max: huawei is a gigantic chinese company.etworking equipment, the parts that go into cell phone base stations, almost everywhere in the world, including most of western europe, and they make a lot of smart phones. they are the third-largest smartphone manufacturer in the world after apple and samsung. unlike apple and samsung, their market share is still growing. this is probably the biggest chinese technology company, it is private, but their revenue is around $92 billion, exclusively. an enormously influential chinese company. taylor: in 2012, they were banned by the u.s. walk us through why they were banned. max: from the time they came to the u.s. starting in the early 2000's, they have raised a lot of red flags, at least with some people in the u.s. national security establishment. some of that has to do with the fact that basically anything that comes from china causes some people to freak out. there are some specific things with this company, the founding of the company is a little bit murky. it was founded by a former

why is washington so obsessed with china's huawei.how close is huawei to the government? these companies are intrinsically linked. if you are allowing huawei into high—tech areas, which can affect national communications with some influence, that level of high—tech, i am talking about five g, then you need to control it, see who is involved. we are more accepting of it over here. vodafone already has a deal with huawei. more to come on that. nominations for new goals. the maker of barbie says it will be recognising international women's day tomorrow and will come out with some new models. there is nicola adams with a goal with her likeness. were talking about this, who would you nominate? cleopatra. a historicalfigure. and she ran the economy. absolutely. boudicca. .. and she ran the economy. absolutely. boudicca... and i thought of mary queen of scots, you can have an a ccesso ry queen of scots, you can have an accessory where you might be able to remove the head. chuckles or chuckles oers chuckles or mrs pankhurst holding a placard

taylor: the huawei story, it is really complicated. of the moment, not just technology, but the way m&a is getting done. taylor: the security angle, the washington angle. what about you? jason: paul ford and the idea of digital protection agency, it pushed for the story of what happens in this massive they -- massive facebook saga. more bloomberg television starts right now. ♪ ♪ caroline: i am caroline hyde in london. this is the "best of bloomberg technology o." coming up, zuckerberg is set to in london. itsonuber halts

huawei doesn't really export much to the us.iff on chinese products, it's a 2596 a tariff on chinese products, it's a 25% tariff on goods worth 55 and 60 billion us dollars. be identified information and communication technology and machinery and aerospace. china doesn't really export aerospace equipment much at all. it included cellphones, computers, home appliances and other electric machineries, and there huawei is not really much there. if they do look through some of the products, it would be apples and computers and those types of things. i don't really know how they could impose tariffs on apple products. thank you very much forjoining us from hong kong. that story will run because the chinese have said that they will fight to the end. french police have clashed with protesters in paris as public sector workers across the country went on strike. they are reacting against president emmanuel macron‘s plans to cutjobs and benefits. lucy williamson reports. the old ways are often cherished in france. that goes for protests as

huawei have come up with a novel way of testing a phone.ed to this vehicle and the phone is actually going to drive the car. this being an attempt to show off the processing power and image recognition of their mate 10 pro, which was released last year, rather than something they actually plan on executing in the real world. not that they trusted the inbuilt camera for thisjob. they've attached a large external one. the phone uses artificial intelligence to process what it sees. i am told it recognises around 1000 objects. in turn, it will send signals to the vehicle via wi—fi which will then control the car through a robotic system. the technology that we are using to power this actually exists within the phone already. the artificial intelligence that sits at the heart of what we are showing here is part of the everyday experience of your smart phone. there we go. i'm in gear. in a way, this feels quite strange at the moment. people are just moving around things. that is a very big ball. how often do you see one that size on the road? now

can get a huawei phone. mark: this is the huawei p20 pro.e x challenger because of the design. the camera on the back looks on most identical, and in the front the screen has the cut out, pretty much copied by this new phone. the u.s. is a premium phone market, where premium phones are mostly salt. not being in the u.s. selling a premium phone is a challenge for huawei, but they are the third-largest smartphone manufacturer globally, including the u.s. and other countries around the world, so this will help their sales hopefully for them in other regions. scarlet: in europe, africa, asia, but not the u.s.. mark gurman, thank you so much for joining us from chicago, where apple health -- held its school event today. this is bloomberg. ♪ retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse a

