today we heard about china's military strength and the u.s. defense strategy. >> good morning and welcome to andcenter for strategic budgetary assessments. this morning, we will talk about a released report reinforcing the front line and defense strategies for the frontline of china. this is the first of three regional reports that that under an umbrella strategy that we released in the middle of last month called preserving the balance, you're a -- u.s. and eurasia strategy. leading the discussion this morning is thomas makin. a chance who do not in to get the umbrella strategy, i have left for at the table you can get them as you leave. thank you for coming. this is the second of four reports in a series that speak a a fiscally informed defense strategy for the united states. first at the global level, that was what we released on january 19 area then three regional strategies that can comfortably sit underneath that overall framework. this is the first of three regional reports. outook forward to mowing the remaining regions in the next coup

u.s. now a look at china as growing military power and u.s. strategy for countering its influence in asia. thomas man chen's remarks are shared who served under the george w. bush administration. >> welcome to the center for strategic and budgetary assessments. this morning we are discussing a report on ream enforcing the defense line. this is the 1st of three reports that fit under an umbrella strategy we released last month called preserving the balance. the u.s.urasia defense strategy. leading the discussion this morning is thomas mahnken. great. dr. mahnken. >> thank you for coming. as jaime says this is the second of four reports in series that seek to layout the strategy. then three regional strategies that can comfortably sit in the overall framework. this is the first of the three regional reports. we look forward to rolling out the remaining two regional reports in the upcoming weeks. this report was written by evan montgomery. it is my pleasure to stand in for evan. he is currently serving council on international affairs fellowship

theinterests of china and u.s. are too intertwined. u hehear all this tough talk t of washington, but it will be hard to produce quick results. in a lot of respects, he's right about china and the trade imbalances with other parts of the world, that the u.s. doesn't always get the right deal. as with europe and security, the problem is the way he transports this message. it is more damaging than he intends. melinda: malte lehming, coming back to the title here at america first, whether it is a threat to the world order. is it perhaps the global economic order of open orders -- borders, trade, immigration, most threatened by his actions? malte: i don't know. i think we have to give credit to the main global players besides the united states. europe, china, russia, and all the leaders seem to behave very cautious, there he responsible, waiting for real actions, not just words. not jumping too fast to a conclusion that could fuel tensions we are seeing now. melinda: thank you very much. thanks for all of you to being with us today. thanks

u.s./china deal, check this out. the deal's contents, there's a whole part of it that helps promote offshoring of u.s. jobs to china. according to trump, icksnay. there's a whole part of it that helps chinese companies buy things here and run things. there's a whole system that allows chinese companies going around our courts, go into tr e tribunal tribunals not answering to the government. these tribunals can help out a chinese company that don't like our law. trump says he doesn't like that. but they're silent on that agreement. why if you have china who's one half of the trade deficit. attributable to china in 2015, and like you're going, nafta, u.k., you're looking every place else, but i'm not going to look over here at china. trade deficit, you want to get rid of the half of it, it's sitting right next to you on the couch. you try to google u.s./china bid. what comes up? goldman sachs. they're the only wall street operation that's pushing that thing. it has to make you wonder -- it's not alternate facts, the on

policy, thee china u.s. officially recognizes one government of china and does not maintain direct diplomatic relations with the taiwanese government. during china's civil war, which saw the communist party take control of the mainland. the chinese government praised the development. is ae one china policy political foundation of the u.s. china relationship. -- ppreciate >> taiwan acknowledged the news, saying it has been in close contact with the u.s. and will continue to take a zero surprise regional pointing out stability is a vital importance to u.s. interests. thursday night marked the first time trump had spoken to the chinese president since his and occupation, a fact that had started to cause serious concerns in diplomatic circles. relations were strained after trump roca protocol to accept a congratulatory phone call from taiwan's leader following his victory, and publicly questioned the one china policy. now that the issue is officially resolved, china and the u.s. has indicated they can proceed wit

u.s.-china relationship. nt recognition of the one china policy, it would have been very difficult if not impossible for xi jinping or any chinese leader to do anything else in the u.s.-china relationship. >> woodruff: how much of a concern was it to the china that president trump stated this given what h he said during the campaign, a lot of anti-china rhetoric coming from candidate donald trump, then the phone call he had earlier on after the election with the president of taiwan, how concerned were the chinese? >> the chinese were very concerned, recognizing, acknowledging the one china policy was essential for xi jinping. it was the primary concern of the chinese leadership, and they didn't want the talk about anything else. trade and investment, north korea, the south china sea until the trump administration reaffirmed the one china policy. so in many ways the phone call removed the course of immediate crisis in the relationship and now they can talk about and work on other issues. >issues. >> woodruff: o

