Exclusive: Huawei in early talks with U.S. firms to license 5G platform - Huawei executive - Yahoo News

FILE PHOTO: A Huawei company logo is pictured at the Shenzhen International Airport in Shenzhen

By Alexandra Alper

October 19, 2019

By Alexandra Alper

WASHINGTON (Reuters) - Blacklisted Chinese telecoms equipment giant Huawei is in early-stage talks with some U.S. telecoms companies about licensing its 5G network technology to them, a Huawei executive told Reuters on Friday.

Vincent Pang, senior vice president and board director at the company said some firms had expressed interest in both a long-term deal or a one-off transfer, declining to name or quantify the companies.

"There are some companies talking to us, but it would take a long journey to really finalize everything," Pang explained on a visit to Washington this week. "They have shown interest," he added, saying conversations are only a couple of weeks old and not at a detailed level yet.

The U.S. government, fearing Huawei equipment could be used to spy on customers, has led a campaign to convince allies to bar it from their 5G networks. Huawei has repeatedly denied the claim.

Currently there are no U.S. 5G providers and European rivals Ericsson <ERICb.ST> and Nokia <NOKIA.HE> are generally more expensive.

In May, Huawei, the world's largest telecoms equipment provider, was placed on a U.S. blacklist over national security concerns, banning it from buying American-made parts without a special license.

Washington also has brought criminal charges against the company, alleging bank fraud, violations of U.S. sanctions against Iran, and theft of trade secrets, which Huawei denies.

Rules that were due out from the Commerce Department earlier this month are expected to effectively ban the company from the U.S. telecoms supply chain.

The idea of a one-off fee in exchange for access to Huawei's 5G patents, licenses, code and know-how was first floated by CEO and founder Ren Zhengfei in interviews with the New York Times and the Economist last month. But it was not previously clear whether there was any interest from U.S. companies.

In an interview with Reuters last month, a State Department official expressed skepticism of Ren's offer.

"It's just not realistic that carriers would take on this equipment and then manage all of the software and hardware themselves," the person said. "If there are software bugs that are built in to the initial software, there would be no way to necessarily tell that those are there and they could be activated at any point, even if the software code is turned over to the mobile operators," the official added.

For his part, Pang declined to predict whether any deal might be signed. However, he warned that the research and development investment required by continuously improving the platform after a single-transfer from Huawei would be very costly for the companies.

Huawei has spent billions to develop its 5G technology since 2009.

(Additional reporting by Ken Li and Karen Friefeld; Editing by Chris Sanders and Sandra Maler)

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2019-10-19 01:48:19Z
CBMiSGh0dHBzOi8vd3d3LnlhaG9vLmNvbS9uZXdzL2V4Y2x1c2l2ZS1odWF3ZWktZWFybHktdGFsa3MtdS0wMTE3Mjk5MjMuaHRtbNIBTGh0dHBzOi8vbmV3cy55YWhvby5jb20vYW1waHRtbC9leGNsdXNpdmUtaHVhd2VpLWVhcmx5LXRhbGtzLXUtMDExNzI5OTIzLmh0bWw

Exclusive: Huawei in early talks with U.S. firms to licence 5G platform - Huawei executive - Yahoo Finance

FILE PHOTO: IFA consumer tech fair in Berlin

By Alexandra Alper

WASHINGTON (Reuters) - Blacklisted Chinese telecoms equipment giant Huawei is in early-stage talks with some U.S. telecoms companies about licensing its 5G network technology to them, a Huawei executive told Reuters on Friday.

Vincent Pang, senior vice president and board director at the company said some firms had expressed interest in both a long-term deal or a one-off transfer, declining to name or quantify the companies.

"There are some companies talking to us, but it would take a long journey to really finalise everything," Pang explained on a visit to Washington this week. "They have shown interest," he added, saying conversations are only a couple of weeks old and not at a detailed level yet.

The U.S. government, fearing Huawei equipment could be used to spy on customers, has led a campaign to convince allies to bar it from their 5G networks. Huawei has repeatedly denied the claim.

Currently there are no U.S. 5G providers and European rivals Ericsson <ERICb.ST> and Nokia <NOKIA.HE> are generally more expensive.

In May, Huawei, the world's largest telecoms equipment provider, was placed on a U.S. blacklist over national security concerns, banning it from buying American-made parts without a special license.

