according to sources, zte bought around one third of its components from us businesses like microsoftd phone sets the major carriers like at&t. at it seems like zte is apologetic and knows it has made mistakes and is working towards improving its procedures. 0k, working towards improving its procedures. ok, thanks a lot and good to see you. as we reported yesterday the geneva motor show is just taking off. one of the most influential leaders in the global auto industry is carlos ghosn. he asked him what he saw as the biggest challenges facing those companies. the main challenge is what happening at the level of the product. on top of this, there may be incentives for countries to maybe go from a free trade to add the dimension of what they consider as being fair trade. but most of the trade agreements are very old and the reality today is very old and the reality today is very different from what it was. so i'm not so worried about it. this is not what keeps me awake at night. i am much more focused and attentive to what is taking place at the level of the products. you spoke about so

zte is china's second largest tt telecommunication firm. the department of commerce is committed to insuraning that ju and -- >> you're listening to wilbur ross there announcing from the commerce departmentment the settlement with the chinese phone maker. they violated american rules and a guilty plea though those charges, we will speak to wilbur ross later here on "squawk alley." also, house republicans introducing the plan to replace obama care, and the president talking about reducing drug prices. we're speaking to joe bernestein, and bill george, a senior fellow and medtronic's ceo. here we go again with the drug makers at the bottom of a stock list. no specifics, but president trump says there will be more kp competition and lower prices for americans. what do you do if you're a drug maker? >> i think it was a mistake that every other area of commerce and american life. and some of the drug makers, thelesser known ones, have taken advantage of this. i think they were raising pri s prices. >> since bill clinton signed wells we form into

zte is accused of buying us components and putting them into zte equipment and shipping them off to iranorea, it included routers, microprocessors and servers. zte is accused to have bought the parts in the us, these are restricted for export because of their potential for military use. the chinese company also sent about 283 of these shipments to north korea. 0n company also sent about 283 of these shipments to north korea. on top of that, they lied to us officials while the officials were investigating the company. zte does say it acknowledges it made some m ista kes say it acknowledges it made some mistakes and it is working prards z towards improving its procedures. back to you in london now. thank you. insurers rose after congress introduced the bill intended to replace the affordable care act. let's look at europe. the main stock markets fell on opening. investors are waiting, of course the uk budget. some more positive production data from germany did provide some reassurance after some poor factory numbers came out yesterday causing concern about perhaps brakes being put on europ

zte was contrite. ceo admitted they had wrongdoing and that company detailed a long list of changes they will make inside the company to scrutinize more carefully how they comply with these regulations. of $1.2 billion. what are the allegations? >> that is the question. zte is a chinese company and how it falls under u.s. export rules is important. buys components from companies in the u.s. including qualcomm, and packages them into their technology and exports them. the allegation is, they exported equipment worth $32 million to iran without proper approvals from the u.s. government to ship that technology out. yousef: what does this mean for zte going forward is a business trying to grow? >> it is interesting to see reactions. shares are up as much as 9%. they see it as a positive move because the company is getting uncertainty behind it and terms of dealing with u.s. authorities on this issue. the investigation has been going on for a while. it is important to them to have access to the components f

moving to other business news making headlines, chinese telecommunications giant zte will be paying morears and pleading guilty to criminal charges for violating sanctions against iran and north korea. the company is accused of buying us components, putting them into zte equipment, and then illegally shipping them to those two countries. brazil‘s economy contracting by 3.6% in 2016. the country has been in recession for two years, and the economy is now eight cents smaller than it was in december 20 1a. once one of the fastest—growing emerging economies in the world, brazil was hit by a downturn in global commodity markets, and a political crisis which has undermined investor confidence. in india‘s dig cities about 85% of primary school children and up to 95% of high school kids attend extra classes after school to help boost their chances of getting into university. but the classes cost money, and for some households, it isa cost money, and for some households, it is a strain. and stress. as part of our‘s it is a strain. and stress. as part of our ‘s list of kids series, we met two fami

has tried to make an example out of zte.aw government officials, including wilbur ross, come out aggressively to make an example of the company to show what they will do when companies violate the laws. was contrite, admitted they had done wrongdoing. they had a long list of changes that would make inside the company to scrutinize more carefully how they will respond to these allegations. billion.yment of $1.2 what are the allegations behind this? peter: that is the question. chinese company, and how it falls under u.s. export rules is important. the company buys components from companies in the u.s., it including qualcomm, and packages them into technology and exports them. they exported equipment worth $32 million to iran without getting the proper approvals from the u.s. government to be able to ship that technology out. yousef: what does all of this mean for zte going forward, as a business trying to grow? peter: it is interesting to see investors reaction to this news. asres today are up as much 9%. they see this as a p

