they continue to buy huawei phones. this is not a huge thing for huawei. huawei needs google than google needs huawei. fair point. we'll continue to cover it. melissa: cashing in on taylor swift. why the pop star is feuding with justin bieber's talent manager who acquired the rights to most of her music. it is an epic feud brewing. that is next. ♪ (ding) hey, who are you? oh, hey jeff, i'm a car thief... what?! i'm here to steal your car because, well, that's my job. what? what?? what?! (laughing) what?? what?! what?! [crash] what?! haha, it happens. and if you've got cut-rate car insurance, paying for this could feel like getting robbed twice. so get allstate... and be better protected from mayhem... like me. ♪ connell: breaking news, facebook just put a statement out on that package that might contain sarin. a spokesperson saying, this is a quote, a package delivered to one of our mailrooms was deemed suspicious. we evacuated four buildings and are conducting a thorough investigation in coordination with local authorities. authorities have not yet id

huawei has a real problem. huawei has the back door and the president realizes that. i think what the president allowed them to do is actually let american products sell to them for a short-term, to make sure the negotiations are back on track. i know this president, he is not going to allow huawei to get in across this world because as you have done, and you're probably one of the leaders on this, i've watched the huawei executives and with you, where it shows the 55 different back doors these other countries have bought this product, that's a real concern to me because no one else has ever stood up to them. if it is ten years from now, we will have lost if we allow huawei continue to grow. maria: that's what i'm saying. the president is agreeing that huawei can supply u.s. companies despite the blacklist imposed on the company in mid may. what should we think about, u.s. companies can still supply huawei with the technology components they need? >> that's a short-term basis. you know the pressure he has on china. maria: yeah. >> the one thing that the president is d

emily: we will be speaking about huawei a lot later in the show. huawei is a leader in 5g. while it is a big competitor with apple in the smartphone business and has become sort of pawn in the u.s.-china trade war. apple isn't putting out a 5g phone this year. we expect that next year. does that mean apple will be behind? dan: that is always the concern, that huawei or maybe samsung will be ahead of them. but as max was saying, the next cycle in the phone business is 5g. the possibility of a foldable phone is being talked about going into 2020. as you mentioned before, the phones expected to come out this speak arei11 so to not going to be viewed as being overly dynamic and forcing people to upgrade, so that roadmap to 5g, and also that roadmap to 6g, with the acquisition of the modem business from intel, all are very interesting for apple going forward. emily: tim cook confirming on his call that cart is launching in august. they are doing that in partnership with goldman sachs. we will continue to monitor headlines of the call. dan morgan, thanks so much for stopping by.

it is hard to see huawei getting it together quickly. i think they need a deal. >> i think this is a short-term problem for huawei. in the long term, they realize they have to get off u.s. dependency on software component -- on smartphone components and software. i think that is one of the reasons why huawei will try to develop its own system. gone in product's haven't down, they have gone up. that cannot be good for guys like samson. -- samsung. emily: you are saying that no matter how the trade war resolves, that the damage is already done, that chinese companies will focus on being more self-sufficient. om: exactly. they are one of the largest tech markets. it makes sense to not be appended on others. the wholee the hole -- 2025 white paper out there. i think that becomes more critical for them after this trade war. emily: so it doesn't matter if the trade war ends in three hours, months, years. 2025 is a long way away. maybe not in the scheme of national planning or whatever, but it will take some time for china to get its motives an

this is a chance for them to make their case of wife huawei should -- of why huawei should continue selling. the invitation list was pretty broad in terms of companies that are affected by this. sent aompanies have letter to commerce secretary wilbur ross a couple of weeks ago, making their case in writing, in private meetings at the commerce department. this is basically their second run at it with a broader audience. the commerce secretary was in the meeting but he has heard the case before. watching forl be any headlines. we want to get a lawmakers look now at the case against chinese tech and the alleged threat to u.s. national security. lego --man rubin get reben gallego is standing by. that thisur sense meeting is happening at all. rep. gallego: is not an independent act. an independentt actor. it is an arm of the chinese government. huawei was working with a shell company, in north korea, supplying them to knology that was-- them technology that banned. we want to enforce a huawei zte sanctions regime that we think is effective. the president should not do one-off traits for farm goo

