also saw china as a threat. so it -- they both, so it was only in areas where there was competition that i focused on. and i do not think there was really competition between the u.s. and china in latin america, at least during the time i was talking about. the u.s. was much more concerned about fidel castro and the extent the soviets in latin america. the example about namibia, this issue about china bringing its own labor, i think that is something that has become more and more of a problem in contemporary chinese projects than it was in the 60's. i think during the 60's, you are right, in the case of the trans am railway, there was thousands of chinese workers that were sent. i think there was also some appreciation in ways that these workers were toughing it out in africa. and you know, so there was, the reaction was a little bit more mixed. if you look at the range of african opinions about china and chinese aid in africa today, they are very diverse. you have some african leaders denouncing china and sayin

the onus is on china to enforce these sanctions and to re-enter. the position of china when it comes to banking with north korea u.s. president donald trump has said one thing china is saying and maybe not can you clarify this for us. yeah look at president trump on thursday basically offered more sort of provocative praise of president xi jinping thanking him for the fact that he said china's central bank had now agreed that its banks would no longer deal with north korea well on friday evening china's official foreign ministry spokesman appeared to dispute that he said that wasn't what how china quite viewed it did or didn't conform with china's facts so that once more created a certain amount of confusion i think that what has happened is that privately china has gone along with this because it's worried that the united states might penalize one of its big banks there's been a lot of talk about that and china wants to avoid a situation where one of its banks could be excluded from the u.s. financial system but what it didn't want to do was to ha

so the china, you know, china's leverage is limited. they haven't got it. -- they have got it, they could use it but it is the kind of leverage that could come-- have enormous blowback for them if north korea did fall apart. >> glor: people forget that, they think china and north korea get along, and they just don't. >> they don't. that is the old propaganda line about lips and teeth. i'm afraid it is not like that, if it ever was. north korea always in the cold war days used to play china off against the soviet union. they have got their own way of doing things. you know, the kim family business and dynasty, that is what drives them. it's not being nice to china or anybody else. >> glor: and do you believe people underestimate the kim dynasty? >> well, clearly they have, you know, we've had collapsist theories for years. it didn't happen. we had this guy come in and take over the country at age 30. we don't know too much about china-- north korean internal politics but we certainly know he didn't know how to run a country. he has done

china already has this salami slicing policy in east asia, the sea, china sea, east china accumulating influence in such a way that it is hard to the u.s. to push back. i think at the core of what the u.s. has to do as long as the u.s. is committed to its position in asia is to strengthen alliances. that is the most important thing. the second thing that has to happen if people are going to push back against china does not necessarily involve the u.s. it involves other asian countries joining together here at instead of what the u.s. used kescall the hubs and spo relationship, it is now kind of a network arrangement. japan and india, japan and the philippines, you numb and india and india. all sorts of allied countries joining together in new types of security partnership to bolster the old u.s. alliance system, which is not as strong or dominant as it was. >> china once the u.s. there on their terms? richard: yeah. the fascinating thing about china is china has been a huge winner from pax americana. let's not forget that. the u.s. is the security guarantor in asia has provided a platf

let's move on to china. higher on are trading news that the government is eyeing a deadline to into sales of vehicles powered by fossil fuel. this would make china and the biggest market to set a target for facing out gasoline and diesel powered vehicles. tom mackenzie is tracking this for us. this is significant. is, although not all together surprising. byd backede likes of by warren buffett investing in electric vehicles on trading higher today on this news. automaker based in beijing have also invested heavily in electric vehicles. this is not surprising for the industry. there has been a lot of focus on government subsidies in this sector where. a lot of money has been produced in the whole ecosystem. china once to reduce its reliance on imported oil. also importantly sees this as part of an industrial strategy. they do one a play at dominating role in the electric vehicle market, and this is part of that pushed, batteries as well a key focus. that is why we have seen regulations to set a date for phasi

