john you know very much wants to make a deal because the companies are leaving china to avoid this carol china is becoming a very weekend day. in the battle of wills between the world's 2 economic powerhouses trump is confidence china will seek a deal on his terms but beefed up by decades of growth and modernization china is convinced it can hold out far from rolling over the reaction has been defiant don't say we didn't warn you thundered the communist party mouthpiece people's daily as it started to the big guns after the u.s. took aim at tech giant huawei beijing has threatened to use its dominant position as a supplier of rare earth metals for leverage they're essential to everything from wind turbines to missiles china could also targeting u.s. companies like the vastly popular starbucks or apple china is apple's 3rd largest market with nearly $52000000000.00 in sales mostly selling i phones the trade war is impacting on america too. there's a lot of pain in the short run and as i said earlier a lot of that pain is falling on sectors like agriculture. and i think the calculus is how long

carol: you have investments in china. >> i do. 'm curious, basically saying china is not our friend. how do you see the chinese market in terms of transparency issues and where they are positioning themselves against the rest of the world? we've had a lot of success in a chinese markets. they crossed over to a service economy for many years, driven by exports and manufacturing. we haven't been that affected and won't be that affected by the trade issues. so, i think it's more of a global issue. if you think about it, 500 million goods come in from china to the u.s. and 100 billion go -- goes out, so that's a large imbalance. obviously, there should be rebalancing. if we get into a long-term trade war, we need to rebalance in terms of them taking our goods, having similar things on patents, protection of software. carol: do you think we can get that, in terms of enforcement? steve: they've come a long way since the early days, and the service companies can take control positions in china. i think they realized to be on the global st

carol: how do wecarol: rebalance with china? to rebalance in : terms of them taking our goods, having similar things on patents, protection of software. access to markets. carol: do you think we can get that, in terms of enforcement? steve: they've come a long way since the early days, and the financial service companies can take control positions in china. and so i think they realized to be on the global stage, they are going to have to have the same kind of rules as western economies, and we have to negotiate something to come to the middle. i think it is too important not to get that done. carol: these are two individuals, president xi and certainly president trump, who like to win, and are thinking about their constituencies back home. is that going to be problematic in terms of actually getting a deal done? steve: i think they're both dealmakers and both strong leaders, and they'll recognize it's bad for each country to be in this situation. so i'm hoping that cooler minds will prevail. they are good leaders, and they are tr

carol: that said, china is an important market. >> correct. l: i am curious, as you innovate new products. i know, i remember your sneakers so well, but you guys made a commitment to being about 100% fitness, and have seen dramatic growth in apparel. talk to me about that. >> well, the fitness industry is not just about footwear, luckily for me. apparel plays an important role, and specifically functional product, innovative product. so one of the examples, the rebook bra we announced last year in august. talking to women, we realized there's a real problem, despite the fact there are a lot of bras out there. they are either peeling paint allle working out, or not at comfortable. so we have one that combines a second skin feeling with the support. carol: you brought a model of the chemical or compound that makes up this bra? >> correct. fluid, weickening call it sdf. when you press it softly, it is fluid and elastic. but when you approach it with force, it resists. carol: how much are you doing with apparel? it is not just about design, althoug

carol: you have been doing that for a while. >> this makes us less dependent on the portion we are producing in chinaf an issue. having said that, china is an important market, and i am curious as you innovate new products, i remember your sneakers, but you have made a commitment to being about 100% fitness. you see dramatic growth in apparel. >> the fitness industry is not just about footwear, luckily for me. power plays an important role, -- apparel plays an important role, and innovative products. one product we launched last year in august, through our research and talking to women, realized there is a problem despite the fact there are bras out there. they are either feeling pain when working out or not feeling comfortable so they do not work out at all. we created the first innovative broad that combines a second skin feeling with the support you need while working out. carol: you brought over a bottle of a thick, clear solution, that is the compound that makes up this bra. barbara: yes, it is when you press it softly, it is fluid and elastic. when you approach it with force, it's thickens. car