Washington also has brought criminal charges against the company, alleging bank fraud, violations of U.S. sanctions against Iran, and theft of trade secrets, which Huawei denies.

Rules that were due out from the Commerce Department earlier this month are expected to effectively ban the company from the U.S. telecoms supply chain.

The idea of a one-off fee in exchange for access to Huawei's 5G patents, licenses, code and know-how was first floated by CEO and founder Ren Zhengfei in interviews with the New York Times and the Economist last month. But it was not previously clear whether there was any interest from U.S. companies.

In an interview with Reuters last month, a State Department official expressed scepticism of Ren's offer.

"It's just not realistic that carriers would take on this equipment and then manage all of the software and hardware themselves," the person said. "If there are software bugs that are built in to the initial software, there would be no way to necessarily tell that those are there and they could be activated at any point, even if the software code is turned over to the mobile operators," the official added.

For his part, Pang declined to predict whether any deal might be signed. However, he warned that the research and development investment required by continuously improving the platform after a single-transfer from Huawei would be very costly for the companies.

Huawei has spent billions to develop its 5G technology since 2009.

(Additional reporting by Ken Li and Karen Friefeld; Editing by Chris Sanders and Sandra Maler)

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2019-10-19 01:23:47Z
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With China's latest GDP data, it's hard to ignore fears about global growth - CNN

China's growth dropped to its lowest level in nearly three decades as the world's second largest economy continues to feel the pain from its trade conflict with the United States.

The country's gross domestic product grew at 6% between July and September, my CNN Business colleague Laura He reports from Hong Kong. That's the weakest quarterly growth rate since 1992, and down from 6.2% the previous quarter.

Context: The worse-than-expected figure emerged just one week after the United States and China reached a tentative trade truce to avert more damage. That agreement could relieve some pressure on China's economy. But it's far from a cure-all.

"Ongoing negotiations may have some positive impact on business [sentiment], but despite the potential mini deal, most of the US tariffs on imports from China remain, hurting Chinese exports," said Chaoping Zhu, global market strategist at JPMorgan Asset Management.

The Shanghai Composite dropped 1.3% Friday, erasing gains the index had made since news of an agreement.

The Chinese data showed some pickup in September. Growth in industrial production jumped to 5.8% from 4.4% the previous month, and retail sales rose 7.8% in September compared to the same period one year ago.

But experts warn that any recovery may be short-lived.

"Cooling global demand will continue to weigh on exports, fiscal constraints mean that infrastructure spending will wane in the near-term, and the recent boom in property construction looks set to unwind," Julian Evans-Pritchard, senior China economist for Capital Economics, said in a research note to clients.

Analysts at Nomura see China's GDP growth dropping to 5.8% in the fourth quarter of 2019 as exports are hit again by the slowing global economy and the trade conflict.

Aramco's IPO gets delayed ... again

Investors will have to wait a bit longer for a piece of Saudi Aramco's massive public listing.

The timing of the blockbuster IPO was pushed back to allow the state-run Saudi oil company to publish quarterly results, which will provide clarity on the impact of last month's attacks on its oil facilities, a source familiar with the process told CNN Business.

Market watchers had expected the IPO to launch in the coming days, paving the way for a November listing on Saudi Arabia's Tadawul exchange in Riyadh.

What Aramco says: "The company continues to engage with shareholders on IPO readiness activities. The company is ready and timing will depend on market conditions and be at a time of the shareholders' choosing."

Remember: The unprecedented September attack on Aramco, the world's most profitable company, briefly knocked out half of its oil production. But Aramco quickly restored the output, easing market fears of a shortage.

The company had been clear that it didn't expect the incident to derail the IPO process, and analysts believed it actually strengthened Crown Prince Mohammed bin Salman's resolve to get a deal done. But investors clearly want more information about the company's finances before committing to a valuation in the $2 trillion range that bin Salman is targeting.

Let the Brexit vote counting begin

The British pound and UK stocks shot up on news that Prime Minister Boris Johnson had clinched a new Brexit agreement with the European Union. Then the political reality set in.

Johnson still needs to get his deal through a special session of the UK Parliament scheduled for Saturday. Opposition parties and a group of lawmakers from Northern Ireland say they won't support the agreement, raising serious doubt about whether Johnson can succeed where his predecessor, Theresa May, failed.

