the tpp wheninst the u.s.ack, now they may be on board and japan going a step further by trying to fill the leadership vacuum left by the u.s., so a lot of optimism that tpp is not dead, but how it will be brought forward is the question here. rishaad: thanks. more on tpp and a second. we want to get to this yuan fixing, the first week of fixing for the chinese currency and seven days. 6.878. bright, our next guest says the quickest and simplest approach would be tpp minus one. stephen olson, tell us about this. >> good morning. thank you for having me. it is a pleasure to be with you today. the country positions on the tpp are continuing to evolve, but at this point appeared to be several must likely possible pathways ford for the tpp. certainly the quickest and most simple way would be for the tpp 11, the members minus the united states. rishaad: doesn't make sense without the u.s. involved? >> from the u.s. perspective or the other countries? rishaad: either really. >> the united states has said the best wa

and the tpp.e one of the reasons why we decided to be part of tpp was because of the potential access to the american market, and if that does not happen, then one of the major motivations to be part of tpp would be removed, so that is our position. angie: all right, some gains across the region, including right there in japan. we are looking forward to business in tokyo, energy one of the biggest gainers as food and oil prices rally. we will get the latest on japan's reopening, coming up next. this is bloomberg. ♪ am stephen engle with the latest first word headlines. namedent moon jae-in has a finance minister. he faces a host of challenges, including rising household debt, youth unemployment, and weak domestic demand. softbank's masayoshi son announces the first round of capital commitments for his tech investment fund with $93 billion in the pot. backers include the saudi public investment fund, i'll go dobby, dobby --xconn -- apple abu dhabi, apple, and foxconn. producersia says oil extend ou

this is quite relevant and important that such rules have been agreed at the tpp. and this momentum, i believe, should not be lost. and against this backdrop, japan should execute firm leadership so that the fruits and results thegst these 12 -- amongst tpp 11 in hanoi. there will be the ministerial so i hope the way ahead will be definitely shown. as for the tpp 11 to get together, we have already been given understanding by the united states. >> one of the themes we have been discussing today is the u.s. engagement with asia, and one or two people have expressed concern that since the presidential election and the rejection of tpp and china is taking a much more assertive role, the one belt, one road, the aiib, the u.s. has less of a voice in asia. there is a lot of concern expressed here and elsewhere in asia that the u.s. may not be engaged in the important asian economic and security conversations as its traditional allies, japan perhaps most of all, would like to be. are you concerned about that? do you think the u.s. is disengaging from these asian conversat

baker: and what about tpp itself?there has been a lot of talk that the 11 members of the tpp without the united states might go ahead with another arrangement. there is a lot of interest in the other trade possible trade rcep woulds under our ste . you favor going ahead and building an agreement between the 11 members of tpp with the possibility of getting the u.s. involved again? have you given up completely on the idea of tpp? do you think it can be resurrected? pm abe: translator: on tpp, the 12 economies that have been engaged in intensive and finally agreed and it is of a very high level of ambition. there has been agreed very high level of high quality agreement has been reached through the agreement of the 12 economies, and this is quite relevant and important that such rules have been agreed at the tpp, and this momentum, i believe, should not be lost. and against this backdrop, japan should execute firm leadership so that the fruits and results , amongst the 12 hanoi, there will be a ministerial meeting, so i

this is quite relevant and important that such rules have been agreed at the tpp. at this momentum, i believe it should not be lost. against this backdrop, japan should execute firm leadership so that the fruits and results amongst these 12 economies -- among the tpp 11 in hanoi, there will be the ministerial meeting. i hope that the way ahead will be definitely shown at the meeting. as for the tpp 11 to get together, we have already been given standing by the knighted states. >> one of the themes we have been discussing today is u.s. engagement with asia and one or two people have expressed concern that since the election, since the presidential election and the rejection of tpp, since china has taken is much more assertive role with one belt, one road, the u.s. seems to have less of a voice in asia now and there is a lot of concern expressed here and i heard it elsewhere in asia, that the u.s. might not be as engaged in these important asian economic and security conversations as is traditional allies would like them to be. are you concerned about that? do you th

