SUPPLIERS CUT THEIR FORECAST.
>>> NOW THIS ALIBABA SINGLES'
DAY BROUGHT IN RECORD
$38.4 BILLION IN JUST 24 HOURS.
WE HAVE MICHAEL PILLSBURY,
AUTHOR OF, THE 100 YEAR
MARATHON.
MICHAEL, WHAT DOES IT TELL YOU
ABOUT THE CHINESE ECONOMY?
>> I THINK PEOPLE THINK IT IS
GOOD NEWS THAT THE CHINESE
ECONOMY IS STRONGER THAN WE
THOUGHT.
THE CHINESE ECONOMY OF ALL
STRESSES THEY'RE GETTING READY
TO MAKE AN OFFER TO PRESIDENT
TRUMP.
THEY MEET IN JUST 17 DAYS IN
BUENOS AIRES.
THE OFFER HASN'T COME YET.
THEY'RE ACTING LIKE THEY'RE
DEALING WITH A POSITION OF
STRENGTH, CHARLES.
THAT SURPRISES ME TODAY.
THEY HAVE A NUMBER OF MESSENGERS
COMING.
THEY MET WITH HENRY KISSINGER A
COUPLE DAYS AGO.
THEY HAVE THE BILLIONAIRES
SUMMIT WHAT THEY CALL KNIT
SINGAPORE.
THOSE PEOPLE COMING BACK WITH
MESSAGES.
IT IS MESSAGES OF THE STRONG
ECONOMY IN CHINA.
WE WILL MAKE AN OFFER, BUT WE
MAY NOT MAKE IT UNTIL THE LAST
MINUTE JUST BEFORE BUENOS AIRES
BEGINS, THE G20 BEGINS.
CHARLES: THE ALIBABA NUMBER IS
IMPRESSIVE BUT THE RATE OF
GROWTH AT 27%, WELL BELOW LAST
YEAR, 39% IN 2015.
THEY GREW AT 91%.
ON FRIDAY OVERNIGHT WE HEARD THE
AUTO SALES WERE DOWN FOR
OCTOBER.
THIS COULD BE THE FIRST YEAR
EVER THEIR AUTO SALES ARE DOWN.
>> RIGHT.
CHARLES: WE KNOW SOME OTHER
THINGS, THEY'RE FORCING BANKS TO
BUY CORPORATE DEBT SO THEY HAVE
GOT SOME SERIOUS ISSUES, NO
DOUBT ABOUT THAT THEY CANNOT
AVOID THOSE SERIOUS ISSUES, CAN
THEY?
>> AS YOU KNOW, CHARLES, THEY
HAVE THE POWER TO CONCEAL THE
REALLY BAD NEWS.
SO SOME OF THESE STATISTICS FROM
MY POINT OF VIEW ARE SUSPICIOUS.
WHAT THEY ARE TRYING TO DO IN
TERMS OF PRESIDENT TRUMP IS
PROJECT THE IMAGE OF STRENGTH.
WHETHER THAT IS REALLY TRUE IS
HARD TO KNOW.
YOU THINGS YOU CITE ARE QUITE
IMPORTANT.
I THINK THEIR FOREIGN EXCHANGE
RESERVES, HOWEVER WHAT THEY'RE
BANKING ON.
IF THEY HAVE SOMETHING LIKE
3 TRILLION IN FOREIGN EXCHANGE
RESERVES, THIS GIVES THEM A HUGE
CUSHION THAT FRANKLY MOST
ECONOMIES OF THE WORLD DON'T
HAVE.
CHARLES: LET'S POINT OUT THEY
HAD 4 TRILLION TWO YEARS AGO.
SPENT A TRILLION PROPPING UP
THEIR CURRENCY.
>> THAT IS EXACTLY RIGHT.
CHARLES: THE IDEA IT WOULD BE
GOING DOWN WOULD BE KIND OF
CRAZY AFTER SPENDING A TRILLION
DOLLARS.
I WONDER WHY I WAS ONLY ONE
THOUGHT THIS WAS A OLIVE BRANCH.
FRIDAY MORNING, CHINA ALLOWED
AMERICAN EXPRESS, GAVE THEM OKAY
50/50 JOINT PARTNER TO BUILD A
NETWORK.
THIS WAS PROMISED IN 2012.
ALL OF SUDDEN THEY DO THIS WITH
AMERICAN EXPRESS.
I THOUGHT THAT WAS A OLIVE
BRANCH.
A SMALL SIGN IF YOU WILL GOING
INTO THE G20 SUMMIT.
>> THIS NEW NUMBER ABOUT HOW
MANY SERVICES THEY'RE GOING
IMPORT OVER THE NEXT FIVE YEARS.
CHARLES, I THINK YOU HEARD THIS
NUMBER, IT IS 2.5 TRILLION.
IF YOU'RE GOLDMAN AXE OR WANT TO
DO MERGERS AND ACQUISITIONS IN
CHINA, 2.5 TRILLION IN SERVICES
HOW MUCH OF THAT WILL GO TO THE
JAPANESE OR THE EUROPEANS?
AMERICANS WANT A BIGGER THAT OF
THAT?
THAT IS ONE OF THEIR NUMBERS.
THEY HAVE DANGLED SOME OTHER
NUMBERS RECENTLY THAT IMPLY A
STATE-OWNED ENTERPRISE REFORM.
THEY'RE NOW SAYING STOP 13 STATE
OWNED ENTERPRISES WILL FORM NEW
PARTNERSHIPS WITH FOREIGN
COMPANIES TO TRY TO MAKE MORE
COOPERATIVE AGREEMENTS AROUND
THE WORLD.
CHARLES: RIGHT.
>> THEY HAVE A SERIES OF THESE
THINGS WE'RE SEEING TODAY, THAT
AMERICANS ARE COMING BACK FROM
THESE CONFERENCES.
THERE IS ONE IN BEIJING A BIG
ONE IN SHANGHAI.
ANOTHER BIG ONE IN SINGAPORE.
EVERYBODY IS BRINGING BACK THESE
CARROTS THAT PLEASE, PRESIDENT
TRUMP, DON'T PUT THE TARIFFS ON
NEXT YEAR BECAUSE LOOK WHAT
AMERICAN COMPANIES ARE GOING TO
HAVE WAITING FOR THEM.
BUT AS YOU IMPLY, THIS MAY BE A
TRICK.
WE DON'T KNOW IF THEY'RE REALLY
GOING TO DO THIS.
CHARLES: I GOT TO GO JUST REAL
QUICK, MICHAEL, DO YOU THINK
WE'LL GET A DEAL OR AT LEAST THE
MAJOR STEPS TOWARDS A DEAL AT
THE G20 SUMMIT OR IS IT TOO
EARLY TO KNOW?
>> WILL DEPEND HOW TOUGH
PRESIDENT TRUMP IS AND HOW
SERIOUSLY HE TAKES HIS PROMISES
TO HIS BASE.
THAT IS WHAT IS GOING TO COME