host: for several years in this country we have had an ongoing debate about the role of huawei and its connection to the chinese government. you agree? -- do you agree with that? guest: there is a strong connection. laws dictate that data huawei collects can be accessed by the chinese government for whatever purposes it likes. the authoritarian value set that china brings to the table, the fact it heavily subsidizes companies like huawei, and add -- and as those comedies further establish networks and for china to enter more partnerships with the systems, that represent a direct challenge to democracies. huawei in of itself mostly has commercial interest in mind, but because it is so distinctly tied to an authoritarian system, are the linkages between the two are nebulous, i think companies like huawei represent a challenge to mott -- challenge to democracies. host: in your book you write that the broader political landscape is worrisome and that democracies are undergoing a troubling. of retrenchment. there is a growing consensus the world is extreme a third wave of autocracies nation

and so huawei in and of itself mostly has commercial interests in mind but because it's so distinctly tied to an authoritarian system where the linkages between the two are nebulous, i think that companies like huawei represent a real challenge to democracies. >> host: and in your book you like that quote, the broader political landscape in which digital repression is unfolding is worrisome. democracies worldwide are undergoing a troubling period of retrenchment. there is a growing consensus that the world is experiencing a third wave of a talk organization. what does that mean? >> guest: right. up until about 2006, the number of democracies was on the rise, kind of a legacy of sorting post-cold war and so forth, but then starting after 2006 and leading into today we've seen a reversal this democratization affect. essentially what we are witnessing now is an autocratic resurgence with a number of authority in countries around the world are even democracies that are now meeting authoritarian or bye-bye pipe was complacent like brazil, like the philippines, like hungry, like poland, tho

authoritarian system where the linkages between the two are nebulous, i think companies like huaweiepresent a challenge to democracies. peter: in your book you write that " the broader political landscape is worrisome and that democracies worldwide are undergoing a troubling period of retrenchment. there is a growing consensus the world is extreme a third wave of autocratizaation." what does that mean? bash debt -- third wave of autocratization." what does that mean? steven: up until 2006, the number of democracies was on the rise. this was kind of a legacy of post-cold war and so forth, but starting after 2006 and leading into today, we have seen a reversal of this democratization. what we are witnessing right now is an autocratic resurgence, where the number of authoritarian countries around the world or even democracies that are now leaning authoritarian were ruled by populists, places like brazil, like the philippines, like hungary, like poland. those numbers are increasing in significant ways. democracy more broadly, whether or not you are looking at it through a technology len

policy with respect to cables to be built by china's huawei marine networks or even cables that would be built by trusted providers that would connect between the u.s. mainland and china, there are several three or four of these connections that are direct between the u.s. and china but the license was given by the fcc for a link in 2017 and since then you've seen several proposed projects that have not yet met with fcc because of cc has become completely unable to trust the cable that would land in shanghai or hong kong and would be free from chinese state subversion. another piece of the u.s. domestic policy mix has to do with technology controls and their it's a little more opec, how are we managing things like export controls to see the sophisticated fiber-optic technology needed to allow the chinese players to compete at the top-tier against the long-standing and more advanced democratic country players, are we preventing american institution and companies exporting that technology or are we seeing leakage of the damaging variety and some of that has to do with the u.s. companies

is known for a long time at huawei emory networks. it's now been re-branded as h. and am tech but it is essentially the same company and what it wants to do is capture a large share of the international undersea cable market, not by sabotage undersea but by winning contracts for companies and governments all around the world to build cables. ,,,,,. ,. ,,. ,,. whether those projects are built by trusted providers, from the united states, japan on the one hand, or built by unfortunately, on trusted providers from china, subject to all of the data fest and subversion of the chinese communist party, is an enormous statistic question that will be addressed over years. because an enormous amount about private data, consumer data, governmental, scientific data will be flying through these pipes for years to come. >> great, thank you. >> jared like to come back to you for something, if we have some questions from the online audience. can you tell us a little bit about the -- associated similar type of programs, where they are aiming at, what'

