had now formally criminally indicted the cfo of huawei, the telecom maker, that has sent ripples through asian markets overnight. it is eclipsing some of the talks set to take place this week between washington and the china counterpart with the vice premier heading to washington for talks this week. that is the picture overnight. you can eeurope, the mood is a little bit more positive we've got it isn't really a meaningful vote, but it's amendments that could be done to the prime minister's deal. we'll have to see what amendments will go through and how that's going to impact brexit talks, whether or not the euro are going to respond to that cac up 3%. lvmh reports after the close today. watch out for that from the luks know luksry perspective. switching to sectors so we can see where some of the leadership is coming from, and you have right at the top household goods. utilities are the main performers today, and you can see at the bottom we've got auto i was mentioning this is a sector that's underperforming. it's dragging down some of the german index here. there have been several dow

they also said to drop the arrest warrant against the huawei ceo the u.s. justice department overnight had handed down two indictments. the first is a 13-count indictment which was filed in new york alleging that huawei misledders and u.s. authorities in order to do business in iran despite u.s. sanctions the u.s. believes the cfo orchestrated the scheme and the second ten-count indictment charges two huawei affiliates with attempting to steal robotics technology from u.s. carrier t mobile this is the kicker here and getting a lot of attention it also says that huawei offered bonuses to kpleez employees who obtained confidential information from rival companies. now, huawei issued a statement today saying it is disappointed to learn of these charges, and it denies that it or any subs y subsidiary or affiliate have committed any of the asserted violations of u.s. law and is not aware of any wrong doing of miss among just a couple of moments ago among's lawyer also said that she shouldn't be held hostage to u.s.-china relations and as it turns out, these indi

. >>> good morning it is midnight at huawei headquarters in china, 11:00 a.m. on wall street. "squawk alley" is live ♪ >>> good tuesday morning with me, morgan brennan, david faber. carl is on assignment. markets are turning around in a negative way the dow was up earlier. s&p down nearly a half percent and nasdaq down 1% even. >>> turning to tech earnings, major names on deck with apple today, amazon, facebook, microsoft set to report. twitter, snap, alphabet are next week our next guest saying some social names should expect revenue decel. with us now for more, mike and mike michael nathanson, and senior markets commentator mike santoli. good morning, guys michael nathanson, first, what to look out for with advertising driven names we have been talking so much about china, but these names have little china exposure is it all up side or are there potential points of concern? >> i think this is a proxy for global growth ex-china europe is a big component of digital advertising. the uk is a big component. what i am worrying about is slow down in uk retail sales that filters d

is reportedly pursuing criminal charges against china's huawei for alleged theft of trade secret. the "wall street journal" says an indictment is expected soon shares of zte, as you can see, are off a little bit in premarket trading. down at 15 and change. a bipartisan group of senators introduced a new bill that would ban the sale of u.s. chips and other telecom components to huawei and zte china responding to that proposed legislation calling it in their words hysteria, and in a rare public appearance huawei's founder said that his company does not and would not spy for the chinese government the story at the bottom of the hour i looked over, and i got nervous because you were frantically owning opening an article it was the "new york times." right at the beginning of the show i just got nervous you were cracking open and trying to think about -- >> john bogle dies 89, joseph. >> i thought you were -- >> that's what i was looking at. >> i thought you were looking at the -- because when i -- >> and i was looking -- >> when you hear someone staying in jail until march, don't you s

that's not actually building a case for huawei. it is separate from the government >> i appreciate you doing this it's a great hit a lot of stuff high level talks my producer called me a pig-doim teammate, and now i'm offended i wasn't, because i that it was a compliment i appreciate it. see you soon >>> the most random but interesting thingure going to hear today has to do with apple. you know about the quarter in china. put that behind us some investors seem to be concerned, but instead of i phones, i want you to focus on another number 245 billion. that's how much cash apple had on hand tend of the quarter. it sounds like a big number. maybe you don't realize just how big it is. here you go. 245 billion means apple could spend $33.5 million every day, every day, for 20 years before the cash ran out snaets assuming it never matd another di -- made another dime. i think they call those good problems stay warm somehow. stay inside. be safe. thanks for watching. "squawk box" is next to have a hundred percent renewable energy goal. i

remember the chinese economy is slowing and trade talks kick off tomorrow huawei itself is facing bands of its equipment around the world so while the u.s. rolled out some high officials to announce the charges, the chinese foreign ministry in its response strongly urged the u.s. to stop the unreasonable crackdown on china sneeze compa chinese companies and says that it will defend huawei. a report saying huawei should try to minimize losses compare that to the hard line beijing took towards canada threatening grave consequences following up by detaining two canadian citizens. >> almost like they are channeling all their fury toward canada knowing that they can't upset the u.s. too much. there are wouare two tracks of criminal charges, the one that involves the robot at t-mobile and also the iran sanctions. what happens if canada says we don't have iran sanctions, huawei didn't violate any laws as far as we're concerned. >> and i think that is why the u.s. authorities have been very careful in framing the charges against meng wanzhou and involving the robot. it is not necessarily relate