basically what the president the administration are saying is that they were worried that the china's huawei for example who is their biggest competitor the next biggest producer of microchips the ones that are uses your phone so that and it will be used in the future basically electric cars to communicate with the grid and so they want to make sure that we we are still in the game so there can be national security interests. that are still apply certain industries this is close to an industrial policy we talked recently to michael hudson about that was to say michael douglas michael hudson about. you know an industrial policy for america right i guess is the key point here is that chump is willing to impose order to in the name of national interest even of my my not be welcomed on wall street in this way so this is of course strategic in the sense that you've got the president standing up for interests that are more akin to a national interest you know well the trend continue we said when he was elected at least i did that he could be a roosevelt type character and be a trust buster and sta

huawei has already had a tough time in the u.s., shut out by telecom carriers.to their expansion plans. best buy severing those ties. we're watching the markets in the open. david: let's have a look at the prospects. underway, 60 minutes. we are getting a little strength on these, the story is when you look at the fixed income and sovereign space. betty: we are also counting down comingopens in japan, back online after the holiday break yesterday. you can say nikkei futures pointing to a higher open or rebound. the nikkei 225 before that holiday, down 0.5%. the dollar continues to slide with that interpretation the we are not going to see four rate hikes this year. more ahead. how many hikes it sees the fed making. catch our talks with a chief economist. this is bloomberg. ♪ ♪ david: it is an :00 a.m. here in 00 a.m. here in hong kong. this thursday, president trump is expected to sign. the feds take a hike is expected here -- expected. globalfrom bloomberg's headquarters i am betty liu in new york just after 8 p.m. on this wednesday. mistakes were made but offe

cork and wood, furniture, apparel and footwear >> best buy is reportedly cutting ties with china's huaweiologies the move following similar actions from u.s. companies like at&t and verizon over growing scrutiny of chinese tech firms american lawmakers raised concerns about chinese companies using their access to spy on u.s. officials you can see best buy shares down in the early trading >> just one comment here the reason why huawei is important is because we import more machine and electronics from china than any other category if you're curious where the biggest imports are from china, go to cnbc.com we have a great story about where we could see targeted tariffs and that kind of stuff happening. >>> still to come on "worldwide exchange," more on the facebook fallout. mark zuckerberg breaking his silence on that data scandal. >>> and later, grading jay powell, we'll break down the fed chair's firsnet ws conference. "worldwide exchange" will be right back but i'm not standing still... and with godaddy, i've made my ideas real. ♪ i made my own way, now it's time to make yours. ♪ everythi

attention has focused on huawei, a networking company with its own chip division, and the industry is take that chip division capability seriously and starting to worry this is going to be one day a rival of u.s. companies. saleha, is there a broader takeaway away from this decision by the u.s. government that will perhaps discourage foreign companies from making acquisition offers to u.s. companies? saleha: broadly, i think what it looks like is a lot of companies did not realize we have a new regime in washington, and that helpbe used as a tool to the administration apply pressure to countries like china. analysts say we should not be surprised to see trump use this address to get china to trade imbalances and help with north korea as needed. looking further from that, it looks like they want to protect the technology, intellectual property here in the u.s., so we deals,expect technology licensing deals will be tougher in a regulatory manner. the bid has that been denied, will it have difficulty getting another acquisition approved? it is on treasury and the government's watchlist a

basically what the president and the administration are saying is that they were worried that the china's huawei for example who is their biggest competitor the next biggest producer of microchips the ones that are using your phone so that and will be used in the future basically electric cars to communicate with the grid and so they want to make sure that we we are still in the game so there can be a national.

