u.s.. it is the focus on the tech sector in the u.s., the turmoil in the u.s. government.ll of these factors are driving it. all those things are holding back treasuries. we have not seen this real panic yet. we have seen a correction that is normal par for the course in bull markets. we have seen three corrections over 50% in the last eight years. this one was only 11.8%. i expect this to turn into a larger correction. when we get the panic we will see the rush into treasuries. remember,thing to treasuries are not doing too badly. despite that they are hiking rates and we have threats on supply, you have seen yields come down more than 20 basis points. vix struggling to close above 25, is that significant? mark: i'm not sure it is significant. what is more important is that the moving average of the vix are going higher. moving averages are drifting higher. the look back window for risk calculations are continuing to move up and squeeze ability to take risk. that is more relevant to the moment. as we get increase volatility, in terms of option hedging, it becomes harder t

josh lip ton tells us why tech has so much on the line and the fallout that might occur. >> reporter: u.s. trade chief robert lighthizer says the chinese aren't playing fair when it comes to american tech, that they pressure u.s. tech companies into forevering their technology to chinese partners and flat out steal american it. that theft costs the u.s. economy between 225 and $600 billion annually. there are real world implications of this chinese theft. for example, in december u.s. chip maker micron fil a lawsuit in san francisco accusing united micro electronic of taiwan and a chinese start-up of conspiring to steal its technology. micron allege has the defendants recruited key personnel from micron's taiwan unit getting elem to der trade secrets, a bold scheme for the chinese company to avoid hun eds of millions of dollars in costs, and months of r and d sneefrt one of the most important parts of our entire economy is the ip protection. it ishe extreme competitive advantage to the united states. and it is the core of an enormous number of sectors that you tonight think of quite as hi

president donald trump is firing back at european commission plans to slap new taxes on u.s. tech giants the german business daily hundreds but claims now the u.s. is accusing the e.u. of violating w t o rules with its so-called digital sales tax let's have a closer look at that this tax would apply to companies no matter where they're based the tax could amount to between one and six percent of sales not profits that means companies like amazon would not be able to avoid it by reporting low profits or using tax havens and the tax would be due on all activities that explode use the data that would be heating facebook and google the u.s. says that's unfair because the new taxes are designed specifically to tax huge american corporations it only affects companies with at least seven hundred fifty million euros in worldwide sales of facebook's gondolas strengthen the news hand as it prepares to introduce new data protection laws so it might find itself in a stronger position to face down washington in a possible dispute at the w t o now let's bring in our correspondent in brussels te

tech company. whether thessue is u.s. vice is really making money and whether that is true or fake news. alex, great to break down the tech sector this morning. graced for no break the deal. the eu is set to warn the u.k. banks to prepare for the worst case scenario for finance. we discussed. >> and, april fool's. markets selloff after the easter break. volatility back on the rise. ♪ >> this is daybreak: europe. . a: apple is said to be put to use its own chips and mac computers beginning as early as 2020, replacing processes from intel. according to people familiar with the plan, the initiative is still in the early developmental stages that comes as part of a larger strategy to make all of apple's devices, including max iphones, and ipads work more similarly and seamlessly together. they said we do not come out regulations about customers. linda cook has said she seeks to expand in asia and africa after making a 10.3 billion u.s. dollars offer for australia's third-largest energy producer. she said harboour would grow sa

have come under fresh strain as the european commission plans to slap big new taxes on u.s. tech giants the german business daily hundreds blood claims that the united states is accusing the e.u. of violating w t u rolls with its digital sales tax now that would apply to companies no matter where they're based on the tax could amount to between one and six percent off sale not profits and that means companies like amazon would not be able to avoid it by reporting low profits or using tax havens and the tax would be due on all activities in that x. that exploit use the data which is also hitting facebook and google the u.s. says that's unfair because the rules are decided specifically to tax huge american corporations it only affects companies with at least seven hundred and fifty million euros in worldwide sales but the facebook scandal has strengthened the hand as it prepares to introduce new data protection laws sounded might find itself in a stronger position to face down washington but is that the case that's what i asked our brussels correspondent teri schultz. well monika a