huawei, or buying huawei in order to be able to say, i'm chinese and i respect what our country is doing >> yeah. some analysts have been trying to quantify the impact of that in china and india, but that's a difficult nut to crack jim, such great stuff. >> isn't it? >> we miss you "mad money" tonight at 6:00 p.m. eastern, jim will be joined by the ceo of constellation brands, after they missed estimates, of course, their guidance relatively weakened. one of the losers on the s&p today. >>> let's get to liesman today he's got some remarks from fed president rosengren. >> rosengren saying the fed can wait for greater clarity, saying there's no need for the fed to hike if the economy weakens. that's an important qualifier. he says stock prices could portend a decline in growth, but then he goes on to question what the market's saying. saying the market sentiment may be, quote, unduly pessimistic, noting the data has been more optimistic than markets have suggested. he says, among other things, monetary policy remains accommodative. the strength from '18 is likely to carry over into this ye

plans to advance a formal request for the extradition of the huawei ceo. the paper was quoting the canadian ambassador to the united states as saying that he was informed of the plan and that he had complained to the trump administration that canadians were "paying the price. since he was detained in vancouv vancouver four of the americans on fraud charges thereby two canadian nationals being held in beijing. also a third was sentenced to death for drug trafficking, and beijing hasn't linked these detentions, but at the same time just this week there was a group of diplomats who filed an open letter to president xi jing ping calling for their release. the chinese got has responded angrily today accusing the canada and u.s. of abusing their extradition agreement, and when asked if china would retaliate against the united states if among was extradited, the ministry said that it would respond based on the u.s.'s next action there's a lot of concern now that this could actually pressure the trade talks, and it's obviously very sensitive as well, because as we

to some of the inherent weaknesses with respect to huawei that we were concerned about if we didnfferent have a reason, we would have taken a different position >> they're going to operate in a domestic economy that's enough for huawei to thrive we are seeing eastern countries actually defying the demands of the u.s. and saying this is better technology. it's cheaper it's 20 years ahead. if we don't adopt it, that comes -- we're falling victim to that >> i think technology can substitute for a lot of labor in terms of cost savings, and all of our firms are looking to employ technology where they can. there's a technology arms race going on out there >> i don't want any dispute. clearly, we have issues in terms of the relationship, and, you know, the reforms that need to be made on the current wto framework. stheel work with all the partners >>> kearns with a european slowdown have arisen following a raft of weak data. ceo speaking to cnbc have pointed oissues in the continent's labor market >> we see that there is wage inflation in the country, in the areas where you have really scarcity

huawei >> huawei is a rogue player. we don't know how much of the government is controlling that some people still think they're part of the liberation army. huawei is a big problem. nor tell claims huawei stole their intellectual property. huawei has been a violator in many ways. and that's part of the detention of the huawei cfo in canada right now. we learned overnight, there are 13canadian executives being held hostage overseas. and now half are afraid to go to china. >> we saw the travel ban yesterday. didn't help the markets for sure jeff sonnenfeld, thank you very much >>> when we come back, a fed insider speaks cleveland fed. loretta mester will be talking to us at 8:00 eastern time then the countdown to the jobs mo "ua bpo resqwkox" after this (sounds of race cars) the same iot technology on the ibm cloud that helps race teams improve performance and safety. bye. girls, don't wave at strangers. can now be built into everything we drive. when you apply expertise across an industry, bye! you can put smart to work

to, quote, stop unreasonable suppression of huawei combined with continued concerns over weakness in the chinese economy, how is it all going to play out here to help us answer this and a lot of other things, goldman sach's chief asia-pacific equity strategist tim moe >> great to be back. >> let's start with the chinese economy, what you know or what you think given the warnings from so many u.s. companies, probably more to follow about weakness in china business >> the numbers are weak. we can rattle through statistics fourth quarter gdp on the soft side pmi below 50 the producer price index just hovering above zero. i can rattle on but clearly the spot -- characteristic of the chinese economy is weak. the good news, half glass full, is it's clear that chinese policymakers are stepping up i was in beijing on thursday had a series of macro meetings if you look at the various aspects of policy, fiscal, monetary, and the fact that currency depreciated last year by nearly 10%, the combination of all of those suggest the policy is easing and with a lag that should stabilize the chinese e

