the headlines, market shanghai, tokyo reverse early losses. they shrugged off data while the japanese business mood survey turns positive for the first time in nearly two years. nokia has agreed to merge with siemen's. analysts cheered the deal but worries about the telecom group's cash position. the opposition protests in egypt called on president morsi to resign. >>> you're watching "worldwide exchange," bringing you business news from around the globe. >> all right. welcome to the show. we had issued with the mikes. we have data out of the eurozone. manufacturing pmi. showing some signs of stabilization this morning. the final eurozone posting the index up to a 60-month high, 48.5 in june, but below the break-even 50 level that divides growth from contraction. some interesting numbers as far as this is concerned. spain up to 50. that stabilized easily. that is still the 23rd month of contraction since the high in july to 11. factories also reducing head count last month, but at their slowest pace since march 2012. for germany, factory outpu

citizen in shanghai in connection to the probe. joining us from beijing is cnbc's eunice yoon and staying with us in london, gina sanchez, chairwoman and founder of comma chantico global. >> we now know that there is another foreign national and u.s. citizen, an american, who has been detained. we don't know the name of this person, however we do know that this person, according to pfizer, eli lilly and glaxosmithkline do not work at those companies. the whole health care industry is very, very jittery. everybody is on edge and want to disassociate themselves as much as possible from an investigation if at all possible for them. the -- you had mentioned also there are -- that we really are seeing a widening investigation. there were two more people at astrazeneca who have been called in for questioning. this is after a local sales representative was taken away. also, the health ministry of china has said that 39 hospital staff would be punished for t e taking bribes from two drug companies. we don't know exactly which companies tho

it says it can confirm that it was visited by the shanghai public security bureau. it says it believes the investigation relates to an individual case. and it says while we have not yet received an update from the public security bureau, we have no reason to believe it's related to any other investigation, saying astrazeneca is committed to acting with integrity at all times. >>> still to come on the show, the co-chief executive of german software company, s.a.p., is to move to the company's supervisory board. how does he feel about it? find out as we bring you an exclusive enter rue with the man himself right after the break. >>> and we'll leave you with a look at how futures are trading ahead of the open on wall street. we'll be back very soon. [poof!] [clicks mouse] there's doughnuts in the conference room. there's doughnuts in the conference room. automatic discounts the moment you sign up. with the spark miles card from capital one, bjorn earns unlimited rewards for his small business. take these bags to room 12 please. [ garth ] bjorn's small business earns do

we're now one of the worst performers globally in the shanghai composite. there is some real justified jiters. when we go back to the gdp figures we had, second quarter gdp that were okay, they're only okay because they appeared to be a roguishly low gdp deflator. if the gdp deflator was anything like it's been over the last five or six quarters, that gdp figure wouldn't have come near 7.5%. it would have been near 6. so real concerns there among international investors. >> trying to match up balance sheets between hong kong and china and seeing what the trade was like. you see the discrepancies that have been there, this tells us the story about chinese gdp, that's how people look at it. what do you think is playing out? how slow is the china growth story? >> well, many ways of measuring the china growth story. one, you can look at the factor inputs, energy and railroad and all these sorts of things. the other way of looking at it is to see australian exports. unless the chinese are stockpiling vast amounts of iron ore and coal, you can check google earth

the shanghai composite jumped nor m more than 2%. brokerage and banks extend their gains in the afternoon session as we see that founder securities surged over 8%. and property developers also among top gainers. china merchant s jumped nearly 9%. and among the actives in hong kong, jewelry shops outperformed. shell soared over almost 13% after importing over 60% surge in its q-1 revenue helped by the gold rush after the price of bullion plunged. consumer mood slipped in both japan and australia in june. index giant fast retailing waved on the nikkei 22 5 down 1.2%. in australia, retail chains were also broadly weaker. harvey norman down 2.4% today and surf ware company billabong plunged another over 10% falling yesterday's 16% tumble. back to you. >> all right. thank you for that. now, shares of burberry beat expectations with an 18% rise in retail revenue for the first quarter. they saw double digit growth where the latest collection received a warm welcome from rich chinese shoppers. burberry maintained fw eed guidr the year but wa

the shanghai stock exchange at a whole has a further downside run to go. we're not finished with it. i wouldn't criticize the chinese authorities at well, doing the right thing, trying to reduce speculation in the property sector in the short term is the way to go, but if you are an looking for a three or six-month opportunity, it's negative. clearly the negatives that you're hearing about china or the equity markets i think you'll continue to hear, and on the listed equity market, it's very difficult to see anything positive that's taking place in the short term. the other aspect of this is that china is faced with the headwind that is coming from the reversal of the federal reserve policy, and to the extent there's a tapering of quantitative easing, it is going to affect all emerging markets and:exclusive. we've seen that in india and brazil, two currencies where the equities and currency markets have taken a big hit. overall the short term where there's very little to shelter from in the emerging markets, but then as you said to begin with, the u.s. dol

