ban on huawei equipment. do you think these actions towards huawei could backfire? is very important to worry about the type -- the cybersecurity of our networks. throughout history, again, going back to the points i make in the book, throughout history, networks have been attack vectors. i don't care whether you are talking about rivers or roads, they have always been attack vectors. why should we be surprised when we find that the network of the 21st century, digital pathways, are the new attack vectors? we need to make sure that we are protecting those. i was disappointed that what the trump fcc did as soon as they came in was to repeal the activities that we had put in place in the previous sefcc to established cyber protections for 5g and to have an expectation the fcc would have a role in that. the new chairman came in and said no, we don't have a role in cyber and eliminated the kinds of things we had started to put in place. emily: former fcc chair tom wheeler. always good to have you with us. google, mr.rg to wheeler's new book. still ahead, facebook has th

is prosecuting against huawei right now.t is risky, but i think huawei recognizes the stakes are very high. big telecomed out, companies around the world -- not the u.s., the u.s. has said no to that, but around the world, telecom companies are spending billions on this 5g rollout. what they have said to u.s. officials is we actually kind of like huawei equipment. it is not that bad, and it is cheap. emily: mobile leaders from europe don't seem that upset about huawei. and they are saying to the u.s., let us by what we want to buy and where else are you going to go? emily: president trump is thinking about using a next -- executive order to enforce a ban , challenging competitors in the united states to step it up and builds technology equal to what huawei has. tom: exactly, but we are on the cusp of 5g and you can't afford to put for some brand x together its five g technology if you are concerned about falling behind china. emily: compare what happened to huawei with what happened to zte, a company to u.s. almost destroyed

from akhan to huawei.y gathered further evidence, and now we are waiting to find out what the government does. jason: one of the tricky things about huawei is that it is privately held. we don't have a lot of information. that is why we have taylor riggs to help us understand this chinese and tech market. taylor: we know huawei is so closely held within the chinese government that we do have a lot of information. we have an etf the tracks the chinese tech sector and gives us a good gauge of where we all stand, relative to the u.s. it looks like they actually track pretty closely together, except what caught my eye was at the end. looking at the forward p/e ratio, the u.s. tech sector has had a bit of a run-up in price because some are saying with the 5g rollout. we heard from earning season that a lot of analysts and investors expect 5g to boost the u.s. tech sector. and 5g, therei been some convocations with that . we will wait and see. carol: interesting to see that gap. taylor, thank you. up next, the s

the reason -- huawei. the reason this was happening was because of their interactions with huawei.hey had been sending samples of their diamond glass product to a different -- a bunch of different smartphone makers. carol: that is typically what a supplier will do. eric: it standard in the industry. eric:you develop the eight technology, go through iterations, and once you have something ready to send to -- customers, you send and they perform test. carol: there are rules around that correct? yes. the rules were you are able to have the sample for 60 days and the tests your perform have to be nondestructive. this company, acon semiconductor, sent two rounds of samples to huawei, and we can assume they did the same thing with other companies, and after the second round of samples went and the 60 days past sample did not come back. they demanded that the sample be returned immediately as you would. the first thing they got back from while weight was an email with a picture in it. the picture was under magnification of the sample and it had a big scratch through it. we talk about this

the world needs huawei because we are more advanced.proceeded more countries not to use us temporarily, we can just scaled things down a bit. and because the us keeps targeting us and finding fault with us, it has forced us to improve our products and services. what kind of impact would have on your business if the us is successful in getting many of its partners in the west to shut your equipment out? translation: if the lights go out in the west, the east will still shine. and if the north goes dark, then there is still the south. america doesn't represent the world. how important is the future of huawei in the uk with regards to your investment plans and jobs? are you able to guarantee that you will not be pulling out of the uk were taking jobs out of the uk? translation: we will continue to invest in the uk. we still trust in the uk, and we hope that the uk will trust us even more. we will invest even more in the uk because if the us doesn't trust us, then we will shift our investment from the us to the uk on an even bigger scale. s

