with china's increasing assertiveness in the east china sea and the south china sea, what advice would you give a president concerning how to maintain freedom of commerce on the high seas while not provoking china to do something more aggressive? and do you think any of them are smart enough to take the advice? [laughter] >> a one-two. steve, can i put this one to you? because you've done so much work on this issue, and then i'll add. >> well, you know, the problem with this issue, i was at this track ii u.s./china dialogue a week ago, someone said, you know, the problem with this issue is the united states has framed it as a freedom of navigation issue. and china has framed it as a sovereignty issue. as have a number of its neighbors. and, of course, the problem of framing something as a sovereignty issue is you almost make it impossible to compromise. because who wants to go down in history as having compromised their nation's strategy? their nation's sovereignty? so i think we have got to insist on international standards and freedom of navigation and the like. what we are doing is

china wants to get along with that. they want to design in china. quality is a major leading smartphone manufacturing. more chinese companies will have to come out. if they are just selling within china and there are established brands in china. a lot of chinese brands have to go oversea to find talent and market. the idea of the internet may create a new base to develop. that is the case with marketing and fan clubs and things to take on the nokia and apples even though they are lower priced phones. chinese are frustrated, you know, name a chinese car. volkswagon. but -- they have keeping the volvo name. i know they can't really create a good brand and sell ye. the logo is italian but they did buy the idea. so it is not like the japanese wave in the '80s where they just buy stuff and hope it works out. they are more strategic. but crazy things are happening. two weeks ago the owner of the historia hotel was bought. there is also the sense among chinese entrepreneurs that they need to keep talent and brands. club med is the largest insurance company

we bring people into china and out of china. therefore we can greatly coexist with all the mobility services around. carolyn: and you have been able to do that efficiently? >> we are currently working in the background secretly. don't tell anyone. we're launching into cities in the apex market. we have already launched two dozen of those in the last weeks. and we continue to do so because you want to serve global client base. hyde: bloomberg carolyn with jens waldord. f. things you need to watch on wednesday. this is bloomberg. ♪ ♪ internet giant is set the post second-quarter results on wednesday. three things we are watching. super cell details. biggestames, their source of revenue and they just made a massive debt on its future success. they agreed to pay $8.6 billion for the controlling stake in the maker of class or clans. they deal is still being finalized but we could hear more about what investors will -- when investors when feel the impact. advertising is the number two contributor to the top line. about contract ne

china has done it have the time. >> host: china they often said china got all before got rich. another thing identifies gender imbalance. the world has never seen such a huge national collection a bachelors, men will not be able to find mates unless china opens it doors to massive immigration. how much of a gender imbalance imbalance is there today and why should we care about that? >> host: about 30 million more men and women at marriage age. that's about the size of canada. that's pretty significant. and this is with social economic status. so every society that has a big gender and balance has not been happy society. in the case of the middle east have seen enormous social regress. in that case i remember demographers identified a group of you unusually large group of men of a certain age and they call that the mail you -- tongue-in-cheek. but they did say that, and in so china's case we don't know for sure there's if china will be more aggressive militarily and that could be a problem, although i think there are reasons why china could be more aggressive and not necessarily

that may have already gone to china or may soon go to china. >> so that's why there's a much greater fear in failing to catch chi mak. >> in 2004, the chinese didn't have a strong navy capability. they were really a brown water navy. a navy stable to operate in shallow water. chi mak chose the chinese efforts to be able to expand their capabilities into blue water. >> if she's technologies are lost, then it means we don't have that edge. so, god forbid, if there's ever a conflict in the pacific that involves china with us on the other side, then i believe lost technology will cost u.s. lives. and that's one of the things that makes me angry. >> in the fbi we have to follow principles, policies and laws. and one of those is we have to have the evidence. our greatest fear initially was, will we catch chi mak doing what we thought he was already doing? >> the thing that hit me hardest about this case was that we've got a man who came here for better opportunity and, in fact, was a spy. sent by china to come here, pledge allegiance to the united states. he took an oath with a full intent

china policy. in some cases, their views found, for example the recent article about u.s. china failed? they have commented on this pessimism and this illusion with china in washington. i'm sure, i'm very sure that you are aware for comments and therefore i will not repeat and going into details about those comments. but i will mention two important ideas that i took from my interviews for future and elite -- they're ideas of relation energy. this term is kind of a much more abstract term to describe how certain type of state relationship is constituted and connected. and recognize trust. go into that more later. we'll talk about two ideas first and then go through how these two ideas interact with each other. to inference the state of patient in u.s. china policy. as you can see i have a relation energy in two types so i need one -- you have a view on relation energy. and on the other hand you have chinese view of relation energies. so it can actually include -- kind of a code confrontation and di

