tsai spoke at an event to mark the founding of the republic of china. >> translator: mainland china should face up to the fact that the republic of china and the people of taiwan have deep faith in democratic principles. leaders on both sides should use their wisdom and flexibility to aim for a win-win relationship. >> tsai said her china policy is to maintain the status quo, noting that taiwan has been recently excluded from some international meetings, she asserted the island will not succumb to pressure from china. she added taiwan will not revert to the old path of conflict and confrontation. tsai avoided mentioning the one china principle. china's taiwan affairs office released a statement in response. it said the one china principle represents the reality of the mainland's relationship with taiwan and is the cornerstone of their peaceful development together. the statement appeared to be pressing tsai to embrace the principle if she wants to restart dialogue. rescue teams are searching for survivors in eastern china where four residential buildings collapsed. they collapsed early mon

following this, china's major indexes fell. and china markets will open in an hour and a half. let's look at the asia-pacific region. australia's major index is now up about .25%. now on monday, sydney's indecks fell sharply on a decline of casino stocks after reports that china detained employees of australia's crown resorts. so we'll be keep an eye on that today. >> all right, john. tell us about currencies. because looks like the dollar is retreating against the yen, whe where are some major pairs now? >> the dollar pulled back from the 104 yen level to 103. investors have been taking profits after the greenback had been strong for the last couple of weeks. the dollar/yen is currently at 103.73. on monday, federal reserve vice chair stanley fisher said economic stability could be threatened by low interest rates and many traders are wondering whether the fed will decide to hike its key interest rates. today investors may be in a holding pattern ahead of the u.s. inflation data due out on tuesday. and also the china gdp data that's due out on wednesday. so we'll keep an eye o

on the campaign trail. >> china is a currency manipulator. >> one of the biggest problems with china is the illegal >> reporter: we took the masks to the streets of beijing to get people's reactions. some recognized them instantly. >> trump and clinton. >> others not so much? >> i would have recognized obama, he is handsome said this woman. while a majority of the chinese support a clinton presidency. this man is backing trump. he is a bit crazy, he said. but i support him because she >> reporter: for forbes, a trump loss would be good business. >> so you want him to run again? >> run again in four years. good for us. yeah, of course. so next time. >> reporter: and a second opportunity to scare up some votes. adriana diaz, cbs news, china. >>> that's the "overnight news" for this monday. for some of you, the news continues. for others, check back with us a little later for the morning news and cbs this morning. >>> welcome to the "overnight news." i'm elaine quijana. with over a week to election day, hillary clinton is taking new heat from a political fire storm that rekinled. recomm

reviewing the takeover of aixtron by china. a negative surprise. it is unclear whether the german economy ministry has new insight which might've led to the reopening of the review. originally, they give the thumbs up back in september. also for carbon. the manufacturing of equipment could slump 15%. that is coming from -- the fourth quarter will be challenging. numbers will be below expectations. it seems as though is it is good amounts to a 10% cut in estimates. clear stocks to keep an eye on coming up at the market open watch out for what we have been talking about first of futures currently going to a higher side. what a bleak city of london. this is bloomberg. ♪ guy: good morning, you are watching "bloomberg markets: european open," caroline hyde's over in berlin. caroline is your morning brief. capital, mobilizing a at&t agrees to buy time warner, what is the biggest threat to the deal? the regulators of politicians. takeover this as the eu and canada trade deal up here , how much can protectionism hurt growth? the euro

it is not just china in that situation. chinese domestic capital markets, financial markets, property or anything else, are still pretty immature. they are volatile. you look at the divorce rate spiking on the back of -- [laughter] is still in the early stages of its development as a financial market. no one is pretending china is the same as the u.s., but the authorities recognize these issues. angie: they have also kind of come in and recognized the issue and tried to at least curb their addiction to cheap liquidity through stimulus, which did underpin the first half of the year. can we expect that to continue in the second half? >> i think the pessimist would say, look, all they've done is increased the credit in order to keep the economy moving. the optimist would say, look, that is the first stage. you've got to stabilize things before you move on to reforms. i suspect the reality is somewhere between the two. reform probably won't be as much as we like to see, but credit creation won't be as bad as the pessimists say.

