in fact, as the indictment details, this was the way huawei operated. this was huawei's m.o. during the time period of the alleged crimes, huawei announced a bonus program for its employees worldwide, that it would pay cash to employees for stealing confidential information from competitors. and yet, and very tellingly, within days of this offer, huawei usa sent an e-mail to its employees acknowledging this conduct would be illegal in the united states. let me end by emphasizing as the attorney general did as well, our indictment contains allegations. huawei, like every defendant in a criminal case, has the right to due process including a trial. we look forward to proving our case beyond a reasonable doubt and holding huawei accountable for its actions. let me finish just by thanking as well not only the fbi and the other law enforcement agencies that were involved in this work but the ausa's in my office, todd greenberg and tom woods and a number of other folks who supported them on this case as we got the indictment. thank you very much. >>> appreciate all those remarks an

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

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

huawei crackdown. the united states files are host of charges against the chinese communications giant and its finance chief among - show. the chinese communications giant and its finance chief among - sh is. south africa crops south good morning, asia. hello, world. it isa good morning, asia. hello, world. it is a and good morning, asia. hello, world. it isa andi good morning, asia. hello, world. it isa and iam glad you good morning, asia. hello, world. it is a - and i am glad you can is a tuesday and i am glad you can join us. l us its affiliate - its it its afflllatljf:;£7 ,, ,, ,. it includes mug—i525! it includes obstructing! show. it includes obstructing justice and conspiring to conceal trade —— steel trade secrets from t—mobile. we explain how the timing of this move is significant. this is a saga that began with the arrest of huawei's chief financial officer mun wong jo back in december but we are now starting to see the meet on the bones in what america and ledgers and she has done a

>> huawei design their own chips. huawei is a big customer, too. emily: it is not just because of apple. >> no. that is a big one. often, huawei chips, the ones they design, go in wally phones -- huawei phones. they: how closely tied are supplier fortunes to apple versus the smartphone market in general? >> it is the smartphone market in general. apple really pioneered what they do so well. instead of buying a chip from it and tsee designed manufactures it. that has been a huge boom type of thing. when apple slows, they will suffer, as well. emily: we have heard negative news into the apple revenue story. are we going to hear more? >> the tsmc forecast implies apple is not seeing much of a pickup over the next three months. it is traditionally a slow quarter for apple, right after the holidays. expectations are low. tsmcan see that with shares. they are down 2%. emily: i want to talk about other apple news. tim cook is making a call to protect consumers saying for time magazine quotes consumers should not have to tolerate another year of companies

what is huawei specifically accused of? rajini: there are tws.sets of char the first one accuses huawei of stealing trade secrets, relating to a robot which was used by le to develop mobile phone technology. this indictment accuses huawei secretlyap photong this ngrobot, fin that how it was made, and even stealing a piece of it. jane: iran features in the charges? rajini: 13 counts relatin' to huawei's operations in iran. violating huawei of sanctions lawby operating under a shadow company called skycom and that u.s. banks did transactions with skycom, not realizing that huawei had this set up. it accuses huawei of trying to conceal information, lying to the authorities, and fly witnesses back to china so they couldn't be interviewed. .sne: what impact of the charges likely to have onand chinese relations? rajini:re i wil you will quote that stuck out from the news conference. it goes on to talk about the e influeat the chinese government holds over huawei, and that is crucial because this in many ways is the u.s. flexing i

huawei employees allegedly told banking partners that huawei had sold its interest in sky,, but these claims were false. soldality, huawei had skycom to itself. by claiming it was a separate company and not an affiliate of huawei, which it actually control, huawei allegedly asserted that it was in compliance with american sanctions. the false claims led businesses -- to do business with the company and therefore unknowingly by late over laws. one bank facilitated more than $100 million worth of skycom transactions through the united states in just four years. about allegedly lied other relationships. the company allegedly told other banks that huawei was distancing itself from the bank, not the other way around. huawei allegedly did this in an attempt to manipulate those other banks into expanding and maintaining their banking relationships with huawei. there are additional troubling allegations in the indictment as well, including that huawei lied to the federal government and attempted to obstruct justice by concealing and destroying evidence and by moving potential government witne

