Huawei security officer: US has no evidence of wrongdoing


WITH CHINA AND THE TECHNOLOGY THREAT. HUAWEI AT THE CENTER OF INTENSE INTERNATIONAL SCRUTINY. SEVERAL COUNTRIES ARE SOUNDING THE ALARM ON THE THREAT TO SECURITY. PRESIDENT TRUMP HAS BLASTED THE COMPANY, ALONG WITH AUSTRALIA, JAPAN AND TAIWAN. THE PRESSURE HAS BEEN HURTING SALES. ONE HUAWEI EXECUTIVE SAYING IT NEEDS MORE TIME TO BECOME THE WORLD’S LARGEST SMARTPHONE MAKER, A GOAL IT WAS AIMING TO ACHIEVE LATER THIS YEAR. JOINING ME RIGHT NOW IS HUAWEI TECHNOLOGY’S CHIEF SECURITY OFFICER, ANDY PURDY. THANK YOU FOR JOINING US ONCE AGAIN.>>THANK YOU. MARIA: WE TALKED ABOUT A LOT OF THE CONVERSATION SURROUNDING HUAWEI AND THAT IS WORRY THAT THERE IS ESPIONAGE, THAT THE SECURITY IS NOT SAFE. I WANT TO PLAY A SOUND BITE OF SECRETARY OF STATE MIKE POMPEO AND VICE PRESIDENT MIKE PENCE AND WHAT THEY RECENTLY TOLD ME ABOUT HUAWEI. WATCH.>>HUAWEI IS AN INSTRUMENT OF THE CHINESE GOVERNMENT. THEY’RE DEEPLY CONNECTED. IT’S SOMETHING THAT’S HARD FOR AMERICANS TO UNDERSTAND. COMPANIES COOPERATE WITH THE UNITED STATES GOVERNMENT, THAT IS, THEY COMPLY WITH LAW BUT NO PRESIDENT DIRECTS AND AMERICAN PRIVATE COMPANY. THAT’S VERY DIFFERENT IN CHINA. THEY JUST SIMPLY OPERATE UNDER A DIFFERENT SET OF RULES. THAT’S THE MOST FUNDAMENTAL THING I THINK PEOPLE NEED TO TRY TO GET THEIR HEAD AROUND. IF THAT’S THE CASE THAT THE CHINESE COMMUNIST PARTY WANTED TO GET INFORMATION FROM TECHNOLOGY THAT WAS IN THE POSSESSION OF HUAWEI, IT’S ALMOST CERTAINLY THE CASE THAT HUAWEI WOULD PROVIDE THAT TO THEM, THE DEEP CONNECTIVITY EXISTS IN THE WAY THEIR POLITICAL ECONOMY OPERATES. THAT’S DIFFERENT THAN THE UNITED STATES. THAT’S THE THREAT THAT PRESIDENT TRUMP SEES FROM HUAWEI.>>THE WHOLE ISSUE OF HUAWEI IS IT’S AN ISSUE OF NATIONAL SECURITY. HUAWEI IS IN EFFECT A WHOLLY OWNED SUBSIDIARY OF THE CHINESE COMMUNIST PARTY AND TO HAVE HUAWEI OPERATING AS A 5G NETWORK IN OUR COUNTRY OR IN OUR ALLIES’ COUNTRIES, WE BELIEVE REPRESENTS A FUNDAMENTAL COMPROMISE OF OUR NATIONAL SECURITY AND THE PRIVACY OF MILLIONS OF CITIZENS. MARIA: ANDY, YOU’RE THE CHIEF SECURITY OFFICER AT THE COMPANY. WHAT’S YOUR REACTION TO WHAT YOU’VE HEARD?>>SEVERAL THINGS. FIRST OF ALL, AT THE HIGHEST LEVELS OF SECURITY CLEARANCE THE UNITED STATES PRESENTED NO EVIDENCE OF CYBER SECURITY WRONGDOING BY HUAWEI ACCORDING TO THE GERMAN AND U.K. OFFICIALS. THE FACT IS THAT WE DON’T SPEAK THROUGH THE CHINESE GOVERNMENT. THEY DON’T SPEAK THROUGH US. IT’S ALSO VERY IMPORTANT TO REMEMBER TWO OTHER THINGS. THE NETWORK OPERATORS CONTROL ALL THE DATA AND ALL THE ACCESS. AND THIRD, WE ONLY HAVE VERY LIMITED ACCESS TO THAT DATA AND THEN NOT FROM HUAWEI NETWORKS, THEN ONLY AFTER WRITTEN PERMISSION FROM THE NETWORK OPERATORS AND THEN SPECIAL LAPTOPS ARE CONNECTED TO THE CUSTOMER NETWORK WHERE EVERY KEY STROKE IS LOGGED THAT PROVIDES ASSURANCE AND TRANSPARENCY. THOSE ARE THE FACTS. MARIA: THE FACTS ALSO ARE THAT HUAWEI HAS SETTLED LAWSUITS WITH A NUMBER OF AMERICAN COMPANIES FOR STEALING TRADE SECRETS. THE COMPANY SETTLED WITH CISCO, MOTOROLA, T-MOBILE, MICROSOFT, ALL OF THESE LAWSUITS HAPPENED IN THE LAST EIGHT YEARS AND YOU’VE BEEN FORCED TO SETTLE. SO HOW DO YOU SAY THERE WERE NO CYBER BREACHES? THIS IS WHAT WE DISCUSSED, YOU AND ME, THE LAST TIME. TO COMPLETELY IGNORE ALL OF THESE LAWSUITS THAT WERE SETTLED BECAUSE HUAWEI STOLE TRADE SECRETS.>>THE FACT IS, THE INDUSTRY HAS QUITE A CHECKERED PAST AND QUITE A BIT OF LITIGATION. IN TERMS OF SIGNIFICANT CYBER SECURITY WRONGDOING, THERE’S BEEN NO EVIDENCE IN 170 COUNTRIES AND THE U.S. COULD GIVE NO EVIDENCE OF THAT TO THE U.K. OR GERMANY OR OUR OTHER ALLIES. MARIA: THE EVIDENCE I MENTIONED, THAT YOU SETTLED LAWSUITS AND THEY WERE ABOUT STEALING TRADE SECRETS. THAT IS EVIDENCE.