Infections. Reported more than 200 deaths today. In the markets, we turn our attention to trading volume. It was pretty light but finished up. Momentum has been fading as we near record highs. On any indication of a new Coronavirus Relief plan coming from the white house. On the day, two words sum up today, summer friday. Slow with low volume. The major averages barely moving. In the middle of the day, there was some volatility. At the end of the day, the s p 500 down just fractionally. Bit. Aang index down just a we saw a little bit of weakness in biotech. That is one of the only indexes down for the week. Beneath the surface, it is not quite as dull. Lets highlight two of the big earnings movers. Semicap Equipment Company quarterly Beat Estimates and raised the outlook. They make the equipment that makes chips which suggest there is demand coming from the chips companies and the companies that use chips which is probably every company out there. That might be a longer healthy tell on the economy. Baidu was down. The outlook may suggest the growth will slow for chinas guest search engine. , the netflix type unit name of which i will not even try to pronounce, the sec is probing whether or not they over counted subscribers. Those were two of the bigger movers today. Caroline you always mounted managed to find us the good nuggets. We managed to be in the green for the week. Yes. Very important for the nasdaq, because up until late this afternoon, the nasdaq was headed to a weekly decline. Four weeks ago, that wouldve been rest remiss in of 2018. It would have been reminiscent of 2018. At the end of the day, the nasdaq is up fractionally. The dow outperformed the most up to percent. This weekend this month is going to the cyclical sectors such as industrials, energy, and materials. Thatcould be a sign investors think the economy is going to throttle ahead. And bigbig winners losers. Weeksover the last three up 23 . A bull market right there. Top boost for this week. Tesla was gaining by 13. 6 . It appears investors were taking advantage of the weakness. Microsoft after gaining last week is down this week. Importantems, this is , they put up a disappointing outlook. One analyst is saying it has more to do with a slow recovery as opposed to a broader tell on the corporate i. T. Spend. This was a harbinger back in 2007. Lets hope this is a oneoff we are seeing out of cisco. Such great context. Lets focus on one of the key corporate, microsoft. It is a company that seems to have stayed out of the drama and antitrust battles. They might be inviting more scrutiny in the future. The Company Continues to i eye buying tiktok. We will continue to debate whether or not this is a good idea for microsoft. This is anto discuss analyst who researches and writes about u. S. China mediatech relations. From microsofts perspective, is it opening up a pandoras box in terms of Regulatory Oversight . Yes, absolutely. Microsoft was one of the few companies that didnt have their feet held over the fire in the congressional hearings recently. It had to do with the fact that they dont have social Media Properties and the exposure to misinformation campaigns that we see in Companies Like facebook. It is a significant liability that they would be taking on. On the other hand, they would be accessing a huge market. Caroline maybe the upside is weighed greater than the downside. I am interested in your take. Say microsoft decides not to go for tiktok. What then . The ability of President Trump to actually ran the app ban the app. This is the crucial crucial question we all need to be asking. Essentially, by setting up the executive order, President Trump was creating a dynamic where if this sale doesnt go through, millions and millions of users in the u. S. Are going to have to operate in a great firewall situation where they would be illegally using tiktok. We dont have the infrastructure to enforce a ban of specific software. Getting teens and grandparents off of tiktok is going to be a technically impossible task. The teens and the grandparents are doing dance challenges together. Thats why its popular. Caroline and adults and chickens. I am interested when you look around the world, what do you see . India has already gone here. Many chinese apps have been banned by that country. More heavilya much regulated internet landscape. They are they do have the capacity to ban specific apps. Australia is discussing the possibility of tiktok investment as is new zealand, canada. This is in many ways uncharted territory to see those countries and the United States start to think about are there apps we are going to ban people from using . Frankly, it is the sort of thing that requires longterm strategic and systemic thinking rather than executive orders. Caroline give us your longterm perspective and strategic thinking. Project youree working on right now is about data traffic between the u. S. And china. Amid all the headlines of whether or not the u. S. Takes a cut from microsoft buying tictac or if it can be done, whether or not it should be done. From your analysis, does tiktok take too much data . Is there a real threat that beijing does have more on us than we realize weston mark yes there is a threat as it relates to beijing and the type of data that is being sent to china through tiptop tiktok. There are other apps and platforms operating in the u. S. That have not drawn ire. Tois important for the u. S. Be regulating how consumer data is being stored and shared and integrated. Not just for chinese firms, but for u. S. Firms as well. That is a problem we