even in terms of criminal developments filed against huawei? >> we need to make sure we keep those issues separate. it was most important when the president made comments saying perhaps if there is a trade agreement, he might be able to intervene in this legal case. and has cast suspicions clouds on the integrity of the american legal system. we have always prided ourselves on saying that our legal system is above politics, separated from politics, and when the president makes that statement, people all around the world and especially the people in china, think perhaps the prosecution or the indictment, the charges against the cfo of huawei were politically motivated. his comments were most unfortunate. we just need to make sure we keep those things completely separate. >> what about the way that beijing has responded and detained canadians? a canadianrd ambassador being vocal and fiery huawei allegations. is china missing a golden toortunity to demonstrate the international community that they are taking these claims quite seriously? >> i thin

get because they won't give it up but what we are doing, the administration very effectively limiting huawei's access to our allied markets and shutting them down, closing doors on them. that's how you deal with it and you hit them with the cyber stuff as well. that's pretty good. >> bret: i want to talk quickly about venezuela. the now disputed president maduro end of the opposition leader guaidÓ. >> of the united states is prepared to support the venezuelan people to achieve freedom and democracy. >> this is a man-made catastrophe by the maduro regim regime. >> this campaign has been prepared to justify a coup d'etat in venezuela that has been financed and actively supported by the donald trump administration. if the government of the unite states intends to intervene, they will have a much worse vietnam then you can imagine. >> the pressure in support of the united states is important and all the other countries in the world that support us, we are sure that we are starting to change. >> bret: we aren't doing a blockade, we aren't surmounting them. maduro is still there, he's getting suppo

government laid out charges against the huge chinese telecom company huawei and accusations against e chief financial officer. focus will go back to that next week. their extra processes due to be going on in canada. it makes it difficult. u.s. officials te ed to say the separate from the talks. i don't think the chinese necessarily see it in those terms. but it goes back to this idea that america is worried about china's industrial ambitions, and they see their ld in theynology as somethin want to hold onto. jane: how enforceable would any deal be? what would stop china reneging on its commitments when tariffs were lifted? michelle: americans have been burned by this in the past. if you go back to the obama period, one of the issues that keeps coming up again and again in these negotiations is thede theft of tecrets from american companies, particularly done by cyber theft. there was an agreement during the obama years that china would step back from that. that happened for a while, but it didn't last. agreement that we do see between these two sides would have to include enforcement

huawei as yet has not really been discussed, but it will be. >> yes, it will be. donald trump sort of dismissed the case saying we will talk about it. we have not talked about it yet and this is a small component of the overall trade relationship between china and the united states, but it has sort of between chinad and the united, with the third country being canada. it goes back to allegations of intellectual property theft. we will see where those negotiations go and if that could potentially derail any kind of structural deal we might see before march 1. >> what is interesting is that the u.s. trade representative has really been hammering the point that we need a viable and enforceable deal. we heard from ambassador lighthizer again today. verse take a listen. do if wee much work to are going to have substantial progress. we focus on the most important issues, which are the structural , intellectual property protection, agricultural services issues, and enforcement, enforcement, enforcement. both sides agree that this agreement is worth nothing without enforc

trade rep, robert lighthizer, says the arrest of huawei executive has no impact on the trade talks with china. we will continue to monitor this for any other developments. as you know, the president and lighthizer are meeting with the chinese rep now. >> we are building a lot of wall, you know. i'm not waiting for this committee. by the way, if you go to tijuana and you take down that wall, you will have so many people coming into our country that nancy pelosi will be begging for a wall. she will be begging for a wall. david: president trump earlier today responding to nancy pel i pelosi's statement that there's no wall money in the budget. she hasn't started begging for the wall yet, chad. >> not yet. i did not officially put that call into her office because that's not the case. no. she is not. >> has there been much conversation about the letter that alexandria ocasio-cortez sent about cutting dhs spending? has that been a big topic of conversation amongst the people prying trying to work on this? >> this will be one of the issues. when you talk to appropriators, members working on t

smiles hide the fact that beijing is fuming over washington's prosecution of chinese telecoms giant huawei but president trump clearly believes he hold the aces and is willing to play a waiting game look we're going to go into everything you probably saw this morning to put out as they were going into everything this is going to be a small deal which this is going to be a very big deal or it's going to be a deal that will just postpone for a little while but earlier trump had tweeted his negotiating position looking for china to open their markets not only to financial services which they are now doing but also to our manufacturing farmers and other u.s. businesses and industries without this deal would be unacceptable beijing strategic plan aims to make the nation the global leader in aerospace robotics artificial intelligence and new generation what are those sectors that u.s. officials say are the crown jewels of american technology and innovation the u.s. is attacking chinese trade practices they call unfair including the forced transfer of american technology by a man to treat joint v

