what do you do for huawei?y: my primary role is internal, although i have been doing external things for the past few months, but my responsibilities include chairing a committee of key parts of the company in the united states that tries to control riske, and and help support our overall ethics and compliance program so that we make sure we protect huawei, protect our companies, and continue to do business and managers cyber security risk. peter: what is huawei's legal and commercial status in the u.s. right now? andy: it is a moving target. we have a pending rule to an -- rule pursuant to an executive order. right now, we can't sell to the u.s. government, can't sell to u.s. contractors, and there is pressure for our small-carrier customers, wireless and wireline customers, to rip out huawei gear. so, there is legislation pending that would provide funds, not adequate or providing sufficient time, that would give them money to rip out huawei equipment. so it is a difficult situation and although not official,

their view could force huawei to do. we believe that -- for example, some government people recently talked to some of our customers. the government officials thought huawei was giving away equipment free to customers. there are recent comments by a government official and an attorney publicly, comparing our founder's offer to license our 5g technology, which means the u.s. government could seek all the hardware and all the software, he likened it to elon musk's tweet that got him in deep trouble with the fcc, calling his offer to license the 5g technology to america basically the equivalent of criminal fraud, which is objectively, by any measure, false. another example of what has been said publicly is that we update our equipment with software updates from china. a government official said that. that is demonstrably false. so the bottom line is -- and of course, government officials don't hear this, because they hear one side of the story. they are not willing to listen to us or other major experts who say there are re

not since a campaign against huawei ramped up in earnest. >> host: andy purdy, when you hear huawei has a backdoor and that information will be shared or the internet would be turned off, what is your response? >> guest: that are really to make things and discussed the issue of what's nesser to make america safer and what i hope members of congress and the executive branch will consider what the facts are. there are five nations in the world have the ability to virtual implant hidden functionality in hardware and software. u.s. government says that cannot be found. if you don't look, it cannot be found. the question when people talk about the chinese government and huawei, they're concerned about two things. they're concerned about backdoors and concern our employees outside the u.s. or in the u.s. would improperly used our access to customer networks and customer data to steal data. the backdoors, the former principal deputy to the director of national intelligence said you can test for backdoor. if the contest for backdoors that means you can put in place mechanisms, and i suggested w

telecom providers that receive subsidies from working with huawei and zte, and since then, huawei has sued the fcc over that vote in november. what led you guys to decide to go to court and what are your feelings about the prospects there and next steps? because obviously, they had a bit of a regulatory challenge through that, saying huawei could just challenge the determination that they are a threat. why go to court, and what do you see happening next? andy: let me say as a former longtime attorney and former federal prosecutor, i have some sense of how sensitive federal judges are to making comment on pending cases. so i want to be a little careful about what i say. but frankly, we had to respond, because, as in our filing. i think it is part of a broader problem in our life. if it weren't for double standards, there wouldn't be no standards at all. the fact is, people want to read and listen to what they believe in. they don't care about evidence because they want the other side to have evidence. i would use the example of how president trump looks at the democrats and impeachment

adam, your thoughts on huawei.saw a lot of reporting today, as peggy said, that the commerce department is looking to close loopholes that allows u.s. companies to continue to sell to huawei from their foreign productions. in addition to huawei, we are likely to see new export controls on foundational or emerging technologies, things like artificial intelligence, machine learning, and quantum, inc.'s where the trump administration is really concerned about the national security. finally, what are you looking for for phase two? adam: addressing some of the tech issues, like the cybersecurity law, cloud security provisions, and, basically, the broad set of policies that we know was subsidies helping chinese companies move up the value chain. taylor: adam, from the council on foreign relations, and bloomberg's peggy collins, thank you both. later this hour, we will hear from huawei's perspective when we talk to their director of legislative affairs. that is ahead here on "bloomberg technology," and coming up, look at

telecom providers receive subsidies from and working with while -- huawei and since then huawei has sued the sec over that that happened in november. what led you to go to court and what is your feeling in terms of prospects they are in the next steps? obviously, they have a bit of regular tory challenge saying that huawei cannot challenge the determination that they are a threat but why go to -- what you see happening there next. >> is a former attorney and federal prosecutor i have some sense of how sensitive the federal judges are to making comments on pending cases so i want to be careful about what i say. frankly, we had to respond because as in our filing and it is part of a broader problem in our life that if it weren't for double standards there would be no standards at all. the fact is people want to read and listen to what they believe in and they don't care about having evidence and they want the other side with i would use the example with the sec. president trump looks at the democrats and impeachment and sees them ignoring evidence. he sees them violating the constitution,

