will ericsson, will nokia make a play for some of that is this? is there the potential here to jump in while the u.s. is in sort of limbo about whether or not it will support everything related to the blacklist? they wouldn't think do that. the ball is very much in the u.s. court as above -- as to how much they want to go ahead. the key thing is not so much the equipmentn the huawei and on the american ship companies. if that goes ahead, it's up to operators around the world to make a decision as to if they are in a position to deal with huawei and can they make the commitments to them or if they feel it could be a problem in that and if they look elsewhere to approach nokia and ericsson. i am sure that there will be discussions going on as we speak about what could be the potential circumstances or the ways out for these operators if it came to that, but ultimately i don't think that more could be made by nokia or ericsson. it has to come from the operators themselves. guy: it will be interesting to see how china and chinese consumers respond to

lot of consolidation so there are not many players who can take who obviously dominant position ericsson nokia. cisco their few players but their equipment tend to be a little more expensive and that is problematic for the carriers who are already expected to do a lot of fortune for the 5 g. spectrum and also the fact 5 is still a distance away why you couldn't is used widely for the for the existing technologies the 4 g.'s the treaties it could even find it difficult to service them with spare parts so many units would be very difficult going forward if. the scope of this entire ordeal is properly understood by. by the experts right under their reporting from the frankfurt stock exchange thank you. now the german association of women entrepreneurs or v.d.u. has been promoting female entrepreneurship for 65 years now at the moment the v.d.u. represents about 1800 to many medium sized companies led by women in areas such as manufacturing handicrafts trade and the service sector together with their companies they generate 85000000000 euros in sales and they employ about 500000 people the day you

in europe there isn't a big infrastructure 5g maker, there are some, but ericsson and nokia and are somesson and nokia and a few of the other is... but huawei i seem to be more advanced. and cheaper. i think that's why philip hammond likes it. let's move on guardian. this was a huge story this morning, a huge story for everybody, but are we going to pay attention? we've been talking about a royal baby and then out in the real world there is this un report three years in the making, 450 scientists saying a million species could go extinct. it doesn't say buy when, we were just looking. but i guess if they go extinct it doesn't matter when. but it is pretty stark. one in ten insects, two in five amphibians. and it isa insects, two in five amphibians. and it is a real splash of water in the face to people. it is on the agenda in the us and america, there is the green deal that has been spoken about, obviously the extinction rebellion protests in the centre of town that have brought the debate to the centre of the conversation. and the centre of the conversation. and the tone for the scienti

and even motorola may be up for the release we even hear of a comeback from from ericsson and nokia. the interesting. thing for us in singapore thank you very much. while the war rages on europe is trumpeting its ambitions to become a leader in key technologies artificial intelligence has won the chinese have got the upper hand there and truth be told to the e.u. legs way behind critics say brussels has no one else to blame except for itself reports larger networks faster speeds new calls for regulation the next e.u. parliament has its work cut out for it when it comes to digital transformation but more than cables and hardware a new mindset is needed that's according to professor christoph mind he said of the hasso plattner institute in potsdam germany which educates students in i.t. and has designed cloud schooling and health records projects in germany and the us michael believes europe is too concerned with technologies evils and that it slows tech progress by focusing on process. in this they start to create something and sense and see whether it works and then they debate where

providers such as ericsson, nokia, that they could possibly work with. shery: there will be some winners out of all of this. what does this mean for the rollout of critical 5g business networks around the world? woo jin ho: that is a great question. i think that the rollout has been tempered. if anything, it is going to temper it even more. number one, because, the u.s. allowing other countries to use huawei equipment, and now you have a potential supplier ban that may impede huawei from manufacturing and selling equipment in the future. if i am a 5g telecom service provider who has a pullout in in place, iollout needed to map my strategy and how i'm going to roll that out. i don't forget will be any faster. if anything, it may be slower. -- i don't think it will be any faster. if anything, it may be slower. joining us.r here in australia, heading to the polls this weekend. compulsory voting here, and we will potentially continue the revolving door of political leaders that has given australia seven heads of state in the past 10 years. the election takes

