or to approach china or stop china from advancing into central asia. from my research, i have not seen too much russian opposition to undermine the chinese effort in the central asia in terms of their infrastructure project. another component on this, is that china actually defined a policy as one of the angles of the maritime, that goes to europe, and i would say the most successful projects between china and russia ever. it has been built and has been producing starting from 2017. but when the chinese wanted to invest in the better port, the russians declined the chinese financing because of the strategic location of the port. what we also see is russia trying almost every single way to invite china to invest in this other area because russia needs to up there infrastructure on the northern ford and doesn't have their infrastructure. the chinese have been very reluctant and what the chinese see is that russia is portraying a concept of dividends in the future and without a willingness to make any compromise to the chinese and on the commercial possib

-- because you have to look at china's in global economy has increased massively china is bordering on at least 20% weight in global economy exports global growth still today most of the growth that we see globally is generated by china inclusion into world economy that is reflected by putting china a lot more into portfolios you can't just have a big part of the global economy be chinese investors haves exposure to that growth in portfolio, china gets inclusions into -- equity indices bond indices like bloomberg does our estimate is over next quarters there will be 250 billion, of capital inflows into china. just by 4% tolerate china will get so far rates absolutely ray china debt not a problem domestic policies redistribution of debtor can be reengineered international investors if they invest in china death or equity want different standards accounting they want very clear, solid products vested so what is happening is that will raise in bars for equity markets in china because you need to bring international investors in, and also need to allow because you just don't want a big

they are not the interest of china. -- pinterest of china. they are completely different ideas that chinese entrepreneurs came up with on their own and they make money. there is a parallel universe of apps largely different from the american apps. interviewer: you mentioned a company called baidu. what is it? kai-fu: it is the leading chinese search company in china. interviewer: how is it different from search engines in the states? baidu has a similar technology to google. looks similar. the founder independently came up with the all the rhythms -- algorithms. they were similar to google. you talk about the real artificial intelligence crisis. what is it? kai-fu: artificial intelligence will create a of wealth and value. -- a lot of weatlh and value. superintelligent. if you think about these super orrow capable a.i. software robots, they will be able to replace many tasks we do in our jobs and many jobs that exist. many jobs are just repetitious. telesales, telemarketing, customer service, dishwashing. those jobs will be replaced by artifi

not just by china. the indonesians want things that will not fly with china. the vietnamese were so cynical about the process. they staple their own code of conduct to the back. about, maybeked 50% of the easiest issues. there haven't been discussions about the hard-core of the solvency problem. --the code in contact conduct apply? how you operationalize cooperation on things like fisheries? will there be disputes over the mechanism? last 10% of any negotiation is the toughest, they still have 40% to go. that will be pushing it this year don't give me a lot of faith. thailand is now the chair. they will be distracted by delayed elections. they definitely get out of this thing without being tarred and feathered. they will not be proactive on anything. the philippines is the coordinator. they have been relatively ineffective in reading china's willingness to negotiate. they told us there was going to be a code of conduct process and 2017. they said, maybe we will get a deal last year. so far, none of that has been true. manila israel -- is way ahead of china. th

tariffs on china. it's almost considering further diversification to vietnam and india to mitigate rising costs in china. the overseer says it's unlikely to ramp up production in those countries this year, as it will take several months to build new facilities. coming up next, opec cuts and political turmoil in venezuela. this complicates things. ♪ su: you are watching daybreak asia. i am su keenan. people are still missing in the latest disaster to hit brazil's mining industry. , after a similar incident three years ago. rising water levels at another dam in the area prompted further evacuations. their stocks fell in new york while bonds due in 2022 fell to the lowest in 2017. the trade war is becoming more complicated with the world trade organization opening an investigation into president trump's tariffs on chinese goods. it is asking whether the duties breach of the requirement wto members must give equal numbers as beijing is asserting. -- embers as additional duties are due in march. europe wi

