the wall streetjournal says huawei could be indicted soon. the company has refused to comment on the reports. our technology reporter dave lee has more from san francisco. huawei is being accused of stealing trade secrets from t—mobile us, including a concept known as tapping. it has devices on its networks. according to us reports, the state of the investigation means there could be charges relatively soon. neither huawei all t—mobile us have commented on those reports. huawei is effectively blocked from greek any business in the us because the american security services are concerned that ageing eight years the compa ny‘s devices concerned that ageing eight years the company's devices and products to spy on americans. tensions between the two countries have been intensified recently because huawei's chief financial officer was arrested in canada late last year. she is accused by the us of engaging in massive bank fraud. the next hearing in that case is due to take place early next month. we will discuss that further in our news briefi

not a coincidental timing of these charges with huawei. i think i have little faith in the trump administration's ability to do a deal. what i have faith in is the need for both xi and trump to get a win here and stabilize both of our economies before we really see a global recession in the next year or two if this stuff does not get worked out. that is when people question the leadership not only in china, but also in the united states and we have an election year coming. i cannot imagine with an election year coming and how poorly the republicans have done that they are not pushing to resolve these issues, refocus back on growth and all the positive that can happen from two of the major economies in the world working together. are they smart enough to do this? the chinese are smart enough to get it, but we are relying on what i consider very unintelligent people to represent us. i'm not confident. i think greed might overwhelm intelligence here. haidi: it is also a longer-term issue. whether you look at this huawei situation as legitimat

demands to know longer use huawei equipment. emily: there's a lot to follow and we will bring you all the latest as we have it. aftershares fell monday reports of saudi arabia's stake. it faces little exposure if the stock drops. saudi funds played a key role in elon musk short-lived efforts to take tesla private last fall, but it fell apart after he failed to line up financing. many of tech earnings to look ahead to this week along with some mornings. ofwill speak with the ceo arbor kawasaki about where the bright spots might be. this is bloomberg. ♪ ago, netflix came out with fourth-quarter results, and they were mixed. they added a higher number of subscribers, but missed on revenue. the company is expected to add 30% you are new users versus the first quarter of leicester. i guess has a substantial investment in netflix, apple, amazon, and alphabet. overompany has invested $800 million in second media companies. garber, ray to have you on the show. there have been underwhelming reports, do you think it is a warning sign fo

against using huawei's equipment. emily: your team has so many stories about every single angle on this huawei story. the title of one of them is u.s. message to the world: do not trust china on 5g. how will others receive this message? tom: they have got a way -- your desire to use huawei's lower-priced and arguably reliable equipment when it comes to 5g, and this assertion by the u.s. government that china can create -- huawei can create a backdoor into china. that this represents a potential security threat for your country, your sensitive trade secrets, possibly your national security. that is a trade-off that a country has to make. do i want this equipment or do i want the potential for backdoor? where we see the u.s. needing to be more forthcoming possibly is is to -- possibly is to show more why huawei is a threat. yes, they are stealing ip allegedly. yes, they are violating u.s. trade sanctions, but are they a real threat to national security in terms of creating a backdoor for china? are they saying to china'

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

>> it was not just about huawei. last year, we saw the supplier ban, zte, that was lifted. that nearly crushed the company. i wonder how will it compare and how well-positioned is huawei compared to zte last year in overcoming all of this? samm: zte was so dependent on the u.s. market that a denial ban would have brought a company to its knees. i don't think it is as grave for huawei but when we are talking about u.s. going out to partners and saying block huawei, that is crippling to a company that is really ahead at looking at the market and being a leader. they will have to reassess their business model. emily: i'm curious what you read between the lines between what we heard from the canadian foreign minister in terms of how well the united states and canada are actually aligned here given the conversations the u.s. is having with other allies around the world to block why huwawei. samm: canada is essentially paying the cost for an issue between the u.s. and china right now and it is very dicey. i will not unders

