Another bipartisan spending bill. The battle to replace Justice Ruth Bader ginsburg will be anything but bipartisan. The president said he will announce his pick on saturday. Joining us to talk about how the markets are digesting this news, bloombergs abigail doolittle. This is not what investors to hear. We got that big 200,000 number in the united states. 200,000 americans have died due to covid19. Talk to us about how investors are handling these continued mixed signals. Abigail that is a tragedy in the u. S. In terms of impact on the market, probably not so much. We are looking at the volatility on the backside of the huge rally in august. August was the best month ever going back to 2014. At this point, the nasdaq 100 where it was at the beginning of august. That slump that never deserved to happen according to some strategists has now been erased. Perhaps we are on a level Playing Field that on the day has taken the nasdaq and s p 500 down. You were mentioning the big drop for apple, down 4. 2 . What is interesting to stress for these individual companies, not much has changed over the last three weeks from the euphoria at the beginning of the month. It points to technical selling. We are seeing a mini version on the week so far. If we look at a threeday chart of apple, yesterday apple was up, on monday was up. Netnet, even with todays decline, apple is up slightly. That is a mini version of what we saw in august. The question is whether the bulls or the bears will prevail. Chris murphy at susquehanna about an hour ago told me he thinks the buy is to the upside, especially for apple based on the underlying signals he looks at. Emily meantime, tesla shares also tumbling, down 10 today, down 5. 5 yesterday on the back of elons tweets before the battery event. It wasnt as explosive as investors were hoping for. Walk us through the reaction in tesla shares. Abigail a very bearish reaction. Down 10 after falling nearly 6 yesterday. 16 in two days, pretty incredible. It wasnt all bad. Upgrade,p 6 on an suggesting more upside could be happening. Western digital up 6. 7 . Liking oracle not so much. There is tesla, the worst of the worst, down 10. 3 . It has to do with the fact that the company is not wowing in terms of its battery date. So much anticipation about what would be announced, a 25,000 electric vehicle is exciting, but not until 2023. Its best year since going public in 2010. This stock is not only priced to perfection, but it is a case of what have you done for me lately . Not satisfying the high valuation. Important to know tesla is hanging onto important support. Lets see if those buyers can get it together tomorrow or next week. There is some reason to think that could happen, at least right now. Emily shares have soared going into this. Abigail doolittle, thanks for bringing that down. Continuing on tesla, setting that lofty goal of making a 25,000 car by 2023. A cheaper car will be possible by innovating electric car batteries and cutting the costs in half. It did lack the sizzle that investors have come to expect from ceo elon musk. Ofare joined by tosha keaney ark investment group. It seemed tesla came on quite unprepared. Perspective, tesla announced they are going to reduce battery caused by over 50 , increase range by 50 and reduce the investment cost on battery factories by 70 these are incredible numbers. To hear something is three years out, as a longterm shareholder is changing the way electric vehicle industry works. For any traditional automaker to catch up to tesla now impossible. A 25,000 car that will have an even greater range than previous models, 400 miles lets say, will you do if you are a traditional oem and are struggling to get your electric Vehicle Program together . Maybe you are spending money on Technology Like fuel cells. It will be hard to catch up to the at this point them at this point. Emily that said, shares down almost 16 over the last couple days. Other investors may disagree with you. What are they not getting, in your view . the stock had a good run this year, so this could be pulled back. There might have been an expectation for a shorterterm event. Disruptivee tesla, innovation, that is for longterm shareholders. If you focus on the shortterm, you will miss out on the point at which an electric vehicle reaches price parity with a gas powered car. That will rage a dramatic Inflection Point in demand in the next two to three years. Again, you want to catch that exponential growth and you have to look to the longterm to do that. Emily lets talk about china. Shanghai factory would be making one million cars a car. That is another ambitious proclamation, given they just got to one million cars cumulative. What do you make of yet another ambitious stretch goal . Tasha we have already seen tesla pull off the impossible in china. Factories up and running in less than a year. They are frankly getting more support from the government than we would have initially expected when they decided to move into that market. I do think it has been a Success Story so far. I think Government Support is crucial. The Chinese Government knows they want evs to happen and they want to let the Technology Leader in. We have already seen them get subsidies and support there. I am not too surprised to hear that target. La is announcing now although these changes will happen over the next few years, if