u.s.-china summit. why the meeting tomorrow between these two superpowers means so much for american business. but first, let's look at how the international markets closed today. >>> we begin an earnings surprise. revenues came in better than expected thanks to telecom and other mobile gear. more data means more business for investors pushed the price up of the stock more than 17% to $19.50. disappointing earnings from ann inc. profits plunged 27%, saying cold weather hurt spring sales. it cut its revenue outlook for the year, but says the company is on track for higher profitability. investors were encouraged by that forecast and shares gained 1.5%. >>> a confusing day for investors in soda stream. the stock surged on the report that it's in talks to sell the company to pepsi. but pepsi's ceo told cnbc today the report was untrue. by the close, the home soda maker was up more than 2.5% to $71 and change on heavy volume. >>> four industries which makes those iconic rvs and buses reported 6% increase in

u.s. constant accusations against china now the u.s. can't accuse china of cyber attacks without being accused of hypocrisy so there is an interesting dynamic behind all this the u.s. one and china where the semi autonomy is a government of hong kong to give them the man who had leaked u.s. secrets but one of those secrets is about activities of the u.s. government against china so it's possible that china's dilemma was to either think edward snowden or to arrest hong kong says they've done everything in accordance with their own laws now as far as russia edward snowden has been in transit in russia and russian authorities say they have no legal authority to arrest him but u.s. politicians and pundits on television use what seems like a cold war rhetoric to present. the enemies that snowden is helping and the imagination of some german is running. wild as they joke about how edward snowden is being briefed by the russian president in one form of social also one of the new shell said russia and china are going to use this to embarrass the

u.s. to china. and if that is going through a national security process now, voluntarily by the companies, and i think china wants to see, you know, a very clear statement that the u.s. will not discriminate against china on investm >> rose: so it will be in the interest of the relationship that this deal does not run into the kind of roadblock it did when the on swrekt was an oil company. >> oh, yeah. i mean if this deal doesn't get through then i think it's we're in a really bad state. >> it would be goods for president obama to say that an make that clear. this is good for america, good for chinese people, good for cooperation and really it's hard to think of a plausible objection. >> and frankly the white house has been timid on this. so it would be good to hear something. >> rose: are they making more and more investments in the united states, the chinese? >> absolutely. and there's a wave of money waiting to come if the opportunity is there. i think the u.s. is an excellent investment destinat

u.s. and china there's still a lot of mistrust from the chinese side given the fact that u.s. has embarked on this so-called asia pivot militarily and on the other side the u.s. still very concerned about suppose it attacks coming from china although hackers that i talked to say that many of these attacks could be coming from other countries yeah hackers source them to china it's of very difficult method in tracking this back to state sponsored activism ok we're running on time or money but i want to get to a couple more things really quickly you said that cyber threats could penetrate possibly nuclear you know they could become a nuclear issue i could you explain that to me that's right well the u.s. military has expressed a lot of concern about cyber attacks and has expressed its willingness to attack other countries or other actors if we are attacked through the internet or other technological means and then right now the united states is investing a lot of money in that we've already seen that infrastructure has been damaged in iran and from cyber security experts they are

u.s. and china. oh margaret this is not your typical state visit like we mentioned they're getting together at the remote sunnylands retreat in the middle of the southern california desert this has been home to many presidential visits and a lot of deals happen here in this remote area but what's especially significant about this u.s. china mean is that in years past bilateral trade and economic issues may have been a top priority it seems like this year it's cyber security in hacking that is taking center stage and this is a something that may not have been talked about during u.s. and china diplomatic meetings even five years ago so it's definitely a change in the relation that we're having here between these two superpowers ok all right ramon i know you covered in your own report that the united states has been especially critical of china's hacking was that washington accusing beijing of how the u.s. is militarizing cyber space what happened sure well the pentagon says that china is trying to mod

u.s. and china -- wage difference between the u.s. and china? guest: it is huge. the data is not reliable, but we should also look at purchasing power. it is still a huge gap. the chinese middle class in shanghai and beijing -- i think the income reduced significantly. host: and the cost of living in china? guest: it is relatively low, but at the same time property prices have increased. host: meridian, mississippi, debra. republican line. caller: i was thinking god help us. our country will only suffer. donald or mitt romney meeting with this man, america hating socialist. caller: keno. -- host: keno. sorry about that. whatr: i want to offer should be put on the agenda -- making an interesting life for people in the country, so that some people want to work in agriculture instead of the learner of the city and the economic gadgets. ,e want france to work with us too, so that they can be the leader in europe. the other item is to help citizens understand how much governments are putting into making guns and producing butter. book called the 17 solutions. askant ci

