Volatilityews will be the name of the game for the foreseeable future. Perhaps also low volume. I want to bring in Abigail Doolittle who has been following all the action, or lack thereof. Walk us through the theme of today. Abigail lack of action was the theme on this slow summer friday trading day. There was some fluctuating between gains and losses on the s p 500, the dow, and the nasdaq, but this is the first few the first time in quite a has been true,at but this is the first day in quite some time where it did not file shoot might drop or we did see a true bump. There is reason to think that could be ahead, but today, the s p 500 up, the nasdaq managing to pull out a gain it seemed like the nasdaq might put up its first two day decline, which would be the first time in two months. Part of that having to do with biotech. Goldman had constructive comments on modernity. On the week, the worst week going back since march, the nasdaq down on the week, the s p 500, the first time weve seen that since the fall of 2018. That might not be the most auspicious signal. Netflix on the week, down 10 , its worst week in a year since they had a bad quarter last june as well, reported in july. This comes on the not great second quarter, but the Third Quarter guide really weighing, that stock had been priced to perfection and it produced the worst week in a year. Despite that, he had some upgrades on wall street. We will get to that in a moment, but continuing the theme of investors rotating out of tech, talk to us about other tech names this week. Tesla has been on a roll, microsoft as well. Abigail heres the big thing out of the netflix earning report that we learned sometimes you will have a company that puts up a poor quarter in the after hours and the stock is down and then it recovers. That did not happen. That tells you investors have priced the stock to perfection. It speaksable to the expectation for very good, solid, clean quarters. Netflix didnt do that. Of some of those other country some of those other companies dont do that, that could be an issue. Tesla, its unbelievable how much the stock is up on the year. On the year, up 250 . They have preannounced deliveries for the second quarter, which somehow came in stronger than expected. Options suggesting tesla will move up or down by 13 . Its either going to be a microsoft, their fourth quarter. We will go through these and more detail next week. It could be a strong fiscal quarter. Netflix right now setting the expectation that there could be some shocking volatile action for some of these mega caps in big tech unless they put up great quarters. Thanks so much. We will be watching netflix closely. I do want to talk a little more about just how wall street receive that report. The quarter was light. Netflix has been a favorite with everybody sheltering from home, working from home, sheltering in place. Some analysts raising their price targets despite the light forecast. About wall streets reaction to the news yesterday. I will play it straight here. A toughfinds itself in situation. Lets call it a conundrum. Toestors needed somewhere store their cash and investments. Netflix barely has any physical assets. Has the ability to access all this content worldwide. So short answer, yes, wall street has been too bullish and i think management recognize that. Aats probably why we see Third Quarter subscriber forecast, trying to get the analysts to cool off a little bit. The company also promoted their content officer to coceo. How did investors digest that news today . Theyve been basically running the company together for a long time. But this is something we did not expect. I think we are seeing a changing of the guard across the media sector in general. We saw disney do a changing of the guard recently. And i think it kind of spooked them. Sure whattors are not the plan was for Reed HastingsGoing Forward. If you look at the Earnings Call from yesterday, you got a promise from Reed Hastings saying he would be around for another decade. Rbc capital says thats not a bonus to hear. And are running the content i know i have been watching too hot to handle. So i think they will be all right. Emily we will have to swap netflix lists after the show. Despite the light forecast, you did have some analysts upgrades jp morgan upgrading netflix to a straight high. What is the bull case given we are continuing to see this outbreak play out across the country and around the world . Netflix has new frontiers for growth internationally. California just said all of our kids are only going back to school remotely. Does that mean good things for netflix . I would agree. I think seeing a spike in these coronavirus cases, people being at home, they need entertainment. Thats going to be one service they really go to. Chance tos a good flex their pricing muscles and i think its good news for investors looking ahead for further growth. I think it remains at the foundation of why analysts and some investors are still bullish. Thank you so much for joining us. Tonight. R netflixing coming up, a Cyber Security company has found several risks and vulnerabilities within tictoc. Were going to talk to them about what is so alarming and how that could impact users, coming up. This is bloomberg. U. S. House have written to attorney general william ball william barr, calling to calling for a ban on tictoc amid a privacy and Security Threat to users. Joining us is that of security at checkpoint. The company has developed multiple security vulnerabilities in the app. Talk to us about what you discovered. You found attackers could essentially break in and upload unauthorized videos, make private videos public sounds like a nightmare. Absolutely. In january, Checkpoint Research was able to find a flaw relevant to the sms messaging in which the way tictoc communicates with their users. Basically what you can perform is an attack where sms messages that were specifically crafted, you could modify videos, but delete videos as well as extract personal information from the platform. Issued a disclosure and tictoc was able to remedy the issue of therefore keeping the user safe. This is something we