>> in silicon valley and beyond, this is "bloomberg technology." caroline: live from new york, and caroline hyde. ed: this is "bloomberg technology." caroline: another day of u.s. stocks whip sewing following president trump's tariffs. investors respond to tariff delays since refuted by the white house and reports of

illegal challenge to those levees also bless checking on the markets. we are up nasdaq 100. this is already entered a bear market of 20% highs but for now we managed to hold onto some sort of hope when it comes to the dramatic sell of recent days. look at the s&p 500. other benchmarks have not performed as well as detect benchmark come off by .1%. we could be on track for a bear market of 20% over highs in the s&p 500. what are you looking at? ed: in the context of tariffs in this market and the technology second, think about nvidia. significantly lower, swung to again, held that gain analyst downgrades and cuts is part of the story and apple intesa bit one point in the session, apple was on track for its biggest three-day drop since october 2000. i want to show some data brought up by apollo global. it is the mag seven names in north america u.s. revenues.

in amazon's case, 61% majority in north america excluding aws. for most of them, most of the sales come from outside the u.s. jurisdictions were tariffs will be held hardest. that is why there is concern and part it will be hit to earnings going forward. caroline: hasn't that been the story for apple. let's return to the web has cut price target for the iphone maker. gone down to 200 $50 from $325. maintaining outperform rating. joining us now. apple's been in the eye of the storm, dan ives signaling that out over the weekend. >> apple is sort of the poster child for tariff related risk right now. it does so much manufacturing overseas especially in countries like china and vietnam which are some of the country's hit with some of the highest tariffs. there is so much uncertainty surrounding the companies,

surrounding the earnings potential in this environment. what are they going to do? will they have to raise prices? if they do, what will that mean for demand? are they going to absorb the higher costs? if so, what does that mean for margins? so much uncertainty. because we are talking about apple, still the world, it obviously has a lot of implications for the market overall. ed: we were talking about is this a historic monday or not. just read a drop for apple going back to 2000. that gives me the sense of scale. talk about the stock. our colleagues don't think apple raises prices. it has use mechanisms around the world to stay competitive on the services side in particular. how is the stock viewed? >> so much of this depends on what happens with tariffs. there are so much uncertainty on that point. if they stay in place as they currently are, the outlook is very grim. if they come off tomorrow, which doesn't seem like -- who knows?

people are so positive about the company's long-term potential, maybe eventually with ai, services growth, earnings. he still has a very strong balance sheet. there are reasons to be optimistic. a lot of people are skeptical about it. if you look at the rsi, it is trading at some of the most oversold levels in years. there is an argument to be made some people feel like it has gotten oversold. biggest three-day drop at least at one point since before the -- that tells you the kind of buying opportunity if you like the stock you could be looking at here. ed: ryan, thank you very much. let's get more with angelo zino. i want to go back to the point we raised at the top of the show if you put the mag seven side by sde and look at their revenues from outside the u.s. come apple catches the eye. how are you modeling that this morning? >> thank you for having me.

as far as that is concerned, look, apple -- it is tough to be a technology hardware company right now. apple is probably facing its toughest test in about two decades. when you look at apple specifically, 43% of sales here in the u.s., the rest internationally, so it is a true global company. the fact most of their iphone production in china is the issue at hand, we do think as far as the tariff concerns are concerned right now, there is essentially this $20 billion or so deficit they're going to have to make up in terms of if you were to look at over the last 12 months and kind of extract the type of tariff hitch they would have gotten from importing all of those goods in terms of the u.s. when you think about that and you look at the potential of what they could do here in terms

of offsetting that $20 billion increase, i think there are number of things they can do. but i don't think personally it is along the lines of them increasing iphone prices by 30% or so across the line here in the u.s. because that would just cause way too much domain disruption. caroline: so they swallow emergent hit. right now the investor base is having to swallow serious headline pressure. we are being whipsawed by the latest -- we don't know whether this could suddenly on a dime spin into the green. we are off by 2.5%. how do you as a long-term investor hold the trade? >> listen, you look at where the stock is at now. we have seen essentially a 30% plus correction in the shares. in our view, at this point it is too late to sell the shares if you are in apple investor. we have told investors we think there is down side to about $155 to $165 a share. peak a 40%. those are declines we have seen

