the sale of any zte products in the united states. but inexplicably, president trump, after talkingst tough did a total reversal. once again it seems resident she has outfoxed president trump. there is absolutely no good reason that zte should get a second chance, but with this deal the president has inexplicably thrown that my lifeline. president xi must be laughing all the way to the forbidden palace. he is once again taken advantage of president trump. on an issue vital to our security. many believe zte could be a mechanism for spying onli our military and on lots of different economic parts of the united states. china has shown no reluctance to do that in the past, and we are just for no reason, having gotten nothing in return. this is serious mistakes, 180° turn away from the presidents promised to be tough on china. donald trump should be aiming his trade fire at china but instead he inexplicably aims it at allies like canada and europe. when it comes to china despite his tough talk, this deal with zte proves that president trum

on top of that, zte, of course violated u.s. sanctions multiple flagrantly, tried to cover it up, so there is no reason to let them off the hook. emily: joining us from new york, we have "bloomberg technology" selina wang, who has been following the saga. does this mean these penalties will, indeed, be reversed on zte? selina: the senate passed a bill that would reinstate the ban. this complicates the earlier agreement trump had made to ease sanctions as long as it paid a hefty fine and rearranged some of its management structure. this does not necessarily mean the ban is going to be reversed. this has to be passed through the house. any compromise has to be agreed upon by the house and senate, and then, at the end of that, trump still has to sign it into law. many asian analysts think this is just prolong the process for zte, and in the end, the ban will still be eased. there is bipartisan support for this bill and it is the first time congress has stood up to trump on a trade situation, but the end outcome is still unclear. em

i'm not a big zte fan.zte makes a fine cell phone but they're a little too close to the communist party of china for my taste and on top of that they cheated. zte violated our sanctions and thereby helped north korea. you want to read exactly the terms of the settlement, but color me doubtful. >> it's a billion dollars, 400 million in he is crow. they have to fire their board apparently or change them over and there's some kind of monitoring there. does that get past -- >> it's not the money. it's the fact that zte helped kim jong-un and lied about it and it's the fact that zte, some would argue they are a state controlled or at least influenced company and what does that mean? that means that they're pretty close to the communist party of china. i wouldn't buy a zte telephone. i'm not saying it's not well made, but i wouldn't buy a zte telephone and allow my information, potentially, to be shared with president xi jinping and his party. >> what's it tell you that the trump administration is entering this d

underthe deal, zte conspiring to evade us embargoes on iran. the deal, zte would be struck off the sanctions list but would still have to pay a $1 billion penalty. but will the deal convince sceptical us lawmakers? 0ur report outlined the deal is —— detail of it. he was on television laying out the details of the deal and they include the fact that zte will have to pay a $1 billion fine to the us. they will have to put aside $400 million into an escrow, essentially a rainy day fund that they will use to pay for any future violations. the company will also have to replace its board and executive team within 30 days, and the us will get to install its own compliance team, a complaints team of its choosing, within the company to make sure the rules are being followed. the commerce department, wilbur ross, the commerce secretary, is saying that these are some of the strictest terms ever slapped on to a company which has violated rules like this and that it should serve as a warning to other companies who may consider trying to violate us trade laws

because zte violated u.s.ctions, selling its products to iran and north korea, caught, fined, then the company lied about punishing those violators. on top of that, security experts have warned that zte phones are a national security threat. zte's majority shareholder is the chinese state run company. in april, the pentagon, remember, banned sales of zte phones on u.s. military bases to protect against spying. this deal reverses a commerce department ban that would have essentially put it out of business, the president, remember, he tweeted he was concerned about chinese jobs being lost. this is -- it is clear, the zte is an important piece of ongoing trade negotiations with china. this clears the way for more discussions of china buying more american products to shrink the huge trade deficit, the trade deficit the president hates. but it raises the question, kate, has the white house exchanged a trade win on zte for a national security risk. >> fascinating. this is not something that many republicans on capit