u.s. tech companies and washington is heading back monica has all the details coming right up and business. just long way to start by there and it's nice just to hide your ugly little. bangladesh what does the true face of the country look like. freedom independence a separation of state and church that used to be important but for decades political infighting has hindered progress and there's limits to extremists are gaining more influence joe moderates to the who love law are on shaky ground in a difficult green in the region brown love it should be. noted britain. has not. bangladesh the dawn of islam as of an exclusive d.w. report starting april twenty first. at a. paris is willing to take over all of the state railways dick french president the man who in my call is trying to easily i'm go off strike in french well worth because while at the same time saying they are walkouts and won't change his reform plans also coming up another front opens between europe and the united states and now t

the 2018 u.s. tech ipo market kicked off with a bang.rom dropbox to spotify have hit the public market. the quarterly value of u.s. tech ipos by trading date. scroll over to the right. you will see we have some of the biggest ipos hitting since 2014. more news on what could be the biggest public offering of 2019. --r $100 billionking a valuation. enrique salem -- is joining us, and with us in new york, david politis. talk to us about the global tech ipo landscape and how bullish you are. enrique: this has been a very interesting time. this year we've seen nine major ipos in the technology industry. you saw dropbox go public recently. there are a lot of other companies that are in registration right now. docusign is expecting to go public later this year. this is a vibrant time for companies. they are thinking about how do you move from on premise to cloud computing and applications. you're seeing a vibrant market. emily: this is certainly your area of expertise. country is what you think about the dropbox ipo in particular -- i'm curious

we saw that selloff reignite with the chipmakers and today, tech in the u.s. how low dubai he wishes need to fall for tech names to become compelling again in an impairment where everyone is shifting from growth into value? >> there is difference within tech. the internet names have de-break it and growth is pretty good. de-rated and growth is pretty good. the problem with tsm is that it is the canary in the coal mine and affects the output chain, so that's an area where it is not about they wish and's, but momentum and earnings, and that will be negative over the next six months. i would wait for a turned rather than wait for an evaluation. haidi: plenty more to talk about. still ahead, d w an sean taylor staying with us. we will assess the mood in washington, the imf spring meeting underway there. rishaad: we will have a look at the chip industry outlook after taiwan semiconductor's weak guidance. this is bloomberg. ♪ mberg. ♪ trade lower definitely conflicts. extentnot know what the of the damage to growth will be. open trade is good for the global economy.

plans to slap a tax on big u.s. tech companies and washington is hitting back monica has all the details coming right up and business. just long way to start right there and it's not a just. what is the true face of the country. freedom independence a separation of state and church that used to be your.

but until then the privacy deba may hold back u.s. tech companies from competing. >> currently i think it will. hit maybe it takes time. i the u.s. or even the world can see that it is not hard to use thatind of technology. >> for "nightly business report" in beijing. >> the hedge fund industry has largely under performed the broader market during this current bull run and any number of reasons why. from a lack of market volatility to path of investing. but now researchers may have found anoth reason why. brace uryoself. lesscy picker has our story from orlando. >> reporter: hedge funds an industry sym nom must with alpha, that's what they thrive for is alpha, or out performance. but also an industry spearheaded by stereotypet strai out of casting alpha males. new study asks do alpha males or those are higher testosterone levels deliver better returns. researchonducted here at the university of florida found that hedge fund managers with higher testosterone outfo p by 5.8% each year on average. researcher yen lou used hedge fund managers a

president or no trump is firing back at european commission plans to slap new taxes on u.s. tech companies the german business daily hundreds flood claims now the u.s. is accusing the e.u. of violating w t o rules with its so-called digital sales tax so a closer look at that this tax would apply to companies no matter where they base the tax to pay amount to between one and six percent of sales not profits that means companies like amazon would not be able to avoid it by reporting low profit so using tax havens and the tax would be due on all it if it is that exploit user data that will be mean hitting facebook and google it would only affect companies with at least seven hundred fifty million euros in worldwide sales according to the report the us now says that's unfair because those new taxes would be designed specifically to hit big american corporations like google or facebook but the facebook scandal has strengthened the e.u.'s hand as it prepares to introduce new data protection laws so it might find itself in a stronger position to face down washington in a dispute in fron

