U. S. Unemployment about 20 , nearing the 25 we saw during the great depression. The house is set to vote any minute now on this additional relief package that would release 300 billion in funds for Small Businesses. I want to bring in taylor riggs. I want to start with this news out of gilead. Having the s p 500 was some strong gains right out of the gate and then it dipped into negative territory two or three times the lot of the volatility and the weakness coming off the headline we got. It was a Financial Times seen the that they had who accidentally leaked results from a chinese trial. The drug failed to show a positive result. From thely removed it website but the damage was already done. Gilead came out and said the study of the results accidentally published were mischaracterized. The trial had to stop because not enough patients could be found. The results are inconclusive. Damage to gilead scientists and damage to the rest of the market had already been done. It shows you how sensitive all markets are. I want to talk about intel. Intel reporting after the bell, also withdrawing its forecast for the year, like we have seen a number of companies to. What are the signals we are saying about what this pandemic has meant for chipmakers . Taylor the stock index was up 6 yesterday and it underperformed the rest of the market today. Instruments, mixed results. Analysts were looking at intel for some direction on the demand for chipmakers. It did have an upgrade coming into the report, i would highlight that intel on an intraday basis was done about 1. 3 quarters percent. A lot of this is hard to explain. They had really strong First Quarter revenue, Second Quarter avenue also topped estimates Second Quarter data also topped estimates. The Datacenter Group was stronger than accepted. The pc business, as we are working from our homes, a lot of strengths in the cpu chips. The earnings outlook is uncertain, and that is what is driving the postmarket action lower. They are saying that Gross Margins next quarter could be weaker. It is all of this uncertainty that is weighing on what otherwise looked to be a strong report. I would imagine that is the case with all of these chipmakers. All of these companies are pulling guidance. There is a lot of concern about the supply and the demand dynamic of the cpus to further complicate the story. Emily target and amazon have been the winners for the week and we also had a report from ubs showing that printing that 100,000 Retail Stores would be wiped off the map by 2025. What are we seeing from targets earnings that might give us clues about the future of retail . Taylor target is a classic example. Their online sales, the First Quarter, rose 100 in april alone. Digital Sales Revenue is up 275 . It shows the shift that target has been so successful in doing, in pivoting from the foot traffic to the online presence. The ceo put it correctly and said, it felt like cyber monday every single day. It has been double what cyber monday has been. The amount of demand coming. Desklothing on some of the and some of the inventory the clothing and the apparel not doing as well. We know additional sales will be very strong. I will leave you with one more note from analyst. Amazon raising to a price target of between 900 from goldman sachs. Y are saying all of this 2900 from goldman sachs. Amazon is going to be competitive and build that deeper moat around all of their businesses once this is over. Emily we will be across amazon earnings next week. Taylor, thank you so much for that update. A scoop on apple, apple will start selling macs using its own apple design chips starting next year. Mark, not good news for intel. What does this mean . Thank you for having me. The earlier discussions this could be one of the contributing factors to intel stock being down most of the day as much as 2 with the rest of the market. Biggest not the customers for intel processors. Apple switching away from intel processors tells you everything you need to know about the status of the intel cpu business. Apple feels like they found a better replacement. It is significant from that perspective, for sure. Emily how long do you expect the transition to take . Take to getwill these new chips in place and the computers on the market . Transitionle did the to intel processors, it took about a year and a half or two years. I think this will take a little longer. Jobl still does a better than apple potentially would on the highend. Start seeing will in the first half of 2021 transition to products like macbook air. Emily what does this mean in terms of apples bottom line . We are waiting on the new phone later this year that you reported on. Talk to us about how these devices shore up the overall portfolio strategy. Mark this is very important to of having muchy stronger control over its own ecosystem. They really want to build everything on their own. You can see that over time, they have been designing more and more parts so this is a continuation of that. This is the most ambitious effort. Mac processors is a difficult game, being able to build the chip for a fullfledged computer is a bit more advanced than building one for a phone or an ipad. This is a very advanced undertaking for apple. It has been in the works for several years. It will be significant for the company and the future of the company. Emily thank you so much for your reporting. Coming up, we will talk about onmps latest ban immigration and how it could the tech industry. We will take you to the white house when the briefing begins. The president says it will start around 5 45 p. M. Eastern time. This is bloomberg. Emily the house currently voting on this additional 300 billion aid that will go to Small Businesses. 