firms by huawei. he said that the doj would be seeking extradition of the huawei cfo from canada. this is the latest from the u.s. in terms of actions against china's largest tech company. they continue on the national security front to push the allies from the u.s. to block while way technology -- while huaweihnology -- technology. ordi: this is either awkward strategic timing, a couple days away from the chinese delegation arriving in washington. for trade talks, how will this play out? the wilbur ross came out at press conference and made a point of saying these charges were separate from the ongoing trade negotiations. but for many in the u.s., while is symptomatic of chinese nefarious attempts to lead in technology. they describe it as a company that gets an official state toking and is trying dominate in next-generation technology. it is hard to see how the case does not lead into these talks. trump muddied the waters by telling reuters he would consider waiting into the case if he thought it would help get a trade deal between china and the u.s. did something of a u-turn on

pressuring allies to back huawei. unrelenting, you have a federal investigation in seattle into allegations huawei stole trade secrets from companies like t-mobile, and the case in poland with the arrest of an huawei employee of allegations of spying. you have a campaign by the u.s. to pressure its allies to block huawei. if you look at australia and new zealand, they have had success, the u.k., canada, japan, mulling how much they will allow huawei to sell their equipment into those countries. that campaign by the u.s. is expected to continue. it feeds into the trade talks which are expected to continue on january 30 and generally 31st when the vice premier of china travels to washington. huawei will be a focus on those by many in the u.s. as symbolic to the chinese ambitions. we have some breaking news, president trump has canceled the u.s. delegation trip to data week,- davos next according to sarah sanders, saying this is on account of what is going on with the shutdown. we heard president trump canceled travel pl

has taken with regards to huawei , which it regards as a security threat. huawei. contends that has the potential for spying on americans. froms effectively banned supplying equipment for the u.s. networks. this comes after the arrest of the wild way in canada on charges related to iran sanctions as well as the arrest of another while way executive on spying charges. the trump administration has been trying to pressure allies as this was going on to keep huawei out of western networks for security reasons. this is another big step in that. >> was there anything in particular that sparked this investigation? >> it seemed to be stemming from a lawsuit brought against t-mobile -- brought by t-mobile against huawei. a jury found huawei liable for manipulating a technology. had said that technicians stolen technology for a device that was used for testing mobile phones, and the jury ruled in their favor. this same investigation seems to be following along the leads that were brought in that civil trial. huawei, of course, has been under pressure not only in the u.s. but

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

even if they deny this which is the case against huawei. mnuchin and wilbur ross came out and said the investigation into the chinese telecom company is separate from the trade talks, but the chinese will remember what happens when president trump softened the punishment of zte after a phone call from president xi as a favor. something else the chinese may be looking at is the political weakness of trump given the shutdown and the fact he stepped away from the shutdown, back down in the face of pressure from democrats. that may a lesson the chinese take on board. when push comes to shove, president trump has and can backed down. shery: the strategy seems to outlast china when it comes to economic concerns. we are now seeing further signs of a slowdown in the world's second-largest economy. tom: yes, you are absolutely right. of ans. is very cognizant ingrained slowdown we are seeing in china. that was articulated by some of the provinces. 30 provinces have announced gdp targets for 2019, 23 provinces have lowered those, including the two la

huawei's at the center of washington's fight with china. it is accused of stealing technology and posing a threat to national security. it will expand to many other industries and countries. matter if it is large,or local, small or no matter what sectors, it will be affected. jessica: theresa may is being membersf increasing -- are worried the government is sleepwalking towards a hard brexit. tuesday's cabinet meeting heard a call for threatening of no brexit at all. other ministers set a no deal outcome should stay on the table. brussels said theresa may should simply say what she wants. >> we continue to follow very closely the ongoing parliamentary debate in the u.k. we ask the united kingdom to clarify his intentions as soon as possible. at this stage, we are nothing new to say from brussels because there is nothing new from london. jessica: google is considering pulling its new service from europe as regulators work towards a controversial new law. eu's copyright directive will give publishers the right to demand money from web platfor

also the fight with huawei, both sides speaking out. premise or trudeau has been calling other -- prime minister trudeau has been getting other leaders to step up to china while they fight back saying don't engage in microphone diplomacy. this should be bilateral. here is what jim carr said. jim: we are going through a , but this didn't begin yesterday. it goes back decade in -- decades and is multilayered. we are very concerned about the two canadians being detained. we believe it is arbitrary. we believe in the rule of law as expressed by the independence of our judiciary, and we also think the imposition of death on a canadian citizen is unacceptable and we are reaching out to our allies to make sure this is in the interest not only of canada but others. kathleen: your conversations with washington, conversations with colleagues around the world , of if that might happen, and if it would, how important would p? t be to the cptp jim: if the american community believe it is in the american national interest to come onto this field, we

the canadian ambassador has resigned after comment he made about huawei. -- comments he made about huawei. tom: yes, china and canada are facing the most severe test of their relationship. china,s ambassador for resigning friday. this was following the reported comment intimating media he suggested the cfo of huawei had a good case, strong case to make and suggesting if the u.s. was to drop their extradition case, that would improve relations between canada and china. to remind you, the cfo of huawei was arrested in vancouver. she is out on bail. this has caused a lot of tensions. china has arrested two canadians the canadians say in retaliation of the woman. another was given the death penalty over a drug case. a lot of friction, now the canadian ambassador of china resigning. really pivotal moment in these relations. sour sentiment. all it does all right, venezuela has abandoned its decision to cut to the medic ties with the u.s.. this marks a de-escalation -- cut diplomatic ties with the u.s. this marks a de-escalation after juan guaido was recognized as the rightful head of state. ros

