huawei technology. what is the alternative? is there one? ericsson or nokia but that will take time and take longer. uawei you need to get rid of the legacy equipment from previous technology. it will mean a delay. delay is not that big an issue in my view because 5g is not so issue in my view because 5g is not so much about the consumer bit about enterprise. so part of the evolution to that means 5g in cooperation with the internet of things and artificial intelligence. but operators need to make the decision right now, they it takes time to rollout. we are talking about multi—year multibillion—dollar investments and operators need to decide now which fenders they can use. decide now which fenders they can use. you mention the impact the delay would have. if only 1% of hand sets sold last year where 5g compatible, we will have to replace everything before we can even make use of it. exactly. 1% is mostly because there is one major player, apple. when we get a 5g iphone you will see a spike. but a lot of other equipment will need to be replaced. but it is not so much about the consumer it is about th

have particular measures they can use to help manage the risk, whether it is from huawei equipment, or nokia or ericssonthey said to the government that the efforts to rip and replace, which is pending legislation coming up this year, that the amount of money that has been discussed as -- he is not nearly enough, and it is going to take a lot more time and likely put some out of business. when you talkrdy, about rip and replace, how much huawei equipment is being used in the states right now? andy: i am not sure i can give a number. we have 60 smaller suppliers, about 40 at tier three, the smallest carriers for internet and wireless service. rural40 of those are in america, underserved america, so it is smaller communities where schools and colleges and companies depend on our technology through these carriers to do business, but it is a relatively small amount of income. continuee committed to to support those rural customers if we are allowed to do that. >> and while we had a record record and huawei had a year last year when it comes to revenues? billion, up 18%. but it is important, that people are

they have particular measures they can use to help manage the risk whether it's from huawei equipment or nokia or ericsson and these discussions are helpful and they have said to the government that the efforts to do what they call rip and replace which is the pending legislation coming up soon this year that the amount of monies that have been discussed are not nearly enough in the timeframe it will take a lot more time and it's likely to put some of them out of business. >> host: anti- party, when you talk about rip and replace how much equipment is being used in the states right now? >> guest: i'm not sure i can give a number of the 60 smaller suppliers about 40 and this is two or three, smallest curious her internet and 40 of those are rural american are underserved america so it is the smaller communities where the schools and colleges and companies append on our technology and the service two of these carriers to do business but it's a relatively small amount of income but we are committed to helping to try to continue to sort those roll customers if we are allowed to do that. >> host: huawei had a

one is huawei, another is ericsson. ly on two for reasons of resilience. a third is a necessity and at the moment, it seems to be huawei. hopefully the market will respond to calls for more diversification so there will be a better choice in the future. senator, a.s. republican senator said last night the special relationship is just less special now. how do you respond to that? nicky: i don't agree with that. veryw there are strong feelings in the u.s. with relation to china, but there are many areas where we cooperate very fully and not in different ways with the u.s. that special relationship will remain, especially in london this morning. areas we many other will be cooperating. i hope we can cooperate in this area because with the u.s., we can get more suppliers into the market to help us so we don't have to make this choice in the future. matt: thanks so much for joining us this morning. we appreciate your time. nicky morgan is the u.k. secretary of state for digital culture, media, and sport. that is it for the eu

don't want to do business with huawei. >> not all of them are u.s >> i think the guns are trained on europe. let's see what happens but i do feel that nokia and ericssoniven up on. they are the only way we're going to be able to not stop huawei but have a competitive offering ericsson and nokia are not as good technologically and more expensive. david, you have some great too is in japan. japan is trying to work on a software package that makes it so you can have your towers do, software and be ahead of huawei. >>> we're get willing headlines from xinhua the chinese agency, they'll follow through on the deal to obtain tangible results, one of the first thorough read-throughs on that front from the chinese side obviously a lot more to be learned as we get closer to the signings >>> b of a better than expected quarterly results helped by a 25% jump in fic, goldman a revenue beat and the litigation charge shaved a bit off of their reported number of 469 we were looking for 547. we don't know whether the street was taking that into account >> $1.24 billion in regulatory proceedin proceedings, diluted eps by 316 in the release here and return on equity by

the company office to also foot the bill for the and and this is a cost that huawei has to bad that its competitors don't ericsson nakia they don't subject the same level of scrutiny and what qualities be. is that well everybody should be subject to the same level of scrutiny and this should become the industry stand it or i know say those points to richard is the u.s. concern over weiwei really just security or as perhaps simon is characterizing it it's been more than transparent it's invited even 3rd party regulation or supervision of what it's doing are perhaps commercial interests more at play for the us. you know i would i would say i would agree that they've been transparent and actually i went to our headquarters last month and they gave us a tour and beijing and they made that same point that they were happy to undergo any security view is and they just want everyone else to bear the same costs and so on it's but the challenge is i don't think you know there clearly that the trump ministration and previous generations are very concerned about u.s. economic competitiveness and try to push us companies i th