to ban huawei. >> the u.s. government does and does not believe the law has any significance. they believe huawei would be forced to do this whether or not there was a law. maria: because it is a communist country! >> fact is the huawei network does not touch the customer network and even the huawei u.s. network does not touch the customer appeared only specially configured laptops, after written permission from the customer, can touch the customer network and every keystroke that is logged and recorded. anything we ship back would be known to the customers and known to the u.s. government. maria: there was an article this week in the wall street journal. huawei telecom gear much more vulnerable to hackers then rivaled equipment, report says. this as the story from the journal that basically says, we are more likely to see flaws in huawei, and can be leveraged by hackers for malicious use then equipment from rival companies. and you say? >> the results of this study, in our communication with a company that did

components in huawei technology. we're going to leave it to the regulators to decide whether or not it constitutes a sanctions violation. but certainly, there are a lot of analysts who have looked at these activities and say they raise a lot of questions >> tony, is huawei a national security threat? >> it's either a national security threat or it's an economic threat, or maybe it's both we hear conflicting views from the administration we talked to them. i can tell you that my firm, for example, over the past ten years have been approached multiple times about working for huawei to help them explain themselves in washington. >> what have you said to them? >> we haven't accepted those my first calls were to friends in the intelligence community saying their problems aren't communications problems. their problems are these kinds of problems that john unearthed and the team at "the washington post." and iran problems, and other kinds of problems. those issues are there but you get conflicting signals from the trump adm

so we have the ability to turn huawei on and off. huawei stockpiled parts. they stockpiled, some people say six months, some people say nine months that's their timeline and then they would stop making equipment. it's a big pressure point that the president isgoing to probably use on the chinese. >> although this goes to this bigger issue of 5g and the national security ramifications of not having a champion or not even having necessarily a policy my colleague andrew ross sorkin wrote about that today in "the new york times." do you have thoughts on that, in terms of how it relates into this relationship? >> sure. i mean, 5g is clearly both a national security issue and a major economic issue for the united states. and we're seeing mixed messages from the president about that. what is his end game going into 2020 when it comes to questions like 5g? is this going to be part of an end game trade deal? or is this something that he's going to reserve as a national security issue also, one member of this administration must be very concerned about the outcome fro

chip company sued by huawei over trade secrets. alan astngrmro with us on that big win on the other side of this break stay with us dow's up 17 points ♪ most of us don't know how much data we use, but we all know we're paying too much for it. enter xfinity mobile. america's best lte with the most wifi hotspots, combined for the first time. when you're near an xfinity hotspot, you're connected to wifi, saving on data. when you're not, you pay for data by the gig. use a little, pay a little. use a lot, just switch to unlimited. get $400 back when you buy the new lg g8. call, visit or click today. >>> welcome back president trump expected to meet with senior security officials this week as the administration considers easing pressure on the chinese telecom giant huawei meantime, a federal jury in texas has rejected huawei claims that a silicon valley chip start-up backed by microsoft and dell stole its trade secrets and poached its employees. joining us now, the company's co-founder and ceo of ccnex lab, alan armstrong now, you've w

the problem with huawei is that huawei is dishonest about those legs. it is unwilling to admit it still has links with the pla, the army of the chinese communist party. because of where trade tensions are and because of the opacity and the worrying nature of the pla, this is a bigger deal than say b.t. or verizon or other companies that have links to the military. we are in a time where the norms are shifting and it is difficult to know where things are going to land. taylor: sarah, you hear isaac say huawei is dishonest. that is what the trump administration has been pounding their head against the table for for the past year. the problem is the business community, the chipmakers, lobbyists do not necessarily agree with that. what is their reaction to comments from the trump administration and those we keep hearing that huawei is really tied to the government? sarah: we start even with this ban that the trump administration put on huawei that essentially cut off american suppliers to that company. first thing they were doing were hiring their lawyers,

huawei. the vast majority of it they felt going to come right back. so, yes, the semiconductor rally is worthwhile. and i think that the one that i think david, if you want to know, well, the analysts want you to buy nxpi, less than important there. clearly you should buy micron. it does matter they said year over year, a big increase in dram, even bigger perhaps than flash but, david, nvidia, nvidia and melon knox, wouldn't that be the natural if the chinese are something to give is to approve melon knox and that's why nvidia is up almost more than every other stock. >> amazing how many things do get wound into -- >> it is vast. >> let's talk about the broader ramifications. we see the market up this morning, we see oil up in part on that opec deal, but also because of just this belief that you potentially are going to have demand growth. then on the other side, you probably have people saying, maybe the fed doesn't need to go 50 anymore, maybe it goes 25 basis points in this month we're in