see with facebook and google. They are not always using our data responsibly either. Caroline we will leave it on that note. Stay well. What one company is doing to address racial inequality in Silicon Valley. That is next. This is bloomberg. Caroline diversity hasnt been the first word to come up when inking about Silicon Valley. When thinking about Silicon Valley. Week, emily chang spoke with the ceo and asked about the biggest issues minorities and technology face. You have to appreciate we have been doing things wrong for 400 years. This isnt a new problem. There definitely is a pipeline issue. The bigger issue is the turn. Once you hire someone and they get into a position, it is important that they succeed. Hiring the right person is critical, but ensuring their success and giving them a support system, the training is the important thing. Otherwise, everyone goes off to the next job. We have seen recently last in first out. That is a big factor with covid and the unemployment numbers. It is critically important that people, once they have the position at they have proven themselves are given the tools to succeed. With so many people working from home, i wonder if the retention piece is even harder and if Companies Need to put more effort into making sure the people they are hiring are included and have a voice at the table. It is a doubleedged sword. Because what is happening right now is that meetings so long. They are not so exclusive. There is no excuse not to connect with someone. Even if previously your boss was in a different location, there is no excuse not to each out to them. We have people in north carolina, new york, new jersey, atlanta. It is easy for me to get on a call it everyone has to think in that manner. Youre not in the same place, you dont have the same personal connection, you dont have the camaraderie that might come otherwise, but there is technology can provide some relief. You work with Companies Like facebook, airbnb, peloton. Our companies doing enough . I hear from so many people that Companies Say that they care. They put money behind it but that not not enough money. Not making as much of a priority as it needs to be. That is interesting. The philosophy i operate with is that people Pay Attention to what the ceo pays attention to. Its not about the money, its about the focus of the ceo. Establishing the kb i as it relates to these initiatives. Making people are held accountable and its part of your review. If nothing is happening, its primarily because the ceo is not paying attention, not making part of his or her balanced scorecard. Facebook whereof they just put out there diversity report, they have made a lot of progress on women. Have not made as much progress when it comes to black employees. His Mark Zuckerberg doing something wrong . Under the ceo, everything is a problem. There are a lot of things he could be doing right. I have a lot of friends in facebook. They care. Mark cares. The challenge is, a lot of times, there isnt a Critical Mass of talent so that some of the shared misery, the challenges, there is no network or community to facilitate working through those issues. Thats what a lot of companies go through, not just facebook. Valencewhy we created so that Community Within facebook can connect in a safe place, and a meaningful way and help each other. You wants to, if solve that problem, he can. Any ceo who approaches it as a business challenge, we are talking about the smartest people in the world. Solve this he cannot is disingenuous. Its about making it a priority. Speaking the same week that the first black and indianamerican woman is on the president ial ticket. How much could that change things in a moment like this even though it is just one step forward . Friends, ia lot of have not met her. Actually, i met her one time. It is critical that she understands the challenges. She has been in this cauldron. Her background is not that she has just been elevated to this role. She served in every level of government and served well. She understands the challenges so that she could work to affect change from the very top. Also, change has to be affected from the bottom. No matter what happens in november, there is going to be [indiscernible] people are going to wake up and say we cannot rely on any help from the top, we have to do this ourselves and its going to be a grassroots movement. Or, companies are going to wake up and say we better get on board. Its not just Kamala Harris. It is clear that joe biden cares. Theres going to be a change in november or january however you look at it. We will see how you how the election turns out. You left a career in television to run this company. Tell me about your story and how your experience with diversity in media compares to Silicon Valley. I am not going to say i left. I am solving a problem right now have two. I engineering degrees. Even when i was in the Television Industry and reality, i was still focused on using data to solve problems. Our Business Model is not too different from netflix. In the fact that we are collecting a lot of data and giving consumers what they want when they want it. Caroline great interview there. Coming up, a growing list of companies that are becoming unhappy with the fees apple imposes on its developers. A time when Small Business has already been battered by the pandemic. Thats next. This is bloomberg. Caroline apple is back under the antitrust spotlight. Facebook along with a growing list of other companies are criticizing the App Store Fee structure saying its creating a blow to Small