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

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

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 china. paul: indeed. for more on that, let's get to our next guest, a longtime advisor to china's leaders and multinational corporations. he received china's highest award from president xi jinping last year. he is also the author of "how hinese leaders think." in this environment of escalating trade and potentially currency wars and diplomacy by tweed, how will china's leaders be inking right now? >> they are in it for the long haul. unfortunately, this has gone way beyond trade. it is technology, currency. it is somewhat paranoid thinking in both places as we see nationalism rising. the temperature of nationalism is always negative on rational approaches. the economy of both countries are affected, as is the world. one hopes that rational voices will prevail. we have unfortunately in both countries -- media has become somewhat shrill. puttingresident trump additional tariffs, putting china in a very awkward position. the irony is that we were very close to a deal of until may. both sides said about 90%

and china. obviously china is on much weaker footing, if you will, from an economic standpoint than the u.s. so the timing of taking china on now is certainly there. and i think it is exactly as you said, the u.s. is beginning to think about, talk about themselves, the long game, if you will. you listen to some of the advisors to the president who say, you know, this is not about what the stock market is going to do over the next months, even six months or more. this is about taking on china now so that 10, 20, 50 years from now, we don't find ourselves having to be much more aggressive in terms of keeping china check. and so i think that, you know, this is what has come together. the time is now. because of this president. because of the relative strength of the economies in the two countries, to actually, to take this fight on. and that is what the president is doing. ashley: courtney, very quickly i want to ask you another question i herd what you said earlier, nothing has worked at all when

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 do territory and also more recently the indo-pacific trump china and the 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's 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 including its defense secretary and national security adviser opening busy to raise concerns about that there should be espionage we didn't see lots of chinese illegal workers and citizens i

and china over trade. of course china did allow the yuan to fall to 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

china and it shows how. true it propaganda ideology there we go muslim minority in northwest china they are being monitored very closely. region it's like a testing ground for total states of aliens police officers into what's called the integrated joint operation perform the program collects extensive personal data and flags individuals who appear potentially dangerous the organization should. and 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 are we can see that ordinary routine regal behavior is being treated by authorities as suspects the data gathered citizens is shockingly comprehensive includes information ranging from religious affiliations and driver's licenses to employment records 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 helped single out

all you have to do is ask china. ask china. but let me just explain. so china is devaluing their currency. they're also pouring money in. their currency is going to hell. but they're pouring money in. that will totally pay for the tariffs. they're not being paid for by our people. it's being paid for by china. because of devaluation and because they're pumping money in. thank you. thank you, everybody. >> [question inaudible] >> you interviewed the wrong farmer. number 2, any amount that china sucks up, we're making up out of the billions that we take in. remember this, our country is taking in billions and billions of dollars from china. we never took in ten cents from china. out of that many billions of dollars, we're talking a part of it and giving it to the farmers because they've been targeted by china. they come out whole. you interviewed the wrong farmer. >> neil: all right. i don't know where to begin here. just to be clarifying, china isn't paying these tariffs. you are. you know, indirectly and sometimes directly. it's passed along to you thr

in china and it shows how. true it propaganda ideology there we go muslim minority in northwest china they are being monitored very closely. region is like a testing ground for total states avail and police officers into what's called the integrated joint operation from the program collects 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 works like standard fare for police but as we dig deeper into the our 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 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 helped single out detai

in china and it shows how. true it an ideology there we go muslim minority in northwest china they are being monitored very closely. it's like a testing ground for total states surveillance police officers into what's called the integrated joint operation performed the program collects extensive personal data and flags individuals who appear potentially dangerous the organization should . and 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 are we can see that ordinary routine we will 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 and even gathers data on residential energy consumption movement patterns filmed by the ever present surveillance cameras if something appears out of the ordinary consequences can be devastating for example it's helped single out detain

in china and it shows how. true it propaganda and ideology there we go muslim minority in northwest china they are being monitored very closely. region it's like a testing ground for total states available police officers into what's called the integrated joint operation from the program collects 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 riegel behavior is being treated by authorities as suspect the data gathered in citizens is shockingly comprehensive it includes information ranging from religious affiliations and driver's licenses to employment records and even gathers data on residential energy consumption movements 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

