costly it would be to shift some of the production out of china there was also the co-founder of foxconn one of the suppliers and companies that doing business with this co-founder of foxconn is actually urging people to move some of the production from china to taiwan but we also got some other news outside of pull that. the commerce department here in the u.s. is actually banning 5 more chinese technology companies to purchase components from u.s. manufacturers that on the other side might be hurtful to some of the u.s. chip makers semiconductor companies or they're doing business with those chinese firms so not of news flow and yet of speculation when it comes to the trade tensions between china and the u.s. now yes you're there wall street where it's been another wild week stock surging over the past month in fact what's behind the gains briefly if you can. well the very main reason is that wall street is quite certain that the federal reserve is going to cut interest rates by the end of july so that would make money even cheaper and that money could get invested into the stock marke

i've already decided to fade myself out from foxconn i already decided to hand over the operations of the company to the 9 person standing committee of the management committee. i have a lot of confidence in them i think all shareholders can rest assured they will do an even better job than me. go whose company is china's largest private employer was keen to signal that his wish to be president of taiwan has nothing to do with his business interests on the mainland. on a visit to a shrine last month he said he was running because mark through the sea goddess had told him to. walk if matsue of the sea go to a says that you should step up then it's not in order to make money nor is it for my personal enjoyment. i go plans to run for the beijing friendly coleman tank or though he still has to win his party's nomination he's the odds on favorite recently the party awarded him with a certificate of honor for 50 years service the bulk of goes investments are in china where he employs more than $1000000.00 workers union and it's china's cheap labor that has underpinned his business empire in

and china have gone south as of late other nations are taking sides foxconn has said that they will be able to move apple's production out of the people's republic of china r.t. correspondent alex mchale of it is on hand to catch us up on what shaky relations can mean for manufacturing. amazon has now claimed the title of the world's most valuable company as they are beginning to wade into the new sectors out of matches on how to break down tech giants are making their way into the finance sector and later children of sun mexico have been avoided for know what could be in store for troops or a coalition of the center for international policy joins us to break down trade across the southern border we've got a pair of shoulder those so let's go dive right in. i counsel murder leads our global report today as the european competition commission blocks the merger of the steel making units of india's tata steel and germany's these same crop the 2 companies had previously fact off the proposal after the e.u. competition commission signaled that both companies would have to divest certain ass

china trade conflict foxconn is the world's largest contract electronics maker and assembles products for major international brands including apple and qual way go who's been at the helm of foxconn for more than 4 decades announced he was vacating the big chair at the company's annual general meeting in taipei or you j.d. . i've already decided to fade myself out from foxconn i already decided to hand over the operations of the company to the 9 person standing committee of the management committee. i have a lot of confidence in them i think all shareholders can rest assured they will do an even better job than me. go whose company is china's largest private employer was keen to signal that his wish to be president of taiwan has nothing to do with his business interests on the mainland. on a visit to a shrine last month he said he was running because much so the sea goddess had told him to. watch if matsue the sea got a says that you should step up then it's not in order to make money nor is it for my personal enjoyment. i go plans to run for the beijing friendly cormen tang or though

to the head of taiwan's foxconn is stepping down to enter politics following a bit of divine intervention. also in the sole rags to riches thai style however once for son of a fisherman is making millions today selling fish on facebook. this is business. as welcome as a military clash between the u.s. and iran looks only to have been narrowly averted the tensions are making the air above iran unsafe some of the world's biggest allies voiding flying over the over a section of iranian airspace after a u.s. military drone was shot down america's federal aviation administration has banned all u.s. registered passenger jets from passing through iranian controlled parts of the gulf of oman and the strait of hormuz other areas are also taking action. a global hawk drone like this one has a wingspan greater than a boeing 737 after one was downed over the strait of hormuz the u.s. federal aviation administration began to fear an actual commercial jetliner could be next the f.a.a. says the nearest civil aircraft was around 80 kilometers away when the strike happened in the busy section of sky he cl

away and foxconn is one of those companies that is affected by this now what foxconn is saying is listen which is their biggest client and that happens to be an american company there saying we can start moving our operations or productions out of china to one of our many other facilities that we have across the world and we can supply you a valid way now of china is not of when it comes to foxconn foxconn is taiwan base so as you can see here it's a bit of a split moving away all these operations out of china.

