here is tom giles. what do we know about this event on the back of the smartphone event? ots of new products in time for the holidays. it's a crucial selling season for apple, as we all know. it has been a few years since they announced something there. don't often announce stuff outside of cupertino or san francisco. they did have one education related event in chicago earlier this year. they are branching out somewhat but it is still not a regular occurrence. ipad, they will bring some of the features of the iphone x and face id for example to the ipad line, bring some more excitement to that. as you know, ipad was a great seller out of the gate, but it has since been kind of cannibalized by more recent products like the iphone. emily: in that event in chicago where they unveiled education software, that will power sales of the ipad. apple has also pitched this app for education into schools as well. tom: schools are an area where apple really dominated for a long time. but lately, you see schools getting into the chrome book. emily: they are cheap. tom: they are, they a

uper tom giles is here and this truly appears to be the mother of all all true ndeed it is as we have, what do we super micro, tell us more about this company. tom: they are as you said, one makers of mother boards, a crucial component to the servers that they also and these end up in data centers around the world. there has been so much demand, as so much more digitally, is sent more information scored, more computing down in the cloud. these companies around the world like apple and amazon have had really beef up their data centers which includes buying thousands and thousands of centers. one of the providers is super micro. are : and their servers manufactured in china? tom: that's right, that's right. ometimes in their own factories, sometimes by subcontractors. mily: tell me how super icrofits into the supply chain infiltration. tom: investigators have told us that -- sorry, investigators have told us that a unit of the army, very beration specialized unit worked on creating this. hey would basically find their way to work with subcontractors orking for super micro, find a way to

we're joined by luke kawa and we have tom giles.uke, talk to us about what you see in the tech part of the selloff. are there signs this will be lasting? luke: one thing that is a big concern for investors is that nothing is holding up among the big weights in the nasdaq 100. everything is off 5% from the s&p 500's high. your apple, your intel, and also comcast. there is a lot of damage, widely spread. this is a time where we are talking about in treating companies on an individual basis in the market. it's a time when realized correlations are supposed to be falling. that is not happening. those correlations are near their highest for the year. they are being painted with the same brush which is generally downward. what is caused for concern is that even if you perform well in terms of earnings growth, -- the big concern is that you are not willing to pay as much in earnings as people used to be. it has come down for the nasdaq 100, but the premium to the market is still at its highest point in 2017 and higher than any point in 201

tom giles, our executive editor of bloomberg tech, thanks so much.ld note that bloomberg l.p. has been a supermicrocustomer but found no evidence that bloomberg has been affected by the hardware issues raised in this article. coming up, a continued surge of u.s. listings by chinese company. tencent music is filing for an i.p.o. we'll talk with an investor in the company along with spotify. this is bloomberg. ♪ emily: in i.p.o. news, climbing in its trading debut after raising $237.5 million in its u.s. initial public offering. they sold 12.5 million shares for $19 each, a year-and-a-half ago, they took a private funding round from soft bank and set a goal to sequence 1 million cancer patients in the next five years. bloomberg's i.p.o. reporter alex caught up with the c.e.o. and asked how that ambitious plan is going. >> it's going well. we have sequenced tens of thousands of patients and have a lot of opportunities behind those. we're seeing tail winds from medicare reimbursement and lung cancer. we're seeing a lot of private payers covering the test

we have tom giles live in the san francisco bureau to talk more about what happened today. ok at what the earnings report over the last couple of days, is the tech story the growth story we have seen out of these large names? is that still intact? tom: on one hand, these companies are still growing at the pace that many companies around the world -- it is the and the of many companies to see the double-digit growth consistently that you have seen from the likes of amazon and alphabet and will continue to see. the challenge is that these companies are priced for perfection. we have seen the stock prices through the roof over the last several years. the nasdaq, tech industry, has really been leading some of the market's biggest gains. in order to continue to justify the stock price going through the roof like that, you have to see companies exceeding expectations. what we saw in the case of alphabet and amazon yesterday, it is companies that are not quite meeting wall street's very high expectations. this is the second quarter back to back that the revenue forecast for amazon