does not need china, saying quote, we do not need china. frankly would be far better off without them. the u.s. chamber of commerce chiming into the tweets, they share the president's frustration but encourage him to continue constructive talks between the two countries. trump demanding that u.s. companies move out of china, relocate manufacturing here in the saying our great american companies are hereby ordered to immediately start looking for an alternative to china. but the national retail federation is saying that a u.s. exodus from china would be not only unrealistic, but costly, it could take years to move supply chains out of the country. the president also calling for carriers like fedex, ups, the u.s. postal service to screen their shipments for illegal fentanyl being funneled from china here into the u.s. fedex and ups responding to this saying they follow all protocols and security measures to make sure i will is lit products do not make their way into their shipments. the president does not seem bothered by the ma market move o

china, we can't just make an even with china. we have to make a much better deal with china, because they have an unfair playing field, and i am turning it around. we are getting 25% of $250 billion. now we will be getting 10% of probably close to $350 billion. that is a lot of money. china has to do a lot of things to turn it around, but you will be seeing -- it goes on september 1. frankly, if they don't do them, i can increase it substantially. if i wanted to, i could increase it to a much higher number. >> [indiscernible] president trump: well, it is in a process right now. i know the case right now. it is a very sad situation. it is heartbreaking, but that is in a process, so i will not get involved in the process. as you know, they will be making a final decision over the next 10 days, so i will not interfere with the process. >> [indiscernible] president trump: we have been moving it down. we have been moving it down from syria. we defeated the isis caliphate and we have 100% of that. we have 2500 prisoners. europe is goin

told me that actually china man kind of bowling so cricket and china are correlated for a long time and cricket was played for the 1st time on chinese soil way back in 1058 when in shanghai. a thesis from the dr then dr h.m.s. highflyer a ship from the u.k. that landed there the dock there and there was a high level so cricket has a long history but 150 years later the gentleman scheme is still stands where it all began so quick it hasn't got its launch pad yet. though i mean it's being played quite radically but. for a long time cricket is still trying to or stick it sneak out in china because other sports especially the olympic sports have kind of a predominantly. popular in china and where it has to you know that's it for the time being you're you do say if they can a back seat but from the as you sort out of port of the roughly 80000 people who are playing the sport in china of them about half are women why is it so popular amongst women. yes as you mentioned the figure 80000 people are really getting china at this at this point of time but i must tell you most of them have been

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.

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

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

-china trade talks. as citizens of the united dates, myself and my colleagues in china, we would love to see a u.s.-china trade to because it would probably help both countries, but as we said before, we want to talk directly to the u.s. government. oaks think because there's the will be thewe subject of trade talks, that means everything is political. the fact is we believe there will be certain restrictions placed on huawei just as there are on ericsson and nokia and we are happy to talk with the u.s. government about that. >> how are you trying to allay concerns over government issues? >> when we have the opportunity to talk to the u.s. government, about provenlk risk mitigation methods that have set of side -- satisfied the u.s. government that have allowed nokia and ericsson to do business in the united rates -- in theeir did ties united states their deep ties to china. country likes to have things specialized for themselves and we are happy to talk about that. >> one of the issues is that course, i

we've seen a change in the trade gone from trade rhetoric to china to china let iting curraey drop to saying they're not going to buy anymore imports and this now has gone from the name calling stage in the playground of the sticks and stoeps stage in the playground. it's not a good thing, but going back to chairman powell, i thought he did a great job and the rest, boy, investors have to take a deep breath i think prozac sales must be surging. >> in interpretterms of the vol, the rubber hits the road many september, typically, ceos make decisions about whether or not they're spending or how much with the backdrop of this volatility, do we run the risk that these ceos pull back? i want to remind people of the comment, we can talk ourselves into a recession at this point >> in fact, it's already happened if you look at last quarter's gdp, we lost one percentage point on annualized growth because business spending just didn't really happen and so any uncertainty is going to make business leaders you know hesitate from taking out their checkbooks >> you know, ron, before we get too deep