>>THE U.K. GOVERNMENT AND GERMAN GOVERNMENT PUSHED BACK ON THE PRESSURE FROM THE U.S. GOVERNMENT TO BLOCK HUAWEI FROM THEIR 5G NETWORKS BECAUSE THEY SAY THE U.S. GOVERNMENT HAS NOT GIVEN THEM ANY EVIDENCE OF SIGNIFICANT CYBER WRONGDOING AND THERE CAN BE RISK MITIGATION THAT CAN BE EFFECTIVE. THAT’S WHAT WE RECOMMEND FOR THE UNITED STATES, LIKE KNOW KIA AND ERICKSON WERE ALLOWED. MARIA: YOU SAY THERE WAS NO WRONGDOING, AND YET THE COMPANY SETTLED LAWSUITS FOR STEALING TRADE SECRETS. THAT’S NUMBER ONE. NUMBER TWO, RECENTLY, IN THE LAST SIX WEEKS YOU HAD AN EXECUTIVE AT VOTE PHONE WHO SAID THAT IN VODOPHONE ITALY, THEY DISCOVERED HIDDEN BACK DOORS IN HUAWEI EQUIPMENT THAT WOULD HAVE ALLOWED YOUR COMPANY TO ACCESS USERS’ HOME NETWORKS AND VODOPHONES ITALIAN FIXED LINE NETWORK. WE KNOW THIS HAPPENED FOUR WEEKS AGO, AN EXECUTIVE SAID VODOPHONE ITALY, THEY FOUND BACK DOORS, THEY HAD TO SAY WAIT, THERE ARE BACK DOORS HERE WHERE ALL OF THIS DATA GOES BACK TO CHINA AND THEN IT WAS RECTIFIED AFTER HE RAISED HIS HAND. YOU’RE THE SECURITY OFFICER. DID YOU KNOW ABOUT THE BACK DOORS IN THE VODOPHONE INFRASTRUCTURE?>>SUBSEQUENT TO THAT INITIAL REPORTINGS VODOPHONE, CONFIRMED THERE WERE NO BACK DOORS. LOOK AT CISCO, THE EIGHT OR 10 BACK DOORS THAT WERE DISCOVERED IN THEIR FLOODS THEREAFTER YEAR OR TWO AND FRANKLY, WHEN YOU LOOK AT WRONGDOING AND THE CISCO CASE WAS MORE THAN EIGHT YEARS AGO, I MAKE NO EXCUSE FOR ANY WRONGDOING WHETHER IT OCCURRED 1 WRONGDOING WHETHER IT OCCURRED 5 YEARS AGO OR YESTERDAY IT’S NOT RIGHT. WE SHOULD BE HELD ACCOUNTABLE FOR ANY KIND OF WRONGDOING SUCH AS THAT. MARIA: HOW DO WE KNOW THERE AREN’T BACK DOORS ELSEWHERE WHEN WE KNOW VODOPHONE TOLD US THEY DISCOVERED A BACK DOOR WITH THE DATA GOING BACK TO CHINA. YOU CAN’T SAY THERE WERE NO BACK DOORS.>>SUBSEQUENT TO THAT REPORT — MARIA: IT WASN’T A REPORT. IT WAS VODOPHONES EXECUTIVES SAYING WE FOUND BACK DOORS WHERE OUR DATA IS GOING TO CHINA. WE NEED THIS FIXED. THEN HUAWEI RECTIFIED IT. HOW DO YOU KNOW — HOW DO WE KNOW THAT THIS BACK DOOR DOESN’T EXIST IN ALL INFRASTRUCTURE OUT OF HUAWEI.>>TWO THINGS. SUBSEQUENTLY, VODOPHONE SAID THAT REPORT WAS INCORRECT, THERE WERE NO SUCH BACK DOORS. THE PRINCIPAL DEP TOY THE DIRECTOR OF NATIONAL TELL JENS SAID THEY CAN TEST PRODUCTS FOR BACK DOORS. THAT’S WHY NOKIA AND ERICKSON ARE ALLOWED TO DO BUSINESS IN THE UNITED STATES, DESPITE DEEP TIES TO CHINA. WE WANT TO TALK WITH THE U.S. GOVERNMENT ABOUT THOSE RISK MITIGATION MECHANISMS THAT MIGHT WORK TO A ALLOW US TO DO SOME BUSINESS IN THE UNITED STATES. MARIA: WHY WOULD YOU HAVE DONE ALL OF THESE SETTLEMENTS WITH ALL OF THESE COMPANIES IF THERE WERE NO ISSUES AROUND HUAWEI? YOU’RE TALKING ABOUT COUNTRIES THAT HAVE HAD HUAWEI EQUIPMENT IN PLACE FOR A LONG TIME, YOU MENTIONED GERMANY. IT’S SO EXPENSIVE TO DO AWAY WITH THAT AND START AGAIN, MAYBE THAT’S ONE OF THE ISSUES THAT THESE COUNTRIES ARE SAYING WELL, WE’LL STICK WITH IT RIGHT NOW. THERE’S ABSOLUTELY NO QUESTION ABOUT WHETHER OR NOT THERE WERE TRADE SECRETS STOLEN AND WHETHER OR NOT THERE ARE BACK DOORS. WE JUST HEARD THIS. YOU’RE SAYING EXACTLY THE OPPOSITE OF WHAT WE KNOW TOOK PLACE.>>OUR ALLIES UNDERSTAND THE KIND OF ISSUES THAT HAVE HAPPENED IN THE PAST REGARDING INTELLECTUAL PROPERTY THEFT AND WE ARE THE NUMBER ONE HOLDER OF PATENTS OF INFORMATION COMMUNICATION TECHNOLOGIES AND THE NUMBER ONE PATENT HOLDER FOR 5G. AT THE LEVEL OF NATIONAL SECURITY SIGNIFICANCE, THERE IS NO EVIDENCE PRESENTED BY THE UNITED STATES TO GERMANY OR THE U.K. OR OTHER ALLIES BECAUSE THERE IS NO EVIDENCE. YOU HEARD IN THOSE STATEMENTS YOU PLAYED FOR ME THAT THEY ARE CONCERNED. IT’S NOT ABOUT THE COUNTRY. IT’S ABOUT THE COMPANY. BUT THE FACT IS, THERE ARE PROVEN RISK MITIGATION MECHANISMS AS EVIDENCED BY NOKIA AND ERICKSON THAT CAN ADDRESS THE RISK. THE DNI HAVE SAID THEY CAN FIND THE BACK DOORS THROUGH TESTING. WE’RE OPEN TO THAT. MARIA: AS PART OF THE SETTLEMENT WITH MOTOROLA WE LEARNED FROM THE WALL STREET JOURNAL LAST WEEK, BIG STORY ON HUAWEI, A RELATIVE OF THE FOUNDER OF HUAWEI WORKED AT MOTOROLA AND THE CHAIRMAN’S RELATIVE BROUGHT SECRET DETAILS OF THE COMPANY’S TECHNOLOGY TO A MEETING IN BEIJING. ANOTHER SUIT ALLEGES COMPLICITY BY HUAWEI’S DEPUTY CHAIRMAN IN SECRET THEFT. YOU HAD A MEMBER OF THE FAMILY OF THE CHAIRMAN, MR. REN’S RELATIVE, WORKING AT MOAT RELATIVE, WORKING AT MOTT RELATIVE, WORKING AT MOTOROLA AND STEALING SECRETS ACCORDING TO THE WALL STREET JOURNAL AND YOU SAY?>>THE JURY IN THE T-MOBILE CASE — MARIA: THIS IS MOTOROLA.