the south china sea and east china sea are very central to china's long-term strategic ambitions. in order to secure ssp ends, assure the projection of its feature amphibious maritime power projection fleets into assure access to deep space, china needs to -- and to assure access to deep space, china needs to control the south china sea. here is a depiction from a chinese source of how controlling the spratly islands group assists china's production of power. -- projection of power. in the east china sea, control of the senkaku daiyukai to threaten another island group, japan's ryukyu islands, whereas to control the spratly islands would control taiwan's axis from the south. china and russia is pitted against the united states is gaining steam. i believe it is at the end of may, china and russia held their first missile defense command post exercise. when you cooperate in missile defenses, you must immediately question whether they have also contemplated cooperation in missile offenses. in 1969, the united states signaled with its nuclear forces against former soviet union to prev

so china isn't the only one by far but china took the most drastic step. india had a sterilization program for a time and for that india and china received gold medals from the european union. >> host: it sounds like the rest of the world didn't immediately recognize the negative consequences that could come about. >> guest: i think a lot of the world still doesn't recognize the consequences. there was immense support because there was concerns we were overwhelming the planet so it was like china is taking this step, good for them. that means i can run my washer and drier with more ease of mind. and for a long time, china maintained their population policy was being run without being coersed but that is non-sense. for a very long time, though, that was the belief for an a lot of people. they didn't know or didn't want to know. and you would have a lot of people speaking out in fear of the one-child policy. in the course of the book i talked to some to this day, environmentalists, feminists, who still say we should have something like a universal one-child

china policy. i conceptualize the relationality -- you have this american western view and on the other hand, you have a chinese view and the cost includes the the confrontation occurs with different views of each other. this is the relationality i found among nationstates that reflects the process in each state and reflects certain values. that links certain groups of nationstates in the wrong one and prior to community practices newcomers inys the this case, in this case, china, interact with the established community and its rules. between 1972, nixon visits china and at night teen 78, normalized relations that the united states changed its long-standing policy of isolating china to one of engagement, integration and assistance. this changei think represented an effort on the into ane to bring china existing community of actresses with the expectation that china would accept those practices and act accordingly so as to maintain a relationship with the entire community. that is the american you.

south china sea. do you agree with that? admiral mcdevitt: and so what would senator mccain have preferred we do? shoot them up? think those ships? blow up those dredges? i mean, come on. scott: mcdevitt says the rise of china' right around the corner. admiral mcdevitt: so they're going to have the range of capability just like the us will have except it will be smaller. but because the rest of world's navies have gotten smaller, it will be the second most capable navy in the world. scott: last month, president obama called for china to stop the construction. president obama: i reiterated the us will continue to fly, sail and operate wherever international law allows, and we will support the right of all countries to do the same. : china's bluster won't interfere with the u.s. navy's ongoing patrols of the area. admiral mcdevitt: there's only one way china can prevent us from doing that and that's if they try to use force and shoot at us and try to attack us. in short of that, we can go where we damn

by north america, europe, and china. if you cover these three market areas, you're talking about 85% of sales, and china is quite stable. the north american market is quite stable. weope is growing because have a growth story in the southern part of europe, italy, spain, where we see double-digit growth rates. angie: you are a sales and marketing guru on audi's bored, but the headwinds have been great, especially after that diesel scandal that cost operating profit in 2015 to drop 6.1%, do you think a chinese consider will punish audi for that? how are you trying to overcome it? audi be honest, the brown -- brand audi, the only growing brand is audi in the u.s. you see the diesel story impacting short-term, but overall, it is not impacted by the diesel story. angie: do you think the consumer has forgotten? >> not really. they trust audi. i met in november when the story came up last year some u.s. customers and they said, i am happy with my car. i really love my car. i believe you will fix it. so they really trust the br

we bring people into china and out of china. therefore we can greatly coexist with all the mobility services around. carolyn: and you have been able to do that efficiently? >> we are currently working in the background secretly. don't tell anyone. we're launching into cities in the apex market. we have already launched two dozen of those in the last weeks. and we continue to do so because you want to serve global client base. emily: bloomberg carolyn hyde with jens waldorf. things you need to watch on wednesday. this is bloomberg. ♪ emily: chinese internet giant is set the post second-quarter results on wednesday. three things we are watching. super cell details. online games, their biggest source of revenue and they just made a massive debt on its future success. they agreed to pay $8.6 billion for the controlling stake in the maker of clash of clans. they deal is still being finalized but we could hear more about what investors will -- when investors when feel the impact. advertising is the number two contributor to the top

china into everything we're doing people are increasingly worried about china's aggressiveness for the u.s. in the head japan australia and others to be an together and don't think a decade ago we would have considered doing joint military to discard the idea that is now happening much more frequently it is important to even though china makes it difficult and especially on the military issue that is the hardest thing to resolve. and one of the things that he said that he is quite proud of as a great initiative to persuade the p la that the chinese sailors need those of other nations