china, for example u is -- is seeking to dominate the south china sea with the south china seas. they will continue to to do thao matter what we do or say. trish: great to get your analysis, appreciate it. now joining me right now on thoughts of north korea, fox news strategic analyst and, author, lieutenant ralph peters. colonel, good to see you, we have been talking for days about this and it's been heating up considerably with just last night kim jong un flying a missile over japan, what stage does this leave us in now? >> well, we need to realize some basic things. trish, kim jong un is not afraid of us. despite our overwhelming military power, he doesn't believe we will use it. he believes we are tired n -- in retreat. but overall, kim jong un is convinced that even though -- china will back him and putin will back him and we won't fight. i have tremendous respect for nikki haley, she's really amazing, i think she has a great future ahead of her but she didn't talk about key economic issue which is smuggling. so much of this, the sanctions are being undercut by chinese and r

china is either too hot or too cold for people. china is doing fine. made, athe reforms are lot of policies in place are taking shape. so this part of the world is in good shape. fore: china is preparing their party congress. xi jinping, liquidity and the changing with leveraging. how does that impact foreign investors? jonathan: the last five years has been about his plans to clean up large parts of society. he will focus on financial this time around. what he wants to do is open up marketplaces but open marketplaces that control fashion so they do not get out of control. this is how he came to power during the global financial crisis. he saw the damage that did and the extraordinary stuff he had taken to make sure this huge system risk. xi jinping is cautious. he understands the needs to put the market more at the forefront of the economy, but he does not want it to be uncontrolled. angie: china was one of the most inquisitive countries in the world. [please stand by] it looks like we just lost the signal for the interview between the clsa ceo and if

let's ta ke pakistan and especially china. let's take a look at the trade between these two economic him it. the us and china, it is worth around 650 billion us dollars, and that 80% of north korea's exports are to china, but will they be enough to stop pyongyang from further missile launchers? well, ispoke pyongyang from further missile launchers? well, i spoke earlier to oui’ launchers? well, i spoke earlier to our asian business adviser. north korea is an ultranationalist, xenophobic regime which cannot be influenced by outside powers, so china cannot tell north korea what to do, but it can cut north korea off and that a collapse, which i am convinced is the only way out of it. china has showed it is not willing to get serious, so i think our only resort would be hard secondary sanctions on chinese entities and banks enabling north korea's weapons trade. also, if nikki haley is not successful in getting an oil embargo through the un, we should cut us dollar access to any company supplying north korea. but there could be r

started in two thousand and twelve with a lust china that's let them a disease of china right she now so there's going to be a new owner who is going to be the same leader go exactly to day at all as i know they are ok the guy go in for ten years like she could be for another five years i think they appoint a new leader but you know this is a very unusual move the g twenty is like start this stuff like he's going to be around for a while looks like he's going to be going to the well probably you know it's not covered here on the news we've been here for the past few months is not covered on the news because everything is russia great russia great russia gate hillary clinton's mental breakdown all this sort of stuff that this is all this coverage so so americans are not informed about the world around them the important stories happening they were poor in story happening is the end of petrodollar the end of the u.s. as the number one only saw solitary supreme power and the rise. well there power let let's go back to our story here so the price of oil would because of the consolidation

united states, europe, and japan, by operating in china and exploding china's week export control. although china is improving laws, beijing has not done an adequate job of enforcing laws and sanctions against illegal exports to north korea. i provided several examples in my testimony. china remains north korea's supply condit for its nuclear weapons program. one of the priorities is to change that. the trump administration's efforts to sanction chinese and russian owned companies and individuals that significantly support the weapons programs is a positive step. unless china shows improvements in ending trade with north korea, united states should go further and sanctioned major chinese and russian banks and companies for any illicit north korean dealings. they have gotten away for far too long and faced to few consequences for turning a blind eye to the sanction busting activities of their citizens and those of north korea in using their economies for nefarious purposes. north korea has a diplomatic path on its isolation. any such negotiations would need to repair past mistakes w