we don't access it from the huawei network from the huawei. we only use a specially configured laptop using a third-party and only after written permission from each of the 60 customers before we touch anything, then we access every keystroke of those laptops is logged and recorded provided by the customers. they know whether, , when and at what we've access and it's only part of part of network, not part of the core network. judges like an backdoors we can prove that our people and the united states have not been subject to the undue influence of the china government relative to the second major national security issue. that will get hold of an improv axis and send a china sensitive data. >> host: we have two minutes left. >> one big part of all this has been the onset of 5g and what that will mean for the u.s. and china and the whole world going forward. how competitive do you see the 5g marketplace in the u.s. right now, and how does attack into some of these discussions? the race the 5g has been thrown around a lot, referring to u.s. and c

it is huawei or nothing. how do you address that tension? further, do you think it is worth the in norma's cost to rip huawei out of the ground in these rural areas? rep. spanberger: the notion of ripping huawei further, do you d might be a greater step than we need to take at this time. and you are right to raise the issue of cost. many people choose huawei equipment because it is cheaper than other alternatives, and part of the reason it is cheaper is because the chinese government is involved in it. that harkens back to the challenges of having a significantly tied relationship between huawei and the chinese government. part of the larger discussion needs to be about privacy a paths, about creating and recognizing as consumers what one is paying for, what a consumer chooses to purchase. wes strikes back to what were talking about earlier, that some of these technological decisions are so great eerie die recently wanted a new device and ipad anding to get an another thing and the data that is available, how

that isn't necessarily meant to kneecap huawei. it is meant to give american consumers an alternative and potentially allied nations an alternative, and i think for me that is the priority. given my intelligence back ground, i'm very aware of and attuned to some of the challenges that do come from countries in the technological space where there are links between corporate interests and intelligence and military interests, but i think in any case, regardless of one's perspective, recognizing this is where we are moving on the technological front, ensuring that american companies are competing, ensuring american companies in our government have a strategy to compete and frankly the intent to compete is only going to benefit the consumer if we are having an active dialogue about how to protect consumer data and corporate information and private business interests and information that should otherwise be considered secret or specific to real privacy concerns, and then i think that's a good conversation to be having. i think the americ

huawei's meng wa nzhou huawei's meng wanzhou is in court, but will she be extradited from canada or not climate change dominates talks at the world economic forum in davos. good morning, asia and hello, world. it is tuesday and glad you could join us for another exciting addition of asia business report and i'm rico hizon and we start with huawei, because court proceedings have got under way in a vancouver court and the company's chief financial officer meng wa nzhou is fighting extradition to the us on charges of violating sanctions against iran. last year in may the chinese technology giant was put on aus chinese technology giant was put on a us government blacklist, effectively banning american companies from doing business with huawei. earlier i asked zoe thomas, oui’ huawei. earlier i asked zoe thomas, our business reporter, when we could expect to find out the outcome. we've got several more days of arguments expected at the court behind me and then the judge will go away and consider what she has heard and makea away and consider what she has heard and make a recommendation, but

huawei executive told me accusations of spying were groundlessm huawei executive told me accusationsgroundless. it is definitely not the truth. huawei is a company over the past 30 years, there are no cybersecurity accidents. so we serve one third of the world population who have a very strong track record. the fee is huawei's roll could allow beijing to spy huawei's roll could allow beijing to spy on communications or even turn off the technology on which our lives will depend —— the fear is. but the government says the uk's network can be protected through a series of measures. to avoid dependency and one company, other suppliers will be used and huawei capped at 35% of the total. the company's equipment will be banned from the most sensitive locations like near nuclear or military sites. and it will not be allowed at the heart of the network known as the core, which controls where data flows. the challenge for government is that huawei equipment is already pa rt is that huawei equipment is already part of the infrastructure. including in 5g musts like this, already being rolled ou

could force huawei to do. there are real solid security risks in a world. all the equipment, carriers and equipment providers have to be subject to strict scrutiny and testing of products and measures, because bad guys can hack into everybody's products, particularly with a global supply chain deeply embedded in china. those are the kinds of things that are necessary to make sure that america is safe going forward. peter: congresswoman spanberger. rep. spanberger: when i am choosing which technologies to purchase and provide my personal data across, the risks that are present with huawei technologies are not some that i am willing to take. so my answer would be no. but mr. purdy made good points talking about supply chain, challenges, talking about threats that exist with any type of technology. all those things are true. but it is also the case that with the relationship between huawei and the chinese government, those risks are a bit more heightened. emily: there is another part of this conversation, which i

