equipment, no matter where it's made if you're tsmc looking to build up manufacturing capacity in the united states to ship worldwide, now you got to worry about well, is there the possibility that this specific technology or that one of the suppliers who i sell these chips to ends up selling it to huawei and then does that put me at risk doesn't in a way that discourage companies, perhaps, from locating their manufacturing in the u.s. and being subject to this regulation? >> look, sure, there can be unintended consequences here clearly the intended consequence here is to inhibit huawei's ability to do business in the united states and around the world. remember, this is an administration that has talked about acquiring with u.s. government dollars foreign chip makers and competitors to huawei who can make this broadband technology, simply buying them because they're concerned there is no viable u.s. manufacturer of some of this 5g broadband equipment right now. this is a real concern in this administration and they are trying to block huawei from being the global default provider for

tsmc won't take new orders from huawei amid u.s. restrictions.l stocks rise amid gradual reopening's. jay powell says economic recovery could take until 2021. the bank of england says it is examining negative rates. emirates is considering slashing around 30,000 jobs. that's a bloomberg exclusive. later today, we speak to ryanair ceo as he ramps up a legal battle with rivals. nejra: welcome to "bloomberg daybreak: europe." you wonder what might be driving risk sentiment as we saw weekly loss for equities last week. it is not like we've had a slew of good news over the weekend. u.s.-china tensions, japan in recession, goldman talking about the worst recession ever potentially for india and then you add in the comments from paolo about how slow the recovery could be. -- powell about how slow the recovery could be. manus: i think it is selective hearing. the 60 minutes interview where he talks about this could take until 2021, but don't bet against it. we've got more ammunition. we are not traveling the road to negative rates. that's reflected acros

huawei relies on tsmc for all its high—end chips.ainst the deterioratinfg relationship between china and the united states. geoffrey, that is something that we we re geoffrey, that is something that we were talking about there. what is happening in the china and us relationship? how bad is that how much worse is it going to get and what are the consequences? much worse is it going to get and what are the consequence57m much worse is it going to get and what are the consequences? it is really bad and, the odd thing is, because of the mercurial nature of donald trump, it seemed to be getting better a month ago, they we re getting better a month ago, they were friends, but in his... donald trump's very clear priority is to position himself for the election, let us not kid us —— kid ourselves there. he sees this pandemic through a partisan lens and he is looking at a partisan lens and he is looking at a way to rally his base and he is neutralising his ability to hold those mass rallies. we do to make? he looks for some kind of enemy 2.2,

huawei relies on tsmc for all its high—end chips.ng in the us gives it a strategic hedge against the deterioratinfg relationship between china and the united states. geoffrey, that is something that we were talking about there. what is happening in the china and us relationship? how bad is that, how much worse is it going to get, and what are the consequences? it is really bad and, the odd thing is, because of the mercurial nature of president trump — it seemed to be getting better a month ago, they were friends, but in his... donald trump's very clear priority is to position himself for re—election — let's not kid ourselves there. he sees this pandemic through a partisan lens and he is searching for ways to rally his base and he is neutralising his ability to hold those mass rallies. where does he look? he looks for some kind of enemy to point to. the virus came from china — as he reminds reporters. for him there is an opportunity to vilify china, he says they inflicted it on america, they are america's mortal enemy. what is worriso

huawei relies on tsmc for all its high—end chips. the us, giving it a strategic hedge against any deterioratinfg relationship between china and the united states. jeffrey, that is something that lyse was talking about there. what is happening in the china—us relationship? how bad is that? how much worse is it going to get and what do you think the consequences are? it is really bad and, the odd thing is, because of the mercurial nature of president trump, a month ago it seemed to be getting better. he was friends with china, but in his... trump's very clear priority is to position himself for the election, let us not kid ourselves. he sees this pandemic through a partisan lens and he is searching for ways to rally his base and he is neutralising his ability to go out there and hold those mass rallies. where does he look? he looks for some kind of enemy to point to. the virus came from china, as he constantly reminds us. reminds reporters. so for him there is an opportunity to vilify china, to say it wasn't us, they inflicted it on am