>>THERE HAVE BEEN INSTANCES IN THE PAST THAT I ACCEPTED THAT HAVE OCCURRED. I MAKE NO EXCUSE FOR THOSE. MARIA: YOU SAID THERE WERE NO INSTANCES THAT NEVER OCCURRED. NOW YOU SAY THERE HAVE BEEN INSTANCES THAT HAVE OCCURRED WHICH I ADMIT.>>MARIA, THAT’S NOT WHAT I SAID. I SAID THERE HAVE BEEN INSTANCES OF INTELLECTUAL PROPERTY ISSUES IN THE PAST. THE LEVELS OF WRONGDOING THAT HAVE NATIONAL SECURITY SIGNIFICANCE, THE U.S. HAS NO EVIDENCE AND THERE IS NO EVIDENCE IN THE COUNTRIES IN WHICH WE DO BUSINESS. THOSE ARE TWO DIFFERENT THINGS. MARIA: HOW DO YOU EXPLAIN AUSTRALIA BANNING HUAWEI? HOW DO YOU EXPLAIN THE U.S. BANNING? TAIWAN? HOW DO YOU EXPLAIN SO MANY COUNTRIES SEEING THE SAME THING THE U.S. HAS SEEN AND BANNING TELECOM EQUIPMENT FROM HUAWEI.>>IN THE DISCUSSIONS BETWEEN HUAWEI AND AUSTRALIA, ALL THE ISSUES AND CONCERNS WERE ADDRESSED AND POLITICAL PRESSURE WAS PUT IN PLACE TO GET THE AUSTRALIAN GOVERNMENT TO BLOCK HUAWEI. THE POLITICAL PRESSURE IS INTENSE. DESPITE THAT, MAJOR ALLIES ARE RESISTING IT. IT’S NOT JUST ABOUT MONEY. IT’S BECAUSE THEY’VE GOT NO EVIDENCE OF SIGNIFICANT CYBER WRONGDOING AND THEY BELIEVE THERE ARE EFFECTIVE RISK MITIGATION MECHANISMS. FOR THE SECURITY OF CYBERSPACE AND THE UNITED STATES WE NEED TO USE MECHANISMS FOR ALL NETWORK OPERATORS AND EQUIPMENT PROVIDERS. MARIA: DO YOU THINK IT’S SIGNIFICANT TO STEAL TRADE SECRETS?>>ABSOLUTELY. MARIA: YOU SAID THERE WERE NO SIGNIFICANT ISSUES AROUND ESPIONAGE AND INTELLECTUAL PROPERTY.>>WHAT I SAID WAS THAT AT THE LEVEL OF NATIONAL SECURITY SIGNIFICANCE THERE ARE NO ALLEGATIONS OF WRONGDOING. WHEN YOU LISTEN TO THE QUOTES YOU PLAYED, THEY’RE SUGGESTING THAT CHINA IN THE FUTURE MIGHT DO THIS KIND OF CONDUCT. THE FACT IS, WE CAN’T TURN OVER THE KINDS OF DATA THAT THEY’RE TALKING ABOUT IF WE DON’T HAVE ACCESS TO IT. THEY MISUNDERSTAND OUR ROLE IN THE NETWORKS. MARIA: WHEN YOU SAY YOU DON’T HAVE ACCESS TO IT, WHEN YOU HAVE A BACK DOOR, A BACK DOOR IS BASICALLY HARDWARE DESIGNED SO YOU CAN CONNECT THIRD PARTY CHINESE PARTIES TO THAT NETWORK SO THAT THAT NETWORK DATA CAN GO BACK TO THE CHINESE PARTIES. SO WHEN YOU SAY THAT YOU DON’T HAVE ACCESS TO IT, WHAT EXACTLY ARE YOU TALKING ABOUT?>>I’M MAKING TWO DIFFERENT POINTS. THE PRINCIPAL DEPUTY TO THE DIRECTOR OF NATIONAL INTELLIGENCE SAYS WE CAN TEST FOR BACK DOORS, LOOK FOR BACK DOORS UNDER STRICT CONDITIONS. STRICT OVERSIGHT LIKE IS DONE IN THE U.K. AND WHICH APPARENTLY, ALTHOUGH WE CAN’T SEE THE TERMS OF IT, NOKIA AND ERICKSON OPERATE UNDER THE UNITED STATES. BUT IN TERMS OF OUR SERVICING OF THE EQUIPMENT OF OUR CUSTOMERS, WE’RE POTENTIALLY ONE MIGHT GET ACCESS TO CUSTOMER DATA, THAT’S WHAT I’M SAYING. THERE ARE STRICT CONTROLS, VERY LIMITED ACCESS, EVERY KEY STROKE IS LOGGED SO THERE CAN BE ASSURANCE THAT WE DON’T HAVE ACCESS TO THAT DATA AND SO THEN WE CAN’T BE FORCED TO TURN IT OVER. MARIA: IF THE CHINESE GOVERNMENT SAYS TO YOU WE NEED TO SEE THIS DATA, YOU ARE BY LAW, CHINESE LAW, FORCED TO SEND WHATEVER DATA TO THE CHINESE GOVERNMENT. YOU HAVE COMMUNIST MEMBERS OF THE COMMUNIST PARTY ON YOUR BOARD. YOUR CHAIRMAN AND FOUNDER OF THE COMPANY IS A MEMBER OF THE COMMUNIST PARTY. YES?>>THE FACT IS, WE HAVE VERY LIMITED ACCESS TO CUSTOMER DATA, VERY LIMITED. EVERY KEY STROKE — MARIA: THE CHAIRMAN HAS DIRECT ACCESS, SO DOES THE BOARD MEMBER IF THEY’RE PART OF THE COMMUNIST PARTY.>>DOESN’T HAVE ACCESS TO THE DATA OUR EMPLOYEES IN THE UNITED STATES IN WORKING AND SUPPORTING OUR CUSTOMERS, THEY DON’T HAVE ACCESS TO THAT DATA. EVERY KEY STROKE IS LOGGED. IF ANY OF THAT DATA WAS ACCESSED, THEN THERE WOULD BE EVIDENCE A THAT IT WAS ACCESSED AND THERE WOULD BE EVIDENCE IT WAS SENT BACK. WE DON’T HAVE THAT DATA. MARIA: YOU KEEP SAYING YOU DON’T HAVE THE DATA BUT YOU HAVE TO COMPLY WITH CHINESE LAW. AND THE COMPANY HAS COMMUNIST MEMBERS ON THE BOARD AND THE FOUNDER IS A COMMUNIST MEMBER. SO THAT’S THE BOTTOM LINE. WHAT ACCESS — THE ACCESS IS THERE. AND IF THE CHINESE GOVERNMENT WANTS ANY DATA, WHICH IS WHY IT’S A NATIONAL SECURITY RISK, YOU DON’T HAVE TO PROVE THIS TO ME, ANDY. YOUR COMPANY HAS TO PROVE THIS TO THE WORLD.>>YOU ARE INCORRECT. WE DO NOT HAVE THE KIND OF ACCESS TO DATA THAT YOU THINK. SO YOU THINK THAT BECAUSE WE HAVE ACCESS TO THIS DATA — WE

What enforcement is needed for China to keep to a trade deal with US?


