it is a sea of red shenzhen down 7.4%, 120 points lower. shanghai down 5.6% that is a lot of losses in asian markets overnight. for a little bit more color let's get out to matt tailor who joins us fromsingapore. >> a lot of these markets are closing up for the trading session. this is what the monday blues look like in asia. you mentioned the big set of negativity shanghai closing down by 5.6%. hang seng down by about 2.9% even some stimulus measures that we got out a little bit earlier on, i see a triple arc from the small and medium banks not helping out sentiment as well. big markets still out and japan on holiday today singapore down by 3% big trade. that market down by 3% australia and new zealand are big trading partners seeing a fair bit of negativity new zealand down by 1% the kiwi and aussie dollars falling sharply as well. we do have an rba decision out tomorrow as well we could see an interest rate cut so that aussie dollar trading around the 69 u.s. cent level. >> matt, thanks for breaking it down for us. we did have the payrol

stocks tumbling in china as well with the shenzhen composite, effectively the chinese nasdaq down over 7% as president trump threatens to raise tariffs on current tariffs and implement new tariffs on $300 billion worth of chinese good in china they threaten to walk away from talks. much more on that all day long on cnbc. that is not the only news today. also potentially pressuring dow futures. boeing shares are down 3% in the free market. that's on reports that the aircraft maker did not tell u.s. regulators about a disabled safety alert on the 737 max for more than a year boeing in a statement saying that the alert was inadvertently made optional instead of standard but added it was not critical safety data as we know, boeing shares down nearly 3%. at 365 a share, if boeing moves down, that will pressure the dow which is a price weighted index. also happening this morning, the battle for anadarka petroleum just took another leg higher occidental petroleum raising the cash portion by 28%. that cash portion goes now to 78% from 50% the deal still valued at the same, $76 per share but th

just a few decades ago, shenzhen was a fishing village.n people, home to china's tech revolution and transformed by china's ability to push things through without consultation with its citizens or its companies. within the last year, every single taxi and bus in this enormous city has gone electric. this, just one result of china's ability to push things through. while the uk has been anguishing over hs2, thousands of miles of high—speed rail have been built linking shenzhen with other cities across the country. so it's clear the chinese are making massive strides in high—tech. we are being told that in ten years time we will regret letting huawei in, but conversely, in ten years time, might we regret not riding the wave with them? after all, i think it's fair to say that china's time has come. hello. ominous skies and a chilly feel for many of us at the start of this bank holiday weekend. there has been some sunshine, beautiful shot there from the north coast of northern ireland. but also some impressive shower clouds, that was eastbourne

had ana overnight, we major selloff, particularly in the tech focused shenzhen. occi upped its bid for anadarko and made the cash portion larger. now like it might go ahead, and this is sending chevron higher. apple one of the stocks among about 2%, down generally on trade tensions, but overthe eu may probe apple spotify's claims it is tampering with the playing field. guy: the u.k. is out. we have very means live volume. we have a new royal baby. that basically means the brexit story is off of the new cycle -- the news cycle. chinese equity markets dumped overnight. that fed into europe. the cac 40 trading down by 1.6%. the real hit has been in the auto sector, down by nearly 3% today. i don't think there is a single stock in positive territory. vonnie: president trump tweeting this morning on u.s./china trade, saying "the united states has been losing for many years on trade with china. we lose $500 billion. sorry. we are not going to be doing that anymore." we are joined by bloomberg's senior trade reporter from our d.c. bureau. bring us up to date on these tw

just a few decades ago, shenzhen was a fishing village.tation with its citizens or its companies. within the last year, every single taxi and bus in this enormous city has gone electric. this, just one result of china‘s ability to push things through. while the uk has been anguishing over hs2, thousands of miles of high—speed rail have been built linking shenzhen with other cities across the country. so it‘s clear the chinese are making massive strides in high—tech. we are being told that in ten years time we will regret letting huawei in, but conversely, in ten years time, might we regret not riding the wave with them? 00:25:03,943 --> 2147483051:49:16,687 after all, i think it‘s fair to say 2147483051:49:16,687 --> 4294966103:13:29,430 that china‘s time has come. good morning. pleasant enough where you got the sunshine on saturday. but certainly cold out of it. and particularly in the showers and strong winds which were across the eastern half of the uk. now there is good news today, in that the high pressure in the west is pushing a lit

