imports the china and over the south china sea. we have seen the offshore yuan versus the dollar trade lower following these tweets, and the question is whether this is more empty rhetoric from donald trump or whether he will be taking a more confrontational line with china. >> very much the word out of beijing is that he is not president yet, and perhaps he is being badly advised. they are doing everything they can right now. >> america's four-decade one china policy may be put to the test with president-elect donald trump, saying no one can tell him who to talk to. this comes after the uproar after his phone call with the president of taiwan. he says his attitude will depend on securing better trade deals with beijing, and the one china policy he says may be china's policy, but not america's, unless he can make a deal. what is the buzz on the ground in beijing as to how china is likely going to react here? >> there has been no official comment so far, but we have had an indication from the state media as to how some here feel. th

positive for china. exports exceed imports, that is a fact. a lot of is also generated from the service industry, so in the long run, china's economy looks good. and there are a lot of chinese companies who are looking overseas to acquire businesses, but they keep getting shut down by regulators, including yourself. what is the impact for chinese companies in the future? how do they fix this? fair.needs to be china welcomes foreign , so other countries should also welcome chinese investors. >> this is a massive undertaking, the transition of the economy, but you can see, the research side, the consumer side, the tech side is going very strongly. the chinese firms are beginning ageinvest in lower-w economies in the same way that other businesses used to invest in china, vietnam, myanmar, africa, and effectively replicating the stage of development they went through and other countries and building infrastructure to create trade flows, trade corridors. as ever when you're trying to do something very ambiti

china says taiwan is not its own country. china says taiwan is part of china. we decided in the 1970s, to recognize one china, just one chinese government with its capital in beijing, that was a change for us. we changed course after decades through great diplomatic pain and achievement, we made the decision to acknowledge that the chinese government is the one and only chinese government. we do not maintain separate diplomatic relations with taiwan any more. not since the 1970s. but today donald trump called and spoke with the president of taiwan. and then released this statement, announcing the call as one of his calls with world leaders today. if you don't follow this stuff, a call to taiwan, a call between the president-elect of the united states and the president of taiwan, it may not seem like the biggest deal in the world. hey, it's just one phone call, why is this a big deal. this is something we don't do as a country. this is something we haven't done on push, very carefully for decades. this is the first time a president-elect of the united states has

china is firing back. an editorial in the people's daily -- that's the official newspaper of the chinese communist party -- and it comes with this warning to trump, writing international relations 101. china is an independent sovereign state with its own national interests. as a sovereign state, china sets its own policy and can retaliate if necessary. so what is donald trump doing? right now we're get something very mixed signals from trump and from his inner circle. just yesterday, trump's top aides crisscrossed the airwaves to insist that his call with taiwan's president was not a provocation with china. >> chuck, this was a courtesy call. >> nothing new should be read into it? >> well, i don't think so. >> does this signal a change in policy or was it just a phone call? >> it was just a phone call at this point. >> the folks inside trump's transition are leaking the opposite view. "the washington post" is reporting that trump's call was an intentionally provocative move, and it was planned weeks ahead

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 these 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

he strengthened china? >> well, china is the largest trading nation in the world so tpp had 12 countries, not including china. so it seemed strange the chinese -- the transpacific trade partnership excluded the largest trading nation in the world. >> because it was strategic to offset china. >> well, u.s. and china are partners but competitors. we must remember that. so countries in the region including korea, australia, japan, the philippines which have been under the u.s. security umbrella perhaps have to rethink whether they can count on the same level of reassurance from the united states in terms of. >> that's created anxiety. >> well, they had to rebalance their relationship with china and the u.s. >> there's a global supply chain these days. couldn't china in the event of the trade war we've been talking about couldn't in effect stop production of the iphone tomorrow? >> it could, it would hurt apple first and foremost. you can imagine what that would do to inflation in the united states. what that w

china relations into sharp focus. it was the first time since 1979 that american and taiwant ease leaders have spoken in a broke from practice. it was a routine congrat la tore call but on sunday night he rit sized china economic and military policies in a series of tweets. dm china a front page editorial in the daily warned the united states risked a confrontation with beijing. the obama administration said the national security council officials spoke with their chinese counterparts to reassure them of u.s. commitment to the one china policy. joining me now is ian bremmer, the of the eur asia group, a global political risk consulting firm and ripped haass, the president of the council on foreign relations. his fourth coming book is called guess what. am pleased to have both of them here. so i begin with you, richard. how serious is this? how did it happen? and what is going to -- how will it play itself out, is where i want to go in this? >> it's pretty serious in the sense that the call as you said broke, i would s