everybody knew the key question in this wild whether huawei, china's huawei would be allowed to have a role. the culture secretary has just appeared in the commons to publish the supply chain review and has gone right through it and set at the end, we haven't a nswered and set at the end, we haven't answered a question about huawei because we are still uncertain what the us is up to. the us, a few months ago in may announced it was effectively blacklisted and well away, effectively banning us companies from working with the chinese firm. jeremy wright says we are not clear, we have sought clarity on the implications, but the position is not clear and until it is we have concluded it would be wrong to make specific decisions in relation to while away in the uk. so the whole thing has been kicked down the whole thing has been kicked down the road again. what happens next do you think? the decision, which would have been one of theresa may's final decisions as prime minister, a controversial one, we think they have effectively decided to allow while away some role, a limited role in the

it crushed all -- all the stocks of the companies that do business with huawei here. and there's a lot of semiconductor companies that do business however, before you start buying huawei suppliers hand over fist, you need to be careful because we still don't have much detail about what happened and i expect some of these suppliers will benefit a lot more than others, and some not benefit at all so who wins from the trade detant and who might not when the black list was rolled out, it initially hit all of huawei suppliers now that it's being rolled back, i only expect a partial rollback if if you make plain vanilla tech used for hand d sets just for your phone, just for this, i'm betting you're good to go. if you're making the components for teleceo infrastructure, you have a problem they want nokia and samsung to catch up to huawei when it comes to 5g and they're so far behind, being loo, i would like to say just good luck but i think samsung is making a comeback erickson and nokia, not that fast the best way to do this, the best way to make sure they're in the lead,

companies selling to huawei. but we're told that huawei was a national security threat over and over again over the last few months. which is it? former deputy trade representative is here exclusively to explain how huawei could go from enemy number one to just another chip in the trade war and it went so overnight. >>> july 4th fireworks turning out to be a dud for the dow. we do have good news. the good news is the s&p 500 right now is on track for its 95th all-time record high close since election day. if you just look at the dow which is up 42 points, it was within 28 points of hitting dow 27,000. that was before noon. nearly all of those 290 points in gains have shrivelled away. >>> plus are american farmers the big weekend winners? which farmers? very unspecific right now. we will pick some of the winners here. >>> iran's nuclear fallout plus charlie breaks it on the next move in the mortgage giants fannie and freddie and that saga. less than an hour to the closing bell. let's start the "countdown." liz: ga

hence, that is what hurts huawei . i guess everyone is watching how this trade war develops peer to all that uncertainty is one of the things that makes everybody nervous about what is going on. because thesad products themselves that huawei has designed, they are quite nicely done. you look at what they have done , they're leading the industry, but without access to the will services that makes it tough. shery: at least for now we have seen that 90 day relay for certain u.s. broadband companies and wireless customers. far,impact that we seen so given that we have a temper a license in place, what happens once that on august 19? on august 19. seen fromwhat we have huawei is that it has been business as usual. they are still doing launches around the world and planning for fall launches later this year on the assumption that they get access to all the components .hat they need but, as the deadline looms, as you point out, what happens then? is there resolution? let's assume there is no resolution. that obviously throws

huawei is not an independent actor. it is an arm of the chinese intelligence agency. us doing trust that business with them will not have negative consequences. i just read the washington post this past weekend and huawei was working with a shell company in north korea supplying them with technology that was explicitly banned through our sanctions regime. this is why we have joined in a bipartisan manner with congressman gallagher to make sure we enforce the huawei zte sanctions regime that we think is being effective. the president should not do a one-off trade for things that can significantly impact the future of our country and allied countries in terms of information technology. in the u.s. some business community including many high-level tech ceos who will say they see no evidence that huawei uses its equipment to spy on the u.s. or anyone else. what would you say to that? >> i would hope they read the panda shell corporation that was put up in north korea to allow huawei to do business with north korean companies that we have sanctions against. operating on th

to stay strong against huawei." are you with marco rubio or with donald trump? so, here's where i am. they should not be doing business in the united states, huawei should not be. if he's saying that american companies can sell to huawei and huawei sells to some place else, i can understand that. i don't know if i would do that. my concern is the national security interests of the united states. now, i don't believe huawei is a part of a trade negotiation. it has nothing to do with that at all. it's all national security. seperately, on the trade deal, i don't believe... i think it's very little to get a deal done with china. they steal, i mean no different than... cuba stole real property,they steal intellectual property. they don't do... china doesn't care about human rights. they don't open up their market. they militarise the south china sea. they're involved in venezuela. so i dont believe... and, by the way, name the deal that you've ever done where somebody negotiated a deal with you and then all of a sudden