when we do look at examples of huawei and zte, there are significant indicators that because of huawei close relationship with the chinese military and chinese intelligence services, that the use of while we technology could create backdoors for areas of access to consumer data or company data that from an american perspective we would find unacceptable. there are also others who may think even if it's not intentional, even if it doesn't come from direct links between the intelligence community and huawei, that even china's privacy standards and corporate practices are different from those that we find acceptable or even legal here. recognizing whether it is wholly intentional coordination or simply a matter of different business practices, the priority does exist that as wally continues to show strength in the development of 5g technologies, that we need to ensure that the american public, american companies recognize the threat and that we're taking effort and action to ensure we have an alternative. >> there is real skepticism around this narrative that huawei is a national security

why is the gsu determined that huawei shouldn't be involved in the sg huawei shouldn't be involved in once about home, but why get involved here? the most important reason is that lots of countries are thinking about this problem and will be looking to see what the uk decides to do. the is leaning on the uk because it knows that it will impact decisions globally. it does have security concerns the company. cathy asks, is huawei the only company providing 5g technology? what is the alternative? it is the frontrunner. it has been traditionally the cheapest. it has spent a lot of time and money over the years developing kit. there is another chinese firm, said te, but because it is chinese that ruled that out. ericsson and nokia are both european companies and they say they are ready to go and can supply equipment if needed, but they are a lot more expensive. if they are being limited to 35% other companies will take up the slack. boris johnson has said that he is going to seek to attract fenders from outside the uk. 0ne seek to attract fenders from outside the uk. one of the problems he

crunch day for huawei. the uk decides whether to ban the chinese firm's equipment from its 56 network. and countdown to brexit. uk firms get ready for life outside the eu. and on the markets, the asian markets, many tumbled again on tuesday extending a global sell—off as the toll from the rapidly‘s reading chinese virus spikes. —— rapidly spreading chinese virus. welcome to the programme. the uk government is expected to decide whether to government is expected to decide whether to ban government is expected to decide whether to ban equipment government is expected to decide whether to ban equipment made government is expected to decide whether to ban equipment made by huawei from its 56 network. this comes as the us warned that british sovereignty will be put at risk by allowing the firm to play a role in the sg allowing the firm to play a role in the 56 network. britain's prime minister borisjohnson the 56 network. britain's prime minister boris johnson is the 56 network. britain's prime minister borisjoh

which is exactly where huawei will be.ther it is naivety or arrogance that prevents the uk government seeing the high risks presented to our national security by huawei. this is a company that is financed by the chinese communist party. and we are going to give them an open door to our security. he talks about huawei as though it's some kind of chinese answer tojohn lewis. this is a faustian pact with the chinese communist party. he needs to be honest about it. 0n the regulatory aspect, mr speaker, it strikes me the government is getting this the wrong way around. they will introduce what it says in the statement, is this robust regime for telecom regulation. surely that should come before giving a green light to something as dangerous as huawei into the 5g network. and the question then becomes what if the new regime decides that what the government hasjust green—lighted is too dangerous? is there an opportunity to stop? we will make sure that in legislation, we have the full panoply, notjust the powers, but of enforcemen

are they anywhere near huawei ? vendors but where are they? are they anywhere near huawei? are already installing sg compete, they are already installing 5g and the us and other european countries not using huawei technology or kit. there are alternatives. it has come down to some extent i believe a political decision, it is cheaper and faster and gets it out of the way and the government can move on. it is a critical national issue. how will historyjudge today on this decision? i believe it is a little bit like the trojan horse story, once the trojan horse is inside the city gates and the gates are shut, you cannot of the horse. once this huawei kit is on the edge of the network even if it is up to 35%, onceit network even if it is up to 35%, once it is installed and transmission stations around the country, breaking those contracts will be extremely difficult and it is going to be a very long product process to try and stop that from happening. the belief in government clearly as security agencies are on top of this, gchq leader, any perceived threat we can deal with. do

nick schifrin: huawei chief digital information officer edwin dienr shows off what huawei calls a smartlosedircuit cameras feed into a database witadvanced artificial intelligence, and facial recognition can identify everyone, cross-reference license plates, and analyze unlimited information. huawei promotional videos compare the combination of a.i., 5g, and surveillance to how a brain processes information to controthe body. the u.s. fears that huawei's information isn't secure, because the control is actually the chinese government's. vice president mike pence: to have huawei operating as a 5g network in our country or in our allies' countries, we believe,da represents a fntal compromise of our national curity and the privacy o millions of citizens. william brangham: the u.k.'s decision to allow huawei in came despite months of intensey lobbyinge trump administration. in response, the u.s. says it now might limit intelligence-sharing between western allies. historian and journalist garrett graff has been covering huawei for "wired" magazine. welcome back to the our." garrett graff: th