and even the detention of the cfo from huawei. emily: the trade tensions are potentially having an impact on u.s. businesses with apple cutting its forecast. we are seeing a slowdown in iphone sales in china. it is difficult to unpack how that is happening. in the meantime, cisco ceo was on bloomberg television earlier today. take a listen to what he had to say about this leading to a potential iron curtain. >> if it happens, it is bad. we need to figure out a compromise position to help both countries get to what they are trying to get to without breaking down the fundamental value of the conductivity in the first place. emily: you are behind the scenes talking to u.s. businesses, what do they actually want? >> u.s. businesses want to be able to operate in china with a level playing field. and not face undue discrimination in doing business in china. what is to become the largest consumer market in the world this year and increasingly the destination for r&d research related to ai. our companies want to be in china, however, they

plus, more drama for huawei. reports prosecutors in washington are close to bringing a new indictment against the chinese -- the chinese company. congresswomanness -- we take a look at this week's bloomberg businessweek cutter. let's start with a look at the major averages. it is a more positive session at there. massivet exactly momentum moves in any direction. that we are seeing gains across the board were both the narrow gauges of the dow but the broader s&p 500. tak is not the same leader it has been in the last couple of sessions. we see materials and industrials leading hot -- leading higher. depot, one of the standing outs to the downside. morgan stanley, we will talk about that more than 4% move lower for that stock on the day. we are watching the nasdaq, tech heavyweight after the bell. there is the 10 year u.s. we have seen treasuries very much in focus here. and on the day, we saw yields edging up a little bit as the risk off position is in place. shery: we have seen sentiment being supported because o

we don't believe there's any evidence in the world of any issues regarding huawei and huawei products, and we're more than happy to have a conversation with the us government about how to come up with a security insurance framework geared towards the united states. tensions rose further when huawei's chief financial officer, meng wa nzhou, was arrested in december. she is fighting extradition to the united states, where she faces charges of bank fraud, allegations she denies. and then there is the ongoing trade war between the two countries, which threatens to impact tech firms greatly. the climate is making it harder for chinese companies to find success in the us. chinese brands in the us have always struggled, so they never have had a significant market share. i think, with the amount of power that huawei has, they could have had a really big impact, again, as we've seen with the rest of europe, on the us market. most here hope and expect the trade dispute to pass, but there is a growing atmosphere of suspicion between the two global superpowers over how they use new technology. da

emily: even william barr says he is skeptical about huawei. say an indictment comes, what are the implications of that? 's predecessor also set up a china initiative to enhance investigations against chinese entities who are potentially either unduly influencing american entities or engaged in some kind of illegal behavior. and of course, huawei is at the center of that letter part -- latter part. this is consistent with what we are hearing from the trump administration. we want to get tough. huawei has had a target on its back for a long time. >> how could this impact the trade talks? >> it was interesting in december to watch the canadians take the blame from the chinese in the arrest or the detention of huawei's cfo. it seemed the chinese were trying to keep that issue out of the trade talk negotiations. thatd it hard to believe the two governments are not going to have to discuss huawei trade talksxt of because the chinese government is becoming increasingly vocal about this being outside the rule of law. of the supposed investigations, th

decides to go after huawei in a criminal probe. huawei, the biggest chinese smartphone maker. let's look at what's going on in the sector picture, looking at the imap on the floor, financials a bit of a mixed bag. profit warning a yesterday from nvidia and s.a.p. this morning setting the tone. s.a.p. really seeing growth in cloud, but a bit softer, a bit of a mixed bag. , interestingr given the sanctions in venezuela. miners as well higher. individual movers, what are you seeing? we see onar as what the stoxx 600 right now, a pretty even split. 250 lower.gaining, here are the winners. british american tobacco, roil off hold -- royal ahold. roche, novartis adding as well. hsbc the second-biggest gainer, over 1%. it is the more defensive stocks. banks and pharmaceuticals helping to push you up. bp, royal dutch shell, total all up. as far as the losers, swedbank earnings disappointing, down 3.5%. louis vuitton moet hennessy down 1%, daimler down 1% as well, so some of the companies down with earnings, daimler not out until thursday, but some earnings missing here, and some jockey