in the past from apple stock and they have recovered and hit new highs back then. we think this is a point in time when apple is going to be able to adjust to whatever new scenario we see. if after percent plus tariffs from china are here to stay, we think -- if 50% plus tariffs from china are here to stay, we think they will adjust. potentially when you look at it from an installment cost perspective, fairly limited to the consumer out there. there are number of things we think apple can do to right size or model. caroline: let's go to the other areas. many are worried about semiconductors. even though there was a carveout coming from asia from the tariff perspective. they are in the green today. is that the right way to be analyzing the selloff of late? >> it is interesting.

when we were looking at the shares this morning, specifically nvidia, we thought it was essentially overdone. you look at the decline we have seen from peak to trough on the semiconductor side of things. it is been about 45% decline. similar to what we saw from peak to trough back in 2022. one of the situations you never know where the bottom is on the chip side of things but there is clearly some very strong opportunities tied to the chip sector, specifically on the ai side of things. we think that infrastructure buildout continues. clearly, it will be somewhat ratcheted down because of the tariff situation we are in right now. nonetheless, it is an opportunity to persist we think over the next decade or so. nvidia clearly at the top of the list. when you look at the profitability of these companies on the ai trading, that is going to remain intact with some downside to the estimates but again, the reduction was seen in

share prices reflect that. ed: the bigger question to me is not just where the infrastructure bevel out continues, whether the hyperscaler moderates. profit estimates for many of these companies in the semi space are pretty clear on that. what is your call on the investment cycle? >> we do think it will be challenged. you look at a year ago and essentially the numbers continue to go higher and higher. in our view, we have probably seen somewhat of a peak type number here in the near term. we don't think you're talking long-term. as you go into 2026, we're looking at a capex increase of about 4% for hyperscalers on a combined basis, north of 30% this year. it starts to level out. nonetheless, you look at the secular themes and it is the cloud, digital ad spend, and long-term those are going to be trends continue to see higher

revenue growth. ed: how does this technology market compare to 1998, 2000, 2008 and every day of your working life that is gone before it? >> yeah, that is a great question. specifically from a valuation perspective, i think the good news is we don't have a valuation problem in tech. historically, that is been an issue. these are historically growth oriented type names and you have to worry about how much can these names really decline. i think the great thing is when you look at tech specifically what is driving it, it is big tech and big tech has massive free cash flow generation. even when you discount some of the tariff issues at hand right now, you're still talking about an apple -- if they don't offset that 20 billion or so, will generate 90 billion or so on an annualized basis. that would be your worst case scenario. when we start thinking about the drivers here of tech a discount now like you've seen here over

the last nine to 10 months on the valuation side of things come now trading less than 20 times on calendar 26 basis -- those sentiments have to go down but when we look at things here, you have to look at it from a long-term perspective. you look at the 20% or so discount on broader tech and i think overall, if you're a long-term investor, i think there is an opportunity here over the next couple of days coming weeks. you just have to be willing to lose some money in the near term. caroline: ride the volatility. angelenos you know, thank you. coming up, we will check in on tesla price. ed: a lot of people worked this on it one of the only markets open to look out was crypto and bitcoin in particular. we learned down to around 78,500. it has moderated but this divergence with gold, areas the tariff stories hitting crypto assets.

we will continue to track it. that was a lot of focus of the we can. stick with us. we will be right back. this is "bloomberg." ♪

ed: tesla trading at one point in this session below $218 per share, a price at which commerce secretary lutnick protected they would never fall to again. that decline followed 43% price target cut citing trump's trade policies and brand crisis created by elon musk. when i was reading the note, there were some very specific points which is in china, it is

not just the tariffs themselves, it is the reputation and association of musk with a policy that might drive chinese consumers to purchase domestic models. >> what we have seen from the trump administration as they have really sort of stoked this nationalistic sentiment in other countries are ready. you think about canada being a great example of this. maybe not great but an example of this where at hockey games, suddenly there is a billing of the national anthem. we don't have to go that far back in history to think of other companies that have felt the brunt of sort of nationalistic sentiment in china and felt blowback from that. i think that is what i was maybe alluding to. it is may be a risk we have not seen necessarily in china whereas we have seen these tesla takedown protests in other

