china had approved the deal, which is important to qualcomm.s it in jeopardy? >> it could be. this deal has been a political football between the united states and china for some time, at least that's what qualcomm believes, although there are legitimate reasons for antitrust authorities to look at the combination. it's a little bit ironic, too, because qualcomm has blamed the u.s.-china tensions for holding up the merger, but at the same time, qualcomm has also benefited from u.s.-china tensions because it's squashed this hostile takeover broadcom was trying to do for qualcomm. qualcomm has been on each side of this divide. ♪ >> football for the next couple of weeks. we are getting the first life pictures out of moscow. if you are a bloomberg user, go and do your bracket. and you can choose who will be the winning team. >> there are about 30 thousand functions on the bloomberg, and we always enjoy showing you are -- our favorites on bloomberg television. maybe they will become your favorite. here's another function you may well find useful, qu

,--- qualcomm-broadcom deal.re is consolidation we had in industrials and autos, they are particularly a fragmented market, unlike handsets or pcs, and i think there is a lot of room left for consolidation. an edge of a 5% stake at one point recently. anand: that is a great point, because elliott advisor's state tostate drove the price $127.50 per share, and potentially we thought solve that problem from our dutch tender perspective, but who knows. so two more fun month to report on this. thank you. anand: thank you. mark: coming up on the close, david stubbs, chief investment strategist at j.p. morgan private bank discusses where to invest. this is bloomberg. ♪ live from new york, i'm vonnie quinn. mark: and live from the headquarters in london, i'm mark here with the european close. an uncertain political future in italy and heightening trade tensions changing the investment outlook in europe. let's bring in david stubbs with j.p. morgan private bank in em ea. i would like your call on european equities. we pre

on mad tonight, keep qualcomm and cary on? don't miss my exclusive. canada goose, has it moved too much and you may know him from cnb the profit i am talking to marcus about a tough situation. stick with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer, #madtweets send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com. once there was an organism so small no one thought much of it at all. people said it just made a mess until exxonmobil scientists put it to the test. they thought someday it could become fuel and power our cars wouldn't that be cool? and that's why exxonmobil scientists think it's not small at all. energy lives here. - anncr: as you grow older, -your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-sell

that is what qualcomm believes. for antitrust authorities to look at that combination. it is ironic because qualcomm has blamed u.s. china tensions for holding up this merger. qualcomm is also benefiting from tensions because it squashed this hostile takeover. qualcomm has been on each side of this divide. david: is the chinese approval or two trade relations cte? there is a perception there is a quid pro quo. >> there is this perception the zte,crack down on cte -- that held up this for qualcomm. that is certainly the belief. as i mentioned there are legitimate reasons for authorities to take a look at this combination. we will see what happens. they are clearly reacting like this increased u.s. china tensions, or renewed u.s. china tensions on tariffs are going to jeopardize the deal. alix: good point. the stock is down 2%. qualcomm is up. i want to bring in phil orlando. have been crushing it. started already. if you take a step back, growth by techdriven valuations dramatically outperformed value stocks by 25 pe

china had approved the deal, which is important to qualcomm.ardy? >> it could be. this deal has been a political football between the united states and china for some time, at least that's what qualcomm believes, although there are legitimate reasons for antitrust hardee's to look at the combination. it's a little bit ironic, too, because qualcomm has blamed the u.s.-china tensions for holding up the merger, but at the same time, qualcomm has also benefited from u.s.-china tensions because it's squashed this hostile takeover broadcom was trying to do for qualcomm. qualcomm has been on each side of this divide. ♪ ♪ weeks, we next couple will be getting live pictures out of moscow. user, doe a bloomberg your bracket. you can choose who you think will be the winning team. >> there are about 30 thousand functions on the bloomberg, and we always enjoy showing you are favorite on bloomberg television. maybe they will become your favorite. here's another function you may well find useful, quic go. it will lead you to quick takes, where you can get imp

meanwhile, china has approved qualcomm's acquisition of an xp -- nxp.o the investment strategist at jpmorgan. his take on a big, big week or monetary policy. we have decisions from the fed, ecb, and the boj. gmm is your function. stocks are lower in the wake of tariffs on china.

they are supplied by qualcomm.lcomm has integrated our processing technology with modem technology and everything else they know how to put into a chip. they are the first class of the product. emily: you mention qualcomm. they have been caught in a string of issues. they are retreating from their attempts to get into the server business where intel is the incumbent. do you think any other chip company out there can step up and pay the big bucks necessary to make a go of it? simon: we will see what happens with qualcomm's chip comes out which is really good by the way. at the same time, there are other partners in the space. cavium has been in the space a long time. they just launched their second generation design. that is being shipped right now in hp servers. recently, there is a new company that have taken the technology that was developed by applied micro, they have a strong leadership team that built out the technical team, and we believe they will be successful in the space as well. emily: arm is part of sof

