>> welcome to "bloomberg markets ." i'm vonnie quinn. we have a stunning turn in the markets on her hands. picking up from the volatility that we saw last week. let's have a quick check on where we stand. the s&p 500 is down 2.2%. the nasdaq 100 down 3.25%. the 10 year yield is down almost eight basis points. money flowing into treasuries. the fitbit -- the vix index was about 27 earlier on and it almost got there a few minutes

ago as well. a lot of churn in the market. some stocks are higher, primarily in defense and consumer staples. looking at the nasdaq 100, it's down now 12% almost from its peak less than a month ago. february 19. looking at tesla, down 50% from its december peak. nvidia, down about 25% from its peak. so, we really have a nasdaq 100 selloff on our hands. we will be examining whether this is something ongoing or just a little bit of overdoing the growth selloff. let's highlight a couple of individual equity movers. isabelle lee joins us now with those names. isabel: speaking of tesla, it's down almost 11%, the hardest hit of the magnificent seven stocks. they have erased all of their postelection gains and shipments from china have been declining for five executive months, part of the reason the stock is seen

pressure today. up next, crypto-linked stocks are edging lower, from strategy to robinhood and coinbase, they are down as bitcoin extends losses below $80,000. it has been fled to on the back of at macro economic headwinds like tariffs, war tensions, and diminishing fed rate cuts with an offset of the optimism from last week on the back of crypto related developments. finally, rocket, shares are edging lower by 10% as the company pushes deeper into the property market with a deal to buy redfin from 1.7 5 billion. they will pay $12.50 for every redfin share in an all stock transaction. in contrast, redfin rising as much as 80%, the biggest intraday gain on record. vonnie: isabelle, thank you. bloomberg federated said that the old saying that markets hate

uncertainty, true today. >> i think we will still see pressure for a couple of months and equity is likely to go lower before it goes higher. you have been in the scenario before where you are in peak uncertainty and it has created a desire for safe haven assets. we stood pat. we came in 5% overweight with equities. it's kind of like waiting for ghetto. we have talked about the overweight small caps. i want to buy the things that are in pain right now. i would like to see more dislocation in the equity market to jump in. vonnie: let's get more insight into the volatility we are seeing. joining us is the chief investment officer at pala. would you characterize the selloff of the last few weeks as orderly? >> it's not orderly. we have seen sort of consumer, corporate, and retail shift from being positive to jitters about

growth, a theme over the last few days. you have seen more selling driving pressure. it hasn't been but i would have expected it to be. this as fears have intensified. vonnie: given that you don't think it's orderly, is it coming quickly? potentially in the fact that the fed could offset some of the tariff fears out there, given that we are not seeing a market pricing and rational tariffs yet? >> i think the fed did a pretty good job last week. chairman powell past testimony, his speech in chicago was pretty reasonable. the fed is not staving off in the markets.

saying that maybe recessions are real and people should expect to deal with it. if i step back for a second to think about where the economy is an look at q1 2024 results, earnings, revenue growth, it all looks pretty good still. i think that as i think about a six month a 12 month view, we are still positive on stocks and think that the market can recover. we are not talking much more than single-digit returns this year. i certainly don't see the risk of recession getting priced in in the market right now. vonnie: so, i think that we can attribute some of this to the trump commentary over the last couple of weeks. not just him, but members of his administration. how much control will he exercise over the market in the next 12 months? is there a point at which the markets don't listen to the president and his advisers as much? gaurav: i think he obviously has influence today.

going back to having a situation with a republican administration in charge, i'm not willing to accept right now the fact that they are going to leave corporate america in a weaker position than what they inherited. i understand that there is this with tariffs and other policy moves that are occurring right now, what we haven't seen what the administration is willing to give corporate america. not as much emphasis on deregulation. going back to 2016, 1 of the big things corporate america got was a lower tax rate. we have to wait and see what the give and take is as corporate america look through these policy changes. which will take time. but i can't believe they won't give corporate america something or leave corporations in a weaker position than what they inherited. vonnie: you have a lot of experience in international investing as well. what do think about china and how it has played out as a trade? alibaba is down 4% today.

