china. my guest today are andy anderson from the university of northern iowa, ling zhang at cornell college and david nordmann at coe college. i'm going to ask andy i met at the university of northern iowa's jepson symposium. each of the last two years he shared a dinner table with me, he was very kind to my students, and then he gave a marvelous talk last year about the chinese economy and the business relationships between the united states and china. tell us a little bit about how your interest in china developed and what you're going to bring to our conversation today. andy: thank you f introduction. i actually first went to china by pure chance. i'm from boone, iowa and studied at northern iowa for my undergraduat e degree in supply chain management. at the end of my degree, my adviser at the time encouraged me to take an internship in china in the international logistics department of a large chinese state-owned enterprise. i didn't speak a word of chinese, and i'd never been to china,

china sea. most of you are familiar with the claim that began in 1947 that basically is called the cows come as that's what it looks like to 80% of the south china sea. we are there now circling around some of these fortress garrisons which china is trying to turn into real territory. that is a flashpoint and of course you have the issue of taiwan. china calls it the renegade province, an island of over 20 million people who are right now really depressed and afraid for two reasons. one is that they see china swirling like a python and circling them and they also see the u.s. which may no longer have the resolve to stand with taiwan. i interviewed one professor who proposed a grand bargain that basically trained taiwan for peace everywhere else. everybody also talked to didn't think that was such a great idea but it does reflect the fact that if push comes to shove, we might not have american forces standing up for taiwan like bill clinton did in 96 or eisenhower did several times in the 50s. an

south china policy, new south china policy, that means that the new government in taiwan avoids the chinese government to make a good relationship with southeast asia countries. i'm not optimistic because i think of those countries, and in mainland china in taiwan, and southeast asia -- in china, more willingness to cooperate with new government in taiwan. today, taiwan can benefit from its role in universal barriers. if taiwan tried to take advantage of deteriorating relationship between mainland china and the united states it would be a miscalculation, very dangerous. some people disagree about its conclusions, what taiwan can play you don't try to maintain or construct a relationship with mainland china. possible for taiwan to play a contractual role, but not saying the government should always rely on the goodness of mainland china and to find a new way through mainland china and to improve the current situation, thank you. >> what about here? the new wave so if you have a way for that and another question, china will be forced to taiwan and a message to taiwan to take some action? >> t

there is a new china. you can speak to that new china. i think we are going through a cyclical, you can't help but go over that adjustment. that last two or three years. it comes at a bad time for the rest of the world are in when you look at its impact on commodity prices. when you look at the vulnerability of the rest of the world in terms of anna terry policy, that's a bad combination. we'll get past that. a bad year in china is a great year in almost any other country. francine: do you question their commitment to structural reform? is there a danger? christine: we went through a couple of years of intense discussions with the chinese of parties because we were going to review the baskets of currency that define the value. this is what central banks around the world use. if you asked me if the chinese of 40's would complete the forms they had to take in order to satisfy the criteria of that currency, i would've said i don't think so. when the authorities their mind and are determined for strategy, we have seen in that case an absolute

we can do this in china. of course consequently 30 years later the interest of was tragic for these families. they lost their only child in many cases. one of the first i did after that was families who in a matter of weeks for russia not to do reverse vasectomies to reverse the sterilization process they had been forced to undergo. >> host: there is a term that there's ever been a distinctly can, it is this one. can't talk about what that means? >> guest: it is a term that means the parents who have lost their only child is really a phenomenon. recently it started from an earthquake. nobody called it that back then. about a million now with about 76,000 have been joining. what makes them different is they have tried beijing for more benefits and more help. to lose an only child of the chinese context of the many cases to lose economic security. family was still very important so when you lose your only child, your retirement plan. that is just a pure economic sense, but then there's emotional issues and issu