and china side. pressed by reporters, he said i don't want to talk about calls nobody that we have talked to have been able to offer details about who called who, what was said, whether there is a new timetable for negotiations that is question number one. there are to host of other questions. the bilateral relationship between the u.s. and france. the u.s. approach to the e.u the question of brexit so many questions to hear from the president on at this point right now not sure exactly when we will hear from him. things are fluid here in france, guys. >> just to read into what you are saying, eamon, feels like the president is caught between wanting to go hard and tough on china and not wanting the market to fall apart. is that what the tension is? >> reporter: sure. well, he clearly has both imperatives in mind. you saw this sort of odd moment over the weekend he was asked if he had second thoughts about the china trade war and he said, sure i do, i have second thoughts about everything within mome

it costs china. what has happened a lot of companies are moving out of china so they could avoid, china had a rough, this is their worst year in 27 years according to yesterday's "wall street journal." i don't want that but when my people came home, they said we're talking. we have another meeting in early september. i said that's fine but in the meantime until such time as there's a deal we'll be taxing them. which, we're getting very good numbers from the border. the 21,000 soldiers supplied by mexico. i want to thank mexico. they're doing a great job. the numbers are way down at the border. reporter: on north korea, they apparently just launched their third missile in a week. is kim testing you? >> i think it is very much under control. very much under control. reporter: why do you say that? will you start negotiations again, sir? reporter: [inaudible]. >> what would you say it is? let me ask you a question -- right, right. right. sure. sure. what would you say when china, for the last 20 years ha

the china open is next. this is bloomberg. ♪ from the couldn't be prouders to the wait did we just win-ners. everyone uses their phone differently. that's why xfinity mobile let's you design your own data. now you can share it between lines. mix with unlimited, and switch it up at anytime so you only pay for what you need. it's a different kind of wireless network designed to save you money. save up to $400 a year on your wireless bill. plus get $250 back when you buy a new samsung note. click, call or visit a store today. to "bloomberg markets." yvonne: we are counting down to the open of trade on hong kong and mainland markets. david: john is preparing for the worst as washington flip-flops about leaving beijing increasingly unsure of u.s. policy. yvonne: welcome is the first of banks to report earnings. investors want to see how the trade war is affecting lending and performance. tom: and we hear from china's drug regulator as opioids become a crucial part of the trade ta

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 joe i mean i think 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 in 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 russ

china is doing very poorly. the tariffs have been into china. they haven't been into us at all except for the reporters that make us want to look that way. we've taken in close to $60 billion in terror of money. the consumer has not paid for it. at some point, they may have to pay something. they understand that. our farmers understand that. they know we had to do something about china. we are doing something about china. that being said, we are having good discussions with china. they want to make a deal. we will see what happens. we had a deal and they decided not to make it. now, they would have liked to have had that opportunity. i think they missed a great opportunity. they feel that they missed a great opportunity. china very much wants to make a deal. we will see what happens. yeah? >> [inaudible] involved from the standpoint of, they are very anti-jewish and anti-israel. i think it's disgraceful, the things they've said. this isn't just a one line mistake. what they said about israel and jewish people is a horrible thing. they become the

is in a strong position as the trade war with china intensifies china denies u.s. accusations of being a currency manipulator the move has led to market volatility across the world but the u.s. government is defending its policies. this is a transformative president. who is going in many places where prior presidents and both parties have fear to tread. he is determined he's rebuilding the american economy which is going very strong. and i think part of that has to be trade the united states has frozen all venezuelan government assets the measure blocks all u.s. companies and individuals from doing business with president nicolas maduro the administration venezuela's foreign ministry has called it a criminal economic blockade and it comes as delegates from more than 50 countries including the u.s. are meeting in lima the u.s. national security adviser john bolton is part of the delegation. the united states has warned turkish forces against moving further into syria turkish president project labored iran announced he would send troops into territory controlled by k