the imf, the mission chief for china, was speaking on article 4 on china. phone or abilities in the economy -- vulnerabilities in the economy are rising at a dangerous trajectory. the imf did say they are confident china will rise to the challenge. yvonne: what about these shadow credit products? >> these are high yield, high risk. aboutave a yield of 11-14%. the return is high, but the risk is as well. the imf is worried defaults on these could lead to big liquidity shocks in the system. were --four japan, they four japan, they were operating on some unconventional policies. called an income policy. a lot of economists are not really a fan of this. problem. a different deflation at the moment, they need wages to rise. a lot of analysts saying this is not going to work. one of the people in charge of the policy for the white house back in the 1970's, he is a senior fellow at the brookings institution and says there is no way a company will take on more cost and push wages higher. it is unlikely to work. the imf's answer to helicopter money. yvonne: qs so mu

with china. are you sensing that pakistan is retreating from the forefront of foreign policymakers meant that beijing and new delhi for how do you see that fit into the three countries you're talking about today. >> thanks. you and i go to the same dialogue. we might have a similar view on this. i do think that india is working up strategically where they used to be really preoccupied with their neighborhood, worried about pakistan, to some extent china, but now they see themselves as having a global role and someone has been much more prominent on the world stage. yes obviously pakistan will continue to shape a lot of indian thinking because the terrorism comes from pakistan. the nuclear weapons are still a concern, especially the new ones they are building but it's not predominate. more and more when we talk to indian government officials, they want to talk about china and they want to talk about the world beyond asia and that is a positive thing we should work on. >> we have come to the end of

and in china. i should add that the majority of the money we have raised is actually going to be spent in the u.s. and europe. we'll be looking at additional sources of capitol for china. emily: why is that? duncan: china at the moment as a lot of capitol chasing good products. with our partnership with the joint venture that we have now funded in china, we can raise more capitol into the entity itself. emily: you have g.g.v., big on expanding practices in china, what makes you think you can succeed in china when so many other u.s. companies have failed? duncan: that was the whole intention of setting up the joint venture. we looked to tackle that market by ourselves or a joint venture. we chose the joint venture because the pearls of u.s. companies going into china has been well-documented. h and a is more than just a capitol partner. it's a conglomerate that covers across real estate, technology and capitol. with these different divisions, we feel we have a great partner. david: what i find inter

rishaad: what about china? >> including china. the picture is mixed, and indeed our potent folio management attitude to china is mixed. the negative story on china is debt. reliant onll then the stimulus package in the first half. the good stuff we has spoken about before, the transitions up theving further manufacturing curve, shifting to services, insurance, internet. rishaad: it is a crowded space again, isn't it? >> yes and no. on oure ourselves research and think we can find good companies in those areas more thanrisk is accounted for by the valuations, so you can get good companies at sensible prices still. rishaad: let's go to japan now. it has been dominating the trading week. and we got this lukewarm response. >> we did not get helicopter money. rishaad: we did more or less in some ways, all but name in fact. a boj member saying this is not helicopter money. >> it was certainly an expansion of quantitative easing. the trouble is that monetary stimulus seems to have stopped working, not generating inflation in japan, has n

this comes after china's claim to most of the south china sea was invalidated. hsbc said to report second-quarter earnings. where having a look at the implications of brexit. what should we be expecting here? >> we are getting results at noon hong kong time. we are expecting a positive set , some disappointment in the recent quarter. if you want to look at consensus estimates on your bloomberg, go to the hsbc stock code. it will bring up this. we are looking at $4.5 billion in the second quarter, operating profit. billion, so14 falling from 14.9 7 billion the same time last year. net income, 3.5 billion, also coming down from that $4.25 billion last year. says capital markets and the rate environment look increasingly challenging for hsbc. they will be scrutinizing progress on cost cuts targeted by it next year and that $290 billion reduction of risk assets. targeturn on equity above 10%, depending squarely on these cost cuts and whether we see an acceleration in revenue growth. analysts are looking at growth at well. hsbc's aggressive dividend policy could be p

that may have already gone to china or may soon go to china. >> so that's why there's a much greater fear in failing to catch chi mak. >> in 2004 the chinese didn't have a strong navy capability. they were really a brown water navy. a navy able to operate in ♪ [tires screeching] ♪ [tires screeching] ♪ experience the thrill of the lexus performance line. because the ultimate expression of power, is control. this is the pursuit of perfection. and i didn't get here alone. there were people who listened along the way. people who gave me options. kept me on track. and through it all, my retirement never got left behind. so today, i'm prepared for anything we may want tomorrow to be. every someday needs a plan. let's talk about your old 401(k) today. t-mobile's coverage is unstoppable. we doubled our lte coverage. and, with extended range lte, it reaches farther than ever. now you can stream video and music free in more places without using any of your data. from skylines to coastlines, out in the country, deep in the city. we got you covered. 311 million americans and counting. and

