2. 6 for that particular index. The tbi data, many of the underlying elements where it seems like telephone usage and so on that were higher than anticipated in terms of inflation. Lets get to our first guest. We are going to be speaking with megan crane who joins us from washington on the choice of joe biden to pick Kamala Harris for his running mate. Harrisobviously kamala is one of the top names for some time. She is someone who has changed her position, particularly her economic positions several times over the last few months and during the campaign originally. What type of box should be put her in when it comes to an megan economic platform, that is a little hard to pin down with Kamala Harris. That is definitely one of the challenges she faces going forward. On healthcare she had changed her position about medicare for all and healthcare and came up with a hybrid plan that included private healthcare so that is something that they will be trying to outline and defined in the coming weeks. Vonnie exactly. She was originally almost in the sanders can as she abandoned that campaign. She leaned a little bit right in the middle of the campaign. Now she is joining with sanders and proposing a 2000 per month payment to millions of people during the coronavirus. Will she satisfy those who would have brought tefor Bernie Sanders . Megan i think that is a milliondollar question. Will she satisfy the progressive voters. She has a mixed record when it comes to longboard issues. She was a prosecutor law order issues. And it remains to be seen whether she will satisfy those voters and more importantly, inspire them to go to the polls. Vonnie exactly. The polling has joe biden ahead. But we all know from other jurisdictions that polling cannot be trusted. When will we get some good polling now that we have a full ticket . Out inpolls will come the coming days. Tracking polls that will represent right after this choice was made will come in a couple of days and it will be days to weeks before we have a really good picture of whether there is any sort of balance that comes with this choice bounce. We will see. Certainly the Biting Campaign is Biden Campaign is hoping that they can inspire women voters and minority voters. Vonnie the other they to consider is if Kamala Harris gets taken out of the senate, then that is a democratic senator that gets gone. Who will replace that role . Megan i dont know the answer to who they would choose. But it would be in california, it is a pretty reliable democratic seat. I dont remember last time they had a republican in the senate from california. I dont think that would necessarily be considered a possibility for tipping the balance. Vonnie absolutely. They will have their eyes on the senate in terms of trying to live the senate to make legislation easier in the future it ise democrats because hard to see how much will get achieved if that is what happens what happens in november. Megan divided government does not always move things forward quickly. Vonnie thank you for the update. That is megan crane of our Politics Team in washington, d. C. Lets hear from somebody else on the issue. That is represented of James Clybourn who spoke with as earlier and here is what he had to say. She brings to this ticket a smorgasbord of qualification. She is a sharp debater. We have seen that as she performed as a member of the judiciary committee. The kindserienced in of backgrounds that we need sensitivity from in our government today. She has won statewide office in california. She has served in the u. S. Senate. Has thee frankly, she kind of skill sets that i think are necessary in order to win this year. This is going to be a tough campaign, no matter what we might see or what the polls might be saying, this is going to be a very tough campaign. We found out that just being popular and winning the popular vote will not get it. We did that before. We have to win in strategic places and i think that she gives to this ticket the ability to win in those strategic places. Say, it is going to be a tough campaign, we already sought right away the white house a response. One of the things that they are taking on is she tends to be a socialist and goes to the radical left. She did take the position of limiting private insurance and healthcare although she backed off of that song. Is there one ability that the Child Campaign can exploit is there vulnerability that the Trump Campaign can exploit . Goings country is always back and forth like a pendulum on a clock. It goes right for a while, it goes left for a while. It went left when it elected barack obama. It went right when we elected donald trump. For the moment when people got experience with him, they started back to the left. I always say, going right to left, left to right, it passes through the center. This country camps out more in the center then it does the left or the right. I really believe that this ticket is right where the country is today, moving back to. He left it may move to the right, it may move to the left, but this ticket is right where the country is and im very proud of this ticket. David one of the things that commends senator harris is her Law Enforcement experience both as his attorney and california state attorney general. District attorney. That might be helpful. On the other hand, could it dampen the enthusiasm from the africanamerican community, particularly