chinese smartphone maker huawei said its profits sought twenty eight point one percent last year and how that translates into seven point six billion us dollars miles ahead of twenty sixteen when profits eat media four tenths of a percent increase the company attributed to the sterling results to heavy investments in research and marketing your way is the number three smartphone maker behind samsung and apple the company is owned by its employee use with no completely traded shares of the company reports financial results two allays security concerns in the united states europe and in australia. and the american economy a factor a tesla is recalling one hundred twenty three thousand of its model s. vehicles worldwide making it the company's biggest recall action ever model s. cars built before april twenty sixth are affected the problems is with rusting bolds in the power steering unit the company says that those bolts need to be replaced in an hourlong retrofit in response to the news tesla shares dropped three and a half percent if you've ever been to cuba you probably paid for goo

basically what the president and the administration are saying is that they were worried that the china's huawei for example who is their biggest competitor the next biggest producer of microchips the ones that are uses your phone so that and it will be used in the future basically electric cars to communicate with the grid and so they want to make sure that we we are still in the game so there can be national security interests. that are still apply in certain industries this is close to an industrial policy so we talked recently to michael hudson about that it's a michael douglas michael hudson about. you know an industrial policy for america right i guess is the key point here is that chump is willing to impose order to in the name of national interest even though my my not be welcomed on wall street in this way so this is of course strategic in the sense that you've got the president standing up for interests that are more akin to a national interest you know well the trend continue we said when he was elected at least i did that he could be a roosevelt type character and be a trust buster t

communications for example because of already existing strong business time ties between broadcom and huawei or broadcom after taking over qualcomm might decide to cut back on r. and d. research and development which again would give away an edge here a competitive edge trump wants to prevent that the chinese have too much influence on five g. on this important technology. is this decision then no surprise to people where you are. well it is a surprise in that never before a government in washington has intervened in a takeover at such an early stage the usual procedure would have been that the shareholders of the takeover target in this case qualcomm decide then the two companies strike a deal and then it's time for the administration to take a look at this and make sure that all this goes according to competitive lore or security law but quite obviously the biggest deal maker sits in the white house and donald trump wants to make sure that we all never forget that. going to abuse that in strength but thank you very much. well that deal maker has import tariffs are quite unpopular with us t

basically what the president and the administration are saying is that they were worried that the china's huawei for example who is their biggest competitor the next biggest producer of microchips the ones that are using your phone so that and it will be used in the future basically electric cars to communicate with the grid and so they want to make sure that we we are still in the game so there can be national security interests. that are still apply to certain industries is this close to an industrial policy we talked recently to michael hudson about that was to say michael douglas michael hudson about. you know an industrial policy for america right i guess that is the key point here is that chump is willing to impose order to in the name of national interest even the my my not be welcomed on wall street in this way so this is of course strategic in the sense that you've got the president standing up for interests that are more akin to a national interest you know well the trend continue we said when he was elected at least i did that he could be a roosevelt type character and be a trust bust

huawei has a lot of tech, lot of leadership in 5g development, as does qualcomm.o keep those holdings u.s.-based and away from foreign investment. emily: tony, what is broadcom had waited until their full u.s. relocation was settled? tony: i think that would be a little bit of a different scenario, but i still think that given the concerns over the race technology, there could have been a potential review there as well. continue to cfius creep and expand its jurisdiction in transactions, it thinks it has the ability to review. i suspect this would end up firmly in their crosshairs even in that scenario. i asked ian earlier, he does not know, is broadcom going to appeal? what is the legal case here? matt: you could certainly appeal the executive order. the question is, are those dollars well spent on lawyers? even if you appeal that successfully, what is going on with the cfius review, is there too much legal overhang, and how much bang for your buck are you going to get? the question for broadcom is going to be whether those are wise. they had great shareholder re

huawei is coming into play as a competitively priced competitor when australia rolls out its 5g mobilew is that likely to play? michael: i asked specifically about why way, and he wouldn't commit specifically about companies. i asked if we should be wary the company offering a good price and more ms technology then it's american and european matters -- competitors. i asked david our wine about u.s. pressure and he said we look at things independently something because different countries have different national interests. the example he used or we discussed was where the administration was not informed subsequently,and he didn't say it directly come but david irvine was the head of domestic security organization and yet a strong hand and hinted at security concerns, and for australia that is the most important thing. betty: michael, thank you. up next the pressure on tesla continues following a failed crash in california. will look at a growing list of problems for tesla. this is bloomberg. ♪ ♪ i am haidi lun in sydney. betty: and you are watching "daybreak australia". tesla is punchin