years ago, tsmc was contemplating do they want to go to america? not really.re but america is the biggest customer. do you go with the new guy that is growing or the current one that is your client? that is taiwan in a nutshell. they export a lot to china but a lot gets reexported back to america, so taiwan and the nation have been struggling with this question for a long time, so this shows taiwan is moving more to the american side which will build up more tension with china. tom: two-year layout of how we affect business, it goes to the great and late clay christiansen and creative destruction. is taiwan setting up its own creative destruction by attaching to the trump administration desires? tim: i would say since taiwan is grabbing onto what the trump administration is doing, that taiwan has been wanting to move in that direction almost two decades, beyond denning away from china and trying not -- getting away from china and trying not to lean on china, they want to build relationships with south east asia, as well as of course america. trump has come alo

and the journalist saying that tsmc will announce as soon as tomorrow plans to build an advanced ship factory in arizona and mitch steves is saying that could be announced for certain names in his semiequipment names and applied materials would be one of them and notably the company did not provide guidance and the ceo gary dickerson saying the situation is fluid, but based on the visibility and what he's seeing now, supply chain is recovering and the underlying demand remains robust. on the call dickerson saying in q2 they were impacted by the lockdown which impacted suppliers and that particularly hit the segment and dickerson saying we are in a much better position today there are pockets of weakness and called out what's happening in autos and industrials consumer spending, he says and the potential headwind and the pandemic and we noted from a lot of tech ceos accelerating adoption and given what's happening with learn from home, bottom line, underlying demand is robust. our business, he says can deliver double-digit growth for the fiscal year. >> thank you, josh lipton. a pretty

tsmc for one has been very much challenged, reportedlystopping new orders from huawei in response tohington's move. the japanese paper the nikkei quotes sources saying prior orders won't be impacted now, taiwan is where tsmc is based is set to become a point of contention this week. in fact, today the world health assembly, which is the decision-making body of the world health organization, is going to be convening, brian, to talk about the oronavirus. but what are the items they're going to discuss is whether or not taiwan should have observer status taiwan, from beijing's perspective, isn't a country and shouldn't be there the u.s. has been pushing this idea taiwan has been doing quite a good job in containing the coronavirus. it will be interesting to see how this all plays out, especially with tensions already so high between the u.s. and china. >> the global tension there cannot be ignored. big stuff. appreciate that. >>> also topping your headlines today, new comments from fed chair jay powell speaking to "60 minutes" he addressed the real risks to the u.s. economy and what he

that's quite separate from the tsmc development we just talked about. and we believe that will have a -- maria: yeah. >> that will have a very powerful impact because we never intended that loophole to be there. the other one about the extension and the 90 days, we have made extensions mainly to make sure that the rural telecoms have plenty of time in order to wean themselves from the hauwei equipment. you're aware of the fcc has come out against use of hauwei and specifically banning use of federal funds to put hauwei equipment into the rural telecom, but they also needed for maintenance and for upgrade, so we are very pleased that congress has appropriated $1 billion to help the rural telecoms to wean themselves and yet we are giving them another extension, we want them to make clear to us during extension in mid-august what they are doing to wean themselves from hauwei, so 3 unrelated developments that just happened to come out in the same day. maria: well, this is a really important development and secretary pompeo has told me that hauwei access an

if you look at tsmc, they will be able to survive any problems with the market in china.cause they are global company and supplying people globally, including many of the u.s. manufacturers. >> are you worried we are good to see any supply chain shifts because of the virus -- going to see any supply chain shifts because of the virus? >> this is already taking place. the american companies that have the supply chain problem. it is the chinese companies as well. they have to look at fields out of their own area to find out where they can get their supplies. that is going to be sanctioned by the u.s. in one direction or the other. many chinese manufacturers are moving outside of china and manufacturing and other countries so they can get under the u.s. trade banner. that is another thing you have to look for, and we are looking at such companies. they are moving globally and are becoming more of a global supply chain company. >> that was mark mobius. bloomberg'sing to alix steel. they were discussing the u.s.-china tensions. we saw weekly gains. see green on the street today

