obviously baidu not obviously, but baidu has been thrown in there too. might be participating in apple intelligence. and when you think about that, that's really the story right now, right? so to me, you know, the company or the country, you know, president xi, i mean, they sat on these companies, these are their national championships for all intents and purposes, and they got a lot of room to go. i mean, from a stock perspective. but they also have to prove to the world that they are basically on par with what we have over here, despite the fact that our digital companies, for all intents and purposes, can't be there. but the story of apple intelligence, the story of u.s. multinationals going in and partnering with alibaba and baidu to me means there's more room to run. but i would actually probably be focused on baidu, despite the fact that they gave some disappointing guidance here today. >> carter, what can we believe it? can we believe the near to medium term momentum that we've seen in some of these chinese tech giants? or is this just going to le

these details we are getting about how apple will engage with chinese tech names, alibaba and now baidu in the mix, to offer ai features on iphones in china. we have that timeline by the middle of the year. that is fueling the chinese tech stocks. amid all this, there is a bit of caution, trump reportedly did single out japan and south korea. there are not just stocks gaining in asia so arehe currencies and for the offshore redmond be reversing -- renminbi reversing yesterday's rally. i thought i would put into context how chinese stocks are getting their tailwind from these valuations. if you look at this chart courtesy of mliv's merriam nikola, it shows the equity risk premium higher than peers, it makes you wonder do chinese tech stocks overall protect from the tariff noise? is that an option now, especially given the deepseek narrative that's underway. tom: equity markets in asia re- finding their mojo. avril hong out of singapore on the asian markets. donald trump has ordered his administration to consider imposing reciprocal tariffs on trading partners, as he targets a global trad

presidents' day holiday but then we resume on tuesday with fed speak from mary daly with earnings from baidu toll brothers. wednesday, minutes from the fomc and cpac gets underway. thursday, walmart earnings and the g20 summit in south africa and more earnings from mercedes and rivian. and then u.s. home sales and we look ahead to warren buffett's letter to shareholders on saturday. let us see how much value is alive and well in this market. from new york, that does it for us. same time, same place. this is bloomberg real yield's and this is bloomberg. ♪ vonnie: welcome to bloomberg markets. let us get a check on the markets. on the face of things not a lot is happening but the s&p 500 is down a little bit. the stocks are moving en masse. we have a lot of earnings ries and the chip stocks blowing as the wind takes them. so the philadelphia semiconductor index about have higher and have lower. we have the 10 year at

and baidu's. and alibaba's and others. and that's the best way to be. they're a. >> toll road to your, you know, to the. >> mobile device. >> and as. >> long as they do that a good job with that, they're going to win. >> you touched a little bit on ai and just the overall implications. how are you now that we've had some time to digest the whole deep sea phenomenon? yeah. how do you see the chips falling and the potential benefit for apple. and then do you see any other risks out there that they may fall into? >> well. >> the knee jerk reaction to deep sea, you know, now that we've had. >> a chance. >> is, is apple should benefit from a lower cost of compute. >> and it should improve the. >> margins of like their services business. >> right. >> and so. >> that's great. >> and that should. >> allow more innovation. >> even in apps and things they don't even make themselves. and then they benefit by being. >> a toll. >> road to mobile glory. right. and so that's great for them. >> the more i. >> use and the more that can get into the phone. >> the more yo

and beating of the competition that was previously binding according to reports -- baidu according to reports. tencent, another beneficiary of china's ai optimism. lizzy: avril hong, thank you for the update on asian markets. back to the earnings, earnings dropping from siemens energy, first quarters coming in, the estimate was for 12.9 9 billion euros so a beat there. first quarter revenue eight point nine 4 billion euros, 8.5 4 billion euros ended still sees comparable sales up 8% to 10%. those are the earnings given the backdrop that the shares have nearly quadrupled in the past year as the boom in the boom in ai has driven orders for circuit breakers and transformers to really service new data centers. at the same time they have had progress resolving issues with their wind turbine units so we will dig into that more later in the program. let's get back to the macro story. fed chair powell going to give a second day of testimony today, already telling congress the central bank doesn't need to rush to adjust interest rates, saying officials will be patient before using further. >>

