we know about the company bytedance?he parent company as microsoft was in talks to purchase the us operations and take that off of byte da nce operations and take that off of bytedance and try and at least make it more palatable for president trump in the us. that organisation bytedance, not too much is known about them other than the fact that they have said time and time again that they are not affiliate with the chinese government. 0k, good to have you on, thank you so much. thank you so much, appreciate it. several european governments have expressed concern about the resurgence of the coronavirus cases in a number of countries, including belgium and france, where numbers appear to be heading upwards. spain, in particular, is struggling with a surge of new infections that has sparked european travel warnings, most notably from the uk. in france, the seven—day average of new infections passed 1000 per day this week for the first time since the first half of may. rates of infection in germany remain low, but health off

bytedance think it is going to win this?helly: it is about the principles from the get go that is the number one thing. as well, there may be certain parts of the order that they auld walk back, particularly first order says, if you do not sell to an american company by mid-september, you are going to be banned in the u.s.. perhaps they could get some sort of -- for that claim. unprecedented.s i think they want to at least try and exercise being a company in america to exercise their we want toy challenge them on that. here, weerms of timing have a few months until the election. is there any potential for bytedance to delay through the election? could it fight the legal battle sort ofld emerge, any shutdown, forced sale before then? how long could the legal remedies last? shelly: there is a scenario where bytedance wait it out and they say, we are going to call the bluff. we are not going to do anything. we are going to see what happens. from our reporting, that does not seem like that is the case. it seems leadership within

and around the world, bytedance its owner, the u.s.overnment saying we will shut tiktok down -- in the u.s. unless you find a way to transfer all of it to u.s. ownership and microsoft playing the role as potentially the only suitor for the business i wanted to bring everybody up to date on new reporting that i've got because it is interesting. both sides right now, bytedance and microsoft and of course the u.s. government is still very much involved in this as well are negotiating to try to reach some sort of an agreement under which microsoft would buy the u.s. business of -- texas tok's u.s. bit from bytedance within the next two to three weeks. that seems to be what they're hoping for in terms of a timeline obviously in these you do set a timeline to deal with the big issues the biggest issue has been involving technology and particularly the transfer of the software code that currently sits in china that runs tiktok we're talking as much as 15 million lines of ai. we talk often about whether the chinese have a lead in ai. well, ai

bytedance is a private company, wechas is not. you can see the stock sinking there overnight. affecting other major chinese stocks as well including alibaba and others the white house issued new recommendation on bans of chinese companies that do not comply with u.s. regulations forcing them to delist unless u.s. regulators get access to internal audits. imposing a payroll tax holiday as lawmakers remain unable to reach an agreement the president expects to sign orders on eviction protection and student loan repayments. as far as the talks, the chief of staff say both sides are a considerable amount apart. it seems like the refrain of the week >> everybody is apart until they come together. we'll get you some stocks to watch in a few minutes see you then >>> the nasdaq unstoppable run hitting the 35th all-time high and 32nd record close of the year the next guest has stock ideas outside that you might want to consider are you allowed to recommend nontechnology stocks is that even a thing >> i got an extension. it is allowed. what have you got for us >> we are not a fan attic s

in a fox business exclusive, sources close to negotiators at bytedance, the chinese parent of the wildly popular short form video app, tell me quote, if september 15th is the bottom of the ninth, talks with microsoft are in the top of the seventh inning and that microsoft's head start in expressing interest in tiktok has given it the momentum in holding the lead. these sources are also telling me that while a deal, a signed deal, whether that's a long form agreement or perhaps a shorter detailed sheet, will be complete by the 15th, that of course being the day president trump says he will ban the app unless the u.s. assets are removed from chinese control, the actual close of the agreement could take another three months due to the complicated technical nature of such a transfer. the deal would include tiktok's new zealand, australia and canada divisions but my sources are telling me quote, the uk assets won't be. quote, we don't want to sell tiktok uk. now, while neither tiktok, microsoft or oracle had comment, immediate comment, i'm told oracle with a much smaller $174 billion market c