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

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

banks did transactions with skycom, not realizing that huawei had t s it accuses huawei of trying t conceal information, lying to the authorities, and fly tnesses back to china so they couldn't be interviewed. jane: what impact of the charges likely to have on u.s. and chinese relations? rajini: i will read you will quote that stuck out from the news conference. it goes on to talk about the influence that the chinese government holds over huawei, and that icrucial because this in many ways is the u.s. flexing its muscles over china and using huawein is matter. we havehi laterweek on wednesday and thursday a delegation of trade officials who are coming over from china to discuss trade with u.s. officials here. that is crucial because there has been a 60-date agreement between the two countries to come to some kind of understanding after a tit-for-tat trade war that has been g jane: what has chi's reaction this been so far? rajini: so far through about this they have disputed all of these allegations against huawei , and most notably as well they meng, who is being held in canada at the momen

>> 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

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

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

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's chips go in their own phones. emily: when we talk about the suppliers, how closely tied are there forges -- four -- >> tsmc, the smartphone market in general but happen -- apple pioneered what they do so well, instead of buying a chip from intel and intel designs it, apple designs it and tsmc manufactures it. that has been a huge boom, a great relationship. when apple slows, they will suffer. emily: we heard negative news going into this apple revenue cut, are we expecting to hear more? forecast implies apple is not seeing much of a pickup over the next few months, traditionally a slow quarter for apple, right after the holiday season. expectations are pretty low and you can see that with tsmc shares. they are only down about 2%. emily: i want to talk about other apple news. tim cook making a call for protecting consumers, saying in magazine thatime "consumers should not have to tolerate another year of companies irresponsibly amassing huge user profiles and data breaches that seem out of control and a vanishing a

he didn't name huawei, but clearly huawei was part of his mind. wilbur ross said, these are wholly separate to the trade talks. you are right in that the allegations stem from intellectual property theft as well as that conspiracy around iran sanctions. theft ledal property to the initial round of u.s. sanctions. president trump himself has muddied the water, suggesting that the huawei cfo could be a bargaining chip in these discussions around trade talks. it is difficult to disentangle the two. >> i was thinking the australian defense minister was saying that huawei didn't even come up in his talks with china. also getting some lines, saying they will stop output on march due to the u.s. sanctions, to appeal the u.s. ban. towe see president trump set meet china's lead negotiator, all this is going to play in. what sort of resolution do you think we are going to get? >> we heard from steve mnuchin, saying that he expects to make significant progress at these talks that kickoff wednesday and thursday in washington between china's vice premier and t

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

were independent of huawei when in fact huawei controlled them all along. those are the charges. joining me now, "the new york times" best selling author carol roth and fortune senior editor and fox business contributor and often contributor to bulls and bears adam la shin sci. good to see you both. we should emphasize that huawei sells more phones than apple. it's number two in the world. but i'm wondering if it could survive all of this. people really wonder whether it's trustworthy anymore, don't they? >> it's a fascinating situation in the context of these ongoing trade talks because the accusations against huawei appear to be credible. on the face of them they have nothing to do with the trade tension of the united states and china. but of course everything has to do with the trade tension between the united states and china. so my point is i see a very difficult situation where if the united states continue to go after huawei, as it will and probably should, it being very difficult at the same time to delink that from the trade talks. david: just look

government now huawei is trying to be the leader in five g. technology which is basically the one helpless established a new backbone of internet technology which will kind define how we do business and communicate moving forward while the u.s. government says while way has a lot of connections to the chinese intelligence services and they're not comfortable with the fact that allowing huawei into this internet backbone would potentially give china a great military technological and business advantage moving forward that's why we're seeing the american government a lot of pressure on international partners and in this in the bud at an interesting time we have to mention because they're about to sit down for trade talks the u.s. and china yes they are and it's really kind of an open question in terms of how they actually hangs together now we know the initial a rest of the chinese executive in canada came at a time when trump wasn't actually aware of it he's supposed to have reacted quite angrily when he found out that in the midst of these tra