"Johnson has a chance, but it is going to be tight," Kallum Pickering, senior economist at Berenberg, said Thursday in a note to clients. Expect the pound to stay jumpy on Friday as traders keep a running tally of the parliamentary math.

American Express (AXP) and Coca-Cola (KO) report earnings before US markets open.

Also today:

• The IMF and World Bank annual meetings take place in Washington, with speakers such as Bank of England Governor Mark Carney.

Coming tomorrow: Britain's Parliament will hold a make-or-break vote on Prime Minister Boris Johnson's new Brexit deal.

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2019-10-18 11:04:00Z
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Top 5 Things to Know in the Market on Friday - Investing.com

© Reuters.

Investing.com -- China's economy grew at its slowest rate in nearly 30 years in the third quarter, and Boris Johnson is battling to get his Brexit deal through a recalcitrant House of Commons, while Saudi Arabia has postponed the IPO of national company Saudi Aramco - again. Here's what you need to know in financial markets on Friday, 18th October.

1. China grows more slowly than expected

The Chinese economy grew at its slowest rate in nearly 30 years in the third quarter, as a trade dispute with the U.S. took an increasingly heavy toll.

Gross domestic product grew at an in the three months through September, down from 6.2% in the second quarter and below the 6.1% expected by analysts ahead of time.

The news contrasts intriguingly with this week’s news flow which has concentrated on China trying to extract more concessions from the U.S. before it signs the “phase-1” handshake deal agreed last week by the two sides. Evidence of strain on the Chinese economy is likely to encourage trade hawks in the U.S. administration to hold out for more important concessions from Beijing than those offered so far.

2. Stocks flat; Coke, Amex, and AMD reports awaited

U.S. stocks were set to open flat, consolidating gains made on the back of largely decent earnings reports and progress in the Brexit saga (on which, more below).

By 6:15 AM ET, were down 5 points, effectively unchanged from Thursday's close, while and the contract had also moved less than 0.1%.

Heading today’s roll of earnings are , where focus is likely to fall on what management says about the outlook for Coke’s first energy drink, which is due to be launched in January. , and Synchrony Financial(NYSE:) are likewise both due to report before the bell, while is also due to update later.

3. Johnson battles to pass Brexit bill

After a dramatic breakthrough in Brussels on Thursday, U.K. Prime Minister Boris Johnson now has to get his EU withdrawal bill through a House of Commons which voted three times against his predecessor’s version (to which it bears more than a passing resemblance). A vote is scheduled for an extraordinary session on Saturday.

The pound has risen in European trading amid reports that a larger-than-expected number of Labour Party lawmakers are willing to back the agreement, fearing a backlash from constituents who voted, on balance, to leave the EU in 2016 and whose patience/attention span with regard to Brexit was exhausted some time ago.

However, Johnson does not have a majority in the House of Commons, and even if the bill passes, opponents of Brexit will still have a chance to force a referendum when the government brings legislation to implement the withdrawal agreement.

4. Emerging markets rally on five-day ceasefire in Syria

Turkish and Russian assets rallied after President Recep Tayyip Erdogan agreed to a five-day ceasefire in northern Syria, under pressure from the U.S.

Turkey’s armed forces have been attacking Kurdish fighters across a front hundreds of miles wide, but they have run into resistance led by forces from the Syrian regime and their Russian allies.

The ceasefire removes one immediate threat of escalation that could harm either of Europe’s largest two emerging markets. The rose 0.7% against the dollar but came off intraday highs on reports of pockets of continued fighting. The rose to within touching distance of a three-month high, despite the continued weakness in oil prices that usually determines the exchange rate.

5. Saudi Aramco postpones IPO again

Of course it was too good to be true. Saudi Arabia has once again the initial public offering of national oil company Saudi Aramco, after bankers failed to guarantee the $2 trillion valuation that the kingdom’s de facto ruler Crown Prince Mohammed bin Salman has insisted on.

Reports suggest that the first part of the IPO, which is slated for the domestic Saudi market only, will be put off at least until January.

By then, Saudi Arabia, OPEC and Russia may have had time to take more action to push crude oil prices back up closer to where they want them. Speculation is growing that the so-called OPEC+ group will be forced after all into announcing additional supply cuts when it reviews its existing arrangements in December.

