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

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

exports to china did less than 1%. groupad of the swatch seeing chinae been growth potential. they are not alone, because there are other luxury watchmaker's that still see growth in asia despite the slowdown in china. rishaad: let's get over to shanghai. thank you for joining us. onhad seen this crackdown conspicuous consumption take place in china. are you seeing that coming to an end, and how is the man holding up for you? been building operations in china. we are here in shanghai to open our 25th store in the world. our business in mainland china is continuing to grow. chineser concern is the travelers, trying to define their next destination. this is the important challenge for the year to come. 45% of your business comes from chinese consumers, including tourists. it has been a hard slog with the down,evaluation, the slow the brexit concerns now rising, what are the risks and how resilient is the business? >> basically we have been faced the last couple of years with major changes, currency volatility, growing local markets. i was recently in london, and the brexit, at t

let's pick up on china here. the concern is that you have the property market curves, you have a possible curve on infrastructure investment, and whether not we will see the liquidity continue through the second part of the year is a question, and it's reflecting your concerns as well. >> i think we heard it on the tape there, a lot of foreign investors have been bearish on china and now is the time when they need to pay more attention to these things happening there. they are saying they are not concerned. the crackdown in the china , but the china property market is ordered percent of their gdp. it is representative a lot of the growth. falling, the are currency is starting to devalue. prices,are pushing up the elasticity is not there on the other side, some people are not prepared to pay higher prices. it depends on which city. >> in terms of the property tiert, it depends on which you're talking about. from talking to guess this teiier isome think that still on a tear. >> that means they will have to crack do

described as china's angelina >> 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. 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 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, purchased a hollywood studio for $3.5 billion. others multimovie production deals with american com

for china and the world. the ramifications are huge and that is why we are here to discuss this morning. let me introduce an excellent panel to talk about these issues. on my immediate left is doppler hanna from the faculty of law at hong kong university and co-author of this morning's report for latin america. on his left is an advanced professor of international at johns hopkins and also a distinct fellow at the dallas fed. on the far left is applied. clyde waddled from the heat on emerging markets strategist foreign exchange strategist. can i start with you? do they talk about the report. obviously huge ramifications in this internationalization. one of the arguments you make is the ramifications go well beyond treasury in central banking. perhaps you could spend a couple minutes outlining a thing in the global u.s. economy and china's economy. >> answer that and also thanks to the council for being here into my co-author on trade in the front row. i think one of the key points of both the report as well a

china. >> reporter: what's the worst-case scenario. >> the worst-case scenario is that china does not act with patience with regard to those territorial disputes in the south china sea. am some inadvertent incident, ships banging one another, aircraft hitting one another, all of which have happened in the region. >> reporter: so when we see these reports of chinese jets buzzing american aircraft, we should be very concerned. >> i am personally very concerned. because it doesn't take much, it doesn't take much human error to turn that excess of emotion, all right, into an international incident. >> reporter: what's the best case in. >> we're talking about an increased american presence in the island chain that surrounds china. what that is from my point of view is making it more difficult for anyone to do something stupid in three, five, or ten years, in trying to convince themselves that a military option is actually a useful thing. >> reporter: is america paying enough attention to china? >> the single most important issue we have is the sign of an american relationship. day to day i

that's on the plus side for china. on the minus side for china it is very hard to be attractive if you have territorial disputes with your neighbors. and china has territorial disputes with most of its neighbors. so in an era of nationalism, aaib but s from the loses from its assertion over territories which are claimed as sovereign territories of its neighbors. rishaad: judging on that point, we've got him heading there, too, heading to china announcing his separation from the united states economically speaking and other ways, too. and pivoting if you will toward china and toward russia. what's he up to? professor nye: well, we'll have to see. some people have said he is the philippines' version of donald trump. he often says things that are fairly outrageous. but we don't know where it's going to turn out in the end. i think the -- it's too soon to judge. if you look at public opinion polls, the united states remains very popular in the philippines. and it wouldn't be too surprising if what he is trying to do is pla

