terms of that sentiment? >> i think the message is still bearish. there is concern that the yield curve is a reason for concern. one thing we have been conditioned is you don't fight the fed, the fed turned earlier this year and the balance sheet started expanding in august. we may be underestimating the power of that turn any balance sheet, which over the last 10 years, markets have been averaging about double in times when the balance sheet was not rising. we may be underestimating that. scarlet: of course, the fed's mantra is we are in a good

place. you can see the dow closed unchanged. up marginally. the s&p 500 gaining a little bit in the nasdaq lower. certainly a little tension in the tech stock. scarlet: let's dig deeper with our markets reporters. abigail, what are you watching? a look at the russell 2000 you were looking at. the worst day in a month. at the close, the worst day of the month. here's a chart we have been looking at for quite some time that initially came from oppenheimer. at that time, they were making the case that if the russell 2000 appears above 1600, that would be a bullish sign. for all of this year, we have been below that 1600 level, although yesterday we did go right above it on a slightly rising moving average. the rsi is now going back into the range from oversold.

it will be interesting to see whether they can pick it up and ring the russell 2000 closer to all-time high. about 10% relative to the s&p 500. we may continue to see a: offer small caps. off for small caps. intop and bottom line coming most better than what analysts had expected. this was ok. morgan stanley was coming out saying the fourth quarter seemed appropriate but he has been cautious on the quarter. the next quarter looks too optimistic on him. i am waiting to get details on guidance as we look ahead. one issue we are taking a look at is if you want to look at the chart i am showing, it is all about growth margins. for qualcomm, that is the white bar. last quarter, margins were 58%.

analysts were looking for that to decline to about 57.8%. this be the fifth year of declining sales and earnings-per-share for the full year. we have to get more details up.n about the 5g ramp analysts say if we do not get that, it will be significantly weaker. investors will be disappointed. taking a look at shares of new skin, which have fallen as low as 7% after revenue trailed estimates. regulatoryng environment in mainland china as one of the things that made stocks go the way they did and earnings go the way they did in the latest quarter. that is pretty much white citibank cut to neutral in the stock -- and the stock has declined 35%.

city saying the company is likely to face pressure outside of mainland china into 2020, despite the product innovation that should aid in the business. caroline: thanks for the breakdown. let's go back to what taylor was telling us. starting to see the fiscal first $5.2er estimates, revenue billion. that is ahead of the midpoint of the expectations. they are seeing adjusted earnings-per-share -- we estimate was 77%. be hundrednts will 65 million dollars,. smartphone penetration once again for 2020. up 5%. scarlet: roku coming out with results.

this is the video streaming actually down in extended training. this is after third-quarter net revenue came in higher than estimated. 260 million dollars. analysts were looking for $257 million. the four-year revenue was raised when at most the company had seen a revenue of $1 billion, which was the consistence estimate. roku down 13% at the moment. we will dig into the numbers to find out what is driving, but this comes after he reported revenue be analyst estimates. still with us, cantor fitzgerald chief market strategist and bloomberg intelligence chief equities strategist. peter, we just saw that number from roku, which is in the category of these high that were doing phenomenally well until the middle of this year, then so

many have tumbled out of bed. it is pretty remarkable there has been rotation. we have seen tech clobbered. and while, we are at all-time highs. you seeess aside, do this internal rotation continuing more toward the value oriented non-ultra growth companies? >> if i am right, yes. if gina is right, no. given that i am hoping my assessment is correct, although i don't hope the market goes down, it is nice to be not kermit the frog. i would say we get a continued rotation in the value, because typically as people become more risk-averse, that is where money tends to go. if i may, gina made a great point about the fed balance sheet and what this rally is about. i think we have to put it in that context, because it varies by day, but let's give it $15

trillion in negative yield assets. that is something i had underestimated. that has driven capital into the private market, which is one reason these "high flyers" have fallen out of that, because private markets were on fire until recently and we all know the names that had stalled because private valuations were so high coming into the ipo. i think that is an important piece of this market. low interest rates have driven capital into private deals and the public equity market when the risk reward is not that great. scarlet: now that these companies are in the public focus, there is renewed on profitability. how is that changing the way investors plan out how they plan to allocate their money not just for this year, but next year and 2021? >> i think you have to put in perspective. if you think about ipo's as a new issue on the market, it is .1% of the total market.