shares in rivals ericsson and nokia are both higher in early trade.ew designs of huawei smartphones are set to lose access to some google apps. ryanair‘s profits fell by nearly a third last year to £880 million as fuel costs rose and fares fell. europe's biggest discount airline added that profits could be lower this year as fares continue to fall. more in a moment. now to tata motors, india's biggest car—maker and the owner ofjaguar land rover — and you might want to cover your eyes. this within the past hour, it's reported a 47% drop in quarterly profits, and a full year pre—tax loss of £3.6 billion. the group is really struggling to sell the luxury jaguar land rover cars in key markets such as china. however, jlr returned to profit in the fourth quarter, following a big restructuring and cost—cutting drive. rachel burgess is deputy editor of autocar and joins me from the newsroom. soup, some signs of a turnaround in the fourth quarter, but this is a massive fall in profits, what has gone wrong? there are a lot of things at play here. china is a maj

the door forens nokia, ericsson, and cisco systems to steal that market share. for 5g? yesterday was about the demise of that? is that accurate? alex: knocking ericsson, if you are a u.s. carrier and you want to do any government business in 4g you cannot use while way equipment. -- you cannot use huawei. supplyhas been able to the market in the internet of things. 5g, youve from 4g and will have factories and farms and office buildings running not on cables and not on wi-fi, but on five g networks. that is a huge opportunity for all of these suppliers. huawei, alsoo samsung. huawei coming out of the picture creates a huge opportunities for these guys. david: a further question is what comes next. if we can learn from the trade negotiations, china tends to respond. what can china due to react to what president trump has done? john: i will start by saying that is the big concern. is an important company to china because of their desire to lead intact. fall way is the look -- huawei is the largest telecom equipment company in the world. it is their shining star. m

we heard today you guys talked about soft bank looking at nokia and ericsson for equipment and so theomponent companies that i think sell into a broad diversified base of manufacturers could benefit. so for right now, we're looking at valuations, and we're looking at estimates that have been resized for the huawei impact and what to do next, but certainly, if this continues, you know, this could affect white goods that get sold into china. there's a lot of component companies that sell into all of these different markets that, you know, in general, are going to face some issues. really quickly, the consumer and the behavior of the customers that are buying these components is uncertain microchips of broad based manufacturer and semiconductor components, they thought we would see a bottom and now they're starting to see cautious behavior and basically guided below seasonal so we're seeing that already >> and to reuben's point, stacy, we did have some players in the quarter print argue that we had reached or were approaching cycle lows do you think that gets updated if this trade war co

nejra: and that presents an opportunity from the likes of ericsson and nokia.g up, it is a busy day for the world of emerging markets. data out of brazil could show the economy contracting in the first quarter, and there is a slew of data out of south africa as a new cabinet is unveiled. looking forward to that conversation. manus: absolutely. bloomberg radio. we are live on your mobile device. this is bloomberg. ♪ manus: this is "bloomberg daybreak: europe." nejra: let's get the bloomberg business flash. here's rosalind chin in hong kong. making benefit in the headway of selling the fiat deal to nissan. it would have control indirectly over nissan. that was the key concern the japanese companies had for years. they had an open and transparent discussion about a merger, in a statement. the u.s. department of justice wants t-mobile and sprint to lay the groundwork for a new wireless carrier with their own network. those are the conditions for clearing the over $25 billion merger. the companies have been pondering additional concessions, but the idea of selling o

act together >> so, you have to make a separation the bay station vendors, which are huawei, ericsson, nokiarizon, at&t and sprint, they're behind china and south korea with the rollout of 5g for a whole host of reasons there's technological issues -- >> spectrum is a big one. >> spectrum is a big one the last mile is also a big issue as well. so, if there's a slowdown with the rollout of china and 5g, it might allow the u.s. mobile operators to catch up. but 5g is going to be a massive upgrade in terms of the network, is going to allow machine to machine communications you're going to see a lot more iot devices. it's going to allow enhanced mobile broadband it's a significant leap from 4g to 5g. it's very, very important technology so, this huawei issue has to get resolved, because 5g infrastructure buildouts are happening, and they're going to continue to happen. >> go ahead. >> so, let me ask you, the question becomes, this is -- 5g is much more of an industrial application. i mean, wi-fi is garbage but if you put 5g outside of a precision industrial factory in germany and you have robots