have we seen the run-up in china stocks? do we look elsewhere now? gaurav: we seen this story many times in the last 10 years. a big run-up occurs, but no country has demonstrated the resilience and dynamism of the u.s. economy and i'm not ready to call it off right now. we news -- we do think that u.s. exceptionalism is real. i'm confident that it will emerge stronger as the year wears on. vonnie: beyond the obvious questions about the administration and the federal reserve, there are also market technicals and how the market operates. one day expiration auctions -- options being half of the liquidity in the s&p 500 on a daily basis. is this a healthy market? gaurav: it is a healthy market. you are seeing two-sided trades. there might be more reaction looking into the healthy market, but it is, and at the beginning

of the year there was price perfection. market price to perfection, there is jitters with overreaction occurring. given that situation, i don't see this as not being orderly. that's the best way i can place it. vonnie: all right, not too pessimistic. that was gaurav mallik of pallas capital, thank you for joining us. geo capital -- geopolitics is a factor. mark carney has won the race to become the next prime minister of canada. he spoke to reporters after his victory. >> we didn't ask for this fight. we didn't ask for this fight. but canadians are always ready when someone else drops the gloves. so, the americans should make no mistake, in trade as in hockey, canada will win. vonnie: joining us now is our bloomberg chief, laura.

heat won with 86% support. how will he be different from prime minister trudeau? laura: the two men are different personality wise. policy, as well, though he has become the leader of the liberal party, he has a a different course to get rid of the planned capital gains tax hike that the trudeau government brought in, scrap to the consumer carbon tax that had been a signature policy of justin trudeau. in terms of fighting the tariffs that trump brought in, the policy is essentially the same. it's one area where trudeau has seen an upswing in's of best popularity. canadians are really infuriated by the tariff threats and the incursions and threats toward sovereignty. kearny has promised to retain retaliatory tariffs on the u.s. until trump drops his tariff threats completely and commits to free trade with canada,

saying that we will not back down into the u.s. shows us respect. vonnie: on paper he is the type of person that a president trump would not get on well with, right? a member of the liberal elite, potentially. he's been a central banker in two different countries and is untested as a politician. how might that dynamic play out? laura: that's right, it's interesting, he's the globalist elite that trump might rail against publicly, but privately i wonder about the dynamic. mark carney was ache successful goldman sachs banker. successful in business. to be successful, you have to be a tough negotiator, you need to be able to stand your ground and make quick decisions. i wonder about him in the negotiating room with trump, whether he might be able to take him on in that way and perhaps earn the trump respect, given his successful career in financial markets before could -- before becoming a central banker. that said, you know, it will be

a warm relationship. as i said, canadians are very, very angry over the economic war that they feel trump is waging against their country and carney is representing the anger in the prime minister's office. we won't see him backing down. we won't see him offering reprieve to trump. he has promised to maintain those retaliatory tariffs that are set to widen to 100 55 billion canadian dollars worth of u.s. goods on april 2. vonnie: one of the statistics that i read was that road trips into the u.s. from canada are down 23% in february year-over-year, terrifying. laura, thank you so much for joining us. coming up, rocket company shares fall after the company announced they are purchasing redfin for one points out -- $1.57 billion in an all stock deal. we break it down for you, next. "bloomberg markets -- this is bloomberg. ♪

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vonnie: this is "bloomberg markets." rocket company announcing that it will purchase the real estate site redfin for 1.75 billion dollars in an all stock deal. their stock dropped on the news. the ceo of rocket joined us in an exclusive interview earlier today to talk about the deal. >> we are very excited about this deal. two of the biggest growth opportunities for rocket that we have talked about are really growing in purchasing ai and by bringing together the leading home search website with the leading mortgage finance company, we expect to accomplish both. vonnie: let's turn to our bloomberg deals reporter.

60% industry premium, what does the industry say about it? >> it has run pretty well on the redfin side. analysts came out in support of the deal saying that there is a lot of strategic rationale. even despite the price drop of the rocket stock, there is still positive feedback in the market from analysts so far, the strategic rationale and synergy here. the biggest synergy is the company hoping to buy data. also the model to tell them when the homebuyers are becoming more serious when they look at home purchases. in that regard, it really fits into the rocket ai theme they are trying to view here. vonnie: it's a home search platform, a combination of search, titles, and financing. are there any antitrust issues here? crystal: i spoke to the ceo of rocket about this.

they are not really expecting any and are expecting the deal to close in the third quarter of this year. that said, a lot of these ideas can be challenged. we are seeing a relaxing of the regulatory environment of the m&a space in the new administration. there's a lot more optimism that deals could get through. vonnie: a lot of companies are trying to come to market now. is there a window? will we see a rush of companies over the next few weeks, if the market selloff gets worse? crystal: we saw some on monday, there was a bit of a tech motion involving strategic buyers, but a lot of people are expecting in january a floodgate of m&a deals from the new administration. we didn't see that impact in that quiet first quarter. even though the antitrust market might be more relaxed, you are still seeing more volatility. interest rates are not clear. there are tariffs in the background.