sally outlining the e§emé huawei, i huawei its huav expect, | its deg huav expect, we; deg no by these expect no disappointed by these charges and is denying that eight and meng wa nzhou charges and is denying that eight and meng wanzhou have broken any us laws. they point to the fact that this was settled in 2012 and the chinese government has also said that this is immoral, unreasonable and many in beijing see this as an and many in beijing see this ass—en not and many in beijing see this as—afi not just and many in beijing see this as—afi notjust on and many in beijing see this as—afi not just on but and many in beijing see this as—afi notjust on but on attack notjust on huawei but on china ‘s ambitions to lead the world in times of five g technology. given the fact that this is happening against the backdrop of trade discussions - to take place this discussions due to take place this week between the us and china, it week between thexijs-snd fihiflagit. es, , , a. , will make week between thexijs-srtd fihirtagit. es, , , a. , will make those discussions and negot

files criminal charges against chinese telecoms giant huawei the company's accused of violating sanctions against iran and industrial espionage this as the u.s. and china are trying to call recent trade sanctions. also is global corruption helping fuel the crisis in democracy worldwide look at a new ranking from crookedness and talk to the head of the organization behind it. and today's a crucial day in britain with several votes on the government's brags that plan british companies are preparing for the worst so individuals look at how one family is getting ready. and stephen beard zimbra len good to have you with us the u.s. justice of the justice department has charged chinese telecom giant huawei with violating its sanctions against iran and industrial espionage charges are in connection with the arrest of while ways chief financial officer and the daughter of its founder among one joe in canada the move comes at a time of heightened tensions between washington and beijing due to president trump simmering trade conflict. the announcement was a long time coming if you believe the rumor

and negotiations are overshadowed by newly unsealed criminal charges against chinese telecom giant huawei and by a slumping chinese economy. also the u.s. is pushing europe for a new trade deal threatening automakers in return but brussels has a little more leverage it's importing ever more amounts of soybeans. and u.s. sanctions on venezuela are driving up the price of oil worldwide and that's angering governments in china and russia. i'm stephen beers in berlin thanks for joining us american and chinese trade officials are set to begin a new round of talks today in washington the latest effort to resolve a trade dispute that has disrupted business across the globe the stakes are high u.s. president donald trump has threatened to raise further tariffs on chinese goods if no deal is reached by march about would hit an already slumping chinese economy and then there's the delicate matter of huawei and its chief financial officer. the way brand in beijing is probably as common as apple is in new york city huawei is china's leading telecommunications group that's why journalists were eagerly

huawei probed. the u.s. departments justice turning up the heat on the smartphone maker. good federal charges becoming? plus, feeling the heat of a government shutdown. what oracle's ceo has to say about its government contracts. this is bloomberg. emily: samsung unveiled a set of inexpensive smartphones for india this week, seeking to regain ground lost to chinese rivals. the devices are priced below 20,000 rupees. they will launch february 6 on the samsung india online store, as well as amazon india. samsung says the devices are aimed squarely at the millennial market. federal authorities are investing chinese telecom giant huawei for stealing trade secrets. the probe is tied to a 2017 civil suit where a federal jury found while way liable -- found way --ay -- found while uawei liable. is at annvestigation advanced stage, and investment could come soon, according to sources. all declines to comment. the principal at albright stonebridge joined us to discuss. >> this is a long time coming. this is not new. but unfortunately, it is getting rolled up in the news of the u.s

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

how do play huawei? -- how do you play huawei? you have a view the fed is going to move slower and be could have anu unusual circumstance where you have weaker outcomes and yet stronger market outcomes, the reverse of last year, higher stocks have a chance to outperform the market again. we saw significant underperformance last year. company, it is a bad omen going into the trade talks and it is unlikely we get resolution. would be chinae agrees to buy more from the u.s. , open up their markets. conclude they can come to a resolution on intellectual property theft, etc. it is not a rosy outlook, it is a volatility inducing catalysts. . francine: what do you think is priced in at the moment? get a lift if we see a deal between the u.s. and china even if it is light on details? in real what say markets are pricing in. ,f there was some resolution that could give a lift to markets. it is one of the positive catalysts coming up. if it does not work out, 50 basis points, 100 basis points to the outside. we think fed policy is more crit

crackdown on huawei is "unreasonable." prosecutors file charges against china's largest technology company. the company is accused of stealing trade secrets from an american rival and violating sanctions against iran. venezuelan president nicholas maduro is trying to drown out the forces seeking to topple his authoritarian regime with rolling internet blackouts and gag orders. president maduro blocked access to a live streaming video app when self-proclaimed interim president juan guaido addressed the nation. the internet is crucial to his ability to rally supporters because the maduro regime controls nearly all the television and radio stations. 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. shery: from bloomberg world headquarters in new york, i'm shery ahn. amanda: i'm amanda lang. welcome to bloomberg markets. here are the top stories we are following from around the world. backstop to on th