tonight on mosaic, china has a new slogan. narrator: introduced by chinese president xi jinping in 2012, the china dream is a pledge to rejuvenate the nation. prof. cheah: when i hear china dream, the first thing i think about: materialist consumption. ai weiwei: i think it's just a nightmare. narrator: is the china dream of security and economic prosperity for all chinese citizens or only for the well educated and fortunate enough to already be middle class? professor taz frazier: you know working class, working poor, rural chinese citizens are finding the chinese dream to be a myth. prof. stan rosen: it's being introduced at a time when you're trying to pull back everybody who is going off in their own 1.3 billion directions. narrator: tonight on mosaic, through the eyes of film makers around the globe we explore the china dream with intellectuals, overseas students in america, migrant workers in beijing, and an entrepreneur in africa. tonight on mosaic, the china dream. dean yam yeutong: national rejuvenation refers to thos

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

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

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

all about china. why? >> first of all, china's economy has been on a downward path for the past two or three years. and that has been felt globally. theas been reflected in earnings of certain companies around the world and their share prices. we have been living with and digesting china's slowdown, even if we haven't realized it, for some time. if you have a selloff or a series of selloffs in china, it's not really a reflection of the long-term downward trend. stockhe fact that china's market has been completely out of sync with the reality of the chinese economy for the past year or more. there was a bubble. when the bubble burst, the government intervene to prop up prices at unrealistic levels. overdueare seeing is an correction to an overpriced market. the sell off doesn't mean there is some new thing happening in china that the rest of the world has to react to. angie: you're absolutely right. a lot of china watchers point mainland activity is mostly retail investors. this is a momentum driven pl

by china. you one to one life in talking about vietnam's and how they want us back. >> bid from the chinese didn't india but we have more friends than wait. [laughter] is a great place to start. i gave you clues today and the sympathetic but just to add to that point in thin tube go to another region is important point. we haven't mentioned are the two other points better dash. china's gdp is dropping bid is scheduled to drop more. it is projecting in the three and 4% range of 2020 with the world bank projections that seems to be what we're coming ask but they started to use populations. >> the whole idea of a comprehensive national power, china had that 200 years never taken apart. by american and what i see is happening with the china commission which is bipartisan never publicans and democrats and fiber its because when we give in to north in since he do the ideal but obviously they'll have a job to buy them. this is the nervous on the economy. each year to push out that is to get to give th

you would always couch that saying china will always be china. >> was that a mistake? >> it was a mistake. when i think back to that period, one of the things that i think we -- certainly that i came to assume about china was that it would move down this path where every year it would get a little more open and there would be moments where it could step back. but it would ultimately keep moving in that direction. and i think fundamentally this is sort of a slightly different conversation, but fundamentally that's probably true but i think we need to talk for seriously today and in our writing about what's going on at the moment. china really has stepped back. >> was that a historical moment in time? in other words, the '90s, the collapse of communism, the collapse of the soviet union, the moment in 1989 in china gave the united states the sense that everything was moving in terms of political, culturally, tropism was towards some as it were americanism, universal americanism with chinese characters or latin american characters or whatever. a colossal delusion. >> yeah.

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

in china. we have had a lot of easing coming through from beijing, and this is the one that got people worried that they will be adding to leverage when they should be deleveraging. he talked in particular about the corporate debt overhang of bad loans as something that needs to be addressed while still trying to maintain this medium level of growth and development in the economy. angie: but how? things, quitethe debtroversial, is equities crops. the financial institutions, the financial sector, is still fairly undeveloped. that's going to be something they will need to address. is looking at plans to convert that into equity stakes, and this seems controversial, because what you have are banks that can take the bad loans from corporate's and conferred them into the stake of the equity of that company. it is great for the companies and the balance sheets in the sense it gets bad loans technically off the books and frees up more money for the banks to lend -- t alongbut it passes i to those inve