m&a, volatility, uncertainty or not best friends, so you can see dealmakers taking a pause. though there are green shoots. like i said, the regulatory environment is getting better, so we will see if ceos decide that this is a risk they want to take. vonnie: crystal, thank you so much for joining us there from washington, d.c. oracle, dropping today with the broader market, reporting third-quarter earnings after the bell with investors expecting additional bookings and expenses stemming from the stargate joint venture with openai the senior technology analyst at bloomberg intelligence joins us now. we are down 9%, 10% since the beginning of the year, up 32 percent year-over-year. the stock is moving around, but what will be be seen later on that might appease investors? >> at the end of the day it's all about the growth rate of the crop -- cloud infrastructure business. if that carries on the way people are expecting and they

carry on with the exports, it should help the cause. right now everyone is afraid of what will happen because of economic concerns, concerns. vonnie: we are expecting something like 8% sales growth, but how much will be see data centers winning away from openai and microsoft? >> the biggest of her to look for is cloud infrastructure as a service in the low 50's. that's the number we are looking for. that's the big area. that business is the one that has been expanding over the last seven quarters and has led to the expansion of the multiples. but we want to know what happens to margins if oracle continues to spend quite a bit on expenditures going forward with the newly announced stargate project. that is again something that we could see on the minds of

investors as far as what the behavior profitability is here. vonnie: across the industry, how much is the selloff due to a perceived lack of trust and how much are people worried about that? >> the economic concerns have been the most recent reason for the most recent selloff, i think. a month ago the biggest thing was deepseek and what it would do to ai infrastructure spending, but since then we have seen announcements from all major technology companies, like microsoft, google, meta, and amazon that they would be spending more over the next 74 months, which should have pacified investors, but it really hasn't. vonnie: a really important set of results there, thank you so much. coming up, we stay on theme with tech ceos at the white house to discuss trade policy and u.s.

manufacturing. they are set to meet at 2 p.m. new york time details coming next. this is bloomberg. ♪

vonnie:vonnie: this is "bloomberg markets." donald trump meeting with the ceos of major tech companies later today. they are set to discuss trade policy and u.s. manufacturing, which could upend their businesses. let's get some insight right now from jackie duval owes, in washington. what do we know about this tech council, who is on it and who may not be in for what reason. jackie: the only confirmed company to us so far is hp, but we know other companies will be in attendance. as you mentioned, ibm, intel, qualcomm, american homegrown chipmakers with a foothold in

the ai trade. we know what will be on the agenda is trade policy and manufacturing. these companies have exposure to the tariffs trump has imposed on china to various degrees. the other thing that will be on the agenda, we imagine, is the chips and science act. as we know last week, trump threw a wrench in that debate as to whether it's even going to be maintained. he spoke to speaker johnson and his address to congress, telling him to get rid of it. he said it's a horrible, horrible thing. we obviously know that trump prefers terrorist versus subsidies, which is what the chips and science act does, gives subsidies to chipmakers like intel, to boost domestic manufacturing. these companies will want to know to what extent does he actually intend to have this repealed, but that would require an act of congress. in any direction from there,

clarity, is extremely important. the other thing that will probably be on the table with regards to trade policy is where it leaves chip exports. the trump administration will want to look at that after deepseek. to what extent trump plans to enforce the diffusion rule, the additional chip export restrictions on middle tier countries, some of which the u.s. considers allies, many of those companies find these too restrictive. we had the ceo of nvidia in late january actually coming to talk to trump about that issue. microsoft has made their disagreement known. so, there is a lot to talk about here. from companies, they want clarity. trump, on the other hand, might want commitments. vonnie: if it's negative, we won't likely get an announcement.

may be comments from ceos exiting? jackie: one way this meeting differs, we would have heard an announcement, like we did from stargate in january. we haven't heard such rumblings, yet, but we don't, we don't move it out. we don't exactly know the mechanics of what trump really helps to extract from these ceos and vice versa. at the end of the day, tariffs are a huge part of the conversation. even if these companies get a little bit of guidance there, we might hear from them later on as well. vonnie: jackie will be all over it. that was jackie coming to us from washington, d.c. checking on the markets, it's a brutal selloff this monday. tesla, down total peak to trough at more than 50%. microchip technology's, down

50%. we have some stocks higher, including moderna, staples, and other defense companies. but really, very volatile day. that does it for "bloomberg markets." stay with us. 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.

>> from the world of politics to the world of business. this is "balance of power."

live from washington, d.c. joe: they have four days to figure it out. welcome to the fastest show in politics as republican leaders in the house craft a government shut down on friday. but they don't have the votes. i am joe mathieu alongside kailey leinz. enke for joining us on the early edition of "balance of power." donald trump is calling for notice sent but he still has some minds to change. kailey: certainly you need to be able to convince everybody barring one or two votes in the house republican conference. then you have to convince a bunch of senate democrats to pass this thing, assuming it gets to the house. add on to all of that the risk of the shutdown is usually largely not paid attention to buy financial markets. perhaps one that will be heightened even the volatility we are