you have a new investigation of huawei, federal investigation. you have new congressional action saying u.s. components cannot be sold to chinese telecommunications companies on one hand they may have a short term deal that provides some money and some boost for the market but the long term problem is the fact that we're on a collision course particularly in the emerging technologies and do we divide up the world between people using chinese technology and people using u.s. technology, can we find a way to work with each other. >> on that front, it's one thing if you're an investor in huawei, you have problems trying to figure out where that company can do business. what happens for the u.s. technology what are the ways -- can people stay invested and ignore this or is fred right it will create this digital curtain between west and china >> i think it creates a little bit of a digital curtain certainly u.s. tech companies are positioned, are in such a position they will benefit as this trade deal gets done and as we move forward and there's a vic

no one is ready to say this stock has near-term upside. >> i think the huawei thing is interesting as well. as the commerce secretary has said, what's going on with huawei is completely separate in terms of what is going on with u.s./china trade talks so we could have some sort of a deal but the charges that the company faces might be an ongoing story. >> they might be saying that too to give them leverage. they'd never say they were tied together. >> the fact of the matter is the u.s. will not want its allies or its companies to buy any equipment from huawei in 5g and that is an ongoing security issue regardless of the charges against the company at this point. >> that's probably not going away any time soon so i think that's clearly a potential headwind i'll mention this because, listen, there were a lot of good things here. the other products which they break out, $7.3 billion, that's not insignificant. so when you layer in other products and services, now you're talking about close to -- $19 billion over $81 billion, now you're talking about 21%, 22% of revenue so you are growing

new developments surrounding huawei the tech giant stealing trade secrets. >> whether they stole and could lead to an indictment soon huawei has been on the radar for years, but the recent arrests are different and global last week alone, the probe in the u.s. and taiwan's ban of its products and its government systems and the arrest of an employee in poland on espionage charges. again, that's just in the last week but it adds to a growing list of countries from australia to britain, reconsidering their relationships and in canada, of course, the cfo facing extradition to the u.s the big question, kelly, as scrutiny intensifies with this latest probe, are these temporary setbacks for the company or do they signal a larger retreat that could knock them from the purchase, number one supply of equipment and second most of smartphones >> deidra, with that and other ways they're kind of coming after the company, what happens if all of the sudden, basically loses access to the u.s. market? >> if it loses access to the u.s. market and as an example, what we saw with zte and unable to say bu

has pressured allies to ban huawei according to "the new york times." the newspaper reports the trump administration considers 5g to be part of an arms race. at stake, an economic intelligence and military edge for the rest of the century. huawei faced bans and security investigations into the uk, germany and poland >>> and china's ambassador to the european union has said efforts to exclude huawei amount to, quote, slander discrimination, pressure and coercion moves are not driven by security concerns and could ultimately undermine global economic and scientific cooperation >>> meanwhile, canadian prime minister justin trudeau fired his own ambassador to china. last week ambassador told the vancouver paper it would be, quote, great for canada if the u.s. dropped its extradition request for the huawei-cfo they told chinese media he thought meng had a strong case this is the first time a canadian ambassador has been publicly dismissed and chinese industrial profits fallen 1.9% in december according to the national bureau of statistics. it said weak price

>> 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

in other markets, in europe, you're seeing the chinese ven r vendors like huawei, they're moving at a faster clip in terms of innovation. so there is a risk so apple has a huge in-store base that's where it's at strength. if you look at it making more and more revenue from services, those services sell to apple's in-store base. it's an in-store base story versus new product >> all right >> one thing that's come up in this discussion is whether a company like apple should bring some of its production back into the u.s., given all of these trade disputes huawei certainly kind of has that side where it's a chinese company. is there a case that apple should try to insulate itself a bit more from these tensions in light of what we're seeing with china specifically >> yeah. that's a difficult one for me to answer foxconn and pegatron, the two main manufacturers of iphone products are based in china, at least their large factories are based in china foxconn has committed to invest in manufacturing in the usa. but it would be a big shift to bring manufacturing back to the u.s. >> well, excell

as a consequence of that disagreement in november >>> washington looks to step up its case against huawei as it looks to extradite the ceo eriksson says it won't create a divide >> the economics will speak in favor of a global standard that's what's going to bring device prices down it's going to bring price of connectivity down on a global basis. that will benefit everyone >>> the chairman of roush says he is extremely cautious of mega m&a in the pharma sector, but tells this show it's always on in the cards >> it's always a consideration in individual companies to be taken. in our company we will be extremely cautious to go that way and is obviously also depending on the need you have >>> hello, and welcome to "street signs" brought to you from the economic forum in the swiss alps today the global economy is slowing. the imf has downgraded its growth forecast for this and next year. the funds managing director christine lagarde kicked off her appearance at the event by raising the alarm about the impact of trade tensions also citeding slowing growth in europe, china, and emerging market