next year, what would you like to see from china? >> you have to give the authorities a lot of credit. a number of reforms they have ,nnounced has shown progress but it really comes down to the execution, the implementation, so as you rightly point out, the first sign of trouble, they tend to take a backward step and maintain short-term stability rather than focus on the longer-term issues. we would like to see greater execution of the reform policies they have in place, but also would like to see a strengthening of the fundamentals of the financial sector rather than the glossing over that we have in sing in recent years. yeah, certainly, great to have you on with us with those insights. next, we are taking a look at snapchat, seeking to raise $4 billion. this is bloomberg. ♪ haidi: some breaking news from samsung, shareholders have approved a new member to the board. we will get you more details of that becomes available. they are aiming to raise $4 billion and its planned share sale for snapchat. su keenan has more. su: the snap

china mobile build a nationwide network for 4g, luring subscribers away, and china unicom had to scramble and build out its 4g network, so it is spending heavily to keep up and save subscribers. yahoo! noted that it is still adding mobile subscribers. will that eventually pay off? >> yes, it will. this is the thing about 4g. it is a fast enough technology that users are encouraged to rack up the data points. they are streaming video, music on their phones. to telcos to add to revenues, so once that network is health, you get more heavy use subscribers on your network, then the average revenue per user can start rising, so these investments will pay off for them. roller factor is they their tower assets into a separate company that they share ownership of all three big providers did that in china. that company is generating revenue, and some would flow the feeswners, but they have to pay to that tower company are hurting earnings, so those investments will pay off eventually, but at the time it is hurting their profit. haidi: thank you so much for that. rishaad: it doesn't seem for an inve

china data, could get interesting. we had some fed speak when janet yellen talk about letting the economy get hot. all of that on the docket. yvonne: also and ecb meeting this week. the last and third presidential debate. momentum signals looking bearish for stocks. key we-dollar bearish now. aussie stocks on the dull line -- decline right now. dollar bearish now. down, but a soft open here. this is on some dollar strength. thatll continue to watch one. world's largest emerging markets have pledged to boost trade as china's president warns the global economy remains fragile. presented a front on global terrorism and infrastructure. what have we heard? minister the prime saying he wants to see trade the nations doubled to $500 billion by 2020. the pictures surrounding this summit is one of political and economic malaise. russia is burdened by sanctions and a week oil price, and of course china where we saw exports fall 10%, the slowdown continuing. chinese president xi jinping gave a bleak outlook for the global economy

on the campaign trail. >> china is a currency manipulator. >> one of the biggest problems with china is the illegal dumping of steel and aluminum into our markets. >> 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 has better ideas and logic. >> 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. from the broadcast center in new york city, i'm elaine quijano. >>> welcome to the "overnight news.

china, we've been talking about it this morning with you, plenum, critical time for china. , looking toes spread its wings a bit, so will xi jinping bring all those who have not been enthusiastic about following the one line, and maybe this is it. machiavellian.et valeant because of the slowing growth, there has been talk about putting reform on the back corner. pickgoing to be able to five out of the seven standing committee members, including himself. consolidate his power further, then push his agenda further. >> that's right, maybe even extending age limits, term limits, which is a possibility, so there is a lot happening within that. the question is what is he really looking to do with it? is he looking to pull power into himself to push for reform agenda, or is there something more than that, maybe he wants to be leader for life, which is not been the traditional thing in recent chinese politics? there the possibility it is becoming a cult of personality? they aree heard that trying to elevate him to a certain status, "great leader" status. >> that's right. there have been repo

china. >> what's the worst case scenario for >> worst case scenario china does not react with patience to territorial dispultdisputes. 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 railroad to turn that excess of emotion, all right, into an >> talking about an increased american presence in the island chain that, that surround china. what that is from my point of view, is making it more difficult for any one to do something stupid. in three, five, or ten years. in trying to convince themselves that a military option is actually a useful thing. >> is america paying enough attention to china? >> the single most important issue we have relationship. day by day doesn't look like the most urgent. it is the most important. >> here is where the candidates stand. hillary clinton vowed to curb china's military expansion, support u.s. allies pushing back against beijing's land grabs, and confront china about its unfair trade practices.