u.s. and china. it's been almost a month since his inauguration and analysts continue to wouldn't weather lies ahead for the world's two biggest economies. my colleleue talalked to the chf chinina economist i in hong g kd she e asked him about the trump policies he's focusing on. >> i think it's quite important to look closely, how large the u.s. fiscal stimulus could be. and generally speaking, it's going to be a positive to u.s. economic growth as well as to the global economic growth. hence it should be part for the external dmant for china. -- demand for china. we need to focus on the border tariffs towards the input of u.s. if they do charge quite harsh tax to other goods going to the u.s. that could hurt significantly the global trade and hen, the global economy. >> there's been signs that things might not go so smoothly earlier this week u.s. agency decided to impose anti-dumping duties on chinese products, for the third time in the short period that trump has been in office. some analysts say

china sea. their join statement stipulates that japan and the u.s. oppose unilateral action seeking to undermine japan's administration of the islands. china and taiwan claim them. chinese government ships have repeatedly entered japan's territorial waters around the islands. >> the u.s./japan alliance is the cornerstone of peace and stability in the pacific region. i also want to take this opportunity, mr. prime minister, to thank you and the people of japan for hosting our armed forces. >> trump had previously suggested that japan should pay more to maintain a u.s. military presence in japan. but abe says trump did not mention the issue during their meeting. >> translator: defense secretary mattis visited japan and said the japanese and american cost sharing model is an example for other nations to follow. i think that settled the issue. we were wondering whether president trump would mention the matter, but he didn't. rather, he thanked japan for the warm hospitality extended to the u.s. marine corps at the joint news conference and other occasions

u.s. or china. there will be more pressure on the chinese side in order to influence north korea to try to temper these provocations. >> janice, we look at the relationship between the united states and china, particularly under the trump presidency, pretty much at least so far only through the economic lens. certainly very tough comments and rhetoric from president trump first as a candidate and since as a president, but now we are going to see the u.s./china relationship once again in the spotlight of issues of national security, particularly when it comes to north korea. when it comes to the issue of national security, and the issue of north korea, how wide of a gap is there between china and the united states on missile tests like the one we saw this evening? >> reporter: well, the gap would certainly be narrowing. i think that was the indication of china being on the side of u.n. sanctions that fall. china always stood beside its ally even though it has been increasingly frustrated but most cer

and one thing we already see is the new administration facing is depending on where your in the u.s., china relationship both government relationship and also our economies are intertwined, that relationship looks different. so, if we go back to the cold war, by contrast a time of u.s. soviet competition things were t not easy, they were risky and fraught with danger, but they were simple in many ways. whether you're in the business of diplomacy you are largely in the business of containment. you are trying to contain sovieo political influence. if you are in commerce, you were, at times trying to limit soviet access to key technologies. you are in the containment business. if you're stationed on the gapon like my father-in-law was, your very much in the containment business. if you are in the u.s. information agency speaking of agencies that on a anymore you are the containment business. that's not where we are today. i think that's likely to endure. if you're in one part of that relationship looks very cooperative. other parts parts of the relationship it's more competitive. because of th

china. it is not exactly tracked success to its counterparts. why? >> it just comes down to one basic thing, advertisements. if you look at the u.s. rket, google and facebook are basically a duality in the online ad market. faces fierce challenges from titans in china. it has fallen behind alibaba last year in terms of the online internet ad revenue for the first time. it is basically needing to grapple with some big competitors in the space. >> the company turned to the man who previously ran divisions at microsoft. he will be talking later in this earnings call. what are we expecting? , speaking to a live investors, what they hope to hear is a firm plan on how ai will make money at baidu. ,f you look at the r&d costs they have increased substantially. basically continuing a trend of increased r&d costs. a lot of that going into headcount and technology to fuel this ai research they're trying to get into. they want to become the cornerstone of ai in china and potentially the world. it is now up to him to do that. >> indeed. it is certainly a big job to do going ahead. senior managers and others have said ai will be key for the com

