sale in china are booming. so a lot of people are buying cars. american companies like general motors had a very good year in china. >> they're building factories there. >> yeah. >> because the market of china is huge. always there are some problem. there are some other opportunities. >> let me ask you about macao, and base on what happened with hong kong. i remember being in china just government in hong kong. talking to people we're not expecting the chinese government to change hong kong. they wanted hong kong what it is that was to be a international banking and investment center. they've been hands off allowing hong kong to be hong kong. when they took macao they encouraged countries to invest heavily in macao and then there were all of these crackdowns. what we're seeing now instead of the high rollers coming in and spending vast amounts of money they're trying to bring more of the general population of china to come to macao. am i correct in my thinking there. let me put it this way. for a few years maca

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: 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 to satisfy the crit

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

xi appearingin and in china. is popular in china. they increasingly work together in the united nations. but there are still limits on their working together. there is a certain amount of smoke and mirrors in trying to present a sino-russian partnership has more than it is to date. that whatnot said russia is doing in the ukraine and crimea is meeting with its approval. russia has not affirmed china's claims in the south china sea. there is mutual suspicion but they are coming together as well. host: robert daly talking about -- talking about china. if you want to ask questions, (202) 748-8001 republicans. (202) 748-8000 democrats. .ndependence, (202) 748-8002 caller: i have three comments. -- his analysis of china's economic status is fundamentally flawed. the most polluted planet on the earth is china. this affects their gdp, everything about them. we think that the air pollution is a problem, but it is just the tip of the iceberg. everything that is grown in china is contaminated with heavy metals. everything made in china is cont

xi appearingin and in china. is popular in china. they increasingly work together in the united nations. but there are still limits on their working together. there is a certain amount of smoke and mirrors in trying to present a sino-russian partnership has more than it is to date. that whatnot said russia is doing in the ukraine and crimea is meeting with its approval. russia has not affirmed china's claims in the south china sea. there is mutual suspicion but they are coming together as well. host: robert daly talking about -- talking about china. if you want to ask questions, (202) 748-8001 republicans. (202) 748-8000 democrats. .ndependence, (202) 748-8002 caller: i have three comments. -- his analysis of china's economic status is fundamentally flawed. the most polluted planet on the earth is china. this affects their gdp, everything about them. we think that the air pollution is a problem, but it is just the tip of the iceberg. everything that is grown in china is contaminated with heavy metals. everything made in china is cont

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

it would be china, india and senior china. that doesn't have anything to do with the one child policy, this has to do with population growth and the fact that they're living longer. the problem the one child policy has is that they reduce the working population to support the aging population. these people are going to grow older. some of the other problems such as gender imbalance and what this could result in whether this results, some of the speculation we don't know for sure. we definitely know that this big group of elderly people will age and that will raise a lot of issues for china. >> today we are seeing china's economy beginning to slow after three decades of rapid growth. as any of that slowing related to the one child policy? >> it is because one of the biggest challenges of the economy is manufacturing. that was fueled by cheap labor. now the abundance has gone down. there's just fewer workers. they want to get paid more. so china is trying to transition out of that into a more consumer-based economy but then you

china has called on the u.s. to 76 years of hostility towards north korea in the hope of persuading kim jong-un to give up nuclear weapons. a u.n. armistice was agreed to in 1953 to end three years of fighting, but the two sides remain technically at war. the head of china's foreign affairs committee says beijing is annoyed about kim's program about more concerned america's response. maritime security in the south china sea is expected to be on the agenda as asian leaders meet president obama in california later. the philippines president intends to press the issue to stress the need for freedom of navigation. arbitrationiled an case, questioning china's right to a string of reefs, but beijing has nine -- declined to participate. is bloomberg news. i am shery ahn. the past two weeks have been interesting times for investors in japan. swingsseeing the wildest in years. david is here to break that down for us. david: a lot of this comes down to the surge in risk aversion from the start of the year. ago,recently, tw