the city of shenzhen is using these technology to nab jaywalkers for example but also count how many pieces of toilet paper you use what you could to a public toilet ok so this this issue of security and privacy is one of the big issues of our era isn't it but it's but it's ironic that sanford city the san francisco that's a city that's the global capital really for tech innovation should be the one putting the brakes on one of its own major innovations it's totally ironic i mean and and it could backfire i mean this could put the u.s. even further behind china which is the global leader in facial recognition technology if it's not able to you know experiment with this this type of stuff of course we're talking about experiments on our lives and following our lives but governments do want this sort of thing do need this sort of thing too to create a secure state and ones like the u.k. for example and other governments are already looking at the chinese technology are interested in buying it london for example is talking about using it at heathrow airport instead of possible it's usin

the shenzhen plunged more than 7% in europe, london's ftse is closed for the early may bank holiday elsewhere> and on this day when investors are worried, there is no better guest to join us we want to get back to becky quick in omaha who is with the oracle, the one and only warren buffet i should say thank you to warren i didn't get to say thank you to him before i left on saturday. becky, over to you >> andrew, thank you thank you very much. this was the 54th annual shareholder meeting for berkshire hathaway while shareholder meetings are known for being lightly stayed, downright boring, this was anything but 40,000 people were here. quicken loans founder dan gilbert and spanx founder sara blakely. for the first time apple ceo tim cook was in attendance apple is berkshire's largest equity holding we caught up with cook this weekend and asked him what he thought about it all. >> i think it's incredible i've never been to an annual meeting like this before i thought ours was lively but there's 40 plus,000 people here. and i love the fact that warren and charlie take every question and of cour

what they've done from a security standpoint from a military standpoint it's very dangerous from shenzhen with a clear report all the u.s. government has provided no evidence to show that highway is security threat. there's no gun no smoke only speculation. speculation that has landed huawei on the so-called entity list a list of companies that u.s. firms cannot trade with google has already announced that it wouldn't provide updates of its mark phone operating system android to huawei shares of some u.s. tech companies including chip makers have come under pressure. meanwhile the us chinese trade war is escalating beijing has announced it was thinking of limiting exports of rare earths to the u.s. endangering the tech sector they are chinese 3 are earth are a key resource used to make smartphones as well as computer and even military hardware. and now to some of the other global business stories making the news the u.s. treasury again found that neither china nor any other trading partner is actively manipulating the value of its currency u.s. presidents trump had repeatedly accused chin

shanghai and shenzhen up over 3%. this is what we have got. seeing agn exchanges little dollar weakness. looking at the renminbi. that will be one to watch closely as we head towards that tariff deadline. that is midday in hong kong and beijing. let's look at what has been going on with markets. what we have is this position where money has been gradually taken out of chinese stocks this week. these outflows coming through, and that average of 4.4 billion day throughillion a .hese trading links that means to connect with shanghai and shenzhen as well. foreigners getting out of china. they have been doing so largely for most of march. you saw the money was coming in earlier this year. that is the position right now. we'll we get a deal? there is a simple dinner being organized. that is perhaps where the last of talking does go on. we might get a deal, or will we? we will have to wait and see. let's get you to first word news. >> thank you. tested aair force has second unarmed icbm, but denies the launches have anything to do with renewed missil

more from our interview with huawei headquarters in shenzhen.acebook investors are looking to shake up the social media giant and with it, mark zuckerberg's voting power. but the proposal can't face without the support of the founder and ceo. one investor who has been tirelessly trying to push for changes, the ceo of northstar asset management which owns 12,000 shares. goodrich submitted a proposal for the fifth straight year suggesting they change their voting structure which gives zuckerberg absolute control despite owning a minority of shares. facebook has gotten itself into a lot of control over the past couple of years. we own as much as 50,000 shares over the time since the company went public. i think this is an opportunity for shareholders to weigh in and really for citizens to think about what privacy means, what kinds of good -- internet access we want, what information we think we are sharing. this is an opportunity to weigh in on the ethics around data gathering and dissemination. severalor the last years when we look at companies li

robin brantjoins me now from huawei's headquarters in shenzhen.bin, what exactly did they say? we heard from their chief legal officer. what they talked about is not a new legal effort against the us government, but an effort by huawei to essentially speed things up. it has launched this case in the texas courts because it believes the action the trump administration has taken against huawei to freeze it out of doing any business with the us government is unconstitutional. it believes it has been targeted specifically and illegally by president trump's government and so it wants the courts to speed up the process. it wants what's called a summary process. it wants what's called a summaryjudgement process. it wants what's called a summary judgement on a process. it wants what's called a summaryjudgement on a hearing and has been pushing for that. why is it doing that? it's fighting for its global appeal effort, it wants to get momentum back on its side. but secondly as well, the restrictions, i refer to that as the us government to cu re i refer to

