emily: emily chang ins good. this is "bloomberg technology." topic at, 5g is a hot this years m debussy. the uncertain future of huawei continues to overshadow the industry. we will bring you the latest. signing summit. why president trump is preparing xi int president mar-a-lago and what it means for the upcoming tariffs. privacy practice. waiting on theot

federal government to regulate big attack. why its proposal has companies like facebook fighting back. first, to our top story. barcelona is underway in spain. this years event may end up being more flash than substance. companies are touting 5g technology but with little to show in terms of large commercial uses or consumer uses. another story to dominate the conversation this week is the future of chinese tech firm huawei. as we have been reporting, a number of countries around the banned huawei. the u.s. has charged the firm with allegations of stealing trade secrets and bank fraud relating to business and iran. that has not slowed the company down. huawei has announced its own folding smart phone to challenge the one unveiled by samsung joining us to discuss is bob o'donnell who is in barcelona where it is taking place. and with us is bloomberg

intelligence reporter. bob, you are at samsung's unveiling last week. set the scene in barcelona. you said, they are talking about 5g like crazy. there are quite a few phones that have been announced with 5g modems from about six or seven different vendors. the big news is around the foldable's. galaxy fold samsung and this new huawei one. very interesting devices. one fold in, one folds out. the designs are different. but the excitement level around foldable's is tangible. people are ready for something new and different in the smartphone market. they are anxious to see these. at the price point air act, they

will not sell in huge volume spirit but it sets the tone for the future. that is interesting. emily: are you excited about foldable phones? >> no. i'm not. very simply, i'm not. air act, they will not sell in huge volume spirit but it sets the tone for the future. that is interesting. from a corporate perspective, and from a consumer perspective, i think the consumer is interested about these new styles, these new options, new features. is the value of these phones going to make the market small as bob has mentioned. one of the things that we want to understand is what makes the market bigger? 5g alone cannot do it. 5g is not really here in 2019. 2020 we may see more traction. new and additional features move the market a little bit. high-end, the market is lengthening. people are holding onto their phones for three years, even longer. at the low-end end, some of the features are creeping in. but it is not enough to offset the weakness in the high-end. all in all, the smartphone market is going to be lackluster. we think there is more downside

to numbers from companies like ibc or even gardner. to be quite honest, that is one of the reasons i am not there this year. emily: i want to talk about what people are saying about huawei. we have canada, japan, considering the role of huawei in their future networks. bloomberg spoke to a number of different global leaders at mwdc. --mwc. the contention is fears around their inclement being used for espionage in the u.s. has pushed back on these countries to encourage them to ban huawei equipment. listen to what these executives at mwc are saying about huawei. >> we have to plan for every eventuality. huawei is an important part of the u.k. infrastructure. >> we really like to become tractable on that issue. are a handful of

technology companies who are capable of supporting companies like us. so far, huawei has been a trusted partner. >> we need to avoid any delay because [indiscernible] from their that some of these he or he in tech leaders are taking a less antagonistic stance toward huawei. is that a fair read? bob: i think that is a fair read. you have to remember a lot of the infrastructure, that equipment has been there for years. and it is very expensive to replace p can't just rip this stuff out. any actions that will be taken toward huawei will take several years. realistically. there is that practical side of the question as well. you are right, generally speaking, in europe, there seems to be more willingness to accept them. products are sold here, they have decent market share. huawei is the number two smartphone seller in the world, just after the u.s.