that. >> president trump prefers bilateral trade arrangements to tpp and nafta. is there a possibility there for a bilateral u.s./japan free trade agreement some time in the trump administration? >> translator: between u.s. and japan, bilateral fdas or epas we do not another all. but there are multiple option we have in mind and we have to discuss what would be the best out of all options. about multilaterals, indeed, i fully acknowledge the position of the trump administration but there is the supply chain that exists and fair and free trade rules to be made in a multilateral setting to create such fair and open trade rules for many times. repeatedly i have explained to president trump, during golf, i did not explain, but i did explain on other occasions. as for president trump, he did listen honestly to myself on that premise. >> what about tpp itself? there has ban lot een a lot of there is a lot of interest in the other trade possible trade negotiations under arsep would you favor going ahead and building an agreement between the 11 members of tpp with the po

tpp was also a key discussion point here.c ministers were also signatories on the tpp and decided to push ahead even without the u.s., but challenges remain. countries like malaysia say there could be some renegotiation because the reason why they signed up to tpp was greater access to the u.s. market. given that the u.s. is no longer part of tpp, there is reason for them to consider. >> thank you so much for that. in hanoi.min looking ahead, counting down to the beginning of trade and the latest trade data out of japan. we will bring you those numbers of the cross to bloomberg later this hour. the former u.s. ambassador to saudi arabia joins us to discuss the news from rihanna. -- riyadh. this is bloomberg. ♪ down toe are counting asia's first major market open this morning. higherfutures also following that strong lead on friday in new york. toabout .5% on the nikkei 25. this is "daybreak asia." i am betty lou in new york. i am if unmanned and hong kong. the u.s. and saudi arabia have signed deals worth hundreds of billions

tpp can do that for us.ay be that it doesn't get in the but a lot of people have been saying tpp is not dead. we need to keep working through this process to see if we can put in place a comprehensive modern trade agreement that goods, services, investments chapter and digital economy, all of these benefits. we don't want to let that go, especially small to medium-sized exports. that go, especially small to medium-sized exports. >> is there a time frame? >> it needs to happen by february next year. it becomes the 24 month window. it.re 12 months into that would not have carriage under a tpp 11, but if we are to make it happen, it needs to happen in the fall to remain within that original window. >> some say you are waiting for the congress to change its mind. that is a long way down. think there is any realistic proposition the tpp will happen inside the next 12 months. president trump made it clear that he would be withdrawing from the tpp. it was disappointing, but not unexpected. there are still gains we

part of the tpp was the say we have your back. when we step away from that, we leave more of a geopolitical vacuum. in terms of trade, actually feel that the notion that china will sort of step in and become the global hedge along in trade is overblown. the reason lies in the numbers. if you look at gross trade flows, china looks huge. but if you look at value added trade, you see that with traded for the last 25 years, the footprint in trade with asia has not changed at all, it has just moved into china. so essentially china is sucking in flow from all over the world putting it together and sending it to the rest of the world. so in regards, the value added numbers, if you look at the actual supply chains you will see that most of the major supply chains that have gone through asia, and china, are actually owned by american companies. so china may be the last stop on the supply chains and it made -- may make them appear larger in the statistics, but you will see that most of those supply chains are mostly u.s. and european owned

i will also start with trade policy as was mentioned, tpp and only had labor laws. it also has a structure that enabled guys like this to get to other markets, use their junewty, use all that we have here in terms of technology, in terms of our ip, in terms of our innovation. we have an ample supply here. how do we enable people like him to become global exporters essentially. there's actually studies that show anybody from anywhere you can become an exporter. you can become a designer. somewhere in the middle of america where factories have gone and you're much less location dependent than you were before. and run a global business essentially. now, do we want to encourage guys like that and ladies like that or do we want to protect our economy? >> so take question from the audience. i see anyone or anything. >> please raise your hands and we'll come to you. you would please say your first and last name before you ask your question, we would greatly appreciated as this session is being recorded and will be published on our website and rebroadcast on c-span at a lat