they have a path to reducing the investment cost by 70 , and then the factories are producing a lot more than they were in the past. One night elon said factory is producing what you would expect five to 10 to produce. It is not too difficult, knowing that background, that they would expect to have a relatively aggressive goal. I would say broadly, something i think investors are missing in tesla is the autonomous opportunity. It was mentioned a few times on the call last night. China is one of the largest markets for economist driving. Orthink that is f autonomous driving. I think it is crucial tesla has the stronghold there. Emily they said they would have a full selfdriving beta product out soon. Tesla is one of your firms biggest holdings. What do you think the Biggest Challenges are in terms of meeting your expectations . What are you going to be watching . What could the catch be . Tasha i certainly think this goal so yes, tesla is our top proposition. The goal of reaching fully autonomous driving, completing that is still really aggressive because no one has ever done that yet. Right now something hard to imagine happening we have not seen it yet. Waymo, googles project, has gotten close, but they had issues commercializing and scaling. That is not to be overlooked. We are talking about stretch goals for tesla. They are pulling off something incredibly difficult. When we look at our valuations for tesla, we only assign a 30 probability to that happening. It is such a large opportunity that it is worth looking at and putting the numbers to. On the flipside, lets say autonomous driving doesnt happen. Our most recent work is looking at what would happen if tesla were to launch a ridehailing network to set up the network for robo taxis anyway. It could be profitable for them to do so because they have lower operating costs than uber and lyft. They can basically take a higher cut of the gross revenues than competitors and potentially pay the drivers better. We think this could be much higher margins than the core ev business. Emily the Company Looks to help from a federal judge. Is it the companys hail mary . We will talk about the latest next. This is bloomberg. Emily tiktoks Parent Company bytedance asked a u. S. Court to temporarily block the ban imposed by President Trump. The companys deadline to sell its u. S. Operations or risk being banned looming in the united states. For the latest, bloombergs Foreign Policy reporter on the phone. Give us the latest. Youve got not just tiktok trying to get the courts to do something, but chinese staterun media calling President Trumps tactics dirty and underhanded. Where are we . Over the weekend, there was essentially a real feeling that the tiktok deal, where oracle and walmart were going to take a 20 stake and there was going to be protection of data in the u. S. , all that was waiting was the president needed to give his approval. He said he had given his blessing on saturday and the assumption was this was essentially a done deal. In the time since, you had two big things happening. Media asinese state you mentioned calling into question the deal, suggesting this is not a deal that china ought to make. Chinese media being state media dont do that without official sentient from the government. You have these emerging factions within the u. S. Government. Bloomberg is reporting today that bill barr the attorney general has some continuing National Security concerns. What on saturday seemed like a done deal is seeming a little less so. Emily right, and the Chinese Government, or at least staterun media making increasingly hostile statements. Does that signify china is souring on this and wont approve any kind of sale . Question is a was been how much of this is National Security and how much is politics . When you hear references to things like dirty tactics, it is a sign that there is a sense the president has overstepped his bounds, and regardless of the National Security applications of this, there is a political element too where the Chinese Government has to decide, okay, too want to do something President Trump will be able to portray as capitulation . He said tiktok poses a threat, demanding something be done. We have now arranged for this to be done, for oracle to take a big stake in the company, so what the president says goes. That requires chinese acquiescence. They are in the process it is difficult to get the full scoop directly from the Chinese Government in the process of saying whether that is a political calculation they want to make. Emily what is next . The deadline of september 20 has come and gone. What is the next step . Nick as part of a series of executive orders last week, essentially the u. S. Said if this doesnt happen with tiktok, we will ban it from the app store. We will still be able to have it on your phone, but you wont be able to get updates. It was believed when the president gave his blessing on saturday, that that deadline which comes due this weekend was no longer relevant, tiktok had nothing to worry about. Uncertain,is deal you are seeing tiktok growing increasingly concerned that regardless of whether a deal is in the works, they still may get that ban. That is why you are seeing a request for injunction where tiktok is asking a judge to essentially stay that order so it can continue to be downloaded in app stores. Fory thank you so much