first of all, we have been talking about the selloff in the u.s. tech sector.ber of things that have caused investors to question the valuation of some of the u.s. tech stocks that ran up so high last year and questioned assumptions about the future earnings streams. you have got kind of some fundamental questions in investors minds about the impact of regulation with president trump talking about amazon is too big and too powerful. you have got u.s. lawmakers expressing concerns about privacy protection at facebook. then, you have got apple. that appears to be heading of its ownrcing more production internally. raising questions about the earnings prospects of competitors. you have a lot of fundamental questions about future earnings for these tests guys that investors are working their way through. we have just published a chart on the bloomberg that shows that if you strip out the so-called isg stocks, the s&p 500 doing even worse this year. it is not just a tech story. what we are seeing, i think, is in impact of the increase borrowing costs. particularly m

companies the european commission plans to slap big new taxes on u.s. tech giants now u.s. president donald trump seems to be firing back the german business daily hundred splot claims the u.s. is accusing the e.u. of violating w t o rules with his digital sales tax that's have a close look at this his new tax would apply to companies regardless of the location of the corporate headquarters the tax to the amount to between one and six percent of sales not profits that means companies like amazon would not be able to avoid it by reporting low profits or using tax havens and the tax for that would be do you want all of that to vittie is that exploit use the data hitting facebook and google beyond the classic revenues according to a report the u.s. now says that's unfair because those new rules will be designed specifically to tax big american corporations it only would affect companies with with at least seventy five million euros in worldwide sales but the facebook scandal has strengthened the e.u.'s hand as it prepares to introduce new data protection laws s

as we analyze the attack from corporate conference calls -- the tech, across the u.s., you are at a huge tech spending. it has been put off for years at this point and it is now coming in. those companies, which are selling to other companies are see sales growth into this. potentiallymazon because of their businesses there? heather: absolutely, when you look at companies who are augmenting their tech. emily: what is happening in the private markets? yet exposure across the board, whether it is venture capitalists or startups -- i know blackrock has a holding in uber. talk to us about the activity there. they run with semipermanent capital below the radar and don't need to be doing what the herd is doing in terms of keeping up with peers. they can be very specific and continue to hold private investments and look for private investments. i would say that has backed off from years past when you look at investments, and really get investments of the companies that aren't necessarily technology but are willing to utilize technology in their businesses. those are poised to advance. strongs s

intellectual property through requiring joint ventures by unfair licensing rules through buying u.s. tech firms with state funds and through outright theft the. this all began when president donald trump announced tariffs on aluminum and steel coming out of china china retaliated with tariffs on port fruit nuts and wine the that was specifically tailored to her trump supporters in the farming industry in the middle of the u.s. where he got a lot of his support whether this will result in a rising trade war or whether negotiations will end up with a negotiated solution that remains to be seen. we heard first from china's commerce ministry which issued a statement at six am local time warning that china would respond with countermeasures of equal intensity we also heard from the chinese foreign ministry which issued a statement warning that the u.s. action was unrealistic and protectionist and was recklessly endangering trade cooperation between china and the united states it seems that the trumpet ministration is targeting industries the form part of president xi jinping made in china two

we're live from the milton global conference where i'm joined by the u.s. tech or terry -- u.s.cretary steven mnuchin. you have been talking to a lot of people here about heading off to china. you'll be looking for what from the chinese? is this their last chance to prevent tariffs? looking forward to very frank discussions on the trade issues and continue the discussions to see if we can reach a mutual solution to this. the good news is, president , sincend president xi mar-a-lago, have been talking about the trade imbalance. president xi acknowledged that the objective is to have a more balanced trading relationship. i think they have a close relationship and i'm going over there with our economic team to see what we can get. emily: if i was listening to what you just described, it will be you, u.s. trade representative's, and heater navarre -- peter navarro. mr. mnuchin: and larry kudlow and secretary ross. emily: should i be listening to you -- stephanie: should i be listening to you? mr. mnuchin: you should be listening to all of us. i would say that we have a tremendous ec

