverage of the e drill to sh people ahome e d abroad the close ties between the chinese and russian military. ththey also believeve china tem to show the united states and japan that it will not compromise in defending its interests in the south china sea. >>> president vladimir putin's united russia party appears to be cruising to victory in a lower house election. the party's expected to win more than 238 of the 450 seats in the state duma up for grabs in sunday's election. that would strengthen its hold over the house. russia's election commission says that with 62% of the ballots counted in the proportional representation segment, united russia has won more than n half

china doesn't like to say they have power because they want to tweak the united states, and look what china is doing, they are building in the south china sea a military foretruss, and we have power over china because they suck is drive, and i have the biggest bank there has my tenant and i have great relationships with china, and what i say they know is true, and they just renewed the release and i couldn't believe it, and they obviously like the building. we have tremendous power over china because they take so much -- they suck so much money out of the united states. we should get china to fix that problem, and we should use our economic power because without us china would be in serious

. >>> tensions in the south china sea dominated talks of the meeting of the association of southeast asian nations. asia pacific leaders met in laos over a range of issues of mutual concern, but they didn't find common ground on all of them. the leaders of ten asean member states and china agreed on two points. first, they'll speed up negotiations on the outline of a legally binding code of conduct in the waters. they'll also employ international rules to avoid accidental collisions between ships. leaders of the 18-nation east asia summit discussed a july ruling by an arbitration tribunal in the hague. beijing has refused to recognize the decision that rejects its claims to most of the south china sea. japan and the u.s. reiterated their stance. >> the landmark arbitration ruling in july, which is binding, helped clarify maritime rights in the region. i recognize this raises tensions, but i also look forward to discussing how we can constructively move forward together to lower tensions and promote diplomacy and regional stability. >> but the leaders failed to hold in depth discussio

the main philippine island of this. we work a deal. only the china sea state. the worst elements of the political system were bolted and then went to pressure and the south china sea but also in the east china sea. the chinese surveillance but we permitted them to be villainous. nicole: gordon chang, we are waiting for this news conference this morning is vivid for president up on a page of me page of me say page of a statement that cicadas your your expert advice as well. nicole: in the meantime, other news. donald trump and hillary clinton talking about their experience and judgment to be commander-in-chief. trump criticizing the obama administration by nbc news last night. >> under the leadership of barack obama have been reduced to rubble. they've been reduced to a point where it's embarrassing to our country. a beautiful part of getting a loan. russia wants to defeat isis as badly as we do. if we had a relationship with russia, wouldn't it be wonderful if we could work on it together and knock the out of isis. i would have it very, very good relationship with putin. he does have an 82% approval rating with the different pollsters. if he says great things a

the world stage. and when it comes to china, there's a whole series of issues on the agenda. everything from trade and investment to differences, for instance, over territorial disputes in the south china sea. take a listen to what the president says his message would be to president xi about conflicts in the south china sea. >> part of what i tried to communicate to president xi is the united states arrives at its power in part by restraining itself. and when we bind ourselves to the a bunch of international norms and rules, it's not because we have to. it's because we recognize that over the long term, building a strong international order is in our interest. and i think over the long term will be in china's interest as well. where we see them violating international rules and norms as we have seen in some cases in the south china sea or in some of their behavior when it comes to economic policy, we've been very firm. we have indicated to them that there will be consequences. but what we have tried to emphasize is if you are working within international norms, then we should be partners. there's no reason that we cannot be friendly competitors on the commercial side and important partner

don't worry, we'll get to the south china sea, turkey and, of course, donald trump later in the interview. president obama, thank you so much for joining us. >> great to see you. >> one of the centerpieces of your foreign policy has been the so-called pivot to asia, the idea of moving towards that part of the world where all of the dynamism exists. it looks as though hillary clinton and paul ryan and donald trump is against it. >> i don't think that's correct. the politics of trade have always been complicated. let me back up and say that the idea of the rebalance was not to neglect other parts of the globe in favor of asia. it was rather to recognize that for a decade we have not been paying attention to asia at a time when it was undergoing this enormous transformation, the world's most populist region, the most dynamic market and that we had to make sure that we reminded ourselves as well as the region that we're an asia-pacific power and the transpacific agreement is an historic agreement cobbled together among a very diverse set of countries. and the basic argument is simple. this is