harassment of huawei. that would be the equivalent of chinese officials telling apple you can no longer sell in our country. imagine the market impact that i think we're underestimating this. it's not getting better. we keep going after even more. so i feel like there's substantial bumps in the road coming ahead. >> neil: susan, we just got numbers out. amazon, the big retailer that blew away estimates. in after hours trading its hopping. a lot of the same issues that were getting shellacked in september are storming back. what to you make of that? >> i'd say amazon just crushed it in their earnings report. they beat amazon again. they beat the street by 40 cents. as you know in the markets, that is huge. they're also reporting growth in the web services as well. jumping more than analysts expectations. yes. people had bearish thoughts in december with the route. heading into january, the over and over again with apple, facebook, companies are proving they're still making money and amazon just did that. >>

global efforts to ensure they don't do things like uild the 5g infrastructure, global effort against huawei, based on our security and economic concerns. you, when i ask finish, to turn on that decoupling thing, which i think broadly recognized or appreciated as it should be. we , couple points what should do and michelle indicated, touched on a lot of to have have comprehensive strategy, supporting allies, building doctrine and weaponry to defend ourselves and to continue to have, play the half e've played for over a century, providing security east asia, economic been built. there is idlogical aspect we termst discussed a lot in of china has a full alternative model on offer. the technology piece in particular, joe, i'll finish on this, i think there are number of things that we can and should do. the discussion to date has been almost all about things we're to change in terms of chinese behavior. hinese behavior in terms of purchasing u.s. goods and services, which is positive, chinese behavior not undertaking steps which are unfair and the economic global economic sphere good. we have h

or china, sort of on an invisible map saying the case of huawei will be discussed, criminal charges unveiled a couple of days ago overshadowing the u.s. and china relationship at this point and as for the difficulty level of the things that remain to be worked out in the deal, the president doesn't seem fazed by them he said he thinks once they sit down it will be agreed to pretty quickly. and that is good news for the market because the expectation is that some sort of deal and the resolution of these issues would lift the stock market and it is not necessarily a good thing for companies who really have -- who want this pandora's box to be opened to really hold china to account, the potentially have the enforcement mechanism here be criminal against china stealing u.s. technology so we'll see how these little bits and pieces end up moving along over the next month and a positive for the market he said he doesn't think that march 1st deadline needs to be extended and will resolve the issues before then. >> yeah. there was a lot of upbeat comments i would agree from the president. they, kayla

indictment and the indictment attempts at extraditing the daughter of the founder of huawei at cfo, how complicated is that in this whole stew >> i want to be careful because i don't have all of the details of the story behind that, but for one, we're already going to be very difficult negotiations you know in the past when we've taken actions like this, to no surprise, many times, american executives in china have been targeted for enforcement activity from the chinese government so this is a very, very tentative stage of negotiations to begin with and that can't be helpful, but i'm not going to criticize the administration on that because whether it's the trump administration or obama's or bush or clinton's, we have consistently warned china against the theft, attempted theft of america's intellectual property and trade secrets, so i want to be careful on that and let's see how that plays out >> all right ambassador kirk, thank you so much >> thank you again, sir. >>> jay powell and the fed sounding very dovish yesterday did they press the pause button or did they press stop >>> p

huawei is acting on behalf, that is private company nominally, but they have been acting on behalf of the communist party. the chinese will say anything to avoid what is essentially a death sentence from the united states. we saw the first number for january, which continued downward trend for december. chinese economy is probably detracting. these people will say anything. charles: let me ask you, the narrative being thrown out there, within china, there is a battle between the state-run enterprises and these private companies, right now of 300 unicorns out there, 26% are in china. we have great things going on on their own. these folks developing their own ip themselves are probably pushing or pressuring the country, yeah, we do need ip profession for our organic growth and discovery. >> that is true. xi xinping victims of his plans are not foreign companies. the victims are chinese entrepreneurs in the tech sector and also outside the tech sector. but xi xinping believes in a state-dominated party. he believes the communist party dictates what goes on. that means state enterprises

the canadians were arrested in december in apparent retaliation for the arrest of a top chinese huawei executive in canada. secretary-general jen stoltenberg's first public comments about the case came today as he met in bucharest with romania's president. addressl on beijing to canada's serious concerns and we have to remember that nato is founded on core values, democracy, individual liberty, and the rule of law. that is also the reason why we follow this case with such great concern. mark: a chinese court also sentenced a third canadian to death in a sudden retrial of a drug case, overturning a 15-year prison term handed down earlier. global news 24 hours a day, on-air, and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. live from bloomberg world headquarters in new york, i'm shery ahn. >> welcome to bloomberg markets. we are joined by our bloomberg and the an end bloomberg audiences. . investors sentiment lifted as the s&p 500 heads toward its best month in more than three years. let's make a d

