we are negotiating with china. koreais a member and expressed its willingness to join. , they are in as ,eadlock because of our problem conflicts with japan. and also between japan and china. two emerginge free-trade locked in asia-pacific -- blocks in asia-pacific. including korea, japan, china, new zealand, and 10 other countries. on the asia-pacific side, we have the emerging tpp which is in negotiation. counterbalancing trade blocs. maybe. i think it should somehow accommodate each other of a free-trade network. you might have a different idea. can you think about asia-pacific free-trade without china? eastan you think about asian free-trade without united states? i don't think it makes sense. that is where korea can play its role. we are a strong ally of the united states. we will have a benchmark fta. negotiations, all of the countries are trying to see some can introduce principles into the regime. is playing a role, carrying the big ship. and also through our negotiations with china, we are doing our import

east china sea. it includes the senkaku isla in okinawa prefecture, which japan controls and both chin and taiwan claim. >> translator: the new zone is designed to protect china's sovereignty and the safety o its territory and airspace. >> reporter: china says airc in the area have to obey instructions from the chines defense ministry and the cou may use force against aircra that fail to comply. this has put the japanese government on high alert. in may, a chinese warplane fw dangerously close to two japanese self-defense force aircraft near the median lin between the two countries. similar incidents occurred i june as well. amid the tension, prime mini shinzo abe visited australia a met with his counterpart, to abbott, in july. they signed a pact to jointly develop defense equipment. the two nations plan to hold joint defense drills with th prefecture to strength defen ties. japan's maritime self-defens force also took part in a jo drill between the nave advic the united states and india july. it wa

. >> reporter: in recent years, asean and china have taken up territorial disputes in the south china sea. they've discussed setting a legally binding code of conduct to resolve this peacefully. but observers say asean nations have frequently failed to take a unified stance on what kind of ties the region should build with china, which is becoming more important to the region both economically and politically. >> yes, but some asean nations oppose any attempts for china to compete in the moratorium. cambodia and some other members have relatively close ties with china. it's believed they have responded cautiously to the proposal. asean will hold talks with china on saturday. japan and the u.s. are to attend a meeting of the asean region. the u.s. says all parties involved should exercise restraint. china has indicated its disapproval of any discussions over territorial issues at asean meetings. building a consensus is going to be tough. >> reporter: thank you, thi ha. his analysis shows asean is struggling to find an answer to the question of how it should build ties with its giant ne

we have china trade from japan, india, china, australia. what should we all be thinking . out here >> you know what's occupying our minds now is the u.s. policy. i think the chinese government resolving to keep it at a certain percentage. i think in the next six to nine months, the markets are going to keep a close eye on what the federal reserve is going to do. yes we have some policy meetings in asia but i think a lot of policymakers will take their cue on what the fed does. i think the focus will be what the u.s. fed does. fed policy has fueled the market in the last five years. at a turning point now. the way the fed shifts policy will make a difference. >> very quickly, for investors watching this selloff thinking they have been wanting to join them, should they? should they be getting into cash? maybe buying for the dip? what's your sense there? > our sense is hold off. the market has done well. . we would say hold off. ake some profit off the table. wait for a sharper crex orrection. . >> all right. it is all about timing. vasu menon, thank you for joining us. >> we

human rights issues in china. the scmp went public. may when e-mails between alex price, a sub editor were allegedly leaked. a story, it made for interesting reading in june, 2012, in response stoan article in the wall street journal asia edition, wong said, quote, i totally reject the accusations made against me saying i act as a sensor that is totally out of line and totally biased, unqu e unquote. go beyond the south china morning post and point to deep kepingsz of some of hong kong's in that media owners and the editors they appoint. charles ho, chairman of the news corporation and richard lee, a 50% owner of the hong kong economic journal are both members of the ctpcc, a prominent advisory body to the governmentbeijing. so, too, was wei when he took the job as editor. the post owners, the family, a prominent paper which publishes in chinese has growing business times to the mainlanland. >> what happens is you don't need the government to tell you what to do. self censorship alone is destroying hong kong's pre

