indeed, china's one belt one road is, to me, the coming—of—age of china as a full—fledged superpower. if not regional, it is a global superpower. it is the manifestation of chinese ambition, not just as an economic superpower but also eventually cultural, geopolitical, and also a military regional power. so, the impact, but consequences for us smaller nations in asia is quite significant. i think the important component of one belt one road is this idea of connectivity. and connectivity takes a lot of money to create. physical infrastructure is the most important thing. without this physical infrastructure connectivity, the one belt one road will go back to the seventh century, moving by ship, you know. so, who is going to invest in this one belt one road, connectivity building up the infrastructure chat? i would say that a lot of countries along this one belt one road in the past do not have that singular ability to pull this thing together, and with this initiative, there is suddenly a reason for all these companies and countries to come together, and a lot more viability for their

in other words, china's shift in the military balance has made it easier for china to contest the international status quo. with that as a backdrop, i want to look back at the traditional strategy in asia and then we will look at options for dealing with a changing environment. i think it is almost getting to be taken for granted at this point but we at r at an inflection point when it comes to u.s. global leadership and engagement where many on different parts of the political spectrum are questioning the policies the united states has followed since the end of world war ii. before we look at options, it is worth recapping what that strategy has been and what our objectives have been and the challenges to it. since world war ii and articulated in different ways by different administration the united states has followed a relatively consistent strategy. from helping u.s. allies protect themselves and controlling the commons as something that has both benefited the united states in terms of free passage of goods and information. but is also benefited others. i would say no other state actually h

and china. it is china, japan, the u.s. on one hand, but also the rest of ean countries like the as countries are key players and do not want to be seen as proxies in that potential trade were, if not in the conflict altogether. more settled he is in, how much of this will be shotss bluster out there, across the bow, and how much will change in 1-2 years in your view? next few months will be decisive. it is clear that president donald trump, who is up populist, will act quickly, and we have seen that with mexico, iran, and so on. so whether this situation will be contained in the next few months will tell us what is likely to happen later. looking atot really 3-4 years ahead. we are probably looking at six months, and the first test will be what the u.s. administration will decide to do with regards to the islands, especially those in the south china sea, but we also have an issue in the east china sea, because during the weekend, general mattis met with shinzo abe in tokyo and said the u.s. would support japan in this part

china is waiting. they are trying to be patient and not respond to provocations that might occur and hopefully and gradually build a good relationship. they do not know with whom. with the secretary of state, with the secretary of defense, who speaks for trump? >> it was the europeans who first when they heard that phrase "america first" feared that america would not get involved in the second world war. what do european countries make of this notion again of a not just using the phrase but determinedly suggesting it is going to be american interest, american needs, america's economic needs that come before all else. >> there are two things to be considered. the number one feeling in europe and in france in particular, there is a feeling of abandonment. europeans feel abandoned by america. america has been a very strong partner over the years and now that donald trump is saying he is not going to pay for european security and he is asking european states and other states to make a stronger effort finan

china bilateral trade deficit for the u.s., surplus for china. $31.5 billion in the latest month. that is where they are stepping over the latest line. thathite line shows you when it has been above 3% where you see the yellow line, but it is back below. that is where china was violating. now it is back in line. it is interesting the imf has stuck up for china. they say their currency is in line with fundamentals. is trying to strengthen its currency. it is not having the effect of weakening the currency it had years ago. maybe that is another thing the treasury department will take into account as they make this very important determination in april. >> donald is also stepping up to push to get u.s. ceos create jobs. his is going to work? >> he hits them with a bat one day then pass them on the back to next. he said today his priority is to bring back manufacturing jobs to and he wants and expects the ceos to help it. >> -- help him. ,> my administration's policies tax reform, trade policies will return significant manufacturing jobs to our country. everything is going to be base

the president meant it. >> translator: if you want to label china as a grand champion, indeed china is a grand champion, but a grand champion in economic development, since reforming and opening up policy has been introduced, we have made remarkable achievements, in this regard we are a grand champion. >> the ministry spokesperson repeated that china does not intend to take advantage, have any trade advantage by de-valuing the currency. he said they want to keep the yuan stable and make sure they press ahead with currency reforms. >> eunice, thank you for joining us. it will be interesting to see how this back and forth within the administration goes. especially when we get that treasury report on april 15th. eunice yoon joining us from beijing. >>> coming up a round up of the ceos who have personally made the most money since the election from a rally in their own company's stock. we all know stocks have been on a tear since -- >> we'll be back. a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? t