i spoke with a source who works frequently with zte.his came as a bit of a shock to those working with zte. the crux of this negotiating the compliancef component and the restructuring is something the u.s. had asked for as far back as the obama administration. there appears to be an additional $1 billion fine in addition to the $1.19 billion settlement in spring. the restructuring is exactly what the u.s. asked for last spring. the congressional reaction, republicans are very uneasy about this. in 2012, they cited national security concerns. people like senator marco rubio coming to the forefront of this issue and urging the president to reconsider because of national security concerns and because they are ignoring the concerns of the u.s. joint -- te doing business with iran and north korea. what do you think the chinese response will be if the u.s. holds on to this? xi jinping asked president trump to reconsider this whole thing. david: what is the crux of this thing? the sanctions on north korea and iran, a larger trade deal or is i

first the trump administration has reached a deal to get zte back in business. , zte has to pay a fine billion.$2.3 it also agrees to management changes eliminating a key sticking point. the deal has caused a bipartisan backlash with senators warner and rubio railing against it on the basis of national security. johnson backed them up to glisten. >> stealing our open electoral property and using it in their country, those are all things that i think this company historically has been guilty of. we have to approach it in a very measured and cautious way because clearly china has on surpassing and replacing the united states in the technological leader of the world and we should not help them do that. emily: selena talked to us about this zte deal. a lifeline for the company. they will have to pay a massive fine. they want to change their management and allow u.s. compliance officers into the company to monitor what is going on. regardless of these changes, this is a win for zte. the company will not have to shut down. they will have access to critical key components that they need to ma

well, brianna, zte violated u.s.roducts to iran and north korea, got caught, was fined, and then the company lied about punishing the violators. on top of that, you mentioned the national security concerns. experts in the u.s. and britain have warned zt

it finds zte a billion dollars.them put $400 million in escrow, should they violate sanctions again. your republican counterpart senator tom cotton of arkansas said, quote, the only fitting punishment would be to put zte out of business in the united states. is he right? >> he is right and that's why i teamed up with him to offer the amendment which is now included in what we call the manager's package and i'm confident that that's going to pass the united states senate in the coming week. the commerce department had the right penalty back in april when they announced that because zte had not only violated the u.s. sanctions policy against north korea and iran once, but they did it repeatedly and then when they were caught, they said they were going to come clean and instead, they engaged in a big cover-up and did it again. that's why the commerce department did what it did and that would be the penalty today except for the fact that president trump then tweeted out that he wanted to help zte and help -- help save j

he pledged to continue monitoring the behaviour of zte.akers are all divided by the deal, saying it does not go far enough and does not paint the huge chinese firm in the same brush as some of america's allies, canada and the eu, which you were talking about, also accused of violating america's national security. they blocked zte‘s access to american suppliers, saying they violated a settlement. xi jinping asked the us to reconsider the punishment and essentially it had forced zte, which we know as a major employer in china, to suspend major operations, which is why the us intervened and president trump at the time said he was doing xi jinping a bit of a favour. decides that, we have the chinese trade surplus with monthly numbers. they widened to $25 billion in may. not music to the use of donald trump. thank you very much indeed, sharanjit leyl. thank you very much indeed, shara njit leyl. and thank you very much indeed, sharanjit leyl. and now we go to sydney. that is where the aviation industry has been holding its annual get—together t

well, brianna, zte violated u.s. sanctions, sold products to iran and north korea, got caught, was fined, and then the company lied about punishing the violators. on top of that, you mentioned the national security concerns. experts in the u.s. and britain have warned zte phones are a national security threat. zte's majority shareholder is a chinese state run company. in april, the pentagon banned sales of zte phones on u.s. military bases to protect against spying. now, this deal, this deal just announced, reverses a commerce department ban that would have essentially put this company out of business. and then remember the president tweeted he was concerned about chinese jobs being lost, so a big shift in the treatment of zte. it is clear zte is an important piece of ongoing trade negotiations with china. the dispute out of the way, this particular zte dispute out of the way, it really clears the way for more discussion of china buying more american products to shrink the huge trade deficit, but it raises the questi