the founder of huawei hits back. in an exclusive interivew, ren zhengfei says the us actions against his company and his daughter are politically motivated. there is no way the us can crash us. there is no way the us can crash us. the east will still shine and if the north goes dark, there is still the south. more violence breaks out in indian—administered kashmir. officials say a gunfight has left nine people dead. i'm kasia madera in london. also in the programme... british teenager shamima begum tells the bbc it was her choice to join the islamic state group — as she asks the uk for forgiveness. car—maker, honda, is to announce the closure of its only plant in britain, with thousands ofjobs to be lost. live from our studios in singapore and london... this is bbc world news. it is newsday. good morning. it's 9am in singapore, 1 am in london and 9 am in shenzen, where the founder of chinese telecoms giant huawei has told the bbc that washington's attempts to ban its participation in the wests sg networks won t crush

and the crackdown on huawei continues. we will bring you the inside story of a chicago startup that claims the company was trying to steal its technology. it starts with broken glass. but first, our top story. shares of alphabet falling in after-hours trading. in the fourth quarter ad revenue for the search giant remains strong with paid clicks climbing over 18% to $27 billion. however, operating margins fell below analyst expectations and expenses rose. meantime, the investor call is underway. cfo rush porat addressed rising costs. take a listen. >> the key drivers were, first, content acquisition costs, primarily for youtube, mostly for our advertising supported content, in what is a seasonally strong quarter for youtube. but also for our newer subscription businesses, youtube premium and youtube tv, which have higher cac as a percentage of revenues. emily: joining us to discuss in, have crawfords we and in new york we have -- crawford, what are the key highlights you would pull out here? investors seem to be focusing on

wanzhou is also huawei's chief financial officer. has long been sceptical of huawei s intentions, claiming their equipment is a threat to national security. the us, along with australia and new zealand, have all blocked localfirms from using huawei to provide the technology for their 56 networks. despite its negative press, huawei remains hugely popular in china. it currently has almost 30% of the domestic smartphone market. in an exclusive interview with the bbc, the founder and ceo of the chinese telecoms giant was defiant, saying pressure from washington will only make it stronger. 0ur asia business correspondent, karishma vaswani spoke exclusively to huawei's famously reclusive founder ren zhengfei. translation: there's no way the us can crush us. the world needs huawei because we are more advanced. even if they persuade more countries not to use us temporarily, we could just scale things down a bit, and because the us keeps targeting us and finding fault with us, it has forced us to improve our products and services. what kind o

huawei is an important part of the u.k. infrastructure. >> we really like to become tractable on that issue. are a handful of technology companies who are capable of supporting companies like us. so far, huawei has been a trusted partner. >> we need to avoid any delay because [indiscernible] from their that some of these he or he in tech leaders are taking a less antagonistic stance toward huawei. is that a fair read? bob: i think that is a fair read. you have to remember a lot of the infrastructure, that equipment has been there for years. and it is very expensive to replace p can't just rip this stuff out. any actions that will be taken toward huawei will take several years. realistically. there is that practical side of the question as well. you are right, generally speaking, in europe, there seems to be more willingness to accept them. products are sold here, they have decent market share. huawei is the number two smartphone seller in the world, just after the u.s. we tend to think of them to philly. but i would say in

huawei's 5g equivalent is widely regarded as cutting—edge.at their message that europe should shut out the chinese firm as unsafe. basically, the united states is putting a lot of pressure on to european companies not to engage with huawei, because otherwise they are seen as not being secure, so otherwise they are seen as not being secure, so the us is basically saying if you are employing huawei, we are not sharing any level of detail is with you, secret details and intelligence details with you, because that can go back to china. they, how was it going here? across town, another chinese firm, shaomei, was unveiling its new phone. security officials say the nature of this new high—speed data networks they —— mean we are right to be cautious about who controls them. they —— mean we are right to be cautious about who controls themm is reliance for the —— emergency services, food security, automotive, all these different sectors. they essentially relate to national security. so it is critically important that we deal with these issues and make