the shanghai composite enjoyed its best day in seven months, up 3.2%, rising hopes that beijing may introduce supported policies to boost the economy. hang seng in hong kong chocked up stunning gains of 2.6%. the money rates climbed to 3.8% after the pboc once again didn't conduct any open market operations. but that didn't seem to bother investors at all. and banking shares powered ahead with ping an and industrial up by 10%. and the sentiment lifted eight brokerage stocks to their daily upper limits. poly real estate jumped over 6% today after reporting a 35% rise in its first half earnings. also market chatter that authorities will lose finance policies for property firms. as for the region's exporters, japanese electronics stocks lost ground today as the yen gained strength after the boj decision and bernanke comments about keeping the qe continue also weakening the u.s. dollar. but foreign buying propped up south korean tech shares. samsung electronics jumped over 5% in today's session, extending a three-day winning streak. and i have to show you the extraordinary gains among australian

following yesterday's 3% surge of the shanghai composite led the decline in the region, down 1.6% today ahead of the key data due out next week. mainly banks lost ground. beijing has already been drafting plans for promoting interest rate liberalization and may soon scrap the floor for lending rates. markets fear this will bring more competition and squeeze bank net interest marriagens. gains on the market, tanking nearly 6% in today's session. q-3 operating profit came in worse than expected due to discounts and marketing expenses. goldman sachs cut the outlook for the financial year. the worst performers in south korea were hyundai and kia motors. shares plummeted about 5% to 6% in today's session on worries that their car sales may dip in china as more chinese cities may restrict new car purchases. and the australia market, the best performer for the week, gaining nearly 3% over the past five sessions. gold miners like newcrest, evolution and kings gate, they once again outperformed the broader market jumping to 9%. back to you, ross. >> sixuan, thanks for that. that's where we stand

the response, of course, still to those fed comments, giving a lift to the shanghai composite, up better than 3%. 2% for the hang seng. nikkei adding a little as well. given the strengthening of the yen, a sign of progress, a welcome sign, you could say. the european market, ftse 100, up .7. better than 1% for the xetra dax. >> you can read either one there. when i read this, they walked in feeling strong. and then within two days, going, no, i don't know about -- we can't -- the 85 billion -- what if we do -- none of them had any -- do they? >> i think they need to let the economy react. the economy is like a 12-year-old on a bike with training wheels. we can just -- >> you got a keynesian on steroids here. you think there is not enough ink and paper in the world. >> monetary policy has not stimulated the economies of europe or japan or the united states. >> she's glaring at you. >> i think it felt evident. it doesn't take much to look around the world and see who is being accommodative, in response to what conditions and what are the markets and economies doing in turn. >> will we ever

asian equities and shanghai composite and copper which yesterday was a bit up in anticipation of this. the reason i am calling it is two-fold. first of all, china is coming out out of the blue after sending the signal for the first half of the year that it was okay with the slowing economy. want to see rebalancing and now it's saying, we're going for growth. that's catching people on the wrong side of the trade and raising questions about the long-term implications of this strategy and how weak china's growth is now. plenty of people talking about outright deflation and whether the economy screeched to a halt in the second quarter. if they go the stimulus route now, what are they going to do? more fixed investment. already 48% of the economy. consumption has not increased as a share of gdp. fallen since last year. as we start to see people come back to the china trade, the whole commodity complex as a result. is it a short term gain at the expense of a longer term more viable strategy. >> the ponzi scheme continues. >> and i also worry tomorrow's caterpillar. some sense that the capit

the shanghai composite tumbled 2.4% today. hang seng in hong kong lost 1.3%. banking shares bodiroadly weake. many think this will make the sector more competitive and could possibly hurt lenders' net interest margins. in japan shares of softbank had quite a volatile day of trade. rising as much at 1.7% before ending down by 3.4%. the turnaround really happened after s&p's downgrade of the stock by two notches. for the broader nikkei 225 also extended weakness in late trade. the index lost 1.4% today. meanwhile the region's resources shares also lost ground, atrackiatrack i -- attracting weaker commodity prices. china's largest gold miner tumbled almost 7% after profit warning. atlas iron and newcrest also took the brunt of the selling today. >> thank you for that. we'll catch up with you later. >>> we've been watching events, fast moving events in egypt. these are the latest shots of tahrir square. we're also getting -- we'll be out with the latest on that and reports of those deaths as well. tanks apparently still blocking the bridge. at the same time, tensi

the shanghai composite dipped below the key 2,000 level. weaker by 1.7% today. investors also worried that beijing's plan may prompt banks to tap the markets to raise the fund. as a result, banking shares in some of the property plays as can you see from the first row, they took a beating. but it was a sunny day for those solar panel makers as they rallied actually after the eu and china reached a trade deal over solar panel on terms favoring beijing. it surged up by 10%. in japan, nomura tumbled by about 5.7% today despite reporting a strong profit growth. this as markets are more concerned about declining trading volumes. and a stronger yen as ross just mentioned that it took a toll on exporters, especially automakers. mazda lost despite a strong profit outlook. and mitsubishi motors tanked 10%. no such worries for rivals hyundai. the south korean automaker has extended its 11-day winning streak, up another 2% after it reported strong earnings last week. and kia motors also ended marginally in the green. back to you. >> all right, thanks very much for that. we