but china has a quarter of the u.s. debt just as you can see but they bought a lot of other things as well we've got them or oil company is a company is real estate they love them or their hotels they love their pork marine are actually there but they're actually the biggest consumer of pork in the world and i'm surprised i mean look yes there is i love rapid expansion and actually investment. into a lot of sectors there yeah indeed freemont so as i say more than ten billion dollars so that spending their money they've got a lot of disposable income to do that with but as you say there's a big deal going on at the moment i wanted to mention it's worth four point seven billion dollars and it's the purchase of smithfield by china's largest meat producers shoe and high international it goes to be the biggest deal in the history of china so they love the port that much and also they want to tap into the base industry as well so that's going to be on the agenda this week is going to be poked and it's going to be a base all r

u.s./china relationship but about reform in china. because the -- you know, reform had stalled for the last ten years in china and they very much need a new economic model. their current model is running out of steam and the premier had made a -- i thought a very good speech on may 13, which was published in the people's daily which really spoke to the issue that i thought was very important, and that is that that economy is so big and some so complex it is no longer effective to be relying on this combination of top-down administrative measures and markets. and that they need to speed up the reforms and place more emphasis on the private sector and on markets. and, you know, i was complimenting the premier on his speech and the number of early steps they'd taken. and, again, my view is that the chinese-- beginning with xi jinping-- understand the need for reform. so i think the debate is going to be the scope, the scale, the timing and the fact that there are strong vested interests that will oppose reform. so when i look at things w

fugitive despite a valid arrest warrant, and that decision unquestionably has a negative impact on the u.s., chinaationship. >> we were upping the u government -- asking the u.s. government for further information in the case, there was no legal basis to stop mr. snowden. this is a good example to illustrate one country's persistence -- >> where in the world is edward snowden, the nsa leaker and the number of countries that are not helping the u.s. is continuing to rise. president obama was pressed on this, hunting down snowden today. here's what he said. >> we are following all of the appropriate legal channels, and working with various other countries to make sure rule of law is observed. beyond that, i'll refer to the justice department that's been actively involved in the case. >> with that, let's bring in our panel, jason riley, editorial member of "the wall street journal." juan williams, columnist with the hill, and syndicated columnist, charles krauthammer. what does this whole thing say? >> at this point, bret, i am less worried about the leaks than the fact that the obama administration

and the more than 40 years since then, the china u.s. tionship has gone through things and made a historical progress. making our two people and people out -- elsewhere in the world have reaped huge benefits. and at present, the china-u.s. relationship has reached a new historical starting point. our two countries have a vast convergence of shared interest, from promoting our respective economic well at home and ensuring the stability of the global economy, from addressing international and regional issues to dealing with all kinds of global challenges. on all of these issues, our two countries need to increase exchanges and cooperation. and under the new environment, we need to take a close look at how bilateral relationship, what kind of china-u.s. relationship with both want. what kind of cooperation can we both carry out for mutual benefit and how can we join together to promote peace and development in the world? these are things that not just the people in our two countries are watching closely, but the whole world is also watching

u.s. and china sometimes do, and it is not quite the u.s. union in the cold war, but recall all that got done between reagan and mikhail gorbachev in the final years of the existence, but it is possible that out of the good frank chats that white house officials believe are expected here, and nothing scripted as is the case with u.s./china summits and out0of that can come perhas some agreement on the scyber security, and the u.s. has asked china to meet with it in a regular series of conferences to discuss hacking, and how it can be contained. you know, many people like perhaps mike rogers are very skeptical it will produce anything as one official put it to me, it is sort of like elliott ness going to al capone and saying, can we contain the production of alcohol. it is not going to go anywhere. but it also does not hurt to have these kinds of personal discussions that we are going to see for two days between obama and xi. >> let me ask you quickly about north korea, because it does seem that both countries have common interest there in th

u.s.-china relationship. >> reporter: republicans insist it is mr. obama who looks weak since president the of china and russia are not worried about defying him. >> we could be a lot stronger this guy is with the enemy in the know me camp, and we're letting him go. >> is administration embarrassed now you can't track him down, a cat and mouse game. >> i have been clear about actions that we've taken. and the our assessment of the fall ruscfailure of authoritiesg kong to act to a arrest. >> reporter: carney said it is a sit back in the u.s.-china relations. >> they were positive, constructiie, wideranged, and successful. >> reporter: as for russia, the obama-putin meeting last week of frosty, republican lindsey graham callednoithe snowed know case a retest of the relations, saying if for those en i snowdel on russian territory, i urge your government to apprehend him and turn him over to u.s. authorities headley. white house officials revealing they were in contact with authority in hong kong june 10, they said they got an act account aacknowledgment

u.s. to be working together with leading nations like china to establish norms for cyber space activity we want a global resilient open and secure unit if the u.s. and china fail to reach consensus on how to cooperate in cyberspace the consequence many believe could lead to a virtual cold war between the world's two largest economies and charted territory that could inevitably turn the internet into a dangerous platform where friends become foes reporting from new york marina port and i are today. well there could be n. other front opening up in the cyber conflict between the u.s. and china with for the actions of a trade war china is about to complete a deal which could become its biggest takeover of a us company s.k.t. pilbeam from our t.v. business explained to me earlier. these guys have been in serious competition for a long time now we know china is set to take the top spot by as soon as twenty twenty seven face rivals in terms of business we also know that billions is traded between these countries as well actually more than ten billion already this year marina so you follow them fo