484ackage totaling billion, additional funding for hospitals and Virus Testing and a lifeline for millions of Small Businesses. We are standing by and we will bring you results of the house vote as soon as it clears. I want to talk about immigration. President trump signing an executive order temporarily banning immigration. The white house has argued this move would help American Workers as the economy reopens but will it be effective and who will this actually affect . Ofpoke to the founder boundless. Example ofanother the administration announcing something that will deeply affect millions of peoples lives without the details coming out. Monday evening, when the tweet went out, 40 Million Immigrants were wondering do they have a place to stay, what is going to happen with their family and their future . It was not until yesterday afternoon that the first wave of details were released. What is your understanding of who this affects . Everyone currently in the United States is not affected by this order. The green card applications from within these borders will continue to go on. There is a couple of carveouts for spouses and minor children. Onlyhe most part, this affects family members of legal permanent residents or green card holders who are currently abroad. This is to curb job competition at a time when you have 22 million americans filing for unemployment in the last four weeks. What about that argument . Everyone is sympathetic to the plight of the americans who have lost their jobs due to the pandemic and the various stayathome orders. There is a significant inconsistency between the reported goals of this with the outcomes. Categories actual that involve work and employment are affected so that is on the temporary side, various other workrelated visas that allow people to come to the country and work, those are exempt. As well as of all of the green cards issued on behalf of work, 90 of them are issued when the individual is already in the country. Students transitioning into a workrelated situation. For the most part, the only people affected by this are spouses of green card holders. We are keeping loved ones apart. Parents and children of green card holders and parents of u. S. Citizens who are not the ones who are going to be competing in the job market. Emily you used to work at amazon and microsoft, companies that employ thousands of immigrants. The ceo of microsoft is an immigrant. Elon musk. Have ifact could this talent for critical Silicon Valley . This first order will reduce overall green cards issued in the u. S. By about 30 . It will not in the short run effect the lives of the tech workers especially across those large companies. What the administration has said they are now going to review the temporary visas and temporary work permits. These are categories that do affect thousands and thousands of people across the technology industry. Emily there are a lot of workers in Silicon Valley on visas. If those come into question, that is kind of huge. It will have a very Significant Impact on the industry. Even before it goes into play, you can imagine that the receivedity we countless inbound requests of people worried about their wellbeing and their future in this country. If you couple this with the fact , the agency that paperwork,mmigration has shut down the last couple of weeks. Any changes that involve workrelated or employmentbased, immigration categories for tech workers will inevitably come across this giant backlog of applications. The entire process is going to extend and be dragged out much longer than it used to be, which puts even more peoples lives in limbo. A number of people who are here on temporary work visas are not sure how the renewals will be processed or how it would work if they were to ever lose their jobs are transfer to another company. The administration, they are not processing applications. Emily what does this mean for your business . We are hiring because we believe in the long run. In times of great uncertainty, it is exactly when people need the most help. The amount of time we spend with our customers has driven risen drastically since the pandemic started and it is something that we believe we are obligated to, provide a source of truth and comfort and confidence to families who previously had to pay thousands of dollars for immigration lawyers or be left on their own trying to figure out how to navigate this. Emily how do you think this impacts the u. S. Economy . We know there is uncertainty. Haltedsident has immigration. In the short run, it does not change much because of the way the conflict and the embassies have shut down currently and they are not conducting interviews. People are not coming to this country right now. Except those trying to help on frontline medical work or the worlds leading scientists and epidemiologists. Emily there are exemptions for medical professionals and researchers. Know whichwe dont way this is going to go. What are you anticipating in terms of the dynamic will change . I am really worried about what i am worried about with this pandemic and what the administration is doing, especially in the long run, if we go into a world where the u. S. Is not the destination where people from all around the world want to make better lives for themselves and chase their dreams. The idea that student visas and allocations have declined for three years in a row for the first time in the number of green cards applications have started falling, it is a terrifying concept. Lessons should the u. S. Government take from that . The first is clarity matters and it is far more important during a time when there is so much other uncertainty to be as clear as possible when issuing new policies so people can best accommodate and adapt and the idea that we are announcing dramatic sweeping rule changes before the details are ironed out leaves millions of families in limbo during a time when we desperately need everyone to be as engaged and involved as we can. Emily the ceo and founder of boundless talking about how his business will change as a result of this pandemic. We are standing by for the house continuing to vote on this additional relief package. 