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

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

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

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

to drop the arres warrant for the huawei cfo. the u.s.t justice departm unveiled two indictments, the first a 13-count indictment filed in new york alleging that huawei misled banke u and. authorities to continue to do business in iran, dpite u.s. sanctions. the u.s. believes the cfo orchestrated the scheme. th second 10-count indictment charges two huawei affiliate with attempting to steal robotic technology from u.s. carrier t-mobile and says huawei offered bonuses to employees whoin ob confidential information from rival companies. huawei issued a statement saying it's disappointed to leath of charges. it denies that it or its subs aiary oriliate have committed any of the asserted violations of u.s. law and is not aware of a wrongdoing of miss mong. as it turns out, the indictments came the same day that the vice emier arrived in washington for trade talks. u.s. commerce secretary wilbur ro say the two events are unrelated, but the chinese have been viewing the targeng o huawei as political, so many people here believe this sh

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

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

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

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 spanner 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 is supposedly sold in two thousand and seven to smuggle illicit telecommunications technology to iran basically who

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

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

john: huawei was showing off its w 5g network technology. but someing else was on display, sheermbition. the company aims to be the world's biggest artphone vendor by next year at the latest. >> consumer sales have brought us the biggest revenue sourc for huawei. for the firstof time, the sal our smartphones exceeded 200 million units. john: of course, huawei's success depends ultimately on it winning the trust of government, so iis remarkable perhaps th tithere has been a huge pol storm the company now finds itself in the middle of. amidounting concern that huawei's overseas networks might be used by china for spying, the company'cfo and daughter of the founder, meng wanzhou, was arrested in canadaast month. china says the u.s. extradition request over allegations o breaching sanctions on iran is politically motivated. the same charge, though, is veled at china for its subsequent detentionnaf two an citizens, an academic and a businessman. journalists were allowed to speak to a senior huawei n executive, b on camera, and even then, the comp

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 this sort of behavior is unfair and immoral really. the charges 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. now for more on this i'm joined in studio by my colleague aaron tilton and joining us from frankfurt our financial correspondent correspondent paul christiane brits is some weather is let's start with you paul paul what does this mean for the trade talks that are currently going on this arrest or the unsealed charges sorry. oh yeah who are way has gone from a nobody to the world's second largest smartphone manufacturer in just a few years so it's a pride of china naturally this doesn't sit well with the chine

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

justice department has charged chinese telecoms giant huawei with violating sanctions against iran and with industrial espionage the charges are linked to the arrests in canada always chief financial officer main one shoe who is also the daughter of the company's founder the move comes a time of heightened tensions between washington and beijing due to a simmering trade conflict. the announcement was a long time coming if you believe the rumor mill the u.s. has officially cuse 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 walk away it's c.f.o. it's affiliate in iran 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 while these 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 are stealing t

netflix hasn't announced a ban on huawei a? !. netflix has hasn't announced a ban on huawei a?!. netflix has posted lower than expected quarterly revenues despite a slate of original content, including the thriller sg, sending stocks lower in after—hours trade. and a word of caution, the fake bbc stocks lower in after—hours trade. and a webpage aution, the fake bbc stocks lower in after—hours trade. and a webpage being , the fake bbc stocks lower in after—hours trade. and a webpage being used to le bbc stocks lower in after—hours trade. and a webpage being used to promote news webpage being used to promote bitcoin in an attempt to convince people to have over money. the page references at cryptocurrency themed bbc documentary, but links to a site promising to make people millionaires. a spokesperson for the said it is looking into how best bbc said it is looking into how best to all right, let's quickly to respond. all right, let's quickly recap the markets, and as we mentioned earlier wall street stocks climbing for the third straight session overnight following a repo