it includes a total penalty of $1.7 billion against zte, and zte repl the board and executive team been mike, good to see you. thank you being with us. the commerce department through the spokesperson said tuesday that no definitive agreement has been signed by both parties. where do you think we are on this? >> they seem to have a deal in principle. whether anything has been signed is the question. in terms of the penalty that thay, that includes additial purases wou make of u.s. goods, and we want -- the united states wants contracts signed. not just promises. >> that's the context around th isn't j a deal with the commerce departmtnd zte. this has larger implications about trade between china and the united es. >> this is really important. at its face, you could say this is absurd. the united states government, the commerce department were going after zte. if the united states wants china to play ball on trade, do they need to do something to appease the zte situation? >> it looks le they do. they announced a lot of changes as they try to bring the economy into a more integrated trad

tell us about zte! no more north korea for today(!)ned with this company, effectively, it became a bargaining chip between the united states and china in the us china trade war, the company back in april was effectively crippled because of a band that was slapped on american supplies for seven years, not allowed to sell any of their goods to zte and remember at least one quarter of the things that they make, products like smartphones and network equipment, most of that comes from the united states, they we re comes from the united states, they were pretty much put out of business, and that happen because zte did not end up disciplining some of its executives who basically invaded us sanctions on iran and north korea, things improved, because as i was saying, this company became a pawn between washington and beijing, president trump waded in to save the company, still many changes that they will have to deal with ahead. thank you very much, part of a stellar team, the most busy week they have seen for some time. let's look at the market

gets 30%ttom, oclaro of the revenues of light zte -- supplying zte. lot of the markets have access to those doing well. in theyou had swings markets, stocks. basically, the nasdaq ending lower after its record rise. perhaps the big rally was too fast.oo let's go into the tech decline. you had apple that was down. also, netflix. these were down in a big way. facebook falling to 2.5% at one point. let's take a look at some of the software and chip stocks for what i call a tech tank chart. they you see the size of the decline. you can find these on gtv. pain,s called a world of trade tensions have coincided with a slowdown in equity growth.here is the story . haidi: we had a little bit of -- counting down to the latest opec meeting. what are investors looking at in terms of signaling? su: haidi, i guess i need glasses. let's go into the chart. the opec meeting will happen in about two fridays. siaking to a saudi-rus soccer meeting for clues. viewise as there is a showing the opec meeting may actually fail to come to a consensus on an official output incr

began pushing back saying they oppose anyl th china and zte. one of the bigs, when one of the american companies do business in china, there's pressure to share trade secrets. lawmakers like marco rubio says it's a threat to national security. rubio tweeting this deal with zte may keep them from selling to iran and north korea. that's good but it will do nothing to keep us safe from corporate and national security spying that is dangerous. congress will need to keep america safe from china. spying, using our phones to spy. chuck schumer tweeted donald trump should be aiming his trade fire at china. instead, he ames it at allies like mico and europe wh it comes china, this deal withzte proves the president just shoots blanks. it's important to know that zte among buying all of our chips is the fourth largest seller of smart phones right here in the united states. that's key. shep? >> shepard: trace gallagher, thank you. the fbiid place a spy in the trump campaign. that's according to several republican lawmakers and the evidence seen by fox news

even if it passes, it doesn't mean lights for zte. zte deal. passes, it doesn't mean lights for zt e. while president trump is hoping the deal can still be revived, it also threatened to impose an additional 10% tariff on $200 billion worth of chinese goods. let's get more on this. this raises the tension between united states and china. this. this raises the tension between united states and chinam does feel that way. this comes in addition to up to $50 billion worth of tariffs on chinese goods which we re of tariffs on chinese goods which were announced over the weekend. it only took 12 hours to turn around and slap tariffs that were a mirror image on the us as well. this really does seem like an escalation and it comes on top of tariffs, aluminium and steel, washing machines that we had earlier this year. this really does feel like an escalation in the trade tensions between the two countries. it's very difficult to know who it is to hurt. supply chains are very tangled in this day and age. a lot of opponents might come from china. it become