not the interest of china. they are completely different ideas that the chinese entrepreneurs came up on their own and gained traction and make money. so that's what i say there is a parallel universe of apps that are just largely different from the american apps. >> host: kai-fu lee, you mention in your book a company called by do. what is that? >> guest: the leading chinese search company in china. >> host: and how is it different from our search engines here in the states? >> guest: baidu had a very similar technology to google. its initial interface comes looked very similar to google. to be fair, the founder of baidu, robin lee, independently came up with the algorithms which were similar to google but when you go back to the academic application favorably about at the same time. >> host: you talk in your book about what you call the real ai crisis. what is that? >> guest: well, so ai will create a lot of wealth and value. ai will be essentially very powerful, narrow engine that's based on a large amount o

is one of of china and india. dominating the world economy the developed world economy as they catch up through time and there's also also going to be lots and lots of people in the middle east and in africa sub-saharan africa if you look at the projections are just amazing we're going to be adding two and a half china's in terms of total world population in the through the end of the century we have about seventeen twenty percent of world g.d.p. right now we're heading to about five percent of world g.d.p. . so we cannot dominate the world we're going to be a small player three time us more and more player china will be much bigger india will be much bigger in terms of their share of the world's economy so. we can call all the shots and to you know to start picking fights right now with we're going to be in an increasingly small kind of vulnerable position is not a clever idea but we're going to get back to this idea of by the end of this century sub-saharan africa and china and india being delivering economies t

china is in focus. apple has become the latest and biggest corporate casualty of the pullback by the chinese consumer, and the company says the trade war hasn't helped. is this just a china problem? will the rest of tech get dragged down with it? the apple ceo now faces his biggest test since taking over. first, the shocking letter from tim cook to shareholders. apple cutting its revenue outlook for the first time in two decades, citing weaker demand in china amid the ongoing trade war with the united states. apple dropped a big can't that iphone sales -- big hint that iphone sales were dropping in november. here is a take of some of what we've seen on bloomberg television. >> they will still hit an all-time high in earnings-per-share this quarter, so profits per share will still be better, even though revenue will decline for the first time in a long time and, unexpectedly, they have hit a real speedbump in china and with the iphone. >> people who have been watching apple closely for a long time have k

you know they didn't feel that we have to say in china. i wanted to go and see the world for myself and for me i think i wanted not to have to behave. according to others you know are strict guidelines and i believe i would be a lot freer if i went to the west. hall said goodbye to his family at a train station in beijing goodrem alba would leave soon after. their slice of baked fun my father said to me before i left there are so many beggars and criminals in the west. of the place if things don't work out for you there you can always come back to us. lots of it. indeed chinese newspapers claimed that capitalism in europe was on the verge of collapse. goodrem was worried about that but she left her parents' home and was soon on her way to austria. she arrived in vienna in february nine hundred seventy two. city officials gave her a warm welcome and presented her with a camera. cool croaks time in china had also come to an end. across the border from. by train to hong kong. the world was certainly exciting place so as it was i spent ten day

>> the xr is focused on china. focus inly was there china, xr. if you look at the pricing of africane, combined, 8% -- apple specific, 20% other. but a lot is the mispriced phone. this is a huge iphone cycle, given 20% of all overall iphone upgrades are in china. that is the key. that is why in this call coming out, is going to be key to how this turns around as well as the pricing strategy, how tim cook and apple are looking at it. emily: we know there are competing smart phone makers who all make cheaper smartphones, much cheaper than the iphone. but what do you attribute this to? >> just to address the last comment. the entire sector in china fell by the same rate apple did. we also had samsung recording huge losses in market share. we have some chinese players rising in market share, but the overall market is suffering, not just apple. emily: why are some rising and apple not? >> apple does have the premium segment. the premium, you would imagine, would be suffering more, but the overall market fell. i think apple is more or less in the middl

and china for causing some customers to avoid buying u.s. products but analysts say another reason is apple's pricing strategy while prices are dropping on many smartphones from other companies apple has continued to raise its prices the most expensive costing more than sixteen hundred euros but fewer customers are willing to pay such costs for their device. it appears tim cook's strategy of looking to charge a high price to achieve high profits despite lower i phone sales has failed. right the development could find the end of a success story that began twelve years ago. to talk more about a rising or maybe a sputtering china i'm joined now by doug bandow he's a senior fellow at the cato institute in washington he just penned an op ed piece entitled u.s. sign a relationship forty how to deal with china while avoiding war mr bennett was good to have you on the show let me just ask you about what you know it says they say that they've got a china problem and that is made worse by the trade tariff dispute is it possible to separate the the eco