. >> how will the indictment of with a w huawei and their technology get in the way, if at all, in this relationship? >> let's hope it does not. the president has made some comments that are unsettling to a lot of law enforcement people, trying to link law enforcement investigations and criminal prosecutions with the political deal. we've always tried to keep the two separate. we value and pride ourselves as a country of rule, of law, where prosecutions, criminal prosecutions are decided on the merits without political influence. this throws an monkey wrench into it. in the eyes of the chinese, they believe the arrest and indictment of the cfo of huawei was politically motivated. we need to keep those things separate. >> at the same time, the deadline, the threat of new tariffs on march 1st by the president, is that the way to go about it in negotiating with the chinese? everyone agrees they've done terrible things for decades in terms of trade and blocking access to our markets, but is the white house taking the right approach? >> i've never really agreed with the approach the white ho

>> look, i think the huawei issues, we said repeatedly we want to segment or put fire wall between what we do with huawei and broader trade negotiations i think that's unrealistic when we're going after one of their top or the top technology enterprise in china, i think we are being naive if we think this doesn't effect the sense of what the chinese believe to be our aggressive intent. this puts them certainly on the defensive in that regard does cast i think more of a shadow on the negotiations than we would like them to do i don't think they're paying a whole lot of attention to the shutdown and disruptions and other issues the president may be focusing on the bottom line for china, carl, is that they have their development aspirations over the next 20 to 30 years that she jing ping laid out in public statements to the part congress and others they don't want to compromise on that they recognize there's a lot of push back from us, so they've got to negotiate some of the tho thorniest areas of push back to think they'll back off on core policies i think is naive. >> i want to go back t

security concerns in europe over huawei, we'll talk about it. big money real estate, a chinese billionaire who i spoke with in davos last week at a center of a mega real estate deal. back in a moment. ♪ i don't want to hear sad songs anymore. ♪ i only want to hear love songs. ♪ i've got my heart up in this place tonight. ♪ don't want to sing mad songs anymore. ♪ only want to sing your songs. . okay. [ buttons clicking ] [ camera shutter clicks ] so, now that you have a house, you can use homequote explorer. quiet. i'm blasting my quads. janice, look. i'm in a meeting. -janice, look. -[ chuckles ] -look, look. -i'm looking. it's easy. you just answer some simple questions online, and you get coverage options to choose from. you're ruining my workout. cycling is my passion. you're ruining my workout. bonnie: how are you today? girl 1: good. bonnie: i'm here to talk about how with technology you can make amazing worlds. come with me. my team and i bring the halo world to life. girl 2: is that you? bonnie: that is me. i wasn't a math geniu

from t-mobile and huawei was built on stolen u.s. i.p. from cisco and it's continued to do that since it was founded in 1987. it didn't become the world's biggest manufacturer of telecom equipment manufacturing on its own. it did it because of criminality and so we're at a point right now where i think that we have no choice but to go after them, even if that does undercut trade talks. lauren: that's the culture of china, gordon, to build companies by copying and stealing and then as we saw with those criminal charges, rewarding employees, paying out bonuses for them to do just that. so we'ring asking for a major cultural shift right now and while it should happen, we have to see if it done. r gordon chang, thank you for your perspective. >> thanks, lauren. gerri: potential presidential candidate and former starbucks ceo, howard schultz, isn't giving president trump credit for the united states' economic success. he was on the daily briefing with dana perino just last night. >> i would not give him credit for that because i think the redu

the sox come after the us charged the chinese tech giants huawei with stealing trade secrets. jillian: donald trump's visited political chaos in the south american country venezuela but he will give the trump administration's will backing of opposition leader juan guaido over disputed leader nicholas madero. juan guaido pending an op-ed in the new york times calling for unity among democratic governments to end the duro's regime. donald trump saying reinforcing america's support before the leader joint protest in the streets. todd: the clock is ticking for congress to strike a deal on border security as thousands more migrants head for the southern border. our next guest mike johnson has been fighting to close luke coles in the immigration system. jillian: not just super bowl commercial getting political. football fans putting their money on this year, we will be right back. ♪ we don't need your money money money ♪ we just want to forget about the bright day ♪ if i built a van, it would do more than haul. if i built a van, it would carry my entire business. i'd make it a