U.S.-CHINA TRADE TALKS, PRESIDENT TRUMP MEETING WITH CHINA’S VICE PREMIER AT THE WHITE HOUSE TODAY. THE VICE PREMIER MET WITH STEVEN MNUCHIN AND ROBERT LIGHTHIZER YESTERDAY. PRESIDENT TRUMP IS LIKELY TO ANNOUNCE A SUMMIT BETWEEN CHINESE PRESIDENT XI LATER TODAY, ACCORDING TO THE WALL STREET JOURNAL. JOINING ME RIGHT NOW IS INTERDIGITAL PRESIDENT AND CEO, BILL MERIT. IT’S GOOD TO HAVE YOU ON THE PROGRAM.>>THANKS FOR HAVING ME. MARIA: YOU’RE DOING A LOT OF BUSINESS IN CHINA.>>WE ARE. MARIA: LET’S TALK ABOUT THAT. HOW HAS THAT BEEN FOR YOU? HAS THE TRADE ISSUES GOTTEN IN THE WAY?>>I WOULD SAY THE TRADE ISSUES HAVE BEEN HELP FOLLOW FOR US. THE — HELPFUL FOR US. THE FOCUS OF THE PROTECTION OF INTELLECTUAL TECHNOLOGY, WE’VE BEEN TRYING TO LICENSE IN CHINA FOR YEARS AND WE’VE GIVEN THEM THE FACT, WE HAVE 95% OF THE NON-CHINESE MANUFACTURERS UNDER LICENSE, WE DON’T HAVE A SINGLE CHINESE MANUFACTURER UNDER LICENSE TODAY. THE FOCUS BY THE ADMINISTRATION ON FOCUS ON I.P., TO SHOW THEY’VE BEEN COMPLYING HAS BEEN GOOD FOR US. WE’RE CHEERING THEM ON IN WHAT THEY’RE DOING. MARIA: YOU’VE SEEN FIRSTHAND THE THEFT OF I.P. TELL US ABOUT THAT. I MEAN, HOW SIGNIFICANT IS IT? WHAT KIND OF A COST DO YOU SEE AS IT IMPACTS YOUR COMPANY 1234 AND DO YOU THINK YOU’RE GOING TO BE ABLE TO SEE I.P. THEFT GO AWAY OR IS THAT A CULTURAL THING IN CHINA?>>I DON’T THINK IT’S LONG-TERM CULTURAL. IT HAS BEEN. I THINK IT CAN CHANGE WITH ENFORCEMENT. IN TERMS OF THE IMPACT, IF YOU THINK ABOUT WHAT WE DO AND OTHERS IN OUR INDUSTRY DO, WE HAND OVER THE TECHNOLOGY TO THE INDUSTRY, TO BUILD PHONES. AND THE RETURN IS WE THEN GET LICENSED UNDER THE PATENTS THAT COVER THAT TECHNOLOGY. THE IMPACT HAS BEEN WITH THE CHINESE COMPANIES NOT PAYING ROYALTIES TO US, THEY HAVE EXTRA MONEY NOW TO INVEST IN RESEARCH, THAT WE DON’T HAVE. AND THE IMPACT HAS BEEN IN 5G. THEY HAVE GOT TONS OF MONEY TO INVEST IN 5G WHILE RESEARCH COMPANIES LIKE US DON’T HAVE THAT MONEY. IT’S CREATING IMBALANCE IN THE RESEARCH ENVIRONMENT FOR 5.>>AS YOU LOOK AT A HUAWEI OR ZTE PRODUCT, DO YOU SAY THAT LOOKS LIKE OUR STUFF IN THERE. HOW ARE THEY DOING IT WITHOUT LICENSING?>>SO, IT’S AN OPEN STANDARD IN THE A SENSE. WE CONTRIBUTE OUR TECHNOLOGY TO THE STANDARD MANY ANYBODY CAN GET IT. ANYBODY CAN BUILD A PHONE. ANY PHONE THAT’S BUILT, WE KNOW HAS OUR TECHNOLOGY IN IT. HOW DO THEY GET AWAY WITH NOT PAYING ROYALTIES? THEY SIMPLY JUST REFUSE TO PAY. THEY HOLD OUT. A COMPANY LIKE ZTE, WE’VE BEEN IN LITIGATION WITH ZTE FOR ALMOST –>>SO THEY OWE YOU. MARIA: YOU’RE STILL IN LITIGATION?>>YES.>>WITH HAVE THE I.P. THEFT, THAT’S ONE THING. IN CHINA, THERE’S NO REGULATIONS IN TERMS OF WORKPLACE, LABOR, MINIMUM WAGE. HOW CAN WE LEVEL THIS PLAYING FIELD AT ALL?>>YEAH, I THINK THERE’S A LOT OF ISSUES THAT GO INTO LEVELING THE PLAYING FIELD. SOME ARE WITHIN OUR ABILITY AND OTHERS ARE NOT. THINGS LIKE INTELLECTUAL PROPERTY, CERTAINLY THERE’S WAYS TO LEVEL IT OUT. THERE’S WAYS TO LEVEL ALL THESE THINGS. PRESIDENT TRUMP TWEETED A WHILE BACK ABOUT 60 AND TELLING AMERICANS, YOU HAVE TO COMPETE WITH OTHER PEOPLE. WE’RE NOT GOING TO KEEP PEOPLE OUT OF THE MARKET. WE AGREE WITH THAT. BUT COMPETE ON A LEVEL PLAYING FIELD. I THINK HE’S DOING A FANTASTIC JOB OTT JOB OFT JOB OF CREATING THE LEVEL PLAYING FIELD. MARIA: WHAT TYPE OF ENFORCEMENT ACTION IS POSSIBLE TO GET THE CHINESE TO KEEP THEIR PROMISE THEY WON’T STEAL I.P. WE LOOK AT HUAWEI STEALING TRADE SECRETS, CISCO, MOAT ROW MOTOROL SECRETS, CISCO, MOAT ROW MOTORO, T-MOBILE, ET CETERA, WHAT DO YOU THINK IT WILL TAKE FOR THEM TO KEEP THEIR 3R078 KEEP THEIR PR078 KEEP THEIR PRO78 KEEP THEIR PROMISES THAT THEY WON’T STEAL.>>THERE NEEDS THE BE A FIRM COMMITMENT AND THE BENCHMARKS WOULD BE CONCRETE ACTIVITY, SIGNING A CERTAIN NUMBER OF LICENSE AGREEMENTS, THINGS THAT COULD BE MEASURED. THE THIRD IS SOME LEVEL OF ENFORCEMENT BEYOND THAT, IF THOSE BENCHMARKS ARE NOT MET. I THINK THAT THEY WILL WORK TO CHANGE WHAT HAS BEEN A TYPICAL

Biggest wins for AI will be in health care: Former Google CEO