been even if you were to review all the code and practices of some of their competitors like nokia and ericsson at those at the end of the day they don't always answer to their governments but are docile that are from there to the u.s. government than china often is as an adversary. what was the company's response to that? >> guest: several things you can do but first of all let me mention the scale of operations that take place in china by gnocchi, ericsson and even cisco and in the case of no kia active involvement in the chinese government in the joint venture with no kia to the extent that geographic access presents risk the u.s. government has found ways to address that risk in the i saw a comment to the principal deputy of the director of national intelligence recently about two issues. one has to do with backdoors which he said they could test for any other has to do with customer data. there are mechanisms to address the risk and the assumption is that because our equipment in the network we have access to all the information but we are not trying to sell them to the core but we want to

well there are one of several players along with nokia and ericsson but where they really matter is they are significantly cheaper there are countries that just can't get to 5 g. unless a while weighs in the market and there are carriers that are dependent today on 4 g. for wall ways gear and couldn't imagine ripping that out and putting in a rival so i think we're going to see very quickly that as much as wall way is dependent on the u.s. companies for their technology networks around the globe depend on wall way to have an affordable option to deliver cellular communications but clearly we're always going to be suffering short term damage that is obvious how about the long term because it must be very difficult for it to try and plan for the future it's talking already obviously about having its own operating system its own not success to get around the google problem but long term what is the situation of wall way i mean it's certainly going to be huge hurdle moving to something that isn't google's android will be a tough sell especially outside of china i think the risk of the rest o

japanese qualcomm unit has selected nokia and ericsson as vendors for its next-generation wireless network, excluding longtime supplier huawei. the trump administration has been encouraging allies to ban the chinese company, citing security risks. the chinese have not made an official decision on huawei, but local media says its top shun huawei and zte. onto the latest with boeing. they have outlined plans ge is the 737 max 8 back into commercial service. the ceo says it will take around three months before flights will resume. in the meantime, teams are preparing to take almost 500 jets out of storage, including around 100 new planes that cannot be delivered until the lifted.g is officially global news, 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 100 20 countries. i'm su keenan, this is bloomberg. up, the activist investor capital founder shares his bets from the conference in hong kong. that is next. this is bloomberg. ♪ >> you're watching "bloomberg markets." as promised, we have sorted out our technical issues. we hav

. >> softbank japanese telecom selected nokia and ericsson as vendors for its next-generation wireless network excluding longtime supplier huawei. the trump administration has been urging allies to ban the chinese companies citing security risks. japan has not made an official decision on the four-way that -- huawei. as the trump administration has escalated its battle with european allies over the iran nuclear accord. it is threatening penalties against a financial body created by germany, the u.k. and france to protect trade with the islamic republic from u.s. sanctions. a treasury department letter warns that anyone associated with it could be barred from the u.s. financial system. global news 24 hours a day on air and at tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. treasurer's rally rolling on. throwing the yield curve into further inversion. our global economics and policy editor is here with us. is this still about the trade headlines or has investor sentiment fundamentally shifted? >> it may be that the deepe

>> it's amazing europe won't play along they that steer the business towards ericsson and nokia >> weon't know if this can be repealed this is not a shot across the bow. this is like okay, we're not playing. the quote from the center, we're not playing. we're willing to take the hit even with our best companies you mentioned apple, they're the only one that i guess that we could say they can retaliate with they would be cutting off their nose to spite their face 2 million developers in china. those people will get hurt i don't know whether they're willing -- maybe the chinese government is willing to take that hit that's the only company. can't do niketucky fried chicken >> some news a few moments ago from goldman sachs they're buying united capital financial partners the price tag is 7$750 million it is cash this is a registered investment adviser. it has about 25billion of assets 220financial advisers. 22,000 clients 90 offices across the u.s. what's interesting, we talked about it a number of times i spoke with david salomon a few weeks ago at milkin about the strategy to attract t

the only way we have a deployable, secure 5-g system is either with nokia, ericsson, samsung or some combination of them. american telecom companies are playing and will play a central role in the deployment of 5-g both in the united states and globally. but in terms of developing affordable and deployable equipment sets, we've got to work closely with trusted allies. third, human rights would be on the menu, would be on the agenda of every single conversation. at the end of the day one of the voices i most notice in its absence in the senate is john mccain. i was just at the mccain institute retreat out in sedona, and i am working with senator tillis, my co-chair of the human rights caucus, to try to renew our human rights caucus in the senate for john. i think senator mccain, far from a perfect human but a remarkable patriot and someone who dedicated his life to public service, really saw human rights as not one of many interest for us to discuss. we can talk about trade or economic interest or military security or human rights, but he saw the things that distinguish us a democracy