and banning zte.ut as it turns out, shep, they were wrong. >> shepard: why is the white house being sopful to this chinese company? >> it's interesting. you listen to wmakers. democrats and republicans are trying to really highlight the nationalecreat. on the democratic side, that's starts at the top. >> we seem to have a great deal of bipartisan support and we democrats feel very strongly and i think a lot of republicans do as well that that should stay in the ndaa bill and become law. it has a darn good chance that that will happen. >> democrats and republicans on capitol hill consider this defense bill a must-pass measure and it's due on the senate floor in the next couple days, shep. >> shepard: peter, thank you. a republican senator slamming wmakers in his own party accusing him of blocking his bill because they're afraid of the president. he said the gop is acting like a cult. senator bob corker tennessee has been pushing to limit te president's power over trade after the president slapped taxes

zte and huawei. they think they could potentially be arms for chinese ability to do espionage, perform espionage in american citizens. when we have the tech companies that have more of our data and private information than ever before, it's really cause for concern on capitol hill and they have to explain that. liz: you know, also let's get to the story. bring it up again, google still under fire for labelling a trump-supporting republican state senator as a bigot on a search screen. you will see the photo there. google under fire for a search result showing nazism as one of the ideologies as the california party. the material was incorrect and wasn't their fault. we haven't really seen an apology from google about these problems that keep popping up, chris? >> not much of one, and that politician got in touch with google and complained, they said to take it up with someone else. wasn't until the drudge report picked it up that it went anywhere. google keeps algorithms secret, of course because they

that is about equal to a full year of operating income in zte zte -- zte. to fire their whole board of directors, all of them have to go, according to the deal that they signed. the need to get rid of all of their senior management. anyone in a senior vposition or higher. any of the staff are executives who were involved in the deals that sold equipment to iran or north korea, that is what got them in to trouble. we are talking maybe 50 different people could be caught up in that in there for fired from the company. that is quite a lot. that is a lot of management that is decision-making gone from the company in 1000. that would make it very difficult for zte to get running up and quickly. anna: good morning to you. is, bute that this there are negatives here for the united states. is that because of the politics? >> yeah. that, this will be painful for zte. you think about 40 executives who have been in the industry for a long time, they have experience and connections in the industry, their connections to beijing. ey are not going to be going off and play

zte shares dropping like a stone?d that has wiped out about 3 billion us dollars off its market value as it resumed trading on the hong kong stock exchange after it agreed to pay up stock exchange after it agreed to pay up to one point four billion dollars in penalty to the us government. the company was crippled when a seven—year supply ban was imposed on the firm in april for breaking at 2017 agreement after being caught illegally trading with iran and north korea. the van stopped zte from buying key base components. confirming details of the deal saying it will replace the board directors before the orders signed by the us. it has become highly politicised and a key focus of bargaining between washington and beijing as both sides look to avert a major trade wall. —— war. we will have to wait and see how this plays out going forward. thank you and lovely to see you and we will talk to you more about zte. later today, we expect the cost of borrowing in the us to rise for the second time this year. all the numbers poi

shery: the trump administration and struck a deal with zte.ld we see, stop that, given that senators are trying to legislate that. congress will be grappling with this issue before going to a final vote. yesterday, the trump administration weighed in and said they pushed back against the idea of what was trying to reverse trump's decision on zte. we heard from lawmakers suggesting they will work with a file a lawmakers but also with the administration to finding rise -- to find a compromise. we have been hearing a lot from senators. they have been volunteering information because there's no shortage of opinions. there are senators like marco rubio who says that zte is a security threat. and others who seem more willing to compromise. we will see how that legislation proceeds. it does not look like the administration -- it will probably use its power to make sure that the legislation to roll back his decision does not go forward. amanda: thank you. comcast's disney and where off -- and comcast square off. this is bloomberg. ♪ shery: this is blo