for investors that are really into new issuance, that are playing that game, integrating these into their portfolios, that is an issue. for typical large-cap benchmark investors, it is a very small portion of portfolio. it is introducing a degree of volatility that we did not have two or three years ago, but the ipo market is small relative to the 1990's, when it was a big part of equity market performance. something like roku today tells a story today of the tack and communications sectors, which are distinct the different things in the s&p 500. companies like roku and netflix are media and communications companies. have different issues than companies like qualcomm and apple, which are technology companies. you think about the difference of the service provided by media companies versus the goods and hardware sensitivity of the tech sector. they are two different stories

and that is showing up in earning trends and valuation. it is part of the reason why you see the adoption of qualcomm's numbers as positive because expectations are low. you don't see the positive response in the communication sector because expectations were different. if you are bearish on the stock market and it feels as though it pushes higher, because where else does one put their money, where else does one put their money right now? >> often, that is the question. before equity markets -- i'm not saying we're about to get a swoon, but before selloffs, that is the pushback. there is so much money on the sidelines and most of the time, that comes from liquidity provision from central banks. there are not a lot of places now to put your money except in risk-free assets in

the united states in the form of long-duration assets, 10 year treasury or two-year treasury. we do like energy names right now. it is really more of a valuation call. this is about what happens to joe's question about value stocks. case and ivaluation think that makes sense. it is not and oil call. it is really just a valuation call in energy names. looking atm just some companies that have reported and roku continues the decline after it cut its four-year forecast. --rlet: caroline: also, it was up 400% in december. scarlet: do politics and the impeachment drama play any role in how investors are positioning now? >> absolutely. we can all see that unit

totally. thea bit confused about lack of reaction to the headline today. i think when president xi jinping says he cannot find time to meet with our president, i think that would give investors pause. apparently not so much, but my view has been clear. have reasonchinese to delay talking to president trump. he has declared himself the chosen one that fight china, so if i'm on the other side of a trade deal and i see president trump may be suffering and impeachment inquiry in the senate, i would want to play that option out as long as i could. i would delay any kind of deal. why would i be in a rush to come here and do a phase one deal and give any sort of credence to his ability to get a bigger deal done? on trade, if we were to eliminate existing tariffs -- our base case is to stay on the december 15 list, because that

hurts his voting base. if he were to give away some of the existing tariffs, i think that would say very good precedent for the strength of our position in negotiations. have boxperhaps we ourselves into a corner. bloomberg intelligence chief strategist -- appreciate it. we had a whole bunch of companies reporting earnings, qualcomm among that. stock up by 4%, but they do have some changes. firm firstthe quarter adjusted eps beat consist -- can sentence estimate. after its full-year adjusted forecast missed analyst estimates. square also reporting slightly higher in the post market trade. seems to be raising the upper end of its guidance for the year.

fox, the21st century media company after you strip out the stuff it sold to disney, first quarter adjusted eps beating the highest estimates, stock up by 5%. that does it for the closing bell. "what'd you miss?" is next where diving be giving -- deeper into those results. this is bloomberg. ♪ his is bloomberg. ♪

caroline: live from bloomberg's world takeover is in new york, i am caroline hyde. here's a snapshot of how we had a pretty muted day in terms of benchmarks. joe: the question is, "what'd