has declared withdrawal from the tpp. since we have come thus far, japan must take on a leadership role and bring the talks forward. we would like to capitalize on the result of our long years of efforts. i think the important point is to ensure a fair and free trading regime in the asia pacific region between japan and the united states. we have agreed that it is very important to create a trading framework which will enable the development of this region as a whole for free and fair trading activities so momentum should not be lost. in the upcoming tpp ministerial meeting in vietnam, i wish to seek the solidarity and unity of the 11 countries so we can come up with a clear directionality of where we want to go from this point forward. [ speaking japanese ] >> translator: 11 countries made their judgment on the assumption that the u.s. will be in tpp. we need to consider what is best and the 11 countries must be united. since the united states understands the importance of free and fair rules in the trading world, it's o

he has also been saying the tpp had good elements on markets access and gains achieved in tpp will notcan watch's full remarks on the bloomberg at life -- live go. mr. ross: formal negotiations with nafta partners -- ♪ julia: thisjulia: is bloomberg markets. i am julia chatterley. scarlet: prime scarlet fu. time for options inside with julie hyman. julie: joining us is kevin kelly. we have been talking about the vix, the decline in the vix, and the debate over the usefulness of the mix. you have brought back something we have not talked about in a while in your note to me today which is we have not had very many plus or -1% moves this year, which is another way of saying volatility has been low, but what you make of it? telling, but if you look right now, people will talk about the vix being below 10, but what they should look at his actual realized volatility. it has fallen below six. we are not seeing a volatility because we have not had 1% moves in either direction. we are supposed to have them just about 22 .5% of the time. if you look at over this year alone, 87 trading days -- it

is completely dead 01’ whether the tpp is completely dead or maybe just a little bit alive, and therethe regional economic comprehensive partnership, china's competitive to the tpp. even nafta might come up given that canada and mexico will be there as well so a lot of the agenda will be keeping a close eye and we will be interested to see what comes out of it. we will talk to use them, have a great weekend! let's quickly stay with the markets. that was the dow yesterday closing on wall street, asian market slightly higher. this is pretty much of the back of the better performance we saw overnight on wall street. a moderate recovery. if we look at europe, following suit at the moment, but let's not forget the trump slump has not fully gone away because the scandal surrounding the president's administration is still pretty much in the headlines. on thursday, the trump administration notified congress that it will start talks to renegotiate the north america free trade agreement "as soon as practicable". president trump has called the 1990s nafta deal with canada and mexico a ‘killer‘ o

so it is agreement go for the tpp. let's watch and see how it will develop.lk that deal for many years to come. let's talk now about france. france has got a great engineering tradition — but with restrictive labour laws and a conservative attitude to risk—taking, it's not a great place to start a technology company. or is it? a new generation of french tech start—ups is springing up — and in emmanuel macron — france has a new president who has been a strong advocate of technology firms. from paris, our technology correspondent rory cellan—jones reports. meet kika, a robot media centre which will go on sale in the autumn. wherever you wiring your home you can summon wherever you wiring your home you can summon it to project television on the wall, play music or make any video call. it is the kind of ambitious project you would expect to come out to look in valley. but this is paris. our start-up is central... this man worked for google before starting kika. he said france's already always had great engineering skills and now this translating into great busine

11, which is essentially tpp without the u.s.dea. and what that will do, because tpp is very high standard trade agreement. that will raise the standard of trade agreements in asia before the rcep comes in which is where china plays a role and that's a very low standard. so this is a moment to define where we want the standards in asia. and the type of leadership role that japan can play. i just hope we recognize that moment and not insist we have bilateral agreement with japan. liz: everybody talks about the china will fill the void perhaps the united states has left but they can't see everything donald trump sees. donald trump brought xi jinping to mar-a-lago, not washington, d.c. he had a much more casual dinner atmosphere. looks like he knew what he was doing because shortly thereafter there were deals struck, they will allow more of our beef there, they will sell some of our chicken, some of our viewers flipped out called it sick chicken because they had problems in the past. maybe there will be better regulation. appears sa