many of us were concerned that zte got an agreement that allowed them to move forward. i privately hoped that somehow president trump had gotten a great concession from china to be cooperating with us in north korea. the fact that china is now calling for the relief of u.n. security council sanctions against north korea suggests they are not moving forward with us in providing the pressure essential to keeping kim jong-un at the table to accomplish anything of substance. we all hope and pray that diplomacy will work. but diplomacy done on a whim without preparation and without deep study and without a clear agenda means not really diplomacy but entertainment. it is my hope we will change course. i very much look forward to senator menendez' leadership on our foreign relations committee to hold this administration accountable for delivering a meaningful strategy for engaging with our allies, for holding north korea accountable to the very nice statements made at the summit, and to standing up for human rights. thank you. >> three excellent statements by my colleagues. qu

talk me through this zte deal. part to mollify the chinese before we talked to the north koreans and is it or is it not, from where you sit, a good deal? >> well, let me start with the second question first, and then i'll get quickly to the first one. first of all, they broke u.s. law. and they were going out of business and so, it is the most intrusive deal of this sort that has ever been leveled on a chinese company, $1 billion fine having external monitors, enforcement agents in your company, having to change your management, almost unheard of. but does it actually fix our problems with the chinese companies engaging inn espionage it doesn't but do we have a strategy from this to build to get to that i think that's the question i'd be asking. how is it connected? the timing is very interesting and it's hard for me to believe it's not connected i don't have personal information that it is, but the fact that they are solving this issue just a few days before they go to kim jong-un, the issue with the talks is thes

how much of a setback is this for zte? adds another layer of uncertainty for a company hoping to start trading again. we will be watching that stock closely today. when you saw in the senate was a vote of 91-4 on a bill that included an amendment that would see penalties reimposed on the chinese telecom company that locked the company out of buying tech from the u.s., including chips. it would still have to work its way through the house of representatives and may be watered down, but comes after the agreement that the chinese government and zte came to with the commerce department on a $1.4 billion fine, changing management, and how compliance offices are overseeing operations in the country, underlying not just the republican and democrat pushback in terms of trump's decision to come to a deal on zte, which trump said was a favor to zeke ee, but also a broader set of concerns when it comes to , butnal -- favor to zte also broader set of concerns when it comes to other issues. rishaad: with the traits that in the backgrou

. >>> shares of zte plunging the telecom giant resuming trading following safsnctions alleviating. >>> and seattle rolls back its employee head tax. it's wednesday, june 13th. "worldwide exchange" begins now. ♪ >>> we won't let anything pass you by, don't worry. good morning, welcome from wherever in the world you may be watching so glad you're joining us on this busy wednesday. let's check on your investments. stock futures, they may be the only thing not that busy they are flat to slightly higher yeahthnorth korea summit is over, but the market is waiting on two things, the federal reserve's interest rate decision today and maybe more importantly for the world the ecb's decision on rates and whether to pull back on qe of its own. that decision tomorrow a bi48 hours for your stock investments. we'll get more on that in a bit. right now to your top corporate story. it's a big one a federal judge ruling in favor of at&t's $85 billion deal for time warner. it's a huge win for at&t it's a bit of a rebuke for president trump who sought to block the deal let'get to hampton pearson for more

get out of the zte deal? would more u.s. products be contingent on tariffs. >> this is not just about zte but about presidential power. in congressarrative on a democrat and republican side that tariffs and trade policy should go through congress, and not be done with executive fiat. shery: especially when you consider a company like zte violated u.s. sanctions repeatedly and lied about it. what message would that send to the rest of the world? >> exactly the point they are making. a group of senators are trying to come to the president and trying to talk him out of taking this executive action on zte and allow for a toughening or legislation to make these kinds of exceptions go through or be subject to congressional approval, rather than allowing the president to do it by himself. david: over the years, congress has largely ceded this area to the president and let the president do what he wants, is there a prospect there could be a structural change because of these actions and congress could take back the responsibilities?