for countries that live with china and trade with china, this is uncomfortable and it needs to be said to trump privately that allies in the region are genuine supporters of the us but have concerns with the way he is conducting a reckless policy with china. you hurt both of them talking about james mattis being on that trip to south korea and also to japan. we are getting snippets of information. james mattis saying that... warning north korea in fact that any attack on us allies or the us itself will be defeated and also we were talking about the use of nuclear weapons by north korea or any such use would be met with effective and overwhelming response. so those are the comments from james mattis, the us defence secretary who is of course on that trip in asia. the first... asia being the first continent that he is visiting. we will keep an eye out on any more developments coming out there. if there's one common thread amid president trump's international disputes it's that, if you're on the receiving end of his attacks, it seems like the most important conflict in the world. take mex

he also addressed south china sea military security and future of us/china relations. this is about an hour. >> good morning and welcome to the center for strategic and budgetary assessments. my name is jamie graybill and we were discussed originally released report reinforcing the front line. defense strategy for the rise of china. this is the first of three regional reports that fit under an umbrella strategy we released the middle of last month called preserving the balance, us, asia defense strategy. meeting this discussion this morning is doctor thomas mahnken, our president and chief executive officer and for those that didn't get a chance to get the umbrella strategy i left more on the table, you can grab them as you leave. thomas mahnken. >> thank you. thank you for coming. as jamie said, this is the second of four reports in a series that seek to layout a fiscally informed defense strategy for the united states at the global level, released on january 19th and three regional strategies that can comfortably sit under the overall framework and this is the first

china must do that. given the choice between sovereignty and stability, china will choose sovereignty and pride over stability. >> i want to get your take on the presidency. his speech and davos. think china could be a leader of the free world? >> we have to unpack that. certainly china wants to be a participant in a globalized world. china is the country that has benefited the most. it needs to continue to do so. china wants to see that benefit to go to other countries that would follow along the same path anda had in parts of asia africa. china has some grand feelings about the world and feels its participation can be a real contribution. it doesn't want to be the leader for the first half of this century. china just wants to be a fully developed country. they have their goals of a moderately prosperous society and a 2050 goal of a fully modernized country. roughly 100 anniversary of the people's republic of china. to do that china needs the global -- globalization and global integration. they want sta

and china?? shi ming, what is more likely, a shooting war over the south china sea, a trade war, or is it all just a bunch of hot air? shi: i suppose that none of this would have been -- happen. instead, there will be countless agonizing quarrels, because the chinese government is not ready for such a showdown. we see that the chinese by theeters, encouraged government, are now making great offers to trump, even though trump has declared china clearly to the main enemy. alibaba is offering one million jobs within the next five years within the united states. other chinese companies are rushing to the united states to say that we will make your country great again. we chinese are making you great again. this provocation, because of is not replied very harshly by china's government. the spokesman called it just a mistake. it is not a criminal act, not a provocation, just a mistakeke. you should not continue. i think even in terms of the trade, there are some signs encouraging china's government sup

components to china, said definitely it would be a bad thing and a major risk for china for this year. although as we discussed, the outlook for the global economy is looking up, but the problem for china is that we are already protectionist measures against china. china is the main target for all of these measures already last year, so there are hundreds of ,ases like anti-dumping charges anti-subsidy charges against chinese products, so the worry allhat they be there is no out trade for, but these kind of measures can still be quite significant. that is why i say the trade environment for china is still quite challenging despite the pickup in growth rishaad:, global growth. we have been here before. u.s.ve had japanese and trade frictions in the 1970's and 1980's, then we had an accord that sort of that out to some extent. is it time for plaza accord mark two, the trump plaza accord of course, between the united states and china on this occasion? >> to can be quite different this time, because the chinese market is also very big, so for example regarding automobile industry, chinese

about made in china for china. do with the growth model for china was. down for the trend in recent important, is because if we are relying on all external demands, they want to be significant. perhaps they have so that is not uniform, electronics. >> it is not also about value added. make thate do not much money, china is going to validate that. i think there is a pretty significant thing happening. there have been cost of investment. they are trying to press their own margins. when you see something like this has illustrates what china as a basis for its own. it is a punitive goal, they are a long way off from this. they do not have enough to fill the gap left by the smokestack industry. these numbers are showing up for. next, the banks are expected to be stressed more. we will look at that coming up. ♪ ♪ check at the business headlines. this after they are trying to lower more indian customers. there are five indian cities that will give it access, with more growth. the german garrisons have had a partnership with lufthansa. lufthansatell you, say