huawei has said all its products are safe. spacex will cut about 10% of its workforce, the vast majority of 6000 based at its headquarters in california. others working in seattle, florida, and texas. 577 jobs in california including construction -- including production managers, machinists -- infantry staff area staff. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am paul allen. this is bloomberg. onry: the impact on brexit forex. a senior currency economist plus us later this hour, the effect on asia. we speak to -- this is bloomberg. ♪ this is daybreak asia. i am haidi stroud-watts. shery: i am shery ahn. we are waiting for chinese traded data -- trade data expected monday with growth 2%.cting to slow to despite concerns, our next guest says the world should prepare for a new asia first regime. haidi: the future is asia, also the managing partner of a strategic firm. he joins us from singapore per your we last spoke at the worl

haidi: the standoff between china and canada over the arrest of huawei's cfo has taken an interesting twist. he has a strong case against being extradited to the u.s.. stephen engle has been following these developments. and it is an interesting turn of events, indeed. this is another case of canada saying our hands are tied . this is an extradition request from the united states. we are honoring this request. it is not been politicized. comments from the canadian ambassador to china are perhaps the strongest word comments from canadian government officials because it also kind of lens asdence to the case of -- she remains on bail and vancouver, awaiting the possible extradition to the united states because the united states has filed that extradition or plants the file that extradition request on their charges against the huawei cfo. this is what john the column had to say. -- john had to say. he held a press conference in a suburb of toronto which has a heavy chinese community, and most of the press that were in the press conference were chinese press. he said i think she has quite

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

founder of chinese tech company huawei has broken a years long silence to dismiss allegations that it has helped companies spy . the company ceo denied official espionage saying he has no regular contact with the government. global news 24 hours a day on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm hall alan. this is bloomberg. >> still ahead, more of the fallout from theresa may's landslide brexit dispute. >> this is bloomberg. ♪ berg. ♪ >> the government of china increasingly turning to tax cuts as a first line of defense against a slowing economy. correspondent tom mackenzie joining us from beijing. they are focusing on tax cuts, even more than, say, the pboc's monetary easing. why is the focus here on fiscal stimulus instead? to be the government in china is concerned about not wanting to go back to that debt-fueled infrastructure spending. they want to hold the line on financial risks. that seems to be pretty clear, so this new playbook is focused on tax cuts. largely in last six months or so, i will just rec

the committee concluded national security was threatened by huawei's failure to improve its devices and software. india said to be considering a plan to transfer cash to farmers, instead of offering subsidies for farm products. the modi government could spend almost $10 billion combining all subsidies into a single annual cash handout. the plan comes after the ruling was defeated in polls last month. india faces a general election this may. global news 24 hours a day, powered by more than 2700 journalists and analysts. this is bloomberg. paul: thanks very much. the international monetary fund with a forecast of the global economy as trade tensions deliver the weakest expansion in three years. watching this is our global economic editor kathleen hays. she had a look through the reports. this is the second downgrade in three months, so what is the biggest driver? kathleen: well, certainly, one of the very biggest drivers is the slowdown in europe. it looks like it is going to be led more than ever by germany. this is not just on as davos starts the world economic forum meeting, this is a

it is about text of privacy, ,ntellectual property, huawei what is going on in canada. his are not issues we find short-term solutions to? stephen: absolutely not, these are longer-term issues the united states is digging in the their heels. they want to see further pledges, timelines, and reform coming from the chinese on those technology transfers that have led to what they say is theft of intellectual property rights on a systemic level. they arese have said drafting new laws to give more teeth to the ip are laws. they will have to show much more promise more schedules and time frames into how deep the implementation would necessarily go. of course, there are all kinds of deep issues. if there is going to be a trade deal, it will be the chinese pledging to buy more u.s. products which they have done. also, more access to autos and financial institutions which they have already done. you can see the pattern. it all depends on who gives and takes and how much of a watered-down deal to kind of alleviate the pressures so they can get to be tougher issues down the road. t

beginning on this company, that maybe in the short-term they are not going to rival the likes of apple or huawei, but in the long-term if you believe in this company, it will come back. shery: we will be watching that in the hong kong trading session. shelly banjo, our tech reporter in hong kong. we will be speaking to our next guest about the implications of this continued government shutdown taking place in the u.s.. we're counting down to the next hour, the u.s. president is did talk to a nationwide address to talk about the shutdown and his argument for the border wall as well. this is bloomberg. ♪ haidi: this is "daybreak asia." i am haidi stroud-watts in sydney. shery: and i am shery on. president trump expected to make voters over the government shutdown for funding the border wall. jeffrey, great to have you with us. will this public appeal were? jeffrey: i doubt it. minds arest people's made up over the usefulness and morality of this wall. it is been the subject not only of trump's presidential campaign in 2016, but the midterm campaign last november. i think mines are pretty well se

two other canadians remain in custody in china while the huawei cfo -- global news, 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am stephen engle. this is bloomberg. haidi: let's take a look at how asian markets are shaping up this morning. we have been sticking to a few people about this idea that asian markets priced in the slowdown in china. that does make sense when you take a look at the moderate reaction we see so far today. sophie: we have the mood turning a touch positive. japan joining region all gains up .1%. the nikkei 225 building on last week's 4% advance, led higher by financials, health care, and tech. the kospi leading regional gains afterume the events friday's decline. take a look at currencies broadly higher against the dollar while the yen holds gains at low levels. there was a drop of we saw in aussie imports to china for the month of december. and the cnh trading below 6.76 as analysts see more games to addsfor the yuan, which pressure for beijing to trade with the u.s.. stop move