and how you know gas welcome to the program as china and the u.s. resume trade talks both powers are using very positive rhetoric china says it's willing to work together with the u.s. to resolve the months long dispute between the two countries the foreign ministry expressed optimism as talks resumed in beijing and the meeting is the first since u.s. president donald trump and his chinese counterpart she agreed to a ninety day truce in their trade war last month. the u.s. and chinese representatives will need one key quality staying power these trade negotiations are set to be long and difficult nonetheless there's real hope that the trade conflict may finally be brought to an end china has already opted to ease tensions by lifting its ban on imports of u.s. soybeans and suspending extra tariffs on american cars business leaders are expressing cautious optimism pursuing an acceleration of many of the policies that china is committed to implementing to fall within this ninety day negotiating period indicating the china is making signals to show that

-china trade war as being an issue for china. it is is not just u.s. firms feeling the pressure. you have a look at the slowdown in sales in samsung, china, looking at traditional names inside china, they have seen slowdowns in discretionary, and that is what apple is, a uy.cretionary b i agree with you there. exposed firms that are either very small or up to a fair and amount to the chinese or asian story will find a downgrade. that is what is happening is you will see a downgrade momentum. ramy: what does this do for the fed, other central banks, in terms of fighting -- in terms of tightening? some are saying a rate cut by 2020. >> i think what is likely to happen, looking at the movement in 2019, what i am starting to really look at, pricing in is a pause. march was always a month that was going to happen. listening to the language that happened at the end of december, what came out of jay powell is they have got to watch. the economy the chance to show they have had a massive movement where you can argue towards are touching the neutral range. let's see how we perform, see wh

-china trade talks. paymover in sydney, after climbed 9% after posting underlying sales of over 2.2 billion australian dollars in from $918half, up million, making december the largest ever month on record for the company. let's check in on currency, the extending -- the kiwi the losing streak to his fourth straight day on the yen is holding at a two-week low and the pound is steady after rising. palladium, in on 1400 for the first time ever, the rally going along. people run is not teetering out yet and they expect to be in a supply deficit for an eighth straight year. >> in hong kong, u.s. markets, the session was rising in a late day rally with bonds and bank earnings taking a different turn. stanleye get to morgan which set the tone at the start of the session, it was this rumor that sent the rally going late in the session. >> you can color rumor in the sense that -- call it rumor any supposedlyit is -- supporting the easing of tariffs , i wonder if i make a deal, how would be marker react? s&p 500

and china, koreans think that they can balance. it's china and japan, it's china. that's the kind of -- autumnal weather this analysis is correct or not. but that's the kind of thing rising in japan. i'm going overtime a bit. so the state of the alliance is a okay. maybe among the policy people, even better during the obama administration. that's the exception. no one thinks that way around the world. but japan does. d-lines is in a better state than during in the obama administration. but, you know, this alliance doesn't exist in a vacuum. it only functions when u.s. is fully committed to the region. and went u.s. has an east asia policy. which you don't quite see. so yes, the alliance is okay. but it doesn't exist in a vacuum. so not extremely, you know, comfortable or optimistic about, you know, how can you know, alliance would kick in when it needs to function, to deal with the situation. you know, your election is coming up. japan is known to be the 51st, you know, state. it may be the most reddest state among the 51 states. i'm joking a bit. but you know, thi