we tend to think of them to philly. but i would say in general, there is focus on huawei. a lot of discussion there. at the end of the day, i think there will be have to be sick -- serious security assessments done. people who are willing to see the answers. emily: we were speaking with the ceo of another company who is trying to build a new mobile network in japan. he said he decided not to use ofwei equipment because concerns around espionage. if it is already in existing networks or existing of concerns around espionage. partners, do you expect some of the easier can countries to stay the course, not take the action of banning huawei as the u.s. has done? anand: i agree with bob's point that it is not as easy as -- not as easy to rip and replace. as you think through 5g and you think through the next 5-7-year acle, he perhaps think for

more distributor strategy. this is the time to do it. in 2019 and 2020, as you lay the groundwork for wide distributed infrastructure, anthony's who telco providers and perhaps have footprints and more than one country are going to think emma do i want to put all of my chips on one company or do i take a more distributed approach relative to how i did things for 4g? the landscape, the architecture of 5g make permit that architecture. there will be more steady, more measured. i would imagine the way the u.s. is leaning on its allies, perhaps they take a more security mitigated approach. regardless of whether huawei comes to pass or not. anand in new york and

bob in barcelona, thank you both. coming up, trump, the president signals a signing summit. bob in barcelona, thank you both. why the president seems to be optimistic about the fate of trade talks with china. that is next. this is bloomberg. ♪ bloomberg. ♪

emily: president trump sounded optimistic monday about a trade resolution with china. listen to what he had to say earlier at the white house. it looks like it looks like thy will be coming back quickly again and we will have another summit we will have a signing summit which is even better. hopefully we can get that completed. but we are getting very close. emily: later in the day he took to twitter to reaffirm he will implementation

of tariffs saying, china trade deal and more in implementation of tariffs saying, china trade deal and more in advance stages, relationship between our countries is very strong. i therefore agreed to delay u.s. tariff hikes. let's see what happens. for more on the business the trades of discussions, i want to get to washington where bloomberg u.s. economic editor is standing debt -- standing by. he ends the the trade discussions, i want to get to washington where bloomberg tweea question mark. what does that mean? or not they whether can hash out an agreement. the previous rounds of talks were positive. they made a lot of progress. there is still apparently daylight between the chinese negotiators. there are important provisions to work out. they are closing to a deal but they do not have an agreement yet. emily: i have a chart on the bloomberg which shows a spike in chinese stocks over the last few weeks. is this because of optimism around these there is still apparently daylight between the chinese negotiators. talks? randy: i think it probably is. it one of the rhetoric coming

out of the talks has been positive both from donald trump and from the chinese. there has been progress on specific provisions. treasuries secretary mnuchin mentioned over the weekend they #out an agreement on. see manipulation to prevent that else mentioned the chinese agreed to buy out more soybeans. the fact that they are making progress is very positive for the chinese economy. and the fact that they will not implement tariffs starting this week is great for chinese traders. you see that in the market. emily: how much you think this progress is due to both presidents concerns about the economy's in their own country? have been general, we concerned about a broader economic slowdown in china. certainly there are pockets of folks in the united states who are not faring well. randy: i think that is exactly right. there is a lot of concern on both sides that this trade war

is taking a toll. china's a slowdown in economic activity and we are seeing soft spots in the united states in terms of consumer sentiment, factory indicators are also looking weak. that reflects concerns about tariffs. both sides have a strong incentive to strike a deal based on that outlook. is a know, donald trump lot of attention to the stock market. the stock market is sensitive to stocks.ome of these a lot of people speculate that is why today he repeated on more than one occasion that talks are going well. a lot of people see that as his attempt to fuel the stock market so he can boast about that to his base. emily: with the president said to hold another summit with north korea's kim jong-un, china will likely play a huge role. does that leave uncertainty in this equation? think it definitely does. it is very complex. apparently the chinese and north koreans have a close relationship.

if the talks do not work out between president trump in the north koreans, he could potentially blame the chinese and punish them on the trade front with these negotiations. on the other hand, the chinese could punish donald trump if he does not meet them halfway in these trade concessions by not giving him a deal on north korea. it is a complex political negotiation going on. it is definitely worth keeping an eye on the summit this week with north korea to see how that could play into the trade negotiations. emily: i know you will continue to cover for us. let's see if that question mark can be resolved. randy woods, thank you so much for stopping by. techg up, america's superpowers continue to push for a global footprint. could there be a home-field advantage to focusing on the good all usa? -- good old usa? we will discuss next. this is bloomberg. ♪ g. ♪