Business. Facebook announcing this within a push toward supporting Small Businesses trying to highlight that perhaps apple is unfairly charging the minimum where Small Businesses are under duress from the pandemic. I think that is exactly right. There is no hiding the motive which is facebook trying to drag apple at a time when others are criticizing it for the fee and a spokes strategy is clearly to satan not only is this fee a problem for us and our users but apple is hurting Small Businesses globally doing this. To pointarly an effort some of the issues that apple has raised as we have seen in the last month or so in the antitrust hearings and positioned itself as a champion while putting itself down as a competitor. Caroline what else are they announcing today . This is all wrapped inside of an announcement for a new feature called paid events. Product has an events that was pretty popular. People would use it when organizing a Birthday Party or a book launch. Now, those events can no longer happen in person. Facebook is saying you can hold your event over facebook alive video feature. Ve you can also charge. So a yoga teacher could charge to teach a class online. That was the news of this and facebook slipped in at the end, by the way apple is going to take 30 and isnt that bad for Small Businesses. Caroline talk to us about the duress that apple is under. This is coming from every direction and it was a concerted effort from epic games that came out yesterday. Quite an amazing pr stunt that the maker fortnite has pulled on apple and google. Think about the issue. Its not a new issue, it is something we have been discussing for years. The idea that apple and google take a sizable chunk of fees that are carried out on apps on their platform. People have grumbled and complained about it, but they dont have a lot of other alternatives. The hearing that happened earlier last month, where the tech ceos went to congress and had to answer questions about antitrust, that opened the door to the idea of some of these other Companies Like epic games or facebook coming out and criticizing these companies for the fee. Trying to capitalize on the vulnerability here. This is not a new issue. Its just new in the people are talking about so publicly. Talking about waiting for an apple response. Will we hear from tim cook in this respect . Do you think having such a heavy hitter as epic games which has financially done so well, will this cause them to respond in some way . Absolutely. I think apple did respond yesterday to epic games. We did not see a response from them to the facebook announcement today. Thing where,d of when this is a core part of your business, you cant just let other people control that narrative and continue to paint you in the way that your bad for business. You are bad for business. I would imagine this is only the beginning of what will probably between applealry and facebook. We have already seen some of that play out over the last couple of years. Caroline you spoke to a facebook executive with your story today. It seems as though the person in charge of the facebook app in large part says we are not going to do and epic games. We are not going to serve circumvent the rules. Correct. This was part of the pr strategy. Happens when what you go against the rules. The kick you out of the app store. That was her argument. We would love to be able to offer offer this to people that we cant because apple will punish us. She said we are going to play by their rules but at a price. Caroline great interview. Thank you. Coming up, salesforce coming out with new efforts to help schools reopen. This is bloomberg. Ebonycaroline this is bloomberg technology. While schools across the u. S. Debate and struggle to reopen salesforce is jumping in. We caught up with Ebony Beckwith, the chief Financial Officer, earlier this week to talk about how the initiatives play out. Ebony we all know covid19 has clearly transformed and continuing to transform every aspect of our lives. Whether you are in kindergarten or in college, education changed overnight. It is a real challenge for everyone. We want to make sure schools have everything they need to be successful right now with Technology Resources to financial resources. That means making sure every student has a device, Internet Connectivity n and assets the resources. We are excited to announce 20 million of grants to schools across the u. S. , in San Francisco, indianapolis, chicago and new york city. A total Global Investment of 118 million. We are excited. This is a Global Pandemic, but this is happening everywhere. Do you see the opportunities for this to go more broad or do other companies around the world need to be stepping up and doing this for their community . Ebony i think this is an epic unity an opportunity for everyone to chip in. This is not a problem for government. This is not a problem for schools. This is all of our concern. We have to be thinking about our students and their future. Always say philanthropy is not a competitive support. It is a collective. If everyone is doing their part, you can help out. Emily is there something you see helping schools get on the path to reopening . If so, how does that get done safely . We have seen the examples of the high school in georgia how that cannot go well. Ebony a few months ago, we launched a website for businesses and governments to do their number one platform. Navigate the complexities of reopening safely. It has been extremely successful. Now as School Districts plan to reopen their own classrooms, we are announcing work. Com