east china losing the war? —— is china. no matter how bad it is, we can't say that china is losing the war. that there just tell you, it is tremendously bad in beijing and surrounding area. over 400 million people have been affected. my own personal friends when they go to beijing are experiencing in tamil bleeding for no reason —— internal bleeding. and they have gone back to shanghai. we have spoken to you almost every year for the past three yea rs almost every year for the past three years and you are very supportive of the chinese government and their measures to basically improve the pollution problem. what more needs to be done? they need to shut down coal—fired power plants. they made an announcement to shut down over 20 coal—fired power plants. the equivalent of all of united kingdom and spain's coal capacity combined. they need to have more monitoring and transparency into pollution data. in 2015, at the beginning of the year, they announced a strict environmental law which not only has transparency but gi

faith in china. sophie: what are we looking at? >> we saw emerging-market currencies get hammered in response to the fed more .ositive first rate hike the next step according to a number of analysts and traders are looking at china. can they, and will they, have the willingness to continue to support the yuan instead of letting it depreciate faster? reservesthe drop in either chinese, they have been depending -- defending the currency. $279 billion of their reserves depleted, down only $3 trillion, but down from $4 trillion. rishaad: a quarter of their reserves. stephen: there is concern. now china's desire to see the yuan fall is critical to providing, preventing a bigger flight of capital out of china in anticipation of further renminbi weakness or one-off. it exacerbates by what trump has been saying, labeling china's currency as [indiscernible] he wants a stronger you want, but he is also talking up a stronger dollar. which one is it? rishaad: with the fed, when they act, they reverberate globall

and china over the u.s. gettingown, perhaps traders some reason to pull back amid the dollar's strongest quarterly rally since 2008. net long positions on the bloomberg dollar index increasing. if we look at dollar-yen, those are at their highest this year after a surge in the spot rate. a little bit of pullback in the dollar today, money moving into that fate haven that is the yen. fct data, a planned production boost from libya stalls and investors are the most optimistic on oil since the slump began 2.5 years ago. that is looking at net long. longs,unds adding to wti goldin nadal drums. prices have fallen for six straight weeks. hedge funds have cut their bets on a rally to be lowest since february. manus: thank you very much. great round up on what you can focus on in the market. let us focus on bp. they have focused their relationship with abu dhabi by swapping $2.2 billion of their own stock for state in one of the emirates largest on-shore oil conglomerates. anna: signs of growth next year following m

is part of china. it's not just taiwan according to president duerte, trump said that duerte is going about his fight against the drug lords, quote, the right way. that's a very violent fight. the same president duerte who also, by the way, insulted president obama. washington's been critical of the philippine government's execution of drug dealers without the benefit of judicial proceedings. so let's bring in the cnn politics senior reporter and gordon change, daily beast columnist. trump's call from a leader of taiwan, really a breech of protocol here or was it just a mistake or is he subtly trying to send a message to china? what's your favorite on this? >> that's the answer to that question we don't really know, martin. it's certainly a clear breech of the protocol and practice of the way u.s. relations with taiwan and china over the taiwan issue have been conducted for 40 years. i think it's too early to say yet whether donald trump is previewing a new emphasis and approach in the u.s. policy towa

imports the china and over the south china sea. we have seen the offshore yuan versus the trade lower following dollar these tweets, and the question is whether this is more empty rhetoric from donald trump or whether he will be taking a more confrontational line with china. >> very much the word out of beijing is that he is not president yet, and perhaps he is being badly advised. they are doing everything they can right now. >> america's four-decade one china policy may be put to the test with president-elect donald trump, saying no one can tell him who to talk to. this comes after the uproar after his phone call with the president of taiwan. he says his attitude will depend on securing better trade deals with beijing, and the one china policy he says may be china's policy, but not america's , unless he can make a deal. what is the buzz on the ground in beijings to how china is likely going to react here? >> there has been no official comment so far, but we have had an indication from the state media with the global times , descr

imports the china and over the south china sea. we have seen the offshore yuan versus the dollar trade lower following these tweets, and the question is whether this is more empty rhetoric from donald trump or it confirms he will be taking a more confrontational line with china. >> very much the word out of beijing is that he is not president yet, and perhaps he is being badly advised. they are doing everything they can right now. >> america's four-decade one china policy may be put to the test with president-elect donald trump, saying no one can tell him who to talk to. this comes after the uproar after his phone call with the president of taiwan. he says his attitude will depend on securing better trade deals with beijing, and the one china policy he says may be china's policy, but not america's, unless he can make a deal. what is the buzz on the ground in beijing as to how china is likely going to react here? >> there has been no official comment so far, but we have had an indication from the state media, with the global times d