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 joe i mean i think 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 in 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 rus

china controls all the banks. china is a currency manipulate or this is no surprise. xi didn't want to hear it publicly today in four tweets but what the president is saying , we've all known. look a lot of us grew up in the post-world war ii baby boomer era when the stuff the only products on the market were japanese toys and they were terrible. japan has come a long way. well now china is the driving economy. so look, and this is something i wanted to say today is the most important thing to xi is saving face, and respect and honor within the communist party and amongst his people. he doesn't have to face election in two years the way president trump does. he's like a king. he could be like prince charles, he could be king for life. >> tom not to interrupt you but question for you. he does have to face consumers. he does have to face the chinese wrath in case the economy really torpedos there. what is the effect on consumers of shifting all their demand to brazil and other sources which are, i think, higher cost, and devaluing the currency which also makes everythin

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

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

i guess the two significant developments between china and u.s., is china allowed their currency to deprecate through the psychological level of 7 and overnight the u.s. labeled china a currency manipulator what do you make of those developments >> i guess the key message is that the persistent trade war and related uncertainty that we've seen so far is likely to drag on for longer the chinese move on the currency front means it escalated to an fx war so china is no longer hesitant to use the currency as a weapon. it's not really that surprising. the chinese policymakers use either property prices, stimulating property prices, fiscal policy or credit stimulus as measures to stimulate the economy. they also have this long-term or medium term plan to de-leverage. so they stayed away from credit and property market so what they're left with now is the currenc currency >> let's take this back to the market and the implication this means for the markets. we had a huge day of volatility yesterday in equities and currencies it looks like we're entering into a new paradigm now. the authorities only h

from mainland china when we talk about this because we know that we have a friends. for example we always have a relatively high freedom of speech freedom of media we can get access to facebook and twitter and the internet without any restrictions which is very different from the mainland china ok and it's also the court system as well which hong kong has been so successful because it has an independent course is that there is the rule of law that is also a main difference along with freedom of expression isn't it yeah exactly in hong kong we always trust such a system and we know that it's independent from and ministration we know that we have always trust that the government would not interfere a city in 2 and a. law and each of the show ok so it's a long way from where we are today to a police state that so many people fear how one of the problems that protesters have been pointing to is the extradition law that the citizens of hong kong if they are charged with a crime would disappear to mainland china basically what's behind these fears of being extradited to ma

and china? and then further to that, what is the ecb going to do people expect them to cut rates next month people now price that the fed is almost guaranteed to cut rates next month there's 2.5 rate cuts. four by next year. the bond market is showing fears we're perhaps getting closer and closer to having a recession, maybe not just in the u.s. but a global recession due to some of the policies. >> bob, how close did you watch the yield curve when deciding what is a legitimate evaluation for equities i think any equity investor has to pay attention to what is going on and, you know, everything about the inverted yield curve and what it means. it signals a recession or often does yeah, you're concerned because are you missing something in the earnings but i think there's, you know, all the factors right now going on so, yes, i pay attention and then i look at, you know, there's some question about should you be buying more dividend stocks? i'm not. stocks can go down and dividend stocks is the f

-china trade scuffle. 20% of iphone demand will come out of china. apple and cook continue to be center not just on supply side but demand side. given what happened the news this morning really came out of let field and this is something the bulls will run with for the coming quarters. neil: if you had any doubt that trade rules the roost on the market, this proved it. i was referring to trade as being sort of like the abusive relationship issue for the markets. it could be extreme. we put up with a lot when all of sudden looks like a deal isn't favorable. we celebrate the slightest hint could look a tad more favorable. what is it about this issue, disproportionally walloping these markets to upside or downside? >> a lot comes down to pure numbers. for apple it was a 20, 25-dollar overhang for the stock. you would think 55 cents of eps, i put a multiple on that, that is a huge overhang on the stock. you have seen disruption on semis across tech. you look at leaders in this market is tech. this is the dark cloud that was partially cleared. some say it