china bucked the trend. shanghai composite down by a fraction, as we see there, 2862 for the closing number, discouraging inflation numbers fueled hopes for more government stimulus, but profit taking wiped out earlier gains. here's a hook look at some of t other business stories we're following today. >>> toyota motor officials have announced a global recall of almost 2.9 million vehicles. they say the seat belts could be damaged by a metal part in the event of a crash. it applies to the rav4 between 2005 and 2014 and the vanguard produced in japan between 2005 and january this year. >>> government officials say in january, japan's trade balance was in the deficit by nearly 650 billion yen, that's about $5.7 billion. they say exports were down 13% from the same month last year. imports declined by 18%, as prices of crude oil and liquid natural gas fell sharply. >>> and, as mentioned, the four figures show in january china's consumer price index was up 1.8% from a year earlier. that was a slight improvement

it was -- china sea. it was top of the agenda. china is not a member of the asian. we'll go to the heart of the story. our correspondent is there covering the gathering in california. how significant is this? >> well, this really, if confirmed would have been the first time this has occurred. they have been seen to have constructed waters. >> including taiwan. >> they have said any instillatio instillations. if they have set up a system that could be seen a provocation by the united states, at the end of the summit between the asian world, president obama said that the gates was duty-bound to help the region remain peaceful and stable, by ensuring freedom of navigation, meaning they'd continue with military controls, and fly bys. to make sure that the freedom of navigation is seen in that area. it will be seen as a provocative move. not just for the states, buts all the countries in the region, relying on that air being free. >> the symbolism is obvious. is it just symbolism or something more dangerous? >> well, china said that it has no intention to rock peace and

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

, they have moved from rural china into urban china. have they been able transition them to become real consumers? if they have, at what rate are they consuming and what economic growth is that creating? that is a big mystery to the markets right now. >> that is a very slow process. , you couldn from 12% see it coming. why are people panicking? is there a need to panic? >> first of all, this has all been highly telegraphed by the chinese government. 20-30 yearsg about of policy, building infrastructure, inhabiting the cities, creating consumption, so none of this comes as a surprise whatsoever. ofs is happening on top unfortunately a slowdown in many of the other developed economies around the world. it may be just bad luck. it may be bad timing, but the reality is that we need a strong growing economy in the world to drag the other economies along with it. we have relied upon china for so long to be the big growing economy out there that without china growing in double digits or high single digits, the world is unsure where to rely upo

china refutes this saying 90% of the south china sea is theirs. but what's undeniable is that the steadily increasing tension has led to a military buying spree. >> i think china's military expansion, its increases in its defense spending and its actions in the maritime area, have in fact triggered something of an arms race. >> reporter: a united states military footprint in the region is not new. but it's been steadily growing over the last several years. >> militarization of the south china sea and particularly the artificial islands that will be used for military purposes by china is a concern for the united states. but it doesn't pose an existential threat. >> but the u.s. wants its presence felt. general lori robinson commands all forces in the region and presents a statement at the air show. >> what we're doing as team america and being out here to show our commitment to the region. >> reporter: and part of that show of strength in the region is this, the p-8 poseidon. the united states frequently flies them over disputed territory. >> wheth

with china. china is in many ways our a partner. in many ways a looming add server tear -- adversary. what we try to do is put a thumb on the coop are a tiff side of the relationship and emphasize m that over the competitive. that's harder to do. ca >>ller let's hear from bob from maryland on the independent line. >> yes. i'm korean-american. i keep a close eye on what's going on in korea. i don't know if americans are rr aware of how china is really putting pressure on south koreae against the possibility of bringing the thaad system to protect itself against north korea's possible missile tests including nuclear missile tech. i mean, what is the u.s. government really doing about it? i mean, right now. because china is really, really putting a lot of pressure on south korea not to bring it e se although it already has a similar system that can, you know, do the same against the korean peninsula. i want to hear something about that. >> sure. the united states has wanted our ally south korea to deploy, as you said thaad, terminal hi

