it would be china, india and senior china. that doesn't have anything to do with the one child policy, this has to do with population growth and the fact that they're living longer. the problem the one child policy has is that they reduce the working population to support the aging population. these people are going to grow older. some of the other problems such as gender imbalance and what this could result in whether this results, some of the speculation we don't know for sure. we definitely know that this big group of elderly people will age and that will raise a lot of issues for china. >> today we are seeing china's economy beginning to slow after three decades of rapid growth. as any of that slowing related to the one child policy? >> it is because one of the biggest challenges of the economy is manufacturing. that was fueled by cheap labor. now the abundance has gone down. there's just fewer workers. they want to get paid more. so china is trying to transition out of that into a more consumer-based economy but then you

to bring those south china china?back to >> we're in a critical point now in the project where it's been a success. the first stage has been a success. he's increased the number of breedingat he has that well. they can hunt which is very important. the next stage is getting them back to china. they are at the stage of negotiating the chinese trying to find suitable habitat for them. bit.s the difficult dealing with the chinese government is extremely difficult. he has to negotiate all of these political currents that's hard to understand. it's really hard to know how hard that process might take. the tigers might go home next year or ten years. >> it's a fascinating read. know you spent a bunch of time with him. hate to say this has taken over life. >> yes. this and the divorce are the two of histhat take up most time now. the divorce is linked to the part ofarity because they are arguing over is the assets and the charity. these two things are what he now. >> interesting to hear about individual stuart bray. kit than

lots of people in china want to see them come back to china. there is an idea that if it is a chinese tiger should be on chinese soil. it is a difficult thing to do. they need a lot of room, tigers, because they are solitary animals. they need space to hunt. they need a huge amount of ram. there just aren't many places in china where there is enough good habitat for them to go. carol: what is interesting, a fair amount of drama. he has a girlfriend, or former wife, he is going through a divorce, that has woven through your story as well. he has a lot of litigations and lawsuits going on as well. kit: one of the things about stuart bray is that he is a very passionate driven man. ,that leaves him to be successful in many of the things also results in him falling out with people that he works with. recently he has fallen out with his wife. he is going through a divorce in the london court system. he described himself as a crusader when it comes to things that matter to him. once he has an idea, he will pursue it vigorously, even if that means pot

eventually he would return them to china. carol: he is doing that. he has brought them to china. guest: he hasn't briny back. he has 19 animals in south africa. the question is what happens to those animals now. they have a great home. they have a wonderful reserve. they are in great condition. the question is what happens next. finding space with them in china, arranging for them to be sent back. carol: the chinese want them and have been working with him to do that. guest: his project has quite a lot of attention and china. the tigers are hugely important animals. .e's had them for 10 years now there is genuine pressure to bring them home. toot want them to come back china. -- it is a difficult thing to do. they are solitary animals. they need space to hunt. there are not enough spaces with good habitats for them to go. carol: it is a fair amount of drama. he has a girlfriend, former wife , he's going through a divorce. that is woven through your story as well. 3 he is a -- guest: he's a passionate, driven man. that leads them to be successful. but that leads and a falling out

satellite images show china has installed missiles on the south china sea. here are the pictures of woody island in the paracels. this is the northern shoreline. an empty and coastline. images on sunday show a different picture. of eight to batteries missile launchers and a radar system. china says it is a media invention, and it has said it has the right to necessary self-defense facilities. i spoke an earlier time ago with my: who was the deputy of the secretary of states for a east asian and pacific affairs. you make of the timing of this missile installation, coming off of the heels off of a summit that called for a peaceful resolution for these sorts of maritime disputes? show you the will contrast in how china is approaching the issue in the south china sea versus how the united states and other countries in the region are approaching the issue. many countries in the region want to take a diplomatic approach, one that upholds international law of the peaceful resolution of disputes. that was the top of the agenda when president obama met with the leade

china, clear communication. hopefully they will say something that will be useful. , asaad: i tell you what were talking i'm looking at sharp. no confirmation, just nikkei reporting that flash headline that foxconn has one out. up, then down 5.2% -- 5.8% up, then down 5.2% -- bybig block cell, big block big blockck sell, live. rishaad: let's look at some other stories. there could be a big announcement from china's richest man. he is planning to invest in a retail development outside of paris that will include a theme park and hotel. speaking at oxford university, the chairman said he was willing to invest billions into a new project outside the u.k.. he is in talks on a comprehensive project with in the u.k. that is expected to create 10,000 jobs. would add to his conglomerates growing overseas portfolio. listedin the hong kong company have slumped over the past 12 months, down almost 32%. 3% in in berkeley fell london as investors await earnings and a broader strategic update next tuesday. barclays will report