and china is willing to mediate. china is also trying to smooth out pensions in the region, because it has a wary eye on the puttingt -- the u.s. i into south korea. this does have an impact on china's military capabilities as well. so, china has been opposed to it from the store. and on the part of south korea, we see the president park is being impeached in december and the content is to take over her position are all, will all take a softer line on north korea to her till china would have a partner there into the future on its stance on talks as well. back to you. betty: thank you so much. on this development in coal imports. back here in the u.s., bank of america awarded brian moynihan $20 million for his work last year, raising his compensation by 25%. it was a different picture for citigroup's ceo, who received a 50% pay cut. laura keller is here with more. salad days back at bank of america? laura: maybe not so much by 25% is a nice raise. if you think about what the board gave ryan moynihan, this is looking a

the other thing with china, the best thing we could do with china, we had china now in a weak spot. china is going to military come up or what we could do was take all or american companies out of china, where they are not manufacturing, and that country will fall from within like russia did. but the banking, you are too close to it. coming from goldman sachs, all you think about our large banks. it is the small banks, son, the small banks make the big banks big. will stop you there because you put a lot of issues on the table and give our guest chance to respond. guest: if you think you back to the era of jimmy stewart" it is a wonderful life," even when i came to the united states in 1970's, i remember going to america's loan, you would make the banker, they would come my pennies, give me a toaster, my mom a blender. consolidation is consolidation, where do you want to the left by j.p. morgan chase and goldman sachs, the banks have long since realized they cannot compete in an environment to it and make a regional. make originals that will walk -- like -- maker regionals like one

states in any way about the one-china policy. on the dprk's nuclear weapon program issue, china is together with the united states, is joining the united nations security council resolutions urging and demanding for the discontinuous of the nuclear testing program by dprk. so i think there will be possibility for china and the united states to eventually talk with each other. and engage in certain kind you have discussions. i think fundamentally, from the chinese perspective, we need to create a situation where the nuclear weapon will be removed from dprk and from the korean peninsula but on the other hand, the fundamental concerns can of the government of dprk about its own survival should also be well taken care after you. this is why i say we need greater wisdom and vision and courage in dealing with this very, very difficult and dangerous situation on the korean peninsula. >> yeah, and mr. ga oo, you mentioned some experts have said in fact, north korea may extend a hand if they can work in concert along these issues. right n

leaders of south korea and china. you don't see many meetings between the leaders of china and north korea. north korea is a very, very sticky, difficult government to deal with, but we have got to be careful because they are also and can be very fanatical about retaliating against what they see as aggression against of -- against them. host: while i'm in the curious position of representing american voters and trump voters, in particular, the other thing i hear out on the campaign trail and when ice the two -- i speak to trump supporters they feel they have been taken , for a ride in europe. we have paid too much, europe has this habit of dialing 911-washington and hoping we six -- fix everything. we are not interested anymore in saving european bacon. what is it europe's response to that? we don't pay our fair share of defense spending to nato and they have a point, don't they? europe has to stand up for itself. >> i went to a lot of trump rallies and heard the same thing. i see your point. the response of europe to

china-u.s. relationship is the most important -- one of the most important bilateral relationships in the world. this year is the 45th anniversary of the shanghai communique and reopening of communication. in the past u.s.-china cooperation has been more of the expectation of the most optimistic people. history has shown that we have far more common interests than differences. cooperation is required for global stability and prosperity, but also the aspiration of the chinese-american people. five days ago president xi jinping and president trump had an important and successful conversation. the two sides affirmed the importance of the u.s.-china relations to both countries and the world. president trump clearly affirmed u.s. government's commitment to the one china policy. the important consensus has maintained the political foundation for u.s.-china relations in the international community. and also, created necessary conditions for the two countries to work together bilaterally at the regional