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

files criminal charges against chinese telecom giant huawei and accuses the company of industrial has been it has been arjun violating sanctions against iran says the u.s. and china are trying to calm receptive trade tension. also coming up pakistan's supreme court upholding its acquittal of posse of b.c. the christian woman at the center of a high profile blasphemy case that decision to tentatively paving the way for her to leave pakistan where she still takes those threats to her life plus drugs it is bad that's the message one london restaurant is serving up to its customers as parliament prepares to vote once more on the government's plan to leave the union and the comeback story of one of the car racing's up and coming talents eighteen year old sophia loren who could have died with her formula three car went airborne in a race to once ago she's overcome that fractures and any doubts about her skills and she is back on track with every intention of winning. i'm sara kelly welcome to the program the u.s. justice department has charged chinese telecom giant huawei with violating san

why is huawei so controversy all? it was founded in 18 -- 1987 by an engineer and former coming this party member. it is now the world's number one provider of wireless network hardware. the company's private meeting it does not have to disclose its finances and it says the shares are divided between its 80,000 employees in china who do not have real voting rights. critics claim that an elite corps of managers essentially guides the company and coordinates with the government in beijing. this is something that huawei denies. the u.s. is pressuring allies to exclude huawei as they build networks. all agreeing on that, one of the u.k. providers also agreeing. the ceo of huawei refuted claims of chinese government involvement. >> our company has never received nor w will receive ords from the government. we will refuse any order from the government. reporter: the ceo there. there appears to be some movement in the trade dispute between the u.s. and the eu. brussels said it is prepared to get rid of industrial tariffs and

germany is likely to shut its huawei operations. 0xford germany is likely to shut its huawei operations. oxford university says the decision has been taken in light of public concerns surrounding uk partnerships with huawei. what does that mean? they have not given any further clarification. generally the climate about china and the weird does business has darkened for lots of people around the world. mounting suspicions and no particular evidence but the theory that a company that is so based they are and has certain links to the chinese state has to be treated with caution. autonomous vehicles, you we re caution. autonomous vehicles, you were in the us recently. caution. autonomous vehicles, you were in the us recentlylj caution. autonomous vehicles, you were in the us recently. i have just come back. i have been making a radio documentary about autonomous vehicles and visited the place to go if you want that which is arizona. the governor has put in lows encouraging their use. there is a lot of open space. it is very good conditions. perfect weather. normal us grid system of roads an

federal crimes by huawei technology. the partial government shutdown will ultimately cost the world's biggest economy just $3 billion according to the congressional budget office was reported that the budget gap in the u.s. is widening. the department sees the deficit topping $1 trillion in 2022. the last time the u.s. had a budget gap that large was between 2009 and 2012 following the financial crisis. arabia expects to reduce output. energy minister khalid al-falih spoke to bloomberg in riyadh. >> we broke it down to 10.2 in january. i believe our target for the february isw -- below that. there could be small adjustments in the domestic demand, so we will find out in february -- february. saudi arabia is going to be well below that voluntary cap that we agreed to. >> for the full six months? >> for the full six months. annabelle: 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. nejra: at all jewelers in hong kong. -- annabelle

lowing huawei to send it back to beijing. think of "the new york times" reporting on the breach to name a recent example. now, imagine that with far more data at play and with the chinese company actually providing the gear. huawei, which is headed by the former people's liberation army engineer is accused of using bribery and technology theft in its assent. u.s. prosecutors are reportedly conducting a criminal investigation against the company for stealing robot technology from t-mobile, according to "the wall street journal." the company did not comment on the reports but denies previous allegations of wrongdoing, noting that a 2017 civil suit found no, quote, willful and malicious conduct." huawei's would never spy. "the new york times" says so far there is no hard proof that it has. yet the u.s., australia, new zealand have effectively banned huawei from 5g supply chains. other allies remain wary. there are solutions other than bans. take the uk, a november report notes the government setup an inspection center run jointp