shery: huawei reports earnings in the next few hours. has written extensively about the impact of the ban and joins us from huawei 's home city. great to heavy with us. let's talk about the blacklist on huawei. they had a 90 day release for certain u.s.-based companies. how much has the temporary license helped and how big will the impact be once it expires? >> good morning from shenzhen. first we look at smartphone --ts, after the huawei man ban, it was affected especially in the european markets, but quickly after huawei found some , shipments recovered. the huawei ceo had an raisingw talking about output to 270 million. i think the huawei strategy is to focus more on the 5g smart phone. i think the impact on the smartphone unit is very small. mostly from the android support but huawei will be able to find around downloading some google apps inng the european market. they used to use a lot of u.s. components, but right nowh [indiscernible] there are some other solutions they can work around to solve the ban. emily: meantime, your time

charles: on huawei, though, for a lot of americans, they have never even heard of huawei until this whole thing came up. >> right. charles: and then the threat of huawei has only become apparent to people in the last few months. now it's a critical piece in this whole -- in this -- >> yes, but charles, here's the thing, when i was in the house, some of us had amendments to appropriations bills that would block huawei from selling to the u.s. military and the u.s. government because we knew they were embedding that spy ware. charles: right. >> that was a known fact. so these american companies that are selling to huawei need to stop that. and we do not need to do anything that is going to encourage their cell phone sales. we don't know -- charles: you don't like american ship companies, for instance, selling to huawei, even if we're going to block them from being part of our 5g network? >> not at all, why would we do something to encourage their innovation? because huawei is building out a network that's embedded with spy ware, and it doesn't matter if it is financial data, if it is artifi

to stay strong against huawei. are you with marco rubio or with donald trump? so, he's around. they should not be doing business in the united states, huawei should not be. if he is saying that american companies can sell to huawei and while they can sell to someone else, eye can understand that. i don't know if they would do that. my concern is the national security interests of the united states. i don't believe huawei is a part of a trade negotiation. it has nothing to do with that at all. it is almost ready. secondly, on the radial eye... i think it is very little to get a deal done with china. they still intellectual property. china doesn't care about human rights —— they steal. they don't open up their market. they militarise the south china sea. there are involved in venezuela. so eye doubly... and, by the way, namely deal that you've ever done where somebody negotiated a deal with you and said all of a sudden a negotiated that annotated my mind and the deal closes. it doesn't happen. they don't believe

huawei have been clear in saying that it isn't a problem. it has been overblown by americans in terms of other political and economic reasons. ip and the way that china does business in the way americans see it and security. without that consistency, frankly, no trade deals, no discussions, nobody will really know quite where they are. thank you very much indeed. now let's brief you on some other business stories. financial services firm capital one says a hacker gained access to the personal details of more than 100 million people across north america. it included names, addresses and phone numbers of people who had applied for credit card products. a former seattle software engineer has been arrested and charged with computer fraud. shares in beyond meat have plunged in after hours trading. the company said demand for its plant—based burgers and sausages soared in the second quarter and increased its full—year forecast. but investors were spooked by the announcement of plans for a new stock offering. have you ever heard of meokbang? or

how does this new potential revelation about huawei and north korea -- huawei has denied any work in north korea -- how does that change your level of objection? >> it certainly makes me want to -- obviously, i object even harder. i think other corporations and other members of congress should be worried about this. the fact that the president does not seem to understand the problem, the scope, really tells you we should question his judgment when it comes to decisions on this very key national security issue. again, i think the president does not understand the full scope of what is happening or what could happen if huawei should be able to have access to our information technology market and our allies'. it is essentially trying to play one trade war against each other. we should not be trading access to the 5g market for huawei for us to go back to what we had pre-trade war, which is us being able to sell farm products to china. this should be separate from this trade war because this will have longer-lasting effects to our national security than this temporary trade war we have.