the issue for the president is that the application is owned by a chinese company, bytedance, and thereat the data it collects from users will be passed over to beijing. it is a concern that has seen india already ban the app and australia talk of following suit, but not everyone is as worried. there are real national security implications with our media networks. the question at hand is really is this a good way to go about it? and simply banning tiktok is not going to do anything for national security. bytedance denies the allegation and, according to some reports, have agreed to offload the us operation of tiktok with microsoft taking over and assuming all responsibility for protecting the data of users, and there are questions about whether a ban would even work. you wouldn't be able to do it. unlike china or iran, where there is only one or two internet service providers, in the us, it is very, very difficult to be able to do that — there are so many telecom service providers. so even if you convince them to be able to do that, there is going to be a lot of loopholes and in all lik

number one is that tiktok‘s parent company is bytedance, it‘s a chinese parent company.ying, reassuring cooperation. now, tiktok‘s privacy policy itself disclaims that they might, if they want to, share data with china. now, tiktok says they don‘t and that all the servers with us user data are located in virginia with backups in singapore. but we keep seeing them in lawsuits and statements, reassuring, like, claiming that, yes, you know what, we can share it if we want to, but the same time we‘re not going to. so that‘s where the concern is. we haven‘t seen a smoking gun. at the same time, they also collect an immense amount of data and often it‘s reported that they collect about the same amount of data other social networks do, but it‘s not true. they have way more access, they collect way more data about the user, about their search history, the model of their phone and so on, so altogether it‘s not hard to connect the dots and say there‘s concern, but we haven‘t seen a smoking gun yet. at the same time, the overall owner, bytedance, is seeking to sell the us part of t

bytedance saying they will safeguard the company's legitimate rights.g up next, australia's second most popular city in stage four of lockdown. we will ask how long new measures in melbourne will last and whether we will see that policy replicated elsewhere. this is bloomberg. ♪ businesses are starting to bounce back. but what if you could do better than that? like adapt. discover. deliver. in new ways. to new customers. what if you could come back stronger? faster. better. at comcast business, we want to help you not just bounce back. but bounce forward. that's why we're helping you stay ahead and adapt with a network you can count on, 24/7 support and flexible solutions that work wherever you are. call or go online today. karina: you are watching daybreak asia. florida is bracing for tropical storm isaias over warnings it might strengthen their unit is expected to find a -- bring a sea surge and wind of up to 60 kilometers an hour. the storm crossed the bahamas as category one hurricane, killing one person in puerto rico. florida has declared a state

bytedance or microsoft? i don't think bytedance has any hands at all in this deal.ends bytedance. they did do a deal a few years ago that helped build tictoc for what it is -- tiktok for what it is. it is all in satya nadella's hands. him and the team have -- will have to deal with all the parties in the state department, the white house, the treasury and commerce to try and make them feel this is the kind of gets the american administration where they want to be in terms of china. i think bytedance has almost no room to negotiate. they will have to take almost any price they are offered. rishaad: is it a flash in the pan? will it be around for five years from now? could it go the way of myspace? that has to be factored in here. reporter: i absolutely think so, it is very popular now. almost 100 million users in america. it is going gangbusters. but if you look, it is an app that gets people's attention and it gets a lot of attention now in the covid pandemic. however i would caution people to look at snapchat. they posted 600% growth in revenue the year before the

how dare bytedance do that.t's obvious when the chinese communist party and president xi jinping pass the civil military fusion legislation that says you will hand over your data if we want it, that's all you need to know. that's all you need to know. bytedance be damned on this. they can go to any court in this country but -- liz: if they wanted to live -- [ speaking simultaneously ] liz: if they want tiktok to survive, they will sell it to an american company. the question is -- >> but how dare the chinese -- liz: will you and the administration demand, what will you and the administration demand of the buyer? >> again, i'm not -- not my lead, not my lane. all i can tell you is that there's a definite real national security risk and there has to be certain to 100% level that a tiktok that is sold will not be able to transfer the data of americans. you know, it's like, i don't know if you remember, it's 10:00 at night, do you know where your kids are. remember that old kind of thing? it's like today, it's like