i am carol massar in boston. before last year china imported 40% of u.s.the recently researchers are million metric tons of plastic will be left with nowhere to go. students at m.i.t. have developed a robot that can identify recyclables. for more than three decades china has been one of the biggest importers of plastic waste. that is changing. last year china closed its doors did two dozen foreign recyclables sending countries scrambling. , china imported 40% of the united states recyclables. researchers estimate the new policy could leave 111 million metric tons of used plastic with nowhere to go. now a team of researchers at m.i.t. are looking to sort through the pileup. artificial the learning lab have developed a robot that can identify and sort the site levels. a softtem includes teflon hand that uses tactile sensors to detect the size of an object and the pressure needed to grab it. from there it determines if it is made of metal, paper or plastic. ,s it stands, recycling centers materials can become recyclable altogether. 25% of all u.s. recyclables

carol: do you ultimately see, as u.s.-chinade negotiations go on, and they push for more openings, will it impact something like a well-established alibaba or tencent? kevin: i think it will affect them positively. at the core of the sort of trade tensions, tariffs, china exporting a lot and not buying as much of our stuff. the good news, china knows they have to rebalance their economy towards consumption. the consumption numbers continue to be quite good. there is no company better positioned for the future consumption than alibaba, and tencent in its own but different way. carol: one last question. your advice to investors right now in terms of their exposure to alibaba or tencent. kevin: they are both reasonably priced companies. their growth rates, alibaba's is higher than $.10. -- tencent's. they are both growing quite well. the p/e ratios are reasonable, the peg ratios are less than one. buy and hold both of those companies. carol: we will leave it on that. kevin, thank you very much. he's the founder of emqq, joining us

carol: and why it is hard to sell a mega yacht in china. his is "bloomberg businessweek." ♪ jason: welcome back to "bloomberg businessweek." i'm jason kelly. carol: at sign carol massar. join us for bloomberg businessweek everyday on the on the radio from 2:00 until 5:00 p.m. you can also catch up on our daily show by listening to our podcast. jason: and find us online and through our mobile app. our finance editor shepherded this week's special money issue. carol: we talked to pat about two of our favorites. when is how chinese tycoons are different from counterparts in the rest of the world. jason: and a high-stakes succession battle in samsung. pat: the family behind the samsung conglomerate has about $15 billion in assets but is located in a country with one of the biggest estate taxes in the world. this is about 50%. so when the chairman passes away, there is a question about what is going to happen not to the money, but to control of this complex web of companies. jason: let's talk about that web. people think samsung, tv's and cell ph

. ♪ carol: before last year, china imported about 40% of u.s. recyclables.ever, the recent report and import ban on over two dozen recyclables have researchers predicting that there will be millions of waste left with nowhere left to go. student that m.i.t. have developed a robot that can identify and sort recyclables. it can help really sort through the pilot that is out there. take a look at this. ♪ carol: for more than three decades, china has been one of the world's biggest importers of plastic waste. last year, china closed its doors to dozens of foreign recyclables. importede ban, china about 40% of the united states' recyclables and researchers estimate the new policy could leave 111 million metric tons of used plastic with nowhere to go. a team of researchers at nit looking to sort through the pileup. students at m.i.t. computer science and artificial learning lab developed a robot that can identify and sort recyclables. soft, rocycle, it is a teflon hand that uses tactile sensors to detect the size of an object. from there, it can determine if it is

china? stephen: we need to rebalance of them taking more of our goods, having similar things on patents, protection of software. carolou think we can get that? in terms of enforcement of that? stephen: they have come a long way and financial services can take control positions in china. they realize to be on a global stage they will have to have the same kind of rules as western economies. we have to negotiate and come to the middle. it is too important for both economies not to get that done. carol: these are two individuals, president trump and i who both like to win. will that be problematic in terms of getting a deal done? stephen: they are both strong leaders and deal breakers and will recognize it is bad for each country to be in this situation. i am hoping that cooler minds will prevail. they are good leaders. they are trying to get something good done for each country. they will come to the market. carol: on the market volatility, do you attribute that to u.s.-china trade negotiations is there something fundamentally going on in our market economy? stephen: the good news is we are at record low unemployment a

