xi appearingin and in china. is popular in china. they increasingly work together in the united nations. but there are still limits on their working together. there is a certain amount of smoke and mirrors in trying to present a sino-russian partnership has more than it is to date. that whatnot said russia is doing in the ukraine and crimea is meeting with its approval. russia has not affirmed china's claims in the south china sea. there is mutual suspicion but they are coming together as well. host: robert daly talking about -- talking about china. if you want to ask questions, (202) 748-8001 republicans. (202) 748-8000 democrats. .ndependence, (202) 748-8002 caller: i have three comments. -- his analysis of china's economic status is fundamentally flawed. the most polluted planet on the earth is china. this affects their gdp, everything about them. we think that the air pollution is a problem, but it is just the tip of the iceberg. everything that is grown in china is contaminated with heavy metals. everything made in china is cont

china refutes this saying 90% of the south china sea is theirs. but what's undeniable is that the steadily increasing tension has led to a military buying spree. >> i think china's military expansion, its increases in its defense spending and its actions in the maritime area, have in fact triggered something of an arms race. >> reporter: a united states military footprint in the region is not new. but it's been steadily growing over the last several years. >> militarization of the south china sea and particularly the artificial islands that will be used for military purposes by china is a concern for the united states. but it doesn't pose an existential threat. >> but the u.s. wants its presence felt. general lori robinson commands all forces in the region and presents a statement at the air show. >> what we're doing as team america and being out here to show our commitment to the region. >> reporter: and part of that show of strength in the region is this, the p-8 poseidon. the united states frequently flies them over disputed territory. >> wheth

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

>>> taiwan says china has deployed missiles on a disputed island in the south china sea. hello. also coming up russia says it categorically rejects accusations its has bombed hospitals in north syria. the judge in u.s. asks afpple to unlock one of the st bernadino's attacker phones >>> china appears to have deployed missiles on a disputed island in the south china sea. the taiwan ease defense minimum see says beijing has placed surface to air missiles on an island. ownership of the island is disputed by taiwan, vietnam, chinese and the philippines. the president is appealing for calm. >> translation: i think the south china sea is a region that everyone pays close attention to, especially on the issue of the dispute over seventy in the south china sea. it is a tense situation, so we call on all sides to stick to the principle of resolving the dispute over the south china sea in a peaceful manner. self restraint is most important >>> china's foreign minister says the claim is an attempt by the western media to create news stories. >> translation: i hope that the media everywhere,

with e china. there is no evidence outside of the western pacific and china's nine dash line that china has expansionist designs on central europe, southeast asia, a la the russian designs in the crimea, w georgia, the places you have mentioned. what they want to have is a zon. of deference. they want something akin to what we have in thewhere western t t hemisphere where they are the primary actor and if another onh nation is contemplating action s with impact on china they want i china's interests taken into consideration first. it is a magnet because of uld sa china's attractive power because of what china would see as a be-nevada allegedly hegemon.th i think you're correct that china would like to be the most dominant player in east asia pacific or the eastern hemisphere. but they are patient, gradualish and we are not talking about a vision in which the pla is stat marching across borders invading other sovereign nation states. there is really no evidence that this is what china is about. >> a

let's have a look at china. the reason we are seeing a drop is because of a flurry of profit warnings from friday into the weekend into this morning. i want to show you -- on average, 60, 70% drop in earnings. name oil fields, copper, your industry -- coal, construction and power and steelmaking issuing severe profit warnings. the you talk about the pmi, concept is fluid. when it starts to show, that is when you really feel it is tangible and more felt. angie? angie: let's focus on japan, david. everybody is watching japan for obvious reasons. how is it looking after the lunch break? david: let me give you an update. i will give you the benchmarks in a moment. these are the biggest movers. -- the story in japan are these deals. we are pushing more and more below. if bank of america is correct, this 10 year will go towards zero in the near future. markets are cautious at the moment seeing how far these yields will go. if history teaches you japanng, deals in continue to drop lower and lower. back to you. --haad:

northwest china is home to many muslims. with a population of 80,000, the largest ethnic minority in lanzhou are called hui. throughout china today, there are 55 official ethnic minorities. of these, ten are muslim. the largest of these are hui. ( man delivering sermon ) narrator: although the hui have their own autonomous region in ningxia, other autonomous regions like xizang, or tibet, speak distinct languages. many in xinjiang, like the uighurs, speak turkic languages. many of these muslims feel oppressed by china for cultural and economic reasons. some seek a breakaway state of east turkistan. some have used violence, and the chinese government tries to crush their movement. hui are loyal chinese and are found throughout china. they speak the dominant languages of the places where they live. now we get into the issue of race and ethnicity. many people, uh, believe that, uh, these are... this is a group of people that is really of han chinese race but islamic religion. the hui themselves don't see it that way. they see t

indeed, china's reclamation and militarization in the south china sea together with china's rapid military modernization and expansion are making it more difficult for the united states to defend our allies and our interests from military aggression. simply put, the administration's policy has failed. beijing has been willing to accept a high level of risk to achieve its strategic goals. meanwhile, white house's risk aversion has resulted in an indecisive that has alarmed our allies. united states must now consider fresh options to raise the costs on beijing's behavior. shaping rather than reacting to beijing's actions will mean adopting policies with a level of risk that we have been unwilling to consider up to this point. the administration must initiate a robust freedom of the seas campaign flying and sailing wherever international law allows. this should include freedom of navigation, operations, designed to challenge china's excessive maritime claims as well as joint patrols and exercises with our allies and partners that span the island chain. we must also maintain our commitment to

>>> >>> taiwan says china has deployed missiles on a disputed island in the south china sea. hello. i'm jane dutton in doha. also ahead, russia says it categorically rejects accusations that it has military bombed hospitals in northern syria. the judge in the u.s. orders apple to help unlock one of the san bernardino's attacker's iphone. the new government seeks to end decades of conflict in myanmar >>> china has been accused of deploying missiles on a disputed island in the south china sea. beijing has placed surface to air missiles on an island in the paracels. ownership of the islands is disputed by taiwan, vietnam and china. >> translation: i think the south china sea is a region that everyone pays close attention to, especially on the issue of the dispute over sovereignty in the south china sea. it is a tense situation. so we call on all sides to stick to the principle of resolving the dispute over the south china sea in a peaceful manner. self restraint is more >>> china's foreign minister say the claims are an attempt by the western media to create new stories. >> translation

and then they sold it to china and china was using it and they are building their own now. if the carrier were really a relevant and i question why these competitors are trying to build their road at the rate they are building. i think a few a few strategies china imposes are serious and we have to seriously consider them. >> we need to think about the range of our weapons. >> that is one of the issues i spoke about earlier and i were a killer ship surface weapons. we are stuck by the chinese today. because of this committee and the congress we are going to be in good shape as we put money into those systems. i think again the south platform is a submarine and we will be able to win in any conflict i see when we apply the joint force to that. and i'm comfortable with the carrier operating in those waters, but we have to consider it. we have to consider the threat. the chinese aqa deep threat is not even six feet tall. >> you mention the importance of diplomacy as part of the overall strategy. what part of that be the advisability of the u.s. treaty? a mac in my opinion sena

and we are talking china. with the new five year plan being presented in 2016, how can the world's second-largest economy shift gears without stalling its growth engine? and what does the market volitility tell us about the perception of china, and the task facing chinese regulators? well, we have, i am pleased to say, an a-star panel. thank you so much for coming on. jiang jianqing, chairman of the board of the industrial & commercial bank of china. christine lagarde, the managing director at the imf. fang xinghai, vice chairman of china's securities regulatory commission and director general at the intercontinental economic department. gary cohn, president at goldman sachs. zhang xin, chief executive officer and co-founder at soho china. and ray dalio, chairman and chief executive officer at -- chief investment officer at bridgewater associates. thank you so much for joining us. ray dalio, is there something that the west misunderstands about chinese markets? and does that exacerbate the volatility we have s