huawei was built on stolen cisco technology. and these talks in washington that started today, that's i.p. theft, too. lou: a bipartisan conference of lawmakers meeting today. the president tweeting any talk not including a barrier is a waste of time. lou: blood in the streets, a terry pike crime thriller, we recommend it to you. we thank you for joining us. good night from new york. see you tomorrow. >>> the u.s. economy is in a good place and we will continue to use our monetary policy tools to help keep it there. come mop sense, risk management -- common sense, risk management suggests patiently awaiting clarity. lauren: stocks rallilying yesterday, the dow soaring above 25,000 for the first time this year after jay powell says no more interest rate hikes for now. >>> a big day on the street and wall street expecting the good news to keep on coming today when amazon reports earnings after the close. investors hoping for good news from general electric. lauren: it's not good news for tens of millions of americans bracing

but you can largely ignore some of the more aggressive rhetoric up until that much diverse deadline huawei will be hanging over that for some time. >> we have to see what happens with that, don't we? >> we'll leave it there. thank you for joengs, edward park, the chief investment officer from brooks mcdonald >>> also coming up, the leaders can add the word finally meet to discuss brexit as the e.u. insists the withdrawal agreement cannot be renegotiated stay with us >> european equities follow higher after a global head wind for keeping rates on hold. >> in this environment we believe we can best support the economy by being patient and eve waiting the outlook before making any future adjustments to policy >>> higher oil prices boost net profit at shelby 36% in 2018 the oil major pay-out almost $4 billion in dif depds, and shares head higher. >>> consumer giant unilever misses the sales foesh as the new ceo takes the helm, and spirits are lifted at dieageo. >> growth in every region of the world, north america up 6% europe up 5% the emerging markets up 10%. scotch whiskey doing well. we're

you're looking from any boost from qualities -- huawei's troubles, it's not there. unilever, concern around latin america, that stop by around 3%. let's get a first word update. says he is ok with tax hikes on the rich as long as the revenue goes where he thinks it will do good. an emailed statement, the billionaire jpmorgan ceo said that those earning the most can afford to pay more. that comes as elizabeth warren defends her wealth tax proposal. raiseys it is a way to revenue and bulls are the opportunities available to ordinary americans. >> capitalism without rules is theft. encouraging companies to build their business models on cheating people. that is not capitalism, that is not competition, that is not producing consumer surplus. so what i believe is that capitalism with serious rules. that means rules were everybody gets a chance to play. slowed.'s slowdown has factories contracted in january but came in above levels. this comes as high-level talks continue between the u.s. and china, but there are few signs beijing will bend to american demand. key issues

thear justice department going after huawei. every day you see more of this happening. use the other countries doing it, poland, numerous countries are taking the threat seriously as well because huawei has already embedded in here. they are so much more to do. we still struggle, for example, with academia. i can't tell you how many universities in florida that i've talked to inside, the confucius institute, they use the agents of influence to shape the narrative and potentially identify americans who come in 20 years from now, could be a mayor, congressman, a leader of a major a corporation, and start to recruit them to the chinese. how many schools focus on that? we've got them kicked out every school but one in florida but more universitiesa. are breaking up that threat. it is still an enormous challenge to convince academics that this is a threat. >> tucker: considering these schools, almost every last one of them, rely on tax dollars, either. through guaranteed student loans or direct through grants to operate, doesn't the congress have some leverage on thiswe ques

has taken an aggressive stance toward huawei, filing formal charges. are you expecting negative consequences elsewhere? kevin: of all the things, whether the trade war or the general idea that the chinese consumer is starting to get sluggish, it is the huawei situation that i personally find the most troubling. this company makes the leading hardware for the cell carriers and certainly for 5g. i am troubled by the whole thing. there were some elements of the indictments that came back -- out with the robotic arm, punching away at the phones and an engineer trying to swipe one of the phones in his gym bag. i'm troubled by this story, and i'm troubled by the idea that huawei is getting boxed out of selling their hardware around the world. it seems like most of the telecom providers want the hardware. so i -- of the three things, the huawei situation is the one i've most unsettled by presently. haidi: china and u.s. markets have talked about expanding markets internationally, are we expecting them to move further away from that asset light model, particul

huawei was built on stolen cisco technology. and these talks in washington that started today, that's i.p. theft, too. lou: a bipartisan conference of lawmakers meeting today. the president tweeting any talk not including a barrier is a waste of time. lou: blood in the streets, a terry pike crime thriller, we recommend it to you. we thank you for joining us. good night from new york. see you tomorrow. [♪] trish: socialist dictator nicolas maduro increasingly isolated and getting weak as the international community condemns his presidency. i just got off the phone with the interim president of venezuela. a russian plane flown from moscow lands in venezuela. there are reports the plane is being used to