the persecution of muslims in china more than a million in detention vilified as radicals and extremists. spreading across the country. by british biology welcome to news. we begin this program's first broadcast with a court judgment that our rights group has called a mockery of the rule of law and it's this four and a half years in prison the chinese lawyer. a sentence for what beijing called subversion of state power without defining what is actual crimes sentenced to a man who's been held in prison for more than three and a half years sentenced to a man not allowed to meet his wife and child in all of that time. is one of more than two hundred lawyers and activists who were detained in twenty fifteen in a crackdown by the chinese government it's a crackdown that's changed people's lives for ever. happier times before he was torn apart before. his son his little longer without a father. for months his wife. did not even know he was alive. authorities kept long's case shrouded in secrecy once they admitted he'd been detained lee was denied any access here she is last december trying to

it's because of china. it's to shape's china's behavior. do you think -- how do you think this is doing in beijing? do you think it's affecting decision-making? >> i mean, it's -- they are going to -- it looks like it's focused on them. they are not taking a sweat about it. and i think it's because they feel that there are internal complications and so on and they are trying to cement that where they can. >> one more prediction i would at the this. we didn't have this as a category. it would fit within, b, infrastructure development. i think you will see increasing cooperation on telecom infrastructure and digital. it's already happening pretty intensely with u.s., japan, and australia. i think india is going to start getting into that game as china's digital -- built an road creates dependencies and stories come out about, you know, how beijing is using other companies to enhance its information gathering and influence. and i think that's good be a feature this year. and maybe a feature in quad meetings as well. i think we will be doing th

companies to turn over their intellectual property to do business in china what can china do in this regard. actually china is willing to do as much as they can actually china's leadership he promised last year in the public speech that china will try very hard to protect ip and do it as soon as possible and just from the beginning of this year china launched the ip protection court but i think that is the question is that they don't know what the u.s. really wants no matter how much they do they worry that the u.s. just uses the cues to stop the chinese economy and to stop the development of chinese technology. is interesting and so i have to ask you also we've been talking a lot about huawei u.s. secretary u.s. treasury secretary steven emotion saying recently that the issue of way can be separated from the trade issue how does china see this. well china definitely sees the very differently because. people talk about the timing because you know like most ones also ross is doing china's leaders and donald trump's meeting in g twenty and right now they have the announcement on the do

negotiate his talk trade in china can the top two economies find a white out of a trade war. high tech household helpers are all the rage as we take a sneak peek at the consumer electronics show in las vegas. and more than a week dram of concern makers of scotch whisky break peter day global business. i've been fizzling let's do business this is the disputed so us president donald trump first announced high a tariff on chinese steel and before adding many other products creating an all out trade war china is america's biggest trading partner and the experts exports over five hundred billion dollars worth of goods to the u.s. so far washington has threatened to slap tariffs on chinese goods worth around two hundred fifty billion dollars china retaliating or be it to a smaller scale because the u.s. exports fuel goods to the country it said it could impose extra duties on goods worth one hundred ten billion dollars the two countries declared a ninety day ceasefire last month the pressure is on through resolve the dispute before that true six spies and of much if you think that

and two, china. this is about the ecosystem, the types of users, demographics, young people, how you monetize. those are the things that characterize the chinese apps. i'm not projecting there will be two types of internet rules and regulations. i'm talking about the types of apps. that and user habits and preferences is what will prevent one group from entering the other. if i had to speculate, i would guess five years from now, the -- facebook, apps amazon, google, and the like -- will continue to dominate english-speaking countries and chineseand i think the types of apps -- tencent, alibaba, and a number of newcomers -- will be dominant in others will start to and asia.t in china when i say they stick to make inroads, i mean partnering with .ocal companies i think this is the likely split in the future in terms of the commercial and technical domination of essentially two of the world. could two different ecosystems being developed lead to military tensions? i don't think so and i hope not becaus

and china. he talked about the international system being under assault from populism and protectionism, saying that countries were increasingly looking inward and trade barriers were rising. it lookedok a swipe, like, at the america first policies of president trump, saying that they did not agree with large countries bulling -- bullying week countries. toalso said there was a need make sure global growth became more equitable. that the pie grew and more people benefited from that. -- he also pushed back against the idea that china has been a abuser of intellectual property. he talked about china's innovations over the last two years have an due to the hard work and entrepreneurial spirit of the chinese people. that nothing was given to them. that is central to these talks around u.s.-china trade. this is a tailored speech to the international audience. you have to wonder whether or not patience is starting to wear thin with some of this messaging, given that many businesses here, western busin