yet they seem pretty confident of the legal challenge that they have announced here in shenzhen where the company is headquartered what they have given notice of is they're going to file what they call a motion for summary judgment what they want to do is to try to speed up the process in the united states courts that follows that decision by the trumpet ministration to enact legislation effectively that bans federal employees from using wire way of quitman so they want to get an early judgment on that today the company put up 2 key executives and i think they were trying to demonstrate that in spite of this massive assault they're currently under from the trumpet ministration that this is a company which is not going to crack under pressure and once more they denied that they company had any connections with the chinese government insisting they weren't in the pocket of beijing one of the officers said that you know there has been no smoke and no gun he said today the trumpet ministration is going off to while away tell comes tomorrow it could be another industry your company so this

picture of the shenzhen. look at this chart over here big drop in the last couple of sessions again, this is the shenzhen. i started off talking about this on the news that u.s. will be banning huawei from working with u.s. companies clearly this has effects on companies within china as well this index hasn't performed well in the last 24 hours a lot of volatility there and questions whether or not the intention is to get a deal over the finish line. looks as though the next timeline for investors could be at the sidelines for the g20 summit and that is not until june so we still got a lot of waiting time it doesn't appear as though investors are liking the fact we're waiting and the rhetoric keeps declining. but that is the picture for overall markets this week. a lot of focus still on the tariffs. >> well, we're talking about tariffs. tonight marks the deadline for the u.s. government to decide whether it will impose tariffs on the european auto sector. sources have told cnbc a decision will be delayed news

markets are in negative territory the index in shanghai fell by more than six percent the index in shenzhen fell by more than five percent so these are big big losses imagine if stock markets in the united states and britain have fallen by that amount and it's a reminder that these are very fragile markets indeed even actually in the best of times. so it's i suppose it remains an open question as to how china will react to this given the volume of trade that it that it has with the u.s. and the leverage that of its own that it can apply yeah i mean we have to remember of course that china exports far more to the united states than the other way around and remember in his tweet on sunday night from also warned that he was thinking about slapping tariffs on chinese products that so far have a meat subject to any judi's some three hundred twenty five billion dollars worth of chinese products if that were to happen it would mean that the united states was now applying tariffs to just about everything that china exported to the united states now i understand that there are a number of sticking p

the shenzhen company was developing its own offering system because it was expecting the band. the number two smartphone maker, huawei is also the largest telecom m manufacturerer, buildg alieiens of dollars of -- billis of chips every year. middle of thehe ongoing american and chinese trade war. the ban is likely to escalate tensions, and it comes as the company is struggling to roll out its 5g network. there are fears it could be used as a spying tool on beijing. genie: one of the key points of technologyare transactions. >> foreign companies are regularly compelled to partner with chinese firms to gain access to the chinese market. proprietary technology from the joint ventures is often taken for use insulin solely chinese ventures. beijing has sought support from brussels as it faces pressure washington to reform key economic practices like this chamber ofe european commerce called its outlook for china's regulatory environment "bleak." of our members reported a false technology transfer. that's twice as much as in 2016. it's not only hapappening. it's increaeasing. genie:

it may look like paris but this is huawei's brand—new campus in shenzhen, china, a huge site where employeese buildings, each of which is modelled on a different european city. fewjournalists have visited this disney world—like project, very much the brainchild of ren zhengfei, the company's founder. he's compared to the likes of stevejobs, growing his company from a small workshop into a tech giant now employing 180,000 people. huge spending on research means huawei claim they are now around 18 months ahead of any other 56 manufacturer, and that includes not just getting faster and faster data speeds but dealing with the problems that come from higher performance. so this is the sg wireless base station. the 56 power is around 1,000 watts. and how much bigger is that than a 4g base a station? a 4g base station is average power of 300 watts. so it's three times larger. so this uses three times as much power, so it gets hotter. yes, much hotter. it's a common problem in technology. as things get faster and they consume more power, they get hotter, and new cooling techniques need to be develop