alibaba also brought bought more of jd.com or sorry, appaloosa bought more of jd.com, baidu and b of a noting in some research today that since january 20th, chinese big tech baidu, alibaba, tencent, xiaomi are up 22% versus 0% returns for the mag seven. the mag seven, however, is 17 times bigger in combined market cap and has, of course, had a better run over the longer term than the chinese tech peers. the deadline for 13 f filings later this evening, so we'll keep on monitoring as they come out over the next few hours or so. scott. >> all right. you give us a heads up if you see anything interesting that we need to know about always. thank you. all right. we appreciate that. let's bring in now of jp morgan asset management and kevin gordon of charles schwab. it's good to have you both with us. let's just play off first the tech conversation that we've been having because tech certainly, you know, dropped way back in the categories of the sectors that were doing well. now it's had a bit of a resurgence this week. why so. >> well clearly it's not a time to drop. >> tech. >> or the m

you know, it tried with baidu. that didn't work. we've seen a rise in chinese ai. and alibaba is like right there at the top, maybe with deep seek. and now apple is partnering with them. that's a good sign. so you have to be happy about that. it means that apple intelligence is likely to roll out in the country after it got stuck, because it couldn't satisfy regulators. but again, it all comes down to how big is apple intelligence. and that's a major open question. >> excuse me. i appreciate you helping us understand all this. alex kantrowitz, thank you very much. and big technology. up next, a top technician, jonathan krinsky, is raising the red flag on one key sector. he tells us exactly what it is next. >> the number of public companies is shrinking, while the number of private companies is increasing. at franklin templeton, we are expanding access to the growing opportunity in private markets, offering the potential for greater diversification and enhanced returns through our world class specialist investment managers. we are empowering advisors with solutions

force the scrapping of the ipo of ma's fintech company, ant. >> kelly thought it was significant that baidu and those shares were selling off today, even as baba and others were rallying. so again, all the more important to watch these meetings. eunice, thank you very much. eunice yoon. meantime, elon musk's xi'e unveiling what it calls grok three today. claiming it can outperform all other ai models on the market. we've run the comps and we'll get you the key details, including how this factors into musk's face off factors into musk's face off with rival sam businesses and communities come together on tiktok. they don't show up like they do on tiktok. and i had all these people rooting for me on tiktok. empowering over 7 million us businesses. there's no way i'd be able to support this building or any of my employees. > that went from maybe a few hundred people seeing my product to millions. they rely on tiktok to succeed. i don't think i could have gotten this far if i didn't have that kind of community. small businesses thrive on tiktok. (♪♪) on nordvpn and encrypt your online traffic. g

revenue to increase to 9% from 7%, watching for how can alibaba fend off the competition when you've had baidugy is standardized, how do you stand out? tom: it performs well but it's another to get return on investment and analysts are getting cold feet. saying take some profit. annabelle: yeah, uh, you're -- you're looking at a stock that has risen in february so it's been a short and sharp rally, huge market value, you -- you -- you -- you -- you are trading above the price target which is unusual so some say take profit. jd morgan says trim exposure to china ai proxies like alibaba, alibaba health, tencent, tactical plays like china property. they are optimistic on ai, pointing to a big test for china tech names, can they -- can they stand up to expectations? high bars that -- that they have to attain. mark greenfield said alibaba is asia's nvidia story and that's how prominent they will be for the broader outlook. tom: quite the comparison, annabelle droulers. excellent preview of alibaba earnings. to the mining space where rio tinto closed lower after annual profit missed estimates, under

names like alibaba and baidu and didi and jd.com.es specifically because it looks as though mr. tepper has increased his positions in china as it relates to china and technology. and you remember that now famous interview from squawk box, where he came on and essentially said, buy everything china related. that's me paraphrasing it. >> more than he did. he say he. >> said everything. he said everything. okay, >> etfs. >> i would do futures, everything. okay. so apparently he's putting his money where his mouth is and he continues to do just that. so what you you know i think so smartly referenced a little while ago carl the change in time from when china was viewed as uninvestable to a real moment in time, where tepper came on our air and said, no, in fact, it is very investable and buy everything now. he is a continued believer in that story there, despite weakness in the economy. and here we talk for, you know, 20 plus minutes about trade wars and the like. china has made it clear that they're going to do whatever they have to do.