discovered back in january. Emily currently, how confident are you about the security of the platform as you have lawmakers calling for the app to . E banned you have it banned in india and President Trump bandit and Companies Like wells fargo are taking off peoples phones. Mark its a great question and it has been quite a week here in Cyber Security. A lot of things have been demonstrated relative to privacy and messaging. Wheno tictoc, organizations or companies have issues like weve talked about in january, they quickly ramp up and are able to make changes and create environments that are more secure and applications that are more secure. The Biggest Issue we see across all applications that are being used as a hyper scale, being that there are billions of users asthe same applications, consumers and users of the platform, we want to be sure that information is being handled in a private matter and thats in a private manner. Thats what we want to look at with applications with this attack surface. Are they able to patch the infrastructure, to properly handle the information. Thats a big issue that is very much in the news as we sit here today. Do you have a position . Do you think tictoc is a National Security risk . Do you think u. S. Citizens should not be using it . I think all nationstates, organizations and schools need their information is being shared. When we look at specifically and we can expand this to twitter, the goal is for us to have trust within the companies that share information. But as consumers or employees, we have two be able to understand where our information is and how the information could be used. If you look at the last 24 or 36 hours and look at twitter, for example, you can drive parallel to a lot of people are nervous about. If you think about what we know relative to twitter, social engineering was involved. Its potentially spearfishing. Those types of situations are trying to be exploited, having personal information is one key you needthe criteria to carry on this type of campaign. Betweenrive parallel ,at at hyper scale like tiktok [audio difficulties close racket we are getting more information on how this was carried out. The attackers got control of their account and were able to lock them, so if you are the legitimate owner, you couldnt even delete those tweets. What is your take on what happened and how egregious was it . Even among users like myself, you get an alert and how people are trying to access your account, in this scenario, no , this is agood scenario where obviously you are , theng at the information , the tools or access where right tools or access where this could be coordinated. So you break this down day and it goes back to where you have ofse platforms with a lot surfaces and those are the targets. Attackers want to look for areas where there is the largest area of return. When you look at the fact that the users dont have recourse in any sort ofcenario, windows, anywhere you have this that of impact by doing to be able to be coordinated, as if they were somebody else. We have seen this before in other examples. We have seen examples with some seen pping, weve seen now twitter could be facing a huge problem from regulators for not doing enough to protect user information. The checkpoint head of engineering. Think you so much for that Detailed Analysis on what happened there. Up, georgia, the state divided on wearing masks, as are many thing across the country, the staterus cases continue divided on wearing masks, as are many thing across the country, as coronavirus cases continue to mount. Mayors defying the orders of governor brian kemp. All withalk about that all georgia gubernatorial candidate, stacey abrams. That conversation is next. These are things that can be done, but we have to put aside partisanship to make sure it happens. Should every american get a mail in ballot without having to request one . Stacy every american should receive a ballot that is postage paid. That is absolutely the right thing to do. That would be the gold standards , but i live in reality. What im asking for is we remove as many of the terriers as possible and put guardrails in place to make sure everyone who wants to vote by mail can do so. We have to remember not everyone can or should vote by mail. If you are disabled, if you have a language barrier, if you are homeless, if you have been displaced by covid, there are a number of communities that dont have the right or capacity to vote by mail and they need to be able to go in person. We cant simply focus on vote by mail. We have to walk in chew gum at the same time. We have to do voting without a closure of a precinct. You have campaigns on this issue as well as progressives across the country. You are seen as a Vice President ial pick for Presumptive Democratic nominee joe biden. How has that conversation impacted your advocacy work and what type of Vice President ial pick do you hope the biden team selects . Been doing this since i was a college student. Ive been working on Voting Rights because my parents raised me that the power of the citizen lies in the power to vote. Its why i found it fair fight and why am focused on the 2020 census, which is just as important setting the future of our right to vote because it determines our political district. That is why i created fair count. Ive been working on this and will continue to do this work because i driven by the mission to have the policies that write our country and make us eligible for opportunity. I look forward to watching Vice President biden to select his running mate. Theres no one that knows better what he needs because hes done this job. I know whoever he picks i will be shoulder to shoulder with them making sure Vice President haydn becomes the president of the United States and we start to write our democracy and restore america. Abrams, they founder of fair fight. Just a quick disclaimer michael bloomberg, the founder and owner of bloomberg lp is a contributor to the fair fight to promote voter registration. Coming up, new product that might make your zoom calls easier and look like saturday night live. 49. 