but a huawei executive told me accusations of spying were groundless.definitely not the truth. huawei is a company over the past 30 years, there have not been any cybersecurity accidents. so we serve one third of the world's population. we have a very strong track record. the fear is huawei's role could allow beijing to spy on communications or even turn off the technology on which our lives will depend. but the government says the uk's network can be protected through a series of measures. to avoid dependency on one company, other suppliers will be used, and huawei capped at 35% of the total. the company's equipment will be banned from the most sensitive locations, like near nuclear or military sites... and it will not be allowed at the heart of the network, known as the core, which controls where data flows. the challenge for government is that huawei equipment is already part of the infrastructure, including in 5g masts like this, which are already being rolled out in cities. a decision to exclude the company would mean ripping out this equipment, at

huawei denies any involvement in espionage.a company of the past 30 years, we, with serve one—third of the world population. we have a very strong culture. the risk of what we're giving up by adopting huawei as any part of our telecommunications infrastructure or, even worse, allowing huawei to control the 5g networks in countries like the uk or in the united states of america, is a dangerous path forward. and we will have more on that decision with a cybersecurity expert later. now to other stories making the news: a powerful earthquake has struck between the coasts ofjamaica and cuba. the quake, which was a magnitude of 7.7, according to the us geological survey, has not caused any major damage so far. but tremors were felt as far away as miami, where office workers were evacuated from buildings. republican senators have met to discuss how to prevent witnesses from testifying in president trump's impeachment trial. they could include the former national security adviser, john bolton, who reportedly claims the president direct

but a huawei executive told me accusations of spying were groundless.er the past 30 years, there have not been any cybersecurity accidents. so we serve one third of the world's population. we have a very strong track record. the fear is huawei's role could allow beijing to spy on communications or even turn off the technology on which our lives will depend. but the government says the uk's network can be protected through a series of measures. to avoid dependency on one company, other suppliers will be used, and huawei capped at 35% of the total. the company's equipment will be banned from the most sensitive locations, like near nuclear or military sites... and it will not be allowed at the heart of the network, known as the core, which controls where data flows. the challenge for government is that huawei equipment is already part of the infrastructure, including in 5g masts like this, which are already being rolled out in cities. a decision to exclude the company would mean ripping out this equipment, at enormous cost, and slowing down the drive for g

two out of five have banned huawei already.ement today. none of this is a surprise in terms of what we thought was going to happen. the real question is united states bluffing? happen. the real question is united states bluffing ? because happen. the real question is united states bluffing? because the united states bluffing? because the united states has set if the uk does this, it will restrict intelligence sharing. the uk, boris johnson and his team might think it is bluffing because you would have thought in an hierarchy of awful things to happen to lose the five eyes would be a very bad thing to happen not to mention the possibility of damaging the prospects for a free—trade agreement. exactly and we have seen response from many senators and secretary of state mike pompeo meeting with the prime minister, we will be looking to see if this is anger and bluster ahead of a us presidential election at the end of this year or if this is serious. what we want to do a separate noise from signal and start looking for concrete moves

still to come on tonight's bprogratish authorities have given huawei the thumbs up to supply parts of their high-speed 5g network. u.s. authorities have cited security concerns. u.s. health officials are expanding thscreening process for the coronavirus to 20 american airports in an effort to stop the spread of the disease. such measures were already in place in five airport hong kong has announced plans to cut travel linksith mainland china. more than 100 people have died and 4500 are confirmed to be affected. rupert: if carrie lam was aing. to calm fears in hong kong about the coronavirus, her face mask set a different message. mrs. lam is under huge pressure to shut the border with china. today she partiay capitulated. intercity services to china will be suspended, she said. flights will be cut by half. ferries will also be stopped. by thursday morning, the number of people crossing into hong kong from mainland cna behind me should be dramatically reduced. there will be no more ferries, no more trains, no more miniaturists. it is a -- no more mainland touristss. it is a very dramat

they have huawei equipment. i think most of their security apparatus realized it's not a good long-term solution to have your whole network dependent on a 100% on a pure chinese supplier and particularly a supplier like huawei that has m.ch close ties to the can we move this away from kind of a single stat, single providor to a more open base software-driven system? that's where orand will build a bridge to and the fact that our government would make that kind of down payment that i hope would spur other development from other western nations who don't want to rely on china. >> timetable, end of the year? >> my sense is this is the kind of legs that needs to pass sooner rather than later because until we have a plan not just coming out of america but for the west at large huawei is going to continue to win? -- to win. >> before the election? >> another country because they don't feel there's a viable western alternative. there's not even a viable western alternative is going to turn to huawei,. if we can put tog