china's behaving badly so look what they are doing in the south china sea. they aren't building resorts as the south china sea they are building militariness haitians and a blue ocean navy so it's not the isolation of north korea acting badly. it's china as well expanding it. >> trish: so we need to do something about china. china holds the key to north korea and this is a confrontation that will have to happen at some point given what china is doing from a military perspective as you point out. >> the only thing you can do to china is put economic pain on them in some way, shape or form. >> trish: economic pain there is much much we can do. we've only sanctioned one bank. >> this is the only thing we were dealing with, the whole government, we're dealing with so many things on this front and don't think they don't know it. don't think they don't know the presidents in texas for the flood it's the most serious disaster we've had in this country. >> trish: good to see you guys thank you so much. still to come everyone the one thing to watch for in the week ah

china? >> there's discussion of that. it's been on the table for a long time, but the discussion is recurring. but china fears that. that's part of the problem. china fears that instability in north korea that could create problems for itself and it worries about that more than it worries about north korea's nuclear weapons. so it's at the crux of the matter. u.s. has to solve that problem for china. >> thank you, mr. chairman. >> the gentleman's time is expired. the chair recognizes the gentleman from ohio. >> i yield one minute to the chairman. >> thank you. very briefly, just to follow up on this hearing and the legislative proposal to impede north korea's access to finance that has been discuss ed here today. would the passage of this legislation that's being proposed or the mere introduction of a bill that directed treasury to impose these secondary sanctions, would that, in your judgment, give secretary tillerson and ambassador haley additional leverage in negotiations with china and r

china included. urges relevant parties to halt its deployment and remove related equipment here at the present the situation under peninsula is sensitive complex and the grave up in part is should remain core had it and avoid any rhetoric what action that would activate detention. the priority at present is to comprehensively and strictly implement your school council resolutions and the relevant parties should resume talks and negotiations rather than later endeavor to advance denuclearization and to maintain peace and stability of the peninsula and to consul should undertake its historic responsibility in this regard china will continue to advance dialogue and consultations work together with all relevant parties and make our positive and constructive after forty approach and appropriate settlement at an early date of the current nuclear issue but rather for attaining denuclearization and if what long term peace and stability of to peninsula thank you. that our present accurate china for his statem

., china, russia, south korea. what are you seeing during the latest provocations that might be different from what it was before? >> if you look at the market, it is beginning to falter in south korea. nevertheless, i was just there two weeks ago, there isn't that much concern. life goes on and they continue to do business and we are continuing to invest in small and medium-sized enterprises. another thing with president tons ofening up with money going into the consumer market them a so that will be important going forward. shery: the chart 5771 on the bloomberg showing exactly that. the first quarter of net outflows from korean stocks and the korean won against the u.s. dollar starting to lose ground to although you'd -- lose ground. although you talk about optimism and what president moonlight the traderd, he said agreement is on the table. we're hearing from trump that he might to back out of it. is this time to reposition? >> of course. if trade with the u.s. is faltering for south korea, this is not good new

he said china's government was well aware of the issues. >> china has a debt problem. china has talked to directly and explicitly about the debt problem for a number of years. you can be critical of china for not having moved aggressively to force its state owned enterprises to delever. david: he is fairly critical of s&p. >> tsa enterprise reform is going to be crucial in terms of state ownedhe says enterprises form is going to be crucial. i had a quick look at corporate debt, it has not moved. there is not much of a expectation that it is going to have much market reaction. if it were, it was probably going to get the national team to step in to support the yuan. reaction market expected. haidi: tom. thank you very much for that. the philippines keeping an benchmark unchanged at a record low of 3%. inflationrs keeping within their target range. now but quite a lot of headwinds going foward. >> i think the philippines are watching the fed moves very closely. it is a big uncertainty for the markets, especially the removal of the managing policy stimulus and how it will

use china as crucial to attempts to stop young in developing nuclear weapons china has strong economic ties with north korea accounting for about ninety percent appealing yanks foreign trade. now earlier i spoke to steven burrill our correspondent in seoul south korea i began by asking him just how important china's role is in developing channels of communication between the united states and north korea if u.s. and north korea were in some kind of direct contact and presumably that's a diplomatic process that's going ahead without china's direct involvement and whether or not that you cite sit down to talk will depend on a variety of factors particularly the preconditions that they place on any kind of talks north korea has historically resisted talks that were predicated upon its taking steps towards the nuclear as they should that being said china is of course very important to any sort of approach north korea given the amount of economic power that they have on north korea and i think some u.s. policy makers and analysts have in the past assumed that china has this sort of magic ab