. >> on that note huawei -- please go ahead. >> lauren just reminded me i have one more thing, christina i might need your help on this but mom can you come up for a second, where is my mom, you do not have to come up i can come to you. i wore this necklace and it is a board and feather and they weren't open space and now it is for you. [applause] >> i would put on myself but i would need my reading glasses. >> last but not least amelia earhart what a lovely transition in aviation icon and now in aerospace, space icon, what was it like. >> i cannot tell you i had such a good structure he took us through everything that we were going to do until they went up this morning the noise was not as quite as bad and we went right on up and i saw darkness and i thought i was going to see the world but we weren't quite high enough. i felt great, i felt like i was laying down and i was going into space, i want to thank you, you made it possible for me, i've been waiting a long time to finally get up there and i've done a lot of astronaut training through the world russia, america and i can always be

we've had all the of the awakening around 5g and huawei. almost all of our attention from a policy perspective has flowed to 5g terrestrial hardware, the question of who will we or our european allies or developing countries in africa use for their 5g base stations. that is an extremely important set of questions. all of those concerns, all of the risk of data to the chinese communist party apply also to undersea cables. the sort of concern, the sort of policy creativity and the sort of diplomatic seriousness that we increasingly understand we need to apply to 5g when you're looking at terrestrial systems and huawei and also needs to be applied to the u.s. government and under sea cables and who builds them and finances them. >> you mention the sort of different ways that the 5g issues and terrestrial hardware information and the kind of attention they get to undersea cables. being under sea, you can't see them. there's also been a disparity between the way we have treated in the past the threat from russia and the threat from china. maybe

>> guest: i dealt with huawei years ago and they are a force.n the other hand, there is no question some of things they've done to get are have involved theft from american companies and i find that difficult to swallow. we have to be careful. i would have played a certain extent that we encourage trade and lower terrace, and companies doing business with each other, we keep in a safer place to the extent where integrated as well. i'm passionate about resilience and self-sufficiency which sounds conflicting but companies can be more difficult or less good players than others. when president trump created and expanded the qualifications of the entity list of basic human rights issues i think he took a bold step. i noticed president biden hasn't changed that yet. president trump never got credit for being so bold that way and it affected a number of things we were doing but were happy to follow the law. as long as there's a process or procedure and it is transparent about what's going on, it's a challenge. honestly, we lost some revenue because of

now originally, angela merkel, the german chancellor, was going to let huawei, specifically, add their equipment to the 5g network around the united states , and there you see today, them in the oval office, meaning the u.s. sees huawei specifically as a national security risk and a spokesperson for the bureau of industry and security within the commerce department tells me communications equipment made by untrusted vendors is a threat to u.s. security and our allies. we will ensure that american telecommunications networks do not use equipment from untrusted vendors and we will work with our allies to secure their telecommunications networks. now, the statement adds that huawei's ties to china's military, human rights abuses, and theft of intellectual property are a source of deep concern, and the u.s. government is committed to take regulatory action to ensure our policies reflect that concern. now the german chancellor eventually lost her battle in politically internally and germany is moving back towards the western countries and blocking huawei still as biden rolls out the red car

. ♪ caroline: china's huawei technologies says it was treated unfairly on the u.s.led it a security threat. the company is seeking redress in a major fight with verizon. huawei claims verizon is using its patented networking technology without a license. verizon claims huawei is using its patented invention. shares of e.v. maker xpeng ended flat. we asked the chairman and president and why he decided on the listing. >> having a listing closer to home is always in our strategy. m,yas a china consumer brand, we want to have our customers ultimately be our shareholders as well, so coming to hong kong gives us an opportunity to achieve that goal. >> some chinese companies listed in the u.s. are hedging against any possible delisting from u.s. exchanges. now it seems like there is new found pressure from chinese regulators when it comes to data security, data privacy. how much do you think this didi probe will speed up chinese companies to come back home? brian: overall, the regulatory environment is becoming more and more focused on the softer side and the privacy side.

huawei claimed verizon was using its patented networking technology without a license.s the first of two trials scheduled this year involving alleged patent breaches. representatives from both companies said they were pleased with the settlement. the terms of the agreement are confidential. coming up, ibm has a plan to use artificial intelligence to spot and curb bias in online advertising. we will speak to the ibm senior vice president of worldwide ecosystems and blockchain's, bob lord, next. this is bloomberg. ♪ emily: sub cart has raised new funding. the company's main owner, walmart, joined investors including softbank in putting in an additional $3.6 billion. walmart bought a majority of flip cart three years ago and has been working toward an ipo for the business. ibm is looking to the future, exploring how artificial intelligence could improve online advertising. big blue researching how ai can spot and even cut bias in the process. joining us now is bob lord, ibm senior vice president of worldwide ecosystems and blockchain. there are issues around online adverti