including with china. second, you asked very appropriately about enforcement and congressman sherman brought up a very important point a moment ago, some of the concerns that we've had with past trade agreements, i think it's a very well taken point. unlike previous agreements, tpp actually includes, a clear rule on rules of origin. we want to make sure that parties that are not part of tpp can't go to another country, have a few things done, and then have the product benefit the tpp rules so for example, china finishing something in vietnam, that's why we insisted the rule be part of the effort. but it has to be implemented. and everything else has to be implemented. that's why we've asked in our budget for a significant portion of resources to go to implementation. we want to make sure it's done seriously. finally i agree with you that look we can debate the economic merits of tpp. and no trade agreement is going to be perfect. i think the larger challenge we face is 95% of consumers live outside of the

to some extent, china is a reflection of overinvestment in china, but also a reflection of not enough demand overseas. both of those probably require stronger fiscal spending in order to get the demand going to eat up some of the overcapacity we are seeing in china. angie: is the problem kind of like everybody wants to be an engineer but nobody wants to be in construction? markus: interesting. i am not sure that i would differentiate much between the two because, in a way, they are tied together. ae manufacturing side was sector that china, in particular , chose to stimulate its economy posts 2008 -- post-2008. the overcapacity there is what is weighing on growth now. a number of countries around the world have cut rates in order to stimulate exports and manufacturing, but what they are really doing is inflating housing bubbles. canada is an example, australia is an example. it is part of the same story, but different sides of the coin. ofis an unwanted side effect what we are seeing on the policy side. rishaad: marcus shorter -- mark us joining us for a discussion. israel carried out

it is day one of the greater china conference, the ubs greater china conference. more in the next hour with the ubs ceo. turning now to the first word on the stories making headlines around the world. showing the tv is celebration of last week's nuclear test with senior military officials. kim called the test a self-defensive step and it was a legitimate right of a sovereign state. united states has called on china to support actions against the north. said theynot -- they were not informed of the weapons test for -- beforehand. a strong response from the u.s., flying a b-52 armor over the peninsula. 's decision toul resume broadcasts in the d military size -- demilitarized zone. the two countries are being pushed closer to war according to korean officials. mexico is moving towards extradition of el chapo to the united states. chapo humiliated the authorities last july by escaping from prison for the second time. house has criticized sean penn for his october interview with el chapo at a secret jungle location. it was for a rolling stone article. some say sean pe

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

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

where is china? china? not because of our pressure. i have seen, over the past year or so some articles, especially in the new york times about chinese officials, former military officials, retired, talking about the unsustainability of the kim regime. there is a real concern in china about instability in north korea. i would like to hear that discussion. there's going there's going to be pressure from the bottom up. people cannot live under those conditions. the chinese know this, the chinese know and there are real worries about the chinese and about what that instability will lead to in terms of them. so that that leads me to my third point, that is, when we talk about china, it's not getting china involved, china is very involved with the consequences. it may have its own agenda about what it wants to do this. the question is, besides pressure on china, and we have heard a lot, i'm nothing that's not potential, what are the ways a partnership with china? what what you see is opportunity at this point? thank you very much. i yelled

sea. >>> before the ruling, china had been trying to bolster its claims in the south china sea. it upped patrols and built artificial islands in the disputed waters. naoki makita examines the background of the dispute. >> reporter: china has been asserting control in disputed areas using force. a series of clashes has erupted. the nine-dash line, they set up. it cites its historic rights. chinese workers have begun reclamation in the spratt lee islands constructing seven artificial islands. they can handle military aircraft. china has also installed a surface to air missile system elsewhere in the south china sea. >> translator: these islands in the south china sea have been chinese territories for a long time. the chinese government has the responsibility of protecting its sovereignty and maritime rights. >> reporter: frustrated philippine officials have looked to the law to challenge china. the officials told the tribunal the nine-dash line is groundless in international law. they also said the artificial islands were originally rocks and low-tide elevations. the rights does n