networkinge mobile infrastructure players like ericsson and nokia, this is actually quite good, because if you think about the 4g history, huaweiy been taking market share away from nokia and ericsson, and we also saw motorola, which was one of the original vendors. so byla disappeared, providing a cap on mobile infrastructure for huawei, this allows nokia to thrive. from bloombergo, intelligence, thank you so much for joining us. coming up on the next hour of daybreak asia, we will have a former director of the centers for disease control and prevention to discuss the latest on the deadly coronavirus. stay with us for more on that. this is bloomberg. ♪ >> from bloomberg's world headquarters in new york, i am shery ahn. you are watching "bloomberg markets: asia." our top stories this hour, the u.s. widens china's travel restrictions as the coronavirus proves hard to stem. hong kong suspends travel from the mainland with more than 100 people now confirmed dead. investors seem less worried. u.s. stocks climbed the most in october and the s&p 500 rebounds from its worst selloff in four months. tech shares leading the charge. apple

instead companies like ericsson, no caps and the chinese for huawei are rolling out five g mobile internet in many parts of asia and europe setting new standards along the way. five g is being developed. this would not matter if we lived in the world underpinned by globalization and free trade. but it does matter when we experience a technologically driven trade war a major feature of which is of china and as a result we are at risk of falling behind this is a change with five g to provide the speed what is needed by the self driving cars and robots and drones to transform our economy enable physicians to perform surgery on patients on the other side of the world using extended and tactile reality enabling them to feel what is going on. and as i recently saw during a demonstration at the wembley stadium in london five g will offer 560 degrees sports coverage in real time which will completely change the way we experience life sports the technological and geopolitical standoff with the speed and breadth and depth of innovation at worst it could reverse the globalization of products many of

huawei are they? they would argue they are not behind at all. —— and ericsson. ugh so it raises new questions and new problems will stop why is the us not investing in this itself? it is a long—running industrial strategy problem. the us has had companies in this industry, they have been merged, they have collapsed, nokia is an amalgam of some old us companies. there are some suggestions may be the us confronts a more in the future. just finally, if huawei was to be kept out, as america wants, that would have an economic impact that only perhaps delay progress by a few months or a year? yes, it is debatable, but it would be a surprise will stop it would be a surprise will stop it would cause the mobile operators to possibly have two ripped out a lot of the existing infrastructure. huawei is about a third of the current antenna estate you see around the country, thousands and thousands of masts, you might have to redo that, and it would delay the roll—out of 5g, which borisjohnson has said is very important by quite a long time, a year or more. thomas, thank you.

huawei's innovation in 5g? money. in 2018 the telecommunications giant spent over $15 billion on research and development, with chinese government backing. in comparison, nokia and ericssont spent one—third of that on their own r&d. the us has also woken up to the importance of providing an alternative to huawei. but in legislation proposed to congress this month, only $ibn was outlined for annual 5g investment. peanuts compared to huawei's annual spend. a short time ago i spoke to huawei's communications director, ed brewster. i asked him if the company was only ahead because of the support it had received from the chinese government. no, absolutely not. huawei is ahead because of the amount of money we have invested into research and development. in 2018, we invested over $15 billion into research and development and in 2019, that number will have been even higher. 0ur leadership comes from the commitment investment and innovation and development of new technology. that is what has given us leadership in mobile technologies. what we offer is the network equipment that telecoms operators use right across europe, as well as in the uk. you cannot shake off those national

ericsson. thank you very much indeed. ant bloxham giving us update on huawei. it is time for the bloomberg business flash. an auto supplier takeover today. agreed to buy delphi technologies for $3.3 billion, including debt. it is a 77% premium to delphi's closing price yesterday. is cutting 1500 jobs in a global restructuring. the company says it is responding to challenges in markets that include car parts and electronics. it's new operating model consolidate oversight. 3m mix everything from touchscreen displays to posted notes. tune in and about two hours for a conversation with ceo michael roman. airbus agreed to settle a long-running bribery investigation with the u.s., the u.k., and france in principle. the settlement could cost airbus about $3 billion. the corruption allegations reached high into the company's executive ranks. they were partly responsible for an exit us of top management. that is your latest bloomberg business flash. this is bloomberg. ♪ and they lived happily ever after. the end. the end might not be as happy as you think. after all, 4