for schools. Centertechnology command that gives schools the tools they need to reopen safely. I really love this product because its a technology command center. Its Contact Tracing so schools contract the spread of the virus. Enable schools to manage their facilities and shift. Unable schools to enable communications. Imagine being able to quickly reach out to families via text, phone. We are hoping counselors and Student Support staff will help remove barriers to give the students a complete 360 view. Emily do you think this will fundamentally change work and whether or not work will be more flexible and much more remote in the future, whether theres a pandemic aor not, do you see the same for schools . Ebony i am not sure. What i do know is we have an opportunity right now. We have to meet students where they are right now. Right now, theres a Global Pandemic and it is not safe for some places to reopen. We want to give them the tools they need to do that. Thinking about this the other night, when i went to school, it was 100 in person. That was primary school, i got to college. I had hybrid, options with online classes. Everythinge left, turned off. It was like a light switch. We all shelterinplace. Now as we reopen schools, business and government, it is like a dimmer switch. Slowly turning on the dial to figure out when it will be saved to do that. I think it will be a hybrid situation. Emily are you concerned about a learning gap for our students . You mentioned the Digital Divide that some communities will not be well served. Kids will get left behind. Ebony im concerned and that is why we are lending our resources and allowing others to step up and get involved. We stand collectively to solve this. With a little bit of ingenuity, technology and the resources, we have to make sure no student gets left behind. Emily joe biden just picked Kamala Harris as his vp on the ticket. The first black and Asian American woman on a major party ticket. Also, an oakland native. Im curious your thoughts are what this means, obviously, for our country but also for the Tech Community given her work in california and close ties to Silicon Valley . Ebony i can tell you that no matter the administration, we are committed to supporting education and ensuring we are equipping all young people with the skills and opportunities they need to reach their full potential. That 20 million we announced yesterday will help schools roll out new initiatives that can break the Digital Divide and help all students, including those at the greatest risk of being left behind. Emily you manage a lot of people. You are the chief philanthropy officer at salesforce. How does this pandemic change the way you think about you are managing your teams and how philanthropy will be different Going Forward . Ebony it is a really great question. Our work is underpinned by our values. Equity, impact and collaboration. We go over this every single time we have a team meeting. We know with covid19, people were impacted overnight. We saw that disproportionately impacting communities of color, but equity was one of our core values all along. We are looking to support communities of color and vulnerable communities. This has changed or interacting with each other and how were interacting with the communities we serve. We used to be able to meet physically. We cant do that. We have to come up with different strategies to work remotely. More importantly, when it comes to serving the communities, we can no longer go into schools. It is not safe for us, it is not safe for the kids. So, we have to reimagine our volunteering. We have come up with a how you can help page for our employees with a list of virtual volunteer opportunities around the world. We are doing virtual mentoring all over the globe. Its really forced us to think differently about how we approach philanthropy now and Going Forward. There,e Ebony Beckwith chief Financial Officer at sais lesforce. Spacex will increase their latest round of funding to 2 billion after news they are planning to launch a full mission with astronauts. Last week, spacex made history when its space module was the first commercial shuttle to bring nasa oste astronauts home. We could be weeks away from uber and lyft leaving their home state of california after a judge rules. Thats next. This is bloomberg. Caroline with the covid19 weighing on all aspects of american life, education, health care, employment, some say the pandemic has been felt particular heart in minority communities. Emily chang discussed it with several in the black leadership matters. Joining her was Chris Bennett of water school, and incredible health, and christian walker. Trust pods where parents are grouping up and getting the children together. One of the trends we are seeing, what this is leading to, those who have the best connections and the most money are able to monopolize these teachers and utilize them for the fall and for the spring. And my concern is that this is going to setback a large generation, a large number of children, a generation of children. Who is going to be hurt by the most . It is so hard to tell. But it is the folks who will not have access to those teachers. That is the clearest one. And the children that are not going to get access to the correct social, emotional education that they need to an academic education they will need. Emily do you think we should be looking at this as a year of lost learning . Is that what it is . Is this going to be a lost year for our children . For some. I think that is the scary part. Its going to be a lost