the interdependencies globally and also between china and the u.s. ina needs to export more to the u.s., the u.s. looking to export lng to asia, so a trade war has no winners. we see glowing global trade in a mutually beneficial way that benefits u.s. consumers as well as china. i think that is the only way forward. rishaad: there is often this other aspect, moving from multilateralism to bilaterally some, how does that affect things? as the arrangements boost trade, we don't necessarily have fun opinion on how those arrangements should be reached. the importance is to keep growing global trade. 60% of global gdp is trade, so if we don't grow trade, then global gdp will grind to a halt, and that has no benefit to anyone. rishaad: coming up, india prepares to vote, what is at stake for prime minister narendra modi. this is bloomberg. ♪ rishaad: india's prime minister testing public opinion on his in state elections. a few have had their say, but the big one to watch is a northeastern state. rosalind chin has a look at why it matters. rosalind: it is at

the rift of the u.s. china war as a national do not see it as a high probability event. -- we do not see it as a high probability event. this is going to be the driver for investment opportunities. ,> if you look further out let's say in europe where we have had several guests this week tell us europe might even be a buy. you do not see that? >> we do not see european equities as compelling at this level, especially ahead of the eurozone election. see the rather wait to better clarity after the french elections. the geopolitical uncertainties in the eurozone will likely way john -- wage on. we also see a higher potential taber later this -- taper later this year. >> we saw the market move a bit after he learned about the letter trump sent. it is cheap compared as a sean -- to a shanghai composite. it has narrowed a bit. that discount. does it still have a little to catch up on? >> we are positive on china equity outlook. it is more driven by the positive driver from the improved profit margins prospect. given t

china is now in a better situation with the u.s., given that the president has acknowledged the one china but at the same time, we're seeing these relationships either reaffirm or take new positions, how does all that play into handling north korea? >> again, the good news is as we saw with the visit by defense secretary mattis in the region, both seoul and tokyo, we have seen a reaffirmation of america's commitment to its traditional relationships and that's welcome news both in south korea and japan. it is very important as you rightly point out, there is a lot of uncertainty on the ground because of the impeachment, the front-runner at the moment possibly to take over from the embattled president, it is a progressive politician who is already suggested his approach to north korea might involve negotiations in a more moderate approach if you would like, which might conflict quite by -- the more hard-line approach of president trump. china in this context is as it always has been, in a sense the most critical player. because china has the closest relationship. it is in a position to enfo

china has urged the u.s. stop making wrong comments on the sovereignty of disputed islands in the south china sea. the criticism comes after the u.s. secretary of defense says the u.s. would help defend two uninhabited islands in the south china sea. the commentsmade on saturday after meeting with the japanese prime minister. he also said the u.s. would use the atlantic efforts to resolve the dispute. the filipino president has canceled because after three soldiers were ambushed and killed in the country south. he admitted that a lasting peace with the maoists may not come during his term. he will continue to pursue a separate cease-fire with muslim rebels. global news. 24 hours a day. powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. betty: thank you. president trump has been blasted by both republican and democratic lawmakers over his latest comments of vladimir putin. ramy inocencio has the details. ramy: it is really disturbing. bipartisan congressman, from

china-u.s. relationship is the most important -- one of the most important bilateral relationships in the world. this year is the 45th anniversary of the shanghai communique and reopening of communication. in the past u.s.-china cooperation has been more of the expectation of the most optimistic people. history has shown that we have far more common interests than differences. cooperation is required for global stability and prosperity, but also the aspiration of the chinese-american people. five days ago president xi jinping and president trump had an important and successful conversation. the two sides affirmed the importance of the u.s.-china relations to both countries and the world. president trump clearly affirmed u.s. government's commitment to the one china policy. the important consensus has maintained the political foundation for u.s.-china relations in the international community. and also, created necessary conditions for the two countries to work together bilaterally at the regional

are we seeing a softening of u.s. china relationship? reporter: i'd say placating. ina was furious when donald trump had a phone call with taiwan's leader. taiwan from china's perspective is a renegade province, not recognized. the long-standing u.s. policy has been the one china policy -- asmally recognizing beijing the government of a single china and not having diplomatic relations with taiwan. donald trump seemed to be preaching all of that protocol. he preceded the phone call by saying yes, he will respect and honor the one china policy. that seems to be a placating of xi jinping. he sent a written letter congratulating him on the chinese new year, two weeks late. details. i think ivanka and her husband attended a chinese new year celebration at the chinese embassy in washington. all of these could be seen as signs of trump trying to, if not soften, make some peace. you want to have an awful relationship with china, even though he's been tough on china going as far to say climate change is a hoax perpetrated by china in order to hurt american business. anchor: d