giving us that update. Ceotime, ciscos chair and told bloomberg at the bloomberg equality summit that the company will increase the number of black employees and leaders, adding its name to a list of Technology Companies promising to fix the lack of diversity in their ranks. The things that have occurred a 2020 that led to such list of actions and this focus on social justice i think have given us more energy. It is unfortunate, but it has given us more energy to make progress. We are having a broader discussion with our employee base. We have a long way to go. Facebook squashing its second Misinformation Campaign in a month related to the upcoming president ial election. This one was also aimed at distributing chinese propaganda across both Southeast Asia and the united states. More on the chinese operation next. This is bloomberg. Emily Facebook Says it detected and removed a small Scale Network of fake accounts aimed at stripping chinese propaganda across Southeast Asia and the united states. The accounts also pushed messages for and against President Trump, his opponent joe biden and former democratic president ial candidate pete buttigieg. For more lets bring in bloomberg techs sarah frier. Talk to us about this Chinese Foreign interference operation. How big a deal is this . Sarah it is another example about the a lot of interest there is in the upcoming president ial election, including by foreign governments. This is nothing on the scale of what russia did in 2016. Only a few hundred thousand people saw these posts. However, it does indicate facebook is going to have to top playing whackamole prevent these from becoming an issue for the election. It has to constantly be vigilant. Emily what do we know about the scale of foreign interference versus domestic interference . Sarah it is safety site the foreign interference problem is one facebook has clearly defined and knows where they are going to halt. They are especially concerned with content from people who are pretending to be somebody else. Andle posing as americans they are not americans, or doing the same in other countries. However, the people using their Real Identities to mess with the election and are spreading conspiracy theories domestically are a factor that facebook is not quite figured out how to deal with and have very vague policies on. You have seen that in the way they handle misinformation, including from the president , that they have been tempted to remove voter misinformation. Instead they are putting a label theirto give resources in election information hub. A lot of people have said this does not go far enough to protect us from the confusion that they expect after and during the election. Inly meantime, angie stone Facebook Communications tweeting facebook will be rejecting political ads that claim victory before the results of the election have been declared. Facebook said they will not take new political advertising a week ahead of the election. What do you make of this . Sarah the big question is, declared by who . Once all the votes are tabulated, that could take a long time. It is going to be difficult for facebook to sort out this information. Is anappens if there opinion . It is not something declaring victory, but somebody saying im sure we won. There are so many ways this could be vaguely interpreted. There is a lot of wiggle room there, so i hope there is more clarity to come from facebook about how they are going to protect us from the information on their platform. Emily must quick question last quick question, a piece came out today about leaks from facebook employees about internal meetings. A number of plies have spoken to you of employees have spoken to you about similar information. This seems to be an ongoing trend. I wonder if it is a sign these external issues are having a negative impact on facebook culture. We have about 30 seconds. Sarah there absolutely is a lot of tension internally in facebook right now. The company has been trying to reduce the amount of vitriol in the network. The same people who believe so much in the open speech of social media and the posting are doing internally and their workforce. It is so different from where we were. Emily sarah frier of Bloomberg Technology. An issue we will continue to follow. More of Bloomberg Technology after this. Talking peloton. You can go your own way go your own way your wireless. Your rules. Only Xfinity Mobile lets you choose shared data, unlimited or a mix of each. And switch anytime so you only pay for the data you need. Switch and save up to 400 a year on your wireless bill. With the carrier rated 1 in customer satisfaction. Call, click, or visit your local xfinity store today. Emily welcome back to Bloomberg Technology. I am emily chang. It rising gillette occult geopolitical tensions between the u. S. And china have led to rocky crossborder deals. We spoke with the head of americas banking at Mizuho Securities at how investors are approaching deal flows and m a in the tech sector. More proactive intervention or scrutiny, i should say, knowing the rationale is National Security or critical infrastructure. The person sitting in the white house clearly has a prerogative and ability to do that. I do think that is clearly a factor when companies are making a determination who a potential acquirer could be. That crates uncertainty creates uncertainty. I want