>> this is bloomberg technology with caroline hyde and ed ludlow. ♪ [captioning made possible by the u.s. department of education and bloomberg television] caroline: live from new york, i'm caroline hyde. jackie: i'm jackie. caroline: tariffs in mexico and canada. and tech earnings coming up.

and palantir kicking it off. and musk looks to cancel payments to federal contractors. first, the story of the day, we move markets in the back of tariffs. there's talks coming those tariffs are delayed for a month coming from the president of mexico. we're nowhere near the sell-off this time last week in reverberations to deepseek but down nonetheless. look what happened in the world of crypto. over the weekend it was your liquid asset of choice and fell hard sunday and up 3% the last three trading days but come back off take's lows. let's look at individual movers, bringing you the biggest point drivers to the downside. says la up by more than 4% and think of the repercussions to car sales and we think of the semiconductors and the overall concerns around global tariffs. let's get to it with katie lines who joins us for more and still

don't come in for a month but shock waves of 25% to mexico and canada. katie: the u.s. president has confirmed they will strafes delayed a month after speaking with claudia. this has been delayed as mexico sends troops to help stop the flow of fentanyl and migrants and is the root of the issue that he's using tariffs to extract tariffs from and seemed he got those. the one month period where an extension will be in place, mexican officials will negotiate with officials and secretary of state marco rubio, treasury secretary scott bessent and howard includedman, soon to be confirmed, will lead the negotiations. as for the other two countries tariffs are set to go into effect, no idea if canada can

afford those and of course 10% from imports coming from china. president trump spoke with justin trudeau once today and is scheduled to do so at 3:00 p.m. eastern time and we'll see if they, too, can reach an agreement to stave these off for a period of time. if not, the trace will go in effect at midnight and canada will place retaliatory tariffs on $30 billion of canadian goods. and the premiere of province canceled a contract with star link scheduled to go into effect and has been put on pause and the provencial government said no u.s. companies will get contracts so long as the tariffs are in place and the question is will they go in place hours from now. jackie: what else do we know about the reaction of the business community on the back of these mexico and canada tariffs escalations?

kailey: they've had a bit of a reaction from mostly by and large companies are hesitant to embrace tariffs like the chamber of commerce and other business leaders who warned about inflationary impacts and obviously this administration pushed back on the notion these would be inflationary and if anything would bring a one time price increase rather than a sustained period of inflation. you're seeing some reaction here in washington, the questions raised around the legality of this, the powers donald trump is using to enact the levees are the 1977 emergency economic powers act and is traditionally applied when it comes to sanctions and not import tariffs and there's a question whether or not this authority would stand up in court if challenged legally when it is being used in this way, whether this is actually a national security oriented emergency or not and the president contends that it is, talking about the flow of fentanyl and migrants over the borders.

jackie: kailey leinz, thanks. and trading resumed on monday, playing catch-up to a global a.i. sell-off with trump's new tariffs. we're joined by peter to discuss. let's walk through what we know about trump's discussion nvidia c.e.o. jenson haung and what he signaled on chips so far? pete: the rules of the game are changing by the hours here. peter: many changes for the companies they deal with, nvidia, tsmc and the other companies seen moving the markets. tsmc is the most advanced chipmaker out there and takes them years and tens of millions of dollars to build the factories and their time frame of making decisions from a business standpoint is quite a bit different that be some of these policy changes. and they make most of their chips in taiwan and apple and

for nvidia and shift them into the united states and other markets. with trump's tariffs, the idea they would move production within the united states, it's a bit of a different time frame. they are building a factory in the united states and will take time for them so we're seeing both the depression on the stock price catching up with what happened with deepseek last week and on top of that we have these tariff concerns whether they are delayed or not. caroline: nvidia putting out a statement they see little impact of tariffs in the overall industry. how do investors gain this out more broadly, peter? peter: there's a couple concerns layered on top of each other, the deepseek concerns we saw last week that knocked $600 billion off the market cap of nvidia and around the idea this chinese company had built a a.i. model that was competitive with the best in the west, including open a.i.'s model for a much,