they believe that they would take all the competitive technology and hand the competitive edge to huaweirime minister theresa may and asked that the united kingdom will expel 20 russian diplomat's in response to the poisonous attack on the x spy and his daughter. >> complete disdain for the gravity of these events. >> she is trying very hard to be firm. her,as her party behind but at the same time, from what we've heard from analysts in russia, this made her look a bit soft. >> a huge chunk of the diplomatic presence from both sides, we are talking about 60 diplomats in the other capital. a substantial reduction. theresa may said it is the biggest such expulsion in years. you don't think it will affect the markets, there is not likely to be broad financial sanctions. the result is to be an effect of relief. >> the president selecting a new top economic advisor. promising a new phase of tax cuts. wall street weighing in on gary collins replacement -- gary cihn 's replacement. >> we are not looking at something simple. anti-china and trade tariffs, larryis not the recor kurdlow. >> he cann

rishaad: huawei developing a cell phone that can run blockchain-based apps.alongside android. smartphone8 of the maker into blockchain. it would bring blockchain technology to the mass market. they have declined to comment further. quite significant earnings coming out this afternoon. back of those numbers out of us ont, david is updating the numbers of the day so far. what have we got? >> brandon lam is the ceo of tencent. a lot of these guys are bullish anyway, which is also why we have tim copeland on. yin and yen and yang -- yang, isn't it? moreere is a lot concerned, the stock reaction. and another is coming on. i was speaking with her outside. she said it is not so much a big deal because of the magnitude of the move, which is only five basis points. a lot to talk about in the next edition. rishaad: we have china mobile, petrochina. that is what we have coming up. we leave you with images of the victoria harbour. it really does look like that today. ♪ retail. under pressure like never before. and it's connected technology that's moving companies forward

they believe that they would take all the technology and hedge the competitive edge to whil huawei. >e minister theresa may announce that the united kingdom will expel 20 russian diplomat's in response to the poisonous x-spy and his the e daughter. teresa: their response has demonstrated complete disdain for the gravity of these events. >> she is trying very hard to be firm. she has her party behind her, but at the same time though, from what we've heard from analyst in russia, these messages are a bit soft. >> a huge chunk of the diplomatic presence from both sides, we are talking about 60 diplomats in the other capital. for each of them. that is a substantial reduction. theresa may said it is the biggest such expulsion in years. more than 30 years. --far, analysts have said this will not really affect the markets. the result is to be an effect of relief. >> the president selecting a new top economic adviser, larry kudlow. he has gotten straight to work, promising a new face of tax cuts. -- a new phase of tax cuts. wall street weighing in on gary gary cohn's replacement. >> we are no

as that much more of a disadvantage vis-a-vis a third party huawei that is the other sort of leadingdge ever innovation activity. >> i guess the lines are not clear here because we're talking about china and obviously as michelle pointed out, there is no direct line to china expect for the fact that broadcom does business with china so if it becomes a u.s. company, how exactly do we lose any sort of edge when it comes to emerging technology? >> this is why this was a fascinating move and shows that there is a whole new world when it comes to enforcement in the national security concerns in the united states. they gave really two reasons why they had national security concerns one was more traditional supply chain we want to make sure chips are made inside the united states because we rely on them when it comes to cyber security and for our innovation in areas like the internet of things but secondly, they in this case said if broad com acquires qualcomm based on the reasons for the deal, that we think that there will be less money going to research and development and it is imperativ

