zte hired former u.s. on the gore-lieberman ticket to conduct a national security assessment of its products. lieberman putting zte's financial interests over the national security of the united states said he'll register as a lobbyist for the company. he met are lawmakers on capitol hill who oppose any deal with zte. this is an extraordinary development and sad one for secretary lieberman. mike pompeo bheegd the kn foreign minister -- meeting with the canadian foreign minister. pompeii owed called china's actions in detaining cat madans unlawful. they were detained in retaliation for the arrest of huawei's chief financial officer. let me start christopher. the idea of lieberman representing zte. what's next, huawei? where does he go from here? >>ed the entire saga of how the u.s. has dealt with zte is pretty disappointing. zte was in a death grip in the u.s. they weren't able to import what they needed to build their products. as part of a trade deal president trump said he would work with xi jinping to u

then zte --gger bigger than zte. it is one of the oldest and most successful chinese tech corporations. one of these truly global champions. we talk about tencent, alibaba a lot, but primarily chinese focused. huawei is a truly global company. david: and it is private, it does not garner as much attention as alibaba and tencent. dataave -- can we get please? $.87 on the dollar here. how do you think this will impact the larger negotiations between the two countries? -- theis not my swiftness with which the chinese have reacted, i would say they are not happy. david: of course that is the daughter's founder -- that is the founder's daughter. relations, strained let's look at sydney. , the price action has been swift. we are seeing u.s. futures fall substantially. is this all tied to this huawei deal? >> i think the markets were already nervous, and already troubled and understanding the differences between the two statements and where they did not match up. maybe not quite believing that te wecan't lease -- deten saw

over trade, but we saw that was not the case with zte. it is possible that this could be used in the negotiation. the te is different from hauwei in that zte was brought to its knees when the u.s. threatened to cut it off for u.s. components. hauwei is not as dependent as zte is, but telecom carriers in the u.s. and globally, many use auwei. it will have tremendous impact from that angle. emily: samm sacks and mark gurman, thank you. coming up, lyft is putting the pedal to the metal when it comes to going public. details behind their quiet ipo ilings next. "bloomberg technology" is livestreaming on twitter. check us out @technology, and be sure to follow our global news network, @tictoc, on twitter. this is bloomberg. emily: lyft is hitting the gas and has filed to go public. they submitted early stage documents for its ipo. lyft is working with jpmorgan, credit suisse to lead the offering in the first have a next year. violations range from 18 to $30 billion. here to discuss is elizabeth who covers ipos for us. the filing is confidential

is it more like the zte scenario?t ban and potentially a big fine that could be slapped on quality --huawei? or is there a sense that there actually is a bargaining chip that is being dangled from the u.s. on trying to get china to negotiate more when it comes to ip theft? i think there are multiple things and we don't yet know of the results of the drg investigation. it would be unfair to comment on that. the u.s. and china have been at each other for a wild. especially if you talk about the telecom side of things, they have been in quite a tight race for the technology leadership. what we see now, it could be sending a message. i don't think that this will go , but this will definitely have an impact on the larger telecom ecosystem and the u.s. is trying to have a larger play in 5g. even as we move forward. 5g, it is going to save time, isn't it? you even have apple saying they are not going to have their next load of five g phones ready. they have been vindicated in decisions like that when they had updated network

we have to start being tough on china when it comes to huawei and zte.s on capitol hill have been calling for that. jon: do you think an executive order is the way to go about this? >> i think that's the way to get the attention of a lot of our private sector businesses. but you have to look at the unintended consequences out there. how do we replace the systems that are already in place in the united states of america and how can we use american companies to backfill without causing too much of a financial constraint. but i think that we have looked at the chinese for quite some time. and they have not been fair tack towards. the theft our intellectual property and forced transfefers our technology. it's time we held them accountable. jon: timing is everything and this might not be the right moment for this. >> there are two things we have to look at. number one, you just talked about this last quarter for china. they saw production and manufacturing and industrial complex downturn. these are state-controlled industries we are talking about. if china co