you miss?" caroline: bloomberg learns the u.s. and china may not reach a deal until december. u.s. stocks fluctuated on the news. a defiant tone. no change in vision, despite reporting anna norma's loss on the likes of we work. reacting to results, qualcomm shares jump off estimates, but roku tumbling as it cuts its four-year forecast. let's stick on those earnings. we will bring in bloomberg intelligence senior analyst in tech hardware. nice set of numbers, not only for this fiscal quarter which was fully pessimistic but the optimism -- >> one key thing for qualcomm is how this shakes out. we've seen results partially because of tariffs because china demand is weak. they had cautioned in the

previous quarter that the next quarter would be week. there is a dramatic differential between the in and sell through. chipsets getting sold to china where not getting into the hands of customers soon enough. they under shipped potentially to let demand and supply catch up. we had seen weakness with qualcomm over the last quarter and it looks like this quarter is coming in line with expectations. from a broad macro demand perspective specifically tied to china, this is relief from where demand is coming in. release, thereto did seem to be easing of tensions in regards to huawei and the 5g rollout. how much is qualcomm playing into that and how much do we read into these for what we can expect? >> that is a great question. with respect to huawei, there has been an incredible amount of confusion.

can we ship parts into huawei? to thatthey have come conclusion that we can ship some but not all. , but one in impediment thing wave a has done is their strength in china has been strong, so they are seeing stronger than sellthrough. the effect across the supply chain has been muted. joe: what are you going to be most curious about on the call? >> like everyone else, i want to see the 5g ramp, the shape and the speed of the 5g ramp. obviously, china is first and we want to see what the takeaway is. romaine: our thanks to bloomberg intelligence giving us that update on qualcomm. let's go to another stock reporting here after hours. one of the biggest reporters, roku. let's bring in paul sweeney.

he used to cover roku. he covers everything now. he is an expert on roku and the streaming situation. roku has been at the center of that. it benefited from the proliferation of streaming. results today cutting the four-year adjustment forecast. we saw softness in terms of the new additions. betterthree q report was than expected revenue growth. the top line is fine. on expenses, they are having issues. they are cutting their cash flow guidance materially but the itsk was up 400% from december low. that was priced to perfection and when you cut estimates in the face of what the stock has done, that's what you will see. joe: roku has all kinds of competitors offering similar platforms and services. those companies seem to have built in advantages, the ability

to spend on content, promote devices as part of a suite of products. how much of a threat long-term and how much -- how hard is it for roku to stay independent? >> one could say we are seeing all this news about streaming, everybody is getting into streaming. all the big media companies. and there is little roku, sitting there is the arms dealer. they are an independent platform, we will take all of your ads, all of your programming and benefit just because we are a pure play on streaming. you don't have to decide which one disney is going to win or time warner is going to win. it is all there. caroline: i don't understand why you need roku at all. i just get it all on my tv. i am kind of confused why i even need it. >> there is a lot of functionality that people like. they like the playback in the technical functionality. it is a place you can get all of your apps, everything brought in

at a centralized, easy to use platform. have a large install base. as people cut the cord, they take that cable box out of their house and have to have some device to bring it together. apple has a product and other products in the market. roku has been one of the early players in that space. they have got brand identity, they got a first mover advantage. there is a long-term international growth story as well. romaine: we have got to get caroline on the roku bandwagon. we are all on it. appseady have all the loaded on my television. romaine: here's a good example. get the samsung tv and they into these ridiculous disputes of apple and get rid of certain channels. roku is neutral. you don't have to deal with that. caroline: i feel like i have got it all. romaine: i feel like i am in for

roku. joe: why are we selling roku right now? great stuff. thank you very much. coming up, the summit has been canceled. alaska and iowa has been ruled out. where will trump and president xi signed their trade deal, if there is one? more details ahead. this is bloomberg. ♪

romaine: we are still waiting. president trump and resident xi jinping could be looking at a partial trade deal signing delay. they have yet to settle on a location for the meeting after the cancellation. to u.s. sites, alaska and iowa, have been ruled out.