$62 billion, so china, inc. is still making money. now one of the reasons why imports are down is that china is no longer buying things like iron ore and copper, these key commodities in quite the way that it once did. this week, all eyes are going to be on china's currency, the yuwan under attack by foreign speculators, seeking to drive down the value of this currency. they want to force many believe a devaluation. china's government is resisting that that. it wants to control the direction of its currency and not have foreigners do it for them. a fuller picture on the state of china's economy will probably come next month when we get figures relating to retail sales, and industrialout put. >> the chinese economy is likely to be a key topic with president obama and asian nations today. al jazeera's pat trish at a sabga has more. >> this is what rebalancing looks like. president obama standing shoulder to shoulder last november with leaders from asean the association of southeast asian nations, a club of countri

and china agreed to the sanctions on wednesday. the two big powers had different views on how to approach them. washington wanted a harsh punishment, while beijing preferred dialogue. the security council could vote as early as this week. >>> the operator of the crippled nuclear plant says it is moving forward to contain radioactive water at the facility. tokyo electric power company says it will soon be able to stop the influx of contaminated water in some parts of the plant's reactor facility. they're still filled with highly radioactive water. contaminated water from three of the reactors is flowing into adjacent turbine buildings, filling their basements as well. tepco has been trying to reduce the amount of such water in the reactor buildings. it has been taking measures to stop ground water around the reactor buildings from flowing in. the utility has also been pumping up contaminated water from the facilities. >>> tepco officials say the are loeg water levels in the reactor facilities, in the number one reactor, the water le

will assume a more active stance in the south china sea. admiral harry harris says that includes more freedom of navigation operations in contested waters. >> the frey dom of navigation operation itself is only a pat of the broader policy approach. we'll be doing them more, we'll be doing them with greater complexity in the future. >> he was speaking to u.s. lawmakers about the buildup in the spratly islands. harris said submarines could be an important tool for u.s. forces in the asia-pacific region. he said they could help deter additional chinese militarization. harris said in the future, the military could consider dispatching additional nuclear submarines to guam and deploying the latest stealth destroyers to the asia-pacific. >>> a recent shooting has police on alert in a recent spike in yakuza gang activity. but while police are concerned, a lawyer who worked for the gang said the group has more pressing issues. nhk world explains. >> reporter: on tuesday, a gang member affiliated with the gang was arrested on suspicion of shooting i

to bring the south china tigers back to china? kit: we are at a critical project right now. the first stage has been a success. he has increased the number of tigers, they can hunt, which is important. the next stage is getting them back to china. they are negotiating with the chinese to find a suitable habitat for them. that is the difficult bit. dealing with the chinese government is extremely difficult for a westerner. there are many murky political currents that are hard to understand. it might go home next year, or in 10 years. it is very hard to know. carol: it is a fascinating read. i know you spend time with them. he is certainly on a mission. safe to say this is taking over his life. kit: this, and the divorce take up most of the time now. the divorce is linked to the tiger charity, because part of what they are arguing over is the assets in the charity. carol: interesting to hear about this individual. kit, thank you so much. joining us from melbourne, australia. we go to the back of the book for the etc. segment next. i

hasn't brought any back to china. animals at his reserve in south china -- africa. now they have a great home in south africa and a wonderful reserve. they can hunt, breed, and are in wonderful condition. the question is, what happens next? funding them in china will be difficult, and arranging for them to be sent back. carol: the chinese want them, correct? t: stuart's project has had quite a lot of attention in china. the tigers are a hugely important animal. he has had the animals for 10 years now, and there is genuine pressure to bring them home. many want to see these animals come back to china. there is an idea that if it is a chinese tiger should be on chinese soil. it is a difficult thing to do. they need a lot of room, tigers, because they are solitary animals. there just aren't many places in china where there is enough good habitat for them to go. carol: what is interesting, a fair amount of drama. he has a girlfriend, or former wife, and that has woven through your story as well. he has a lot of litigations and lawsuits going on as well. kit: one of the

china could cover the entire south china sea if the country sets up another radar system with the same capability. historically speaking, parties involved have held quite short air strips in the area. those held by vietnam, taiwan, the philippines and malaysia are about 300 meters. its facilities shows strategic ambition in the future. various facilities that china has built on reclaimed reefs cannot be claimed as territory. they are building artificial objects in violation of the u.n. convention on the law of the sea. we must raise the issue and warn china not to expand such facilities. japan needs to closely share information with the united states. they also need to patrol the south china sea if needed to stop china's blatant attempt to expand its territory. japan also has to work closely with asean nations with which it shares the same values. >> that was the former commander with the japanese air self-defense force. >>> on north korea, chinese leaders say they will support international efforts to curb pyongyang's am ambitions, and a look at their border shows why. >> reporter: ch