the shanghai markets are all ending higher. the nikkei actually closing at its highest level in a month. you see it up 1 and a quarter percent. european shares are higher as investors digest a slew of numbers coming in, the including the latest figures on manufacturing and employment, investors are focusing on the manufactured pmi. again, if you take a look at the european markets, you will see the dax is up .3 of a percent. and the kak is up by .7 of a percent after closing at its worst quarterly drop, gold is bouncing back this morning. it's helped in parts by the san francisco fed president john williams. on friday, he said he is backing off his view the fed should start cutting stimulus this summer. you are right, backtracking on all of this stuff. gold is up by about $15.16. back to $1,042 an ounce, gold is taking a toll on investors in david einhorn's green light capitals. that fund was down nearly 12% in june. it's down about 20% for the year. >> here in the united states, despite shortened week, on once, adp is out with

half a percent in shanghai. in europe, you will see at this point the dax is up by over 1% as is the cac in france. ftse up by about 0.8%. we do have plenty of earnings news thorn. boeing, earnings $1.67 a share. compared to street estimates of $1.58.thorn. boeing, earnings $1.67 a share. compared to street estimates of $1.58.horn. boeing, earnings $1.67 a share. compared to street estimates of $1.58.orn. boeing, earnings $1.67 a share. compared to street estimates of $1.58.rn. boeing, earnings $1.67 a share. compared to street estimates of $1.58.n. boeing, earnings $1.67 a share. compared to street estimates of $1.58.. boeing, earnings $1.67 a share. compared to street estimates of $1.58.boeing, earnings $1.67 a . compared to street estimates of $1.58.. boeing, earnings $1.67 a share. compared to street estimates of $1.58. also some strong numbers for ford in the second quarter. company posted earnings of 45 cents a share. revenue also above consensus. and that stock up by about 3.25%. pepsi came in with earnin

now, the developer is sending a team to shanghai and beijing to sell even more units. we'll see whether there is enough new chinese wealth to fill all 96 floors. back to you, carl. >> it's interesting, robert. i have seen a couple notes looking at new york real estate prices and what they have done. the argument is they can't continue to go as quickly as they have because of smaller numbers of international buyers, fewer cash deals, all of that. >> that's the one hand. ornd, you just had richard smith on making the point that inventories are very tight, demand is so strong. so the question is has the local buyer market remained so strong that they can pick up the slack from these foreign buyers? we'll see. we could see this foreign buying taper, but the market now could be strong enough and tight enough it's okay without them. >> a different kind of taper to think about. robert frank, thanks very much. they're not disconnected. the fact that the fed is tapering, that u.s. financial conditions have tightened, people are pulling money out of emerging markets, all that me

almost 2% in shanghai. the nikkei down 3.3. do the math. that would get your attention. then in europe, they're all up. but not much. let's look at oil. the oil board, that's been stubbornly above 100, but coming down slightly, $104.53. the ten-year, i saw, was at 2.56, almost 2.56. dollar n , if we're going to europe, it's got to come down. the euro, slm 1.43. gold on a little bit of a run. i'm thinking about buying some. >> really? >> because of man q. i read man q.'s piece in "the new york times" over the weekend. he mentioned buffett and all the people that don't like it. just because it's noncorrelated with anything else. he says 2% of your portfolio could be in gold. >> are you going to buy it anyway? >> no, no, no, no, no. >> store it. >> yes. if i could find a place to buy them where i didn't have to buy a big -- not a lot of them, but i'd maybe buy a few of them in case i need to bribe someone in the future for something. >> always thinking. >> for something. i'm not sure what. but if paper money is ever useless. it could be food. it could be passing -- you know

that's giving a boost to the stock markets in hong kong and shanghai, though a different story for the japan benchmark index after hitting a new six week high briefly, the nikkei closing down 56 points following trade results from china. also fed minutes will be on the minds of investors this morning. minutes from the latest policy meeting out at 2:00 p.m. eastern. traders looking for any further clues on when the fed will begin to scale its bond buying program back. and we'll have more coming up on that with chief economist and managing director of global research. checking europe, right now red arrows across the board there, as well. cac off, ftse off, and the dax off. but not horrible. and brent pushing above $108 as china's imports of crude fell 7.4 7.4% from the previous month. the spread between brent and west texas intermediate narrowing slightly making wti more attractive to investors. >> blackberry is reportedly going to cut more jobs. "wall street journal" says the new cuts will come at middle management levels in the sales and support divisions. that would be on top of 5,000

shanghai stocks, you think they'd be down, no, up 2%. bad news is good news. now they're speculating that the people's bank of china is going to cut interest rates and they're going to do stimulus, so chinese stocks had the best day in a long time up about 2%. i think that was the best day since march overall here. elsewhere, let me move on. if you think there's problems with money trying to find a home, there's plenty of money out there. did you see this announcement? kkr announcing they're going to start a new $6 billion asian fund. the asian markets have underperformed dramatically this year. japan might be the one exception out there. but there's no shortage of money trying to go into asia. they open an office last year in singapore, specifically to look at the possibility of adding into their investments there and that apparently is now happening. obviously the story is buy into consumer growth. but as you see in china, that consumer growth is getting a little bit harder to find here. there's been a lot of speculation about whether higher interest rates a

