Wall Street Breakfast Podcast: Alibaba Dips On Apple AI Heat

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Alibaba (BABA) shares drop after report of U.S. scrutiny of Apple AI partnership. (00:22) General Motors (GM) is said to push for revoking California’s EV mandate. (01:45) China imposes tariffs on some plastics from U.S., EU, Japan and Taiwan. (02:44)

This is an abridged transcript.

Shares of Alibaba Group Holding (NYSE:BABA) fell on Monday after The New York Times reported that the Trump administration has raised concerns over the company’s potential deal with Apple (NASDAQ:AAPL).

Shares dropped as much as 4.8% in Hong Kong, leading declines on the Hang Seng China Enterprises Index.

The NYT reported that the White House was scrutinizing Alibaba (NYSE:BABA) and Apple’s (NASDAQ:AAPL) recent agreement to put Alibaba’s AI on Apple’s iPhones in China.

The news delivers another setback to Alibaba, whose shares have been declining in recent sessions after its quarterly revenue fell short of expectations.

In February, Alibaba’s Chairman Joseph Tsai said Apple’s iPhones will use his company’s AI technology.

Apple had been working with other Chinese tech companies, including Baidu (BIDU), on bringing Apple Intelligence to China.

The company also considered working with ByteDance (BNDCE), the owner of TikTok, Tencent (OTCPK:TCEHY) and DeepSeek (DEEPSEEK). However, DeepSeek was ruled out because it did not have enough manpower and experience to support the iPhone maker, The Information had reported.

The iPhone maker’s sales from China fell 2.3% in the quarter ended March 29, as it struggled to fend off local rivals including Xiaomi (OTCPK:XIACF) and Huawei Technologies Co.

General Motors (NYSE:GM) is urging lawmakers to block California’s ambitious zero-emissions vehicle mandate.

The Wall Street Journal reported Sunday that GM (NYSE:GM) sent a message to thousands of employees last week calling for help in lobbying U.S. senators to overturn California’s regulation banning new gas-powered car sales by 2035.

The rule, adopted by 11 other states, is now at risk as Congress prepares to vote on revoking the state’s ability to set its own emissions standards.

GM, once an early supporter of California’s goals, is now warning that the rules don’t reflect current market conditions and could undercut affordability and choice for consumers.

Although GM (GM) set an internal goal in 2021 to end sales of most gasoline-only vehicles by 2035, slowing EV sales and shifting political winds have altered the company’s calculus.

China announced on Sunday that it will implement steep anti-dumping tariffs on imports of POM copolymers, an engineering plastic widely used in manufacturing, from the United States, European Union, Japan and Taiwan.

Reuters reported that the decision concludes an investigation launched in May 2024 by China’s Ministry of Commerce, which followed shortly after Washington escalated tariffs on Chinese goods such as electric vehicles and semiconductors.

POM copolymers, valued for their strength and durability, are often used as metal substitutes in automotive parts, electronic components and medical devices. The ministry determined that imported products were being sold below fair market value, harming domestic producers.

The new tariffs vary by origin, with U.S. imports facing the highest duties at 74.9%, while European goods will be taxed at a 34.5% rate. Products from Japan and Taiwan are also subject to similar anti-dumping measures.

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Catalyst watch:

• COMPUTEX 2025 with its AI Next theme will be a major focus of the tech sector. Over the four-day conference, NVIDIA (NVDA) CEO Jensen Huang and Qualcomm (QCOM) CEO Cristiano Amon will deliver keynotes. Other presentations are scheduled from leaders of Arm Holdings (ARM), Intel (INTC), Adobe (ADBE), Cadence Design (CDNS), Infineon (OTCQX:IFNNY), Seagate Technology (STX), Compal (OTCPK:CMPCY), and NXP Semiconductors (NXPI).

• Coinbase Global (NASDAQ:COIN) will be added to the S&P 500 Index before the start of trading. Analysts have pointed to the development as a milestone for the crypto industry in general. Shopify (SHOP) will become a component of the Nasdaq 100 at the beginning of trading.

• Microsoft (MSFT) will hold its annual Microsoft Build conference. CEO Satya Nadella will give the opening keynote on Microsoft’s vision and AI strategy. Analysts think the deep dives into Microsoft Copilot, new AI integrations across Windows, Azure, and Microsoft 365, and practical demos of AI-driven development tools could perk up interest in the stock.

• JPMorgan Chase (JPM) will hold its annual Investor Day. Senior management is expected to provide updates on the company’s strategy, financial outlook, and business segments.

• The four-day Dell Technologies World event will begin. CEO Michael Dell will be one of the featured speakers.

Now let’s take a look at the markets ahead of the opening bell. Dow, S&P and Nasdaq futures are in the red. Crude oil is down 0.4% at $62/barrel. Bitcoin is down 3% at $103,000. Gold is up 1.1% at $3,239.

The FTSE 100 is down 0.6% and the DAX is down 0.1%.

The biggest movers for the day premarket: Reddit (NYSE:RDDT) -6% — Shares fell after Wells Fargo downgraded the stock to Equal Weight from Overweight, citing that recent user disruptions are likely to be more permanent as Google accelerates the rollout of AI-powered search.

On today’s economic calendar:

• 8:45 am New York Federal Reserve Bank President John Williams will participate in moderated discussion on the economic outlook before the Mortgage Bankers Association Secondary and Capital Markets Conference.

• 10:00 am U.S. Leading Economic Indicators