his executive order bans transactions with tiktok‘s owner bytedance from mid—september.s to the chinese government — something bytedance has denied doing. in its lawsuit, tiktok said it had taken "extraordinary" steps to safeguard us data in response to washington's concerns and argued that the order is a misuse of national security law. tiktok currently has more than 80 million users in the us. the us is not the only country to introduce blocks on tiktok. india has banned use of the app, and australia is also considering taking action. we're now joined from leicestershire by emma wright, who's the commercial technology partner at kemp little.1. do you think tiktok have much chance of getting their ban overturned?2. good morning. whether it's successful or not in relation to president tom's order, president trump, in a subsequent order on august 14, has ordered bytedance to divest its us operations so this looks like trying to stop the fire sale of tiktok operations. there's been a lot of discussion around which us to ology company will apply for it. tiktok's position, b

and added that bytedance is still exploring other possibilities. a lot of the reporting out here is that bytedance does still prefer an independent spinoff. the company believes it is a victim of the intense political environment. it also said in a statement that it was a very frustrated with what it saw as underhanded tactics by one of its rivals in the u.s., facebook and then the chinese government, as it would, weighed in saying that it opposed any u.s. action that discriminates against chinese companies. but what was interesting is the reaction on social media here. because when the situation with huawei came up this upswell of nation nationalism, but with bytedance totally the opposite a lot of people online who are calling the founder a traitor because he dared to attempt to build a business in the u.s. they've also been essentially saying that he's calling him all sorts of names because he had praised american values and said that america, unlike in china as a place where you can openly discuss matters. so, i think what this shows is just ho

but it is owned by a chinese company, bytedance, and it is this last fact that concerns the us securityhere is in fact a precedent for this us announcement. india has already blocked the app, and australia is also considering a ban. here is our technology reporter chris fox. well, the app has been decompiled by security researchers. they've looked deep into it, and as yet, they haven't found a smoking gun. there's nothing obvious in the app that seems to be sending information back to the chinese. but, as with any chinese company, they can be compelled to give information to the chinese security services, and any app on your phone can gather lots of data while it's there. even american apps like facebook do this. they can scoop up your location data, your contacts, and things like that. and they store that on servers outside of china, so tiktok is run as its own entity outside of china. they run it as a separate business, and they say they store the data outside of china, so it's not subject to chinese jurisdiction. but i think the fear is that, with all that information about american

at the same time, the owner, bytedance, is seeking to sell the us part of the company.t hear about the negotiations about the sale until we heard president trump say he is going to. we are not sure what came first. maybe there were already negotiations in both because tiktok is still considered a start—up, but it has the highest growth rate. maybe the parent company was already negotiations. now, if they do sell tiktok hypothetically, that is supposed to take the national security interest concerns off, but it would take a lot of work. these mergers and acquisitions are not done easily, and a lot of the engineers as far as i understand are located in china and other countries, so it be like an infrastructure move. how are us tech companies like facebook dealing with this rival? i would say that different tech companies obviously have different markets and different focuses and facebook owns instagram, it is opposed to have something to rival tiktok in the marketplace. it was launched in the united states just a few weeks ago i believe, so we are not sure how the market

transactions with bytedance and we chat owner tencent. said the two companies present significant threat to national security adding that the apps could allow beijing access to private data of american citizens. the move is to take effect in 45 days we have this report. >> reporter: u.s. president trump has issued aek tiff orders blocking transactions with bytedance and tencent which owns we chat starting in 45 days time both cite national security concerns and address the threat supposedly posed by these apps it is the scope that is unclear. we are waiting to see how they'll be defined this comes a week after trump threatened to ban tiktok it has until september 15 to see its u.s. business snapped up by microsoft or see it banned in the u.s. this could put pressure to address some of these national security concerns. tiktok has come under fire in washington over concerns it uses data in america that could end up in the hands of the chinese government a similar order that threatens chinese government to access personal data of americans t

owner bytedance is considering it's best move.matt: welcome back to bloomberg markets. this is the european open. we are 23 minutes into the session. the u.k. is closed for a bank holiday, and the continental indexes getting between 20% and a little more than .5% in paris. and bytedance will reportedly need chinese government approval to sell tiktok operations in the u.s. that's after beijing added artificial intelligence technologies to its export control is. the order doesn't a push in -- list. ae order doesn't list the pp in tiktok's app. it's and at the lang the sale and isn't an outright ban. jodi joins us. how could these new rules hold back the bytedance sale? they said speech and tech recognition and recommendations to this list of products that require approval before they're sold abroad. those are the very technologies bytedance employs to make tiktok this viral sensation that it's become. approved, a deal sale approved in china, doesn't mean an outright ban, but does need approval. bys complicates the attempt the compan

