>> welcome to bloomberg markets. u.s. stocks selling off after the university of michigan survey data showed consumers were more pessimistic especially about inflation as anxiety builds ahead of next week's scheduled tariffs. right now the s&p 500 is down for a third straight day with big tech leading the way lower. the vix is elevated above 21. we are seeing yields down as investors flow into treasuries. treasuries are gaining across the curve.

the 10 year at 4.62%. gold futures continue to move north. a new record high for gold at 3115. individual equity movers. nora: i'm keeping an eye on a few slots moving. shares of lululemon are plunging after the company reported earnings that missed expectations and provided a sour outlook on the u.s. consumer the stock has fallen as much as 60% in trading today, its worst day in over a year, as consumers continue to tighten their wallets. we will have more in stock of the hour. another is eunice soft entertainment the maker of assassins creed -- unisoft maker of assassins creed. shares of unisoft are down as much as 20%. i'm keeping an eye on the u.s. semiconductor company will speed -- wolf speed, plunging further

worst day on record. the reason behind the selloff still is not immediately clear the company named a new ceo effective may 1. the company has it immediately responded to bloomberg's request for comment. scarlet: thank you for the roundup of equity movers. another one that we will bring you soon as it starts moving his coreweave, a company that has raised 1.5 billion dollars in its ipo which was heavily downsized. the shares are expected to begin trading today on the nasdaq. anywhere from have seen $42 indicated and others have indicated $50. it has been a little all over the place. the fact that the ipo was downsized is not a great indication for where it will start trading? >> not a great indication and half the book was allocated to three investors causing a little bit of consternation and that the top 15 investors took 90% of

the shares. this is a tight deal. bankers call it a club deal with only a few people getting in on the action. priced at $40, $40.50. as the number is walked back closer to the 1:00 hour when we expect it to open, the messaging from nasdaq, getting close to the ipo it isn't what you want to see. normally you want to see 20%, 30%, moving up. not being walked back to what people paid a few hours ago. scarlet: everyone is looking for the first day pop. you have a broad selloff led by big tech with discouraging headlines on the space with td callan having a note talking about how microsoft is scaling back on some of the ai buildout. there are also comments from the chairman of alibaba talking about how perhaps there's a bubble in ai data centers. bailey: there have also been questions with a lot of monday

morning quarterbacking about why you would want a deal done before so-called liberation day. the markets have pulled back quite a bit with nvidia down 6.7 percent today. they are an investor in the company and bought a big st chunk of the -- a big chunk of the ipo according to sources. consternation pulling back from the ai names is making it more choppy. also the pushback on debt load, that this is a company that needs to raise cash to expand their operations. they've been open about that. we are in an environment where investors don't want to write down the dilution risk and for all intents and purposes interest rates will be higher for longer. how does that impacted the underlying fundamentals? scarlet: the other thing that we should make clear is that people use this company as a shorthand for an ai bet, i've heard it described as an ai. play. youentioned nvidia, an

investor and also a supplier and customer? bailey: they call themselves a hyperscaler. it can be seen by skeptics as a way to rent capacity. when you look at the fundamentals, more than three quarters of their 2024 revenue was generated by microsoft and another partner. people do the envelope and say that that is -- people do the math on an envelope and say that that is nvidia. coreweave is the largest in the new ne-yo cloud category -- neo-cloud category. a highly levered waiver microsoft offload less desirable workloads and nvidia to leverage a small investment into a large customer. what does that actually mean? a conversation for another day. scarlet: that adds to the lexicon of words that we have to understand. it is highly leveraged because it needed to borrow a lot of

money. it is a very capital-intensive business. i take it that they aren't capital? bailey: i have grown like a weed compared to what their sales looked like last year. it depends on how you look at the fundamentals. it is a rapidly growing business but they did cost a lot of money to do that. they are a big buyer of nvidia chips. we saw numbers that they could have accounted for as much as 6% to 7% of nvidia sales last year, a tight ecosystem for a company expanding to leapfrog the line to buy more nvidia chips to expand compute, but if you have uncertainty around what the demand looks like and when will the supply-demand offset link back up, that's a big reason that people are looking at the company. scarlet: he has to catch his breath because there is a lot going on. it is scheduled to begin trading at 1:00. bailey: 25 minutes, maybe longer. scarlet: our ipo reporter at

bloomberg come his specialty. we will check in with him when the stock trades for the first time. we want to give you an update on a chip device maker p the company stock is extending its decline as you can see, off about 50%. it is getting an update on the steps that it means to strengthen its capital structure and has received about 190 $2 million in section 40 d tax cash refunds. i'm not totally clear on what that means, but headlines indicate it reaffirmed its 2020 five guidance. it is in active talks with lenders and remains in dialogue with the u.s. commerce department. again, giving an update on the steps to strengthen its capital structure isn't helping much with the stock down about half. inflation expectations at multi-decades high and what that means for how the president's trade policies bear out. more on that with henrietta treyz.