zte is different in that it was brought to its knees when the u.s.hreatened to cut it off from access to u.s. components. huawei is not as dependent as zte on the u.s. supply chain. telecom carriers in the u.s. and .lobally, many use huawei they will have tremendous impact from that angle. andy: samm sacks bloomberg's isaac stone fish -- mark gurman. another trip to the white house to talk emerging innovations like ai, ig and robotics. facebook's messaging market in asia, home to more than 200 million whatsapp users. we talk about the opportunities and challenges later in the show. this is bloomberg. ♪ emily: tech industry leaders descended on the white house this week to talk about emerging animations like artificial intelligence. administration's trade war with china wasn't officially on the agenda, it loomed large. we broke it down thursday. >> i think it has a lot to do with trade and less with the future of technology, the industries of the future that the purported purpose of the meeting. ceo's wanted to know whether the white house has a plan

so there are -- in one sense huawei and zte help create the standards around technology i.p.s, that's happening this year even with 5g. at the same time they are also going against sort of orders that have been made clear with regards to countries like iran and north korea. >> sir, thank you very much for joining us if you want to join us, you can follow us on twitte twitter, @streetsignscnbc. >>> coming up, we will go live to vienna for one of the most contentious opec meetings in recent history do stay with us. your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life. unstopand it's strengthenedting place, the by xfi pods,gateway. which plug in to extend the wifi even farther, past anything that stands in its way. ...well almost anythi

. >> from using product made by chinese companies like huawei, and zte, he discuss concerns over continued rise of russia and china with former adviser to president trump, christian widen and michael pills bury. >> a wild day on wall street,ao dow up 260, a swing over 870 from session lows. >> president trump returns to washington and day six of a partial government shut down. after spending time with american troops serving overseas. the president turning his attention toward the obstructtionist democrats for their unwilling there is to come up with a a deal to fund his border wall, our fox news capacity -- ellison barber. >> president trying to pressure democrats and convince them to change course and support funding for the border wall. have democrat realize we need border security, there is no official record of party arc , affiliation with furloughed workers, they estimate from 345,000 to 800 thousand. impacting more than a dozen federal agents and departments. >> folks saying, can we have descroandrones and technologies, technology is bells and whistles, in addition to mass numbers o

if i have a zte phone and i'm connected to the cloud, are we really worried about that? yes, i suppose if it's in the hands of an fbi officer or somebody from the cia, but who cares if china knows what i'm putting into the cloud? i guess that's my point. >> they would get priceless stock market advice for free. not fair. david: six days into the shutdown, congress has gone home until monday. we are just a week away from democrats taking over the house. what kind of progress on some kind of deal to fund border security could republicans hope to accomplish in just a couple of days? california republican congressman darrell issa joins us next. shield℠ annuities from brighthouse financial allow you to take advantage of growth opportunities with a level of protection in down markets. so you can be less concerned about your retirement savings. talk with your advisor about shield℠ annuities from brighthouse financial, established by metlife. from brighthouse financial, ♪ ♪ this holiday season, families near you need your help. visit redcross.org now to donate. ♪ ♪ ♪ ♪ the great

zte was feared david: but there was no criminal indictment of an individual at zte. parte criminal indictment of this would be handled by justice. as you have seen from media reports, there is a view that perhaps she engaged in some sort of bank fraud. that would not be part of commerce's enforcement. our part of the enforcement would be strictly did the company violate the iranian sanctions or did they not? or if they did, what remedies should we choose? david: let me ask you something , thewe might overlook united states-mexico-k canadian -- united states-mexico-canadian agreement. when will that be inactive? byit needs to be approved congress. at the executive branch level, it has been done. there is a whole process for getting this through the congress. clearly, that will be dealt with by the new congress. it will not be dealt with in the lame-duck session. there simply isn't enough time under the statutory notice periods under the lame-duck. so the new congress will do what it wishes. i think they certainly should ratify it. it is a clear improvement over nafta.