imports the china and over the south china sea. we have seen the offshore yuan versus the dollar trade lower following these tweets, and the question is whether this is more empty rhetoric from donald trump or whether it confirms he will be taking a more confrontational line with china. >> very much the word out of beijing is that he is not president yet, and perhaps he is being badly advised. they are doing everything they can right now. >> america's four-decade one china policy may be put to the test with president-elect donald trump, saying no one can tell him who to talk to. this comes after the uproar after his phone call with the president of taiwan. he says his attitude will depend on securing better trade deals with beijing, and the one china policy he says may be china's policy, but not america's, unless he can make a deal. what is the buzz on the ground in beijing as to how china is likely going to react here? >> there has been no official comment so far, but we have had an indication from the state media as to how some h

>> i would not presume to advise the president-elect on china policy, but i would warn him that china is very willing to flex their military muscle. if you remember george bush jr. in the first month of his presidency had to face a china crisis with one of our navy jets got clipped by a chinese plane, it was grounded for ten days. for ten days seized our people -- >> happened back then. >> and even under bill clinton he had a china confrontation with warships being put in there. so for donald trump it's been a lifelong campaign against the chinese, but it has real world foreign policy implications. >> but charles payne, we've always -- with the chinese. one thing weird or refreshing about donald trump is he's not. >> he's not. but again,amy's got a point with respect to mexico and canada are going to fold on nafta. that's going to be pretty easy. but china already they flew that long range nuclear bomber, you know, they have militarized or they're militarizing that manmade -- >> so you'd be afraid to take them on? >> no, you have to. the longer we wait, the more powerful they become.

into china. there is the tipping point. 2015, $15.3 billion in overtaking u.s. flows into china. muchad: thank you very indeed. right, still ahead, unpacking the latest trade data out of china, hsbc's insights on this. you're watching bloomberg. ♪ rishaad: we are back. this has turned out better than was expected, but can the positive trend continue into next year. let's bring in julia wang. we are waiting for this trade data. what are you looking for in that data? think that when you look at , fairlyand imports modest contraction. i think we're looking for the pace of contraction to be somewhat smaller, but nonetheless a bad year for exports. step the market thinks about is what this means for the currency, and the fixings came out today. it has been that they cfo's of the market over the past month and has continued to edge up, become weaker. rishaad: today was a stronger fixing, but -- >> yeah, so, it has been stronger than expected for a couple of days. i think they are trying to manage the pace of weakness in the currency, but the broader data that comes out today and , pe

i spent a lot of time covering china and in china. china is extremely sensitive to the most minor shifts in rhetoric, diplomatic signals, policy shifts, et cetera. to have the president-elect tweet out, we know the way donald trump uses twitter, this is expressions of his policy positions, to have a president-elect tweet out two very, i don't know if antagonistic is the right word, but very firm statement, shall we say, on major policy issues between the u.s. and china, economic policy, foreign policy with the south china sea, that signal a substantive shift from a bipartisan decades-long bipartisan approach to china, right, on those issues, but also in terms much tof taiwan that g back to 1979 recognizing beijing as the seat of china as opposed to taiwan. when that happens from the president-elect, that's major. that's substantial. while china's public statements have been very measured, saying well, this is a trade relationship that has benefited both sides, i have heard and i think this is quite credible, that inside china's foreig

and china, but how about china and the u.s., what is the difference? anjali: one thing china has done, they have much stricter rules on prescription of opioids for non-cancer cases, cases like [indiscernible] allow use in certain cases, but there are restrictions, which is why you see much greater control in china than the u.s. as i said, yes. there are risks in china as well, something to keep an eye on. ramy: what are the risks that china really does need to look out for? anjali: as i said, the sprawling health care system. in china, there is a lot of local doctors who are starting to learn about plate -- pain management and opioids. it is important to make sure : the education and understand where opioids are best used, the risk, addiction, and that the drugs are prescribed to people who really need them, and they don't reach people who would not benefit or get addiction. ramy: all right, thank you. bp has cemented its long relationship with abu dhabi with a $2.2 billion deal for sikh in one of the largest oil concessions. give 10% share of adco, ab