. >> huawei, go after the cfo. i think that the world has turned against huawei. i was getting some feedback from ericsson saying, listen, don't give up on us. we can come back a tweet i had about how our actions are not doing well enough because of the chinese. it worried me they came back within a minute. it is great they followed me bad, i'm worried about the image, but ericsson should be killing huawei crushing it. >> nobody is killing huawei. >> nobody. >> huawei succeeded in part because they do come in at a lower price point and apparently also with equipment that a lot of people really like and are willing to work with people. there is a reason that they have succeeded and it does go beyond this idea that they're just spying on everybody. to your point, they are getting -- >> let's get to the opening bell at the nyse. and the s&p 500 at the cnbc real time exchange, at the big board, it is retro atlanta chamber celebrating 53rd super bowl in atlanta. we'll see arthur blank of the blank family businesses, co-founder home depot and roger goodell, the nfl comm

we've reached out to the doj and huawei and will update when we have more. this is more pressure on huawei, biggest smart phone worker in the world, it comes in the wake of its cfo being arrested in canada and growing concerns here in the u.s. and around the world. >> clearly, deidre, doesn't help the feeling and mood when it comes to u.s. and china when it comes to trade talks this has become a lightning rod in terms of that relationship. >> that's right. it has broader trade implications, so certainly hu e huawei has been a tech company that has been caught in the middle of this it will be interesting to see how this shapes up remember when the cfo was arrested and released on bail in canada, president trump said he wouldn't hesitate to use her as a bargaining chip. this specifically is about intellectual property rights what's interesting about this report, it cites a specific case involving tapi, something that t-mobile developed and i'm not sure it has gotten that far at this point but with something to point to, an actual technology, this story could h

informing the canadian government it plans to seek extradition of huawei's cfo. the u.s. and canada have abused their extra dags in this case, china says we'll keep an eye on that. >>> a japanese court denying bail for carlos ghosn. ghosn of course has now been in prison since november. he tried to offer up concessions for his release. but a judge in tokyo denied his appeal the decision means he'll remain in jail until at least early march if not longer. >>> and it is day 32 of the government shutdown. the tsa says unscheduled absences rose to 10% on sunday more than three times the rate on the same day a year ago becky and i made our way through the airport then i gave one of the officers a hug. >> they were in pretty good spirits. more power to them >> and a lot of love coming to them most people give them a hard time not this time around >> if you ever feel inclined to do that with me, just don't. >> a hug >> yeah. just don't >> touche. >> spare me. >>> the recent recovery on why our next guest is expecting a recession in 2020. we spoke to steve schwarzman about it, he

huawei makes a nice phone that has a great camera and is every bit the status symbol at the moment in china. i think -- i think the trade war has that impact in addition to all the more tangible economic challenges and also we're going to see, this is going to spread throughout the tech sector, china and the u.s. are super inner dependent now. as they have this rivalry, there is nonetheless this inner dependence that neither side can get themselves out of. china needs u.s. software, u.s. chips, u.s. needs chinese manufacturing. for all the tension, they still need each other very much. >> china has been in terms of growth a driver for apple, but in recent quarters it hasn't done as well as maybe many people had expected. i'm wondering because, you know, there are two scenarios here, this is the brunt of what caused the revenue guidance lowering is because of china macro, or perhaps apple's phones don't appeal to the chinese market anymore and that may underscore the point that a lot of bears have, and that is that apple has been very slow to innovate or they haven't had a really innov

huawei's lawyer said its cfo should not be a hostage in the u.s.-china relations they're acting like it's totally related. the cfo is due in court to discuss bail terms later today >>> some stocks to watch today as well. fourth quarter earnings for whirlpool coming in mixed. the company posted a strong beat on earnings per share. an unexpected decline in revenue. the are pliens maker also issuing a disappointing outlook for 2019 whirlpool citing higher raw material shipping and tariff costs as well as softening industry demand. saturday, you can see shares down by 5.25%. israel's finance minister says that intel will invest about $11 billion on a new chip plant in the country. last year intel pledged to spend $5 billion to upgrade its existing factory in israel the company hasn't commented on that new investment. its stock down by about one-third of a percentage point. then sap plans to undertake a major reinstructing after missing its profit and revenue guidance of 20 18. key metrics for the business software maker, including new cloud bookings, s