from males because of her prosecutorial history on being very tough on young africanamerican males . I think that being tough is something that we have to qualify. It is a quantification that needs to be qualified in my opinion. I think that when you follow the law, remember, she is adamantly against the death penalty. Some people say that means you are too liberal. She enforced the laws on the books. Some people would say, you are too conservative. The fact of the matter is, she was a successful district attorney, a successful attorney effective u. S. Senator and i think she will be just as good as Vice President of the United States and would chiefemendous sheet executive. Vonnie democratic representative jim clyburn. Now lets get some first word news. Here is Mark Crumpton. Mark the stimulus stalemate drags on. The principles and negotiations begin a new virus release package really package have not spoken since friday. Republicans say democrats must reduce their plans. Democrats and republicans must put another 1 trillion on the table in addition to the original 1 trillion offer. China wants to discuss tiktok and we chatted upcoming trade talks. Bloomberg has learned the chinese will bring up president trumps ban on the apps. The administration has cited National Security as the reason. A Virtual Meeting might take place this week. Israelis have been taken to the netanyahusotest residence in jerusalem calling for his resignation. The Prime Minister had already been weakened by indictments but has seen his support sink over what residents say is mismanagement of the coronavirus outbreak. It is israels largest wave of outbreaks protests since 2007. This is bloombergs first word. I am Mark Crumpton. Is bloomberg markets. It will be interesting to see how the last three months went for the ridehailing company after the california decision that drivers must be employees from now on. Lets bring in someone with a price target of 48 on the stock. Ygal arounian joins. What are you anticipating lyft will say . Ygal thank you for having me. We are anticipating that we will or demand really struggle that it did really struggle in 2q. Uber reported right demand being down ride demand being 7 . There was a period during the quarter were things were starting to trend in the right direction. But then in the u. S. With the pandemic kind of coming back, we start to see that reverse. Theink demand went down in 50 , 60 range. Maybe more than that. Vonnie it was a double whammy because california won that preliminary injunction against lyft and uber stating that employees are employees and not just drivers or contractors. How does this allow for the incoming quarters . Ygal that is something we are expecting to continue to play out over time. It certainly was not a positive outcome for lyft or over or the uber. Y as a whole or they have another 8 days to appeal the decision. It is still not clear what was going to come with that. The that what lyft and aer are looking forward to valid and take it to voters will ultimately have the last say. A their interim period, it is nearterm headwind. We think about a lot of the things that go with this, first and foremost, the logistical challenge of turning employees from contractors to fulltime employees, that is not really an easy process. There are issues around flexibility that drivers have, how they approach hiring people and hours and shifts and things like that. New. Not fully people have been kind of expecting this and seeing where things go. Months, if not years until this fully plays out. Vonnie let me ask you, how do you get to 48 to where we are currently which is 30. You operated upgraded twice since may. It is now 48. What brings us their there . Ygal you have to say you have to take a lot of the especially the demand in context. That is what arguing is. Certainly the trends right now are not that break not that great. Certainly, rideshare is not going to go away. Once the pandemic trends start to rebound, you should see demand come back. There are lots of factors in play. There is a lot of issues and things to think through like or peopletravel flying or going on vacation or working from home and not eating as much. There are places around how the demand does rebound and what that looks like. We think rideshare comes through. There are probably some things on the other side that are more of a tailwind than a headwind like people not wanting to rely as much on Public Transportation , taking buses and trains, and would prefer rideshare. Certainly a rebound play on the demand side. Job has done a really good to taking the opportunity right side costs to become more profitable. With less demand and an easier manner that is something that was a huge focus before we got to the pandemic. Withnd and demand coupled better profitability with lower costs over time and that is how we think about coming out of this. You have definitely been on a ride for the last few months. All of the Companies Like ebay and shopify, maybe they did well. You also have uber, yelp, groupon, all of these consumer facing names. All of these coverage groups you have, who will end up the winners . Sure. Winners andme clear there are some others that are seeing challenges. Ygale it does sound like dropped out. We will return to him on another day. 48 price target. We will see what they say after the bell today. A surprise from airbnb on another