six weeks ago after z.t. broke u.s. sanctions by selling products to our rand in north korea but then in recent days mr trump has decided to spare izzie t. even allow them to get back into business in the us and some apparent arrangement with president g. jinping of china now members of mr trump's own political party are saying the madness has to stop in frontal opposition as u.s. senator marco rubio the florida republican who says congress will take steps to prevent z.t. eat from being able to do business in the united states all of this continues as a trade war tit for tat with trying to continues here to help sort us a third all out is radio and t.v. host steve wallace ok steve you've got to explain what the deal is with z t e it's a national security concern and a corporate security concern which is why we have these sanctions and they violated it but explain the circumstances well. has long been suspected it's a chinese multinational telecommunications company have long been suspected of espionage using the routers

and hasn't been resolved the commerce secretary wants to keep that separate from the z.t. about what to do with effort. betty: thank you, joe. top story in ur ."day's edition of "daybrick available on mobile and the loomberg anywhere app. still ahead, that may be a delay ebreham.lease of trade tensions and violence in the middle east. this is bloomberg. ♪ >> we are counting down to market opening this morning. it was a pretty lackluster stocks on wall street. .1. re hong kong.man in betty: and i'm betty liu in new york. outlook for the rising tensions in the middle east and . tween the u.s. and china which seemed to ease a bit today. c.e.o. matt toms joining us. fore we get into some of the geopolitical tensions roiling the market. what's also roiling the equity is this eyes -- rise in yields and i want to points to chart we have here. how yields, an see government debts, whether in u.k. or even in japan, surprisingly, and of course here in the u.s., they're going up and that is -- hat's some synchronization happening that we hadn't seen before. seems to be rallying the ma

that's that's the latest and rubio seems to think that if they pass legislation in the house saying z.t. e has to go that even if the president vetoes that they will have enough people two thirds to override that veto it's a crazy circumstance where the president just flipping on these things which brings up another question stephen is how do you negotiate with a you know a deal maker in chief who trades their changes their positions all the time well i think this whole. and i think the tariffs which we'll get to that he says they won't be any would they have now there will be some it's all part of a grand scheme for us will we need china china needs us more than we need them in the long run they have a three hundred seventy five billion dollars trade surplus with us they steal our intellectual property trump knows this he's looking for bargaining chips he's looking for for ways to prevent and fix both those those problems but he also needs china for north korea he needs them for other geo political reasons they're building islands in the china sea they're doing all kinds of things so t

telecommunications companies technology companies that are suppliers to z.t.so there are jobs that are affected here but relative to the overall u.s. china trade balance it's small i mean what the bigger issue that's at stake right now is the chinese threats to put tariffs on us poor u.s. soybeans and that will have a significant impact on odd farmers in the midwest many of whom are trump supporters. what is north korea's role in all is well look obviously getting the north korea situation resolved will require not only the cooperation of south korea japan but especially china which is north korea's strongest supporter at this period of time and i think what the president is trying to do is to ratchet down the trade pressures with the chinese in an effort to secure greater cooperation with the chinese with regard to north korea and again so there's many moving pieces in all of this and whether all these pieces can come together is it remains to be unseen at this point remains to be seen at this point now we hear from north korea the not going to discuss doing

president donald trump placed sanctions on chinese electronics giant z.t. that almost ruined them but no trump is promising to be more lenient and help them back into business provided china scrapped plans to impose sanctions on u.s. agricultural imports. it is well known that the present president wants to reduce the bilateral trade gap. i think the way to do that is for china to lower barriers across the board in the us export now and do it that also creates growth their growth keeping these barriers down is important for u.s. farmers they would be hit hardest by the chinese tariffs announced in retaliation to trump's plans tariffs on chinese steel and aluminum imports farmers are important voters for donald trump and he'll need their support at the mid-term elections come autumn. the world trade organization says the e.u. has been illegally subsidizing european plan. that could prompt a retaliatory measures with billions of dollars from the united states the ruling is the latest twist in a dispute that dates back well over decades at the center of the di