china reacted sharply. the foreign ministry spokesperson reiterated that the islands are chinese territory. >> translator: japan and the u.s. should avoid incorrect announcements that complicate the matter and negatively affect the peace and stability in the region. we strongly oppose japan using the security treaty to draw in the u.s. and bolster illegal territorial claims. >> geng also criticized the u.s., saying the country is showing off its military power by sending vessels and aircraft to the south china sea. he said this is the main reason that china needs to have a military presence in the area. >> looks like members are sticking to their promise to each cut production. you'll remember they agreed last november to cutout put for the first six months of this year and that in itself was significant. it was the first time in eight years they decided to cutout put. january figures show that me members were able to keep production within 32.5 million barrels per day. the group said on monday that the tot

we have to ask ourselves, number one, 10 china or anyone else -- 10 china or anyone else stepping? can't, will we have an order without a leader and what does that mean? number three, to the extent the u.s. leadership is taking a big hit, can be americans get it back? there is no one better to kick it off and senator john mccain. senator. [applause] sen. mccain: thank you. thank you for that kind introduction. and may i say, trying to follow the previous speaker reminds me zsahe story of the actress zsa gabor's fifth husband who said i know what to do, i just don't know how to make it interesting. [laughter] [applause] american understands the absolutely vital role that germany and its honorable chancellor are playing in of the conscience of the west, but all of us who do, let me say thank you. decadesds, and the four i have attended this conference, i cannot recall a year where its purpose was more necessary or more important. this panel is going to ask us to consider whether the west will survive. in recent years, this question would invite accusations of hyperbole and alarmism.

we think china is just a wonderful market. but then, japan has been up quarter over quarter and a southeast asia is up. we see a lot of opportunity across our major markets. shery ahn: that was how some leading ceo's view the outlooks for asia. our next guest expects profit recovery to continue. joining me is the head of the head of the multi-asset strategy . really goodthis chart on optimism we are seeing in markets across the world, especially when it comes to the performance of the s&p 500 in global equities over the last seven years. we have prepared this chart for you. you note the performance of the s&p 500. the outperformance is that the that it level has been for the last seven years. worldwide, is a important we take this into account? >> i think we should because obviously, the u.s. equity market has been the big driver of equity markets around the world. but in some regions, like japan and europe, or asia, in emerging markets, we have had specific issues. those specific issues appear to actually be moving out somewh

trade policy with china. here is how the president put it back in december which is a complete reversal of course he had yesterday with president xi where he said he and the president agreed at the request of president xi to honor the one china policy. back in december the president said why should it just be one china policy unless we get a great deal. why the reversal of course? >> i don't know why the reversal of course. poppy, again, when you're president of the united states you're going to say a whole series of things on the campaign trail that you doubtless mean at that moment. >> jeffrey lord -- guys, can we get the sound? this wasn't on the campaign trail. it was december 11th after he was elected on fox news sunday. >> he wasn't president then. >> he was the president-elect, jeffrey. >> he was not president. he was not president. so, therefore, i am suggesting that president trump or any other president who said one thing before they took office sometimes are confronted with circumstances where they

china sea. betty: resolute but still predictable and the response. now south korea is fearing china may be stepping up economic retaliation on his decision to deploy a u.s. mitchell -- u.s. missile shield. a reporter has been looking into this side of the story. give us the details. reporter: that's what we have heard from the south korean finance minister. he suspects china is using unfair and in direct measures to punish south korea, particularly on imports in south korea to china. in light of this u.s. defense shield that seal in washington said they are set up in deploying later this year. is the defense shield that is aimed at targeting north korean missiles to defend south korean from those missiles. they say it is being aimed at china and curbing china's military progress. there is contention around this. the south koreans are trying to grow their exports. we saw the numbers pick up in december. domestically, they have seen consumption been crimped by political turmoil. uptick in the an n

would recognize the one-china principle. the policy recognizes taiwan as a part of china. the japanese prime minister is in washington ahead of a summit with trump. earlier we spoke with our reporter tomoko kamata. shinzo abe says he wants to strengthen the u.s.-japan alliance and deepen ties that benefit both countries. i think he wants to re affirm the american commitment to the asia-pacific region. trump's campaign remarks on security raised concern. >> i want to defend japan. i want to continue. but they have to continue to pay. they have to pay us the fair amount. maybe japan has to defend themselves. okay? >> it is unlikely that trump is reconsidering the japan/u.s. alliance altogether. >> that's right and this month's visit by new defense secretary james mattis was reassuring. >> the united states remains committed to the defense of japan under the treaty of mutual security. >> mattis also referred to an issue important for japan, concerning the senkaku islands in the east china sea. japan controls the islands, the government maintains they are an inherent part of c