is china in a bubble? can the economy continue? mike: china is not in a bubble. the economy is slowing, but not slow. the components of the economy are changing rapidly from investment and old industrial and manufacturing to services and consumption. there are too many points raised yesterday and i was not here to discuss them and debate them in isolation. but what i would love to do is to comeh jim and kyle to our campus and sit down and we can help them understand some of the things they do not understand about china. emily: gdp is flat or dropping yet jack ma says consumers are still spending money. where is the disconnect? mike: not understanding that when the economy slows, not all of the economy is slowing. hearts of the economy in china are slowing, particularly the older industrial and manufacturing. at the service and consumption components are growing very rapidly. our business grew at almost 60% last quarter year on year, and that is because more people were consuming. that chinese consumer population is 423 million people with $4.3 trillion of assets,

chemical experiment, china is said to line a combination between kim china and another company. what does this experiment with enterprises mean for investors? tough talk. the eu president said in a brexit -- any brexit will be paid for by britain's. plus, the prime minister think she can have cake and eat it. and we talked to a ceo in about 15 minutes. caroline: we are less than a half-hour from the european owner. we could see a bounce back from features. today, futures signal an update. about 4/10 of a percent. a risk appetite coming out on the back of those numbers from china. is it something here to stay? guy: let's talk a little bit about what is happening with the stories. let's get a first word news. -- go to first world news. isphiladelphia fed president uncertainty -- making an argument for delaying the rate increase. will be al banker voter's ear says he is worried about potential policies that would have distorted effects, depending on the outcome of the vote. he did support a rate hike in september. scotland's first minister says she will publish a draft scottish and

to china by name. several member states have called for greater unity. singapore's defense minister says you have to understand what it is you're really fighting for. ramy: thanks very much. next, the latest reading on the japanese economy. this is bloomberg. ♪ ♪ ramy: you're watching "daybreak asia." yvonne: we are seconds away from the boj latest gears -- figures. like at least the large manufacturers numbers were not as good as the economist expected. they came in at six, which is the same as the last quarter. the economists had expected that to uptick to seven. in the non-money factoring index, it has slipped to 18 from 19 as had been predicted. we are seeing spending not as good as expected, 6.3%. companies have raised their 6.2%, but notom as much as the 6.5% as expected. overall the results are holding steady, but a little bit of a slip both in the large money factors index and the expectations for spending. yvonne: thank you. look at some immediate reaction now here it -- now. it is really

china claims more than 80% of the south china sea within the border they call the nine-line proven by 1940's map, so why diamonds so sought after? one, many have oil and gas reserve potential's. two, it counts for global fishing production, and three, they are strategic. it gives china an extra 1500 kilometers of influence. about one decade ago, countries started making more claims on the new u.n. rules and that led several nations to share ownership. china got the most attention and started to build islands, installing runways. that led to the philippines challenging chinese claims. the philippines won the case in 2016. china's reaction -- it is void and has no binding force. washington endorsed the ruling and called for peaceful resolve. beijing said they have no intention of proof -- of preventing traffic but protecting their territory. china is also locked in a dispute with japan over another rocky out front area china calls them the di the islands and japan caused them [indiscernible] president obama has said the u.s. security treaty supply silence, which means they could act in

one. >> china is not an enemy. of the united states. there are not any good reasons for china to ever be an enemy of the united states. people of my background actually spend more time worrying about chinese failure than we do chinese success. chinese weakness. than we do chinese strength. >> how would they be more of a >> you have got these extensive and frankly unfounded claims. to the waters of the, of the south china sea. so you see the chinese kind of reverting to nationalism. falling back on to nationalism to keep the party in power. that's what i mean when i suggest that a fail in china might actually be more dangerous than successful china. >> what's the worst case scenario for you? >> worst case scenario china does not react with patience to territoriadi inadvertent, ships banging one another, air flights. >> when we see the report of chinese jets buzzing american aircraft, we should be concerned? >> i am personally very concerned. doesn't take much human air to turn that excess of emotion, all right, into