the philippines. duterte is said to be considering a trip to china before japan. he's expected to push bilateral relations on the south china sea. an international arbitration tribunal ruled in july in favor of the philippines and rejected china's claims in the waters. the philippines says china should act accordance with the ruling but beijing says it has no intention to hold bilateral talks on it as long as manila sticks to that stance. >>> the planned relocation of tokyo's tsukiji food market continues to create controversy. now the governor says they will get a report to decontaminate the new site. koike said the latest report was insufficient. she says further study is needed to draw up a new report. koi koike's announcement follows the recent revelation that the main buildings were not filled with clean soil. this measure was advised to help ground contamination. >> translator: it's not clear who made the decision or when. it's also not clear why a different explanation was given on tokyo's website. >> koike added that her government is being put to the test and says that the relocation issue is her biggest challenge in r

the u.s. china relationship is a bit tense with both sides come into the conflict over the south china sea and other issues. annette: not surprisingly, chinese media have a different take. catherine: this comes from "the south china morning post," and they report on the government position in these things. the south china morning post is quoting unnamed foreign ministry officials, saying that the's their case snub -- that the staircase snub was all washington post fall. officials -- was all 's fault.n they offer to get a translator, and officials shut that down as well. so it really was not a snub at all. all i have to say is that the truth is out there ú >> hello, i'm john cleese and i've got a question for you. what do you believe about ecstasy? not the drug, of course, but ecstasy as in the ecstatic state, that phenomenon found in so many religious and spiritual traditions. well, in this program, we will explore the ecstatic state through the inner world of the sufis and the whirling dervishes of turkey and of the orisha priestesses of africa and brazil. so, settle back, take a deep breath

china. but, military action or the threat of military action has its place because it strengthens diplomacy. that's really the issue here. our allies in the south china sea western pacific want us to stand-up behind them and know the united states will be there as the tensions continue to rise. >> something the united states has done in the past? >> yeah, historically, the united states dominated the western pacific. that has led to the rise of tension we have now. china is considerably -- behaves antiwestern and aggressive with espiona espionage. they are trying to make territoryial claims as they want to be the most powerful at the expense of the united states. we have the role to play as to allies and we should stand-up to that role. > >> we heard president obama on a taped segment. i want to play it and get your response. listen here. >> we should want china to take on more responsibilities for its own people and for a wide range of international problems and conflicts, whether it's climate change or disaster relief or dealing with things like ebola. where we see them violating the rules and norms as we have seen in some cases in the south china sea

the two countries. the joint sea 2016 maneuvers include surface ships, submarines and other aircraft. the russian defense military didn't say exactly where the drills would be held in the south china sea. home to heated territorial disputes between china and its southeast asian neighbors. russia has been the only major country to behalf. in its demand that the u.s. and other countries stay out of such arguments. >>> a teen who jumped into a pond to save a 71-year-old man will be honored later today. that 17-year-old was in a car with his mom heading to a family dinner in palm harbor when he heard a splash just a few weeks ago. when they saw that car in the pond he told his mom to stop, jumped out and dove into the water, and swam over to the driver and helped him out of will honor that youngster tonight in a ceremony in pinellas county at fire station 65. >>> st. pete fashion week is today. an official kickoff party tonight. you need a $99 fashion week wristband to get in. >>> you can buy tickets to "wicked" today. >> the show includes the hit songs "for good" and "popular." ? popular? ? you're going to be popular? >> the show will be at the straz center from february 1st through

similar chinese fleet was seen around the spratley islands right before beijing began building islands there. china has been locked in disputes over parts of the south china sea with the philippines and other parties. the scarborough shoal was at the center of a case brought by manual arkrk to an internional tribal that ruled ainst china in july. after a tense standoff in the shshoal in 2012, beijingasas be deploying vessels tohehe area and effectively controrolling i. this time manual ark is concerned about the presence of ships other than patrol boats. japan's top spokesman weighed in. >> translator: we are gravely concerned. these actions are a unilateral attempt to change the status quo and by going ahead with them, they are trying to establish them as fact. >> suga also called on china to refrain from actions that raise tensions. enhong kong results of legislative council elections and candidates critical are maintaining seats needed to veto important bills. three candidates that want more independence from china won seats for the first time. this the first major election since pro democracy protests in 2014. voters turnout hit its heightest level since