john: but not through tpp itself? p.m.deau: i know there's lots of discussions if there will be a tpp minus the u.s., whether there will be different clusters or clumpings or more bilaterals. we're just happy to being gauged -- to be engaged in the discussions because we know trade will benefit both canadians and our trading partners. >> coming up, justin trudeau explains why canada is so well-suited to cope with global economic transformation. p.m. trudeau: we do better with diversity than most countries in the world. and a lot of businesses are beginning to understand that the capacity to have a lot of different backgrounds coming together to solve challenging problems creates better growth, better solutions, better innovation. ♪ ♪ john: during the election, you said that you wanted to get rid of deficits. you talked about having maybe $25 billion worth of deficits before they disappeared. this year, you will run up a $20 -- $28 billion deficit alone. what has changed? p.m. trudeau: well, if you want to do the math, we c

they will join the tpp at this moment. it is fascinating, the u.s.ked away from free trade. >> when you look at financing a deal, how much difference does it make? how much do you have to look at the debt profile, not just for a specific project, but for a country? in the regionrn about china debt, for example. and recently, indications nonperforming loans will stabilize. one area china is people are concerned about that. but it is not just china. ultimately, you are providing financing. it is not just a gift, it is something you have to make sure works. how do you factor china debt into the equation? >> china has been very prudent. they have repaid all their debt to us and other international creditors. it is slowing down for two reasons. structure issues like aging and decreasing labor , and the need to change to environmentally friendly growth. they spent a lot of money after the global financial crisis. they must take care of these issues. issues,e talk about every country has issues. two economy number in the world. people are paying a lot of at

john: i want to talk to you about tpp.ou have not spoken out in favor of that, which sits idly with your general pro-free-trade stance. is that something you think could be developed without america? p.m. trudeau: we are in favor of trade deals. we are in favor of progressive trade deals. when we came to office, the canada-eu deal was in big trouble. it was basically stalled. a whole bunch of significant parties in and across europe had decided that it was a bad thing, and we had to go back to the drawing board a little bit and make it slightly more progressive, and make tweaks to it that would reassure people that there was still capacity to protect workers, protect the environment, protect labor rights, protect health benefits, those kinds of things. so, we are always looking for good trade deals for canada. i think as we move forward in what seems to be a post-tpp world, we are very much interested in continuing to grow our relationships with asia, look at how we can -- john: but not through tpp itself? p.m. trudeau: i

is pulled out of tpp? ju from the u.s. with the tpp, vietnam and the u.s.amework to maintain dialogue on issues of common interest related to economic and trade matters. we respect president trump's decision with regard to trade, and we want to make sure that we can convince him to this is a mutually beneficial relationship and americans consumers benefit and preferred the products we export to the u.s. market. >> are you saying you are confident of concluding a free trade agreement, a bilateral free trade agreement, with the u.s.? noting of course that president trump has called vietnam a trade chief the cousin of the $31 billion trade surplus with the u.s.? cheating in any kind of products we export to the united states, catfish or shrimp, and we have the books to prove it. i would like to stress that besides exporting to the united vietnam imports and buys a lot of products from the u.s., including airplanes, turbines, down to the aggro producers. importsll you that the of vietnam from the united states will increase significantly since this year as we w

how important is it tpp goes ahead? to help raise living standards in all the member countries. it is important from that window view. it has taken 5-10 years out of the life of trade negotiators. a lot of capital put into the agreement. it is not a tech, it is a separate agreement. apec, it is a separate agreement. there are still up sites. looking: what are you at when they meet? sunday, bp ministers are going to have a meeting. worst., of we expect them to come out with a communiquÉ that will either say they are pushing ahead with 11, which they can surly do. do, or something that says they might need to think about it more. this is happening at a time of slower growth. also, concerns about globalization. is this the inflection point for pec? >> we are seeing better growth. it an inflection point? a lot happened last year. ministers in lima said, this is a surprise. aboute to talk and think globalization better. some parts of countries are getting hurt by it. we have to do more around those areas. we are doing quite

that became the p4, the p4 plus 1 and that became a tpp. that's how you build this sort of comprehensive trade policy so it's not always just about where are the biggest markets, can we do deals with the biggest market. there's an element of trade strategy that's required especially now that the u.s. has pulled out of tpp it has left them with a vacuum which is not filled by the china agreement. so that's the pluralateral pillar. and then multi-laterally. we are obviously going to be in a wta rectifiation process. it will involve binding of the common external tariff of the european service schedule that the uk part of the european services schedule. it will also involve agreement on tariff rate quotas with europe so our division, our import quotas that we have, that europe has that we need to figure out what is the uk share. aggregate measure of support which is our measure of support -- production subsidies. how much of that do we claim in the wto and our share of export quotas from europe. they're not -- those are the three somewhat diff