tsmc, one of the foremost chip ,anufacturers, based in taiwan a country we would say, a region, beijing would say, that they are trying to reincorporate. the fact that they will manufacture the most advanced chips in the coming years in the united states is a development. it seems positive in building up our own capabilities. all good from my perspective. manuel, always good to have your perspective. cofounder of rice, hadley, gates & manuel, always good to have you with us. coming up, we will talk about the race to a covid vaccine. we will talk to david weiner, the cofounder of inovio, which is working on its own covid vaccine. this is bloomberg. ♪ welcome. -- welcome back. inovio was the second pharmaceutical company to open its vaccine candidate into human trials. this is after moderna announced some positive news yesterday that its vaccine candidate appeared to be safe in humans and produced the desired response. just how promisingly developments have been has been in dispute today. about how to inovio promising their vaccine candidate has been so far. joining us, david weiner, foun

likeu look at a company tsmc, they will be able to chinae any problems in because people globally, including manufacturers. alix: are you worried we will see a supply chain shift that we were talking about because of the virus, or does it not matter as much if you are looking at the right kind of companies that would be more immune to something like that? mark: this is already taking place. you must remember, not only is the american companies that have a supply chain problem, but it is the chinese companies as well. they have been looking for a field out of their own areas out of where they can get supplies. the interesting thing that is happening is that many chinese manufacturers are moving outside manufacture in other countries so they can get under the u.s. trade barrier. so that is another thing you have to look for, and we are looking at such companies. companies that are strong in china but are moving globally and are becoming more of a global supply chain company. that was mark mobius, mobius capital partners cofounder and partner. still with us, kit juckes from societe generali. wh

tsmc plans to complete construction of the factory by 2024.t makes semiconductors for names like huawei and apple. any shift in european production will be part of broader discussion between the two companies. may come when nissan unveils its three-year plan on may 28. renault has also promised to share cost cuts this month. a vaccine from santa fe. the seduction from the pharmaceutical companies chief executive has sparked outrage and france. the french president plans to meet with company officials next week. that is your bloomberg business flash. google's former chairman eric schmidt says china should have alerted people more quickly about the spread of the virus. he spoke with david rubenstein on leadership live about that and how the text or is hoping to limit fallout. >> you have to solve both problems. the health care problem. and the health care workers in our country have done a fantastic job. as weer, this all started worried that hospitals would be overwhelmed. we have managed to abide that through extraordinary work from state, fed

have the potential ability right now to produce the very small, very powerful semiconductors that tsmclou: right. >> -- will be making here. the other one is samsung, a korean company. and we would love to have them come here as well. lou: well, we will, i'm sure that they have just received your invitation, and we hope they will respond forthwith. mr. secretary, it's always great to talk with you. again, congratulations and thanks for being with us. wilbur ross. secretary of the department of commerce. >> thank you, lou. lou: up next, red storm rising, china using the wuhan virus pandemic to ramp up aggression and pressure around the world. we'll take that up with national security expert kt kt mcfarland, asia export gordon chang in this broadcast tonight and more on the obama administering's efforts to -- administration's efforts to undermine the trump administration as it was taking power in january 2017. we take that up next with flynn attorney sidney powell. stay with us. ♪ ♪ i got this mountain bike for only $11. dealdash.com, the fair and honest bidding site. an ipad worth $505,

tsmc now saying it's going to build an advanced semiconductor fab b in arizona spending $12 billion to do so with support from the u.s. government now it isn't clear what that support means, production starts in 2024 and will create 1600 jobs according to the company. back to you. >> thanks so much for that and sara, this is a weight on sentiment in the broad er marke. interest thag the rest of the market has shake beikaken that . the tsmv news is interest iing n terms of the delay we've got until we get to that point and i guess there's still a lot of room for this to never take effect for decisions to be drawn back again before they really come into effect and that requires a lot of political tensions to ease before them >> well like we saw with fox con in wisconsin sure no question. it's a big win jim cramer said focus on that. that taiwan semi, which should qul upset china, is going to build this big plant in arizona. a win. instead of stoking trade tensions at a time where the calculus is just different for the u.s. we have more than 30 million americans unemployed we're in a very

wall street journal" reporting the trump administration is working with chip names like intel and tsmco build new factories potentially in the u.s., kara, and reduce reliance on the supply chain out of china. china right now is really trying to build not just chip manufacturing, but also intellectual property in mainland china in the u.s., intel's already a huge manufacturer of chips, but it's kind of alone in that sense. do you think -- i think this is the key question -- there's enough bipartisan support for giving the kinds of tax breaks it would require for big companies to find it economical to put that here >> you know better than anyone about foxconn in wisconsin and all the things they promised to do and never happened. moving this kind of manufacturing to this country is a heavy lift and it could be done, but most of what's going on is happening in asia and it's been doing that for a very long time some of the manufacturing, the specialized manufacturing, could be done here there's some of the glass stuff for apple and things like that but the idea of wholesale movement of thi