nikkei up by about 15 points, shanghai com positiposite down . and in europe, things are bury bunchidge there, as well. modest advances. >> today is about the intersection of policy and investing and economics. and no one better equipped than david mccormick, bridge water associates co-president and member of the management committee. he was treasury undersecretary for international affairs during the bush administration. brid bridgewater has more than $150 billion under management and the world's largest hedge fund. thanks for coming in. so we'll hear a couple things in the next frankly half hour. we'll hear from jack lew on dodd-frank and i want to get your views on that but we're going to get bernanke's testimony at 8:30. what are you expecting to hear? >> i think what you're likely to hear is what you've been hearing. if you would step back and said how would we have expected if this was managed well the qe process managed well, how would we sxrekts this had to go. >> that implies you don't think it's being managed well. >> no, i do. i think

with this flight starting in shanghai, thank you for that update there. and an important bit of news there, south korean officials saying, the ntsb investigators already continuing to stay on top of that. we will keep you updated and we will look at the other majorer stories in the world today including the ongoing crisis in egypt. the supporters of morsi want him returned to power. the great outdoors... ...and a great deal. thanks to dad. nope eeeeh... oh, guys let's leave the deals to hotels.com. ooh that one! nice. got it! oh my gosh this is so cool... awesome! perfect! yep, and no angry bears. the perfect place is on sale now. up to 40% off. only at hotels.com to sha-cool. get it? [ male announcer ] new gold bond powder spray. cool, dry, no mess. stay cool with gold bond. to the right of the screen, live pictures from san francisco international airport as we update you on the breaking news, the flight came in for the landing right there, something went wrong. witnesses reported the tail of the plane clipping the edge of the run way. it spun around an

the flight originated in shanghai. continued on to seoul. and then continued on to san francisco international airport. let's bring in dan simon. he's at the airport as well. if these latest numbers, dan, and i don't want to get overly upbeat, aring e accurate, one unaccounted for, that's very, very encouraging. >> reporter: well, absolutely right. you know, the story has dramatically changed. you know, i just spoke to the deputy fire chief as that news conference ended, and i said, listen, i just want to be totally clear about this. just want to make sure we're clear that you have one person who is unaccounted for. and he said, yes. that's what we believe at this time. so you have 181 who were transported to local hospitals. and then 123 passengers who made it here to the terminal. that adds up to 304 passengers. you have two people who are confirmed dead. that leaves one person at this point unaccounted for, wolf. and that's why we said last time we spoke with you that the fire chief, she wasn't clear at all about how, you know, she could

she's from shanghai and she talked about what it was like inside the plane. she also mentioned her 4-year-old son dissustain a broken left leg, but she was able to get out of the plane miraculously in a huge hole that she was able to carry her son and some of her bags out of the plane to get to safety. >> it sounds as though you were very calm throughout this. were you calm? >> sorry? >> were you scared at all? >> i had no time to scare. i had five family member in hospital. i needed time to take care of them. but yesterday night when i was in dream, yes, i was scared. i had no time to think. >> what kind of injuries did your son have? >> broke his left leg. >> how difficult was to get off the plane? >> not very difficult because we sit near the big hole in the plane tail. it's broken, yes. it's a big hole. and the passengers near the plane tail just walk out from this hole. >> you can describe the kind of passengers in the back of the plane in was it a group of high school students? >> yes, we had group passengers. i also see korean passengers because i sit

>> reporter: we know that the plane originated in shanghai which is why you had so many chinese nationals on board. as you say, we have heard from an official from the ministry of transport infrastructure and land that those two deaths did hold chinese passports. the other nationalities on board, 77 south korean and 61 you see citizens and one japanese. there are also -- there has been a flight ar taken off from seoul's international airport, a charter flight with a team of investigators, four investigators for the air safety board here. and asiana officials also, and there's another one scheduled this afternoon, that will be flying family members and more officials over to san francisco, so, one flight already taken off and one on its way. we are also hearing a little bit more from asiana about the pilot, there were four pilots paren apparently on that plane, and they operate in shifts in what is a ten-hour flight. the man piloting the plan, a man called lee-jong-in, one of the veteran pilots been flying since 1996, and a bit of information. as you say, it's the second of the two major a

at san francisco international airport. 307 passengers and crew aboard that flight which started in shanghai, connected in seoul and landed in san francisco. 182 people were taken to area hospitals with injuries ranging from critical to minor. and two 16-year-old girls were killed. the plane was coming in dangerously low and clipped a sea wall and shiring off its tale and skidding to a stop and catching on fire. >> it sounded like we were about to land. the nose of the plane goes up a little bit. and we start hitting, hitting hard. and then we felt like we were going up again. that's why i said we felt like -- he was going to pull one of those miss landing and go back up. and it did not happen. if we flipped, none of us would be here to talk about it. >> an official investigation will take months, if not years. we want to go to cnn's miguel marquez. what do we now know pending the investigation of the flight recorder and other things, what do we know that can be considered facts that will contribute to our understanding? >> reporter: a couple of important data points. passengers on the plane

so the plane originated i'm told from shanghai, china, with a stop in seoul, korea and the final destination san francisco international. undetermined at this time. >> can you once again clarify -- >> all right. there is a news conference also happening at one of the hospitals in the san francisco area. let's listen in. >> there were eight adults and two children. they were in critical condition. and i do not have an update on their status as far as i know they are still critical. after that time there was a seco second -- >> everyone good? okay. after the first wave of critically injured patients there was a second wave who came in from the scene. we received approximately 17 of those patients. i do not have a full breakdown. they are currently still being assessed and taken in. i do know they range in condition from critical to good condition. some have minor injuries. others have more serious injuries and they are all being assessed now. the types of injuries would include fractures, abrasions, and possible internal injuries which are being evaluated. we're not certain of the full spectru