. -- zte. up data aroung 50 times faster than the sort of speed you might get on your ad phone in yuor pocket. we are not actually allowed to touch or use these phones though and that could have something to do with all the cables out the back. i'm not sure if they are part of the phone or part of the demo. it could be some time yet before you get your hands on these sorts of speeds. over the past few years, the air that we breathe in our cities has become a big issue. air pollution is an invisible killer and it is something that many people from politicians to tech companies feel needs urgent attention, but what to do? all next week, the bbc is going to be looking at the issue and possible solutions in the so i can breathe season. ahead of that, we've be looking at some of the gadgets that might help us to track the pollution around us so we can choose what to do with that data. it only took five days this year for london to reach its yearly air pollution allowance. people were warned to reduc

zte buys components from u.s. companies and had been accused of reselling the goods to iran.secretary wilbur ross last week told cnbc the white house would be focusing on enforcing existing trade laws. we expect an official announcement later on this morning. then we'll talk to the commerce secretary around 11:45 eastern time. >> i thought it was great when he said that. there are a lot of news in the books and we don't pursue the laws. also, another thing we don't talk a lot about. the globalization polity. it is not like every company feels it has been beaten to death because of our relationship with globalization. the vast majority love it. >> they do. did you read the editorial from navarro yesterday? he doesn't see the world that way. >> he doesn't. the key trade adviser to the president. >> i do think you'll get a -- you'll see companies -- i mean, look at the drug companies. they've done incredibly well overseas. obviously, they do a lot of single payer but it's been great overseas. i met with the ceo of mylan. number one in france. france! >> the opening bell here. t

zte has agreed to pay at or so as partlion of the settlement.at happens over the next few years. they also pled guilty to three fell in 80's -- three felonies. the u.s. took a tough stance on this under the trump administration. you had jeff sessions and wilbur ross speaking out publicly about zte wouldng that is th be an example of how tough they will be on companies that violate u.s. export laws. rishaad: what are the allegations then behind these payments? zte is a china company, so the question is how did they fall under the u.s. regulations. they buy components from companies in the u.s. and use those components in the equipment they shipped to other places. with the u.s. alleges is that they were exporting equipment from the u.s., including u.s. components, $32 million in u.s. and shipping those two iran without getting the proper export approvals to do so. you mentioned that shares were up. toestors seem to be reacting the idea that this removes some uncertainty. continueld be able to to get components from these key suppliers, and second

zte will plead guilty and pay as much as $1.2 billion.us a little bit more background here and what are the terms of this settlement? >> this is a big settlement for zte. they are agreeing to pay $1.2 billion. they are also pleading guilty to three felonies, including violating export laws and obstruction of justice here, so it is a big deal for the company. it is clear the trump administration is trying to make an example out of the company. commerce secretary wilbur ross held a press conference where he said that this is an example of how the administration will hold account for violating export laws. even though it began earlier, they are using it as an example of how tough they plan to be going forward. moving big, off by 7.5% over the last two days. u.s. production moving higher, stockpiles moving higher. ceo of continental says more shale investment could chill the market? is this capitulation? >> no, i do not think we are there yet. so what is happening? we have built up a massive long position in oil. it stayed that way over sever

this morning zte said it would , plead guilty and pay nearly $900 million to settle the case. in washington, d.c., divisions erupted within the republican party over the gop plan, unveiled monday, to repeal much of the affordable care act monday, including its expansion of medicaid. factions within the republican party that had hoped to repeal obamacare all together revolted against the bill monday, calling it obamacare lite. conservative groups, including heritage action for america and the koch brother's group americans for prosperity also , condemned the bill. if more than a dozen house republicans refuse to vote for the bill, it could fail to pass the house. other republicans spent monday backing the plan, including speaker of the house paul ryan, who vowed tuesday "the nightmare of obamacare is about to end." utah republican congressman jason chaffetz also tried to defend the bill tuesday in an interview with alisyn camerota on cnn, but instead sparked controversy. >> you know what? americans have choices. they have to make a choice. rather than getting that new iphohone