ericsson and nokia. another question, can you provide and non—telecom engineers‘s description of the 5g structure to explain huaweisition? the main changes with 56 are on the outside of the network. this is what people think of the cell tower that they might see at the end of the straight. the core is the central processing pet of the network, where your billing is done, were called to richard from one person to another. because of that openness it is much more sensitive. the functions that happen within there, if somebody was able to control them, you could cause problems for all those people connected around the outside. the area where huawei is looking to be placed will be on that kind of edge, producing things like the antenna and the radio access points that you will then see on the buildings at the end of the road. by all the fuss about 5g ? tech the end of the road. by all the fuss about 5g? tech macro is being used in all the bt infinity cabs supplied broadband networks to people's homes? these are the green cabinet she see at the end of the roof. 0h, cabinets. huawei is everywhere. they are a huge telecom

to be able to build the best network and do it cheaply, and taking huawei out of that process would mean ,here's just nokia and ericsson increasing the cost and the time it takes for the rollout of those 5g networks. we now have a decision they won't be able to use the most core part of the network, but they will be able to use the antenna and radio access network, which is less vulnerable to attack. alix: thank you so much for breaking that news. so the wrap up here, huawei is given partial access to build the u.k.'s 5g network. ,ow i want to turn to earnings from industrials like 3m, united technologies. 3m is falling. it missed estimates and is going to restructure and cut jobs. united technologies is up slightly on an earnings beat. joining me is bloomberg opinion's brooke sutherland. what are your takeaways? brooke: i want to start with 3m. the company is taking a significant charge related to litigation involving those prefabs. for it is a very lowered bar for the company after a string of disappointments in 2019. its outlook for 2020 is not impressive, falling significantly short of what shareholders had been lo

huawei will be restricted to 35% market share. it's a sensible compromise because telecom carriers were worried reduce competition would lead to price gouging by nokia and ericsson residents can pick from three main suppliers. cauterize is the most sensitive parts of the network , and a law was introduced in china three years ago that compels companies to assist the state with espionage efforts. that is what motivated u.s. fears. this is a deal the u.s. should be able to get behind in private, if not in public. the commissioner of internal markets and services is expected to unveil similar guidelines on the decision in britain. coming up, more on apple's first-quarter earnings. the tech giant coming out with better guidance and revenue. ceo tim cook on the call touting exceptional demand for the iphone this quarter. this is bloomberg. wasur record performance fueled by iphone where december quarter revenue was up 8% year-over-year, and by our fifth consecutive quarter of double-digit growth outside of iphone, including a new all-time record for services and another blowout quarter for wearables. ♪ and they lived happily ever after. the end. the end might not be

the resolution would be a different way from huawei, what are the chances somebody is coming up and doing it? there are other companies who do that kate, ericssonwon't share as much intelligence with you. there is a element of bluffing that. when is the decision?” there is a element of bluffing that. when is the decision? i think the expectation is it will be within the next two weeks. but it has been delayed before and it is a difficult one. the longer it is delayed, the harder it gets. this stuff is being built. and they could be a chinese- us trade deal tomorrow. suddenly, may be some of the pressure will come the decision will be made in the next couple of weeks but we will see. using credit cards to gamble is to be banned to try to protect vunerable people. it's thought that around 800 thousand people currently use credit cards in bookies and on gambling sites. the change will come into force in april, and will affect all gambling apart from the national lottery. our personal finance correspondent simon gompertz reports. betting using a credit card on the high street — that's going to be banned, yes. welcome to the world's favourite online

huawei? they have been subsidised by the chinese government to $20 billion a year on research and development of this new technology 5g. the closest ericssonre 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 you share that optimism? gchq and the national cybersecurity centre have said they do not want any of this huawei kit anywhere near nuclear weapons si

ericsson and nokia. another question, can you provide a non—telecom engineers description of the sg non—telecom engineers description of the 5g system structure to explain huaweirk. the core is the central processing rid of the network. it is where your billing is done, call to rated from one person to another. because of that openness it is much more sensitive. the functions that happen within there, if somebody could control them, you could cause problems for all those people connected around the outside. the area where huawei are looking to be placed will be on that edge, producing things like the antenna and radio access points that you will see on the buildings at the end of your road. why all the fuss about sg? of your road. why all the fuss about 5g? tech of your road. why all the fuss about 5g ? tech macro of your road. why all the fuss about 5g? tech macro is being used in all of the new bt infinity cables providing broadband networks to peoples homes? these are the green cabinets that you see at the end of the road 0h, cabinets. huawei is everywhere. they are a huge telecoms provider. they are all over the world. it comes down to what the risk is. if