to stay strong against huawei." are you with marco rubio or with donald trump? so, here's where i am. they should not be doing business in the united states, huawei should not be. if he's saying that american companies can sell to huawei and huawei sells to some place else, i can understand that. would i do that? i don't know if i would do that. my concern is the national security interests of the united states. now, i don't believe huawei is a part of a trade negotiation. it has nothing to do with that at all. it's all national security. seperately, on the trade deal, i don't believe... i think it's very little to get a deal done with china. they steal, i mean no different than... cuba stole real property,they steal intellectual property. they don't do... china doesn't care about human rights. they don't open up their market. they militarise the south china sea. they're involved in venezuela. so i dont believe... and, by the way, name the deal that you've ever done where somebody negotiated a deal with you and then

that will not happen with huawei in this country. all we've done, basically, is to allow the sale of chips to huawei these are lower tech items which do not impact national security whatsoever huawei remains on the entity list more importantly, i think, china gave us some things, too they promised immediate and significant agricultural purchases and we hope to see immediate, immediate progress on that the important thing here is huawei is small in the scheme of things the important thing here is negotiations are back on track lighthizer is actively engaged with president trump guiding the whole process and i think the markets should be very happy about that. >> yeah. well, the market was happy yesterday certainly. but you talk about huawei being small in the scheme of things, which i guess i can understand but at the same time -- >> let me be clear here. >> you just said that. >> hang on. >> okay. >> huawei -- selling chips to huawei, a small amount of chips, less than a billion dollars worth of chips a year in the short run is small

following on what our coanchor was mentioning about huawei, is huawei going to be discussed in shanghai this week? >> i believe so. i think we -- within the scope of discussion come although i don't expect major breakthroughs coming out of shanghai. the sides are just trying to get back to the table after more than two months staying away from it. it is like husband and wife making the first attempt to get their marriage back on track after a big fight. think to expect anything groundbreaking is unrealistic. plus, we just mentioned the major issues that forced this, technology transfers, i.t. protection issues, those have been deeply rooted for 20 or 30 years and it won't change overnight. i don't expect miracles to happen in the next two days. at the same time, i think huawei and agricultural purchase from china will be the low hanging fruit. on huawei's side, business communities friend -- in china and the u.s. are asking for this for a while. useprediction is they will millions in revenue -- lose millions in revenue. microsoft and google will suffer as well. if you look at the politi

parts to huawei. with the support of the pulitzer center, nick schifrin is in china reporting a series of stories, and he traveled to e awei headquarters where he sat down with senior vesident vincent pang, who leads theco any's western european work, and its corporate communications. >> vice president pence called waw whey a wholly owned subsidiary of the chinese communist party and said alhowing huawei to operate 5g could fundamentally compromise u.s. national security. does huawei compromise u.s. or national sece ity? >>lfill all the local laws in every single country. we're running operations in 170 countries for the last 30 yea there is no single accident or evidence means huawei have done something wrong in any countries. second, we state very clearly huawei is 100% private company owned by employees. i don't know why there's so mann rumorsd suspicions and huawei's ownership. we've taken data back to china.h is a small industry. even such kind of things, it must be disclosed, already. >> reporte

to block huawei globally. if you look at the consumer division, which provides more than 50% of the company's revenues, they turned out about 18 million smartphones, but if you can't get new smartphones with android google operating systems, they expect international sales to weaken on the back of that. this is the chairman talking about the android implications, the lack of access to android and what it means to their smartphone business. u.s. don't know when the will make the decision on android and when the decision will come. we have to make preparations for our products. we will evaluate our strategy for the overseas market. if we are not able to use android with new smartphones, we have the ability to develop our own operating system and ecosystem to become the basis for our services to the customers. still does not have access to those key supplies. they confirmed that to us yesterday. the consumer division will face pressure if they do not get access to android operating systems when they launched thei

what is likely to happen at huawei? well, we have reached out to huawei if they can either confirm or deny that wall street general report. we are yet to hear back from them, but according to the newspaper, layoffs are expected to affect its research and development labs in the us, which employ about 850 people. this, of course, follows the government decision to put huawei on its so—called entity list, which bans american products from supplying huawei with new american—made goods and services unless they obtain licenses. the wall streetjournal says being on this blacklist, if you like, means that huawei employees in the us were restricted from communicating with their colleagues in china, but it was interesting to see another reporter by reuters saying that the government may approve licenses to start a new sales to huawei in as little as two weeks. so after the meetings between president trump and xi jinping a few months ago, they seem to be easing restrictions. amazon's prime day, which starts today, is usually

