around 95% of respondents are in china for china. that's important because if you're operating in the china market or manufactured in the china market, and the terrorist on the bilateral relationship will impact you in a very different way. that being said, read a quarter of our companies are leveraging china sport platform for the new broad or for the united states. 67% of respondents in this year's survey were in china are based in china. around 33% are based in the united states, 2% in other locations, europe, south america, et cetera. so getting into the survey, the key findings this year, companies are commercially successful in china. revenue in china operations increased last year and the overwhelming majority of our member company respondents, , 9, were profitable. however, trade frictions are eroding use company competitiveness. this is happening because both u.s. and chinese retaliatory tariffs and because u.s. companies are increasingly viewed as unreliable suppliers. while this issue is top of mind, the more pernicious lo

and i believe that china's investment standout is the china pakistan economic story or more commonly known as the seat next project is going to east of t. and it currently represents 20 percent of the economy i think it's a very important project for both the countries especially pakistan considering the fact that it has a big influence on the pakistan's. very the if those figures are accurate 20 percent of the economy one might understand why they're hesitant to speak out. no i mean certainly there are a number of countries that are beholden to china and the chinese government does buy silence through its investments whether through the bottom road initiative the large infrastructure project or through other kind of kinds of investments but what was particularly surprising is there were several members of the organization of islamic cooperation wealthy countries like saudi arabia the united arab emirates behind qatar and others that you know similarly were were silent they don't they don't rely on chinese investments they're not beholden to china in the same way as poor countries bu

labeling china a currency manipulator china saying the u.s. is deliberately putting international order in disarray. >>> and how the market turmoil could complicate the picture for the federal reserve. we have that story and the stories that matter most to your money straight ahead it's tuesday, august 6, 2019 "squawk box" begins right now. >>> live from new york where business never sleeps, this is "squawk box. >>> good morning welcome to "squawk box" on cnbc. we're live at the nasdaq market site i'm melissa lee along with andrew ross sorkin joe and becky are off. we have two guest hosts sitting in tom farley current chairman and ceo of fire point and we have shark tank's kevin o'leary the dow coming off a 767 point drop yesterday it was the seventh worth point drop of all time last night president trump's administration responded with the treasury departmen

china sea. also offshore jig gambling will be in focus. we will have a preview coming up. this is bloomberg. ♪ rishaad: we are back. this is a look at the business flash headlines. malcolm resorts delaying a $1.2 billion u.s. dollar deal. it is after an inquiry of the australian company. it is on hold. 60 business days after the completion of the process. the delays have slowed to the biggest shareholder. they tried to quit the company after a series of setbacks. david: caesars is dropping its pursuit of a license for a casino in japan saying it will we towards current business style with el dorado dessert -- resorts. having the potential to the largest gaming market. -- it is keen on tokyo-based, the bay area, and potential dove element. -- development. rishaad: corporate market smashed expectations. beating the forecast. same-store sales around the world fell 3%, twice as bad as analysts projected. it had fallen since the street protests began in june. david: high energy giants -- yvonne: hi

was in the wrong china ignored the ruling. in the philippines critics have pounced on to territory for being seen to turn a blind eye to china's development in return for trade but when a chinese vessel rammed a fishing boat in june leaving 22 filipino fishermen dead. could not ignore public anger any longer. joining us is richard hadari an author of the rise of 2 territory and also more recently the indo-pacific trump china and a new struggle for global mastery so very well placed to explain some things to us a tell us richard to what extent is domestic pressure influencing to territories actions on this trip. yeah i mean the president is very popular in terms of his overall approval ratings but on the issue of foreign policy and his followers who are china that's where we see a lot of problems there's pushback from his own top generals see things defense secretary and national security adviser opening to raise concerns about that there should be espionage we didn't see lots of chinese illegal workers and citizens into the ph

and i believe that china's investment standout is the china pakistan economic toreador more commonly known as the seat next project is going to use its teeth and it currently represents 20 percent of the economy i think it's a very important project for both the countries especially pakistan considering the fact that it has a big influence on the pakistan's. very there if those figures are accurate 20 percent of the economy one might understand why they're hesitant to speak out. no i mean certainly there are a number of countries that are beholden to china and the chinese government does buy silence through its investments whether through the bottom road initiative the large infrastructure project or through other kind of the kinds of investments but what was particularly surprising is there were several members of the organization of islamic cooperation wealthy countries like saudi arabia the united arab emirates behind qatar and others that you know similarly were were silent they don't they don't rely on chinese investments they're not beholden to china in the same way as poor cou