emily: tom giles, much. that's all for this edition of "bloomberg technology." . tune in tomorrow.ak down the proposed internet bill of rights. i'm emily chang from san francisco. this is bloomberg. ♪ this is bloomberg. ♪ comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. haidi: welcome to "bloomberg daybreak: australia." tory: we are counting down asia's major market open. ♪ haidi: these are the top stories we are covering in the next hour. u.s. stocks fell on continuing unease on trading growth, oil falling to its lowest in a month with tensions and saudi arabia. president trump says it looks as if jamal khashoggi was

i want to bling in tom giles. what is so significant about this new reporting? it shows the supply chain remains under threat in the chinese have ways of getting at the components that end up in our data centers. researchers,nce, working on behalf of this , found aompany slightly different type of manipulation, but hardware was manipulated. hardware that originated in china and made its way into the u.s. supply chain. it had been manipulated at its origin in china and was found out and has been removed. indicateses is it that parts of the supply chain remain vulnerable. emily: you have a researcher that has come forward, named in the story. tom: he is putting his reputation on the lined and talked about what they found, what happened and how they reached the conclusions they came to. we've run them by other people run the documents by people who understand how this works and they indicated his approach makes sense. inly: what was different terms of how this hardware was compromised from the previous report? tom: previously, this has to do with ethernet connectio

bring in tom giles. this story is still developing. what is significant about this new reporting?> the supply chain remains under threat. the chinese have ways of getting at the components that and up in in this centers are instance, researchers working on behalf of this telecom company different type of manipulation. but again, hardware was manipulated, hardware that originated in china that made its way into the u.s. supply chain, had been manipulated at its origin in china and it was found out and it has been removed. indicates,s is it again, parts of the supply chain do remain vulnerable. emily: you have a researcher who has come forward named in the story. tom: he is putting his reputation on the line. ,e talked about what they found how they reached of the conclusions that they came to. we have seen the document. through peoplem who do security and understand how this works. they indicated to us his approach makes sense. different inas terms of how this hardware was compromised from the redistrict art? the previous report? what a similar is that the supply chain originated i

tom giles in the san francisco.a must read on the bloomberg and bloomberg businessweek. supermicro, amazon, and apple have all disputed our stories, and those denials are accounted by current and former security officials who detailed the discovery of the chip for this story. more reaction to the revelations next. a chinese strategist joining us. shery: also find out how foreign businesses can prosper in china despite these ongoing trade tensions. the brazilian currency raising losses as markets speculate on the upcoming elections. we will be live in sao paulo later. this is bloomberg. ♪ haidi: welcome back. our next guest says current china tensions are not down to trade deficit, but go down far deeper. studying the relationship between the economic giants is becoming ever more difficult. he is a longtime advisor to the chinese government and the author of "how china leaders think." thank you so much for your time. some people say this could be the new cold war. are in the unhappy world of self-fulfilling prophecy, where the reaction to a perceived threat on the other s

courselember and of congratulations to tom giles.e on the story, check out the cover of bloomberg businessweek. breaking news from costco. their earnings, we shot revenue up, but what is interesting, going into their statement, the company is completing an assessment of their internal control. that in the areas of user access, a program change management over certain i.d. systems. they say this has not affected any misstatements identified but processes remain. romaine: that's interesting. offline: we see after hours by 3.2%. this is bloomberg. ♪ joe: so much news today, rate selloff, jobs report tomorrow, but the biggest story is this tweet that just got tweeted by elon musk. i think you meant to say -- pretty aggressive. sec so hard. the romaine: i thought we were in this new era of elon. caroline: what to do you put out recently? the not to my nature hip-hop number. joe: he is who he is -- romaine: he is who he is. joe: he already settled so you can do whatever he wants. romaine: we will see what investors do. they're down 2% afte