. >> and flight 214 originated in shanghai before stopping in seoul, korea, the home base for asiana airlines. from there, a scheduled nonstop flight to san francisco. >> diana is in san francisco. what do we know from the officials there, either from the government or asiana airlines? >> reporter: well, asiana airlines, the ceo has given a press conference talking about what he knows. he says he doesn't think this was engine failure. this was one of their newer planes bought in 2006, this 777, and obviously, we've heard also from transport officials here that it would be easy to locate the black box, seeing as this plane crashed on the runway, but it may take as long as two years to actually fathom out what the cause is, and there are a team of korean investigators on route to san francisco right now to help the ntsb in their investigation. the ceo really just an abject apology to the people involved. let's just take a listen to what he said. >> translator: i am very sorry to worry families of passengers as well as our people. i bow my head in apology. >> reporter: he said that the

able to turn down the air-conditioning on yourself when you're downtown, maybe there is a teenager in shanghai during the same thing. grideb has made the extremely vulnerable to hacking and to destruction from the cyber-effects. that is not all. so therery century or is an electromagnetic pulse that is called an ejection from the sun. that is much larger than the ofmal solar flares, millions times larger. it has been over a hundred years since we last had one of these but i think most people who are -- studying these issues are definitely in agreement that our electric grid could be severely damaged and to the point of destruction by a single seller event of that type and we have not decided since we have not had one of these since the 1880's. we have not designed the grid in such a way as to withstand something like that. to make it even all it'll more unpleasant, sorry, there is another way to create an electromagnetic pulse of that sort and that would be with a nuclear detonation but it does not need to be a destination carried by a weapon that has any accuracy of all or shooting at a targe

s a tragedy on so some people i mentioned schumer, when he went to shanghai and had conversations about china, it was like he was talking to a different man. find anybody more reasonable and amiable. full of in washington, fire. >> he was the head of the young democrats. college editor of the paper. we had certain tasks. area this point, the one where i think a troubled u.s. now most focused is threat.a china has sort of state-sponsored commercial espionage. view? your talkhad the opportunity to with a person in the fbi who's one of the people in charge of the warfare. again, cyberwarfare. made said to him, he just t -- wasn't that long, about the terrible threat with cyberwarfare. i asked him -- what i asked him i said, isn't it true that -- oh, don't worry. i've proven that. but we don't talk about that. and -- and i agree with that. and the people i talked with ast week made the same point too. i think the point one, the i don't think the u.s. used a state or cybercommercial end. other may be off of the threat. it's a cyberattack. it's something with confidence-building measures and

when you went to shanghai, conversations in shanghai about china. it was like you were talking to a different man. he could not find anybody more reasonable. but back, the head of young democrats could sell was the editor. set on a certain path. and just wanted this point, the one area where i think the u.s. opinion is now most focused is the cyber threat, where china does seem to be different from others and having state-sponsored commercial espionage. what is your view of that? >> i had the average into the to talk with the person in the fbi who is one of the people in charge of cyber warfare and against cyber warfare. i said to a.m. -- he just made a talk about the terrible threat an influence on several warfare, many in china. i asked him, isn't it true that we are pretty get that to. hello, where the best. but we don't talk about that. >> i agree with that. people last week made that same point. i think one of the differences -- i don't think the u.s. uses state, cyber, or commercial ends. that seems to be china's distinctive traits. three cybe

those areas understand make an impact on world stage the world stage not when competing with shanghai and other metropolitan areas of rising nations their interleague and they cannot force of all the places around him are thinking. so a group of foundations in these communities got together and they said, what can we do to change our economy with the decline of manufacturing throughout the 70s and 80s that hit them hard. they say that we have been funding arts and culture and social issues and none of that is going to matter most people have jobs. they invested this to you suppliers and industries and they figured out how to harness the benefits but not the institutions like the cleveland clinic. like the health systems in akron to manufacturers and the noise and make them into these products. it is a hard thing to do, but the benefits are profound. we have seen this and most recently the obama administration chose to put one of its new manufacturing innovation institutions around the 3-d printing, which has the potential to completely revolutionize manufacturing in this country. so w

when he went to shanghai, had conversations in shanghai about china, it was like you were talking to a different man. you couldn't find anybody more reasonable and amiable and so on. but back in washington, full of fire. >> he was the head of young democrats in college. i was editor of a college paper. we were each set on a certain path years ahead. just on this point the one area where i think a elite level u.s. opinion is now most focused and suspicion of china is the cyber threat where china does seem to be different from others having sort of state-sponsored commercial espionage. what is your view of that? >> i had the opportunity to talk with person in the fbi who is one of the people in charge of cyber warfare and, against cyber warfare. and i said to him, he just made a talk to a club i belong to about the terrible threat and influence of cyber warfare mainly from china. so i asked him afterwards, i said, isn't it true we're pretty good at that stuff too? he said, oh, don't worry about us. we're the best. [laughter] we don't talk about that. and -- >> i agree with that and the