. >> i want to ask you about zte.k you in a bipartisan way have been along the leaders in this and pushing back on the trump administration for cutting a deal to try to resurrect zte. you have said you believe the deathenalty for this chinese telecommunication company is good policy. why are they trying fromp this company up? >> it's an arm of the chinese communist policy. for eight years zte ranwild. e became the fourth largest telecom company many the world. when the president took office, he began to change that. they negotiate it down to life without parole. i think the death penalty is the right penalty for zte behavior. >> are you confidence that the president won't veto essentially the defense thorauthorization b. >> i am. we have many months to go on this. i'pleased that a hundred senators agreed with me. we still have to negotiate with the house. whatever happens on this bill, the american people need to know that companies like zte are a threat to our national security and a threat to their privacy. >> would

zte. the company settling criminal and civil charges last year in connection of the violation of u.s. sanctions. zte also under the agreement required to change its entire board of directors and executive team within 30 days. our first guest tonight, unveiling that agreement today saying it imposes the most strict compliance that the united states has ever had on any foreign country. joining us tonight, wilbur ross. great to have you with us. and let's begin with the most controversial part of this, i believe, and that is the zte agreement, a national security offense on the part of zte and something, if you will, of a civil solution in the form of the monetary penalties. your thoughts. >> well, it's more than monetary penalties. part in part is in addition to the money, in addition to requiring a change in the board, and a change in the management, we have made them agree that they will adopt our code of compliance and pay for people we insert into the company to monitor that compliance.

zte was being penalized for u violatin. law but the trump administration worked out a deal to keep the company in business. one analyst told me the fines are huge for zte. the current and previous finad up to $2.3 billion, the rsequivalent of three yea of profits. investors are also worried about survive.f the company will senior management needs to be overhauled within 30 ds and the deal might fall apart altogether because congress is trying to block the rangement. commerce secretary wilbur ross attempting to sell the deal t skeptical lawmakers but fund managers here are not feeling optimistic about the zte prospects especiallh the trade relationship with the u.s. forbu "nightly siness report," i'm eunice yoon in beijing. >> some of the upgrades and atwngrades. we begin with , their rate was cut to sell with nathanson, a day after that deal that required time warner to be approved. the at&t dead load postmerger. $28. the stock dropped 6% to $32.22. square shares dograded to neutral with buckingham research and cited t stoc

china's zte reportedly inking a deal with america that would put it back in business. anr airways chief executive apologizing for the sexist remarks that he made yesterday. it is wednesday, june 6th, and "worldwide exchange" begins right now. ♪ start me up ♪ all you got, you got >>> all right, good morning, and welcome from wherever in the world you may be watching. i am brian sullivan. if you're wondering about our ofrance at the top of he beaches show, remember, today is the 74th anniversary of d-day. all right, on this big day, stocks look like they could rise again. stock futures indicating the dow will move up about 90 points at the open the s&p and the nasdaq are also at highs we're on record-high watch for the nasdaq as well bond yields, though, creeping back higher as well, slowly sort of ticking back up toward that 3% mark. the benchmark ten-year is at 2.94%. you can see yields moving a little higher across the spectrum there asia also higher are you noticing a trend here, folks? asia up, japan, hong kong, domestic china, and in europe as well, green across th

-china trade talks is zte.rg tech managing editor brings us up to speed in this story from tokyo. >> zte doesn't usually draw much attention. this year it has landed in the headlines like never before. and not for reasons it would like. they ran into trouble for violating u.s. laws restricting the sale of technology to iran. they called for the company to pay as much as $1.2 billion. in april, the u.s. commerce department said the te had not lived up to the terms of that settlement. instead they paid full bonuses to employees and lied about it. that led to a seven-year ban for zte -- they ceased operations weeks later. then, donald trump came to zte's rescue. he said he had china's leader would work to get zte back into business and fast. that was seen by china as the two companies avoiding a trade war. the company's chairs reserved trading wednesday after a two-month freeze. cte is not in the clear yet. the u.s. congress is working to stop trumps rescue effort even at home. they should not expect beijing to ba