earnings in japan, china, and , and hundreds of china's top brass in beijing. will they shake up the top post? a lot to watch out for. news on mergers and acquisitions, at&t's is for time warner, british american tobacco looking to make a bid. we have google and apple on the docket, so it busy day. let's see how things are kicking off in the asia-pacific. australia, flat, not much price action, the asx 200 unchanged. thatis ahead of the inflation number on wednesday. japan shares falling after that earthquake that hit western japan. , asould see a bounce back much as 200 points or so. 103.98.en of around closed marketst in the asia-pacific, labor day in new zealand, thailand shut to commemorate the king. that was an early look at the region. it seems like it will be mergers and acquisitions. coming friday, the first estimate of third-quarter gdp for the u.s., potentially 2.5%. some major deals we want to get to. about chinaoke ocean wives deal -- ocean wide's deal. >> it will be a megamerger monday, one deal just hitting the tape. oceanwide, $2.7 billion, all c

we spoke about outflows in china. china sees huge outflows to the u.s.. these are persistent capital outflows. the u.s. economy improves, mexico will also improve but unless it can stem those capital outflows, it will be difficult for the mexican peso two rebounds sustainably. if you get the right candidate, you will see a slight rebound. sure it will necessarily reverse the trend. is medium-term trend -- this one of the more competitive currencies out there. probability of a trump when? -- when? would that much further from that. in my mind, it is even lower. mark: up next, boris johnson is quiz by parliament. could brexit the delayed here? this is bloomberg. ♪ she said the u.k. would be leaving and their fight -- thereby you would be leaving the the number of court justices would no longer be subject to european community. that is the key point. you will get the best possible deal for britain. moving on from that. ♪ surveillance, 9:41. boris johnson being quizzed by lawmakers on parliament foreign affairs committee. the u.k. influence in the world i

. ♪ ♪ >> and oldie but a newbie there in china. a heavy rain maker is moving across the bay of bengal towards

i have made a lot of money with china.

but i do not think it is people outside china so much as inside china. arectations inside china still determined largely by moves against the dollar. that makes the pbo sees -- pse -- pboc's job much more difficult. michael: it seems that they are affects,t the trade they're going to have an impact. but that is not really the case. i am not sure i agree with that. there has been a move against the dollar. there has been a move against the basket. appreciated alongside of the dollar significantly between the middle of 2014 to the middle of 2015. since then, it has depreciated both against the basket and against the dollar. and that is leading to questions about what china's true target -- policy target is. you talk about, china still has a long way to go until they countady for a realization. from a reform standpoint, what are the road markers we should be watching or -- watching for? >> i do not think it is a priority. look at financial sector recapitalization. balancebanks taking on sheets their off-balance-sheet activities? do they have enough capital

china. the biggest bank in the world is a tenant of mine in manhattan from china. i own the bank of america building. san francisco got it through china, through a certain very complicated route. we are going to lower taxes on american business from 35% to 15%. we are going to cut taxes for middle-class families by hundreds of billions of dollars china, through a certain very complicated route. we are going to lower taxes on per year. and my infrastructure plan will provide help for projects like the proposed interstate 11 here. we will become a rich nation again. we will become a rich country. and we have to be a rich country in order to do what we have to do. a woman came up to me recently

. >>> china exports plunging more than expected. global market reaction coming up. >>> and earnings on deck with the fed reaffirming consensus for a december hike. it's thursday, october 13, 2016. "worldwide exchange" begins right now. ♪ >>> good morning. warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost alongside courtney reagan. good morning. >> good morning to you. you had quite a busy 24 hours. we have, indeed. we'll get to those specifics in a moment. let's hit the markets. >> it is 5:00 a.m. on the east coast. but first breaking news. the u.s. military launching tomahawk cruise missiles against radar sites in yemen. this comes after incidents earlier in the week when the ship was fired on by a rebel controlled area. >> we'll have headlines on that for you throughout the day. markets, as you can see right now, pretty soft. we're down over 100 points for the dow. 108. the s&p down 14.5. nasdaq down about 30 points. significant weakness off the back of yesterday when we were broadly flat. we did have the minutes f