>>> china accused of deploying missiles to a contested island in the south china sea >>> hello. also on the show - 100 trucks packed with aid head to besieged towns in syria. >> and an exclusive report from a rebel base as the government ends decades of conflict. preserving america's musical pass. top awards for golden records >>> chaina has been accused of beploying a missile system to woody island, in the south china sea. the allegation is supported by the u.s. and chinese officials. a previous satellite. the pictures show a considerable building work, including a run way. it's claimed by taiwan. beijing says it owns the spratly islands to the anger of philippine, vietnam, malaysia and brunei. china's claimed territorial waters. >> reporter: woody island, beijing said it had it since 1974. chia formed a city on the plan, home to thousands of people. taiwan claimed the island with vietnam. it's home to two advanced boundaries. china's foreign minister said it was an appetite of creating stories, but didn't deny that the reports were true. >> reporter: as for the limited talk th

china's currency remains a hot topic. a production freeze interrupts the oil route, but for how long? >> i would like to stay in the market. that is it. shery: and the fed weighs in latest set of minutes. >> they said let's wait and see what happens. sherry: earnings season continues with a pain for some, joy for others. john: you are right, we crushed it. shery: while european banks cope with an ongoing nightmare. >> it is good news in banking. >> the good news it is hard to see it getting worse. sherry: and some of the biggest names in business shoot from the hip. >> in silicon valley, they are in their own world. sen. sanders: this is a litmus test. howard: they are scaring the hell out of people. shery: plus, conversations with highflying executives at the singapore airshow. it is all straight ahead on "bloomberg best." ♪ hello. i am shery ahn. welcome to "bloomberg best," a weekly look at the most important business news , analysis, and interviews from bloomberg television around the world. let's begin with a day b

china's currency remains a hot topic. a production freeze interrupts the oil route, but for how long? >> i would like to stay in the market. that is it. shery: and the fed weighs in latest set of minutes. >> they said let's wait and see what happens. sherry: earnings season continues with a pain for some, joy for others. john: you are right, we crushed it. shery: while european banks cope with an ongoing nightmare. >> it is good news in banking. >> the good news it is hard to see it getting worse. sherry: and some of the biggest names in business shoot from the hip. >> in silicon valley, they are in their own world. >> this is a litmus test. howard: they are scaring the hell out of people. shery: plus, conversations with highflying executives at the singapore airshow. it is all straight ahead on "bloomberg best." ♪ sherry: hello. i am shery ahn. welcome to "bloomberg best," a weekly look at the most important business news analysis, and interviews from bloomberg television around the world. let's begin with a day by day

lots of people in china want to see the animals come back to china. it is a chinese tiger that needs to be on chinese soil. it is a difficult thing to do. they need a lot of room because he are solitary animals because huge amount of room. there aren't many places in china where there is enough good habitat for them to go. carol: what is interesting about this story, there is a fair amount of drama in it. he has a girlfriend, or a former divorce,ng through a and that is woven through your story as well. he has a lot of litigations, lawsuits as well. himne of the things about is he is a passionate, driven man. that leads him to be successful in many of the things he does, but it also result in him falling out with people he works with, and most recently falling he isth his wife, who going through a divorce in the london court system. he says he is a crusader. idea, he willn pursue it vigorously. even if that means clashing with people. he has a long history of litigation and legal disputes. carol: it was initially kind of her idea to do this, correct?

in china is trying to change the situation and increase tension in the south china sea by carrying out rapid land reclamation and utilizing them. we have concerns and we want to say that japan cannot accept this. >> the two largest powers in the region extend here to the korean peninsula as well. after north korea's recent nuclear test and rocket launch the u.s. is in talks with south korea by deploying an anti anti-missiles system known assed that. that is something that beijing is opposed to, seeing it as a direct threat to its own military interests: washington want to pressure china to reign in its ally in pyongyang. there was a show of force at the peninsula. american f-22 stealth fighters demonstrating what the u.s. calls commitment to defending it's ally in the face of north korean threats. but it's a show of force that will be noted just as much by the leadership in beijing. harry fawcett, al jazeera, seoul. >> apple said it will fight a court order to crack the encryption on the iphone of one of the attackers in san bernardino. apple said breaking into his iphone would threate