-china policy. and his advisers are down playing this as a courtesy call, denying any policy shift before trump has taken office. but unsurprisingly, the white house and state department are worried about the fallout. here's josh earnest. >> it's unclear what the strategic effort is, what the aim of the strategic effort is, and it's unclear what benefit could be experienced by the united states, china, or taiwan. but i'll leave that to them to explain. >> donald trump has promised to strike a hard bargain with china on all aspects of u.s. policy from trade to the economy, to security. and this is a man, wolf, who has written about china as an enemy, about taking away what he called china's advantages. so i think it would be fair to say that donald trump knew the message he would send to china. there's a new sheriff in town. but it doesn't seem to be completely mapped out. >> how is china reacting to all of this? >> reporter: aside from those editorials, they're playing it cool for now. they're criti

china, china, china! >> trevor: chyyyna! ( laughter ) quick question, how are you going to fight a country when you can't even pronounce their name? chyyyna. chyyyna. sounds like a toddler who just learned the name of her private parts. chyyyna! chyyyna! chyyyna! that's where my ties come from! ( talking like a baby ) and, by the way, why do donald trump's suits fit so poorly? i don't understand why they fit like this. they're made for you and by you! why would they fit so badly? i wouldn't be so shocked his suits fit like that because he exaggerates his measurements to his tailors. no, my arm's this long! ( laughter ) since the '80s, trump has been itching to pick a fight with chyyyna. even though it's 44 days till he officially takes office he's already started (bleep). >> in an unprecedented move mr. trump took a call from taiwan's president, breaking tradition. >> calling it a blunder. >> phone call touched you have a weekend diplomatic fire storm with china and broke decades of presidential protocol. >> trevor: yep, onc

imports to china, andover the south china sea. as you say, these tweets follow criticism from china over that controversial call he held with the president of taiwan. we have seen the offshore yuan versus the dollar traded lower following these tweets, and the question is whether this is more anti-rhetoric from trump or whether it confirms he will be taking a more confrontational line with china. he has talked about labeling china a currency manipulator. analyst atrd from bank of tokyo mitsubishi that they accept him to do that and label china i'm manipulator early on in his first term. we have heard from our analyst saying that if he starts targeting china on trade and the one china policy, then we will certainly be in for a rough road. from the taiwanese perspective, the call was a calculated risk. they would like to see greater recognition from the u.s. but are aware that will be pushed back from china him a but president tsai ing-wen has suffered in terms of popularity. the economy is not doing so well a there there so well ei

you know that china has undespited sovereignry of the south china sea and further there are risks of your close surveillance. and john mccain suggested that chinese may have taken the drone to steal the technology. >> the chinese are able to do a thing called reverse engineering where they are able to -- while they hold this drone, able to find out all of the technical information and some of it is pretty valuable. look, there is no strength on the part of the united states of america, everybody is taking advantage of it and hopefully that will change soon. >> reporter: and this incident is just the latest clash between china and the president-elect trump and another indication that the next administration does not plan to carry on with business as usual. eric. >> garrett, thanks so much. >>> and for more on this now, we'll bring in captain ben collins, u.s. ashly special forces -- army special forces veteran who served three tours of duty in afghanistan. so captain collins, considering the length of time that china has had this drone, how much information on the technical and physic

china's beige book chief economist says currency is where washington has the upper hand. >> china on one hand is leading foreign exchange. a lot of money moving out of china, people worried about it, and they are taking on the united states as the reserve currency country. getting 300 billion dollars a year roughly out of the trade surplus they have with the united states. if the trade war goes that far, which no one should hope for, u.s. cuts that off and china loses and there is no way around it. tohaad: let's get back david. what do you make of all this noise coming out of china the moment. we have been finding out about how much they will be growing next year, at least the target in february, so steady as she goes? what gives? it will be aink steady as she goes policy. we have seen so many repetitions of that commitment to double real gdp that it is hard to avoid doing anything but delivering that and that is what we have seen the last few years. all policy has been aimed at stabilizing growth, not to reignite it again, and that's a difference than what we saw in reaction to the

the one thing i know for sure about china is that i will never know china. it is too big, too old, too diverse and too deep. it is simply not enough it is t it is changing so fast. china has a population around 1.3 billion people. a number of them who are joining this class demanding their share of all that good stuff in sf infrastructure and the clothes and the classes and the engine that drives the whole world. ♪ >> anthony: very much, yes. >> okay. >> what do you want? >> anthony: yes, soup dumplings. professor of shanghai at jou dong university. by so many people you meet here, he's chinese but educated at american universities and was taught at yale and duke university of state. >> anthony: you fiorgive me, china looks different every time i come. it is changing so quickly. how did that happen? >> china enjoys a long series of peace. the manufacturing industry took off and policies and every country went into trade with china. >> anthony: there is no doubt that we are bound on. we are hopefully lessly and our economy is hopelessly interveneal. if one