knocked down lower from record highs. i want to welcome bloomberg news congressional reporter and enter 10. how much is this about location as opposed to what they would agree to? >> we know the pageantry is very important. when you look back at previous meetings with world leaders, with kim jong-un, with vladimir putin, there is an ambience that is important. the location is probably legitimately important, but it does suggest that the substance of the trade deal is not ready for prime time. that's what we will be looking for as the months go on. certainlyhey are welcome to have that signing ceremony right here on "what'd you miss?" in our new york studio in new york. the other big story out of washington, in all seriousness, is the impeachment proceedings. we sent across the bloomberg terminal about how this testimony had been released. what was so important about this

testimony and why did say -- why did people make such a big deal about it? >> he is a really interesting witness, because he is a career diplomat and he has laid out various explanations of what happened. he took contemporaneous notes. he has memos he shared with other people involved and pretty much detail that there was an expectation for ukrainian officials in return for military aid and for a meeting with president trump that the newly elected ukrainian president wanted to confer some legitimacy to him in his term. he doesn't necessarily use the word quid pro quo, but describes a quid pro quo is important to the democratic case for laying out why this is wrong and why there is concern about the involvement of domestic politics in foreign policy. reflection -- the impeachment reflecting on how likely we will be to see a second term for president trump.

how much has it been a referendum on trump or not at all? >> yesterday was really important with some of the state and local elections that we saw. the most interesting result was probably the governor's race in kentucky, which looks like it was won by the democrats. the republican incumbent was not very popular. it is easy to say that he might not have won reelection anyway but trump really made this race all about him. he went to kentucky, campaigned for the republican incumbent, said if you don't vote for this republican, you're going to let the democrats say they will have a win against donald trump. i need people to protect me from impeachment. the fact that trump made this about him makes it more damaging. thank you very much indeed. coming up, we talk about we work woes. the price for bold bets on startups seems to be a $6.5 billion loss.

sticking with the long-term vision. it this is bloomberg. ♪ erg. ♪

reporter: i'm risk a good the. let's get the first word. a change in plan for the anticipated trade deal signing china. the u.s. and president trump and xi jinping may not be able to think phase one until december, and the signing ceremony is now unlikely to take place on u.s. soil. the limited trade deal would entail the u.s. dropping tariffs on chinese imports in exchange for beijing resuming purchases of american farm goods and other products. california is suing facebook over the alleged failure to comply with demands for information on its business practices around user data. at a press conference today, the

state attorney general said the legal action could have been avoided. >> if facebook had complied with our legitimate investigative requests, we would not be making this announcement today. our work must move forward. we are left with a little choice but to seek a court order compelling facebook to faithfully comply with our duly authorized subpoenas. reporter: an inquiry into the cambridge analytical scandal is funded over time to become an investigation into whether facebook deceived users and ignored its own policies and allowing third parties access to user information. facebook says it has cooperated extensively with the investigation. a federal judge today struck down a new abortion rule that has yet to take effect. it would have allowed health care providers to assume participation and other services on moral or religious ground. the decision comes after 19

states, the district of columbia, health organizations and others sued the department of health and human services. global news 24 hours a day on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. to --sk a group this is bloomberg. caroline: now we have breaking earnings still coming fast. this is all to do with the chinese giant, baidu, rising up 7% as third-quarter revenue comes in at 28.1 billion you want -- yuan. we are also seeing adjusted profit per at 12.611%. it is well ahead of expectations. let's get the inside track from ed ludlow in san francisco. what do you make of these numbers?

reporter: unexpected on the top line. let me paint a view of the background for baidu. you have basically two pressures on top line advertising revenues. thethe macro environment, a lotf analysts going into this. we are talking about the pressure on advertisers but also ,omestic, local pressures concerned that we would see the first year on year revenue declined for baidu. first quarter of negative revenue growth since the fourth quarter of 2016. 28.1 billion yuan well above the estimate. go back to the second quarter as well where there was also an unexpected revenue growth for baidu. a lot of analysts are talking about cost-cutting. that is boosting the bottom line of margins. it is very interesting. i will be looking for more on the called from baidu.