to my china vanke -- developers, china vanke. it had its best first-half ever, earning nearly $800 million. it sold more small and medium-sized homes which are typically less affected by market downturns. we will be watching china vanke at the hong kong open. let's dig deeper into china's property sector right now with our chief -- with the chief asia economist at mizuho securities in hong kong. it looks like china is defying gravity a little bit. it seems like that is what property developers need to do if there -- they are going to survive. there are others that are holding very well. the smaller ones are struggling. that is almost the first time that you seabees [indiscernible] in the past 10 years -- that you see these [indiscernible] in the past 10 years, everyone has been making money. not anymore. >> why is china vanke making money? why are the smaller developers not? >> there was demand to be satisfied. after 10 years of strong growth and supplies, now there is [indiscernible] the bigger ones have capital. they have manag

again, in the korean war, giant china and japan were standing -- china and japan were standing on the other side. chinese has risen. japan is trying to research the national prestige and power. so in the 21st century, we are witnessing another trend of sino japanese rivalry in the region. in politics as i have experienced, rivalry is not always a bad thing. two rivals could end of being in the present, indicates the case of korea. the famous two kims episode. so rivals actually contribute to the development of the other side. if it is a benign rivalry. if it becomes a malign rivalry, i think it will create big problems. not just for these two countries, but for other countries, like korea which is right in the middle of these two powers. we know that between china and japan, they have historical issue -- how to interpret the past history. they have a territorial dispute, and this is the most important source of regional frictions and conflict in northeast asia. we have seen the chinese declaration of the air defense identification zone in northeast asia. japan declared its own, and th

and this is originating in china. and wine is up more than four with investment from kkr, and let's head right on over to paul allen in sydney. paul, give us the details of this did. >> well, kkr will be hoping it is second time lucky in their attempt to acquire treasury wine. this is a 3.2 billion dollar deal as revealed this morning, valuing the company at $5.20 per share, and treasury wine is the world's second-largest winemaker, looking out over 80 brands all the way up to one that will cost you a tidy $700 a facing and they haven't some problems, not the least of which is $260 million in in pair men's, and we had a famous story about how they had to dump half a million cases of wine in the had, unsold wine, that issues with oversupply, in here comes kkr, and a significant one now april, and they are offering $5.20. >> yes, what a waste, and all of those around the world just salivating at that thought. and let's talk about that. it is interesting. why? >> well, effectively, the cat is out of the bag. they were in

china is looking for a sphere of influence and china is a rising power as this is having a lot of lot of success and lot of it is causing a lot of irrigation in the asia pacific russia russia has a different perspective russia has always been a great power russia was a superpower in the soviet union was in the russia is is as you point out in your in your interview at the russian perspective is that it has been ignored his interest has been ignored they have been ignored and there were certain policy that the united states did not abandon in the aftermath of the cold war that when they do expansion and you know with nato expansion major nato expansion and is it expansion i remember reading several books after after the collapse of the soviet union with where we have we had given. assurances the nato would not expand would not come to russia's border borders and then we just went ahead and do it so from russia's perspective contingent is very much alive so russia and china have to have always wanted to have a multiple to work now what's happening is in the in the aftermath of. economic

to be a person in china, i can't imagine what it is like to be a chicken in china. it is pretty scary how many hands touch that chicken between here, over you know like you said across the ocean then back. that chicken has traveled a long way. gerri: is that a safety issue, just the travel, forget about how good processing or clean it is soar good the procedures are, is the travel alen a problem? -- alone a problem? >> i think it is, because you know further it goes more chance there is for contamination. the more people involved with it it might go from a you know, a farm, to a shipper, back to a processing plant, to a shipper, you know, it changes hands quite a few places, everyone has to be responsible and do the right thing. gerri: brian, we have problems keeping chicken safe here in this country, with salmonella, they are well publicizeed. should we be bringing in chick friend anywhere else -- chicken in from. anywhere else, isn't this a category that we should be buying american? >> absolutely, for no other reason, than if you keep money in your local economy,

you cannot really apply it to china. the pockets do require a little bit of cooling. >> thank you for that. now let's take a look back at the markets right now. david is taking a look at what is happening so far here in hong kong. david? >> on the chinese mainland, shares are down. composite, take a look at financials there. because of this property tax that we just talked about. a good number of companies are falling. 55 out of the 70. now let's take a look at where the benchmarks are at this point. interesting note out of ubs this morning. they are saying that best case scenario, you look at the msci china index, the best case scenario is we gain 5%-10% in the second half. you look at the preliminary hsbc , just barely above water. that is the wake-up call, they say. recover at theo 25,000 level. we were below that slightly this morning. the first half, $58 million, $70 million last year. a lot of challenges for the company backed by warren buffett. another carmaker has had its share of challenges this year. the stock