. >> i just want to cover, iran, iraq, the south china sea, iran-iraq and the south china sea. i have seven minutes. [laughter] let me start with syria which is the epicenter. i want to read you something that hillary clinton told me in an interview two years ago about syria. the failure to help build a credible fighting force with the originators of the protest, islamic's, secular's, the failure to do that is a big vacuum that the jihadists have filled. that was interpreted correctly as a critique of the early years of obama policymaking. is she right? did you all miss an opportunity to shape the outcome of that conflict? >> when you look back now over the past five or six years, a lot of happened that none of us were able to foresee at that time. isil was not an organization like it was today taking up a large amount of territory. at the time, when syrians took the street against a side, it was a collection of different types of group that were taking up off ashad because he was so oppressive. at the time there is also an element that transcended that. that spectrum has unfor

the korean peninsula just a couple of days ago. absolutely. we have these regional tensions with china, the south china sea.oned north korea as a diary or this calendar event? it is held every two years. it is an opportunity for the u.s. military to get its own forces, the various branches of the military, to work together and work off the same page. instead of inviting other nations or partners -- rishaad: a couple of technical issues there. we do apologize for that connection. up next, a tough time for wealth aregers, how banks rebalancing their strategy. this is bloomberg. ♪ rishaad: let's get to the business flash headlines. the world bank says its current president is the only candidate for its next elections. will be interviewed ahead of the decision at its annual meeting next month. by thee was put forth obama administration and is widely acted to win. the world banks top job has always been held by an american. inting office space singapore is getting cheaper. fell by 7% in the first half of this year to $775 a square meter. hong kong went close to four times that and still rising. the biggest gains

the summit is significant. in july, an international arbitration tribunal turned down china's territorial claim over the south china seathe case was brought by the philippines. some of the g20 members, including japan, have supported the decision. china also has tensions with south korea. seoul has decided to introduce an american missile defense system. they say it's to defend against north korean attacks, but china worries the radar system will be used to spy on its activities. last week, the chinese foreign minister wang yi visited japan for the first time as foreign minister. he met with his counterparts from japan and south korea. >> translator: we've agreed to strengthen cooperation and make sure the g20 summit will be a success. we've also agreed to pour energy to boosting the global economy through the joint efforts. >> so, what specific measures will china take to ensure that success? >> chinese officials are emphasizing that the g20 summit is a forum for discussing the economy. they don't want any of these other issues to be brought up at the talks. this expert agrees. >> if you want to change gear, talk abou

the afghan and east asia summit in laos, mr. obama said an international ruling found no basis for china's claims in the south china sea was binding, and dismissed criticism by what some of the described as a less than warm reception in the region. reporter: first there was carpetgate. president obama trip to china took an awkward turn when aging literally failed to rollout -- beijing literally failed to roll out the red carpet for him. then there was this. reporter: philippine president duterte using offensive language to describe the american leader when he was asked what he would do if president obama raised the issue of human rights with him. have diplomatic gaffes overshadowed much of the message he was trying to deliver to asia, but the president brushed them off. i don't takema: these comments personally because it seems like this is a phrase used repeatedly, including directed at the pope and others. just a it seems to be habit, a way of speaking for him. reporter: president obama also repeated his concerns over the south china sea, saying that the rule of law in international waters must be maintained. this was president