just one month ago things looked pretty grim for a chinese phone maker z.t. had to be denied access to american suppliers it was forced to halt its core operations then out of the blue came out tweets that could be itself. after engineering the company's demise donald trump pledged to help showing an unprecedented concern for chinese jobs. unsurprisingly the chinese government was swift to voice its approval saying it thought quote highly of the development that left u.s. commerce secretary wilbur ross with the tricky task of explaining the u. turn. c t i did do some inappropriate things they've admitted to the question is there alternative remedies to the one that we had originally put forward and that's the area we will be exploring very very promptly the inappropriate things he's referring to relate to z t e illegally shipping us parts to iran and north korea critics say trumps new softer stance towards china is in comprehensible and will hurt u.s. business and my worry after this thing is china or for a some small term palea to say ok we'll buy your produ

sanctionon chinese telecom giant z.t. effort.ast month, the company was banned from buying vital u.s. components for its phones after washington acced it o lying re-- repeatedly to u.s. officials and failing to punish ioployees forting u.s. sanctions against iran and north korea. we, our correspondents david willis is in washington for us. david, s analysts were suggesting that if he hadn't limited the ban that z.e. could have gone under. reporter: yes, that was a what the chinese meanwhiled and z.t.e. is one of china's largest telecom equipment manufacturers. they make smart pnes, tablets and mobile phones and so on. now, they were banned recently by the trump administration for buying a u.s. - u.s.-made components for seven years but failing to basically make good on previouss violati noveling sales to iran and north korea. asou mentioned, that threatened to put z.bue. out of ness all together. about 65% of z.t.e. phones, for example, use pieces of equipnt made by qualcomm, which is a huge chip maker here in the united states.

it says ease the restrictions on z.t. effort. company says it's lost more an $1 billion since this man on suppliers and it's basically crippled the un-- country. it's obviously not divorced from the trade talks and i think it's really important that -- also just overarchingly, it's an interesting point that national security is the ground for a lot of these trade actions by the trump administration and that's the worry with z.t.e. by a lot of lawmakers that perhaps it's a national security risk. you do see all this confluence between foreign policy, trailed policy and what's happening with china. lisa: confluence is a great word. personnel is policy. we know the point person on china trailed discussions. who's the point person on north korea? is it still mike pompeiio or sit john bolton -- pompeo or is it john bolt season >> that's a great question. we expect mike pompeo is still heavily involved. he's the only person who has met kim jong-un. met him twice in the last few months. he clearly has a good channel to north release --

you know the z.t. story has been one of the more confusing chapters of this chinese american trade saga and trump himself hasn't been a huge clarifying help you remember that in april u.s. companies for banned from selling parts his e t e after it violated u.s. sanctions by shipping to north korea and iran and then last week trump tweeted that he was working with the chinese government and he was worried about the loss of chinese jobs so certainly sending mixed signals they are now fast forward to this week and there were reports that trump had reached a deal with z t e that they were going to be left off easy and exchange for in exchange for trade concessions but he since deny that but has said that he will leave the door open to an agreement that sees a change in board and a billion in fines although that is likely to be opposed by u.s. lawmakers who are worried about espionage risks and that the u.s. isn't credibility when it comes to enforcing sanctions so the short answer is that we will see. you

said tuesday that he would push for legislation to prevent sanction waivers for chinese telecom giant z.t. as mr trump had suggested the a twitter senator rubio tweeted early yesterday suggesting that the trump administration quote unquote surrendered to china on z t e an amendment barring any sanctions waivers for chinese telecoms was attached to a bill in the senate banking committee meanwhile germany's economy minister peter all meyer warned that they trade war that starts over steel and aluminum could quickly escalate to involve cars textiles and food a temporary exemption for the european union companies from the new u.s. tariffs on metals will expire on june first and myers says europe will insist that the threat of sanctions be dropped before agreeing to begin negotiations with the u.s. in brussels the used trade commissioner said she does not expect the exemptions to continue after june first. civil servant striking in france went on a nationwide strike on tuesday the third national work action this year the strike is an aggregation of over one hundred thirty separate work at. act