imports from china. we will see what happens from here certainly that will be a major blow to the farming and ak a agriculture community that has borne the cost of the trade war. and a key issue for president trump going into the 2020 election and a few weeks ago the department of agriculture rolled out the $16 billion aid program. the agriculture secretary produced that at the time. there were no plans for additional aid of that but if china closes this market to u.s. producers all together, it could be a different story. >> incredible. thank you very much. we were at session lows a moment ago, dow nearly 770 points and 10-year, 1.74% rick santelli, we were over 2% four, five days ago? >> yeah, 2.07 was in the cards officer 30 basis points of a drop in a matter of days as you look at the chart from early july, you can see what kelly is referring to. we popped up to 174. 173 yield is close to the three-year low and that represented down an even dozen basis points but let's look at the epicenter. the cumu

views china. china today is different than china 20 years ago. reform. time to a misconception in those views? i had to be a chance to be with dr. kissinger. celebrate theo anniversary. up, theyonomy opened would begin to compete. that has not happened. that is what we are driving for. it is elemental. >> if there is one thing china needs to do, what would that be? one first step? >> i am not directly involved. there was an agreement that would have put us in a good place. to where weome back wear that day. >> you touched on hong kong. how the government needs to listen. murmurings suggesting there is a congregation of way -- canng their you envision that happening? >> i think president trump has been clear, we have asked for the right thing. the tradition making sure everyone has the chance to express their views. i hope the way things proceed will be not violent. for any parties in the region. citizens will want to voice their views, whether in support or opposition, they will be able to do. >> it is a chinese issue, hong kong. should they make their w

that has to do with china. i prefer the term competition of systems none of us has an interest in a real clash when but definitely in a global situation where we have. the established western democracies on the one hand on the other hand we have a rise of authoritarian systems. led by china and that is part of the conflict that is playing out that that is part of why the us is getting involvedd on a high level because- the us and china have this trade and everything else wall going on. so more trouble for she can ping something that donald trump obviously enjoys but it's also something that concerns us in europe because in hong kong we say we see the play book. that china is using to handle dissent and cold for democracy and that is a much much broader question how is a more of a clash sure a competition and i prefer the words of the term they call existing because okay system. should be co existed in what china doesn't want is that this be between the what the two systems that one system is challenging the mot

china beginning of october. that's coming up yeah i don't believe they're going to be have a very very bad image in the international press when the pira is marching to hong kong ok so china plays a very long game though the communist party in beijing. if we look at the past if we look at what's happened in tibet what happened at yemen square the internment of the weak corps i mean beijing is not adverse to reverting to force at the end of the day it could have would be because hong kong has nothing legal framework this is a part of a not a system the legal frame with sess the peary could be sent to hong kong if the c.e.o. of the leader of hong kong officially a speeching to do that about of not sink caroline as the leader of the city is going to do that ok well how is the west responded there's been a mixed response french and german leaders have called for dialogue about the situation the u.s. congress has condemned china's heavy handed police response president trump has called on the chinese president to exe

stupidly lost trillions of dollars to china. we don't need china. we would be far better off without them. president blasting the country for stealing from the u.s. for decades. he is now ordering companies to do business somewhere else. the president tweeting this. our great american companies are hereby ordered to immediate start looking for an alternative to china. the president continuing his crackdown on china over illegal fentanyl being funneled into the u.s. ordering companies like fedex, ups, amazon, and the u.s. postal service to root out illegal fentanyl being sent through their services. trump saying this, they need to search for and refuse any fentanyl delivers. the president also said president xi of china promised to stop the drug flow but did not follow through on that. so, while president trump continues to unload on china he is also promising retribution for the retaliatory tariffs. but his tray advisor, peter navarro struck a different tune on fox business earlier today saying that despite china's retaliatory tariffs they are still

frankly the biggest loser is china. reporter: china denies it manipulate its currency. they released a statement that this will cause global chaos that the u.s. took this action. the u.s. trade delegation is expecting a chinese delegation to come here in september. they are planning for that. the president said if those talks go well, then a 10% tariff on rest of everything that china imports into the u.s. may go away. if it does not go well, the president hinting that could be 25% tariff. back to you, charles. neil: edward lawrence, thank you very much. what does the latest back and forth between the two powers mean for the trade negotiations? here with insight, former u.s. ambassador to china, max baucus. thank you for joining us. what do you make, the war of words are up, both sides taken next steps but no one canceled this next meeting. this still feels like there are occasional olive branch out there. can you handicap where we go from here? >> i hope we continue to negotiate. our last meeting was in shanghai. there was no resolution. sometimes with negotiations the