the united states. he's also likely to stress that north korea will continue its missile and nuclear programs. >>> china and russia are putting on a show of strength in the south china sea, staging joint naval exercises for the first time in the contested waters. they'll include missile destroyers, subma rooens, patrol aircraft. they've practice seizing an island from enemy forces and take part in anti-submarine exercises and live-fire drills. a chinese spokesperson said the exercises were the most realistic war games the countries had ever staged. the drills could heighten tensions with the united states, japan and other countries. washington and tokyo have been pressing beijing to accept a ruling by an international tribunal. the court dismissed beijing's claim to most of the south china sea. moving on to business news. asian shares saw steep declines on monday. for details and other headlines, gene otani joins us from our business desk. >> tokyo stocks tumbled, following sharp declines on wall street on friday. the u.s. central banks shouldn't wait too long to raise rates, we have more from the tokyo stock exchange. >> it wasn't just a possible earlier-than-expected

there are other issues like the south china sea. uling by the hague, and of course the rising threat of zika. all these issues are expected to be on obama's agenda while in laos for the asean summit. rishaad: this is the last set of obama will beat attending, but the first four the philippine president. are we expecting fireworks? haslinda: sparks maybe, fireworks i'm not sure. a debut of sorts. thes inexperienced medically. we will keep an eye on how he navigates this first meeting with world leaders. some say he is unpredictable and blunt. talks will take place amid global criticism of his deadly war on illegal drugs, 800 people have already been killed in police operations since he was sworn in. set to meet obama and they will discuss human rights, the south china sea. he has made clear that obama must first listen to him before raising concerns. stay tuned. we have to see what happens. rishaad: thank you a lot for that. reserve bank of australia governor with a final policy meeting on tuesday. no change when it comes to rates. th

china. the u.s. has been doing quite a bit with regard to singling out china with its activities in the south china searecently had the icj ruling, which went against china. i think the u.s. largely views that as a victory, but has been keen not to suggest it is somehow trying to push the advantage coming out of that ruling with china. my own view is that the chinese were effective at the laos summit, in terms of showing solidarity, and painting the u.s. and japan as the odd man out. mind, wewith that in have the south china sea being the big issue, not even mentioning china. is a row between all of these countries. these are simmering tensions. some have likened it to a slow burning fuse. what is the endgame? as a possible there could be a war over this part of the world? i think the prospect of a war is pretty unlikely. in terms of the game plan, i think the chinese have been very clear in signaling their president since the arrived in office, which is that china is a maritime power and has maritime interests. they have interests abroad to protect in ways they haven't for a very long time. the messag

right now, wolf, are in a very delicate position because of their geographic position along the south china sea there. we know publicly that china is making moves with the philippines to try to work something out. we do not want to lose the alliance that the united states of america has with the people of the government of the philippines. very important alliance. it goes back nearly 100 years. >> one more question. yesterday, donald trump said, if he had been president, and the chinese government treated him upon his arrival in china for the g-20 summit the way they treated president obama, not providing the proper stairs, not the proper red carpet, he would have told the pilot, take off and go back home. this is no way for an american president to be treated. was donald trump right in that kind of analogy? >> yeah. i think he is. this is embarrassing for the united states of america. have some respect, have some respect for the office of the president of the united states of america, particularly a president who has had 7 1/2 years as the president. he is on probably his last trip to the far

during the day the president pushed a message as we report, china because of the military build-up in the south china sea. >> reporter: the president focusing on business and trade issues as he continues his visit to laos, the first by a sitting president. he spoke about the importance of free trade and acknowledging there is plenty of resistance to deals like the tpp -- transpacific partnership. >> then they're not going to be competing with the for who can pay workers the least or put them in the most unsafe conditions, instead they will compete for who is working smartest. >> reporter: still, the president believes that ttp will win approval from lawmakers, blaming the election season for the gridlock in congress. >> i believe we'll get it done but it is going to be harder, nothing is easy and in the u.s. are pushing back against a growing militarization of the south china sea. at aet mooing of the east asian countries the phillipines released photos of chin niece military vessels in a disputed area, violation of international law. it is to announce that we're aware of any and all movements in the are

president obama met with southeast asian leaders in laos to discuss the highly contentious issue of the south china sea dispute.china refuses to acknowledge a decision made earlier this summer by an international tribunal, dismissing its claim to almost all of the south china sea. "i recognize is tensions, but i also look forward to discussing how we can constructively move forward together to lower tensions and promote diplomacy and regional stability." he pointed out that he has visited southeast asia more than any other u-s president. this was president obama's eighth meeting with a second baby in miami has been born affected by the zika virus.it was just last month the doctors introduced the first baby born in affected by the centers for disease control and prevention reports at least 16 infants have been born in this country with zika- related birth that delta outage last month is going to cost the airline a big chunk of change... around 150-million dollars.the problem only lasted around five hours, but it forced delta to cancel around 23- hundred flights over the course of three days. part of the