huawei has some vertical integration, so i wonder how will a compare and how well-positioned is huawei compared to zte in overcoming this. >> zte was so dependent on the u.s. market that a denial would have brought the company to its knees. it is not as grave for huawei, but when we talk about the data states going to allies and telling them to block them from their network, that is crippling to a company has really ahead and looking at entering the market and being a leader on that front. emily: that was sam sacks, fellow at new america. china will add to the united states as the biggest retail -- edge out the united states as the biggest retail market in the world. online sales are a big part of their growth, with a large percentage estimated to come from e-commerce. selina wang spoke with a principal analyst at e-marketer wednesday about the report. >> it is dampening our growth forecast a bit. we saw retail growth in excess of 8% last year. we are bringing it down to 7.5%. it will still run ahead of gdp growth, and certainly, a strong growth rate on a very large number. a big part

case astake this huawei in your tent. both sides will look beyond it and simply focus on let's get this trade dispute which is hurting both sides out of the way. i would say chances are good we will get some deal and we will of her the recession. trade talks work to escalate, then even we will have to use the r word, risk, recession. it will not materialize because policymakers know about it. i have you at a blind advantage. it is at the highest level since 1997. lead forwardto with normalization? or is it off the big agenda for 2019? i think the word normalization is largely off the big agenda. it is for central banks to see and need what -- see what they need to do. for central banks, the weird thing is this recession risk does not arise from any economic factor. it arises from what other policymakers, trump does on trade and the like. he stays with us. and we have more to discuss around the markets, around the head, around europe. ♪ nejra: you are looking at a beautiful shot of new york. we are asking the question, w

huawei is a private company. you don't want to link it to his date actions, so i would be hesitant to believe the headline worth reading right now. >> we've spoken on this often. huawei has been on the radar of the united dates for years under president obama they did not allow huawei to move anywhere near a military base. so now, you know, if the chinese government, you do this with a private citizen and this will unwind how we look at our sovereign relationship. that goes to the whole idea that huawei is a state run company. i agree with susan. i don't know if it's fact or fiction, but it doesn't bode well for where they want to go. >> i completely agree. [inaudible] >> and also underpins the way we address intellectual property. you have to understand even if china gets a deal, it will take them a long time to have background through the way the chinese do business. they are used to doing business not by innovating, but by knocking other people off. this is not just the tech are. this is in the consumer sector

., australia, new zealand have effectively banned huawei from 5g supply chains. there are solutions other than bans. take the uk, a november report says the government set up an inspection center run jointly by british counterintelligence and huawei that laboriously tests hardware and software for threats and vulnerabilities. this kind of inspection process may slow down the adoption of 5g, but perhaps that is for the best. the reams of data that 5g unleashes on the global networks will be vulnerable. we need better controls around the mountains of data we're piling up every minute. if data is the heart of the digital economy, it will need better protection from any source. next on "gps," aaron sorkin on turning one of america's most beloved novels into a play and what like "to kill a mockingbird" sheds on race in america today. the sleep number 360 smart bed is on sale now during the january savings event. it senses your movement, and automatically adjusts to keep you both comfortable. it even helps with this. so you wake up ready to put your pedal to the metal.

huawei denies the charges. u.s. listen to the active attorney general matthew whitaker. >> in an effort to build their engineersheuawei's violated a nondisclosure agreement with t-mobile by taking photoof the robot, measuring it, and stealing a piece of it. charges.s. car -- come as western nations hav moveto block while way -- huawei from accessing five g networks. an australian telecom announced it has canceled the construction of a new mobile network as a result of a government pasta decision last year to ban huaw ei. the beijing government called for countries around the world to provide a fair access in the mobile market. -- thee is no evidence united states is using its state power to discredit and attacked companies. this behavior is unfair and immoral. we are continuing to move forward with our 5g service. canhink that our 5g service create a push for a 5g smartphone for people around the world. >> unofficl voice from beijing. --an official voice from beijing. the u.s. and china are resuming trade talk. >> a