we got some big names reporting their results next ek baidu, oxy, carvana and walmart set to deliver eye on the implied moves in some of the biggest names, and a trade on one stock with a new ticker. mike walk us through it. >> yeah. so carvana obviously this is one that has been really whipsawed over the last several years. that one's implying a big move, about 14%. baba is implying a move of about 10%, which seems big. but then consider the stock's up about 50% in the last month or so. toll brothers implying a move of about 6%. walmart implying 5%, which is actually pretty big for a company that doesn't usually move that much on earnings. oxy's implying a move of about 4%. and the new ticker is x, y, z. that's that's block, which used to be ticker skew x. y z was always our favorite sort of generic ticker when we were saying buy x, y, z stock. but you can't do that anymore because now you're talking about block. i think you could actually get long. this one, it looks a little bit weak technically, but the fundamentals i kind of like it. i think you can make sort of a hedged upside

chinese tech giant baidu has posted fourth quarter revenue of $4.7 billion, a 2% decline overall.but still, that was ahead of expectations. the firm said it is navigating near-term pressures, but is optimistic that its ai investments will pay off this after the stock had $2.4 billion wiped off its market cap on monday after the company's founder, robin li, was not seen in attendance. as xi jinping met business leaders at a symposium in beijing. fascinating to see what an impact that symposium has had on the stock market. you've seen a major rally in a number of the tech names, but here's what it means to not be a part of that symposium, which investors have taken, by and large, to mean that the xi administration is going to take a more warm view toward the tech sector and toward private sector in general, and the expectation being that that will spur reinvestment from the vc community, which has taken a back seat in recent years. and that seems to be translating to the public markets as well. now, the hang seng tech index hit a three year high this morning at the rally that i ment

. >> of shares of companies that were not on the list, such as baidu and jd. other notable. >> attendee. >> frank. >> was alibaba's. >> jack ma. >> he had largely. disappeared from public. >> life, and. >> this came after. >> beijing had. >> forced the scrapping of. >> the ipo. >> of his fintech group, ant group. if you remember that several years ago. >> yeah, certainly. eunice, i definitely remember i think a lot of investors remember that very clearly. so i want to ask you, you mentioned jack ma. >> last. >> maybe the most notable of the ceos to be there because as you mentioned, he was he was the target of a regulatory crackdown back in 2020. so in this meeting with xi and these other business leaders, was there any direct communication about the idea that this crackdown is officially over? and when she is calling for these partnerships and these ceos to display their talents? >> there wasn't any direct. communication about that. but it's all the signaling. so you had mentioned. >> jack ma. >> one of the reasons why people. >> are thinking. >> that, one of

baidu, didi, alibaba, so many others. that's a sure sign that at least in china, they recognize that trump wants to do business. that's more than we seem to know here. trump says he's in no hurry to talk to china. now, that means the chinese better be in a hurry to talk to him. chinese take them very seriously. i personally am a hardliner on this china issue. i think that the chinese communist party is either unwilling or unable to stop intellectual property theft, or stop appropriating, or our technology for their military, even if their leadership wants to play ball, they've made a killing from these unfair trade practices. so why would they stop? i know palantir stock was up huge today. on his conference call, a palantir exec said th we are at war with china and we just don't know it. you're kidding. don't we all have to presume that our phones and computers are hacked? we have to presume that tiktok has brainwashed our kids. this is not a government that can be trusted. but perhaps president trump recognizes that chin

if you look at alibaba's tianwen, which is alibaba's offering, the ai space, you just mentioned, baidu's ernie bot, you actually have a range of 8 or 9 different large language models that have come into the picture. we predicted. >> a number of years ago. >> that the large language model space would be commoditized. frank, you're looking at all the same data. they use the world wide web, the same models, the transformer model. you're going to get the same results. actually, we believe that over the next few years, there's going to be an increase in demand for the chips from nvidia, from other, from amd and from others, not a decrease. this is known as jevons paradox because although yes, initially you might think well with deep seek out, maybe it's cheaper to train fewer gpus, but over time more people can access the technology, more people want to use it, more inference also. that is when you use the models themselves, not just training the models that leads overall net net to an increase in demand for data centers and for chips. so i think it's actually a very positive impact that dee