emily: the former ceo of pepsi

is the newest memory -- new was board of amazon's board. this is according to a regulatory filing. he becomes -- she becomes the fifth woman on the 11th person board. amazon pledged to increase the diversity of its board. she served as ceo of pepsi from 2006-2018. for years, big u.s. tech companies including amazon have pushed to gain a global footprint. one of the only companies successful in doing so is apple. the iphone maker is one of a handful of companies to generate significantly more money overseas than in the u.s. bloomberg opinion share said companies like google and amazon have struggled to grow internationally, relying on the u.s. is ok. she joins us now to discuss. bigger picture, who is doing well and who is not doing well abroad? >> it is an interesting situation. companies, the internet companies like facebook and google's parent company off of

it, they do have a lot of users outside of the u.s. a significant share of the revenue continues to be generated inside the united states. the issue here is that if you look at companies like facebook and google, they are generating most of their money from advertising. microsoft is generating most of its money from selling technology to businesses, also a big market for amazon. in those markets, the digital advertising and business technology sales, the u.s. is by far the largest market in the world. numbermmerce, china is one. the u.s. is number two. as we know, china has not been an hospitable internet market for u.s. technology companies. why is amazon so reliant on sales in the u.s. and is that a danger? is that an achilles heel? shira: i think it is interesting. to my surprise, amazon has gotten more reliant on the u.s.

in the last five years rather than less. part of that is because of the success with all kinds of customers, a large portion of the spending is in the u.s. americannorth e-commerce sales are growing faster than e-commerce sales outside the u.s. for the last couple of years. amazon's total sales last year comes from the united states. of thewhat about all money that amazon has been pouring into india and other international markets? shira: i think that is a lot about the future. right now, relatively small. emily: so, apple meantime has been doing well. much of the concerns we have been talking about sales in china. will apple's future international growth be as strong? to see that.hard the issue for apple is the biggest smartphone growth markets are places like india and vietnam where apple does not look like they are in a great position.

that their prices are relatively high compared to other for smooth -- to after smart phone companies to they have not had a willingness to tailor this products for countries needs. that puts them at a disadvantage. in places like india. emily: when it comes to google and facebook, do you foresee that their reliance on the u.s. will ever change? be -- it is going to don't think so. none in the short term. the issue is the biggest pool of advertising in the it -- is in the united states. yes, that market is growing more slowly than the explosive advertising markets including china. but the u.s. is still by far the largest market. those companies are positioned well for the future, if and when you start seeing large advertising markets in the developing world getting bigger as a share of total. china is the big hole for them. emily: they may never have

access. shira: they may never be able to access china. they may never be successful there. emily: i want to get your thoughts on this new amazon board member adding a fifth move -- fifth woman. you remember the shareholder pushback about lack of diversity on amazon's board. they have answered some of those protests. what do you make of the choice? shira: in addition to the board diversity issue, i think she is too a really great addition the board, given her long experience at pepsico. she as a former consumer product ceo, knows what the challenges are of being a traditional company that is trying to pick toto the e-commerce -- pivot the e-commerce world. emily: speaking more broadly, amazon included, what do you see as the international financial picture of these u.s. tech companies, let's say in the next

five years? how much actually changes? it is hard to see it changing materially in the next five years. amazon might be the exception. we could start seeing some of those outside the u.s. e-commerce markets like india, where they take off. advertising or if you are microsoft, depending on sales, the u.s. is still just this huge sponge of revenue for those companies to take advantage of. i don't see that changing, even if again the majority of users for companies like facebook and google are not in the united states. that is still where the money is. emily: outside of apple, what are the u.s. tech companies that are doing well abroad or getting a greater portion of their sales abroad? shira: this is all relative. both facebook and google are generating a little bit more than half of their revenue outside the united states.