and china. a chinese foreign ministry spokesman said he was unaware of any calls with the u.s.. this is echoed by the global times. enda curran has more. what actually happened? enda: i think that's what everyone is trying to figure out. we have had a day of conflicting signals. the foreign ministry in beijing were not able to immediately confirm the phone calls president trump referred to. the editor of "the global times," an important mouthpiece for the communist party, made the point that whatever calls did take place weren't at the level of significance president trump hinted they were. we know that the talks scheduled for september are still meant to take place. there's a lot of confusion about whether or not there has been an olive branch offered by either side and all of this, but i think the take away probably came from president trump's remarks that he sees prospects for a deal being better than they have been for some time. we have commentary from vice that made ite clear china is stil

it's china if there are no other action for example economic sanctions all. that was for them in anything what do you say. expressing concerns kind of pressure and china has to syria take taking to consider. sanctions not a way out a way out would be that beijing hong kong they going to negotiate in the framework of one country 2 systems about the way the timetable at least how the democrats democracy could be implemented in hong kong like a direct like a general election ok i don't know what i'm listening to terry though that's already been decided this 2047 when china resumes control of hong kong until then the chinese people or the people of hong kong rather want democracy the way i'm hearing you is that gerry that's non-negotiable yeah because for us we don't believe what we're trying to. the extension a fun country system we don't want to believe that. by the way it will become chess and not the city of china we want to have an extension we want to have the 2 a system for africa ok the 2 system forever let's take a listen now to some of the protesters an

is it china? and is it going to force them to change track or, actually, is this rebounding and hurting americans worse? >> well, there's a lot in there. let me unpack some of it. first of all, or even president trump himself doesn't believe explicitly that china is fully paying the cost of these tariffs because you'll recall that he recently suspended the implementation of the tariffs so that u.s. consumers wouldn't be whacked too hard around the holiday time. so it's widely understood that tariffs are paid by the company that imports those goods. they then try to push those costs forward to consumers. now, you asked some other questions in there, what were they? gerry: who's being hurt more, the chinese finish. >> right. gerry: chinese businesses are being hurt, presumably, because their goods are more expensive and suffering competitive disadvantage. >> right. i think the key there is your basic premise is correct. the key this is that we import over four times more from china than they import

still from beijing do and bleeding in 9 cities across china primarily getting is clean in china by various school students and university students especially i must tell you bought this wonderful city that shane young young province in china which has a curriculum on pre-k. and primarily the chinese we've been speaking fees are comprised of students from she was doing what the land if any to develop their game in china. the plan has been in place for quite some time later today in cricket council when it was founded under the laws you would ship off india's legendary cricket i'm going to stricter gentlemen dali our so that time he had tried to invest it in china but since then we have seen little progress as far as disconcerting here that for example in china at this moment the most popular sports and games there are of course a little bit because china's focus is primarily on the olympic sports so limp explodes it always be embittered from various quarters support from the government support from the youth it does but also basketball east the most popular sport in china so useful or spark

gemini that's a competition really it's competition and i think china china and russia are both open to a partnership with the u.s. they're not anti the u.s. but they want their own there their own vision and they have a shared i think you're. or geo political economic development vision for the world not just for central asia but and i think they're working that closely together and i think other countries realize that they respect them as well so i think there's a dangerous path for the u.s. to go and i think we need some policy shakeup to realize that. both these leaders are pragmatic they realize the u.s. very influential and i think they want to work with the u.s. . ok well joe i mean i think the problem is not one versus the other well it doesn't that's what it gets down to in washington and i mean again in washington wants a gemini ok i see that russia and china visa be the united states want at the very least peaceful coexistence but going back to you know what would jim is saying you know i mean it's either one way or the other that is not going to work now because china and

gemini that's a competition surely it's competition and i think china china and russia are both open to a partnership with the u.s. they're not anti the u.s. but they want their own there their own vision and they have a shared i think shared geo political economic development vision for the world not just for central asia but and i think they're working that closely together and i think other countries realize that they respect them as well so i think there's a dangerous path for the u.s. to go and i think we need some policy shake up to realize that. both these leaders are pragmatic they realize the u.s. very influential and i think they want to work with the u.s. . ok well joe i mean i get the problem but it's not one versus the other well it doesn't that's what it gets down to in washington and i mean again washington wants a gemini ok i see that russia and china visa v the united states want at the very least peaceful coexistence but going back to you know what would jim is saying you know i mean it's either one way or the other that is not going to work now because china and ru