shapiro, what do you think about huawei operating in the u.s.? gary: they are certainly a force around the world. there is no question some of things they have done to get to the position they are involved -- i find that difficult to swallow. i believe to a certain extent we encourage trade and lower tariffs, and companies doing business with each other keeps the world a safer place. i am passionate about resilience and self-sufficiency which sounds conflicting. companies can be more difficult for less good players than others, and when president trump created and expanded the list based on human rights issues, i think he took a bold step. president biden has not changed that yet. president trump never got credit for being bold that way, and it affected a number of things we were doing. we are happy to follow the law as long as there is a process and procedure and is transparent. it is a challenge. we lost revenue because of the huawei thing. we follow the law and represent american companies. that is who we are. that is where our families are an

champions of the chinese government and it really wanted to see huawei 5g network throughout the worldand the trump administration had to be warning of these allies of the 5g network because it provided huge security risks, the trump administration has proved this year of fellow allies especially in australia. the trump administration has been telling our allies about 5g, one of our allies was the united kingdom and under conservative administration boris johnson even last january said were going to use while we because they're cheap, the reason there cheap because they were backed by the federal government and i can tell you the beaten price was unreasonable no business could sustain that if there stated along businesses. so boris johnson said were going to use ally because they are cheap even after pompeo said using it will stop sharing because you don't feel comfortable and johnson said no mortgagor because it's cheap it is something we can afford. and guess what the pandemic happens in the chinese government increased on hong kong, was happening in hong kong is really tragic anyway

two of the more successful ones in china we haven't seen any crackdown on them, even throughout the huawei saga could anything be different now? how are you gauging that >> it is certainly an important question for both these companies. so china is about 20% of apple's revenues, in the last two quarters has been between 25 and 30% of tesla revenue so very, very significant contributor, but also as you noted, probably, arguably, the two most iconic brands, u.s. brands that are in china, and so if we do have trade tensions escalate, you know, could there be actions that are taken directly or indirectly by the state to dissuade consumers from buying these products or to provide less financial incentive, less financial incentive for tesla cars, greater promotion of chinese built evs, or, you know, similarly on the hand set side and i think it is very difficult to handicap that outcome we had trade tensions when president trump was first inaugurated with china, those largely dissipated we have them again and i think it is difficult to handicap that. that said, if you were to highlight, you know

we have a debate in this country about huawei. more | this country about huawei. to conduct cyber attacks? ~ , , ., j attacks? absolutely and they're seeinr attacks? absolutely and they're seeing how _ attacks? absolutely and they're seeing how valuable _ attacks? absolutely and they're seeing how valuable it - attacks? absolutely and they're seeing how valuable it can - attacks? absolutely and they're seeing how valuable it can be . attacks? absolutely and they're| seeing how valuable it can be an intelligence tool. private companies are springing up that are enabling smaller countries to get these tools. and whether they're going to use them responsibly is a major concern. espionage in 2021 is not cloak and dagger, not putting a mole in an organisation. it is getting access to somebody�*s smartphone because it knows things about us that maybe our closest friends don't know. is that maybe our closest friends don't know. , . , that maybe our closest friends don't know. , ., , ., ., . ,, that maybe our closest friends don't know. , .,, ., ., . ,, ., know. is it eas

but we are quite committed that huawei will be given good valuations by the market.ee the communications between the huawei team with the regulators and also potential regulators -- investors. we don't have any pressure on the timeline. we believe we can move quite fast. >> could volvo make apple's car? >> i think it is up to them. new-car development ideas. >> including apple's car. >> i mean the new model, smart cars with all the best features of connectivity, automated drive. shared mobility. we want to provide the best user experience. >> have you or any of the team at geely had conversations with apple? >> no. >> what you would welcome that conversation? >> -- but you would welcome that conversation? >> yes. for your information, we are open to partnerships with, you know, strategic industrial and internet leaders who form the strategic partnerships that you have seen. we have a partnership with baidu. we are very open to introduce this kind of partnership and business models with any potential strategic partner. >> tesla has faced a few headwinds. they have had