countries, not something we are saying on the streets of say shanghai or beijing. caroline: calls for elon musk to step up. and to show leadership. last time i checked, i did not know elon musk cares what people think or ask of him but are we anticipating a return to leading this business rather than his role in the white house? >> i think there was a lot of hope and optimism last week right wing political reported that musk was on the cusp of stepping back officially from his roles. not only did we hear musk dispute that is say it is fake news, we also heard from jd vance, the vice president, talk about this idea doge is nowhere near done and alluded to the idea musk is going to continue to advise this administration long into the future. so even if officially he is no longer special government employee, i think this notion

that he would fully step back from politics seems like a stretch given how sort of assertive and hands-on he has been to this point. maybe he does go back to spending more time say in austin or at facilities like in california, but i think the bigger problem here is the sort of daily drumbeat of his post on x that can be really divisive. caroline: craig trudell, thank you. coming up, we will take a closer look at how the u.s.-china trade tensions could be playing into the negotiations for tiktok. samm sacks joins us. ed: markets over in asia overnight in a piece of news. this is the asia-pacific information tech index, clearly heavy declines. this as president trump said he has spoken to the japanese prime minister. also getting headlines crossing the bloomberg terminal relating to asia. trump says china must back off

34% tariff increases by april 8. he says the talks with china possible meetings will be terminated and threatens a 50% additional tariff on china starting april 9 if they don't meet in april 8 deadline. he is talking about to back off the 34% -- i think we called them reciprocal tariffs that were put in place by the chinese. caroline: we continue to see the selloff at the moment. we are dramatically back in the red on the back of that headline. we will bring you more. this is "bloomberg." ♪ only servicenow connects every corner of your business, putting ai to work for people. pfft ... every corner? every corner, nick. ow! so kate in hr ... hey kate! ... can focus on people, not process. patty in it is using ai agents to deal with the small stuff, so she can work on the big stuff. and ai helps jim solve customer problems before they're problems.

oh. so we all work better, together! my work here is done. excuse me, which way back?

leaving you lost. you need to hire. i need indeed. indeed you do. sponsored jobs on indeed are two and a half times faster to first hire. visit indeed.com/hire >> the report is we to deal pretty much with tiktok, not a deal, but pretty close, they china change the deal because of tariffs. if i gave a little cut in

tariffs, they would approve that deal in 15 minutes what shows you the power of tariffs. ed: that was president trump speaking last night aboard air force one saying china's objections to u.s. tariffs stalled the deal to sell off tiktok and keep it operating in the u.s. in the last two minutes, the president is posted on true social threatening a 50% additional tariff on china if they don't remove the 34% reciprocal tariffs china have put in place by april 8. he set a deadline. all kinds of essays are reacting. for example some have -- dragon index. go for it. caroline: president trump sang all talks with china have been terminated unless tariffs are pulled. unless there's a change in sentiment coming from china and they would draw the extra 34% they put on on friday, then all china talks are terminated

unless those tariffs are pulled. ed: i'm going to look at some of the assets. chairs like alibaba listed -- shares like alibaba listed. dragon index down almost 4%. let's get back to the story we were talking about, future of tiktok in the united states. kurt wagner joins us. with the president said last night on air force one essentially confirms what you had reported a couple of days earlier, that the tariff policy of this white house derailed a deal that was being negotiated with china to have u.s. investor ownership of to talk in the u.s. take it from there. >> this deal as trump said was close to being done. if that the framework in place. the tariffs were announced and china said, we are going to pause on this thing. the news you just shared makes me think we are definitely nowhere close to a deal now. things are getting more intense,

not less intense on this tariff war. as trump said, the tariffs work -- i would say tariffs have consequences. the deal for tiktok is in the crosshairs of this thing. we knew that would be the case i think, i'm not sure if we knew it would be quite this much in the middle of all of this. part of the geopolitical fight here. caroline: we now have the perfect voice to discuss the implications of u.s. and china on technology and more broadly. samm sacks is with us, senior fellow at new america. you have worked for tech giants like zoom and setting up their businesses over in asia, speak the language. just like siemens and setting up their business over a asia, speak the linkage. >> china anticipated the tariffs but they were shocked by the scale read what we are seeing now is a leadership in beijing is trying to both signal resolve, say we have got this under control, we have diversified our economy. but they are also still hoping