senate voted overwhelmingly to reinstate penalties for zte. defining trump, and potentially upending the deal the president struck with the company. but the president is not backing down. we here from senator mike brown. a shakeup at intel, the ceo is out. the chipmaker reveals he had a consensual relationship with an employee, a violation of company policy. first, to our top story. u.s. lawmakers push back against president trump's attempt to save a chinese telecom maker. senators passed a bill to restore penalties, cutting off chips and to the components it needs to build smartphones and network equipment. senator chris van hollen spoke to bloomberg to explain why lawmakers moved to pass what could be a death sentence for zte. >> zte poses a national security threat to the united states through their telecommunications network. on top of that, they violated u.s. sanctions multiple times, flagrantly. they tried to cover it up, so there is no reason to let them off the hook. emily: but president trump is not backing down, here is wilbur ross,

company in china they ban zte from business, the stock tanks.hen trump says after talks, let's reinstate zte. now the u.s. senate issuing another smackdown to zte and that stock is taking a hit >> i think this will make china look inward and say we see xeens li companies like zte are still relying on u.s. technology, but what can we do now this will spur thought on how china spurs its own semiconductor business and chip activity chips for 5g technology will speed up because of this >> arjun, stick around i want to bring in cyrus you have some great ideas on a market day like today where we have to roll with it and talk about trade. you said something as you sat down which is, brian, trade, trump, tariffs equals semiconductors what did you mean by that? >> this trade war between the u.s. and china, it's all about the made in china 2025 program, it's about china moving high-tech. one area where china is weak is semiconductors that's the one area where america is strong and one area where the american administration is concerned that it could lose

and zte have reached an agreement and they retain the power to shut down zte.ate from other issues and goes on to say zte will pay a $1 billion fine and keep $4 million in escrow. david: and a change in management, presumably. i want to come back to you, george, for a moment and come to the -- turn to the summit. we have the g7 tomorrow and the summit between kim jong-un and north korea and president trump. abe visits president trump, what does he want to get out of that? herge: in the long-term, wants to make certain the korean peninsula does not become a threat to japan. it is the buffer japan has is worriedna and he in any negotiation with north korea, north korea is going to deal,r an extreme withdrawal of u.s. forces in south korea and the defense treaty and he does not want that to happen. abe is depending on the united states remaining a strong presence on the korean peninsula. we are -- what we are all waiting on his if the north koreans agree to abandon nuclear weapons, what is the price they are going to pay and abe is a trying to shape the american p

says it has reached a deal with zte.me relief, but certainly pressure on this decision from trumps domestic audience. >> absolutely. deal as laidf the out by the u.s. commerce department are a fine of 1.200 -- $1.4 billion will be imposed. andmanagement will change it will be compliance officers inserted into the business. an a 10l effectively be year probation during which the commerce department can reenact that severe penalty blocking zte from accessing u.s. technology. they did that in relation to committed that zte around sanctions against north korea and iran. this is welcome news for qualcomm, the u.s. chip provider , and also china is overseeing a with nxp merger semiconductors, so we should expect that to move quickly. analysts expect zte to start trading in 2-3 weeks. a significant benefit for that chinese company and does move the trade conversation further. the oppositionto this agreement has faced in washington from congress, democrats and republicans both, chuck schumer on one side, and marco rubio saying o

emily: i want to ask you about zte.e trump administration does do this deal to save zte, are the national security risks that the u.s. government has associated with this company -- are they still valid? is zte as much of a national security risk as it once was? greg: you know, i have gotten more into this discussion with the administration as late as last night, because i was concerned and have been about zte and these other companies or any foreign company and their role in the u.s. and what they do and how they do it. based on what i have learned, i'm a little more at ease that they would put in place requirements and audits and things that would make sure independently of what these devices do or do not do. if that's the case, it fixes it a bit, but i think we have to be on guard. we know the kind of cyber attacks our country faces from bad actors all around the world, whether it is china or north korea or iran or you name it. we have to be vigilant. they are playing for keeps in these other countries. often this is