but china continues to grow. china is on the move. because it's a one party authoritarian state they can make moves. they have levers, that we don't have. ashley: very quickly, robert. no one wins? it's a standoff with minor agreements here and there? >> a long-term contentious relationship. this isn't about deals. it is about relations with china. those are likely to be poor, perhaps for several decades. this is a historical structural adjustment. ashley: very good, we'll leave it right there. robert daley. thanks for joining juice joining joining -- joining us liz ann donalders. give us reaction to the new territory with chinese devaluing currency. talk to us about the realities that happen as a result of that? what do the dominoes look like? >> it's a important. a lot of people are comparing to china did with the currency in 2015 and 2018. a little more purposeful for china 2015. i think this is more market driven, they have incentive even if they want the devaluation to have it happen in more of calm way. they probably want to try

china does tick. but we're not talking about repeated interventions in the currency markets or current accounts in excess of 3% of g.d.p. the fact that the treasury department went ahead with labeling currency ma -- china a currency manipulater will have to wait to see on what basis that has been done. there are analysts who have said there could be a currency manipulater designation through the older, 1988 omnibus trade and competitiveness act. which gives more leeway for the treasury department to rely more heavily on this act, on a more subjective assessment. so let's see how things are shaping up in asia as we continue to see these developing tensions between the u.s. and china. selina: that's right. the big red headline today across the terminal is the fact that china's being labeled as a currency manipulater and that is after we saw the offshore and onshore yuan blow past that seven levels. that offshore at 7.1 against the dollar. remember, this is the first time since 2008 for the currency to r

happened again the china sort of years ago is was complete different from the china today because china always says it's now a responsible big nation the international word and they're going to use force because in the international conflict china always says we want peaceful means to solve the problem they can be that china says we now have a problem my home becky art i just make my soldier i said by soldier to give it clear that it's no problem or this is not under than the ball and not the outcome and is china's going to celebrate 60 years funding of the people's republic china beginning of october. that's coming up yeah i don't believe they're going to be have a very very bad image in the international press when the pira is marching to hong kong ok so china plays a very long game though the communist party in beijing. if we look at the past if we look at what's happened in tibet what happened in tiananmen square the internment of the weak oars i mean beijing is not adverse to reverting to force at the end of the day it could and would because hong kong has nothing legal framework t

the markets want a deal with china. the markets want some sort of resolution but the problem is that a trade truce may be far away if you're asking china to change things like their policies on state-owned enterprises which goes further than just the intellectual property issue. david: jonas? >> i think the market doesn't like tough talk any more with china at the end of the day. i think the voters probably do. i think these are fair points the president is raising, if they were raised in a previous administration, before china got so large that it's difficult to be this tough with them. i don't know if these companies are going to leave especially if they could just wait it out. i'm not saying they shouldn't. i just don't think it's feasible given the supply chains and infrastructure that have been built up over the last three decades in china so i think it is a difficult path. that said, and more importantly, i don't know. china's not going to keep drugs out of our country. that's going to have to be our job. these ar

thing worse for the united states than a strong china is a weak china and if china were to slip into some sort of recession 2% growth or less because of this on going trade war, that has reverberations around the world. that will affect europe and this other trading partner but the united states, as well. yes, the u.s. economy looks fine now. consumer strong, unemployment is low but that can change. i mean, you don't go into a recession from a trough. you go in from a peak and we are at peak numbers in a lot of different areas. this is just going to make matters worse down the road. >> and again, trying to work to turn this tape around but the president reiterating what he said. he's willing to talk to china. there have been conversations before. what do you know about the state of those conversations, the state of the dialogue negotiations between the united states and china in light of this massive escalation we saw on both sides today? >> look, certainly you and i are not sitting in the room but, you know, from where we are sitting, i don't see temperatures cooling in any respect.

in china and it shows how. true it probably an ideology there we go muslim minority in northwest china they are being monitored very closely the region is like a testing ground for total states available police officers can lock into what's called the integrated joint operation perform the program collect extensive personal data and flags individuals who appear potentially dangerous the organization should. when rights watch analyzed the program on its surface most of this information looks like standard fare for police but as we dig deeper into the hour we can see that ordinary routine regal behavior is being treated by authorities as suspect the data gathered citizens is shockingly comprehensive includes information ranging from religious affiliations and driver's licenses to employment records it even gathers data on residential energy consumption movement patterns of filmed by the ever present surveillance cameras if something appears out of the ordinary consequences can be devastating for example it's help