in the east china sea, china is also locked in a dispute with its age-old rival, japan. that -- america does not take a formal position on their sovereignty. president obama said a security treaty applies to the islands. that means the u.s. military japanese waters are violated. this one incentive to stay friendly -- trade. $5 trillion of trade every year. quickly china's been building its military positions in the south and east china sees and how nervous that's making everyone, some analysts say there is a significant risk of armed conflict. perhaps even as a result of miscalculation. that was just one of the many quick takes you could find on the bloomberg. you can also find them at bloomberg.com, along with the latest business news and analysis 24 hours a day. that will be all for "bloomberg best" this week. thanks for watching. i'm caroline hyde. this is bloomberg. ♪ announcer: "big problems, big thinkers" is brought to you by cisco. there has never been a better time to change the world. ♪ terre: we asked some of the best minds in the world from business, gover

we are counting down to the opening in china and hong kong. elsewhere, no real clear lead coming out of the dow , a lackluster session. the nikkei is the only one outperforming. a quick check of the latest business flash headlines. japan's top rated analyst saying the boj will have to taper bond buying as soon as a year from now as it runs out of willing sellers. the good news is yields won't job and the central bank will be able to keep its promise of a 10 year yield around zero. the magnitude of bond holdings will allow tapering without volatility. haidi: hyundai voters reached a wage deal following the worst strike, causing the company billions of dollars. hyundai will increase pay by 72,000 won and incentives worth three-time salary. members are set to vote on friday. rishaad: hanjin steaming ahead, the court selling core assets this week. and 8.8% gain at the moment. it is quite a move. the court said it wanted to dispose of the container line as an entire entity, but then agreed to a piece by piece sale here it -- sale. landed a deal to

described as china's angelina jolie. >> it feels as if the movie industry here in china is getting more and more like hollywood. >> the speed of the development, you can't imagine. even for us. >> reporter: it is changing so quickly. >> so quickly. you don't even receive act. it already changed. >> reporter: and transformed into a multibillion dollar industry. chinese studios, produce over 600 features a year. action movies. sci-fi. thrillers. behind them is a group of pioneering movie moguls. like dennis wang. he once worked as a chinese food delivery man in new york. and is now chairman of the largest studios in the country. the movie business has made him a billionaire. a capitalist with chinese characteristics. last year he spent $30 million on a picasso which he keeps in his pocket and in one of his other homes. so that is the picasso. and you bought it from the, the goldwyn family who owned the mgm studios in hollywood. so not so much a passing of the torch, it is a passing of the picasso. the biggest prize isn't picassos. but hollywood itself. this year, a chinese company, purcha

china --iticism trump's criticism of china is a bit 2000 late? donald trump's views are something of a time or -- stuck in something of a time warp. there are no longer as much of an exporter as they once were. gdp toy need to look at see how much internal drivers .re fueling growth and spending services is more than half of the economy. there are now down to 3%, and that is projected to fall even lower. the idea that china is just exports and jobs gobbling machine that once was probably does not stand up to scrutiny anymore. the currency has weekend, but let's not forget they are intervening to keep up the exchange rate at the same time. shery: are there violent criticisms -- are there valid criticisms on china? >> china has been accused of dumping steel on the global market, causing problems around the world. it is also true to say their chief manufacturing base has -- cheap manufacturing base has depressed jobs in america. of course, the outside world can be frustrated by china's glacial pace for reform. i think we have gotten to a point where

china several debt has grown 465% over the last decade. itsy: ford is shutting mustang factory in michigan for a week. production has been suspended to match going demand. employees will resume work on october 17. workers will be paid during the shutdown. rishaad: facebook wants people to use the service at work. companies will be charged for the service based on the number of users starting at three dollars per employee for the first thousand. asian equities moving to the upside, getting a boost from the higher oil prices. let's get over to melbourne. great to hear from you. what is framing the debate? and framing investor sentiment? win overs been a big the past 24 hours. it should not have been a huge surprise that russia was keen to come to some sort of an .greement with opec nations russia and six other non-opec members were ready for a deal in april. now those disagreements seem to have healed between those two opec members, it seems more likely that a more significant supply cut deal can come together. will thew strengthening dollar