zte acknowledged the fine, said they apologised and that they wouldn't do it again.t is an enormous fine for the company over breaking those sanctions, and i think many people are looking at this situation now, with huawei, and wondering if the same kind of threat could face that company as well. and it has been a bad 2a hours for the chinese technology giant, dave. yes, it has, absolutely, rico. i mean, this threat of having the accusation at least that it has broken sanctions on this matter, i think, will cause great concern. because of course huawei is a firm that has seen itself not as a chinese technology company but one that wants to have a global impact, not least here in the us. further afield, in global impact, not least here in the us. furtherafield, in different parts of the world, there is scrutiny about its close ties to china's ruling communist party, particularly whether it opens the door to surveillance in some markets. in the uk we have seen a report from the uk's cabinet office, and they said they had only had limited assurances that having huawei s

so they built huawei and zte on the backs of stone technology.and you cannot say that too strongly. huawei and other chinese enterprises that are highly successful and large, concentrated government owned assets. they are built on u.s. technology. commercial technology as well as scientific technology and intellectual property. and that -- just think about this. president trump focusing on this issue, this relationship and -- we would be run over. >> clinton and george w. bush that sort of could not be bothered by this. we had another president, obama, that confronted the chinese but decided to do nothing effective. now we have a president confronting the chinese and doing something effective. people may not like it but clearly, we've got to do with the critical issues of trade and ip theft. lou: those people have to understand something about themselves. if you do not like with the president is doing, china and the relationship, the trade relationship, geopolitical relationship between the united states and china, you just don't understand what

you made the zte comparison.take a hard look and face questions, not just from the democrats, but republicans as well. tom: our expert in taiwan, kazakhstan --kevin cirilli makes it clear zte was transactional. huawei is different. kevin: there is pressure to look at the current geopolitical landscape and face the reality here. number two, in contrast to zte, huawei has not had an aggression push on capitol hill looking for jobs and pushing behind the scenes in the halls of congress about the domestic jobs that are impacted by the supply chain here in the u.s., most notably california. aancine: i heard it from number of quarters that if you are a canadian or u.s. chief executive, you will probably think twice about whether you want to go on chinese soil. this or the administration can do to help with that? i think what is really different is this pertains directly to iran. you are hard pressed to find any lawmaker on capitol hill who thinks that doing business with tehran is in the u.s. best interests at all, so

zte acknowledged the finding and said they apologised and that they wouldn't do it again. an enormous fine for the company over breaking those sanctions, and i think many people are looking at this situation now with huawei and wondering if the same kind of threat could face that company as well. let's get the latest reaction now from china. robin brant is our correspondent in shanghai. china has set a bit more about what it thinks about this move. well, the embassy in ottawa has described this asa embassy in ottawa has described this as a breach of human rights and has called for the canadian authorities to release ms meng immediately. that is very unlikely to happen. make no mistake, though, this isn'tjust a move against the person or company, and huawei is a hugely successful telecoms company. this is a very aggressive message being sent from president trump's administration, in particular the justice president trump's administration, in particular thejustice department, to china. and of course it comes at a crucial time in the ongoing trade competition between these tw

firms from using equipment from huawei and zte. the order could happen as early as the new year. this is according to reuters this is the picture for telecoms in europe. dt is an operator who said they would be considering ruling out huawei technology for their 5g rollout. vodafone is another. all of these telecommaks are trading in the red on the back of that news the huawei and zte story continues to weigh on telecom and the tech sector as well. this is the picture for european telecoms this morning, not so pretty >> thank you neil griffith lambert joins us from moody's it's that time to trualk about 2019 forecasts and the outlook for next year. what should investors think about? >> we cover a broad range, transport infrastructure, project finance and utilities. we published our outlooks for a couple of sectors including european unregulated utilities, which has had a torrid time the last 6 to 8 years. we've seen declining demand with economic shrinkage or weak gdp growth we've seen weak energy prices. we've also seen renewables take an increasing share of generation, which has

, -- the company ate. -- zte. it has been quiet since the revelation earlier this year about the investigation, but this is something that has been developing over that time and comes at an interesting time. whether or not it will throw sand in the gears, trade deals they have been working on -- the for relatedned zte sanctions violations that was eventually partially lifted by president trump after appeal from china warning it would but the company out of business. the arrest of the huawei executive seems to step this whole thing up. couple of notches. there will be a trial in the u.s. and more scrutiny of the company as it has dealt with other companies -- countries under sanction. one of the issues the u.s. is concerned about is the possibility of the company putting a backdoor channel into equipment that could be used to monitor u.s. users. they have denied that. this is a real friction point between the u.s. and china. shery: especially when we are seeing positive trade headlines from washington and beijing.