this is part of the relationship i think china knows that america knows it and china knows that this is a very powerful leverage but on the other hand china is trapped in in this investment in u.s. treasuries before china's economy is for all of the violence the system is for a little rise so the two sides are on the one hand dependent on one another but on the other hand are rivals so i think that the both sides have got to manage their relationship very carefully and both sides are doing it but unfortunately in terms of the heart an island is a very very sensitive as at the china so china is going to take a very tough stand on this you know so i mean when you consider china's vast military base there right at high now and i'd u.k.p. long wish we had more time. an international specialist on china thank you very much for your. spectacular people pouring freezing water over. eighty million dollars for the charity but research. suggests the money is likely to directly help the people it was meant for in the first place. we know that the statistics they publish indicate only twenty sev

they gather every week to voice their anger at china. vietnam was ruled by china for more than 1,000 years. anti-china sentiment has more students turning to their history books. 164 students at this high school applied to take history this year. five times more than the number of places available. university entrance exams took place in july. the test included a question that appeared to reflect anti-china sentiment. it asks what significance does it have for national security for vietnamese fishermen to operate in waters around the pair sell islands. >> translator: this sort of question closely reflects current circumstance. it was an appropriate question to gauge students' awareness of the issue. >> reporter: the anti-beijing mood is starting to affect every day lives. the shelves of this convenient store are lined with products from japan and south korea. the shop is boycotting goods made in china. >> translator: i support that. as a vietnamese citizen, i respect the policy of refusing to handle chinese products. >> translator: initi

china. how concerned are you -- the lowest rating by market since 2005. this ties up with the imf report that warns growth is not that achievable. >> the imf has said they need to rebalance. what you have so far is whichncing on the surplus is 10% of gdp which is now less than 2%. the external rebalancing has taken place but it is only taken place because they decided to put a lot of investment into infrastructure and housing. that seems to be a problem. the imf report suggests it should include upstream and downstream and direct effects. that is about 30% of gdp so housing is a very important part of the game. the service sector -- it is a measure of domestic demand. when the housing market cools down and needs to adjust, this is the consequence of that. the imf report pointed out a scenario. instead of what should be done like in china. where is the risk? the risk is the internal rebalancing, the movement away the investment and saving, internal rebalancing if that doesn't take place, the

between america and china especially over the south china sea which to china of course is a and the social and critical. channel for us a part of our energy as well as trade but also as a conduit for charges and they will force us into that with the pacific particularly a lot of the time of. the nuclear arms means based entirely on eyes you can on submarines it's part of. the metric was there because china is no match with america as far as care is the concern and indeed a lot of people. literally hardware in terms of the heart of island is a very very sensitive as a china so china is going to take a very tough stand on. its own international live from moscow thank you very much for sharing your saturday with us today i'm wrong researcher signing off the monks in the states here about to be busting the bankers and the kaiser report unless you're in the u.k. and you're going on the ground with afshin rattansi thank you for watching. on marriage in the financial world. act. can't stop it it actually takes no demand for credit. in life there are jews. the pledge was terrible to say the i'm ve

china as well. china, let's face it, it is asserting its claims to the energy and fish-rich waters in east and south china seas and this incident comes 13 years after the most serious encounter when the fighter collided and clipped and forced the american plane to make an emergency landing and that turned spoo a dim plow matic incident. it is a strategic base for the army and home to a submarine base and chinese oil companies have directed those oil platforms much to the anching gngst to vietnam. and these encounters don't make things easier. >> thanks, steve. >> hong kong pro-democracy protestors have called on police to use force. and what's this all about? bring it on? >> occupied central has been central. this is a group that is threatening to occupy the business district in hong kong if they don't get their way. this week. , the standing committee of the chinese government is going to announce the conditions for the 2017 election for the chief executive of hong kong when they sufferage and al d

the fact is, china is an evolving economy. as a natural aspect of how china is going to operate. you get a new set of rules, people will start trying to figure it out. the government likes to make the rules of little bit vague and then look at how the reaction of the market reacts to the market and then based on that, they can clarify. i will give you an example. -- that was all about the lobbying group for counterfeits in china. basically, we hailed it as a huge victory when it became a criminal prosecution if you were caught with less than 5000 euros dollars with counterfeit goods. the key into implementing the law is how to captivate the value of $5,000? is saying umbrella with sells retail for $800. the type of interpretation, you have to work with local officials to really try to figure out what is the strategy for your company. introduction, all these carmakers, microsoft is well, all are suddenly being investigated by authorities. tell me why that is the case. let's take this into account. what you're referring to are the multinational companies. you don't hear about all t