if you military that comes with that there was a slice of goal thing history at the china open in shenzhen on friday kwan yang at just fourteen years six months and twelve days became the youngest player to make the cut at a european event outside the majors it's practice time for the student was cut short by midterm exams at school. and that's all the support we have even more coming up again later thanks peter of course you follow all of the stories we're covering on our website at al-jazeera dot com i'll be back with more news on the other side of the break they've been watching the news out with me as a whole robin thanks very much for your time and your company. we understand the differences. and the similarities of cultures across the world so no matter how you take it al-jazeera will bring in the news and current affairs that matter to you al-jazeera. just look at. all sorts. of ok but also awards at the top who is now interfering in libya who is now in fifty adding in this would i just look at the realities on the ground is it the iranian foreign minister mohammad javid zarif talks

when i visited their hq in shenzhen, they took me through another application of the technology theypeople, and especially children, who have gone missing. tencent claims its systems, which are used in a number of its core services, have helped find hundreds of people. on occasions, they have been missing for a number of years and techniques were developed to account for the changes in facial features over this time. i met up with ross liang, who, alongside introducing me to the tencent mascot, explained how the technique used for locating faces is a bit like shazamming a music track, converting faces to a stream of numbers to look for. translation: if you take a look at this, this is a thermal map of a human face. when you upload a picture that's an image of a human face, for it to be identifiable, it has to identify certain features of a human face. we work with public security to build a database. if anyone spots an elderly person, say, wandering the streets, you can take a photo and upload it and we can quickly identify the person on this database. people hope that facial recogni

james: they have a large campus in shenzhen.round the world and in nordic companies -- countries. the interview we did with them over the weekend to lace at their campus in shenzhen, -- placed at their campus at shenzhen, which looks like someplace in europe. they have created european towns in this campus near the border with hong kong. francine: the higher tariffs from the u.s. and china should kick in this week. are the two sides still talking? what we see a deal or are we further apart? james: there is no indication the two sides wach a deal anytthe new sanctions the u.s. announced on huawei will make that more difficult. donald trump said recently they were close to a deal and the u.s. is were not ready for a deal even though china wants one. they will not back down on what are their redlines for a deal with the u.s., so a deal looks further and further, and we will get new tariffs. it is just pushing any kind of resolution to this trade war further into the future. francine: thank you so much. george saravelos and wolfgang

robin brantjoins me now from huawei's headquarters in shenzhen. points in the press c0 nfe re nce what with the key points in the press conference earlier? we heard from two of the company's senior executives, including its chief legal officer and they explain not that this is a new legal effort to try to deal with the confrontation with the us, but it wants to speed up with the us, but it wants to speed up the process. it launched back in march in the courts in texas saying it believes the us government has illegally and specifically targeted huawei with restrictions that means it cannot do business with the us government and more recently restricting business with american firms such as google. it believes it has a strong case. it may want to avoid a trial, so it is pressuring the court to come forward with what is called a summaryjudgment. it has a hearing in september the 19th. that is a speedy way to try to get this process up and running. why is it doing it? huawei, it is at the forefront of a global pr campaign to try to wrest back momentum

prohibited from using oil where equipment so national security reasons for more on this live now to shenzhen and beijing correspondent adrian brown adrian what does all this mean. well peter one of the weapons that while away is using is the international media because it's rare really for chinese companies to talk to the foreign media in the way the war way has been doing poor you know for the past couple of months and on wednesday we were invited back again to our ways headquarters here in shane's in a century to hear an update on the legal moves that are now underway to try to scrap that legislation that was passed several months ago which essentially prevents federal employees in the united states from using huawei smartphones and while away equipment but the company has also been speaking out once more about being put on that trade blacklist in the united states which effectively locks war way out of the u.s. market and basically prevents it buying key components that it needs for its smartphones and other equipment it said that the united states has now set a very dangerous precedent a

rishaad: are you saying the shenzhen csi 300 is actually correlated to the stoxx index?can see the correlation throughout the year. if you look back in time, this is the highest it has been an four years, really the highest it has ever been, so it is something to keep an eye on. yvonne: i am going to give it to gregor today. congratulations. rishaad: remember, gigi b go is go> is where you go to browse the most recent charts. from the smallest democratic exercise known to man, we are looking at the biggest exercise in democracy with counting underway in india. yvonne: it looks like we are starting to see some initial trends, but bjp extending the lead to 100 seats. the early trent now for congress extending the lead to 32 seats. we are now seeing the bjp leading the way. these are the early trends based .n the postal ballots we are already seeing quite a big move when it comes to markets. we are seeing nifty futures spiked higher. rupee also higher. 20 more coming up. ♪ at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster.