companies to look for alternatives to china. this was after china's latest retaliation. it was a big one this morning. they say they will slap 5% to 10% tariffs on around $75 billion worth of u.s. goods. that's eight days from today. this is september 1st they are going to hit us with tariffs when we will be hitting them with tariffs. take a look at some of the key items china is going to be using with those tariffs. you have toothpaste, peanut butter, fresh fruit, these are very small fraction of the items that we pulled from a very lengthy list. we have fox business's hillary vaughn inside the white house where the president, as we just reported, behind closed doors. we hear steve mnuchin was called in from vacation. have you gotten any word on what is happening inside the white house behind you? reporter: we are really waiting for what the president teased earlier today which is a response to china's retaliatory tariffs, expected sometime this afternoon. again, president trump's trade team meeting earlier, followed his tweet that said there would be a response to chin

around 95% of respondents are in china for china. that's important because if you're operating in the china market or manufactured in the china market, then the tariffs and the bilateral relationship will impact you in a very different way. that being said, read a quarter -- about a quarter of our companies are leveraging china sport platform for the new broad or for the united states. 67% of respondents in this year's survey were in china are -- or are based in china. around 33% are based in the united states, 2% in other locations, europe, south america, et cetera. so getting into the survey, the key findings this year, companies are commercially successful in china. revenue in china operations increased last year and the overwhelming majority of our member company respondents, 97% were profitable. , however, trade frictions are eroding use company competitiveness. this is happening because both u.s. and chinese retaliatory tariffs and because u.s. companies are increasingly viewed as unreliable suppliers. while this issue is top o

embassy in china so he knows the china story quite well. he is a graduate of yale university and a former fellow. the short washington with his wife and they have three children. i'm going to turn over to him, he is reported around the world, asia, middle europe and middle east. i'll turn it over to him to make opening observations about the book and then open it up to q&a. thank you very much jim. >> thanks so much well of you for taking time out of aut busy sunny friday. i appreciate having you here as well. and thank you to peter for inviting me he was one of the first people to read a manuscript of the book early on and he did not throw back in my face or turn up or embarrass me. i thought i was probably okay moving forward. and he was kind enough to write one of the blurbs on the back of the book. >> i wanted to start how i came to write this book. what my intention is alsohioo te process that recognizes the shadow, and connecting the dots on a number of fronts on which both russia and china to surpass the u.s. and these were friends o

and china had been having. nonetheless you did see the leader of the negotiations on the chinese side dialed back the temperature with comments saying that the chinese side still wants to consult with the u.s. and cooperate with the u.s. and do so in a calm way with a calm attitude. over the weekend, we saw the rhetoric really stepped up. and then you have the vice premiere dialing this down. it seemed like president trump was whiffing on some of the comments at the g-7. the skepticism remains as to trump's intentions. very much the focus remains on trying the plan as best they can of course for this trade war being a long drawn out affair. what we're looking to now is whether or not these trade talks which have been penciled in in washington will indeed continue. david: you could industrial profits surprised us a little bit. gave us m so good news that investors were begging for. tom: it did. it surprised us and bloomberg economics and our guest mary. 2.6% was the number we got in july year-on-year. the highes

by the way neither is china immune. china is hurting. neil: isn't in their interest to strike a deal? >> it is in everybody's interest to strike a deal. neil: i wonder if they wait donald trump out? >> that may be their thinking. they may connect the dots between trump running on an strong economy, their intransigence leading to less strong economy, increasing odds he is not reelected. i think it is important for him to go into the 2020 election cycle with a strong economy. doesn't have to be growing 3%. probably won't be, certainly will grow 2, 2 1/2%. or else his argument in favor of lower regulations and tax breaks for corporations ring hollow. that is so disappointing. all the things he took office made ceos optimistic. he saw business investment climb. neil: right. >> productivity increased for the first time in a decade. now we're kind of losing. we're losing some momentum. neil: are you surprised with much lower interest rates on 10-year note, 1.75. that might provide and still might provide a floor for stocks but it is not. >> th

i do not think so i don't think that pakistan has china's complete support you see that china has large investments in india and obviously chinese authorities would not like to do ruin the trade relations with india india is a huge market and also china is pretty all combined with other issues at the moment and i believe that on this to know these dining to announce this decision was pretty good china is involved in hong kong china has an ongoing trade conflict with the us so china is pretty preoccupied in other things and. i have serious doubts that beijing will go all the way to help pakistan out and the situation in some of today's also pakistan's independence day by mr khan has expressed on the data to me it is on the indian side. have these latest tensions with india unified the polity in pakistan itself. no not at all and it has not unified it it's a pretty chaotic situation domestically in pakistan you see just days off to. this decision on kashmir. the pakistani government arrested former prime minister nawaz sharif's don't muddy i'm not. the joined by elementary session in paki