china construction has slowed. china's slowdown and a property slump is increasing the pressure on lenders. and china southern airlines reported a net loss of more than $170 million in the first half. it suffered the biggest foreign exchange loss among china's big three carriers. the loss comes despite increases in operating revenue and passenger volume. those are the top corporate headlines this hour. itsong kong may soon have first dual currency listing. that is if one company gets its wish. david has more on this. >> hong kong airlines. , obviously,rrier based in hong kong, hence the name. according to sources, it is not planning for an ipo, it is planning to do what no other company has done and that is to list shares in both currencies. you have the hong kong dollar and the chinese. according to sources, it there could be about .5 billion u.s. dollars here. asave not seen any details far as how much it will be in yuan. , we already have companies which have raised money in hong kong. the first one was complete

and if we examine all the occupied land features of china in the area, they are all considered by china some military facility and not a civilian facility. >> reporter: philippine military officials say the chinese have confirmed work to build new facilities in at least seven locations. philippine officials say they're closely analyzing china's activities. they say the use of the islands as an arms site could allow beijing's military influence to be felt throughout the seas and its airspace. charmaine deogracias, nhk world, manila. >>> let shift gears and go to business news. investors in tokyo are starting their morning going through a handful of economic data. we are joined from the business desk. good morning. what are some of the headline figures? >> catherine, we have jobs, we have, you know, price data today, both closely followed by people who study japan, because they given a insight into the state of the economy. now, government officials say the job market in july seemed to be stable. officials at the internal affairs ministry say the unemployment rate rose by 0.1 point to 3.8

nothing and then now they're seeing in comparison they're seeing china and china is giving them ports realm roads roads schools all sorts of stuff and they're like wow this is this is what we could have had all these decades being you know with under the thumb of america and here in the center of america we find out that here the president doesn't care at all about running the government or the country for the people there either so they have no real words they have no nothing but the top one percent have zero point zero one percent have done amazingly well because of. what his department of justice never went after the banking criminals his you know his central bank printed. handed it to the bankers he made the conscious decision to give those trillions of dollars to the bankers rather than to the population just like so they all the american population are like the african population in terms of getting nothing for all of the chaos war and empire. i still don't see the connection to kate farts i mean when i think of take part so i'm thinking of a video that was online a couple years

but the move hasn't eased china's concerns. chinese government officials will be closely watching to see if abe visits yasukuni during the autumn festival. a summit is slated for november. the focus will be on whether two leaders will hold talks on the sidelines to try and improve japan's soured relations with its neighbors. kurando tago, nhk world. >>> staff with the world health organization are battling the deadliest ebola outbreak in the history of the disease. they now say the magnitude of the infection in west africa could be much more serious than reported. w.h.o. medical workers say the number of recorded cases and deaths vastly underestimates the scale of the outbreak. >> i think we have to realize that the current situation is really one of historical importance. we have never before seen an outbreak of ebola virus infection as large as this. >> the u.n.-led agency is tracking cases of the illness in guinea, liberia, sierra leone, and nigeria. they say more than 1,100 have died, and they expect that number to rise. th

my china's disease -- my china studies has it in the portfolio. >> what about china trade? people are signing off on abenomics. this is probably the last kick at the can and it doesn't work. >> we are underway in japan because we think there needs to be -- more needs to be done in terms of restructuring japan. but we are now in the stage thee we need to get through data which we know will be quite. how about this shift that people have been talking about for several months about the pension funds? perhaps adding a bit more risk? is it something to ride the wave? you don't really see what they are doing. >> this is one of the issues we deal with in japan. we are not always quite sure what exactly the progress has been it is easy to look at what the central bank is doing. but when it comes to reform, there is one step. other areas where things have been put in place that we need to worry about with question marks. >> one of the few that is overweight [indiscernible] taiwan, hong kong and china are you of the contrarian view? >> i think we went over way china at the end of q1