china's recent buildup in the south china sea has increased tensions. a territorial dispute with china. last week a trip to beijing, duterte agreed to set it aside for now. he also said his country would break with the united states. >>> nhk has learned that the american government has urged nato members to oppose the draft resolution on a nuclear ban treaty. it's a main highlight of the u.n. general assembly's first committee meeting which began in new york earlier this month. nhk has obtained a copy of a u.s. document distributed to nato members dated october 17th. in a letter sent to allies, the u.s. strongly encourages those on the u.n. committee to vote no to starting negotiations for a nuclear ban treaty. an attached analysis says a ban would delegitimatize thehe nuclr deterrence. it says the u.s. allies and partners depend on the concept for defense. the draft was submitted by about 50 non-nuclear countries and calls for the start-up talks on creating a treaty in 2017. japan is under what's known as the u.s. nuclear umbrella and has yet to decide

china continued as the scene of misery and death. people made homeless with indomitable courage but inadequate weapons the chinese thought back. alone the get of resistance to japanese imperialism alive. japanese envoys to the united states described themselves as missionaries of friendship and peace while they were still negotiating their countrymen struck a savage blow unparalleled in intimate. 7 1941.rbor december in spite of crippling damage, the united states fleet augmented by british australian and that unit set out to find the enemy. the japanese advancement was halted. even if the enemy made passes towards hong kong and singapore, they begin the long journey back. step-by-step the japanese were beat back. in the philippines, under japanese rule, prisoners had been subjected to indescribable g.ffering will sto the filipino people that never stopped fighting for the douglas macarthur had promised that he should return and return he did. jima, the a --iwo power of the american pacific to scores ofcombat amphibious invasions. th

emerging economies which rely heavily on trade with china. after the markets closed on thursday, fast retailing, the casual clothing chain releases earnings reports for the year through august. it said the company's net profit fell more than 66%, and the president said he slash the sales target to be achieved by 2020 from $50 billion to 30 billion zlrz. that was due to increased competition from overseas global rivals. so a lot of competition and focus on that sector of the market as well. >> rumi, speaking of a stronger yen, we really did see that stronger yen weaker dollar following china's trade data. >> the sharp dropoff was quite evidence, it was trade around the mid 104 yen levels, and now it's 103.80-893. many investors piled into what they considered the safety of the yen in times of uncertainty. now the thai bond was weakening, but after news of the death of the king, it bounced back against the dollar. yesterday's thailand's benchmark stock index bounced back, many analysts say the country is unlikely to face major economic disrupti

of china, and yum went early. it went hard. they have a big presence and a global supply chain. they can go into tier two, three, four, five, six cities, and they can distribute and control the quality of the product that they sent to stores. huge compelling competitive advantage, and over time they're going to go from 7,500 to 20,000 restaurants as they deploy capital. they have a three or four year payback. phenomenal returns. my guess is it looks like this. it's volatile and up into the right. franchise company is a growing annuity that's much smoother. you can separate the two businesses and have a spin that makes each company better. china co can take its excess cash and it will generate a tremendous amount of free cash flow and reinvest in china to grow and whether it's kfc, pizza hut, or taco bell, open new restaurants, and yum franchise co, $30 billion company, has no use for cash. over time your earnings goes up. your denominator, your shares outstanding, what the earnings are shared over, go down. they p

. >> china? okay well, my view over china is cautiously optimistic. at this point in time china is in transition of their economy into a consumption oriented economy. as we experience in japan the problem they face is the huge debt in the air. and that is associated with strictly unprecedented investment to save the dash sell how they can adjust it down to an appropriate level. we spend almost let's say 15 years after we recognize too much debt on the balance sheet of the companies down to an appropriate level. i am going to imf and almost 40% as access and debt of the china corporations. if they start to address those issues then what will happen is those deaths to the balance of the government as it's happening in japan and then in turn the government will become -- so those kind of dynamics needs to be carefully monitored. for a short time i don't think they will have a landing but in the longer term perhaps it will take a little longer than you might expect and also the aging and the declinin