484 billion. The initial round of funding for Small Businesses just evaporated. This is an additional round of funding. We will bring you thethe initias we have them. We will be right back with more of Bloomberg Technology after this break. Emily the house still voting on this additional 484 billion relief package. They started voting about half an hour ago. We are expecting the vote to clear any moment now. Million 310 billion dollars for Small Businesses. This has been an Historic House vote. You could see them debating, wearing face masks, and there were concerns about coming back to washington for this vote. All of this Congress People are present there today. Rising to 26claims million. Bringing the Unemployment Rate in the United States to 20 , about 5 million. Shy of the 25 Unemployment Rate we saw in the great depression. We are standing by for the daily White House Briefing. The president has said it will begin around 5 45 p. M. Eastern time, about 20 minutes from now. We continue to wait for house leaders expected to pass this packagethe new spending which would bring the amount of stimulus the federal government has approved to almost 3 trillion. Standing by for the White House Briefing. We will have that for you as soon as it begins. I am emily chang. This is bloomberg. Awesome internet. Its more than just fast. It keeps all your devices running smoothly. With builtin security that protects your kids. No matter what theyre up to. It protects your info. And gives you 24 7 peace of mind. That if its connected, its protected. Even that that petcamera thingy. [ whines ] can your internet do that . Xfinity xfi can because its. Simple, easy, awesome. [ barking ] emily welcome back to Bloomberg Technology. The house voting right now on this additional spending package, 484 billion in additional aid for Small Businesses, hospitals, Virus Testing. We are expecting us to pass the house and are standing by for the final vote. More people filing for unemployment this week, and additional 4. 4 million jobless claims bringing the total number of jobless claims to 26 billion 26 million. Many of us are working remotely using tools like slack. Joining me now, slack ceo stewart butterfield. You have been pretty open about how you have been experiencing this quarantine. Give us an update on how you are adapting, how your teams are adopting adapting now that we are six weeks into this. Tosix weeks in and starting feel the effects of the longterm. After the adrenaline wears off. It is a challenging time for many people and some of us are fortunate enough to have fewer responsibilities and others are going a little stir crazy. Confronted with a great deal more childcare than they are used to. There are bright spots here and there. People reporting spending more time with their families. There is the undeniable feeling of a lack of normalcy and the desire for more certainty and we are a bit off from that. From theantime, conversations i have had with customers, there is more of a willingness to take risks to engage if you asked executives three months ago whether they thought they could switch to work from home inside of a week, they would say have said impossible. When you have to do it, what seemed impossible becomes possible. Emily last time we spoke, you told us about a surge in new paying customers. Are you still seeing that surge . Butlix had a record quarter this quarter is as good as it gets. Give any real updates. Broadlyy looking really across the sector, we have customers very directly impacted by this. Customersve 110,000 in 100 plus countries around the world with every type of business, every segment and size. Some of those will be more impacted by the macro conditions in the second half of the year. We are encouraged we are happy to welcome many new customers. It is hard to extrapolate from where we are today to what the world will look like 6, 9, 12 months from now. Things that has been helpful for us as a company and for individual employees has been the satisfaction you get from helping. We have a significant number of the worlds top Research Labs using slack. We have slack being used to for nursingare homes. On, it as that will go is very motivating. Imagining what happens when we are back to normal, whatever that means, there will be a lot more openmindedness. We talked about organizations down pushed six months this inevitability toward digital transformation. Once you are forced to make these changes, you start to wonder what else is possible. Possibilities to become the Digital Business they wanted to become. Emily the house has enough votes to pass this new relief package. The vote is still ongoing but enough votes to pass. We spoke last time, you said you could be as long as six months for people to return to work at slack in the office. Has that timeline changed for you . It is just too soon. Of whathinking in terms when is itmum tong to feel ok to say people that they are able to use the office . It is difficult to see any kind of deterrent en masse. I was having a conversation with a customer yesterday, the ceo of a midsized bank, and he said i think it is a lot easier to manage an organization that is 100 working at home. Bere is no incentive to first. Emily meantime, we are hearing about more and more layoffs. Google slowing hiring for the end of the year. We talk about these jobless claims. Even being here on the ground in hearing what companies are doing, how concerned are you about how badly this will hit the tech economy . You went through the financial com bust ande dot this seems like it could be worse than both