u.s. tech pans have avoided government oversight and attempted to police themselves. >> why did we have to wait for a bad thing to happen before regulators woke up to the potential for harm here. >> and, that's a really good question, tony. facebook was made aware of this in, 2015, 2016, and they, they, pretty much never made it public. >> you think we will look back on thee days as kind of the end of the wild west era? >> really? >> i think it has the the makings of that for sure. >> aaron levee founder and ceo of box, the company he started while in college. he thinks facebook's data controversy could change silicon valley forever. and force oversight of the tech industry. >> there are so many examples where we don't have modern ways of, either regulating control r og, or putting the right protections in place in the internet age. this is a fundamental issue that we have to grapple with as an industry for the decade. >> he will be rooting for regulations strike a balance between consumer prot

u.s. based tech firm regarding some thirteen billion euros in back taxes the bill stems from a twenty sixteen e.u. decision that determined apple had illegally profited from a sweetheart deal with the irish government apple is still appealing the decision but the company has agreed to begin paying into an escrow account as it waits for a verdict opel workers have taken to the streets again new french on a p.s.a. look set to slash jobs at the german comic despite guarantees p.s.a. has money in the first three years of this year it sold more than a million cars that's a record for the group so it is on track to hit its target of four million this year opel vauxhall accounted for more than a quarter of those sales but the brand posted significant losses last year and it remains in the red that's why p.s.a. is trying to cut costs but the workers aren't buying it. opel workers came from around germany to the ice in a protest organized by the eagle mattel union the automotive workers want to show their solidarity parent company p.s.a. is said to be planning to fire around eight hundred employees al

tech valuations? >> i think a lot of people in the u.s. hat chinese tech development, a lot of it is not government influenced or government controlled a lot of investments are made by the chinese tech companies on their own, especially the companies we all cover like alibaba and so forth so even if there are no restrictions or there's some restrictions, it doesn't really matter to how chinese company technically will develop on its own. look at stem graduates each year each year the number of science, technology, math, engineering graduates in the u.s. versus china, china has 4.7 million as of two years ago and u.s. only has 600,000. the numbers do favor china developing technology on their own. in the influence of government in investing in ai and other areas, i think, is a bit overblown. in this current environment it's easy to paint china as the enemy. >> hans, it sounds like when you start putting out those numbers about stem education, it sounds like the next push here should be immigration, immigration reform and hanging on to some o

just about u.s. tech giants. in europe, alphabet soup with results. heather is here.ne corner and s.a.p. another corner. what stories are they peddling? hurt by ams is being the general selloff in suppliers , starting with semiconductors. their earnings and outlook are disappointing analysts. that someup this year has losthone luster some of its charm and maybe shipments won't be as strong. you have seen apple down on and off, and that is more signs of tension we will see before they report earnings next week. mark: they are focused on cloud, and it seems to be paying off. growth ofhey reported future orders of 25%. companies are spending on cloud growth. s.a.p. is widely used among corporate america and europe. it is a sign that businesses are willing to invest. up, and that has been pulling up the tech space today and keeping european results up above board. vonnie: if we look at a chart in the bloomberg, it shows the euro was intentionally hurting some of the majors. will that continue? heather: i think we need to wait to have more earnings to see that. the euro ha

a quick check of how we traded today in the u.s.. techhirts struggling a bit but overall markets are higher in the dow is up 60 parts. the s&p higher as well and the nasdaq also taking a bit of heat, say mixed open. paul: it is looking reasonably positive at the moment with new zealand and australia resuming trading after yesterday's public holiday. new zealand already up a 10th of 1% of the kiwi dollar white down by the greenback strength. as for how we ship up in australia, it is fairly positive with futures indicating a pop of 6/10 of 1% at the open. belowssie dollar slumping $.76. the kiwi with little change. on commodities, gold has been slipping, as has crude. at 68 dollars, and iron ore in order continues to weaken as commodities remain volatile. facebook shares as we mentioned are soaring in late trade after first quarter numbers, and we see the revenue jumping 50% and bidding analyst estimates. ocial network remain spoiled in controversy, and emily chang is with us with the details. has the controversy not phased facebook? the ca