it's not don't do business in china, just do it smart. carolabout the trade talks going on. what kind of policies can the united states put in place that really pushes the chinese to not steal intellectual property from u.s. companies? this has been a sticking point for a long time. >> it has been a sticking point for a long time. it's all about behavior, not about what you agree on paper. we have had agreements in the past. we have not releasing behavior change. the key will be enforcement. the way we try to do is to use sanctions to put chinese companies in a position where they cannot import parts from the u.s.. we have done that successfully. that is what we are doing with current tools, bringing cases obviously against defendants, especially insiders. those are folks we can arrest and get them here. we have arrested for the first time in history a chinese intelligence officer in belgium and had him extradited here. there are a variety of things we are trump to do in terms of enforcement. it is all about behavior, more than agreement. carol

carol: u.s.-chinaed about how that -- i think in the latest earnings call -- impacting forecast for the industry. it is going on longer and longer than we all thought. what is your thinking now about where it ends? are we in some sort of cold war between the united states and china? china is an important market for you guys. david: china is an important market to customers, which makes it important to us. we support policies to try to enforce and get china to live up wtoheir wti obligation -- obligations. full support during. at the same time, the longer this does stretch out, we have more customers exploring to the flex ability of our network supply chain changes that was they make those changes whether we have a trade deal or not later on those don't get reversed. i think we still have time, and we really encourage leaders on both sides of the pond, so to speak, to find an agreement that works because time is not our friend here. carol: thank you so much for your time. really appreciate it. david abn

carol: i do think about the u.s.-china relationship. the business sector, it has been a tricky one. everybody wants to be in the chinese market because of the size. >> it is a big market. carol: exactly. what perspectives do you get from u.s. companies about being very careful about u.s. policy that you don't push too hard? it's a tricky balance. >> certainly. we try not to do anything that would jeopardize our business. we are following violations of u.s. law. for instance, companies come to us, we are careful not to reveal their identities unless we have to go to trial, unless they want to be revealed. that is a way we can work with them if they are stepping forward, but we are not proclaiming from the mountain tops that this country was targeted. carol: coming up next, u.s. transportation secretary elaine chao talking to us about boeing's troubles. this is a story in the news that has yet to be resolved. jason: absolutely. also caught up with the ceo of bp, bob dudley. it was earnings day. we talked about oil prices and also, warren

carol: i do wonder about how you look specifically at what is going on between the u.s.-china regulations. it is having a big impact on the stock market, obviously. sentiment will move a couple of points a day depending on what the headline is. own internet companies in china, india, africa, south america. this is a secular trend. the trade wars are about agricultural products, manufacturing products. importantly, it is about economying the chinese towards consumption, toward alibaba, and a lot of that involves buying u.s. goods. i think alibaba is in a good position to benefit from the imbalance. talk a little bit more about tencent. tencent shares were not. are you making some forays into new businesses, specifically finn tech? how do you see their outlook right now? kevin: they have obviously been affected by gaming, the government restriction of new gaming licenses, which hurt them a lot last year. they underperformed the broader market last year, they are underperforming this year. there is some light in the tunnel in terms of gaming moving ahead, which is their main busi

. ♪ carol: before last year china ported about 40% of u.s. recycleables. resents report and import ban things have ozen researchers saying 11 million tons of plastic will have nowhere to go. students at m.i.t. have developed a robot that can identify and sort recycleables. it is dubbed rose cycle, which can help with the pile-up that is out there. take a look at this. >> for more than three decades, china has been one of the world's biggest importers of plastic waste. that is changing. last year china closed its doors to two dogs foreign recycleables. before the ban, china importered about 40% of the united states repsycheables. the new policy could leave 111 in million mets rick tons of used plastic with konopka to go. now one team of researchers at m.i.t. is looking to sort through the pile-up. have .'s learning lab veloped a broadband that can identify. it includes a soft hand that uses tactile sensors. from there it can determine if it is made of metal, paper or plastic and establish a most path. as it stands, recycling centers are task the with the pr

china. reducing meat consumption. as the mission of dutch artist caroling needling her new concept for lunch meat is meant to appeal to carnivores you adds different types of fats most and therefore you're reducing me school sumption but still people get the sets faction of eating of bits of meat but ultimately you can also create associates with this is liver and variance and basically you can really see 25 percent of prediction if we start to reduce recognize it will have a much bigger effect of faking needs or are growing meat in a lump or it's. oyster mushrooms on the other hand are completely vegetarian these are grown on coffee grounds the scarred by the museum's café. you won't get full on the snacks from the food lab but they may provide food for thought visitors can choose the ingredients according to taste and ecological considerations and then get a tailor made morsel. to curators at london's b.n.a. invite us to reflect on our daily eating habits and to understand the endless cycle involved after all everything we consume eventually ends up here. and that food is an exhibition that peaks more than just our