and europe was definitely offset i asia and china. -- by asia and china. we are waiting for gdp figures to come out later today expected to show the the biggest slowdown since 1990. does that mean it is coming to a slowdown? yvonne: not quite yet. it is getting tougher to build a profitable business so this could trigger cost wars among customers. what you are going to see is these capital all stop private equity investors and venture capital investors will be taking a look at these companies and saying we will not bs aggressive as we were the last two years. they are pushing for more mergers. this was born because of two competing app mergers. we could see a wave of mergers in the next couple of years. fourth-quarter, despite that they see continued strength and they see no reason to hide things. trailing china's rebalancing. we will scale the summit to find out how developers are changing their tactics. "firstal report when up," returns. angie: stories making headlines around the world. hong kong police say they have received a letter from a security age

the consumer is doing fine in china. is part of the problem we have had, what is going on with the currency. just getting this breaking news coming in. 6.5 against the dollar. what is more important is they are injecting 80 billion yuan. and that is injecting liquidity into this market. is aiming toity stabilize. stabilizing oil and other two key factors for the big picture. we see the cards falling in place. volatility should come down if you look at the next -- the vix. rishaad: you bring the other leg here. th other toe drop was oil. you said there was not stability. there are loyal -- lower oil prices. guest: the consumer is enjoying the low oil prices and th energye consumers. it is good for the overall system. also we could aim for some form of stabilization because we are at the early age for the winter and we are seeing a very mild winter. also a negative impact on oil. the position on iran is it has been announced that it will come progressively into the game. most important will be the next opec meeting. probab

china. last year, we sell revenue of , and 200ion yuan million in profit, almost 10% profit. credit suisse, taken by a surprise and a buildup and liquid trading positions, sparking a loss in the first quarter. the global markets unit will lose money, revenue dropping 45% from a year earlier. debt,gs of distressed leverage loans, and securitized products, triggered $258 million of write-downs in the third quarter. there will be deeper cost cuts, ,ncluding another 2000 jobs bringing the total headcount to go to 6000. the bank was to cut risk-weighted assets in the global markets business by 20% to about $60 billion this year. the coffee chain starbucks is not shy of a challenge. it wants to make tea a hit, and in china, no less, a country that drink's more tea than any other place. starbucks will introduce its products there later this year. and 2013,t t vonn boosting revenue by expanding beyond its core coffee business. it's sales jumped 70% to almost $1 billion, led by growth and iced tea. i

china b because china,a, china, china, china, china, china. traanslator: during the first televised debate of thehe u.s. election on september 26, tmpmp began b by putttting blame on china againi. trtrump: you look at what chinas doing to ouour country in t ters of makingg our proroduct. they e valuing t their currency y and there is nobody in n our goverernment to fight them. val: shortly after that debate, cctv's english news offered these rebuttals to trump's statement.t. reporteter: trurump made several accusations against china, saying essential that when it comes to trade, china doesn't play by the rules. but in 2015, the imf said that the yuan is no longer undervalued. trump repeatedly has argued u.s. leaders hurt the american economy by borrowing too much from china, but he's--he himself has also turned to china repeatedly to raise capital for his business ventures. in fact, the bank of china was one of the entities that financed a $950 million trump building in new york city. val: cctv america's "world insight" program reveals a china

china. that was highlighted as the u.s. and china militaries had a cooperative venture. that is a change from the tension in the south china sea. that raises the question how will the relationship change with the trump administration? we will bring in matt rivers with more. we are showing pictures of the man made islands in the south china sea. china is building fixed aircraft carriers, if you will. fixed military installations. it raised concerns of the neighbors. it is an important and pressing issue to balance with china. we know china often security, economic and human rights, all this stuff is one subject for china. how donald trump will take care of that remains to be seen, matt. >> reporter: that's absolutely right. the south china sea is one of the big hot zones. one of the tension zones in the world in terms of geopolitics. we have not heard much from donald trump. post election and on the campaign trail. trump did not shy away from talking about china on the campaign trail. it was mainly rhetoric on the economy here. when it comes to the military, we didn't hea