be more comfortable having their movements tracked, but until then the privacy debate may prevent u.s. techompanies from competing. >> it takes time the u.s. and the world can see that there's no harm to use those technologies >> and i'm told that the other big advantage for china is the volume of data because of the size of the population, chinese companies are able to collect data on over 1 billion mobile devices brian? >> numbers everywhere. so big eunice yoon, interesting stuff on ai. thank you. >>> a lot more to do on "worldwide exchange" including a double dose of space news. first up, spacex on a quest to find new planets it's the big launch that has everybody buzzing today. >>> later, how one miami luxury apartment building is taking a page out of the jetsons. you have to hear this story. stick around ♪ tired of constantly battling lingering smells in your home, like pet, shoe, and body odors? for long-lasting, continuous freshness, try febreze plug. febreze plug provides 45 days of freshness, with a unique dual chamber design that alternates between harmonized scents for a continuo

if we go into bloomberg one more time, quarterly value of u.s. techpos was very high last year, and it has been going down quite a bit this year. the security related ipos have been strong. back to you. haidi: a bit of a brighter session on wall street. with better tesla than expected production after what has been a pretty bumpy road. will look at the prospects for the rest of the year. betty: and coming up will speak to howard buffett about his new book on failing u.s. border policies. this is bloomberg. ♪ betty: good morning i am betty lou in new york. i am haidi lun in sydney in your watching "daybreak australia". -- the what has produced a list of chinese high-tech products, and it aims effect unlesse consumers and china has made it clear it will hit back in kind. its go over to washington to discuss this developing story with our white house editor. we are seeing these lines coming through from state media and a mouthpiece of beijing is saying these tariffs break international trade rules. what do we know so far? the u.s. administration released

we are 30 minutes from close off and equity trading in the u.s.. techearing with apple the biggest drag, and rates rise. joe: the question is, "what'd you miss?" scarlet: shaking off drunk drivers after oil falls. -- and a glimmer of hope for ge investors. and bloomberg school with the industrial giant looking to unload its rail units. we seea mentioned, declines in u.s. stocks and you can call it a selloff after we are steadily declining on the trading day off of session lows. apple was in the selloff, falling as much as 4.2%, right at the 200 day moving average of the morgan stanley cut iphone shipment projections and people are concerned about what is happening with hardware sales. sent hisesident trump twitter iron from the james comey book tour to the price of oil. president took twitter, saying it looks echo opec is at it again with record amounts of oil all over the place, including the fully loaded ships at sea. all prices artificially very high, no good and will not be accepted. here with us is bloomberg metals reporter, and managing editor for

u.s. tech editor at the economist and jason ca lckalika.fter q1 results blow away estimates after facing the worst crisis in the company's history, expecting to add users last quarter. on the call mark zuckerberg promised on improving the user experience. >> only investments we're making to secure or platforms, we're going to invest even more in building experiences that bring people together on facebook in the first place. next three years, we'll keep building facebook to be a service that people not only love to use but one that's good for people and good for society. >> so let's open the conversation here, guys. alexandra, obviously, the numbers, the metrics this quarter are well above what anyone participated. question is, is it too early to see the effects of what they've been through the last few months >> the recent quarter takes in only about a couple of weeks after the scandal hit. so, it broke in mid march. i think that's important with that said, i think it's unlikely that the scandal, if it's contained and if we know the extent

if you think about it, the tech sector is a global sector and u.s. techning at forward earnings of 17 and it is, which is not very, not too far off five-year average for the broader market. in emerging asian tax, it is 14 times forward earnings, which still is a very different than the broader market. yet they are leaving in interesting segments in the market. from regulatory perspective, they are not seeing regulatory changes because they are under a , different regulatory regime since the beginning. it is more status quo over there. i would raise a little bit of caution because you are against high comps, specially with chinese earnings cycle. they have incredible earning cycles. some caution, potentially in the near-term around choppiness, but long-term it looks great. emily: heather loomis of blackrock, thank you for joining us. heather: thank you. emily: coming up, just five days after applications opened for visas, how it will impact tech. this is bloomberg. ♪ emily: on monday the visa lottery opened, and five days later, the cap was met. this citiz

administration is also reportedly considering trying to penalize or influence chinese investment in u.s. techifically they had been talking about semiconductors and 5g. how do you expect that to play out? adam: we have already seen that. the president blocked the broadcom acquisition of qualcomm. we have seen leaks of documents that supposedly the government was thinking about nationalizing nationalizing the 5g networks. the most likely reform is a reform of the process. the committee on foreign investment in the united states. there has been concern that some of the ways that china has been acquiring technology -- they have been either using minority positions or going after companies that are bankrupt or trying to buy ip. i think that process will be reformed with a bill that has bipartisan support and that will make it harder for the chinese to invest in critical and sensitive technologies. emily: that was adam siegel. now, back to our continued coverage of the fallout from facebook's data scandal. an analyst is warning of a potential halted some advertising campaigns on the social network