indeed, china's reclamation and militarization in the south china sea together with china's rapid military modernization and expansion are making it more difficult for the united states to defend our allies and our interests from military aggression. simply put, the administration's policy has failed. beijing has been willing to accept a high level of risk to achieve its strategic goals. meanwhile, white house's risk aversion has resulted in an insii indecisive that has alarmed our allies. shaping rather than reacting to beijing's actions will mean adopting policies with a level of risk that we have been unwilling to consider up to this point. the administration must initiate a robust freedom of the seas campaign flying and sailing wherever international law allows. this should include freedom of navigation, operations, designed to challenge china's excessive maritime claims as well as joint patrols and exercises with our allies and partners that span the island chain. we must also maintain our commitment to continued sensitive reconnaissance operations which are critical for gathering mil

sale in china are booming. so a lot of people are buying cars. american companies like general motors had a very good year in china. >> they're building factories there. >> yeah. >> because the market of china is huge. always there are some problem. there are some other opportunities. >> let me ask you about macao, and base on what happened with hong kong. i remember being in china just government in hong kong. talking to people we're not expecting the chinese government to change hong kong. they wanted hong kong what it is that was to be a international banking and investment center. they've been hands off allowing hong kong to be hong kong. when they took macao they encouraged countries to invest heavily in macao and then there were all of these crackdowns. what we're seeing now instead of the high rollers coming in and spending vast amounts of money they're trying to bring more of the general population of china to come to macao. am i correct in my thinking there. let me put it this way. for a few years maca

with china. china is in many ways our a partner. in many ways a looming add server tear -- adversary. what we try to do is put a thumb on the coop are a tiff side of the relationship and emphasize m that over the competitive. that's harder to do. ca >>ller let's hear from bob from maryland on the independent line. >> yes. i'm korean-american. i keep a close eye on what's going on in korea. i don't know if americans are rr aware of how china is really putting pressure on south koreae against the possibility of bringing the thaad system to protect itself against north korea's possible missile tests including nuclear missile tech. i mean, what is the u.s. government really doing about it? i mean, right now. because china is really, really putting a lot of pressure on south korea not to bring it e se although it already has a similar system that can, you know, do the same against the korean peninsula. i want to hear something about that. >> sure. the united states has wanted our ally south korea to deploy, as you said thaad, terminal hi

deflation, china? >> first, i would like just to make a small comment regarding the reaction of the market. we're overreacting. we're already there. i think that there is no new news. when you look at the situation regarding the oil price or the growth in china as well as the other issues. the global growth. wild, that, for a the situation would not improve markedly in 2016. so i'm a little bit concerned by this overreaction. but the market fears a global slowdown. >> that is not new. we've not have the kind of growth that we were expecting. they don't know who, besides the french, we are really thinking that the economy would take off next year. but this year. >> the market is so nearsighted. it is so immediate. it is not know how to interpret how people have heating and cheaper energy costs and the money will be put back into the economy. we do not see it. it is so incremental. over the course of the next global gdp will be around 3%. maybe not as high as the imf would believe. i am not worried. you'

reacted, weu also were asking him about china and he said, it brings us back to the 1990's, and china comes back. if it comes back, it is not going to be what we saw 10 years ago. kit: china is rebalancing. it is not the slowdown that is the problem. it is the shift away. boom, we blewasia up my industry in 2008, and now we are blowing up some of these other industries. that is not coming back anytime soon. tom: you know that when markets move, you never see it coming. what is the thing that is exogenous to the system that you are worried about? in the commodities space, what it is saying to me is, we haven't solved the excess , inly, the excess capacity the resources industry, which boom that came in 2003 when the fed was at 1% at the same time as we created all the booms. tom: we have to leave it there. we will come back with kit juckes and take a look at the euro. coming up in our next hour, we bring you luigi zingales us. we will talk about new hampshire, the primaries, the spirit of our animal spirit. stay with us. ♪ francine: welcome back. this is bloomberg "surveillance ." to