let's talk about huawei saying it would never allow the ceo to access data. and coming out and praising president trump as well. remember, the cfo's daughter is still under arrest in canada at the request of the u.s why do you think the ceo is now speaking out >> he has to try to save his business he's getting shut down all over the world, as the five english speaking companies said no more huawei the new polish spying accusation as well. he has to say this on its face it has to be untrue. it's the law in china. if there's a national security issue you have to hand over the data that happens in the united states, too, where we have a much more robust system of law >> he's going to come out and say no china doesn't use our equipment to spy but until the chinese law itself changes >> he kept saying there's no back door way to get in. that's not how it works. when you go to g 5 you're going to precisely know where nearly everyone is with their phones. >> oh, joy. >> it's not for him to say from what i can tell. >> they have lost tons of business now, it ain't ov

they should be the big beneficiary of the chinese turmoil, huawei, but they're not. that's because they're not that good of a company. a lot of judgment. and that is the end of the lightning round. >> the lightened round is sponsored by td ameritrade >>> monday, kick off the trading day with "squawk on the street." live from post nine at the nyse. >> this is the greatest -- this is like 42 different things. >> it is a lot of things going on here. >> somehow, it's regarded as being a nonevent what else do you take with you every second >> it all starts at 9:00 a.m. eastern. patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪ from capital one.nd i switched to the spark cash card i earn unli

i think they want to by huawei. i don't know who understands that in the country other than people who remember 1947 to 1949. >> we'll hear a lot more. we'll see you in just a couple of minutes. we'll be right back. people tell me all the time i have the craziest job, the riskiest job. the consequences underwater can escalate quickly. the next thing i know, she swam off with the camera. it's like, hey, thats mine! i want to keep doing what i love. that's the retirement plan. with my annuity i know there's a guarantee. annuities can provide protected income for life. learn more at retireyourrisk.org why go with anybody else? we know their rates are good, we know that they're always going to take care of us. it was an instant savings and i should have changed a long time ago. we're the tenney's and we're usaa members for life. call usaa to start saving on insurance today. >>> thank you for everything. make sure you are back here tomorrow. it's time for "squawk on the street". ♪ >>> good morning and welcome to "squaw

now, embattled chinese tech giant huawei launched a fresh chip in a bid to expand its cloud offering huawei director william chew told cnbc in an exclusive interview that quality products will help the firm develop new business. >> because i believe the arm server has its unique advantages in certain scenarios, only by achieving good quality products can we win over customers. we'll obey laws and restrictions in local markets and eventually make products that are recognized and welcomed by customers. >> the 2019 consumer electronics show kicks off in las vegas this week analysts expect a series of announcements from major u.s. technology firms we'll be live from las vegas later today for a first on cnbc interview ibm ceo ginni rometty. u.s. markets rallied strongly on friday the dow, s&p and nasdaq posted first two-week win streaks in two months tech led in early trading and u.s. and chinese officials as we already mentioned restart their talks today. we take a quick look at the u.s. futures this morning ahead of the open on that side of the atlantic the dow jones being called slight

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

products in china because of what happened with the huawei cfo? i'm not saying ignore the quarter. >> jim cramer brought that up as well. >> is there an asterisk on the quarterba quarter? >> on this guidance or the quarter coming up. >> on the 90 days prior to this. does apple get a pass because there was a bunch of other things happening. >> roger marist has an asterisk and so apple should have an asterisk there's not a -- >> bobby bonds has an asterisk. >> as does sammy sosa. >> barry barry bonds. >> i think you run from 142.5 back to 158, i say fade it. >>> from phones to planes, boeing up 23% in the last month. let's go ted seymour. >> you can call me ted, that's okay, billy. the bottom line is you have a question that has dpgiven guidae on the 727 planes. looks like china is still in there buying of all the companies that are going to report, if there's a company that's been most predictable in terms of free cash flow and their ability to generate eps growth, it's boeing by the way, at 365 to 375, major breakout level maybe you miss it on thi

do you think the future of huawei is going to be in the united states? >> well, that's a pending matter that's in litigation there are a couple of charges that have been made. we'll have to see how the canadians -- >> is that being used, though, as a negotiating position? when we firsted talked about zte. you said that original arrest was not a chess piece in all this later the president effectively said you know what it's going to become one if it wasn't then, it will become one >> well, it wasn't in the beginning at all nor was huawei that warrant for that lady's arrest, the huawei cfo, was issued in august, not now. it took quite a while to get to a place where nay could apprehend her. because she was not coming into the u.s. any time soon she went into canada, the canadians and u.s. have a good extradition treaty and that's what led us to where we are >> are you personally writing this auto tariff report that's coming out on february 7th you're involved with it. >> it's very much a group effort we've been through lots and lots of drafts of it, lots a