south korea just after 3:00 in the afternoon. many thanks to you. >>> china and russia are set to hold joint naval drills in the south china sea. saying that the exercises are not aimed at any country, but they could aggravate tensions with vietnam, the philippines, and taiwan. each of those nations with competing claims over territory claimed by china. an arbitration court in the hague ruled this year that china does not have historic rights to the south china sea. beijing has rejected that ruling. >>> air strikes killed dozens of people in syria over the weekend. how this affects a u.s. and russia backed cease-fire. that's coming up. >>> plus, terror plots caught in time this week. france on edge about another terror attack. what the prime minister is saying about threats facing france as "newsroom" continues. what powers the digital world? communication. like centurylink's broadband network that gives 35,000 fans a cutting edge game experience. or the network that keeps a leading hotel chain's guests connected at work, and at play. or the it platform that powers millions of ecards every day for one of the largest greeting car

how do you in general see the south china sea? james clapper: the chinese has embarked on a very ambitious campaign in the south china sea to erect military facilities, runways, hangers and other that sticksipment out their claim. i don't know why there is not more of an outcome by environmentalists because of the tremendous damage they are doing to the environment in the .outh china she -- sea i think it did take the chinese back. i do not think they expected it to be as far-reaching as it was. chinese rebuttal and their excitement and claims. , quitecial thing to me frankly, i in getting out of my lane here a little bit, but i think it is to the extent that there is consensus among countries and that they are willing to speak in a single voice to push back. it would have a great impact on the chinese. talkednese have themselves into believing that this is a legitimate plane upon their part. that is why it is important that the u.s. continue what we have been doing, which is to reaffirm withom of navigation maritime and air. david

but the sum knit china may well not on the official agenda at the meetings >> the chinese have scrubbed the agenda of anything controversial. south china sea, cyber, north carolina, you name it. so what i think the president is going to do is talk about the issue and on the sidelines of the event. >> reporter: but talk has yielded precious little when it comes to china. despite a un ruling that it is unlawful, the chinese has continued to expand claims in the south china sea. what began as the construction grown to include the contested scarborough shoals. >> an exchange about areas where we have significant issues. issues like human lives, cyber and maritime issues. >> reporter: that was the president back in march and little has changed since. experts say his tone won't change much in the g-20 but a newly forged relationship between the u.s. and india will give washington the upper hand long after they have left about this and new dehli and washington will work very closely on the south china sea. >> this trip is really bringing together a number of the president's top priorities for the last seven and a half ye years. >> reporter: prior

deter north koreans' provocations, we're going to have to intensify our military presence in the south china sea expand on our missile defense in the region to protect ourselves and our allies. these are all steps china does not want to see. and i think it's really the only leverage we have with china. if they understand, it's going to mean that america doubles down on our increase in our military investment in the area, because we need to protect ourselves. that may, and, be again, it may -- stimulate china to do what it -pshould in terms of sanctionin north korean behavior. >> of course, again, reminding our audience, you're a member of the house intelligence committee, which is why i wanted to ask you about some of donald trump's most recent comments. he was asked about the u.s. intelligence investigations into the russian hacks during an interview that took place with larry king that actually later on russian-sponsored television. here's some of what he said. >> u.s. intelligence and law enforcement agencies reportedly investigating whether russia wanted to disrupt the 2016 election. what do