, he is go to press hard on china. for countries that live with china and trade with china, this is uncomfortable and it needs to be said to trump privately that allies in the region are genuine supporters of the us but have concerns with the way he is conducting policy with china. if there's one common thread amid president trump's international disputes it's that, if you're on the receiving end of his attacks, it seems like the most important conflict in the world. take mexico. you'll remember that mr trump came out swinging at america's southern neighbour when he announced his candidacy, and the jabs keep coming. the bbc‘s will grant looks at how that is playing out. mexicans famously love their soap operas. the latest big release, the double life, is a tale of cross—border immigration, music business and money laundering. the past two weeks have seen more drama than even the most outlandish of storylines. when it comes to life imitating art, everything is therefore a good plot. a powerful villain which for most

can china pick up the slack? >> i think savior is overstating it, but china will be looked to as an alternative to the u.s. in tpp. we will welcome that be happy to participate. >> how about invest in's? a lot of american companies have set up regional bases in ,ngeborg, every -- in singapore everyone from hewlett-packard to linkedin. with trump wanting to bring jobs back to the u.s., will that impact jobs and investment since report? singapore.tments in >> for the past 5-10 years, a lot of companies have been investing in singapore to participate in the growth of asia. tech is a good example. from 24 people in 2007 to more than 1000 people today. we don't see that trend reversing. riskst then do you see as to gdp? >> i am cautiously optimistic. if i look at some of the data thing out, it is project -- projecting about 3.5% growth in global trade volume. if we look at the pmi in months, itfor six was above 50. likewise in china, it has been in positive territory. commodity prices have stabilized. realistically, t

this is really a good way to explain what happens in china -- we will see how thiswhen china n china. this is the bloomberg version of what happens in vegas does not stay in vegas. we will be talking about the preview. here's your period of deflation. it affects everything. you have korean exports. you have caterpillar sales in asia. hitachi machinery, heavy equipment. the amount of loans japanese banks have to dole out. with this turning positive, it does seem, it could add a little more reason for investors to buy. yvonne: thank you. let's continue the conversation with the upcoming inflation figures out of china with stephen engle. talk about a higher base affects. is there weight to be put on these numbers when it comes to determining these prices? stephen: it is interesting because we have already seen that the authorities are starting to do targeted tightening. the benchmark rate has not moved in a long time. the requirements of banks have not stopped in a long time, but the authorities are moving to much more targeted tightening measures not to affect the broader recovery. they

and china. shanghai composite the showing strong on exports and imports, signs of stability, helping to boost the domestic equity story in china. let's get to first word news with shery ahn. >> thank you. in the china policy first phone call since a xi jinping, donald trump has reaffirmed america's long-standing support for the one china policy. that will ease a key source of diplomatic tension between the world's two largest economies that emerged after trump spoke by phone with taiwan's president and then question the policy. china considers taiwan part of its territory. they made acknowledgment of this a precondition for ties. a federal appeals court has refused to reinstate donald trump's ban on travel. the ruling concluded that the government failed to make its case that a temporary freeze on be lifted.ould trump was defiant though, tweeting the security of our nation is at stake. global equities have gained after president donald trump ,romised what he called growth a phenomenal plan to ov

mp reached out to china. are we seeing a softening of u.s. china relationship? reporter: i'd say placating. china was furious when donald trump had a phone call with taiwan's leader. taiwan from china's perspective is a renegade province, not recognized. the long-standing u.s. policy has been the one china policy -- asmally recognizing beijing the government of a single china and not having diplomatic relations with taiwan. donald trump seemed to be preaching all of that protocol. he preceded the phone call by saying yes, he will respect and honor the one china policy. that seems to be a placating of xi jinping. he sent a written letter congratulating him on the chinese new year, two weeks late. details. i think ivanka and her husband attended a chinese new year celebration at the chinese embassy in washington. all of these could be seen as signs of trump trying to, if not soften, make some peace. you want to have an awful relationship with china, even though he's been tough on china going as far to say climate change is a hoax perpetrated by china in order to h