chinese company huawei, versus the rest of the world. plus, much more. >> woodruff: it has been an elusive goal for decades, to end generations of conflict mi the le east. nick schifrin unpa fs today's plm the trump administration. >> schifrin: from his very first words, president trump y,scribed what he's called the deal of the centn the context of israel. >> today, israel takes a big step toward peace.la >> schifrin:ed by israeli prime minister benjamin netanyahu, president trump unveiled the most detailed peace plan in history. over 50 pages, the plan endorses a palestinian state, but it would not have control over its defense or airspace, and wouldn't come into existence unicss palestinians met spec conditions. >> together, we can bring a new dawn of the middle e ht. >> schifrie is today's map. the border since the 1967 wa in yellow, is the occupied west bank. map.this is the new peace plan's israel would surround a palestinian state, control a corridor along the jordan border including the jordan valley, and the homes of 97% of isra

infrastructure was taken yea rs in huawei infrastructure was taken years ago in huawei infrastructure taken years ago because it was cheaper at the time. that did not raise this level of security concerns and now it is very hard to kind of reverse that. the thing is, you have got to realise that there is a difference between a0 and 5g. it is notjust one better. 5g is fundamentally new technology, it is going to be running internet things, manufacturing, robotics, autonomous drones, autonomous cars, and so it isa drones, autonomous cars, and so it is a step change in the type of technology we are talking about. but built on existing infrastructure. yes, absolutely, built on infrastructure but the way that you use technology today is notjust putting in extra masts marked 5g, you are running a network that is really fundamentally different to what ag was. that is why it is so critical and we are talking really about the uk and the us and international and national infrastructure here. and that is why people are calling this the technology equivalent of the space race. absolutely. and the

they have huawei equipment.is not a good, long-term solution according to their security network. in particular a supplier like close that has such ties to the communist party. what you have to say is --what is the alternative? will it be able to compete in terms of not just five g but also six g and next-generation technology? and can we move this away from a single provider to a more open based software driven system? that is where the west can compete. and the fact that our government with this legislation would make that kind of down payment that i hope but also spur other development from other western nations who don't want to rely on china. kind sense is this is the of legislation that needs to pass sooner rather than later. until we have a plan, not just coming out of america, but for the west writ large, huawei will continue to win. country, because they don't feel there is a viable western alternative, it is going to then turn to huawei. if we can put together and organized plan, i think the westwood s

that huawei was one of only three suppliers. the times meanwhile says borisjohnson resisted opposition from his defence secretary in making that decision. and the financial times saying that the trump in ministration‘s condemned boris johnson's position but crucially stop short of threatening direct retaliation. the daily telegraph reports boris johnson has moved to heal the rift with the us over huawei by telling president trump he would never again allow britain to become reliant on chinese technology. the guardian is focusing on donald trump's unveiling his vision for middle east peace and a white house lunch they say gifted israel a witch west of its long—held demands while promising palestinians a potential state with with severe restrictions. the daily mail put the chairman of the police federation sang smart motorways are death traps and the £6 million robot should be put to a halt. and according to the express and a fierce prince answer isb express and a fierce prince answer is b whether by claims that he is refusing to

gordon: but a huawei executive told me that accusations of spyingere groundless. it is definitely not the truth. huawei is a company over the past 30 years, there are no separate security accidents -- cybersecuty accidents. gordon: the fear is huawei role could allow beijing to spy on communications or even turn off the technology on which our lives will depend. but the government says the u.k.'s network can be protected through a series of measures. tovo dependency on one company, other supplies will be used and huawei cappe at 35% of the total. the company's equipment will be banned from the most considered locations--sensitive locations. and it will not be allowed at the heart of the network known as the core, which controls were data flows. the challenge for governwent is that h equipment is already nart of the infrastructure, including i 5g maps like this already being resled out in ci a decision to exclude the company would mean ripping out this equipment adenomas cost and slowing down the drive for greater connectivity. washington has lobbied for a hard-lin

that statement through with the limit from huawei.d work after brexit have been published in the last hour. the migration advisory committee — that's the independent body that advises the government on immigration issues — has called for a reduction in the minimum salary for skilled migrants and a points based system for workers without a job offer. let's take a closer look at what's being proposed. currently skilled workers who are not from the eu have to earn at least £30,000 to gain admittance to the uk. the committee has recommended that is reduced by £4,000. four hundred pounds. (ani 3)this means that all skilled workers — from the eu and beyond — will have to earn at least twenty five thousand six hundred pounds. (am! 4) professor alan manning warned the government that a points—based immigration system would reduce economic growth and that there would be "unavoidable, difficult trade—offs." let's talk to our home affairs correspondent danny shaw, he's been at the meeting this morning where this report was released. there is obv