>> hello, everyone here's when's happening at this hour huawei executive juwanzhou at a canadian court and fallout continues between china, canada and the u.s., canadian prime minister trudeau said he'll hold firm on the rule of law. >> we are focused on fulfilling our international obligations, treaty obligations, making sure that the rule of law is consistently and sbintegral applied and the law is respected. >>> new charges for the man accused of killing 11 people at pittsburgh synagogue bowers facing 19 additional federal hate crime and firearms charges for that october shooting a federal grand jury returning a superceding indictment today. >>> you may be genetically programmed to be a night owl or early risers researchers finding a genes to shift natural waking time by up to 25 minutes. little kids do that, as well they shift your waking time as morgan well knows. >> ha ha i do and as you do, too. >> you got it. >> all right well, thank you for that, sue. >> see you soon. >>> "wall street journal" reporting some investors blame the market volatility on the fed's shrinking portfoli

extra diction of cfo to the united states also unsealing 13-count indictment against huawei and meng for bank and wire fraud and on strublgti obstructing a grand jury and a week where we see the chinese trade delegation involving vice premier liu he in the united states. shees been she's been in custody in canada. here we have it now. the u.s. indeed canning for her extradition, a new chapter in u.s./china relations back over to you guys. >> okay. fascinating. now with more on this, let's bring in kayla tausha. what's the latest take from d.c. on this? >> reporter: it's interesting to hear the acting attorney general to hear that the u.s. had a commitment to the rule of law. there was some suggestion that perhaps this extra diction could have been a pawn in the u.s./china trade talks set to happen in d.c. this week the president said last month if potentially not extraditing mentiong wanzhou then he was open to negotiating. and not sought for political reasons and asked to step down from the post and the u.s. is saying that it's committed to pursuing the rule of law in the united sta

because of his relationship with huawei, huawei is part of inside softbank inside softbank they use huawei servers. there's been questions about whether they're going to be able to continue to buy technology everywhere did people talk about that at all? >> you know, this past week i have -- i've been hearing more and more of those kinds of conversations. i don't know that i have more insight than you do. but it's now coming up which is why i think that 2019 is going to be -- there's going to be a lot of questions around softbank and its strategy that might be different than the questions we were asking in 2018 >> then the final question goes back to saudi. they committed the money to the first vision fund and then the second vision fund put the second vision fund to the side do you think they're going to struggle in the future making new investments? meaning even though there's technically a commitment by the saudis that there's going to be continued pushback on any investment or do you think it's specific to wework i've heard over times there were times softbank tried to make a deal, call

got to buy a huawei because here we are saying huawei is an outcast if not an outlaw in the u.s. if the trade -- if they get an end to the trade zbudispute, yol see apple go up, you'll start seeing those kinds of discounts you need but without it, i think you'll see more estimate cuts, apple and then just have to say, well, i'll pay nine times earnings it is worth 18 times earnings. >> interesting 12 years ago this week, steve jobs unveiled the iphone for the first time, just as a reminder jim, it has been amazing work. a lot more on cook's interview with jim a little later. >>> still to come, an exclusive with zdiscovery's david zaslov micron, b of a, nike, lowe's and more all of that when "squawk on the street" comes back at&t provides edge-to-edge intelligence, covering virtually every part of your retail business. so that if your customer needs shoes, & he's got wide feet. & with edge-to-edge intelligence you've got near real time inventory updates. & he'll find the same shoes in your store that he found online he'll be one happy, very forgetful wide footed customer. at&t pro

from the politics >> but zte became part of the politics >> the attention for the extradition for a huawei executive. these elements are the context then all sorts of stuff can come apart at the seams it's hard to do business if we don't have an agreed framework >> go ahead. >> i would just ask in terms of the way the economy's working out and how that influences the negotiations, it seems like we worry about a hard landing in china every two years. and china has a pretty standard playbook as to how they deal with it. what are your thoughts on that now? we saw them cut the reserve requirement last week. are you going to see more stimulative actions from china to ease the path for which to give them more time to negotiate? >> there are two-year cycles there are five-year cycles then there are 50-year cycles in an economy and china especially, a lot of the heavy structural stuff the u.s. is saying has to be in a deal, this is new, this is not just something that happens to happen every couple of years this is stuff that needs to get put on track for the decades and decades ahead. china has t

i think that the chaos, whether it be brexit, the wall, the chinese huawei cahaos, germany slowing down kirkland's got a very good growth profile these guys are getting together, these gold companies. >> yeah. it's considered the late stage consolidation. >> right about time, though. >> you need to pick your dance partner to try to compete. >> is this something that people talk about gold companies are getting together because it's finally rationalizing. >> how many deals are left to be done now that you have two big guys having made their choices >> i'm going to talk to kirkland about what they see. i just feel like what's happened is their grade of gold is getting better and better, but a lot of the other guys grade is going down because they can't find cheap gold. these guys are in canada and australia. they're not like rand gold which is in a lot of places that you might not want to go to. i said i don't know if i want to be exploring in west africa. he said that's because you're a sissy and i justnodded no one's ever called me a sissy before. >> that's some hard core business trave