is zero knowledge about what china is going to do in the west nobody understands what china does they don't understand the mindset of having fun . five year plans ten years on i think is enough for me because on this show we've talked at length about the shanghai cooperation agreement that's going one china russia around and they for more than ten years have decided that they're going to pull away from the u.s. dollar they're going to do one bill one road across your asia in asia they're going to put a knife in the back of the u.s. dollar and they're going to start launching a currency partially backed by gold i mean that's been clear anyone who doesn't understand that has been watching the concert for i didn't see this fella who lost all that money does not religiously watch the kaiser report that's his problem that's why he's down in his account if you watched our show he'd be like so many people out there fabulous lee wealthy on bitcoin gold and silver and then there's another element to the story of why he's now bullish on china and going along which relates to another theme and a

was that in the words the words on fire and fury of those words were aimed at china to get china involvement this thing i'm not going to do all on on words that one particular president doesn't use or does use and i can hear him talk about north korea and the threat that it has to the mr mansell my point was that mr trump employs very unconventional language not only with regards to north korea but also concerning the united states' closest ally south korea which interest i'm sure i'm very close to your hardon chief find dot kind of language to rob a question and bone here's the president states if i were president i would use different language mr mandela to draw you back to the question i posed before that with president trump he said that they meaning the north koreans only understand one thing what do you think he could mean by one thing. no he said he said that everything is on the table so you can rule out anything when you say everything is on the table you do not marry down to one thoughts on a doornail asked me to get inside the mind of donald trump because i don't i'm not capable o

on china and a china that has that 1961 peace and friendship treaty that china is committed to, but a denuclearized north korea. they certainly don't want, in my personal view, reunification has to be way down the line. the concern has to be, if there is a reunification on south korea's terms, that would bring the u.s., potentially, into the north, and that would be part of a discussion that would have to be separate with china. >> is there a possibility that we could agree to some of these objectives that china may want? if we would agree to remove our troops from south korea? >> well, i'm sure there's a dialog going on with china as we speak. there's no question on that. but, again, when we speak about the troops in south korea, this has to be something that's very sensitive to our south korean allies. our commitment is to south korea, and we all remember the korean war and what that entailed and so forth, so this is not a discussion between the united states and china in my personal view. it has to be a discussion with our ally, south korea, at the table. >> paul? >> thank you. i'm

you well i think china's pissed back to is very important as i mentioned in my opening statement china wants to have a fairer more representative and more equitable international global financial and economic governance we were talking about the world bank and i.m.f. reform even after the reform the ride's all together combined rights of bric countries is still less than that of the united states and the united states is still the one country and i may have to have veto power they have fifty over fifteen percent but if you look at economy size the united states in some sense is not already not the largest economy in the world but again we have this off circle because after the last round of reform has been reluctant lee pushed through the u.s. congress some u.s. congressmen have said we will not let that happen in the near future so in terms of making the international economic and international financial governance more equitable what can we do where can we where should we start i wonder if anybody thought about that indian friends please the reason to put the brakes to be created was

it has a virtual monopoly position in china so virtual monopoly position in china so its future is looking pretty rosy u nless so its future is looking pretty rosy unless somebody comes along to somehow challenge them. thank you very much, stephen in beijing. let me run you through what the markets are doing. shares in asia down for the second day after north korea's nuclear test — with investors watching signs that the country could be preparing another rocket launch, possibly an intercontinental ballistic missile similar to the one fired overjapan last week. but we saw bigger falls on earlier missile tests, some suggesting that this just becomes a new normal, rather than the unease we saw when tensions first escalated earlier this year. weaker manufacturing data in the uk yesterday didn't do much to boost confidence either and today it's the turn of service data from spain, italy, france and germany but after a good start to the year and some healthyjuly numbers we could also see some slight fall off here too. more on that shortly, but first michelle has the details about what's ahead

