Nominees. And, election security. It is at the top of everyones mind. What the cloud flare ceos company is doing to thwart cyberattacks. Plus, highlights from my interview with Disney Ceo Bob Chapek in the last hour. Disney plus shares jumped in afterhours trading. First, lets get up to speed with all of this market move. Tech dominating the day. Mastec registering its best day since april. Abigail doolittle, what a day. Abigail the nasdaq 100 having its best day volatilead all of this action, speaking to the big gains in august, the big selloffs in september. We now have the nasdaq and s and p trying to take back on those alltime highs. A new wants to this is this year, in 2020, these big internet stocks are considered to be quote unquote defense. The companies have really been outperforming from the stayathome trends. Apple up more than 6 . Its best day since july 31, when the stock had surged by 10 . That is the degree of the buying power. We are seeing how much the investors and traders momentum folks really believe in this story ahead of the iphone 5g event tomorrow where four phones are expected to be revealed. Amazon, the prime day event starts tomorrow. Also higher 2. 6 . It was a strong rally for big tex but also a narrow rally. And, i said risk on relative to stocks, big tech, the internet companies. Not right across the board though. For the holiday, bonds were closed. The yen rallying for the second day in a row. Crude oil down as perhaps a parish tell on actual economic activity. Some disturbing virus data out of europe and globally. Transportation average up just slightly. That is a really good tell in terms of what traders are thinking around the virus. Risk on for tech and big internet stocks. Overall, we will give it a risk on star. Caroline we are excited to see how it lines up tomorrow. That of course honey holiday for many with that of course on a holiday for many. Of course, it was a day of politics as well. The Senate Judiciary committee wrapped up day one in the confirmation hearings for judge Amy Coney Barrett. They erected into a partisan clash. Bigsenators, both facing elections in coming weeks, senator Lindsey Graham of south kamala harris, the democratic Vice President ial candidate, pulls no punches. Vacancy from a Great American woman and we are going to fill that vacancy with another woman. A nominee that will take Health Care Away from people in the middle of a deadly pandemic that is already killed 214,000 americans. Caroline insight now from someone who has voted on a dozen Supreme Court nominations. He was considered an architect for many of the parts that make up the health care system, former montana senator max bauc us. Was it more volatile than expected or less . Mr. Baucus the gorilla in the room is november 3. The election for u. S. President and the senate and house. The first nominee that came before me on the Judiciary Committee was justice oconnor. Times were so different back then. There was no politics involved. Inquiries into the confidence of integrity, temperament of a nominee. Judgment we passed on as senators. Supported 990. Contrast that with the hearing today. Covid leaves a cloud in the room and the country. Notnd, republicans are looking to ask questions, they just want to get her voted on as quickly as possible. Democrats know they do not have the votes to stop her, so they are using the opportunity to criticize trump and his probability of overturning the Affordable Care act if he is elected president and that judge barrett may also rule if she is on the court to overturn the Affordable Care act. The Supreme Court and federal judiciary has become so politicized over time. Frankly, the court should really be independent, it should be judicious. Large, most of them are good people, they try not to get involved in politics. Time it is unfortunate. Caroline it is interesting, amy pony Amy Coney Barrett herself spoke about the fact that the courts are not designed to be this arbiter of public policy. Courts have a vital responsibility to the rule of law, which is critical to a free society. But, courts are not designed to solve every problem or right every wrong in public life. The policy decisions and value judgments of government must be made by the political branches, elected by and accountable to the people. The public should not expect courts to do so, and courts should not try. Caroline senator, whatever the case, if she does indeed become the next member of scotus, she will shift it to the right. What do you think that means for policy as it regards health care . Mr. Baucus her past opinions indicate that if she is on the Supreme Court, she might rule to overturn the Affordable Care act. Two years ago, she roundly clinton she roundly criticized chief Justice Roberts opinion to uphold the Affordable Care act. All justices are very concerned about their legacy. They want history to speak well of them. They will be taking their job very seriously. Sure, she is a conservative. She wrote that opinion critical of chief Justice Robertss opinion, but she will take that job seriously. And others on the court will too. It is hard to predict the shifts, the changes of different judges, depending upon their skills, how