they couldn't really make it dent on the world stage not when they are competing with bangalore and shanghai and the megametropolitan areas of the rising nations. so they understood that they are interlinked economically. cleveland can't flourish if other places around that are sinking so they got a group of foundations and these communities got together and they said what can we do to change our economy? the decline of manufacturing throughout the 70s and 80s really hit them hard. these foundations that we have been funding arts and culture and social issues. none of that is going to matter and less people have jobs. so they invested in ways to connect their small and medium-sized manufacturers to new suppliers and new industries. they figured out how to harness the benefit, not the benefits but the institution like the cleveland clinic, lake summit health systems in akron to manufacture the entrepreneurs who wanted to take the ideas being generated in these institutions and make them into usable products. so it is a hard thing to do but the benefits are profound. so again in northeast ohio

so for some people when they went to shanghai the had the conversations. you couldn't find anybody more reasonable and so on. but back in washington. >> i was the editor of the college paper so we had a certain tasks. >> the one area where the opinion is now the most focused is the cyber threat where they seem to be different from other states sponsored espionage. what is your view of that? >> i had the opportunity to talk with a person in the fbi who was one of the people in charge of the cyber warfare. and i said to him there is an influence on silo warfare meaning from china. so afterwards i said is it true [inaudible] [laughter] but we don't talk about that. >> i agree. people made that same point, too. i don't think the u.s. uses the state cyber for the commercial ends. it seems to be the distinctive trade. they used the nuclear weapons and the soviet union with confidence-building measures and all that. let me ask you different -- >> we are just having the two sides. the chinese -- last week the falafel of the response was the sort of thing that we n

., 16,000 dead pigs floated down a shanghai river in march. smithfield's larry pope recently said open your refrigerator door, look inside. nothing is made in china because american agriculture is the most competitive and efficient in the world. mr. pope is wrong. china shipped four billion pounds of food to the u.s. last year including l80 percent of the tilapia and more than 10% of frozen spinach. supermarkets displace food's country of origin. processed reported foods require no such labeling. ip protection in china is also poor. increased counterfeit food products in china will lead to loss of u.s. export markets. china is encouraging buying foreign food assets and farms. smithfield is the first, and we should prepare for others as a matter of national interest. for high that smithfield -- china, smithfield probe voids benefits. -- provides benefit even to shareholders. in a conference call with analysts, the managing director said we want the business to stay the same but be better. today mr. pope echoed the sentiment. neither explained h

how likely is it that the adoption of smithfield's processing technologies will allow shanghai, will allow shuanghui to export pork to the united states? >> well, let me -- >> because, i'm sorry, i'm concerned as chairman stabenow is, you know, of what can happen with the technology and that it does not create american jobs, it really goes the other way. so if you would discuss that and then mr. slane. >> senator, i think that's a, the concern that so many have posed is what's the opportunity that chinese product of what some would be considered a lesser standard are going to be imported back into this country. i was very clear in my testimony this is all ant exports. and, in fact, chinese products cannot be imported into the united states today, and they have no plans and no applications in place. and i have the highest respect for what the u.s. department of agriculture does in this country. and so in any event if any application was ever done, all of that product would be subject to usda standards just as, just as products manufactured in the united states are today. so i wouldn't

your, from your cell phone when you're downtown, you need to think that maybe there's a teenager in shanghai doing the same thing with the air-conditioning for your phone or for your house or something else. the web has made the grid extremely vulnerable to hacking and to disruption from cyber effects, and that's not all. .. >> to make it even a little more unpleasant, there's another way to create an electromagnetic pulse of that sort and i would be with a nuclear detonation but it does not need to be a nuclear detonation carried by weapon as any actress at all or shooting at a target on land. at a city or anything like that at all. it me don't explode when and low-earth orbit, and we now have north korea has launched one satellite and had three nuclear tests. iran had launched three satellites, and someday before too long, my hunch will be, will have a nuclear test. if you have a satellite and it have a nuclear detonation, even a very simple one, having an electromagnetic pulse generated at 100, 200, 300 miles, wherever, over an area can produce either a total or a very, very close to tota

we know that the shanghai -- the theme park will be opening at the end of 2015. what would be the driver for disney which, you both are correct, much bigger company than just movies. >> well, a price tag is 12 months out. so the multiple gets rolled forward. earnings growth and you will see a higher -- you will see a higher stock price. the reason we are neutral is because that is the case for all of the companies. almost all of them. so we are not expecting earnings to climb for disney air anything like that. they're is a time and place. liz: quickly. no right down? >> we are actually expecting a write down and we have modeled at about 100 million. we will see where it lands. hard to project because there are some other international territories still and other studio windows that could monetize. liz: a neutral. anverweight. a pretty interesting report on this one. if you want to find that and reid, thank you. we appreciated. disney stock not getting heard. a company that does not seem to be smacked down too much. here is something that will be better than a mov