. >> to replace the tpp? mark: yes. multilateral is out.ake strategic agreements on the military level as well to various countries. you see what happened in saudi arabia. you're going to see that happen as well and asia. an agreement to cooperate but not necessarily to aid. trump is going to be very careful in giving aid, military aid to these countries. you will see that playing out in asia. >> so the biggest risk will be? mark: some kind of big terrorist event that hits london, new york or other major cities around the world, which has a very detrimental effect on the psychology of investors. >> mark, you recently made a call in pakistan. to haveis not yet ready an emerging market status. why? mark: it is great for the pakistanis to go to the emerging market index. it is sort of a graduation. graduate to the big leagues. at the same time you are going from being a big fish in a small pond, the frontier index -- pakistan was about 8% of the frontier index. to ifll be less than 1% we are very lucky, 3% at most to the emerging market index.

and together we can roll that out and make this enabling environment for tpp more effective. is of this. you were watching president xi jinping deliver the message, how was it received? absolutely fantastic. some people said this is an historical moment when the leadership takes the mantle. i did not see any negativity and, of course, for us in the un it is important to link ‘0ne belt, 0ne road. with sustainable goals. a great day for china and the un. you're watching newsday on the bbc. still to come on the programme. meet the world's oldest skydiver — d—day veteran verdun hayes takes to the skies to smash the record at ioi—years—old. the pope was shot, the pope will live. that was the essence of the appalling news from rome this afternoon, that, as an italian television commentator put it, terrorism has come to the vatican. the man they called the butcher of lyon, klaus barbie, went on trial today in the french town where he was the gestapo chief in the second world war. winnie mandela never looked like a woman just sentenced to six years injail. the judge told mrs mandela

tpp is a conversation of the past but those issues remain. does your industry see nafta as a predicate for that conversation? chip: we do because it will probably be the first one that comes up as far as being renegotiated. yes. we can't afford to not have trade all around the world, as jack said, global trade. we need to make sure our product moves freely to whatever product is willing -- whatever country is willing to buy. of naftarenegotiation will set the precedent for other countries to see how we manage the situation and how the u.s. is looked at -- if we are a willing seller and a buyer. this verse is going to be the biggie. jason: another question here? right up front. >> bill thompson. nowis looking into tariffs of ideas for new tariffs, duties on mexican products as part of this renegotiation. is that one of the things that concerns you? if there are new tariffs on mexican products -- there are no terrorists right now on corn or wheat -- is that what you would consider to be collateral damage, maybe, a possibility? chip: there is no

did not understand, part of what the obama administration's position was, when he was talking about tppfor example, it was getting all of these nations together, so it wasn't just about an economic trade agreement, et cetera, but it was also about a political agreement, alienating and forcing china to say china, you're interested in your economy? you've got to deal with us. >> it's interesting because the sort of total failure and collapse of what tpp was going to be gives china more economic power in the region but it wasn't just president trump who said no way to tpp, it was also hillary clinton. let me get your take on what german chancellor merkel said "the times where we could completely count on others are over." it was a clear message to the united states and to president trump from one of our biggest allies in the world. here's how david fromme, a vocality kric of president trump tweeted "since 1945 the supreme strategic goal in europe and the surks ussr and then russia was the severing of the u.s.-german alliance. trump delivered." he says this is a gift to russia. >> absolutel

had signed on with the tpp. the u.s. with from that under president trump.f the main benefactors of trade especially with the tpp. it is not just trade negotiations that are going to take place with the meeting that is about to be underway. the prime minister just arriving here behind me to enter into the white house. not just trade though, of course they are going to be talking about environmental protection as the backdrop for all of this with the president's decision to will he or won't he removed himself from the paris accord. the reports earlier today suggest that he will just do that. nobody will be able to announce officially, just inside the white house at the briefing of sean spicer he said that when the president have the decision to announce he is going to announce it. as of yet there has been no official statement from the white house. there is a policy decision between the white house officials and everyone from ivanka trump to elon musk. we are now hearing them threatening to leave the white house business group of advisers. taking that questio