companies from using telecom equipment made by either huawei or zte this would be the latest move byhe trump administration to keep those two chinese companies out of the u.s. market the white house argues that huawei and zte work at the order and behest of the chinese government and their equipment could be used to spy on americans. >>> defense stocks like many other groups have fallen off a cliff over the last couple of months look at that chart the question is whether a turnaround could be in the works. here's morgan brennan with your 2019 defense playbook. >>> the 2018 year marked the start of the military's rebuilding as the d.o.d. dolled out big contracts, the space force shifted from sci-fi fantasy to on-paper proposal but 2019 may be tougher. peak defense dollars brace for a spending showdown as the pentagon proposes a bigger budget and some officials balk the wildcard president trump who wants a stronger military and more recently called for budget cuts. was should keep spending strong, a u.s. defense strategy focused on russia. a tight labor market a shift to the cloud and

when you see actions the white house considering an executive order banning huawei and zte. british agreeing with us, seeing australians agree with us, if we take steps like that, holding the chinese accountable not just in the united states but have nato work on this. charles: sure. >> maybe there is a way we can hold them accountable -- charles: none of the allies are against the arrest of ceo of huawei. not even democrats. no one said oh, no, another constitutional crisis. >> there are concerns here. there is important to have hard-line on national security issues. to your point, we're seeing china's parliament considering legislation on foreign investments on allowing it. on forcible trade of intellectual property. i think one of the things the trump administration needs to be careful about, china is not a country known for rule of law. >> right. >> what happens in practice is -- charles: you guys don't make anything of the idea, china particularly under president xi wants to be preeminent? they understand certain things come with that, right? there is certain kind, you

there have been hints about other bad acts with regard to zte, you know, zte has now been caught violatingsettlement agreement with the u.s this is twice they violate add settlement agreement at this particular time i'm sure the trump administration is running out of patience because zte looks like a thoroughly bad actor. >> i wonder if the dynamic changes at all now the u.s. stock market is down double digits from the highs. not fully bear market but down 15% on the s&p 500 china has more bullets to stimulate its economy, doesn't it fiscally and monetarily and with the u.s. it was always your economy and market is getting hit. now we are feeling it. >> chinese economists say that beige something running out of bullets, because, you know, they have put so much money into the economy, especially since 2008 that it's not having much of an effect you have the university proves ner beijing saying the chinese economy is growing no more than 1.67% and may be contracting and that corresponds with a lot of anecdotal data we have. we grew what, 3.4% in the last quarter. we'll grow a little less tha

having said that, zte payed a billion dollar fine.hat was a signal to huawei you can't always go against the rules. that was it. charles: that's what they were saying though. that is what the meeting was about. let's keep doing these things, when we have to occasionally we'll pay a fines the cost of doing business. president trump to your point got a lot of pushback on the zte deal. it is interesting because marco rubio and tom cotton both have legislation in there to stop huawei doing any business in this country. maybe he was listening to those political tea leaves as well. >> what is interesting, the zte thing billion dollars was really fine that really paid by china to the u.s. u.s. talks about we're getting this money from china. we're not. u.s. importers paying tariffs. i like the fines better. i'm tired of property property theft. we talked about this before. let's stop it. the fines get the message. tariffs do not. charles: we have factory orders in down 2.1% not much lower than street expected. ism service number was phenomen

lot of outrage that this is just another way of the western governments trying to stock huawei and ztes fined last year in the, from doing well overseas. a lot of angering china about the arrest. what can china actually do to retaliate? at this moment, they don't have enough information of why she is arrested and what is going to happen. her bell hearing has been set for later today in canada, so we will seek what happens there are and of course, if the us officially request her extradition, what happens there. of course, we have heard from the chinese foreign ministry, which also had a very strongly worded statement from the chinese embassy in canada, strongly protesting the arrest. immediately demeaning her release. definitely beijing is not happy about the arrest. the rising trade tensions between the us and china are just one area where president trump's promises are now being judged against reality. last week, general motors announced that it plans to stop production at five factories and cut more than ia,000 jobs. among the plants scheduled to close is lordstown in ohio, and alee