china declared an air identification zone over the east china sea that includes the islands in prefecture. >> translator: the new zone is designed to protect china's sovereignty and safety of the territory and air space. >> reporter: china says aircraft in the area had to obey instructions from the chinese defense ministry and the country may use force against aircraft that failed to compile. this has put the japanese government on alert. in may, a chinese war plane flew dangerously close to two japanese self-defense force aircraft need the median line between the two countries. similar incidents occurred in june, as well. a mid the tension, prime minister visited australia and met with his counter part tony abbit in july. they signed a pact to jointly develop defense equipment. the two nations plan to hold a joint defense drill with the united states of prefecture to strengthen defense ties. japan's maritime and self-defense force took a drill between the united states and india in july. it was the first time in five years that japan has taken part. defense minister boarded a u.s. nuclea

china mobile and china unicom and china telecom, big names that have been listed here and not there. at the same time there are also gambling stocks, luxury goods and stocks that clearly they have an affinity toward. on the other side of the equation, you have got 120 stocks that are in the industrial heartland, sort of small, mid-and large-cap industrials that global investors will be able to get their hands on in china, very interesting. .> lots of opportunities as you point out, what have we seen anticipation of this and how can investors start exploring. have they already? >> a number of elements. if you think i'm going back to that dual listed aspect, there are 70 stocks that are listed both in shanghai and hong kong. certainly, there is a comparability if not an arbitrage opportunity straight up. premiums group, the basis is dropped to an all-time low. this is being driven right now by hong kong financials and energy stocks having been taken up. you can see the premium on this chart here, where the a share premium has historically been above 100 is now gone to discount. it is m

china says that a u.s. navy airplane and a new surveillance aircraft,a patrol conducted the flights on august 19. china sent a fighter jet to carry out a routine identification and verification of american planes. china says that the fighter maintained a safe distance and that the actions of its pilot were professional. that is not the story we have gotten from the u.s.. they say that the chinese fighter did a provocative move and flew within 20 feet of the surveillance aircraft, doing a barrel over it. the u.s. says that the chinese flu at a 90 degree angle to show off the weaponry and the belly of the aircraft to the surveillance plane. the allegation has been dismissed as groundless and it is a bit troubling. there has been a few more encounters as of late as china is in the south china sea. not an isolated case. there has been an escalation in encounters. >> yeah. with the encounters between the chinese navy and japan and the united states pivoting towards the pacific. encounters have been on the rise s

>> china hasn't lost leverage. they've just decided there are limits to the leverage that they are willing to exercise. so when it comes to food and fuel for north korea, china is absolutely critical in that respect. so there is more that china can do. but we think it works much better if the world in particular the neighbors in north korea act together on this, supported by the rest of the international community. this is the achilles' heel of north korea is the fact that it does have sufficient fossil fuels. it's unable to feed itself because it's broken its own economic system, hollowed it out over the years. and so in terms of ways to put pressure on them, these are some of the ways that we can use to do that. >> and i appreciate that, but i was thinking about the normal kinds of leverage when you look at sanctions regimes, you know, we're looking at it on russia right now. well, the ruble is exchanged. they have a stock market. they have external investment. they have trade flows. all of which can have influen

property prices in china comes out this china. of course, the big one out of thailand later on. 10:30 a.m., gdp. i want to point out southeast asia, what is happening there or what will be happening. the session opens up about 25 minutes from now. why am i pointing this out at this point in time? jollibee foods -- foods, some of their branches were closed due to lack of supply for fried chicken, one of their best selling products. they basically announced all of their branches are up and running. up.a has been bought you look at some of these indicators, they do show that the stock is overbought. you take a look at the moving averages -- that said, singapore is down about .5% here. beenone has actually oversold and continues to fall. right now, we are down about .25%. across thening region. the taiex index, we are down from the peak in july. the singapore straits times down about .25%. we are watching another stock. back to you. opening lower. selling shares at a discount to pay for its acquisition of a hong kong bank. what do we

china seas. this is alarming washington. michael o'hanlonon is the author of a new book,k, strategic resolve, u.s. china relations in the 21st-century. thank you foroining us. china is increasingly aggressive with its neighbors in the region, trying to unilaterally in the southap china seas. what is the relationship that you and jim think washington and beijing need to have? >> the first thing to recognize is that it's going to be complicated. ththis is not some aberration. china is not going to go quietly back into its pre-21st-century behavior. of the timeing out it defefines as a century of humiliation,n, in fact, maybe en a half millennia of humiliation. they withdrew. the rest of the world took advantage, and then starting with the opium wars of the 20th century, the outside world pushed its way in d the japanese grew to recolonize china. are doing is partly motivated, in their own mind, by defensive motivations, although it is also partly motivated by ok, now is our moment. now we can go ba