china clearly hasn't. what you will see is reciprocity well people say we will trade freely and fairly and you if you trade freely and fairly with us. if we can't invest in that sector in your country, you --'t invest in that faction sector in our country. >> do you think that would show china continuing to look like it is doing better on the surface? >> probably. they are all backwards looking, where the economy with 6-9 months ago when commodity prices were lower and we had the newest being put in. we have to look 6-9 months ahead. thanks and looking at tighter monetary policy, so i'm not sure what it does or does not show. >> what you looking at? >> looking toward 6-9 months, and looking to tuesday. what finance will be bike from a policy perspective. >> with this commodity price rally, there are concerns that it might have an influence on ppi and cpi in china. what would that mean potentially? china's problem in that they have brought frantically in order to get growth and inflation of. they have succe

kind of leading enviroroental actitivists and journalists inin china. when my friend liu jianqiang said he's becoming a buddhist, particularly a tibetan buddhist, i was very curious about why. we'd already decided we would make a little dodocumentary that would sort of show people what it is that has attracted him, but when i asked himim just in shorthand, you know, what is it that you're looking for in a religion, in a faith, in a culture? and he said, well, you know, for 15 years, hehe said, i''ve n reporting on the environment, and in that time, everything is still getting worse. so you begin to feel like what's the point? you knowow, we're exhausted, we're burned out. and he s said i neneeded somethg more endururing, something for the longer term,m, something tht would allow me to have a little bit more faith in my own work. well, i asked liu jianqiang, how would we show people what it is about the tibetans that really appeal to you? and he said, well, you should just go talk to one ofof the tibebetan monks, thehe kind of person that i met alall the

this is possibly a little bit to do with china and we are seeing stabilization comes through on china on the data, on the pmi. top live go summed it up. it wouldn't -- it would be great if the market reflected back to a country stabilized on growth rather than bashing the markets on a daily basis. i mentioned the dollar. it has bounced from its lows, no doubt about it. you have the dollar index up .251%. we have gone from the worst start of the year on record for the dollar. the s&p futures are taking 2280, up .251%. with four straight days of no gains, the longest since november 4. we have seen volatility fairly flat up by 12%. money was rushing into gold in the past 12 hours. ubs says that you could retest a level of $1450. that would been -- b 19%. the dollar is up by .25 of 1%. it could be the nixon era according to our guests from the last hour. look at what i do, not what i say. hopefully people listen to some of the things that anna and i stay on a daily basis. let's get the bloomberg first word news. president donald trump has named judge neil gore such as his pick for the sup

east china sea. and the challenge that we face. this goes to hal's point of the changing regional balances, is that some of the rising regional powers or in some cases declining regional powers that are exerting themselves to more completely dominate their own regions have found that they can, if they can take certain actions that fall below the threshold that would normally elicit a military response from us, they can through a series of salami slices begin to chip away at the foundations of this order. and so, you know, we're faced with a very challenging, you know, question, you know? as china militarizes these land reclamation projects, these sandbars that they're building, starts to put airstrips on them, at what point do you respond? when they put hq-9 anti-aircraft missiles on the first time, do you take them out then? maybe not. that would seem like a small step that warrant a massive u.s. military response that would put us in a conflict with china. so maybe you wait until they've done it on

upgrading air china and china southern -- sorry, air china and southern eastern. saying china southern has the biggest gain. they have advanced the most in an airlines index this year. the chinese carriers have been helped by a stronger yuan and studying oil prices. shery: thank you. the australian prime minister has told bloomberg he will maintain a good relationship with the u.s. despite reported rift with president trump. lun, malcolmaidi turnbull spoke against protectionism and says that at his home his government is committed to investing in new infrastructure. great interview. i love the part when you actually asked him, what do you think of donald trump the man? let's start with those geopolitical matters and what he had to say about donald trump. haidi: yeah, that was always going to be the focus, wasn't it? the spotlight was always going to be on that relationship between these two allies, australia and the u.s. come a specifically the relationship with the new president. i asked him whether he has two changed the way he deals with the white house given t

china is a big one. also, later in the week china will convene its annual two sessions meeting, the annual gathering of china's top legislative body and political advisers. this is second only to the 19th national congress of the communist party in china, later this year. they will talk about full implementing the five-year plan. they will talk about the 6.5% growth target, which they are so far meeting. sought supply-side structural reforms, and globalization under threat, something that will be bandied about. and europe, i just want to mention that european inflation the be big, because headline number is almost at 2%ir, but their core is stuck at 0.9. the germans wants to see rates raised, but are worried about inflation. mario draghi saying we are not there yet, we will keep buying more bonds. it will be an interesting week for all of our listeners and viewers on bloomberg television. know you will stay on every development. warren buffett rose to shareholders at the blanks about something he is been

