ekholm, president / ceo, telefonaktiebolaget lm ericsson. what kind of increase are we looking at in terms of 5g orders? the five-year penetration is rapidly gaining momentum. and over the last two years it has been accelerated by over a year. we see the drastic acceleration of demand of 5g. so far that is driven by north america. .lso korea those markets are driving the 5g demand now. -- i know youk want to talk about your business and not problems other businesses are having, but do you see evidence of the huawei affect? is there any evidence about putting your numbers? borje: we cannot see any impact in our order books as of today. , the geopolitical situation has caused more uncertainty, and i would be more uncertain than normal. that is more of what we are seeing. we are not seeing any positive news from this. to see anyou able increase in margins as well? i know a lot of times in order to gain market share to get an edge over your competitors, you will have to give better prices .o customers how do you see margins developing now? borje

ericsson and nokia the 2 to the big european providers have really come on it's often said that the 5 g.'s services provided by by while way are the best and in some ways they are but because it's the security risks people are wondering if they balance out and there's a lot of considerations about whether looking at a trade war issues that we're talking about the moment to a level playing fields while way has gotten to where it is by getting hundreds of billions of billions of dollars in subsidies from the chinese government which obviously people like ericsson and others happen to have so maybe there's a consideration to sort of help the european companies that germany could be looking more favorably out there are lies all right well that that sort of used to certainly be the way to go about things under a as you were listening for many here in in europe and germany germany's move to sort of say oh we'd be ok to cooperate with you away came as something as a surprise how did it go down where you. well the thing is most of the southeast asian nations have already embraced huawei as th

nokia, ericsson, and you have huawei.ia, your stock got killed today, this is expensive, tough to compete. it would be tough to compete for all the issues that it has, blacklisting or anything else with a company heavily subsidized by the government. what do you make of the competition for 5g? >> i think the competition is best thing for nokia moving forward. i think nokia was under impression it would flip switches to make it work. it ran into problems with alcatel-lucent and radios and nokia technology, didn't really blend together they were hoping in some of the initial reports. curiously, a lot of places nokia put foot forward. that was not troublesome competitor but ericsson. ericsson took over contracts nokia assumed it would get. that caused a lot of early problems. you have to look at 5g technology as a whole. we're really excited about it from enterprise push perspective. the consumer adoption this year really hasn't been there. the rollout has been stuttered a little bit when it comes to phones that are having t

technologically advanced and because it's relatively cheap there are 2 european alternatives nokia and ericsson than via different if we say that we need technological autonomy in europe and this is the time to start and especially as we already have 2 options the mansions i had with so many questions still unanswered well way is likely to overshadow the german chinese trade relationship for some time to come. lawyers for foreman is on chairman collins go on want of financial misconduct charges against him to be dismissed in a court filing in tokyo they argue that the case against him is the product of unlawful collusion between prosecutors and executives with an axe to grind they say the brazilian businessman who is currently on bail awaiting trial is not receiving a fair hearing. it's the latest salvo of a man who has gone from legendary auto boss to accused criminal carlists go on now said to be too weak to appear before the media set his lawyer to deliver the bombshell claim that he's the victim of a set up. this case have briquet did nissan was concerned that if go on continue to stay with

ericsson has been very aggressive at grabbing contracts and their trying to increase their market shareery intense competition. when you consider the fall from grace we saw as nokia, for this day to register on that scale is quite phenomenal. thank you for joining us. our european stocks reporter for the latest on the considerably weaker stock. up next, we bring you some of the stock movers. we are focused on daimler after the company posted and earnings beat and pledged to cut costs. negativity around trucks the market has gone with the positive just shy of 5%. this is bloomberg. ♪ matt: welcome back to "bloomberg markets." this is the european open. there almost one hour into session this morning and looking at gains across the board in terms of the equity indexes. i am here in frankfurt for mario draghi's last meeting at the ecb. with that, let's get over to annmarie hordern for look at the individual stocks. >> good morning. annmarie: we had a host of movers. upant to start with daimler more than 5% in the wake of to profit warnings. it is much needed. umag to the downside, even kno