that would put -- hamstring the company in a race for 5g technology and hand the competitive edge to huaweiat raises questions on what will be able to get done going forward. >> prime minister theresa may has announced the u.k. will expel 20 russian diplomat's due -- as retribution for the poisonous gas attacks on the ex-spy and his daughter. prime minister may: their response has demonstrated complete disdain for the gravity of these events. >> may is trying very hard to be very firm. she has her party behind her. at the same time though, from what we've heard from analysts in russia, these measures look a bit soft. >> a big chunk of the diplomatic presence from both sides. each have about 60 diplomats in the other capital, so it is a substantial reduction. may said it is the biggest such expulsion in more than 30 years. so far, analysts have said this will not really affect the markets. there's not likely to be broad sanctions. the result is to be an amount of relief. >> the president selecting larry kudlow to be his top economic advisor, and he has gotten straight to work, pushing a toug

broadcom is a client of huawei.eakage of proprietary technology, etc., as well. at least the blockage of the deal is being done not so much on commercial grounds or anything like that, but rather security, which probably makes it a much higher hurdle for broadcom to overcome in over to win qualcomm. i read some comments on this. one of the things this anatomy is it feels a little bit forced. you will eventually find a relationship and a reason or a reason for you to bring up things like national security. have we heard from either broadcom or qualcomm? have they responded to this? if they haven't, how do you think they would respond to something that was all-encompassing like this from the white house? has been going all out in terms of a pr offensive. its ceo was just at the u.s. treasury this week making his case for the deal. obviously, they have commented that they don't agree with the decision by the trump and menstruation. qualcomm, which has was a virtually opposed the deal, is laying quite now and allowing t

government from buying any company that buys from huawei.eports from australian media that the u.s. warned australia and their prime minister if you expect. back.re -- a few weeks this could be bad for tech probably if it plays out. iowa, chuck grassley of whenever they are involved, it scares the devil out of me. scarlet: we see that play out with how the u.s. responded with bob, potentially by qualcomm. .hank you, max chafkin lawmakers have their eye on mark zuckerberg and how the house committee has summit the facebook ceo to testify before congress. that seat when it happens. this is bloomberg. ♪ scarlet: after five days of silence mark zuckerberg again an apology yesterday towards best with the initial post on his website and a series of i interviews. today the house commerce committee called on zuckerberg to testify before congress, second mr. zuckerberg stated he will be willing to testify if use the right person. we believe he is the right witness to provide answers the american people. frier,joined by sarah and watched and listened

we see that huawei and zt are constantly at the top of the list.-- in the list. seen is they have been pushing hard and we are seeing more and more and applications. which is an indication that they are working hard to build up their technology and they want to go global. is, what kind of step do you expect five g be from 4g if we talk about generations of mobile telecommunications quantum leaps because 4g was over gsm.3g and 3g is 5g that big a deal and is it important to keep dominance in this? eel for a be a big few points. 4g and 3g for about streaming video. we wanted fedor pipes to stream video. people are not using mobile phones or make voice calls that much. moving into the internet of things where we have more devices rather than mobile phones connected to the internet. that will have to -- have security implications. locks and evenr cars connected to the internet without a human involved, there are a lot of security issues involved and they will be issues that globally government and cooperation -- corporations, everyone will be looking c

up top is basically apple, 45% of their revenue, but not too chinesew is huawei, a company.rade war, there is some fear that the revenue could be diminished in some way. but i amres are down, guessing they're down in terms of overall weakness with chips. lisa: you have to worry about the broader effects of a trade war. what have you heard in terms of analyst commentary on that? abigail: i have not heard much yet, but in the asian session, we saw a lot of the asian suppliers trade off. will apple stop buying their parts? overnight, we had some of the big names, like aac technologies and hon hei trade off in a big way. the concern is taking this to apple, because apple is on its worst day on the week since the beginning of february. the bigger concern, apple, smartphone demand. lots of reports that it could be diminishing. of course, they just reported in ofuary that they had a bit disappointing guidance. if we look at the technicals -- i love the technicals, because it is a big waiting for the major averages. think of apple as writing, rising, writing, but this is a six-month