for some space for a deal. let's watch how they navigate doing both at the same time. tiktok, the deal was ready to come but tariffs derailed it. now china is saying we still can maintain leverage at this key moment. ed: i want to remind your audience the breaking news of literally the last 30 seconds which is president trump is saying all talks with china have been terminated. he threatened an additional 50% tariff if china had not removed 34% reciprocal tariff but april 8. the question, who is in the stronger position, the united states were china? >> first of all, there were no talks actually planned with china. i'm not sure where that is coming from. china has already move forward. we heard news there building a rail line linking to europe. they want to secure their exports to europe. it is going around russia. they are trying to accommodate european sanctions, looking

toward urging economies. they have signaled they have significantly reduced their trade investment with united states. they have prices in but there economy is weak and they want to try to offset the domestic pressure on the economy in the hopes that maybe trump will come around. look, we are quickly moving toward a downward escalatory spiral if trump moves forward with these compounding tariffs. caroline: if you are apple, if you are tesla that has significant revenue in china and you're implicated by the brand structure of a domestic consumer going for china right now, how do you respond? do you wait this out? you try to make changes to your business model? >> the problem is these companies attempted to change their business model with a china plus one diversifying to india, vietnam. now those transshipment companies have also been hit by tariffs and i think multinationals are reeling from that. same in the fashion industry. there were double producing lines to countries that are now impacted by the tariffs.

the prices are going to be passed as the consumer. multinationals will be hurt in the process. ed: quickly back to my same question, who has more leeway here to put their economy through pain? china or the united states? >> what do you do when both countries are under pressure domestically? i think the united states came at this from a very strong position of their own economy while china was weak. and now that may flip. ed: samm sacks, new america senior fellow, perfect guest on this let's call it historic monday. caroline: breaking news headlines. coming up, could a your iphone price hike from apple become into the united states? angelo zeno thinking there might well be from the impact next. we keep an eye on apple off by more than 5% after the latest breaking news that it seems as though trump is saying more tariff pain to china unless they moved back from the recent

response. 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.

caroline: welcome back to "bloomberg technology." i'm caroline hyde in new york. ed: i am ed ludlow in san francisco. let's talk about the market. whipsaw, volatility, gyrations, call it what you will. the breaking headlines of the last 30 minutes arepresident trump talking on to social about negotiations ending with china. the nasdaq is now down 1.9%. it is probably better example find in some of the single movement names. in the context of tariffs, there

is a big focus in the research notes and the activity on social media around the mag seven names. because of their exposure in terms of revenue outside of the united states, nvidia is a name that has swung from a significant loss to a significant gain, now slightly softer. apple down 6%. we will get two more about apple with mark gurman in a moment. it is very hard to piece where you win and lose in this market but mag seven is interesting if you think about where their businesses are around the world. caroline: and the threat of ongoing headline risk is one investors are having to navigate. case in point the last 30 minutes trade. let's discuss it with isabel lee on those who control the stock market, the big owners. blackman has been speaking out, weinstein, a long list. how have they see in the move

shift away from them of late with trump's commitment to tariffs on china in the last several minutes? >> i want to point out this intraday gap of 7% is the largest since 2020. the whole of the country and the world is affected but especially the investing class with 10% of americans or the richest 10% invested in this. it does not mean the 401(k) is now a 201 (k). vix jumped to 50. even fed cuts are shifting by the hour. it is an exciting market. we were just calling people and everyone was really worried. that was the common thread. ed: team in the control room, let's bring up the pictures from last wednesday when president trump walked out with the chart of death. there is. there is the president.