this back and forth between a chinese company, huawei, and its competitors both come from europe, ericssonsh company nokia? it doesn't seem as though the united states has been able to convince enough allies not to do business with huawei and go with the other two but how do you see it? >> i think that's essentially correct. huawei much ahead of united states developing 5g, ahead of nokia, developing 5g. the more the united states says to our friends or allies and other countries, don't deal with huawei because they might spy on you and so forth we're finding that many of those countries as often is the case try to find a deal. that is, they try to split the difference, split the baby. that is, work with the united states, some more closely like australia and new zealand. other countries not as close to us, try to cut their own deal, my big fear here frankly the more we try to isolate china, the more china gets the perception we're trying to prevent china's rise, they will double down even more, chinese will, they will go overboard to cut deals themselves for the other countries. it's a ve

sap, nokia, ericsson, all rising this morning.g side of the ledger, anheuser-busch, total, these big, giant stocks at the top, along with bayer, diageo. unilever, in terms of consumer staples. i suppose you could consider anheuser-busch and diageo consumer staples as well, depending on your proclivities. let's look at european markets, opening mixed this morning. anna, we see most stocks gaining, -- indexes gaining, but not by much. the cac unchanged right now. 0.3%.d ftse, up anna: sort of a flat to mixed picture, as investors await the next round of trade talks. they are set to restart in washington later this week. joining us with analysis, the head of asset allegation -- allocation. talks,ead to the trade if you could. we have seen confirmation that the talks will take place, but there are other tensions. the u.s. blacklisting chinese technology companies on human rights grounds. how optimistic are you for a deal? what kind of deal should we look to? a large, all-encompassing deal, or something narrow? >> we could expect a tru

currently, the only other major suppliers of 5g networking equipment are huawei, nokia, ericsson and all of those are foreign companies. as i'm standing here, there are no major u.s. producers of the secure and trusted communications networks that no federal funds will implement the service that poses a risk. given that language and the producers of telecoms, what manufacturer can we used to ensure that we will face the same issue later after the equipment has been renewed or replaced? >> i appreciate the question. unfortunately, that is not one of my areas of expertise and i can only speculate. i regret that i'm not in that position to talk about this in the mueller in the market. >> are there any -- answers anybody can answer this one. other any telecommunications equipment that could pick up the slack that will create in the market a certain foreign product. and if so, how long do you think it would take for that producer to create enough infrastructure to replace all equipment that is contemplated and in place. if >> if i may, i'll go back to the answer i gave guns word and it de

currently the only other major suppliers of 5g networking equipment are huawei, zte, gnocchi in, ericsson and all of those are foreign companies. as i understand it there are no major u.s. producers of this telecom technology. secure and trusted communications networks act will mandate no federal funds can use for communications equipment and serve an unacceptable risk to national security. given that lynwood and lack of u.s. producers telecom equipment, what manufacturer can we use to ensure we will not face the same issue later on after the risk equipment has been removed and replaced? >> i appreciate the question. unfortunately, that is not really my area of expertise and i could only speculate. i regret that i'm not in a position to talk about the suppliers in the market. >> okay. are there any, anybody can answer this one. are there any u.s. producers of this equipment that can pick up the slack that will be created in the market by prohibiting certain foreign-made products? if so, how long do you think it would take for that producer to great enough infrastructure to replace all the

ericsson and not nokia find themselves in an unfair competition with huawei and need to be supported but chancellor merkel out of fear of retribution would get us a little side of it that she wants to allow huawei in although she i think understands the security risks that are associated with if there were a different relationship to the united states right now if there were a different president do you think that miracles decision would be different you know i don't think it would be different because. what she's afraid of retaliation retribution by the chinese government we have the german government against german companies and our companies. and they're in to the china business the verde pendent up to 3040 percent of their revenue is dependent on the market in china and i think anglo american has decided that maybe compounded by trump and the volatility has injected is certainly a factor but i do think it's just the fear of retribution that's informing her but we're talking about the profit sources for companies for german companies that profits which is outside of the country in

