If need be, but get ready for things to get messy if he tries to. First, our top story, u. S. Another deepng selloff, surging as massive signs of an economic global slowdown stoke fears of a recession. And be tech driving the losses. Amazon and microsoft deep into the red. President trump rekindled the trade war with china at the start of august. The s p 500 down 1 intraday for 11 straight sessions and is now down six are sent from the july record. 6 from the july record. We are joined by an expert. A lot of blonde buying today. Lot ofes that mean a bond buying today. What does that mean . Record low, at the same time seeing a long rally to we see the inversion between the twoyear treasury yield and the 10year treasury year to for the First Time Since 2007. No, we are no longer in negative territory, however, that does stoke concerns, so what does that mean Going Forward . If you think of some of the most high beta areas of the market, tech is largely put into that group, maybe not as much software, but when you think of semiconductor stocks, even apple, they are so intertwined with china as well, some of these areas are really intertwined. Youfact of the matter, when think of the messages we are seeing, one, the inverted yield curve, sure, this time, you see flows from foreign money into bonds. Also, some say the yield curve completely is artificially lower because of what Central Banks around the globe have been doing, but in the past come it receded a procession preceded 12 to 18 months out, that does not bode well for some of the big tech names. Emily we have been talking about how this bond activity can be a sign of a recession. What does that mean for text, especially . So technically when we do see the us signs, you do not see a reaction right away. Well, you do see a reaction right away, but that is not me and the stock is completely peaking right away. Look at the Philadelphia Semiconductor index, for example, we do see a pretty state fall, falling into correction territory, now down 11 from the highs, plummeting through, 150day moving averages. Day is still pretty far away. Software,k at hardware, those two areas the thanlly fell even more semiconductor stocks. You have to take into account the gains that we saw yesterday in hardware stocks led by apple, because yesterday, we were dealing with the news that the tariffs were going to be delayed. Now we get the flip side of that, not so much about the tariffs, the tariffs are still delayed, but whenever you get a steep selloff of the market, you will see that come right back. Emily all right. Lets talk a little bit about cryptocurrency, because the week ago, we were talking about bitcoin potentially being a safe haven, and as the rest of the market was going down, bitcoin was coming up. For the last three days, bitcoin has climbed, so is that not the case . Sarah i do not know that that is absolutely the case. We have heard that statement made. When you look at gold, higher today, japanese yen higher today, very strong gains, but look at bitcoin and say, oh it is a similar story, to gold, you can look at bitcoin as a safe then, but the fact of matter is, bitcoin is extremely volatile. No one can debate that statement. To look atdifficult bitcoin as a true state haven because of the volatility that you see from daytoday, strong swings one day and then huge, huge falls the next, so i do not know if you can go as far to say that big one is a true safe haven just yet. Sarah all right, across asset reporter sarah ponczek, sara, thank you so much. The company just filed for their ipo. They are expected to raise closer to 3. 5 billion. That would make it the years secondlargest ipo behind uber. Of 690of a loss million in the first half of the year and almost 300 million lost in the last three years. Joining us with all the details, our very own l hewitt, who has ework to this w point here what was the surprise . Elle there were a couple of things we already knew. They were giving out Financial Information quarterly for the last year or so, so we knew that, for example, and 2018, to 2 billionose while making it revenue around 1. 8 billion. So there were some surprises. We got some details about some of the loan and complicated structures between the founder, adam union, who is also the ceo, one who had famously been a landlord if the properties that wework had rented, but we learned about loans the company had made him, the Succession Plan if he were no longer able to serve, that sort of thing. A complicated corporate structure, and on top of this, they are offering free classes of stock, one with 20 times voting power as another, which, even today step further than what Mark Zuckerberg and the founders of google have done. Ellen right. One, class a, has one vote for share, as you would ask, a great consolidation of power. It is all or not all but largely in the hand of adam neumann. Voting control over the company, and that is kind of by design. People who support the structure of a fed adam has the right vision, the boldness and the leadership to take wework even farther than it has been, and obviously for some of the people, they will look at that and raise their eyebrows, thinking that might be too much. Emily the other thing that is interesting is they lay out exactly how many of the buildings are fairly new. 30 of their locations are mature, as they save your 75 are two years or younger. Ellen yeah. Dr. Bin bishr the vast majority emily the vast majority of their space is relatively new. They have changed the definition of a mature location, and even with expansion, you are right, it is only 30 of their office locations. They are focused only on mature locations. They say this is where you do not have to rely that much of marketing to fill the building. That is only 30 of their portfolio. It starts to raise questions about how sustainable their growth is and how easy it would be for them to get to profitability if they stop growing. Emily and they say, and there risk factor, they may never be profitable, with we heard similar to uber and lyft. Are they excited . Ellen i see a lot of activity on both sides, the growth is really exciting, and other people cannot wait for it to go public, so they can short it, right . Emily [laughs] ellen it is a divisive stock. The price will be decided soon by the Public Markets, and a lot of people are wondering if it will meet the 47 billion private valuation. Emily how quickly do we expect it to go to market . When does the roadshow launch . Ellen we had reported that we expect a september ipo, and that is just around the corner. Emily all right, bloomberg you will be huet, covering every step of the way, thank you. Lowes fell to a record wednesday. Fallen by more than half on onefourth since its ipo. Much of that has come in the weeks of the Company Reported earnings. Uber missed earnings. Listen on the app, bloomberg. Com , and on sirius xm. This is bloomberg. This is bloomberg. Emily all right, we have often covered how big u. S. Tech companies are lobbying spending on d. C. Attic is going up. Now even the embattled chinese uawei isgiant h working as it fights for the right to do business in china. As another company is fighting for the right to do business in china. We have been brodie and our Global Executive editor for technology, tom giles. Ben, what exactly is huawei doing here, and why do they want them on board . Ben they have hired that group, and they have hired another group, federal advocates, that have ties to washington in the public and leadership, and they want to lobby on expert controls that are stopping them from buying into the u. S. Markets right now. Are close are a little bit vague about it, but law firm working with him and some other cases, and we also have Telecommunications Issues they are working with with the other lobbyist, so it seems like they are trying to break the back. Down their shut aerations last year, and now full 180 because of the resident putting them on the black fight. Like. Hat is what it seems they had gone down to three staffers and downtown washington, d. C. , a little bit over from the white house room where i am sitting now. They had basically gotten rid of their outside consultants, or they were not having been doing anything or having them spend any money. Now they have three law firms to add lobbying on to their mandate as well as the sort of trumpconnected firm, federal andcates, and michael another who is on the Top Fundraising committee for the trump reelection campaign. Meanwhile, tom, the president delay in tariffs on some goods until september, things will take effect in september. Impactthis continuing to Tech Companies continue to impact the supply chain, you have the maker of ap laptop saying they are moving their production out of china. Sense to lookakes for an alternative out of Mainland China. What we have seen over the last several months is Tech Companies looking to bits and pieces of their production, 5 here, 10 there, kind of do it around the edges. Problem that a lot of Tech Companies are encountering rain now with u. S. China relations is no matter how this gets resolved, it shows you the vulnerability of and the risks of keeping all of your supply chains in Mainland China at a time when the u. S. Havoc withan wreak u. S. China trade relations by threatening the trade war, imposing sanctions, ratcheting them up, rattling them back, there is what looks like a game happening here, and if you are reliant on china, you can not be subject to the whims of one administration or the Chinese Government on the other hand, whatever the case may be. Result ining to truly better trade relations between the u. S. And china . Is this all a negotiating ploy heading to the 2020 election . It is so really hard to tell. All that aside, if you are relying on china, you need an alternative, and i think that is what is happening here. No matter how this gets resolved in the shortterm, longerterm, u. S. Companies are saying it really does make sense for us to look outside. And so we are seeing almost every day that passes, every week that passes, another u. S. Company talking about are showing one way or another we are looking for an alternative, so you are increasingly seeing the emergence of this alternative second supply chain. You haveantime, ben, got the u. S. Government leaning on allies to not rely on huawei, to push huawei out of its plan for a 5g network, a sort of pawn in this u. S. China trade war. Are those u. S. Allies coming on board . Whose side are they on . Thatyeah, i think that map you have up there really tells the story, the u. S. Has really struggled to convince allies that they need to make this move. That it isrd reports a movement potentially with india, that india might be willing to go up against china in that particular move, but when it comes to europe, when it comes to the top allies, those countries that we share intelligence information with, it has really been a struggle, and it is not hard to see why. Huawei is cheap and reliable, and huawei keeps coming out and saying my gear has no more cyberSecurity Risks than anybody elses. There is always the possibility of backdoors. And for the most part, allies might be improper conversations, in private conversations, we are a little worried about it, but i think you are out of luck and are going it alone here. Emily tom . Tom there is a big question mark about how much of a threat while way really is, and what they they are sure of is huawei equipment it seems is pretty darn reliable, pretty good, and pretty cheap, and what are the alternatives . That is the question that is paying over the deployment of 5g. Like i mean, it seems there are no alternatives of the same quality level. Tom that is what we hear time and time again. You have people like nokia, like erickson, who do provide some of the infrastructure, some of the equipment, but is it as reliable, fast, and cheap, and the answer seems to be no. We want to see more evidence that huawei is going to create backdoors, and they are not seeing it so far. Emily is it a Security Risk . Is the question. Bloombergs tom giles and ben brody, thank you for