accuses huawei of stealing trade secrets and huawei kind of says this is ticking techie stuff.spect to the indictment, the t-mobile alleged theft of a robot. this is something that happened years ago. it was settled, a civil proceeding that was settled. kicking is kind of huawei for political purposes. politics are part of this. president trump is eager to strike a better deal with china. you can imagine a situation where the trump administration wants to put the screws to huawei to extract concessions out of china. emily: hearing from the u.s. government, is there any indication about how this latest sting goes into the broader picture? max: it is all speculation for now. the investigation has not led to an indictment. we reported there was a raid of a huawei laboratory in san diego. we have to see where it goes. i think it is fair to say that the government is not done with huawei. that said, we don't know is this going to result in an indictment, charges? possibly not. if it doesn't, that tells you the fbi, ag ain going full blast -- again going full blast against huawei and

. >>> the head 2406 chinese telecomcompany huawei denies spying.eo, his first interview with an american journalist. >> the big issue and that is united states government and security agencies believing that you provide a back door chinese intelligence. can you refute that categorically? >> translator: absolutely not possible. and also we never participate in espionage and we do not allow any of our employees to do any act like that. and we absolutely never install back doors. even if we were required by chinese law, we would firmly reject that. >> do you believe the united states trying to put huawei out of business? >> do you think that will happen? i don't think they'll collapse because of this. maybe the precflurm u.s. can be used as an important driver to make sure we work even harder. >> you can see more tomorrow on cbs this morning. >>> up next tonight, number three has quite a shot. wait until you hear her back story. >>> we end here tonight with a story of courage under incredibly difficult conditions. >> reporter: you can call her a regul

the reason this was happening was because their interactions with huawei.hey had been sending samples of their dark glass product to a bunch of different smartphone makers. carol: which is what a supply will do. >> standard in the industry. once you have summoned to show prospective customers, you sent to them. carol: and there are rules, correct? >> yes, and in this case, it was you can have the sample for 60 days and the tests you perform have to be nondestructive. so this company sent to rounds of samples to huawei and we assume they did the same thing with other companies. after the second round went out, 60 days past and the sample did not come back. they demanded the sample be returned immediately, as you would, and the first thing they got back was an email with a picture in. the picture was, under magnification of the sample, and had a big scratch. we talk about this diamond glass is being scratch resistant or unbreakable. it is come up to a certain point. it is very thin, it is not like it is a chunk of diamond. it also was not in its final form, t

that's meng, the huawei c.f.o. huawei and the u.s.iliate are set to appear in court february 28 in seattle to face charges the company engaged in a scheme to steal trade secrets from t-mobile. our bloomberg tech global executive editor tom giles joined us tuesday to discuss. tom: the timing is everything, right, and getting these charges to come down just as the trade negotiations heat up. there are two schools of thought. one of them is this gives u.s. leverage, right? it shows we're serious and gives us some kind of negotiating chip against china. there's another school of thought and we spoke on bloomberg tv yesterday to a former u.s. trade official who said this undermines the u.s. case. this has the potential to show that china -- show china we're not serious about either side, either the trade issue or the case against huawei because why would we use one as a bargaining chip against the other? in some ways it undermines our case to show well, we're willing to make concessions on this side of things in order to get what we want h

our top stories: the founder of huawei hits back. in an exclusive interview, ren zhengfei says american actions against his company and his daughter are politically—motivated. translation: there's no way the us can crush us. the east will still shine and if the north goes dark, then there is still the south. 16 us states sue the federal government over donald trump's national emergency declaration to build a border wall. british teenager shamima begum tells the bbc it was her choice to join the so—called islamic state but asks the people of the uk to forgive her. and a medicalfirst — a woman gets dna treatment to halt the most common form of blindness in the uk. the founder of the chinese telecoms giant huawei has told the bbc that american attempts to ban it from any stake in 56 networks in the west will not crush the company. several countries are investigating whether huawei poses a security risk. ren zhengfei's daughter, the company's chief financial officer, meng wanzhou, has been detained on the request of the united states. he

