are the odds better qualcomm works this out and ends up looking like the qualcomm we've known today?'s going to be the qualcomm that we know today. i don't think there are going to be a ton of changes here has a percentage of revenue given their scale. they probably do spend too much on r&d this is an interesting approach with the president said the r&d spend is of national interest and we don't want somebody who is a cost cutter to come in and take this over it's new days here. >> with the qualcomm stock down 4% right now is this a buy, where do you stand >> this is about right for qualcomm maybe over the next 12 months it could move higher but they have challenges going alone if qualcomm has the tie up, broadcom could have put this on the right path towards real profitable growth but the same changes that have always existed continue to exist here with 5g at least a year and a half away. >> chris casso, when we look at 5g and the companies investors should be paying particular attention to as having a lot to gain from the rollout of the technology, at&t has said they're rolling it

how safe is qualcomm if there is no deal with apple >> um -- qualcomm is in a difficult position, they need to get it done. you know that. to the extent that you were going to have al vote to install new directors, it was not going to reflect well on qualcomm's management let's make no mistake on that. you know that. there was not a great deal of faith in that management team at least based on what i heard from shareholders and what they appear ready to do before cfius moved in here. broadcom was willing to argue they thought it was going to be. it was not a great reflection on shareholders' view management. maybe that's apart of it now, too. >> i think you are back into well, what is qualcomm really. david, when did broadcom become a stocking horse for china it seems very american and i look at hock tan, he's american. i look at the november meeting with the president, hock tan decides to get rid of the domicile over seas how the heck did this come to be broadcom is an american company for haven's sake what is this about broadcom being chinese? i don't know >> it is not chinese, it is

goes down on things that qualcomm does david, at what point should qualcomm wanted stock to go higherr is that not really a much of an issue at the moment >> qualcomm would say they have been negotiating and good faith to try to get what they believe would be a fair or full price of the company and as well the assurances they need on the antitrust front and the national security front if you want to call that as well. broadcom and american companies you would argument it is no longer an issue. if they become an american company, will they drop it s >> i don't know they operate in secrets. >> a couple of thoughts here the way broadcom release their words make you believe that they had no idea that it was even reviewed or a delaying tactic on the part of qualcomm because they believe they're going to lose the vote, meaning all six seats. >> that's what i was thinking. >> however, people on the other side submitted two written filings. one would expect that -- if you submitted two written files, you would know they were reviewing this transaction hard to know exactly who knew what and wh

qualcomm is the fifth largest.bined, the companies would have had the third-largest market share in the semi conductor industry. broadcom and china's potential influence over the u.s. chipmaker immediately raised national security concerns when the bid was announced last year. broadcom hoped its decision to move its headquarters to the u.s. would dispel those concerns. christoph: let's hit the market's the on this with jens korte. president trump is rushing in to protect market shares of a u.s. tech company. is that good news for u.s. tech stocks? jens: not necessarily. it might be understandable to a certain degree that you do not want to sell achy neck -- sell a key technology to asia. but on the other side a lot of u.s. corporations rely on foreign investments. we have seen a lot of investment from china in the past couple of years, so there is a certain question mark what this decision might mean for the broader technology sector. we did by the way see technology shares among the biggest losers here in the tues

cfo commenting on the blocked qualcomm deal. plus, if the broadcom/qualcomm deal falls through, intel is said to be considering a major acquisition. "mad money" with jim cramer's jim cramer spoke to the ceo of intel, and he will be here when we come back let's build a better let's create jobs,ing. build bridges, insure prosperity. as investment management professionals, let's measure up. cfa institute. >>> welcome back to "fast money. an earnings alert on broadcom. let's get to josh lip ton in san francisco for the details. >> the ceo began the call by talking about the company's fundamentals wire infrastructure, that could include chips for networking equipment. $1.88 billion. that was up about 10% year over year, down squent sequentially wi-fi and blue tooth, saying he would expect a larger than typical seasonal decline in q 2. there was a lot of tension about what broadcom would say about qualcomm the cfo had choice words for qualcomm listen >> indeed, i have to say, we are touched by the iss report issued last night that con

you have a company being acquired by qualcomm and qualcomm is in the process of a takeover of broadcomhain we have intel. with broadcom being involved with qualcomm, it muddies the water -- and one wonders if intel has a similar ambition of getting involved with broadcom makes it more difficult for not come to acquire qualcomm, and they are a big rival in the u.s. caroline: fascinating in terms of whether or not they can afford it. what your perspective on the cash they get to play with here. you talk about regulatory concerns, but intel has a big cash file here. >> absolutely. the question is -- the financial structure, one of the pieces -- the logic being the conglomerate been able to assemble the different pieces, and you want to have a large and complete plate across different industry verticals to play with. do you want to be the chip maker for almost everything? from a market cap perspective,.com is only 100 or so billion -- acquiring a smaller company and qualcomm, which is a little bit on the ropes. the question is what does intel what to do in terms of assembling its large con