-china cyber relations. where before the deal was struck there were many reports at the white house was pretty open about this that they were planning to sanction china, sanction companies and individuals within china for these types of cyberattacks. they have since come back and declined to do that but most people imagine that they will eventually wields the sanctions and i will come from an infringement of this deal. so i think it's going to be interesting to watch as these countries meet every six months to flush out this deal which was very big one is initially announced and decide how we are going to measure whether or not you are hearing to it. what are we going to do if you want to -- this agreement so that something perhaps to something perhaps you will see in the next three to six months, movement in that and it speaks to the entire future of the u.s. china cyber relations which many see as normalizing that have the potential to change course is very quickly. >> host: kate tummarello i'm going to be

haslinda: china is going down. why isn't china a risk to the aviation sector? tony: you are right, china's economy is slowing down, although air travel is not slowing so much because the economy is reshaping itself, restructuring itself, and consumers are spending a bit more, and they are spending on travel. it as suchot seeing a big factor at the moment. >> i think we are firm. the board will be above one, and it means we will consult it a backlog of 6800 aircraft. low-cost carriers in this part of the world, what are you seeing? fabrice: many people talk about it, but we do not yet. the reality is we have customers, so profitable, so it is true as well that the segment is very dynamic, so there is a lot of growth. there is a big surprise among some competitors. confirmn all, i can that we see it and for a simple reason. asia accounts now for 40%. so this is the area of growth, and it will continue, except if everything collapses, but this is not the prediction. airlines undergoing a massive because of massive losses amounting to more than $1 billion. most of

china has been accused of a currency war to boost exports. china denies that. no signs of panic over what is happening to the economy. quite the reverse. if you go to some of the side streets, people are spending and spending big. the chinese government is hoping that in many ways the consumer will be the saviour of the chinese economy. >> one of the world's most iconic steam chains made the most awaited return to the track. the flying scotsman underwent a refurbishment at a cost of under $6 million. it set off from london to york. emma heyward is on board. >> it is the symbol of a bygone era when rail was king, and almost 100 years after the flying scotsman made its debut, it's back on the track. with thousands turning out as it made its long journey from london to york. >> this is a deep appeal, and it's elemental. it's fire and water. and it really is something deep within the d.n.a. in its heyday this locomotive was a record breaker, the first to hit speeds of 100 miles or 160 k/hr. it's modern name sake can travel twice as fast on the same line. >> what th

china bucked the trend. shanghai composite down by a fraction, as we see there, 2862 for the closing number, discouraging inflation numbers fueled hopes for more government stimulus, but profit taking wiped out earlier gains. here's a hook look at some of t other business stories we're following today. >>> toyota motor officials have announced a global recall of almost 2.9 million vehicles. they say the seat belts could be damaged by a metal part in the event of a crash. it applies to the rav4 between 2005 and 2014 and the vanguard produced in japan between 2005 and january this year. >>> government officials say in january, japan's trade balance was in the deficit by nearly 650 billion yen, that's about $5.7 billion. they say exports were down 13% from the same month last year. imports declined by 18%, as prices of crude oil and liquid natural gas fell sharply. >>> and, as mentioned, the four figures show in january china's consumer price index was up 1.8% from a year earlier. that was a slight improvement

the chinese are doing things to benefit companies in china. i'm asking. scott: the bigger concern is, now, chinese companies are doing things to benefit the government of china. company.s not a tiny , here in two efforts china, to essentially use these to put in the information that chinese citizens use when they apply for bank loans into a system that produces a rating. this is so that people who could not get loans are able to get them. it puts the information into a system which the government controls. the chinese government could not do that on its own. there's so much information from the citizens that they can be used by the government to be better. charlie: the theme of the splinter-net is that companies want control of the internet. scott: yes. to oppose that trend, to create brakes on it. administration has been trying to come up with these, where you can at least limit the damage, retain some kind of broad public's fear online. sphere online. this utopian moment work cyberspace-- where trumps the physical space and weary states fall along the w