new about china's data. in 2016, a few things have happened which have added to the concerns. , wetly, the first quarter had year on year and quarter on quarter growth rates for gdp that did not add up or make any sense. ane recently, there was index which was getting a , awing amount of attention business survey that painted a gloomy picture of what was going on in china small business sector, and publication of that index was canceled suddenly with no explanation from the research institute behind it. if anything, doubts about china's data have increased so far in 2016. rishaad: tell me what is the alternative. so many people come out with them. what have you been looking at? curate at we do is we set of eight alternative indicators which we call the china animal spirits indicators. what they do is provide a comprehensive and consistent look at what is going on in china's economy through the lens of independent and low profile data. we are looking at things like electricity output, same-store , throughput

china sea. japan controls the islands. the government maintains that they are an inherent part of japan's territory. china and taiwan claim them. >>> officials in seoul have announced one of the highest profile defections in years from north korea. they say a senior diplomat in london has fled to south korea with his family. thae yong ho had been serving as deputy ambassador at the north korean embassy in london. a south korean spokesperson said on wednesday that thae and his family are already in the country and under government protection. the official declined to provide details on the timing of thae's arrival. the incident is the latest in a string of defections from the isolated country. earlier this year, over a dozen waitresses at pyongyang-run restaurants in china also fled to the south. >>> indonesia is stepping up its crackdown on illegal fishing in the south china sea as chinese ships are operating in its exclusive economic zone. the indonesian government installed a new monitoring fa

china's big three energy companies suffering, petro china cnooc saw itsand first ever loss. the glut continues and supplies are low. juliette: we are seeing the shanghai and hong kong markets following that downward trend. certainly flat on the open. keepingcks we will be our eye on, sinopec seeing its profit drops, and prada sales sliding. back into theming retail space, moving higher. , downa's seeing losses .1%. evolution mining has completed an offer at $2.22 a share, raising 331 aussie dollar's, down 8%. a large block trade of crown shares crossing through early this morning. japan is where we are seeing a lot of the positive movement coming through, up right over 2%. governor kuroda's comments giving a good upside boost. the fact we have seen the u.s. dollar strengthened and put pressure on the yen, a nice boost to exports. standout performer. japan, it is quite a down day. the kospi is off by .3%, the worst-performing currency, so some selling pressure in that index. also, weakness in taiwan, off by .2%. malaysia slightly up on the open. up by .4%. some weakness in so

south china sea. kishida also spoke about the increase in activities recent will in the east china sea. the rule of law at >> translator: it is important for the international community to work together to maintain the rule of law at sea. >> yasay expressed his willingness to work with japan to urge china to abide by international rules. >> the philippines share the same concerns expressed by the foreign minister. >> yasay said the international community must never compromise in urging china to respect maritime law. kishida later held talks with the philippine president, rodrigo duterte, who took office in june. the meeting is the first between duterte and a japanese minister. kishida told the president territorial disputes in the south china sea should be resolved peacefully according to international law. he said tokyo supports the philippines' position on the issue. kishida also discussed china's activities in the east china sea and sought the philippines' understanding for tokyo's position on tha

south china sea. kishida also spoke about the increase in activities recent will in the east china sea. the rule of law at sea is fundamental. >> translator: it is important for the international community to work together to maintain the rule of law at sea. >> yasay expressed his willingness to work with japan to urge china to abide by international rules. >> the philippines share the same concerns expressed by the foreign minister. >> yasay said the international community must never compromise in urging china to respect maritime law. kishida later held talks with the philippine president, rodrigo duterte, who took office in june. the meeting is the first between duterte and a japanese minister. kishida told the president territorial disputes in the south china sea should be resolved peacefully according to international law. he said tokyo supports the philippines' position on the issue. kishida also discussed china's activities in the east china sea and sought the philippines' understanding for tok

china sea. that's of concern to five other naon territory in the waterway - including u.s. ally the philippines. more than a third of worldwide maritime traffic flows thorough this region, making it a crucial passage for trillions of dollars in commerce annually. scott thuman examines the dangers of the green lagoon. >> only a few years ago, these little reefs and sand cays in the spratly islands, off the coast of the philippines and south vietnam, were largely uninhabited, wanted only as fertile fishing grounds. today, they are converted to military outposts equipped with runways and sophisticated radar towers. >> china's intent to militarize the south china sea is as certain as a traffic jam in d.c. >> admiral harry harris jr, is head of the us pacific command, he came to capitol hill, to raise concerns about china's intent. admiral harris: in my opinion, china is clearly militarizing the south china sea and you'd earth to think otherwise. greg poling: you're seeing an entirely new island, whe