joining me is christina, carol roth, joy layfield and governor mike huckabee. china'sop trade o enscroi envs heading to d.c. let's go to edward lawrence at the white house. where do things stand right snow. >> the official registry notice is being formalized so that the u.s. trade representatives office can add that on the good coming into the united states, raising tariffs from 10% to 25%, we're talking about inflatable rafts, plywood, raw silk. they're working on adding 25% tariffs of about everything else that china imports into the united states. the president says that's $325 billion more of stuff coming here. the chinese trade delegation coming on thursday and friday of this week. the vice premier is going to be the lead in that. now it's an interesting note. he's not going to have the title this time of special envoy for president xi jinping. that means he speaks for the chinese president. he had that title the last several rounds of face-to-face meeting. instead coming a as the lead negotiator. now a spokesman for the chinese foreign minister says it's the u.s.

carol: what has this meant for food consumption, specifically pork or alternate food consumption in chinadoes it impact the global food chain? >> meat processors in australia and brazil are reporting increased demand. in the u.s., pork exports to are underarticular tariffs right now, so there is a lot of anxiety for farmers hoping to see them gone. that could also be additional pressure on xi to reach a final deal, although that has become kind of fraud -- fraught. numbershen you put the into perspective and how quickly this has spread, has something can quickly affect our global flute -- food supplies. >> you realize how interconnected everything is, despite these western movements. it is amazing. we looked around and we saw that in spain, prices have gone up, in the u.s., they are up, in china, up 20%. so much so that the central bank in china is looking at this. is the biggest single element of the consumer price basket in china so this will affect inflation. jason: staying in asia but moving to media and music, the social app tictoc is grating a phenomenon in asia and across the world

war but i think a lot of people are looking for tougher stance against china and this intellectual property theft. melissa: yeah. carol, i'm surprised to see the market react so much if it is indeed what it is to the tweet on mexico. we were talking about mueller. the president made announcement, saying i have something huge on the border. he threw out the thing about the tariffs so that everybody would say, why are we, why he is talking about this now? oh, because 1000 people crossed the border on wednesday alone. he is trying to focus the conversation, our attention down there. would you really take this to the bank so to speak in the market when so far it is tweet policy? >> i know but the markets don't like uncertainty. they certainly don't like rule by chaos. like jack said we understand perhaps tariffs when it comes to china. this makes absolutely no sense when it comes to mexico. you will punish them economically, the reason why people pass through mexico to come to the u.s. is for economic opportunity. one of those things you can't get your head wrapped around from the strategic standpoint. melissa: but you're

carol: what has this meant for food consumption, specifically pork or alternate food consumption in chinadoes it impact the global food chain? >> meat processors in australia and brazil are reporting increased demand. in the u.s., pork exports to china in particular are under tariffs right now, so there is a lot of anxiety for farmers hoping to see them gone. that could also be additional pressure on xi to reach a final deal, although that has become kind of fraught. carol: when you put the numbers into perspective and how quickly this has spread, has something can quickly affect our global food supplies. >> you realize how interconnected everything is, despite these western movements. it is amazing. we looked around and we saw that in spain, prices have gone up, in the u.s., they are up, in china, up 20%. so much so that the central bank in china is looking at this. pork is the biggest single element of the consumer price basket in china so this will affect inflation. jason: staying in asia but moving to media and music, the social app tiktok is grating a -- creating a phenomenon in asia

seal a deal and warning to china the more tariffs could be on the way hi everybody this is bulls & bears i'm david asman joining me on the panel christina partsinevelos, carolert wolf and jeff. well the president sounding off on china saying he's going to bid his time at a deal. let's go straight to edward ce

joining me is christina, carol roth, joy layfield and governor mike huckabee. china'sheading to d.c. let's goo