countries listed by tariffs and reciprocal's as well. anecdotally, some of the things he had were some of the most astonishing things i have seen in print journalism. >> we have a senior wealth advisor saying this is one of the most frustrating he has seemed. jay hatfield was saying this was unambiguously stupid and there is no reason to cause a trade war like this. we had wealth effect for two years. everyone was feeling flush and happy, taking vacations, but now the exact opposite. that can have real implications on the economy. if you look at the 401(k), your retirement, or investment in general, you may not want to take the vacation or by big appliances. if you are an average american, a 20% i is still significant. if that is your whole nest egg,

it is a lot scarier. ed: brilliant reporting. good to catch up. thank you very much. let's get back to apple. after years of avoiding iphone price hikes in the u.s., apple may need to concede it's $999 flagship model pricing as tariffs hit production. let's go to mark gurman. this was the subject of this week's power on. apple has not raised prices. it has removed the bottom tier of handset. what is next? mark: there is precedent for apple raising prices outside of the u.s. we have seen it in the u.k. we have seen price adjustments in the european union. we saw 25% iphone price hikes in 2022 in japan, some adjustments in canada and australia. but you are right, in the u.s. it has been pretty stagnant. one of the only things in the

last decade of the technology world that has been consistent. but given the tariffs, something has to give. there will be an adjustment was suppliers. they will eat some of the costs themselves. they will make supply chain changes, but ultimately they will have to make price adjustments probably with the iphone 17 launch later in the year. this will be a big change for apple. it is a big shift but they have ways to help the consumer. they have a trade-in program. from a consumer standpoint, it will not be a massive negative. we have seen some analyst reports and commentary over the last few days. i saw one website claim a made in the usa iphone would cost $30,000 per unit. i have seen endless notes saying a made in the usa iphone could cost $3000 to $3500. the good news is these are misguided.

apple is not moving production to the u.s., not for the iphone. you are going to see movement to the safe havens outside of china that are going to get hit with tariffs but less so. prior to trump's post earlier today, a 50% tariff. india was at 50% of the size of the tariff on china coming in at around 26% as opposed to the prior 54%. that is a big improvement. vietnam is in the high 40's but that is an improvement over the 54%. they have been stuffing the u.s. channel the last several months with more units to avoid those tariffs. caroline: can i get your expertise on what tim cook is thinking as well? we all thought he was a marvelous politician himself the way in which he managed to navigate the previous administration. how much do you think he is desperately trying to get some sort of a carveout? mark: fairly desperately but it seems like trump is even more emboldened in his second tour or

his second term. he is doing whatever he wants at this point. does not seem like he is working with companies on exemptions. does not seem like he cares about who showed up to his inauguration. does that seem to care apple said they will invest half of $1 trillion in the u.s. basically because of him. he is just doing whatever he wants. he does not seem like he is taking the impact into account. ed: how this is putting into markets and stock analysis and then there is how it is playing out in the culture, how everyday people talk about maga and tariffs and apple. this is a video from a post we overheard on wall street, and i am not sharing it with you flippantly. they are suggesting in the future wall street analysts will quit and start assembling iphones in the midwest as far as i can tell. you said that won't happen. explain in 30 seconds why. mark: there is certainly -- they have the right to quit their jobs and become manufacturing

workers. i don't anticipate apple moving outside of asia in any considerable way. the one thing i see them doing is decentralizing their supply chain, but i don't see that coming to the u.s. i think you will see more production in parts of south america. right? maybe parts of europe. may more parts of india -- maybe more parts of india. but i don't think they are coming anytime soon. caroline: thanks for a good meme. let's take a quick look at what is happening in semiconductors now because throughout the trading day we have basically been in the green. whipsawed somewhat. nvidia up 1.5 percent, shaking off the anxiety around the further tariffs come in china's way if trump is to be believed on truth social. broadcom up 3%. peter is doing a tour of the u.s. at the moment.

you are here with me in new york. the chip sector has exposure with the supply chain to asia. why are they managing to shake it off a little today? peter: the volatility is surprising. i thought i knew what the tariffs were walking to the set and they changed on my way over. we know taiwan will get hit and china is looking at tariffs at this point so there are concerns about what exactly those costs will be as products move into the u.s. there will be an exception for the chips themselves. at least so far we have seen the white house carveout this exception for actual chips, but there is no exception for the products. tsmc makes products for apple, as mark gurman was referring to earlier, and nvidia in particular. it is not clear what those products are going to do when it comes to tariffs. you may see some exceptions there. we believe nvidia's servers coming to the u.s. will be exempted from the tariffs, but