much lower cost but there's a lot of things we don't know how that model was built and which chips they used. they did say they used a bunch of nvidia chips, too. but the concern is perhaps these a.i. companies will do things more cheaply rather than investing the tens of billions or hundreds of billions of dollars we've heard from open a. i. and microsoft and the starmake stargate venture. and president trump meleer tariffs on top of computer chips, too, and would hurt tsmc and samsung and probably the asian players that have been very active in this market. caroline: thank you. we'll keep an eye on it. let's bring the c.i.o. of defiant c.t.s. to discuss the broader market impact as you are someone that needs to be assessing your overall exposure here, it's a very fluid situation. >> good morning. it is a fluid situation and the

only thing you can do as an investor, whether you're a retail investor to know what's going on with these organizations, hearing from mr. hassette this morning it sounded like it was around the idea of not importing drugs and border control issues and fentanyl and if that's the case we see what happened with mexico, the delay of this and ongoing conversations is a positive thing and maybe it feels like it won't go into effect but of course we have the backdrop of domestication and bringing everything back to the u.s. to produce in the u.s. and see where all this lands and kind of adjust accordingly. jackie: we have companies coming up later this weekend and the end of the month reporting earnings and what do you expect will be covered as it relates to tariffs and perhaps that looming threat. what do you want to hear from management in some of those

conference calls? sylvia: we don't know how to address the situation because we don't know if the tariffs will go into effect or not. there will be comments along the lines of, you know, we're keeping an eye on this and it's a moving target and a fluid situation similar to how you phrased it. the difficulty is it we get these tariffs these companies will probably raise prices and probably will impact future earnings and g.d.p. growth and things like this but don't think anyone wants to touch it this week until we get more clarity and may get it today or the next 24 hours and will help the situation. what i think everybody is looking for from earnings particularly this week when you have some of the big tech giants coming out with their earnings is talk of a.i., right? and are we monetizing this and what are the top and bottom lines going to look like and what kind of revenue generation can we expect and how will it

filter into the names that aren't the providers of all this stuff? i think that's really the market is out to see and if that's the case and the terrific thing becomes a benign event, you have a great buying opportunity here, right? but we need more time to shake it out. jackie: two stories are playing out and you have a need to invest in a.i. infrastructure but you have investors wary of spending on that front as well and how will countries weigh that as we see a bigger push coming out of washington to really build out infrastructure? sylvia: to the latter of your point, there's a big push from washington to participate in the buildout of a.i. infrastructure. the u.s. has been left behind so many times when it comes to tech and tech investments and why deepseek rattled the markets,ive ho, look what they did. there will be investment in

building out a.i. infrastructure and making sure it's the best infrastructure in the world and also the most cost efficient cost in the world for what it is providing. i think that spin will continue and a.i. is just the beginning of it, right? we're stage 1 of a.i., right? stage 2 will be how it impacts drug companies, pharmaceutical companies, aerospace and defense, hearing that on the earnings calls from again those x-mag names and step 3 is what else is there, right? and that arguably could be quantum computing, the next fourth industrial revolution of technology and supercomputing there. there's a lot of spin that will probably spin going into a.i. and it's just the early days still. caroline: you've been fighting exposure to quantum but you provide exposure to crypto, which was the asset to sell in a liquid market over the weekend. how do you think crypto's exposure will be to volatile markets but still and ad administration that is for it.

sylvia: people have a different relationship and we think of it as gold and inflation hedge and other times we review it as a risk asset like a high sector stock and it's behaving like the latter and investors are spooked about tariffs and what it means for the upcoming future and crypto is easy to buy and sell and goes with those hit hard today particularly in the nasdaq and we think crypto will be one of the best opportunities to have a portfolio, specifically bit coins and names like microstrategy that attract bit coin and you'll see some buyers here and we see crypto moving around to that effect so let's see. positive news on tariffs and crypto, you know, it will be and asette to watch in a favorable sense. jackie: thank you, sylvia. coming up, elon musk's doge team

wants access to sensitive information to shut down payment to contractors. ♪

caroline: music's doge team is shutting down payment to contracts and shutting down he things and let's bring in some more for comment.