verizon claims that huawei is using its patented inventions.ded flat after an ipo. the vice president and chairman about that listing. >> having a listing ban close to home -- having a listing close to home has always been our strategy. we have wanted our customers to be shareholders as well. being in hong kong is a set opportunity. >> some are hedging against a delisting from u.s. exchanges. now, it seems like there is newfound pressure from chinese regulators when it comes to data security, data privacy. to what extent do you think that didi is only going to speed up more chinese companies to come home and list. >> overall, the regulatory environment is becoming more and more focused on the data side, the privacy side, national security side. those were not focused as much. it is something that we anticipate, because we see the global environment gets -- global regulatory environment gets tighter and tighter. data security is a big topic in europe. in the u.s., also people focused seriously on these issues. as a company that operates globally

white house officials -- wally officials have proposed -- wildly deals -- huawei -- huawei could set standards for the digital economy, including use of the rules and trade facilitation. prime minister boris johnson's decision to use coronavirus restrictions in england has led to growing fear and calls for action. the vaccine is expected to be a linchpin of the immunization vaccine. france has find google in a dispute over paying for news. french regulators say google ignored it is to negotiate with publishers in good faith. is this the largest and stress penalty ever. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. i'm ritika gupta. this is bloomberg. >> these are not double-digit dividend growers. jonathan: gerard cassidy their of rbc capital markets on the bank earnings this morning. alongside tom keene and lisa abramowicz, i'm jonathan ferro. here are the bank stocks this morning. your bank stocks look like this on goldman, on jp morgan, down 0.9 perc

these put in place after australia band china's huawei from -- banned china's huawei.rade minister also put out a tweet after that meeting. he did not mention china by name but he said there is a sharing of perspectives between the u.s. and australia. shery: products are still finding their way around china's trade barrier? paul: yes. amusingly, in fact. wine, one of those products i mentioned that china has imposed tariffs on more than 200% in some cases. however, interesting statistics out of hong kong which shares a border with china. australian wine exports to hong kong more than doubling to $137 million in the 12 month the end of june. last month, we were talking about something some of with australian lobster exports, increasing by 2000% during the same period. the implication here, obviously not that hong kong residents are eating a lot more australian lobster and australian wine, but rather, or into china. -- but rather, across the border into china. australian minus finding your markets and enlarging market to singapore, malaysia, taiwan, and south korea. what

china is our enemy and huawei as a tool of the enemy, they want to infiltrate our information and data and telephone systems and this guy is helping them. this is not just bad, not just ugly, it is a betrayal and i am tired of people collaborating with our enemies. this is terrible and we in a bipartisan manner stand up and say no, we don't take your calls, tony podesta, we don't take calls from anybody who supports our enemies and tries to lobby for them. >> that is and always about the money, billions of dollars being made on wall street investment portfolios, big mende action in china. a big piece in bloomberg, china continues to build up wealth courtesy of us ambassadors, us wall street giants. how does that play out as time goes on? >> the difference, it is been indicted by the american government for helping governments like iran to spy on its dissident citizens. 's entire ethical issue that tony podesta -- it is arguably should whether any american corporations could portion do business with china. i hope most of them ratchet it down. i would much prefer a world in which no amer

david the question is, huawei versus nokia >> i don't know.s. >> if you bought it right here. >> where's the iphone? iphone's not like, until around there. right? >> you know, out of it yeah last quarter, and wandering in the wilderness. >> a lot of telecom equipment. let's not forget it's not just handsets not handsets at all. i don't even know. >> it's systems. systems. >> right. >> david, i question whether this is the beginning of the -- well, maybe comes back trying to make. >> illcfo lucent. >> of lucent, when >> in the '90s. >> i don't remember. >> cfo, pfizer. >> really? >> yeah. >> emilio. fantastic guy. doesn't want that chasm. remember, it's coming? >> yeah. >> and don't bring that up wow. don't bring that up. so look -- >> telecom equipment not a bad lesson to learn, jim stick with a dominant company for a while and ericsson, nokia, and -- >> like the triceratops of the world. >> yeah. and then -- the chinese -- >> could this be the revenge because we shut down huawei? talk to marvell tech okay like, hey, couldn't do business with

erickson said -- ericsson send sweden has backed huawei.worried there is an effect on us and it will impact china. the market took that quite seriously. ericsson has had a strong run but today it was down nearly 10%. alix: we have some breaking news i want to share. the ecb is said to disagree on similar -- on stimulus guidance draft for july 22. it highlights the fact there is not consensus on the ecb board, which raises the stakes for the meeting that summer calling for next week, may live in some capacity as they rewrite the language when it comes to inflation. bloomberg's up with christine lagarde over the weekend and here is what she had to say. >> it will be an important meeting because we will communicate differently. what journalists are going to see is a slightly different presentation of our monetary policy decisions. i very much hope it will be clearer, simpler, crisper, to the point, and as little jargon as possible. two, there will be a forward guidance review because we have to align with the strategy review we just completed.