that was the founder of huawei, ren zhengfei.ope's biggest bank by market capitalisation, hsbc, has just announced a 15.9% jump in annual profits. let's go to our asia business hub where shara njit leyl is following the story. talk us through hsbc‘s figures? that's right, it is a jump, but it came in below expectations for the year, came in below expectations for the yea r, really a came in below expectations for the year, really a reflection of its exposure, to some extent, to the us— china trade war. the fact that the chairman of the bank also acknowledged. yes, profits were up 16%, just a shade under $20 billion, but these were short of estimates that would put it over $21 billion. hsbc is the world's largest trade finance institution. the two countries are currently in negotiations in the hopes of coming to some sort of agreement before and early march deadline. the us said it would increase tariffs on goods from china. another big worry is this lowdown in china. it hit about 6.6% last year, the slowest annual rise, in fact,

not looking good for huawei shery: very interesting, other governments like new zealand are well.g huaweive to be honest, i used to shop at rakuten, i am a big fan. i love their products. now they're trying to take on softbank and amazon. what did the ceo say on that? emily: it's interesting, because rakuten has been struggling to take on amazon. amazon in japan is in some ways .eating out rakuten so the decision to build a new mobile network is part of a strategy to globalize the on simply an e-commerce giant. i asked who's the bigger threat, he said both our competitors, but interestingly, he was one of his first clients when he was an investment banker before he started the company. so this is part of a longer conversation you will see on an upcoming edition of studio 1.0. we talked about his ambitions, taking on not just amazon but softbank and the wireless industry in general. it is a fascinating conversation. the battle of the billionaires. emily: always fun to talk about. we have much more ahead, so stick with us. this is bloomberg. ♪ emily: saudi arabia is looking for office space

he sends a sample to quality -- huawei and it comes back broken.arol: sitting down with eric, he tells the story so well we do get more from erik schatzker on this great story. >> there was an investigation underway involving a small start up taste outside of chicago in the advanced materials industry. they are trying to develop a diamond coating that would go on top of your smartphone display, making it harder, more scratch resistant, and ideally of great appeal to the likes of apple, samsung, lg, the major smartphone manufacturers, including quality -- huawei. the reason this was happening was because their interactions with huawei. they had been sending samples of their dark glass product to a bunch of different smartphone makers. carol: which is what a supply will do. >> standard in the industry. once you have summoned to show prospective customers, you sent to them. carol: and there are rules, correct? >> yes, and in this case, it was you can have the sample for 60 days and the tests you perform have to be nondestructive. so this company sent

>> huawei is a large part of european infrastructure as well.we were to look at replacing parts or swapping parts of our vendor ecosystem, that would mean we're spending time on replacing life like kit rather than innovating. that's something we're looking at. >> and money weknow the industry has been constrained on profits and revenues if you're replacing kit, that means it's much more expensive >> well, we have to see what the outcome of the discussions are the most important thing for us is focussing on security of our customers and security of our network, discussing with government and the security services what the architecture of that network will be and will be prepared for any event chulty of those conclusions. >> talking about trade more broadly and huawei is very much the decision that everybody is watching, but it also suggests that there's a story of borders going up across the industry curious because you deal with a shenzhen based company to roll out their 5g phone this is an android phone away from the big headlines but there's s