huawei is getting squeezed. who is going to win? from a consumer perspective, i don't know how you can convince the consumer to pay more just because you are getting a 5g phone. its requires a new business model, often p2p. capx, you are seeing china and korea lead the. its will create deception. a lot of korea's rollout plans huawei asx do involve a key supplier. if that does not happen, it will change the fatih birol out -- 5g rollout. yvonne: thank you. david: from tax, we have to talk about banks. so much stuff to talk about. we are talking about india. our next guest remains bullish on the stock. we will ask him why. this is bloomberg. ♪ yvonne: india markets have just opened. here is how we are looking. rfed issueder the its statement. strength coming into your rup ee. avid: looking at the banks at swell, earlier in the week you had a massive drop off. you have increased provisions therefore bad loans that. let's bring in our guests to talk more about this. one of the top ranked analysts on the bank. christian, very nice to

charges against chinese electronics from huawei have also added some of these complications now at least seven people have died in the united states as a polar vortex brings a once in a generation deep freeze to a large swathe of the country it's been colder in some parts of the midwest and northeast than in antarctica john hendren has more now from willis michigan. in arctic freeze envelops the american midwest bringing dangerous cold in record low temperatures this is an event unlike any we've seen in a generation and i think it's really important that we protect people the arctic air of the polar vortex is sweeping the region driving temperatures down to thirty below zero celsius it should goggles o'hare airport with wind chills in the suburbs making it feel like minus forty eight the predicted low of minus thirty three at o'hare on thursday would be chicago's lowest temperature in recorded history the weather system stretches across a huge swath from the dakotas in the north that minus thirty degrees celsius to maine in the east and as far south as alabama to prevent freezing chicago

on monday, the justice department charged chinese telecom giant huawei with stealing secrets. the latest round of talks is and -- and at the escalating tensions between the two countries. for more on this, i spoke to th director of ssinger institute on china and the u.s. at the wilson center. alw much is hinging on the given that the state of the global economy could rest on whether ey can resolve this? robert: the talks over the next two days are part of a process. talks, perhaps two more rounds after this o, are supposed to conclude by march 2. if that doesn't happen, president trump has threatened to raise tariffschn 200 billion ese goods from 10% to 25%, which could result in a global slowdown. laura: china's econom slowing, but the u.s. economy is dependent on china. who has the most to lose from not budging in these talks? robert: in the short term economically it may be china, e because as you say, onomy has slowed down. some of it is a planned slowdown as china tries to move up the value chain and get more sustainable higher term growth. in the short term, xi jinping p

thnese see the targeting of huawei as political. the cfo's extradition hearing has been postponed to march 6th. the vice premier will directly send a message from president xi to president trump and could potentially influence the outcome of any deal on tde or huawei. for "nightly business report," i'm eunice eun in >beijing. customer growth slows at at&t and that's where we begin tonight's market focus. the company added far fewer wireless subscribers than expected as it tries to keep pace with verizon and t-mobile. it also lost more pay tv customers in the fourthar r. at&t has pulled back on promotional pricing for phone and television plans, as it focuses on paying down debt i following $85 billion purchase of time warner. the shares fell 4% to $29.37. >>> anthem is speeding up the lach of its pharmacy benefits management business. that move will allow anthem to accelerate itshole person health strategy which it believes will reduce the total cost of care. anthem easily beat fourth es and earnings estim said profit for 2019 will

charges against chinese electronics from huawei have added to the complications well in all the developments u.s. president all troubles lashed out on twitter country's intelligence services calling them naive and wrong over the threat posed by iran this after trump's own intelligence officials contradicted some of his claims on key national security issues well they included syria north korea and presidents the president's assertion that the horizon is actively seeking to develop nuclear weapons will trump has often ridiculed his political rivals as well calling them radical and crooked it's a technique he used to great effect before he moved into the oval office but critics fear his language is changing the political debate and provoking violence especially in the age of social media out of fisher explains from washington. and the radical democrats president donald trump thinks nothing of attacking opponents using claims and nicknames to win political advantage is angry as presidents get to congress and the bureaucracy and reporters and their news organizations other presidents have not tr

the way, that in the united states, i'm not so sure everyone would be running around buying wahwe -- huawei phones here, so that's an issue. on top of that, i think apple has another conundrum it faces, which is just the great topic we knew so much about, which is innovation, and how do you innovate, and how many great ideas does any one company or individual really have? you know, we're now at a point where instead of upgrading your phone every two years, it's going to push to three. maybe it will ultimately push to four. they've made a lot of money every time you upgrade. what do you do about that? is there the next ipad or the next iwatch? you know, what's the next thing? is this car? all these things. and we haven't seen that sort of step-change innovation out of that company, so i think it's a combination of all of those issues. >> what's the next great innovation you would want? >> i think all of this is probably related to health and biotech, ultimately. i think what they're doing with the watch, i have an apple watch, i wear it with ekg i think is interesting. i actually think, by t