if you look at tsmc's decision, you know, this monumental decision that they made it was really becausepresident trump's has improved the investment climate here in the u.s. in terms of regulation reform and lower taxes. the state of arizona also did a great job in terms of their state incentives. charles: yeah. 12 billion-dollar coup and bringing back one of the more critical areas of manufacturing, computer chips, to this country. take a bow, keith. thank you a lot. we appreciate it. >> thank you. thanks so much for having me, charles. charles: folks, speaking of china, tensions as we know between the united states and china continue to blow over. many are wondering will china be the number one factor for voters come november? why is the media so down on the stock market, every time it goes up, particularly why do they hate the small investor? we'll go more in depth as we come back. look, this isn't my first rodeo and let me tell you something, i wouldn't be here if i thought reverse mortgages took advantage of any american senior, or worse, that it was some way to take your home. it'

from obtaining a special license, this is also comes on the news that apples chip maker, taiwan-based tsmc will be building in advance semiconductor factory in the united states in arizona it's a 12 billion-dollar investment that will create 1600 high-tech jobs in the area and also bring high-tech production right here to the united states. >> the word is out around this world that if you want to sell to the united states, you have to build in the united states, that's what that's about, i'd love to see apple orchards in arizona meaning that apple needs to bring home morbid supply chain and production as well, a great day for america with this announcement. reporter: a commerce department official tells me just because the new rule is in effect does not mean that they will reject every application that they get for license, this means this is a way for the commerce department to track where sensitive technology is going in whose hands it ends up in. melissa. melissa: it makes sense. hillary bond. connell: let's get to lauren simonetti who has been watching the markets and we wrapped up the

even there, if you look at a company like tsmc, they will be able to survive any problems with the marketn china simply because they are a global company and supplying people many of thecluding u.s. manufacturers. alix: are you worried we are going to see any supply chain shift that we were talking about accelerate because of the rhymers or does it not matter as much if you are looking at the right kind of companies that would be more immune to something like that? mark: this is already taken place. you must remember it is not only the american companies that have a supply chain problem, but it is the chinese companies as well. they have to now look afield out of their own area to find out where they can get their supplies, and they are not going to be sanctioned by the u.s. in one direction or another. the interesting thing that is happening is many chinese manufacturers are moving outside of china to manufacture in other countries so that they can get under the u.s. trade area. though that's another thing you have to look for, and we are looking at such companies, companies that are str

tsmc -- intel is planning to come out with products next year, but pretty much nobody else.ppliers have managed to hang on in the development process over the decade. simply taking a huge gamble that took them six years to develop the product and they ended up being the only one in this tiny little niche, and now, they are reaping rewards. haidi: investors -- david: investors who bought in up 500%. we are now up 50% this year alone. do you think future growth has all but been priced in really? knows theone really final size of this market. people kind of estimate each chipmaker will need at least two of these machines which cost $40 million, but right now, it is only the largest makers. when they spin up their productions, it seems to be there's a lot more orders coming in, so potentially, this company could have a lock on this tiny little niche of the market until the next generation, which is probably decades away. good point. an entrepreneur once told me, i asked him how big is your market? he said how big is the problem he needs to solve? pavel alpeyev, our asia technolo

they -- if tsmc will get financial help from washington.e gained ground with the nikkei 225 holding above 20,000 points on the kospi resuming gains. moving to the upside in sydney. gaining more than 1% after a choppy week. key activity data from china and trade figures from india and indonesia and the onslaught of government debt sales continue with severalegion companies tapping bond markets. looking to the boj regular bond buying and the sale of a treasury bill on top. .lenty of debt sales online asian stocks in a second weekly gain this morning. -- this is bloomberg. ♪ >> let's go to tokyo where we see calvi on the move. dropping as much as 13.4% this friday morning after forecasting an 11% year under your drop and full operating income. stock is basically giving back half the recovery from the march low. let's turn to oil. now on track for the third straight weekly advance as opec slams the brakes. su keenan is on the line. there was an indication oil markets are reading. energyinternational agency put out an optimist the oilay they see