the huawei boss hits back. exclusive interview, he says his company does not spy for china's government, calling u.s. charges against his firm politically motivated. calls for ange in venezuela. president trump has said nicolas maduro must step down, amid qutions of how far the u.s will go to oust him. >> this is where the tornado entered town from the south. laur plus, rebuilding a city on renewable energy. how greensburg, kansas, became an environmental pioneer after a natural disaster. laura: welcome to our viewers on public television here in the ouu.s. and also the globe. the founder of the chinese tech firm huawei tells the bbc he objects to governmentsa sanctios an they won't crush the company. in an exclusive interview, ren zhengfei said the arrest of his daughter and the compa's cfo was politically motivated. bbcren sat down with the for his first international int'iew since his daughter's arrest. reporter: this is the man the u.s. says is helping china spy on the world. ren zhengfei, a former engineer

liz, i was surprised by this huawei part of it. we will get to trade, although you could argue they are intertwined. but the idea that germany might allow them to come in, even with the spying concerns, what does it tell you? i know germany has business interests but boy. >> who knows what has gone on in that negotiation between germany and china. my suspicion would be that there's all kinds of things on the table that have nothing to do with huawei. but look, germany and other countries may feel that the united states has not proved their case. they have not really presented hard evidence that huawei is acting as a mole, in effect, which is what they're saying. but there are too many allegations of this kind to ignore them. it must be that germany simply feels they can kind of out-fox huawei and figure out what they're doing. connell: big risk. >> pretty big. connell: dangerous, after the arrest and all those things we have covered. danielle, what about the trade negotiations now? we keep hearing about quote unquote, progress. now

david: huawei is in the news.he cfo, the daughter of the guy who started the company was arrested. there is a least pressure on them from the united states because they have been breaking laws, according to the united states. the chinese government claims they are a private company. we don't believe that. if so what does the government want to do with a company like huawei? >> they want huawei to dominate 5g. this is going to connect everything in our home, office, everywhere. they can suck up all of that information and they can send to it china. that will power their a.i. systems. china donated the headquarters for the african union. from 2012 to 2017, every night all the see yet in the headquarters were sent to beijing. that was huawei equipment. so china would know everything in the world. all information, all data if huawei servers were in these countries. >> the comparison of what 5g does compared to 4g. 5g is 100 times faster. only in the will they have more information, they could get it in a split second.

huawei has denied these.t is putting the telecoms in an awkward position especially in europe where the industry is equipment, andei it is crucial to the development of 5g. that is a huge piece of the conference. not just about faster downloads. 5g will drive everything from autonomous -- autonomous cars, the internet of things, you name it. it will be exciting. [speaking simultaneously] day -- hroughout the manus: we have got red headlines, deals on the tech side, we will do rush breaking news. this is speculated in press, they are buying spot therapeutics, looking large. of the 100 $.15. this is a corner of the market, the exorbitant corner of the market. they have -- this is where rush upper bidding is prepared to pay up. this is about development of gene therapy drugs. it was founded in 2013, philadelphia-based. roche in a spot with's arc in therapeutics -- with spark therapeutics, that is breaking news coming across the bloomberg this morning. in terms of the plastics business, covestro -- one of the com

how do you trust huawei? huawei can pledge not to spy, but that does not mean anything. janelle: indeed. other countries have already decided they cannot and germany has yet to make up its mind. but there are also chinese laws to consider. there is something called the national intelligence law in china, which gives intelligence authorities sweeping powers to investigate foreign and local institutions and individuals. there is a particular article, article 14, that says the intelligence authorities may request cooperation from organizations when conducting their investigation. so depending on how you read a law, a request to cooperate could be an operation, meaning huawei might have to spy on the germans if intelligence authorities asked them to. brent: that is a very good point. janelle: what we have now are proposals. and what this can do is buy time for germany to respond and to make a decision. brent: all right. our very own janelle dumalaon from the business desk. thank you, janelle. the palestinian territory of gaza has one of the highest youth unemployment rates i