meanwhile, verizon claims huawei is using its patented inventions.of its hedge fund business. nomura will stop offering cash prime brokerage services in the u.s. and europe. they could take a 2 billion-dollar hit from the collapse of archegos capital management. taylor: unbelievable. let's take a look at these markets. we are red across the screen on every major index. the s&p has turned negative or get the banks are leaving that. you are now off by more than 3% in the last two days. the nasdaq isn't even a safe haven today. bonds, that is the safe haven. rate of change, 1.30%. guy: chris watling is going to join us, the ceo of longview economics. this is bloomberg. ♪ (announcer) back pain hurts, and it's frustrating. you can spend thousands on drugs, doctors, devices, and mattresses, and still not get relief. now there's aerotrainer by golo, the ergonomically correct exercise breakthrough that cradles your body so you can stretch and strengthen your core, relieve back pain, and tone your entire body. since i've been using the aerotrainer, my back pa

tony pedesta takes on a new gig lobbying for the chinese communist party's most important company, huaweihnology. hunter biden gearing up to sell millions of dollars in art work on his family name, all the while the media is mum on the double standards and the laws broken against political rivals. congressman devin nunes is here on the continued weaponizing of u.s. agencies. next week's test on china policy, deputy secretary of state wendy sherman headed to beijing as the biden administration drops charges on chinese spies abusing the u.s. visa process, even as they admit being tasked with taking u.s. secrets back the to china. wisconsin senator ron johnson on the u.s.-china policy with no teeth as new allegations emerge on hunter biden's laptop. then, 2022 midterm elections on the horizon, the head of hen peter teal's teal capital makes a play for a senate seat in arizona. blake masters is here on big tech's dominance and a his pledge to clean up illegal immigration. all that right here, right now, on sunday morning futures. ♪ maria: and first this morning, the battle over texas' new ele

companies that have huawei may be able to use open ram technologies as in a replacement -- as a replacementor that. margaret: -- 5g, whenever we need to do to speed that technology along. on the infrastructure of peace, you do not hear as much about 5g in the infrastructure side. a seems like they are more focused on deploying fiber -- it seems like they are more focused on deploying fiber. there is skepticism on their part that 5g could be a true replacement for in-home broadband. verizon has been talking about their 5g fixed wireless service. you do not hear a lot from the administration in terms of what technology funds. that they think fixed wireless is going to be an alternative to what fiber can offer. where talking about broadband and the digital divide. i'm hearing about wired connections and less about 5g. cat: i am watching how the pandemic -- and companies are talking about this. they were talking about the role the 5g could play in health care as we grapple with this new normal and the way the pandemic changed how we work and go to school. it could have an effect on how these co

huawei out and out over the last decade.wo executive in the state department, deputy state attorney, secretary of state, rather, pardon me, is traveling to beijing on wednesday of this week. that's wendy sherman. this is the same person that did the iran deal in the obama administration. she is traveling to beijing on wednesday to perhaps open up new discussions after the u.s. got schooled in alaska. this will be another test to see if the u.s. has any teeth in terms of chinese policy and pushing back on the bad behavior. finish i mean -- i mean, it's pretty extraordinary if you think back to the trump administration. the podesta group all but shut down, went away when it was revealed that to e december that worked with -- podesta worked with manafort on business in the ukraine, and suddenly how convenient, the biden administration up and running and now tony podesta is back in business and now working for huawei, the lead company that is creating this issue for america because of the ccp's spying and tracking. by the way, w