is this not the government efficiency? >> we have a billionaire running six companies who has some kind of affiliation with the white house but not entirely clear. max: but is very, very close to president trump is kind of running around washington disrupting i'd say both in the positive and negative sense of that word the operations of federal government. we saw over the weekend reports that musk had taken over the payment system, the money the u.s. government has to pay all its contractors. that was a pretty crazy action, then last night musk got on twitter space and essentially said he was shutting down usaid. congress created usaid and not clear that it's something elon musk is allowed to do. a lot of questions and just a ton of chaos in the federal government right now. jackie: what do we know about who is aiding elon musk at this point in some of these efforts?

it's not the first time he's stormed into an organization and taken it over. talk to us a little bit about the parallels perhaps that twitter has and what we can kind of expect on this front, granted it is government. max: absolutely. this is very similar to the period immediately following elon musk's purchase of twitter where he brought in this very small crew of loyalists, a combination of people who had worked with him for a really long time as well as 20ish year old intern types who are doing all sorts of stuff the email that went out to federal workers, subject line, fork in the road, trump sent nearly an identical email to twitter employees before laying off many of them. i will say, there are huge differences again between -- it's obvious to say this between the federal government and a $44 billion private company that elon musk controlled and why you're seeing a lot of criticism

from democrats as well as groups that are concerned about funding being cut of off and of course there will be political implications of this as well. caroline: senator of oregon, ron wyden most vocal out there saying you can't do this but for all of us that have been so close to doge and the birth of it can't be surprised in the least he's running roughshod. max: no, i think it's somewhat surprising how quickly this has moved but you're right. this is what trump and elon musk said when trump was running for president. so in that sense it's not a surprise. i do thinking there were a lot of people, a lot of moderates who supported trump who were hoping for something different, similar to the tariff story, is the hope that this would all be bluster or something and, you know, this is what they said they were going to do. and one difference, though, here again is that elon musk doesn't work for the government -- it's not clear what his authority is. he hasn't been subject to a

confirmation hearing. he hasn't put his financial stuff in a trust. he's also very erratic. this is probably more extreme than it would have been if it were a different trump appointee doing this. but having somebody with musk's temperament and reputation and frankly, energy levels sort of takes us to another level. jackie: thank you, max. next we pivot to policy where doug tells us deepseek is a wake-up call around a.i. safety. this is bloomberg. ♪ only the servicenow platform puts ai agents to work across your company. they deal with the small stuff that bogs you down. agents like secret agents? you know... i once played a secret agent. - oh... - oh i miss that one. i heard you were great. i was great.

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♪ caroline: open a.i. and softbank joining forces to sell a.i. services to businesses across

japan. softbank c.e.o. took to the stage in tokyo to outline this new venture with hiring 1,000 people to market open a.i. to japanese industries and talked about the next agent called deep research which will conduct online research on a user's behalf and powered by chatgpt. jackie: let's discuss safety and how u.s. a.i. could be shamed by advances by deepseek. doug, it seems like we have a different narrative going out after deepseek developments and is sparking this renewed escalation in arms race in a.i. but at the same time you have the biden administration's executive order on a.i. being rescinded in trump's first week in office. where does this leave any kind of priority for u.s. safety in the u.s.? doug: that's a very good point

and these are a lot of the arguments we're hearing. we believe step one is understanding what the problem is. what you'll often hear people say is the problem is that china is going fast and the u.s. needs to go faster. sure. why is china going fast? is china going fast because they're independently developing their own technology that can rival u.s. technology? no. i don't think anyone believes that. they're piggybacking off u.s. efforts. they're using u.s. chips or u.s. designed chips and using u.s. designed algorithms so if we're serious about keeping the lead over china we have to realize how we're getting access and run accordingly. if they're running faster and holding on to our back we won't outrun them. caroline: you've worked for senators and when advising government you say fast forward is the way forward from china but here's what we do to protect ourselves, what is the response? doug: it's difficult and i think the understanding is there are different policy tools the u.s. government has used to try to