Crude prices have fallen this week on fears of global oversupply, illustrated in a massive build in U.S. inventories last week. The sell-off on the back of those data mean that there were only moderate further losses after the China GDP number, and by 6:15 AM futures were up 0.7% on the day at $54.31, while was up 0.3% at $60.08.

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2019-10-18 10:19:00Z
52780411375848

Asian shares slump after weak China GDP, pound retreats - Investing.com

© Reuters. FILE PHOTO: The German share price index DAX graph at the stock exchange in Frankfurt

By Marc Jones

LONDON (Reuters) - World stocks slipped after China posted its weakest growth rate in nearly three decades on Friday, while the dollar was set for its worst week in almost four months having been pummeled by pound and euro Brexit rallies.

China's economy grew a slightly less-than-expected 6% in the third quarter, leaving traders hoping that the swift stimulus Beijing and the major global central banks have provided in recent weeks will fend off a more serious downturn.

Main European bourses fell a modest 0.1%-0.3% () after Asia had been led lower by a 1.2% slump in top Chinese shares (). There was also a sharp reverse in car shares () after a Renault (PA:) profit warning. ()

"You can't get away from the fact that China is slowing, but it's not slowing more than we thought," said head of global macro strategy at State Street (NYSE:) Global Markets Michael Metcalfe.

"We know that Q4 is going to be a soft patch, but to a degree policymakers are ahead of this, so as long as we don't have an escalation of the trade war now I think markets can handle it."

In currencies, sterling was taking a breather at $1.2850 , having scored its best six-day streak in near 30 years on Thursday after Britain and the EU sealed a new Brexit deal.

Doubts about whether the deal will be approved in the British parliament were still sky high, though, with swathes of lawmakers, who are either reluctant about Brexit or worried the deal is not a clean enough break, due to debate the deal in a rare Saturday sitting.

"Whatever was agreed last night with the EU still has to go through the British parliament... the uncertainty surrounding that still hasn't changed one iota," said James McGlew, executive director of corporate stockbroking at Argonaut.

The euro rested at $1.1125 (), not far from $1.1140, its highest since Aug. 26. The dollar remained weak too having seen this week's weak retail sales data and more U.S. interest rate cut talk contribute to its biggest weekly slide since June. ()

EARNINGS

Helping to alleviate immediate trade war worries, China had said on Thursday that it hoped to reach a phased agreement in its trade dispute with the United States as soon as possible.

Investors were also encouraged by upbeat earnings from Netflix (O:) and Morgan Stanley (N:), but poor results from International Business Machines Corp (N:) and weak U.S. economic data weighed.

Housing starts, industrial production and mid-Atlantic factory output all fell short of economists' expectations.

Reflecting the cautious mood, the safe-haven yen strengthened, with the dollar falling 0.13% to 108.51. The yield on benchmark 10-year Treasury notes () edged up though to 1.764%, compared with a U.S. close of 1.755% on Thursday.

Euro zone bond yields were also nudging up with German Bund yields holding at -0.40%, the highest since early August. ()

The Bund yield is now up 16 bps since Irish and British leaders said on Oct. 10 they saw a path to a Brexit deal, which boosted risk appetite and weakened demand for safe-haven assets like bonds.

In commodities, oil fell on the China data, with Brent crude () easing 0.52% to $59.60 and U.S. crude () dropping 0.19% to $53.83.

"The (China) GDP print has weighed on short-term sentiment and we have seen regional stock markets and oil contracts edge lower because of that," said Jeffrey Halley, senior market analyst for Asia Pacific at brokerage OANDA.

Crude demand growth tends to track economic growth trends, but Halley said China's need for oil would not recede any time soon.

Underlining that view, Chinese official data released on Friday showed robust refinery throughput in September, rising 9.4% from a year earlier to 56.49 million tonnes, on increases from new refineries and some independent refiners resuming operations after maintenance.

Gold dipped to $1,488 per ounce.

(GRAPHIC: GBP loses Brexit deal boost - https://fingfx.thomsonreuters.com/gfx/mkt/12/7551/7482/gbp.png)

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2019-10-18 06:32:00Z
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China's economic growth sinks to a 26-year low - Fox Business

Treasury Secretary Steven Mnuchin on the status of China trade talks.

China's economy took another hit last quarter as the tariff war with the United States takes its toll.