there was google deliveries for smart home speakers. they have been granted a license by china to go into more deeper research for self-driving car's, one of the first to receive such a license. interesting business. tope has been pressure on line advertising revenue but not the case in the numbers today. reporter: now let's turn to softbank. the company hitting a speed bump for the first time in 14 years after investing in money-losing owning up toork, his role in the loss. >> my judgment in investments was not right, so i regret in many ways. isaine: joining us for more new enterprise associates early state investor with three

decades of company billing expertise focusing on emerging technologies. hey pretty much put it like this. he said today's earnings are a mess. i should point out, that was softbank. the vision fund was like $1 billion more. >> we work alone was more than a $4 billion hit. the parent company and the vision fund. he did say it was a mess, but he seriously defended his vision your it he said they were moving forward. he said the strategy was the same for the most part. they are defending what they are doing here. ben, i want to bring you in here. what are the consequences downstream to earlier stage funds, smaller companies, and so if perhaps the mega funding we have seen will fade or if there is a slight strategy

shift going on? >> i think we are seeing immediate positive impact. i think the wework explicit example was something that really shone a light on the issue of having superstar founders that commanded inappropriate governance structures and that has made all of us pay more attention to how careful we are with that exact reality. superstars are often able to dictate their own terms, but we are seeing a little more caution. early stages are pretty much shielded from impact. softbank much fully committed 85% of their existing first fund. they will keep that on reserve. what you won't see is the near term of softbank coming in and having an opportunity in one business that might affect others. having said that, while softbank is at blavatnik -- emblematic of all the new money, there is a tremendous amount that has flooded into silicon valley and i don't think it is changing anytime soon.

it will be available for great startups. caroline: it's worth remembering, and he was certainly defiant, yes he has had big losses, but he actually crowed about the amount he makes versus the average venture capitalist. he said they were making double. there also wins. they say they were taking a chunk out of baidu's advertising revenue. idi, the biggest startups out there. has theirember, didi own issues. uber is still losing money after the quarter ended. they have more pain ahead, not to mention they are burning through cash themselves, softbank is. something i want to know is you mentioned the corporate governing revenue. at what point do we see people scrapping these dual class structures here? is this behavior over, or are these corporate governance

issues going to be a problem? >> you have to look at it in balance. if you look at the top 10 companies, they are basically founder led in their origin stories, founder ceos. microsoft, apple, google, facebook. they were built on the back of incredibly focused founders that often have levels of control that allowed them to do what they believed to be the right thing and in many cases, it ended up being that. facebook was famously offered $1 billion and the board was supportive, and zuckerberg said no. i don't think you will see this go away. the challenge is creating a balance. every entrepreneur thinks they should get zuckerberg treatment and not everyone deserves that. truly edge with exceptional superstars, i think we will command those terms, but yawned that, it will be hard. you can't go back to your firm and say you will be a passive investor if you are a true

venture capitalist. if you are a private investor, you have a little more flexibility. sit on boards. it is a seven to 10 year journey. theine: i want to get to personality of muscle you she masayoshi son. who not the kind of guy will pick a guy that's not dynamic. he goes for these folks that are wide-eyed thinkers, people who can carry out the vision and take his money and carry something out of it. if he stumbles on a few investments, he seems to be ok with that. transition to a different phase in his career where he is willing to take chances on people a little less dynamic? >> i made a mistake in my life early on. i was a seed investor for about 10 years. it took about three years before any of the companies failed.