it is not clear. the white house has not given clarity on that so far. ed: it is an amazing point that many do not understand specific policies related to the tariffs. the other part is everything your team has reported for the last two years which is the united states wants to have more semiconductor manufacturing but they take time and billions of dollars to implement and build. where are we in the process? peter: you are talk about companies trying to sidestep the tariffs from the trump administration. apple has been very good at this. look at tsmc. certainly not as high-profile but they came forward already spending $65 billion on-chip capacity in the u.s. they promised to spend another $100 billion in the u.s. you would think they would be one of the companies to get an exemption but so far the trump administration been holding pretty firm and it is not clear how they will be affected as they make chips in taiwan and send them to the u.s. still they have the bulk of their manufacturing in taiwan. they need to be able to send

those chips someplace else and come into the united states. tsmc is making progress in building this geographic diversification, but they have not made that much progress so far. caroline: what is so interesting is tomorrow we get sam some preliminary revenue. it will be down. they are in the line of fire. and we are worried about ai infrastructure bubbles that we were talking about even before this. how much are we dialing up into what already is a feeling we are over allocated to the chip sector? peter: that is the big question with all of these huge investments into ai and data centers in particular. we know the hyperscalers are spending tens of billions of dollars of that capacity but we don't know what revenue is sitting on the other side of it. so trying to get insight into that. samsung will talk about their progress of making memory chips for ai. they have been behind in terms of building that capability come appearing up with nvidia at this point -- capability, pairing up

with nvidia at this point, but we will see tomorrow any indication of the ai demand is in the end. ed: peter in new york, thank you so much. coming up on the program, market turmoil is causing companies to rethink their ipo plans. greg martin joins us to talk about the appetite for growing public. caroline: yeah. we take a quick look ultimately on what has been happening across the board. we are currently off on the nasdaq 100 by 0.4%. this is "bloomberg technology." ♪

ed: this is "bloomberg technology." you are looking at a live shot of the principal room. tune in with an interview on senator elizabeth warren on the balance of power this afternoon 4:30 p.m. eastern time. this is bloomberg. caroline: let's turn to another side of the markets right now because 2025 was supposed to see

a rebound in ipo demand, but the market wrote following trump's tariff announcements has left several companies to pause their plans. here to talk about this is greg martin. rainmaking was meant to be on, and now we understand it is a pullback because these markets are treacherous. are all ipos on ice? greg: thank you for having me on. i was hoping to talk about the excitement we would have coming into part of hitting the road and hopefully a reemergence of the ipo market, but the worst thing for the ipo market is uncertainty and instability and that is what we have in spades right now. the vix approaching 50. it is crazy. it is a huge wet blanket on the ipo market. caroline: stubhub, klarna, chime delaying. as others are waiting in the wings, we are discussing maybe there will be shein, discord,

many in the markets. do we think there has to be a step away for the entirety of 2025 as it stands? greg: i think that is strong. i think it is a little bit wait and see. we are definitely in pause mode. people want to see what materializes. i remain an optimist. i am hopeful trade deals get done but if this persists for a long time and we start to have fears of a global recession and trade wars, it could push this thing considerably to the end or next year. i think it is up in the air. as we pointed out, stubhub have delayed. chime, circle filed last week. it is wait and see mode so it is at least a quarter of a pause. ed: what is interesting -- let's bring those names back up.

a lot of people work at those companies and have a broad base of investors. many of them watch this program. does this pause in the ipo window opened up the secondaries market or put pressure on the companies to get employees liquidity in different ways? greg: absolutely. we have had a huge drift of liquidity since 2021 frankly, and people are waiting for the ipo market to open up. we have started to see companies do tender offers to alleviate some of the liquor departure, but there is still a ton of liquidity pressures that persists in this period of fear in the market. employees and workers in all of these companies are starting to think i would like to have in the more of my net worth in cash so i think there will be a lot of pressure for companies to enable secondaries trading so i expect secondary trading to happen but the flipside is investors when they buy secondaries, when they buy into these private companies before they go public, they want to see