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 refutes this, saying 90% of the south china sea is theirs. but what is undeniable is that the steadily increasing tension has led to a military buying spree. >> i think, you know, china's military expansion, its increases in its defense spending and its actions in the maritime area have, in fact, triggered something of an arms race. >> reporter: a united states military foot print in the region is not new. but it's been steadily growing over the last several years. >> militarization of the south china sea, and particularly the artificial islands that will be used for military purposes by china is a concern for the united states. but it doesn't pose an existential threat. >> reporter: but the u.s. wants its presence felt. general lori robinson commands all u.s. air forces in the region. greeting staff at the singapore air show. >> i can't tell you how much it means to me to go out here and see all this joints air power and be in what we are doing as team america and being out here to show our commitment to the region. >> reporter: and part of

shery: let's go back to china. president xi says there is no basis for sending the yuan down further. stephen engle has been looking at what the pboc chief had to say. stephen: i want to pick up on thee haidi mentioned about fixing rate. as i sit at the terminal waiting for the latest trade numbers we are going to get, exports and imports, possibly money supply numbers, as well as aggregate financing. we are still awaiting those numbers from beijing if they do indeed come out. right now, the pboc earlier this morning said the daily yuan rate is at a six-week high. the onshore yuan, now trading sharply higher against the dollar, reflecting dollar weakness that we saw over the past week when china was on holiday. isnwhile, the offshore yuan weakening as the discrepancy that built up over the holiday starts to narrow. governoryou said, pboc iata has been often new -- advice, up a slew of saying the exchange rate is basically stable. he says capital outflows in his estimation are normal, despite the estimated record $1

there is a new china. you can speak to that new china. the new board, the entrepreneurship. i think we are going through a cyclical, you can't help but go over that adjustment. that will last two or three years. it comes at a bad time for the rest of the world, because when you look at its impact on commodity prices -- and not just commodity prices, but the other economies in brazil and so on -- and when you look at the vulnerability of the rest of the world, in terms of monetary policy, that's a bad combination. we'll get past that. a bad year in china is a great year in almost any other country. francine: do you question their commitment to structural reform? what are the dangers, if the structural reforms are not being pushed through? madame lagarde: we went through a couple of years of intense discussions with the chinese authorities, because we were going to review the baskets of currency that define the value. it is the elusive currency of the imf. if you asked me, if the chinese authorities would complete the reforms, that they had to take in order to satisfy the crit

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

japan may 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 rcn nations. with which it shares the same values. >> that was nagaiwa, former commander with the defense forces. >>> oil prices fluctuating this week. investors took prices higher by the international agency. it said oversupply would be resolved next year. prices are falling again. joining us no from the business desk. what are they reacting to now? >> they're reacting to comments by the saudi arabian oil ministry. russia r russia recently said they'll shore up prices, but the minister reaffirmed his stance. they won't go so far as to cut production. lee niani spoke at a conference in houston. he referred to the agreement last week between his and three other oil states to maintain output. he said the freeze was a first step. he said if other nations joined the agreement, the existing high inventory will likely fall. he expressed his intention to meet with the other countries again next month, but he said it would be a waste of time

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 and some southeast asian nations are at odds over competing claims in the south china safe. china's construction of artificial islands in the region is seen by the u.s. and other countries as an attempt to increase its military presence. the u.s. has ordered its naval vessels to sail close to the islands in the south china sea, directly showing its discontent to beijing. china is vying to expand their presence in southeast asia. it is now working on strengthening ties with nations that have maintained a neutral stance. >> translator: relations between china and the nation's militaries are moving towards deeper cooperation. >> reporter: last year, china and malaysia held a major joint military drill. china is also buying its way to closer ties. chinese premier li keqiang visited malaysia. he pledged bigucks for the construction port facilities. the chinese government is spendi nearly $10 million on the project. china is expected to surpass singapore as the top investor in malaysia for the first time. >> malaysia is in central of this south asia region. so if china manage to p

and china has changed. china's huge growth in those middle to thousands has been something that was very dramatic, happened at a time when the oil industry was investing, happened at a time when we didn't have things like shell. that growth and that whole of resources has changed. you have said that you see oil prices at the end of this year at $48 per barrel. the year after, the year after that, where do we move in the meantime? >> i think we do imagine a band. tod naturally see it at $40 $60. we do believe that something like $60 could bring back on some of the oil fields, which will probably go out. u.s. shares have huge amount of discussions, and i think the oil industry understands economics. for us, it's clear that a lot of the oil that is going to be shut down in the next year or so, because it is simply too low a price, it could come back. that's very interesting. the guys think it's doing better, and we see that at $50. ryan: this lasts until when? >> with a decline every year, i could see it lasti