paul: in terms of huawei, president trump says he is waiting and watching on huawei's north korea role. huawei says it has no presence in north korea. clear this up for us. bill: that was a report that came out this morning that huawei was involved in helping build a 3g network in north korea. immediately raising questions in the united states about whether doing so would have violated a lot of export restrictions the u.s. has, given that much of the huawei equipment comes with technology developed by bus companies -- by u.s. companies. that is going to be another issue for the white house and the state department and treasury and everyone involved in looking at huawei's future in the u.s. to try to sort out, at very critical time where trade talks are set to possibly resume. paul: national security team leader bill faries. still to come, we will run through the agenda of japan talks trade with the u.s. amid a tech spat. shery: the market is at odds over what is next for the fed. we will assess the options and look for the best opportunities. this is bloomberg. ♪ paul: i am paul alle

trust huawei? >> i think we've not engaged appropriately and fear i mean, you fear what you don't know >> reporter: janice mackey frayer, nbc news, shenzhen, china. >>> when we come back, the lost moon landing tape and the amazing footage on it. it just made someone a millionaire. argars of allgearmstrong first stepped on the moon. it was the live tv pictures of the moon walk that helped make it a permanent part of america's collective memory now we have an even clearer version of it. here's nbc's kevin tibbles. >> reporter: we have a liftoff! >> reporter: 50 years ago today, the dream of a man on the moon came true. >> that's one small step for man one giant leap for mankind. >> reporter: that moment still resonates. 650 million people worldwide watched those first grainy images >> my parents were so excited, they were almost crying. >> beautiful, just >> it's amazing. they went up, landed, turned around and came back >> reporter: 50 years ago my dad took the three of us kids all out and bought us

huawei anmore. we continue to support our customers and deliver our uipment to all our customers. we signed a contract with our major customers already, and this year we will deliver 15ou000 stations tside of china. i think that is the fact. >> reporter: sir, thank you very muc >> thank you. >> oodruff: as more states consider the legalization of cannabis for both medicinal and recreational use, opponents are warning that such moves actually open the door to criminal groups in a burgeoning black market. as correspondent john ferrugia from rocky mountain pbs reports, dony are looking to what happened in colofter legalization of marijuana it's the "the green rush."es on >> reporter: it is becoming almost routine across much of the country. law enforcement intercepting marijuana products being exported to other states from colorado. in this case, a traffic stop in tennessee netted 100 pounds of processed pot, worth tens-of- thousands of dollars. in india, it was a lettuce truck headed from colorado to

companies to do business with huawei, but he didn't say whether or not he was prepared to take huawei off the blacklist, off the commerce department's entity list we understand that issue is going to be part of a discussion taking place in washington, d.c. on tuesday so effectively president trump said we'll see on the blacklist. take a listen to what else he had to say in the press conference after his talks with xi jinping. >> we mentioned huawei i said we'll have to save that until the very end we'll have to see. one of the things i will allow, however, a lot of people are surprised we send and we sell to huawei a tremendous amount of product that goes into the various things that they make. and i said that that's okay, that we will keep selling that product. >> so there you have president trump saying that's okay, referring to u.s. companies currently selling products to huawei will let them keep selling those products but when asked specifically about the entity list, as i mentioned, he said they didn't make a decision on that yet. he also said, as you heard that the whole huawei

we need huawei solved. we haven't even talked fin tech yet. >> no, not really. >> visa tomorrow visa will have to tell a horrible story to keep that stock down that's how much fintech is loved. it's almost valued higher than every other area i keep waiting when will the bank stocks begin to take money from financial technology maybe tomorrow visa says something so we break the spell of buying. >> this is why the parlor game of whoever runs wells next should be a fin tech guy, person, as opposed to a banker. >> that would be genius. you'd spot wells five points on a fin tech guy it doesn't really matter who it is it could be a guy who just created like trade web or something. you pick the number seven guy at goldman who does fin tech. you've got to change everything that isn't fin tech does not do as well. i think that -- i struggled for the wells quarter. i went over the wells quarter and they need a ceo. i think it's imperative that they have one. you can you can't have a headless horseman they need to rea

how we deal with huawei. the reports we will give some waivers, those are pending, we talked wilbur ross, who said he would be taking a look at it. we talked to bank of america, merrill lynch, who said that was critical to the deal. >> i do not think china will make a deal without huawei being a part of the deal. the only thing your trading on wei?ua is he rightvid: that the chinese will not make a deal without including huawei? michael: i think the chinese press has made it clear. huawei is not just another company, it is one of their champions. company, it is one of their champions. they have more fortune 500 companies than america, they also have more billionaires. the extradition request for the chief financial officer of , that is vancouver part of the deal, whether u.s. companies can sell high-tech chips to huawei to keep it going. that is part of the discussions. the chinese see if this way. president trump to me looks disappointed. it looks like he was counting on major agricultural purchases. he said