. >>> qualcomm bouncing on reports that chinese regulators have approved its deal to buy nxp. >>> the president sending disaster aid to hawaii as their volcano continues to erupt. >>> and mcdonald's choosing paper over plastic and drinks may never be the same. we'll explain on this friday, june 15th as "worldwide exchange" begins right now ♪ >>> let's start the day and end your work week good morning welcome from wherever in the world you may be watching. i'm brian sullivan so glad to have you with us as always those china tariffs kicking the futures in the shin. you can see the dow's implied open is down more than 100 points 111 points to the down side. the nasdaq and s&p a similar story. your key market themes today will include those tariffs and the impact on the big multinationals, but also let's find out if technology and the small cap stocks can continue to shrug it off and continue their big run. you may not be paying attention at home but the s&p small cap 600 is up nearly 1% ju1% just ts quarter. the ten-year yield at 2.91%, despite the hawkish fed earlier this week. japan on

qualcomm is also a provider of chips to zte.his hurdle seems to be on the back burner, but does not seem to be changing the direction of travel in terms of where trade tensions are going. it does not seem like it has assuaged president trump. it seems to be the chinese are prepared to work on reducing the deficit. that is a concern that stephen mnuchin has got. there appears to be something of the made inround china policy 2025. you have strong and aggressive voices in the trump administration who see that as a key challenge going forward. rishaad: thank you very much indeed. still to calm, apple's next act. the details on the technology giants latest foray into hollywood. why japan'sxt, central banker is falling further out of step with his global counterparts. this is bloomberg. ♪ this is bloomberg. ♪ withad: you are back bloomberg markets as we look at the ecb ending its bond buying program as the federal reserve moves to the more hawkish side of things and possibly to more interest rate hikes this year. we expect the boj to

both an xp and qualcomm stocks doing pretty well this morning.round is that early this morning, we heard the u.s. made a deal to let chinese telecom in a fracture his resume their purchases from american suppliers. back in april, they were blocked. they were said to have violated sanctions on north korea and iran. they thought then that the index nxp deal would get blocked. , as soon as we heard of the zte deal, china is likely to approve the nxp qualcomm deal soon. a bit of a quid pro quo seems to be happening. suppliers in the u.s. falling back today. of 18% of the revenue from nxp -- we have a graph that shows that. zte's rivals in device making are not doing so well. it seems like zte is back in business. vonnie: that is our stock of the hour. mark: time for the bloomberg business flash. biggesticial -- the farm chemicals maker in the world. they closed their acquisition of monsanto. integration will begin in bayeronths after the completes the sale of agricultural units. -- americanropean tech giant to get a large foothold in european soccer

semiconductor company qualcomm.eported china would approve the deal if it got assurances that the u.s. would lift a seven-year ban on homegrown telecoms giant zte. trump'sain opposed to decision to allow it back in business. the u.s. economy has become the world's bright spots as china and europe cool. it is likely to wrap up growth of at least 4% in the current quarter. maybe tell sales beat expectations on thursday. christine lagarde says steven mnuchin has criticized it. was clear that he regards our medium-term outlook as tomb toomates the -- as pessimistic. i hope he is right and we are wrong, because that would be good news for the u.s. and global economy as well. secretary of state mike pompeo says the u.s., china, agreekorea, and japan sanctions on north korea won't be lifted until kim jong-un's regime can show complete disarmament. it is a push back against pyongyang's penalties that it will soon start being relaxed. he met with china's president after breeding foreign minister is on the trump-kim summit. g

qualcomm acquiring nxp superconductors has been approved. tariffs on $50 billion of chinese goods. let's get straight to the bloomberg first word news in new york. taylor: it is president trump's move to change the rules of international trade. the president has approved tariffs on $50 billion of chinese goods. the products focus on technologies were china wants to become a leader. it is not clear whether tariffs will be imposed. retaliate withll its own tariffs. is preparing for a showdown with president trump on zte.-- on the president lifted sanctions. senators are on including sanctions and the defense spending bill. home prices rose in may by the most in months. that is even as the chinese government is pressing ahead for a two year campaign to end property speculation. chairmanump campaign paul manafort could go to jail as early as today. judge will decide whether he agrees with special counsel robert mueller's argument that paul manafort try to tamper with witnesses while under house arrest. accused ofrt is money laundering and acting