that is impressive. the hardware companies, the business technology hardware companies, have tended to do well in places like europe. if you think about ibm or cisco or oracle, those companies do well abroad, as do the chip companies. intel andlike qualcomm. everybody needs computer chips no matter what country you're in. those companies are well-positioned. if you look at the giant internet companies and e-commerce companies, it is a harder sell outside the united states. at least in terms of their finances. international growth considered, you and i have been talking over the last several weeks and months about tech lash. u.s. consumerinst tech companies. these companies have lost hundreds of billions of dollars in market cap value over the last several months. do you expect them to recover that over this year or are we at a new normal? you have seen some of the stock prices of the

giant internet companies come back from that swoon we saw starting in september or october last year. there certainly has been a recovery. i think what we have seen in terms of the backlash to big technology companies, that is a permanent fixture of life for these companies. it does not necessarily mean that their market value will crater or go to zero. this isoes mean that now the number one risk factor for every big technology company. is this increasing risk of or userry pushback, anxiety, or user-defined should come as a result of their size, power, missteps involvement in manipulation and things like that. emily: right. certainly going into 2020 campaign season already, much to be determined. thank you as always for joining us.

you may have heard a collective sigh of relief from american theater owners after the oscars. green book was named best picture, beating out aroma. it would have been the first streamingre for the service. netflix tried not to rock the boat too much. it released roma and a few theaters. theater owners were not happy with that strategy. pellet gun has chosen goldman sachs and taste to lead its ipo. it could value the company at more than a billion dollars. coming up, california takes the lead when it comes to protecting user data online. what the state has planned to let you take on big tech. that is next. later in the show, buffett tax -- tech position. why it is scared off by oracle. we will discuss. this is bloomberg.

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the tech world is waiting to see what congress will propose when it comes to protecting user privacy. california is not. the state is looking to strengthen the california consumer privacy act and let consumers know directly after the likes of google, facebook and more when they break that law. the measure would allow consumers to successfactors when that happens. it is a move that could signal an onslaught of class-action lawsuits. it is one the tech industry opposes. we had the senior counsel for common sense privacy.

this law passed but there are details still being worked out. what is happening now? passed018, they unanimously. 2019 how itde in would be enforced. one of the big proposals we saw this week on friday was this right to private action. if passed, it would prevent -- permit consumers in california who think that their data has been distributed without consent to suit for monetary damages. there are a number of other forosals like the right consumers to find out how much of their data is worth. they could also gain access that -- to the data and know how it is being distributed down the line. on thef proposals are line. >> does the support some of the

stronger part of the law? >> we expect to the efforts by .he industry to weaken this we will oppose it but we are very supportive of strengthening efforts. what are the tech companies lobbying for? they opposed the law initially. ultimately, everybody was on board. what are they lobbying for? >> against the right to private action. in a committee hitting -- hearing, they said this would be a bonanza against the industry. there would be so much litigation that it would be tough to come out from underneath from it. that is a big no-no for the industry. programss to loyalty they want to protect.

there was concern that they would be discriminatory. >> if the law passes, what would change for me as the user? the private right of action? passes, you as a california resident would be able to take a company to court if they sell your data when you're told them not to. if they don't let you delete it or access your own data. bycould this lobby overruled federal odyssey legislation if it comes? legislation?

kartikay: there could be a scenario where everything the lobbyists are fighting for in sacramento could be no invalid. it, thisnderstand could be null and void. >> what do you know about the back and forth between these companies and lawmakers? and what could ultimately hand up on the table? they want something that will prevent allstate legislation. there are some people in congress who are supportive of that. who likee other people federal legislation but once a baseline. that is a real fault line. it we see a private right of action expanded income appointed, companies will be clamoring even more. it will prevent states from offering john roe provision. >> kevin newsom of california is

something that would protect the data. doesn't make sense? -- does it make sense? : i am not sure that he has both specific on a plan right now. he talked about ensuring that consumers know how much value they are providing to companies with their information. we think transparency and knowing what you are giving up -- you're not really getting these services for free. that would be a good step for consumers. to have some awareness of what they are buying. >> i know this is something that you will be continuing to follow for us. we will continue to chart progress on this law. coming up, cloud confusion, why why warren buffett says he does not understand the cloud computing business. why this president says five