and china. the president has said things that have upset china. his daughter and her husband have been meeting with chinese officials. her husband, jared kushner has been talking to the chinese ambassador, and there was a very public visit between him and his family to the chinese ambassador to celebrate chinese new year, and they even had ivanka's daughter on line singing a song in mandarin, which was well received in china, as a way to offset the snub sense president trump did not do a thank you as far as chinese new year. >> i did watch the video. it was adorable. oliver: trump has obviously taking a hard line in terms of his language about china. it is ironic given all that that there has not been a clear point person, so now there is this opening to take a softer angle, and that is where ivanka comes in. jim: right, he is using his family members, whether he is doing it or somebody is doing it, using his family to temper his rough spots. it is something we have not seen in a very long time, the dependence on family members to actually sort of

part ofprosperous china. the chinese were trading foreign cigarettes to the north koreans in the middle of the river because they were getting goods and quality from the north koreans. the north koreans were desperate for cigarettes that were not made in north korea. one can imagine how wonderful they are. the chinese can hardly stand to deal with them. there has to be more trade with oil and things like that. it has to be done. >> this question is for hans. what influence did vinegar joe stillwell avenue on chang kai-shek. that is a long story and i'm not sure it is relevant for this period. i say, oh, dera, because i have written about him and negative terms. i could go on about that. i think that there were all kinds of problems between chang kai-shek and stillwell. what i would like to emphasize -- the way that i write about america's relationship with mightduring world war ii, take on this way that i developed his ideas in the book i just finished. a, we have talked too much about stillwell, and it shoul

china has been looking at three inosing caps on production china to help manage the glut. so for china in terms of the supply, it will not make a huge impact, but it has been under pressure when it comes to north more to make it sanctions effective. the china foreign minister met with rex tillerson last week, the first meeting, and they rexussed north korea, and tillerson urged china to use all available tools to moderate north korea's destabilizing behavior. thank you for that. i want to bring in jonathan miller at the council on foreign relations who joins me and rishaad from tokyo. i'm curious, is this a signifier of a turning point when it comes to the relationship that beijing has with pyongyang? also, some other changes falling into place, you mentioned in your notes the situation and seoul, korea, the leadership crisis there. what would beijing hope to gain at this point? are a couple of interesting dynamics. beijing has been ratcheting up the pressure on north korea over the past few years. i think there is another interesting element here with the seemingly north

china and that has caused some transactions from being pulled as a result of china saying we do not wa nt result of china saying we do not want this to happen. all this money flowing out of mainland china is an issue while there currency is getting weaker. perhaps a crackdown from that point of view? getting weaker. perhaps a crackdown from that point of view?” getting weaker. perhaps a crackdown from that point of view? i think it isa from that point of view? i think it is a concern and there are clearly proposals discussed in china about additional scrutiny around transaction of $1 billion or more and also transactions regarded as purely financial rather than having industrial logic behind them. purely financial rather than having industrial logic behind themm this year ahead, 2017, are we likely to see this trend continue of huge investments drop in china in europe and the united states and what companies are they looking at? we will see this trend continued chinese investment. we have seen a shift from the investment patterns from a year or two ago centred on ensuring security

-china relationship. there is also a military relationship as china continues to build on contested islands in the south china sea, the u.s. navy is also operating in that area appeared fox news has just learned that a chinese military surveillance aircraft passed within 1,000 feet of eight u.s. navy reconnaissance plane, and so having a relationship or at least talking to one another at the governmental level will probably be necessary when the two navies are operating in such close quarters. the u.s., by the way, said the pentagon sees no evidence that the incident was intentional. >> jon: [laughs] we will see. pretty hard to miss those aircraft with all their capabilities, but as you said, they don't see it as intentional. thank you very much. >> jenna: scary scene after a 10-month-old puppy falls into icy water in wisconsin. police say waldo, the burmese mastiff dog had already been in the water nearly 20 minutes before they arrived. after being pulled out of the ice, while the took a few steps before