it second largest is huawei. caught in between, and people are starting to ask questions rather about how long it can continue to do that, whether or not the united states will start to increase tsmc to stopon supplying huawei. they have said they will continue supplying both, but investors will be watching closely when the company receives its fourth-quarter results of little bit later this afternoon, if it has anything to say on huawei and any potential changes being made there. rishaad: tell me, sam, what about defense help there, as well? we have these f-16's that the u.s. has been selling, u.s. weaponry, as well, and how does this play into the tensions of this sort of triangle of washington-beijing-taipei? amson: well, obviously, china is never very happy about u.s. arms sales to taiwan. the u.s. is the biggest supplier of defense equipment to taiwan. it is the only supplier of defense equipment to taiwan, essentially, so china always thinks about it when there is a deal, but i think what we will see over t

the extradition hearing from huawei's chief financial officer mum onejoe begins huawei's chief financialfficer mum one joe begins in huawei's chief financial officer mum onejoe begins in canada. the apple gathering of business and politicians opens in davos. good morning asia, hello, world. it is a monday. —— meng wanzhou was up let's begin with us china relations and the case at the heart of it, the extradition airing from huawei's chief officer, meng wanzhou, start ata canadian chief officer, meng wanzhou, start at a canadian court in vancouver later today. remember, she was arrested in december of 2018 and the request —— at the request of the us and she has been accused of misleading banks about why we's dealing with iran. we have all the details. potential villain or political pawn. that is when meng wanzhou arrives political pawn. that is when meng wa nzhou arrives her extradition trial on monday. authorities allege the 47—year—old lied to us banks to help assess —— subsidiary of huawei to sell to around, violating us sanctions. the us has since labelled huawei security risk and ban

is not huawei to gain leverage. huawei as aiew chess piece. huawei is not part of the economic dialogue. it's part of the nationonal security dialogue which is ongoing. >> the u.s. has ostracized huawei and its 5g network, warning its allies huawei could use technology to spy on them. beijing passed a law forcing china-basesed companies to cocooperate wiwith intelligencne services. the e phase onone trade dealal t mention n huawei, bubut the secd deals with cybersecurity. >> let's take a look at the markets now. read across the board in europe, taking their cues from asian markets s which tumbled overer e newsws of the c corona virus. falling .5%.ax over has solold i its delivery business to a local rival. not the first time uber has done this. itit is under prpressure from investors to fix it sailing fortunes. it reported a $5.2 billion loss in q2. facebookok will createte 1000 nw jobs in the u.k. this year. the media giant wants to develop messaging app whatsapp. the company's largest engineering site outside of the u.s. boeing is in talks w

to no exposure to huawei. huawei gets a reprieve in stekd half, there's an upside. if they don't get it, fine looking at 2020, we think it's more about some tensions cooling down and much better return to growth, much better valuations, earnings up for the semi group overall. we think huawei will be less of a concern because it's out of the numbers of a lot of the semi companies here >> mitch, does the apple versus the government conversation, when it comes to encryption, have implications for chips? meaning one way or the other, if we start to have policies where different governments want access to different types of data and information, does it affect the market for devices and the free flow of commerce? >> i don't think that will impact the chip sector i think that's more of a software issue in terms them handing over the keys for the information the government may be looking for in terms of chip stock, the end of the day, you'll still have to increase your sales of smartphones because you'll move the 5g

don: huawei is private and private employee held company. the trade deal between the two -- huawei hasnot no input there. like any global company, we look for trade stability as well as open markets. we have preached that we hope that is the result down the road as we get to phase two or phase three. taylor: you mentioned you are a global company. how has the impact been from the trade tensions? don: like any company, there is always tension. but huawei always has business continuity in plans -- continuity plans in place so the effect has not been that drastic. like any company, you are looking for stability and free markets. taylor: we heard from steve mnuchin who said huawei is not a chess piece in the u.s.-china trade fight. he wants it to remain a clear, national security issue, separate from trade. is it clear that is how it should be treated? don: huawei's mission is to connect the world. enumerated by the u.s. government in the past get the basic issues of trust and security. the goal for huawei and the goal for the u.s. government is

they are selling to huawei. so even the statement is absurd on the face of it. christian is absolutely right. you have to understand huawei works for the interests of the communist party of china which is a primary strategic threat today. lou: why is there so much obvious conflicted thought here within the administration on whether huawei is a threat to u.s. national security or not? if it is not, trite as you would any other country, or company, chris. but if it is a threat to our national security, this is not something for the compromise of the board room, this is something to bring a hammer down on, is it not? >> usually it's the state department making these ridiculous arguments. they spy on us and steal our secrets but we want to have good relations with china. it's the other part of government. pompeo and pence are on board. wilbur ross is on board with where the president wants to go. potentially mnuchin over at treasury. it's like the world is upside down. lou: wouldn't you like to be the defense attorney for the chief financial officer of huawei in van