i thought i was investing in powerpoint, slides they have not invested, i should see a higher failure rate. i decided to loosen up. was a mistake. you cannot lower your bar for people. great people, great ideas, huge markets. i would be surprised if he changed his view in terms of the quality of people. is one the founder tips over from visionary leader messiah, things can get messy. entrepreneurs, while sometimes challenging because of the ego involved, have the right vision, the right strength of character. you have to be a phenomenal storyteller. i have learned this over and over again. you can have a great business but if you can't tell the story, you can't recruit, you can't get money.rs or raise i don't see why he or anybody would ever or should ever change

their view of phenomenal human beings. you have to be careful you don't accidentally invest in sociopaths. [laughter] joe: good advice for everyone. thank you to sonali basak as well as new enterprise associates venture partner been nursing benjamin narasin. plenty head. this is bloomberg. ♪

help buildkiernan fox, rising to become rupert murdoch's right-hand man as president and coo of news corp. before leaving in 2009. the media mogul turned investor just raised an additional $700 million for the group. he sat down with our own ed hammond to discuss the latest fundraising round. >> we believe that our

theational background, entrepreneurial background, because at this point, we started tons of companies ourselves, in addition to financial acumen, makes us unique as an investor and we think it makes us valuable. not only do we think we can help these companies build to superior economics and monetization, but we believe we can dig in and help them find a ceo, help them build the ideal product interface for consumers. help the market effectively and figure out the most effective ways to market. hope them increase quality of content. help them on e-commerce, etc. we believe this is absolutely right for us. we also believe it is right for the companies we invest in. i can't speak to other funds and what's right for them. therter: just looking at recent shareholder activity out this week, you have this interesting question. which founders want to win? that is the key thing to look at when you are looking at where to

invest. talk me through how you harvest -- harness the founders deal with a need for someone who can transition into a sustainable, long-term business. first of all, i assume all founders want to win. i think everybody wants to win. i think the key is judging which people have the skill set and i think you alluded to something, which people have the skill set and the character. what you alluded to is a different set of skills as the journey goes on. this is a different set of skills in the early stages when you're trying to hustle up and gain customers and traction. then a year or two later as you told skill, you have a different set of challenges in front of you. thinklot of ways, i character becomes one of the defining things. you are looking for people who are hungry but who have great

self-awareness, have a desire to surround themselves with the best people, are curious or interested, and are constantly learning. mind are the people in my most likely to win at the end of journey.ar the reporter: you have great media products and then you can add commerce to the other side of it. talk to me about how that works with the customer base, because often the loyal fans feel brand.ate about the how do you keep that loyalty without making them feel they are being forced into a retail experience? everygeneral, almost brand we invest in, particularly on the media side, but anywhere is, we look for people who are a, genuinely authentic, a burning passion to connect with customers and whatever business, and who have some degree of expertise and authority.

the second thing we look for is that they have a fan base and have built the fan base organically.they have not spent a gazillion dollars on facebook or instagram advertising, but they genuinely connected with fans and built a fan base. the third thing we look for is people have demonstrated they are willing to pay for something. in some cases, that may be commerce and some cases, that may be subscription, in some cases, that may be live events. invery infrequently invest businesses just selling advertising. we are looking for a passionate fan base, but also a fan base that has demonstrated they are willing to pay for something. at that point, particularly the authority and authenticity, makes it feel to consumers not that they are getting sold a bunch of stuff and people are compromising, but it's actually a guidance thing, these people believe in and have authority are giving me an opportunity to

buy great goods and products. it's not something to force down their throat, but something like a service. it is important that it be a service. romaine: you are just listening to peter chernin speaking with ed hammond. time with abigail doolittle to look at smart charts. you are taking a look at longer-term equity. reporter: we are. to do that is the bank of america merrill lynch technical analyst, steve. >> i don't like noise. weekly charts produce noise. it's a good enough timeframe where you can be timely enough, and have fundamentals. if you make a fundamental view, it will be intermediate anyway. i'm trying to cover all the bases. reporter: you have two great ones this week. this first one, small-cap value. >> on this chart, we are showing

the similarities we had in 2011 and 2012 with a breakout further russell 1000 value index. we are seeing rotation right now. it is perfectly normal to get rotation in the market. the value index breaking out on absolute basis happened in early 2012, late 2016, and happening in late 2019. why is this important? rotation is the lifeblood of able market. what we are doing here is getting groups that have not been formed coming to the forefront. look at financials, industrials, and msci. same chart pattern. the market is rotating more towards cyclical spirit you are seeing stronger performance with a breakout. that's why we like it. we think it can continue. is similar to the 2013 to