we have seen it with zte. how bad could this get? >> how bad can it get really depends on the u.s., on what they want out of this. there are a lot of similarities to the zte case. in that case the u.s. or canada did not put a senior executive kind bars. case,go back to the zte they were caught, they were find -- fined, they said they would fire senior staff and promise to change the way they do business. they actually reneged on that deal. the u.s. caught them. zte.really scared i don't know that's going to happen with huawei. they might decide to play ball. beijing doesn't see it differently. how bad it could get really depends on what the u.s. wants should --s and how how much beijing wants to make a big deal out of it. she: i have heard president knew about this arrest before he sat down to dinner with president trump. aboutontinued to talk this trade truce. what are you hearing about that? it would not surprise me that president xi has quite a count -- a poker face. i think beijing wants to come to a truce. it comes down to what

this is just another way in which the western governments are trying to stop huawei and of course, ztefined last year in the united states, and doing well overseas. is a lot of anger in china overseas. is a lot of anger in china over the arrest. what can china actually do to retaliate. —— so. over the arrest. what can china actually do to retaliate. —— sol think at this moment, they do not have much information of why she is arrested, a bail hearing has been set for later today in canada, so we will see what happens there and of course, if the us officially request extradition on what happens there at, of course, we've heard from the chinese foreign ministry, we also had a very strongly worded statement from the chinese embassy in canada strongly protesting the arrest, immediately demanding her release. so definitely, beijing is not happy about the arrest. or weights, a lot to get to. —— all right. thank you for bringing us straight up to date. let's get some of the day's other news. the united nations general assembly has rejected a us draft resolution to condemn the palestinian movem

companies and of course, that then would have a big impact on two major companies in china, including zte, that could also impact the slow rollout of 5g here in the u.s. another big issue here, the shutdown. obviously the white house and congress are still in gridlock. lawmakers are back at work today but they are still at disagreement over who is going to fund this border wall if the border wall will be funded. the house already passed $5 billion for the wall but the president still needs seven senate democrats to get on board. senator kcassidy says schumer should not stand in the way of a compromise. >> it shouldn't be hard to get to where the president wants to be. democrats voted for $25 billion for border security earlier this year. in 2006, obama voted for border security. it's not as if this is a foreign concept. you are asking me will schumer move? i don't know that. i don't know his mind. should he move? absolutely. it won't be nearly as far as where he's been before and i think it would be good for our country. reporter: but the president making it clear he thinks pelosi, not sc

we watched as zte and huawei came online and wiped out every competitor.hese companies could not compete with state commercials i nawj. liz: they take our r & d that we pay for and make cheaper copycats. china has a road project, the 2025 project. obama did try to top china. but it's up to china to get our trade laws updated to knock it off. >> this telecom industry was the crown jewel of america. poor trade laws and lack of oversight by congress allowed us to lose it. let's bring back the telephone manufacturing back here. we are about to have 5g. what we have learned is we can't trust the chinese. they say one thing but do something different. i'm hoping congress will step up to the plate here. liz: we hope so, too. this should be hair on fire break the glass. we just cited these on thered countries worried about huawei. china is embedding itself into the 5g rollout worldwide. that's the wearable fitness trackers and taxis. >> they are counting on -- they are taking advantage of the free market. they will undercut price and subsidize to buy the market. w

another investigation did sanctions violations involving zte. when the u.s.laps sanctions and was going to drive zte out of business in the united states, the investigation progress has been fairly quiet up until now. they clearly have gotten some charges. this has been under investigation from the fbi and treasury department since the beginning of the year. this is the next step in that and it is not quite clear how this will play into the larger negotiations between the u.s. and china on trade. ability ofaffect the trade in some of the product suppliest why way huawei why way -- supplies. ,aul: all right, joe sobczyk thanks for keeping an eye on that. there will be more of developments unfolding on the while way chief financial huawei cfo. ♪ ♪ paul: it is 9:30 in sydney, markets opening in 30 minutes time, setting up for a modest bounce. wednesday's drama is where we -- .75%.up point shery: you are watching daybreak australia. let's get to first word news with jenna dagenhart. ceo has: the huawei been arrested on suspicion of violating u.s. trade tensions a

the argument has been that huawei is much more independent compared to zte. so that huawei won't be in the same situation because zte relied so much on u.s. components but that huawei hasn't so that's the argument that the state press has been making and that you're seeing different experts being quoted over an over arguing that huawei will be much safer >> i can't figure out whether this is a bargaining chip to get things that we wanted accomplished in trade or whether we're really worried that once we took everything up to 5g that suddenly anything -- if push came to shove, they could -- >> access anything >> -- they could do scary stuff. it's like a trojan horse would be in every device i don't know it's frightening should we have that sort of paranoid view of what huawei really does to all the equipment it makes >> what i think is interesting it's not just a washington problem because we have been hearing similar complaints you could argue that maybe what washington is doing is emboldening other countries. but there's an interesting report in the ft recen