and i think if you look at the growth in the chinese internet sector as a whole, pinduoduo, baidu, jd.com, these are companies that all have earnings growth and have since 2021 and only recently have started to price it in. technically, they're through where they needed to be on the charts. you stay long, stay longer. i'm very long. >> i agree with you on the jack ma thing. i think it's huge. it was a discount on the stock because of he was in exile, and then they didn't let them do the ant spinoff. and remember this company has 22% of their market cap is cash. that's extraordinary. >> so i really like it. >> however, all that having been said, i did sell some april 1st 50 calls today for about i think 620, which seemed to me decent. i mean, it's had an enormous run. i think it's still undervalued if it is the amazon of china. and if we do think china is turning or has it has, then i think you stay long in general. but those upside calls seem very expensive. >> to me. kind of amazing. you just you get disappeared for a couple of months. you find religion, you come back, you meet with the

everything, but about a year ago or a little, little less than a year ago, we got these reports that baiduually the one that they were looking at. and we've since heard that their chat bot is not good enough. we got some comments earlier this week that they're having a new version of it. ernie. >> ernie is all the rage like a year ago. >> and ernie bot doesn't seem to be living up to the promise. and it seems like apple has now decided that alibaba, they can at least fulfill what they need to do. because keep in mind, chatgpt is banned in china. the government has to approve it. and the stakes are incredibly high here because china, as i said, the business was down 11%. there's no sign of these headwinds slowing down anytime soon. >> they compete in china if they don't have an ai feature, if they can't use american large language models, they're going to have to use a chinese. >> and they are using an american large language model. and so the apple intelligence has its own large language model made by apple. but the other stuff that is just not smart enough to do yet they need a third part

definitely being sent directly to china to and specifically to, for example, pixels that are operated by baidua very similar organization to tiktok when it comes to pixels and trackers. and when we look at chatgpt, for example, all of the user information is staying in the american border, so no information is leaving the american server. so which was a big contrast between the two products. >> right. for sure. ivan a stick around. let's bring deirdre bosa into this conversation. she's actually got a lot of different ways that all of these users and developers are still using deep sea. deirdre, what can you tell us and how do you think they're going to react to these threats? well. >> kelly, there. >> are some. >> key nuances here. what ivan's been talking about is very real. >> and. it's very. >> important for users to understand. and i would say it makes concerns. >> around tiktok look like a. >> sideshow, an ai model. >> with unchecked. >> influence over. >> knowledge and decision making. like deep sea. that is a far. >> bigger risk. >> but it. is also. >> critical to understand the key. di

losing out to domestic rivals like huawei, apple and alibaba both getting a bump on the report, while baidu, which seemingly lost out on the deal, dropped. this is according to the information. they also reported that they actually submitted the ai features to the china cyberspace regulators, who would have to approve everything before it gets released on the phone. tim. so it looks like it's far down the line. if you believe this report. >> it's good and it's good for some of the reasons why both companies are also potentially more interesting or discounts that have been put on the company. so if you think about apple and some concern about what's going on in china, we've talked about it at nauseam, certainly in terms of handset sales, but in terms of them being sanctioned or blessed or being, you know, okay, to do business in china, this is a good sign in terms of alibaba and their ability to do business with the west. and again, that to me is the biggest dynamic around investing in alibaba because as we've talked about many times, it's not a macro call in china 40% cash. et cetera. et ce

also, notably, the ceos of jd.com and baidu were not present at that meeting.both jd.com and baidu both lower in the pre-market. at least the us listed shares are investors. they seem to be responding to this economic shift. overall. what it could mean for the chinese tech sector. take a look here. you see the kweb etf and also the c triple q etf both moving higher in the premarket both up just over 1%. all right moving on to another mover this morning we're talking about constellation brands. you see those shares are up just about 9%. now this move to the upside is for the maker of modelo and corona beer is after warren buffett's berkshire hathaway. it revealed a stake in the beer maker. it bought more than 5.5 million shares in constellation in q4, opening up a new position, creating a position of about $1.25 billion. also, you have to look here. you can see over here, big move to the downside after earnings on january 2nd. shares of falling double digits since then since constellation brands actually lowered its guidance for beer sales. the stake by warren b