this is bloomberg. ♪ investment opportunities are everywhere you turn. do you charge forward? freeze in your tracks? or, let curiosity light the way. at t. rowe price, we ask smart questions about opportunities like advances in healthcare and how these innovations will create a healthier world tomorrow. better questions. better outcomes. can you see a picture yet? not yet. not yet! what about now? what's that? just streaming the game. innovation changes everything. go left! go left! go left! go left! left? ahh! with one investment, you can access the nasdaq-100 innovators who are rethinking the world. before investing, carefully read and consider

fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com

scarlet: this is bloomberg markets. the canadian government is already announcing plans for when reciprocal tariffs are set to take place next week. prime minister carney spoke forcefully on the topic yesterday. >> we will fight the u.s. tariffs with retaliatory trade actions of our own that will have maximum impact in the united states and minimum impact here in canada. the old relationship that we had with the united states based on deepening integration of our economies and tight security and military cooperations is over.

scarlet: trump and carney spoke today saying that they will meet after canada's election in april. we can see tariff anxiety hitting u.s. consumer sentiment. the latest university of michigan survey shows a decline after the data showed a four year low for consumer confidence p the long-term inflation expectations have jumped to a 32-year high. for more, let's bring in henrietta treyz, the cofounder and director of economic policy at meta-partners. the price action that we see in financial markets, stocks, bonds, gold, reflects investor'' gradual acceptance that president trump is moving forward with tariffs as more than just a negotiating tool as so many hoped that he would at the start of his term. henrietta: absolutely. the market is starting to digest that you should take the president seriously and literally on these tariffs. i still think that liberation

day is going to come as quite a shock. what is interesting to me is that the american consumer, for the first time since we have had trump on the main stage, is not buying what he is selling. the university of michigan index, consumers are pulling back on their spending and not buying as many unnecessary goods as they have been. they are expecting crises to rise. they don't see the tariffs as liberation from anything. when the president and his press secretary called the tariffs tax cuts for consumer is saying, i don't believe you. the market has started to incorporate that and say, i believe they are coming, this will be a problem, and we will be in this for the next four years. scarlet: the president seems in no mood to slow anything down when it comes to what he is targeting and looking to hit tariffs with. we have seen steel and aluminum get hit, and this week the auto

industry, lumber was last week, and copper is on the docket. what or who is next? henrietta: we are waiting for april 1, the release from a host of investigations that they need to present to the president. i think that investors are going to get an early read on what will come on liberation day april 2 or midnight april 3 when they release new, updated reviews. we should expect forward notice on april 1. that should be the main thing that the investment community is watching. into countries and individual sectors, like india, where we know that there are robust trade negotiations happening. they brought down the digital tax to try to ward off tariffs, suggesting that they will reduce tariffs on half on 28 billion dollars worth. tariffs on pharmaceuticals, on automobiles are coming. i think with the president did in his release yesterday is

signal that tariffs on auto parts is the second phase of his negotiation with canada, mexico, the eu, korea and others. if they don't immediately respond in the way that he wants to see when the tariffs are imposed. scarlet: are there any sectors or industries that are immune or less vulnerable than the ones that we talked about? henrietta: that is a good question. immunity is hard to come by. what i'm the most concerned about, and the president and his staff are really clear that they don't want to hear about exclusions -- i was with a seed trade association, importing seeds that farmers buy, even seeds themselves are being exposed to tariffs and they have no recourse to ask for an exclusion. a direct quote was to say, when we go to the white house the best that we can do is sit down with someone who can take notes.

there is no senior trade agriculture negotiator, no one receiving that input to grant an exclusion. it is being theoretically collected, but there's no pathway for an exclusion. the way that i talk about it with clients is that you want to get excluded early because when the tariffs go on they stay on. scarlet: that is interesting given that we've been reporting that the eu is working on a term sheet for trade talks on potential areas of agreement and terms of where they can start talking. do we assume that any kind of trade deal that's currently in existence is void or could be thrown away and disposed of? henrietta: i think that a direct reading of the president's first trade agenda that he released on inauguration day suggests that they won't be thrown away but reviewed. everything is subject to review even the usmca, which was just negotiated a couple of years ago

during his first term. the european union, what the trump administration feels that it has to do is shock and awe to get them to come to the table and have negotiations. we have seen this across different -- the real high paying jobs, the batteries and transmissions, explicitly included in the new tariff basket, don't get made in the united states. i think that the president feels like he really has to shock and awe the eu to the negotiating table, where they haven't come in decades. scarlet: one thing we know about the ongoing trade war that president trump is levying, waging, is that companies don't want to be singled out. they are afraid to raise their hand so they are not hiding but they are using lobbying groups as a way to make their case. i'm sure in washington there are

lots of lobbyists, trade groups, trade associations making their case to members of congress and the oval office. does that work? what can they expect when they make the pilgrimage to washington? henrietta: i note lobbyists to be highly effective. i used to work at the u.s. chamber of commerce. they are very effective. now, the white house is really giving them the heisman and saying we don't want to hear about your exclusions. we will maybe take notes, but there's little pathway to getting in front of the president and carving out or excluding your product, unless you are a major heavy hitter like ford or gm. and even their endeavors are falling on deaf ears. i think that this is going to be a months long process. once the tariffs go on, one of the things that i'm concerned about is that there is not any clarity about, for example, what it means to be usmca compliant.