a foreign-controlled qualcomm, i don't know the links between broadcom and qualcomm, but china could move to take it over and poof, the dominance we would seek in 5-g, technology developed here, would go away. it's a national security concern and an economic security concern. we democrats believe that the cfius-month-old should extend -- model should extend to economic security. whether it's robotics or a.i. or chips or like qualcomm, we ought to block it. china doesn't play fair. now lifetime president xi hopes to dominate the crown jewel of america's industries, the tech industries and others, where we dominate because we've been so good because we take in immigrants, mr. president, from around the world and they help develop these great things. we've got to be wary of china -- weary of china. president trump is more weary of china than the last five or six administrations, and i'm glad they are. i'm glad they are. it's almost too late, but it's not yet. it's no secret that president trump and i share similar feelings on the issue of trade, particularly when it concerns china. ofte

how is qualcomm's case looking?hareholder related to, is it the licensing segment, which was previously 1/3 of their revenue, 2/3 of their profitability, can they get it back on track? they have 34 lawsuits globally and we start to see decisions and key trial dates coming up, likely china and germany will be the first to weigh in and in the second half of this year. there is a suit in the united states that will begin trial in june. a decision is expected in december. we will see this dispute with apple take shape. resolving that feud and getting qtl back on track. we will have an idea where it is going by the second half of this year. it will take a lot of time. emily: matt larson, thank you so much. and tony balloon, thank you both for joining us. yahoo! could be on the hook for punitive damages over a 2013 hack that exposed all 3 billion of its users. a u.s. district judge ruled that victims of the data breach can seek damages because yahoo! executives did not do enough to protect consumers given what , they knew

tells in the qualcomm pattern. but there has been no tells that the intel blanket might be coming >> blood come will be fine, you said how about qualcomm. >> they finally get their nxp deal done, which they wanted to do >> yeah. >> i don't know. i think there is probably a couple big mega mergers to be done depending how it shake out. i think mike's point is good about broadcom it's trading in low teens on a p/e basis. so has intel some of the deals they have been making over the last few years they are much more expensive mobile app that sort of thing. they are hoping at some point in they are well positioned in auto on the mouse movement and self driving and that sort of thing, they are hoping that because of their exposure to some of the emerging technologies -- to me, i think some of these stocks are best bets because of technology, because of innovation and because of how they are aligning them testifies of selves for the next ten years of computing. >> the nasdaq hitting a fresh all-time high on the back of a

gut research and development at qualcomm.n the semiconductor industry are based on the premise alone. trouble,ers will be in one is a bermuda-based insurer. alix: you have a bi-rating, cody. will this be rethought if they can't wind up relying on mna? cody: you do. a venture capitalist at heart relies on mna to drive that bottom line. problem is he has to be that much more careful because he cannot afford to fail twice. if you were to go after something of size, and there are not many left of that similar was blocked a second time, there might be a change of leadership. david: what is left? >> not many. if you look at texas instruments, or even nvidia. that, you get down into the 10 and $20 million, which is not small by any mna, but it does not move the needle like a qualcomm would do for broadcom. you have to tick the box. these companies are not being ball run, part of the structural challenge for qualcomm. a lot of these smaller analog names are being very well-run. qualcomm, theyo have to wind up proving that they can be

overall, we give qualcomm the edge in this dispute. matt thank you so much, matt,, qualcomm.g -- on thisetween deal that did not happen. we will be talking about the latest news on the tariffs and u.s.-china relations. ♪ betty: we are getting economic data from japan for the month of january. recovery ing a machinery orders, more capital spending among japanese companies, up 8.2%. expectations was a rise of 5.2% month on month. year on year, machinery orders up 2.9%. a swing from a decline in prior months. expectations were from a recovery. these japanese companies continue to spend their capital. that is resulting in robust machinery numbers. that they recovery for the month of january. i know you have breaking news on the boj. yvonne: positive data, we are members, cpiboj gold is maintained under the january policy board meeting, appropriate to pursue powerful easing, according to most japanese numbers. inflation expectations are not firmly anchored. perhaps more dovish members talking about that. we will continue to watch this. it does not seem like a big change behind the