our top story: huawei hits back. in an exlusive interview with the bbc the company's founder says it won't be crushed by the us. fears for the future of the uk car industry as honda is expected to confirm it's closing its factory in swindon. 16 us states sue the federal government over donald trump's national emergency declaration to fund his border wall. and in the business briefing, can the global fashion industry do more to tackle the impact of cheap throwaway fashion culture? a warm welcome to the programme, briefing you on all you need to know in global news, business and sport. and you can be part of the conversation. as we mentioned, a report by mps suggests clothing retailers pay 1p per garment to encourage better recycling and repairing, and for kids to learn to mend clothes. is this the answer to the problem of fast fashion? or should consumers take more responsibility? let us know. just use the hashtag #bbcthebriefing the founder of the chinese telecoms giant huawei has told the bbc that american attempts

does huawei have a common? get: i tried repeatedly to huawei tom: to respond.nd. tom: they didn't. eric: no, they didn't. tom: is that the stands? were you eating a gelato? eric: i was on the job. tom: what does he want out of this besides the copyright ownership of his glass? to make sure the chinese are not getting their hands on his te technology. they are trying to build a business. if they succeed in reverse engineering the diamond technology, they do not have a business. tom: does apple want this? eric: this is something they are exporting with all of the major smartphone manufacturers in the world. tom: gelato stand. on thehis out on twitter reality of corporate copyright in america. ♪ comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps

against using huawei's equipment.ly: your team has so many stories out on every single angle, the title of one is "u.s. message to the world: don't trust china on 5g." how will others receive this message? >> your desire to use huawei's low-priced and reliable equipment on 5g and the assertion by the u.s. government thatchina -- excuse me, huawei can create a backdoor. your trade secrets, your national security. that is the trade-off a country has to make. do i want this equipment, or do i want the potential for a backdoor? where we see the u.s. needing to be more forthcoming is to show more of why huawei is a threat. yes, they are stealing ip allegedly. they are violating trade sanctions. are they a threat. are they saying to china's government come on in and listen to these conversations. that is an open question. emily: still don't have any evidence of that. i want to tie this back to apple earnings. huawei is not seen their market share fall like apple is. are in an advantageous position because apple had to outso

huawei heartbreak. the founder of the chinese technology giant tells bbc about the moment his daughter was arrested. hello, welcome to asia business report. it is a race against the clock in washington, just one week to go to the deadline when donald trump said he would ratchet up tariffs on $250 billion worth of chinese goods, and those top officials from the world's two biggest economies have been trying to hammer out a deal today. i spoke earlier with robin brandt in shanghai, andi earlier with robin brandt in shanghai, and i started by asking robin whether the chinese delegation is optimistic they can strike an agreement? i think the truth is it is hard to tell. the official line from the government in beijing yesterday but they have no information on rumours of the six memoranda of understanding the two sides are preparing to sign. but i think we can look at two things as pointers that the chinese think they are optimistic. they think they can get a deal that will suit them, which is about buying s

is upping the pressure on europe to ban chinese telecoms giant huawei germany has announced a decision one way or another look at the awkward position in which the government finds itself. and who should be building these robots as german manufacturing struggles to compete against massive american and chinese resources prelim wants to encourage its own champions but a new plan already has critics. i'm seeing birds in berlin thanks for joining us the czech republic's top security cyber security official said tuesday that chinese telecom giant huawei will be left out of more state contracts in fact more european nations are debating what to do with the firm as they build out their mobile networks critics of huawei chief among them the u.s. war in the companies the trojan horse for the chinese government and the billing espionage war plan disruptions telecom carriers say it's a necessary supplier germany hasn't yet moved to prohibit huawei but chancellor angela merkel has suggested the company needs to reassure its customers. speaking before an audience of university students in japan ger

the us reeling government has decided to ban huawei. the u.k.nt decided they could manage the risk with rigorous testing programs. personally, i'm a fan of the australian view because the british program has been going on for eight years and they are not particularly happy with the level of assurance they are providing themselves. haidi: thank you so much for joining us, tom uren. joining us out of cambera. some earnings breaking's across the bloomberg. 8.5dends coming in at cents. we have also look at the income for the full year, 4.3% below the average analyst estimate. than the income lesser estimate of $352.7 million. full-year revenue at $5.54 billion, on par with what was expected in that range. the company saying cash flow was a vision to pay off debt and future dividends and to fund the expansion. we are seeing lower oil and lng prices weighing on the final number, despite higher production numbers out of oil search. we will be speaking with the oil search managing director peter botten to get his views on the results and whether it is g