china trade war one of the world's biggest employers taiwan's foxconn technology group says that it is preparing to move its production facilities out of china why is that. foxconn is worried about what investors are thinking investors are seeing this long war between china and the u.s. get longer and longer this trade war is something that a lot of people in the business community in the investment community want to see go away and foxconn is one of those companies that is affected by this now what foxconn is saying is listen which is their biggest client and that happens to be an american company there saying we can start moving our operations or productions out of china to one of our many other facilities that we have across the world and we can supply you a valid way now of china is not of when it comes to foxconn foxconn is taiwan base so as you can see here it's a bit of a split moving away all these operations out of china into different parts of the world but again you know these guys make i pads they make i phones they assemble these things so apple is very reliant on them now

i have already decided to fade myself out from foxconn i already decided to hand over the operations of the company to the 9 person standing committee of the management committee i have a lot of confidence in them and i think all shareholders can rest assured they will do an even better job than me. whose company is china's largest private employer plans to run for the beijing friendly comment turning although he still has to win the party's nomination. now listen up because this is no sailors they are somewhere in the depths of the contat rian sea off the spanish coast line large chests filled with bottles of exquisitely aged wine just waiting to be raised from the sea but here's a deep dive into chris so a treasure and underwater winery. show is no ordinary diver he's a wine maker on his way to work and his wines are aged 20 meters below the waves made from temporary neo and other spanish great variety the wines are stored for up to 18 months water pressure total darkness and constant temperatures accelerate the aging process and add complexity to the one. hour winds can be slightl

foxconn is worried about what investors are thinking investors are seeing this long war between china and the u.s. getting longer and longer this trade war is something that a lot of people in the business community in the investment community want to see go away and foxconn is one of those companies that is affected by this now what foxconn is saying is listen which is their biggest client and the hope is to be an american company there saying we can start moving our operations or productions out of china to one of our many other facilities that we have across the world and we could supply you that way now we're trying to is not of when it comes to foxconn foxconn is taiwan base so as you can see here it's a bit of a split moving away all these operations out of china.

and it just happens to be that china is a massive hub for that kind of stuff now foxconn works mostly on i phones i pads that kind of stuff it assembles them and you know they're ready they're saying yeah we're going to move but how do you do that how do you pull so much of your operation out of china and where does it really go to so they're reporting making the shift but they're saying you know what look at apple apple we've talked to apple and what apple is saying to lose without all but the trade war there there's more to this than just a trade war that's going on right now and as you just mentioned that trade war might go away but as it stands it could go in the other direction where there'll be 25 percent tariff added coming very soon the stuff like i phones i pads and laptops but here we go this is the whole problem with apple saying it's not about just the trade war it's about china itself the birth rates are down the costs of labor are getting higher and decentralization that we spoke of a little bit earlier and might be just too much for for our full and for other companies

alistair: foxconn is a major partner of apple.ecutive was talking to an event yesterday about how they could move any of the assembly activities of iphones bound for the u.s., they could move that from china to taiwan or other areas they already operate in. this executive was pretty sanguine about that challenge. other people we have spoken to said it depends how much they want to do. if it is final assembly, that might be possible. that really shows some of the flex ability of the global to -- supply chain we have. shery: they are testing the series in india. what is the potential for this country? alistair: in india, this was a related issue. over a year ago now, the indian government basically said to apple that yeah, you can set up retail stores and sell iphones but you have to make the phones in india. with the help of foxconn and other partners, apple has started to do that. it is this issue of final assembly. you may make a lot of the components in countries all over the world but you bring them into china, you have a facto

i think in particular for foxconn and u.s.phones, it would be quite a heavy lift to get it done but it would be possible. we are hearing foxconn has been testing some iphone xr's in india. how big will that be for the company? >> that is another issue that apple has faced. india has said, you can have access to the massive indian market, but you have to actually produce your product in india itself. so apple has been adjusting to that, i would say for over year already. subtexts toof the all of this, the trade war, that the global supply chain may shift, in ways that are hard to shift back. these companies don't make these decisions like the. is this something we are seeing across the tech space, like semiconductors, having a rethink of where the supply chain will be? alistair: companies are thinking about this, getting ready to move. we have another story coming out later -- which i will not tell you about now -- but a very large u.s. tech company is moving manufacturing out of china pretty soon. shery: all of these measures