nxp, semi-, and qualcomm moving on the announcement.is separate from other issues. he said the chinese are well aware and there is a new marshall in town. david: you have to feel for wilbur ross. he says there are separate and the president himself tweeted this is part of a larger trade deal. the president said they are tied, but wilbur ross saying it is segment. alix: you have the initial move and then there is negotiation and consistently we talk about the alarmist words of the white house, but at some point they come back to have a real conversation where things can get done. david: when you try to price it, it is not just different directions on trade, but how it is connected to north korea because the president linked them. we want to turn to someone who understands these issues better than anyone. we have george friedman. thank you so much for being with us. we want to talk about shinzo abe and a summit. before that, let's talk about development.te this was thought to be a matter of national security and we seem to have backed off

. >>> reuters say qualcomm's $44 billion merger with nxp co seuctors has not been approved by chineseulators just yet. that r aort cameer bloomberg and a chinese publication said the deal was given the green light by china's ministry of commerce. shares were up a fraction. shares ofls qualcomm rose slightly to $59.86. >>> this week's market monitor is betting his three picks will continue to offer invesgrrs owth, income, and reasonable valuations. it's his first time with us as market. monit mike bailey, director of research. thanks for joining us tonigh >> thanks for having me. >> you want growth, income, and value. sounds llle you want it with these three. >> that's right. we're greedy. we want your cakend eat it, too. we think some of these oprtunities are out there. >> let's start first with your first pick, which would be the symbol rop, roper technology. and you say they have andge by going in and kind of remedying a problem that a existing company might have. >> that's right. this is -- roper is one of the more interesting industrial companies that nobody has ever heard of. the

by the way, you know, let's not forget qualcomm. >> let's not forget what >> qualcomm. >> qualcomm.now, i mean, okay you talked about it on your show and yesterday. >> i spent a lot of time. >> yes we all have over the last year. >> yeah. he's from baltimore. >> yeah. a nice man engineer. >> engineer. a lot of patents five patents. >> and certainly a tough road that he has already traveled are they going to get to the promise land >> i have asked him point-blank. don't forget the june 27 deposition of tim cook said the day before that, that would be the classic on the courtroom steps lawyers get together and he said anything could happen and then i said why don't you have breakfast with tim cook he said anything could happen. i said i see this line of questioning is definitive and getting me nowhere he said anything can happen. they are really playing it hardball. >> that's true. >> nxp, again, one of our favorites here i haven't looked i would assume it's down a bit on the potential senate action to try to -- >> right. >> to prevent the president's deal and commerce secretary's dea

i think the poster child for this is what happened with qualcomm. basically this law was invoked against qualcomm and there was an extraction of a very large sum of money but also some promises. technology transfer. it is always about technology transfer. what came out of the investigation was an understanding of, when china goes after our intellectual property, they force a transfer of it, they evade the export controls that we have in place, and they buy it. and when you're running a third of a trillion dollars deficit with china every year, they accumulate a lot of money to buy it. burdensome and intrusive testing. this is an interesting tool. so we have medical device or car or some kind of product that you want to sell into the chinese market. so what do the chinese say? well, we need to unpack this thing. what's in it? so then you -- they get to look behind the veil. it's like, well, we are doing it to make sure there's no health and safety problems but, again, it's a way of extracting information and technology. and it can be burdensome as we

if you're interested in qualcomm pay attention to jim's interview. you like media a big space.hat we are familiar with by the way. give us a media stock that you like and why. >> okay, so we think companies like cbs have very good long term prospects and sell under ten times earnings right now, a whole - >> there's a huge -- maybe there's a reason it's under ten times. they're in a massive fight. >> but both groups want the stock price to go higher we think something better is going to happen either the management is going to continue to manage -- with redstone as the ultimate owner. >> and the war between cbs, viacom and the redstone family, you you're willing to ride it out? >> yeah. they're one of the media companies that's not only a survivor but they're prospering in the environment they should be worth 14 or 15 times earnings when you have netflix selling at $150 billion and cbs is in the $20 billion area there's tremendous opportunity there. >> cisco, qualcomm, cbs, some real ideas from david katz we appreciate it. >> thanks a lot. >>> all right, time to get to the other

qualcomm, job cuts at a further 280 positions will be cut from the data center chip .nit the companyg back ambitions and the lucrative server market in order to paris inches and he promises made with shareholders. the reduction comes with a previously announced call of 1500 workers across the company. apple is taking it a hollywood one step further and right into feature films. the tech giant is nearing the deal with the rights to an animated movie as part of the at ofing -- upcoming slate offerings. of offerings. a cartoon studios behind the movie that has yet to be made and apple does not say how it >> mike pompeo says the u.s., china, south korea, and japan all agree that sanctions on north korea will previous material. not be lifted until kim jong-un's regime can show repeat -- complete disarmament. tom mackenzie has been recovering the visit to beijing. what was he hoping to achieve here? >> this was the first visit to china in his role of secretary of state. pompeo met with the foreign minister and the key focus for ensuring that china would continue to implement these sanction