they could be here or they could be in shanghai or shenzhen. happy that they are coming back. we will be very happy for whatever decisions they make. >> the news around alibaba's potential secondary listing comes as a trade war escalates between the u.s. and china. are you assessing your strategy in light of this? >> obviously this trade war is a global event. it is going to affect all of us in very deep ways, so nobody likes it. we are almost like watching on the sidelines, praying that this divorce will not take hold, and maybe there are ways to scale it back. we will have to see. >> what messages are you hearing from potential issuers when it comes to reviewing their ipo plans? charles: everyone is looking at this and asking the question, how does this impact me? it is not just about ipos, it is about the company, about investment, for somebody that wants to start a business, this is the time to do it. should i wait? the uncertainty that is created is costly to the entire economy. to political leaders need take the responsibility, quickly de

against washington to have bans on its business ruled unconstitutional it jim brown has more from shenzhen. few companies could withstand the assault but while ways no wonder part of its response has been to open its doors to the international media in corporate china but these are unusual and uncertain times for the country's biggest technology company now effectively locked out of the us market we believe these sets a dangerous precedent that they it's can it calm and our way tomorrow it could be your industry your company your consumers on wednesday the company announced it's pressing ahead with legal moves to try to scrap a recently passed law that prevents u.s. federal employees from using waterway technology the trumpet ministration says it could be used for spying because of accusations the firms in the pocket of china's government the u.s. government has provided no evidence to assure that our way is the kurti threat there's no gun no smoke. only speculation u.s. politicians he said were using the entire strength of the u.s. against one company while away had anticipated being plac

they could be here, or they can shenzhen, china has a new tech board. they arery happy coming back.will be happy for whatever decisions they make. >> they made the listing in hong kong. that comes as the trade war is escalating between the u.s. and china. are you assessing the strategy with this? >> this trade war is a global event. deepll affect us all in ways. nobody likes it, we're almost watching on the sidelines praying that this divorce is not to take hold, and maybe there are ways to scale it back. we will have to see. >> what messages are you giving potential issuers to their ipo plans here in hong kong? >> everybody is looking at this and asking the question what does this impact mean? it is not only about ipos, it's ,bout a company, investment even somebody to start a business. this is the time to do it. uncertainty of the this created. it is very costly to the entire economy. leaders need to take the responsibility, quickly define what you want. can probably, we agree. if you want to be, it is probably hard, but we can work something out. if you want something that you fu

he spoke to me exclusively at huawei's headquarters in shenzhen. likely the u.s.chnology. whether we have a government background, american auditors audited us. you can ask from them, right? this unfounded conclusion may not be right. we are leading the u.s. now. if we were lagging behind, trump would not need to make so many efforts to attack us. he attacks us because we are now more advanced than them. nationalt a moment of crisis the government came to you and said we need your help, we need your cyber skills, we need access to your network, because that is for the good of the country, for the good of the chinese people, how would you respond? ren: we absolutely would never extort any backdoors. we would never do that. we serve human beings. we do not serve intelligence services. why should we install backdoors? tom: what are the practical steps for denying a request like that in china? ren: we have never done that. a german newspaper released an article saying they could not find any backdoors in huawei's systems. in the u.k., huawei was under the world's stri

vonnie: the shenzhen composite index is probably to market in china most full of those tech stocks. it was a 7.4% drop for that index, a little smaller than the shanghai composite index, but nevertheless an important index. anadarko petroleum one of the companies hire today, up 3.6%. bid more cashto as opposed to stocks. we will see how it all plays out as soon as anadarko makes a decision. the $1s said it will pay billion breakup fee that chevron would take away. we'll see how that plays out. apple, this is the chip story down 2%. wewill have to wait until even have a negotiation this week, or if the chinese to send it come -- decide not to come. guy: bonds are higher, stocks are lower. that seems to be the story around the world today following the president's tweets on china. to discuss what happens next, let's bring in john. shorey --d this craig this trade story go south? maybe there's a few bumps along the way. reporter: yes, it always looks to me as though a lot of things ,ere being taken for granted and the degree of risk has been underpriced to a degree that didn't make sen