prove that there was a new world and both of them showed up 500 years after a norse explorer a late ericsson set foot here back to the future this week marked the 250th anniversary of captain james cook landing the h.m.s. endeavor in new zealand ushering in colonial rule there and not all the kiwis were celebrating 9 indigenous people died in their 1st encounter with captain cook and 1769 and in 2019 laura clark the british high commissioner to new zealand acknowledged. that was greatly regretted by the crew of the endeavor at the time as documented in the diary of joseph banks. and this is regressive here today. it is deeply sad that the 1st encounter happened in the way that it did it and see you as the descendants of those killed i often my every sympathy. for i understand the pain does not diminish with time. coming up history is also happening here now and despite the president's hearty self congratulations we've got work to do this is the big picture r.t. america. on this edition of crossfire we demystify serious kurds almost all of the criticism launched against syria policy is not ro

product to a point where i can safely say today that their product is significantly superior to ericsson and nokia middle added that india must take full advantage of the relationship with china in this matter and should not risk becoming too reliant on the western companies in the 5 g. fight meanwhile south korea's samsung has officially ended production of their smartphones in china the company announced wednesday that the exodus comes amid concerns over the rising labor cost. and fears of an economic slowdown huawei and shell means market dominance in the world's number one smartphone market also played a role as samsung shares of the chinese market shrank to only one percent in the 1st quarter of 2019 the company has expanded production to come these like india and vietnam in recent years where production costs are lower. right healing service goober is making a big play for a larger piece of the so-called gig economy with a new app connecting bosses with temporary workers the launch of the app called her works in chicago on thursday is perhaps a predictable move but ober exacts may

cnbc business news los angeles >> ericsson has posted better than expected earnings lifted by strong performance in the 5g business and currency effects. upping sales and margin targets. that stock is up 6.6%. that is a big move in the context of the year. almost half the move happened in today's trading session. shares have risen following the earnings beat. so good day for the telecon industry again benefitting from the positive noise out on the day. follow us on twitter or tweet us directly >> coming up on the show, don't be a fool. president trump sends a strongly worded letter to his turkish counter part as the white house pushes for a cease-fire in syria. more after the break we're a reliable partner. we're engineers. cloud architects. developers. (woman) data scientists. we keep companies ready for what's next. we do things like protect their data. (woman) with security built right into their business. we virtualize their operations with software-based network technologies. (man) even build ai into their customer experiences. (woman) we also keep them ready for the next big op

nokia is behind ericsson and is going to struggle to catch up when it comes to 5g, that is right a markethem in such an aggressive way today. cash flow, pretty good. is cominges business back, the truck business continues to struggle. cash flows are affected, do we need to worry about cash flow going forward? actually, we are pretty comfortable with where we are. up.ier micro has a foot up, in some way soothing the technology space with a pretty updated metric, certainly being rewarded for that. level, we didn't see anything amazing today, up towards him key levels. that, the real volatility. >> the markets over here were really looking to get that green light push things higher. you see the dow jones down about a 10th of a percent, that is almost completely by the most recent earnings. they missed in the first quarter, missed in the second quarter, missed in the third quarter. investors are kind of giving up. on the flipside, you seeing why the nasdaq is up. tesla, that is microsoft flirting with a record high. at the same time, you are seeing the bids go back into treasury. people not q

ericsson is telling us, six .5 billion swedish krona.et sales, a eight on the estimate of -- a beat on the estimate. the third adjusted gross margin also beat with 36.6. we have some guidance as well. 2020. 240 billion for the numbersg like are beating and so is the guidance. a boost from 5g upgrades among other things. manus: on the commercial side, the troubled asset manager in switzerland, they are saying they will reiterate the 2019 guidance. net outflows in this quarter have been -- net outflows from the management side have been 1.4 billion swiss franc. they continue to see volatility. we have that denial that they were in any talks with generali. that is the guidance from gam. let's get straight to the markets. we have started the day with 10 year government bond yields. insipid retail sales. wasly what you saw here line from jpthat morgan. there is the potential for that and a nervousness in buyers. dollar you one at the bottom -- dollar yuan at the bottom of your screen. they warn, be careful. still 715 by the end of the year. g