do to win the tech war with china? >> i think we are at a point where this relationship is going to be rethought quite a bit. >> peter thiel gives maria his take when "wall street" returns. ♪ ♪ how do you gauge the greatness of an suv? is it to carry cargo or to carry on a legacy? its show of strength or its sign of intelligence? in crossing harsh terrain or breaking new ground? this is the time to get an exceptional offer on the mercedes of your midsummer dreams at the mercedes-benz summer event, going on now. lease the gla 250 suv for just $329 a month with credit toward your first month's payment at the mercedes-benz summer event. mercedes-benz. the best or nothing. ♪ here i go again on my own ♪ goin' down the only road i've ever known ♪ ♪ like a drifter i was-- ♪ born to walk alone! ...barb! you left me hangin' on the high harmony there. if you ride, you get it. geico motorcycle. 15 minutes could save you 15% or more. who used expedia to book the vacation rental that led to the ride ♪ which took the

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on hin china to move them to the table, china is moving away. they're doing the opposite it's like a couple somebody has to apologize, but they're not. eventually they'll head to divorce. >> that's our fear if the peter navarro camp wins this battle between mnuchin and navarro, this will be a problem. the reason why ism and these regional and other regional pmis are performing so poorly is exactly because of this. this thing brought the fed to the table. >> we'll get to the fed in a second all that matters i think is the u.s. consumer reaction let's say the tariffs go into effect september 1st right now the tariffs -- people are confused by them most of the tariffs are stuff that don't buy but this round would be on the stuff we buy the flat panel tv, the iphone, the sony playstation console would a 10% jump in consumer prices destroy consumer spending and thus the american economy? >> so there's a couple ways of breaking this down so what we did initially -- when we -- a year and a half ago, crazy this has been going on for a year and a half --

and china. times,tor of the global this nationalistic but influential tabloid newspaper here saying that the u.s. risked losing china, and pointing to not just tara -- tariffs but that banning of huawei, and u.s. actions in hong kong and taiwan, other zhou put glaciers as well. then the commerce ministry -- other geopolitical issues as well. then on saturday accusing the u.s. of bullying. the trade media saying the u.s. will fight this trade war to the end. the rhetoric is ratcheting up, hitting up -- heading back blow for blow other than trying to overage. paul: there was also the suggestion from president trump that it is time for u.s. corporations to stop doing business in china. how is trump attacking corporate america now. as noted, he may try to use obscure national emergency power, rarely used by u.s. to putnt, to really try restrictions on u.s. businesses working in china or chinese businesses operating in the u.s.. this is something that has struck a nerve with business groups. they alr

and china. the thing that we are most worried about is, should there be unilaterally sanctions taken by the u.s. against us, if we continue to trade for china. our position is that we want to continue trading with china. >> there are some concerns. china has already -- the u.s. has taken action against some of the countries it deems as having trade deficits, the likes of china, germany, canada. in asia, malaysia is among those in the top 10, including the likes of india. are you concerned that the u.s. will take action against you? >> we are concerned. if this thing were to happen, we have to tell the u.s., you are being unfair. you are being a big bully. >> do you think the u.s. will buy that? >> we know the u.s. ♪ >> the trump administration's decision to label china a currency manipulator raised the temperature in that relationship. among those who raised their eyebrows at the move was the former u.s. treasury secretary. he discussed it with us on bloomberg daybreak americas. >> now, declar

. >> china has set its sights on the indian ocean. it's promising a bright future for all those who help reach its destination. but stung by land acquisitions, the people of rakhine state are still wary of getting on board the "belt and road" initiative. >> flights canceled in hong kong because of pro-democracy protesters. they are accusing police of using excessive force. teargas was fired into an enclosed metro station. updates fromtting our reporter in hong kong. to decide if the prime minister will face a no-confidence motion. conservative elected president of guatemala. he has criticized a migration de

. >> china has set its sights on the indian ocean. it's promising a bright future for all those who help reach its destination. but stung by land acquisitions, the people of rakhine state are still wary of getting on board the "belt and road" initiative. shocked defeat for argentina's president bush's their currency to a record low. president pushes their currency to a record low. coming up, hundreds of protesters defy a security as the regionona, marks a holiday.y. plus -- >> t the threaeat is coming frfe u.s. anchor: an exclusive interview with iran's foreign minister which warns the