telecommunications companies technology companies that are suppliers to z.t. so there are jobs that are affected here but relative to the overall u.s. china trade balance it's small i mean what the bigger issue that's at stake right now is the chinese threats to put tariffs on us poor u.s. soybeans and that will have a significant impact on farmers in the midwest many of whom are trump supporters. what is north korea's role in all is well look obviously getting the north korea situation resolved will require not only the cooperation of south korea japan but especially china which is north korea's strongest supporter at this period of time and i think what the president is trying to do is to ratchet down the trade pressures with the chinese in an effort to secure greater cooperation with the chinese with regard to north korea and again so there's many moving pieces in all of this and whether all these pieces can come together is it remains to be unseen at this point remains to be seen at this point now we hear from north korea the not going to discuss doing awa

telecommunications companies technology companies that are suppliers to z.t. so there are jobs that are affected here but relative to the overall u.s. china trade balance it's small i mean what the bigger issue that's at stake right now is the chinese threats to put tariffs on us poor u.s. soybeans and that will have a significant impact on farmers in the midwest many of whom are trump supporters. what is north korea's role in all is well look obviously getting the north korea situation resolved will require not only the cooperation of south korea japan but especially china which is north korea's strongest supporter at this period of time and i think what the president is trying to do is to ratchet down the trade pressures with the chinese in an effort to secure greater cooperation with the chinese with regard to north korea and again so there's many moving pieces in all of this and whether all these pieces can come together is it remains to be unseen at this point remains to be seen at this point now we hear from north korea the not going to discuss doing awa

said tuesday that he would push for legislation to prevent sanction waivers for chinese telecom giant z.t. as mr trump had suggested the a twitter senator rubio tweeted early yesterday suggesting that the trump administration quote unquote surrendered to china on z t e an amendment barring any sanctions waivers for chinese telecoms was attached to a bill in the senate banking committee meanwhile germany's economy minister peter all meyer warned that they trade war that starts over steel and aluminum could quickly escalate to involve cars textiles and food a temporary exemption for the european union companies from the new u.s. tariffs on metals will expire on june first and all the wires says europe will insist that the threat of sanctions be dropped before agreeing to begin negotiations with the u.s. in brussels the. hughes trade commissioner said she does not expect the exemptions to continue after june first. civil servant striking in france went on a nationwide strike on tuesday the third national work action this year the strike is an aggregation of over one hundred thirty separate w

commerce department barred z.t. ease access to u.s. suppliers over alleged violation of sanctions against iran and north korea leaving the smartphone maker to put a halt to major operating activities mr trump mimicking larry the cable guy tweeted that he had ordered his commerce department to get it done get er done which presumably means the administration will rescind the z t e export ban mr trump seems eager to ease trade tensions with china after months of provocations especially in the context of his upcoming summit with north korean leader kim jong kim has been meeting regularly with chinese the chinese a key allies ahead of the summit a bipartisan chorus of critics including former g.o.p. primary rival senator marco rubio of florida and u.s. senator chuck schumer of new york the leader of the senate democrats panned the president's attempt at economic diplomacy. the price of bitcoin has fallen again hitting a three week low over the weekend and trading at around eighty two hundred dollars which is sixteen percent below the recen