of intel blanket. >> you said broadcom would be fine no matter what, what about qualcomm >> qualcomm gets their deal done, which they wanted to do. you know, so, you know, i don't know i think there's probably a couple big mega mergers to be done depending on how this thing shakes out it's such a cheap stock. trading in low teens, just on a pe basis so has intel some of the deals that they have been making over the last few years they're much more expensive. they're hoping at some point if they're well positioned anda tonmous driving that they'll see the appreciation that nividia has because their exposure to some of the meurging technologies to me, i think these stocks are some of the best bets because evaluation and how they're aligning themselves for the next ten years of computing. >> let's stick with technology the nasdaq hitting a fresh all-time high on the back of a big tech surge check out the surge in the past month. up more than 10% in the best performing sector this year. look at the bank stocks, in particular facebook and google still higher in the year and way behind two

to buy qualcomm?t mass backing? dan: the interesting --brooke: the interesting part is that it came down to different views of the semi conductor industry and how that should be run. the founders and management had a different view than broadcom. innovationlieves in and investing, relying on the quality of your product to sustain growth. broadcom says the massive growth in the semi conductor industry is over so you should run your company for profit. it is a different worldview. the chairman taking this private is protecting the view. lisa: the chairman of this company is taking the view that we are nearing -- where is he coming in on this? that we will see more potential for our coming to a plateau? brooke: he is realizing there is a tension in the way that qualcomm believes in this versus shareholders who want to see returns. they're more frustrated with qualcomm management and the handling of the licensing withess and the spat apple. he says i don't want to deal with this, let's bring this in-house

we have our top story today, broadcom/qualcomm.ntel has been rumored as a value investor, would you be worried if intel were to step in and make a bid for one or both companies? >> both would be a bit much for me i will hold in i was thinking about this yesterday. what i think is intel is a good designer of chips but a better operator what most of these companies need is a steady hand on the finance, but also on how to do production at the very highest level. and i think that's really what intel could bring to these companies is discipline with respect to their processes >> i love it we're leaving the 5:00 a.m. show with a couple of picks, microsoft and intel kim, appreciate it see you soon >> thank you >>> a lot of big stories out there including the biggest technology takeover deal of all time scuttled by the president and the treasury department. thanks for joining us on i'lddexcnge. m brian sullivan, see you tomorrow "squawk box" starts right now. you know what's awesome? gig-speed internet. you know what's not awesome? when on

qualcomm also down. they still have a lot to figure out.an: this is by no means a victory parade -- that competitor was disqualified and not convince shareholders to vote. going to that shareholders meeting that was canceled last minute, they were losing at it look like that board was going to be taken over i broadcom -- by broadcom. this is something that will have to address quickly. emily: what our next steps for qualcomm? they have to get that apple situation sorted out. they are in a massive legal dispute with one of their biggest customers -- that technology licensing revenue is of massive importance for them. high margins, and they need to get that back to get shareholders back on their side. emily: talk more of the broader markets and how they might react to this bigger idea that this administration is not going to be friendly to m&a. brooke: one big open question out there is qualcomm's acquisition waiting for regulatory signoff from china. there was some speculation whether china was purposely writing its feet as a retribution for

billion dollars bid to take over rival chipmaker qualcomm.ccam accuses a proposed deal of national security concerns, calling it a blatant and desperate move. qualcomm, which is based in singapore, could purchase the chipmaker, and brought him has delayed board meetings. back,ualcomm has fired accusing broadcom of deliberately seeking to mislead shareholders and the general public. i want to begin bloomberg intelligence porter matt larson, and also with us as brooke sutherland has been covering tech deals and industry. matt, this shareholder meeting was supposed to happen today, it did not. on tax the nuts and bolts here -- unpack the nuts and bolts. is thehat happens -- theye -- the lawyers will typically take 30 days to review these issues and figure out if there is a threat to national security or infrastructure interests from a foreign company investing in a u.s. company or company that does business in the u.s. emily: is this something they wouldn't have looked into? do the accusations from broadcom hold water? matt: typically what will

watch this space on what will happen next to qualcomm. timothy mcdonald.europe's biggest financial institutions has criticised the trump administration for its tariffs on steel and aluminium imports. the head of the european investment bank said the move would trigger a trade war with far—reaching consequences. we are observing this not only with the threat of a trade war but a demonstrative department —— departure from multilateral as is a threat to the economic world order and if that is at stake, it's not actually something that promotes cooperation and peace and prosperity around the world. david solomon has emerged as a favourite to become the new boss of godlman sacks. and we have this exclusive story. a leaked d raft have this exclusive story. a leaked draft of a united nations report. two singaporean companies have violated sanctions against north korea. this potentially raises questions about how common this is in the rest of the region. the final report that has been submitted is expected to be published later this week. a draft copy of the repor