Continue Reading Below

China's economic growth decelerated to a 26-year low in the latest quarter, adding to a deepening slump that is weighing on global growth.

The world's second-largest economy expanded by 6 percent in the three months ending in September, down from the previous quarter's 6.2 percent, data showed Friday.

An impressive number for most countries, but not for China.

It was the lowest rate since China started reporting data by quarters in 1993.

U.S. growth was 2.1 percent in the second quarter.

The slump increases pressure on Chinese leaders to avert politically dangerous job losses as they fight a tariff war with President Trump over Beijing's trade surplus and technology ambitions.

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The slowdown in China, the world's biggest trader, has global repercussions. It is depressing demand for industrial components from Asian countries and prices of soybeans, iron ore and other commodities, hitting Brazil, Australia and other suppliers.

The International Monetary Fund cited the U.S.-Chinese tariff war as a factor in this week's decision to cut its 2019 global growth forecast to 3 percent from its previous outlook of 3.2 percent.

Trump agreed last week to delay a tariff hike on Chinese goods and said Beijing promised to buy up to $50 billion of American farm goods. Officials say the two sides still are working out details.

Beijing has yet to confirm the scale of possible purchases of U.S. goods. It is unclear whether Chinese leaders want more steps including possibly lifting punitive tariffs already in place before purchases go ahead.

An even bigger impact on Chinese growth appears to come from cooling domestic activity including consumer spending and investment.

Retail sales growth declined to 8.2 percent over a year earlier in the first three quarters of 2019, down from the first half's 8.4 percent, the National Bureau of Statistics reported.

China's exports to the United States, its biggest foreign market, fell 21.9 percent in September from a year ago. That helped to drag down overall Chinese exports by 1.4 percent. Imports of American goods sank 15.7 percent.

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The latest economic growth figure was the lowest since China began reporting data by quarters in 1993. Annual growth tumbled to 3.9 percent in 1990, but rebounded to 9.3 percent the following year.

The Associated Press contributed to this article.

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2019-10-18 03:56:42Z
52780412055359

Asian markets mixed after decades-worst GDP growth by China - MarketWatch

Asian markets were mixed in early trading Friday, as new data showed worse-than-expected economic growth in China.

China’s economy expanded at a 6% rate year-over-year, official data showed, less than the median 6.1% forecast by economists polled by the Wall Street Journal, and the worst pace of growth since the first quarter of 1992. It was the second straight month of weaker year-on-year data. China expects annual GDP growth of 6% to 6.5% this year, down from last year’s 6.6% growth.

Still, investors appeared relieved the numbers weren’t worse, considering the ongoing tariff war with the U.S. and signs of a global slowdown.

“While the GDP is testing the lower bound of the official annual 6-6.5% target, today’s data suggests there is a very limited risk of breaching the lower bounds of that target this year,” Stephen Innes, Asia-Pacific market strategist for AxiTrader, wrote in a note. “While risk asset is not flashing all green, markets can breathe a sigh of relief.”

Japan’s Nikkei NIK, +0.18%   rose 0.6% as a core inflation reading fell to 0.3% in September, the lowest level since April 2017, but in line with analysts’ expectations. Hong Kong’s Hang Seng Index HSI, -0.48%   fell 0.1% giving up early gains, while the Shanghai Composite SHCOMP, -1.32%  fell 0.2% and the smaller-cap Shenzhen Composite 399106, -1.17%   was last about flat. South Korea’s Kospi 180721, -0.83%   was flat as well, while benchmark indexes in Taiwan Y9999, -0.06%  , Singapore STI, -0.38%  , Indonesia JAKIDX, +0.18%   and Malaysia FBMKLCI, -0.21%   were little changed. Australia’s S&P/ASX 200 XJO, -0.52%   slipped 0.6%.

Among individual stocks, robotics maker Fanuc 6954, +2.21%   gained in Tokyo trading, along with Rakuten 4755, +2.43%   and Fast Retailing 9983, +1.82%  . In Hong Kong, Sunny Optical 2382, +1.28%   and AIA 1299, -0.53%   gained, while property developers such as Wharf Real Estate 1997, -1.11%   retreated after big gains Thursday. Kia Motors 000270, -0.12%   gained in South Korea, while Westpac WBC, -0.83%   and Commonwealth Bank CBA, -0.59%   slipped in Australia.

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2019-10-18 02:59:00Z
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