the only country that could contain china's china and our policy at that time was china [inaudible] since itted ever opened to the world. china is in the process of containing itself. aggressionking such -- aggressive action. the countries outside nonetheless had interest and they are banding together to opposed this very aggressive chinese posture from the military quantity of some of the so a fewpoint of view, small islands in the southern part of the south china sea are really inconsequential compared , athe strategic level unified concern about china and banding together in order to offset and contain this offense of our china, so i think china is causing a reaction which it will regret. in my experience, the chinese are very practical and it's something they are not trying is not something -- it's something they're trying is not, they will try something else. there are those who think the more we demand, we will get a point where all the other countries will say we will just do whatever you want. are allies and partners and support them, we will show china it is a losing strategy and

and i believe that china's investment standout is the china pakistan economic toreador more commonly known as the seat next project is going to use of t. and it currently represents 20 percent of the pakistani economy i think it's a very important project both the countries especially pakistan considering the fact that it has a big influence on the pakistan's. very the if those figures are accurate 20 percent of the economy one might understand why they're hesitant to speak out. now i mean certainly there are a number of countries that are beholden to china and the chinese government does buy silence through its investments whether through the bottom road initiative the large infrastructure project or through other kind of the kinds of investments but what was particularly surprising is there were several members of the organization of islamic cooperation wealthy countries like saudi arabia the united arab emirates behind qatar and others that you know similarly were were silent they don't they don't rely on chinese investments they're not beholden to china in the same way as poor co

do to win the tech war with china? >> i think we are at a point where this relationship is going to be rethought quite a bit. >> peter thiel gives maria his take when "wall street" returns. ♪ ♪ hi surfer dude, what's up? i see you looking at me. take those earbuds out of your ears, and come talk to me. i'm the big see. what is the big see? i'm here to tell you about skin cancer. hello! did you know your risk for melanoma doubles if you've had more than 5 sunburns? no. no. listen, mirrors don't lie. and more than 2 people die from skin cancer every hour. oh man. that's terrible. if we see something new, changing or unusual, that could be skin cancer. is there skin cancer on me right now? i'm not a dermatologist, but do you know who is? who? your dermatologist! come closer. that tiny spot on your nose could be the end of you. you guys checking yourselves out in the mirror right now- that could be skin cancer. the good news is, if you catch it early enough, you can be a-ok. you gotta get checked, girl! do i? yes! ever

gemini that's a competition surely it's competition and i think china china and russia are both open to a partnership with the u.s. they're not anti the u.s. but they want their own there their own vision and they have a i think shared geo political economic development vision for the world not just for central asia but and i think they're working that closely together and i think other countries realize that they respect them as well so i think there's a dangerous path for the u.s. to go and i think we need some policy shake up to realize that. both these leaders are pragmatic they realize the u.s. very influential and i think they want to work with the u.s. . ok well jill i mean i think the problem is not one versus the other well that's what it gets down to in washington and i mean again in washington wants a gemini ok i see that russia and china visa be the. i'd say it's one at the very least peaceful coexistence but going back to you know what would jim is saying and i mean it it's either one way or the other that is not going to work now because china and russia did collectivel

and china, and i have been in china over 40 years. it has developed into win-lose with the u.s. losing. there is not a level playing field, this is how american companies are treated in china, . the industrial espionage is at an unacceptable level, and we have to get back to a better balance. i do agree that the u.s. had to address this. secondly, and however, it is in both countries' best interest that we get a resolution. i'm more optimistic than others that the resolution will curb, thethe question you ask is right way to ask it, it is not about delaying tariffs. it's can we get the resolution on the election property protection, a level playing field between the businesses, and the countries, and do it in a way where both countries win. i am probably more optimistic this will be resolved over the next week. paul: one of those stories connected to this is these light chain, and how invent tech made hp equipment and is shifting its operations back to taiwan, so in that environment that you win-lose, theof thd, the ongoing battle with no end in sight, if you are diversifying yo

i'm also watching china everbright and china literature earnings. they last closed up 3/10 of a percent and analysts say there could be strong growth sales because of intellectual property operations. switching boards, look at this chart, the gap between -- the gap is widening. anchoring the currency stronger with the fixing versus the onshore is rating appeared the market concern of the yen falling off a cliff is receding even though the seven level has been breached. it doesn't mean the yen will fall unchecked. paul: thank you very much. that is it from "daybreak: asia ." markets covering -- coverage continues. markets:for "bloomberg china open." this is bloomberg. ♪ at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. there is reward. ♪ ♪ beyond work and life... who else could he be? there is the moment. beyond technology... there is human ingenuity. ♪ ♪ every day, comcast business is helping bu