broadcom had gone up the qualcomm -- had gone after qualcomm.looked like broadcom some progress. the trump administration jumped in and shut it down. they said it national security concerns. it is not clear where broadcom is going to go from here. tracy: i have this vague recollection trump was friends with the broadcom ceo. why did he decide to jump in on this takeover deal? peter: excited national security concerns. just they cited national security concerns. they laid out areas. broadcom has been rolling up the chip industry. they have been buying company after company. they cut costs there and they try to make things more efficient. in the case of all,, that raises concerns about u.s. leadership. qualcomm has been at the front of the building some of these technologies for many decades. in the case of the next generation, qualcomm was going to be one of the key companies developing those technologies. if qualcomm is not able to develop that with the broadcom, they just there is more influence that would come from technologies in china. they

when you said it, you said that you broadcom were allowed to acquire qualcomm, qualcomm could not compete in china. what you think your reasoning is behind this? >> the president was very clear and it was the right thing to do. he decided that broadcom posed a threat. the reason is you could look at broadcom's business model. they do this consistently. they buy a company, break it up and realize the shareholder value. that is great if you want shareholder value. it also meant someone would've been taken apart. this is not some theoretical concern because broadcom was talking about what it would do with qualcomm and many people were concerned because there was the view broadcom would sell off many of those patents, which is the core of qualcomm's business. we didn't have a second chance. it is either someone or while way, the chinese company which is nominally private but connected to the liberation army and the ministry of state security. so if qualcomm was not able to come eat despite what broadcom said because they are a serial offender in this regard, it was the end of this for the uni

blow and from deal maker to a deal breaker as donald trump blocks the takeover of us chip maker qualcomm national security really have been hampered by the one hundred and twenty billion dollar deal. business on crystal cole welcome at a european parliament debate on tuesday e.u. officials urged the u.k. government to speed up. with just one year to go until britain is set to exit the block prime minister theresa may has mainly been repeating the red lines that have been known for years official say and german main industry association is urging politicians in berlin to make their voices heard in brussels and avoid a hard break which could cost german businesses billions bricks it will change aspects of germany's export trade it will not be more complicated but also cost up to nine billion euros more year according to expect estimates the extra costs will be due to terrorists registration procedures and waiting times at borders and german industry representatives can still be reached between the e.u. and great britain. we're calling on both sides to reach an agreement and on british lead

they will feel this an disenchanted, even annoyed with qualcomm -- if you are qualcomm management, youathing a sigh of relief. you get to keep your job. six of them, the door was have open. the ceo was getting a low number of votes. vonnie: you are going to have to work harder and maybe implement some of the things that broadcom was going to do. it's now onr not, the management of the board to prove that they are good stewards of this company. they can take it forward and achieve these things. they said the broadcom merger was not a merger they wanted to do. they need to step up and do all those things they promised they could do. mark: does this mean of china has any sort of link to any company looking to take over a u.s. entity, no matter how tenuous, there's no chance? >> you find me a company these days that has any global hook that doesn't have chinese connections. this notion that broadcom is a chinese company is nonsense. it has a legal address in singapore for tax reasons. their management is almost entirely american. this concept of them being itehow a chinese acquirer, is jus

ed: qualcomm is heavy on innovation.been a stance in the fights, saying we are an innovator and qualcomm obviously saying they do a lot of innovation. there is some disagreement about how these combined companies with look. there was enough for them to look into it. i think this is an important new ones. -- i think this is an important once. it is unusual for unaccompanied to call the government in and say, we think there is a national security risk with the deal, so can you take a closer look? shery: before, there was a failed agreement. tell us how broadcom was on track to win the majority. ed: we wrote about this yesterday and we have more details today. like 53% of votes had been cast and broadcom was well on track. a lot of their nominees had the votes cast and they were looking at the high 60%, so close to 70%. the other, qualcomm was doing much less, trailing about one quarter of the votes in his favor. similarly, the chairman, again, about 27% of votes in favor. it was looking grim for qualcomm, so this is fortui

as well as qualcomm. and chinese banks are on the rise.set not enough to losses and shanghai as well, as well as the hong kong industry. that is by 0.2%. resource players are dropping the drop in oil. aluminum futures are on the move, falling 20%. taking a closer look at equity see adbank rising in hong kong, raising $15.8 billion in what could be china's against additional share sale. chipmakers are on the rise. technology and taipei among them, rising over 7%. also gainingy ground in taipei and that is the check on markets. i am sophie kamaruddin. emily: this is bloomberg technology and i'm emily chang. earlier in the show, we took a look at dropbox and spotify plans for the public debuts, dropbox going the traditional route. the streaming giant is planning new york stock exchange on april 2. for more, i want to bring in caroline hyde with an insider's take on the route to the ipo. caroline: it was the man who major they were in on the fu nding route back in 2008. it is wonderful to have you here in london. p.j.: thank you, carolyn. caro