deidre has the plan to extradite huawei's cfo and phil lebeau has more on denied bail conditions. >> canada's ambassador to the u.s. has already met with senior white house and state department officials about the case and the u.s. will be filing a formal extradition request. now, the u.s. has until next wednesday to do so that's 60 days after he was arrest on december 1st and that could shift the pressure to the u.s./china relationship. so far canada has paid the price in terms of blowback since her arrest, china has detained two canadian citizens an given the death sentence to one found guilty of drug smuggling. >> canada is a country that abides by the rule of law. and when you have an extradition treaty with a partner, you honor it that's exactly what happened and there will be due process. there was no political interference in that decision. our judiciary is independent that's the signal that we're sending to the world and much of the world agrees. >> huawei and chinese officials have been careful not to threaten the united states for its role and requesting the arrest in the f

. >> is there a substantial take one way or the other on huawei for the companies you're talking to i know there's political noise around the degree to which its product is reliable. but there hasn't been a ton of specific evidence of the product being compromised, especially in the context of cisco's product was compromised by the u.s. government a few years back. in your conversations, what's the read on that >> i'll take it even a level higher you're seeing a lot of conversation around data privacy, security, ip protection you see tim cook at apple write about this a lotte recently. and you see companies talk about it you can take it back to facebook they talked about putting more resources to data, privacy protection i think there's more focus on this from an investor point of view, what's the incremental cost attached to make sure data is protected and ip is protected. >> let's dig into that more. one of the conversations we had multiple times on this show last week, maybe the risk of regulation here in the u.s. had abated, in light of all of the gridlock in d.c., can't even get

we had that arrest last month of the senior executive from huawei, meng wanzhou and there's been more mixed messages coming out of washington about what that arrest meant and what may happen next does that lack of university have any significance when it comes to the u.s. leverage >> it leaves the chinese unte uncertain of where they stand. are senior executives of chinese companies at risk if they go abroad they don't nknow where they stan with this. trump appeared to be willing to use the main case as part of the negotiating process, which would be very dangerous. so the chinese in many ways don't quite know where they stand with trump they're not the only ones. >> jonathan, thank you very much for joining us this morning. >>> i wanted to take you to the u.s. ten-year yield. it's been a key focus point for investors over the second half of 2018 in particular. we see where it's trading now, 2.66%. that is marginally higher than where we started the year. so we will continue to watch this and investors very closely watching the inversion of that yield curve to see if we see any furthe

huawei is gaining share in europe that's part of this bigger apple story. it is losing out to some local chinese players. in china it's the fifth biggest smartphone seller. so when it comes to europe, you're kind of caught in between this push/pull between apple and other smartphonemakers gaining share. the other dispute is over ip, which we have seen play out in the qualcomm debate and in the munich ruling a couple weeks ago. no doubt europe is caught in the middle when it comes to apple. >> got you thank you very much, elizabeth shultze. joining me now is dan ives, apple analyst for web bush securities he has a buy rating on the stock with a $275 price target that's currently under review. you have been one of the biggest bulls on apple on the street how do you feel this morning about that call? >> it was an apocalyptic quarter. softness is something that we saw as well as a lot of come pettedt competitors in the supply chain. i think it was the degree of softness that shocked us now going forward, fundamentally there's a fork in the road you either view

. >> huawei has reported a record $52 billion in consumer product sales last year. the embattled chinese hardware maker said strong smartphone demand made the consumer unit its largest revenue generator. the company also unveiled its first chips that built for 5g towers despite being excluded from many country's 5g roll-outs. our colleagues stateside did speak to some of the biggest names in tech to get their take on the battle being fought over their industry >> certainly we've moved some things out of china based on the tariffs and the various rules that are in place. we've got a flexibility supply chain. it's largely been unsbrupd from the perspective of our customers. >> for us the effect is ultimately slightly indirect because the co--business is both incredible and incredibly local. 95% of what you bring was actually made in that country. all the cokes in china are made in china, and all the cokes in u.s. are made in u.s >> our business in china is still relatively small it's less than 4% of our business the impact on that side is less severe and has the poten

which is where a lot of the growth is supposed to be coming from or at least outside the united states, huawei i think are stealing share. that is one aspect the other aspect is in china especially, smartphones are different than elsewhere the operating system, they only use like two or three apps we chat is the most used app. and that makes the hardware more of a commodity and you can switch devices that much more easily and that is where the innovation question comes in, what will apple do to create a moat specific to those customers. in the us, photos and imessage is certainly part of that, but we don't see that in china and he also wher elsewhere. >> and jon, back to your point about longer term, even if tim cook says something now that sounds favorable about the trade deal or about the chinese demand, how do they stay relevant in the chinese market >> i'll take a little bit of a counter to what ed just said i think that too often we tend to look at these products in isolation. like there is a phone and innovation exists just within the phone. it is important to note the last time there wa