prosecutors pursuing a criminal case against xiaomi -- huawei. awaiting huawei cfo possible extradition to the u.s. rishaad: let's get the steve engle. we talked about this earlier. how is this story evolving? steve: it is an intensification of the federal prosecution of what is going to be very likely -- she is on of bail in canada awaiting possible extradition. the initial accusations we were hearing was huawei's efforts to defraud banks, to avoid , theions on iran investigation by federal has increased with allegations of huawei stealing trade sick its from its own u.s. business partners. one of them would be t-mobile, which stems from a civil case in a seattle civil court in 2017. they found in 2014 it alleged a visiting huawei engineer into their bellevue, washington lab had tipped a robot which tests smartphones. it simulates users, a robotic device. intoently it was snatched a briefcase. this is all in a civil case on record. the jury sided with t-mobile in this case and said the theft resulted in huawei making hundreds of millions of doll

huawei was putting a brave face on it today. the message, business as usual. the political question, however, they are unlikely to go away. climate change is redrawing the map of the arctic, according to a warning by scientists meeting in norway. in what researchers claim is the first sign of a major modern climatic shift, they say the barents sea, which has been part of the arctic ocean for 12,000 years, is being swallowed by the atlantic. from the norwegian arctic, our environment analyst roger harrabin reports. sea ice, formed in the high arctic. it helps create a cold, fresh surface layer that acts as a cap on warm, saltier waters beneath. but with climate change, there is less sea ice getting to norway's barents sea. the north barents sea has been dominated for 12,000 years by sea ice flowing down from the high arctic. but now, that flow is diminishing and the character of the sea is changing fast. soon, researchers say, the region will have no sea ice at all, so it will no longer be part of the arctic. it had an arctic type of climate for the last 12,000

the congressional report said that huawei -- the founder of huawei web's very reclusive. he doesn't speak in public. he came out in public this week in china defending his company saying we are not a con diet for chinese spying. not just the u.s. but the u.k. is considering banning huawei as well. new zealand and australia has already gone the on board in not using huawei in their telecom companies. but i would say this strengthens the u.s.'s hand in the trade negotiations. a company that generates $100 billion a year in revenue. liz: they are right in the bull's-eye. wall streeters not panicking that the u.s. government is failing to report retail sales number. they are look at visa, mastercard, the fed. failure to reopen the government will delay news. wall street looks elsewhere for the data. here is the big story for you. don't do it. that's the message to super bowl advertisers. don't go there. don't get political in your super bowl ads. consumers say the super bowl is not an appropriate place for advertise i ares to make political statements. that comes on the heels

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

the new indictment is a new 13-count indictment against huawei and its subsidiary and the cfo of huawei, meng wanzhou was unsealed today. also a ten-count indictment from actions dating back to 2012, where huawei facilitated more than $100 million in contracts with iran through its subsidiary called skycom, in direct violation of u.s. sanctions. the company lied to banks and u.s. federal government by actually selling the subsidiary to itself to hide the business dealings in iran. a grand jury in seattle and new york issued these indictments. the 13 related to breaking sanctions with iran, 10 more stemming from a civil suit by t-mobile where huawei allegedly stole part of a t-mobile robot used to test cell phones, as well as taking specs on it. the acting attorney general says the company paid bonuses to employees who were able to steal t-mobile secrets. the commerce secretary says the u.s. will protect american companies from wrongdoing. >> we are once again putting the world on notice that we will do everything in our power to stop those that disregard u.s. law. too many companies pur

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

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

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

this was huawei's m.o. >> reporter: huawei has become hugely successful, now second only to samsung as the world's largest supplier of smartphones. u.s. intelligence agencies have urged americans not to buy huawei phones and federal agencies are blocked from buying its products. these charges were announced the same day the white house said president trump will welcome a delegation from china on wednesday to talk about trade. lester? >> pete williams at the justice department, thanks. >>> while the trade war is raging, president trump also has 2020 on his mind. today he practically dared a big name in the business world to jumpnt ex-starbucks ceo howard schultz is considering an independent run. but as andrea mitchell explains, that has democrats up in arms. >> reporter: billionaire former starbucks ceo howard schultz could be brewing trouble for democrats in 2020. announcing he's considering running as an independent, tweeting today -- >> both parties at the extreme are not representing the silent majority of the american people. >> reporter: the life-long democrat telling "60 minutes