how do you compare what happened zte and what could happen to huawei? >> sure.huawei,n you look which could become one of the in 5gablers infrastructure, perhaps if there escalation in geopolitics, huawei could be ability to beir able to offer equipment that is infrastructure. but, again, i think 5g is more of later in 2020. if this -- if the fight between were to and china sustain into spring or summer of think it would have a material impact for huawei. it as of right now, perhaps -- perhaps it may have limited impact. look at the biggest share of revenue, it comes from the smartphone. smartphone is weak. as a matter of fact, the weakerone is going to be in 2019 as we transition from 4g to 5g. overall economy is slowing. perhaps if this fight between the u.s. and china were to sustain into spring, summer of 2019, that's when huawei would impacted, specifically for 5g cellulared for communication. terms of wanzhou meng, she's been picked up on sanctions violations, but that's what this is all about, is it? >> i'm not knowledgeable to comment on it. look aty if

zte was sanctioned, receiving a ban from using u.s.-made parts after the government determined the company had violated u.s. sanctions against iran and north carolina. let me talk about huawei and why it is controversial. the company was founded in china three decades ago. it worked in phone switches. then it moved into communications infrastructure. huawei offered cheaper versions of cell phones and smart phones. you could pick up an huawei android phone for about 100 bucks. it was a low cost option. remember, while americans use a lot of apple, the world uses android operating system phones. the company began with plans to expand its u.s. footprint by partnering with american carrier at&t. this plan was abandoned after serious pushback from the u.s. government because of security concerns highlighted b eed by a hearing where chiefs warned against using huawei phones. voicing concern over this company's ties to the chinese government. something u.s. officials warned allies about including the germans, the italians and the japanese. th

japan say the government plans to ban the use of equipment from chinese telco companies huawei and ztethis follows the arrest of huawei cfo meng wanzhou in canada. the white house says the trump administration knew about the arrest before trade talks with china, but that the president was not aware of her detention. how significant is it that the president did not know? >> if he knew and went ahead with those trade talks, that would have been significant. what is really significant now is what this means, what this arrest means, how it complicates this relationship, and there is concern that china could retaliate, not only in terms of further trade repercussions, but perhaps other repercussions. >> after nearly two days of talks in vienna, we have a deal and a larger one than expected in terms of the cut delivered. opec has agreed with its allies to cut production by 1.2 million barrels a day. it looked like it was a deal effectively done by saudi and the russians. when we look at the mechanics of how it happened and the reaction to it amongst some of the other delegates. >> it came do

this comes after a local paper had said that decision was almost all and done to restrict huawei and zte gear. dom? >> a big story with implications on the u.s./china trade negotiations thank you for following that for us >>> america's biggest ceos sounding off on trade turmoil with china here's what they told becky quick at yesterday's business roundtabl roundtable >> i'm encouraged by the dialogue we heard. i think both president trump and president xi are motivated to find a solution. >> it's a minor issue for some companies, but a big issue for others they have to change supply lines, make investments different. >> i hear from many different parties positive discussion that there is a way forward here to work through this 90-day period with china i'm cautiously glad to hear what i heard about those things >> a lot of people, myself included, say we see clouds on the horizon. those clouds are derivatives of trade discussions. >> creates uncertainty as it relates to pricing it causes us to think about where we want to source from we buy more merchandise made in the u.s. by far here tha

essentially, the narrative is huawei and zte need to step back. 5g, they the providers. ericsson step in? these bottom two are are the biggest suppliers for the likes of nokia. the korean supplier up 2%, tells you everything you need to know about that story. tracy: yes, it does indeed. david ingles there. let's stay with market volatility, and talk about how one big bank is dealing with that. barclays managed to turn around its japan business in the last fiscal year after three years of losses, giving it confidence to boost operations and hiring. so can that turnaround continue? can that momentum be continued in the face of multiple market risks? we are joined now by tetsuya kodama, chairman of barclays securities japan. thank you so much for being with us this morning. we are talking about market volatility. goldman sachs says it is handling it well. how is barclays handling it? tetsuya: i think i have to talk about two things. in general, we are handling it well. yes, we had a difficult patch the last couple years, but i think that globally we