disruptd this really the plans for the bytedance transaction? it really could either delay it or throw a wrench into the whole deal because the new areas that have been added to these tighter restrictions on artificial intelligence exports are the very technologies that uses to make tiktok this viral sensation. it would be required to seek the government sign off on a deal. a person familiar with the matter says they don't think it would stop it, but it could delay this deal. we are seeing several bids that have already been put in. we saw the bids from microsoft and oracle. they sent in rival bids. there also was another pitch on friday. andourse, president trump the trump administration once the sale done pretty quickly. that is something they said they would require if they were to ban tiktok in the u.s.. yousef: as we think about the implications of those rules going forward, is the risk that we move out of the risk to some of the software developers and more toward hardware and chip manufacturing? is that the real threat? yeah and it also,

that could sort of take tiktok off bytedance's hands. think it could probably take a year the idea you could unwind this company in 45 days seems ridiculous i will say i also think ridiculous the idea that twitter is going to buy tiktok it does not have the money, and it does not, frankly, have the competence to unwind that company for bytedance and then integrate it into its own operations >> but it comes down to what tiktok wants in that regard. do they want a partnership like you would have with twitter, and we all remember what they did with vine, and i think they regret that. they let it die. would they be a better suitor in that regard or go to microsoft and let them do whatever the heck they want to do with it >> i don't know, it's been like two weeks since a 17-year-old hacked into twitter and sold like 20 profile accounts on the service. i just don't trust this company with tiktok. bytedance is extremely angry that it has to sell at all, so i think they're going to be driven primarily by what is going to be the best financial ou

microsoft would pay bytedance in order to buy tiktok. microsoft might offer up something to the treasury at some point we'll wait for them to comment on that. >> while we have you here, what is the latest on the virus aid talks coming out of washington, d.c. are we any closer to a deal getting done >> when you look at the rhetoric needle, good to bad. we went from good to bad, that was sort of back up again. no specifics though. we did have a meeting from mitch mcconnell yesterday from white house staff. that did seem to have gone pretty well. saying there are some areas of general agreement including the ppe extension for small businesses but they are still spread apart on these negotiations even as american workers have seen that $600 bonus unemployment go away >> the hot spot in washington, d.c. still on deck, grounded. why shares of richard branson's virgin galactic may not be ready for liftoff yet and bp, made a dramatic move to its dividend. after this >> announcer: today's big number, 300% that's the increase in tiktok daily activ

if you are one of those investors in bytedance, you have to work to get more interest in this becauseou are not going to get a pricey one. it is interested to see the deep pocketed entrepreneur who is close to the trump administration and trump supporter not unlike ted leones. you have two trump pro businessmen there. >> i'm trying to understand. microsoft does have a consumer facing business. primarily linkedin and binge oracle is a back-end based software company i saw the headline and thought why? >> it is very strange. you could argue it is data play or on investment sales force was minutes away from pushing the button to by twitter. so it is not unheard of for these companies to go for something with a ton of data or information about consumers. for oracle, this would be the biggest step there the reaction this morning has a lot of people scratching their heads as to why it has gotten into the mix >> good stuff there. very bizarre headline. maybe bizarre potential deal maybe they want to get their headline splashed. they got it because we are doing this segment have a good day. >

bytedance, the parent company of tiktok said all along as well.eing official about this saying that that timeline is a little aggressive. september 15th though has been blocked out, saying that has to be the date you get a deal or you're banned in the u.s. stuart: it's a little hiccup, but enough to put microsoft on the downside where as earlier they were up a couple bucks. susan, thank you. >>> tropical storm isaias causing real serious damage up and down the east coast. give me the latest on this, ash. ashley: that is with the storm itself, stu. it is up in canada, in the proffer vince of quebec but it left quite a trail behind it, coming onshore in north carolina as a hurricane cat-1. it moved straight up the northeast coast and as we know, causing a lot of damage. two people by the way killed in north carolina by a tornado. they were in the path of that. when it got into new york, new jersey, pennsylvania, connecticut, all sorts of storm damage reports. one person killed in new york city when he was in a car that a tree fell on. numerous repor