anna: pbi comes out of china. -- ppi comes out of china. increasing after the king announcer 2: death -- kin g's death. we understand they want to repurchase shares. think the buyback story has been a big driver in the u.s.. trade again, sticking to form. let's take a look at bond markets. the u.s. treasury markets hit a four-month high yesterday. that has begun to turn around on the back of this potential shift in terms of global deflation. miranda was with us this morning. yields government bond 1.76%. the 10 year benchmarks could be something to keep an eye on. anna: she did not think that pickup would be sustainable. she said things -- it could be short-lived. let's go to first world news. 's president saidnnouncer 2: there was an argument for delaying a rate increase. he said he is worried about potential policies that would have distorted effects. this depends on the outcome of the vote. he did support a rate hike in september. she says that she will publicly draft the sod it -- scottish independence referendum bill. the bill does not

haidi: china was the major doesn't limit when it comes to netflix. banned there -- rishaad: yeah, penetration there -- [laughter] haidi: baidu carving up the streaming market there. thesed: these companies, chinese complete, how much of the spending when it is coming to streaming? reporter: baidu announced they will spend more than 10 billion yuan next to her. that's a huge amount of money for a company struggling to make profits. it is all very strategically important for them to the extent that tencent's president says themit's unhealthy for already. this competition is unsustainable basically. haidi: why is this? ulu: it's all about the economy. alibaba -- if you look at the numbers -- a attracted all of the viewers. then online advertisements, gaming, all of these sectors they can go into the of the iseo platform, the traffic just very strategically important for all of them. some people have been categorizing this competition is unhealthy. why? what are they doing about it if it is unhealthy? if you look at the per episode cost for these compani

what china has done is acted fast. it realized that a long-term strategy it has in place needs to be addressed to some extent to ensure they don't give way to short-term momentum. overall credit availability is increasing that is reflected in the consumption numbers, manufacturing pmi's are improving as well. china has been the biggest consumer of oil in the last two quarters are so. estimate, oil demand has picked up this year. overall, it is buoyant, good, it shows that the policy or the decision-making in china have immediate impact on the economy and the effect is working. so very pleased. tracy: that may be true, but this still lags behind the credit growth, especially in the markets -- in the mortgage sector, the property sector. that has fueled the growth and fueled policymakers to say, hang on, this is way too hot, we need to pair back and address the debt issue here. if they pull back on stimulus, even if we did see 6.7% growth in the third quarter, will we see that moving forward? guest: you are absolutely ri

>> china has a number of problems. they are trying to control the domestic economy through the use of credit. if you're trying to do that, that gives you less room to maneuver on the currency. you can't do both realistically at the same time. china has been saying for some time that we are not just about the dollar. we export to europe, asia. we are more than the dollar. haidi: the basket. >> exactly. we don't know what the basket it is that the chinese are falling because it is a secret, but nevertheless there is an issue that when you get a stronger dollar against the euro, china has to manage that balance of currencies they are trading against. -- theone of your posts market is getting it wrong when it comes to populism. what are the lessons learned from the brexit vote as we go into november 8? big problem i think for financial markets because what we are finding now is globally over the last few years it has become very apparent that there is a group in society that has been left behind by economic growth over the

traders became concerned over china's economy. that's after the central bank said its daily reference rate for the u.yuan in six years. solid u.s. retail sales and producer price data also supported the dollar. the weaker yen was good news for some japanese exporters in particular electronics firms. gaining more than 2%. on the flip side, tokyo electric power tumbled nearly 8%. that's after the governors election in niigata prefecture was won by a candidate with a cautious stance on the nuclear plant restart. analysts say investors may be cautious this week because of events, including china's gdp data due out on wewednesday. i'm phobe am rosa. >>> the shanghai composite declined by .7, finishing at 3,041. the weaker yuan dampened sentiment. aussie dollar lowest in more than three weeks, and that came after the chinese authorities detained some employees of australia's biggest casino operator on suspicion of gambling crimes. the news weighed on casino operators listed in hong kong, hang se ha hang seng index up. here's a look at o

two issues to deal with, but china -- good china's january trump everything? it could come back on the risk issue.exports live . what we put together, anna, capital flight from china. #4242. 2015, that has abated somewhat. but the drop in the yuan the question we must ask, ourselves, this is portrayed data. six-year lows. the timing all adds up to a rather heady cocktail for the last three trading months of the year. anna: concern about chinese trade, global trade really moving around the markets today.next week we get gdp number from china. focus on that, didn't really take a 6.7% for third quarter in a row? some people pointing to the weakness in the chinese export to the u.k., and europe during the brexit conclusion. but you can find those all over the markets if you really search for them. let's have a look at the risk radar and bring you up to date come a asian equities under pressure. hong kong is a weak spot. concern about the trade. u.s. futures looking weak. and the minutes from the federal reserve reinforcing expectations we would see a rate hike in