they are going to lead with samsung, nokia, and ericsson. it is not true that they should have to wait. there might be economic considerations. we hear that it is up to 50% cheaper on the front end, it as mr. krebs mentioned, the long-term lifecycle costs -- the u.k. found hundreds of all abilities in the software. you have to constantly patch that. patching that is not worth the cost. it makes the cost longer in the long run. >> the u.k. government set up a dedicated oversight mechanism to monitor huawei and huawei has not demonstrated in a 10 year period any improvement in their security engineering process. they are still doing the things they said they were going to fix 10 years ago. they promised a transformation program. there is no plan. there has been no change. i think the premise you can establish is not cost-effective. actions speak louder than words. we are not seeing the follow-through globally. sen. sasse: i want to underscore two things. thank you to both of you. i think -- i hope we talk more about how security updates will w

they are going to lead with samsung, nokia, and ericsson. it is just fundamentally not true that we should have to wait. there might be economic considerations. we hear that it is up to 50% cheaper on the front end, it as mr. krebs mentioned, the long-term lifecycle costs -- the u.k. found hundreds of vulnerabilities in the software. you have to constantly patch that. patching that is not worth the cost. it makes the cost longer in the long run. >> the u.k. government set up a dedicated oversight mechanism to monitor huawei equipment in their networks, and huawei has not demonstrated in a 10 year period any improvement in their security engineering process. they are still doing the things they said they were going to fix 10 years ago. they promised a transformation program. putting $2 billion against it. there is no plan. there has been no change. i think the premise that you can establish an oversight monitoring board, it is just not cost-effective. and what will they get you? actions speak louder than words. we are not seeing the follow-th

you know, it's bigger than some of the other players you may have heard of like nokia and ericsson that the past few years, it's been investing so heavily in the consumer electronics side it's now the second or third-largest smartphone maker in the world, tussling with apple and samsung in the high end. it's been investing in its own chip technology. i talked about the supply chain a moment ago and what kind of impact and disruption that could have to huawei huawei's been trying to mitigate its exposure to the u.s., it's been investing in its own championshchip products and 5g which could put it in the competition with the likes of qualcomm. it is not listed but it is a giant technology company and certainly one of china's largest. >> arjun, a big story, thank you very much. >>> now let's bring in the president of the national foreign trade council. we brought you in to talk about tariffs and maybe not just china but mexico and i've got to get your response to this huawei story. if you're trying to negotiate a deal and you're the president, and then you ban one of china's biggest compan

huawei, nokia, ericsson. >> right. >> we have other aspects of 5g where we're actually quite good.o, this is a big challenge for us but many parts of 5g we actually can do quite well. >> what parts, just so we're clear? >> well, with the whole question of transmissions, the software questions. there are a whole range of things there are companies here that make chips for 5g, not necessarily the hardware at the center of 5g that is true. >> okay. let me ask you, where do you think we are in this trade negotiation? are we weeks away? are we months away >> you know -- >> are we never getting there? >> earlier in this month, almost everyone on the chinese and the american side agreed that there was a deadline may 10 was going to be the date. and they were making a lot of progress and there are four elements that i think are useful one is the structural issues, intellectual property, trade secrets, production, level playing field. second is the amount the chinese buy. they pretty much agreed to buy trillion, trillion-plus. they hadn't quite agreed on that the third question was how you

infrastructure so there's really no other alternatives to go to you know you have nokia and you have ericsson but they only represent a small amount of the market if you want to build out a five g. network in your country you gotta go to while away thank you so much miles edwards regulatory attorney. thank you so much kristie. time now for a quick break but first some breaking news we reported yesterday on the prospects of u.s. president donald trump's nominee for federal reserve c. stephen moore earlier today president announced via twitter that mr moore has withdrawn himself from consideration here because when we return the u.s. commodity futures trading commission chair says the explosion of interest in quote the currency could open the door for new clearing houses investigative journalist ben swan will give us the details. the bank of england announced that it would afford interest rates at zero point seven five percent following last month's decision to extend the bride said deadline to october thirtieth the way forward for the british american business association joins us to discuss w