security, and our economic prosperity, so with that said, it will create thousands of american jobs, and tsmc, high tech chips. it is a five nanometer plan, state-of-the-art. it will impact daily lives for people around the world, and it will make made in america once valleyyou know, silicon semiconductor was invented in the united dates, and it brings it back. the deal also strengthens our relationship with taiwan. a vibrant democracy, a force for good in the world, and a real good friend of the united states, just like hong kong. kevin: you and i have talked about this before, mr. undersecretary, about how the state department is working in the longer term to try to develop international standards on a host of different standards as it relates to energy and 5g. this is just the latest illustration of that. can you talk more broadly about the u.s. foreign policy goals in the long term in developing those internationals to enter with europe -- international standards with europe, hong kong? keith: this is part of our economic prosperity network initiative. and what that is, it is comprised of

versus some of the asian names like tsmc >> we like the asian names the u.s.of lead the market in a sense we've had the view for quite some time that the chip stocks ha have started to pace areas. one of them is the stock which is much more discretionary related to the consumer. that's going to be a little murkier. i think the side which is more powering, the move to the cloud is an area which has more secular growth prospects, will be less volatile and cyclical. as we go to the end of this year, there's a possibility that we go through an inventory rebuild and there may be another correction already just been going through a correction so i think the area will continue to be volatile. but there's probably more of a secular tail wind to it now that we have the cloud based computing than we had when only really driven by pc and hand set sales. >> earlier on this show in this hour, we spoke to mark cuban and small businesses struggle iing o survive amid the coronavirus pandemic he said missing stimulus piece right now is consumer demand >> i would rather see us

so the administration reportedly talking to intel, teaming up with tsmc, taiwan semiconductor that makeinto the iphones. building a factory and more factories here in the u.s. this would build chips for a lot of u.s. corporations including possibly apple and defense. to provide a safe supply chain for sophisticated technology in the future. stuart: no wonder intel is up 1 1/2% this morning even in a down market. thanks, susan. >>> let's get back to hong kong. remember the protests there? remember the lockdown because of the virus? apparently, lauren tell me more, the protests are flaring up again, is that right? lauren: the pro-democracy protests are flaring up again. hundreds of protesters over the weekend. some indeed were arrested. they say beijing is taking advantage of the coronavirus to use contact tracing apps to find out where they are. also find them if they're gathering more than eight people. that is against the law. so they say beijing is using coronavirus to clamp down on them even more. they will not have it. we saw protests over the weekend there. stuart: what was that ex

semiconductors the nikkei newspaper, which is a japanese newspaper, has been quoting sources as saying tsmcg to have difficulty and stopped new orders from huawei taiwan is also set to become a point of contention between the u.s. and china even further this week because currently the world health assembly, which is the decision-making body of the world health organization, is holding a virtual event. president xi jinping spoke at the opening ceremony, he's speaking right now saying -- really presenting china as a very responsible player saying over the next two years, for example, china is going to contribute $2 billion to countries that are struggling with coronavirus he also said that one when china has its own vaccine that china would share that vaccine with the rest of the world. however, what everybody is watching is what is going to happen when the countries go to vote, whether or not taiwan, which is china's rival and some of that island that china believes is part of china and not a country, whether or not china -- taiwan is going to be allowed to become an observer in the world he

this is a smaller plant compared to what tsmc does. they are the largest contract chip manufacturer in the world. they make those chips that go into your iphone. they are spending about $12 billion. they will make about 20,000 of these high tech silicon wafers. typically their big plants reel off about 100,000 wafers so this is a much smaller addition but look, this is something they talked about for awhile and i think it's a victory for the trump administration to bring back supplies of high tech components which is what secretary of state and even president trump has said he wanted to do. stuart: got that. susan, thank you very much indeed. the dow is now down 230 points right before the opening bell. marc tepper is with us. is this just about china and the possible retaliation against some dow stocks, or is it also about that rotten retail sales report? >> i think it's about both. you know, with regard to china, i mean, china needs to be dealt with strongly and swiftly. they have definitely proven they lack transparency, integrity.