laws on selling american technology to iran and must pay a fine of $1.2 billion, zte's agreement endsncertainty about the ability to do business in the u.s.. the company admits three felonies. right, let's have a more considered look at these markets. agoust opened 30 minutes for hong kong and shanghai, moving to the upside here as well. we have this asian-pacific selloff easing, equities getting a boost. tokyo market moving to the upside there as well. to higher for the nikkei two five. this is what we have because we assetsd demand for haven . looking at what is going on the kospi .2% to the upside. here we go. 56 93 on the asx 200 in sydney in the green. that is what we have at the moment. coming up, a look at what is going on with the federal reserve, janet yellen speaking later, investors looking for clues as to the future and the timing of future rate hikes and what she has to say as well. that is on the way. ♪ haidi: this is "bloomberg markets: asia." i am haidi lun in sydney. rishaad: i am rishaad salamat in hong kong. china's annual blowout bringing together executives and le

this is a zte phone that was released a couple of months ago that lets you to take 3d photos with theecause it has a lenticular display. which means your left eye only get left information and the right eye only gets right eye information. if you hold it right at the sweet spots, you get a 3d picture. if you hold it outside the sweet spot, everything goes crazy, i wouldn't recommend that. that is it for click in the mobile world congress in barcelona. i hope you've enjoyed it. feel free to let us know what you thought of our 360 lives on twitter @bbcclick. be kind but be honest as well. thanks for watching. see you soon. good morning. saturday was a day of mixed fortunes. sunny for some, wet for others. let's have a look at some of the weather watcher pictures that we have to illustrate the point. a pretty miserable day across parts of aberdeenshire. the rain relentless all day. further south, some lovely spring sunshine and warmth to go with it. highs of 13 degrees close to london. yes, it was beautiful here, but the rain continued with over an inch across parts of northern scotland

. >> this is a big settlement for zte. they are agreeing to pay $1.2 billion.y are also pleading guilty to three felonies including violating export laws, obstruction of justice. it is a big deal for the company. it is clear the trump administration is trying to make an example out of the company. rossrce secretary wilbur held a conference where he said it is an example of how the administration will hold companies to counts for violating export laws. even though it began earlier, they are using it as an example of how tough they plan to be going forward. >> oil prices up by 10.5% over the last two days. u.s. production moving higher, stockpiled moving higher. more shale investment could kill the market. is this capitulation? >> no, i do not think we are there yet. so what is happening? massive, long position in oil. that way over several weeks. what we are seeing in the markets, i do not think they are anticipating a massive plunge in prices. it is down from the level we saw last year. they are not expecting a rally. it is not capitulation, a recapitulation of

attorney general jeff sessions say zte lied to investigators and their own lawyers.lobal news 24 hours a day from 26 hundred journalists and analysts in more than 120 countries. this is bloomberg. >> north korea expected to be at the top of the agenda when china's minister speaks at the national people's congress. he will bring his annual briefing with tensions on the rise. tom mackenzie is outside the north korean embassy. what can we expect to hear? >> we are hoping to hear more from the foreign minister about their start on the latest missile tests. from now up until this point we have heard more from china about their opposition to south korea to applying this missile defense than we have about the missile tests. hopefully, more detail on that when he starts to speak in a couple hours time. clearly, china has a lot of leverage over north korea. they account for the vast majority of trade, about 70%, with its major -- neighbor. they also provide food aid to the country. they have banned imports to north korean coal in february. they were linked to the apparent ass

maria: zte doing business with iran. a chinese company. >> chinese company, yes. chinese owned.hey are doing tales with iran. how difficult is that when you have to put a levy on a company but it's also connected to the chinese government. it opens ul a bigger ball of wax? >> well, they confessed to the wrong-doing. they were erasing emails every single day to try to cover their tracks an we nailed them and they've admitted it and they'll be more cases, not just an export, but we are going to enforce imports as well. maria: dig bale. >> billions of dollars of duties that have been imposed but never collected. it's so hard bringing a trade case and absurd that you don't make sure you're going to be able to collect the fines at the end of the day. all that is going to be fixed. maria more we want to talk about priorities around trade and certainly mÉxico is one of your big priorities. >> yes, it is. maria: but this week we are talking about the budget. here is what mick mvanetold me last sunday in terms of the present's priorities that we will hear wednesday, watch this. >> the pr

also the morning the secretary of commerce held a press conference announcing chinese zte corporation has agreed to a criminal and civil penalty of $1.9 billion after violations of sanctions, this is the largest ever impose bid the commerce department bureau of security, and pending proveme approval of federal judge, it would be the largest fine in forfeiture ever levied by the u.s. government in such a case. this settlement tells the world that the days of violating u.s. trade laws are over. president trump is commit today ending the disrespect of american laws and american workers, back to the schedule for a second. the president received his daily intelligence briefing had lunch with senator lindsey graham. who will continue to be a important partner, with the nomination of judge gorsuch. the president is leading a discussion with senator cotton and purdue and members of the senior staff, they are expect today discuss the merit based immigration reforms mentioned at last week's address. he will meet with the house deputy whip team focused on repeal and replace of obamacare, there w