there's a high likelihood of this getting done for bytedance, backs against the wall. is not microsoft, ultimately that is a dark chapter to go down. emily: 75% to 80% is a pretty high likelihood in a very controversial environment. the president set a deadline that seems to be done in the next 45 days. do you really think they could do a deal that quickly? dan: i think the technology issues and security issues in terms of the lines of code, cross-pollination between u.s. and china, that is going to take some time to actually get worked out. think deal perspective, i $35 billion, $40 billion for u.s. assets along with canada, new zealand and australia. they want to get this deal done. for facebook and zuckerberg, it is a nightmare scenario when microsoft gets the tiktok asset. a game bytedance, it is of high-stakes poker. september 15 comes and that is a code red situation. emily: what does it mean for other companies like apple, like google, that have huge businesses in china and have actually for years been working on building those bridges with china? in termscially

he is also the coo of bytedance, the parent company. spins off its u.s. what does kevin mayer do? does he go to microsoft or stay with bytedance and continue to run tiktok in other countries that are not the u.s.? there are a lot of confusing parts to this that are going to have to be figured out if the deal is going to get done in time. the president says it needs to be done by the middle of next month, september 15. emily: do you have any sense of whether there are any other interested suitors? i know some of the big tech companies are under antitrust scrutiny and it would not be a time to pursue a deal with tiktok, but is microsoft the only one in the running? kurt: we had a story a few days ago that there were other interested parties. what we have not been able to confirm is who those are. we have seen a few reports come out since then. apple quickly jumped into deny they were interested. there was one yesterday or the day before that verizon was a potential suitor. you may recall verizon was being tossed around as a potential acquirer of twitter a c

toalso -- it also extends bytedance. -- tiktok says it is shocked by the move and build challenge it.er round of emergency stimulus from the bank of england. the hit from the coronavirus was shallower than initially thought, but that upbeat assessment was lost on the markets, driving the dow with expectations of more flareups in the virus. and a messy brexit. governor andrew bailey says he is ready to support the economy is necessary. their hopes for a speedy economic recovery in germany, and a rebound in manufacturing is catching up with the services sector. there was a 9% gain in june, with factory demand rising. it suggests europe's largest economy may bounce back more quickly. global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries, i'm ritika gupta. this is bloomberg. tom: a big storm a few days ago, huge power outages across the pies -- the tri-state area, and now manhattan. there is a substantial power outage beginning about 25, 30 minutes ago. it is certainly on the upper west side and some of

bytedance has been the subject of a cfius review since december of 2019.edance to say they're not aware of this, that's not true. it's been telegraphed by trump. india banned tiktok and wechat. tiktok should have seen this coming, they had ample time to address the national security considerations. saying they're shocked, that this is conjecture, to me it sounds like an excuse. todd: are we going to stop with tiktok or do we anticipate more pushback from china on the tech front. >> the critical thing about this, this was all rolled out in a series of executive orders on targeting wechat, targeting tiktok, other chinese social media applications, as well as the state department's clean networks initiative. this is part of a fulsome initiative, expens comprehensivk at what china is doing, how they're using laws and policies as weapons, standards and governance in the tech world as weapons against the united states. trump -- they're confronting this head-on. they need a systemic risk-based criteria to continue with other applications. doing this piecemeal app

transactions with bytedance. tiktok has 45 days to get a deal with an american company. >>> marking milestones is a lot different recently. a san francisco company is trying to celebrate its milestone, but its future remains uncertain. golden gate fortune cookie company in san francisco's chinatown is celebrating its 58th anniversary. friends and family came out to celebrate the store's milestone while enjoying some of its handmade cookies. but it's not all fun. the owner of the store says he is struggling to keep his business afloat amid the pandemic and increased xenophobia. >> normally i don't celebrate. i on the celebrate this year because this year is a very special year. >> the owner added that his celebration today was able to bring some joy to his customers and his co-workers. >>> a casino in tracy is gambling on its future by moving things outdoors. stars casino was able to bring employees back to work. because of this move, card tables are set up on the patio. social distancing is in effect. what you're