it in the future because they start to think about liquidity because there is a trade-off there. we are going to see more liquidity pressure but will also see a bit of a pause on-demand so it'll be interesting to see how the market plays out. ed: is this an america problem or a global market problem for ipos? greg: it is a global problem. this is something that hits everybody everywhere in every part of the world and needs to be sorted out. we are seeing every market affected by this. the united states is the center of it all of course, but everyone is affected by this and it needs to get sorted out or we could have long-term issues. caroline: india was really active. i want to see where the blame lies because briefly, one was not accepted with commands in the market and has since rallied a bit but was this already in the making? greg: i don't think it was necessarily in the making. it was a unique story that had customer concentration issues, a huge amount of debt, and it has

gone up well since the ipo and is still up about 20% despite the major market pullback last week, so i don't think this was necessarily in plate before coreweave. we are not certain which direction it will go and that is why the market is in pause. ed: greg martin, thank you very much. stick with us because coming up we will go back to tariffs to discuss what the eu response could be and what it means for attack. that is coming up next. this is "bloomberg technology." ♪

>> the eu remains open to and strongly prefers negotiations. it will not wait endlessly. ed: that was the eu trade minister. trade ministers from the block have been meeting in luxembourg and discussing how they should respond to trump's tariffs. for more, let's bring in mike. that is the thing about tariffs. they can go both ways. there is a response. what do we know about the eu position as it stands?

mike: as we heard, they are willing to wait a minute but not for too long. they want to see how the markets play out in washington and whether it might cause the trump administration to start rethinking what they have applied, not just a 20% across-the-board tariffs trump unveiled last week but the measures targeting autos that took effect thursday and the levees that took effect previously against steel and aluminum. taken together, they have really angered officials in the european union and prompted calls for a strong response and a potential retaliation that could take aim at america's biggest tech companies. this would be from a measure known as the anti-coercion instrument. that could result in higher taxes, especially through the digital service tax against american tech giants like meta, google, and others. caroline: the eu will be watching closely what has just been posted on truth social,

from threatening more tariffs on china because of their tough response. so how does that you never get not having further tariffs in their direction? mike: they are having to walk a tight rope here. resident donald trump warned both china and european -- president donald trump one both china and the european union would retaliate against them over any reprisals they have. china responded quickly to trump's across-the-board tariffs, hitting all chinese goods with heavy tariffs of their own. because the european union has waited a moment, they have a chance to see how the possibility of a reprisal from the u.s. could play out. ed: want to think about materially how this impacts technology companies. apple makes some products in ireland. intel has something in ireland.

that sort of physical component, mike. mike: it is the physical components, but it is also the whole demand-side question twoo. if there is a chill in the global economy, overall bump in inflation, that will also weigh on global commerce and anything happening on these shores if it is imported to the u.s. or even if it is just consumed in the u.s. tech companies like every other business across the u.s. will start to feel it. a lot of the tariffs are paid here consumers in this country. it is not just as the president says those countries paying the cost as he sees it. caroline: all stock markets currently down. thank you. let's look at how the markets have fared. it has been ugly in europe. we think more broadly about the u.s. just in gyration boat at the moment. we are in a bear market and will likely enter the bear market on the s&p 500.

that does it for this edition of "bloomberg technology." we really are speaking once again with ed ludlow back in the fold in san francisco. a joy to have you back on. ed: thank you very much. good to be back. this is "bloomberg technology." ♪

you think those phone guys will ever figure out how to keep 5g home internet from slowing down during peak hours? their customers have to share a wireless signal with everyone in their area. oooh. -you know, it's kinda like when you bring a really big cake for your birthday, and then there is only a piece left for the birthday girl. well, wish her a happy birthday. happy birthday... -it's... ...to her. -no, it's me. have your cake and eat it, too. don't settle for t-mobile or verizon 5g home internet. get super fast xfinity internet you don't have to share. forty's going to be my year.

>> welcome to "bloomberg markets ." i'm scarlet fu. in a few moments, larry fink will be speaking at the economic club of new york. we will bring you his conversation with erik schatzker in a moment. this is happening as investors adjust to president trump's remaking of the postwar global order through tariffs. u.s. stocks are off their lows but still selling off for a third straight day. here is a snapshot of trading right now. the s&p 500 initially fell