shenzhen,k at the down 1.8% in the asian session.go to the bloomberg and we see it is not necessarily new. at least in asia and em. this goes back to april. what we are looking at, in pink and blue, those are the asian and em markets. they started to turn down in april, ahead of the s&p 500. some of the other indexes are all-time -- putting up highs. em is down 9.5% over that time period. in the u.s. today, technology, let's look at the big losers. apple is down 17%, nearly in a bear market from the april peak. mike or soft is down sharply and , amazon -- microsoft is down sharply, and amazon. investors are now selling. speaking of selling, here's a big slide on the day. a risk assets being sold off, down three days in a row. investors are getting out of this less liquid commodity. that is weighing on the energy sector. we take a look at some of those movers. this is the worst sector for s&p 500 -- the s&p 500. the big energy names, a big decline for these cap stocks. investors are getting out of risk assets. vonnie: thank you. the s

for the year shen zen is globally the best performing index up 29% i had to look at these earlier shenzhene greek index is in the middle shanghai up 23%. investors trade some of the holdings as you mentioned, very good start to the year. very strong start to the year for u.s. equities, global equities, but the past couple of weeks, there has been a little bit of nervousness in these chinese markets. >> thank you very much for that update on that note, let's bring in donna kilmurray, from the investment strategy group from goldman sachs wealth it has been a roaring start to the year for equities. if i look at bonds, though, we're pricing in a rate cut in the u.s. our equities and bonds telling us different things? are they signaling something different? >> it's a good point if you look at the -- bonds are the defensive asset. if equities are roaring, you think, well, we're in a growth environment. if bonds, you think we're in a defense environment. one thing we haven't put in the mix here, and that's inflation that's what's driving. this is what gives us an equities idea of goldilocks, whic

he spoke exclusively with tom mackenzie in shenzhen. the u.s. manages its own companies. the u.s.s not the international police. they cannot manage the whole world. the rest of the world decide whether they should work with us based on their business interests and positions. if some companies don't want to work with us, it is like a hole in the airplane. we are working to fix it but airplane is still able to fly. have been using, half are from u.s. companies, and half we produce ourselves. if the u.s. imposes further restrictions on us, we will reduce our purchases from the u.s. and use more of our own chips. if american companies have permission from washington to sell to us, we will continue to buy from them. >> what exactly have you put in place in terms of contingencies? we might have contingency plans for the core of the airplane, the engine and fuel tank, but we may not have a plan for the wings. we need to review the situation all over again and fix those problems. interviewme back to after two or three years to see if we still exist. if we are gone in two or three years, p

restrictions on huawei may be part of an eventual trade telling, the kenzie from his headquarters in shenzhen u.s. has never purchased products from us. even if the u.s. wants to buy our products in the future, i may not sell to them. there's no need for negotiation. i will ignore trump, then with whom can he negotiate? if he calls me, i'm a not answer. he doesn't even have his -- he doesn't even have my number. i see his tweets and allow for -- laughable, they are self-contradictory. >> the list of software companies cutting off the lies are growing. all,, intel, panasonic, google. survivelong can huawei without those supplies of components and software? >> the u.s. manages its own companies. the u.s. is not the international police. they cannot manage the whole world. the rest of the world decides whether they should work with us taste on their own interest and positions. if some companies don't want to work with us, it's like a hole in the airplane. we are able to fix it, but it can still fly. using,ships we have in half for u.s. companies and half we produce ourselves. if the u.s. imposes

that is the most delinquent since the shenzhen exchange opened. jerrold nadler warns the u.s.iam barr in contempt of congress for not turning over robert mueller's unredacted report, after president trump exerted executive privilege. the full house will take up the contempt resolution. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am kailey leinz. this is bloomberg. tom: peter hooper with us from deutsche bank, and we are thrilled he is with us, all the news flow. we will carve out the time for an important book, "learning to with carl weber, ron williams. you know him from aetna, health care and government -- governance leadership. you can think of the jim croce song, south of chicago. ron williams joins us today. there is that tip point where things get better. you are striving on the south side of chicago. what was the tip point to advance in the business and education world? ron: for me, a starting point was recognizing i had to refrain who i was and what i -- reframe who i was an