given the nature of restricting huawei on the way it has been talked of?en chasing this for a long time. that is the great debate between the two sides, the australians and the americans on one side and the americans on one side and the uk on the other. the answer seems to be if we want to be technical about it is that presently in the 4g network it is possible to distinguish between a periphery and a choral, in which case the cause is where the sensitive data is kept and the periphery where you and i the consumer interact with that data. people who know technically or gifted on the topic basically assessed that over the next five years, 5g will continue to evolve so it becomes more virtualised and the corporate distinction begins to break down. so by adding huawei now, eventually the uk is looking itself into this kind of rigid physical structure. that could be problematic years down the road. so it is a little bit of save money now but avoid the actual, some of the great... 5g. essentially it is edge computing capabilities. very briefly, if you don't min

this is all about the 56 network and huawei. —— less than a year ago that we lost a defence secretary over the contracts in question over the security aspect. this story says the security aspect. this story says the borisjohnson the security aspect. this story says the boris johnson is the security aspect. this story says the borisjohnson is on course for a diplomatic war, understated as ever, with donald trump and if you wish cabinet row over plans to hand huawei access to the sg cabinet row over plans to hand huawei access to the 56 phone network. and this is about the ongoing view and concerns of us government that this would allow a trojan horse into the communications network, particularly between us and the americans. and their whole security apparatus. this and the most unlikely scenario is that donald trump has suggested that britain willed an alternative to huawei together with the us. if only it were that easy. and i think that has been dismissed as a little overambitious full but three us senators including marco rubi

huawei equipment is already a big part of the 4g network in the uk. affairs, to explain. these global chains all technology pretty much as global supply chains and if you dig deep enough, you'll find china and the supply chains when way or another. even if the us household name, a lot of them have their kid made in china. the market for supplying 5g equipment is incredibly concentrated and they are only really three vendors to choose from. and exists on top of infrastructure in which waterway has been providing this for 15 years. so u nless been providing this for 15 years. so unless you want to stop everything, rip out all of that of huawei equipment, who pays for that and how long does that take? you have to ta ke long does that take? you have to take into account an attitude of and amazing security risks in working with the reality on the ground. a good example of why took place in ethiopia the uk has designated huawei as a high risk vendor, a good example of why took place in ethiopia a couple of years ago. addis ababa is home to the headquatrters

that huawei is a national security risk and could be used for these purposes huawei has continuously denied these allegations. one, they can block huawei outright or secondly let them into the network in a partial way as part of a noncore part of the 5g network and perhaps limit their market share as well that is seen as a half way help. you have the u.s. pushing the uk to completely block out huawei the other side, you've got the chinese wanting huawei in the network. not only with the political relationship with the u.s. and trading relationship the chinese have threatened germany with consequences if they completely block them out another thing is to consider the 5g rollout, whether that will be slowed or the impact to these carries already rolling out with some limited equipment can you see some of the ministers turning up now for this national security council britain is placed between a rock and a hard place if there is a complete block, that will make the u.s. happy. if there is a partial allowance, that would please the chinese but anger the u.s. johnson is really in a tough

over huawei. the british will give the chinese company a partial role in building the country's next generation mobile network. the u.k. says it will keep huawei out of its most sensitive core parts. the trump administration arguing that letting huawei build 5g networks is a security risk. it says it is disappointed in the u.k.'s decision. demand for housing is strong and there is not much inventory. that led home prices in 20 u.s. cities to rise at the fastest pace in nine months. index risingler 2.6%. the cities with the biggest increases, boston, charlotte, and seattle. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. hurtado.na this is bloomberg. guy: thank you indeed. the u.k. has decided that huawei will be allowed to partially build its 5g networks. foreign secretary dominic raab is speaking in the house of commons. morgan is speaking in the house of lords, the digital secretary, laying out the t

the reason being is huawei takes cybersecurity seriously.e do not have access to the data unless given specific broadband by the provider who controls that access. our customers in the united states any invitation for us to , put our clement in the network is with special, monitored laptops with no chance for us to access data we don't have. 'sylor: that was huawei director of congressional affairs, don morrissey. coming up, microsoft joins the global movement fight climate change. we will hear from its president and chief legal officer brad smith about the plans they have -- tech giants have in store. and if you like bloomberg news, check us out on the radio. you can listen on the bloomberg app, or bloomberg.com. this is bloomberg. ♪ taylor: microsoft made a major investment announcement in the effort to fight climate change. it will invest $1 billion in companies and organizations working on technology to reduce or remove carbon from the earth's atmosphere. i sat down with microsoft's president and chief legal officer, brad smith. brad: mi

