Eunice Yoon (Business News) 00:00.110
well frank i would i think it's interesting is the reaction of the chinese government or the non reaction because officially the foreign ministry dodged a question they didn't actually go into anything other than a boilerplate statement which was that beijing beijing 's position
Eunice Yoon (Business News) 00:14.590
on tick tock is consistent and clear but the state media reaction has been interesting in that it's been quoting a pro beijing professor on the tik tok deal and there that professor is saying that this deal is in line with chinese law that this is not a sale of the algorithm
Eunice Yoon (Business News) 00:31.430
that oracle is only reviewing the algorithm and so it cannot copy or steal it that tik tok will remain one hundred percent owned by bytedance and with that and the focus of that professor on how this is in line with chinese law as well as the fact that there is a closing date of
Eunice Yoon (Business News) 00:49.270
january twenty second for this JV deal suggests that the chinese believe that this is going to go through OK
Frank Holland (Anchor) 00:56.510
we're seeing a proxy speak for the chinese government i think the key issue here is that this joint venture is not going to own the algorithm you and i were talking for the show it's like selling the car but you keep the engine how should we really view this when it comes to the
Frank Holland (Anchor) 01:09.190
trade relations between US and china the fact that they're doing this to adventure but really what i think most people see the most valuable asset the algorithm isn't part of the deal well
Eunice Yoon (Business News) 01:17.110
i think what what's interesting about this deal is that it's inconsistent with what we're seeing between china and president trump and that is that the chinese or at least is a belief in china that the chinese want president trump to continue to be on what beijing believes is
Eunice Yoon (Business News) 01:32.390
the right path so what we're seeing is the tick tock deal for example something that's not strategically important for beijing but is something that president trump has been hoping for would be good for him politically to be able to close this deal so them handing that one over
Eunice Yoon (Business News) 01:49.350
also soybeans so another one that from a strategic standpoint for beijing isn't really that important but is something that they know would continue to maintain that relationship with president
Frank Holland (Anchor) 02:01.390
trump yeah i think the soybeans are win for the president perhaps this tick tock deal could be another win for the president so eunice stand by right now joining the conversation right now is john stoltzfus chief investment strategist at oppenheimer asset management john welcome
Frank Holland (Anchor) 02:14.150
to the conversation of course oracle shares are surging on this news what do you think this means for the tech trade that's been under a lot of pressure in recent days
John Stoltzfus (Chief Investment Strategist) 02:21.830
frank great to be on the show this morning with you have got to say that i think it's it's great for technology it reminds everybody that indeed we're all on the upgrade cycle whether we like it or not it's it's chips are important part of our life and the whole the whole
John Stoltzfus (Chief Investment Strategist) 02:38.070
portfolio of technology appears to be in good stead in the sense that we're not going back to the abacus or the abacus or the slide rule folks this is a technology world and the agreement that we see here that that appears to be in the wings with china you know related to a
John Stoltzfus (Chief Investment Strategist) 02:57.710
particular deal we're talking about i can't specifically address that because doesn't doesn't like their portfolio managers who are also strategists to be pitching any stocks i'm not doing that but just it just it looks like a very healthy thing and we we think overall you know
John Stoltzfus (Chief Investment Strategist) 03:13.750
this is revives a trade that got a little sour for the last ten days or so and it it looks like we're back on track all
Frank Holland (Anchor) 03:24.510
right so very interesting take john we're gonna get more to one with you in just a second but eunice i want to come back to you just pulling the thread you were talking about not quite an olive branch but kind of it seems like a give to the president and to the united states
Frank Holland (Anchor) 03:37.190
we're also hearing from the president kristen welker from NBC news speaking with the president yesterday some of those comments released saying that his tariffs are permanent and of course they're going to stay could any of this be a factor in this whole thing that you want to
Frank Holland (Anchor) 03:48.110
give the president something even if the tariffs are permanent there might be negoti and it seems like the chinese government is at least not in all the branch you told me it's not quite an olive branch but it's certainly a gift
Eunice Yoon (Business News) 03:57.110
well it's it's definitely a gift because they it looks as though they are trying to do what the chinese are so great at doing which is divide and conquering so they look at president trump they see that it appears that he wants to have a closer relationship with them maybe not
Eunice Yoon (Business News) 04:11.150
the the same case for the rest of the administration or for people in the US national security community so if they continue to give president trump you know tik tok or soybeans something that isn't so important for them but something that they know he would appreciate a lot
Eunice Yoon (Business News) 04:25.910
that in that way they do what they're they do so well which is to be able to divide president trump from the rest of the US national security and perhaps even people within his own administration