is it just huawei? >> certainly that caused risk aversion early in the morning and a late slump in the u.s. we started recuperating on this idea that china is providing stimulus towards the end of the asian session. it tailed off into europe. we are in a higher volatility regime than we were back in 2017. i think investors are still djusting to -- a this. i think over all at the moment this is just noise. the overall favorable environment for risk assets remains in place. matt: when you look at the safe haven trade, i noticed yields are falling today. the yen is gaining strength, although it's not a considerable move. do you see that investors are positioning themselves are uncertain? >> certainly they were kind of unwinding a little bit of the optimism we saw last week on the trade front between china and the u.s. i think people are starting to realize we have not got any concrete information on what next. all we know is that there is this meeting in washington and it will be attended by a high-level r

general jack keane is warning about huawei. huawei is an arm of the chinese communist government. huawei is helping china on a march to achieve economic and global dominance. you watch. >> to a country, particularly an emerging nation. they give that country major loans to do infrastructure, et cetera. the chinese insist, stuart, they insist that huawei becomes their major technology company. and also to use chinese telecom communications. why? for the next generation or two they own all the personal intelligence inside that country. liz liz: china is giving loans to countries in africa, let huawei in and we'll build your telecommunications grid. china is entering those countries and basically getting intelligence from those countries. that's the issue with solar panels. analysts are warning solar panels are letting china into the electric grid. the you a tore of china's secret strategy to replace america as the world's super power. i welcome both of you to the show. michael. china is about smart cities, not just the internet of things. >> that's right. it's a leading goal. liz: a

huawei, let's talk about criminal prosecutors issuing a criminal investigation into what huawei has been up to, copying the technology of us companies, t—mobile et cetera. your thoughts? this is an incredibly important story, there are people who think the chinese are stealing intellectual property, does it matter? and proven to be, and it is not just matter? and proven to be, and it is notjust in america, there have been criminal prosecutions in what is out of the uk, germany, italy, everywhere, chinese backed companies. this matters because huawei is the world's largest maker and seller of telecoms equipment and guess what we all reliant on? telecoms equipment. it matters because your country is poor when its intellectual property is stolen, and if there are people who think that i am sure we do it, no. if my company spies in the chinese company, is not just company spies in the chinese company, is notjust the chinese are going to put me in prison, my own country, britain will put me in prison for doing it, ok? in terms of how this is playing out, what i think imprecations at this ne

huawei is denying the u.s. charges that it violated iran's sanctions and china is calling on washington to with yo withdrs request for canada extradite the huawei. lauren: we have a programming note for you. steven mnuchin and larry kudlow will be maria bartiromo's guests on "mornings with maria" today starting at 8:00 a.m. eastern time. cheryl: the united states has imposed sanctions on venezuela's state-owned oil company, cutting off a vital source of income for the country. lauren: blake berman at the white house with the very latest. >> reporter: the trump administration continuing to try to keep the pressure on nicolas maduro and venezuela, announcing sanctions targeting the country's oil industry. john bolton and steve mnuchin announced a freeze on any purchases involving venezuelan oil by those in the u.s. the money will be frozen for maduro to touch as it will be placed on hold until and unless juan guaido is recognized inside venezuela as that country's leader. the treasury secretary trying to reassure

is news coming to you live from berlin the us files criminal charges against chinese telecoms giant huawei the company is accused of violating sanctions against . of industrial espionage as the u.s. and china are trying to call trade. coming up the fate of. the christian pakistani woman who was accused of blasphemy but now pakistan's supreme court is revealing its decision to set her free. plus breaks it is bad that's the message one london restaurant is serving up to its customers says parliament prepares to vote once more on the government's plan to leave the european. comeback story of a car racing up and coming talents we need eighteen year olds so. when her formula three car went airborne in a race two months ago but she's overcome that sent any doubts about her skills and she's back on track with every intention of winning. hello i'm terry martin good to have you with us the u.s. justice department. has charged chinese telecoms giant huawei with violating sanctions against iran and with industrial espionage the charges are linked to the arrest in canada of chief financial officer may