look at the stock of intel, broadcom, qualcomm, except for qualcomm, they are all higher. it was good to be about rollback and regulation. everything was going to be easier for businesses. now we see the fact that for m&a, it is not the case. >> it is about balancing trumponomics. it seems to be if you want to find a way for this deal and the tariffs and this merger dovetail, it would be protecting american know-how and production. if we want to make this coherence, is all falls under the priority of protecting american production even over the regulation and making things easier for business. david: you have to feel a little sorry for the ceo of broadcom. in february, he said i am going to move my headquarters. by the way, a 40 year tax plan, and now look what happened. tohe is not the first person think he was the darling of the president and have that changed. u.s. to china is closing. the trump administration does not like what china has been doing, particularly in technology. shooting the first shot across the bow. the committee on foreign investment in the u.s., chin

it is redomiciled in the u.s they want to acquire qualcomm.ollowing issuance, they took a series of actions in vie lafgs the order, specifically broadcom on three separate occasions took action toward redomiciling in the u.s. without providing five business days notice to cfius as required in article 1.3. they go on to say as well, this perhaps even more important for those trying to understand the likelihood of broadcom's being able to get through the cfius investigation. to say since transmitting that letter on march 5th, that being the letter and order as well that we've been talking about, cfius conducted investigation of the transaction associated national security risk that investigation has confirmed the national security concerns that cfius identified to you and the expected close of that investigation very soon. what does all this mean? it does seem very likely that cfius at this point would be citing national security concerns as a reason for not allowing broadcom to continue its pursuit of qualcomm in terms of trying to take a major

a lot of news involving broadcom/qualcomm and perhaps intel.irst, some breaking news this morning involving the government continuing investigation of the national security concerns it is identified related to broadcom's potential purchase of qualco qualcomm in a copy of a letter that i have been able to review that was sent by the department of the treasury to both qualcomm and broadcom yesterday it would appear that cfius is not happy with broadcom. in fact, in the letter they say that broadcom has violated that interim order that was issued on march the 5th, by cfius of the national security concerns indicating it is taking full investigations of those potential concerns broadcom is set to take a series of action of the interim order specifically broadcom on at least three separate locations towards redomciliation anything done redomiciling in the u.s., they need to give cfius five days notice they did not do this potentially broadcom will be able to succeed and get six directors on qualcomm's board. since the interim order on march 5th, cfi

called peroration like qualcomm would be sold to an overseas corporation so really a long fight going on here if the deal would go through it would be the biggest. takeover in history but right now there seem to be some question marks and what we do see is that politics and also what's going on was the economy especially which corporations highly intertwined was this administration looks like qualcomm investors won't be cashing in their chips just yet gets caught up thanks for that. it's the world's biggest outbreak of listeria one hundred eighty people confirmed dead in south africa and the government there is pointing to produces but south africa's biggest consumer foods make a tiger brand says there's no direct link between their company and the deaths i spoke to our south africa correspondent allison gallagher asking her why tiger brands is being singled out. well they're saying there's no proof of a link and they have actually said that two weeks ago when they did their own checks that they did find no levels of this bacteria in this tarea but they say that they've been checking

i found it at odds apple the still using qualcomm chips, refusing to pay the license fee. it is a very unusual feud. >> it is i always point this out. it is not am, it's the suppliers who have the actual arrangements with the licensing agreements who have stopped paying. >> right we all know it's really about apple. >> everybody is suing everybody all over the world >> and all of these regulatory investigations as well sooner or later apple will pay for all of this. t stock is trading very very low everybody is standing on principal here really it's what will be a so called fair value >> it is interesting apple believes their software and design and their innovation makes their products worth that hutch more they are loathed to hand over a percentage to qualcomm they believe it makes markets available to everyone else everybody needs to pay they argue apple isn't paying anyway they cut some kind of deal who ends up buckling in the end when both have so much money >> well, they both do have a point. it ought to be somewhere in the middle it should come down somewhere in the

in the letter to qualcomm and broadcom, they touted the qualcomm investment and leadership in 5g.loneaid that qualcomm was there to protect national security. sheri: thank you so much. coming up, president trump fires secretary of state rex tillerson hours after he returned from a nearly weeklong trip to africa. we will have details next. this is bloomberg. ♪ vonnie: live from bloomberg world headquarters in new york, i'm vonnie quinn. sheri: this is bloomberg markets. we are seeing u.s. stocks gaining with the dow up 6/10 of 1% with cpi earlier this morning showing a little bit of inflation but just enough to not show a runaway price increase. the s&p 500 is also rebounding from yesterday's losses. reactionre knee-jerk from the secretary of state rex tillerson's departure from the state department. treasury yields dipped and the dollar dropped but that is now coming back and the 10 year yield is flat at the moment. let's get to first word news. president trump says he made the decision to oust secretary of state rex tillerson i himself. president says the two disagreed on iran an