CASES THEM TO WORK HARDER. MARIA: I LIKE THE IDEA OF REALLY LOOKING AT THE PEOPLE BRINGING OUT AS MUCH AS YOU CAN FROM PEOPLE GIVING PEOPLE, THAT LEADERSHIP, AND THAT COMPOSUREMENT PEOPLE REPRESENT IDEAS AT GOING IS THERE A WAY YOU NEED TO HARNESS THAT STRENGTH, BUT NOT FOLLOW ALL THE DECISIONS OF THE PEOPLE BECAUSE A LOT OF PEOPLE QUESTION WHETHER OR NOT IT ITSELF TOO MUCH NOW THERE HAVE BEEN BIG DECISIONS, IN A MANAGEMENT HAS MADE AT GOOGLE BECAUSE THE PEOPLE WERE UPSET ABOUT WHETHER, PENTAGON CONTRACT OR WHETHER A.I., ETHICAL UNIT, IS IT TOO MUCH?>>IN THE GOOGLE CONTEXT ONE OF OUR VALUES IS THIS KIND OF INTERNAL CONVERSATION. WHERE BILL WOULD SAY I’M SORRY STICKING TO VALUES STAY VERY FOCUSED WHAT YOU WANT AS A BUSINESS THE REALITY IS TODAY, THESE MANAGEMENT JOBS ARE HARDER AND HARDER AND HARDER BECAUSE OF SOCIAL MEDIA AND SO FORTH YOU’VE GOT TO LISTEN, EVEN MORE CAREFULLY TO YOUR EMPLOYEES. BUT AT THE END OF THE DAY, THE OLD PLAYBOOK WHICH IS LEADERSHIP, COACHING, GETTING PEOPLE WHO ARE AVEN YOUNG AND RELATIVELY EXPERIENCED HUGE POTENTIAL TO ACHIEVE THEIR GREATNESS WHATEVER IT IS, THAT IS A UNIVERSAL HUMAN VALUE OUR ARGUMENT IN THE BOOK IS THAT THESE ARE APPLICABLE TODAY IN THE FUTURE THESE ARE UNIVERSAL VALUES OF MANAGEMENT ON LEADERSHIP.>>SOME POINT THE LEADERSHIP HAS TO SAY OKAY. I HEAR YOU, BUT WHAT DO I STAND FOR WHAT DO WE STAND FOR.>>THAT IS THE VALUES.>>IN BOOK YOU GO THROUGH MANY LESSONS BILL TAUGHT INCLUDING PEOPLE BILLED TRUST CREATING A WORKPLACE BASED ON LOVE, WHAT DOES THAT MEAN? GIVE ME A PRACTICAL IDEA BASED ON LOVE.>>YOU SHOW LOVE SHOW UP A MANAGER, COACH SHOW UP FOR YOUR PEOPLE, BREATHE CONFIDENCE INTO THEM, WHEN TIME GETS UP SHOW UP.>>ALSO MEANS CHEER. BILL WOULD CLAP LIKE THAT IN BOARD MEETINGS.>>IN THE MIDDLE OF THE MEETING NO GOOD REASON, MARIA I LOVE YOUR SHOW, [CLAPPING], FEELS GOOD.>>IN A MEETING, BY AUDIBLY CLAPPING LET YOU YOU KNOW WHAT A GREAT JOB YOU HAVE DONE.>>FANTASTIC.>>MOMENTUM TOWARDS THE DECISION.>>GETS EVERYBODY BUYING IN.>>HAVEN’T YOU SAID SAT IN MEETINGS AIRFARE KIND OF BORED OKAY. LET’S GET GOING IT IS THE SAME THING AS WINNING IN THE GAME.>>FUNNY HOW LITTLE THINGS MAKE A BIG DIFFERENCE LET ME ASK YOU ABOUT A.I. GOOGLE AMONG SENIOR COMPANIES OUT THERE WORKING ON ARTIFICIAL INTELLIGENCE WE HAVE BEEN LOOKING AT IT HERE AS WELL. IT IS EVERYWHERE IS IT JUST GOING TO GET BIGGER MORE PREVALENT.>>A LOT AHEAD GETTING EXERCISERS TO ABOUT SMARTER I THINK BIGGEST WINS IN HEALTH CARE I THINK THIS IS LARGELY UNDER REPORTED.>>YOU SAID A LONG TIME.>>I AM CONVINCED HERE IS WHY, AS MUCH AS WE THINK OF OURSELVES AS INDIVIDUALS BIOLOGICALLY WE ARE SIMILAR TO EACH OTHER COMPUTERS CAN WATCH WHAT HAPPENS NOW THE ALGORITHMS ARE SO GOOD WHEN YOU GO INTO A HOSPITAL IF WE KNOW ROUGHLY, YOU GIVE US YOUR PERMISSION ABOUT INFORMATION THIS IS THE HOSPITAL NOW NOT GOOGLE, THE HOSPITAL CAN SAY, HEY WE THINK THIS IS THE NEXT AILMENT THAT IS GOING TO HAPPEN, THAT IS HOW GOOD THE ALGORITHMS ARE GETTING THE WHOLE YEAR OF PRECISION MEDICINE THE ABILITY TO HAVE MEDICINE DIRECTED DIRECTLY AT YOU DIRECTLY REVOLTED TO ALGORITHMS, DIAGNOSTIC THE COMPUTER THE MAKE A RECOMMENDATION MORE ACCURATE THAN DOCTOR’S ICE.>>A LOT OF BABE DEBATE IN A LOT OF DEBATE IN TERMS OF EMPLOYMENT SOME JOBS WILL GO AWAY ARE YOU ON LARRY PAGE THEY ARE THEORY OF THINGS ORELONLON WHERE THIS COULD BE DESTRUCTIVE CAN YOU EXECUTE ARTIFICIAL INTELLIGENCE IN AN ETHICAL WAY NOT TO HARM TOO MANY PEOPLE.>>ABSOLUTELY IN ETHICAL WAY WHOLE INDUSTRY IS FOCUSED ON THAT I AM CONVINCED THERE IS HE GOING TO BE A HUGE JOB SHORTAGE BY THAT I MEAN, NOT ENOUGH PEOPLE TO FILL THE JOBS THAT ARE OPEN BECAUSE OF THIS. AND THE REASON IS, THAT THE A.I. SYSTEMS WILL MAKE THINGS SO MUCH MORE EFFICIENT SUCH ECONOMIC GROWTH WE LITERALLY ARE GOING TO NEED MORE PEOPLE MORE EDUCATION, TO FILL THESE JOBS, THERE IS NO QUESTION THAT DESTRUCTIVE THAT DISTRUCTIVE THAT DISRUUCTIVE THAT DISRUPTTIVE THAT DISRUPTIVVE THAT DISRUPTIVE.>>SOMEBODY SAID WHEN WE LEARNED NUCLEAR TECHNOLOGY WE DID NOT GIVE NEVER BEEN NUKE NUCLEAR BOMBS THIS IS NOT NUCLEAR THIS IS CAPABLE OF MAKING EVERYTHING WE DO MORE EFFICIENT, CLEARER, BETTER GRIMZ MORE PRODUCTIVE IN THE SAME WAY THE PERSONAL CPR DID THIS IS TAKEN OVER OUR WE’LL INDUSTRY IN TERMS OF MACHINE LEARNING, BETTER BUSINESS ALGORITHMS IF YOU ARE RUNNING A BUSINESS NOT USING A.I. MACHINE LEARNING YOU ARE COMPETITOR CAN BEAT YOU –>>I AGREE WITH THAT THAT IS WHERE WE ARE SEEING IT IN EVERY SINGLE INDUSTRY FASCINATING ABOUT DATA RIGHT DATA, INSERTED INTO THE COMPUTER MAKING THE COMPUTER SMARTER.>>TODAY, THE SYSTEMS ARE COMPLETELY DEPENDENT UPON LARGE SOURCES OF DATA SO COMPANIES THAT HAVE MOST DATA WHETHER IN MAPS BUSINESS OR WHAT HAVE YOU TYPICALLY ARE WINNING. IN THE FUTURE WE THINK ACTUALLY POSSIBLE FOR KRRZ TO GENERATE THEIR OWN TRAINING DATA SO THERE IS A HUGE NEW FIELD COMING OUT, WILL MAKE THAT EVEN MORE EFFICIENTLY.>>BILL CAMPBELL WOULD SAY?>>THAT’S TERRIFIC AS YOU CHEER] CLAPPING].>>THANK YOU FOR WONDERFUL

Carlos Ghosn case raising concerns over the Japanese legal system