to draw on your experience as a longtime Technology Banker because there is so much scrutiny from washington when it comes to these tech firms. What concerns you most about how it might Impact Investor flows or m a . All ofink the answer is the above. I dont think in terms of investor flows. I go back to a fundamental belief in the Market Opportunities and the players positioning and ability to capture that opportunity, and investors look at that as well as the operating profile as to whether to get into a particular stock. I am clearly not providing advice on that, but when it comes to m a or investment, youve got to go back to the fundamentals. Intervention can make sense to the extent you are protecting protectingghts, competition. However, you have to balance it with making sure companies can be agile and pursue new opportunities. At the end of the day, it is a game of balance. Will some of this scrutiny stop some of these Technology Firms by getting bigger from getting bigger in m a . I think it is very company specific, and i think it is sector specific. Because of the concept being competitive depends on the size of the market opportunity, the level Playing Field, so its hard to use a broad stroke and basically say that is going to determine whether to transact or not. Listingshave a couple next week that are pretty novel. Doing a direct listing. Given that mizuho is trying to enter the ecm world in a big way, do you think those models will be the model of the future . Its a great question, and someone asked me similarly a question around spacs. I do believe you are going to get this hybrid scenario where you are going to have the traditional villanelle vanilla ipos. You will have situations where companies decide to debut on the market as a spac. Whetherl tell as to direct Listing Companies are going to be able to attract the anchor investors that typically you spend the time during a roadshow trying to develop with your traditional ipo. Time will tell as to whether investors who come in early days are accumulating positions or are able to not just build their position, but stay with the company for the long haul. Katz with Mizuho Securities. In a bizarre turn of events, amazon has denied a partnership with echelon in the making of the prime bike, which was touted as a rival to peloton. The project was promoted by echelon and was listed on amazons website for 500. The ecommerce giant told bloomberg it is working with echelon to change the branding and stop the sale. Echelon said it was simply a miscommunication. I want to bring in Bloombergs Mark Gurman who has been following the story. It feels like it had to have been more than a missed medication if amazon was indeed not involved at all in collaborating on this bike. What actually happened here . Mark i have to tell you this is not terribly surprising to me. I know walmart has a similar situation with echelon. I see all the time these Smaller Companies try to say theyve collaborated or worked with a Bigger Company whether it be apple or amazon to try to gain more interest in their product. Know, their new onxa services debut thursday. If this was in amazon thing, why not save it for thursday . It sounds like echelon went too far in explaining their relationship with amazon. The collaboration probably came down to amazon selling it on their website, and i could see why amazon would be pretty upset with the prime naming. In a statement saying, this product was built by echelon to sell exclusively on amazon. We are working to rebrand the product and get it up for sale as soon as possible. Amazon, saying the bike is not an amazon product. We do not have a formal partnership. That said, i wonder if the marketing actually accomplished what echelon was hoping for, because they got a lot of publicity. Mark absolutely. Im sure a ton of people bought this bike. Maybe for amazon, they see there might be some interest in a product from amazon. If they do it, the communication and product will be better than this 500 bike. Emily echelon gave amazon an idea. Do you know how the bike compares to peloton and to the other options out there . Obviously, peloton has the market share at this point, but is there an opening for up and comers . Mark what you see amazon starting to do, and they showed this with the health band they released they are trying to sell products at a low cost hardware wise and throw a subscription price on top. I think there could be room in his fitness market that peloton is creating at this higher end for something that is half the price or one quarter of the price of pelotons offering and offering it through a primelike subscription. You can see amazon once to get in that space. The big difference with your original question is the lack of that screen, that interface, and amazon has years and years of building interface, the androidbased tablet that they could rep ok replicate. This could be an area that is prime for amazon to enter, and given their distribution, operations, software and hardware integration, this could be an interesting area for them to explore. I would be surprised if they announced a bike tomorrow. Would i be surprised if they announced a bike the year after . Probably not. Emily tomorrow, Amazon Holding its devices day, which we will be covering, and we will see if a bike is on the list. Thank you so much for joining us. Coming up, the