i ask marty dempsey about the south china sea we have these things called freedom of navigation operationsinese are trying to assert themselves in the south china sea and the united states doesn't want to allow them to stake a claim or expand their sphere of influence beyond what is necessary. how do you do that without provoking a war. host: several callers want to chat with you. darrell in idaho is next. go ahead. be too you don't want to provocative. when are we going to stop being provocative and just let other people be alone? we have knocked over some 50 countries since world war ii. of it.lly i'm tired we are being the world's bully. the only reason we have any problems with anybody is because we are a bully. host: i might point you to ending endless war. one of the stories in this edition. i will let gideon rose tell you about it. guest: one of the things we do that i'm really proud of it is we try to give our readers a full range of serious opinions by serious people so they can make up their own minds. you might say the interview with marty dempsey and the piece by a kind tray us

the u-s had criticized china for hacking and human rights, and has expressed concern over its growing military expansion in the south china sea. pope francis holds a prayer vigil for mother teresa at the vatican. 19 years after her death, mother teresa tomorrow. the event is expected to be attended by tens of thousands of people. mother teresa is known for her work caring for the poor and destitute in india. the pope praised the work of volunteers, and said that ignoring those suffering hunger, sickness or exploitation is a "modern sin, a sin of today." this year marks 15 years since the tragic events that took place on 9-11. and today gathered in tempe showing their support for those who lost their lives on that day, and to those fighting for our country. fox 10's courtney this was the 4th annual 9-11 heroes run. 50 runs across the country will be going on during the next couple of weeks all benefiting the travis manion foundation. up next -- events being held all over in rememberance of actor geneil this week. how you can watch some of his classics on the big screen one last time. that was gene wilder singing "pure imaginat

would be, not in the headlines every day, but maybe the most dangerous spot in the world is the east china sea or south china sea, where i don't know how many times the japanese have scrambled aircraft the last year, i think it is close to 100 times. a miscalculation there, where we have at least 2-3 treaty allies, thinking of the philippines and japan, could confront the president with a very difficult situation. mr. sesno: let's move to your questions. i think we have a couple of microphone runners. where are they? if you have a question, there is one in the front row. let's start here. if you could stand and just ask your question. go ahead. >> question for you. we've heard a lot of chatter in the press about the russian hackers wanting to interview the -- interfere with the election. how seriously do you take it? what kind of message are they trying to send? mr. clement: that is the million-dollar question. it is one that i don't talk about publicly because there is an ongoing investigation. what i will say, i think clearly the russians have taken advantage of disclosures became that that came -- d

china. the recent tensions have boiled even prompting talks of possible war. here is the situation. china claims more than 80% of the south china seaiescade ago, started making formal claims under new do in roles -- you and ..n. rules china got the big attention, they started building islands, and runways. the philippines won a case in july 2016. china's reaction, the award is null andyd -- no and void. washington endorsed the ruling. beijing said it had no intentions of blocking traffic protecting its territory. the u.s. does not take a formal sovereignty, but confined to are ships and aircraft. here's the argument. there is one big incentive for countries like china and china to stay friendly. trade. how quickly china has built positions and how nervous i is making everyone, some analysts say there is a significant risk of armed conflict, perhaps even as a result of those calculation or mistakes. greater resolve maybe greater risk to the u.s. and the region. about you can read more the south china sea and see all the quick takes on the bloomberg. that is your global business report. had to bloomberg.com for more stories. scarlet:

the g-20 summit. they are also abiding by a recent ruling on south china's territorial claims in the south china sea.ketigns the is cooling as the economy reaches full employment. lastlls climbed by 151,000 month, less than forecast. analysts were divided on whether it is makes the fed rate hike in september more or less likely. the uk's biggest is this lobby says there is still uncertainty for the economy, following the country's decision to leave the european union. the commissioner of british industry says it expects to see some deterioration in growth. the cost assessment comes as debates continue on how brexit might affect the u.k. economy. the manufacturing index has recovered. russian president vladimir putin sat down with bloomberg's editor-in-chief for an exclusive interview. challenged putin on his statement two years ago that crude fell below $80 -- that if crude fell below $80 a barrel, there will be a collapse in production. he asked whether his thinking had changed on production at all now that crude is still below $50. putin: if i said that the oil glut would end, then i was mistaken.