vonnie: hon hai, of course also known as foxconn, had a plan for a wisconsin plant.hat would have employed 13,000 people. does its plan for wisconsin changed materially at all? alistair: the executive who was speaking yesterday seemed kind -- pretty bullish about the wisconsin plant and he kind of placed it in the same strategic realm, this idea that you could move the iphone assembly out of china. india is something to consider, too. foxconn has plants in india already and was dealing with similar types of restrictions from the indian government. so it certainly does have a lot of options around the world. emily: bloomberg tech's alistair barr. wave of antitrust scrutiny is not stopping salesforce from gobbling up the competition. this week, they agreed to buy tableau software for more than $15 billion. tableau helps customers turn raw data into easily understandable charts. it is expected to give salesforce even more ways to help customers. it is salesforce's biggest acquisition to date and means they have now bought more than 60 companies in the last two decades.

vonnie: hon hai, of course also known as foxconn, had a plan for a wisconsin plant.hat would have employed 13,000 people. do those plans change? alistair: the executive who was speaking yesterday seemed kind of bullish about wisconsin plant and he kind of placed it in the same strategic realm has moving the iphone assembly out of china. india is something to consider, too. foxconn has plants in india already and was dealing with similar types of restrictions from the indian government. it certainly does have a lot of options around the world. vonnie: alistair barr, thank you. alistair barr of bloomberg technology. when it comes to taking an antitrust lens to pick tech, it is not just a federal game. today, nine states and the district of columbia filed suit to block the merger. it is between sprint and t-mobile. here's new york attorney general letitia james announcing the action. >> a fabulous group of attorneys, unsealed a multistate lawsuit in the united states district court of the southern district of new york to halt the proposed merger of telecom giants t-mobi

but now foxconn says they can produce enough phones outside of china to meet u.s. demand. so, if, morgan, we need our smartphones. could you imagine if there was suddenly you go in and i want that new smartphone and you can't get it, we don't have it it's not made enough there could be a public outcry on the trade fight like we have not seen don't take away our phones >> and i think that is part of this whole situation right. if you see tariffs increase on smartphones that are imported to the u.s. what happens to that increase cost does it push it out to consumers, et cetera foxconn is expanding has capacity in india and expanding manufacturing in india specifically for the iphone there. if they can get aroundthe potential future tariffs, then maybe you don't have to -- >> or former milwaukee resident, how about that big factory they were supposed to build in kenosha, wisconsin >> foxconn says we'll hire 13,000 people in racine, wisconsin, and doesn't do it do you believe they'll do what they say when they manufacturer outside of china >> that factory was never meant for a

helped to create foxconn for many years.f course, foxconn is where apple produces pretty much all of its iphones outside of india right now, out of china and now he's stepped down to run for president of taiwan. wouldn't it benefit him greatly if apple moved some of his production from china to taiwan? wouldn't he look really good as president and a great campaign slogan to say he's trying to get the iphone moved to taiwan? people have to understand what's going on. there is the political side for him and the political side for apple, so he has a lot to gain by making this happen. >> bigger picture, all of this is based on a report nikkei, asked the china-based suppliers to consider moving production outside of china to perhaps southeast asia. do you think that would ever happen and what are your broader thoughts on the implications of apple even considering this, at this point? >> i think that will happen in time. i point back to four years ago, when apple started to consider doing production with foxconn outside, actually

they did not say apple asked foxconn to do this yet, but he was saying they are very capable of doing it. it has raised a lot of questions. we spoke to an analyst over here who looks at the smartphone industry, and he was saying that if you're talking about actual final assembly, which is what foxconn does, putting together all the components in an iphone -- if you are talking about that, it might be relatively easy to move. if you are talking about the whole manufacturing process for an iphone, that would be a lot harder. vonnie: we know that politically china and taiwan are a little bit at odds. is there any danger that china would retaliate against the company if this were to happen, if apple were to move all of its production to the taiwanese company? alistair: yeah, that is a very good question. apple has got to be very careful in general with this kind of thing. some of the activities that are going on with huawei in the u.s., where the u.s. government is encouraging companies and consumers to steer clear of huawei, that has raised concerns about what happens to the treatment of