the china mandate may not just be to grow within china, which is obviously great. the china overall mandate long-term is you will see an increase in outbound investments from china for companies that are global, that have lots of scale, a real business model that will be long-term sustainable. that is what miteno and chairman zhang want to do -- build a global business, not just a china business. the goal is to not only add china as a market but double down on u.s. and european challenges. ramy: you are a serial entrepreneur. what is next? >> my plan is to continue with these guys. that was one of the primary reasons when we had several options -- we had options from the u.s., europe, and china. the highest u.s. bid was about 20%. the highest u.s. bid was from a well-known p.e. fund. p.e. funds would want to discount the value they could givebecause they need to make upside on their exit. from a value standpoint, we thought we were at the same point. the primary differentiator was all these different value adds in terms of being able to access additional markets, g

worries about cam china? >> not too much. know is that they asked for a we filing earlier in the year, in june. they wanted to have an in-depth look at this. security is key. this was an opportunity for the many agencies that make up the process to have an in-depth look at food security as far as china and coming out into the world. rishaad: tell us about washington's attitude to investment in china. it is an uncomfortable relationship when it comes to this. >> it really is. perhaps agrochemicals is ok. technology, in some sense, is not. we have seen semiconductor deals, led lighting deals. food security seems to be ok. may be getting the green light. that is the feeling, anyway. >> it is what everyone was worried about. rishaad: thank you. here is a little food for thought. approach on novel bottles of sunscreen. it claims it smells like chicken. success andwas a supplies ran out a few hours after it appeared on its website. in june, kfc hired george hamilton to portray colonel sanders and commercials. there you go. still ah

what is your thought on how the china --on how china views that? china and the u.s. have tremendous influence on each other. it is not the case that the u.s. has a lot of powerful chips we can play. a number of the things we just heard. china is building a massive military fortress in the middle of the south china sea. that is not true. china is building out islands in the south china sea and putting some military resources there. it is not a massive fortress. say that in the event of conflict, these assets would be almost instantly taken out. he also just said that they are not allowed to build these. that is also not true under international law. he said that they do not respect our leadership and they do not like us. this is a much more complicated issue. the chinese in general, while nationalistic are not anti-america but they are very pro-china. as anyone that has been there can tell you, this is not an anti-american country. there is considerable worry about what the u.s. is doing to limit china. that is a form of respect. host: robert daly is just back from a

we have consumerist china and it is time for national security day china. i think of it this way. alibaba is dominant in e-commerce today and sometimes has 70-80 percent of the market. the area he has chosen to expand to, the biggest, are finance and media. both of those are sectors where the state plays a very big role. i talked about jack creating this triangle with finance and logistics and e-commerce. ali pay is a currency for digital things in china and essentially for everything. when jack launched a fund saying if you have money in your account you can put it in a fund and we will manage you and pay you 2% more than the state banks. they called it leftover treasury. a hundred billion went into that thing immediately and the banks were scared. they control trillions of yen and never experienced competition. they have been pushing back. if you go the bank, they will say that alibaba company is a startup. the banks are fighting back. same in media. a lot of journalists are quitting. the way jack jokes, and i think the 78 quotes he makes it is probably this one. i think you hav

it's on a steady increase in the east china sea in south china sea and the big move by china would be to do and proclamation. you will see it first on a mti. that would be a big move, the 4g204 china. very self-defeating and could be before the election, but we are moving largely indifferent directions picked the administration in the philippines and others are remaining calm and not to victorious about the decision in the hope to get traction going, but i hope-- he talks about the tract in the idea that rising power seems to fight and if you want to avoid that you need to agree to this new model and make concessions to china. depressed" except that. the present will talk about the things amy said it will come out with essentially no resolution in my view and then it depends on how much risk he wants to take and how firmly we are about freedom of navigation operations and continuing to work with the philippines, but i think despite what he is saying his government is pre-much on the same tract and i think amy would agree with that. >>

and china. >> the answer is yes. when we help the clients we often tell them it is an enormous country with very different standards and some of them are on of pro growth platform to tell people you want to think about four or five other indian states. the with those high seas since that became a nation and that has been over 220 years of the south china sea that is probably the most viable with china's increasing assertiveness what of what - - device which you give up president well not provoking china. >> >> they have done so much work it. >> with bad u.s.-china dialogue to say the problem is the united states has framed as a navigation issue. is that framing something as a sovereignty issue? because you want to go down in history with that strategy? so we have to insist on international standards what we are doing with maya understanding we failed to do this we are trying to make up for lost time. you don't need to be provocative but it does need to be done so to have in place communication channels of concept avo