china welcomed the decision. to them it meant that the u.s. trump both acknowledged that beijing and not taiwan is the seat of the chinese government. china appreciated the phone call which the white house described as cordial and lentgthy, and th foreign ministry said the one china policy is the political foundation of the china u.s. relationship. this would be a new starting point for president trump because in past and previous statements he has been calling into question america's commitment to the one china policy. even going as far as to suggest that the one china policy be used in negotiations on other matters. china long and repeatedly said that the one china policy is a nonnegotiable item and a nonstarter when it comes to discussions. and the "new york times" was reporting today that president xi jinping was giving president trump the silent treatment until he fell in line on this issue. i was talking to a couple of different analysts here today. and largely people are breathing a sigh of relief. one person told me he's cautiously opt

china. much of the u.s.ecline in manufacturing employment is due to automation and productivity improvements. even so, u.s. manufacturing output was more than $2 trillion in 2015. we make things today with fewer people and that will continue into the future. in addition it's important to note our trade deficit with china is really a trade deficit with asia and the vast network of asian supply chains into china. even if we imposed massive tariffs on china much of their production would simply shift to other asian markets such as vietnam. tariffs on china will not bring back large numbers of low value added manufacturing jobs. training our workforce for the future and reforming our tax code will grow high paying manufacturing jobs here in a truly open trade regime. protectionism will reduce them. but let me be clear, there are legitimate concerns about chinese mercantilist policies that promote domestic companies there and their industries while restricting foreign competition. a list of troubling chinese econ

u.s.-china relationship. there is also a military relationship as china continues to build on contested islands in the south china sea, the u.s. navy is also operating in that area appeared fox news has just learned that a chinese military surveillance aircraft passed within 1,000 feet of eight u.s. navy reconnaissance plane, and so having a relationship or at least talking to one another at the governmental level will probably be necessary when the two navies are operating in such close quarters. the u.s., by the way, said the pentagon sees no evidence that the incident was intentional. >> jon: [laughs] we will see. pretty hard to miss those aircraft with all their capabilities, but as you said, they don't see it as intentional. thank you very much. >> jenna: scary scene after a 10-month-old puppy falls into icy water in wisconsin. police say waldo, the burmese mastiff dog had already been in the water nearly 20 minutes before they arrived. after being pulled out of the ice, while the took a few steps before

there are more screens now than in the u.s. china is the world's most populous country. they prefer the big screen over computer. >> i can't feel the reality when i watch movies on the computer. it feels like the pictures are pasted onto the screen. in the cinema, i can enjoy the 3-d or 4-d. and i feel like the pictures are surrounding me. a city of 22 million people added about 70 new cinemas in 2015 and another 100 in 2016. big screens are coming to smaller towns and rural areas, too. the ticket seller has nothing to do. the ticket collector reclines in the back of the theater staring at his phone. they might be building cinemas, but no one is coming to see the show. there aren't many people watching movies in country towns . theoretically, a cinema should make profit from showing movies and selling tickets. but for us, we have to count a lot on renting the halls out for activities and companies for conferences. or selling drinks and popcorn just to break even. many rural movie fans have gotten used to smaller screens. china might be powering ahead to become one of the

u.s.-china trade war. he said it can't be ruled out, but countries like singapore should be prepared. u.s. and china are singapore's largest trading partners. the implications could be very significant. the minister also touched on the property market, the hot topic in singapore. what did he have to say about these curves taking place or not? you're right. property is an emotional issue for singapore. it has become an election issue. they may have been squeezed out of the market hands. the big question is whether or not singapore's property cap will be removed. the minister pointed out they will be in place for some time. he points to a man being very resilient. into the trend is going up, it remains historically low. our economy is still stable and growing. i think demand is still healthy, and our assessment is that these will remain for some time. we have not made any move. to be sure, the cooling measures have helped to achieve a soft landing in the property market. singapore home prices have fallen over the past three years. still, the minister says housing transactions continue to