related matter, definitely saying that demand had come back in july as opposed june, up 20 over here year over year. The pandemic has turd turned the world of sports upside down. ,e will speak with zach johnson the Award Recipient for this year. We will ask him about that and announcing that the masters will go ahead in november. This is bloomberg. Vonnie this is bloomberg markets. Tour he is a 12 time pga tour winner. He has been awarded the Payne Stewart award. We would like to welcome zach johnson to the program. Congratulations on your award. It is a 500,000 grant. Also this year, you have your own foundation. Tell us what it does for children. Zach thank you. So weve got a program in my hometown, cedar rapids, iowa. We have a program in the School System and we partner with the School District there and we are in numerous elementary and middle schools and a couple of high schools now. The program is called kids on course. It has nothing to do with golf. We are trying to provide kids opportunity in an out of the classroom. We are trying to give each children child the ability to dream big whether it is the Academic Field or outside the classroom. We can provide that. We are with them the first bell to the last bell, we have afterschool programs and a summer program. If you stay with us, we will get you to Post High School education or whatever you desire. It is one of those vehicles that i have been able to be a part in that has humbled me the most. Vonnie a huge inspiration to have you around as well. Not only are you a pj winner, but you have played on numerous president s cups. We know data from bloomberg twoally shows that the venues right now are golf courses and food pantries which tells you a lot about what is going on in the country. How are the kids coat coping . We have had to pay that and change direction. As a result, our focus has been using technology to stay with these kids whether it is academics or fun things that we can use. Zoom calls and technology. Most of our focus has been on food. Bottom line is people need to eat. We are donating numerous meals by the date this summer. That is where our energy and resources have gone to specifically in my hometown. It is the basic necessities of life. These kids depend upon food eaten every day with our program and the schools and if that is not there, they will start. It became a nobrainer. Im honored to be a part of it. Vonnie great timing. Thus the National Just said they are having augustine National Just said they are have a the masters this year and it will take place in november. What is your reaction to the masters in november . Zach we have known about that for a while. It is still the nationals. I will go whenever they decide they want to be there. It stings that there is no fans. Lets be honest. I love the fact that we have a Great Entertainment value. Its fanss known for and the drama it provides. That being said, there is still value. You can watch it on television. Vonnie very briefly, i want to ask you, you are one of the few players that was at wing foot for the last major in 2006 and we were anticipating one this year in italy. What do we know and what you plan on doing next year . Zach we are actually playing there in september in the u. S. Open this year. It is going to happen. It is just not going to have fans. What i remember in 2006 is it is brutal. It is tough. It is fair, it is just hard. Hitting fairways, hitting greens, playing cliche golf is the recipe. I love the fact that we can play in new york. I just wish there were fans. Withe very best of luck everything and with your foundation and congratulations on winning the Payne Stewart award which is in honor of the stewart. T payne coming up, we will discuss earnings and outlooks for Remote Learning and more problems were kids coming up in the fall. This is bloomberg hike Simon Pagenaud takes the lead at the indy 500 coming to the green flag, racing at daytona. Theyre off. In the kentucky derby. Rory mcllroy is a two time champion at east lake. He scores stanley cup champions touchdown only mahomes. The big events are back and xfinity is your home for the return of live sports. But what if you could stdo better than that . K. Like adapt. Discover. Deliver. In new ways. To new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back. But bounce forward. Thats why were helping you stay ahead and adapt with a network you can count on, 24 7 support and Flexible Solutions that work wherever you are. Call or go online today. Mark i am Mark Crumpton with bloombergs first word news. President trump called senator Kamala Harris meanest and most horrible senator when asked about her joining the joe biden ticket on tuesday. Californiayou Campaign Finance records show he gave in 2011 and 1000 in 2013 to harris Election Campaign for attorney general. Mr. Trumps daughter also gave 2000 to harris in 2014. Secretary of state mike pompeo says the United States will keep working to deliver democracy to the people of belarus. Speaking in the capital of prague, secretary pompeo expressed concern about the safety of nonviolent protesters in belarus who have taken to the streets for three straight alexanderlowing lukashenkos claim to a landslide victory. We watched an election we were concerned about was not held in a way that was free and fair. We care deeply about the belarusian people. We want the people of belarus to have the freedoms they are demanding, that they think are in their best interest. We watched the protests. We urge that the nonviolent protesters be protected and not harmed. Pompeo alsoary played tribute to American Forces that liberated western czechoslovakia in 1945. Despite having one of the strictest lockdowns, argentina is seeing a spike in coronavirus deaths. Country says more than 3000 people died of covid19 in the prior4 hours, double the days number. Argentinas government has Restricted Movement so heavily cannot cross borders by air or car without facing scrutiny and possible fines. In texas there were westerns about the severity of the coronavirus out right. The states Positivity Rate surged to 23. 