hear from soho china. this is bloomberg. ♪ rishaad: you are act with backnding business" -- with "trending business". 10 send coming out with good numbers. coming out with good numbers. at soho china, a massive 340 4% surge in first-half profits. first-halfge in profits. company has been riding a wave of asset sales. >> we are taking advantage of the current market. a lot of instance to touche institutions are holding cash. what are you going to be funds?ith those bonds -- >> we will pay special dividends. >> fascinating. about the numbers, revenue. decided to dost the share office product, it was a new phenomenon that came together with the shared economy. uber, homesxis like we were looking at what is the share office. around and thought share office will probably work in china. opened one center in beijing and one center and shanghai a year and a half ago to test the market and how people respond. encouraged by the warm welcome by the market, so todecided three months later do it and all of our buildi

the china mandate may not just be to grow within china, which is obviously great. long-term isandate you will see an increase in outbound investments for companies that are global, that have scale, a real business model that will be long-term sustainable. that is what mcdonagh and chairman zhang want to do. the goal is to not only add china as a market but double down on u.s. and european challenges. ramy: you are an entrepreneur. what is next? >> my plan is to continue with these guys. that was one of the primary reasons when we had several options -- three options from the u.s., europe, and china. 20%.ighest bid was about the highest u.s. bid was from a well-known pe fund. funds would want to discount the value because they need to make upside on their exit. from a value standpoint, we thought we were at the same point. the primary differentiator was all these different value adds in being able to access additional markets, get access china,edible talent in be able to access the capital market, and look at deals of various sizes. -- we the next few years, have co

petro china seeing profit slump. veteran investor mark moby says helicopter money will be that boj's next move, but may not have the desired effect here and follow me on twitter at @rishaadtv, and use #trendingbusiness. a lackluster session in the u.s. , slightly to the downside. here is david. we are not seeing a lot of price action. equity prices, volume, orex, the dollar on the downside. equity markets mixed, volumes not quite there. japan, but a pickup in australia. in china, we will be watching reaction there. the banks report later on. hp reported last night, very disappointing. how theve a look at tech and computer makers are doing. it was disappointing. you look at sales for hp, personal computers came in flat, printing revenue declined 14%. that is on top of 16% last quarter. sector inook at the taiwan, you are a competitor to hp or eight supplier to hp. have a look at some of the decliners. have a look at some of the gainers. decliners are doing this, 1.7% there. you get the picture. that is the story so fa

and in china. i should add that the majority of the money we have raised is actually going to be spent in the u.s. and europe. we'll be looking at additional sources of capital for china. emily: why is that? duncan: china at the moment as a lot of capital chasing good products. with our partnership with the joint venture that we have now funded in china, we can raise more capital into the entity itself. emily: you have g.g.v., big on expanding practices in china, what makes you think you can succeed in china when so many other u.s. companies have failed? duncan: that was the whole intention of setting up the joint venture. we looked to tackle that market by ourselves or a joint venture. we chose the joint venture because the pearls of u.s. companies going into china has been well-documented. h and a is more than just a capital partner. it's a conglomerate that covers across real estate, technology and capitol. with these different divisions, we feel we have a great partner. david: what i find inter

china will be there. will be interesting to see if great britain can keep their winning up and win meddles when they go to rio in 2016. >> brown: crist teen brennan. enjoy yourself down there. >> i will, thanks. >> woodruff: now to our >> ifill: on the newshour online right now, a syrian woman living abroad was inspired to help when the revolution began. concerned for the women in her country, she has helped organize literacy classes, create women's centers and more. learn how her organization strives to give women a safe place, on our web site, www.pbs.org/newshour. >> woodruff: and that's the newshour for tonight. i'm judy woodruff. >> ifill: and i'm gwen ifill. join us online, and again here tomorrow evening. for all of us at the pbs newshour, thank you and good night. >> major funding for the pbs newshour has been provided by: >> xq institute. >> lincoln financial-- committed to helping you take charge of your financial future. >> bnsf railway. >> md anderson cancer center. making cancer history. >> a

in china. china is becoming a real market for us. as recently as when we were selling ray donovan, we sold it in there for pennies and now, there is a real real interest. it is the first major sale we have made in china. it is significant. emily: can you win the world without china? can netflix dominate without china? david: here is how i think about china. china has always been a terrible market for american television. piracy is rampant. you know, the movie studios figured out how to do stuff in china five years ago. now they are making real money and i expect there to be a lot of growth there in the next five years. and i think we have spent a lot of time talking about china. emily: what about apple? what do you think is apple's future in television? ♪ emily: how did you get to hollywood? david: i just drove here. emily: in a volkswagen beetle? david: in an oldsmobile. my grandmother's oldsmobile. i came out soon after college. it was actually when i was in scotland. i found a bunch of hard-core film geeks who would have given t