those talks and because ming, bytedance's coo did have a preexisting relationship with microsoft heas the one running those deal talks with microsoft and mayer was not. kevin mayer was not the one who got to make the decision about whether or not tiktok was going to be bought out by an investor group which would have been mar for beneficial for him and his potential role in the company. the fact that he was not the leader of them really ended up driving the decision to especially leave now in anticipation of a deal being announced shortly. >> my work says that this date, hard date, september 15, this man wants to -- wanted to have a big ipo, hoping to become a company -- leader of a gigantic entertainment company and not going to happen, go back to l.a., come up with something new. what i'm intrigued by is does this cut in favor of microsoft i say that because with oracle you might have had an investment group that was going to play a very big role because oracle could only apparently buy 20%, that's all they wanted to do, the investment group was going to buy 80. does this say it's

it is owned by chinese company bytedance.mp -- trump wants to curb china's influence in the united states. bytedance is under pressure but china's not backing down. >> we call on some individuals in the u.s. to listen carefully to the voices of the international community, to provide an open and fair environment for each market and its investments in the u.s., to stop lettuce icing investments and trade issues, and to stop abusing the concept of national security to promote discriminatory policies. in beijing, r reticence -- residents say they are surprised that an app has been dragged into a fight between politicians. >> i think is because the united states-china relationship has really deteriorated recently. >> we use many apps and software developed by the u.s.. tiktok has been successful at gaining many users around the world, but i did not expect that due to put a coat reasons this could affect the economy and even app users -- due to political reasons, ththis cououd affect the economy and app users personally. >> suffer

bytedance wants to shake off the reputation of being a chinese company. is under the chinese jurisdiction. india has banned tiktok, which is interesting because they've also cited national security concerns. australia has mentioned their worries and so, too, has south korea. this is definitely not an issue just endemic to the united states. the big game changer here will be and of course the fate of tiktok in the u.s. really does hinge on an acquisition and change in ownership. for the millions of tiktok users in the u.s., they have cited their concerns and anger and they've said they're heart broken and of course that is going to be an interesting one to watch. many of these people will be heading to the polls on this year. interesting what happens when you take away a favorite social media platform. rosemary. >> an incentive for the young voters to get out there. we'll see what happens. >>> u.s. lawmakers and white house officials will meet again in the coming hours to try to reach agreement on a stimulus plan. a key sticking point is the extension of t

i'm talking about people themselves imbedded in bytedance or in -- also in wechat for sure.he communist party's national congress, he stood up and say hey, we've got to control the internet. these guys not only do they have to turn over that data to the chinese communist party, but they also censor anything that has to do with hong kong, all of that, and they have been doing it for years. liz: beyond an app that's popular with teens and the gen-zers dancing and showing their animals, this is much bigger than tiktok, that's what i'm hearing, the amount of data china is already buying from data brokers out there is huge. why is this fairly small but high profile tiktok transaction the president's focus and will the issue be more widely addressed? >> well, yes, absolutely it will be more widely addressed and that's why we announced an expansion of the clean network. now this is -- this is a comprehensive approach to protecting people's privacy, the most sought-after intellectual property and also to guard trusted collaboration. so this is much broader than these companies. i th

. >> they are finally starting to focus on the value that is the talks between microsoft and bytedance, the chinese company that owns tiktok around the world including u.s. property, which is the one at issue right now and the one that microsoft may buy. they have not yet gotton a discussion of value because they have been very focused on determining other important things having to do with the national security concerns of the united states, which, of course, as you guys know has been at the table dealing with these negotiations as well specifically i'm referring to the fact that microsoft has now received what i am told by people familiar with the negotiations is a one year deadline after close by which they will have to transfer all of the shoplift wear code from bytedance that undergirds tiktok's app in the u.s. to the united states. that's a huge undertaking not easily taken on by almost any company except perhaps microsoft and a handful of others given how many software engineers will be needed to actually do that transfer so now knowing they have a year to do it of course, micro

bytedan bytedance, a chinese company will have to sell all of their u.s.or face an allout ban. the trump administration cited national security concerns as the reason for the executive action as they claim bytedance may be given americans' personal information to the chinese government. >>> just two days after israel and the united arab emirates reached a landmark acard sealed by president trump and raised by joe biden, iran and germr turkey united in criticism against it describing it a a step that can't be stomached turkey announced it is now considering suspending relations with the uae and recalling its envoy. iran slammed the move as a stab in the back to all muslims. matt bradley joins me from lond london. we didn't really except iran and turkey to be on board with this. how significant is this threat from the turkish president? >> when you talk about turk irk president erdogan, he has become or stylized himself as a champion of the palestinians, the champion of the palestinians outside of the palestinians themselves in the last several years. but is