you're seeing this backlog at customs, the border, of products that can't prove if they are or are not compliant. how do i speak to someone to see if i am compliant? i think that we will hear more anecdotal stories along those lines, which is what the trade associations are collecting now. then they can write a strongly worded letter or try to get a nominee on the record during the committee hearing, but there's little more that they can do. scarlet: that really speaks to the prospect of a lot of logjams moving forward in the coming days and weeks. henrietta, i really appreciate you giving us insight. henrietta treyz with the data partners. now we turn to our stock of the hour, lululemon. it is tumbling in the session. this is a yoga company -- yoga wear company based in canada depending on supplies from asia. they released a gloomy outlook for the year ahead. joining us is the senior analyst of u.s. retail at bloomberg intelligence. it's not so much a

fourth-quarter that was terrible. lululemon beat analysts estimates. it was the full year guidance that wasn't as robust as analysts anticipated. what is lululemon anticipating? >> you are absolutely right that it is the guidance. the first quarter they guided to mid to high single digit increases in sales and similar in the full year, a sharp celebration from the double-digit moment we are used too. for them to reach their $12.5 billion sales target in fiscal 2020 six, it requires that 2026 trends accelerate back to double digits. scarlet: that is a big assumption. the other thing is the guidance includes an impact from tariffs on mexican and chinese goods. the fx currency will also be a drag. lululemon obviously can't control a lot of its current environment. the tariff environment and consumer caution. what can the company control and how is it doing with that?

>> the tariff situation only has a slight impact because they don't produce anything in china, but the impact that inflation will have the u.s. spending is definitely going to be a headwind. what they can control is the product. it's about introducing innovation, new products, getting in touch with the customer and community. that's what they have control over and what we see them executing against. four q results were proof that they are executing well. as long as they do that, the economy aside, they are moving in the right direction. the economy will make a difference and will put their plan at risk of things do not accelerate, especially into 2026 from 2025. scarlet: thank you so much. lululemon shares are currently tumbling, down 15% to 291 dollars per share. more on coreweave as we await the first trade on the ai company. this is bloomberg. ♪

scarlet: this is bloomberg markets. i am scarlet fu. the big ipl happening today, waiting the first trade of coreweave, an ai infrastructure company set to begin trading in the next 7-10 minutes. katie, a lot of people are looking at this as a bellwether for where investor sentiment on ai is but also for future listings, the ipo market at large. right now, the fact that they had to downsize, it's not a great sign for ipo's. katie: it has been a tough few years for tech ipos in general. there are about seven that we are looking at q2 and they are watching to see how this goes as

a sign for tech listings in general. there is even more implications for the ai-related businesses on deck. broadly speaking, it's not a great sign so far for the upcoming tech ipos. scarlet: talk us through what we understand to be the owners behind the company or the big investors right now. katie: even though it is technically venture-backed, the largest shareholder is magnatar, more of a hedge fund. there are vc's that are actually hedge as well. it is not your typical sequoia or silicon valley firms. it is a new jersey-based company. it is more of a wall street company than silicon valley. obviously, it is tech as its core business, and very much tied to the ai industry and nvidia and a lot of hot ai players. scarlet: a new headline that

coreweave shares are indicated to open it $40. the ipo was priced at $40. we have seen this steadily come down over the morning. was it always in the low 40's? katie: no, the original range was between $47 and $55. pricing at $40 a share was a huge disappointment already. they reduced the size of the ipo , which isn't a good sign for demand. it is hard to say of part of this is bad luck with the timing and the markets, but it could also be that the bankers missed the mark on where to price it at and where demand was. every it was, it's not where they thought. opening, you usually want a pop, and it looks like there is no top. scarlet: coreweave shares indicated to open it $40 per share and the ipo was priced at $40. we will bring you headlines when they begin trading. before we go, bloomberg.com has

a game for you called pointed, a news whiz for risktakers using strategy to navigate trivia questions about the week's news in our kids, politics, luxury, culture, and more. this is bloomberg. ♪

announcer: from the world of politics of the world of business, this is "balance of power." ♪

live from washington d.c. ♪ joe: records fromjoe: or the tariffs. welcome to the fastest show in politics as stocks get even further today. as we get a meeting from the president donald trump and canadian per mr. kearney is discovers productive. i'm joe matteo renzi killings in washington. thanks for being with us. this is happening as we wait for a major apo to kick off today and wall street. >> and apr that isn't as big as he could have been. coreweave indicated -- it was up to $57 a share. downsized in a big way. he speaks not only to the sentiment in markets overall, would have been plagued by concerns about tariffs, but are

not just the