structure,the tpp which is the allocation of risks customize between the public sectors and the privatehich means the market participants could be subject to a less certain situation, and the financials may be easier. theently there are funds government backed up that could betteriding more financing to help projects become financially viable. haidi: the key things to come out of that is the longtime when infrastructure projects and the participation, and what it will look like in terms of tpp and private sector participation. you mentioned that you imagine a lot of this will be kick started soe's.f volleys -- we know the problem the president has had in reforming does. risk of overcapacity and inefficiency that has plagued that sector. >> to a certain extent, yes. -- ink rarely talk about think for some countries in some locations and projects, it could be better. for certain market participants, for example some of the large construction conglomerate, when they look at the risks and return looking at the operation of the infrastructure, they are looking at the construction getrtunity,

has pulled out of tpp? the u.s.an phuc: after withdrew from the tpp, vietnam and the u.s.ave restarted the trade and investment trade agreement, to maintain dialogue on issues of common interests related to economic and trade matters. respect donald trump's decisions with regard to trade and, we want to make sure we can convince him that this is a mutually beneficial relationship for both sides, and american consumers benefit and prefer the products that vietnam experts should the u.s. market. >> are you saying that you're confident of concluding a free-trade agreement, bilateral free-trade agreement with the u.s.? noting of course that president trump has called vietnam a trade cheat because of the $31 billion trade surplus with of the u.s.? nguyen xuan phuc: there is no cheating in any of the products we export to the united states, whether it be catfish or shrimp, and we have all the proofs to prove it. i would like to stress that besides affording to the united states, vietnam also imports and buys a lot of products from the u.s., including airplanes and engine turbine

>> he did it the first day, withdrawing from the tpp. to object --ay -- in jack's another region i just came back from abu dhabi and muscat last week, an eight-day trip. talk about a part of the world where they are really happy, particularly in saudi arabia and the uae, they're very happy that mr. trump is the president. they think the atmosphere has changed, that they have all the list of concerns and complaints they had about the previous administration, and they think this administration be tougher on iran. nothing i totally agree or disagree with what they have been saying, but i'm just -- there is a part of the world which is genuinely, i have found, comforted, particularly of mr., with the advent trump to office. thesn't that because -- temperament traits and has taken sides in the historical sunni-shia >> i don't think it's taking sides, i think they have taken geopolitical sides. but they have concerns -- they're not dealt with this in the nuclear agreement because there are not part of it. the nuclear agreement was silent on th

resident trump to find his trade policy last year very much in opposition, against the tpp, renegotiatingta. that is a core element of his political persona. he also realises there has to be a positive agenda. it will be a few months before the message is articulated but the message from collea g u es articulated but the message from colleagues of the g7 will be well received, that it is not sufficient to say what you are against. we know that these proceedings may well be overshadowed by these terror concerns. it comes at the tail end of his meeting with nato is well, he wa nts of his meeting with nato is well, he wants defence spending on the rise but what else is likely to be on the agenda because climate is one thing. this is his first international engagement with the united states most important allies in trading partners. i think tone and rapport is an important goal. rear furring —— reaffirming commitment to the nato alliance. establishing personal rapport with the other leaders. you have to have a working relationship. in terms of a specific issue, climate change is going to be f

has pulled out of tpp? >> after the u.s. withdrew from the tpp, vietnam and the u.s.k issues ofto maintain common interest related to economic and trade matters. we respect president trump's decision with regards to trade and we want to make sure we can convince him that this is a mutually beneficial relationship for both sides. and american consumers benefit and prefer these products that vietnam makes to the u.s. market. >> are you saying you are confident in concluding a free-trade agreement, a bilateral free trade agreement with the u.s? noting that president trump has called vietnam a trade sheet because of the trade deficit with the u.s. in anye is no cheating kind of product that we export to the united states, whether it he -- we have access to prove it. i would like to stress that besides exporting to the united states, we now import from the u.s., including airplanes, engine turbines, down to the ag maize.ucers like imports from the u.s. will increase as we will sign billion dollars -- billions of dollars in meaningful and high-value products from the united