after china on twitter. is there a diplomatic strategy at play? and victory. protesters and nate of americans celebrating this morning after the army corps of engineers refuses to allow a pipeline through native lands. but the protesters saying they're not leaving, defying the deadline set today. we begin out west where a news conference is scheduled to begin any moment on that horrific warehouse fire in oakland, california. 33 people are confirmed dead. officials say that number could rise. eight of those victims have been identified. no word yet on what sparked the fire but officials have called in a criminal investigation team as they search through the ashes and debris for more victims. >> we have people around the clock and we will be here for days and days to come. >> nbc's steve patterson is live in oakland. what are we expecting to hear from officials that the news conference we're waiting for? >> ali, the first thing that has to be talked about at the press conference is the breaking news, we just g

well, maybe -- >> we protect china? we protect china? trish: may not necessarily be a -- i'm going to leave it there, i'm out of time. we've got more coming up. [laughter] i want to continue talking about this because vice president-elect mike pence is out there blasting the mainstream media for beating up donald trump's phone call with the president of taiwan. talking to a dictator who murders his own people. yet it's time for trump to talk to a democratically-elected leader in taiwan, and that's somehow bad? why the double standard? will the liberal media ever give mr. trump a fair chance? you heard arash's side of things. let's hear the next side next. when a moment spontaneously turns romantic, why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take

by a one china policy unless we make a deal with china. having to do with other things, including trade. >> this could be a hint of a change in policy. this may not just be a phone call. those in taiwan are expressing hope while those in china are extremely concerned. >> the chinese officials are putting out signals saying this is serious. we take this seriously. there's some stuff we can do to do guys if you want to push this. >> china is saying one china policy, taiwan is not a different country. they say it is not necessigotia. i don't think it is fair to say it is loose talk anymore when he accepted that call from the leader of taiwan. he thinks they should reassess the united states relationship with china. >> when you have an ongoing relationship with people and you step forward and say the thing we agreed to all this time. unless you give me something. that starts to feel like extortion. >> he is a disrupter. why should we adhere to the policy? >> no one can accuse donald trump of inadequate disruption. we are safe on that one. >> e

♪ >> a big surprise from china. it is much stronger than expected, exports and imports of both being forecast. >> the worst may be over. shares build on the initial gains across the asia-pacific. >> oil hold around $53 as the focus shifts to whether opec can persuade non-opec members to cut. >> this industry is bracing for its worst year in 2015, collateral damage to train the glued -- cut the crude. i am angie lau where it is just past noon. welcome to bloomberg markets middle east. one notable thing today is absolutely with the markets are doing, extending the rally. especially after the china trade data rolled through, we have exports, imports, both up and better than expected, surprised to the outside. on the other side, what is supporting the markets, trump. trillion, that is the number on my mind this morning. that is the market seeing this on this chart. fresh out of our bakery, this really tells the story of donald trump and the u.s. election. you are looking at the combined value. this is a month since the

/china relationship. the understanding about taiwan goes back to the 1972 communique that nixon and kissinger negotiated. everything is built on this idea that there's one china and we're not fundamentally going to challenge that. trump has put that in play. if it's all about leverage and bargaining, you can argue getting an extra source of leverage is sensible. as richard said, there are so many things the chinese could do that would -- back in 1969 there's a mad man theory of how history works and sometimes you just have to be the mad man and he was claiming that north korea would see how crazy and erratic and volatile nixon was and would make concessions they wouldn't otherwise. i sometimes think trump with his impulsive statements, he's crazy like a fox and would think he'll get new concessions. this wasn't the area to play with that idea. it's too delicate. >> play the man mad you're saying at times when it helps you. it never hurts in they think you're crazy but not here. >> not on this one. i think