50 i found you good job. Now im gonna stay here and you go hide. Watch your favorites from anywhere in the house with the Xfinity Stream app. Free with your xfinity service. Now any room can be a tv room. Stream live tv, on demand shows and movies even your dvr recordings. Download the Xfinity Stream app today to stream the entertainment you love. Xfinity. The future of awesome. Iredefined the wordng thschool this year. Its why, at xfinity, were committed to helping kids keep learning through the summer. And help College Students studying at home stay connected through our university program. Were providing affordable Internet Access to low income families through our internet essentials program. And this summer, xfinity is creating a Virtual Summer camp for kids at home all on xfinity x1. Were committed to helping all families stay connected. Learn more at xfinity. Com education. Emily welcome back to bloomberg technology. Im emily chang in san francisco. The transformation of netflix into a fullblown Hollywood Studio is complete. The company has officially promoted the former chief content of us are to be coceo alongside cofounder and ceo Reed Hastings. Shares are lower after a disappointing subscriber forecast. Netflix added more subscribers, or all of his many subscribers in the first half of the year, than they did in all of last year. Great year plus far, but investors not excited about the current order. What is your take on the current numbers . Well, this was expected. When we look at what happened with covid so far, it has accelerated karen trends. More people are inside, more people are watching netflix and streaming video. The total addressable and market for netflix is not change. People not subscribing to netflix are for the most part older and are less likely to have access to highspeed internet. None of that has changed. Anyone in the u. S. Who could potentially be a Netflix Subscription to already is. When you look at future growth in the back half of 2020 as well is early 2021, we should expect lumpy growth moving forward. Going where are the lumps to be . Where do you see the growth coming from and the growth potentially slowing down . Eric well, growth is still going to come from international markets. That is what the trend was precovid. Looking at the u. S. , their largest market we are still seeing population growth. That is going to happen. Just at a much slower rate than in the past. Looking specifically to the opportunity for netflix, paytv is losing subscribers at a historic rate right now. There is a lot of spending opening up. So, i would also love to hear your take on this coceo announcement. Have sort of gone out of style. We have seen it at various companies, but a dozen often last very long. Ceo andrce added a co that only lasted a couple years. What is your take on what this means for netflix . Eric netflix has been remarkably steady over the last decade in terms of your leadership. Reed hastings and ted sarandos have led the company for the most part. There are very few companies with that sort of track record. When you look at the other streamers they are directly competing against them they have had ceos, and go. Reed hastings has said he plans to be on board with netflix for over a decade, and i would expect that to be the case. This is really i wouldnt put too much emphasis on the fact ceos,here are two co largely because they worked together for so long come and it will be a similar arrangement to what has been the case in the past 10 years. Emily what about the original content pipeline . That is a part of netflixs latest success. Sarandos has been a huge part of that. We are in the middle of a pandemic and production has shut down. We dont know how long we will be in this for. Netflix has a huge library. We are discovering things we might not have otherwise. But how does the content pipeline actually look . Eric well, it looks fantastic for netflix, which is my better than any of their competitors. According to netflix, their content schedule will be impacted until later in 2021 wont be impacted until later in 2021. When you look at countries like disney, hbo, even traditional cable tv networks, they dont produce content that far in advance. Netflix has been remarkably forwardlooking in terms of how much content they produce and how well in advance. Really, i would not expect there to be significant changes to any sort of content will reschedule until late in 2021, and by then, production may have been able to ramp up and they can put shows out pretty quickly. Ekstrom, always good to have you with us. Thank you for your insight. All right, the paycheck has been aprogram lifeline for Small Businesses across the country, including the ai start up all turtles. The cofounder and ceo join us to talk about how the loan has impacted the part of the company as well as the new presentation project that could be useful as we work from home, called mmhmm. We got along loan just in time and it helped us keep everyone employed and work through some difficult few months. We got new projects and products going and we are doing pretty well and hiring again. If it wasnt for the government from we would be in bad shape. Emily it enables you to help build your latest product, mmhmm , an interactive video presentation product which will be useful for so many people working from home. Tell us a little bit about this. Phil this is the first thing that we started that we started postcorrenti. This is the postcorrenti. The first native to the lockdown idea that we had. Being on video all day, meetings and google handouts, is really tiring. We wanted something that would make it more effective and interesting. We came up with mmhmm. Emily there are some products out there how does this stand out from some the competitors . Phil im never really quite sure what other companies do. We are kind of too busy focusing on what we do. I think there is a whole new category of products all about how to perform over video. We just want to be the best there is added. What we do is really simple. An easy background like this, but i can show slides, and instead of having to show my screen, which is what usually have to do when you