i think the place to the is u.s. tech. thatompanies underneath are trading and they are delivering 16% margins year-over-year. and a littlee now .it more concentration >> just to be clear because there is so much debate, are we talking about the really big tech giants that have powered so many of the gains for the markets? >> know. i don't think that is where you want to be. look at the cloud operators. this is where the growth continues. these are the pipeline companies. the companies behind them that are providing are so going to be there. the advertising dollars will go somewhere, but you want to be in base where the technology games -- games are delivering -- technology gains are delivering credibility. >> thank you for that. up, faster speeds, better prices. ceo says we can expect. this is bloomberg. >> let's get to first word news this afternoon. had the primep minister of nigeria at the white house today. >> especially as it relates to terrorism and that is terrorism here and terrorism all of the world. it is a hotb

know, my colleague at the street eric johns penned a fantastic pick saying if they could impact u.s. tech company, he points to four specific ways they could hit back. with m & a reviews and notice it had could get stalled. prescient. maybe in someone in the chinese communist party knows about it this means you have to worry about any merger with a company that does a substantial amount of business in china he thinks we need to be concerns about contracts dealing with 5g wire al wireless technology. the fcc moved to potentially block tell crow purchases by chinese firms. who is to say the chinese government won't retaliate against our own companies like cisco or juniper i like cisco i think juniper needs to be sold there are already restrictions our companies need to apply for an exemption if they want to sell the stuff to the people's republic these could be hard story come by for example, intel is trying to build an advanced semiconductor plant in china but who knows if they can get it done in this environment finally mountains out that the chinese government -- the government loves to

of tech in the selloff, and the company-specific stories if you look at chinese tech averse the u.s. technts. it actually surprised me to look at this. despite all about tech spurring the selloff, they outperformed in the first quarter along with consumer stocks, so do you think there are certain companies were valuations are looking more appealing now? in china, do you see that as a sector that will come under pressure with the trade story? tech is't think chinese impacted by the trade story per you say, it is interesting that people very much focused on the last few u.s. where you had a big tech selloff, but technology has outperformed year to date. when you look at the big chinese clearlypanies, they are not as attractive today as they were 12 months ago, that they still look -- but they still look like reasonable by from my perspective. rishaad: richard, do please stay with us. more throughout the day, discussion on the road ahead for tesla. also coming up, spot a fight making a successful but unusual debut. k takei to global, an early investor -- two k2 global investments. this is bl

joining us for more on the testimony, u.s. techat the economist and charles duhig, pulitzer prize winning journalist we've talking about the takeaways, charles what stood out >> what stood out to me is that two things we saw congress arguing for. they're very different democratic senators and house members were saying what if we were to regulate facebook, come in and set up rules, which would frankly give facebook a huge advantage. if there are more regulations in place, facebook can comply with them better than any of its competitors. then senators, particularly from the republican party, saying we don't need regulations normally. if the marketplace works, there's competitors. we saw, in fact, one senator asking mark zuckerberg, who is the facebook competitor? who do you compete with? he was unable to answer that question if, in fact, we see a push for a breakup, greater competition or recognizing facebook as a monopoly, that's pretty bad for the company and not a competitive advantage. >> alexandra, it seemed to me that none of t

u.s. to give you some context, dow was down almost 2% s&p down more than 2%. the tech heavy tesector down 2.% april has been the worst start for the s&p 500 since the 2.5% decline in 1929. really the u.s. equities are starting off this quarter on very much the back foot the all three of those indices are technically in correction mode have pulled back 10% from the january highs. and both the dow and the s&p are trading below their 200-day moving average many tech analysts will be looking at those two and seeing what the signals will be from here a lot of the signals are pointing bearish let's talk about the tech sector in the u.s actually let's talk specifically about the sectors in the u.s. first. you can see every single one of the sectors did trade in the red in yesterday's session you can see that again the under-performance was led by the tech sector. fi financials were down 2.1% or so. 7 out of 11 of the sectors in the u.s. are technically in correction territory as well here's an interesting one. the only positive sector year-to-date is technology up 0.6%. let's