ALL HE WANTS IS A FAIR TRIAL. DAGEN: WHERE IS THE GLOBAL OUTRAGE ABOUT THIS, ABOUT ANY CEO, WHETHER IT’S ONE IN THE UNITED STATES OR IN ANY OTHER NATION THAT DOES BUSINESS IN JAPAN BEING OUTRAGED. THE BACKS OF THEIR HEADS SHOULD BE BLOWING OFF IN RAGE, QUITE FRANKLY. WHAT DOES THIS SAY ABOUT THE ABUSE OF PEOPLE, OF THE NON-JAPANESE, AND I POINTED OUT, THIS IS A CULTURAL PROBLEM, NOT JUST THE JUDICIARY SYSTEM. CARLOS GONE AND CARLOS GHOE AND CARLOS GHOSNAND CARLOS GHOSN AD CARLOS GHOSN AND HIS FAMILY ARE TARGETS BECAUSE THEY’RE NON-JAPANESE. HOW IS IT POSSIBLE IN A DEVELOPED NATION THAT YOU HAVE A PROSECUTOR WHO FOLLOWS THE WIFE OF SOMEONE UNDER ARREST INTO A BATHROOM, DOES A BODY SEARCH OF THAT INDIVIDUAL AND STANDS IN THE BATHROOM WHEN THE WIFE SHOWERS. THIS IS ALMOST BEYOND COMPREHENSION. MARIA: IT’S BAR BAR MARIA: IT’S BARBBAR MARIA: IT’S BARB AR MARIA: IT’S BARB A ARIC. INSIDERS TOLD ME THERE’S A FIGHT GOING ON BETWEEN THE PRIME MINISTER’S OFFICE AND THE PROS CUE’S PRE’S PROSS PROSECUTOR’S OFFICE. THE PRIME MINISTER’S OFFICE IS SAYING WHY WOULD WE RE-ARREST HIM. THE PROSECUTOR’S OFFICE SAYS THIS IS MY SITUATION, I WANT CARLOS GHOSN TO ADMIT THIS AND THEY WENT FORWARD. THERE IS BACK AND FORTH BETWEEN THE PRIME MINISTER’S OFFICE AND THE PROSECUTOR’S OFFICE. THEY HAVE DIFFERENT TAKES ON HOW TO PROCEED. I THINK IT’S BECAUSE OF WHAT YOU MENTIONED, THE GLOBAL REACTION TO THIS. WHERE ARE THE GLOBAL INVESTORS, WHERE ARE THE GLOBAL CEOS TO SAY THIS IS WRONG, STOP THIS TREATMENT OF CARLOS GHOSN, PARTICULARLY SINCE OVER THE YEARS HE’S BEEN HAILED AS A SUPERMAN FOR RESCUING NISSAN. HE WAS A COMIC BOOK CHARACTER. THEY’VE WRITTEN BOOKS ABOUT HIM AND STORIES ABOUT HIM, ABOUT WHAT A STRONG LEADERSHIP POSITION HE HAS TAKEN IN THE COMPANY.>>WE’LL SEE. I MEAN, EVENTUALLY THIS WILL GET TRIED. THERE WILL BE PUBLIC DISCLOSURE, A LOT OF WHICH THERE HASN’T BEEN TO THIS POINT. WE’LL SEE IF THEY CAN MAKE A CASE. BUT I THINK IN THE MEANTIME, TO KIND OF REASSURE PEOPLE, ESPECIALLY PEOPLE LOOKING TO DO BUSINESS IN JAPAN, PROSECUTORS MIGHT START BY EXPLAINING WHAT THEY’RE DOING. I THINK TO SOMEONE LOOKING AT IT FROM AFAR, YOU DON’T UNDERSTAND THE POSSIBLE REASON FOR THIS SHOWER EPISODE. I MEAN, WHAT IS THE JUST AT JUSTIFICATION AND WHAT IS THE REASON, WHAT IS THE THEORY THAT REQUIRES THIS KIND OF INTRUSION INTO, AGAIN, A RELATIVE OF THE ACCUSED, NOT THE ACCUSED. DAGEN: I’M GUESSING. I’M GUESSING. THEY’RE TRYING TO PUT MORE PRESSURE ON HIM TO CUT A DEAL, 99% CONVICTION RATE. NUMBER ONE. NUMBER TWO, THEY’RE TRYING TO MAKE SURE THAT HIS STORY DOESN’T GET OUT TO THE WORLD MEDIA. MARIA: THAT’S RIGHT. DAGEN: THEY’RE TAKING PHONES AWAY. THEY’RE PUTTING — THEY’RE INTIMIDATING HIS WIFE. THEY’RE TRYING TO MAKE SURE THAT THE REST OF THE WORLD DOESN’T FIND OUT WHAT IS GOING ON WITHIN THE JAPANESE JUDICIAL SYSTEM. MARIA: WHICH IS WHY THEY STARTED — RUMORS WERE CIRCULATING THAT HE WOULD BE RE-ARRESTED YESTERDAY BEFORE THEY SHOWED UP AT THE HOUSE BECAUSE HE WAS TALKING ABOUT GIVING A PRESS CONFERENCE ON APRIL 11th. I’M SURE BECAUSE I WAS COMMUNICATING WITH THEM THROUGH THE WIFE’S PHONE, THEY PROBABLY HAD HER PHONE TAPPED. IT’S TOO COINCIDENTAL THEY SHOW UP RIGHT BEFORE WE WERE TO GO ON HOUR. DAGEN: WHY WAS HE RE-ARRESTED AT THAT MOMENT. THAT’S THE WHY NOW. MARIA: WE WANT ANSWERS FROM THE PROSECUTOR’S OFFICE AND WE WANT TO UNDERSTAND WHY A FEMALE PROSECUTOR HAD TO STAY IN THE SHOWER WHEN CAROL GHOSN WAS TAKING A SHOWER AND BE IN THE BATHROOM WHEN SHE WAS IN THE

Oracle CEO: AI is integrated into our autonomous database


SLOWING IN THE U.S. AND WE ARE RIGHT ON THE DOORSTEP OF EARNINGS. I SPOKE WITH ORACLE’S CEO, MARK HURD EARLIER, I SAT DOWN WITH HIM YESTERDAY TO DISCUSS THE U.S. AND EUROPEAN ECONOMIES, WHY ORACLE IS BUYING BACK SO MUCH STOCK AND WHERE HE SEES GROWTH NOW BECAUSE WE ARE ON THE DOORSTEP OF EARNINGS. I’M WANTED TO GET A SENSE FROM HIM ABOUT THE INTERNATIONAL SLOWDOWN THAT WE’RE TALKING ABOUT. BUT WE BEGAN WITH NET SUITE, ORACLE’S INVESTMENT IN THE APPLICATIONS MARKET AS WELL. TELL US WHAT YOU’RE GETTING FROM YOUR CUSTOMERS THIS WEEK THERE IN LAS VEGAS AND ABOUT NET SUITE.