submitting daily stories, but living in china and writing about china. i've asked the speakers -- i've actually encouraged the speakers to disagree with each other. because that's what makes a panel fun. let's see if y'all follow through on that. what we're going to do in the next half hour, we're going to look at the general picture, and then we'll look at risks, investment potential, and of of course, although this is about china/latin america, we're here in washington, so we'll look at the u.s. implications of renminbi internationalization as it pertains to latin america. let's get started with you barbara. you've done a lot of excellent work on chinese fdi and latin america. do you see it reshaping the investment picture across the region in the short to medium term? this is a tough question. are there implications really still so much unknown that it won't be clear for years to come of what the real impact is? >> thanks for such a narrow and specific question. >> it's a great way to start off a panel. >> it is. actually you've given meedette it to s

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

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

china has now i think by 2015 china will have one in every four chinese. if they were to form their own country it would be the largest country. that doesn't have anything to do with the one child policy. it's the big population growth of the cohort that they were basically just living longer. but the problem of the policy has as it reduces the working population that you need to support. that's the big issue. unless there is a war or something, people are going to grow older and it's definitely happening. some of the other problems this could result in, some of the speculation we don't know for sure. we definitely know that this big group of elderly people are going to age and we don't it's going to raise a lot of issues for china. >> host: it's beginning to slow down after that growth. if is any of that related to the policy? >> guest: one of the problems was as an export led economy manufacturing and that was powered by cheap labor and now of course that abundance has gone down. there are fewer workers and they want to get paid more. so the transition i

positive on china. compare and contrast what he had to say about china with what we heard in francine's conversation with george soros overnight who says he is currently watching the hard landing happen in china the big subject of davos. let's talk about what is happening right now. draghitalking in -- talking in's right now. -- talking in davos right now. we are up across the piece this morning. not as much as tokyo, 5% plus. center.mains front and that is the focus. that is what we are going to talk about. let's get back out to davos and francine lacqua. francine: thank you so much. we are pleased to say we are hit -- where with ahead of -- jin liqun. this is an economy that will do great. are we overoptimistic? pessimistic? china is doing fine. up to a newing stage of development and adjustment. this could be called a transition. -- a transition period. china should move away from the former paradigm to a new system, instead of putting money into fixed asset investments. export of promoting which are

we'll talk about the absolute focus, which is china, china, china. really looking forward to that, to get you ready. futures negative. stay with us; another hour of bloomberg "surveillance." ♪ ♪ tom: yields drive lower. market suggests between the tug-of-war between janet yellen l marketevi vigilantes. s&p goes to negative. april four's day is upon us. the 2015 predictions. this is bloomberg "surveillance." the end of the first quarter. i am tom keene in new york. francine lacqua and london. the news flow is extraordinary. francine: we have downgrades for china. all of the turmoil actually explains with all of the angst that investors had about the debt in china. janet yellen gave her definitive answer on easing, it seems, and that is impacting currency. tom: global wall street in real turmoil. now to get you up to speed on the first work news, here is vonnie quinn. vonnie: good morning. the security summit is getting underway in washington. north korea will be high on the agenda. the leaders of japan and south korea will discuss the recent nucle

like every other country, china is going to do what is best for china. they need to get the supporters going again. the easiest way to do that is to devalue the currency. you want to reform your economy but they are large and historic industries. they employ a lot of people. you're not going to reform it in a way to puts those people out of work. the service sector has to provide jobs to take up the slack. this takes time. and the rest of the global economy is not really firing on all cylinders. i devalue the currency right now and i'm a big oil importer, it will not hurt as much as when oil was $100. they can still keep importing ore, all the things they will need over the next 20 years as they grow their economy. rishaad: the move to the downside for the dramaticnot been that has it? andrew: people are concerned that there was going to be another big hike. they are aware of the international consequences. going forward they will have to be more transparent. maybe not overly transparent because that has got as many risks as has the other way. china hist