u.s.-china trade relationship, and he will tackle them. some china hawks into his administration. i viewed there being some downward pressure central for u.s.-trade friction, i would rate that pretty high in the course of this year. >> great to have you. n.ank lave an guest. another top we speak to the ceo of ,ustralia's egg is steelmaker bluescope, 9:15 a.m. in hong kong. >> that's right. up next, why bank of america ceo brian moynihan got a 25% a rise while his peers got cut. this is bloomberg. ♪ >> this is "bloomberg daybreak: asia." i am yvonne man in hong kong. >> i am betty liu in new york. bank of america awarded brian moynahan, raising his compensation by 25%. different picture for citigroup ceo, who received a pay cut. we have more details on the compensation. so what was behind the 25% rise? gave brian moynihan $25 million. we never know why these boards come to the exact number they do, but what we tend to see is what brian moynahan has themplished, presiding over bank's best year for profit in a decade, $18 billion, 13% more th

china now. that nation not happy about a u.s. deployment to the south china sea. the u.s.said saturday, a carrier strike group began routine operation ns ths in tha. >> it included this ship, the "uss carl vinson." it asked the u.s. not to challenge its sovereignty and security. it comes amid growing tensions between the u.s. and china over trade. currently in beijing, john, good to have you with us. the u.s. calls this a routine exercise. how often do we see this? >> not very often. the last time, in 201567. it is fair to say we see the u.s. sending a stronger message when is it comes to its participation in u.s. and the south china see. the "uss vinson" leading the charles of this exercise. this is considered a geopolitical flash point, the top five in 2017. admiral james kilby said he is looking forward to demonstrating u.s. capabilities in asia and tightening the bonds between it's allies and friends. it is good to suggest this took on a new meeting after a successful bilateral meeting between the u.s. president, donald trump and his japanese counterpart, shinzo abe. j

u.s. or china? oth -- >> they both have leverage, sara -- >> stephen, go ahead. >> i think we're diluting ourselves into thinking that we've got all the leverage in the u.s. because, you know, we're big and we're strong and powerful. china's our third largest and most rapidly growing export market, sara. they also own over 1.25 trillion of u.s. treasuries. so, we squeeze china, they're going to squeeze back, and we can't pretend that's not an issue for us. >> steve's absolutely right. i think that we have to realize that this is a global world and that we have leverage over other countries, but they have leverage over us. and a large number of american jobs depend very heavily on exports. a large number of american jobs depend on inflows of foreign investment. and if you have a disruption in the global trading system, it will disrupt a lot of jobs in this country. moreover, it will have profound effects on international financial markets, which are very international. we saw what happened a year ago

china urging the u.s. np making wrong comments" the disputed islands in the south china sea, coming after the u.s. secretary of defense said the u.s. would help defend two islands and the east china sea that japan controls, but china claims as its own. the comments were made after meeting with prime minister shinzo of a. --shinzo abe. policy makers calling for quality and efficiency in the farming sector. state media saying the communist party central committee has published a document focusing on agricultural reform and sustainable development. and wed stabilize rice production, and increase corn acreage. he will netanyahu says push for united international response to iran's ballistic missile tests. the promised her is due to meet theresa may on monday, days ahead of his white house visit. benjamin netanyahu told his cabinet that the emphasis would be on assembling a partnership against iran's aggression, also set to discuss trade and technology ties between the u.k. and israel. up after boosting profit f

china. president trump stated that he looks forward to working with president shi. we are here with chief economist willem buiter. >> the u.sina are the two elephants in the global economy. china is more important to trade and financial transactions. their relationship is essential to global prosperity. if there were a major fallout -- it is a risk -- global recovery would grind to an end. so it is good that 11 days after the chinese new year this letter went out. david: how do the markets track the development of that relationship? candidate trump was posted for us about what he was going to do to china. do we read anything into that? >> absolutely nothing substantive has happened since to call during his candidacy the premiere of taiwan. there has been absolute silence. not even any saber rattling in the background. i expect they are simply thinking about what kind of lateral renegotiations and reciprocity to demand. and by itself, that need not be dangerous that it could easily misfire if there is a lack of mutual understanding. globally, a lot of conversation about trade wars. what do you say about bringing up to the su

china is willing to work with the u.s.promote a broader development of birat lal relations at a new starting point. in previous reports trump has called into question the u.s. acceptance of the one china policy and implied that the one china policy could be used in larger negotiations on other issues, such as trade. china repeatedly said that the one china policy is nonnegotiable, that's one reason why when i was calling around to didn't analysts today, they were saying this issue was so difficult to overcome, and that now that it has been overcome, the relationship can move forward. >> mr. trump, president trump has always said, okay, i'm going to do deals if the deal works in my favor. if it works for america. now he's okay with the decades long relationship with beijing what kind of deal do you think he got? >> that's a big question mark. some guys i was talking to were saying that this just increases the uncertainty that we still don't quite know what trump's policy towards china is. and his approach. as you suggested,