say you likeou asia, do you include china with that? >> when you say you like asia, do you include china with that? we have five that have been doing very good, why ignore hem? >> you like india, right? >> look, i don't like india. presumably, what i don't like is the equity market in india in relationship to the absolute avoidance of any concrete radical economic reform. the last big radical reform, the unified the gst. and i said, ok. >> but didn't the new governor just enforce, reinforce the commitment to grow? >> that was my the last one was thrown out. >> doing the government's bidding. e-voting because of that. -- eroding because of that. makepital interest rates some kind of sense. >> ok. let's take your five little ones. >> there is nothing structural happening there. >> why should i did my fingers in that? a i will explain it to you in different way. what i do like about indonesia, for example, that is one of the two best, the other one is thailand. is the commodity cycle, particularly cold. favorable, i like that. thailand is

emily: what about china? obviously, the way they intended to get into china hasn't worked, but now they are working with chinese streaming providers. media companies like disney have. cory: they have in certain ways. they brought a different models of china, whether it's a theme park or with content. one of the things we saw, the focus of the press release, was netflix talking about owning the content they make. unlike the most famous case in "house of cards," they don't own that content. netflix talks about owning their content, in a disney like way. what's your favorite netflix show? emily: "narco." i can't watch "stranger things" because i don't like scary. cory: "get down" is so good. emily: is it? cory johnson, our editor at large, david kirkpatrick, our guest host. thank you much for joining us. that does it for this edition of bloomberg tech. tomorrow we have an exclusive conversation with david sacks. and lyft's cofounder will be joining us. tweet your questions. we're streaming live every day at 6:00

china is one of japan's largest exporters. giang nguyen reports. >> market reaction was rather muted on the china gdp figures. but analysts say investors were in line with the expectations. the nikkei 225 ended trade day higher by 0.2% closing at 16 16,998. the broader topix ended a touch higher. so relatively calm reaction t t the china data. but earnings prospects in japan provided a big boost. shares of sharp jumped more than 10%. that's after the company s saidt expects a significant improvement this fiscal year. and mitsubishi motor shares gained nearly 8% following the news they will appoint its ceo as chairman of mitsubishi. nissan plans to make a controlling stake in the automaker. many are waiting for the policy meeting on thursday. president mario draghi isn't expected to announce anything this time. i'm giang nguyen. >>> moving on to other markets in the asia pacific region. advance on china's steady growth figures. but financials drag down the index. hong kong's hank sang fell after tuesday's rally. the index slipp

one country left out of the global recall was china. the market was a huge hit for china. for more, i want to bring in a cory johnson and our asia tech managing editor joining us from tokyo. with me still is john lilly. it's been a unique situation in china. the recall applies to all note 7's around the world. what is unique about the way this has unfolded in china? guest: it is important to begin with the fact that china is them biggest smartphone market in the whirl and samsung has done well there. they are facing competition recently but they shipped a small amount at the beginning of reduction. they did not do a full-blown recall. they only took back some of the phones from the early batch ends of the early phones were safe because they were from a different manufacturer. now that they have discovered another round of problems with this phone, they have done a full-blown recall, but the initial decision not to go into full-blown recall in china has cost them some goodwill. they were bothered by being left out of the recall and that has fostered some ill will and they h

♪ >>> as china experiences on going economic decline. housing costs in beijing now surpass those through new york. according to an april 2016 announcement, from the uk's business alliance, they have become the most expensive in the world. investors who have given up on stocks have returned to real estate investment. prices of newly built homes in 70 major chinese cities, have surged up to 60% in the last 12 months. somehow beijing is so costly, buyers cannot be found. property prices have gone up by more than 500 u.s. dollars per square meter in just over one year. the closer you get to central beijing, the higher the prices. the pricing units are almost $15,000 per square meter. the surge in crisis has made it challenging for people to buy their dream home. many are moving to the suburbs, in search of afford abable rent. the city's commute time is the second longest in the world. >> people from all corners of the country come to the capital in search of business opportunities. unless they are very successful, it is difficult to live her