for example, if even a u.s. techs, these forms of regulations could be $30 million or 4% of annual sales. so it's no joke. it's a little bit further than slap on the wrist. one of the things that people in europe likes a lot is the right to be forgotten. if you post something. >> shepard: we don't have that. >> you don't and you regret it and don't want it there no more, you are going to have the right to say to these companies get that off. i didn't want that erase it and have 72 hours to do it. in this country we are not used to the tech companies functioning like that. tech companies going to have to come up to speed. how they will handle this with four weeks to go. also hear from other companies, tech companies this week reporting amazon and of course we know the president and mr. jeff bezos have been in a twitter tension, let's call it that. so we will see how that effects its bottom line. >> shepard: thank you, d. >> you're so welcome. >> shepard: good to see you. we will be back to look at the birth of what's

can just block chinese investment quietly in u.s. tech, at least on our shores.hat's a first good sort of strategic move that doesn't hurt other industries. >> dana: all right. deidre, bolton, glad you're here. we are minutes from the white house press briefing. we're going to take you there as soon as it starts. scott walker warning republicans of a potential blue wave in november. what prompted him to sound the alarm? we'll tell you about it. big news here on "the daily briefing." i will sit down with facebook's chief operating officer for an exclusive from the company's headquarters in california. she will have new steps the company is taking to protect your information if you're on facebook. i'll ask her about the main event next week, mark zuckerberg's testimony in front of congress. you don't want to mace that interview on friday. every day we hear from families who partnered with a senior living advisor from a place for mom to help find the perfect place for their mom or dad thank you so much for your assistance in helping us find a place. mom feels safe a

neutralput u.s. techare looking at value stocks, stocks not growing at 30% or 40%, but there is reasonable growth. the cash flow is strong and the company is in good shape. therefore the rise in interest costswill not had to its dramatically over the next 12-18 months, so that is the profile we are looking at. haidi: there is a lot of noise affecting equities and uncertain developments when it comes to geopolitics, oil assets. trade tensions are expected to go for several more rounds. clients wondering what are worried about and how you make your way through the noise. are you more cautious this year than you were last year? >> certainly. forink we have been spoiled the 18 months from 2016 to the first month of this year. was about nine, historical lows. toatility has rebounded back 19-20, pretty much in the range. it's not that were going through a remarkably volatile year. the selloff in february was volatile, but on the whole the average this year and is pretty much the average of the last 20 years, so

u.s. in tech otdevelopment. r says only when you have high tech can you have a say.pe s here have been calling for china to speed up its efforts to develop its own homegrown chip industry. for nightly business reports, in beijing. >>> honeywell hikes its forecast for the second time this year. and that's where we begin tonight' market focus. a strong quarter helped by strength in the aerospace business prompted honeywell to raise guidance for 2018. s honeywell alsd its taking aggressive action to mitigate anyat ne impact caused from the new tarries on imported steel and aluminum. shares rose to 150.57. stanley black & decker topped sales expectations but investors were kiss appoindisappointed to weak full-yeaoutlook. saying the guidance was result of an acquisition and a tax isarge. shares fd down more than 6% to 144.21. schlumberger said strength in divisions of its helped earnings top expectations. the oil field services company also warned the industry will face supplge chall this year and will need new inves

president donald trump is firing back commission plans to slap a big new taxes on u.s. tech giants the german business daily hondas blood claims that the united states is accusing the e.u. of violating w t o rules with its digital sales tax now that would apply to companies no matter where they're based on the tax could amount to between one and six percent of sales not profits and that means companies like amazon would not be able to avoid it by reporting low profits or using tax havens on the tax would be due on all activities that explored use the data hitting facebook and google the u.s. says that is unfair because the rules are decide specifically to tax huge american corporations it only affects companies with at least seven hundred fifty million euros in worldwide sales of the facebook scandal has strengthened the u.s. prepares to introduce new data protection laws so it might find itself in a stronger position to face down washington let's talk a little bit more about that with our brussels correspondent teri schultz terry tell me how strong is the position. well mon