u.s. and mexico had wealth. china has done better but they're on track on catch up. about it will be 20 years for per capita gdp to be on par. that is 20 years from now u.s. per capita gdp will still be five times greater than in china. >> had still ahead, the complexities of the president's america first energy plan. >>> the city of seattle has cut ties with wells fargo. they passed the measure last night because of the bank's role to the lender of the dakota pipeline project. they have said they won't renew contract which continues through 2018. the bank manages more than on $3 billion of seattle's operating account. wells fargo says it is disappointed by the decision and is ready to support seattle with its financial services needs in the future. >>> oil prices finished higher for the first time in three sessions. but it is the i'm that line industry that's getting attention. days after president trump issued an executive order to proceed with keystone's xl pipeline, the company building the project,s trans canada, replied for approval. there are big questions surr

china. >> ben hall reports that both the u.s. china are flexing their military muscle in the south china sea. >> the u.s. ambassador to thailand joining military officials to officially kick off operation cobra gold. an annual series of naval drills in the south china seas but this year the u.s. top commander part of president trump's attempt to bring asian companies to america's sphere of influence. it is sure to anger china but the timing is delicate with a new study showing the chinese military escalating its spending calling into the president's ability to work with beijing economically and challenging china policy. >> improvements in chinese capacities will offer imimportant challenges to western portions deployed. >> and some u.s. allies in the region are welcoming the president's hard line on chinese military expansion. the japanese prime minister says they are considering changing their policy drawing an angry response from china. >> japan the u.s. should be cautious with their words and deeds and stop making the wrong rem

u.s. and china is critical. i think he is a smart guy, he will see that. ffat was the trade andking about the trump administration. one prime minister who met the u.s. president is theresa may. she is facing a debate, it is about the draft law to trigger brexit. the bill for 11 hours yesterday. they continue today. anna edwards has not missed a beat. sticking inyou there. day two. what about today, 11 hours of debate. tonight we get a vote. even if that gain support it does not mean that it has passed. it is a long process to get there, is net? anna: today does not make it a done deal for this article 50 bill although it does look as the -- as if it will pass. we see the resumption of the debate. they debated late into the evening. even if it does pass tonight when we see that vote it still has to go to the committee stage. lord's and ithe could get bounced back to the commons and that is when we start to talk about whether theresa may's timetable has to shift. it does look as if it will pass this particular fertile. we had an outpouring of cathartic and mo

china did. obviously it's not enough. the u.s. would like china to do even more.re a lot of holes in those sanctions. but china over the years has grown increasingly frustrated with this young kim jong un, his young leader. his father, kim jong il, was a little bit more pragmatic. and you heard president trump, one of the things that he's saying in terms of a, quote unquote, deal with china, is that he wants china to take more action against north korea. and certainly they could. i think it's going to be very interesting to hear president trump at his next press availability, when he's asked about north korea and this latest test, and what he wants to do. i think one of the dangers is that previous administrations have avoided overreacting on these type of missile tests. this is not a very long range missile. officials say it's bad, it's not earth-shattering. particularly in the obama administration, they were really careful to calibrate their response. this president is not someone who calibrates a response. you know, he's very fiery with his rhetoric, fiery with

china is still there. what that means is that the u.s. se tariffs on china, china could retaliate with a depreciation in the yuan, and that would spillover across all emerging markets. we see emerging markets is one of the most overvalued, one of the riskiest assets in bonds. you have record low yields, but the risks are still there. there are record low yields in every country except for mexico, argentina, and venezuela, which are all --and turkey, for political reasons. tom: i want to pin you down on of all of this. let it go back to the full faith .nd credit curve we've shown this chart many times. i squeezed it over to the left to give our uncertain future over the black part of the chart. when is the when, when is the curve flattening in the united states? is this going to happen in the next three months or is it out here in the vicinity of 2018? alberto: i think it is in the second half of the year. tom: so over here? alberto: yes. it could happen sooner on a flight to safety if political risk in europe gets worse. the 10 year treasu