9, but a backlog of more than one million test result may be skewing the calculations. The statewide figure is at odds with all of the other major metrics used to assess the health crisis. Texas has had more than 500 thousand confirmed cases of covid19. Global news 24 hours a day, on air and on quicktake by powered by more than 2700 journalists and analysts in over 120 countries. I am Mark Crumpton. This is bloomberg. Welcome to bloomberg markets. Vonnie from new york, i am vonnie quinn. Are the top stories we are following throughout the world. Biden picks kemal as his running mate. We will look at reactions to the pick and what this means for the future. And what the school year will look like at the company. Small business navigates the pandemic. We will speak to the president of the nations Largest Online marketplace for business, bizbuysell. Com. A quick check on the markets. We are seeing positive sentiment out there. Teche continuing to see show leadership again. Even as we have seen a broadening out of leadership. We have seen momentum for the nasdaq, it is off the highs for the session, but not too far. Tech is the big leader, but utilities are right behind. Health care also strong. The weak spot showing up in what is happening for toronto, where we lack in terms of upside momentum. Energy ant financial spoke to the downside. Lots of questions about demand. On the energy side, lots of questions about what a biden presidency might mean. Now that we know joe biden has picked senator Kamala Harris as his running mate, you will of course see lots of tea leaf reading about what that might mean. Is one places people might look first. She and ollie, lets start with the big headlines of what you think markets are thinking about. Certainly a big expectation of further taxation. Beam has been a very big of excitement on wall street this morning from, especially the already democratic donors to the biden camp, to the democratic camp. They are excited that he has chosen somebody they define as a leftcenter. The question for them is, how well the party be reacting to the further left at the party . One of the things i had asked folks was, do you think she will be tough on wall street . We have certainly seen her be tough on wall street before, after the financial crisis. Wasof the people i spoke to the ceo of ever corporates response was, i dont know. Is certainly not hostile to capitalism, but at the same time she will be talking about a lot of the Kitchen Table issues health care and affordable school. Certainly your positions economically have changed in various periods. Im not sure that anybody outside of maybe the Trump Campaign would call her left of center. Obviously those democrats on wall street he was speaking of, the neoliberals. About othernow positions that wall street might be interested in . There is only so much a Vice President can do when it comes to policy, right . Maybe she will have an impact on joe biden, maybe she will pick up his positions on thanks. Do you know anything about treasury . the people on wall street close to the biden camp believe it will be difficult for wall street names to get into the treasury and get into major positions that will guide policy. What are the reasons for that . One of them being that they focused so heavily on sanctions at the treasury these days and it is such a big political bargaining tool, that there needs to be a wider set of expertise to lead the treasury in the biden administration. With that said, what we do know is that there are big names on wall street that are perennially rumored to be in talks for those spots. The big question always is surrounding jamie dimon of jp morgan, of course, big banks highly politicized these days. Others like nasdaqs id to friedman have been rumored. This is a name game at this point. The expectation is that these big spots dont come from wall street, but as you know there is always that hope. Vonnie thank you. Be sure to tune in leadeth this afternoon when Presumptive Democratic president ial nominee joe biden and Kamala Harris delivered their first remarks since the historic announcement. It will be live from wilmington, delaware just before 4 00 p. M. Eastern. Meantime, Online Education company k12 reported earnings last night that eat on the top and bottom lines. The Company Reported a 50 increase in volume or enrollment applications compared to the same period last year. Joining us now is james rhyu, k12 president. However you had to change, if at all, you are learning models to adapt to coronavirus . Scarlet we are really fortunate. James we are really fortunate. When the pandemic broke out our schools remained open. We have been doing Online Learning