are presenting on zoom or something, which is kind of boring, you can just do this. Get out of the way a little bit, like that. If i want, i can make the slide fullscreen, fly around and pointed things this way with my head. This is all a method of presenting, which is really fun, really engaging, better than you can do in real life, let alone over video. Emily some of the Largest School district are now announcing distancelearning only as we see the outbreak continued to surge in different places around the country. Youchool district is saying have parents and teachers who are terrified of another year of this. Is this something that schools and teachers can use as well . Phil the way that we think about this is we need to embrace the fact that everything Going Forward is going to be hybrid. It is going to be a hybrid between in person and online. Nothing is going to be fully in prison again. N a fully inperson nothing is going to be fully inperson again. We should start making tools that make the hybrid experience better than the real Life Experience used to be. In the first iteration everyone tries to say, well, how can we make the online experience almost as good. That is kind of doomed to failure. You cannot make it almost as good. You have to invent new things to make it better. Online education, hybrid education, with some people in so and some online, is was speaking at performing and doing sales presentations. All of the things that we now have to do in a way that is always a mixture of online and off. Emily we have been talking about a shift away from office not the ceos you have the ceos of twitter, slack, they can work at home from ever if they want. Will it really be forever . What is the balance of the hybrid . Phil i think it is going to come down to Different Industries and companies. For us, in the knowledge workspace, we found it to be pretty productive working remotely. I was a skeptic myself. We always had multiple offices in different cities and countries. Within each office, people were together. I always thought, man, if im working from home, im not really working. I made so many of my decisions in impromptu coffee meetings and Walking Around and that kind of stuff. I just changed the way i work and communicate a lot more. But it has been really productive. We are fortunate, we are mostly doing knowledge work. For us and were probably going to stay hybrid forever. There is no point in commuting for an hour a day on weekends in a shared office. We will find other opportunities to get together offsite when it becomes a good idea again. But not everyone can do that. For other industries there will be no choice but together in person. Emily you have a delayed release. When will people be able to use this on windows . Phil right now we are enclosed data. People can sign up if you want. We are inviting people slowly. We are not looking for hype right now. What we looking for is to find people that we can help, find people whose lives are Tahrir Square jobs can be enhanced with careerswhose lives and and jobs can be enhanced with mmhmm. Maconly, put in the fall, september or october, by then we will have a windows version and versions for other platforms as well and everyone will be able to use it. Right now we are looking for people to help us make the product in beta. Emily the name, mmhmm, you are setting yourself for a lot of bad jokes. Why mmhmm . Phil the product is for performing. Nike used to have this slogan. Everyone is a performer. All of us do these micro performances. Mmhmm is for that performance. Whenever you want to perform a little bit, it elevates her performance on video. Veryone can say mmhmm without thinking about it in conversation, but when you try to say it intentionally is hard. For me to say we built mmhmm, i have to pause for a second. It is like you cannot just say the name, you have to perform it. The name itself is a micro performance. Emily mmhmm. We will be following that. We have breaking news to tell you about. The website which monitors outages across the web is reporting that users are saying Amazon Web Services is having problems. Other platforms google, shopify, also having problems, as of just the last few minutes. We dont know if porsche or all of these are related, but it is we dont know if for sure all of these are related, but a significant number of companies having outages at the same time and something we will follow as these headlines roll in. Coming up, and he left is joining the likes of google, uber is joining the likes of google and apple increasing diversity at the company. They have been making pledges for years with little progress. Will this time be different . We will discuss. This is bloomberg. Ber is pledging to double black leadership by 2025, becoming the latest company in Silicon Valley to echo national calls for racial and Economic Justice with measurable goals. Blackr, ube increase representation, but only 3. 2 of its leadership. Does have one of the most senior black executives in the country, tony west, who runs all of their legal operations. What exactly is uber promising to do here . Doette uber is promising to a whole bunch of changes and also updating people on the tworess they have made on or three years back. In the announcement made this morning and we covered, he talks about how the black lives Matter Movement spurred a lot of the conversation and cannot go on the back burner, then now is the time to act and is something he gives checking in with. Topline, big changes he is talking about double the black leadership in charge of the company, doubled in talent coming inor people and seeking corporate path, people who might be drivers and working in other functions, as well as antivirus training for and mored drivers, education in the company. They will continue to tie executive reviews and compensation to diversity goals. Those are a few of them. Holdiggest thing is that uber accountable. There have been a lot of big promises, but it is kind of like, where is the proof. That is what he is inviting everyone to hold uber to Going Forward. Yesterday iat note, spoke with maxine williams, the chief diversity officer at