prevent china from fast following. and we understand them as chip controls, export controls, concerns about security of both closed weight and open weight models and these things are very technical. but i do thinking a lot of what you're hearing about how who none of these things are working and we need to throw it away missings the mark. we know a lot of the chip export controls have a time delay so what china was using to train their models was based off chips they're no longer able to get in large part. we needed to give the export controls time to work. there also is a very good market to be made about expanding the export controls and covering things that should have been covered the first time around but weren't for a number of reasons. a number of things we can do other than simply throwing our hands in the air. caroline: does that not choke the golden goose that's been nvidia and how do they prosper curtailing their accept to

accept? doug: if you look at nvidia's reaction to what the biden administration did, they complained about the defusion rule which limited their exports and didn't have much impact on nvidia's stock price and was minimal and if you look what happened to deepseek it had a major impact on nvidia's stock price and would make the argument nvidia does well if you prevent some of these non-u.s. companies from simply using tools to more or less steal technology from the u.s. particularly the algorithm by using nvidia chips and would benefit companies like nvidia in the long run. jackie: pivoting to washington in a bit, when you were on the show in november you mentioned you were a fan of one of president trump's executive orders from the first administration and the man behind that order was michael kratsios who was promoted to be director of 9 office of science and technology due to be

confirmed the end of the month. what knowing about him and his approach in the past as former white house chief technology officer, what kind of approach are you expecting from his office? doug: he is a very serious person and understand also the technology well and i would put in the same can howard lutnick and they both have the biggest influence to policy in the trump administration and saw lutnick in his recent hearing he believes in export controls and believes we need to be serious about clamping down to chinese access to u.s. technology and will see it through. i think that he and kratsios together will want to do what they can to maintain the u.s. lead in innovation. caroline: an interesting day for e.u.'s going into effect as well. thank you for speaking with us from american innovation. coming up, amy celico will

discuss the impact of u.s. tariffs on china and the tech consumption and a.i. race. this is bloomberg technology. ♪

caroline: welcome back to bloomberg technology, i'm caroline hyde. jackie: i'm jackie from new york. caroline: volatility is the name of the day, the reverberation of tariffs that initially were going to be 25%, and china by 10% and may be delayed by a month is what the mexican president said. the lows down .08% and nowhere like we had with deepseek anxiety but tariff anxiety is clear. let's think of the other angles we're watching.

president trump's tariffs, in fact there's a plan to eliminate a tariff exemption for over $800 and allowing them to ship cleanly without tariffs and given them an advantage over amazon, and bouncing off the lows with the chinese companies as well after that mexican headline. but this is all surrounding how they're able to bypass costs at the moment and that will come to an end. were yeah, clear as mud right now exactly how it will play out. the key question is trump imposed this 10% tariff on goods from china and eliminating this loophole. spencer: the big question now is does that apply just to the new 10% or the old tariffs as well? we're still kind of getting clarity minute by minute on that. either way, it's going to hurt

these chinese firms like temu, which is owned by t.e.d. in china as well as shein because they've been able to send items one package at a time to u.s. consumers slipping in under that $800 threshold for de minimus where they're diluting the tariffs where bigger retailers including amazons will bring in cargo containers by ship and paying a tariff on all the inventory on the containers but the threshold is measured by everyone particular shipment so if you're sending one individual shipment, you're below the $800 but if you have a larger shipment with lots of inventory, you're above the threshold. jackie: you have any sense how much of an impact potential tariffs could actually mean for temu and shen? they've seen a huge run-up the last couple years and could they afford to bear the brunt of this or are they more sensitive to a