russia and china, the internet was so out of their control. now, they have involved with all these different governments. charlie: they will try to restrain people in terms of what they can do and their power. scott: what you have now in china is that technology companies can rival american technology companies, in terms of innovative ability. charlie: some say chinese governments hope those companies. -- help those companies. scott: no one is entirely innocent. [laughter] charlie: if the head of nsa makes the case that what china does that we don't do is that we are not acting in the interests of private companies, whereas the chinese government will encourage and be in favor of corporate espionage, espionage for the benefit of chinese corporations. the chinese deny that. there is concern among the american companies and american government. scott: admiral rodgers is better informed. [laughter] scott: the chinese government for corporate espionage? he certainly -- i don't know. charlie: you know there is a concern. the chinese are doing thing

get along great ith china. largest bank in the world. it is my tenant. buying condos for tens of millions of dollars. i have the bank of america building in california. i own a big chunk of that. i got that from china through a very complex set of transactions. i think china is terrific. i'm not angry at china. i'm angry at our leaders for not being able to compete with china. [applause] we're going to get things changed. we're going use our best people. we're going to start winning again. strong military. take care of our vets. have such great trade deals. we're going to win again. e're going to win so much. we'll get rid of isis and we will get rid of them fast. [applause] i was against the war in iraq from the beginning. we shouldn't have done it and we did it. that obama got out the wrong way. we did it. it destabilized the middle east. you can see, 2003, 2004. i said it would totally destabilize the middle east because you have iran and iraq. they were the same militarily. they fight fight fight and then t

china i get along great with china. world, bank in the i own a big chunk of the bank of america building in china. i mean, i think china's terrific. i'm not angry at china. i'm angry at our leaders for not being able to compete with china. i'm not angry. so we're going to get things changed around. we're going to use our best people, we're going to make, we're going to be so smart and start winning, again. we're going to have strong borders, military, take care of our vets, have great trade deals. we're going to win, again. we're going to win, again. we're going to win so much. way.you know, by the we're going to get rid of isis and.get rid of them, i was against the war in iraq from the beginning. i was against the war in iraq. we shouldn't have done it, we did it, obama got out the wrong way. e shouldn't have done iraq, we did it, de-stabilized the middle east. 2003-2004, i said it's going to totally east ilize the middle because iran and iraq. they'd fight, fight, fight for years and years. iraq and now iran is takin

-china cyberrelations. right before that deal was struck, there were many reports, and the white house was pretty open about this, that they were planning to sanction china, sanction companies and forviduals within china these type of cyberattacks. they've since come back and declined to do that. but most people imagine that they will eventually wield these will come fromt an infringement of this deal. i think it's going to be very watch as these countries meet every six months to kind of flesh out this deal, was very vague when it was initially announced. and how are we going to measure you're adhering to it? what are we going to do if you run afoul of this agreement? that's something we're going to see perhaps in the next three to six months, movement in that. could kind of speak to the entire future of u.s.-china cyberrelations, which many see as normalizing right now. but it has the potential to change course very quickly, of course. >> kate tummarello, i'm going to in my phrasing, i guess. tech-savvy a

the white house believes it can change china's behavior through closer cooperation. it must now recognize that america and its allies are in a high-stakes competition with beijing that demands carrots and sticks, acknowledging the nature of the competition doesn't mean inevitable conflict. rather, the best way to avert it. militaryularly uses and diplomatic and economic tools to impose costs on its adversaries to advance its interests. washington and its allies must do the same to impose a steadily rising costs, especially on china's increasingly vulnerable economy, until beijing changes course. thanks for watching. i am vago muradian. defensenews.com for the latest on national and international defense and staying on technologies cutting edge, coverage of the singapore airshow, and a closer look at the obama administration 2017 defense budget request. if you have comments or suggestions for future coach, e-mail me. we will be back next week at the same time. until [captioning performed by the national captioning institute, which is responsible for its caption conten

china is accused of deploying missiles to a contested island in the south china sea. thousands gather in protests demanding the resignation of the government in kosovo. >> preserving america's musical past, top awards for the golden records. >>> developing news this hour, we're getting reports that finally the convoy of aid trucks are getting ready to move into besieged areas. we have a report from the syria, turkey border. >> like you mentioned, the u.n. aid trucks have started to move. there was an agreement between staffan de mistura and the foreign minister aid will reach seven besieged areas. two areas are government held towns besieged by the rebels as well as another government controlled neighborhood besieged by isil. activists on the ground especially in those areas say this is progress and welcome any aid, but say this is not enough, because what they need is the same aid deliveries in order to survive. the u.n. listed 18 besieged areas i have not syria, so say this is not enough. activists in the northern country side of homs, this is a battleground where t