jeep will become critical infrastructure. this is bloomberg. ♪

>> last year, berkshire hathaway entered>> a $2.1 billion stake in oracle. by the fourth quarter, it was out of the oracle business altogether. why? warren buffett says he does not understand the cloud computing business. his previous experience with ibm out with that decision. he discussed -- to discuss further, we have catherine. she covers berkshire hathaway for us. he does not understand cloud computing? >> it is not a complete shocker.

investmentsed tech at berkshire. normally they will get into a stock and stick with it for five or 10 years. foras an investor in ibm quite a long time. they got in on the third quarter and by the fourth quarter, they were gone. lesson he learned his with ibm. he thought he understood oracle but he did not understand the business. he is giving himself some possibility to try out an investment and cycle back if he doesn't really understand. onhe did not have an impact oracle shares. what did he have to say about apple? katherine: that is an interesting case. buffett clarified that was not him, that was an investing

deputy was reallocating their portfolio. that is a good sign. apple has been facing questions. it has been a rough start to the year. buffett says he stands by the company. he would like to buy more. >> what about these comments that were newsworthy? what were the most important things that he had to say time -- today? >> they sent their shares to a record low. investors were wondering if this was a chance for buffett to swoop in. he made it clear he does not want to do that. he doesn't want to sell any of his shares. he is not expected to buy anymore. that is a telling comment. it has been hard for these consumer companies. their dealmaking strategy has been troublesome as prices for businesses have risen. it is a sign that maybe he

doesn't really want to go gung ho on kraft heinz. >> thank you so much for that. 's newest chip will connect to 5g. i sat down to talk about the into the latest move technology. >> one of the biggest announcements we made is the qualcomm parasitic technology. that is a technology that is allowing the first generation phones to have an all day battery life. less won't settle for any than what you have on your funds today. that is the bar. isn't it the carriers that

happens?w and when 5g >> that is a great question. i will do a comparison. sometimes we forget about what happens with 4g. when we were launching 4g technology over a decade ago, we had two operators and four devices. look at where we are right now. we have 20 operators, 30 devices. it is a proxy about how much faster 5g will get deployed. >> talk to me about the partnership with samsung. they have now announced a flip phone. will a new gadget like that help accelerate this? >> i feel there is enormous potential for 5g. we are very proud of this partnership with samsung and how they have been a great partner with us.

ofalso have a number different devices that have been announced. the most important thing is that when you change your experience with 5g, you will want a different type of device and a different type of screen size and resolution. the apps will become way more powerful. that will have a more powerful hardware that goes along with it. >> it is not a form factor that will change 5g, it is 5g that will change the formfactor. cristiano: yes. you will see the opportunity for larger screens. devices that see are more specialized for more capable gaming. 5g will allow you to have mainstream gaming on 5g devices. also see devices that will converge between productivity. time we will expect to see

virtual reality or mental reality devices. using 5gs will be technology. phones will be using 5g technology. >> how worried are you about the competition? all welcomeit is technology. >> what about huawei? >> we have always been competing with huawei, but we are also a customer of qualcomm. sees 5g as an opportunity to expand not only in china but globally. there are a number of other companies that are embracing 5 g.