acompanynied by guided missile destroyer, uss wayne mier, mission comes amid rising tensions between u.s., chinaand a number of countries that claim those territory and south china sea, and about a third of global, global cargo transport goes through the south china sea. it is clear, why the united states navy is there. >> vote in our poll tonight, should g.o.p. house and senate leaders begin to emulate president trump's wor work ethi. can we get rut results to them t their homes in their districts? we'll see how they feel about that. we'd like to hear from you. follow me on twitter, like me on facebook -- on wall street markets closed for presidents' day. goldman sachs back warning of cognitive dissidents in this market, claiming investors are acting irrationaly, despite $2 .8 billion in paper gains since donald trump was elected president. >> and kraft heinz dropping its merger with unilever. reminder to listen to my report 3 times a day, coast-to-coast on the salem radio network. up next, senator mccain. he is working as president's chief antagonist. senator rand paul said that mccain's griev

without president trump recognizing the one china policy, the relationship between the u.s. a would be a non starter. i have been talking to several experts who said this had to happen at some point. it is a turn around from president trump who previously said maybe the issue of taiwan which china sees as a renegade province would be on the table for negotiation. coming around with the u.s. thinking since 1979, recognizing china as the only china a and taiwan as not a separate country is the basis for all relationships with china. now they can get down to the tough decisions and talk about trade and foreign policy and climate change. this shift in tone and substance from president trump would be welcome here in china. the relationship between the two countries, perhaps the most important bilateral relationship for the u.s., could continue to be tricky. this is a way to get that relationship going. christine. >> he said repeatedly that china is killing the u.s. on trade. he used more crass and vulgar terms. he has been very sharp critic of chinese trade policy. thank you, davi

how china is courting the u.s. first family. bloomberg. ♪ going straight to the top as it plus a new diplomatic course with the united states. the firstooing family. peter martin is in beijing, and joins us from there. what has been the general reaction to the trump family, or to trump, within the chinese government? i guess that is the question. peter: honestly, if you has been one of confusion. trump talked a lot about china on the campaign trail, accusing them of being a currency manipulator, cheap on trade, aggressive in the neighborhood. it is up to the chinese ministry to determine how this translates into u.s. and china relations. it is a big question mark in china right now. rishaad: what are they actually doing? making?roaches are they peter: i think we have seen china try a variety of approaches. we have seen them engage through official domestic channels. businessend them send envoys to talk to president. for the chinese government, looking up the first family was a natural extension of that. it seemed like a smart wa

he said china will overtake the u.s. as its largest market. ting time to make that statement as tensions between the china and the u.s. are high. did he give further commentary on that? francine: he did say that because of the size of the country that he expects many more drinkers of coffee and many ine stores in the u.s., or china compared to the u.s.. i had 40 minutes with him yesterday in malilan. can you imagine starbucks selling espresso and coffee to the italians? we know he is stepping down as ceo and a couple of weeks, and he said being in italy was a dream. ae last time was 1983 when young howard schultz was walking through the streets of m ilan. where heon to china said they are opening up one shop a day almost because you have such strong demand there. john: we will have much more of that conversation throughout the program. francine lacqua, starbucks and milan, how is this going down in italy. has been there backlash, starbucks and entering europe and milan. they got into paris about 10 years ago because of regulation, a backlash am

u.s./china relationship. the reagan/bush administration did. i don't think the one china policy is a very american policy. words part of china manipulating the negotiating table. i think president trump is basically focused, first and foremost, on the economic relationship and has some big ideas about recalibrating the relationship with china that way. i don't think he wanted the words to stand in the way of getting his agenda on the table. he's a very transactional leader. chinese leaders will struggle with that because they try to have complete consistency in what they say their position is and what the u.s. position is over administration to administration. i think trump's going to be about change. >> heather: we're capitalists and they're capitalists in a sense, too. maybe we can have that in common and work out something. gillian and stephen, thank you very much for joining us and for your expertise today. tom price sworn in today as secretary of health and human services following his confirm eight in the wee hours of the morning, putting

u.s./china cooperation and trade. >> reporter: president trump just a couple hours later told reuters thathe chinese were the grand champions of currency manipulation. the foreign ministry had a response for that saying that china is a grand champion, just maybe not way the president meant it. >> translator: if you want to label china as a grand champion, indeed china is a grand champion, but a grand champion in economic development, since reforming and opening up policy has been introduced, we have made remarkable achievements, in this regard we are a grand champion. >> the ministry spokesperson repeated that china does not intend to take advantage, have any trade advantage by de-valuing the currency. he said they want to keep the yuan stable and make sure they press ahead with currency reforms. >> eunice, thank you for joining us. it will be interesting to see how this back and forth within the administration goes. especially when we get that treasury report on april 15th. eunice yoon joining us from beijing. >>> coming up a round up of the ceos who have personally made the most money si