disruption? spencer: that's the million dollar question. they've all been kind of bracing for this, temu particularly has been sourcing more inventory in the u.s. the downside of the model shipping to consumers direct from china is it takes a long time and they've been trying to source more inventory within the u.s. to be closer to customers like amazon and get it to them more quickly. the downside of that is they don't have this tariff savings and if that tariff savings completely goes away, the million dollar question is, do these companies actually survive? and that's where there will be a lot of debate and we'll have to see what happens. they've already been positioning, expecting some change like this to happen. jackie: bloomberg's spencer, thank you. let's get more impact on the u.s. tariffs on china. joined by amy at partner at stone bridge finance group. let's talk about trump's previous approaches to tariffs and what we can learn perhaps

from his past escalations on china. what does it mean kind of going into this new administration and are you seeing kind of similar tactics or new ones perhaps being employed now? amy: great to be with you. i think what's so interesting is as he threatened to do, president trump imposed tariffs almost immediately and had to rely on iepa on this economic emergency economic terror attacks on canada, mexico, and china. and that is novel for this president. so the way that he deals with justifying lifting the tariffs will be novellas well. very different from how he deployed tariffs in the past after investigations that demonstrated harm through section 232, section 301 of u.s. trade laws. this use of iepa to justify

tariffs i think gives him a little more -- a lot more bargaining power and leverage on the one hand but also justification to pull the tariffs back. he under iepa talked about the flows of fentanyl coming into the united states from china going through canada and mexico as well as of course illegal immigration. but in talking about the tariffs that he's about to impose he talks about the trade imbalance and gives china the justification to challenge the use of iepa to put these tariffs on china in the first place and exactly what china has already done rather than threaten immediate retaliation, they've been very vague about that. they've said this isn't even legal what the president is doing. so really, i do thinking we're in a different place in the second trump administration than we were in trump 1.0 and how he

used tariffs last time. caroline: i'm looking at the market reaction to something that's been well signaled and i was shocked. apple is still the biggest drag on the downside to the nasdaq and you see nvidia and tesla and trying to work out what it means for phone shipments and chip shipments and auto shipments which is global dependent. what do you think the ripple effect will be? amy: incredibly disruptive without a doubt and the reason so many are shocked is not because the president hasn't said it all along on the campaign trail and since its election but because of these profound consequences you just mentioned, caroline. it's going to be significant. i will say, however, the president is looking for a deal here. he's looking to use this leverage of the threat of these tariffs in order to justify likely, maybe pulling them back. i shouldn't say likely but maybe

pulling them back quickly if he sees progress from china, more progress, on the fentanyl trade flows and of course on the illegal immigration. two issues that during the transition period it sounds like the u.s. government and the chinese government have been making progress. so i think again that is why we're so surprised this is happening so quickly. we shouldn't be. the president promised it. but i think he's doing this in order to have a leverage to make some kind of deal. my final point, caroline, the chinese government has been much more reluctant to be vehement in its opposition than canada and the mexican governments because, of course, the tariff rate is much smaller even though the threat president-elect trump had made was a much larger tariff levy so we're early in the chinese government is going to play a long term game in negotiating with this new team.

caroline: what was way more shocking was deepseek and did come completely by surprise and adds another layer of complexity and make does it mean for chip experts going forward? amy: it's going to be a real challenge as we all saw, of course the that video c.e.o. for the first time met president trump on friday and is talking about this. the trump administration very early on through an executive order said we are really going to promote a.i. dominance by the united states by putting in place more restrictions p. so i do thinking the deepseek arrival on the scene coinciding with the inauguration of president trump necessitated a response from the trump team. i think as you were talking about with spencer, the new team is still coming into shape that is going to be directing these policies. but i anticipate we're going to see more export controls and going to see more threats of tariffs in order to deal with

that. that is going to have some real ramifications for the american companies, technology companies that continue to rely on china. president trump, i think robert lightheiser, said this is going to cause some pain because we do need to transform the way that our country maintains its economic role, not going to be easy in the short term. jackie: amy, you mentioned china is playing the long game. help us map out some potential scenarios for what retaliation could look like? amy: well, i think the chinese government wants to take it slow in retaliation that could have broad-based impact because, of course, we know that the government is talking to the new team in the white house now. of course the vice president of china was here for the inauguration. he met with his counterpart prior to the inauguration so