seal a deal and warning to china the more tariffs could be on the way hi everybody this is bulls & bears i'm david asman joining me on the panel christina partsinevelos, carol roth, robert wolf and jeff. well the president sounding off on china saying he's going to bid his time at a deal. let's go straight to edward lawrence at the white house with the very latest on the fallout. >> reporter: you read the tea leaves it looks like the tariffs could be around for a while the president saying we are not ready for a trade deal with china as of right now the president adding that there could be a good deal at some point in the future just not today. >> i believe that we will have a very good deal with china, some time into the future, because i don't believe that china can continue to pay these really hundreds of billions of dollars in tariffs. i don't believe they could do that. businesses are leaving china by the hundreds by the thousands going into areas that are non- tariffed including the united states, by the way. >> reporter: you heard the president believes the supply chains are starting to shift, as companies look to the future, chinese companies now de

i'm jason kelly. >> i'm taylor riggs, in for carol massar. >> over in the economics section, markets had priced in a short u.s.-chinarmish, war, whatever. >> but now they are bracing for a much longer, bruising, drawn out fight. >> michael regan joins us. you have been talking to our colleagues on the desk and also talking to investors who got this wrong. >> there's a consensus coming in to the equity market, ripping higher, and the consensus was that, ok, the trade conflict with china is nearing an end, they would reach a deal soon. obviously that got ripped up when president trump tweeted earlier this month that he was going to increase tariffs on existing imports, and then came the threats of another set of tariffs on $300 billion more in chinese imports at 25%. like i said, it was a consensus, and whenever you hear that word, it should make people worry on wall street, what if the consensus is wrong? it turns out they were. >> we talk about scenario analysis -- what are you learning about the downside risks we could see on the equities side? >> a lot of people are talking about a 10% drop, which would take the s

later there is going to be and the impact here in china ok adrian brown life press and aging thank you adrian joins us now from washington d.c. so carol am president has always insisted that these tariffs are actually going to be paid for by china that that's that's not how this works any expert will tell you that's not how this works having said that these tariffs keep coming it is affecting the american consumer is there any hope that this will be resolved. yeah well as adrian brown just reported there is hope that this will be resolved in the next round of talks that will take place we know in beijing but again the timetable hasn't been announced but there's no question you're right that donald trump is certainly trying to downplay the impact on the american consumer and experts agree there will be an impact and it is only going to widen we know as far back as september big retailers that really help americans specially working class and middle class americans sort of afford to live their day to day lives while retailers like wal-mart for example get an enormous amount of their goods every day goods like shampoos conditioners lugga

carol: we have been focusing on a couple stories this week. you have china, but more pertinent to you, i think about some of the ipo's that came to market, companies that you know have been around for a decade, like uber. it didn't go so well. i wonder if you think, how long do we stay private before going public? chris: sure. first and foremost, we are happy being private and putting investments in pilots and r&d and breaking through to the future for the restaurant community. i've had a lot of friends that have gone public recently, and we are in no rush. we are working on long-term shareholder value, so the opportunity for us is to build a company in boston for the restaurant community that is built long-term. carol: as you said, a very untapped market in the restaurant space. i know you don't like to give out numbers, but give me an idea of growth rate? chris: we are growing north of 100% year-over-year. carol: in customer base or revenue? chris: both. carol: wow. chris: we have over 1500 employees. since we last met we probably added 1000 employees in t

stocks have tumbled sharply on monday after china hit back with those plans to raise tariffs tariffs on 60 $1000000000.00 worth of us carol is on those lines at the new york stock exchange so it's clear. that investors in the market don't like this. now they don't like it at all they don't like uncertainty market traders don't and that's exactly what we're seeing now the worst case scenario according to traders was no trade deal last week trump slaps more tariffs on china and china responds in kind and slaps tariffs on the u.s. worst case scenario that's exactly is what's playing out now and that's why we're seeing this huge drop in the market we see the dow that as of just a few seconds ago is down 590 points at one point just in the last hour was down more than 600 points the nasdaq down 250 points s. and p. 500 down over 2 percent these are all numbers but there are key numbers bullish just look at the dow and this is really why it's so important if you're going to remember any numbers today let it be these that i'm about to tell you apple the world's biggest technology company down 5 percent boeing the world's number