that has upset china. it has warned that some deployment could destroy its relations with south korea. an expected formal announcement at the start of talks with the seoul government were delayed while wanting met with kerry. kerry said the thaad system would be a response to north korean threats against the u.s. >> we have stated publicly, openly and clearly what the conditions are for not having to consider its deployment. that would be the denuclearisation. that's all. >> reporter: the chinese foreign minister made no mention of the missile. he and kerry say they were close to adopting sanctions against the communist state, but neither official indicated what measures might sway the north korean government from its current course >>> with 95% of the votes counted, official ruts from bolive i can't's refer endone-- bolivia's referendum sews that the president lost. there were demonstrations outside the court >>> a french court has delayed its decision on whether closing refugee camp in calais is legal. s

trump: i would start with china. china has absolute power. the stuff comes through china. i would have done iran. i don't think you're going to get anywhere with iran because they are a hostile nation. they took our money, they spend it. bought 118 airbus planes instead of boeing's, so the money goes to europe instead. they bought a lot of things in italy, all over europe. they bought a lot of missiles from russia. they gave us nothing. we gave them $150 billion. they spent a lot of it. nothing goes to the u.s. i would have been very strong in the negotiation. i would now be very strong with china. again, we have a lot of power over china. china takes out so much money. i said before, $500 billion trade deficit with china. you can't do that. how long are you going to have a country when you do that? i hate to tell you, you need somebody like me. i'm good at this stuff. [laughter] [applause] the politicians don't even know what it means. they talk about free trade. i am a free trader. you have to have smart trade, too, intelligent. like kerry, they are going to make air-con

china imports coal and iron ore from its neighbor. some chinese businesses are also counting on labor from across the border. these women cross the border at dandong heading to work in factories nearby. authorities say 90,000 north koreans entered china to work last year. chinese firms like them because they're cheap. they'll work for about half the rate chinese employees will. and that's even more important to the firms, now that the economy is slowing. some businesses are even venturing into north korea. one entrepreneur has opened a garment factory in pyongyang. he labels north korean-made garment made in china, and exports them to japan and south korea. >> translator: we're making a profit thanks to the cheap north korean labor. >> reporter: last year, $600 million worth of clothing was made in the north and exported to china. some of it was then shipped abroad as chinese products. that's just one of the ways people are sidestepping the international sanctions. some chinese firms are starting to see north korea as a possible marke

china is going down. why isn't china a risk to the aviation sector? tony: you are right, china's economy is slowing down, although in fact air travel within and to and from china is not slowing so much because the economy is reshaping itself, restructuring itself, and consumers are spending a bit more so, then they are -- van they are are spending on travel. we are not seeing reduction in china as such a big factor at the moment. fabrice: i think we are firm. which is, the book to bill will be a good one. we will continue to consolidate a backlog of 6800 aircraft. stephen: we see the low-cost carriers in this part of the world, what are you seeing? fabrice: many people talk about it, but we do not see it. the reality is we have never had such happy customers, so profitable, so it is true as well that the segment is very dynamic, so there is a lot of growth. there is a big fight or so among some competitors. so all in all, i can confirm that we see the growth and for a simple reason. asia-pacific accounts now for 40% of our deliveries, so this is the a

south china sea. taiwan says an unspecified number of missiles have been placed on woody island. this previous image of woody island shows considerable development by china, including a runway. the island is also claimed by taiwan and vietnam. beijing also plays to other islands which says are within its territorial waters, as marked by the red line. this is all much to the anger of the nearby philippines, and other countries. >> there is every evidence, every day that there has been an increase of militarization of one kind or another. it's a serious concern. we have had these conversations with the chinese, and i am confident that over the next days, we will have further, very serious conversation on this, and my hope is that china will realize that it is important to try to resolve the jurisdiction issues of the south china sea not through unilateral action, but through diplomacy, and by working with the other countries and claim anns in trying to resolve these differences. >> reporter: woody islan

this is a real issue for us >>> china, what should the u.s. call on china to do? >> we should start sanctioning their banks. we've called on the chinese to do a lot, especially after the january 6 nuclear detonation. it is not going to impose any more coercive measures, it won't permit the security council to have sanctions. we have to see that diplomacy with beijing is at the end of the line. your honour fortunately forks the chinese-- unfortunately for the chinese they are are in a bad financial situation right now >>> coming up the north-east digging out before another blast of snow. say it isn't so. >> reporter: that's right. we're watching what is on the coast and we have another system out of the plains and this will bring some blizzard conditions. details of that when we return. >> "inside story" takes you beyond the headlines, beyond the quick cuts, beyond the soundbites. we're giving you a deeper dive into the stories that are making our world what it is. >>> metrologist is here with the news. >> reporter: we had one big storm yesterday. the low pressure