laughter meanwhile, the u-s against growing chinese militarization in the south china sea... at a meeting of east asian countries here, the philippines released surveillance photos of what it says are chinese military vessels in a disputed area - a violation of international law. albela says: " it is simply to announce that we are aware of any and all movements in the area. reporter: how concerned are you about the movements? enough to announce it." on-cam tag president obama recently warned china there will be consequences if it continues its military buildup in the area... the u-s on a diplomatic solution to the standoff. in vientiane, kevin corke, fox news in an age where food safety and public health concerns are at an all time high -- there are plenty of options out there for people. but researchers are saying a diet many people need to follow is just becoming a trend for others. coming up -- the food diet that has more than tripled in the u-s within the last plus -- we checked out the four- hundred million dollar industry that's delivering meals, right to your door. find

the problems inside china right now which include a very difficult economy. kli china has a real problem there. >> they have warned there would be consequences if it doesn't stand down on the expansion to the south china seaat what point does it have to be backed up? is it something that would come into discussions since you were talking about an economic kind of session? >> we'll find out maybe in a couple of days. the government reported seeing barges which china seized in 2012. those barges are probably a prelude to reclamation which would make aggression. in march he warned there would be serious consequences if china started reclamation. we'll have a real live test of u.s. tied perhaps within a week. >> all right. and then this side meeting that could be taking place today, china time between president obama and putin, might it be that the topic of conversation would be about syria? >> well, syria is certainly going to be on the agenagenda. clearly it is something that would involve the united states. it will be across the board in terms of a problematic relationship in the last couple of years. >> okay. and a couple of things president obama could be talking about as it pertains to turkey and presid

the political trust with china. the four highest ranking members of the chinese leadership have all held talks with him during his visit. china claims sovereignty over much of the south china sea. a tribunal in the hague rejected china's claims. the u.s. and japan are urging china to accept the ruling. >>> a cease-fire appears to be holding in syria more than a full day after it went into effect. but there are no signs of aid supplies reaching the much-needed areas. that was the key in the deal reached by u.s. and russia. 28 agency trucks are now stuck in an area controlled by bashar al assad's forces. they're waiting to enter aleppo to deliver supplies. turkish media says officials are only allowing u.n. deliveries. they also say the r roads aren' safe. in aleppo, there's been a pause in the relentless bombing. no major clashesere repororted between oppositioion forces. but russian military officials have already accused members of the opposition off violalating truce. >> translator: since the cease-fire came into forcece, w registered 26 cases of shelling directed at residential districts and governmental army positions. >> a group monitoring syria's civil war has released u

the introduction. but, listen, china is more frustrated with the united states than they are with the north koreans. the china has developed regional strategy that dominates the western pacific and the south china sea asia at large there was a time when we didn't know where china was going. we know where china is going now. the obstacle for that domination in the pacific is the united states. they are not going to do anything that will support the united states on an issue like north korea. the second thing is and we have only done this once during the bush administration is to go after every possible source of personal wealth this regime has. and go after that with the international community. that would get their attention. i don't believe any other kind of sanction would. >> well, let me ask this question. china, i wouldn't think, would approve of this nuclear test, would it? >> they are frustrated that north korea continues to do this. but, at the same time, they're not going to stop it. and the reason is simple. they certainly would like north korea to behave differently. at the same time they are not going to totally control them. what china wants more than anything else is stability on that

global citizen, while fraying serves in the region because of its unlawful territorial grab in the south china sea. wet and warm weather greeted the president as he made his way here. not only the first sitting president to come here, but also the first to directly address the people of laos. he'll talk not just about the need for improved economic ties but unexploded ordnance, which has been a problem since the vietnam war. doug? >> kevin corke traveling with the president. thank you, kevin. >>> north korea made a splash of its own during the asian summit. the communist regime fired three more missiles into the ocean near japan, and its latest display of petulance. benjamin hall has that story. >> reporter: kim jong-un is at it again. today he successfully test fired three medium range missiles, sending them 620 miles towards japan. where they landed less than 200 miles off the coast. about 660 miles in the other direction, president obama was meeting world leaders at the g-20 summit in china, meaning the summit could have been within range. the rogue country has carried out ten such tests this y