aroundre some specifics my msci china has done better than other china indices. overall, supported in some sectors by the earnings recovery story, specifically tech is a major leader. a curiousia it's market. i want to bring up a chart. bloomberg.2 on the when you look at fight you asian's. levels, it is either we fall back traumatically from this or are in the middle of a re-rating. which one? >> the second one. prime minister modi has been in power for a long time now. the whole story is structural reform of the indian economy, which takes time. as you see markets pushing isher, the indian market never particularly cheap. that is part of the story. what is driving the market are domestic inflows into one's. -- into funds. , the long-termns restructuring remains, then we would be buying any tips. -- any dips. david: it's like we are pricing in german-like efficiency when it comes to reforms, but we are talking india here. they don't have a perfect track record of putting in these plans. >> there is a lot of upside in getting halfway there. david: you are still c

for now, as china and forget how we view china. china views us, but in terms of trying to get to the maritime power, long time alliance with unified korea because it should be to hold the line. >> integrated with asia open by rule of law. as the ultimate end state we are aiming for. >> of course. this is such a word like a sacred word. if you talk about the unification, you have the benefits. the former president park with the jackpot. i want to quote this west germany's foreign minster. once he said in the interview, he is called like a kissinger in west germany. he said i never worried about reunionification officially. it can be considered as a experience that they give the upper hand. unification is far away and not too extreme. in between peace management versus balance. right now it's staged like security dilemma and having more weapons is kind of like arms race. and things like that. we don't want to live in a terror kind of state. or do they get a vote. >> to support the peace problem and democracy. they must be adjusted to

and the consumer lifestyle change in china. 500 million customers in china. today, even more. more and more overseas customers joining the event. >> when i started with alibaba, the gdp per capita of china was $870. today, it is over $8,000. it is a 10x increase. we have been very fortunate to be in this environment and road that wave. >> we want to enable your small business, young people, and enable globalization. that is our direction. on the way there, we have more product. >> today if you look at the volume of the package on our platform, it is about 55 million a day. we strongly believe this will go to one billion some years later. a day. >> i'm telling my team it is like the way you climb mountains. when you are only 1000 meters high, you enjoy it. it is fun. when you go across 4000 meters, you don't have enough air. you don't have a lot of people working together with you. you don't have anyone to share your thoughts and worries. now we are probably like 5000 or 6000 meters high. we are getting lonely. without a strong mind and mission, it is difficul

and mike, you stated china. you know china very well. you have deep networks in china. i guess the question is, in your opinion, in your well-informed opinion, is china ready, are they ready and willing for a long-term strategic conversation about the future of the korean peninsula? because china is such an integral part of any tactic that is the familiar with north korea, but as a number of you mention, the tactics are not helpful unless we had a long-term plan. i know you, we participated for many years in a lot of net assessment grand marshal where the mandate was 20, 25 -- should've had korean involvement. those of the two questions i'd like to ask, maybe mr. foreign minister you would like to start on the signaling question. >> that's very difficult question to answer, but there are two points that i would like to make. one is the reason why i empathize the imports of sinking clue signal consistently to north korea is that -- sending a clear signal -- misperception, misunderstanding and overreaction. and if we stand confusing signal to the other side, that will be

i could send texts to people outside china and also in china but if you want to try to send a video or a picture or even a voice message then that was a problem. for whatsapp to be fully operational unit was known as a virtual private network that seeks to circumvent china's restrictions on the internet. the long and short of it is there appears to be some restrictions on the use of whatsapp in china and that's been the case certainly for the last couple of weeks. we have some restrictions already put in place in the summer which prevented users sending videos and pictures and that appears to be in place at the moment. what's it about? it could be about market protection. whatsapp is a player in china but the big, dominant force in the instant messaging market is wichat, owned by huge chinese tech giant tensen. whatsapp has half a billion users across the globe but it isn't big in china. the more likely explanation is about domestic security, censorship, propaganda. we're heading up to a big political eventin we're heading up to a big political event in the middle of october. the 19th