vice president elect at the moment, j.d. vance and the vice president sat down together and talked about a whole host of issue. the vice president of china stayed in the u.s. through the inauguration and flew right back to china. but what this means is the two sides clearly are already talking. president trump himself has intimated he wants to go to china early and have some kind of a deal. and so to answer your question, i think the chinese government is very much keeping that in mind as it thinks about retaliation. of course they don't want to adversely impact the chinese government recovering in their economy but will have to respond somehow and will likely take a very targeted retaliatory measure likely targeting some u.s. company so that's not good news by the american business community, that absolutely is

concerned about the prospect of retaliation but i foresee that retaliation will be quite measured. caroline: we thank you. coming up, palatir expected to report earnings and can it live up to the explosive run the following year. that's next on bloomberg technolo ♪

caroline: this is "bloomberg technology." looking at the principal room. check out the podcast on the terminal as well as apple, spotify and i heart. this is bloomberg. ♪ caroline: it's another big week for tech earnings. first up palatir, some see the levels difficult to maintain. collin is with us. a phenomenal run-up, a valuation

200 times future earnings. can 28% growth in revenue do it? >> it remains to be seen, what is interesting about palantir stock, they are bullish and saw an incredible run and shares slumped the beginning of the year but rallied 30% in the last two weeks to a record high before this earnings report. carmen: investors are excited about this company and excited about the long term potential here and i mean, palantir has a lot to prove in the earnings report. jackie: there's a a.i. arms race that seems to be intensifying in recent weeks, i'm curious what palantir's edge is here and we're familiar with their contracts with the defense department but what else is there to their business model that perhaps could benefit from this a.i. arms race we're seeing? carmen: one of the biggest growth places for palatir going forward is commercial contracts

and has a lot of business with the u.s. government and globally and it's really building out the private side so commercial contracts and especially bringing its a.i. to the table and saying this is how it could help you in your businesses. i think that's something people are willing to see and what to see continued growth on the commercial side of palantir's business and is coming out on top as a big a.i. outperformer. jackie: thank you, carmen. airspace drone monitoring startup hidden level announces it is expanding its role in national security with adds 100 million in investment. joining us is jeff cole, c.e.o. and co-founder. the defense industry and silicon valley have not typically had the most seamless of relationships especially when you think how slow the pentagon moves. why don't you talk to us a little bit about how your technology actually works and what it took to really get this

massive contract in the books for you. jeff: thanks for having me, it's wonderful to be here. as a company, we're based in upstate new york and syracuse, we founded the company in 2018 out of a basement but a team that's been together almost 20 years doing this type of tech with the defense industry and commercial industry and really saw what we needed to do was bring the life next generation at a cost-effective manner and make it available not only through our hardware but infrastructure where we sell data on large drones and aircraft and made it easier for the end users. so combining a mixture of dual use, commercial applications, defense national security, our focus was making sure we have fun while addressing a safer and smarter world and what really made this, i'll say, a journey that has been really supported by our venture capitalist, not

just that we're addressing d.o.d. technology but the safer world. caroline: lockheed market adventures as well at g.f.k. is supporting this million dollar raise and now worth more than half a billion and interested how you compete against lockheed and ensure you're getting under the new administration new contracts for startups such as yourself. jeff: not only have we brought in incredible investors like lookahead and booz allen and others, and the reason we did that was strategic partnerships and sell hardware direct at a firm fixed price with a data infrastructure that's available to d.o.d., federal, state, local and enterprise commercial users, so rather than trying to replace, we're a new feature, something that the defense industry is able to integrate into existing solutions very quickly and shown by our recent deployments all across the northeast to support a wide

array of drone concerns and issues and also our involvement in the inauguration and through our budding partnership most recently with palantir. jackie: can you give us a sense where your technology is being deployed, any regions or perhaps the scale of prototypes out there currently? jeff: yeah, one of our largest deployments is in the d.c. area and live since 2021. it was actually a natural prosecution for us after supporting the u.s. government in deployments throughout the northeast that they asked us to help assist with the inauguration. so in support of northcom and joint task force national capital region and our partnership with palantir, we expanded our capabilities by you putting our technology in the infrastructure we had out and able to provide a low altitude to high altitude picture of small drones to large aircraft.