vonnie: hon hai, of course also known as foxconn, had a plan for rate wisconsin plant -- plan for a aisconsin plant. do those plans change? alistair: the executive who was speaking yesterday seemed kind of bullish about wisconsin plant and he kind of placed it in the same strategic realm has moving the iphone assembly out of china. india is something to consider, too. foxconn has plants in india already and was dealing with similar types of restrictions from the indian government. barr thankstair you,. when it comes to taking an antitrust lens to pick tech, it is not just a federal game. today, nine states and the district of columbia filed suit to block the merger. here's new york attorney general mes.sta james -- leticia ja >> a multistate lawsuit in the toted states district court block the proposed merger of telecom giants t-mobile and sprint. when it comes to corporate power, bigger isn't always better. bloomberg'sing us, senior antitrust analyst jennifer rei. will this action have any impact on the doj? jennifer: it is possible. it may have been filed when it was filed to put pr

in particular for foxconn and u.s.heavy lift to get this done, but it would be possible. ♪ >> british lawmakers have quizzed always global cybersecurity offers are, as they allow the chinese government to have a role in the next generation broadband networks. what were the highlights of this hearing? >> this is about the ongoing debate about the role they should be playing in the uk's next-generation network infrastructure. there were some very tense moments during this hearing. both parties really grilled this executive, and even accused him of being a moral vacuum when he explained it is not their role to decide what laws are right and wrong, but that they will follow any country as long as they operate within the country. the former prime minister had decided that they should be allowed to provide at least some part of the uk's 5g network, but there are other candidates that are taking a much stronger negative stance toward it. it will be up to the next leader to decide what role they are going to play. ♪ of states

thailand is another major location foxconn could move to.eality of the global supply chain for smartphone components. it is a situation where these multinational companies can adjust to what's happening on the ground. i think in particular for foxconn and u.s.- bound iphones, it would be quite a heavy lift to get this done, but it would be possible. >> british lawmakers have global andwei cyber security officer, as they considered whether to allow the chinese government to have a role in the next generation broadband networks. what were the highlights of this hearing? >> this is about the ongoing debate about the role they should be playing in the uk's next-generation network infrastructure. there were some very tense moments during this hearing. both parties really grilled this huawei executive, and even accused him of being a moral vacuum when he explained it is not huawei's role to decide what laws are right and wrong, but huawei will follow any country as long as they operate within the country's rule of law. former prime minister theres

next it's a familiar story a billionaire turning his eye to politics this time is the founder foxconn the biggest electronics contract manufacturer in the world. who is leaving his post as chairman to run for president of taiwan? who is seeking to represent the china friendly opposition party in next year's elections? he handed over the running of the company to the newly formed nine member operations committe. who says he wants to leave space for the next generation of foxconn well he helps to lift taiwan's economy? i definitely will come back to fox con. i will not interfere. my top priority will be the interests of the republic of china. only of the republic of china is doing well well folks can have the opportunity to take flights along with the republic of china june it's economic ups on where an individual wants to be buried is a grave financial matter the funeral industry in france is valued at over two billion. euros we take a look at one aspect burial plots that go up for auction so large measure has the story. does all this on an investment for eternity or at least until the

now foxconn, we know that it assembles a lot of apple iphones , a lot of apple ipads, foxconn, to be clear, has not yet started according to our sources manufacturing and other places other than china, but the company said it has numerous locations around the world, some even in asia, obviously but then some in south america as well. foxconn saying it is completely prepared to distribute the assembly plant if these tariffs continue so neil there you have three big tech companies making bottom line decisions based on the trade between the u.s. and china neil back to you. neil: deirdre thank you very very much you're seeing president there with the polish president, they're very much joined at the hip on key issues both are conservative and nationalistic if you will very skeptical of climate change and dealing with the chinese and very skeptical of taking on refugees and poland one of the few european powers that said until we have a process in place , we are not going to be placing a lot of those refugees here. they call him, that is president duda, she trump-like here, and how these