wilbur ross, announced a president conference that chinese zte, record high, criminal civil penalty of.19 billion after the company illegally shipped telecommunications equipment to iran and north korea in violation of sanctions. this civil penalty is the largest ever imposed by the commerce department's bureau of industry and security, and pending approval from a federal judge the combined penalties between the commerce department, the department of justice, and the department of treasury would be the largest fine in forfeiture ever levied by the u.s. government in such a case. this settlement tells td of the days flouting u.s. sanctions regime or violating u.s. trade laws are over. president trump is dedicate toddies respect of american laws and american workers. back to the asked all for a second. this morning the president also received the daily intelligence briefing. he had lunch wi senat lindsey graham of south carolina who wbe an important partner as president's nominee for the supreme court, judge gores -- gorsuch begins a nomination process. he isç leading discussion with se

this morning the secretary of commerce wilbur ross held a press conference announcing that chinese zte corporation has announced a record high penalty after the company illegally shipped telecommunications equipment to iran and north korea. this is the largest ever imposed by the commerce department's bureau of security. pending approval from a federal judge the combined penalties between the commerce department, the department of justice, and the department of treasury would be the largest fine in forfeiture ever leveed by the u.s. government in such a case. this settlement tells the world that the days of flouting u.s. sanctions, regime or violating u.s. trade laws are over. president trump is committed to ending the disrespect of american laws and american workers. back to the schedule for a second. this morning the president received his daily intelligence briefing. he had lunch with lindsey graham of south carolina who will continue to be an important partner as the president's nominee for the supreme court judge gorsuch begins the nomination process next week. he is leading a dis

department blocked shipments one year ago after claims that zte had been to iran. the u.k.n the next few hours initiating two years of negotiations with the european union. 44 years of ties will be mayveled after theresa hands over a letter invoking article 50. may will address house of commons. the first of china's biggest banks has reported results. the agricultural bank of china raised to almost $25 billion, almost 4% above what analysts had expected. cost decline and the bad ratio fell. turkey's government has criticized their arrest of the senior executive of one of the largest state owned things on torges of conspiracy to sell iran. as 1.2% fell as much following news of the arrest. global news, 24 hours a day, powered by more than 2600 journalists in more than 120 countries. i am paul allen. this is bloomberg. betty: thank you so much. the trump administration has moved on from the failure of health care and is now focused on tax reform. id hooverned institute. he was an adviser to marco rubio for his bid for presidency in 2016. joining us now from singapore where he

zte telecom giant has agreed to pay the u.s. $182 million for violating iran sanctions. >>> and clean up is under way in missouri after two tornadoes touched down last evening. about two dozen people were hurt but none have life-threatening injuries. >>> jam-packed two hours of "power lunch" coming your way. brian sullivan is with us today from houston. brian, what do you have on tap? >> we've got a lot on tap, tyler mathi. sen, thank you so much. we have a bunch of ceos for our cnbc audience. conoco phillips, pemex and bp. not just pricing but political strategy, border swruchlt tadju. plus earlier today, we did a live, exclusive interview with the chair of saudi aaramco, opec compliance, whether or not russia was cheating and maybe that $2 trillion ipo. a lot more to do. >> looking forward to it, brian. meantime, health care front and center today. house republicans finally unwrap their plan. president trump backing the proposal and taking a new swipe as well. drilling down on the gop's health care plan in a moment. let's start with the area of market that's moving the most. meg tir

chinese telecom giant zte has been handed a fine for violating sanctions in north korea.

stuart: i need to ask you about america, putting a fine on that japanese cell phone equipment maker, ztei'm sorry, a chinese company. >> chinese not japanese. stuart: i'm sorry, sir. a billion dollar fine or thereabouts for breaching sanctions. it looks like commerce you, mr. secretary are going right after china. >> we're going after violations of any aspects of our trade regimes. in this particular case, they were violating sanctions. there are plenty of violations of trade agreements themselves and of wto rules. and we are going to be very harsh on enforcement. >> will they be harsh in return? >> they've been harsh in the beginning because that's why these measures are needed. one thing to be aggressive, it's another thing to do events that are illegal. >> what leverage do you have on the chinese? >> well, a billion dollars is pretty good leverage, i think. >> okay, what else? >> well, there are limits to what we can do. we're not going to send gun boats to the harbor in-- off hong kong, so, there are the rules, there are the measures we can take. we will be taking them, we will be en