t the top line what is china saying about that? >> that is exactly what china is saying. chinese tourists do spend more outside of china than foreign tourists. the question is the pace. reported chinese tourists traveling abroad spent $100 billion outside of china. that has gone up to $300 billion. it's a spectacular rise. that's almost equal to the fall in chinese spending on commodities. matt: that is huge outflows. does that worry the government? that sounds like they are trying to get their money out of chinese assets. >> that's the most likely explanation. some of the increase in tourist spending is capital outflows. there is an offset. the other implication is china is running a beer and -- bigger current account, a goods and services surplus than is reported so it has more capacity to sustain. we have a chart that explains why it is suspicious data. they are showing the numbers china claims don't quite add up. >> there is. . in the u.s. data it is up by 50% which is reasonable. there is no doubt there has been a stronger increase in japan. what the big discrepancy

kong opening positively, china not. markets aater china bit of divergence here. data coming out and about half an hour. , butxpected to hold steady fixed asset investment could disappoint. shanghai lower by 1/10 of 1%. stronger yesterday, significantly lower today. elsewhere, what a handover from the u.s., that trifecta of all three indices closing at record highs. a record high for new zealand this morning. elsewhere, the nikkei 22 five leading gains, up 9/10 of 1%. catch-upshares playing , underpinned by that weaker yen, continuing to weaken. , keykong up by 9/10 of 1% earnings coming through. hong kong holdings and property, we will get to those in the second. phillip raines -- philippines up by .50%, but malaysia gdp later today, up by .25%. singapore looking flat at the moment. a strong surge and austrian energy stocks, but pulled back some of those gains. look at earnings reports coming through. these are the market movers. hong kong holdings up. hong kong property seeing downside. sydney, gains when it comes to that energy space. falling last after week. t

it is true for alibaba in china as well. there is the endless question of the government and internet and i tend to thing of it not just within the country but on a global level. these tech companies have huge power and influence and of course they have to consult. the first question, the competitors, j d, i did the look around on my phone which is a way to hook up but also connect with friends. i can see right now in washington, d.c. there are looks like hundreds of people, including chinese students but others like ourselves who use the app for their daily life. in china, which you cannot do here, you can go out without your wallet. this is your digital wallet. i could send you money. location. everybody in this room, we could actually put ourselves on a map. say we were disbursed in d.c. and we could converse on this one point. there is aug

the south china sea and east china sea are very central to china's long-term strategic ambitions. secure ssp ends, assure the projection of its feature amphibious maritime power projection fleets into a ssure access to deep space, china needs to -- and to assure access to deep space, china needs to control the south china sea. here is a depiction from a chinese source of how controlling the spratly islands group assists china's production of power. -- projection of power. in the east china sea, control daiyukai toku threaten another island group, japan's real good islands -- whereas tods, control the spratly islands would control taiwan's axis from the south. china and russia is pitted against the united states is gaining steam. i believe it is at the end of held theirand russia first missile defense command post exercise. cooperate in missile must immediately question whether they have also contemplated cooperation in missile offenses. in 1969, the united states with its nuclear forces against former soviet union to prevent the soviet union from using nuclear weapons against chin

on the back of them selling their china business to their biggest rival in china. david, what about the people like you and me who may not opt into this on the way -- right away, who are on the road and did not choose to be driving next to a self driving uber? >> that is related to the question that has been running through my head. they better hope that nothing goes wrong here. it reminds me, first of all, tesla was claiming they had more data about self driving because they have all these cars on the roads. maybe this is uber's way to jumpstart. look at what happened when tesla had one accident that was probably quite predictable. these overly valued companies, whether public or private, they almost had this pressure to prove they can do these things. that means they are in a very perilous position if they go wrong. i think it is pretty dicey to be doing this so early. from everything i hear, they are not going to get those two people out of the front seat any time soon. if they did, they might be inviting disaster. emily: coming up, we will have more on autonomo

we talk a lot about china and ,oing business with china western companies, u.s. countries in particular in china. you spent 17 years and have had a lot of success with working with the most senior leadership in china. other companies have had a tougher time. what advice do you have for others who want to do business in china? you know i have thought about that question. i have been asked it a few times. it is not an easy answer, because a notch or any two situations are the same. as a knownchina entity in china, not only a trusted brand, but a trusted company. it took a tremendous amount of communication, candor, patience, perseverance, tenacity. there were many times when it would have been easier to fold our 10th, it will take too long, too hard, but we did not do that because we truly believed in the market and believed in how our product would perform in the market, so we never back down. we created a tremendous rapport with not only our partners, but multiple segments of the government from beijing to shanghai, and ultimately build up a trust with a believe