foxconn has said it could move production for u.s. iphones outside of china, but where does it go?t go as fast as it needs to go, potentially? >> they can paint a rosy picture, but their hands are tied at this point. ultimately, apple has made its bed in china. that is where the company's focus. obviously, foxconn, 1.4 million chinese that they employ, and that is really something that could disrupt the food chain, andd disrupt the supply perspective and ultimately lead to more costs for apple. i think right now, this is a poker game that they are playing and i continue to think that they are not going to move reduction out of china, but ultimately, it really comes down to u.s.-china trade talks. they continue to be the poster child for that situation. our reporter who covers apple for bloomberg technology joins us now. what exactly do we know about apple -- what apple asked suppliers to do and if suppliers are actually going to do this? apple asked for between 15% and 30% of production to be explored, to be moved out of china, but i essentially agree as he was saying to you in thi

apple supplier foxconn has already talked about moving production to other companies in southeast asiaindia, malaysia, thailand, taiwan. of course, the trump administration would like to see it here in the u.s. that is unlikely to happen. but i do think they are worried we saw a bunch of letters go to the u.s. trade representative last week. apple sent a letter saying these tariffs are going to hit, iphones, macbooks, air,. -- air pods. they are saying it is going to hurt apple's global competitiveness. emily: this was right after a meeting between tim cook and president trump. as you mentioned, they do have the negotiating power and we don't know if that will pay off. brad: it has worked in the past. some of these product categories were on previous lists of tariffs as early as last year. they got off the list at the last second. i think the tech companies are hoping for that kind of reprieve. we will see what happens at the g20. emily: meantime, huawei, they are dependent on u.s. chips somewhat. they do also make two thirds of their own chips, right? >> for smartphones. the key compo

the decision to promote the cfo and to foxconn's senior decision-making body shines the light.cited to stay back from day-to-day business if the contents and the presidential election next year. still to come, we will have more analysis on the markets. we will be joined by whittier onst manager and checking in futures pricing. we will have news for you in the next hour of daybreak asia. stay with us. ♪ hey! i'm bill slowsky jr., i live on my own now! i've got xfinity, because i like to live life in the fast lane. unlike my parents. you rambling about xfinity again? you're so cute when you get excited... anyways... i've got their app right here, i can troubleshoot. i can schedule a time for them to call me back, it's great! you have our number programmed in? ya i don't even know your phone anymore... excuse me?! what? i don't know your phone number. aw well. he doesn't know our phone number! you have our fax number, obviously... today's xfinity service. simple. easy. awesome. i'll pass. paul: good morning. i am paul allen in sydney, where we are an hour away from industrial in m

ofs comes in the wake foxconn tech boasting a 22% drop.to a record, but total exports fell for a second straight month. the main points at the meeting today was the transition plan and the company strategy to look at the trade war follow. on the ego agenda, we are expecting april trade data from the philippines. exports continue to contract out at a softer pace. industrial output in malaysia is growing at a slower pace. we might get china's latest rate -- read today. trade affshore yuan, steady after falling to a fresh 2019 low last friday. the seven handle is very much on the radar. sellboc said it planned to in hong kong later this month which could draw some liquidity and make sure -- make the currency more expensive. sophie: thank you so much for that -- shery: thank you so much for that. see thet it -- you can asian stocks up 3/10 of 1% and the nikkei and the cost me -- kospi are three tens of 1%. next -- ispen his next. this is bloomberg. ♪ quick is not talk a.m. in beijing. welcome to bloomberg markets "china open." down to theting

the chairman of taiwanese electronics company foxconn is stepping down in order to pursue a bid withfor the tiny presidency. he announced his resignation friday. he will remain on the board. his successor has been named. this could mark a new direction for the apple supplier after 45 years at the helm. to be buried is a grave financial matter. the funeral industry of france is valued at over 2 billion euros. we take a look at one aspect. burial plots that go up for auction. an investment for maternity or until the lease expires. dozens of tombs are being auctioned off. the burial spots of other -- either been abandoned or no longer used. cemetery, dozens of residents have gathered to bid on their possible future restingplace. we talked to the children about it. on father's day we told them we cemetery. to choose a ended up spending some 3000 euros for their chosen spot. buying or leasing certain tombs can be financially beneficial. to who want a historic or ornate -->> having a tomb monument is very expensive today. if you are looking for an important monument, it is almost impossibl