opportunity within europe that huawei is deeply implanted in and i am sure that companies like nokia, ericsson, and others, are going to try to take share away from huawei within europe. paul: what is the plan for huawei to defend itself? is this a deathblow were just a setback? islet's keep in mind, it -- this a deathblow or just a setback? justet's keep in mind because you are on the entity list doesn't mean they will not be able to sell to huawei and to give you some context, zte was on the list two years ago in 2016. the suppliers were able to sell into zte but it was not until 2018 when the export ban was in place so we do not know what the timeframe will be, if there is an export ban. no product should be banned, in my mind, once they are in the entity list. it does however provide that framework. a couple things i can say. earning calls i listened to, huawei has stopped inventory components. it seems they may have a quarter or two of components to help provide, you know, to fulfill their smart phone orders. right? what happens. this is part of the trade war rhetoric. let's see what chin

some of the gainers included nokia and ericsson.l seeing maybe interesting because of the competition with quality -- , these telecoms makers are rising. everybody else is falling and you will see big, big names. down.is down, sap is interestingly, wirecard is one of the biggest point deductions. that is not one of the big names, but there are serious concerns about the government looking into wirecard for a legend fraud issues -- a legend --alleged fraud issues. let's get first word news. turkey has exited its first recession in a decade. gdp expanded 1.3% last quarter. a continued recovery still hinges on the prospects for the lira. a controversial rerun of istanbul elections is also keeping the market on edge. s&p has raised its sovereign rating for indonesia, citing the nations of strong growth prospects and prudent fiscal policy. this will be a boost for the nation's president. he has pledged to bolster growth and invest in infrastructure. the italian a deputy premier has one of the backing of his party's activists in an online

shares in rivals ericsson and nokia are both higher in early trade.google apps. ryanair‘s profits fell by nearly a third last year to £880 million as fuel costs rose and fares fell. europe's biggest discount airline added that profits could be lower this year as fares continue to fall. more in a moment. uk rail passengers lost an estimated 3.9 million hours to delays in 2018, according to consumer group which? the data covers trains which arrived at their destination 30 minutes or more late, and is based on 8.1 million such journeys in the year. about 80 trains a day fitted this "significa ntly" late definition. it's not been an easy ride for europe's airlines of late, and low—cost carrier ryanair is no exception. shares in the airline fell by as much as 6% today after it reported a fall in profits. ryanair also says earnings could fall further next year as it grapples with overcapacity, brexit and delays in delivery of the boeing 737 max. this tops off a turbulent time for european airlines and tour operators with easyjet, thomas cook and tui all sho

ericsson. they had tremendous presence in china, including nokia. somehow the risk mitigation measures in place satisfied the u.s. government. okia gnocchi a -- that n does not present a risk to the united states. we just want to talk to the u.s. government and talk about risk mitigation measures that might work in the u.s. so we can provide assurance and transparency. drew: you come from a federal cyber background? andy: i was a prosecutor. i joined the president bush team to secure cyberspace and then moved to homeland security in 2003 and we were setting up the cyber security effort. i led the u.s. cyber security effort. drew: did it take a bit of research on your part to say that you trust huawei before joining up? andy: i don't trust anybody. when i was recruited, on the part about reaching out, we will be advocates for a safer cyberspace. i have been able to be an advocate for a safer american cyberspace. i am not a defender of while -- i am not a defender of huawei. we need the best technology. it is critically important we address risks. i h

you can see ericsson up about 10% and nokia up nearly 8% back to you. >> seema moody, thank you for pointingr to sue herera for a news update. >> hello, morgan and everyone. here's what's happening at this hour house speaker nancy pelosi says democrats in the house believe president trump is engaged in a cover-up she spoke to reporters following a meeting of house democrats >> it's important for the -- to follow the facts we believe that no one is above the law including the president of the united states, and we believe that the president of the united states is engaged in a cover-up >>> north korea labeled joe biden, quote, a fool of low i.q. and an imbecile as a human being end quote after biden called kim jong-un a tyrant and accused biden of insulting the country's supreme leadership >>> surveillance footage from australia showed what was believed to be a meteor lighting up the night sky as it crashed down to earth. residents on social media posted images and videos of the light phenomenon the astronomical society of australia said it was a piece of space dust about the size of a marble