. >>> huawei is getting the cold shoulder from the u.s. why that may not matter so much to the controversial chinese telecom giant. >>> plus, it's the generation that grew up before the digital age and it's having a tough time catching up. now silicon valley wants to change that. one start-up is focusing on elder tech we'll be right back. >>> welcome back to "the exchange." here are some of the movers this hour hsbc shares are lower following a profit miss. the bank blames higher costs and weaker results at its trading businesses they are also warning that slowdowns in china and britain could weigh on results this year the shares are down more than 3%. >>> homebuilders are moving higher today they're led by william lions home and lgi homes the national association of homebuilders confidence survey this morning showed an increase for the second month in a row and you can see a 3 1/2 pop in shares of william lyons. papa johns downgraded to sell, pointing to declining sales and the cost of subsidizing franchiseies, but a tough go for pizza of

do you think the huawei fight is now over >> i don't know how the u.s. can carry this out anywhere from india to parts of europe where there is no competing technology at any price that these countries would go for i think there will continue to be an offensive on huawei. the companies that are closer to us and depend on us for intelligence and security are going to have to give way. particularly on 5g, that hasn't been implemented yet the notion that huawei is going to be blocked from the telecom leader is fanciful >> good stuff, thank you very much >>> here's what else is ahead on the exchange today >> coming up, one of the world's top economists says states are leaving communities behind he'll tell us why and how to fix it >>> plus, fed chair powell turns on the charm a look at his year long offensive to win over congress >>> and 5g here, 5g there. 5g everywhere. it's the buzz word in the tech world right now. what exactly is it ♪ ♪ let's go from plans... to full-blown production. ♪ ♪ let's go from being on-call... ♪ ♪ to being on-line. american expre

huawei is a key base in europe.he trump administration is accused the company of espionage and working for china's government. >> we see that around the world. it also makes it more difficult for america. if that equipment is co-located with american systems, it makes is difficult to partner with them. we want to make sure we identify them in the risks associated. sophie: the u.k. prime minister theresa may is bringing forward a statement of brexit from wednesday to tuesday. she is not considering a customs union with the eu, a key demand of jeremy corbyn. dragging u.k. investment to the lowest since the financial crisis quarter. gdp rising just 2/10 of 1%. s the political ambitions of the princess is over, the electoral world commission banned her from running. ief redenomination -- br nomination brought a public admonition from her brother, the king. he said it was improper and greatly inappropriate. global news 24 hours a day on air and on twitter, powered by more than 2700 journalists and analysts in more than 1

-- fine the huawei-- fine huawe huawei -- who huawei technologies.ropean tour. he stopped budapest and hungry to talk about a variety of things, but he brought up the subject of huawei. he said they are encouraging others to not use their equipment. that may lead to some negative consequences. a very big push into eastern europe, particularly hungry and what ifpeii's -- pompeo said is they are located alongside important american systems, it would be difficult to continue those relationships. about it orpecific if there were military implications, but he did say that he continued the pressure had the u.s. government applied, telling governments they should not use the equipment for security reasons. the whitee think house is treating this whole issue a little bit differently? it feels like the implications are bigger and they are going aggressively against this company. >> certainly, they are taking a much more aggressive stance and a much more proactive stance. te got in trouble because they violated sanctions on iran. they ended up having to take s