we actually have just incorporated in china because we have expansion plans in china. for the first five years, we doubled in size every year. we still have wonderful growth 10 years in, nearly 20% growth year-over-year. i don't see it slowing down anytime soon. i'm looking at acquiring companies now to continue with the growth. i can do that now because we have such a strong brand. there is never a dull moment. that is for sure. scarlet: we've got plenty left on this edition of "bloomberg best," including exclusive interviews with jack lew, george osborne, and philadelphia fed president patrick harper. he provides his insight perspective on the dissent at the last fomc meeting. plus, insight from bloomberg's star-studded global summit. stay with us. this is bloomberg. ♪ . ♪ sec. lew: we know there are a lot of people in america who do not feel they benefit from growth. you can win the argument on trade that the economy will grow. but people will say, what does it mean for me? the answer is we invest in the things people see affecting their lives. we have infrastru

china in the north's main ally. in february, china's chief envoy on north korean affairs, wu dawei, visited pyongyang to discuss the nuclear and missile programs. u.n. security council members are holding talks behind closed doors about additional sanctions against north korea in response to its recent nuclear test. >>> the tokyo international film festival opens on tuesday and it kicked off with a trio of films about people migrating across asia. multi-award winning japanese director cure owe sawa chose to set his latest movie in malaysia. >> reporter: ukisawa shot his new movie entirely on the island of panan. it tells the story of michi, an elderly man, who leaves his company and family in japan to live the rest of his life on the island. his son suggested the move. he didn't think he could take care of his father anymore. he visits the old man once a month but never has anything kind to say. >> reporter: michi opens a cart only to pigeons. >> reporter: malaysia and other countries in the region have been encoura

and china and true with europe. luxury doing very well but our mass market division is really accelerating. also everywhere. re balancedch mo activity that we have now between the different divisions. francine: does that surprise you, or was it always natural hedging? jean paul agon: you're right. it's a balancing act. for us, the fact that we are o different markets and different channels and different divisions has always been a very important element of l'oreal, because it gives us this balance. and this capacity to grow whatever happens. because every year there is something wrong happening somewhere. but because we are a very global company, in countries, activities, price points, alli in all, we can manage steady growth. francine: talk to me about your partners and innovation or your startups? did you try and buy them when it is proven that what they do works? jean paul agon: we try to do everything. we try first to spot at the very early stage startups like we do here. we held them. sometimes we partner with

china started to build islands. that led to the philippines challenging china's claims in an international tribunal at the hague. philippines won the case in july of 2016. china's reaction is that the order is no and void. the reaction of the u.s.? >> president obama: the u.s. will stand with allies. >> washington endorsed the ruling and called for peaceful resolve. beijing says it has no intention of preventing commercial traffic that is simply protecting its territory. 1000 miles north in the east china sea, china is also locked in a dispute with japan over another rocky outcrop. islands -- the u.s. does not take a formal position on the sovereignty, but in 2014 president obama vowed to defend them. so far, the dispute has been confined to jostling for position by ships and aircraft. here is the argument. there's one big incentive for countries like china and japan to stay friendly. it is called trade. hosts $5 china sea trillion of trade every year. on the other hand, given how quickly china has been building its

china gdp today, 6.7%. you were questioning some of the data, and that is something we need to keep at the back of our minds. china financial conditions -- this is the blue chart. it shifts away from stimulus, more toward controlling financial risk. let's go to enda curran. 6.7%. do we trust the numbers? enda: this is a great debate. on a headline basis, it is mission accomplished for the chinese government. they are comfortably on track to hit their growth target for a year. that thism is stabilization has come at a significant cost. the debt leverage story in china continues to get worse, and at the same time, policymakers are dealing with a property bubble in their biggest cities. it looks like growth is on track for the longer term. that is where the hard work should be done. francine: what do we know about debt? i do not see anything that dramatically new over the last three months. same story, but they are suggesting it is getting worse. the imf put out a report warning about china debt levels. the wi