, stocks hit 5-year low yesterday down 12/120 of 12% this morning best buy cuttingtize with china huawei tech firms, at&t verizon stepping back on that deal. >> thanks so much, nicole petallides want to look at took because ceo mark zuckerberg says he is sorry he is not helping the stock though the stock is down another 2 1/2% this morning, we just heard could be down 10% on week he addressed the growing privacy scandalized that allow outside firm cambridge analytica. >> stuart varney to weigh in. >> good morning i think this is one more negative contributing to the 300 point loss for the dow industrials likely to see at opening bell it wasn't much apology really didn't go very far, and he is saying look, he could be okay, with some form of regulation. that is interesting. that opens the door. it is kind of an mission there antithat much regulation right ain't in a much right now maybe more is required what a he said yesterday with this so-called apology i think is contributing towards a downside move for all of the big name tech stocks when you throw in this trade possibility of a trade

haidi: huawei has launched a challenger to the iphone x and the galaxy nine. retailers and u.s.features an edge edge display, and the pro version has three camera lenses, color, monochrome, and close-ups. of the market, trailing samsung and apple. rishaad: google, this time oracle. the company may owe oracle $8.8 using javam job -- programming. the appeals court says the use of java shortcuts android. ultimately it became a violation of oracle's copyright. suit filed in 2010 has been sent to a federal court in california to determine how much google should pay. kong, we areng just coming back a little bit. the hang seng .6% lower. in shanghai, recovery story taking place, .3%. extent,stymied to some but action elsewhere. haidi: japan and south korea, watching these markets as we get these fast-paced developments, the confirmation of kim jong-un visiting beijing and developments when it comes to these meetings. we are seeing both markets lower. this is bloomberg. ♪ ♪ asian markets extending global declines and the overnight. wall street is weak. again, fears of a trade war weighi

chinese companies including huawei, have increased their engagement in 5 g standard discrimination workingroups as part given well known u.s. national concerns about other companies, a shift to chinese dominance in 5 g would have substantial consequences for the u.s the letter does not stop there it goes on beginning to read as though it was an investment report for treasury. br broadcom's statements indicate that is looking to take private-equity-style direction >> guys, this is extraordinary i have never seen anything quite like this. i have a number of experts weighed in so far with me. it is an investigation, it is not a review it is an investigation by cfius. remember they have to give them five days notice we saw that from the interim order but beyond that, it would seem in a sense to talk about cfius is being used as a tool for industrial policy and i would argue that it also seems to be setting qualcomm as a national champion of 5-g of something they deem of the national security interest of the u.s. that would have stayed there. they did not lower their r&d spending such that it w

jack ma has been very proactive, huawei, so on. not allowed to operate in china, so quid pro quo.sse trade influence what you are doing? dickie: definitely the trade tariffs trump's administration is saying on steel and aluminum will hurt the chinese economy. not very much. rishaad: one of the least exposed countries. dickie: exactly. so they are now setting a lower percentage of gdp growth, export on steel and aluminum, so they are cutting production to meet the target. i do think maybe some kind of negative effects on the overall chinese economy, but they are aware of this, so they are paying more attention on the private sector, especially the internet and technology sectors. rishaad: predicting retail sales growth of 10%. that's where the new china belongs, that shift toward qualitative rather than quantitative. dickie: they are not chasing the numbers, 7.5%, 8% like the past. they are not chasing that gdp .rowth number they are chasing quality gdp growth, like last year. rishaad: consumer related as well. that is now bigger than the manufacturing side. this is where the new c

up and then that would mean that qualcomm could not effectively compete with chinese competitors, huaweisaid as much publicly, treating this investment as a private equity investor and that's what they said and the committee said what? >> maria: not happening. >> if qualcomm had kept their mouth shut and said we're looking forward to the acquisition, you have to wonder who was advising these guys. >> i would like to see more consistency from the agency relative to u.s. consolidations, randall stevenson at at&t, bob iger at disney, there seems to be inconsistency with the application was the administration. >> maria: you mentioned at&t, the trial begins next week. we'll see what happens with the at&t, time warner deal. we want to get to immigration. president trump inspecting border wall prototypes yesterday in san diego. first trip to california as president. in texas, lawmakers are praising a federal appeals court decision to uphold a new law targeting sang wear riff you citielysanct. the governor wrote breaking, the ban on sng sanctuary cities uph. law is in effect. that from greg abbo