china. kathleen: sophie kamaruddin, thank you. let's move on to hewlett-packard enterprises. big news. they are said to be cutting 5000 jobs, about 10% of the global workforce. brian is joining us from our san francisco bureau. what is going on? meg whitman has been cutting back for a while, indicating she would. month,call earlier this she said they are benefiting from going demand across key areas of the business. is this anything we should be or is shek by, continuing on track to get hp in a stronger, more profitable position, even if it means that shedding people? >> there is also discussion about 1.3 billion over three years. ande is demand going here there, but this is definitely a company talking a lot about slimming down, getting smaller, more nimble. this is part of that. of people were looking for cost reduction and things like that. looks like we are going to be getting serious reductions. 10% is not a small amount. even in after-hours trading, the stock went up a bit. some invest

sector here in china. haidi: and we know how wildly speculative and quickly the markets move in china, so they have to clamp down before it gets ahead of them. tom mackenzie in beijing -- shanghai. the official page shows a slowdown analysis from bank of america merrill lynch. this is bloomberg. ♪ haidi: a quick check of the latest business flash headlines. volkswagen is reportedly holding efforts to sell a motorcycle unit in the face of trade union resistance and internal strategy dispute, according to reuters. -- received as much as $1.8 billion. vw purchase the italian brand in 2012 for just over $1 billion. rishaad: the company will push ahead with separation of its parts division after it failed to secure a deal with another carmaker. componentts of the d is this do not belong, and it could be purified from assets. is a final five-year business been before leaving in 2019. haidi: boeing has won the backing of the wto in the long-running trade dispute of a tax incentive to develop its triple seven ne

china does not want that. i knew if the trump administration could convince china that it is serious, credible option for the united states, china would say okay, let's do everything we can possibly do including really tough sanctions, let's get on board with the united states and the international effort to try to prevent that, which would be a horrible thing for everybody involved. this is something the obama administration, they said all options are on the table and try to get china on board but china didn't take it seriously. it has taken the trump administration to get china on board, this is a major to phonetic achievement. >> julie: you can easily say this is the biggest development when it comes to foreign policy and president trump and how he has handled this, earning him major credit here. during today's trilateral meeting, they all sung president trump's praises, referring to him as "donald" several times. it shows how significant this close relationship has come between these countries. the closest

to put pressure on china? >> the president has been very clear that he views this threat of north korea as ever growing, as we've watched each missile test and each nuclear test their program is advance, it's advancing technologically and capabilities. we've said from the beginning we don't have a lot of time left. we don't have a runway left to land this plane on so we need china's assistance to bring them to the table. >> dickerson: this week the president is going out to the united nations and going to speak. he's talked about an america first policy, one he's talked about. united nations is a collective action group how does america first fit into a group -- organization that exist through collective action? >> it's a very important week for the president and the u.n. general assembly. there are two aspects of his participation up there. one is his major speech that he will give to the general assembly, the world will be listening, american people will be listening. the message he's going to deliver in tha

fare are probably sets too for russia and china, particularly for china, which does not want to have any kind of a failed state on its border that could send refugees across our give south korea and opening --. -- or give south korea and opening. betty: is this a win for the u.s. or is this actually a loss here? in the sense win that the international community is still united. one week ago, russia or china are both saying they were both not sure they could get any new sanctions. you are making a little more progress on that front. nikki haley said these measures will target about $1.3 billion in north korean revenue, which is an important percentage of the money, the hard currency they have. there are still big steps out there that could be taken that everyone seems to be a little bit reluctant to undertake. bill, whated, and are people reading into the fact that we have not really got in a north korean response yet? and that we have not gotten an other missile test since the one a few weekends ago. bill: i would not get into reading the mind of north korea, but there were expectati