cdc has said americans can expect a covid19 vaccine by april, but will it be available to everyone at the same time . We are going to hear from dr. Anthony fauci next. This is bloomberg. Emily Johnson Johnson has begun a trial of its covid19 vaccine with up to 60,000 volunteers, marking the big first big u. S. Trial that may work after one shot. At cdc say 7 million doses should be available by april of next year. There is growing concern that minority groups may have inadequate access to vaccine trials. At the bloomberg equality summit, dr. Anthony fauci spoke with David Rubenstein to discuss the countrys plans for distribution when the time comes. You about ak concern that has been expressed by an oped in the New York Times about whether people who are minorities are being adequately represented in the covid19 phase three trials. What can you say about that . Dr. Fauci we are trying as best as we possibly can to get equitable representation of africanamericans, latinx, and other minorities. We are doing better with the latinx, but still, we have to do much, much better with the relative percentage of africanamericans in the trial. Theres a good reason for that, david. When the trials ultimately get shown to be safe and effective with regard to the candidate vaccines, we want to be able to say with confidence that they are safe and effective in all demographic groups. There is a concern in the Minority Community that when a vaccine is available, wealthy white people will get it first, and it will trickle down to your the last people who will get it are minorities who may need it more than wealthy white people. What can you do to assure people that people of minority backgrounds will be getting this in the same, fairway it should be distributed . Dr. Fauci there will be a prioritization. Classically, notwithstanding covid19, whenever there is a shortage of vaccine in the sense of when you are rolling it out and you dont have all the doses, classically, the advisory cdc whoe advises the makes that determination about what prioritization is going to be done. We are complementing that with another group from the National Academy of medicine, which has recently met to give a recommendation. We dont know what the decision is going to be, but i can tell you from past experience, clearly people who can benefit from the vaccine the most and those at the highest risk of serious complications will be in the higher priority. Almost certainly, the First Priority will be the front line workers, the people such as the Health Care Providers who put themselves at risk, but close behind them will likely be people who can benefit the most, and almost certainly that would include minorities. Minorities often might be in the lower income strata. Perhaps they say, thank you for putting me at the front of the line, but i cant afford the vaccine. What are we going to do to make sure people who cant afford it are going to get it . Dr. Fauci that was a very important question, and we were at the task force meeting. When we were asked that question, will the government make sure that that is not the case, that people who cannot afford it first of all, the vaccine itself is free. The federal government has prepurchased those. The vaccine itself is free. If there is any fee, it is going to be associated with the administrative aspects of administering the vaccine, and that should not be something that gets in the way of poor people receiving it. Emily dr. Anthony fauci, head of the institute for allergy and disease. Of the watch more bloomberg equality summit here on Bloomberg Television and bloomberg radio. Catch it live on the bloomberg at alive go. For more on the current state of Vaccine Development, i want to bring in bloombergs riley griffin. I want to start with Johnson Johnson and the possibility of this one shot vaccine. Where is johnson and johnson right now . Does that mean one shot forever, one shot every year . Riley that is a fabulous question. Wasand announced today it launching a 60,000 person final stage trial of its coronavirus vaccine, which brings it into the fold of only a handful of front runners conducting trials in the u. S. Other front of the wunners, and you may kno their names, pfizer, astrazeneca dosehey are testing two regimens. What is so novel about this itouncement is j j announced is only going to test a single shot vaccine in this late stage trial, and that will lower barriers when it comes to distribution, but it will also expedite the time it takes to complete this clinical trial. Was a fewd johnson months behind the front runners, and now it expects to be able to approach an emergency use authorization in the beginning of 2021. It will have data on whether or not it is safe and effective as soon as the end of this year. Is trying ahis, j j twodose version of its vaccine chief medical the officer told me just this morning that they want to get through trials quickly, and they know a single dose has shown in earlystage studies in an animal model that within 15 days, they can get to a level of protection that is strong. They have moved forward with that single dose into this final stage trial to try to get to market a vaccine as quick as possible. Are some other possible advantages to the Johnson Johnson vaccine, that it can be refrigerated for longer periods of time then other vaccines, but would you still need to get