u.s. >> to think that the world can resolve any major international issues without cooperation between china and the u.s. is a fallacy. it's not going to work. china and the united states have to, whether they like it or not, they have to deal with each other as partners. they have to collaborate with each other. >> officials in beijing believe stable relations with the u.s. are essential for china's economic growth and for securing the trust of chinese people in their leaders. this will be president xi's basic stance when he meets president obama. >> that was nhk world in beijing. and a desire for a better relationship between the leaders seems to be mutual. kirk campbell served as secretary of state during obama's first term. we spoke to him to get a u.s. perspective. >> reporter: this will be the first time a u.s. president will meet with a chinese leader in such an informal setting, away from washington and beijing. kirk campbell says it shows relations are evolving. but he says with recognition comes obligation. >> i do think we're going into a new phase and it is the significant featur

u.s. and china relations are now joined by. our from mom kong universes school of economics and a fine is mistletoe relations between the u.s. and china that haven't been easy in recent years and there's also been though this resistance coming from washington over beijing's a growing influence in the world in light of all of this what do you read into this upcoming meeting. i think the meeting is a crucial in building up the trust between the two countries you know to the chinese people they didn't get the feeling that it's always the americans are asking for more and more on the economic front so they're asking china to open up the market once you open up the market ask you to let's say buy more american treasury bonds you know so it's always the americans asking for more and more is like the absolute the more you perform the more you believe in the future so this is why does the feeding of the chinese people now to mean america and china you know these are these these two countries are like a couple you know you don't really a

u.s. on this it depends really whether it wants to take china in the direction of really . relations with the u.s. or is going to take more of a combative stance so i think this might be one of those central issues that defines the way engine being is going to take china for the next ten years and that's that this is one of those critical issues to watch it certainly is possible and hong kong certainly does have extradition treaties with the u.s. so it can be done but whether or not it's going to to happen via that wrote or perhaps even something more spectacular perhaps there will be some some type of extradition you know through other means but we'll have to see how that plays out because i think it's a harbinger of the way relations between the u.s. and china will play out from here on you know because i think this story becomes spectacular by the moment we don't we never know what he snowden is going to come up with but we'll keep watching it and obviously that's the keep getting analysis on that james cope with the other news website the colbert report live from japan b

u.s. are hacking into into china's. china secrets and systems so clearly these tense talks are boiling up and these are the talks that apparently the leaders of the u.s. and china are expected to be having right now and now u.s. president barack obama did come out and say he believes these talks so far have been very terrific he's also said that he is hoping that the chinese and u.s. military can strengthen its ties and some would say that that could be. problematic considering considering the pivot that the u.s. military has made to the asia pacific many experts believe that the u.s. is now surrounding china militarily building up militarily in china's backyard so clearly there is a lot of confrontations or issues that both of the elite these leaders need to confront but at the end of the day these two countries the two largest economies in the world need to find a way to work together because they are tied in systemically with when it comes to debt when it comes to borrowing when it comes to trade but the tense moment

u.s. government has been highly critical of china accusing it of hacking into u.s. military weapon systems and getting information from private companies here in the united states now china has denied that it is responsible for state sponsored hacking and in fact internet insiders within china have said that they have also been victims of cyber attacks which have come from the united states now the united states has been very secretive about its cyber weaponry however it has been noted that the u.s. was behind the stuck next virus which caused major damage to iran's nuclear facilities it is also known that u.s. cyber command is trying to recruit thousands of hackers in order to create cyber warfare or to protect the united states from hackers themselves and even president obama has proposed in his next defense budget nearly five billion dollars for cyber security one of the hot topics during this historic meeting which will also touch on trade and on the conflict on the korean peninsula chinese president xi is also likely to raise concerns over the u.s. military buil

u.s.-china relationship. >> the u.s. believes estsest still in russia -- edward snowden is still in russia. >>> carpoolers may be getting home earlier because of new diamond lanesoon freeway. -- lanes on a freeway. this is 880s from 237 to the 101 in san jose. they are able to -- they are open to cars with two or more passengers or vehicles who are clean air vehicles. it will shave off 15 minutes from commutes. >> people could sit for half hours. so by adding the lanes we were able torelieve the congestion -- to relieve the congestion. it widened the onand off ramps to 880. >>> back open for dinner for the first time in months. they had be closed since march when a fire caused damage. the owner say commuting support motivated them to repair and reopen the restaurant. >> most rewarding part is people reaching out and people expressing how important it is to them. >> it is booked through the first week of july. investigators believe it was caused by an electrical problem. >>> a look outside and see what the weather looks o