might say the huawei issue, it's separate to the trade negotiations. were talking that china's largest tech company, and international check in and has been backed by beijing. it's hard to get around the optics at this for help beijing can put it to the side in these talks. if we were to take anything and just put aside the one particular company here, what the issue at hand is is that there have been intellectual-property issues, there have been ,ntellectual-property concerns that is a concern that brought the trump administration to and getts investigation us to the point where we are today with these trade negotiations. so we are addressing the symptoms. implicationsre the for not just trade flows but also investment decisions around the world? there are concerns we have expectingen -- were china pmi's to continue to show contractions. were seeing various indicators suggesting the front loading is over and were starting to see decisions being made on the basis of a longer term than short-term trade. is that concerning in terms of how quickly compani

the united states is pushing hard against that fearing that if huawei were able to complement that, china would have a global network able to steal technology. >> bret: the power struggle is intensifying tonight in venezuela as demonstrators take to the streets to show support for the opposition leader. president trump offered his own support on the phone. steve harrigan is in caracas, venezuela, and has our story from the ground tonight. >> downtown caracas turned into a protest zone for two hours wednesday at scheduled by the opposition before another major march on saturday. it marks the first show of outrage by supporters of juan guaidÓ since he declared himself interim president one week ago. the whistles and horns of sound of the frustration of a populace battling a million% inflation, shortages of food and medicine, and a former bus driver nicolas maduro as president we elected last year in a vote marred charges of fraud. >> those men must be in prison, imprisoned because they are harming children who are 12 and 13 years old. i've been protesting since 2002 and i will stop protest

market some is due to lack of subsidies by the chinese some is caused by the brutal competition from huawei and samsung. but a part of the weakness comes down to the fact that the dollar raises the price of the iphone in comparison to the local competitors. i think it's significant enough to account for 3 or 4% of the decline. maybe even more. and when you're dealing with a company like apple that's a huge number they had to cut prices to offset the damage but that hurts the gross margin what they make after the cost as they're sold the dollar is the great unsung story. we hear that apple can't compete any longer, that it's -- give me a break. the larger issues in china, apple is an iconic american product and the products are more expensive thanks to the amazing run in the dollar. of course it's not just china. the turkish market the weak money cost apple just converting turkish lira to green backs with the weaker economies are eye poppingly bad. it isn't apple's fault yet, that's the crux of the problem. if you're an american company that does a lot of business overseas the strong dollar

huawei decided to start paying again under the interim agreement. they will pay 150 with the nose a quarter for the next three quarters, up from $100 million until they come up with some sort of final solution on how much huawei should pay for licensing qualcomm's patents. huge part ofs a qualcomm's business that is under threat. thanks so much for that update. toing up, we will return facebook's earning results. mark zuckerberg had this to say about encryption. >> people value the privacy that encrypted messaging brings. secure the most messaging service in the world. as people increasingly share more privately, we are working on making more fire products encrypted by default so your information does not stick around for ever. ♪ >> in instagram, one of the areas i'm excited about this year is commerce and shopping. we expect to deliver qualitatively new experiences around that. mark zuckerberg moments ago on the facebook earnings call. , interesting reading the headlines from the call. the big news seems to be that revenue growth is going to slow

huawei was built on stolen u.s. ips starting from cisco and now through to t-mobile. >> i have a question, for you gordon or for anyone who has an answer to this. it is about the chinese consumer. we talk all the time about the top down influence on trade in the form of these tariffs, but there's also choices that consumers can make, and i don't know of anyone here in the u.s. who looked at this tariff spat and says you know what i'm not buying those $5 shorts from wal-mart because they were made in china. i wonder in china, has there been this kind of nationalistic or prideful backlash among consumers where they say we're going to buy fewer american goods? >> there is more of that because beijing has pushed that. there have been campaigns directed by the communist party since march of 2013 against apple and seen them against japanese goods and south koreans. now of course the u.s. we will see much more of this because the jinping doesn't really have an alternative so we will be on the target. >> gordon, it is scott

i think we all saw the justice department announcement yesterday about huawei. i have to say as a former entrepreneur and venture capitalist i long held the view that an economically advanced china would eventually become a responsible global citizen that would join the world trade organization and whose system would ultimately be liberalized by market-based economies. unfortunately, what we have seen particularly in the last two or three years is the opposite. with the consolidation of power by the communist chinese party and with president xi emphasizing nationalistic tendencies and an aggressive posture towards those nations on china's periphery, and an economic policy that seeks by hook or by crook to catch up and to surpass the united states, economically, especially in the areas of technology like ai, machine learning, biotech, 5g and other related areas. especially concerning have been the efforts of big chinese tech companies which are beholden to the communist chinese party to acquire sensitive technology, replicate it and undermine the market share of