there seems to be life in the tpp. that is the transpacific partnership, if you forgot.oming despite the withdrawal of the u.s. trade officials in the remaining countries called tpp minus one talks are expected to set the stage for an aipac trade summit in vienna.talks are also a -- in vietnam. these are also assigned that canada wants to move away from its biggest trading partner, the u.s. haidi: elliott management said to be urging a major overhaul. they own 4% of bhp. we are told the investment team are laying out playing changes to other shareholders.that includes selling off oil units in the u.s. and combining the sydney and london listed entities into one base in australia. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. rishaad: there's just a few , meetings with donald trump in the oval office. there was a wide-ranging 30 minute long interview.as you would expect, the discussion touched on breaking up america's biggest banks, looking at revisiting of last eagle, and -- glass-steagall, an

only the tpp covers all these areas. it is highly regrettable that the u.s., but even without the u.s., trade remains hugely important. betty: u.s. protectionism was one of the main topics this week, and we spoke to the world trade organization on the sidelines of that event. biggestral said the risk is one country asking -- acting alone. >> there has been an improvement. we do expect actually for 2017, numbers will be higher than 2016 . 2016 we grew by 1.3%. this year we expect to go 1.8% and 3.1% depending on the environment. we are actually going to do better, but still below the historical average of trade growth. treaty,: with the u.s. what message would you like to send the trump administration and the trigger presented of? -- the trade representative? >> trade is not easy. it is a complex equation. numeral something here, somebody else is affected somewhere else. then we have details. we know what we want to do, but we have to look at this in a careful manner. it is all connected somehow. and i think the new administration, they just took office. they

this is the tpp, the trans—pacific partnership.of office says has to go. actually, japan and other countries are saying, we want this to continue. an increasingly dominant china. these countries really wa nt dominant china. these countries really want to keep it going but i have to say, these countries must be feeling chilly because they have been put out into the trading cold area. it's very difficult, i think, difficult, ithink, to difficult, i think, to carry it on. it seems they are holding out hope that the united states will one day jump that the united states will one day jump back into the fray. should trump be impeached, maybe, but there is no sign of it. the guardian, fascinating revelations about how facebook polices what people post on the social media site. the guardian has really changed its mastered this morning to reveal these facebook secrets. they claim there are 2 billion users of facebook and they have seen more than 100 internal training manuals about how to deal with violence, terrorism, hate speech. there is

>> he did it the first day, withdrawing from the tpp. to object --ay -- in jack's another region i just came back from abu dhabi and muscat last week, an eight-day trip. talk about a part of the world where they are really happy, particularly in saudi arabia and the uae, they're very happy that mr. trump is the president. they think the atmosphere has changed, that they have all the list of concerns and complaints they had about the previous administration, and they think this administration be tougher on iran. nothing i totally agree or disagree with what they have been saying, but i'm just -- there is a part of the world which is genuinely, i have found, comforted, particularly of mr., with the advent trump to office. thesn't that because -- temperament traits and has taken sides in the historical sunni-shia >> i don't think it's taking sides, i think they have taken geopolitical sides. but they have concerns -- they're not dealt with this in the nuclear agreement because there are not part of it. the nuclear agreement was silent on th

the action barring the tpp withdrawal has really not been there. now, is that protectionist risk altogether eliminated or delayed until he gets his team together and they start moving on some of these things? that is -- so, our own view is that it is delayed. you could still have something that is a risk out there. at the same time as there is this protectionist risk there is a big recovery in global trade. if you look at the headlines, look at what you read, it's all about protectionism, all about the end of globalization. all about trade wars. if you look at the data, you're seeing a strong recovery which is not just a trump bump, not just commodity prices going up. it's not just china. all of these explanations have a grain of truth, that's where it causes skepticism, but a much more broader demand and investment led recovery in trade. that's a big upside risk. >> let me clarify. yes, while you are more constructive on emerging markets, specifically asian markets, fx, you're not quite positive yet. there's one caveat there, that's china why are