, they have moved from rural china into urban china. have they been able transition them to become real consumers? if they have, at what rate are they consuming and what economic growth is that creating? that is a big mystery to the markets right now. >> that is a very slow process. , you couldn from 12% see it coming. why are people panicking? is there a need to panic? >> first of all, this has all been highly telegraphed by the chinese government. 20-30 yearsg about of policy, building infrastructure, inhabiting the cities, creating consumption, so none of this comes as a surprise whatsoever. ofs is happening on top unfortunately a slowdown in many of the other developed economies around the world. it may be just bad luck. it may be bad timing, but the reality is that we need a strong growing economy in the world to drag the other economies along with it. we have relied upon china for so long to be the big growing economy out there that without china growing in double digits or high single digits, the world is unsure where to rely upo

already china and the u.s. had been discussing new security council resolutions based on a north korea nuclear test last month, but those new resolutions were moving very slowly, but now the security council is faced with this new issue that has fallen right in their lap that they now have to deal with. on sunday it's going to be very interesting to see how all sides position themselves, especially china. historically north korea's strongest ally >>> u.s. republican presidential hopefuls have squared off. donald trump was back on stage. seven candidates took part in the debate. our correspondent has the latest from new hampshire >> reporter: the big story coming in this debate was marco rubio and the momentum he generated from his third place finish in iowa. that made him the first of attacks. donald trump is ahead of the polls and believes he will top the polls come tuesday. ted cruz is trying to build on the momentum of his win in iowa. jeb bush, john kasich, they all did well, chris christie had a goodnight,

china will not. in china you have a situation where -- >> we talk about china so much in the lack of transparency or how they change policies from week to week. it feels a little bit more consistent. do you have an idea? >> i think it's fair to say they are struggling. the policy dimension to prop up more than trying to camp down a going economy. into symmetry that is new to them and they're trying to figure out how it works. i think about the deceleration of the economy. i think about policy is having reasonable ways and means to address that. they have fiscal policy, arrows they can fire, they have monetary policy space. they continue to cap reserve requirements. policy stance, you think that is relatively market neutral. but simmering under the surface are these other factors such as how to they manage the exchange rate? there is an extraordinary amount of uncertainty about how they will do that probably even from their perspective. and you have the fact that the policy insurance they have been us

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

rishaad: and demand coming from export out of china. we saw steel production in china peak in 2014. exports continued to go up. how is that hurting your business? are they dumping that steel? i think there's been a lot of conversations about dumping and there's been a lot of cases that have proven dump rocks, not only out of china, but out of many other countries as well. i think there's a push by almost every consuming country in the world to protect their domestic industry from unfair competition or trade. that is the same as australia. there is going to continue to be significant exports out of china. my view over the next 12 months is that will start to reduce somewhat. it has a big effect on price. rishaad: you said earlier that most of these chinese steel makers aren't making money. how do you know that? basically, through public pronouncement. and through conversations with those steelmakers through our sales to them. between 30 tog 100 are in the on every ton of on every30 to 100 rmb ton of sales. we don't have any internal or inside information beyond the markets, but we wa

at china differently and growth is large part of the view. >> china can ebb and flow. there are different considerations with gdp growth in china, the housing market and different economic considerations, but as far as retail goes, in terms of luxury goods and global brands, it's a very important market for the long term. so retailers can't really ignore this market and need to continue to invest in it. and also build their awareness and their brand and their identity globally. >> reporter: on a conference call, bernard arno, ceo of luxury conglomerate acknowledged the economic slowdown in china but also said, quote, many observers underestimate the fundaments of china's economy noting household consumption is on the rise there. like other retailers, the luxury goods seller looks to the country as a long-term growth driver. pvh corp will buy the remaining interest in the tommy hilfiger in china. china is the fastest growing market for calvin klein and tommy hilfiger. michael kors and coach reported double digit comparable sales growth in china while noting weakness in

in the china factory sector. this is after we saw back in contracted 49.7 , on the non-manufacturing side, we have seen things edged down slightly after we saw quite a big number in december, the highest number we had seen in a year. now, on the nonmanufacturing side, at 53.5. for the month of january. take a look at the manufacturing side. economists they don't get too obsessed with these incremental changes in the index, because we continue to see the policy support has been accommodative, and has stabilize the sector. but not enough at this point to really trigger some stronger activity on the manufacturing friends. but, we suspect the policy will stay in stimulus mode this year. the balance now will shift from monetary to fiscal for 2016. we also saw that metal prices remain extremely depressed. i think we are on some of the historic lows. toly signs, pointing somewhere between stability versus fractional slowdown. when it comes to nonmanufacturing sector, the critical point was, whether service or strength w