cheryl: good for china and good for the u.s.? the white house is reassuring investors the china trade talks are on track. lauren: the dow dropped 300 points yesterday on concerns about a trade deal, plus slowing global growth. futures staging a comeback right now, dow up 76, nasdaq up 22. cheryl: the imf report talking about weakness in europe and european stocks opened lower. now the cac in france actually a slight rebound, the ftse and the dax in the red. lauren: a mixed picture in asia but fractional moves across the board. cheryl: day 33 of the partial p shutdown. there are now

government that china can create -- huawei can create a backdoor into china. this represents a potential security threat for your country, your sensitive trade secrets, possibly your national security. that is a trade-off that a country has to make. do i want this equipment or do i want the potential for backdoor? where we see the u.s. needing to be more forthcoming possibly is show more why huawei is a threat. yes, they are stealing ip allegedly. yes, they are violating u.s. trade sanctions, but are they a real threat to national security in terms of creating a backdoor for china? are they saying to china's government, come in. listen to these conversations between the u.s. and the allies. emily: still no evidence of that. i want to tie this back to apple earnings because huawei is a big competitor to apple in china. they are not seeing therir share fall like apple. they are in perhaps an advantageous position because apple has to outsource chips, whereas huawei makes its own. that is another part of huawei's business. how is their business going to fare amid

. —— or leader in china. joining me is linda yueh, economist and author of the great economists. so there is a real hope that we will see some progress this week, what do you think? i think we will see some progress. this set of talks is not led by the top players, the top trade officials in the us and china, so what they are trying to do is lay the groundwork over the next couple of days. can they work through some chinese proposals about increasing market access for american exports? because that is one way to reduce the trade deficit, and they are going to give them further guarantees about the market opening and intellectual property. but i think the real sticking point here is all of those things, in world trade, it whether or not they will bea trade, it whether or not they will be a credible monitoring mechanism. what the americans want is notjust what they call promises on paper. they want to see compliance. that is really challenging to do in terms of any country, much less china, a country not known

-china trade war. rishaad: china has been using the event to mount a vigorous defense of globalization and attack protectionism. also a thinly veiled rebuke of the policies of a certain gentleman in the white house. david: he was quite direct to tell us what the direct -- the comments were directed for and at. how much buy-in is the vice president in china likely to get from his speech? a harderably this is than whenresident xi he the stand in 2018 and the delegates than when he the stand in 2018 and the delegates lacked what the president -- because they were so concerned about what would happen with the trump administration. things have changed are concerns about the reform process. there are arguments about strategies like the belt and road initiative, the industrial policy and the state-owned enterprises as well. it is a more difficult task for the vice premier when he took to the stage but he tried to position china playing a central role in upholding the international system, thing he was concern

fido has been interested in china i did in east germany i'd seen these wonderful magazines about china and i found it absolutely fascinating are going to have to me just to pack we don't go monday in and then we got there and saw that the old spirit was gone for both people were wasting their energy on completely pointless campaigns. for well maybe not completely pointless to do much was eliminating his political opponents but that was about it and he did it at the expense of ordinary citizens and that hurt for. us to be. about the because also witnessed the beginning of a new chapter in chinese foreign policy now decided to improve relations with the united states president richard nixon arrived in beijing in february nine hundred seventy two. astrology and that was a major development and at about the same time china was improving its relations with west germany ma was putting an end to diplomatic isolation and had a pickup for. mao was seventy eight years old when he met with nixon the meeting was a first step of the increasingly unwilling to open up china. it also brought new hope

and china. at the same time, i think sentiment in china has been bynificantly weighed down the trade tensions as well. i think is opportunities in northeast asia, hong kong, the onshorea, but market in china, even though the actual exports may not be that significant, but certainly would be very constructive to market sentiment. >> please stick with us. more from him coming up. a look ahead at gold ending 2018 on a strong note, but will it continue to shine this year? >> next, president trump suggests he wants a deal to end the partial government shutdown. we have the latest from washington. the standoff with democrats continues. >> president trump has invited top congressional leaders from both parties to a meeting on board of security, suggesting he wants to make a deal to end the government shutdown. >> is this a sign of a potential deal to reopen government departments? they've been shut now for 11 days. >> the first time you have really seen since the shutdown started on december 22 of the