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

of china?m this president trump being annoyed about the dominance of china? it may well be back if you look at how the negotiations have gone over the last 18 months, and when we saw back in junejust how 18 months, and when we saw back in june just how it looked like the two size might come to some sort of agreement, what we are seeing now is they are further apart than they have ever been before. if you look at the signals coming out of the central bank of china today, where this all began on monday when they sent a signal to the market that they were willing to get their currency get past that seven unit to the dollar point, today we have seen a signal that is being read by many a nalysts a signal that is being read by many analysts saying, we don't want it to get that weak against the us dollar. it is not always advantageous for china to have a weak currency against the us dollar. it makes imports more expensive and it makes servicing debts quite difficult as well. it is a difficult situatio

-china trade war. president trump accused beijing of not doing enough to curb exports of the highly addictive painkiller as u.s. deaths from the drug skyrocketed. the white house decided this was a reason to raise tariffs on china, but china's narcotics regulator denies the claim. here is his exclusive conversation with tom mackenzie. ♪ politicians out of their own political necessity fault,rd the facts, find make small things big and turn black into white. it is supposed to be a simple problem that became complicated, and clean water is muddied. sanctionedrecently read chinese nationals and two companies operating in china. actionu be taking against these individuals? will you be taking action against the companies that produce fentanyl products? at the time that these people were making these substances, the chinese government hasn't announced the controls. what these people were doing didn't violate china law. but some in the u.s. political circle take issue with this and want to implement sanctio

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

cdc, china cdc, china fda, u.s. fda, can help the collaborations -- influence of surveillance that that they brings, signing an agreement for capacity, then chinese putting in more than $400 million into building these labs all over the country, more than 500 at capacity, providing data and sharing the data for both countries. see, what isen we the target? that is some of the data used for international organizations. term, if we want to address the fentanyl issues, i -- theirengage china leaders are very sensitive to international opinions, and they want to be part of the global governance. framed as at as synthetic drug problem. yesterday i saw a report saying opiates, thehe illegal opiate production, is actually in africa. tramadol. certainly we are all focusing on fentanyl but there are larger epidemics out there. bringing china in as an active player, that coalition i think will be the fastest way to get their attention and bring their priorities so it can change their policy. >> and i appreciate all of that. c

it comes down to with china specifically, china needs it economically speaking. they're very dependent on the us. trump needs it politically speaking. it paves the way toward at some point i think we'll see a deal. >> although our relationship with japan is very different than our relationship with china. it's much friendlier. >> there's more at stake in china in terms of intellectual property theft. will they make a deal without that? i don't know how the chinese economy really survives without it, though. >> it's 4% of china's gdp china needs us a a lot. we don't talk about that enough in the news. i think that's one of the reasons -- what's going on with beijing, with hong kong, there's a lot of pressure in china. it's not just on the u.s., who has a he very strong consumer. >> that's probably why they're willing to come to the table. dagen: but there is clear and present danger, though, if china weakens dramatically and the world weakens, so goes the u.s. potentially. certainly, you had the two-year yield closing above the 10 year yield for the first time --

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

the big kahoun that here is china. america, china. brian: if we don't deal with them we have to have a plan b. >> start to talk with them again. long running process. he is the negotiator in chief. it's the art of the deal and he is right smack in the middle of it. i caution it's a fluid situation. brian: a bad deal can cat can a his mic for the president. cataclysmic for the president. >> i wouldn't say that at all. >a short-term deal they buy billions of dollars of our farm products. we drop or lower the tariffs we imposed. brian: if it ends there it's a bad deal. >> continue talking over the future major issues of intellectual property theft and stealing. katie: is the long-term deal to move away from china. >> long-term goal hold china in check, make it behave better and open up more trade around the world with china, with europe, with japan, with everybody. more trade is a long-term goal of this president. steve: all right. speaking of trade because of the trade troubles and the stock market over the last week, the "new york time

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

. >> 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

and china. the u.s. and china. announcer: the following is a paid presentation brought to you by national debt relief. are your credit cards maxed out? are you just making the minimum payments, or worse yet, falling behind in your bills? are you stressed out all the time by your debt? is debt keeping you awake at night? there's reason to worry. check out your credit card statement. if you're only making the minimum payment, it could take you over 20 years to pay off. >> having debt is like having a tremendous weight on you and you can't lift it.

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