secretary of state john kerry has increased china's increased militarization of the south china sea. this previous satellite image of woody island, shows considerable development by china, including a runway. the island is part of a chain that has been under chinese control for more than 40 years, but is also claimed by taiwan and vietnam. they also lay claim to two other islands which it says falls into its territory area. harry fawcett reports from seoul. >> reporter: woody island has been in beijing's hands since 1974. in 2012 china formally declared a city on this tiny speck of land, home to more than a thousand people. now according to taiwan, which claims the island along with vietnam, it is also home to two advanced surface to mistile batteries. china's foreign minister blamed the western media's appetite for creating news stories, but didn't deny that the reports were true. >> translator: as for the limited and necessary self-defense facilities that china has built, this is consistent with self protection and preservation that china is entitled to under international law. >>

china's accused of surface to air missiles from its islands in the china seas. >>

says it is not going to allow china to dominate the south china sea, but the u.s. says it doesn't need to dominate it either. i wanted to create an atmosphere where all countries can work together without the threat of military action. >> jamie mcintyre thank you very much. >>> at that same conference you heard jamie talking about, the president talk about the supreme court appointment. he once again called for the senate to give his nominee a hearing. >> we're going to find somebody who is an outstanding legal mind, somebody who cares deeply about our democracy and rule of law. there's not going to be any particular position on a particular issue that determines whether or not i nominate them, but i am going to present somebody who indisputably is qualified for the seat, and any fair minded person, even somebody who disagreed with my politics would say, would serve with honor and integrity on the court. >> and most senate republicans continue to say the vacancy should be filled by the next president. but charles grassley of iowa saying he might consider holding he

in china are not worried at all. chinese stocks may be tumbling at the fastest rate we have seen in seven years, but one part of the market is hotter than ever. we are talking, would you believe it, ipo's. list at this point? it defies all logic. >> because the market has been tumbling, you would expect ipo's to not be as popular, but that is not the case right now. they are extremely popular. everybody wants to get in on the action. six companies listed in the last two weeks and they have attracted $1.1 trillion. traded mores were than 1800 times on average. this is not surprising because of the returns. analysts say the returns are guaranteed. take a look at the shanghai composite. if you can at the graph up, we can see to companies that listed on december 31. stocks have soared, gaining more than 70%. people want to get a piece of the action here. ok, so more popular than ever before. what has changed? these ipo's were banned for a , so there is pent-up demand. >> people are no longer required .o pay upfront for i

and china. its stock plunging 20% in trading. to stem slowing sales, hugo boss is pulling back distribution at u.s. retailers, where the company cited highly professional levels of discounting. it is also adjusting prices in asia. the company joins early -- other luxury brands and feeling the follow-up from sluggish demand in china. the revision is the second in less than six months for hugo boss. on the website, were looking at how china is making a better beagle in a gene editing raise. still ahead, hong kong financial sector, about to deliver annual budget. we'll be looking at what it means for business. coming up next, the outlook on the fx markets. "trending business" i can two. -- i can two. ♪ a lot of issues regarding quality control when it comes to this automotive company. honda ceo says he will define roles for various divisions. is reshuffling his team, nine members and top management set to retire. it is a declining market, but we have honda shares declining with it. outpacing those declines on the broader topics, 2

will not militarize in the south china sea. but there is every evidence every day that there has been an increase of militarization of one kind or another. it's of serious concern. >> reporter: so it's not just missiles by the way. china has also put war planes and other military equipment on some of these islands. a couple of things about the timing here. one is this deployment of missiles took place sometime in the last two weeks, and was sort of discovered or announced right about the same time the president was meeting with the leaders of southeast asian countries meeting in california at a time when the president, again, called for no militarization in these disputes over these islands in the south china sea. and it comes a couple of weeks after a u.s. navy destroyer passed by one of the islands in this chain in order to make the point that the u.s. insists that there is freedom of navigation. chai that was very upset and said there would be a response. it is possible to interpret this deployment of surface to air missiles