year for some. Our most disadvantaged children and disadvantaged family. Emily you are on the front lines of the first responders, helping nurses get jobs at hospitals. How does this play out . The pandemic has definitely exacerbated inequalities in health care, too. So, even before the pandemic, black patients, even when you control for Everything Else age, insurance, so on had worst care and had higher mortalities with the went to hospitals. That is an uncomfortable reality. They actually get worse care. When the pandemic happened, we saw huge shift in telemedicine. Unfortunately, not every family in america has an ipad or a laptop at home and can access telemedicine services. So, they are thinking now the pandemic is going to further make inequality worse. Emily we have seen record joblessness, short of only the great depression. What does this mean for jobs across the country . I dont think we ever going to see jobs rebound at the levels that they were before covid. Emily really . We were already on the verge of this supercharge in automation and displacement of a lot of jobs held by bluecollar workers. Onlynk covid19 is going to accelerate that. It is going to be the response ability of the private and Public Sector to figure out a way to ensure that people can still make a living. Emily tristan, what do you see for retail Going Forward . I know a lot have moved online, but with people hurting, is Discretionary Spending ever going to come back . There are a lot of companies out there with a lot of money. There are a lot more companies with not as much. There will be consolidation. Its not that some businesses will go out of business, they just are already. I fear for those folks that are already kind of disadvantaged in that way and not having access to capital, not being able to get the loans they need, all that stuff, there will be the moneys interest that comes in and acquires those things. You are going to further widen this gap between the haves and the havenots. Caroline that was emily chang speaking with several. You can catch the full episode of studio 1. 0 black leadership matters, tonight at 7 p. M. New york time. Dont miss it. Lets talk another corporate story. The battle going on in california. Uber and lyft on the verge of being forced to suspend their operations in california after a San Francisco judge ruled that Companies Must convert drivers into fulltime employees with benefits. The ridehailing services have lost a request to keep the order on hold be on august 20. Said theceo today drivers he talks to understand the tradeoff of being independent contractors. Joining us now is Eric Newcomer covers the companies for us. Saying they are trying to find some appeasement. What is the very latest . Eric we are just sort of getting down to the wire here. We reallye next week, have to see whether uber and lyft deliver on their warnings they can leave. Been the closest we have for these companies to protest a major market like this. It is a striking situation. Caroline it has caused many a ceo to speak out. Dara speaking to the New York Times and reacting to the reaction of his oped he wrote on twitter, a stream of consciousness. Try to point out why his business is different than others. Trying to point out the flex ability he provides. He likens it to when you are working in a coffee shop, police cannot walk in anytime they want, decide to only make lattes, leave you in the morning rush and then returned to work at another coffee shop, but that is allowed under the law. Hes making light of what is a very serious situation. He goes on to detail that. I have heard that from many a company, not just uber and lyft, but some of the Gig Companies in the u. K. Saying this is what workers want. Do they want it . Eric i think it really depends. I think a key thing here is there are different categories of workers on uber. They are a group of drivers that work more than 40 hours a week and a major source of trips happening on uber. You can see why they think if they got injured, they might deserve some sort of protection. Why uber should give them standard employment benefits. But then, there are a lot of other workers, the majority of them may be doing less of the work who drive much less. They really sort of can jump on and jump off the app. I think uber is trying to have both classes of workers. The law is properly set up to handle the situation when youve time ande app all the other workers jumping down when they have downtime, when uber is in particularly large demand. Caroline dara outlining the current solution is not perfect. Being an independent contractor. They are trying to ineffective how theyproposals as can better reward drivers. Will that be enough to appease the legal arguments if you are saying the round hole in the square peg when it comes to what the law is trying to do to fit around this new mode of working . Has been i think uber trying to make this argument but it is getting frantic a little bit too late. California, the california legislator passed a law that the courts are implementing which was pretty clearly going to make it harder for uber keep arguing that its drivers are not employees. Then the thing i would add is that uber is playing politics here. Uber code give its drivers some of the benefits that its offering. Some of them might make it more likely they will interpret it as employees but we are already in that situation. Uber is trying to hold up all the things that could do in its imagined, new regulatory regime. Of course, they could do some of those things on its own. It is not just