companies that have always might -- huawei. >> but it seems like there has been a shift, the trump administration was very focused on 5g, whatever we need to do to speed that technology along. i think with the biden administration, at least on the infrastructure, you don't hear as much about 5g in infrastructure side. it seems like they are more focused on cyber and having those wired connections in the home. i think there is skepticism on their part that 5g could be a true replacement for in-home broadband. verizon talked about doing their 5g fixed wireless service as a competitor to cable, you don't hear a lot from the administration in terms of what technology -- they really think fixed wireless is going to be a competitor to the what fiber can offer. what we are talking about broadband in the digital divide, i'm hearing more about wired connections and less about 5g. >> 30 seconds. >> i've been watching how the pandemic is in fact -- impacted the rollout of 5g. before they talked about the role 5g complaint health care, and the new normal and the way pandemic changed how we work and go to sch

i looked to get an update on huawei and these fractious relations between china and canada and the u.sancouver process is still in process in vancouver and now you have got this. jonathan: when these things play out publicly, more signs that there is a breakdown between the u.s. and china. tom: this is one discrete headline. nevertheless, frankly, it does fall over to what we do here. jonathan: that is a developing story. equity market lower on the s&p. a week of losses turns into a morning of losses. -32 on the s&p. yields are lower, too. the dollar is stronger. from new york, this is bloomberg. ♪ that money will enable many people to go out. >> we have a framework. we have a new framework that is unanimously approved by the governing council and we are going to look at, as we always do, every six weeks, we will look at the circumstances. what foreign guidance to revisit. we will look at the calibrations of all of the tools we are using to make sure it is aligned with the new strategy. given that the persistence we need to demonstrate to deliver on our commitment, for guidance -- forw

i had a look on the sunday, you cannot find the app on apple or huawei or xiami.egulators citing serious violations on didi's collection and use of personal information. they have ordered the company to rectify the problems, saying that didi needs to protect the personal data of its users. bear in mind, this action from china's regulators comes two days after they announced a cybersecurity review of didi's operations and a couple of days after that huge u.s. ipo, the second, by the way, second-largest by a chinese company in the u.s. ever, where they raised about $4.4 billion. curiously, people have pointed to the timing, coming just around the time that the communist party of china celebrated its 100th year anniversary. this is a significant hit didi by regulators in china. haidi: when i first saw this, i was, like, how are people getting around in china? but if you downloaded the app before this weekend, you are ok? tom: i was concerned. many of us are reliant on the service to get around the city. you cannot download the app on the app store, but if you downloa

we've started to remove huawei technologies, but now we need to think of the other places we connect to as well. an important step is to push on the need for secure communications technology. that's why i think the bill is invaluable and i'm glad you reintroduced it. thank you. >> this is a follow-up related to the pandemic. that obviously has accelerated the rise of the digital economy and with more individuals and businesses online, our country has got to make smart investments in the technologies that are reshaping the way we live. what steps do we need to take to make sure communications supply chain can meet the needs of the future when we think about any technologies like 5g and a.i.? and is there a role for government to play? and if so, what is it to make sure we lead technological advancements and stay ahead of countries like china? >> thanks again, senator. i'm sure there's a number of areas where we could use a good collective approach with the private sector and government. the first is in standards bodies. we all know that. the u.s. is doing better in standards than you

now an update on another story -- verizon and huawei have come to an agreement in the middle of a jury in texas. while wake claimed verizon was using his patented network technology without a license. it was the first of two trials involving alleged breaches. representatives from both companies said they were pleased with the settlement. the terms of the agreement are confidential. coming up, ibm has a plan to use artificial intelligence to spot and curb bias in online advertising. we will speak to bob lord, next. this is bloomberg. ♪ emily: sub cart has raised new funding -- the company's main owner, walmart, joined investors including softbank, putting an additional $3.6 billion. walmart has been working toward an ipo for the business. ibm is looking to the future, exploring how artificial intelligence could improve online advertising. big blue researching how they can spot and cut bias in the process. joining us now is bob lord, senior vice president of blockchain. there are issues around online advertising, targeting people on equitably and racism integrating into that process. how

huawei is looking to move its listing from the u.s. to hong kong because of those new rules.n it comes to the rules in the u.s., how quickly could this come to fruition? at one point does it start to make a difference? charles: executive orders in a way our directives. what biden did was very far-reaching, one of the most sweeping executive orders, with 72 different initiatives, directing a dozen federal agencies to look at the competitiveness of the u.s. economy across many sectors. it will take time for some of these changes to happen in terms of rulemaking, but in terms of actual activity, if you are a ceo thinking about any kind of acquisition or merger, you will already start to factor in what is being directed in this executive order before you make that decision. it could impact behavior relatively quickly. in terms of room making, it takes anywhere from three to six months or longer. i think it could dampen activity . kailey: when you look at regulatory risk in the financial sector, is this the greatest one, this focused on antitrust and competition, or is there somet