regulators are asking the same questions and they certainly have no qualms about stopping down a u.s. techompany. the stakes are quite high. they've proven they can go after a company like this. the question is, will they hold facebook to account this time? >> in the past, i mean, here's -- i think it's one of the things we're struggling with here in this country. because you have -- again, we're talking about facebook, but amazon, google, there are a lot of tech companies that know a whole heck of a lot more about us then we'd like to think that they do. the idea of regulating these companies, that's a new frontier. we don't know what it looks like. we know what it looks like in europe. but we don't know what the appetite is going to be in this country. a majority of apps on facebook, they require users to give up private data. in some cases, access to phone numbers, locations. how much data does a user actually own? >> well, facebook will say is that anyone who goes on the platform knows that they're entering information that other people are going to be able to see. the owness is a litt

i want to get your take because you tracked that ipo as well, you can see the quarterly value of u.s. techs has been moving higher. it means that tech is able to raise a lot of money right now. what do you think stops that? i think it is a function of the times. it is a volatile market. as we go forward, long-term, i believe these companies need to think long-term and grow long-term. there is plenty of opportunity but keep in mind, they're up against some heavy competitors. amazon, pandora and google are strong. apple music is fierce. time will tell whether they are able to sustain the competition but we will be looking at the metrics of the quarter report. overvalued? still was it overvalued? chad: it depends on what slice of the tech market we are talking about. these outer into that are trading based on subscriber growth. ism not saying that spotify entity, butmate that is where you get into trouble if you are a long only retail investor. if you are a hedge fund, go for it. david: trading versus investing. thank you so much, chad morganlander of washington crossing advisors and prabhat

: one area still front and center is data privacy in europe, particularly europe getting down on u.s. tech it will be interesting if that makes it to the conversation. alix: the kind of agree on that, to some extent. ai battle in the u.s. -- and the whole ai battle. macron wants to get europe involved in ai. he sees the importance in it. there is room to maneuver closer together. on the trade front, i would agree with the guest. europe should not be the focus of our attention. we need to attract europe to the united states. otherwise, europe is at risk to being attracted to eurasia and china's one belt, one road infrastructure program. alix: what about the question of whether macron in europe could be with the u.s. -- david: what about the question of whether macron in europe could be with the u.s. on privacy? is that back on the table? nicholas: we need to think about to somes as being an -- extent, it is issue by issue. the syrian war is important for europe in ways that -- in different ways from the way it is important to the united states. the refugee crisis, etc. if we look at this is

the cteead, china's blocked from importing tech to the u.s. -- exporting tech to the u.s.o shrugchina starts off their sluggish start to the week. this is bloomberg. ♪ rishaad: back to bloomberg markets. i am rishaad salamat in hong kong. haidi: i am haidi lun in sydney. zte has been barred from exporting sensitive technology from the u.s.. let's get more on this story from peter elstrom. the contextting in of the broader trade tensions. why is the u.s. taking this action? peter: cte got in trouble for allegedly fire leading export bans, sending sensitive equipment to a rent and north korea. thatagreed to a settlement put them on probation to make sure they did not have any further violations. the u.s. commerce department is finding out that instead of reprimanding the employees that were involved in violating sanctions a year ago, they found these employees were kept on, they were paid their full onus is, they were essentially rewarded for this paper. the commerce secretary ross came out and had forceful words about this. banning cte from buying components from american t

tech stocks. we saw banks doing very well in the u.s. investors weren't impressed.ext. where are you seeing value right now? the earnings season has been pretty good in the u.s. and the market has been quite lackluster in terms of its response. here are stillks looking for good value in the u.s. the banks have been raising dividend payments. they are very responsive to the u.s. cycle. in a sense, that 10 year bond has inhibited a lot of the risk-taking. i should add it is quite ironic that credit spreads have been narrowing over the last two to three weeks as the yield curve has started to shift upwards. that presumably says to me that the environment for equities is pretty good. it is not something we should be fearing. maybe there's one or two issues, but overall, the performance, very good for equities. are you looking outside the u.s.? if so, where are you seeing value in that regard? again, even though emerging markets are not necessarily homogeneous, the valuations are up for a lot of asia still. we think parts of europe have been offering good value. there's