we think our china business will continue to expand and 5g will be a great opportunity for that. >> huawei is going around the world. the u.k. is an interesting one to watch. how closely are you following the huawei situation? we are not directly related but huawei is a partner on the infrastructure. ifhink it is a sign that anything, this whole discussion is a sign that 5g is way beyond mobile. a criticalome infrastructure because it will power everything around us. >> that was my interview with the qualcomm president cristiano arman. how does spacex fit into their plans? we will discuss next, this is

bloomberg. ♪

>> that to a bloomberg school. drafting's are teaming up in a deal that will give the internet betting company and easier path toward online and mobile gambling vice nationwide. we are joined by jason robbins on the phone. thank you for calling in. why partner with caesar's? parentar's is a terrific -- brand and incredible partner. they bring a lot of what we need and what we think is company three. -- company to reach what we are doing. -- complimentary to what we are doing. >> a lot of investors will see the value. it will be a sign that people

will see the strength in the brand that caesar's has. how fast do you think they will legalize online gambling? how big do you predict this market can be? jason: you are seeing a tremendous amount of momentum in dozens of states. of states have introduced legislation and ask you must. i would not be surprised to see legislation over the past couple of months. it can be,ow big after you get a decent chunk of the population, we are talking about tens of billions of dollars in revenue. >> you got a head start but what do you think the biggest --tacle for draft things draftkings is? >> i think there are a lot of

things that need to happen. we are acutely aware of where we feel we are strong. we are really strong when it comes to building user experiences. it is when we are acquiring entertaining platforms on these. we will partner with companies that bring complementary things to the table. it will be a long road. it is all about exit fusion. we are really focused on that. >> that was jason robbins. with off a new partnership caesar's. thank you for calling in. nasa has been given the go-ahead to test a newly designed launch caps off. spacex will test its first spacecially designed capsule. it is designed for humans. this loss will be unmanned. they want to fly to the space buying seats on

russian capsules. they announced a new accelerator in los angeles. thes in partnership with air force, lockheed martin. what other opportunities remain for space exploration? >> we are entering a . space -- we knew era.ntering a new space there is a lot more possibilities that we can discuss. >> like what? francois: manufacturing in space. >> what would you want to manufacture? >> they are starting to make noise. the plastic parts, they

are thinking of manufacturing fiber optics for example. when these products enter zero gravity, the performance of these fiber optics are 10 times or 1000 times better. >> what do you make -- i know you closely follow the space companies. towardmade huge strides sending a human into space. are they going to be ready? when they say they are ready? francois: they have been ready for a couple of weeks and even a couple of months. just waiting for their final nasa clearance. they finally got it. i think it is great. about this.ried

i would not be too worried about this. >> why not? francois: they have not demonstrated the ability to launch the falcon one or falcon nine. ago, nobody year believed they would be able to achieve such a performance. >> a lot has happened in a year. francois: yes. now it is the next step. they will not be going out of russia anymore. >> this is the first time since 2011 that a u.s. company would be sending somebody to space. francois: i think it is big.

we know that spacex can launch so many more times. the previous program was a huge cost. sending people to the space the next step and then sending people to the moon and mars. how does this compare to what you are seeing a blue origin? origin started earlier than spacex. they brought to spacex makes the difference. it is a company that is going much faster. they will have the same type of engineer but they will drive differently.

had financialays constraints. that is not the case with origin. that has brought more pressure on the company. >> what about virgin galactic? francois: they have a different approach. they launch small satellites. they are on their way. this is more about space tourism. of thea different here atmosphere. -- it is a is different program then sending people to the space station. it is a different is this model. >> they are all doing different things. it could be a huge market if the market is created. who will be a winner? are they all winners in your view? what will separate the winners from the knot? francois: we are -- from the not? i am surprised to see

100 companies trying to reach that market. it is a new gold era. there will be a lot of winners. be the first to start or to go. it might not be the most successful one. that is why we think there is a lot of opportunity. that is what we want to bet on. starburst has a new accelerator. so good to have you accurate. that does it for this edition of bloomberg technology. we are live streaming on twitter. you can check it out there. you can follow us on tictoc on twitter. this is bloomberg. ♪ so with xfinity mobile

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bloomberg daybreak middle east. asian stocks have moved again. china csi 300 enjoyed the best three and a half years on trade talk -- best day in three and a half years on trade talk optimism. the one falsehood for recon -- two pounds flies to a four week jeremy -- as tresa mae agrees to delay brexit. donald trump arrives in hanoi ahead of his second summit with kim jong-un.