deflation, china? >> first, i would like just to make a small comment regarding the reaction of the market. we're overreacting. we're already there. i think that there is no new news. when you look at the situation regarding the oil price or the growth in china as well as the other issues. the global growth. wild, that, for a the situation would not improve markedly in 2016. so i'm a little bit concerned by this overreaction. but the market fears a global slowdown. >> that is not new. we've not have the kind of growth that we were expecting. they don't know who, besides the french, we are really thinking that the economy would take off next year. but this year. >> the market is so nearsighted. it is so immediate. it is not know how to interpret how people have heating and cheaper energy costs and the money will be put back into the economy. we do not see it. it is so incremental. over the course of the next global gdp will be around 3%. maybe not as high as the imf would believe. i am not worried. you'

we have been in china for 25 years. we have facilities across china and support production different components as well as aftermarket for the airlines. we have been working closely in the community for decades. we have put the focus on the c one -- c 919. always when you work with new companies and different companies, and we were formed rather recently, as you know, there are always learning experiences on all sides. that said, no major hiccups for us and it has been a good experience learning and growing together. is being heldw amid a slowing economy, especially in china, but you are saying you are not eating that -- seeing that slowdown. steve: we may not have as many binary orders, but we continue digit mid to single high -- high single-digit growth. a lot of that is driven by the fact that there are fewer aircraft for people in southeast asia and china than there are in western europe. it's the ability to connect that -- disconnect that trend from the economy. evolvingases, it is an industry. >> is it a trend tha

shery: let's go back to china. president xi says there is no basis for sending the yuan down further. stephen engle has been looking at what the pboc chief had to say. stephen: i want to pick up on thee haidi mentioned about fixing rate. as i sit at the terminal waiting for the latest trade numbers we are going to get, exports and imports, possibly money supply numbers, as well as aggregate financing. we are still awaiting those numbers from beijing if they do indeed come out. right now, the pboc earlier this morning said the daily yuan rate is at a six-week high. the onshore yuan, now trading sharply higher against the dollar, reflecting dollar weakness that we saw over the past week when china was on holiday. isnwhile, the offshore yuan weakening as the discrepancy that built up over the holiday starts to narrow. governoryou said, pboc iata has been often new -- advice, up a slew of saying the exchange rate is basically stable. he says capital outflows in his estimation are normal, despite the estimated record $1

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 indecisive that has alarmed our allies. united states must now consider fresh options to raise the costs on beijing's behavior. 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

china and some southeast asian nations are at odds over competing claims in the south china safe. china's construction of artificial islands in the region is seen by the u.s. and other countries as an attempt to increase its military presence. the u.s. has ordered its naval vessels to sail close to the islands in the south china sea, directly showing its discontent to beijing. china is vying to expand their presence in southeast asia. it is now working on strengthening ties with nations that have maintained a neutral stance. >> translator: relations between china and the nation's militaries are moving towards deeper cooperation. >> reporter: last year, china and malaysia held a major joint military drill. china is also buying its way to closer ties. chinese premier li keqiang visited malaysia. he pledged bigucks for the construction port facilities. the chinese government is spendi nearly $10 million on the project. china is expected to surpass singapore as the top investor in malaysia for the first time. >> malaysia is in central of this south asia region. so if china manage to p

at china differently and growth is large part of the view. >> china can ebb and flow. there are different considerations with gdp growth in china, the housing market and different economic considerations, but as far as retail goes, in terms of luxury goods and global brands, it's a very important market for the long term. so retailers can't really ignore this market and need to continue to invest in it. and also build their awareness and their brand and their identity globally. >> reporter: on a conference call, bernard arno, ceo of luxury conglomerate acknowledged the economic slowdown in china but also said, quote, many observers underestimate the fundaments of china's economy noting household consumption is on the rise there. like other retailers, the luxury goods seller looks to the country as a long-term growth driver. pvh corp will buy the remaining interest in the tommy hilfiger in china. china is the fastest growing market for calvin klein and tommy hilfiger. michael kors and coach reported double digit comparable sales growth in china while noting weakness in

is it china? maurice: first, i would like to make just a small comment regarding the reaction of the market. they are overreacting to news. we are already there. i think there is no new news. when you look at the situation regarding oil price, or the growth in china, as well as the other issues, the global growth, we have all known in a while, the situation was not going to improve markedly in 2016. i am just a little bit concerned by this overreaction. francine: right. maurice: it is not that new. it is not a real slowdown. we have not had the kind of growth that we were expecting. we do not know, besides the french, who is really thinking that the economy would take off next year or this year? >> the market is so near-sighted. this is the problem. the market sees these problems that are so immediate. the market does not know how to interpret 4 billion human beings need cheaper energy costs and that that money will be re-put back into the economy. we do not see that. it is so incremental. this is