and a u.s.ircraft navy patrol plane had an unsafe encounter in the u.s. china -- south china sea.he first known incident to have taken place under the trump administration. pacific command said it took place in international space. the russian runner was also years of theur court of arbitration after footage appeared to show her using a banned substance. local news 24 hours a day powered by over 2600 journalists and analysts in over 120 countries. this is bloomberg. ♪ caroline: this is "bloomberg technology." as we discussed, u.s. stocks ended to an all-time high as investors reacted from -- two new details from the trump administration on cutting taxes. tech companies continue to shift how they operate. lead thet helped charge against the executive order on immigration. me torrespondents join discuss the top tech stories of the week. >> this legal battle is far from over. we saw donald trump's all caps tweet on twitter. this into the next court and these companies are still going to be very involved in the fight. we saw google taking the lead on negotiation with the lawyers. ever

china. it is global. we had the u.s. recovery.that, monetary policy convergence which put pressure on emerging-market currencies and brought up inflationary pressures. that put pressure on europe. because global growth was lopsided, there was a lot of pressure on the u.s. dollar. it had a negative effect to the rest of the world. that has changed. global growth is broader. the fact that china stabilized, they just pushed away from reform targets to support growth. some infrastructure spending and the easing in monetary policy we had from early 2015. monetary policy works on the lag. the effect of that is still coming true. real yields are going down. there are a lot of difference between 215 and that makes this recovery more sustained. yvonne: what about for the fed risk? the fednue to hear president saying she is comfortable with more rate hikes. we still see the fed funds futures still around 30% for the month of march. what are we missing? first of all, if you look at the correlation between the u.s. dollar and the fed rate hik

and on any kind of trade war with china, cook saying, "my own belief is that the u.s. eds china and china needs the u.s. the only way each country wins is if the other wins. the world, by the way, desperately needs both the u.s. and china to win. we both need to lead in many areas, in particular, the economic ones." cook is also opposed to trump's executive order on immigration. apple is now considering its legal options and asking the trump administration to reverse that action. guys, back to you. >> all right, thank you, josh. i'm going to bring in walter and michael now. walter, let's start with you on this apple report. it's got the stock up better than 5%, at least, this morning. which number is the one to focus on, average selling prices, higher pretty much across the board, some weakness in china, depending on whether you're looking at greater china or mainland or something else? >> well, i think the fact that china seems to be stabilizing is a positive for apple, but i think the higher asp show the impact of the iphone 7s and the fact that 7 plus, and the fact t

so much of china's exports to the u.s.e high value-added content from japan, korea, taiwan, singapore, malaysia -- there will be ricocheted effects. asia is very exposed to any trade protectionism. asking, client survey is there a link between trade protectionism and foreign policy in terms of negotiation? 46% of respondents said definitely yes, 41% said probably yes. there could be an intersection between geopolitical risks and straight protectionism in asia. yousef: if we think about this in a zero sum way, whenever there is a loser, there is going to be a winner. who stands to gain from all of this in asia? move toward america first policies -- overall in asia, not that much gain. overall, the only economy we thought could gain is russia. em's will lose. america first could mean em last. you a preview of what is to come on the program find out how i chinese oil trader is contribute to the shakeup of global supply. we are live in singapore with that story with all the details. this is bloomberg. ♪ shery: welcome back. yo

u.s. wants to sort of back off any confrontation with china. so north korea rng sends this out as a symbolic response. they doe this time and time again. it pointedly is trying to disrupt that u.s. message of a firm alliance with japan and with cooperation with china. >> let's talk about the optics and context of what we saw coming from the president of the united states. this is not the president on twitter. this is not the president signing executive orders talking to a domestic audience. rather, this was the president of the united states on stage with another world leader talking about a big international issue. giving a very brief statement just your thoughts, your reaction from what you heard from that brief statement from president trump. >> well, i think the statement itself, just that one sentence is sort of a hold the line statement. there's not much you can say at this point till we know more about the test. that said it, did come across as relatively terse. not the type of rhetoric you would get from obama in terms of what a next ste