that single shot every year as the disease people just like the flu shot . Riley the reality is we dont know the answer to that quite yet because we dont have data that is longterm. We have not seen results to know how long these antibodies will last. Ceo,speaking with pfizers he told me it is quite likely we will require a flu shot approach to the coronavirus vaccine, but for the interim, all of these vaccine makers, all the front runners, their goal is to see if there is protection whatsoever. The question of how long immunity will last comes next, and that is why it is important Johnson Johnson is simultaneously testing this todose regimen in europe as it is proceeding with the onedose regimen in the u. S. Emily according to your reporting, what is the timeframe, the soonest a vaccine could be available to the mainstream American Public . Is it april . Is it late this year . Is it the middle of next year . What are we looking at this point . Riley it is one of the most contentious questions. Simultaneously, you have pfizer suggesting it might have data as soon as october, making it under an emergency use authorization for some shots by years end. If you ask experts, former fda commissioners, when will the vast majority of americans have access to a shot, the answer tends to be middle of next year towards the end, as well. My money goes with them. The broadeston amount of the American Public having access later next year. Griffin who is covering this very contentious and fascinating Vaccine Development for us, thank you so much for that update. Coming up, nike crushed its earnings with some analysts saying the footwear giant is in a better position now than precovid. We will talk to one sneaker ceo on the state of demand and the impact of kanye west. That is next. This is bloomberg. Emily the pandemic has taken its toll on a number of businesses, but for some Company Business is getting even better. Nike shares surged after reporting Digital Sales jumped over 80 . Lou, the ceo eddie and founder of goat. Thank you for joining us. Obviously, that is a huge number. You are raising a lot of money. What is the growth you are seeing that justifies that . Eddie thanks for having me. It is a great day here at goat. Its a testament to the hard work our team has put in since 2015 when we launched the sneaker marketplace. We have launched internationally, launched new verticals such as apparel and accessories. Members,ver 30 million six hundred thousand sellers, and over 350 brands on our platform where we are fulfilling our mission of becoming a Global Platform that brings together the worlds greatest products from the past, present, and future. We are excited to bring on d , especially as w have accelerated growth. Emily sneaker culture has been driven by some specific personalities, and one of them is kanye west. Im curious what impact he has had on the sneaker market, and if that is at all being undermined by some of his controversial statements. Eddy when we launched in 2015, that is when kanye partnered with adidas. We were heavily skewed with adidas, and we saw a lot of sales. You cane over 100,000 choose from, and yes, you can buy that limited addition, but what we have seen is over 40 of our sales on note are under retail. We have become the best place to buy sneakers, period. Emily lets talk about the competition, nike crushing its earnings expectations. What do you make of that in a pandemic no less, and is that similar to the growth you are seeing . Eddy nike is an iconic brand, and we aspire to be a brand like them. I think very symbiotic relationship between the two, weve seen similar growth based on their earnings for digital, we are seeing great growth, and they mentioned jordans are increasing. Ever since the last dance documentary aired, we have seen jordans increase, as well. Sales increased 76 on goat. Numbershat do these tell you about the future of online versus offline sales with regard to apparel and shoes in particular . Eddy we already saw a secular shift towards ecommerce precovid, but post covid, this shift and trend has only turbocharge as shopping in stores is no longer an option for many people. That is here to stay. Goat, theyshop on see how much more superior it is to shop on goat versus a traditional retailer. I mentioned 100,000 unique styles and sneakers on goat. A traditionalo retailer that has only 200 on the wall. We have 100,000 unique styles from the past, present, and future. They can get exactly what they want. These types of things are unique differentiations that goat can provide. Emily it will be interesting to see the impact that ai and vr will have on the retail sector. For lu, thank you so much joining us. We will keep our eye on your marketplace. That does it for this edition of Bloomberg Technology. Australiadaybreak is next. I am emily chang in san francisco. His is bloomberg give you my world how can i, when you wont take it from me you can go your own way go your own way your wireless. Your rules. Only with Xfinity Mobile. A good morning and welcome to bloomberg daybreak australia. We are counting down to asias major market open. Haidi wall street slumps to an eight week low after warning from various fed officials for the need for more stimulus in the u. S. Economy. The s p 500 crossing a threshold many see as a market correction. The tiktok drama turns another page with owner