huawei has long been suspected of having close ties to the chinese government. a cause for concern for some international observers. however both the company and the chinese government deny the accusations. will just as the foreign ministry said with no evidence they're using their state power to discredit and attack designated companies this sort of behavior is unfair and immoral really. the chargers are likely to throw a fresh banner in the works washington and beijing are set to reopen talks over their simmering trade conflict later this week. and. on this story he joins us now so i mean this u.s. indictment against weiwei it really has multiple parts aaron just break it down for us one of the main allegations well i mean the u.s. just department has leveled twenty three specific charges against huawei and i'm not going to go into all of them specifically but basically the crux of the matter is they accuse wall way of using a shell company that this supposedly sold in two thousand and seven to smuggle in illicit telecommunications technology to iran basically

dave: but while huawei has come out for this tech show, none of the u.s. phone networks offer their smartphones. the u.s. government is concerned them to spyight use on americans. >> we don't believe there's any issues regarding huawei, and we are more than happerto have a cotion with the u.s. government about how to come up with a security assurance framework and geared towards the osited states. dave: tensions re further when huawei's chief financial officer was arrested in december. she is fighting extrn to the united states, where she faces charges of bank fraud, allegations she denies. and then there is the ongoing trade war between the two countries, which threatens to impa tech firms greatly. the climate is making it harder for chinese companies to find success in the u.s. >> chinese brands in the u.s. have always struggled. they have never had a significant market share. i think with the amount of power that huawei has, they could have a big impact. again, as we have seen in the rest of europe. dave: most expect the trade is -- dispute to pass. but

andelecom equipment gear, inently, a huawei executive poland was arrested. this company is dealing with an increasing and heightened number of attacks on it, and the founder is hoping that, perhaps, by him coming out and speaking to the press for the first time, as you said, in three years, that this would carry some weight. has been providing competition to various companies, including apple. is global sentiment showing any signs of turning for their businesses in other countries? reporter: he says he expects ,evenue to grow to $125 billion and to put into context, this company generates more revenue than bob a and -- than alibaba and tencent combined, and even though it is going to be banned and limited in a number of developing countries, there is an argument to be made that it will not halt or her to their business tooo -- will not halt or hurt their business too much. despite the fact that a great portion of the world is not open to them, they will just double down in markets where they are. >> all right, our bloomberg into me to track that huawei story

. >> but it was not just about huawei. last year, we saw that ban against zte which nearly crushed the company. huawei has some vertical integration, so i wonder how well positioned they are in overcoming this. zte was so dependent on the u.s. market that a denial and abrupt the company to its knees. it is not as grave for huawei, but when we talk about the data states going to allies and telling them to block them from their network, that is crippling for the company. sacks,that was sam fellow at new america. china will edge of the unites states as the biggest retail market in the world. online sales are a big part of their growth, with a large percentage estimated to come from e-commerce. bloomberg spoke with a principal keter onat e-mare wednesday. >> it is dampening our growth forecasts a bit, we are bringing it down to 7.5%. i will still run ahead of gdp growth, and certainly, a strong growth rate on a very large number. a big part of what is driving it is the growth of the inner future. and engageome online in commer

has officially accused chinese telecom giant huawei of a bevy of crimes a grand jury in new york has returned an indictment alleging thirteen additional crimes committed by wall way its c.f.o. its affiliate in a ram and one of its subsidiaries here in the united states the criminal activity alleged in this indictment goes back at least ten years and goes all the way to the top of the company the u.s. justice department accuses wall weighs top brass of using a hong kong based shell company to funnel telecommunications equipment to iran in violation of international sanctions investigators also accuse wall ways engineers of stealing trade secrets from cell phone provider t. mobile including robotics plans using t. mobile cell phone testing. huawei has long been suspected of having close ties to the chinese government a cause for concern for some international observers. however both the company and the chinese government deny the accusations. they will just as the foreign ministry said it with no evidence and they're using their state power to discredit and attack designated companies

what the founder of job way -- huawei had to say to the press. that is next. this is bloomberg. ♪ ♪ 's reclusivei founder may a rare media peers to defend his company against accusations of spying for china. speaking to reporters for the first time since 2015, he said, "i love my country and support the communist party but i will not do anything to harm the world." he also praised president trump, saying he is a great resident, he dares to massively cut taxes that will benefit business, but you have to treat well the companies and countries that they are willing to invest in the u.s. in the government will be able to collect enough tax. why did he decide to speak out now, selena? an interesting turn of events. over the past few weeks, a lot of executives have spoken out, but we have yet to hear from the founder, the billionaire founder. he is finally speaking out, and it really underscores just how deep these attacks have become. the united states has long held suspicions of the company, that there might be backdoors built into their telecoms equipment con