what has happened in china in response to some of these new developments around the country the shenzhen closing down 3/4 of a percent. the shanghai the composite is down 2/5 of 1% look at what's happened to the dollar do you remember roll league joins us with details. how damaging could this be to huawei >> well, the short answer, willem, is very damaging if you look at huawei's smartphone business right now, more than 50% -- sorry, just under 15% of their smart phones happened in international markets. now in china it's fine because it uses a modified version of andro android. all of those services are blocked in china where they will see the biggest impact is in the international markets, places like europe, latin america where google services are available and are what consumers have come to expect from the markets. they're buying from huawei i think huawei has come out amid all of this trade tension between the u.s. and china that it does have some contingency plans. it's developed its own operating system where it could be rolled out. will consumers be willing to try it out if the

speculation is, eunice, about why the shanghai composite rose 3% overnight a nearly 4% jump for the shenzheng to put this very delicately the one lap to go sign to the markets for the -- you know what i mean we're fine over here auto even with the higher tariffs. there is a debate going on as to how exactly these tariffs are going to effect the economy. there's one group that believes that the tariffs are going to -- the tariffs on the -- the 25% tariffs on the $200 billion is going to have a really negative impact on the sector barclay's, for example, believes there's going to be a half percent cut on chinese gdp, but then there's a whole other camp that believes that there's going to be only a mild impact, and part of that is because the government, if they see the impact is going to start pumping more stimulus into basically everything, that there's going to be an easing of monetary policy and that the markets are going to see more money. that's one of the reasons that you're seeing investors thinking perhaps there's more money in stimulus to come >> there you go. eunice yoon, you saved m

if you look at the market reaction, 8% is a serious drop the problem of course is the shenzhen and inall the markets on the mainland are dominated by retail investors. there is very little institutional trading. there you sue the vulnerability with china they need more institutional invest ears who are not going to freak out when news like this breaks out >> it is smaller. >> a fifth of the size $7 trillion market cap in china. >> is our business comparing daily drops. >> if we baked in a decent resolution in our markets. china seems to be edging in that direction as well. >> fair to point out 95% of the brokage accounts are small retail investors institutional companies are in the market ever day that provides a ballast for our kind of rkt market i think it is important to point out the difference of the kind of buyer over there, holder of stocks over there. it is different. >> 13 ipos this week. >> the big nest a long time. of course you have uber, which is the biggest ipo, arguably, certainly, since alibaba and the largest u.s. based ipo since facebook way back in 2012. not only is

i's founder and chief executive set down with tom mackenzie in a shenzhen -- in s henzhen. , theresalans to quit as tory leader. we are all over the story with on-the-ground reporting. you can see pictures of downing street them every time the door opens, rupert takes a breath -- downing street. every time the door opens, rupert takes a breath. this is bloomberg. ♪ francine: this is "bloomberg: surveillance." economics, finance, and politics. we are looking at pictures of downing street as theresa may plans to quit as tory leader. we understand an election to choose her replacement begins june 10. party bosses hope to have a leader in place by the end of july. the result will shape the direction of brexit. all options now seem to be back on the table, we are trying to figure out exactly what that means. let's focus on bonds. disappointing economic data helps drive the 10 year down to its lowest level since 2017. still with us is rupert harrison from blackrock. when you look at the 10 year -0.1, what does this tell us about what is distorted out there in fixed income? rupert: it tells

shenzhen down even more. so relatively speaking to that even the open was better here. certainly the close looking like it's going to be a lot better. >> let's get to our reporters following all the market action. bob pisani has the biggest movers on the nyse kate rogers is uptown at the nasdaq for us. kayla tauschi as mentioned in washington with the latest on trading. kayla, we'll kick it off with you and what wuf learned >> we've just reported in the last hour, sara that it does appear the chinese are committed to coming to washington for trade talks this week according two sources who have been briefed on the status of these talks and where things stand at this very moment in time there are a few key pieces of information we are still seeking. the first is the size of this delegation the chinese had been prepared to bring up to 100 officials with them this week to washington one source says that we should expect a smaller delegation because of the tensions that have erupted between these two countries in the last week and also whether this delegation will in fact be

huawei thing, all they have to do is put a cord around that -- cordon around that apple factory in shenzhents in the street of america. what would happen if our children couldn't get the latest iphone? elizabeth: who's going to buy them in china. >> they'll just sell them on ebay. [laughter] elizabeth: you know what's interesting, the growing number of u.s. companies ditching china, we're talking gopro, hasbro, a-10 international, possibly lg and intel. theyen don't take your inte lemm chul property in other countries, right? like china does. >> there's nothing wrong with manufacturing in the place where it's cheapest and most efficient to do it. the problem is it systematically rips you off. it's just got that stop. elizabeth: so you agree with the president here? >> oh, i think even chuck schumer and thomas friedman of the times agrees with the president here. elizabeth: how is this going to affect china, all of this? >> it's going to push them right off a cliff. when xi jinping lays a wreath of flowers at the trailhead for the long march, right, that famous 1934 march, you know, they wan