>> i was looking at some names besides qualcomm and nxp. both of those stocks actually rallying. but other suppliers to zte, finisars, they finished down in the session. it gives you a sense maybe traders don't think zte will be able to come back even after this $1.4 billion fine and change in management in 30 days. that they will buy as many parts from the u.s. companies as they did in the past. melissa: thanks, guys. david: finding common ground on north korea. president trump hold as press conference with japanese prime minister shinzo abe ahead of next week's summit. fox business's edward lawrence live from the white house with latest on this edward? reporter: this was successful summit for president trump and japanese prime minister shin show abe. he got a commitment to talk about hostages taken in the '70s and '80s. how to deal with north korea and an agreement they will both work on trade issues. >> prime minister abe and i are also working to improve the trading relationship between the united states and japan, something we have to do. the united states seeks a bilateral

we give them qualcomm and they're back away. they'll misinterpret the president. >> we just came off a nuclear summit where we're relying heavily on china to make this work to keep a nuclear warhead from falling on that reporter's family, as he said. >> look, i think that there is a parallel track here. i think that the chinese president wants the chinese to do exactly what they're doing right now with north korea but the president also says, look, you're not changing the trade imbalance. you're not answering the call. you're not getting with the peter navarro crowd. you get with the program and then we'll thank you for qualcomm don't put out something against our country. i think they're playing two different games. >> earlier in his interview on fox, he was asked about the g7 and said "it ended well for the united states. the idea this is going to somehow turn into kisses and hugs in the near future seems fanciful. >> no. this is about trying to reverse years and years of trade policy where the president believes that everyone

qualcomm could be part of their investors.or a second straight month in the philippines. ♪ yvonne: i think patty is the right word today -- patchy is the right word today. we are pretty lackluster on what to look for in terms of direction when it comes to trade. at least we have this tech rally overnight and the msci inclusion of saudi arabia and argentina stocks, a boost for em throughout the session. haidi: lukewarm, getting a vote of confidence from the news of the saudi aramco ipo earlier than expected. the next big event, did we get a consensus agreement at the opec meeting in vienna? very much focusing on oil and energy markets. yvonne: let's get you caught up with the open. haslinda: it is a mixed -- sophie: it is a mixed start. the nikkei is down by .2%. what the bojok at governor had to say regarding the calls to boost wages 3% a year. the kospi is adding .1%. the rise we saw wednesday, investors digesting the latest export numbers. we saw the last 20 numbers of june, 4.8% fall in june. that is the chart. i want to lo

>> i am going to be talking to the ceo of qualcomm.id, the club, we owned it, actualownersplus.com and we sold it in the 20s i think you have to take some off the table. we don't know what is going to happen with china. kyle in kansas. >> caller: booyah from chief kingdom. want to talk to you about sierra wireless you liked it back in august and the ceo has recently retired what is your thoughts? >> wow, that has been killed shoot, i got to come back on that i did not know that sierra wireless had fallen that low and i don't know the interim ceo there is not a full time ceo i have got to come back. i'm sorry. i am shocked that thing has fallen as much as it has we will do homework. and go chief dan in california. >> caller: thanks for bring sanity in this crazy business. been holding ibm and they have had a large inflow my question is will this be enough to turn opinion. >> i am going to get right on the plank here i thought the last ibm quarter was good and not bad i know the stock has been hammered since then. i know that things have

qualcomm has asked the european union's general court to ask down an antitrust fine.alty was imposed overpayments made apple to make sure only qualcomm chips were used in iphones and ipads. the companies are doing that it's deal with apple did not -- will propose a 63 million dollar with monsanto. it is helping to fund its trnsferred -- its transformation into the biggest maker of agricultural chemicals. that is your latest bloomberg business flash. it is time now for the stock of the hour. company shares absolutelymeting, shares down the worst ever since the company went public in 1994. abigail, why abigail: it is a larger biopharmaceutical company. they are developing a pipeline of drug candidates for other companies goo explain this if we hop into the bloomberg and use the financial analysis. this is about 65% of the company's overall revenue in orange. of that, a big chunk of it goes to other companies. down here, it looks insignificant but it is a growing chunk. we have bayer and astrazeneca developing drugs. drug, a have a cancer -- their response rates in patie