one interesting bellwether was the whole zte case. the fact that the united states had the power to completely destroy a showcase, leading edge chinese technology company because they were so dependent, china imports more than $250 billion a year in semiconductors. that's why they have made in china 2025, because they are so vulnerable. that's number one. number two, i think xi has overplayed his hand across the board, not just on trade and investment policy. his activities in south china sea and even domestically with his efforts at digital orwellianism. but i want to talk on the technology issue, i think even though trump's tactics are pretty stupid and can be counterproductive, i don't think anyone disagrees with the complaint list and in fact, we have had support in the wto and europe and japan joined a complaint we filed against coercive transfer of technology, and i think that xi is scared, that's one of the reasons we had this meeting. i think i'm in the minority, i think something positive might come out of these talks, precis

companies from purchasing network equipment and gear from huawei and also zte.dan henninger, "wall street journal" editorial page deputy editor, also a fox news contributor. let's start with the trade headlines, first of all. this is what we call reproachment. this is december, january, february, i'm moving along the calendar as you see. my mind is lost among all the holidays but dan, haven't we been here before? >> we have been here before indeed but our sources at the white house they are generally making progress with the chinese on this trade dispute but the question is, what are the details? i mean the chinese going to talk to a delegation including david malpass, the undersecretary of the treasury next week? and the question is, the chinese will say we don't know exactly what the americans want for us. if it were just the trade dispute, just traded goods, the chinese said for instance, we'll buy more soybeans from american farmers but the american side is saying we want structural changes in the way the chinese do business with u.s. companies. we want chan

the house intel committee actually viewed zte and huawei as national security threats.the expansion of huawei near military bases. i know dagen was commenting before, you can't even buy huawei phones near any military base. dagen: they're banned on all military bases worldwide. >> this is going back six years ago. during the campaign in 2012, this is something that candidate romney used to bring up a lot, the whole idea of economic espionage and threats going on. this is not just an issue that took place the last 24 hours. maria: here's the way the journal writes, a page one story in the wall street journal. for years, washington has allegessed the chinese government could compel huawei to tap into the hardware it sells around the world to spy or disrupt communications. u.s. officials say they're intensifying effort to curb huawei because wireless carriers worldwide are about to upgrade to 5g. dagen: there was a criminal probe into huawei's dealings in iran, it started in april. this is not something that's new. it's ongoing, has been a problem literally for years. the

there was a similar case with zte. he eased the penalties and got them back in business.y were in a sanctions case similar to huawei. trump make a decision as a personal favor from the chinese president who asked him. i think the big question is, what trump do this with huawei? the seams opened a the door to that possibility. i do think people are a little nervous about presidential intervention in such a case. shery: we are hearing we could beijingg acting -- saying they may change their -- 2025china 2020 5 to 2035. a lot of people are questioning if it would be a big concession. china saying it will move targets by a decade to 2035 to achieve this high-tech dominance could just be repackaging a few goals they have made to give it a stronger time horizon. it is not like there is a specific goal post you can pass the state now i am the dominant player in ai or robotics. wally have heard from people who have knowledge of what the white house thinks is they will not be fooled if china is trying to repackage or rebrand some initiatives to make it look like they are going to

>> you're right, zte as you remember was temporarily banned from doing business in the u.s. because they were selling some of u.s. technology to iran and north korea. david: right. >> so similar type of violation that huawei's cfo was arrested for in terms of violating iran sanctions. i don't think that is the real reason. i think the real reason is security and cyber espionage. david: they're giving me a wrap, but i have to ask one more question. do you think it happened the day president trump met with president xi, do you think this was an accident on our part? the charges placed against this woman, dealing with iran another company, a subcompany of huawei, that dates back to 2007. they could have arrested her anytime in the past couple years. they chose the day trump was meeting with xi. was that an accident? >> well, it is fun to speculate but look, they're enforcing the law. she was arrested in canada. i don't think it was correlated to the g20 summit and okay straighted by president trump's trade team. maybe we'll never find out. we'll never know. david: reminds me of