china could absolutely happen. much faster than people think. i'm david, thanks for joining us. joining me today, carol ross, robert wolf, john and mark. the president telling reporters earlier today, american woman in the trade talks. listen. >> they want to make a deal, it could absolutely happen. in the meantime, a lot of money is being made by the u.s. our people want to go someplace else in china where they can really, the ideal, the products in the usa. that's what i really want. you want to know something? we always win. >> let's bring in former u.s. ambassador, china max, thank you for coming. trump things the tariffs are working. you may not think they are. what would you do to get china to stop cheating on trade? >> frankly, he's doing the right thing by calling out the chinese practices. there's no question about that. calling them out, specifically what would you do? >> i would keep things right. lower the rhetoric. i would not tweet. i would negotiate with the chinese privately. sit down one-to-one and say hey, we can't take any more of this. if you don't make changes, here are repercussio

would be able to outlast china when it comes to economic growth and the state of the economy. is that going to happen? carolam not sure we ever bought into that argument. we said for that entire time that it was unwise to shortcut and dollar for dollar match the tariffs that could potentially go on. there is an awful lot of things that can go on. we think is in the state draw too hard of a line in the sand that no one can save face and back away from. have a welled to integrated, well functioning system, and it benefits everybody to did -- it benefits everybody. it seems like both sides are intent on wanting to talk, but hopefully we get settled down enough that there is enough room in the interim for them to meet at the table and get something done. shery: we will be looking forward to that meeting. thank you so much for that. , deputy chief investment officer. you can get a roundup of the stories that you need to know to get your day going on today's edition of daybreak. bloomberg subscribers, go to dayb on your terminals. also available on mobile on the bloomberg anywhere app. you can customize your

china could absolutely happen. much faster than people think. i'm david, thanks for joining us. joining me today, carolnd mark. the president telling reporters earlier today, american woman in the trade talks. listen. >> they want to make a deal, it could absolutely happen. in the meantime, a lot of money is being made by the u.s. our people want to go

carol massar. >> i'm jason kelly. we are here at bloomberg headquarters in new york. >> this week, the costly farewell brexit is having on business. >> also, the price of all the wrong bets that a u.s.-chinald be short. >> in the global story -- the cover story, we

china will be very successful. ♪ [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org caption content and accuracy. visit ncicap.org carolsar in boston, and this is "bloomberg technology." coming up in the next hour, we are looking at the best of boston's burgeons tech hub. we discuss what is on the cutting edge in some of the city's biggest industries. plus, stocks slide as the trade war escalates. the trump tweet threats and

carol: you have talked about diversifying your supply chain, and i assume you have been doing that for some time. how much of your supply chain, chuck, is still in chinae actually operate in 10 different countries around the world, and we don't go into specifics, because on any given day, it could be any number. but we have -- suffice to say, the amount that is coming into the u.s. that is subject to tariffs is nominal, because that's what we talk about at the end of the day. our teams do this as part of their jobs. they do this on a regular basis based on risk mitigation, where are component suppliers, the most cost-effective ways to get components into our supply chain. there is an element of tax, and all of that comes into play as we think about how we lineup our supply chain. jason: you talked about trade, we have also talked a lot about huawei, and one of the implications everyone is wondering about is 5g. what impact is that now, in the short-term? how much do you worry that 5g deployment could be derailed or slowed by these actions? chuck: i actually don't worry about that. i think there are multiple suppliers around the world that provide macr

carol's family. when dateline continues. >>> here's what's happening. president trump spoke with vladimir putin on the phone for over an hour on friday. he said they spoke about a nuclear deal that could include china also the mueller report. north korea fired short range missiles off the east coast saturday morning according to a military official. they are analyzing the details of that launch. now back to dateline. >> welcome back to dateline. i'm craig melvin. detectives believe mike was on the verge of confessing to the murder of his wife. then the investigation hit a wall. without a body, how could they prove there was a murder at all? the answer would accepted investigators in an unexpected direction. could facebook help them find out what really happened to carol? here's keith with secrets in the mist. >> the deputy da believe mike killed his wife, carol in 1981. they had a big problem. they couldn't prove carol was dead. >> the biggest assumption is how do you know she's not out of the country or across the country. >> an important question with no for. then jim wallace got the flu. lucky break? no, really. >> my wife came in and when you work these cases, this is all you talk about. the ca