2014 period. reporter: given we are 10 years into the bull market, would you take this as a signal we have another year or so of performance for a value overgrowth, and at the same time since value is more defensively oriented, would you look at signs that it would break out continuously that it would be a tell at the end of the bull market or will it keep on keeping on? >> we think it is a secular breakout from 2014. we think it will last another 10 years. reporter: you heard it here first. >> think about it. 1950 breakout until 1966, the 1980 breakout lasted until 2000, maybe even into the next decade. to me, it's a value phase. i think growth longer-term is still leadership. may be a years worth of the performance and value. reporter: supporting the growth view here is the idea that chips are going to break out against software.

talk to us about this. >> a lot of people are looking at semiconductors with bulls versus snp -- s&p. but it's actually bullish against software. a little more are cyclical and value-oriented. semiconductors have lagged for many years. s&p shows stocks flagging, 500 index software. we looked at 2012 to 2016 on that past chart, but now it looks like we are getting outperformance on semiconductors, but they could break out of a 12 year base versus software and potentially be a longer-term leadership group relative to software. they look pretty good relative to software. that's where the rotation in tech is, towards semiconductors and hardware and away from software.

reporter: that could certainly be a valuable rotation if it occurs. joining us for smart charts. great for joining us, as always. back to you. joe: coming up, investing in aramco. china and talks to invest up to $10 billion in what could be the world's largest ipo. we will discuss this and the latest on asia had. this is bloomberg. ♪

scoop.w for a bloomberg china set to be in talks to invest $5 billion to $10 billion in aramco's long-awaited ipo china's president xi jinping has been looking to increase china's political poll and increase trade routes. this would cement ties between china and saudi arabia. here is shery ahn. the aramco ipo is a business event, but clearly more than that. this is an opportunity for both countries to further deepen relationships.

reporter: it has political connotations. we were hearing from the atlantic council senior fellow ellen wald earlier today that this could give the chinese route -- leverage over the relationship if they have this huge stake in the aramco ipo. we know that china has been trying to expand their influence in the middle east. we have seen china, for example, strengthen ties to the united arab enter -- emirates. they have a joint venture fund. this could be another way they could increase those ties. romaine: what kind of ties does trying already have to the middle east right now? reporter: mostly oil. china is the biggest customer of saudi arabia when it comes to oil, as you can see on this chart. other asian countries are also big customers. also, interesting that saudi arabia -- there you go. china takes the bulk of those oil imports.

also interesting, saudi arabia is actually using huawei and the 5g network. this defies trump officials trying to limit huawei's reach around the world, warning about security concerns. in august, huawei and the tech ministry and saudi arabia had a joint training session to carry out these 5g network operations. caroline: the country leaders have turned a deaf ear to that request from trump. what about trump and the relationship with the u.s. and saudi arabia? reporter: especially with the u.s. turning around trying to build ties after the murder of jamal khashoggi in 2018, and president trump making saudi arabia the centerpiece of his foreign policy, so it could be a source of conflict in the future. caroline: thank you. for more on these stories you don't want to miss, check out "daybreak: asia." technology" is coming up next in the u.s.

have a great evening. this is bloomberg. ♪

>> i'm caitlin riggs in san francisco in for emily chang, and this is "bloomberg technology." coming up, uber sinks. low for therecord ride-hailing company as the lockup period expires. is the worst over? plus, rocky picture for roku. as 17 andling as much after hours trading wednesday after the streaming platform