then they sell apple they tell caterpillar, they sell qualcomm they're going to sell the various semis, broad com, intel. they sell united technology. 600,000 elevators a year they sell kimberly clark because they have a big diaper business. they sell gm and 4 million vehicles in china. then, yeah then we go and we buy wendy's. i mean, i know it's absurd but the money never leaves the casino it goes to another place and remember, the index funds do not sell so they just buy and they buy and they don't have any brains and, you know, it is all kind of by rogue and by tomorrow maybe if we get to s&p 2700, you can pick. because you're now got the worst case out there except we don't know whether china is going to retaliate by saying you're on the tarmac. we don't know if they'll say kfc, we found something in your food we don't know. >> no, we don't. there are other ways the chinese can respond other than trying to put more tariffs on what is a much smaller amount of u.s. goods they import than they export to us in that way, we have more room than they do but the question is, will they sta

telecom company and that is qualcomm.he company not only sells semiconductors to zt e, it is waiting on chinese approval to acquire a dutch telecom firm to compete even more aggressively. let's get more on this with su keenan. what are the details? su: it looks like it has the clearance and some analysts are saying perhaps it was a quick pro-quo. let's take a look at the stock charts. what you see is pretty much consistent with what an analyst beacon policy advisers are saying -- globalists are likely pushing a quid pro quo to gain approval for the qualcomm and xpi merger. it looks like that is on its way. gets 30%ttom, oclaro of the revenues of light zte -- supplying zte. a lot of the markets have access to those doing well. in theyou had swings markets, stocks. basically, the nasdaq ending lower after its record rise. perhaps the big rally was too fast.oo let's go into the tech decline. you had apple that was down. also, netflix. these were down in a big way. facebook falling to 2.5% at one point. let's take a look at s

i know steve malinkof, the qualcomm ceo is on with jim. >> telling steve he's happy with the zte deald adds that discussions with apple are continuing regarding their dispute, but that a call between him and tim cook will not be happening. we'll be looking for headlines out of that. >> cook is scheduled to be deposed on the ongoing litigation, of course, between apple and the apple suppliers who are not paying qualcomm its royalty fee fairly soon. if malinkof gets the deal done, he's under a pressure is that man right there with the gray hair more than he had not that long ago given the myriad of issues that he's dealt with as ceo. whether the dealings with the chinese originally and the penalties there and the hostile bid for broadcom and the inability to close the deal and the huge litigation involved with apple. >> and of course, they're a customer of zte, right >> they provide. >> they provide it -- their chipsets are in pretty much every phone in the world. >> i think it's striking that the u.s. will put a hand picked compliance team into a chinese state-backed company certainly

>> i think qualcomm will continue to do what it needs to do and the chinese government, obviously, is putting more scrutiny on this we see a lot more turbulence the next few months of government being involved we're an investor in footboard as well and we want to see the u.s. company doing a better job of expanding its chinese market and in this current environment that makes it harder to do that. >> josh lipton is at apple. >> reporter: mainland china is critical to apple's success. company doesn't give us hard numbers on that country in particular but estimates of about 15% of annual revenue apple, of course, has vast manufacturing operations in china. most iphones, remember, are assembled there and shipped around the world apple ceo tim cook has made china a real priority, making frequent visits, making big investments in companies like ride hailing giant didi. he has been talking to the trump administration, impressing upon them that trade wars will hurt the american economy the administration has told cook it wouldn't place tariffs on iphones. apple declined comment on that repor

. >>> the chinese government has yet to approve qualcomm's acquisiti acquisition, the deal has becomeangled in u.s./china trade tensions, and tariffs could affect the process and zte shares plunged as much as 10% after nomura cut its price target for the company shares fell more than 40% when they resumed trading on wednesday, the first day of trading after they were suspended back in april, that's when zte was sanctioned by the u.s. government. it has seen $4 billion wiped from its value in the last four days in may the president said he decided to save the company. a tangled web. >> lots of companies caught in the crosswinds >>> a host of business folk are in monaco at the moment for the ey world entrepreneur of the year awards. this year's theme is the collusion of industries and disrupters old and new are a major focus of the event tanya joins us from monaco it's a tough life but someone has to do it >> you're right. it's very tough to have to be here of course i would prefer to be with you and willem in the studio i bit the bullet, i came to monaco where ey's world entrepreneur w