dos ban any corpse with huawei. big hit indeed thank you suzanne let's get to shutdown day two, of course. made a offer on saturday afternoon they rejected it said no at all. joining us now tom reid republican from new york congressman you're on the problemsoevers caucus. how do you solve if other side does not respond at all to offer that the within side has given? it seems like it's insolvable here. >> absolutely. stuart that's the heart of the problem, and other side is not going to sit down and talk and listen that's why i was proud of members on the democratic side in or particular, went to the white house last week, met with the president we spent an hour with the president and vice president discussing how do we solve this shutdown and maybe take care of some of the other immigration faces we face especially as children caught up in broken immigration system known as daca those are children that the democrats supposedly care deeply about. president is opening up door and let's solve this problem on all fronts

is interesting and so i have to ask you also we've been talking a lot about huawei u.s. secretary u.s. treasury secretary steven emotion saying recently that the issue of way can be separated from the trade issue how does china see this. well china definitely sees the very differently because. people talk about the timing because you know like most ones also ross is doing china's leaders and donald trump's meeting in g twenty and right now they have the announcement on the document always c.f. just right before the trade talk of course people will say that you might be a call is dental but i think from china's point of view no matter it's a coincidence or not it's still a very provocative act so no matter how they will have to raise the issue on the trainee goshi asian table and make sure that donald trump will not make them lose face or look bad again. so that a lot of moving parts as these training go she asians begin today will keep following them of course those young han there for us in taipei and paul chris young brits there for us in frankfurt thank you both. now

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 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

tom: john mentions huawei. fuld in your study of huawei. is it within your equipment? are you advantaged by the uproar? jonathan: the study of huawei -- chuck: the study of huawei, they are our competitor. tom: did you have to call up somebody and say, have we got this in our box? chuck: customers make decisions on the following. they make it on the innovation of the technology you are bringing, how you help them solve business issues are the issues of a head of state. they want to understand how are you connected to helping them evolve their strategy to what is possible because of the technology. and then the element of trust. trust is increasingly, particularly in the last couple of years, has become a key decision factor. that is what we focus on. we have a canada goose coat today for our contestant. jonathan: he does not need one. chuck: i will use it later. jonathan: always good to check up with the cisco chairman and ceo. great conversations coming up on "bloomberg surveillance." i caught up with the south african president cyril ramaphosa and asked about central

ina is warning canada that banning huawei technology could have repercussions. there is no evidence their equipment represents a security risk and they hope the government will make a wise decision. the warning comes as china and canada are at odds over the arrest to have huawei c.e.o. in vancouver. the u.s. government shutdown could soon hurt stocks. markets already face increased volatility. now traders are factoring in the effects of a closure for a record 27th day. federal workers continue to go without pay. the shut doup has prompted president trump to pull the u.s. team out of the economic forum in davos next week. steven mnuchin was to have led the delegation. the president was going but withdrew early on. a denied speaker nancy pelosi ilitary -- military permission to visit other countries. >> thank you. the nikkei up 255. 258. we're coming out of it. hi. how are you? you know what that one was. live tv folks. china doing quite well here. u.s. have a look at futures. ftse 100. we were looking at bonds as well. >> yeah. doesn't seem like there is a lot go

everyone 5g and huawei wants to talk about. there is surging demand for 5g right now, and this company out of sweden is certainly going to benefit from that. the big question is, how do they benefit? or do they not want to talk about the situation? rebecca joins us now to give us a take on all of this. the big story when it comes to huawei, andpment, fear of putting it into their networks -- ericsson is a competitor. really decent numbers coming out. what does erickson want to say about the huawei story question mark do they say we are big beneficiaries, or something else? delicatea lot of dancing. nokia is a big competitor for huawei globally. bey will benefit, but cannot seen to be saying that, for a couple of reasons. erickson a nokia are both expanding in china. they do not want blocked -- want to be blocked from chinese networks for bashing huawei publicly. the point the ceo of erickson raised to date is, with all this indecision from governments, particularly in europe, about what do they do about huawei, a lot of them ar