imf is defending china. they say china's currency is in line with fundamentals. haidi: if the trump team wants to see a weaker dollar to boost trade, are they happy about mnuchin's comments? kathleen: that's a very good question. steve mnuchin said today he sees limited fiscal impact of this year. the dollar did week in a bit. -- weaken a bit. one thing he said very specifically, he expects to have a tax reform plan in place by have moved markets on the expectation that tax cuts and infrastructure spending would be in place. pimco has said this is an issue. >> tax reform, infrastructure, those things look likely to be 2017 orut to the end of 2018, given that congress has pledged they are going to do something on obamacare. more things that are progrowth are likely going to take a lot longer than some parts of the market expect. kathleen: it's interesting, isn't it, that donald trump and what he says cuts so many ways. let's take a look at the bloomberg. are going to take a look at another one of our charts. are going to take a look at another one of our charts. j

with china. to take the cooperative approach of donald trump of the non- cooperative approach of piouspi 11. do you think it was significant or not? >> this gets back to my previous answer. i think the best way to characterize the u.s., china relationship is one of long-term competition.sh it's not long-term conflict, i think, and this is one of the challenges the past administrations have faced and one thing we already see is the new administration facing is depending on where your in the u.s., china relationship both government relationship and also our economies are intertwined, that relationship looks different. so, if we go back to the cold war, by contrast a time of u.s. soviet competition things were t not easy, they were risky and fraught with danger, but they were simple in many ways. whether you're in the business of diplomacy you are largely in the business of containment. you are trying to contain sovieo political influence. if you are in commerce, you were, at times trying to limit s

must be with china, not taiwan. our china editor carrie gracie reports from the taiwanese capital taipei. people in taiwan have more freedom of expression than people in china. after 70 years of governing itself, this noisy democracy has a mind of its own. taiwan even has political satire. in this animation studio, they are notjust mocking their own president but mr xi and mr trump as well. we have 1800 missiles pointed our way but at the same time in taiwan we have absolute freedom to do anything we want, so satire is one of the good things we need to push because it helps taiwan to get its name out there. beijing doesn't do satire. it's threatened to retake taiwan by force, and it sailed its aircraft carrier past the island last month to show that it means business. for beijing this, the island of taiwan, is the last piece in a jigsaw. it's the piece they say will finally reunite a nation broken up and humiliated by colonial powers two centuries ago. to let taiwan float off towards independence, or even worse, to

a brief word on china and the suggestion that was kind of a nixon to china at trump to china. that is -- provocative than it does open the mind for sure but it comes to the reality which is with china in the last couple of years has become very much more restricted than it was before. it's become more restrictive and that seems to fit with the internal chinese dynamic. so maybe going onto one of your other questions the notion that china would take leadership, well in infrastructure spending they might take leadership in parts of asia but leadership the way the u.s. plated in the post-war. back which was open our market very generously to other countries that doesn't seem to be in the chinese. at the moment. so i'm pretty skeptical of substandard trade leadership though given the rhetoric and so forth i think it would be a nominal trade. >> in the last few minutes, let's talk briefly if we can about the border tax from the standpoint of maybe nafta and mexico and the wall. what do you think is going to happen? i'm going to address this to gary because he has spent a lot of tim

trade action against china. scarlet: so what did he gain? what kind of leverage, if anything, that we recognize taiwan officially? >> i don't think he gained any leverage. i think what he discovered is that one china matters so much to china that they're not willing to negotiate over it. and i think you'd find the same thing with taiwan. taiwan is not willing to be a pawn to achieve trade gains for the united states. it's very hard to use the one china policy as a tool of commercial leverage. i think that's a reality the president learned. >> speaking of china, we got tom fresh data out last night, including trade day that that surprised a lot of people. what do you make of what we've seen? >> i was one of those who was really surprised by the data. the first point to make is that january and february are always difficult months when you're following china. lunar new year distortions, the seasonal adjustment is quite big and we have added -- the added difficulty of price changes. if you remember that january of

is apple losing china? the latest numbers from idc shows the tech giant had the first annual drop in sales there. >> the domestic suppliers, the vendors, have upped their game. they are cheaper, but they have upped the number of services and innovations. flexible screens, rounded screens, a number of things that give it the apple quality look. and a lot of people in second and third tier cities, maybe they are looking at these other options. keep in mind as well, something that has been underreported, do you need to pay $800 to $1000 u.s. for a phone that a lot of people are actually looking to axe to give those kinds of services? so, you can get a cheaper phone app that doesan everything you want it to do. let's bring up the top four vendors. apple has fallen down to number four right now. these move around quite a bit based on various trends. rishaad: you asked me if i had ever heard of oppo before. number one. shipments grew to 78.4 million shipments last year up 122%. huawei, they also make handsets and