and then they sold it to china and china was using it and they are building their own now. if the carrier were really a relevant and i question why these competitors are trying to build their road at the rate they are building. i think a few a few strategies china imposes are serious and we have to seriously consider them. >> we need to think about the range of our weapons. >> that is one of the issues i spoke about earlier and i were a killer ship surface weapons. we are stuck by the chinese today. because of this committee and the congress we are going to be in good shape as we put money into those systems. i think again the south platform is a submarine and we will be able to win in any conflict i see when we apply the joint force to that. and i'm comfortable with the carrier operating in those waters, but we have to consider it. we have to consider the threat. the chinese aqa deep threat is not even six feet tall. >> you mention the importance of diplomacy as part of the overall strategy. what part of that be the advisability of the u.s. treaty? a mac in my opinion sena

rishaad: and demand coming from export out of china. we saw steel production in china peak in 2014. exports continued to go up. how is that hurting your business? are they dumping that steel? i think there's been a lot of conversations about dumping and there's been a lot of cases that have proven dump rocks, not only out of china, but out of many other countries as well. i think there's a push by almost every consuming country in the world to protect their domestic industry from unfair competition or trade. that is the same as australia. there is going to continue to be significant exports out of china. my view over the next 12 months is that will start to reduce somewhat. it has a big effect on price. rishaad: you said earlier that most of these chinese steel makers aren't making money. how do you know that? basically, through public pronouncement. and through conversations with those steelmakers through our sales to them. between 30 tog 100 are in the on every ton of on every30 to 100 rmb ton of sales. we don't have any internal or inside information beyond the markets, but we wa

the moment we have overcapacity, nobody makes money. >> and china? >> china is growing. it continues to do better. >> what kind of growth can we anticipate? >> about 7%. the chinese new year just past. a little bit smaller growth than they had the year before, but it is still positive. china and india are growing at a pace that nobody imagined. gdp growing at a fairly high number compared to the world. we are well placed in both of these countries. >> no surprise there is keen competition in the aviation space. airlines are constantly trying to cut prices. are your customers asking you for cheaper prices? >> tenures ago, it was the same. 20 years ago, it was the same -- 10 years ago, it was the same. 20 years ago, it was the same. to have the right product that meets capability, and to get the , that is where the future is. customers are happy. ,he next phase we are entering we have time to work with the cut the whereby we can cost on maintenance of these airplanes. want to be offering the best amenities and they will leave the rest of it to us. qantas ordered the 787 la

let's have a look at china. the reason we are seeing a drop is because of a flurry of profit warnings from friday into the weekend into this morning. i want to show you -- on average, 60, 70% drop in earnings. name oil fields, copper, your industry -- coal, construction and power and steelmaking issuing severe profit warnings. the you talk about the pmi, concept is fluid. when it starts to show, that is when you really feel it is tangible and more felt. angie? angie: let's focus on japan, david. everybody is watching japan for obvious reasons. how is it looking after the lunch break? david: let me give you an update. i will give you the benchmarks in a moment. these are the biggest movers. -- the story in japan are these deals. we are pushing more and more below. if bank of america is correct, this 10 year will go towards zero in the near future. markets are cautious at the moment seeing how far these yields will go. if history teaches you japanng, deals in continue to drop lower and lower. back to you. --haad:

they see countering uyghur separatists in western china as part of that struggle. officials say they pose a threat domestically and internationally. but critics say moves by beijing to combat what it calls terrorism could put further restrictions on the media, and more pressure on minority groups. >> the colors of the french flag appeared over the skyline of shanghai last november. it was a sign of solidarity following the paris terror attacks, something chinese leaders say they understand all too well. >> translator: china is also a victim of terrorism and is an important partner in the global fight against terrorism. >> the government's anti-terror campaign is widely covered by state-run media. the day after the paris attacks, security officials released photos they say show the crackdown on terrorists. in the uyghur autonomous region. state-run tv followed up with a report of an attack on a coal mine in the region. the report claimed the attack killed 16 people, including police officers. and it said police hunted down and killed 28 terrorists responsible for th