matt: qualcomm has had a lot of trouble with their racing business.ting shutout of collecting patent royalties around the world, which is a big deal. broadcom has said that this model is broken. we should focus on the chip business and minimize patent trolling or collecting licensing dollars. we should seek to increase revenues by about is this model. it is looking attractive to qualcomm shareholders when you are being locked out of apple revenues and there is no end in sight to elect the and conflict -- complex legal battle. it is building on those shareholder concerns and fears, as a good tactic. emily: how long will the review to take? sutherland: sify is good come out and say that there are going to do it. we really don't know. the question is, what will broadcom do? it seems that they would be inclined to wait this out. if it is successful in getting lesson, itive its would be one less hurdle to get to the end zone. deal will makes that easier to get the shareholder vote. emily: what will the impact be at the shareholder meeting if it happens as

the two stocks today would be qualcomm in intel. agree or disagree?qualcomm was popping the champagne last night when the steel came out. it's going to be a never slight uphill battle on a standalone basis. cheryl: income up 1% and the free market. the champagne is out. appreciate it. lauren: coming up, new york city may be through the worst from their easter number three, but new england is likely to get slammed once again. >> and getting very tired of it as i imagine everybody else's. >> the last time with the winds that we are just hope we don't get crushed by snow. lauren: meteorologist janice dean has the storm tracker for you. then maybe we can get spring. cheryl: nat, it's not coming. never going to happen. ♪ today, innovation in the finger lakes is helping build the new new york. once home to the world's image center, new york state is now a leader in optics, photonics and imaging. fueled by strong university partnerships, providing the world's best talent. and supported with workforce development to create even more opportunities. all across

radcomr: if qualcomm and cannot happen, there is a twist that is happening in terms of qualcomm's demotedours the financial bank is reporting that the sky has been talking to several global investors, possibly including softbank, that he wants to go and buy the company his father founded area -- founded. the screen. qualcomm is up by as much as 60%. it then settled. investors optimistic on this after we saw a fall early this week when donald trump closed down the deal between broadcom and qualcomm. yvonne: thank you. breaking down those qualcomm and broadcom, the latest there. it is time for joe to go. the pbocnor has led for years. we will look at possible successors next. this is bloomberg. ♪ yvonne: 8:30 in singapore. these are the breaking numbers coming through when it comes to exports. betty: we have singapore news here. nonoil domestic exports falling 2.6%. expectation was for a slight recovery from the month before. these numbers affected by the lunar new year holiday. expectations were for these numbers to be a bit worse or a little more dampened than what was expected. this is a

the company said qualcomm was unique opportunity.ares plunged thursday trade after whistleblower claims they issued misleading e-commerce results and fired an executive who complained the company was breaking the law. under chief executive officer doug mcmillon, walmart has invested billions to catch up with amazon in e-commerce. i want to bring in matthew boyle. blowers this whistle claiming happened? >> this whistleblower's job was basically to grow this marketplace business. this is a business that amazon also runs, where third-party vendors will sell their goods and walmart will get a cut of the sales. this gentleman is claiming there are improprieties in the business growth at all costs , a mentality. internal controls were overlooked. and when he brought these issues to light, he was the first ignored and eventually fired. third party vendors got lower commissions, they did not process returns, they allowed offensive items to stay on the site. items like what? >> items like a tranny granny costume. you asked, there you go. a co

chip maker qualcomm by singapore based broadcom the u.s. treasury department which chairs the committee invoked national security concerns and told qualcomm in a letter to delay a shareholder meeting to consider the one hundred seventeen billion dollar bid that had been set for today until the committee can fully review the bid the committee sees qualcomm's five g. wireless technology as sensitive to national security and is increasingly concerned about keeping such as bent technologies out of the hands of chinese firms the decision to review the deal was in response to a petition from qualcomm to the committee after broadcom as hostile bid escalated to nominating six candidates for qualcomm's eleven board member the review means the deal is unlikely to proceed. the federal trade commission is challenging j.m. smucker company proposed their acquisition of west and cooking oil brand from food and egg giant con agra brands smucker already owns christgau brand the f.t.c. and the f.t.c. says in an official and administrative complaint that if s