of those. Seems front end of this like it is already significantly worse. How long the recovery takes, that is the big question mark. Position a fortunate we have a good cash position and we want to be opportunistic and aggressive so we are still hiring. A lot of employees are reluctant to consider leaving their current job if they have one. There are challenges around onboarding in an entirely remote way, challenges around feedback, promotions, how you organize teams and keep them motivated. I think this is our seventh week and there has been seven classes of new employees who have never been able to come to the office. For now, it is fine. We are not set up for that because we have to alter the way we are operating. Contractions, Organizations Holding steady in a little bit of a more defensive mode. The president called halted immigration into this country and i know you were raised in canada. A lot of your employees are based in vancouver. What is your reaction to this . Harder. Ll make it offices in 10 Different Countries around the world. World from all over the in our u. S. Offices. I will not be supportive of this. It is a bad thing for us and a bad thing for Tech Companies and a bad thing for the country. Todayoblems we are facing is not because Foreign Workers are taking away jobs. There is a pandemic and we are in a lockdown. Someone who has benefited from the hard work of immigrants from across the country, both ceos of the company and people ,ho do every day regular jobs maybe our nurses, maybe people in agriculture, doctors, lawyers. My hope is that this is a temporary blip and we get back to being more woking two being a more welcoming country. Emily i know slack has a partnership with zoom and you have a personal relationship with the ceo. Can i get your thoughts on some of the Security Issues . Do you think it is warranted . I dont know the particulars of the situation but maybe some of the criticism is warranted. On the whole, though, it is a product i use every day. Many hours i how have spent on zoom. They are a Good Organization and they work really hard and we have a lot of customers in common. They are extremely responsive to their many hours i have spent on customers and nott respect for eric. Emily has it made you reconsider any of the ways you are Building Security and privacy into slack products . We have had a different approach from the beginning. We made a lot of deals on the basis of security. Health care, financial services, government, government contractors. The difference comes down to storing a lot more information on behalf of our customers. There is a higher threshold of security that we need to meet. Been an issue for us and we have been investing in security very heavily for the last five or six years. Companies of the few we had one hunter percent of february00 of time in because of investments we have made. Emily we have been doing some reporting about how cloud vendors and Service Providers are treating their customers. This is just the beginning of a wave of renegotiations we are going to see. We negotiate with their landlord or with aws. Is there anything slack is doing to help customers out . Yes. We have been proactively reaching out to organizations. Cancel,l number who do who let us know this is because of the current crisis. We are giving them a couple of months for free. We have been working with some of our larger customers in the most affected industries. I think we have looked at that effort of a marketing almost. It will cause us to have a better relationship with those organizations down the line. It is not going to affect every company. Aret of organizations taking advantage of the current environment. Outel like that will shake in the next month, maybe two months. Butterfield, always appreciate you stopping by to share your thoughts. Really appreciate you taking the time today. Coming up, we will be talking about zoom and some of the base some of the security backlash they are facing. We will be right back with that story right after the break. Emily more Big Companies are joining the zoom boycott, concerns about security persisting. Is our bloomberg reporter who covers enterprise software. Curious about the additional Companies Joining on. About the most recent concerns, given that zoom has apologized and made what seemed to be a number of changes. Asall of those companies well as a chipmaker have decided employeesm used by inside of the organization. Even though zoom has over the past month, under pressure for security concerns, taken a lot of steps to improve those concerns, including having waiting rooms. Each individual in a meeting has to be vetted. Passwords for meetings being mandatory. These companies are too concerned to have their employees use software but it is important to note all of these companies are clients of a different videoconferencing tool. In the case of daimler and erickson, they use microsoft software, which competes against zoom. This is really for meetings with clients, meetings with partners, external meetings and internal meetings between employees who just prefer zoom. Curious about your thoughts on whether zoom stacks up to these other companies. Significantly more insecure than some of these other platforms . Or do some of these users, are they just not taking the proper protections . You should not be putting in open zoom link out there without a password, right . There has been throughout this process a great deal of user error when it comes to zoom. Ot of the features zoom emily i have to jump in. The president is stepping up to the podium at the White House Briefing. The way in soing many different ways. I am pleased harvard and stanford and princeton and numerous other universities and colleges, Large Businesses have sent funds back to us. We are pleased to report the out. Have either not gone renegotiated. In a couple of cases, they are sending it back immediately. I think it was very nice. I want to thank harvard, in particular. Reacted quickly and decisively. They agreed that they should not be getting it. Princeton, stanford and other institutions. The bill includes 30 billion that supports small lending institutions helping countless africanamerican and hispanic american Small Businesses. The data suggest we are making great progress. 