and china agreed to the sanctions on wednesday. the two big powers had different views on how to approach them. washington wanted a harsh punishment, while beijing preferred dialogue. the security council could vote as early as this week. >>> the operator of the crippled nuclear plant says it is moving forward to contain radioactive water at the facility. tokyo electric power company says it will soon be able to stop the influx of contaminated water in some parts of the plant's reactor facility. they're still filled with highly radioactive water. contaminated water from three of the reactors is flowing into adjacent turbine buildings, filling their basements as well. tepco has been trying to reduce the amount of such water in the reactor buildings. it has been taking measures to stop ground water around the reactor buildings from flowing in. the utility has also been pumping up contaminated water from the facilities. >>> tepco officials say the are loeg water levels in the reactor facilities, in the number one reactor, the water le

in the china factory sector. this is after we saw back in contracted 49.7 , on the non-manufacturing side, we have seen things edged down slightly after we saw quite a big number in december, the highest number we had seen in a year. now, on the nonmanufacturing side, at 53.5. for the month of january. take a look at the manufacturing side. economists they don't get too obsessed with these incremental changes in the index, because we continue to see the policy support has been accommodative, and has stabilize the sector. but not enough at this point to really trigger some stronger activity on the manufacturing friends. but, we suspect the policy will stay in stimulus mode this year. the balance now will shift from monetary to fiscal for 2016. we also saw that metal prices remain extremely depressed. i think we are on some of the historic lows. toly signs, pointing somewhere between stability versus fractional slowdown. when it comes to nonmanufacturing sector, the critical point was, whether service or strength w

>>> taiwan says china has deployed missiles on a disputed island in the south china sea. hello. also coming up russia says it categorically rejects accusations its has bombed hospitals in north syria. the judge in u.s. asks afpple to unlock one of the st bernadino's attacker phones >>> china appears to have deployed missiles on a disputed island in the south china sea. the taiwan ease defense minimum see says beijing has placed surface to air missiles on an island. ownership of the island is disputed by taiwan, vietnam, chinese and the philippines. the president is appealing for calm. >> translation: i think the south china sea is a region that everyone pays close attention to, especially on the issue of the dispute over seventy in the south china sea. it is a tense situation, so we call on all sides to stick to the principle of resolving the dispute over the south china sea in a peaceful manner. self restraint is most important >>> china's foreign minister says the claim is an attempt by the western media to create news stories. >> translation: i hope that the media everywhere,

obviously we're in china. china is one of the points of focus. but it's not just about china. it's about the global economy and global markets, just as you mentioned. we've seen a lot of changes overnight here in china. >> tim, do you feel that china is going to have to significantly devalue its currency? maybe not immediately. maybe not on the agenda for this particular meeting. but at some point over the next year, is that now inevitable, and to the tune of 5% plus rather than these half a percent moves we've seen so far this year? >> sure. i don't know if it's inevitable. the message has been one of confidence that they're going to manage the exchange rate, managing the dollar as well. they seem to be confident they can mng their way through this. i think that's the messaging we're going to hear, that they delivered to their counterparts over the next 48 hours. >> that's the messaging. do you believe it? >> well, this is a complex place. i've been coming to china for to years. i think there's a lot going on here. obviously there's enormous pressure with respect to net capit

the countries are currently emprovided in a dispute with china over portions of the south china sea. china has taken to building islands to strengthen her claim in apparent defiance of international law. yet the asean countries do not have a unified stand with regard to their big neighbor. something that president obama wants to help them address while meeting with them in california. the u.s. has been a stabilizing force in the asian pacific since world war ii. now with a rebalances there are more troops in the region and they're patrolling waters to ensure freedom of navigation. not all the leaders agree that the u.s. is the perfect counter balance to a growing china. regardless this is a significant step for u.s. and asean relations one which is hoped to carry on for years to come. it is a full hit of the promise made by president obama to be the first american pacific presidential >>> an independent consultant on china explains why progress on the dispute over the sousdz china sea will be difficult >> there are two great forces, u.s. on one side and china on the other. you have t