/china's relations, how do we address china's concerns about a reunified korea under seoul leadership while the tensions with the united states continue to worsen in order to get china to take a more aggressive stand on north korea? >> it's a good question. there's much wrapped up in this. i would simply say in terms of the relationship between the united states and china, we the united states have been blessed with a different kinds of relationships. but basically we've had two different kinds of big relationships. we've had very close allied relations with strong cooperation. and we've had relations with a country like the soviet union deeply antagonistic, right? china really represents a new kind of relationship for the united states that will be very difficult for us going forward. and i think we just need to recognize that. because it will embody elements of necessary, inevitable, purposeful cooperation but also areas of tension. and the most important thing in a relationship like this is to be honest about those areas where we tend to disagree and where we have our problems. con

china. unspoiled valleys in neighboring sichuanan show us how it might once have looked. iit's the sort of natural abundance that is necessary to support an emerging civilization. how could a landscape with such potential havave been reduced to this?s? when chinese scientists and civil engineers began to survey the area, they realized that several thousand years of agricultural exploitation had denuded the hills and valleys of vegetation. the relentless grazing of domestic animals on the slopes meant that there was no chance for young trees and shrubs to grow. the rainfall no longer seeped into t the earth, but simply washed down the hillsides, taking the soil with it. over millennia, this progreressively destroyed the region's fertrtility. when this happens over an area as extensive as the plateau, millions of tons of silt arare swept down into the yellow r river, which gets its name from the color of the fine loess soil. the mounting quantities of silt clog up the river, impeding its flow,

i would like to see the japan relationship with china continue to improve. and i think we can all be ambitious about the prospects and possibilities of even tighter, closer coordination between japan, the united states, and north korea. for decades we would have said about the japan/u.s. relationship, there is no more important relationship bar none. i would say that relationship is more significant and important now than at any period during the cold war. and that's something that is i think deeply recognized by both the japanese and american people. like south korea, attitudes in japan about the united states and vice-versa, in the united states about japan, have never been more positive. we need to capitalize that, deepen our people to people exchanges, our understanding of our role, and recognize that japan will not only work with us in partnership, as they have done for decades, increasingly they will also demonstrate areas of an independent foreign policy. and as a mature nation, that's appropriate. and we support that. we have confidence in japan. pri

in china. scarlet: inevitably, these things will happen, but there still needs to be a catalyst to get to that point. do you see that forthcoming? >> yes, i think it is the change in government policy. until very recently, the chinese government, in order to preserve jobs from a was happy to have prop upe-owned banks the zombie companies even though they were losing money like mad. they have changed that policy, and the state's central government has appropriated a sizable funds to ease the social problems that will be created by getting rid of some of the excess capacity. example, they need 700 million tons for their domestic consumption. they have been exporting often that dumping prices another 100 million tons. but they have 200 million tons of unneeded capacity. bet is going to rationalized, and we hope to help play a role in fixing the problem. as you perhaps remember, we did quite a bit with consolidating and saving the steel industry in this country a dozen years ago. matt: we cannot fo

. >>> china pointing its first china ceo and announcing it wants to have 5,000 stores there by 2021. howard schultz will join us from shanghai. >> they have to open a store every single day between now and then. >> if they continue to keep it up, talking about their concerns about china, a store a day for years is their plan. >> earnings and the election, two of the big stories on the minds of investors today. covering the earnings. he's in las vegas with a preview of tonight's third presidential debate. bob, why don't you start us off here. >> it's early, but i'm pretty happy. i'm getting excited because the numbers are better than expected right across the board. we got more bank earnings today. you know morgan stanley, some of the big money center banks, they're doing well. i like the regional banks, the bb&t, us bancorp. they're moving earnings estimates up. the s&p 500 will probably go positive on that. the first big surprise on energy today. h hal butt haliburton. beat by about 6 or 7 cents. earnings doing a lot better and north america doing better. dave lessor, the ceo of hal

and china is in the front lines. does it is one of the globe's leading producers of electronic equipment. p province has seen hugee changes.s. long submerged in poverty, it has now become a center for createdede-waste it hahas multimillion dollar businesesse. it has beeeen described as the world's electronic waste basket, with 80% of the people earning a living by ripping apart old electronics, espspecially old computers and mobile phones. >> nowadays, people get rid o of old phones all the time. announcer: h here is the directr of the largest internet search engine company. up i inimeses they end citieses where they are dismantd in unhealtlthy and unsafe ways that expose not only people whwo are dodoing the dismantling to dangerous chemicals, but it pollutes the air and ground modedern -- groundwater. announcer: with its extensive reach, this company has worked with united nations programs to come up wiwith an innovatation t could help reduce -- and prprove the e proper disposal of electronic waste. >> it t gives u