-china trade talks. let's check in on quick movers when it comes to equities across the region. we are seeing sony on the rise in tokyo as the new york times plans note sony ceo to exit any of the entertainment businesses and will make them a priority. we are seeing takeda far making jumping the most since october .008 70 million new shares for its acquisition of shire. we are seeing moves in samsung electronics, adding 2.5%, climbing the most since december 3 as investors digested the tie up with apple to offer itunes on samsung tv's. and since i has cut its smart from production target -- has cut its smartphone production target. i want to end on the aussie hospital operator, sliding in sydney after rejecting a takeover offer from its largest shareholder. but is this group, saying it was opportunistic. kamaruddin.e japan inc. went on a record $191 million buying spree last year, and many are just getting started. japanese companies are sitting night -- $890 -- million. the asia responder who joins us i

in china. lisa: indeed. although it's interesting to note that apple reiterates its confidence about its presence in china saying that it actually sees it has a bright future, as products are getting adopted there, adamented there. so china kind of toe a narrow line here, saying we're going to do well there. but their economy is swelling. joe: i think the significance of that is they're say it's a significantly cal issue. there could be a deeper question of whether there's a brand backlash. that's something that american companies are on alert for. whether due to the trade war, you get some sort of anti-apple or anti-nike or anti-mcdonald's sort of brand backlash. i think the implication of their optimism in china over the long term is what they're saying is cyclical and not something structurally where their brand is declining in the country. lisa: if you're joining us now, reiterating the breaking news that apple just released. an unusual letter from tim cook, the c.e.o., saying that they are

/china. so it is an adjustment, putting a bit of a floor on the japan/china relationship as they do every ten-year anniversary of the 1978 treaty but i don't think it is a hedge or tilt away from the u.s., at least under the current government. we are going to open up now to questions from the audience. did you want to add something? okay. we will put that up. we will have to be quick. you will own the mike. thet do the next one, the last question that we have, which is about southeast asia. and which way southeast asia is going to find itself moving for relations. don't forget to turn your clicker on. is "e" the u.n.? good luck that. >> at a time when china is clearly still on the rise, and the united states is to some degree in retreat regionally, and globally, one might expect that china would be the answer and certainly a lot of people in the audience think so. i really think this year is going to, we're not going to see any major change between overall alignments. because china is sort o

-china relationship. the question of whether we can get a truce in this trade war -- i think it's really whether they can separate out some of the trade aspects of the relationship from the technology and intellectual property from the structural side, putting them on two different tracks. i'mhey remained together, not sure that you can get a resolution between beijing and washington at this point in time. if you can separate them out to some degree, than i think there's a deal to be made. i think trump actually does want to do a deal. >> ok. let's see what this week's headlines bring to us. david riley. theresap on the show, may steps up her battle to dissuade the british parliament to back her deal, even leaving the option of a second referendum. >> when you are traveling to work, tune in to bloomberg radio, live on your mobile device or digital radio in the london area. this is bloomberg. ♪ ♪ daybreak: "bloomberg europe." i'm nejra cehic in london. >> i manus cranny in dubai. let's get you to the m

a whole, because china is very different in many different parts of china. ,o from a big city standpoint inflation is still dead, but -- is still there, but slowing down. it is not going into zero territory. it is still normal. i think the government is watching this very closely. as you can see, they are putting a lot of incentives on companies , not a lotir staff of unemployment, because this will lead to social unrest. rishaad: we have very little time. very quickly come up we have uber-zation of the world. how is that changing hiring utterance for you? >> the hiring pattern is changing. the hiring pattern has been changing for the past five to 10 years. i think the change is also theen by the demographics, economy. younger people have a different outlook when it comes to a career for life. we just have to stay on top of the game. david: thank you for coming on the program. up, can last year's worst-performing higher tech ipo be the darling of 2019? ceo jason willis is sharing his vision with us. this is bloomberg. ♪ rishaad: it has been a brutal 12 mon