they can persuade other justices to their point of view. I think it is clear that she will be confirmed. She declined to overturn the Affordable Care act. That had very dark implications. It should not be taken categorically that she will rule that way. There are lots of ways to skin a cat. Congress can find other ways to protect Peoples Health care. They can find a way to make sure that preexisting conditions are honored by insurance companies. Things change. She willk that probably be confirmed, and it is sad that the proceedings are so political that we will have to find a way to uphold. Caroline lected if biden is elected, do you anticipate justices to be added to the court . I hope not. The last time it was attempted tried and thatdr got nowhere. But it did have an influence on the court. Subsequent Court Decisions reflected his views. The size of the court has been changed six times in american history. Once you go down the road, it makes it even more political. That sets the precedent. I think it is a bad idea. Gayline you are not only former senator but a former only a former senator but a former ambassador to china. We have seen a rally of the chinese yuan against the u. S. Dollar on this anticipation that a biden win will be gay changing relationship between the u. S. And china. Do you think that will be the case . Mr. Baucus full disclosure, i am supporting joe biden for president. In fact, i am raising money for him. I think there will be a change if he is elected. Undera still, even President Biden, will be concerned with china, concerned with chinas actions in hong kong, American Companies not getting proper market access. Joe biden is very concerned. Approachit will be an that is more stable than the approach of our current president. Tweets, worked to try to find agreements with president xi jinping. With ourill work allies. In europe, japan, south korea. That is going to cause the carefulto be very, very , because they know that if United States and allies are working together, that is a powerful force that will be difficult for the chinese to oppose. Joe biden wants to work with china, xi jinping wants to work with the United States. American business wants to do work in china. Tie. Trong promotional nevertheless, the politics will be difficult. I think President Biden will first focus on strengthening the u. S. Economy, infrastructure, education, etc. , before he makes a big change in policy toward china. It will be difficult and it will not change a lot. Caroline awful lot seem to unravel. Ceo mark, Facebook Zuckerberg changing his stance on Holocaust Denial content after years of controversy. Later, shakeups in the house of mavs. Disney shaking up management ranks. Part of my conversation with disney plus ceo bob chapek. This is bloomberg. Caroline Facebook Says today that it will now ban posts about denial of the holocaust. It is a reversal of a longheld policy. Ceo Mark Zuckerberg was highly criticized in 2017 for saying in an interview that facebook did not remove the content because there are things that different people get wrong. Courts,kerberg himself, course, a jewish leader of the business. Because was surprising just two years ago, he used this specific example as a reason for his defense of free speech on facebook. He said, i will allow people to say this. The fact that he kind of changed his mind on that is a sign that facebook is not starting to look at just free speech as this blanket statement, but really, do these beliefs actually harm people. This could cause some harm. Eloquentlystory so puts, this is not the only form of denial we have seen on facebook. Not at all. We asked, does this new policy cover all types of genocide denial . The company said, no, this is specific to the holocaust. That people could share misinformation about. While this is a step in the right direction, it is never allencompassing. My guesses are is that they may take another stab at some point if they start to see more of this. Saw a statement, Mark Zuckerberg himself took to facebook to lay out his focus on this. Hasaid my own thinking evolved. It already has evolved to a certain extent at facebook, hasnt it . Kurt it has. It has always been said that the best way to change mark give himgs mind is to the data, show him the numbers. A study that facebook conducted that showed about a quarter of people between 18 and 40 thought the holocaust was a myth. If you look at those numbers, this is a dangerous thing to continue to let spread on our service. I think those numbers in particular seemed to really help him make the decision. Caroline we have already seen misinformation regarding q ano o and the like. Is it going to be postelection . Is it all in the runup to the election that these become hot potatoes . Kurt because the election is coming, Mark Zuckerberg himself has said he is worried about civil unrest, violence. I dont know if that relates to Holocaust Denial is a but certainly qanon. I think the last thing they want to do is get to election day, see things playing out, that started because of conversations happening on our service. Caroline always great to see you in the flesh. Eyes on ahead all apple. The stock is up about 6 . Remember, it is a 2 