firstly, they have been announcing they're in talks with bytedance, the parent company of tiktok, islly significant. and it comes over the same period you had president trump saying with conviction his intention to ban the social media platform, even willing to issue an executive order to do so. microsoft ceo i think was on a phone call with president trump over the weekend discussing the potential deal, and microsoft saying, look, they want to conclude this as quickly as possible. and hopefully by the 15th of september. you've got to remember, with any acquisition there has to be due diligence. you have to look at national security issues. and the national security issues regarding tiktok really pertain to the fact its parent company is chinese-owned and chinese-opened companies should be able to hand over any information requested by the chinese government. that is the big concern here. that if u.s. data is handed over to the chinese government, that would mean a national security breach. now, bytedance, the owner of tiktok, has basically tried to shake off the perceptions of it be

by bytedance in patrick ryan, at google 10 years and then joined bytedance a couple of months back.is contention is essentially as well, unconstitutional, that he hasn't received any notice and that the ban was an effect -- would in effect the private from having a job and a paycheck. as a u.s. citizen, he says i see a clear due process problem. that one is in san francisco. shery: what is the white house saying? also what is being said about tiktok's chances? david: it is a tough sell. for one, and it is separately in our story, decisions made by the committee of foreign investments are all but impossible to overturn in court. that is the legal reality. we are getting a comment from james dembski, the executive director at the berkeley center for law and tech. he says courts generally do not challenge the president when he invokes national security, that is one. the other is that it would be a tough sell for tiktok or bytedance to establish that they did at the beginning have the first amendment right. that is the legal challenge and the reality is that seldom do we see these thing

over the weekend, bytedance reportedly sweetened its offer. c.e.o.ing promised to sell his stake and divest bytedance from the u.s. tiktok, completely. and president trump gave his blessing in a phone conversati th microsoft c.e.o. satya nadella over the weekend. >> i don't mind ifther it's microsoft or somebody else. a big company. a secure company. fvery an company buy it. >> schifri more on tiktok and the security concerns surrounding it we turn to samm secks. she is a cybercurity policy and china digital economy fellow at neamerica, a washington based think tank. >> welcome to the "news hour." you just heard john talk about how data in a chinese company can end up with the chinese government. anwe watched how most of these videos opti on tiktok are pretty silly. how valid are e administration's concerns? >> let's like at the concerns one by one. the first one is data collected on the platform could hand up in the chinese government. it has never responded to a lawfl data request. so that's risk number one. the second question is around censorship

what about the executives that bytedance? are they willing to relinquish control or fight back?hery: the founder said that the u.s. is not trying to save tiktok, but kayla day off. i t could happen -- but hill -- but kill it off. that could happen. negotiateen bytedance in europe but at the same time, it has received a lot of criticism from chinese medicine -- chinese netizens. u.s. tries to go ahead app, thenons this really it opens up a pandora's box. it would not only apply to tiktok, but any chinese company that takes mobile information, popular games like call of duty. thingse: talking all gaming at the moment with the earnings coming in. the ramifications are also global and that other companies could follow suit. we have seen india lead the charge, interestingly. what is it about india and how are we seeing geopolitics at play? shery: this is a country that continues to clashed over border disputes. early in june, they had that deadly conflict in them only as the resulted in 20 -- himalayas that resulted in 20 indian soldiers dying. already in june, they have released the

portion of tiktok working to challenge microsoft's office after trump gave bytedance 90 days to divest u.s. operations tiktok already had until september 15 to have its u.s. operations snapped up by microsoft or face a ban in the u.s. this newest order has further pressure to sell and has given a hard deadline to do so the u.s. is also tightening the screws on another chinese company that is huawei further limiting the company now access to semiconductor chips. the commerce department had already imposed restrictions which were made on the software without a license. this goes further and adding 38 affiliates to the government black list saying that they tried to evade earlier restrictions by working with third parties. this is said to be aimed at circumventing huawei and is also aimed at trying to close loopholes that huawei could potentially use. u.s. pressure has already taken a big hit to the company this could deal a huge blow to the firm sch already had limited options and could be costly. in sydney? back to you. >>> epic games have made it impossible to offer any new apps to app