for years. We have over 6000 teachers and they have been trained in Online Learning techniques. For us it was business as usual and we went right into the summer preparing for next fall. Just like any other fall. The good news for us is because of everything going on, the interest in Online Learning has really spiked and we are seeing a tremendous demand. See in your annual numbers, an increase in revenue, but it wasnt a blockbuster increase. You expect to see that pickup is more schools to turn to resources like yours . James for sure we do. We announced yesterday that we have already crossed the 150,000 enrollment threshold, for fulltime enrollments. That is already an 23 increase. We still have a long way to go to the fall. We are very optimistic about the rest of the season here. You already know that we are going to do a lot better this year than we did last year. Differentiate you from other Online Learning platforms . What is your move . James we have been doing this for 20 years. Vonnie there are a lot of people that have been doing it for a long time. James what i would say is, in fulltime Online Learning we have educated about one third of the fulltime learners k12 over the past 20 years. We are clearly the leader in the states in which we operate. We are either number one or number two in what we do. We have huge districts like miamidade, they have come and ask us for help. Helping them train their teachers, stand up a program for them. Were very confident that our skill set and background really differentiate us in the marketplace. You build out to support what is kind of a new type of demand, in some cases it may be a hybrid demand, will there be associated costs for you . Will you see a drag on margins even as your topline growth . Grows . James it is a little bit of a different model. We dont foresee any drag on margins. We think our business scales well. We invest heavily in our product already. We think that investment will pay off and we will get leverage out of it with as we take on clients like miamidade or other districts that have come to us, there is a lot of things we have been doing that we can leverage and bring to bear. We train over 6000 teachers already a year. They have thousands of teachers they need trained as well and we can leverage a lot of things we already do to help them train their teachers. I think there is a lot of synergy here with what some of the districts are doing. But they are doing is unique, because they are allowing kate k12s program to help them and they are being innovative in taking an Online Program that can pivot between an classroom and online. I think what miamidade is doing is very innovative and we are happy to be able to help them. , do you think there will be some consolidation in this space . Would you be interested in teaming up with a likeminded company in order to create more value and push out some of the smaller players . James listen, certainly wouldnt speculate on anything, but they do great in their own right. They predominantly play in the postsecondary space and we are predominantly in the k12 space. It is a little bit different than what we are doing in our model. We focus on educating grades k12. Those companies are doing great jobs too. Our model just shows that Online Learning is here to stay. This is something i think is going to permeate through society. Online learning is going to become a mainstream way of educating kids. Vonnie we have to leave it there, but we would love to talk with you again. Go ahead. Vonnie go ahead. James, i wanted to quickly ask you, you postponed your outlook. How much visibility you think you will have by then . James i think by the time we had october we will have good visibility. We normally and october provide guidance for the year. Its when we know what the school year is set for. I think you can expect in october we will release for guidance and i think investors will be pleased. Vonnie james, thank you for your time. We would like to have you back again soon. Particularly as you begin the school year. James rhyu, k12 president. Teslastesslers stock of the hour. This is bloomberg. Vonnie this is bloomberg markets. It is time now for stock of the hour. Test shares up by triple digits after announcing a split. Just the panacea needed to end its recent pullback. Here is scarlet fu with a look at how stocks perform. Scarlet we are looking at tesla capping higher, rising as much as 12 . Investors have until next friday to take part in this split. This split itself will happen a week later. The primary reason is, it looks teslas stock with cheaper for Retail Investors. Two weeks ago apple announced a split. Has the past year tesla lapped the nasdaq 100, it is gained more than 560 . It peaked on july 20 and closed above 1600. Since then it has followed about 17 perfect 17 . Longer saving on commissions when buying around loss. Major stock fourth this year to announce a split rate in each of the last two years there were five companies in the s p 500. In 2000 there were 42 splits. Scarlet, obviously Retail Investors are playing a big role, especially in a stock like tesla. How much of this is aimed at making the stock more attractive to that base . Scarlet absolutely. That is the driver. Investors can buy fractional shares, but nevertheless allows easier and itit is psychological. A stock split exit feel better if you can buy 100 shares rather