-china relations into sharp focus. it was the first time since 1979 american and taiwanese leaders have spoken in a break from diplomatic practices. trump said it was a routine congratulatory call, but on sunday night, he criticized china's military and economic policies in a series of tweets. in china, and editorial warned the united states risked a confrontation with beijing. meanwhile, the obama administration says national security official spoke with their counterparts to make sure of u.s. commitment to the one china policy. joining me now is ian bremmer, president of the eurasia group and richard haass president of the council on foreign relations. his forthcoming book is called "guess what: a world in disarray." i'm pleased to have both of you here. how serious is this? how did it happen? how will it play itself out? richard: it is pretty serious in the sense that the call broke ground, unfortunate ground that hadn't been there since the late 70's. a fact this exchange took place was inconsistent with the choreo

has leverage with china right now, you know, china desperately needs the u.s. economy to keep its growth rates up and its middle class growing and trump is going to use that leverage. >> and mike, josh earnest didn't spell out, i don't think he could spell out the progress that supposedly we've made with china but trump spelled out in another tweet some of the problems we have had with china, he says did china ask us if it was okay to devalue their currency making it hard for our companies to compete, heavily tax our products going into their country, the u.s. doesn't tax them or to build a massive military complex in the middle of the south china sea? i don't think so. >> well, i think what china probably was most upset about was donald trump's indiscretion, but as china and the rest of the world are learning is that the president elect speaks his mind. how refreshing is that, david? someone that tells the truth. and the people that are concerned about his behavior, they are the same people who said that when he ran he would never get the republican nomination

south china sea. disagreement between washington and beijing over a huge body of water china claims to be pretty much its own sovereign territory. >> u.s. needs china's help to deal with north korea. and as some people have pointed out this kind of could potentially raise tensions at a time when you don't really need them with some of these very serious challenges already on the table. people were not terribly worried that taiwan was going to explode even though you had the recent election of a pretty independent taiwanese president in recent history. >> and we need china for iran sanctions. china has been very helpful to the united states. you need china any time you do sanctions against anyone. any time you want to intervene with the u.n. involvement. any time you want to put sanctions on. any time you need funding for some international project. the china is the second largest economy in the world. we want or the clear what exactly our strategy is if the point is to piss them you have. >> donald tr

president jimmy carter chose china. it's called the one china policy and that's how it's been since then, no exception. we sell them arms but no communication, or there wasn't until now. as you remember, trump spent the campaign accusing china of manipulating its currency, and taking advantage of american businesses. and he repeatedly threatened to take a harder line toward beijing and its behavior in the east and south china seas. but the u.s. relationship with the chinese is very complicated because we really need the chinese for issues including the north korean nuclear program. so he has ecenter intentionally sent a message or has accidently caused what could become a big problem. general griffin is here. >> reporter: for the first time china flew a pair of nuclear capable bomber around taiwan on november 26th. less than a week before president-elect trump took the phone call from the taiwanese president. breaking decades of protocol and raising eyebrows in washington. the flight of the chinese bombers was a test fo

china is a ron kirk. francine: -- china is a wildcard. francine: you also added high-yield in europe. right now, from a technical point of view, that was a trade that no one wanted, for the beginning of this year. it came back quite aggressively. now, with the ecb's new policies , there is a path for corporate's doing quite well. we see political risk. always be aware of it, but do not over dramatize it. there is a good return profile. francine: central banks are here. geoffrey: that is crucial for support. if you look at the reflation profile in europe, we are in a steady-state, where you would not expect aggressive tightening by central banks, or aggressive unraveling of easing, and i think markets are anticipating in the u.s. at this point, which makes the eurozone attractive. .e are not totally sold on oil energy is probably a take profit opportunity. europe is less exposed on the energy side, compared to the u.s. 15ncine: i feel like we have minutes to go around the world -- 15 minutes to go around the world. it is very jewels firm.

let me turn to china. china began in an almost christian way. after the emperor, emperor hirohito made his famous radio address to end the war, a few hours later, kai-shek ii made a speech which was broadcast across the nation and he quoted from the bible and so on. and it came down to a statement, and it's better in chinese than in english, of course -- [speaking chinese] let us repay evil with kindness or generosity or anything like that. now, it served his purposes, of course it did. but that became the initial response of china. and it was politically motivated in the sense that that same speech was picked up by general okamura who then decided that working with the nationalist was probably a good option. so it was political as well. but nonetheless, there is that kind of -- and i think jan kai-shek was a christian and i think this was hard for -- this is meant and it is still a version of response to this that has a lot of mileage in taiwan, where it was brought forth recently at a commemoration. at the beginning of the second world war whe