think china is terrific i'm not angry china. i'm angry at our leaders for not being able to compete with china. [applause] we're going to get things changed. we're going use our best people. we're going to start winning again. strong military. take care of our vets. have such great trade deals. we're going to win again. .e're going to win so much we'll get rid of isis and we will get rid of them fast. [applause] i was against the war in iraq from the beginning. we shouldn't of done it and we did it. that obama get out the wrong way. we did it. it destabilize the middle east. see, 2003, 2004. i said it would totally destabilize the middle east because you have iran and iraq. they were the same militarily. they fight fight fight and then they rest. a fight fight fight. we decapitated iraq and now iran is taking over. not only do they get the 150 billion dollars, maybe the worst transaction i've ever seen, done by the famous obama administration. the worst, the dumbest deals i've ever seen. we get nothing. got those hostages before

. >>> overnight china moving missiles into a disputed island in the south china sea. we're breaking down what all of that could mean next. >>> breaking overnight, heightened tensions in the south china sea. china has deployed surface-to-air missiles on an island chain in the waters. ivan watson is live for us in hong kong. ivan, not 12 hours ago they were urging restraint in this very neighborhood and now they report that this is an advanced missile deployment there. >> that's right. and some people are interpreting this as a chinese provocation. let's get to the map here. u.s. and taiwanese defense ministers say they put these missiles on this woody island here in the south china see. it's in an area not only claimed be i china but also by vietnam and taiwan. why does this matter? china has had a presence here for more than 50 years. it has an air strip here. why it matters here, take a look at the china sea here. this is a body of worder that an estimated 30% of the world's shipping passes through. it's also an area that china claims largely for itself all the way d

this is the way that china -- that china governs hong kong. estimates say the move would cost $1.5 billion for hsbc. this is a time when they're trying to cut cost. they're trying to cut $5 billion by the end of 2017. these costs are to be factored in. angie: it looks like u.k. to those conversation seriously. thank you. coming up, china returns to the fray after the new year break. we will see what will we see? always -- will we see a selloff? coming up next. ♪ >> the stories making headlines -- taiwan has ended the search for victims of last week's earthquake. hundred 16 people were pulled from the rubble. all that two of the dead were found in the apartment complex which collapsed in a 6.4 magnitude quake. architectser and two have been arrested opposition of negligent homicide following accusations that corners were cut in construction. china has called on the u.s. to formally and 76 years of hostility towards north korea, in order to persuade kim jong on to give up nuclear weapons. besides remain. technically at war the head of china's

s reports about china's missile systems. >> translator: china previously said it had no intension of using facilities on the islands for military purposes. we expect beijing to get a clear and more convincing explanation of what it is doing. >> nakatani says china's action are a cause of concern for the international community. >>> turkey's government is blaming syria's kurdish forces for an attack in ankara. nhk reports. >> reporter: the blast at killed 328 and injured dozens more. i'm near the site of the explosion. as you can see, police officials have everything sealed off. this is a normally busy area. the parliament is near here. so are many government offices and military facilities. >> translator: i want these terrorist attacks to end. the government needs to take tough ever measures. >> reporter: the turkish prime minister said a man linked to theyrian kurdi mility h be identied a theuicide bomber. >> transtor: tkey will track wn all those who are involved in the attack and bring them to justice. >> reporter: kurdish forces in syria have told nhk that they have absolutely no

could tipwn in china it higher. the big variable is a possible right down in the nuclear power unit. that could be billions of dollars. that could be a major blow for a company trading at 835 year low. a 35 year low. ahina's -- it is landmark moment. the biggest acquisition and will in pesticides and agrochemicals. it could help feed china's billion plus mouse. let's look closer. good to see you. tell us the thinking behind this deal. all comes down to food security. this is part of an ongoing slate of deals we have seen from china. previous deals have been more on farms or processing. feeds andives them agrochemicals. they are locked in the supply chain from start to finish. they have feeds, farms, and processing rights. are we likely to see more deals like this in the sector? >> when we talk about food security, it is not just china we think about. it is an ongoing global issue. the u.n. protects 2 billion people on the planet by 2050. desperate x an additional 2 billion -- predicts an additional 2 billion people