sweeping restrictions the us has imposed on it — during a press conference at its headquarters in shenzhenthis, we hope that the court can issue a judgment in the fastest and most efficient way declare restrictions on huawei as unconstitutional and stop enforcement of related sections. this tweet from us politics website site the hill tells you what the secretary of state, mike pompeo, thought of that. he reiterated us claims that huawei is an instrument of the chinese government. that's something that the company has repeatedly denied. our correspondent robin brant was at the huawei press conference and tried to find out more about those alleged links. those suspicions and planes from the trump administration at the very core of the us government's concerns about huawei and wyatt believes it's about huawei and wyatt believes it's a not just about huawei and wyatt believes it's a notjust in the us but around many parts of the world —— why it believes. this is something huawei from its founder and chief executive refuse. it denies it is closely associated with the chinese communist party. i

the shenzhen was substantially higher in 2015.heir markets were higher and they have power to get give power to the entrepreneurs. >> they want increased lending from smaller mid-size banks to help smaller companies grow. the chinese government is slowly giving it to them. this would help it. however with investing in china you're taking on a lot of additional volatility. would i say better opportunities are secondtores getting beaten up. charles: stocks under pressure with micron, intel, qualcomm, wynn, apple those stocks you buy on a dip for exposure to china? >> industrials and semis ones that have to import or a lot of sales. anybody that has a lot of sales or has to import a lot from china. i would say those are much safer bets in the u.s. you take that, once the trade war is on -- charles: i want to ask both you guys, last week was such a consequential week, powell, he threw things off a little bit. we had the productivity number that blue everyone away and jobs report blew everyone away. that was a green light for this mark

we did see drops in the chinese, especially the shenzhen and the csi 300.e saw gains in taiwan an. the forex picture here. you are seeing some asian movers. you don't see a lot of volatility still in the major trading pairs. volatility in equities. volatility in bonds and fixed income. you don't see it really in fx. let's take a look at bonds and see what is going on on the fixed income side of things in terms of the big movers here. you see the black box there. this means the move is more than three standard deviations away from the 90-day average. big moves in terms of spanish bonds. adding 2.5 basis points. that means that people are selling the bonds and the prices going down. in terms of commodities, we see drops across the board, in terms of cotton, in terms of metals. but we do see gains in oil this morning. crude are coming back a little bit, but still around the $70 and $60 level. let's get the bloomberg first word news. >> thanks, matt. can is expecting -- pimco is expecting more volatility. top executives presented their bearish outlook. they urg

the slice of golfing is three at the china open in shenzhen on friday kwan yang just fourteen years old fourteen years six months and twelve days to be exact he became the youngest player to make the cut at a european two event outside the majors his practice time for this tournament was reduced as he was taking his midterm exams at high school. where i go wrong in my life as a. thanks peter and that is it for this news hour but i'll be back in a couple of minutes with more of the day's news and as always there's lots more on our website al-jazeera dot com get the latest on all the stories we're following. radicalism is on the rise across the globe and we're told it's every west we're told was supposed to be highly suspicious of everybody and everything but our government policies aimed at tackling radicalization in fact pushing youngsters to the fringes of society and the impact is huge typing on the net there's only so much they can take before you say ok that's me rethinking radicalization of the radicalized youth syrians on al-jazeera. made on al-jazeera. as the world's biggest demo

they could be here, or they , wed be shanghai, shenzhen are very happy they are coming back.ppy for whatever decisions they make. secondarys around the listing in hong kong that, as the trade war is escalating between the u.s. and china. are you assessing the strategy in light of this? war is a global event. it is going to affect all of us in very deep ways. nobody likes it. we are all watching on the sidelines, praying that this divorce is not to take hold and maybe there are ways to scale it back. we will have to see. >> what message are you hearing issuers in hong kong or elsewhere? at thisbody is looking and asking the question, what does this impact mean? ipo's,ot only about investment, even 70 that just wants to start a business. should i wait? uncertainty of an that this created. it is very costly to the entire economy. i think the political leaders need to take the responsibility. quickly define what is really wanted. a we can probably agree. if you want b we can probably work something out. if you want something that is unacceptable to the other side, then we are goi