we trump: i do not see why need to be bound by the one-china policy unless we make a deal with china. they are taxing us heavy at the borders when we do not text them. -- we are mess of building massive fortress in the middle of the south china sea. >> trump already angered china when he took a congratulatory call from taiwan's president. he is the first u.s. leader to officially talk to at taiwanese leader in four decades. genie: the champions league is coming up in february. we have found out who will be playing whom in the final 16. the big games to watch our monaco versus massachusetts city. and for the other fans out there, pfg versus arsenal on a. it is december. christmas is coming to while santa claus may be almost sameness -- most famous for flying through the skies with addedindeer, he has diving to his skill set. underwater santa is a biologist at the guadalajara zoo in mexico. he wanted to give them and their visitors a different take on yuletide fun. he will do that throughout the rest of december. time now for a business news. we want to show you who has been in the fish

i don't know why we have to be bound by a one-china policy unless we make a deal with china having to do with other things, including trade. i mean, look, we're being hurt very bad ly by china with devaluation, with taxing us at the borders when we don't tax them, with building a massive fortress in the middle of the south china sea, which they shouldn't be doing. frankly, they're not helping us at all with north korea. you have north korea, nuclear weapons, and china could solve

china relations? >> as part of the shanghai communique, so of the clear advantages and obligations obligations, i will not separate my views from the shanghai communique from established procedure. also, at this moment, uh call reaction of the of leadership of the determination to see if a dialogue can be developed. but it is no question that the policy of opening to china is based on the premise. >> does this excepting a call when he is not yet president, i wanted to argue with prohibition it is about official contact and since he is president-elect and not yet president that is not official contact? no? >> that is a good way to describe it. [laughter] >> cents i look to avoid confrontation, a but i do recall pdf running into a deputy assistant secretary of state because i worked with the state department with the prohibition days said you are not supposed to be here he said i have been named but i've not taken officer lance nonofficial. so there is precedent for that but after that turmoil the presi

and china. and so with that, as well as some of the other concerns about trump's behavior, a lot of people here are worried he's much more erratic than they feel comfortable with. that is something that the business community here is watching very closely. one thing, wilfred, is that i was speaking to one long-time china watcher here who said that they're happy with the push-back from trump in some ways because there's so many concerns about china. at the same time, he said, it's very dangerous to poke a tiger in the eye. >> eunice, it is, indeed. thank you for us, reporting from beijing. >>> trump wasn't done there and spoke out yesterday on the cia findings that the russian hackers tried to help him with the election. >> i think it's ridiculous. i think it's just another excuse. i don't believe it. every week it's another excuse. >> key members of the senate armed services committee took a tougher stance in response for trump calling for a full investigation into the election cyber attacks. th

/china relations. matt rivers, cnn, beijing. >> so the trump team appears to be vacillating somewhat on china policy. trump talking tough in 140 characters on twitter. but reince priebus now seems to be backing away from that call that trump took from taiwan. this is what he told fox news. >> we're not suggesting that we're revisiting one china policy right now. he's not president right now and he's respectful to the current president. >> but mr. trump is acting as if he is president of the united states. he tweeted out that china should return that american drone. we just told you about that. and he saved those jobs for carrier in indiana. so how is this affecting policy? joining me live from washington is greg polen, director of the asia maritime transparency initiative at the center for strategic and international studies. welcome, sir. mr. trump's tweets on china and in regards to that drone led to this editorial in a communist-controlled chinese magazine. quote, he bears no sense of how to lead a

they called it the china dream. by 2049, they want the united states out of east asia and want to be the regional hegemon. they would prefer to do it peacefully. they want the united states to peacefully retrench and ithdraw and let the chinese be withdraw and let the chinese be the dominant power in asia as they have been for five millennia. between the opie moors of any 1840's and the chinese communist revolution, they want to restore what they think is their rightful place in the world. they are on a roll since 1979 in their economy following economic shifts in power like that. the modernization of the chinese military is incredible and incredibly fast. they want to do it peacefully, but they are preparing to do it violently if they need to. if you want to deter, there's a lot of diplomatic action but the baseline of deterrence is a strong, capable military, peace hrough strength. >> the only thing i would like o add is what the chairman said at lunch, i hope they understand what he is saying. i hope they have de