obviously we're in china. china is one of the points of focus. but it's not just about china. it's about the global economy and global markets, just as you mentioned. we've seen a lot of changes overnight here in china. >> tim, do you feel that china is going to have to significantly devalue its currency? maybe not immediately. maybe not on the agenda for this particular meeting. but at some point over the next year, is that now inevitable, and to the tune of 5% plus rather than these half a percent moves we've seen so far this year? >> sure. i don't know if it's inevitable. the message has been one of confidence that they're going to manage the exchange rate, managing the dollar as well. they seem to be confident they can mng their way through this. i think that's the messaging we're going to hear, that they delivered to their counterparts over the next 48 hours. >> that's the messaging. do you believe it? >> well, this is a complex place. i've been coming to china for to years. i think there's a lot going on here. obviously there's enormous pressure with respect to net capit

washington is seriously concerned about china's increased in the south china sea. responding to reporting that beijing has deployed surface to air missiles in the region and pointed out the contradiction to remarks made by china's president last fall. >> they stood in the rose garden with president obama and said china will not military yoois in the south china sea. there is evidence everyday that there has been an increase of one kind or another. it's of serious concern. >> kerry told reporters the united states expects to have very serious talks with china over the coming days. on wednesday, u.s. officials confirmed the apparent deplo deployment in the miss sill systems on the par sol island chain. fox news appeared to show a radar system. the u.s. media say they may have been deployed last week. the foreign minister declined to confirm it, but justified the build-up. >> the facilities are for military and for self-defense. they're totally consistent with the right of self-defense given to all nations by international laws. and there is no room for criticism. >>

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

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?

you need china. china in terms of growth levels and how they are trying to mask the economy is different to the rest of the world. we are not getting any signs they are ready to participate. gary, how do you view japan? do we need to look at japan is something purely japan because the yen is rising even when they are trying to throw the kitchen sink at the economy? or if japan and abenomics fail, does it have a wider implication on the world economy? only 150 years out of feudalism, and they have a lot of feudalistic characteristics. women not in the workforce. lifetime employment. yourselfism, you owe to your feudal lord. i have a lot of these characteristics, and they are not able to get them, despite abe's best intentions. they cannot change the culture to a great degree. i do not think the japanese are particularly that concerned about it. you do not see revolutions there. you do not see throw the rascals out, anything like trump and bernie in this country. try to have them call me my leaves lowe

. >>> overnight china moving missiles into a disputed island in the south china sea. we're breaking down what all of that could mean next. >>> breaking overnight, heightened tensions in the south china sea. china has deployed surface-to-air missiles on an island chain in the waters. ivan watson is live for us in hong kong. ivan, not 12 hours ago they were urging restraint in this very neighborhood and now they report that this is an advanced missile deployment there. >> that's right. and some people are interpreting this as a chinese provocation. let's get to the map here. u.s. and taiwanese defense ministers say they put these missiles on this woody island here in the south china see. it's in an area not only claimed be i china but also by vietnam and taiwan. why does this matter? china has had a presence here for more than 50 years. it has an air strip here. why it matters here, take a look at the china sea here. this is a body of worder that an estimated 30% of the world's shipping passes through. it's also an area that china claims largely for itself all the way d

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

how will taiwan build relations with china from now on? the outcome of the election hinged on this question. 12 months after moving to taiwan, lo will obtain voting rights. how does he feel about china's relations with taiwan and hong kong? he heads to a cafe run by a friend from hong kong where local immigrants from hong kong and taiwanese have come together to exchange views. >> hong kong and taiwan continue to experience difficulty in the relations with mainland china. those who decided to leave hong kong admits these difficult times continue to watch the future of china with mixed emotions. the lo's family favorite place is a park near the beach. they still have concerns about how to make a living in taiwan, but they plan to stay and carve out a new life here. >> this family moved to taiwan seeking the most important thing in life -- their children's future. what sort of future awaits their children? ♪ steves: the dramatic rock of cashel is one of ireland's most evocative sites. this was the seat of ancient irish kings for seven cent