keeping top secret the chip designs of global manufacturers like qualcomm.s lye for us in taipei. tim? tim: it is an historic day as we speak right now, the shareholders meeting is going on. that's the point at which they elect the new board of directors and morris chang will not be on that board. he is stepping down today. rishaad: what is chang's biggest legacy? we have talked about the returns to shareholders but ver all? tim: that alone is a pretty good legacy. 7,000% return since 1994. it comes down to one thing. founded this fabulous business model. back in the day, the saying was real men have -- that was from the former chief of a.m.d.. morris said we're going to be a pure foundry. we're going to do the manufacturing. you design it. we'll manufacture it. before he would go and get other companies to make it for you. intel did a bit of that work. so many other companies felt safe and comfortable basically going out designing basically cooking up a recipe and handing it over to tsmc to bake the cake so to speak since then companies like qualcomm have b

juliette: matt, qualcomm's acquisition of an xps said to have been approved by chinese regulators. clearance from china would remove the final hurdle for the purchase which has been pending for more than 18 months. the decision by regulators would allow the transition to be completed head of july's who said it by nxp would abandon the deal if it was not approved by then. its $85 completed billion acquisition of time warner. it is the culmination of a 20 month battle for the right into the media business by acquiring the owner of hbo and warner bros.. the completion came hours after at&t made a filing at a federal court in washington. waiting deal for closing. -- waiting to know for closing. qualcomm has desk phone it's purchase of brocade and may reduce headcount further. -- mainly related to cutting stuff. broadcom is one of the largest companies in the semiconductor industry by buying up rivals. hong kong see assets has but ubs's headquarters in the city of london four one billion pounds. it was sold by british land. abu dhabi sovereign wealth fund jumped out of talks to buy a st

china mobile and qualcomm are said to be in talks with cornerstone investors. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. yvonne: thank you. taking a closer look at the u.s. market close now. , helping push day trade concerns to the back burner. the nasdaq has a new record close, as facebook rallies above the $200 mark. su keenan joins us here in new york with more. like if you need a place to park amid trade fears, this is the place. reporter: seems like they are you less immune to the multinational stocks. 10 year yields edging higher. the broadest measure of the market, less exposure to international issues, at a record nasdaq record, telling the story for the bulls. let's go into the big movers. some interesting, sizable moves. walgreens jumping more than five times the normal averages. they have been added to the dow as general electric with a fall from grace comes out. facebook, above $200 for the first time in a while. indicates the privacy

clearly the president did when he said we should not do the qualcomm merger. we are all competing in an interconnected market. has had the home field advantage. we know that the chinese and everybody else will be trying to do the same thing. that is what happens in an open and competitive environment. the at&t time warner merger. i wonder what you think a win would mean for the media market and the marketplace for consumers. you put that together with the repeal of open internet. you look at what at&t is doing, they are moving into content. they are saying, we don't want to just have the transmission. the content that goes over the transmission. fox.ng about 21st century what the absence of the open internet rule is to make that even more attractive. it says to the party who controls the network, that delivers the content, normally in a monopoly situation, that they can discriminate in favor of their content. so i can understand why everybody is saying, let's go out and gobble up as much content as we can. judge'sorward to the decision as much as you do. the w

suppliers was a boom for qualcomm. it was up almost 4% in the day. about 30% of its revenue from cte, but there is a view by some , analysts particularly from beacon policy advisors, that globalists and the trump camp were pushing a deal for the qualcomm an merger in china. let's go to the big snapshot, and there you see bonds on the move. theeally was a down day for russell 2000, the broadest measure of the market. the nasdaq, hitting records five years ago. it has come off that a wild ride. let's take a look at some specific tech stocks. facebook down 1.5%. more, as muchbit as 2.5%. 2.5%ix fell as much as wednesday.h record we look at semiconductor and software companies, very large-sized gains. the lam story is where you have an analyst concerned about delayed product shipments. information tech index was up 14% this year, but the gap is narrowing. tech, falling a bit off its lead path. let's go to the bloomberg. gtd is where you can find these charts. the world of pain. up here, you have global stocks equity growth. there could be some speed bump

some of these companies, intel and qualcomm in particular, probably have technology that falls into thisna of strategic importance that cfius is going to look at. are we going to end up with china saying if you want access to our market we need you to do this and have a joint venture and cfius may say you that , you know this better than i do, but managing the differential between --i forge the number -- 1.5 billion chinese and 300 million otherwise very wealthy americe of the biggest stories of our day the idea that the u.s. per cap pita, u.s. gdp is a share of the world has come down from call it 25 to around 20, china has come up they're getting wealthier and can make that demand of companies. if we want to play over there -- by the way, jon, it's a way that ompanies more often do business, is by setting up shop over there, rather than exporting from the u.s.'s. if you look at u.s. foreign affiliate sales, there are many times what u.s. exports are because what a company typically does, it goes over there, more efficient to do that way maybe now with the tax regime, some of that is mo

