Boris Johnson picks Huawei over Trump’s way

Follow Us This is Bloomberg Opinion Today, a toad-in-the-hole of Bloomberg Opinion's opinions. Sign up here. Today's Agenda Boris Johnson chose protecting his economy over pleasing Trump. Trump's Mideast peace plan mainly benefits Israel and maybe himself. Airbus is trouncing Boeing these days. China's economy has changed a lot since SARS. Dialing up controversy. Photographer: JUSTIN TALLIS/AFP/Getty Images Huawei or the Highway Boris Johnson has led a pretty charmed political life, stumbling to Brexit victories and dream jobs almost on shaggy charisma alone. But that charm will be increasingly tested by the job of leading the U.K. out of the European Union. The British prime minister today announced he would let China's Huawei Technologies Co. help build the U.K.'s 5G mobile scaffolding. The decision risked making many parties angry. President Donald Trump, his ally, potential trading partner and seeming soulmate, wanted him to ban Huawei altogether, calling it a national-security risk. But pleasing Trump would have irked Beijing, risking trade with another partner just as Johnson is trying to double economic growth. It also would have punished U.K. telecom providers by forcing them to look for pricier alternatives, notes Alex Webb. So Johnson tried to split the 5G baby, letting Huawei in, but keeping it away from the network's most sensitive bits. This may not be enough to mollify Trump, who could yet decide to withhold some intelligence from the U.K., writes Eli Lake. That would fundamentally change the "special relationship" the two countries have long supposedly had. But Johnson's apparently willing to pay that price in order not to risk the U.K.'s already fragile economic growth, writes Therese Raphael. The trouble for Johnson is that Trump can also make trouble for the U.K., of economic and other varieties, if he wants. Turns out you can't charm all the people all the time. Bonus Brexit Reading: EU and U.K. financiers would each gain from some alone time, but still need cooperation, which starts with regulatory harmony. — Lionel Laurent Peace Sells, But Who's Buying? Middle East Edition Trump and Israeli Prime Minister Benjamin Netanyahu both took breaks from fighting for their political lives to announce a new peace plan for the Middle East. It was slightly more generous to Palestinians than had been expected, including a two-state solution some had thought dead. But the plan is clearly a victory for Israel, affirming its long-controversial rule over parts of the West Bank, Jordan Valley and Jerusalem, writes Zev Chafets. Palestinians have already rejected it, but they may eventually realize it's the best deal they're ever going to get, Zev suggests. (Eli Lake argues the world's anger over Israel's occupation is hypocritical anyway.) Hussein Ibish is far less optimistic about the plan's chances, likening it to South African apartheid, with a proposed Palestinian state that "isn't a state at all, but the box that a state might have arrived in." Hussein argues Trump has trashed decades of negotiations simply to help himself and Netanyahu politically. The Israeli prime minister was plainly pleased to be involved in the big unveiling today, but this may not help him cling to power in March elections, writes Daniel Gordis. It is much likelier to help Trump in his own re-election bid by winning him more Jewish votes, Daniel suggests. What it may never do is make him an actual peacemaker. Boeing vs. Airbus Is No Contest The business of making the world's big airplanes is basically divided between two companies, Airbus and Boeing Co. This duopoly is sometimes in balance, but more often one company lords it over the other. Right now it's definitely Airbus's time to shine, Chris Bryant writes. The company is close to settling bribery charges, ending a worry that has hurt its stock price. Boeing, meanwhile, probably wishes bribery charges were its biggest problem. It's dealing with the crisis of the 737 Max grounding and its own clumsy handling of the same, which has been devastating for business. Chris suggests Airbus can kick Boeing while it's down by giving more cash back to shareholders. Boeing is due to report earnings tomorrow, as is General Electric Co. The timing is fitting, writes Brooke Sutherland: Both companies have been laid low by their own hubris, products of the Jack Welch School of Sacrifice All for the Stock Price. We'll get more clues tomorrow as to how far along each is in its recovery. Coronavirus: Looking on the Economic Bright Side The Wuhan coronavirus continues to spread, and U.S. officials suggested Americans maybe put off that China vacation for a bit. Markets bounced right back from yesterday's swoon, though, suggesting worries about the economic impact will be fleeting. John Authers suggests the market might have more than just the virus to fear. It's certainly true China's economy looks very different today than it did during the 2003 SARS outbreak, Tim Culpan writes. Now people can just sit at home and order stuff on their phones, keeping some commerce going. Those changes can cut both ways, though. Still, stimulus can also limit some of the short-term damage, writes David Fickling, one reason commodity markets don't need to panic. Telltale Charts 3M Co.'s latest results show no sign of the "phase one" trade deal with China sparking an industrial renaissance, writes Brooke Sutherland. Its surgical masks are selling well, though — which, yay? Tesla Inc. keeps rising in value even as analysts doubt it, writes Matthew Winkler. Further Reading The Iowa caucuses are less than a week away, and it's still anybody's race. — Jonathan Bernstein The Fed might want a quiet 2020, but seemingly minor technical decisions could rock the market. — Brian Chappatta New research confirms: Dangling big payouts to companies never works. — Noah Smith ICYMI Trump's impeachment lawyer suggested everybody forget about John Bolton. Harvard's chemistry department chair was accused of lying about China ties. A magnitude 7.7 earthquake struck south of Cuba, leading to evacuations in Miami. Kickers The Ring doorbell app is packed with third-party trackers. The Pacific Ocean is so acidic it's dissolving some crab shells. Why your middle-school friends have such outsize importance. Alien civilizations might look a lot like ours. Note: Please send crabs and complaints to Mark Gongloff at mgongloff1@bloomberg.net. 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