how do you extricate all of the huawei telephone users? they are the number two smartphone maker in the world. how do you say you can't use those anymore? you going to pay to replace them with something else? >> it's an enormous problem. these network equipment items will be very difficult, phones are difficult, too. i think the question is how can you watch and be certain that these things are safe, even on updates, these things are updated over time. it's going to take a lot of cooperation and the world has to solve this problem. otherwise, we won't be able to trade in anything because everything is going to be part of this internet of things. so it's a real danger. then secretary pompeo says well, look, if the uk doesn't block huawei, then we won't be able to share information because they won't have secure networks. i'm not sure that that applies to military -- liz: government, right. >> -- or espionage kinds of officials because they will probably avoid having the huawei equipment. but there may be some issues here. liz: can this thir

pressing so hard, the huawei case, the manner in which it has been conducted, the attempts to keep huaweiut of europe and the like, i think for the moment the chinese system is galvanized to push back on that. i think later on we will be on the npc in march. that is one pressures will come back again. pressures might come most of all if the economy slows much farther than they need to and they have to get into the stimulus game again. david: if we are at that point we would love to have you back on the program. richard mcgregor, there. coming up we are talking commodities from the trade war to what is happening with the dam disaster. what may affect the mining sector, next. this is bloomberg. ♪ rishaad: you are back with bloomberg markets. 28% rise in profits after wrapping up lng production. also took advantage of strong cash flows and used that to boost its dividends. the first interview since results were out. he talked about expansion plans this year in which he described as the year of the deal. >> we have two big projects in china. one from australia, and our scarborough project. it

of huawei germany david i have to ask you point blank are there kill switches is there any back door that would allow the chinese government to enter your product and get data no there is a no kill switch there is no back door how are part of the server you know hundred seventy countries for thirty years. has been tested by our costumers by u.k. governments the concolor and is there is no back door no kill switch. but currently you have an issue with trust a lot of people have started doubting you how do you want to regain that trust so huawei will be more transparent will be more open will be more actively engaged with that they've been a stakeholder sort of media to introduce saw salt to promote ourselves. does the current situation her your business know it doesn't hurt our base much because our products and the surveys earn a lot from our costumer costumer like our products like i was service the loyalty is a pretty solid it's. very advanced in m. five g. and the five g. frequency auction in germany is just around the corner but it's still unclear how well we will be able to part

don't have everything on huawei.t has to be said to the operators who are saying they would be left behind if they couldn't have the option of using this equipment. that is interesting, isn't it, the source of relief? why would they be left behind? is it that only huawei can provide it, only they can provide it ata provide it, only they can provide it at a certain price? element two things. huawei is widely regarded as having led the field in this particular form of equipment -- matt well, two things. the operators also say that to build a 5g network you actually build on your existing 4g network. they have huawei equipment all over their 4g networks and they would have to start stripping that back as well and that is the message. there could be an 18 month delay if they were not allowed to do that. on the other side, you have this great suspicion of this company, which has embedded itself really in our infrastructure, with people pointing to the fact that all companies in china finally owe their allegiance to the ch

what's different, though, this is why huawei is important, huawei can spy on u.s.to get commercial information that beijing will use against us in the commercial arena. that's very different. that's off limits. that's what the chinese said in 2015 whe2015, the chinese said y wouldn't do it. they continued to do it and ramped it up. this is very different. huawei is the core of china's plans to dominate technology. maria: it's that reason why i believe you cannot separate what's going on with huawei, with the issues in trade. in terms of the trump administration looking at i.p. theft. what you just said is i.p. theft. that's what it is. >> gordon, we spoke about this years ago. huawei's been at the forefront of our concern ever since we turned them down, relocating near a mill you tr military bas. we've been through this during the obama administration. maria: they wanted to move the huawei headquarters near a military base. >> near a military base. it was turned down. huawei's been at the forefront of what was considered the least trusted of all the chinese compani