the shanghai composite reacted positively on the news closing up 2% and for investors this is encouraging news that made slowing growth. and support expansion, continue to invest in construction if needed. and exports falling last month since the financial crisis. he is knownore candid about the state of the gdp, up and man-made and unreliable. and diplomatic cable by wiki leaks. this is a shift from 8% and something we should be watching for but this will be a number that is a very important to watch as we look at stability across the country. dagen: thank you so much. joline kent in the fox business news room. joining us is meridien equity partners, big names reporting "after the bell" today. you cannot not what chapel. >> it is the household name. don't care where you go but somebody within your reach jones an apple product. we will get earnings today, interesting susie how stock reacts. it is 450, the only problem is the expectations are always so high for apple. numbers get diluted and lost in their production and what the revenue is moving forward so sometimes it gets shortchanged b

even today, shanghai opened up a nice session in futures to coincide with ours. they traded 150,000 contracts. adam: you are going down the road that gold will come back. >> yes. i think gold will eventually catch up with inflation. right now, there is no inflation. adam: the open interest numbers that you were just siding tell me this is where you would want to get in. >> well, just last week people were asking themselves did they missed opportunity below 1200? we did get as low as 1179. it has also been the low for open interest. adam: okay. you actually see a potential for $1000 an ounce. >> the price of gold is a barometer of the well-being of the world. for the most part, now, gold has not been so important because of the strength in the stock markets. a lot of the people bought gold etf and they were latecomers. it seems that they are pretty well out of it. adam: would you say son, daughter, gold get back in? >> at least 5% of your portfolio. you have car insurance and you hope you never have used it. adam: even if we were to flirt with that $7000 bottom, i

worst were, well, july, 2011 cargo flight bound for shanghai that had taken off from south korea crashed in south korea apparently had a fire in the cargo department. at two crew there died now in july shortly after the airline lost it was a boeing 767 and that had taken multiple landing attempts due to the particularly bad weather at the time. airline there lost 66 passengers and a few crew as well. the industry surprised this airline considers it's record and boeing wanted to get involved being given the reputation being trusted in the sky it will want to be looking into what went wrong here. the investigation is ongoing. back to you. >> all right, thank you so much, dominic. >> joint statement being released by department of transportation and faa saying both agencies are working to help the ntsb with the investigation now ongoing. going on to say our thanks go to first responders and thoughts and prayers go tout passengers and crew of the crew and families. a team from the national transportation safety board on its way to washington from washington rather to san francisco right now.

worst were, well, july, 2011 cargo flight bound for shanghai that had taken off from south korea crashed in south korea apparently had a fire in the cargo department. at two crew there died now in july shortly after the airline lost it was a boeing 767 and that had taken multiple landing attempts due to the particularly bad weather at the time. airline there lost 66 passengers and a few crew as well. the industry surprised this airline considers it's record and boeing wanted to get involved being given the reputation being trusted in the sky it will want to be looking into what went wrong here. the investigation is ongoing. back to you. >> all right, thank you so much, dominic. >> joint statement being released by department of transportation and faa saying both agencies are working to help the ntsb with the investigation now ongoing. going on to say our thanks go to first responders and thoughts and prayers go tout passengers and crew of the crew and families. a team from the national transportation safety board on its way to washington from washington rather to san francisco right now.

it was in shanghai. it was just two crew members on that flight that were killed at the time. and body count because cargo aircraft particularly have a small number of crew, usually only two. it was taking off from the inchon airport and it was crashed into the ocean in south korea. apparently it had reported a fire in the cargo compartment. a history of fire there was one of the boeing planes. as the investigation tend to find out appears to be different circumstances individual circumstances. i'm not trying to elude to the fire that could be the same sort of cause the fire today up in san francisco. the 777 itself has a good safety record. there has been 1105 put in service and low number of incidents. one of the reasons it's popular because of the range but also because of the safety record. it can take a large number of people and few incidents involved in that aircraft which is why boeing has been able to sell so many around the world. >> rick: as we take a look at the debris. you saw just a minute ago that colorful piece of debris right at the tip of the runway that we b

the boeing 777 from soeul, it originated in shanghai, china with a stop off in south korea and headed to san francisco, crash landing this afternoon, video showing the fusel age burned away and tail gone and engine missing. 291 passengers were on board. the san francisco fire chief confirmed two people were killed and others unaccounted for and the mayor saying that as well. we are hearing for more witnesses of the crash of the boeing 777 including one woman who was on board, on board of another plane quarter mile of the asiana flight 214 when it made a crash landing. she managed to snap pictures and she joins us now. margaret, what were you thinking when you saw the plane coming down in flames? >> the whole thing was pretty surreal. everyone on my plane was just in shock. 0 i am in the airport and it is loud. >> margaret, you are breaking up. if you could stand stillbe able connection a little better. what were you saying in reference to the first initial response. >> it was surreal and we were in shock when we first saw it. >> you were about a quarter of a mile on board another plan