inflation that could come out of china? china hasear is that been and massive inducer of inflation. last time they were positive was in 2012 when inflation in the u.s. was 3% to 4%. china has been basically exporting deflation to the rest of the world. china will go to positive pbi and become the next importer -- exporter in inflation. it is clear that it is not a perfect coalition. the monetary policy should leave the u.s. monetary policy, china being the bigger macro player. year. blue line is the 10 this is parallel, we have not seen these kinds of crossovers many times. how does it actually work? policy will look like coming off a? look at whyave to ppi is coming back up and that is because the chinese authorities are allowing the x x capacity to be reined in, there are allowing -- you see state owned enterprises facing at a bare minimum no more support but also increased competition. china is improving at the margin. that is why we see the price going up. the rest of the world posterity will -- china will not be able to have lower prices. thatans fx to valuation china has done

in china fewer than 50,000 of , its listings are in china. on the other hand, airbnb's biggest chinese competitor has 400,000 listings. airbnb is not giving up. they have teamed up with sequoia china to expand into the country and is planning to hire a ceo for its china business. joining us now live from tokyo is our bloomberg tech editor and still with me in the studio is roger mcnamee. first of all, they are not exactly the same company. they have different business models. but talk to me about airbnb's chances in china. are the odds as much against them as they were with uber? guest: you are right. they are somewhat different businesses. they manage a lot of its properties and behaves in some ways more like a hotel chain. as we know, airbnb wants people to open up their doors and living rooms and extra property so people can stay. one way to think of it is airbnb's interest in china is twofold. it wants to open the inventory of properties available to people going into china but what is critical in terms of airbnb having a presence is outb

china sea. i am sure that president obama will reiterate the u.s. views that this ruling is a final and binding. but at the same time, we also see it as an opportunity, a turning point for using more diplomacy to try to resolve some of these disputes. another topic will be north korea and the need to enforce u.n. sanctions against north korea and its recent behavior. also, there will be more discussion than before on the issue of human trafficking and migration. finally, in addition to these summits, president obama will be meeting with the 10 asean leaders as a group, and there will be limited time to have other bilateral meetings with some asian leaders. i am told he will not have much time, so i do not think there will be a lot of bilateral. of course, he has met with a lot of southeast asian leaders recently. he was in vietnam in may. a member late last year. the one southeast asian leader i'm pretty confident he will meet with is the new president of the philippines, elected in june. he is

it's on a steady increase in the east china sea in south china sea and the big move by china would be to do and proclamation. you will see it first on a mti. that would be a big move, the 4g204 china. very self-defeating and could be before the election, but we are moving largely indifferent directions picked the administration in the philippines and others are remaining calm and not to victorious about the decision in the hope to get traction going, but i hope-- he talks about the tract in the idea that rising power seems to fight and if you want to avoid that you need to agree to this new model and make concessions to china. the operations, the caliber of weapons on the chinese side are on the increase in the east china sea into the south china is she. the south china sea. you will see it first on a mti, our website. that would be a very move for china. -- andself-the feeding it could be before the -- a very .elf-defeating wisely, the philippines and others in the hope they can get some traction going. i think what president xi ping -- if youthe idea want to avoid that you need to a

that is both directions -- business into china and china into the u.s. oliver: when you are looking at those countries and sectors, you mentioned revenue growth, but there are certain metrics you look at differently in terms of gauging the safety of investing in some of these assets? pat: no, we don't necessarily have a safety gauge we look at. there is not the number we would reflect to suggest what that might be. you can always look at currencies, obviously. currency is a good gauge for sentiment. we don't really have any metric that tries to get on that issue. joe: what of the impact of politics on the future of the sort of financial integration, obviously, blasting china is a big thing on the campaign trail in the u.s. this year. there are questions about the new u.k. government's eagerness to have the same financial relationship with china as the camera and administration had. how do you -- as the cameron administration had. how do you see this affecting business? pat: if you see this through the lens of a client tried to do business in china, they

initially china was not in but china came in early after two or three meetings. and you want to have free trade in the asia pacific including all these countries but honestly speaking, i think even with a very great ambition, that's too hard to do straight away because if you wanted to have japan china, america, and all the other countries in just the first three would keep you busy reconciling the difficulties before the rest of us got a word in so it's not going to happen but you do want to move and you can move piecemeal and then it's messy, it's overlapping, but it covers the ground and hopefully our grandchildren or children will have the wisdom and basis on which to take the next step and rationalize simplify, expand and make a less imperfect cooperation. so the t.p.p. is one big part of what's happening in asia pacific but there are other pieces, as well. there's this thing called a regional comprehensive economic partnership which covers a lot of the countries on the western side of the pacific, including china and japan and korea and china and korea are