prosecutors filed new criminal charges against the chinese company huawei and its chief financial officer and we were talking about donald trump just before and even before he moved into the white house we knew he was using the kind of language you wouldn't necessarily call presidential and hasn't changed his ways either he has accused his rival democrats of wanting to let murderers flood into the country so when that is creating concern that he has permanently our pending american politics and even inciting violence and fishes been looking at that. and the radical democrats president donald trump thinks nothing of attacking opponents using claims and nicknames to win political advantage as angry as presidents get congress and the bureaucracy and reporters and their news organizations other presidents have not tried to deal agenda minus them and so i think that's an important difference because he wants to degrade them as institutions in october last year a number of pipe bombs were sent to a points of president trump a florida man a trump supporter has been charged with sending thirteen

and then they have an interim agreement with huawei, and that did help and they said they were pleased with the way that the ftc afrktafrk arguments went in court. we'll see how that goes. >> shares up a little more than 2% jon, thank you >>> shares of tesla trading slightly lower after mixed 40s quarter earnings >> and gabe and joseph, if i start with the eps, i guess another profitable quarter, but less so than people would have hoped for. >> yeah, i think that that is true they are operating basically at break-even at the moment which shouldn't surprise anyone. but what hears here is that they are generating profits and cash. that has been the knock on the company. and if you look at the results as well as the outlook, i thil liquidity and vice ablability cs don't hold up. >> did you see evidence of tesla having a demand problem? >> yes, i believe that q4 was the best that we'll ever get for tesla specifically if you look at their guidance. they guided for mid point of 280,000 model 3s in 2019 that was about 20% below the street consensus of 330, which is also what my friend joseph

on huawei, so far the chinese saying that they will keep huawei separate from those trade talks, but given that their chief financial officer has just been indicted by the americans, i wonder how that will go over in the next few days. last night, the uk parliament voted to send the prime minister back to brussels to secure "alternative arrangements" to the so—called ‘backstop' — that is the mechanism to prevent the return of a hard border in ireland. the arrangement is unpopular among the brexiteers as it could keep the uk in a permanent customs union with the eu indefinitely if no way can be found to keep the border free of infrastructure. today, we got the eu response in full. they have stolen theresa may's favourite line — "nothing has changed". jean—claude juncker, european commission president, again insisted that the deal on the table remains the only option and the withdrawal agreement signed by the prime minister in november will not be reopened. though withdrawal agreement remains the best and only deal possible. the european union said so in november, we said so

throw in huawei and you have potentially explosive situation. let's go to the white house with our very own blake burman with the latest. blake. reporter: you have a statement from the fed. i wish i had one here at the white house what might or might not be taking place in the discussions behind me at the executive office building a whole lot of anticipation for these talks but little more five hours in what may or may not have come out of it. very expansive, high level delegation, members of the president's trade team own one side of the table. their chinese counterparts on the other side of the table. cameras allowed in briefly, all the look we've gotten so far for two days of discussion. coming a couple days after the justice department filed charges against the chinese telecom giant huawei and its cfo. treasury secretary steve mnuchin saying that is an entire i separate matter. >> i found out about it yesterday when it was announced so those are not part of trade discussions. forced technology issues are part of trade discussions. any issues

state subsidies and industrial espionage to legitimately gain a leg up on the competition case in point huawei. the u.s. recently accused the chinese tech giant of violation international sanctions against iran and stealing trade secrets something the chinese government vehemently denies. you know it's been some time since the us started to use its state power to smear and suppress certain chinese enterprises in an attempt to throttle their legitimate operations their intentions are strongly political and manipulative we suddenly urge the us to stop ill founded suppression of qual way and other chinese enterprises you know we've got. experts are skeptical that both sides will find common ground this week china is unlikely to give up its cavalier approach to foreign intellectual property any time soon. and after trump's recent loss in the u.s. government shutdown he's likely to push for sweeping reform made of steel but time is ticking if no deal is reached trump has threatened to impose another two hundred sixty seven billion dollars of tariffs on chinese goods starting in march. are known to

industry and how they target the most vulnerable among us and later here inside the washington beltway huawei has been charged with myriad crimes as senior u.s. government officials ramp up the rhetoric in the ongoing conflict with china on the eve of the u.s. china trade negotiations here in washington they begin wednesday mail edition the owner of which join us to discuss all that in our sights but first we had right to some headlines let's go. brinksmanship leads our global report today is u.k. prime minister theresa may opens her draft agreement to amendments from the british house of commons ms may effectively conceding that parliament has disregarded past precedent and their way to the breakfast table spent a full day of rollicking debate in an editing session on her draft plan ms may is especially anxious for changes on the matter the so-called backstop issue on the irish border changes to the status quo on that front could violate and perhaps destroy the good friday peace agreement for northern ireland ms may's minority government includes the democrat unionist party of militant prote