do to win the tech war with china? >> i think we are at a point where this relationship is going to be rethought quite a bit. >> peter thiel gives maria his take when "wall street" returns. ♪ ♪ ♪ ♪ award winning interface. ♪ ♪ award winning design. ♪ ♪ award winning engine. ♪ ♪ the volvo xc90. our most awarded luxury suv. ♪ ♪ could you email me the part great about geicon, tim. making it easy to switch and save hundreds? oh yeah, sure. um. you don't know my name, do you? (laughs nervously) of course i know your name. i just get you mixed up with the other guy. what's his name? what's your name? switch to geico®. you could save 15% or more on car insurance. could you just tell me? i want this to be over. you wouldn't accept an incomplete job from any one else. why accept it from your allergy pills? most pills don't finish the job because they don't relieve nasal congestion. flonase sensimist is different. it relieves all your worst symptoms, including nasal congestion, which most pills don't. it

and china soon. the question is whether the wheels are falling off or whether we are just going to continue to be an at new status quo. >> the president tweeted we don't need china and would be better off without them. is he right? >> well, he's certainly right that the united states would be better off if we didn't have confrontation with the world's second largest economy that doesn't agree with a free market system so in that regard it would be better if we didn't have that competitor, didn't have a major state capital economy. but given that china is there and they are the size they are and they do have the system they do, the two largest economies in the world need to trade. and while we certainly would much rather if they adhere to our rules and stopped stealing our intellectual property, the fact that trump tweets that american companies need to start making plan to get out of china's not in any way feasible for the foreseeable future. >> ian, president heading to the g7 gathering this weekend

china-u.s., u.s.-china, china-u.s., there are massive leakages within the foreign exchange market. what is the pear we should watch away from dollar renminbi? >> clearly safe havens, dollar-yen, but also the swiss asia fx market because of the drop off in renminbi we expect asian currencies to be under tremendous depreciation pressure and remain for some time as long as the trade war is unsolved. tom: when you look at the discussions of the last 48 hours and the carnage in the market, our politicians aware of the second and third order knock on effects? >> may be aware but they may not be interested because the focus now is on the u.s. and china politicians and they have a lot to lose. the political trust is destroyed and i do not think they will focus on the global impact. for central banks, that is something they have to look at. tom: daniel morris, yesterday, the vanilla to send spread in the united states, like a cocktail conversation, barely moved. what we saw yesterday was a bond back on economic slowdown. how much will that slow down the? fare do not think so significant, mu

gemini that's a competition really it's competition and i think china china and russia are both open to a partnership with the u.s. they're not anti the u.s. but they want their own there their own vision and they have a shared i think shared geo political economic development vision for the world not just for central asia but and i think they're working that closely together and i think other countries realize that they respect them as well so i think there's a dangerous path for the u.s. to go and i think we need some policy shake up to realize that. both these leaders are pragmatic they realize the u.s. very influential and i think they want to work with the u.s. . ok well jill i mean i can the problem is not one versus the other well that's what it gets down to in washington and i mean again in washington wants a gemini ok i see that russia and china visa be the. i'd say it's one at the very least peaceful coexistence but going back to you know what would jim is saying and i mean it's either one way or the other that is not going to work now because china and russia did collectiv

can impose on china. china already faces significant u.s. tariffs. >> what we are seeing is a message from the pboc that the yuan has not become a one-way bet. it is a shot across the bowels. >> the stock market bounced back today. i am feeling that maybe this is recoverable after all. it is hard to see how that happens when people get doug in. it becomes a personal confrontation between the chinese president and trump. neither person wants to back down and lose face. trade should not be personalized that way and i am afraid that is what happened. >> central banks have taken center stage today. the yuan has cut its rates by an unprecedented 35 basis points. in new zealand, the fed announced a larger than expected rate cut there. 50 basis points. --central banks are really willing to go big. sayingjames bullard there is no reason to pile on rate cuts. markets don't seem to be buying that. traders are pricing at 100 basis points at rate cuts from the fed over the next year, that will be on top of the production we got in july. is central messa

out of china. the survey was conducted in june before trump tweeted a director for american companies -- directive for american companies to stop looking at china. as simply global ratings is cutting debt to selective default after one of cyrus -- b uenos aires postpone payments. notes are ahead by institutional investors this year and it will seek a voluntary be profiling of $50 billion of longer-term debt. and the iranian oil tanker u.s. for alleged smuggling seems to have changed course and the eastern mediterranean. apparently sailing away from its expected destination of turkey but it is not clear if the course is temporary or permanent. last week, it was showing the turkish port of merson as its intended destination. the reserve bank of india raised its gold holdings by 9%. that is the biggest purchase in nearly a decade as global central banks bolster defenses against trade tensions and cyclical slowdown. bought one than 50 tons of gold last year, raising total holdings to 618 times. global