if foxconn leaves china they will take with it a lot of jobs. even if a trade deal gets done sooner rather than later, if apple is left out of it, there will be pressure on companies like apple to really think about their supply chain going forward. there may be pressure to remove themselves from that country. connell: yeah. that might be a bigger story in trade, that these supply chains, these stories, they don't go back to the way they were even if a deal is signed. thank you to both of you. we appreciate as we move on. more from beijing with our special coverage from china this week, what residents on the ground think about the trade war and future relations between the u.s. and china. more live from beijing coming up. melissa. melissa: plus a direct attack on a u.s. military asset. more on the latest provocation from iran amid already heightened tensions in the middle east. why officials fear the escalating conflict could be on the brink of war. >>> searching for answers, the fbi taking new action after a least 11 americans mysteriously died

their undersea cable operations business and also reduced smartphone production orders with supplier foxconn what do you make of those 2 moves are they showing the 1st. yeah i mean the 1st one is wall way marine systems really is suffering from the wall way name which is pretty toxic nowadays because the name is associated with chinese spying it's associated with being an organ of the chinese military and political system and it's extraordinarily difficult for them to negotiate any deals you know regarding undersea cables in fact the australian policy institute said that you know that business has really dried up for them now the fox com thing is a direct result of the trumps administration ban on wa way and the south china morning post did an excellent article recently where it said is you know again because they've been deprived of their android licenses based on trump's band the you. european smartphone market has has almost completely dried up for them so some people look at it as a business decision i think that it's it's a direct result of the u.s. government's policy towards that. in

promote decisions to him to foxconn's senior division a light on potential successors.ack from if he-day business contests the presidential election next year. to a sharecloser sale in hong kong with sources telling us that it has two banks picked two of them to lead this offer. asia techg in our reporter. where are we with this? sources are telling us that alibaba is expected to file within weeks that they have chosen cicc and credit suisse as their lead banks. more banks.king to maybe they will bring them on. the company is expected to raise $20 billion. if this is successful, it would be the largest share sale in 2010.ong since >> and this should worry you as markets. why? that's the title. >> oh. because it's the message that it brings. is -- laibl alibaba is listed -- alibaba is in new york and it's looking for a listing in hong kong. what if this is a trend? tonese companies looking come here. coming home. and where people understand the model better and you might be able to get a higher valuation. and maybe not get caught up in war.rade and all of the implication

brad: foxconn has already talked about moving production to other companies in southeast asia. india, malaysia, thailand, taiwan. of course, the trump administration would like to see it here in the u.s. letters go to the u.s. trade representative last week. looks, air pods. they are seeing it -- they are saying it is going to hurt apple's global competitiveness. emily: as you mentioned, they do have the negotiating power and we don't know if that will pay off. brad: it has worked in the past. some of these product categories were on tariffs over the last year. i think the tech companies are hoping for that kind of reprieve. we will see what happens at the g20. emily: huawei, they are dependent on u.s. chips somewhat. they also make two thirds of their own chips, right? ian: smartphone. the key component of the smartphone is the nickel processor. they can supply themselves in that particular market very strongly. laptops, smartphones, toy drones. brad: they are coming for our drones. emily: how would you break apple versus amazon, for example? amazon is shutting down its entire

.ad at a house party the manufacturer of apples at hon hai says up to 2000 workers will be at the foxconn year. they plan to make networking and server equipment at the facility. that is your bloomberg business flash. vonnie. vonnie: we want to take a look at the markets now. we have been moderating gains throughout the session. weyou look at the s&p 500, are now at 2/10 of 1%. it has been a pretty steady line downward since the open. the dow jones industrial average the s&p is well below 2900 once again. this is bloomberg. ♪ guy: fromguy: london, i'm guy johnson. vonnie: from new york, i'm vonnie quinn. this is "bloomberg markets." guy: let's go to chicago. it's time for futures in focus. scott is with us. do you have any faith that this rally has any longevity? how far can we go? i like the long-term prospects, but near term we have to be very cautious. i am watching volatility. it is not going down with the market rally in, and that is usually a good indicator. i think there are too many things right in front of us. tariffs still with mexico, which still are not settled. opec, the fed