>>SURE. THANKS, MARIA. YOU’RE RIGHT, WE’VE INVESTED A LOT IN THE APPLICATIONS MARKET. WE’VE INVESTED IN BIG AND SMALL SEGMENTS OF THE MARKET, BIG CUSTOMERS AND SMALL CUSTOMERS. WE ACQUIRED NET SUITE, GOSH, I DON’T KNOW, PROBABLY TWO AND-A-HALF YEARS AGO NOW AND IT’S REALLY BEEN AN AMAZING SUCCESS, TO YOUR POINT. THERE’S, I DON’T KNOW, LESS THAN 10,000 BUT ROUGHLY THAT NUMBER OF CUSTOMERS HERE FOR OUR EVENT. IT IS VERY EXCITING. WHEN WE BOUGHT NET SUITE, MARIA, THE COMPANY WAS GROWING ABOUT 15, 16% IN REVENUE. WE’VE INVESTED A LOT IN R&D. WE’VE INVESTED A LOT IN TAILORS THE TAE TAILORING THE APPLICATION FOR MORE INDUSTRIES. WE’VE ADDED SALESPEOPLE AND IT’S RESULTED IN JUST INCREDIBLE GROWTH. STARTING REALLY ABOUT A YEAR AGO. SO ABOUT A YEAR INTO THE ACQUISITION WE BEGAN TO REALLY GROW OUR BOOKINGS AND THAT’S TRANSLATED TO REVENUE. SO LAST QUARTER WE REPORTED REVENUE THAT WAS ALMOST DOUBLE THE REVENUE GROWTH WE HAD COMING INTO THE ACQUISITION. MARIA: YOU’RE SEEING IT IN THE NUMBERS. THE APPLICATIONS BUSINESS IS SOARING RIGHT NOW AT ORACLE, AS YOUR CUSTOMERS MOVE FROM ON-PREMISE TO CLOUD. TAKE US BEHIND THE CURTAIN THERE. WHAT KIND OF COMPANIES ARE MOVING FROM ON-PREMISE TO CLOUD? HOW DO YOU CONTINUE GETTING THEM TO SWITCH OVER INTO THE ORACLE CLOUD? AND HOW SIGNIFICANT IS THIS IN TERMS OF THE APPLICATIONS BUSINESS AT ORACLE?>>THERE’S A COUPLE HE’LL THINGS>>THERE’S A COUPLE HE’LL THINGG>>THERE’S A COUPLE HE’LL THINGI>>THERE’S A COUPLE HE’LL THINGG ON. THE A APPLICATIONS MARKET IS $25 BILLION, SPENT PRIMARILY ON APPLICATIONS. MOST OF IT TODAY IS SPENT ON ON ON-PREMISE APPLICATIONS. THE MARKET CHANGES SIGNIFICANTLY AS IT MOVES TO CLOUD. AS IT MOVES TO CLOUD, THE SUBSCRIPTION YOU PAY FOR THE CLOUD INCLUDES NOT ONLY THE APPLICATION BUT INCLUDES ALL THE HARDWARE, IF YOU WILL, THE SERVERS, THE STORAGE AND SO IT BECOMES A BIGGER MARKET JUST BY THE VERY NATURE OF THE MIGRATION OF THE APPLICATION TO SAAS. INSIDE THE INSIDE THAT, $75 BILLION IS BACK OFFICE, THAT WOULD BE DESCRIBED AS THINGS LIKE GENERAL LEDGER ACCOUNTING, SUPPLY CHAIN AND PROCUREMENT AND H.R. AND THE OTHER 2 A 5 OTHER 25A 5 OTHER 25 T5 OTHER 25 TO 30% IS FRONT OFFICE, SALES AND MARKETING AUTOMATION. NET SUITE IS IN THE MID-MARKET, SMALLER CUSTOMER SIZE OF THE BACK OFFICE MARKET AND IT’S HAD EXPLOSIVE GROWTH. WHEN YOU ASK WHO IS MOVING, IT’S EVERYBODY FROM THE BIGGEST GUYS, WHETHER THOSE BE AS BIG AS AN AT&T, ON AN EXTREME, I COULD GO THROUGH MANY OTHERS, TO YOUR SMALLEST STARTUP. MARIA: ARE YOU TRYING TO GET THIS APPLICATIONS OF COMPANIES TO MOVE JUST TO THE ORACLE CLOUD OR ARE YOU TRYING TO GET ALL APPLICATIONS TO MOVE TO THE CLOUD OR ARE YOU JUST LOOKING AT THE ORACLE PORTIONS OF THE BUSINESS? HOW DO YOU GROW THIS EVEN MORE IS REALLY THE BOTTOM LINE?>>SO IF YOU LOOK TODAY, HALF OF THE CLOUD APPLICATION CUSTOMERS WE HAVE WERE ROUGHLY OR HALF OF OUR REVENUE, THAT’S A BETTER WAY

Carlos Ghosn rearrested moments before Maria Bartiromo interview


TALKS AS AUTHORITIES IN JAPAN RE-ARREST CARLOS GHOSN EARLY THIS MORNING IN TOKYO. GHOSN IS FACING NEW CHARGES OF FINANCIAL MISCONDUCT. HE DENIES ANY WRONGDOING. I SPOKE WITH GHOSN THIS WEEK. HE SAID IN A STATEMENT LAST NIGHT, MY ARREST THIS MORNING IS OUTRAGEOUS AND ARBITRARY. IT’S PART OF ANOTHER ATTEMPT BY SOME INDIVIDUALS AT NISSAN TO SILENCE ME BY MISLEADING THE PROSECUTORS. I WILL NOT BE BROKEN. I AM INNOCENT OF THE GROUNDLESS CHARGES AND ACCUSATIONS AGAINST ME. JOINING THE CONVERSATION THIS MORNING IS DAGEN McDOWELL, THE WALL STREET JOURNAL ASSISTANT EDITORIAL PAGE EDITOR, JAMES FREE MAN AND ERIN HE’LL FREE MAN AND ERIN EE’LL FREE MAN AND ERIN ELMLL FREE MAN AND ERIN ELMORE. WE SCHEDULED THIS INTERVIEW WITH CARLOS GHOSN AT 5:30 P.M. LAST NIGHT. I CAME BACK TO WORK,ISM SITTING THERE, GETTING READY FOR THE INTERVIEW. I’M TEXTING WITH HIS LAWYER, HIS LAWYER SAYS OKAY, HE’S GOING TO BE CALLING IN MOMENTARILY. NOW IT’S 10 UNTIL 6:00. WE’RE WAITING FOR CARLOS TO CALL IN TO DISCUSS THE INTERVIEW. I HAD ALREADY SPOKEN WITH CARLOS GHOSN OVER THE WEEKEND ON SATURDAY AND HE DISCUSSED THE CHARGES, TOLD ME EVERYTHING THAT YOU’VE HEARD HERE FIRST FOR THE LAST 100 DAYS, THAT THIS WAS A COUP, HE’S DENYING ALL OF THE CHARGES AND SAYING THAT HE IS INNOCENT. ALL OF A SUDDEN, I GET THIS TEXT FROM THE LAWYERS, 10 AGENTS JUST SHOWED UP, THEY TOOK HIM INTO A ROOM, THEY’RE IN THE ROOM ALONE WITH CAROL, HIS WIFE, CAROL AND CARLOS GHOAN THE CARLOS GHOSN THE CARLOS GHOSN IHE CARLOS GHOSN INE CARLOS GHOSN IN THE ROOM WITH PROSECUTORS, TALKING FOR A FEW MINUTES AND THEN WE SEE THEM TAKE CARLOS IN THE CAR AND DRIVE AWAY. THEY TOOK HIM TO THE PROSECUTOR’S OFFICE AND THEY INTEAR GREATED INTERR GREATED INTERROGREATED INTERROGATATED INTERROGATEDED INTERROGATED HIM. WE WERE UNCLEAR IF HE WAS GOING BACK IN DETENTION OR IF THEY WOULD QUESTION HIM. AGENTS STARTED INTERROGATING HIS WIFE, CAROL GHOSN. PART OF THE REASON IS BECAUSE AS YOU REMEMBER, HE PUT OUT THAT TWEET A WEEK AGO, SAYING I’M GOING TO — IT’S TIME FOR ME TO TELL THE TRUTH, TO TELL EVERYONE WHAT’S GOING ON, THAT HE WANTED TO GIVE A PRESS CONFERENCE, HE WAS EXPECTING TO GIVE A PRESENCE CONFERENCE