looking out for defending the drivers flexibi lity. I think thats sort of really a key piece to this. The other thing is uber is clearlly trying to keep its model going. If it didnt hurt it, it would be fine. Clearly, it does there would be a negative affect for its business. If this went through. Caroline great conversation. Check out his work on the bloomberg. Eric newcomer. Still ahead, another app citizen joined in the effort to protect users against covid19. We get the latest on tech role with the pandemic. This is bloomberg. Caroline this citizen app, while it is known for warning users of nearby incidents and now diving into the Contact Tracing business. It is offering the option to alert users if they have been exposed to covid19 and even send a free athome test. But, can it succeed . Emily chang recently caught up with founder and ceo andrew frame. Andrew i think nobody has ever seen it work. There is no playbook for this. Smart or new things. Smartphones and a pandemic are brandnew combination. We leveraged our Safety Network to find out for ourselves what Contact Tracing work. We have our first Government Partnership in place and we are securing others. We are open to working with governments. All we need to do is build an app that people download. It is up to the users to download, join forces, do this together and overcome this pandemic as a population. The product is free, anybody can download it. You get saved tracing. You get symptom tracking you can do with your friends. You get athome testing, right from your app, you can order and athome test and get the results right from the app. Tech at a time when other platforms have not necessarily protected by data, my identity, how can you ensure you will . Theres a lot of legwork to participate. You need to send in a photo of yourself and your i. D. And your test result. What about the hesitation some users might have . Andrew our mission is to keep our users safe, and that includes protecting the data. We take every measure and step possible to protect their data. What you are describing which is an upload of the drivers license is only if you choose to upload a test we did not fulfill. If you go to the local drivethrough, local clinic and get a test and put it into your safe pass, you have to put a picture of your i. D. We do that to protect the integrity of the system. If the Contact Tracing system is being generated based off positive test results, we want to make sure when you get a positive potential exposure notification, that was a result of an actual person who had covid which is the reason why you had you upload the drivers license. We upload the drivers license and test results together. If you take the test from citizen, you dont have to do that. A box shows up. You do a saliva sample, you sent it back. 24 hours later, we will get a notification on your citizen app that says results are available. The beauty of this system, it is not only are you getting a positive notification if you are positive, but all of the people you may have potentially exposed are simultaneously sent the potential exposure notification with the location and time where they were potentially infected, allowing them to take a free test through citizen. We call that the testing, tracing flywheel. With covid, it is all about speed. The integration of rapid athome testing, plus Contact Tracing connected and integrated into one system is to us a very viable solution for containment. Googlethe apple, notification system has not had a lot of traction. What are you doing differently . How do you intend to compete with that . Andrew we dont look at this as cap edition because we are in this together. We dont look use the apple, google api. We started using the system before the api was announced. We have built our own system that uses the architectural choices we have for ourselves. But its not a competitive thing. That solution was very much geared at governments looking to put out Contact Tracing systems. It is not clear the governments have wel the wherewithal to build app. Citizen is comprised of some of the great developers, engineers in the industry. And you really need that kind of team in the back and scale of security and infrastructure we have. Im not sure governments know how to build. Caroline andrew frame, founder and ceo of citizen, speaking with emily chang. Now, that does it for this edition of bloomberg technology. Wall street week is up next. Fu, in with scarlet with some really big guests. You dont want to miss it. This is bloomberg. You doing okay . Yeah. This moving thing never gets any easier. Well, xfinity makes moving super easy. I can transfer my internet and tv service in about a minute. Wow, that is easy. Almost as easy as having those guys help you move. We are those guys. Thats you . The truck adds 10 pounds. In the arms. Okay. Transfer your Service Online in a few easy steps. Now thats simple, easy, awesome. Transfer your service in minutes, making moving with xfinity a breeze. Visit xfinity. Com moving today. Scarlet off to the races. California senator, la harris joins team biden. The s p 500 fall short of a new record as Economic Data shows an uneven recovery. This is bloomberg wall street week. Im scarlet fu in for david westin. This week, special contributor Larry Summers of harvard. Julie suite. Julie it is the first step at a really truly scaled opportunity. Scarlet council on Foreign Relations presented richard haass. Richard on the short run, i am concerned about a military incident. In the longer run, im concerned about a u. S. Chinese cold war. Scarlet