shanghai is the least representative city in china because of the sort of sense of self within china. there is a real distinct cultural identity in china. there is a sense that as china modernises they do not need to copy everything from the west. i think the shanghai fallacy is a bit of a bedtime story we tell ourselves that as this young generation grows older, they are just going to want to be exactly like western millennials with different haircuts. that is not the case. they have a different set of needs, desires, hopes and dreams and they want their products, the stuff they buy to reflect that. do you think the outside world actually understands what's about to hit them? not really. is there an understanding of the new culture that is emerging? not really. i think it's one of the biggest blindspots that we have in the world, especially when you consider it the enormous economic and political consequence of this young generation in china. to find out more about what millennials think about these predictions i've had the cheek to invite myself to the flat of 20—something social

is this because of china? is it because of the trade war is it because the global market is slowing down? we know worldwide smartphone buyers are not upgrading as thekly and we know china is third-largest source of revenue for apple and apple tapped into a rising middle-class, a decrease in consumer confidence, fewer chinese consumers are upgrading their phones as quickly. you have got local handset makers selling phones at less that you of the price can get an iphone. all of these things combine seem to be impacting the revenue forecast from apple. it is not a small decrease in the forecast. 5-9,000,000,000 dollars potentially. that is a lot of iphones. >> we're talking about a lot of others but what about categories, was there a silver lining among other products? question in the letter the tim cook wrote to shareholders, she said china accounted for the majority of the shortfall across iphones and ipads and max. merchandise of the they found in china are iphones. she did say other products like apple watch,

well from china's point of view it's willing to do as much as they can and actually china's leaders she promised at the end of last year publicly that china will actually make some changes to protect ip and it's rare for the top leaders to make such a public promises you know a from the beginning of this year actually china launched i p protection court so actually the chinese government's are willing to do something but for them they really worry about that the u.s. government is using it as its cues stop the chinese colonies and the development of chinese technology and so we still have to wait and see what happens today will be following everything of course our correspondents those are han there in taipei and paul christiane bret's in frankfurt thank you both. now the u.s. trade dispute of course goes beyond china as u.s. president donald trump has repeatedly pushed for new trade agreements with europe threatening tariffs against european carmakers in the absence of a deal the brussels has already stepped up its purchase of u.s. soybeans in response and now the e.u. says it can impo

-china trade talks. the yuan has faced little downward pressure recently, reflected in the up tick of foreign reserves. we are looking for samsung's preliminary results for the fourth quarter. the stock is down nearly 26% over the past 12 months as analysts have rushed to lower their earnings estimates. the consensus is for operating profit to come in at 12.4 billion dollars, which would be the least for the first quarter of 2017. -- since 2017. >> thank you. we're just getting news now, confirmation that the north korean leader visiting china from the 7th to the 10th. that would assume he's still there now. of january. that's according to the state news. of course beijing being a crucial element in the part of these talks to try and reach some sort of actual credible, i guess, denuclearization deal after that singapore summit between kim and trump. we are getting confirmation that he's still probably in china at the moment. that visit spanning january 7 to 10. it's interesting because we have this repor

and china. joining us to discuss in washington, our reporter who covers financial investigations and also our bloomberg tech who has been following huawei. this certainly marks an escalation. >> we found out from the u.s. officials in the ongoing process that this investigation has been going on for years. this covers quite a few areas. one area is this i.p. theft issue, allegations that they stole intellectual property from t-mobile. that photographs and even a piece of a robot that helps mimic smartphone use was stolen from t-mobile. that's part of it. another part of it is the arrest of c.f.o. and she was arrested several months ago and they are charging that she was conspiring to commit bank fraud. that they used a subsidiary called sky com to root deals with iran and breaking u.s. sanctions against iran. now there are 13 counts in the indictment in brooklyn and two affiliates face charges in washington state. a lot of information we're just hearing now. >> and the deadline for the united st