they seemed to be establishing one of qualcomm. >> okay.e lost our early and initial gains, dow is up 100 or so, it is opening strong and softening up let's get to bob pisani. >> yes, some of the big industrials moved yesterday are not doing that much. look at the sector here, it is a secular play consumer staples are down and utilities are on the downside. amazon and netflix and apple are doing well we talked yet on "fast money" of netflix and what it has been doing. it is an amazing story they have surpassed some very big names in the s & p.net fl s netflix is $138 million. it blew past mcdonald's and nike and the next one is 3 m and is abo is -- elsewhere, europe we have been paying attention to them. the two groups, the autos and the banks, they have a tough time some of the big autos are down 5% or 6% or 7% the banks which have been weaker have turned around in the last two days beginning mid-morning yesterday. let's just review where we are in terms of what's moving the markets right now. we got, seven or eight or nine points in the s

the juiciest acid of this deal is said to be qualcomm's ultrafast five g. network technology which broadcom had signaled it wasn't interested in couldn't that give other rivals the upper hand. oh it it's certainly could but then again we have to look at the totality of that particular position and we know that that broadcom has a reputation of of acquiring companies cutting and selling and pasting them back together again for whatever it feels is going to best price and i do believe and i will say this is my opinion only i do believe that broadcom is position as it relates to not being interested in the five g. chip i think is disingenuous at the very least they're clearly interested in that and that's i would have to venture to say that that's the impetus behind you know their goals in acquiring qualcomm so and if they if they were to push back from that then we also know that this company here in place that would that would create a lot of leverage on on the side of the chinese for this particular technology michael violence of violence group internationa

president trump has blocked qualcomm -- the bid on qualcomm.adcomours after tried to ease washington's concerns. only five takeovers have been blocked on national security grounds since 1990. talk to bloomberg's economist who watches the tech sector closely. he joins us from taipei. the u.s. seems worried about giving up ground to china in tech. in your column you argue this is already starting to happen. what makes you think china is making grounds? >> one metric i have been looking at is patent stylings. there is an esoteric patent stylings can be done now because of patent treaties among many countries around the world including u.s. and china. these patent filings, the data shows china's companies have basically consistently outrank other companies, including qualcomm in the amount of filings, not just in the most recent year, but for the last few years. that shows they are being aggressive for pushing for the technology, pushing for patents to protect their technology. other companies, such as qualcomm, as well as european companies are fa

shares among the biggest losers here in the tuesday session if that's because of the qualcomm dear is hard to say but it's not necessarily good news for us tech companies and qualcomm wasn't really excited about the prospect of a takeover in general right well but be careful what you're wishing for yes to a certain degree members of quiet probably at least that's what speculated actually called for the u.s. government to step in and try to block this deal that said the biggest market for qualcomm is not the u.s. it's actually china they make about two thirds of their revenue in china and we have to wait and see what this decision all means if china will for example block certain dealings of qualcomm over in china so it's not necessarily. an easy and good deal for qualcomm and the stock actually sold off quite a bit last a good four percent in value on one side probably because the deal is off and those hundred seventeen billion dollars but on the other side also it is really the big question what will it mean for doing business in china in the future yes court in new york thank you. w

breaking news on the broadcom/ qualcomm takeover.ssued an order to block the takeover of qualcomm by broadcom, looking at the white house statement, saying it could take action in terms of a threat to national security, betty. we know that this is sort of a takeover$170 million offer anyway, and we had been expecting authority to act on this. betty: we had indeed. it looked like fortunes were turning again. the broadcom chief executive on this hostile takeover of qualcomm. he and a delegation meeting with the treasury department to convince not just members of congress, but members of the white house, that this deal does not threaten national security. it looks like those efforts were fruitless, according to this headline here about locking -- blocking qualcomm takeover of broadcom. haidi. haidi: definitely want to watch in terms of what the next step would be. of course, it probably continues to add to this narrative. we are watching that story. one of our top stories as we get into the asian trading session. let's get an up date in

. >> he told qualcomm to abandon their plans immediately. on the news, the stock dropped 4%. when the opening bell rang this morning, other tech stocks, particularly in the chip business, dropped on that news as well. in general though the markets are responding pretty favorably to some good numbers indicating a fairly mild look at inflation. so the numbers have maintained a bit of a gain for the dow. slipped a bit though in the last hour. the dow still up a little bit. 15 points. 25,194. the nasdaq and s&p 500 started the day up. they are both down. the nasdaq slipping almost half of a percent at this point. now, back to the deal, president trump says he blocked broad com's offer for qualcomm because the merger would jeopardize national security but he did not elaborate on