verizon and huawei technologies have agreed in the middle of a jury trial in texas to settle there patement lawsuit -- their patent infringement lawsuit. new york city's famously crowded commutes are thinning as the pandemic changes how many people work. fewer people are using their cars and mass transit to get to their offices which is causing concerns for the city's transit providers. before covid-19 struct, 20% of the city workforce or almost one million people came from the suburbs. that could lead to staff and service cuts. that is your latest business flash. alix: the last time i went on the train was a couple of weeks ago, the first time in a year and a half, and i got stuck for like 20 minutes at a station. but aside from that, it is hard to wonder if it is happening because people aren't coming in or they are just driving, and what that means for how people are working. guy: but you have a congestion charge know as well, and that will put people off, i presume. i have to say this morning, my commute, a train in from the suburbs every day, is starting to fill up. this morning,

including lifting sanctions on chinese officials and dropping the extradition request for huawei cfo they reiterated the red line such as stopping building beijing's confrontational anti-chinese blocks. this is after one of the main goals of the officials of wendy sherman was to create guardrails for china's competition with the u.s. >> eunice, a lot to unpack here. we want the latest on the chinese crackdown on the tech sector didi down 37% over the last week now china appears to turn an te attention to the education companies. >> reporter: the stocks took a beating because of several crackdowns that regulators have been employing that was announced on friday and also today. it focuses on private tutors and new rules so that a lot of these big private tutoring companies have to be not-for-profit. on the tech side, the internet regulators are pushing ahead with a six-month campaign to clean upp irregularities in the se sector the housing minister on friday said it will have a drive to clean up the overheating in the property sector in the next three years. today, the state media had

if you look at china's use of a number of companies, when it was huawei or z tech, they are operational before we take action. in this case, i think we need to move more swiftly and i hope the president takes the action that's necessary to shut this down. he needs to send a very clear and strong message to vladimir putin. putin has had many years of being able tinker with the diplomatic core in the united states and elsewhere by using any number of techniques. he needs to be shut down and i hope president trump, excuse me, i hope president biden does the right thing. >> it's okay, it's only been a couple months. >> i should know. >> happens to the best of us. let's talk about the january 6 select committee. we know some republicans will be on it. obviously liz cheney appointed to the select committee. mccarthy will come with suggestions as well to nancy pelosi. talk me through some of the names that you've been hearing of, of course, my colleague garrett haake suggesting that possibly elise stefanik could be dangled as a name that's going to come from mccarthy. one of the questions that

kong and shanghai >> makes me wonder how much the rules are changing we've seen so many companies, huaweile we don't share with the chinese government what you think we're sharing. we wouldn't do that. if the communist party is flexing this way with younger companies what's the message flexing in hong kong as well what's the message about how far they are willing to push, and just how serious they are going to be about making sure they have access to everything they want >> right right now it feels the ccp your allegiance to the government comes first beyond your global ambitions. last week we asked didi investor, the manage partner why he was bullish on didi and what made him confident that the company wouldn't see a crackdown. have a listen. >> 13 the million drivers depend on didi. there's no way that anything will cut down and cause social unrest 13 million people are depending on it. that's why i'm bullish on it >> back with us now, christian aka -- cadeo back on. are you more concerned >> look, the first thing i got to say is, i got to give a clap to the ccp government. they showed

sanctions have hurt huawei, another one of china's biggest companies, though not public, there was no retaliation against apple. >> well, i think it is in the u.s. and china's best interests on both sides to create a win-win. it slows both economies down if there is too much friction i think that chinese leaders are sending a message they're going to exert influence over their own companies, but also the american companies in china, and i think the major thing for an american company doing business in china is the reasonably level playing field. they'll never be perfectly flat. is it reasonable are you sure you got your intellectual property protection in place and is it worth the investment versus the unpredictability on the risk it is why as i said earlier, for the first time in my career, 40 some years of doing business in china, i'm moving my investments in china to the back burner. easier for a small investor to do that, but it is not a trend you want to see on a larger scale. >> a lot of people and companies doing that recalibration, i imagine. john chambers, thank you. >> thank