qualcomm being hit. why?ou don't have as many products, american products going into china compared to the other way around. when they impose tariffs it will not hurt the economy as much. why not go after american companies already doing business, that buy some of the parts in china and i think that could be a future hit. trish: but in a way aren't those companies being hit as well, adam? >> i'm long qualcomm, and it hurts. xp i is another one. i'm actually still long these companies i do think this thing work out i'll tell you why. every time we see it. it versus tat there is wiggle room bit in for this thing. when u.s. initially came out with tariffs it, was scaled out to 40 items. chinese countered on only on 34, 560 items, not until july 6th there. is wiggle room. what we're realizing this is the first time we've seen the administration do all of this out in the open. always been behind closed doors. trish: which is the way, by the way, bob rubin said he kind of likes it that way, he also said to me, i wo

>> no, the only deal that everybody continues to focus is qualcomm's spending purchase of nxp and ztenough of an olive branch to allow the chinese anti-trust authorities to approve the deal it's pending it's a good sign on all sides if, in fact, it were allowed to happen hasn't yet but we keep a close eye on shares of nxp as that barometer. >> m & a lawyers will be busy off this they have to produce their case if ty want it to go through. >> yeah. that's true. it's a very specific part of the bar. lawyers. i dealt with them a lot on the qualcomm stuff >>> joining us this morning is fo treasury secretary larry summers. mr. secretary, good to talk to you, as always >> caller: great to be with you. >> if the choice were between caps on investment and enhanced review i have to imagine you prefer the latter >> caller: yes, although, you know, undescribed increases in review by stiff yus it's important to show restraint. for me the stuff is not about extraction and not international capital flows. opportunities for american workers and what is known is that our investment in the united stat

>> guest: clearly the president did when he said we shouldn't do the broad calm qualcomm decision ormerger. i think we are all competing in an interconnected party. the united states has the inter. we imprinted it here. we have been the cutting-edge of we need to do everything possible to maintain that advantage because we know what the chinese, everybody else will be trying to do the same thing and that is what happens in an open and competitive environment. >> host: a federal judge is expected to decide the fate of the at&t time warner $85 billion deal with the content assets with the video and broadband networks that at&t are to have. >> guest: i think you put that together with the repeal of opening internet we started talking about at the top of the show. and you look at what at&t is doing. they're moving into content. they are saying that this acquisition we don't have the transmission. we transmission. you look at comcast saying we want to get more content, talking about buying 21st century fox. what the absence of the open internet ruled does is to make that even more attract

qualcomm, for example. where is the market underpricing this? >> the market seems to be despite what we are saying, we are looking at 70% likelihood we are going to see the u.s. unleash tariffs against china in beijing retaliate against those tariffs as well. we are going to see some confrontation. once we have those rolled think about the negotiating table. the commerce secretary gift to china is a case in point. he came back empty handed. he looks to see if he could breathe new life into the trade deal and came back with nothing. that serves to show that any chance within the next trade relationship is likely low at this point. >> in particular we have heard again and again president trump talking of the trade deficit. this is a key issue for him. i am looking at a surplus for china. the blue line is a continued year-over-year. that seems to be the key issue. meredith: it is for president trump. balance, the notic is able to open markets for the industry and markets like china. the -- who is going to lead these sectors in industrial policy and

this is welcome news for qualcomm, the u.s.ip provider , and also china is overseeing a with nxp merger semiconductors, so we should expect that to move quickly. analysts expect zte to start trading in 2-3 weeks. a significant benefit for that chinese company and does move the trade conversation further. the oppositionto this agreement has faced in washington from congress, democrats and republicans both, chuck schumer on one side, and marco rubio saying or pointing out the irony that the trump administration is accusing europe and canada of violating national security and imposing sanctions while letting zte off. haidi: a fine balancing act there for president trump. we will be getting more rhetoric when it comes to the tariffs and thee, particularly with traditional u.s. alliances. you are seeing live pictures of quÉbec. japanese prime minister shinzo oabe arriving in quÉbec ahead of this g7, are we are calling it g six plus one. very much on the exterior of that, seeing the landing in canada of the g7 summit. more defensive