is not true for china. it is more important in china. >> technology is doing throughout. -- doing pretty well. economyare changing the towards a more domestic consumption and focused economy. this has impact on exports of raw materials and energy and so on. >> there has been a disconnect between what the financial markets tell you and what the real economy shows you. it is extremely pronounced in china. the financial markets went their own way almost unrelated to the real economy. angie: we are joined live from richmond, virginia, by the director of international folio management at riverfront investment group. you have been hearing it around the world. it is china. what are your concerns specifically about what is not being done at the pboc level? >> the concerns at the pboc level is the amount of opacity in terms of guidance we are getting on what the currency plan is going forward, what the plan is for accommodative currency policy. the group thatk is in real trouble is not necessarily china as much as i

it is not good for china. then there is a spill-over affect into the regional trading partners that may trigger competitive devaluation. it may trigger wider ramifications for world trade. the one to watch in terms of impact is the yuan. that is the bigger issue. >> the thing is how does this all then -- this is the first time we have really seen an equity route in china really have a huge effect globally. we have seen it take place before, but does this mean that we are getting a chinese economy that is getting more and more ingrained in the global system, or are people worrying about their individual prisons as women? >> goldman sachs said last year was the first year china did impact on the global market. people saying what is happening in the first week of the year may be enough to keep china on hold longer than people anticipate. look at the underlying economy. the route we have had on the chinese market is six months old. under the bonnet. retail sales holding up. housing prices stabilizing. there are in

. -- repeatingeading his claim to china south china sea. let us know what you think of our top stories. follow me on twitter @rishaadtv, include #trendingbusiness. shanghai, shenzhen, and hong kong reacting to that u.s. jobs report. here is juliet. what a disastrous number for that payrolls number. we are seeing weakness come through from a laser on the open. singapore opening higher. from malaysia on the open. singapore opening higher. most of the weakness coming through from the nikkei 225 as the yen holding near one-month highs. this is a story of dollar weakness. the likelihood of a june rate hike in response to that jobs number now only 4%, down from 30%. the likelihood of a july hike down from 50% to 27%. down 1.4% with the yen holding on to those highs. australia, up by a third of 1%. gains from gold players. that shows you how much there is in terms of risk off sentiment. investors flocked to that safe haven gold price. zealand closed today, also korea for a public holiday. hong kong will be close later in the week, so an abbreviate

china claims the majority of the south china sea as a historic right. leaders established what they call the nine-dash line. they argue that they control the area inside those lines. and they've been building runways, control towers, and radar facilities on artificial islands there to bolster their claims. the philippines maintains those claims are groundless under international law. and while they are the first to file a case, they aren't the only ones challenging china. vietnam, malaysia, and others also claim territory in the south china sea. earlier, nhk world's mitsuko nishikawa spoke with daisuke azuma in beijing. >> daisuke, leaders there have refused to take part in the legal proceedings, but that doesn't mean they aren't interested in the case, are they? >> that's right. newspapers like this run articles every day arguing why china's claims are legitimate. and they pay attention to some international opinion. the communist party newspaper, "the people's daily," have posted online comments of foreign politicians and scholars who support china's

china will set the tone. the worse the market's been onto any jobs number, the better afterwards. >> china certainly. if we can follow up with a very good jobs number, then i think we can rally. then people will say the u.s. is on the right path in terms of job creation. the big number mike and i were talking at the break was wages. >> going to sleep tonight watching that china market? >> absolutely. >> thank you for joining me. that's it for us on "closing bell" we hands things off to "fast money." >> thank you. fast money starts right now live from the nasdaq market site overlooking new york city's times square. i'm melissa lee. the man who correctly called the dollar rally over a year ago and august swoon says the recession is here and things could get worse. >>> plus another day, another low for apple. almost 30% off its may highs. could this be your best chance to buy it? or has apple become a no touch stock? oil hitting a 12-year low today. one of the institutional investors top energy analyst says crud