would be baidu because they've already had a partnership.they were very selective. and in the end, they chose to do business with us. they want to use our ai to power their phones, potentially giving apple a little bit of an edge against some of the local competition, which we know has been a problem for apple and tesla. they have to compete with the homegrown companies. >> and i mean, bob is up from like 85 to 105in a month. yeah. yeah. so that's been that trade is definitely rocking power at. >> the. >> big board today. >> national association of water companies celebrating its 130th anniversary. at the nasdaq. >> and cybersecurity. >> company sailpoint celebrating an ipo. today we're going to talk to the ceo in about an hour. >> some reports. >> yesterday a pretty. >> healthy demand. >> we'll get into all of that. >> meanwhile, 6065 mike bespoke points out we did hold the 50 day yesterday. although they argue since january began a series of lower highs on that front. >> yeah, you've been above 6100 like three different times. i think in s

baidu reported a smaller than effective revenue drop for the last quarter.a 26% quarterly jump in cloud revenue, more than double the pace of growth during the september quarter. it was overshadowed by signs of weakness in its core search business. the french family behind meza set to receive $5 billion in dividends after a record-breaking four years. -- hermes. 100 heirs benefited from rapidly rising payouts. their wealth is estimated at $214 billion. that is your brief. jonathan: that is some real money but it has to be shared. the stock was up by about 20% last year. up 18% already this year. lisa: it is going to be shared. these get a couple billion and hermes bags. annmarie: that is what separates the family from bernard, the richest man in europe. lisa: can't find it. jonathan: up next, more tariffs. >> have you decided what the auto tariff rate should be? >> i will probably tell you that on april 2. he will be in the neighborhood of 25% -- it will be in the neighborhood of 25%. jonathan: up next, everett eissenstat joins us next. from new york, this i

. >> well as baidu. one notable. >> person, though.ding was alibaba's jack ma, and he was particularly notable because of the fact, as you guys well know, that he had disappeared largely from public life after beijing forced the scrapping of the ipo of his fintech company, ant group. guys. >> eunice, you know, there have been no shortage of false starts when it comes to at least investors hopes that there was a reversal, so to speak, in sort of the approach and the policy approach to the private sector. do we have any sense that this is not going to be another false start? >> well, it's very difficult to say. a lot of investors are very happy, but and they're hoping that. >> we're. >> going to see some policy support. he had president xi had made some comments about possible tax breaks or maybe promoting a private a private economy promotion law that could potentially be discussed as early as next week. but at the same time, as you all know, we have had false starts, and it's difficult to say whether or not president xi jinping would m

baidu is tomorrow. across some of the different business leadings. and they do have a touch point on the wider chinese economy. all of that still remains in question international investors are waking up to this raising their forecast for the china index. >> this is something we seen as the valuations on chinese stocks. the european stocks of hidden all-time -- recent low as well as the added incentive. at a fixed strategy over at mizuho. how does that all factor into the currency and the fx space. >> this is china trying to boost the economy without spending much money. it's funding the private sector but why are we are because of china slowdown. it's from the housing sector. we got some small moves there but would markets were waiting for for four years now is a big fiscal bazooka. somebody fix the housing markets problems. we've had these rumors and all sorts of things but we have not had the big moment where we go that solves the problem. i thing do well at that. we still tariffs on china but it's b

but i think what's going on while baidu's apollo is making progress and so forth, it's still rather geofenceda and from western companies altogether, and all kinds of technologies how to go about and break through into this new age with, in this case, robotaxis. so i'd be very surprised. and, you know, elon also has another secret weapon in china. his mother, maye musk, she is beloved in china, which is another big asset. >> interesting kathy, appreciate you running through it with us. thank you very much. >> pleasure. thank you mike. thank you steve. >> coming up where apple fits into president trump's tariff threats. plus we'll speak to the former canadian finance minister, a current candidate to be prime minister on this week's tariff drama. stay tuned. you are watching squawk box on cnbc. >> the most challenging. >> engineering project in the history of the human. race is our nation. >> golf has never been closer to the heart of this country. straight down exists thanks to american manufacturing and movement to celebrate all things american made. we love this game and we love this country