commerce department barred z.t. ease access to u.s. suppliers over alleged violation of sanctions against iran and north korea leading the smartphone maker to put a halt to major operating activities mr trump mimicking larry the cable guy tweeted that he had ordered his commerce department to get it done get er done which presumably means the administration will rescind the z t e export ban mr trump seems eager to ease trade tensions with china after months of provocations especially in the context of his upcoming summit with north korean leader kim jong kim has been meeting regularly with chinese the chinese a key allies ahead of the summit a bipartisan chorus of critics including former g.o.p. primary rival senator marco rubio of florida and u.s. senator chuck schumer of new york the leader of the senate democrats panned the president's attempt at economic diplomacy. the price of bitcoin has fallen again hitting a three week low over the weekend and trading at around eighty two hundred dollars which is sixteen percent below the recen

e is word that the trump administration has reached a deal to help chinese telecom giant z.t. at the behest of ye chinese government. the "nk times" and others report that the company will have to pay a substantial fine and hire u.s. compliance officers. last month, the trump administration banned z.t.e. from buying u.s. technology for violating sanctions on iran and north korea. iran today demanded guarantees of economic incentives promised under the 2015 nuclear deal. otherwise, it vowed to withdraw from the agreement, as the united states has done. the demand came as iranian officials met with the nations that are still in the pact. meanwhile, in st. petersburg, russia, president vladimir putin warned that the u.s. is sowing instability by quitting the nuclear deal. >> ( translated ): if siternational agreements are ed and then revised every four years, it would offer zero crrizon for planning. it wilte the atmosphere of usrvousness and lack of trust. >> woodruff:a remains a party to the iran nuclear rmreement, along with britain, china, france and y. president putin also r

president donald trump placed sanctions on chinese electronics giant z.t. that almost ruined them but now trump is promising to be more lenient and help them back into business provided china scrapped plans to impose sanctions on u.s. agricultural imports. it is well known that the president wants to reduce the trade gap. i think the way to do that is for china to lower barriers across the board in the us export now and doing that also creates growth better growth keeping these barriers down is important for u.s. farmers they would be hit hardest by the chinese tariffs announced in retaliation to transplant tariffs on chinese steel and aluminum imports farmers are important voters for donald trump and he'll need their support at the mid-term elections come autumn. similar poll is executive director of the german chamber of commerce in china first of all you have a lot to do with german companies operating in the country but tell me a little bit about the chinese first. are they really playing along with trump's game right now i mean it's really hard for me

my amendment proi had by thes purchasing z.t. -- pro hit -- trohib itses -- prohibits purchasing z.t.e. and other companies. i urge my colleagues to protect our nation's communications networks from foreign adversaries and support this amendment and with that, mr. speaker, i yield back. the chair: the gentleman yields back the balance of his time. the gentleman from texas reserves. the gentleman from california is recognized. mr. garamendi: mr. chairman, i'd like to yield two minutes to the gentlelady from new mexico, ms. grisham. the chair: the gentlelady from new mexico is recognized for two minutes. ms. lujan grisham: thank you. new mexico is home to the air force research laboratory that develops groundbreaking technologies that support our men and women in the armed forces. these technologies often have a range of commercial applications that can re-energize domestic manufacturing, create high-paying jobs, and increase economic development in our state, which has the second highest unemployment rate in the nation. high-speed internet servers, g.p.s., electric vehicles, and even mi

commerce department barred z.t. ease access to u.s. suppliers over alleged violation of sanctions against iran and north korea leading the smartphone maker to put a halt to major operating activities mr trump mimicking larry the cable guy tweeted that he had ordered his commerce department to get it done get er done which presumably means the administration will rescind the z t e export ban mr trump seems eager to ease trade tensions with china after months of provocations especially in the context of his upcoming summit with north korean leader kim jong kim has been meeting regularly with chinese the chinese a key allies ahead of the summit a bipartisan chorus of critics including former g.o.p. primary rival senator marco rubio of florida and u.s. senator chuck schumer of new york the leader of the senate democrats panned the president's attempt at economic diplomacy. the price of bitcoin has fallen again hitting a three week low over the weekend and trading at around eighty two hundred dollars which is sixteen percent below the recen