huawei sales suffer as well. could apple potentially be vulnerable here?> keep in mind that apple employees a tremendous amount of citizens indirectly in china through supply chain it's not like some of the other big tech where there's a lot of animosity between the governments. we also do note that apple is very much viewed as an esteemed, accomplished, desired product in china. it's not only fashion, but it also shows accomplishment and a sought-after item. simply put, end of the day, the apps work. they work seamlessly when doing a business call or a school or education or various things like that, you want your apps and your phone to work, and it does with apple that's why it's more expensive. >> and beijing -- hasn't stopped beijing, though from other companies that work very well and employ lots of folks >> you're absolutely correct on that, and keep in mind that apple is a consumer item and not an enterprise item when they start talking about enterprise, keeping up software or big hardware, the purchase is being made by the average consumer, it is a

are admitting but nevertheless, we see things like ericson crash this morning, when sweden outlawed huawei in their 5g networks. and didi was a shocker because they exited that after the company's ipo. so and this week with the state department, what was meaningful about that is that biden did it right, which is try and have vice minister level people meet each other the chinese responded by trying to get him to meet -- her to meet a five times -- five level lower person, and we refused that's the right thing to do that's what we didn't do during the trump days because they sent us the number four vice premier, and he sat with our president and made a press conference. that's a loss of face in china so i think we have people working on it. but xi's side is very difficult right now. and what they're doing essentially nationalizing the tech industry is a very dangerous thing. so this should be something that's only for a long-term thinker who is willing to ride it out for a while, but right now, these daily blasts we're getting from the government officials are something i don't want to be t

i mean, over the last year or so, and especially under the trump administration, placing huawei, oneina's most successful international companies, placing that company on the export blacklist has really hurt that company there was thinking at the time that beijing might punish apple, an american champion for that, but they haven't what has changed, what's different now that makes you think that china is actually going to show some action at this point in time >> i think we have seen proof from xi that he is willing to take a lot of hits economically for -- to pursue idealogical goals. we have seen that in the crackdown in hong kong that's very dangerous for china's access to foreign capital, yet it goes on and very resolutely because the chinese communist party has higher goals it wants to achieve. i think that is a warning sign we should take very seriously. >> but why apple specifically then why now? >> apple is the big target because that is the one enormous american tech company that is entirely dependent on china for its manufacturing and heavily dependent on it to be able to gr

the company is growing its overseas business rapidly and has been benefitting from huawei struggles andns against it >>> ford issuing a recall for nearly 775,000 explorer suvs the reason, an issue with the ball joint that can increase the risk of a crash. ford says it's aware of six allegations of injury related to this condition in north america. that recall covers explorers from the year 2013 through 2017. the company says owner notifications will begin next month and dealers will inspect those vehicles >>> and an old friend returns. microsoft bringing back clippy as an emoji. c clippy made his debut in windows. microsoft plans to updates their emojis later this year. >>> on wall street, the dow down 299. the s&p down 33. the nasdaq down 116. >>> i'm frank holland in for shepard smith. here's what's making news. >>> two cruise lines made it more expensive for passengers. >>> the return of tourism in paris. the eiffel tower officially open for business after months of being covid closed >>> and football's new moves to highlight social justice. >>> the nfl now planning to double down th

and the went down from 2fers to double digits because the swiss said we're not doing business with huaweisold any >> for jim, do you likekind are morgan still and if so, do you have a price target >> yeah, so the short answer is yes, i do. and i know this stock has been a vexing for some people off 8, 9% from the high. up 26 processors on the years. theyious reported earnings better than expected, second quarter in a row i expect that to continue. in terms of the price target, i see this in the low 20s, 22, 23 over the next 12 months. that's an excellent return especially with the dividend i would buykind are morgan here >> josh, jason in chicago i know you like crowd strike. what about checkpoint? i have a position should i buy more on weakness or hold tight >> so, checkpoint is really shockingly bad stock over the last five years. it's actually flat from 2018 with the cybersecurity spending growing globally by leaps and bounds you could have been virtually in any of the competitors and doubled or tripled the money crowd strike included. i'm not a fan. i know the company has become a pun