china has been building up its presence in the south china sea. beijing says it on 80% of the waterway, a claim contested by five southeastern asian nations. powered by over 2400 journalists and 150 bureaus around the world, this is bloomberg news. i am yvonne man. right, just getting some breaking news. the associated press, projecting bernie sanders to have won the north dakota democratic caucus. this could be fairly academic given that we had hillary clinton projected to win new jersey, taking her over the winning line to become the official candidate to run on the democratic ticket for the election in november. atht, now let's have a look what is going on with china rebalancing from manufacturing to consumption. do is throw up a huge set of big challenges for the countries provinces. this week, we are looking at .hree of them, is one of the largest planet.ducers on the 80% of gdp is tied to coal, and the provinces in trouble. tom mackenzie went to investigate. economic slowdown is being felt the hardest in places like this. it is a cold town i

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

in china. online games are the likely sales driver. and japan has g7 finance ministers for a two day meeting beginning on friday. this includes sluggish local growth, rising currency tensions and the limits of monetary policy. but there would be furthered to miskick -- there might be discussion of further spending. the president of taiwan has refused to adopt a 1992 thing about the status of the island, if there was only one china. beijing has warned any breakdown in relations will be blamed on her. my next guest has downgraded japan as a stronger-than-expected yen. the earnings and markets lose e-nomics. in ab we have the head of equities in asia. you downgraded your stance on japan after that in action with the boj. >> a bit of a surprise, but it was on the downside. we downgraded japan at that point in time. he sullied the market, and central banks are not helping as we thought they would. reduce japan the neutral position. angie: what does abe need to do to regain confidence? >> central ban

boost been trying to supplies to china, and china is the biggest market in the region. also, china is a big financier over $100t, providing billion in loans and prepayments over the last decade. that has helped to boost rosneft and let it may key acquisitions to help it become the oil giant it is today. india has been a much smaller nower, but it's economy is booming and projected to become one of the biggest energy consumers in asia, and that is an area that russia is looking ahead to. angie: you can deftly argued that their field of friends are shrinking. russian not a key favored partner right now. angie: thank you so much for that. checking other stories making headlines, talks with several asian miners with a view to sell a minority stake. the sale could fetch as much as $7 billion. they are trying to pay down debt through asset sales. vale wants to raise $10 billion through 2017. last year was the first annual loss in 19 years. the brazilian joint venture areeen bhp and vale restructuring loans after that disaster at its iron ore mine. hiredorgan chase has been an

if china is week we don't have to worry, but china is strong we have to look at the strategies that china is adopting in order to fight what it sees as the warhead which gets into the realm of words you have heard, the jargon access aerial denial and asymmetric warfare. once i get to that point there is an issue we have to focus on. i go through the flashpoints for war whether itwhether is south china sea, east china sea, taiwan, north korea, and finally to try to cut throuw you present with seems to be an eventual conflict with china which is where we'll talk about the pathways to piece. i am going to move through this fairly briskly. let's begin with the intentions question. we start with, there is absolutely no question, china needs to have a strong military. no question about that. the british took the port, the opium wars is doing the same thing today, using coercion to take territory from people. germans and french were absolutely brutal us was right there as the junior imperialist at the time and of course we know the history of which appended. the chinese attitude is never again.

china has moved into higher value added products like robots and computers, pitting china against south korea and germany. all this talk we've heard about china losing its global advantage, it's nonsense and not going away. you can see that reflected in the tensions by the fact that we have this big move through and populism and the brexit vote. angie: what about internally? juliette: they are still spending. we saw on tuesday a statement from the state council saying they are going to lift restrictions on infrastructure spending, allowing equal access granted to private investors in sectors such as education and medical care. they are saying it is a good time to boost infrastructure because commodity prices continue to decline. china continuing to ramp up. angie: thank you for that. china may be preparing a comprehensive overhaul of its tax system as well. sources tell us that beijing may change its consumer tax policies to accelerate the ship towards a consumption-led economy. we have bloomberg's china economy editor here for more on this. what are they proposing here? >> sources have