it was with zte. >> zte is an arm of the chinese government, which is never a good thing. maybe they reforms wilbur put in place might work. like the intelligence community i will be skeptical of doing business with these people but i will have a open mind. reporter: some republicans willing to wait and see what happens with this democrats not so much. senator chuck schumer released a statement today saying there is absolutely no good reason that zte should get a second chance. this decision mark as 180-degree turn away from the president's promise to be tough on china. now in this settlement agreement, for this enforcement action, zte pay as billion dollar fine, $400 million set aside in a fund, an escrow fund in case there are further violations. on top of the 900 million the company already paid. in addition to increased steps that the commerce department has never had in terms of they're requiring a compliance officer, multiple compliance officers to be approved by the commerce department and report to the commerce department for 10 years. the ban also on buying u.s. t

forchina's zte was fighting survival.will look back on how the company came back from the brink and whether it is really in the clear as mobile trade tensions rise. this is bloomberg. ♪ retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. emily chang. at the heart of the u.s. china trade talks is the te. bloomberg tech managing editor brings us up to speed in this story from tokyo. plaxico zte doesn't usually draw much attention. this year it has landed in the headlines like never before. and not for reasons it would like. they ran into trouble for violating u.s. laws restricting the sale of technology to iran. they called for the company to pay as

but that cheating is a secondary point for zte critics in congress.y say the company is part of china's intellectual property theft and china's global espionage network. the president cutting this deal knowing, and we see it already, that both democrats and republicans in congress are saying, we will try to stop you. >> color me skeptical that there will be a serious revolt in congress. there will be a lot of sternly worded statements. i think the democratic leader is saying the president want to make china great again. the question is, is speaker ryan going to put something out there to try to challenge the president? is majority leader mitch mcconnell going to take him on? i think no matter what the agreement is on tariffs, they're not going to try to legislative stop him. so call me step cankeptical. >> the one time they did that was in russia. that was a sanctions issue. that was a policy that really motivates a lot of conserve tifrs atifconservetives and republicans. aside from any private agreement they have with the president, free trade in chi

we'll hear from senator chuck grassley is very critical of zte. and more the president shielding that company or let some of his republican colleagues think shielding that company. the president is apparently urging those senators who might be leaning one way or the other to give him time on this, not to come down hard and fast and sanction this chinese telecom concern which has been sanctioned in the past. that it is all part of a process the president says. again we'll get the read on that and the trade fight as well. we're down on the belief we're not out of the woods when it comes to trade back and forth. let's get the read from john layfield and christine short, rich karlgaard from "forbes." begin with you, inwith you. a bit of stabilization today, a short-lived rally, if you think about it from our highs we've given up 350 points over the last roughly 24 hours on the idea this is escalating. do you think it is? >> i don't. i think the second round of $200 billion trade threats that trump issued a day or two ago is a bluff. i don't think this

apart from the billion-dollar fine, what are the implications for zte?> well, $1 billion is an extra fine on top of fara have to pay. and to put that in context, that's about equal to four years of operating income at zte. beyond that, the implications are that they have to fire their whole board of directors, all of them have to go, according to the deal they signed with the u.s. department of commerce, and they need to get rid of all their senior management. anyone in a senior vp position or higher. in addition to that, any staff or executives involved in the deals that sold equipment to iran or north korea. that's a got them into trouble in the first place. i calculate we are talking 30, 40, maybe 50 different people could be caught up and fired from the company. that's quite a lot, and would make it difficult for zte to get up and running quickly, even if the sanctions are lifted against them by the u.s. department of commerce. >> has agreed to buy envision health care. envision it's a provider of physician services to hospitals. it's been a long tim

so all change again for zte. good to see you, monocle. so all change again for zt e.tions giant, its shares have taken a nosedive today, they lost $1.1; billion in value. as you havejust today, they lost $1.1; billion in value. as you have just explained, at the moment the future of zte rests in the hands of us lawmakers who have just passed this defence bill. it poses serious barriers to what president trump had arranged with the chinese presidentjust two months ago. if we go back, the us commerce department had banned companies from selling goods to zte as punishment for violating sanctions, doing business with iran and north korea. however president and north korea. however president and a mac through the chinese president a lifeline because there we re president a lifeline because there were people who were going to be out of work, thousands of people u nfortu nately of work, thousands of people unfortunately at this point it has come down to republicans versus democrats, they still see it as a security threat. what holds now is that the house of representatives h