are going to come out even worse our adversaries around the world russia and the baltic republic china and the south china seaand north korea. if you have something you want to dance against united states the period between now and january the 20th is the best time to do it. lou: and the alliance, the burgeoning alliance between russia and china and particularly on display now in the south china sea creates a real quandary or u.s. foreign policy and certainly for our president who is confused about the exercise of power and the advanced than the u.s. interest or in the defense of u.s. interests. >> exactly and that is where i think trump speech a few weeks ago about how he would rebuild the military after the savage would you cut to the obama gears is so important more ships at sea, more planes for the air force more troop strength for the army and marines because we don't have that capability our diplomacy will be even more prone to failure than it is already. lou: i think you would agree that it is fair to say the republicans bear some considerable responsibility as well because they went along with sequest

what about the foreign policy that is china, what they're doing in the south china sea? e overarching big risk? saw donald trump being elected president, which is possible, the likes of china and russia will see that as an opportunity. what you see with china is interesting. with the philippines, they are deliberately trying to lure the president away from the office of the united states. the question will be -- and you are going to see china, regardless of who is president, expanding its reach more and more to the eastern south china sea. the question is -- who will actually stand up to them? by the time they have built these artificial islands, it might be too late. francine: this goes back to the trump presidency. is it now 50/50 in your eyes? marketsems to be -- the largely are ignoring the implications of a trump presidency because they do not think it will happen. guy: i think the markets are seeing the other two outcomes. if it goes to the leadership, and two, if trump does get in, a, frustrated by the power in the u.s., and secondly that his bark is worse than his

the event. >> reporter: but talking has yielded precious little when it comes to china. despite a u.n. ruling that his activities were unlawful, the chinese have continued to expand claims in the disputed south china sea. with what became as the construction of artificial islands in the spratly chain have now grown to include the contested scarborough shoal. >> we'll have a discussion about areas where we have certain differences, cyber, and maritime issues. >> reporter: that was the president back in march and little has changed since. experts say his tone won't change much here at the g-20, but they do believe a newly forged relationship between the u.s. and india may give washington the upper hand, long after the president has left office. >> the chinese are an plek tick about this, and this is a indication that they're going to work very closely on the south china sea. >> we see this trip as really bringing together a number of the president's top priorities really for the last 7 1/2 years. >> reporter: priorities including the ongoing fight against chinese cyberintrusions. the leaders of both countries agreed to avoid economic cyberespionage in september of last year. the president says those cri

the gap, come to conclusion on those couple of issues. >> sreenivasan: meeting with china's president xi, mister obama said he urged him to honor an international treaty for resolving maritime disputes in the south china sea...where china has been expanding its military presence. xi said china is determined to resolve the disputes peacefully and asked the u-s to play a, quote, "constructive role." obama also met for the first time with britain's new prime minister, theresa may. while he stood by his opposition to the british vote to exit the european union, she said there will be no second referendum or turning back. pope francis today declared mother teresa a saint of the roman catholic church. addressing 120,000 people in st. peter's square, francis said the albanian nun who founded the" missionaries of charity" order in 1950 was a "dispenser of divine mercy." francis said she shamed world leaders, in his words, "for the crimes of poverty they themselves created." saint teresa, who died in 1997, at the age of 87, was awarded the nobel peace prize for her lifetime of work caring for the sick and unwanted in the slums of the indian city of calcutta. but she was not without her critics. for more on her leg

the region as is planned in south korea. >>> the two powers are also cooperating in the south china sea where they're putting on a show of strength. they're staging their annual joint naval exercises for the first time in the contested sea, most of which china claims as its own. china's state-run media says the drills will last eight days and will include missile destroyers, submarines, patrol aircraft, helicopters and amphibious vessels. participants will practice seizing an island from enemy forces. and they will take part in anti-submarine exercises and live fire drills. a chinese spokesperson said the exercises were the most realistic war games the countries had ever staged. the drills could heighten tension this is southeast asian countries that have conflicting claims in the sea, as well as the united states and japan. washington and tokyo have been pressing beijing to accept a july ruling by an international arbitration tribunal. it dismissed beijing's claim to most of the sea. >>> a nationwide cease-fire in syria that came into effect on monday evening appears to have dampened some of the ongoing fighting, but many are wa