softbank's japanese telecom unit has selected nokia and ericsson as vendors for its next-generation wireless network. excluding longtime supplier huawei. they have been urging administrators to ban the company fighting security risks. japan has not made an official decision but local media say its shun whiles will zte.- huawei and it is threatening penalties bodyst the financial created by germany, u.k., and thece to protect trade with islamic republic from the u.s. sanctions. a treasury department letter obtained by bloomberg warned that anyone associated with it could be barred from the u.s. financial system. global news 24 hours a day on air and at tictoc on twitter powered by more than 2700 journalists and analysts in 120 countries, i'm jessica summers, this is bloomberg. shery: thank you. mighty u.s. treasury bond market rally is rolling on. the trade war undermines industrial confidence. economics and policy editor kathleen is here. treasuries have proven to be a reliable safe haven investments. does this rally have legs? investors moved to highly liquid long-term treasury bonds when t

it admitted its competitors like nokia and ericsson would catch up as a result of this blacklisting. he also said that they did have contingency plans in place. we have been told that they have been building out their stockpiles of chips since the middle of last year after zte faced similar actions from the u.s. he told me that they are developing their own chips that he is confident can replace many of the components that they got from the u.s. he said this was going to have an impact. another key take away was that hehad earlier said that called president trump a "great president." his tone in relation to trump changing dramatically. in our interview he said that comment he heard from the u.s. president would "-- was "laughable." and he was monitoring trumps its. an impact on the company, they have plans in place. we talked about those allegations against intellectual property theft and whether or not huawei and he would ever facilitate the chinese government in terms of spying. listen to what he said -- what he had to say in this interview. the u.s. has never bought products from

shares in rivals ericsson and nokia are both higher in early trade.—tax loss of £3.6 billion. the group is struggling to sell the luxury cars in key markets such as china. however, jlr returned to profit in the fourth quarter following a cost—cutting drive. the cosmetic surgery industry has just released its latest report. it shows demand for cosmetic surgery remains a very buoyant, despite a year where the high street has struggled. 28,000 procedures were carried out over the past year — a very small increase on the year before. the number of people opting for liposuction procedures has risen by 9% over the past year — and the british association of aesthetic plastic surgeons puts this partly down to a rise in popularity of tv shows like love island, and also the increased popularity of close—fitting athletic leisureware. the figures also show that women underwent 92% of all cosmetic procedures recorded. joining us now is rajiv grover, a consultant plastic surgeon who is the former president of baaps, the british association of aesthetic plastic surg

they are going to lead with samsung, nokia, and ericsson. it is not true that they should have to wait. there might be economic considerations. we hear that it is up to 50% cheaper on the front end, it as mr. krebs mentioned, the long-term lifecycle costs -- the u.k. found hundreds of vulnerabilities and their software. you have to constantly patch that. patching that is not worth the cost. it makes the cost longer in the long run. a the u.k. government set up dedicated oversight mechanism to monitor huawei and huawei has not demonstrated in a 10 year period any improvement in their security engineering process. they are still doing the things they said they were going to fix 10 years ago. they promised a transformation program. there is no plan. there has been no change. i think the premise you can establish is not cost-effective. actions speak louder than words. we are not seeing the follow-through globally. sasse: e i want to underscore two things. morenk -- i hope we talk about how security updates will work. we cannot envision right now

we are working with allies and other competitors to andei, samsung, nokia, there is a third 1 -- i'm drawing a blank. david: ericssonhere you go. these three all the alternatives. areeed to make sure that we incentivizing the deployment of 5g technology in our major cities and throughout rural communities as well, so that american companies are the ones that take advantage of the infrastructure that 5g provides. right now, huawei has 30% of the global market, and it is cheaper. david: this is a national security issue as you say. at the same time, we had these negotiations over trade going on with china. we just go to a brookings institution expert who said it would be impossible to keep those things separate. visit also love for this to not bleed over into trade? of this stuff is interconnected. one thing we should also do right now is go ahead and put additional sanctions on zte. handsets, produce the telephone, mobile handsets. they were proud to have violated a number of international sanctions. we could've put a ban on allowing u.s. parts to be used in zte products for up to seven years. this would have been a