only one country does, and that is china. china was quite literally shaken by the blast. north korea's nuclear test site is only 60 miles from the border. it will have sent a diplomaticjolt, too, coming just before president xi jinping opened this international summit. although he made no direct reference, he warned of the challenges to world peace. on state tv, the message was more blunt, with an official statement strongly condemning the test. there can be little doubt that the government here in beijing is rattled. once again, it has had to order emergency radiation monitoring along the border. but, despite the frustration, as always, it may be reluctant to punish north korea too hard. china has recently been stopping cargoes of coal and seafood, in line with toughened un sanctions. but its biggest fear is not nuclear weapons. it is the chaos that would come with the economic collapse of the impoverished state, shrouded in darkness, on the other side of this river. john sudworth, bbc news, beijing. let's take a look at some of the day's other news: thousands of people

allowed china to come in and then america's manufacturing capacity went over to china and you end up with a rust belt that voted for trump when did this become an issue in america when hollywood just figured out that china was playing their movies over there when they were good no moony so suddenly it's a trade war because warner brothers didn't get their check this month oh that's good that's onerous that's really problematic the fact of the rustbelt got if this separate it and there are industries from starvation warner brothers lines time warner is everything that i know because i don't see the poor people we once called them beverly hills that had a poor person and bad behavior we all got that we're talking about is that. i mean there's so pathetic out there on the west coast that i'm thinking of fukushima but not a negative way well actually we're going to talk further about that california and how they're all talk and no action in terms of this wealth and income gap emerging but i do want to say because you brought it up you brought hollywood up is that china has really cracked

about that moving forward it is in our hands to have that conversation with china today and. it our interest to be china's interest so i agree with you nobody wants a kinetic war on the korean peninsula i do think there are still some conversations to be had with china to get them to pressure north korea to say you have to stop this or will not in well ned ryan holland could gentlemen great to have you with us tonight i just get the feeling that the congress has bought a ticket to this and they're willing to watch and not do anything thanks so much. russia has killed nearly a thousand militants during recent airstrikes in syria let's go to manila chant she's got that story tonight this is a big impact is that it is big news ad of course everyone right now is watching what's happening in new york at the u.n. g.a. the president's words no doubt important but the the america's chief diplomat rex tillerson is also in new york where he had quietly had a sideline meeting with russia's foreign minister sergei lavrov some of the issues on the table we're not hearing so much about the

we have seen a shyness than what he was saying about china's interest and priority in china wants to avoid instability in region collapse in north korea but china needs to see that we do not have much time left and does it really touch on a very one nuclear north korea what does that mean the missile possibly nuclear arms race in the north east asian region with south korea part of japan following those potential nuclear proliferation now we're very close to a conflict more than ever before i still think it's unlikely but we are they are china south korea china is number one trading partner for south korea the trade partner between china south korea's double we're going to south korea u.s. south korea japan combined china only so have i think the difference in it is a sort of understand that there's interest in priority of just supporting north korea giving blank check to north korea has not worked and we're not at the close of the end game here and i think china needs to leave value should you showed earlier about you know the regime change was being a problem and charles has talked

the rba is cautious about china. what is the credit stock in china? what is the economy slows -- what if the economy slows? from that point of view, they won't stop. one of the reasons is they don't have a lot of inflation. this is where they have a similar problem to the rest of the g-10. they have a low rate inflation. the end of last year, they were recording the lowest wage inflation ever, given their economy wasn't -- anna: they do so much. jane foley stays with us. -- thank you so much. jane foley stays with us. beus: donald trump said to ending another obama era program. the details to come. what is the proposition he will put to congress? this is bloomberg. ♪ ♪ anna: welcome back, everybody. we are seeing money going into the japanese currency, some of the other safe havens also the what -- looking popular for a second date in a row following the activity on the korean peninsula. let's check in on the market action. nejra cehic shows -- joint this. nejra: we are seeing a second day of declines for asian equities, not quite as much as where

mike, you have studied china. you know china very well and you have vast networks in china. i guess the question there is, in your well-informed opinion, is china ready for, are they ready and willing for a long-term strategic conversation about the future of the korean peninsula? because china is such an integral part of any tactic that is implemented with north korea but as a number you mentioned, helpfulctics are not unless we have a long-term plan. we participated for many years worthy mandate -- we should've had korean involvement. those of the two questions i would like to ask. maybe you would like to talk about the signaling question. >> that is a very difficult question for answer but there are three points i would like to make. the reason why i emphasized the importance of setting clear signals consistently to north korea is that quite often because of misperception or misunderstanding or overreaction. if we send confusing signals to the other side, there will be increasing chance of misperception and misunderstanding and overreaction. so, think it is important, ver