>> geography is a stub bon thing and shanghai is a long way from alberta. there's now would to get that oil to china. >> my point is you're saying don't pull crude out of the ground because it may eventual he refine it? prices will be 10, 15, $20 a gallon. >> we think that tar sand sneads to stay in the ground. it's destroying a forest. >> you're trying to tell me, if we don't build the keystone pipeline, canada isn't going to sell it to somebody else? >> that's what goldman gold goln sachs does. >> dot bob dean thing canada is going to say, if it's not going throw keystone we're not going to pump it out of the ground? >> well, the fact is, expanding that tar sand production depends absolutely on the keystone pipeline that's what we're todd by wall street, by the industry. >> canadianes have already said, if you don't want it, we'll sell it to somebody else. if that happens we have to find oil from somebody else to buy. it's our neighbor. it's a friendly neighbor. >> we're great neighbors. we don't have better friends than the canadians. 5,000-mile border,

an incident on flight 214 and originated in shanghai and continued on to soeul on the way to san francisco. the boeing 777 aircraft and manifest with the number. 291 passenger and 16 crew for a total of 307. we have updated on the status of those passengers and crew and for that, i will turn it over to assistant deputy chief dale carns. >> good evening. of the throw 0 sen souls on board. we had 181 transported to the local hospitals and of that 18149 were serious and in the initial victims transported from the scone. additional 132 were transported in the incident and triaged as they were the minor casultities. and we accounted for 123 people here in the terminals of the airport that were uninjured and remained in place and at this time, we have confirmed doa passengers on the aircraft. >> so those add up to 306 and we are working to confirm the last one. dale mentioned we have 123 individuals uninjured and processed in the airport as we speak. dave? >> thank you. at this time we are working with the ntsb on determining the exact cause of the incident. there is currently and no indication

and asiana flight 991 for shanghai. that was taking off from south korea and was operating a boel 777-400. it crashed and two of the crew were killed. the worst loss of life was 66 passengers and two crew died back in july 1993 when one of the boeing 777-500's crashed. it was the southwestern tip of the korean peninsula, there has been a small handful for the airline what is also up to today a particular aircraft that has a good safety record around the world. >> arthel: thank you very much. we want to let you know we are waiting for a press conference at reagan national airport. n.t.s.b. is going to brief us on information they have at this juncture on the crash landing at san francisco's international asiana's flight 214. ten hours and 23 minute flight from seoul, south korea to san francisco. at as dominic, it's, indeed, the long range plane that is a workhorse of those long range flights scheduled to land at 11:26 this morning in san francisco. the airlines is one of two majorer south korean airlines. you have korea

we know this flight was a very long flight coming in from shanghai. a very long flight. you can see the layout of the plane here, from the front to the back on this asiana flight 214. you bring up a point of a near perfect record. >> it has had crashes. >> a crash from heathrow, coming in from beijing. has odd similarities. it crashed as it was approaching the runway. they were able to determine a few months later after the investigation there was ice blockage in the fuel line that led to that crash. we don't yet know and the asiana ceo said there were no mechanical problems with the flight. we don't know why the crash happened so close to the runway as did the one five years ago. >> they always said take off and landing the most dangerous time of the flight. i must say, when you're flying and 10 seconds away from landing, you think you're in the clear. that's the moment you're exhali exhaling, saying, okay. >> the tape went on, hit the sear the plane crashed the tape went on in the cabin saying we have landed safely, please keep your seat belt on, which was jarring. >>

it had flown in from shanghai prior to than, when it slammed into the run way. >> two 16-year-old girls were killed, both from china. >> six people right now in critical condition. two of the four run ways at sfo remain closed this morning . if you're flying out, expect long delays today, up to nine hour. >> our breaking news coverage continues this morning. coming up, we are going to hear from san francisco police chief, joanne has-white-- hayes-white. >> we're beginning with lots of low clouds around the area. that will change. the forecast is after the break. ,,,, "...all of i sudden i looke dout. little wobbly. didn't look like planes do when landing. the asiana boeing 777 skidd onto the runway, clipping 's tail. >>> if you're looking for something to do this afternoon, how about the fillmore festival? ,,,,,,,, >>> all of a sudden, i looked out, and i see' plan coming in. it was wobbly. it didn't look like planes do. >> eyewitness news account there. the asiana boeing 777 skidded on to the run way, clipping its tail and blew up lately. the two young passengers that died for 16-year-

shanghai with a high of 38. you are going to be seeing afternoon thunderstorms pop up here. but, wow, look at that, about 10 degrees higher than down here towards manila, where we're seeing 29 on wednesday. now, let's look over towards the americas, what's going on here? well, the severe weather spot is right there in the center of the screen. it is this large area of thunderstorms pushing out there from kansas into oklahoma, extending out through arkansas and missouri. expecting about 40, 80 millimeters of rainfall with this going through your day on tuesday into wednesday. before it starts to weaken out, as it moves into kentucky and tennessee, pushing off there towards the east. so that's the good news. it does look like the worst of this is starting to get over with as it pushes off there. but then, we have this cold front pushing in out of canada. and that's going to trigger up some thunderstorms into the western great lakes over towards chicago as well. you have flying plans out of o'hare, keep an eye on that, especially by wednesday evening. you have the daytime heati