group of china's overseas land. haveials in gene on city been looking into a legal property sales. the ministry says they are fabricated and spread misleading information, disrupting market order. the overseas land pr section did not answer calls or e-mails when bloomberg tried to contact them outside wrigley business hours. deutsche bank is preparing to cut about 1000 jobs in germany. the losses will be part of the cost cuts announced last year. the lender is set to reach an agreement with labor representatives this week. the job cuts will mostly affect --kup -- back-office stack back-office staff, such as i.t. services. it is illuminating about 3000 full-time positions, including two point 5000 and it's commercials business. there are concerns about mounting legal costs, which touched a record low last month after the u.s. justice department asked for $14 billion to settle an investigation into mortgage backed securities, which is more than twice what you just hasn't aside from that more than twice what deutsche b

but living in china and writing about china. so i asked the speakers. i actually encouraged the speakers to the disagree with each other. that's what makes the panel fun. let's see if you all follow through on that. what we are going to do in the next half hour, we are going to look at the general picture and risks, investment potential. and of course although this is about klein that/latin america, we will look at the u.s. implications of renminbi as it relates to latin america. barbara, you have done a lot of work on fdi latin america/china. do you see rmb reshaping the investment picture across the region in the short to the medium term? this is a tough question. are the implications really still so much unknown that it won't be clear for years to come on what the real impact is? >> thanks for such a narrow and specific question, jason. i appreciate that. you have given me -- well, we really don't know. >> i'm not going to let you get away with that. >> i probably should stipulate that although on my bioi represent the world bank. i'm probably here m

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. all notel applies to 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. 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 have lots of choices

rishaad: what about china? are seeing signs of stabilization, but people are very concerned and remain more concerned about the level of debt. guest: it is a huge challenge. the amount of debt. and it is mainly corporate debt. it is large. however, i think people also -- a lot ofk that people are talking about, ok, what if they fail? what is it mean for growth in default rates? but what if they succeed, and it is it -- and is it plausible? there are scenarios -- a lotd: absolutely, and of the mergers have been doom and gloom, haven't they? beginningolutely, the of the year, how bearish people were on emerging markets because of that. look, it's not going to be clear-cut area let's remember -- it's not going to be clear-cut. has a household sector which is relatively unlettered, and a central government which has little debt. rishaad: thank you so much for joining us this morning. let's take a look at sort of the life stories we are covering. fujitsu searching in the tokyo session. it may be merging its pc busin

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

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 give both jim and kyle to come 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 you say that jack ma says consumers are still spending money. where is the disconnect? bank: -- mike: not understanding that when the economy slows, not all of the economy is slowing. parts of the economy in china are slowing, particularly the older industrial and manufacturing. the services and consumption components of the economy are growing rapidly. our business grew at almost 60% last quarter year on year, and that is because more people were consuming. that chinese consumer population on our plat

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 is doing better than expected. you see rebounds in brazil and russia, and the gulf is definitely lagging behind. that said, there are always opportunities. this is ideal for mergers in my mind. it is not a severe stress scenario, it is just a slowdown. yousef: do you have a specific merger at the top of your list? a specific target. i think umb will be next for murder. -- merger. .t is trading half the price it is extremely attractive to constantly. could be, let's wait two years. it would take a year to do it, a year to integrated. two yearsly, it is that you can setback, but it would probably be preemptive the cap this company would be a powerhouse. it would be the biggest in the region with very low funding cost and could eat with everybody. angie: i want to ask you about aramco. this is a very closely watched ipo here. just what is the impact going to be for the region? guest: the impact is quite material. it makes a lot of differences for the indexes. seeou include aramco, you it will be more significant going

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

. >> china's exports plunged last month. trey fell by $10 billion. >> and samsung is said to be phone inng a new february as it tries to recover from the note 7 debacle. across theclock a.m. emirates, 7:00 a.m. in istanbul. >> welcome to bloomberg markets: middle east. start, it really was all about the fed, but we have moved on to china after exports and imports figures came the market,plined then we saw brett across the screen. this conversation we are having globally is about the fed. how did it impact what you are seeing? angie, it is about the fed minutes. when he what happened, because it pushed the bloomberg dollar index to a seven-month high. i have prepared a chart to show you how the change in sentiment has been reflected in u.s. 10 year treasuries. you are looking at that fall in september now back to the highest level in four months, from below we saw earlier of 1.54%. those minutes showing that there are few signs of emerging inflationary pressure. also showing there is concern on continuing delay and it might c