ON APRIL 11th. THEY DID NOT LIKE THE FACT THAT HE WAS GOING TO DISCUSS PUBLICLY, I BELIEVE, HIS PHONES OBVIOUSLY ARE TAPPED, THE PHONE IS A PHONE FROM HIS LAWYER AND I BELIEVE THEY ARE PROBABLY TAPPING CAROL GHOSN’S PHONE AS WELL. BECAUSE THEY PROBABLY KNEW THAT HE WAS ABOUT TO TALK TO THE MEDIA. HE WAS GOING TO DO THIS INTERVIEW WITH ME. AND SO THEY WENT RIGHT WHEN WE WERE GOING TO DO THE INTERVIEW, AT 10 UNTIL 6:00 IN THE MORNING. THEN THEY WENT BACK, THEY INTIER INTERROGATED CAROL GHOSN. SHE WANTED TO GO TO THE BATHROOM. THEY WENT IN THE BATHROOM WITH HER. SHE WANTED TO TAKE A SHOWER, A FEMALE PROSECUTOR STAYED IN THE BATHROOM N. THE SHOWER, WHILE SHE WAS IN THE SHOWER, TAKING A SHOWER. THEY WANT TO BREAK HIM. THE JUDICIAL SYSTEM IN JAPAN IS SUCH THAT THEY WANT A CONFESSION ON ALL OF THESE CHARGES, SOMETHING THAT HE IS REFUSING TO GIVE. THIS IS AN EXTRAORDINARY SITUATION, IT’S GETTING WORSE. HE IS ONCE AGAIN BEHIND BARS. HE COULD BE THERE ANOTHER — HE COULD BE THERE 10 DAYS AND THEY COULD ADD ANOTHER 10 DAYS TO IT, MEANING HE WILL BE THERE ANOTHER 20 DAYS BEFORE HE CAN APPLY FOR BAIL TO COME OUT BEFORE A TRIAL. ALL CARLOS GHOSN IS ASKING FOR IS A FAIR TRIAL. IT DOESN’T LOOK LIKE HE’S GOING TO GET ONE.>>IN JAPAN THERE’S A 99% CONVICTION RATE. THE ODDS ARE REALLY STACKED AGAINST HIM HERE. HE’S ALSO ASKING THAT THE OTHER DEFENDANTS, HIS COLLEAGUE, GREG KELLY AND NISSAN WILL BE IN A SEPARATE TRIAL SO HE WILL GET A MORE FAIR TRIAL. WHAT I HEARD FROM JAPANESE LEGAL EXPERTS IS THAT ONCE YOU’VE BEEN RELEASED ON BAIL ONCE, YOU’RE NOT LIKE THROW BE ARRESTED ONCE, TWICE OR THREE TIMES WHICH HAPPENED TO HIM HERE. THE ODDS ARE STACKED AGAINST HIM. IT DOESN’T LOOK GOOD FOR HIM. MARIA: HE WASN’T GOING ANYWHERE. HE WAS NOT A FLIGHT RISK. HE WAS IN AN APARTMENT THAT WAS APPROVED BY THE JAPANESE GOVERNMENT. HE WASN’T VIOLATING ANY PAROLE BUT THEY WENT AND THEY TOOK HIM. THIS NEW CHARGE THEY’RE TRYING TO MAKE IS THAT HE SENT MONEY TO A COMPANY IN OWE A COMPANY IN OMAN JORDAN AND THEN THEY PAID HIM TO BUY A YACHT, TO SPEND MONEY ON PERSONAL ITEMS. THAT CANNOT BE PROVEN. MONEY IS FUNCTION MONEY IS FUNGIION MONEY IS FUNGIBLN MONEY IS FUNGIBLE. THERE’S NO WAY TO SAY THE MONEY PAID TO THIS DEALER IN OMAN WAS THE MONEY HE USED TO BUY THIS YACHT. IT’S A HARD CASE TO MAKE. HIS TEAM BELIEVES THAT ONE OF THE REASONS THAT THEY WENT BACK TO ARREST HIM OVERNIGHT IS BECAUSE THEIR CASE IS FALLING APART. NOW, CARLOS GHOSN TOLD ME ON THE PHONE OVER THE WEEKEND, THE REASON THAT THIS ALL HAPPENED, THIS COUP HAPPENED UNDERNEATH HIM IS BECAUSE THE COMPANY WAS NOT DOING WELL. THE COMPANY WAS COLLAPSING. HIS UNDERLINGS THOUGHT THEY WOULD BE FIRED AND THAT HE WAS GOING TO MERGE THE COMPANY WITH RENAULT. HE TOLD ME HE WASN’T PLANNING ON MERGING THE COMPANY WITH RENAULT. HOWEVER, HE WAS PLANNING A LOT MORE CONSOLIDATION AND HE WAS IN FACT HAVING TO FIRE PEOPLE. HE HAD TO CONSOLIDATE BECAUSE THE COMPANY, IF YOU LOOK AT THE STOCK CHART, IF YOU LOOK AT THE LOSSES, IF YOU LOOK AT THE DECLINE IN REVENUE, THE COMPANY WAS NOT DOING WELL. I DON’T KNOW HOW NISSAN DOES ANY BETTER. I MEAN, I’M SURE THERE WILL BE ACTIVISTS THAT WANT TO BOYCOTT NISSAN, BOYCOTT JAPAN. FOR A FOREIGNER OPERATEING IN JAPAN, WHAT DOES THIS LOOK LIKE TO YOU, JAMES? THIS IS EXTRAORDINARY.>>YOU HAD A SITUATION WHERE THE JAPANESE MANAGERS AT THE COMPANY DID NOT WANT HIM IN CHARGE, DID NOT WANT TO BE RUN BY A EUROPEAN COMPANY. SO I THINK THAT’S ONE OF THE BIG QUESTIONS ABOUT THIS CASE. ALONG WITH OBVIOUSLY A LOT OF PEOPLE AS THEY GOT TO KNOW THE JAPANESE LEGAL SYSTEM OVER THE LAST SEVERAL MONTHS, SEEING HOW LONG SOMEONE CAN BE DETAINED WITHOUT ACCESS TO A LAWYER, PRETTY SHOCKING. BUT ALSO THIS QUESTION OF WHY NOW, WHY — HE’S BEEN RUNNING THE ORGANIZATION FOR YEARS AND THEN ALL OF A SUDDEN WHEN THEY SEE THIS POTENTIAL CONSOLIDATION OF POWER IN EUROPE, NOT IN JAPAN, THE JAPANESE EXECUTIVES COME UP WITH THESE CHARGES AGAINST HIM. VERY SUS. MARIA: THEY’RE COMING UP WITH REASONS TO QUESTION CAROL GHOSN. THEY TOOK HER PASSPORT. THEY TOOK HER PHONE. SHE NO LONGER HAS THE PHONE. HE NO LONGER HAS A PHONE. THEY SAID SOURCES CLOSE TO CAROL SAID THAT THEY WANTED HER TO VOLUNTARILY ANSWER QUESTIONS. WHEN I WANTED TO USE THE BATHROOM, THE OFFICER ENTERED THE BATHROOM WITH ME AND DID A BODY CHECK. WHEN I WANTED TO TAKE A SHOWER, A FEMALE PROSECUTOR STAYED IN THE SHOWER WITH HER WHILE SHE SHOURD. THEY WANTED TO HUMILIATE AND INTIMIDATE HER AND THEY WANT TO INTIMIDATE CARLOS GHOSN INTO CONFESSING. THIS WHAT IS THIS IS ALL ABOUT. LET’S BREAK HIM SO THAT HE ADMITS TO ALL OF THIS, THEN HE