one, rand recognition is still very important in china. apple does have a very good brand in china. i would think in the next year that the iphone can probably get for the executives, so that is important in china. another thing is that it depends on the business model, how apple launches the platform in china. ,hen it comes to b2b business alibaba for e-commerce, tencent ar gaming, and with the facilities and the new phone, can they leverage these two platforms. own emoji, design scheme, and play the game together. that is a different experience. when i shop, i can create an experienced that is beyond the hardware that the people in china are looking for. of course you can leverage the two giants in china to help you. david: fingers crossed. thank you for joining us on the program. coming up on the program, we look at the suppliers in hong kong and how they will react to the launch in the premarket. that is coming up next. this is bloomberg. ♪ ♪ we are minutes away from the open of markets in china and hong kong. up 12 points, not. the past two days have not been bad at all. we

/china relations. so if u.s. has more on chinese firms, especially those permanent companies, bigger companies, then we believe it will potentially lead to a deterioration of relations because beijing wouldn't be happy to see that. >> guo, thank you very much for that guo yu it's really interesting to look at market reaction you see,ya, initi es, initiallya spike, now they're brushing it off. i wonder why we've seen quite a big reaction to the previous missile tests, the icbms, the missile launches over the past couple weeks, why now are the markets more sanguine >> depends on the severity, the severity of the headline, but it will be sporadic for the markets. >> coming up, after difficult couple years, is the tide starting to turn for the hedge fund industry? we'll discuss the outlook of the sector coming up i founded lendingtree 20 years ago, and i've never seen a better time to refinance your home, than this summer. why? because right now we're seeing our average customer save $20,000. but with the fed already

targeting china. and also james just looking at some of the comments coming in from the new he's the u.s. seems to have persuaded china if indeed that has happened we're not sure what's been going on behind the scenes to do more in terms of instructing their banks not to do any business with north korea but here mention is saying that the u.s. will call on russia to do more as well. yes what we. didn't hear any mention of that from either the russian foreign minister sergei lavrov or from the chinese foreign minister so it's not something may well have been coordinated there may been talk spying the scenes and we understand from president trump of the chinese central bank is telling other banks in china not to do business with north korea it's certainly not something that either foreign minister wanted or trumpet in the speech it wasn't something that was coordinated in the sense that they wanted to make it all a joint decision suggesting that some of this is being done somewhat reluctantly and that w

south korea china is number one trading partner for south korea the trade partner between china south korea's double forget of south korea u.s. south korea japan combined china only so have i think the defense ministers are sort of understand that there's interest in priority of just supporting north korea giving plank check to north korea has not worked and we're not at the close of the endgame here and i think china needs to believe value should you showed earlier about you know the regime change was being a problem and charles has talked about the need to engage in gauge you said last week in an interview i'm all for information warfare we need to help the people of north korea rise up that's the long term game the north korean people bring about the change we need you can't really engage with you also encourage regime i'm not i'm not a promoter and engagement are locked only because i feel you have modern regime change in the not so. no not sometimes have you united states doing decapitation of e.g. but supporting the people rise up by supporting people of north korea because or a

you could tackle guestworkers in china. you could put a block on that, and target those who trade with north korea as well. ultimately, that would be considered to be a severe impact on the north korean economy. if we go back to where we were beginning, has. that's the problem a lot of economics -- economists say, that the sanctions only worked to a point. damageand the collateral as well, so many angles to look at this between seoul and beijing. if washington was to sanction chinese companies, the implication for that, even systemically, huge risks we are looking at. reporter: significant risks. war tends to escalate significantly. had warningsdy from mr. trump that he will cut trade off with anyone who does business with north korea. china has responded forcefully to that. this indicates companies would be caught in the middle. the consequences of the kind of a trade war initiated just to punish north korea would almost certainly spill over into neighboring economies of south korea, japan, and china, as well as other west