with us about the traditional kinds of risk mitigation measures that for example allowing nokia and ericssonusiness in the united states despite their deep ties to china. they can do business in the united states because their subject to government monitored risk mitigation agreements. we would like to talk to the u.s. government about lessons learned from that in our experience in germany and brussels. we can come up with the risk mitigation that allows us to serve our customers. tracy: on that note, used to work for the u.s. government. i believe it was in the u.s. administration for bush as a cybersecurity expert. do you think the trump administration overstated the security threat huawei poses to the u.s.? andy: i think some of the government officials have said quite forthrightly it is not about the company, it is about the country, china. the fact is the u.s. government has concern. as the former head of public safety and homeland security for the fcc that will take that vote, the u.s. should not be distracted by all this discussion of huawei and chinese companies. the fact is sophisti

is doing through 5g and other things, ok, great, you saved a couple of pennies by having samsung, ericsson, or nokia, or huawei do your systems. if we are right, all of your privileged, prized data, that runs your civilization is going straight back to beijing." i would say on some things, let's keep the focus and attention on where we are being very american and trying to get our voice out there, yet, there is serious push-back in a way that is detrimental to free-market democracies around the world. >> 66% of france's communication is run by china. do you expect china to treat france better than they treat their own people? probably not. the point samantha is making, i think it is astounding the degree to which some of our allies have been accommodating the chinese communist party with such a brazen, obvious threat to their own security. >> is china going to respect the data privacy of the french and all of us? probably not. >> we will do two final questions. i will ask one question after another, and then answer those questions. and any final thoughts you have. nicholas? >> general mcma

locally whereas outside of areas where huawei does business you would see a benefit to companies like ericssonor 5g infrastructure. but i think overall where we are likely headed here is some kind of a deal, where we see a market much like the market we have seen in the past, where everyone is competing on the same traditional markets. shery: thank you so much for joining us today. more ahead on daybreak asia. this is bloomberg. ♪ bloomberg. ♪ news when itng comes to the believer -- beleaguered wework situation. we are going to get more details but we know we work will be spending the next month putting together a plan to try and get back to profit overgrowth after softbank really was successful with its restructuring deal. this is the latest twist and turn we have seen. from a former high flyer when it comes to the silicon valley dollar after the ipo did not work out and it is now bleeding cash. softbank is possibly part of its restructuring efforts for wework to be seeking a u.s. national security review of the deal put together essentially to save the company. shery: i was wondering why the

nokia said that competition from the likes of china's huawei and sweden's ericsson had increased, leading an hour watch those chairs today. more in aboutan hourand watch those chairs today. more in about an hour and a half. watch those chairs today. more in aboutan hourand a half. i'm watch those chairs today. more in about an hour and a half. i'm going off for lunch. lucky you! cyntoia brown—long was just 16 when she was jailed for life for shooting dead an estate agent she claims bought her for sex. she had run away from home and had been forced into sex slavery by her then—boyfriend — a pimp known as kut throat — who regularly sold herfor drug money. after being convicted of murder in 2004, cyntoia was told she wouldn't be eligible for release until she was in her 60s. but she was freed in august this year after being granted clemency by the governor of tennessee. a campaign to get her released was backed by celebrities including rihanna and kim kardashian—west. cyntoia joins us now from nashville, tennessee. thank you very much for agreeing to talk to us. you are very welcome on the p

maria: thank you so much jon hilsenrath good to see you we are with joanie courtney lisa ericsson asings can ge intoet into that a second the third quarter preach baked in cake we are going to see flat situation things is to pick up fourth quarter but guidance is going to be critical. >> we have been saying we would love more wage gains for the american worker in this report flip side of that maybe corporate orientation get a boost from the fact wages not rising as equitably as we might have thought we will have to see that is potential upside on the earnings front where are we october 5 we are going to get the numbers, within the next week getting in earnest third quarter numbers. >> i am struck by the slowdown in business sales, that ban center 201 when trade dispute broke out slowed dramatically, we've to have some sense some strong reason to expect, that sales growth at least is going to pick up, once again, let's not forget, that for companies that have you say more than 150% revenues from united states, they are showing earnings growth in second quarter was up 5% or so, for tho