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

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

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

we realize apple is not doing as well in china because of huawei. they're talking about -- we have been waiting for this, luckin, a competitor of growing strength in china what is mo nike, as sara knows, but interesting to watch, because starbucks has been such -- it has been such a great stock since kevin johnson started using the money for nestle's to buy back stock this is a temporary pause. it is worth watching there is a competitor of note that is finally surfaced that really may threaten the starbucks franchise to some degree luckin not leanin, that's related to facebook >> jim, the same goldman note downgraded yum, which you referenced, also valuation, but they also say that rising interest rates and the exposure among the franchisees and how that's not a good business model to be in when you have increasing concerns about credit and rates. >> i thought that was fatuous. we have seen the franchise model for domino's do incredibly well. when they did theiich said it is up too much, i don't know, the numbers have been extraordinary for yum. i'm

semiconductors and other telecom components to huawei and zte. china responding to that lenls las vegas calling it "hissaria." zte, it's been beaten upthe last couple of years down another 3.5% right now. >>> still ahead on "worldwide exchange," rising risks in american real estate we've got an alarming new government report on the housing market diana ohlich is live on set with you next first, more on the d.c. dysfunction as the shutdown now enters its 27th day. no sign of a break in the impasse. dow futures down 90, and we are back after this. rebekkah: opioids has taken everything and everyone i've ever loved away from me. everything. i blew my ankle out and i got prescribed pain pills by my doctor. if making my detox public is gonna help somebody i'm all for it. i just wish i would've had a warning. (danny) (client's voice) ...that you're not using smarter tools to manage your business. you work too hard to work this hard! collecting receipts? is it the 80s? does anybody have a mixtape i can borrow? you should be chasing people's pets... ...n

it's a brand easily avoided especially when phones made by huawei are getting much larger subsidies, but the chine oost communist party starts making nice with tim cook, that's a positive development the stock traded poorly today, but it's had a good run off the bottom i say the same thing, own apple, don't trade it, but the most important show of good faith would be for china airlines to place a gigantic order of planes with boeing, an order that would reverberate throughout the entire aerospace complex hey, by the way, it's finally starting to trade like an aerospace industrial stock again. all of these industrials started acting better this week, although it's obviously in tandem with fact they're no longer fighting the fed. still, we're starting to sort out winners and losers in china. the nikes and lululemons of the world are holding up just fine, but after last week's jarring apple news and the downgrade of starbucks, we know the chinese consumers are beginning to take time not good news for any american companies that do business over there, even if many of their stocks reflec

not boycotts, we know that's off the table but patriotism in a strange way, meaning if i can get a huawei with the subsidy, why should i get an apple it's conspicuously american. how long can that last >> here's what we saw in china, specifically the chinese economy, it seemed to us, began to slow maybe in the second half of the year, and it was on some sort of rational trajectory we believe, based on what we saw on the timing of it, that the tension, the trade war tension with the u.s. created this more sharp downturn i believe that's temporary, because i think that when you really look at it, it's in both countries' best interest to come to an agreement. it is a complex -- very complex trade agreement and it needs to be updated but i'm -- as i've said before, i'm very optimistic that this will happen, and so that could -- that clearly will be good, not only for us, frankly, but i think more about the world in general, the world needs a strong u.s. and china economy for the world economy to be strong >> my understanding is even the hardliners in the white house have moved on this issue i

i wonder if the criminal charges federal prosecutors filed this evening against huawei, which is china's largest smartphone maker will even dampen the enthusiasm. serious stuff that i believe -- let's put these bowling balls in context. caterpillar had a huge year in 2018, sales up 20%, records earnings per share they earned $2.55, sounds like a lot, but wall street wanted $2.99. that's a big differential, and their full year earnings guidance is substantially lower than expected. some of that bottom line disappointment came from higher raw costs but the most jarring part of cat's conference call came when the company discussed china. here's what they said, and i quote. we are forecasting the overall china market to be roughly flat in 2019 following two years of significant growth china represents about 10 to 15% of our total construction in industry sales and 5% of total caterpillar sales and revenue end quote. book, that's what did it the strength cat saw in the rest of the world, especially in the united states couldn't offset that chinese weakness. why wasn't that enough to crush the