it needs china. we should be trying to change the behavior of north korea directly and more importantly china with a combination of carrots and sticks, even though the north korean government is despicable and we can all try to outdo each other in his can be more opposed to the government. on the carrot side really ought discuss a nonaggression pact. it isn't our usual way of conducting state department business. it is something we want, something we can give them. they might appreciate a official position. we can tell the chinese that even if there is unification, no military forces will be stationed north of the 48th parallel. we have to look at the lopsided trade with china and access to the u.s. markets is not guaranteed by the u.n. charter. north korea may not be as dangerous as other states because it is not as ambitious as iran. with an erratic government shown to be more erratic in the last and a growing nuclear stockpile we have every reason to try to trim the danger posed by north korea. >>

. >>> china and vietnam have agreed to present their territorial disputes in the south china sea from worsening. >>> a leader of pro-russian separatists in eastern ukraine is making a push for an independent state. >>> and a young woman says her fight against cancer made her feel truly alive. now she's teaching others how to savor life. >>> chinese and vietnamese have traded accusations for months over territorial disputes in the south china sea. crews have faced off against each other out on the water. and vietnamese have staged repeated protests against what they see as chinese aggressiveness. but now they're leaders say they're committing to negotiating the disputes. president xi jinping hosted special envoy -- in beijing. the state-run xinhua news agency quoted xi as saying that it shows that vietnamese leaders are wanting to improve ties. in may a chinese oil company set up an oil rig near the parcel islands. chinese and vietnamese crews converged on the area. some rammed ships against those from the other country and vote's demonstrators staged a number of protests against china

in the east china sea. officials on friday posted the names on the website of the headquarters for ocean policy. the foreign ministry spokesperson claims the japanese naming undermines china's territorial sovereignty. he said the islands had already been named by the chinese government. he called japan's action illegal and invalid. in 2012, government officially named four of the senkaku islands that serve as the basis for setting the boundaries for japan's exclusive economic zone. china sharply criticized the move. >>> u.s. secretary of state john kerry has met india's prime minister with hopes that the u.s. can forge better ties with the new government. modi scored a landslide victory in the may election with a promise to push ahead with reforms. >> reporter: kerry met modi for the first time since he became prime minister. his trip is viewed as an important step in laying the groundwork for modi's expected visit to the u.s. in september. on thursday, kerry met his indian counterpart sushma swaraj. they a

what about the idea that china is urbanizing? people are flooding into cities or want to, anyway, by the hundreds of millions. and that this really is a smart move-- build the housing to accommodate the urbanization process. >> tulloch: well, so, people are being moved into the cities. but that doesn't necessarily mean that they can afford these apartments which, you know, cost u.s. $100,000 or whatever. i mean, these are poor people moving into the cities, so they're building the wrong sort of apartments. >> stahl: and what's worse-- to build all these massive cities, they've had to tear down what was there before, clearing rice fields and displacing, by some counts, tens of millions of villagers. on the edge of zhengzhou, gillem and i came upon a strange sight. i'm just watching what they're doing. do you have any idea? >> tulloch: i think they're trying to recycle the bricks. >> stahl: these villagers are salvaging what's left of their homes, bulldozed to make room for more empty condos already encroaching in the distance. the

well, china hasn't lost leverage. they just decided that there are limits that the leverage they are willing to exercise. so when it comes to food and fuel for north korea, china is absolutely critical in that respect. so there is more that china could do. we any it works much better if the world in particular the neighbors in north korea act together on this supported by the rest of the international community. so this is the akillies heal the fact that it doesn't have sufficient fossil rufuels unabl to feed itself. so in terms of way to put pressure on them, these are some of the ways that we can use to do that. >> i appreciate that. i was thinking about the normal kinds of leverage when you look at sanctions regime, you know, we're looking at the exchange. they have a stock market and internal investment. they have trade flows. all of which can now be influenced in a way they were not as influenced when they were the soviet union. so they are feeling some pressure. we don't really have that kind of leverage with th