for their business with huawei in the u.k. a lot of u.s. allies are asking the same question. where is the evidence that huawei is creating back chance and back doors for the chinese equipment to spy on our equipment? where is the fresh evidence that they are stealing intellectual property? we want to see that in order to make a decision because there is a lot of u.s. allies that are dragging their heels on imposing the same restrictions. >> more reporting on the f.t. c. that they have reached an agreement with youtube, or a settlement. this as we are waiting for the final amount of a fine that the f.c.c. will levy on facebook. tell us about the youtube situation. >> the f.t.c. has been looking into whether or not youtube has violated terms of the online protection for children. the u.s. has strict rules around advertising that can be shown to children and the times of date that companies are allowed to collect and keep on children. the allegations are, and what the f.t. c. has been looking into is whether youtube is in violat

here is what president trump said about huawei last month. >> huawei is something that is very dangerous. what they have done him a security standpoint, from a military standpoint is very dangerous. >> why is the president agreed to do business again with the company that he says is an extension of chinese intelligent and a lot of people say if huawei products go into other countries it will allow chinese to spy on people using their products. >> that very well may be. let's be careful here. the president's announcement at these meetings and he was very clear to say that american companies can supply huawei with various products and services, provided that there is no national security issues or problems so the commerce department has already offered a number of general services licenses for some sales to huawei. on the other hand, i think commerce will probably go back after the president decision and take another look. maybe open it up, there's a lot of technology services. you can really find on general markets and we don't think have any national security applications, and i think th

would relax restrictions on american companies sellingts prod to chinese telecom giant huawei. as a result, stock got an initial lift. while the gains were more tha halved, it was still a record day. the dow rose 170 points. the nasdaq helped by the chip stocks rose about 85 and the s&p 500 climbed 22 to are rd, its sixth so far this year. we have two reports on trade starting with kayla tausche in washington. >> reporter: after a six-week standoff, president trump and president xi brokered afi ceas in 80 minutes. trump agreed to relax a ban on huawei in exchange for ina's buying more farm goods and there will be no new taceffs. the t has no deadline, which means present trump cannd it whenever talks fall through or keep it going, telling reporters he's in no rush. >> so we're making a deal with china, or we're attempting. if we don't, we have a tremendous ripe field of tremendous moneyld that we coming into our country. i'm not rushed. i told him that i want to get the deal right. >> reporter: multi national companies are relieved tensions have eased but have more questions th

you can see washington is pressing its allies to block huawei. it is. this is to do with the roll—out of sg, this is to do with the roll—out of 56, the this is to do with the roll—out of 5g, the next generation of our communications take place over the internet, wireless, and as a result, americans have been going to their allies, trying to say do not use huawei equipment. this is the british government saying, well, given that there is some doubt at the moment as to whether you will ease restrictions on what is allowed to happen between us companies and huawei, then we will wait and see when it comes to backing your call for this sort of blanket avoidance of huawei when it comes to 5g technology. there's also a response from the vice president of huawei said the uk government supply chain review gives us confidence we can continue to work with network operators to roll 5g across the uk. this is considered very important to the company, certainly it is seen as a major player at the moment. the company, certainly it is seen as a major player at the

but when the president interjected huawei and said that huawei as a whole constitutes a security threat to america, for the president to turn around and say, well, we can still sell equipment to the security threat, that doesn't make much sense and it is sending mixed messages to all of our allies when trying to convince our allies not to use huawei equipment. so here we are, allowing u.s. companies to sell equipment to huawei, but we also don't want our allies to be buying that equipment. really sends a lot of mixed messages. >> mr. ambassador, before i let you go, i would like for you to opine if you would, on what's taking place over in hong kong, given your former role i'm sure you have a point of view and a perspective on what we have been witnessing with the violent clashes between the protesters and police, which have been going on all evening long into the late and early morning hours into hong kong. >> well, it is very, very disconcerting to see the tensions and the violence escalating clearly the chinese have to be very -- have to be watching this very closely they do not want

companies sell products to huawei but the ban on huawei here in the u.s. still stands. trump indicating that they are going to wait until the very end of negotiations before trying to work out some sort of agreement over huawei. neil? neil: hillary, thank you very much. hillary vaughn at the white house. looks like oil prices are slipping well off their highs. for awhile, turning negative. they are up a tad right now. this despite the fact that opec and russia have agreed to extend their production cuts for at least another nine months. they were agitated as well by growing friction with iran and now the fact that it has gone ahead and breached its nuclear agreement, and that just added to a lot of angst. then of course you had the hong kong situation. all these are competing with one another to essentially have noil flat on the day. more after this. fact is, every insurance company hopes you drive safely. but allstate actually helps you drive safely... with drivewise. it lets you know when you go too fast... ...and brake too hard. with feedback to help you drive safer.