following that huawei, in. Globalup, the alternative meet market is expected to skyrocket your competing with other Companies Like beyond meat and others next. This is bloomberg. Oomberg. Emily tmobiles closed takeover of sprint has now move forward to a vote by the federal communications commission. It is the last hurdle for the deal, you still, it can be challenged in court. Some say it will reduce competition and raise prices. Beyond meat has seen its share of hits in the last couple of now about concerns Global Growth and strength of the consumer appeared the stock is still up, though, more than 550 since the companys ipo in may. It has helped move Plant Protein out of the periphery and onto supermarket shelves. The problem with beyond meat and the alternative market is that is about to get more crowded. Roast is brand prime planning to roll out its super protein meat next year. Unlike existing plantbased markets on the market, it is using fungi to create meatless options, from chicken fingers to lobster. How is this possible . Joining us now, prime roo ts founder and ceo kimberly read. Tell us about the size and Technology Behind this product. Kimberly we are creating no compromise meat and seafood alternatives. We are using an 8000yearold japanese super food, and we grow whole food it is a and micronutrients that you cannot find in plants. Able to replicate everything ranging from lobster to be to everything in between. Emily how do you replicate it . Kimberlie the texture comes from the koji, the shape and size of animal muscle fiber. Protein, they are saying you can make everything in the same kind of mushroom . Kimberlie yes, and we have made all of that. We are able to make products like no other meat alternative company in the united states, and we are building our brand on our diversity of products and bringing into the mainstream. Emily you have not launched products yet, but you are actually asking consumers to vo te on which you should launch a 2020 online. What has been the most popular . Has by farso bacon been the most popular product. Emily really . [laughter] kimberlie ebola love bacon, and a lot of people are vegetarian e kimberlie a lot of people love bacon, and a lot of people are vegetarian except for bac on. It is important for us to listen to the community. Emily what sets you apart from beyond meat, if possible food . Kimberlie the space is growing really fast. Trail king the old some are taking a culture ancessed some are taking ultraprocessed approach, and that is a large concern for consumers and the people looking to buy these products, and we are really taking that to heart and making a product that is completely natural, not gm oh, and naturally made. I started the company in actually grew and made all of the products in my kitchen. This is reality, and this is also food that everyone can get behind. Emily what other applications do you see of this kind of biotechnology and the future of food . Kimberlie i see, in food specifically, for our technology, the options are endless, but we are focusing on meat and seafood first, because koji has that texture. Emily and you are planning to sell this to consumers directly . Kimberlie yes. Emily rather than put it on store shelves. . Why . Kimberlie i felt like another topdown way of thinking about the consumer, so we are taking a bottomup approach, so everything from the product building to how we are interacting with the consumer. What we have not launched products officially yet, we have been doing a lot to build the community, and over 10,000 people have tried our products. Emily we will be waiting for that bacon to hit your shelves next year. Kimberlie le, founder and ceo of prime roots, thank you. Willing to do it come under what circumstances . We will discuss. And the Global Market selloff. As tech is sparing faring recession fears mount. This is bloomberg. This is bloomberg. Emily this is Bloomberg Technology. Back to our top story what delay giveth, the yield curve taketh away. Both theatters worse, u. S. And u. K. Yield curves in verdict for the First Time Since the financial crisis. Here to tell us more, bloomberg techs chief equity strategist. What are you reading into this and what does it mean for tech . In a we have been correction on the s p 500 since july. This is just an indication that the correction persists. We started talking about this last week when we had a 3 correction in the s p 500 on monday. We were down nearly 3 again today. These type of panic days usually happen in the midst of bigger corrections of 10 or more. What that means for tech is tech unfortunately is one of the highest beta sectors and unfortunately one of the sectors china. Posed to as a result, semiconductors and equipment names are going to get damaged more in a selloff. I think Software Names are at risk as well only because this is a place where everyone has hidden in tech. This has been a place of support, software and services. As a result, the fact they have continued to power higher this summer, they are also pretty high data, so they tend to get thrown out with the bathwater when markets are in sort of a cell now, think later mode, which is the mode we are in now. Emily what do you think has been a bigger driver of the tech selloff trade fears or recession fears . Good question. Up until the last few weeks, it was really more about trade. We started to see pretty significant deterioration in theomic data overseas, and yield curve and the significant meltdown invades globally over the last couple of weeks would have suggested that this may be more about those trade concerns leading us into recession. It started with trade, and it has become this ongoing drag. Trade, frankly, thats the real takeaway this uncertainty is going to constrain the system that has been keeping activity from accelerating and as a result, we may start to tip over into recession and i think thats what the market is most fearful of right now. Will continue to follow markets as they open in asia. Thank you so much for joining us. Now to a story we continue to washingto