than one share. Also signals that the Company Believes the stock will keep rising. We showed you earlier about apple, how it split its stock five times. It took 12 years to double its price after that first split. What you are looking at right now is how many stocks are trading above 100. Back in the day that used to be the level that would prompt a split. There were only nine. One other thing i want to mention is, stock split increase options. If a stocks prices too high, it makes it more expensive to use options to hedge with a derivative. That is Something Else that Company Executives are keeping in mind. We do note delivered derivative players, thanks for that. Coming up next, we are taking the temperature of Small Business. Specifically, the sale of Small Businesses. Bob house is on the channel with us. This is bloomberg. Amanda welcome back to embarq markets. Bloomberg markets. Despite questions about the level of stimulus support for businesses coming from d. C. , the online marketplace bizbuysell continues to see robust activity. 6 foran price of businesses sold there. Bob house is president of bizbuysell. Great to have you with us. I was going to start with whether this is a gauge of optimism about the future. What does it say that you are still seeing the number of businesses and the price increasing in that way . Is certainly a piece of good news amongst a lot of dislocation in the Small Business market. Is a 6 increase in the sale price for reported transactions on our platform in the Second Quarter of the year. That means the stronger businesses made it through and got sold. These were reported to us by our business brokers. They tend to be in the essential retail and service sectors, which are not surprisingly doing quite well right now. Those businesses are performing at a high level. Nie how many more listed sale, how much more inventory was there . Have about 50,000 active listings on the platform. Didhe pandemic set in, we see a pullback in supply, but it as owners are ready to sell their business. Many of them are baby boomers looking to retire. We are down from where we were a year ago, there is still plenty of inventory. Vonnie what i mean is, you say the supply was down, but many businesses that would have been in trouble would have needed to sell. I would have anticipated that supply might be up. Certainly many businesses are marketing themselves for sale. Whether or not they achieve a buyer is going to depend on how attractive that opportunity appears. The second in quarter was, fewer deals overall, although it really dropped more strongly in april and rebounded as the quarter went on. Work,als that got done again, the stronger, better businesses that were performing well and had good revenues and profits during this period. Perhaps not surprisingly, you show that pandemic resilient businesses did the best. Obviously. Sense, restaurants not doing well. One thing that jumped out at me is the number of businesses having a hard time rehiring staff back who are getting that government support. That is something we have seen in canada as well. Government support may be thwarting Small Business. How big a factor is that when people are looking to acquire business . Bob it is definitely something to consider. We surveyed Business Owners and buyers during this report and found that during the pandemic just over half of the businesses shut down in early april. Losing you there bob. He said something about april . You can repeat that for us . I apologize for the poor connection. In april, many businesses closed down or suspended operations. I the end of the quarter they and resumed operations, 71 percent had resumed their operations. They had to hire back those employees. Some ofe employees, them, 52 of the owners said they were having a challenge hiring their employees back due to the unemployment benefit. Those employees were making more money staying at home versus coming back to their jobs. It was a real issue. Issues,any other major lack of capital and so on . To behere still seems plenty of i there in the market. There is a lot of dry powder. Looking for where the opportunity lies. Right now what we are seeing is a lot of interest in demand in these essential retail and Service Businesses again, have all kinds of Small Businesses on our platform. Some of the ones that are resilient are hardware and Home Improvement stores, grocery stores, Liquor Stores as people consume alcohol and in home versus bars. Gas stations and convenience stores. Obviously ecommerce sites. Vonnie he will have you back in a few weeks. We would love to get an update on how this pans out. That is bob house, president of bizbuysell. Com. From me in new york and amanda in toronto, this is bloomberg. It is 7 00 p. M. In london. Im caroline hyde. Romaine im romaine bostick. Taylor im taylor riggs. Stocks again approaching alltime highs. Jumping one half percent with a boost from tech shares. Treasury yields your sevenweek eyes. Gold bounces back too. Newly minted Vice President ial pick Kamala Harris is set to take the stage with joe biden later today. But her california roots bring to the campaign. We bring you that event live. Left off to the bell. Second earnings just days after a California Court ruling that the companys Business Model in jeopardy. All that and more, plenty more coming up. Romaine lets check in on the markets. The s p 500, about 24 hours