thirdly, china's growth was achieved with an optimized structure. consumption contributed 66.4% to growth, an increase by 15.4 percentage points and 30.3 percentage points higher than investment. the shell of the service center in gdp rose by 2.4 percentage points reaching 50.5%. that is more than half. and the share is also 6.7 percentage points higher than the industrial sector. per unit gdp energy consumption was lowered by 5.6%. china's new industries, new forms of business and new products took shape and grew more rapidly, and the added value of high-tech industries was up 10.2% year on year, growing much faster than traditional industries. online retail sales grew over 30%. i have just met myron, who is the ceo of china's biggest online business. he says his business is making good profits. the output of new energy costs increased 1.6 fold and the industrial robots, 42%. fortunately, china's growth was open and produced mutually beneficial in win-win outcomes. in 2014, china's imports were $26 million, still the second biggest in the world. th

we will focus global expectations away from china. we will be looking at other global economies, as always happens in situations like this. everybody is talking about india again. it is an up and down the economy. the effects of this looming financial crisis will be felt primarily on the drivers of chinese growth. that is what will panic some people in the global markets and yes, it will result in a weaker yuan. once we get past this, people will put it into the bucket of china in transition. story ish of that going to be a china that is not growing as fast as we all expect. it will not be driving global economies. it will become something more of an economic backwater long-term. anna: you said in your notes that china has been around for a long time. bill: it has been around for an awfully long time. anna: when you hear this zbanks when commer they say they are not sure where and therefore,re they don't have to provision them. we don't have the transparency we want around the banking sector. bill: i absolutely agree with analysis lik

china refutes this saying 90% of the south china sea is theirs. what is undenialable is that the increasing tension has led to a military buying spree. >> i think china's military expansion, the increases and its actions in the area have, in fact, triggered something of an arms race. >> reporter: a united states military footprint in the region is not new, but it has been growing over the last several years. >> militarization of the south china sea and particularly the artificial islands that will be used for military purposes by china is a concern for the u.s., but it doesn't pose a threat. >> reporter: the u.s. wants its presence felt. general robinson commands all u.s. air forces in the region greeting staff at the air show >> i can't tell you how much it means to me to see all the joint air power, what we're doing as team america and being out here to show our commitment >> reporter: part of that show of strength why the region is this, the p8 poseidon, one of the most sophisticated airplanes. >> whether it's singapore or the philippines, you

china has called on the u.s. to 76 years of hostility towards north korea in the hope of persuading kim jong-un to give up nuclear weapons. a u.n. armistice was agreed to in 1953 to end three years of fighting, but the two sides remain technically at war. the head of china's foreign affairs committee says beijing is annoyed about kim's program about more concerned america's response. maritime security in the south china sea is expected to be on the agenda as asian leaders meet president obama in california later. the philippines president intends to press the issue to stress the need for freedom of navigation. arbitrationiled an case, questioning china's right to a string of reefs, but beijing has nine -- declined to participate. is bloomberg news. i am shery ahn. the past two weeks have been interesting times for investors in japan. swingsseeing the wildest in years. david is here to break that down for us. david: a lot of this comes down to the surge in risk aversion from the start of the year. ago,recently, tw

>>> 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

the moment we have overcapacity, nobody makes money. >> and china? >> china is growing. it continues to do better. >> what kind of growth can we anticipate? >> about 7%. the chinese new year just past. a little bit smaller growth than they had the year before, but it is still positive. china and india are growing at a pace that nobody imagined. gdp growing at a fairly high number compared to the world. we are well placed in both of these countries. >> no surprise there is keen competition in the aviation space. airlines are constantly trying to cut prices. are your customers asking you for cheaper prices? >> tenures ago, it was the same. 20 years ago, it was the same -- 10 years ago, it was the same. 20 years ago, it was the same. to have the right product that meets capability, and to get the , that is where the future is. customers are happy. ,he next phase we are entering we have time to work with the cut the whereby we can cost on maintenance of these airplanes. want to be offering the best amenities and they will leave the rest of it to us. qantas ordered the 787 la