are routes into the system, which huawei a re often routes into the system, which huawei are often accusedut that is the situation now. there is no chinese company that is independent of the chinese state so does not stand to reason that if there was a major crisis between the two countries that the chinese state would have access to the uk's network? i suppose it is what you consider to be access. you are right to say that the future is not necessarily what has happened in the past. i accept that that is a valid point so it'll be interesting no what the interest of us has a future intentions. it is also the case that that company is subject to chinese law. our companies are as under similar constraints in terms of uk law, so does not the most compelling point. obviously, what huawei does is very important. it is wrong to suggest that we would allow huawei to build the system. i think the question, as far as the uk are concerned, is there appears to be a disagreement in the us and the uk weather you can legitimately and safely employ components from huawei in some parts of the system. i do

should the uk abandon huawei than?” response there. should the uk abandon huawei than?cal issue which we ought to be capable of resolving ourselves. we have some of the best experts in the world in our gchq intelligence agency who can advise ministers on what we all want to achieve which is a 5g network which is safe, protected that which can be done quickly and effectively. ido can be done quickly and effectively. i do not believe that my former collea g u es i do not believe that my former colleagues who are still in the civil service would recommend to ministers a way forward which risked british security you know as well as idid british security you know as well as i did that the most recent report which was released by the national cybersecurity centre which spread to gchq. they say they can... only partially guarantee risks... there are no... there are no risk—free solutions in our life. one thing that surprises me. if this is such a critical issue for british and us nationals cutie, how come they do not have 5g of their own? we or they do not have a 5g solution o

a lot of difficult questions about huawei.ph saying the prime minister is expected to defy warnings and allow huawei into the sg is expected to defy warnings and allow huawei into the 56 network. for a leader and a government who have prioritise sovereignty, even pushing away from european allies with shared values, to now allow the chinese this huge level of access is pretty extraordinary. it is fascinating because it is one of borisjohnson's first fascinating because it is one of boris johnson's first big fascinating because it is one of borisjohnson's first big political decisions since the election and if as expected he does go ahead with allowing huawei into some parts of the 5g network with some restrictions, it will be defying warnings from the us to do it, and also crucially from his own party. there are quite a large number of big hitting backbenchers, iain duncan smith, those on the brexit wing of the party who think it is not a great idea, and they buy these arguments it is all about sovereignty and we shouldn't be

over huawei. british will give the chinese company a partial role in building the company's next generational networks. they will keep huawei out of the most sensitive core parts. the trump of mr. risch and argues that letting huawei build fudgy networks is a security the trump administration argues that letting huawei build 5g networks is a security risk. the yearer, from before, the s&p schiller index rose 6.2%. the cities with the biggest increases, charlotte, boston, and seattle. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm courtney donohoe. this is bloomberg. vonnie: thank you. back with us now, max kettner, multi-asset strategist at hsbc. talk to us about what you are anticipating from the boe. is: i think in january, it probably too early to get a cut. we've got a cut in may penciled in. generally, we are still neutral on u.k. equities as a whole, , a biteutral in gilts better opportuniti

huawei insists it would never take orders from the chinese government. the prime minister is chairing a meeting at the national security council at which the decision would be made. the secretary told the lords that the uk would never take the decision to threaten our national security. the security and resilience of the uk telecoms network is of paramount importance. the uk has one of the most dynamic digital economies and we welcome open trade and inward investment. but our economy can only prosper when we and international partners are assured our national infrastructure remain safe and secure. lady morgan was repeating an answer to an urgent question that had been asked in the commons, where mps were sceptical to say the least, about the prospect of huawei being involved in the 5g network. tomorrow, a decision will be made that will not have any further say on because any decision that is made will nest a dragon into our critical national infrastructure. or not. and that decision will not be one that is reversible by a future government with any ease

i the uk government about huawei and from borisjohnson.nson. i will see you in a few minutes to discuss that. extreme heat and extreme flooding coming up in this world weather round—up. starting with australia, where you can see clearly show a cloud across the northern territory and queensland at the moment, heavy rain here. this is a weatherfront that will move down towards the south island of new zealand. and behind it, high pressure builds. now, that will allow a change of wind direction and we will see heat coming in off the interior and that means temperatures across the south east once again are going to soar. so the darker russet tones developing through the middle part of the week so temperatures on wednesday in adelaide at a0 degrees. now, that heat gradually pushes east towards melbourne. that is optically great news, as we still have the australian open taking place and have an impact on friday. at least the temperatures ease down can i rain potential again on sunday. from extreme heat to extreme rainfall, and flooding across ma