caroline: many will being of new jersey and the context of this race, whether it's an a.i. race versus u.s. and china or whether it's a drone vase versus u.s. and china, what do you make of the risk levels right now? jeff: the complexities of our airspace are immense, adding small drones, adding a.i., the things you can do with drones 10 years ago versus right now is just rapidly changing and the complexities of our airspace, all the folks that are involved, the stakeholders, not just d.o.d., federal, state and local but also our commercial users, the power grid, everything. this just adds more challenge and difficulty and a big reason for starting hidden level, with our infrastructure we were able to integrate all these users simultaneously for the first time ever where they could all work off the same air picture. this gave them the ability to have very rapid response and quick decisionmaking which is needed as the complexity of the

airspace is getting worse. caroline: nothing brings that in sharper relief than the tragedy that occurred last week in washington. jeff cole, hidden level c.e.o. coming up, we'll shift gears, beyonce's big grammy night. that's next. this is "bloomberg technology." ♪

caroline: it was a big night for beyonce winning her first album of the year, country album called "cowboy carter." and the first black artist to win best country album. for more, ashley joins us and would say it's the long time coming and so would her husband. what do the viewers make of it? ashley: they think it's a moment everyone was waiting for. last year jay-z talked at the grammies saying beyonce has won more grammies in history but yet has not won album of the year and almost an ultimatum and felt like they put the pressure on, she's up again, will she get snubbed again, will taylor take it home? and this year finally, she's got

it. jackie: not to bring it back to technology all the time but i'm curious. caroline: you can do that, jackie, bring it back to technology all the time. jackie: given every big artist and music labels in the room last night, i'm curious what the relationship between a.i. and the music industry, where does that stand right now? did you get a vibe for where that is at the moment? ashley: actually, this kind of was a story i would say hasn't been picked up much but the beetles won for their song "now and then" which used a.i. to clean up the vocals from john lennon, tape that had been left over and without a.i. would have been difficult and very muddy and difficult to get the lyrics and song out of it. so they actually won for that track which is kind of a historic moment because they've been very open about the a.i. use there and as you might recall, last year there was a

debacle around that artist ghostwriter who had used a.i. to make a track featuring, quote, unquote fake drake and fake the weekend and he wasn't allowed to submit that song last year and this year it was sort of the officially sanctioned a.i. use case. caroline: meanwhile will be smarting done by drake as kendrick lamar runs home. i wonder what it spells for key earnings with spotify coming up and this is their bread and butter. ashley: spotify, you mentioned the drake lawsuit over the kendrick lamar disk track, drake had tried to bring spotify into this previously and ended up not doing anything with that and suing u.m.g. but i think, you know, spotify has already had a hell of a year. their stock is doing very, very well and can't imagine that anything about last night changes that for them.

caroline: spotify, we wait for earnings tomorrow and indeed are expecting some revenue growth at 13%. ashley, great to have you with us. that does it. check out our own podcast on spotify or apple and iheart. this is bloomberg. ♪

the way i approach work post fatherhood, has really trying to understand the generation

that we're building devices for. here in the comcast family, we're building an integrated in-home wifi solution for millions of families like my own. in the average household, there are dozens of connected devices. connectivity is a big part of my boys' lives. it brings people together in meaningful ways.

♪ [captioning made possible by the u.s. department of education and bloomberg television] scarlet: welcome to etq i.q. katie: will he or won't in tariffs? let's get the answer on the global industry that starts rebounding after president trump announces mexico's tariffs are delayed by one month with canada and china's still ready to start tomorrow.