to be able to fully replace it >> huawei know that as well. i want to talk about that smartphone volumes shipment volumes are up 24% in contrast to analyst expectations of apple numbers apple doesn't publish their smartphone numbers anymore but they have been dropping every quarter. the china market share is 38%. none of this bodes well for apple who are set to be relea releasing earnings later today >> yes in terms of the huawei smartphone, you have the chi nee market where they don't need the u.s. components. you have the rest of the world in the rest of the world it might be more difficult if they can't use google and android even though they can replace and have an operating system, the issue is not so much the operating system but the systems where that will operate. we've seen microsoft and other companies trying to create that ecosystem. in terms of apple, they're not giving numbers for a reason. you need to look at expectations with apple the iphone has been the most successful consumer product of all time we're talking 1.5 billion in

what exactly do we know about whether chip companies can do business with huawei >> right now huawei remains on the entity list and for most companies, almost all american companies, that's the end of the road right there as soon as they are put on the list we talked to many ceos stop shipping that day and won't risk, you know, the give and take of politics to start shipping stuff now and run into trouble later so as long as they remain on the entity list most won't ship to huawei if the administration wants to make exceptions or issue licenses or special dispensations, that's completely up to them but it will undermine their credibility in congress and with allies if they start doing that for american companies so i don't see where they're going to get around a lot of this, either take it off the entity list or don't and if it stays on you won't be shipping to huawei >> ed, switching to focus. big week for tech earnings who are you furthest from c consensus on >> in the week ahead it's qualcomm doesn't report for another week out i think their troubles with the ftc in the u.s. distr

suppliers is even bigger than it is to huawei. we will have to increase our workload and manage continuity internally. but the damage to the u.s. suppliers direct, as they lose a customer. from theemove huawei listing that would be a solution. >> what impact are you seeing for demand for your 5g agreement given the u.s. pressure campaign on some of its allies around the world to block access to huawei? liang: although the u.s. has been launching a campaign among its allies, it is up to each country to decide i ts one is based on its own development demands, tillage medication demands -- telecommunication demands, and carry infrastructure to mental. there might be impact in places like australia but there are others were willing to work with huawei. guy: that was the huawei chairman in an exclusive interview conducted by bloomberg's tom mackenzie. taylor: time for the biggest business stories in the news right now. procter & gamble reported its best quarter of organic sales in more than a decade. consumersped up -- snapped up beaut

huawei will stay on the entity list. what is going to happen the commerce department will add or issue temporary licenses to allow companies to sell their products to the telecommunications giant. a source close to the talks says this process already started. for example, google has one of the licenses. it can offer all of its products to huawei again. >> he is still going to be tougher on china and tougher on huawei than anyone else in history. furthermore if you look at the substance of this there is a way you can distinguish between what huawei is doing in the networks where there is significant real national security threat and can u.s. companies simply sell them components for their cell phones? reporter: senator marco rubio pushing back saying this is a huge mistake because huawei is such a great threat to national security. president trump used the gesture to get china back to the negotiating table. he postponed adding additional tariffs on chinese imports as talks are ongoing. >> it is fairly important from the a

vodafone does use huawei equipment. part of the question is how much that will be a focus in the rollouts, will the companies try to mute that they're not selling huawei phones so far, but the equipment remains a crucial part of the networks >> how successful has the u.s. been some allies in other parts of the world have said you're right, we'll step back from this is the uk the outlier? is it the one saying we don't care, are there considerations around potential restrictions still ongoing? >> we've been waiting on this decision on whether there will be a blanket ban or not. there is already huawei equipment in place in the uk, many other european countries around the world from 3g and 4g networks it would take a lot of costs and infrastructure to replace those parts. and the companies, for example vodafone, they have said we don't want to do that it would delay the entire 5g rollout process. >>> another big story from the trump administration, the president has revealed two fresh nominations to the federal reserve boa