request of huawei's cfo and an indictment unsealed against the company this week, certainly, john, the stakes in this negotiation are very high. >> see you back here tomorrow. brianna keilar starts right now. ♪ ♪ >>> i'm brianna keilar live from cnn's washington headquarters. under way right now. he can't seem to criticize vladimir putin, but the president able to insult america's intelligence chiefs after they contradict him. as the u.s. heads for a potential shutdown sequel, the president draws a line in the sand as lawmakers begin negotiation. plus senator kamala hairris bending after promising to eliminate health insurance. why is jared kushner's father behind one of the most loathsome crimes. deep thoughts with chris christie. up first, go back to school n. go back to school, that is president trump to his intel chiefs. the global threat, one that contradicted the president's views and he responded by rebuking his own advisers after disputing their assessments on isis, north korea and other issues and accusing them of underestimating iran. the president tweeted this. he said t

reaching a consensus -- a consensus may have gotten more difficult with huawei. when we spoke with michael pillsbury, who advised president trump, he said it could help. >> i think it gets us more leverage. they expect this kind of thing. the united states and china have been negotiating a lot of different things over the last 45 years. there is a cycle or pattern to these negotiations and usually applying pressure at the last minute through other means can be quite important. serveddavid dollar once in beijing as the u.s. treasury department's representative. he is a senior salad -- senior fellow now. good to have you with us. , if you will, does the law way -- does the huawei indictment make it easier? indictment,uawei looking straight discussions. i do not think it will have much effect of what will happen as -- chinesece premier premier negotiates. it is in the background. it is a reminder that things can get worse in u.s. china -- u.s.-china relations. i do agree that it does have an effect in terms of u.s. leverage. but it does not have too much effect on w

request of huawei's cfo and an indictment unsealed against the company this week, certainly, john, the stakes in this negotiation are very high. >> see you back here tomorrow. brianna keilar starts right now. ♪ ♪ >>> i'm brianna keilar live from cnn's washington headquarters. under way right now. he can't seem to criticize vladimir putin, but the president able to insult america's intelligence chiefs after they contradict him. as the u.s. heads for a potential shutdown sequel, the president draws a line in the sand as lawmakers begin negotiation. plus senator kamala hairris bending after promising to eliminate health insurance. why is jar

the huawei story could be a factor. what is the thinking about the way this week goes? >> most of the people who follow this closely with suggest there is an option four, we do not get anything at all. at least not publicly. the first idea you mentioned that we will get some sort of report that there has been progress made and that they will keep talking is the most likely event. the second most likely is they break off entirely because they are upset. . with each other. that does not look like it is going to happen this time. the problems they are happening over -- they are talking about over at tech transfer are difficult to walk -- are difficult to work out. of standstill agreement. an idea that we are making progress. aheade are going to push and that we done -- we do not need to push the tariffs. it is probable you will get through these meetings without an indication of where it will end up. vonnie: is this phase of about ip, and the sense of, we have had the movement for soybeans and things like that? >> it is hard to see where you would move at this point given

economic conditions in china, although could it also be intensifying competition from local names like huawei and jaoume but cook says that's nothing new, he has been dealing with that for a while, saying, i think the competition is very tough there, but that didn't change in the december quarter, it's been like that. finally, given these potential signs of improvement in china, i asked cook about his guidance, conservative at least relative to the street's expectations cook telling me, we don't attach our guidance to what the street is looking for, we attach it to what we think we can do. and we think we can do $55 to $59 billion, given the currency situation, he told me, he thinks it's strong guidance guys, back to you. >> josh lipton, thank you for those headlines and that color from tim cook. shares are up about 5% right now. >>> coming up next, we are just hours away from a fed decision expected to hold rates steady. former fed governor and deputy treasury secretary, sarah bloom raskin is going to join us next. don't go anywhere. in the u.s.tate to have a hundred percent renewable energy

>> reporter: it's hard to overstate how big huawei is to china. it's a massive telecommunications firm. china has been upset. they're really not happy about it at all. after the indictments came down, the ministry of foreign affairs came out with a statement, said they expect her to be released. they didn't take that opportunity to up the rhetoric, to turn up the heat a little bit. i think within that, the fact that they made that choice shows you they don't want huawei to scuttle any potential trade deal, at least not yet. >>> president trump has personally reached out to venezuela's opposition leader juan guaido, which the u.s. recognizes as the president of venezuela. the white house says president trump spoke with him on the phone this morning to reinforce his support. >> more mass protests expected in venezuela as guaido and nicolas maduro fight for political control of this country. with me now nick paton walsh. so president trump speaking to guaido, america's choice in effect for president, the actual president of venezuela. what are we hea