in china is trying to change the situation and increase tension in the south china sea by carrying out rapid land reclamation and utilizing them. we have concerns and we want to say that japan cannot accept this. >> the two largest powers in the region extend here to the korean peninsula as well. after north korea's recent nuclear test and rocket launch the u.s. is in talks with south korea by deploying an anti anti-missiles system known assed that. that is something that beijing is opposed to, seeing it as a direct threat to its own military interests: washington want to pressure china to reign in its ally in pyongyang. there was a show of force at the peninsula. american f-22 stealth fighters demonstrating what the u.s. calls commitment to defending it's ally in the face of north korean threats. but it's a show of force that will be noted just as much by the leadership in beijing. harry fawcett, al jazeera, seoul. >> apple said it will fight a court order to crack the encryption on the iphone of one of the attackers in san bernardino. apple said breaking into his iphone would threate

abe over the weekend blaming china. china has blamed the international environments. it will be interesting to see their consensus come around as to why things are slow. kind of looking forward to that in their final statement. ask tony we were to nash, who do you think is at fault here? it's commodity prices, it's generally industry capacity , it's slowdowns globally. china, u.s., japan, europe and so on. culprit, and the real indicator here is world trade. we have seen world trade completely flatline. is my biggest worry, and the indicator i'm really looking at is what's happening with world trade and how is that going to impact these economies, countries like japan, countries like china, korea, and so on, are really sensitive towards trade. obviously taiwan and others. thatneed to keep an eye on and do what they can to make sure it's growing. exports.ina's we look at the pmi's. they are not necessarily all that healthy. as you can tell, i don't have a lot of confidence in pmi's. i don't know what they telestrate we look more and export-import. look at those figures

satellite images show china has installed missiles on the south china sea. here are the pictures of woody island in the paracels. this is the northern shoreline. an empty and coastline. images on sunday show a different picture. of eight to batteries missile launchers and a radar system. china says it is a media invention, and it has said it has the right to necessary self-defense facilities. i spoke an earlier time ago with my: who was the deputy of the secretary of states for a east asian and pacific affairs. you make of the timing of this missile installation, coming off of the heels off of a summit that called for a peaceful resolution for these sorts of maritime disputes? show you the will contrast in how china is approaching the issue in the south china sea versus how the united states and other countries in the region are approaching the issue. many countries in the region want to take a diplomatic approach, one that upholds international law of the peaceful resolution of disputes. that was the top of the agenda when president obama met with the leade

we will focus global expectations away from china. we will be looking at other global economies, as always happens in situations like this. everybody is talking about india again. it is an up and down the economy. the effects of this looming financial crisis will be felt primarily on the drivers of chinese growth. that is what will panic some people in the global markets and yes, it will result in a weaker yuan. once we get past this, people will put it into the bucket of china in transition. story ish of that going to be a china that is not growing as fast as we all expect. it will not be driving global economies. it will become something more of an economic backwater long-term. anna: you said in your notes that china has been around for a long time. bill: it has been around for an awfully long time. anna: when you hear this zbanks when commer they say they are not sure where and therefore,re they don't have to provision them. we don't have the transparency we want around the banking sector. bill: i absolutely agree with analysis lik

get along great ith china. largest bank in the world. it is my tenant. buying condos for tens of millions of dollars. i have the bank of america building in california. i own a big chunk of that. i got that from china through a very complex set of transactions. i think china is terrific. i'm not angry at china. i'm angry at our leaders for not being able to compete with china. [applause] we're going to get things changed. we're going use our best people. we're going to start winning again. strong military. take care of our vets. have such great trade deals. we're going to win again. e're going to win so much. we'll get rid of isis and we will get rid of them fast. [applause] i was against the war in iraq from the beginning. we shouldn't have done it and we did it. that obama got out the wrong way. we did it. it destabilized the middle east. you can see, 2003, 2004. i said it would totally destabilize the middle east because you have iran and iraq. they were the same militarily. they fight fight fight and then t