isabel hilton of the website, china dialogue. thomas kielinger, author and long time correspondent of die welt. and john fisher burns of the new york times. welcome to you all. agnes, i'm going to start with you. theresa may is famously resilient and the past week has been yet another stress test for her. the government sustained two defeats in the house of commons, and dead on delivery was the verdict on her withdrawal bill, even from many of her own mps. but nothing daunted, the prime minister has mounted a last ditch campaign to win over political enemies. should we call this determination and admire it or call it desperation and pity it? and what's mrs may's next move if, as widely expected, her bill is defeated in the house of commons on tuesday? agnes, isaid agnes, i said i was when to start with you and i am. is a determination we should admire or desperation we should pity? well, how to not be unrespectable to our british by prime minister. i'm going to try. this pantomime has been going on for 30 months. i think the view

-china trade issue. interestingly, steve carlisle came on the air and he said that when it came to the u.s.- china trade war, he was not concerned, in part, because they make most of their cars they sell in china, so they don't have to worry about those tariffs. let's go ahead and take a listen to a few more thoughts. steve: we would be hopeful that these trade issues find their way to the rearview mirror and all that uncertainty starts to subside, but even with that uncertainty, it is still an anonymous market with -- an enormous market with huge upside for cadillac. ramy: not only that, but when it comes to the u.s. consumer and the chinese consumer, there is a and of legacy that does drag little bit on cadillac. but when you look at china, when you think of the last generation , they did not really think about a cadillac to begin with, so it is a very fresh -- it is very fresh and attractive. >> ramy inocencio, think is a much for that. in a moment, markets await theresa may's brexit vote. our next gu

number 2 -- it's clear that china wants to dominate the south china sea, the east china sea and all the countries of asia, economically. >> and do you think it's limited to economic hegemony or do you think there's a military hegemony that they also seek? >> well, certainly, they're building ships and planes and missiles and the like a lot faster than anybody in the world. and, regrettably, a lot of that's financed by the american consumer at walmart. i think what's important here is that, from the american point of view, all we seek is peace and prosperity. and in order to do that, we have to defend our markets and our economy against the kind of unfair trade practices that many countries engage in, china, of course, being the outlier, because what's different between china and, say, japan and europe is that it's a non-market economy. it's a state-directed economy. >> your primary concern, it seems to me, has been, in the last 15 years, a concern about the hollowing out of the american economy to china, specifically the manufacturing base. >> correct. >> and i just wonder to what exten

china pmi is now below 50. the biggest risk cases, the recession or very slow growth case, but i don't see a recession in the u.s. i do see growth retreating back towards something like two. i don't see inflation retreating much from two. i think the fed will do at least one more rate hike, probably two . i think the u.s. 10-year bond yield is probably overly pessimistic in my view. you know, i think with trend growth and inflation around that two or just above, the fed is probably warranted, if you like dovish lee raising rates about 50 basis points. that's probably the central case scenario, but i do agree the biggest scenario one worries about in 2019, particularly given conditions outside the u.s., is that the world does tend to struggle on the growth front of little. haidi: and what does that mean for overall growth in china? we of course have the pboc, still with a little liquidity moving, but the fed could only hike perhaps once. china's economy certainly struggling very much, and as you alluded to earli

time, when i was first in china, and we're beginning to see that in the flexiblity china is beginning to show in its trade relations with the united states. when i was in the peking central prison, i remember that the total trade between china and the us was less than $1 billion in 1987. now, the us has a trade deficit with china, which if i'm not mistaken, is somewhere up to $400 billion. that is a real problem and this on so many other things, i would say, just because you dislike trump and there's much to dislike, does not mean he is wrong about everything. no—one is saying that, but does he have the discipline, the patience and the coherence back home to take on, which as you said is a huge rival power? part of the answer is will trump survive as president of the united states? i think that is an open question. but whoever succeeds him is going to have to tackle whether liberal or democrat or republican will have to deal with china. the mexican border is one of them. china is able to change, recognises that the us cannot continue with the deindustrialisation, the transfer ofjobs