the two executive orders on tiktok, which is owned by bytedance.r came down august 6. it was a 45 day order saying after the 45 days, u.s. businesses and consumers could not use the app in the united states. it was superseded by another executive order, giving bytedance 90 days to divest the u.s. business of tiktok to an american buyer. microsoft has acknowledged interest. in a statement, tiktok says it strongly disagreed with concerns raised by trump in the executive order on august 6, saying there were national concert he -- national security concerns. also saying there was no due process ahead of the order. separatet, which is a executive order, a group of users made up largely of chinese-american lawyers have asked a federal judge to block trump's ban on what they say appears to be all users of we chat in the united states over national security concerns. the complaint filed in court by the u.s. the users alliance claimed the ban is unconstitutional. they also claim the executive order was vaguely worded and does not define what transactions wi

bytedance, they knew that they were about to get squelched by the trump administration for months.hey have had meetings with everybody from microsoft, obviously, to twitter which doesn't have obviously the balance sheet to do the deal without massive amounts of borrowing and fund-raising. it makes sense that oracle joins facebook and google also, from what we understand, looked at them and maybe others. apple, there was a report that apple looked at them. they say they're not interested but they still may have looked at them. everybody has looked at tiktok here. everybody's had what's known as preliminary discussions. there is one discussion that's advanced beyond the preliminary and that's microsoft. now, again, microsoft could walk away from this thing. this is a very complex deal. if they do walk away, you got to ask yourself why is oracle any better at doing this than microsoft. just given their relative size and scale and what their expertise is in. so again, you know, i think we have about two or three weeks left before that trump administrative order kicks in. it was a 45-da

over the weekend, bytedance reportedly sweetened its offer. the c.e.o.ellis stake and divest bytedance from the u.s. tiktok completely. over the weekend, president trump gave i his blessing in a phone conversation. >> i don't mind, whether it's microsoft or somebody else, a big comny, secure company, very american company, buy it. reporter: for more on ttok and the security concerns surrounding it, we turn to sam saks, a cyber security fellow at new america, a washington-based nink tank. welcome to theshour hour. you just heard john talk about how data in a chinese company can end up with the chinese government. we also watched how most of the videos on tiktok are pretty silly. how valid is the adminiyration's secur concerns? >> let's look at the concerns one by one. the first one is that data collected on the ptform could end up in the hands of the chinese government. most likely through the parent company,ytedance,ince according to tiktok's transparency report, it has never respondedo a lawful data request. so that's risk number one. thsecond question

government says behind all the fun and games, tiktok's can censor speech gany bytedance doesn't like, and steal users' data for the chinese government. as secretary of state mi pompeo recently told newsmax: >> this isn't as innocent as it appears.e this is inese communist party using data sets for security.of their own naonal gave bytedance a mtemberouse deadline to sell. and today microsoft, as well as oracle, are in talks to buy tiktok's u.s. operation, even as tiktok pursues its lsuit. before it was filed, i sat down with tiktok global chief security officer roland cloutier, who spent 15 years ase chierity officer for u.s. companies, and before that, a decade in the u.s. government. welcome to the newshour. the white house says that tiktok represents a threat to u.s. national security, foreign policy and the u.s. economy. does it? >> absolutely not, nick. we allow a community of users to express themselves, enjoy another, have it, and have families actually be together on on a technology that is all about sharing, and all about sharing their their together. so we're not in any way

bytedance theoretically is a private company. the chinese government, it is majority owned by china. it does play a role. if microsoft buys bytedance or buys tiktok, it's going to be buying technology that maybe the chinese government does not want to give up. remember, there's a lot of levers here that need to be pulled. this is the fifth or sixth inning of this saga. it's not the ninth. so this thing still needs the play out. we are going to be reporting about this, i believe, up until september 15th. which is the deadline donald trump gave to microsoft to come up with a deal plan and a way to make sure the chinese aren't involved. this is a fascinating story, involves geopolitics and technology, social media. it involves donald trump which is -- liz: guess what? it also involves my teenaged daughter who will be furious if tiktok goes away. hold on a second, charlie. we will just note that facebook's stock -- hold on, hold on -- facebook's stock is jumping 6% right now. we have breaking news on this. as we wait for the presiden