how does china fit into your story? guy: china is saturday. you move forward to saturday and you get these targets. is 6.5%-7%. guy: this will be a focus during the front end of the week with these big drops. i am curious why this is happening. do you think that is the g-20? or is it the lack of stimulus? i would be surprised if that was the case. number,s the payroll's i think the market will have a number of big stories to focus on. anna: many investors are disappointed over what china has delivered over the past months. if you are interested in emerging markets, maybe you still can go. we are just getting news from india on the subject of their budget. their goal was 3.9% for gdp. the finance minister is speaking over in india. they retained their 2015 at it deficit target of 3.9% of gdp. that budget is delivered in front of india lawmakers today. , wes: listening to guy talk have the payroll story on friday as well. the inflation story is changing. what worries you the most? if you look at china or the inflation data in the u.s., as well a

japan may also need to patrol the south china sea if needed, to stop china's blatant attempt to expand its territory. japan also has to work closely with rcn nations. with which it shares the same values. >> that was nagaiwa, former commander with the defense forces. >>> oil prices fluctuating this week. investors took prices higher by the international agency. it said oversupply would be resolved next year. prices are falling again. joining us no from the business desk. what are they reacting to now? >> they're reacting to comments by the saudi arabian oil ministry. russia r russia recently said they'll shore up prices, but the minister reaffirmed his stance. they won't go so far as to cut production. lee niani spoke at a conference in houston. he referred to the agreement last week between his and three other oil states to maintain output. he said the freeze was a first step. he said if other nations joined the agreement, the existing high inventory will likely fall. he expressed his intention to meet with the other countries again next month, but he said it would be a waste of time

washington is seriously concerned about china's increased in the south china sea. responding to reporting that beijing has deployed surface to air missiles in the region and pointed out the contradiction to remarks made by china's president last fall. >> they stood in the rose garden with president obama and said china will not military yoois in the south china sea. there is evidence everyday that there has been an increase of one kind or another. it's of serious concern. >> kerry told reporters the united states expects to have very serious talks with china over the coming days. on wednesday, u.s. officials confirmed the apparent deplo deployment in the miss sill systems on the par sol island chain. fox news appeared to show a radar system. the u.s. media say they may have been deployed last week. the foreign minister declined to confirm it, but justified the build-up. >> the facilities are for military and for self-defense. they're totally consistent with the right of self-defense given to all nations by international laws. and there is no room for criticism. >>

china's government is resisting that. it wants to control the direction of its currency and not have foreigners do it for them. a fuller picture will come next month when we get figures relating to retail sales, vechl and industrial output >>> president obama is hosting south-east asia leaders for a two-day summit at a california desert retreat. he will be hoping the efforts bear fruit. >> reporter: there are 6500 nautical miles of pacific ocean between south-east a sha and the west coast of the united states. for the president the asean region's dynanism is central to global economic growth and security in the 21 st century. that's why he hats invited the ten leaders to come to california and have an informal discussion, basically to sure them of u.s. engagement and commitment to that region but at the same time to remind the leaders that the relationship is mutual beneficial. u.s. officials say the talks are not meant to focus on china, but they will discuss maritime security. for asean countries are embroiled in disput

pmi,but then you see china and it comes over to china. do you just assume a significant depreciation of the renminbi? carl: this pmi number is the stupidest number there ever was. the handles 49. the last time the pmi was 49 was in 2012. the time before that was -- the economy was growing at 11%. before that, there was no pmi, so we do not know what the economy does when the pmi is 49. this is making tea without tea leaves. china as i am concerned, industrial production is growing at 7%. anyone who tells me that it is contracting is talking total disconnect from the real numbers of the world. can we count on china? carl: last year they contributed $700 billion to world gdp. clearly they are doing something that we are not. when we give them advice on how to grow better, the chinese have selfpression -- they say inspection should be conducted three times a day. we have to look at ourselves. tom: i cannot believe i'm saying this -- we begin february. alan ruskin radio, of deutsche bank. it has been way too long since we spoke to mr. alan ru