23 states, new cases have declined. 40 of american counties have seen a rapid decline in new cases. Instates report a drop patients showing coronaviruslike symptoms. Every citizen needs to maintain vigilance. This includes practicing good hygiene, maintaining social distance and the voluntary use of face covering. This does not mean we are letting down our guard at all. Diligence is an essential part of our strategy. To get our country back to work, to take our country back. We are winning this and we will keep watch very closely for the invisible enemy. With each passing day, we are learning more and more about this enemy. The scientists at dhs have released a report offering a number of insights about how the virus reacts to different temperatures, climates, and services. The findings confirm that the virus survives better in colder and drier environments. Say, we will have report you a great gave. He will be talking about how the are theacts when you numbers, you will not believe them. Covid19 have the been going on and have been approved in the United States, germany, u. K. , and china. A lot of trails are going on. We have Brilliant Minds working on this both from the standpoint of a vaccine and therapeutics. We must be careful but we will get this done. We are very close to a vaccine. We are not very close to testing because when the testing starts, it takes a period of time but we will get it done. I want to thank the head of the dhs science and technology for what he is going to be doing and what he is going to be saying, a report he is about to give. I think it is going to be heard,ng nobody has ever brandnew information. My administration continues to leverage the defense production act to increase the delivery of critical medical supplies. We finalized three contracts to produce 39 million more n95 masks in 90 days and we are using a sterilization process. Great equipment that will sterilize the masks up to 20 times per mask. That is like ordering 20 times more masks. We want the hospitals and the institutions to use it. A lot of people dont use it. They are so used to getting new masks, they do not use it. We are asking them to use the sterilization process. Up to 20 times, think of that. In addition to ramping up our Domestic Assembly lines, we have airlifted 750 million pieces of protective equipment into the United States for our project air bridge. It has been an incredible thing to watch. It really is a military operation. The Vice President is providing each governor with account by of thebreakdown privately distributed personal protection and equipment. Personal protective equipment, it is incredible and it is all brandnew and at the highest level. We are getting only the highest level. We are looking at essential gear within the states and it is being delivered two different states quickly and as we speak. The governors should know exactly what is being delivered through a private sector supply chain as well as project air bridge. We are trying to get it immediately from the plane to the state. We cannot do that, we bring into our facilities and get it to the governors. Governors can use this immediately from the plane to theinformation to ensure they gt materials where and when they are needed. I want to extend my special thanks to our nations incredible county Emergency Management teams who have been working let leslie for weeks around the clock relentlessly for weeks around the clock to help distribute critical supplies and save countless american lives. We salute these heroic officials on the front lines. As we continue to develop potential therapies, the fda has begun an effort to expand access to convalescent plasma donated from the blood who have recovered from the virus. The blood of these donors contains antibodies that can potentially reduce the severity of the illness in those who are sick. And frankly, those who are very sick. 3000 patients are enrolled in the expanded access program. I want to thank all of the people who have recovered for what they have done. They raised their hand when they barely can walk and they are saying, i want to donate blood. Emily President Trump at the daily White House Briefing talking about the progress in vaccine and therapeutics the house passes an additional 484 billion in relief that will go to Small Businesses, hospitals, and for Virus Testing. Out thatdent pointing 40 of counties have seen a decline in new cases. California saw its deadliest day for the coronavirus today. Out that 40 we will continue to listen i. You can keep watching this on the bloomberg terminal live go. That is it for Bloomberg Technology. Bloomberg daybreak australia starts next. This is bloomberg. Nowadays you do more from home than ever before. The xfinity my account app puts you in control with Digital Tools to give you the help you need when you need it. Get fast and easy answers with personalized help 24 hours a day, 7 days a week. Change your wifi password to a phrase thats easy to remember. Even troubleshoot your services on your own. Were working to make things a little easier for everyone. Download the xfinity my account app today. Good evening we are counting down to asias major market open. Welcome to daybreak australia. These are your top stories. U. S. Stocks close lower after report that the leading corner virus drug performed coronavirus drug performed poorly in tests. Oi