china sea which to china of course is a and he said sure and critical. channel for us a part of our energy as well as trade but also as a conduit for charters and they will force us into the great the pacific particularly a lot of the chinese top class and nuclear arms for reasons based in thailand i you click on submarines is part of. a kind of a symmetric warfare because china is no match with america as far as carriers are concerned and indeed and not at the pump edge. military hardware in terms of the high on an island is a very very sensitive as a china so china is going to take a very tough stand on this. many more stories for you right now online and just a few clicks away at the top one types of people in houston left. mystified by this. photograph flying in the night sky astronomers also want to able to pinpoint what that is and i get more details right now we're. also there all at sea life struggle to rescue dozens of adrenaline junkies who flooded california's features to hit the big waves caused by hurricane memory the full story of the video

the search for survivors in southern china. rescue workers go through the villages devastated by the powerful earthquake. extreme weather is affecting residents all over california. one of the worst droughts in the in the northry with flash flooding in the south. it has already been a long summer for firefighters in california suffering its worst route in decades. tendermperatures and dry revived the fuel. lightning provides ignition. 14 separate fires have started in the last few days. the two words in northern california are burning out of control. the governor has declared a state of emergency. communities have been evacuated. tens of thousands of acres have been burned. coming this smoke way fast. incredibly fast. >> the whole time we have lived here, that has always been a fear. to have the reality is a big shop. >> when much-needed rain arrived, it brings another kind of danger. flash floods and mudslides in the mountains outside los angeles cut off towns and swept away vehicles. >> heavy downpours caused the roadways to

between america and china especially china sea which to china of course is a social and critical. channel for us a part of our energy as well as trade but also as a conduit for charters and they will force us into that with the pacific particularly a lot of the chinese top qualls and nuclear submarines are based in piramal and ukraine on submarines is part of. the metric was there because china is no match with america as far as carriers are and indeed and most of the edge. literally hardware are in terms of the heart a mile away is a very very sensitive to china so china is going to take a very. stand on those. after the break find out who's benefiting from the privatization of prisons in britain bust. logo. this month show bush's transports gets a facelift and you can see the board he makes the most of the song in this. the signs flourishes in tomsk and we check out some on the car let's say. technology update here on r.g.p. we've done the future cover. gender trungpa symbolizes the gender madness in swedish acadian here because i found this. project foreigners with seventy thou

there's a lot that china had going for it. it is more we going to be soon that china's gdp surpasses that of the united states. that will be a great moment of psychological crisis for many americans. but i don't care. i do not care when that happens, and i do not care that that will happen that china's gdp will surpass hours in their economy will become number one. think there we retained deep and lasting competitive with vantage. two aspects. when is this aspect has -- its battered ask forgiveness than permission. and that's credo permeates american civic life in ways that i think you don't know this in just paying attention to the doorway and what is going on in d.c. adapted and he and resilience. what we were describing earlier which is our open intermingled intermixed cultural operating system. i borrow it down this way. our advantage over china, america makes chinese-americans. tiny does not make american chinese. china does not want to, is not interested that is the very essence of the american idea. i think that bless t

anecdote about russia and china. so i'm in this giving a talk to the russian general staff academy in moscow as secretary, and the colonel stands up in the back and says why are the united states and china plotting to take over siberia? [laughter] and i must say, i don't get stumped too often, but i cannot figure out where the hell that came from. [laughter] so i gave some kind of comment we were not interested in siberia. then i asked bill burns, our ambassador, where in the world did that come from? he said, well, a couple of months ago madeleine gave a speech in which she said, how can russia possibly exploit siberia with the depopulation of the country? that is essentially all she said, but it is a measure of the paranoia about both china and the united states that exists in moscow. >> and deep paranoia about madeleine. i'm chairman for the national democratic institute. we do believe in western values. basically, which is a good way to answer the question, and i think we sometimes forget about the importance of

china said fine. so long as candidates are patriotic. >> critics say it's not democracy and warn of scenes like these. >> they try to give us a fake democracy, 10,000 or more will come out and sit on the street of central. >> reporter: that threat to occupy hong kong's central district led to a large beijing protest three weeks ago. it later emerged many of those taking part will be busted - paid and treated for lunch. the protests showed the the mood was heartening. we expect serious polarization in the society. although, certainly law and order will not be an issue, but we expect a very difficult scenario for all parties concerned. >> hong kong's rurnt executive was chosen current chief executive was chosen by members approved by beijing. that's the election that china wants. they are in no room to compromise. >> protesters need to keep in mind when you use protests for advancing democracy, you cannot violate democracy and rule of law. >> went the government wants to avoid confrontation, it may feel