china worries that china would fall behind again. aboutis is a concern technical lagging. 1980's when we began to ,o research on missile defense the goal was to understand missile defense technology rather than deploy the system. because this concern is based on the chinese understanding of the paradigm. in the u.s.-china nuclear dialogue, we do not have much discussion on these concerns. here and ihould stop very much look forward to the comments of my colleagues. thank you. -- >> thank you. chinesehighlighting conceptions of security and safety, the difference between nuclear deterrence and compellance. -- the focus on security situations. that is fascinating. i would encourage folks to read the article. there is an additional issue in that there is a way that chinese equal weightiven to security concerns and economic concerns as they make national security decisions which i found to be a very fascinating insight. what we saw in his presentation of what an institution like carnegie cap reduce. how many other institutions can americ

china was such that the beast. when it reduces its currency like that, it makes me nervous about other emerging markets. this is currency intervention and manipulation of the market at its best. talk to us about the contagion impact. i've got a chart of the dollar, the asia-dollar index. we are breaking trends within the basket. you've got see ny, 40%, hong kong dollar, korean won, indonesian rupee. how much more momentum is there in terms of contagion within the region? let's talk about the interbank rate. i think what we're looking at here, i spent a weekend looking at the pboc's balance sheet. they have the ability to do domestic qualitative easing, to offset the domestic effect of this, which is the result of their attempts to balance the external account and keep the currency stable. trying to hold the domestic currency stable is having an impact. to hold the balance sheets stable is my initial conclusion of how to deal with that. i think you have absolutely thetion marks over sustainable growth rate of this r

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

china stocks rebound after a wild week. they are trying to recover to they were start of the year ever. the dow is up by 22 points. scarlet: wall street gets good news. created 292,000 jobs in december. it could mean a set time for bonds. alix: cheap business opposite robert kinsale has an emerson back of his claim. -- has the numbers to back up his claim. scarlet: a quick check on the market activity in head of the julie releasing a bit of a bounce back although it is fading. julie: it's a bounce around. the markets after a positive reaction to the better than estimated jobs report, they can't seem to sustain gains. investors are trying to figure out what ago video -- where to go from here. if you look at the s&p 500 over the course of this session, you see a lot of bouncing around. did get negative before recovering. we talked about how this year has been this far. it is still the worst start of a year since 2008 because of today's action. we will be updating that throughout the day. in terms of groups on the move, look a

who's afraid of china? phillips beats. europe's china bowls ride out the country slowdown? -- china bulls ride out the country's slowdown? in london. ."u are watching "the pulse francine lacqua on assignment today. let's get you up to speed. nejra: thanks. european stocks are following for a second day on growing concerns over china and the continuing oil price rout. the shanghai composite slumped by 6%. at the same time, crude has plunged below $30 a barrel. a hedge fund manager who is chinese stock that's returned 6000% says investors should sell their shares asap. he's carried a winning streak into 2016 returning 35% so far this must. but now his adv cash, wait and watch. the federal reserve says it's it is meeting to decide interest-rate policy will proceed as planned today is tomorrow. fed officers in washington as well as the federal government were closed yesterday following a severe winter storm which had distracted travel in the region. news 24 hours a day powered by our 2400 journalists around the world, from the bloomberg first word desk,. guy: another busy morni

's republic in china in 1949. security analysts, debate whether china trajectory will lead to a great war. experts disagree on conflict we cannot avoid the impact. afterall china sneak attack on u.s. forces stationed at pearl harbor 74 years ago many thought the idea of war between japan and the united states unimaginable. this is why peter's book and accompanied documentary series are so important. they distill down and raise issue to have analysts understood and to inform a broader audience. they have fashioned a career out of the enterprises each is built around a book and he has published ten could inning several related to china. a professor and dwish economist at the school of business at university of california irvine feater is here to tell us more about crouching tiger what china's militarism means for the world. peter. >> thank you patrick great pleasure to be meerp great honor. i really appreciate the new center for americans sponsoring this and patrick a special thanks to you. when i was doing filming