>> well, with china -- china's claims are basically the entire china sea, they are their waters because of islands and the island ownerships are in dispute and need to be determined by rule of law by the people have countries that have conflicting claims. china has acted unilaterally and has caused a very dangerous situation. we strongly disagree of how china has pursued this issue. it's not only the waters are claiming, the air is exclusive to them. we do not recognize that. the international community does not recognize that. now, we don't know exactly where this vehicle was -- neil: right. >> if it were in international waters this is an extremely dangerous act by china. neil: it follows other provocative actions, just yesterday off the coast of taiwan following on actions they took last week when the leader headphoned to congratulate trump and they responded by a show of force off the coast of taiwan, tripling up and quadrupling up with russian military aircraft they had purchased. where is this going? what does your gut tell you? >> well, clearly what we are trying to do is get the

china has been very aggressive in the south china sea, the east china sea and in relation to taiwan. it is entirely appropriate for a united states president to decide we are going to take a more aggressive policy towards china. if we are going to do that, we need to make sure we do it in a careful, measured, strategic thought-out way, not just a one-time response. because this ecosystem is so delicate and connected, there is a danger that there are going to be unintended consequences. if we want to be tougher on china, let's do it but through a rational thought-out process. >> this isn't totally unprecedented. perhaps the way in which it happened as jamie pointsous is. we have seen incoming republican administrations like the reagan administration coming in and extending a hand more out to taiwan than others. no? >> yes, indeed. that was the case in the reagan administration, in particular. the big difference is that taiwan is a vibrant democracy. people in taiwan feel slighted by the fact that they are being isolated by the international community. so, therefore, they feel there sh

however in china it is based on the recognition. recognition of the beijing, as china as china. a one china policy. you recognize china as the seat at the u.n. security council. you recognize china beijing as the seat of government of china and taiwan something different. to have the us head of state call the taiwanese head of state, there is a reason that hasn't happened for 40 years. because those communications between the heads of state should be between the head of the chinese state and the u.s. state. this is not just a disruption of protocol. it is something that has enormous diplomatic and political meaning, certainly to china. i'll tell you tonight it is a 100% certain there are heads spinning in beijing. >> it is in essence truly incredible that this is happening tonight. jim, thank you. i want to go to ivan watson now. our senior correspondent based in hong kong, actually here in new york tonight. and we're awaiting the chinese response. obviously early in the morning in beijing. >> 8:00 in the morning on a saturday there. so it is a bit early. and it will be very int

the one-china policy is the cornerstone of a healthy u.s./china relationship. i hope the political foundation won't be disrupted or damaged." yes, china seems to be giving the trump team the benefit of the doubt by placing blame on taiwan for this sharp breach of diplomatic practice. for good reason probably. the chinese are, like many others, trying to decipher the true meaning of the phone call. was it just a blunder because of the trump team's inexperience in foreign policy, or was it more significant? does it signal a major policy shift by the incoming white house? interestingly, george, xi jinping, the chinese president, met with henry kissinger friday. the former secretary of state was instrumental in establishing ties between beijing and washington in the 1970s. and he told mr. kissinger it is critical to understand each other's strategic intentions. now mr. shi must be wondering what mr. trump's intentions are and if mr. trump is somebody china can work with in the next four years. george? >> that is the burning question here, what were his intentions.

has leverage with china rht now, you know, china desperately needs the u.s. economy to keep its growth rates up and its middle class growing and trump is going to use that leverage. >> and mike, josh earnest didn't spell out, i don't think he could spell out the progress that supposedly we've made with china but trump spelled out in another tweet some of the problems we have had with china, he says did china ask us if it was okay to devalue their currency making it hard for our companies to compete, heavily tax our products going into their country, the u.s. doesn't tax them or to build a massive military complex in the middle of the south china sea? i don't think so. >> well, i think what china probably was most upset about was donald trump's indiscretion, but as china and the rest of the world are learning is that the president elect speaks his mind. how refreshing is that, david? someone that tells the truth. and the people that are concerned about his behavior, they are the same people who said that when he ran he would never get the republican nomination

he also accused china of building up military bases in the south china sea and said china had not done enough to rein in north korea, so he has been vocal on this. china has been listening to my but on the other side he wants to appoint to china as an ambassador, the iowa governor terry branston, seen something as a china friend. he has known president xi jinping for quite some time. so what they are trying to work out is whether this is a thought through strategy that trump will take to the negotiating table to win over concessions, or whether it is grandstanding from trump to play to his face. rishaad: tom mackenzie joining us there from beijing. ousted head tata's taking another swing at cyrus mistry at an emergency general meeting. we will be live in mumbai. sophie: plus, the proof is in the pudding. our next guest says we will have to wait and see on whether oil producers stick to their word on output cuts. this is bloomberg. ♪ rishaad: a quick check of the latest business flash headlines. hyundai merchant marine up after announcing it will join the world's biggest shipping alli