facebook, who is now at the leadership table with Mark Zuckerberg and sheryl sandberg. You look at their diversity report, theyve made a lot of progress on women, but not much progress on black employees, especially when comes to black engineers. I asked her, is that a failure of leadership of zuckerberg and sandberg, who say they care about these things, yet we are not seeing those numbers move. Take a look at what aims at his say. Maxine williams had to say. Maxine ive never worked in a place where we had this much leadership driving this. We need to do it faster, we need to do it better. Leadership saying what other resources we need to do this, we will apply them. Emily she is saying she has never worked at a company where the leaders are more supportive of this. If not for leadership, how are these companies, how is uber going to get this done . Lizette there is going to be there are a lot of movements and a lot of different initiatives taking place across tech, across Venture Capital, to make this industry look more like america and more like the communities it serves. There are a lot of different initiatives Going Forward with this. This is not a onetime thing. This change is overdue there are some systemic issues that they are looking to change, like create a new pipeline for talent to come in and being more aggressive in looking out for that. He is talking about the diversity and inclusion report that they just began publishing a couple of years ago. It was due out in may, but of course, covid upended a lot of thes, and uber had to slash workforce by 25 . The original numbers they had to update everyone on where they are with the diversity through the company had to be scrapped. They are redoing that and looking at that now. We should expect that later this year i was told in a couple more months. What can they do . Continue plugging forward, by the looks of the actions they have been taking. Emily and of course, uber is a Company Whose customers and drivers look a lot more like america that probably people in the corporate headquarters. Chatman, like you so much for bringing up that report. Thank you so much for bringing up that report. Still ahead, looking to get through to deliver to a picnic somewhere and apart as you try to get fresh air . Now theres a service for that. This is bloomberg. Emily with some are in full swing and social distancing still in full effect, folks in new york city have taken to picnicking in the park to get some fresh air. To meet the demand for meals in the park, a 26yearold from new york city started picnic post, a fooddelivery service that takes the food to picnickers from something that uber needs and arehub, believe it or not, not doing. I caught up with him earlier today. After my intensive quarantine, i got back to the and i was soay excited to see that even though conditions were strange and we were still in the pandemic, everyone was finding a way to exist and to interact with each other safely but resourcefully. Friendber being with a in the park and seeing everyone outside in the park eating, maintaining safety precautions, but also sort of connecting. We were excited by the idea, and i thought of ordering some food, and then i realized that i couldnt do it. Emily is it just you on your bike with a cooler . Pretty much, yeah. Me on my bike with a cooler backpack, and now getting a couple other people involved. Emily how exactly does it work . Sam people order from the app and go to our website and click request delivery, and there is a little button with the form, and you just give us the basic information on about your order, and i will stop by and pick it up and find you in the park and drop off the food. Emily is this kind of a missing opportunity or opportunity missing at uber with uber eats and doordash and postmates, which just got acquired by uber . Sam i know that some of them do deliver to the great lawn. There does not seem to be any functionality, far as i know, with finding you with n matter where you are. Emily are you going to try to raise money from Venture Capital or build this into something bigger . Sam well, first i just want to bootstrap more spread in new york city and product ties to build an app diecut handle orders so i dont have to deal at could handle orders so i dont have to do with third parties. Emily how much money are you making of this . Sam it is definitely modest right now, no doubt about that. 80,big day, 70 to especially if there is a bigger order, or a more largescale picnic. Emily why are you doing this . I dont know what you were doing before, but obviously people lost jobs and schools are closed. Running at experience business and talking to customers from day one and bootstrapping it. I dont want to be sitting behind a desk coding an app right now, especially now that it is so exciting to have Human Connection and be able to be building something and helping people adapt to this new world and finding a Silver Lining in a way that exists and enjoy life now. Emily what were you doing before this . Sam i was building a travel app, and i was just on my way to go to promote my travel app in hospitals in europe right when all this struck. I had to change course, for sure. Emily and how do you see the Customer Relationship evolving . Sam we are focusing on having more returning customers and establishing the park as a consistent dining spot and establishing ourselves as the waiters and waitresses of the park. Emily so it is central park only right now. No plans to expand to other boroughs . Sam we are expanding, actually. We recently expanded to the pier about 42nd street. Beautiful view of the hudson river. And riverside park. Emily all right, power to him. I have enjoyed a few picnics while sheltering in place. Have a wonderful weekend. We will see you back here david fingers and the diet markets keep the fears of a surging direst away with hopes of more government help. Bloomberg wall street week. Im david westin. Open ourelosi economy. Do so by testing, testing, testing. David Larry Summers and catherine baker, raj cohen of solomon and cromwell. Banks are the losers in a very real sense in view of the federal rese