he canceled tpp, but other than u.s. deal that will increase trade. >> if we followed every piece of , and hattie translate that, it is really difficult. lay out an art, you your endpoint and negotiate back for it. we have the ability to create better trade deals. i think the u.s. has been free trade oriented and the rest of .he world isn't the opportunity is there. that is the trade. the data is a different story, the weaker cpi reading on friday, factory orders light, new orders in negative territory . what is your take on the recent data we have seen? and oneweek was funny way and that ppi was solid and you had a bunch of people trying breakeven inflation tips. empire,ken today on because he gets into manufacturing, it is something we follow. has reacted a little bit, which i think is right. those numbers are really volatile, and we got numbers from philly and chicago that are strong. you have to look at that in -- int to hash new orders context -- new orders were softer here. you have to take it within the context. w

three, tpp, there was every promise we could add close to 1% to u.s. gdp growth through trade. even if you believe in america first, you do need to find ways of enhancing our global growth and trade offers that great opportunity. >> right now we have increasing tensions, as we all know, between us and north korea, with the most unstable ruler that they have had, and the testing of nuclear weapons, i think as dr. cha pointed out and missile capability is dramatically escalated. at the same time, we have north korean artillery in place at a degree where at least they could launch one attack that would strike seoul, city of 25 million people, as i recall, and, obviously, the key to some of this is china. and china taking some very small steps as far as coal is concerned, but they have never taken any real restraint -- steps to restrain north korean activity. so, it seems to me that we are in a probably one of the most challenging situations since the korean -- since the cuban missile crisis in some respects. certainly, not exact parallels, but maybe it rhymes a bit. dr. cha? >> i

trade is important, the president, the last work that had been done on the tpp. a lot of elements applied to mexico and canada and i applaud your efforts to take that map that you took to the president, talk about the importance of trade partners in mexico and canada, do you believe what was in the tpp can be the basis of moving forward as secretary ross and your self and the trade ambassador do what the president has requested, to renegotiate nafta? >> the principles that were included in that and intend him with the renegotiation of nafta you might see a trilateral tpp. i am suggesting the principles you all had in that negotiation are still viable. it is a matter of fine-tuning those in a way that makes sense. i don't this administration is against free trade at all. it is concerned with fair trade. >> to that point it works both ways. in 2010, the mexican trucking issue and last year the country of origin labeling, if we play that game they can play the game with reciprocity and it becomes a real problem. we need to understand that. we stand ready to work wit

stes th car mo aut stoppg tpp. the as to immigration and sangnye who disagrees with this or that iigtionoly i don't supmacist know -- i certainly don' think th rlesheemrac rt isreside oma eported many, my people, call by some deporter-in-chief,o one bama aed to presidt white sreci, ere ia nge ofpionnmmration hopwe get cprehensive imgrion reform. init's simply morally wrong to deport 1or2 million people who have bompa of same ety and the bable ee ing to egiz tseeoendt is so iortantnd reprent who live fear, 'r gngo so get border foement, immraon enforcement, that s e deal and oo or a decadego unrtunaty not l y. host: youer on foreign commieea ory in th "walltrt jourl" about nrmion shad with the ssn reign minister and ambassor, they are sinit basisf src t it. what do you thinabt e informatn atas sred and wh mht have ruld from it and e facthe prede indeha today guest: he clearlyada stake d at bothers me is just w jaw-drpingly iomte this s.strati a wasn't eyhohthrgh pres his shootg offis ow we veagngbout good informaonh

united states in a way it is illegal or irregular but to build the economies and in the absence the tpp to make clear to reporters that china and other actors are not. and then to forge those tune that prioritize of free-market reform to tackle corruption to help those policies connect to ensure that the process does not send a message that the united states is close to. to prioritize and strengthening the pillow limitation of non-tariff barriers but to make clear modernization is designed to be beneficial. to a celebrate the growth of private-sector with the presidential level and initiative of the economic freedom initiative to show the of partners there is not the need for that of for structured investment bank not based on foreign assistance other measures to develop the production industry fusion of the range and services particularly energy for companies to become less reliant for energy needs. in that vein partner with the caribbean neighbors for alternative courses of energy to reduce their alliance on the regime. second aspect to help with economic growth is to fight corruption