russia has become aggressive, china, and i.s.i.s. has had battlefield successes that we didn't expect. if we are going to continue to have a rebalancing to the pacific to reassure our allies there, and if we are going to reassure the eastern european nations that we will defend them, that's going to take more spending and more military force than the obama administration had planned on. >> or there's money for. i mean when you say that there's a gap, between what we want the military to do, what we expect it to be ready to do, and what it's able to do right now, isn't that something where the responsibility, the burden, is widely spread? >> absolutely. i think both parties bear responsibility for this. the republicans of course push the budget control act in 2011 that took a lot of money out of the defense. yes, the president did sign it but it was driven by the republicans and kept in force by the republicans. on the other hand the president has tied defense spending with domestic spending. he is holding hostage with his defense spe

if you don't stand up to, he said in this case, china, they'll run over you. if you stand up to china, it will create a trade war. imu we're ibut we're in a tradee said. we're just not fighting. and finally he said, anyway, they have a lot more to lose than we do in such an event. we just have no obligation -- as a matter of fact, we must stop be a patsy for those who take advantage of us. they need our markets. they desperately need to be able to sell huge amounts of product in our market. if they won't comply with the rules of trade, we have a right to say "no" and to limit access to our market. you say that would hurt america, american consumers. perhaps some. but in the long run, we cannot allow american manufacturing to be decimated by sustained manipulation by trading partners. we have to have a manufacturing base in this country. the american people know that. and they're worried about that. even the wal-mart executives said, well, if nobody is working in america, who is going to buy cheap products from abroad? they even started a promise to - they eve

special envoy. >>> china has been accused of deploying mistiles on a disputed island in the south china sea. >>> and thousands of people have gathered in an opposition independence protests in the kosovo capitol, demanding the resignation of the government. >>> libyans are marking five years since their revolution began, and even though moammar gadhafi was overthrown and killed, the country is still at war and has two rival governments. decisions over a unity government have been deplayed over and over. you have the tripoli based general national congress, and the u.n. backed government in tobruk, which is which the revolution began. >> reporter: in the city that started it all, exactly five years ago, a police force is coming together. people in benghazi began the revolution against gadhafi. they helped to end what many saw as his tyrannical rule. but since, crime has soared. general lawlessness have prevailed. freedoms have been curtailed. the u.n. recognized government, which controls much of libya, says it is trying to change this. >> translator: there hasn't been a clear state but

[laughter] china. the view there has been all of this handwringing about china being weak and collapsing and all of this, i think it's absolutely wrong. china's strong. it's dynamic. i don't quite agree the demographics is destiny. of the global population and we still have the biggest market in the world. but china is becoming economically aggressive. we have seen already these big acquisitions that are now under regulatory review. that is just the expert -- the tip of the iceberg. globallyl be competitive, a major sectors of innovation. unless we get ourselves together and think about investment and advance,n and economic we are going to find ourselves completely on our heels was -- with respect to a china challenge. reality is that energy is one of the big building blocks of the u.s. and the world economy. five years from now, we'll still be talking about energy and we will talk about whether we can still find policies to make energy building blocks that are still secure, affordable and sustainable.

china is now the world's third biggest weapons exporter. and that's affecting regional politics because 3/4 of china's weapons sales are in its own backyard. three of its biggest customers are pakistan, bangladesh and myanmar. india and vietnam are also buying weapons, mainly from russia. india recently boosted its weapons spending by 90%. for vietnam, that figure is a whopping 699%. the sipri institute says countries throughout the region are bolstering their armed forces. almost half, 46%, to be exact, of all weapons sales go to asia and the pacific rim countries. one other region of the world is also on a weapons buying spree. the middle east. there, saudi arabia and the united arab emirates buy the most. their favorite supplier, the united states. saudi weapons' imports rose by 275%. qatar boosted its purchases by 279%. the middle east remains a growth market for the arms industry. it already accounts for about one quarter of the world's weapons imports. for their study, sipri's researchers compared weapons investments over five-year pe

/china cyber relations. right before that deal was struck, there were many reports -- and the white house was pretty open about this -- that they were planning to sanction china, sanction companies and individuals within china for these type of cyber attacks. now, they've since come back and declined to do that, but most people imagine that they will eventually wield these sanctions, and it will come from an infringement of this deal. so i think it's going to be very interesting to watch as these countries meet every six months to flesh out this deal which was very vague when it was initially announced and decide how are we going to measure whether or not you're adhering to it? what are we going to do if you run afoul of this agreement that we have in so that's something we're going to see perhaps in the next 3-6 months, movement in that, and it really could kind of speak to the entire future of u.s./china cyber relations which many see as normalizing right now. but that has the potential to change course ve