china mobile and qualcomm are said to invest in the ipo. that is the bloomberg business flash.hanks so much. crunch time for theresa may as she battles the key control of exit talks -- of brexit talks. clash could have far-reaching conferences -- far-reaching consequences. for more on the significance of today's vote, our brexit editor joins us. is almost make or break for how theresa may can negotiate, how far she can push the negotiating with the eu. the worst fear for the soft brexiters, but those who want brexit would quite like theresa may would have the negotiating tool. in the long-term, what this means today is that probably come january, if there is a deal, parliament could insert itself in the process. of course, they would have to ask the eu for an extension of article 15. it would not be a clean process. it would be pretty chaotic. but that is what they are trying to do. plotre-brexit camps see a campst -- the pro-brexit thwart brexit. ,s the rebels do prevail today and thereby the option of no deal is off the table and is increased,ower at the very least you will g

peter: cory bennett, we've seen through e.t.e., qualcomm cases, that the trump administration is very interested in this issue. but these -- the way you're writing about are not necessarily name brand, big companies we know about. cory: right. to be clear, these deals are being nixed at a record clip already. there is awareness of it. i believe by one count i saw at least six in a big tech merger or acquisitions have been nixed during the trump administration alone and that's not counting the steps obama took late in his administration. he actually canceled, there was a chinese investor that was trying to buy the u.s. subsidiary of a ceremonyan semiconductor manufacturer and he took the unprecedented step, essentially, of knicksing that. so, you know, this is something the government is aware of. but they're struggling just to cases th the top level we see in the papers. we're not even getting nah the thousands and thousands of small level investments going on around the country and have not fully addressed the question of to what degree we hould be watching these. peter: you have cro

dealsight approve more like the one with qualcomm. far in his trade discussions there have not been a lot of resolution about the impact of the forced licensing agreement. these are the things that had yet to be addressed. going back to the facebook, we are now seeing other chinese companies get into the fray as well. -- also through we have a lot further to go. emily: thank you selena. the federal communications commission approved a plan to free up high-frequency airwaves. the action sets rules on sharing an operating a 24 gigahertz band that will be auctioned to multiple carriers in november. we spoke earlier. >> the easiest way to think what 5g is that it takes you think about on a server or an operating system and puts it on the network. you are going to have a network out in the world wireless network that will allow you to do services you have never seen before to consumers. up, google is making its ai ethics clear. technology will not be used for harm. check us out on the radio, bloomberg.com, and serious xm. ♪ emily: google j

these local districts that are republican strongholds, their supply chains inflected -- impacted by qualcommthese are jobs. when i talk to the folks who work with zte, they say they have not been able to make the toe that they are trying suggest these supply chains that rely on zte will be significantly impacted. jinping directly asked president trump to do this. this is a sign of goodwill from their perspective in the negotiation bilaterally between u.s. and china. i cannot find one republican who can see what the ministration got back -- administration got back. the president believes the commerce department ultimately has the final say the matter what. members ofcally, congress boat with what will get them reelected. will this be an issue at all? >> i doubt it. the atmospherics around the trump administration are clearly top of mind for us journalists. when it gets down to local elections, it's usually economic and pocketbook issues that affect the quality of the candidates. that will carry the day in november. not the zte issue. david: thanks to kevin cirilli and marty schenker. the trum

. >> caller: booyah from america's finest city, san diego >> it certainly is and go qualcomm. >> callercalling about general dynamics >> private planes are bad and the world is turned off by anything ever since korea anything defense urge you to stick with it. but this group is in a -- market. >> caller: we have made a lot of money off your advice. so thank you very much my question today is first solar, a solar manufacture here in the u.s. along with in conjunction with sun power which installs and done maintenance on solar power, just bought out 8.3. which is a sales how do you feel that it is going to benefit. >> i would say that first solar is a company that has been downgraded and upgraded so many times, it is beyond the kin of this particular guy. cheap guy but way too much politics involved in that industry right now ge is a tragedy but a financial tragedy. i can't say we are at the bottom much more "mad money" ahead. more with ceo of william sonoma. i am telling you what to make of intuit versus h&r block and up to 50 million americans have food food allergies i am talking to on

order is one that requires them not to be able to take technology from american companies, from qualcomm and their other vendors. lou: when you say take technology, we know that the chinese are stealing somewhere around half a trillion dollars in u.s. intellectual property every single year and have been doing so for decades. not always at that level but certainly over the course of that time, trillions of dollars. how comfortable are you, how comfortable is the president that that is at an end with china? >> well, i don't know that we've solved all of the problems of china. but i do think that we have changed the behavior of zte. because in addition to everything else, we retain the ability to shut them down if our monitors find that they do anything wrong in the future. lou: let me ask you this, because you're the man responsible here for the president's initiative and executing his policy. there is a great deal about communist china that makes this country uncomfortable. one is the front companies with which they run an espionage operation, a global espionage operation, but in particu