created a national champion in qualcomm? a company key in rolling out 5g the next generation of cellular services not just here in the u.s. but potentially around the wouldecalled and that is in competition with a chinese business that does business around the world but not here in the united states. >>> the tech sector could also be impacted into areport late today. according tut 's, the white house is looking to impose tariffs on $60 billion ofe chinimports targeting technology and the telecom ctors among, among others. >>> we have a lot to talk about now with daniel flax,e is talking about the semiconductor sector and what it will mean for the overall technology industry itself. he is a senior research anyst. good theee you. thank you for joining us. >> good to see you both. thanks bill. where to begin. first of all, just why have the hot?stocks been so what's going on these days that has people driving into them. >> whades ay, bill, and it's been going on for the past several years is that these semiconductor companies a

so that but the real fear is that qualcomm a not put in as much effort into r. and d. post. as it comes it to at a time when i she while ways rivals like ericsson and norco is grappling with weak telescope spending and so the thinking is that while we could really take a big lead in the industry it last a week r. and b. efforts and the ultimate fear is that while we could actually develop a product that is so needed by everyone will like that the u.s. has to unbend while we fund the country get out so while we're playing a role of thank you very much linda. now president donald trump's import tariffs are client unpopular with us trading partners around the world and that's hardly surprising but there is one corner of the us from where you hear nothing but praise for trump our correspondent alexander phenomenon hopped into a japanese rental car in washington and drove the three hundred fifty miles to the home of the u.s. steel industry the state of pennsylvania where people are cheering the import barriers as a way to make the american steel industry great again. well the ste

president trump but the combustion on qualcomm and this some good news for once.american that the firm -- the semi conductor firm week estimates. heading on over to the united states in two or three weeks time, breaking a cross the board here in terms of eps coming in at 505 and for revenue, it came in line with estimates, and there was even surprised investor dividend. dividend.hare let'sll that good news, go into the bloomberg terminal because i want to show you share price action. you think it would be up, but it is down 1.6% right now. the thinking here is possibly because of second-quarter guidance. off is a fraction of a bit from the $5 billion expected, but a lot of folks expected more. the question here is what is going to happen with ceo as he moves the company domicile to the u.s. hite housethe weis try to get the bid in for qualcomm, and on the earnings call in the past hour or so, the ball come cfo said qualcomm was a unique opportunity but sees potential candidates of other acquisitions. you have beenout, warned that you may be a target there. i want

that requires a lot of extra investment and really the companies involved qualcomm and broadcom and why a way from china are really the only credible investor in this it's a message really expensive operation to reach the lead in the next generation of mobile communications and the concern is that broadcom as an investor tends to sort of back off the investment and there's a concern that if they do their plate they take over qualcomm which is provides the chips in most of the phones most of the tablets that most of us use around the world. then it may be that the chinese firm way which has been the subject of continuing allegations from the us about national security questions they may leap ahead so in a sense this sort of jumbled together the sort of economic. security or the economic nationalism sorts of motives that you may have seen that many people say are really behind the steel and million tariffs with national security concerns and by no means directors by no means a slur on singapore as the existing. of the company it's more about whether they will pull back and allow. a way fr

hisrnment concerns and that bid for qualcomm threatens national security. >> it sounded like it went well, they were able to make their case to cifius. a to why they would not be threat to national security. i think they talked about investments to have ready-made in the u.s., and that they will continue to make. >> this company sent shockwaves through the technology industry yesterday -- donald trump sent shockwaves through the technology industry yesterday after issuing an executive order blocking broadcom from acquiring qualcomm. the presidential ruling saying impair the national security of "it turns to impair the national security of the united states." is this the end? >> there was no appeal process. once the president ways in and blocks the deal, that is generally it. >> the thing is, you find me a company these days that doesn't have any global foot print and doesn't have any chinese connections. this motion of broadcom is a chinese company, it is nonsense. they are not a chinese company. they are a company that has a

the reason is because the fear was if broadcom were to buy qualcomm, it would cut qualcomm's r&d spendingd benefit huawei and they would lead to huawei to get a leg up in the race to 5g. it gets technical here, but that is the next fast version of your cell phone and may have made a lot of progress. the fear was if broadcom could by qualcomm, it would help huawei and the trump administration stepped in. what we are seeing is a trade war. i think a lot of people are focused on those aluminum tariffs or whatever, but this thing that is happening on wireless i would argue is a much bigger deal than what is happening with manufacturing. jason: next, a senate candidate in west virginia. taylor: and bold plans for one of america's unused mines. jason: this is "bloomberg businessweek." ♪ ♪ jason: welcome back to "bloomberg businessweek." taylor: you can also find us online at businessweek.com. jason: and on our mobile app. a nursing home operator goes underground, so to speak. taylor: tom clark wants to save mining in minnesota. >> tom clark is not yet iron or minor. tom is 62 years old and has