trillion company. More on that next. This is bloomberg. Caroline all eyes on apple tomorrow. The company is set to launch the highly anticipated iphone. Here with a preview and more on what this phone could mean, Equity Research analyst at deutsche bank. For a company with this market cap is phenomenal. Our people getting over excited . The move today and frankly over the course of this year, it certainly highlights that Investor Expectations for the next generation of iphone products are certainly high. Iphone counts as a majority of apples revenue. In this particular cycle, it appears to be pretty packed. You mentioned 5g technology. They also will release a broader variety of screen sizes, the broadest variety in the history of the product. In addition to other features that we think has Investor Expectations relatively high. Caroline to a certain extent, the infrastructure in america is not ready to support it. 5g is fast and furious but only in limited parts of certain cities. How much willie 5g phone really make much difference when you have one in your hands . When we think back to the last time apple materially changed the speed the phone could achieve, people work buying iphones every two years. Now, the average buyer holds it for a long period of time. Future proofing their products here. To hold onto the phone for three or four years, this is a technology they will want to take advantage of going forward. Caroline the infrastructure is there in china. How much will that be a focus . China is a large and meaningful market for apple. It seems to have a luxury presence, luxury perception if you do have an iphone. China is significant especially as 5g is very pervasive. Caroline of course, we have earnings coming in little bit later. What sort of data do you think , theill be able to parse unveiling of their most important feature or product of the year . This will be a very interesting quarter for apple. The iphone as never been delayed this much into the quarter in the history of the product. Typically, that we have been talking a month ago, apple would typically have 56 weeks of real iphoneata about this new with which to forecast what the december quarter may look like in terms of their financials. Next week to a couple weeks from now, apple will have significantly less data, perhaps may be only a week of data to forecast. It will certainly be a different quarter for apple. Well see what happens as we approach earnings. Caroline it will be an interesting day tomorrow. We thank you very much for spending some time with us ahead of that. Some breaking news. President trump has been testing negative for covid according to the white house physician. He has tested negative on consecutive days, we understand. This is important as we see President Trump start to hit the campaign trail once again. But one weektal ago. It was monday this time last week that he was heading back to his residence. Ofing up, an extended period remote work has opened the floodgates to cyber criminals. We will speak to the cloud flare ceo about disruptions and how his company is benefiting. Shares up more than 20 as they launch a new product. What he is seeing in terms of cybersecurity and new product launches. This is bloomberg. So youre a small business, or a big one. You were thriving, but then. Oh. Ah. Okay. Plan, pivot. How do you bounce back . You dont, you bounce forward, with serious and reliable internet. Powered by the largest gig Speed Network in america. But is it secure . Sure its secure. And even if the power goes down, your connection doesnt. So how do i do this . You dont do this. We do this, together. Bounce forward, with comcast business. Caroline welcome back to bloomberg technology. I am Caroline Hyde in for emily chang. Cloudflare unveiled cloudflare 1, a new platform aiming to keep the Remote Workforce more secure. Matthew prince, the ceo, the markets are a funny thing but up more than 20 of the day is quite phenomenal. Talk to us about this new network as a service platform. Cloudflare 1, we think of the remote network. Employees andyour secrets into a capsule and that is where you get all your work. That has faced a series of challenges over the last five years where you had almost four horsemen attacking it. Mobile, more people working from the road. C cloud, that data was not stored. Software accelerated it more. And covid has is all working remotely. At cloudflare, there was something we realized we could do about this. Help empower our customers to have a future proof Corporate Network and empower what is known as a zero trust model. That is why we have launched the network which spans over 200 cities around the world to deliver this next generation Corporate Network to all of our customers. Caroline how worried are your customers about the resiliency because so many work from home and will do in the longerterm . Matthew it is one of the things cloudflare celebrated our 10th anniversary. I thought back on how much different the world would have been had we all gone through the covid pandemic in 2010 versus 2020. I think one of the things we are proud of as a companys we have enabled our customers to be able to scale to Unprecedented Demand and also deal would have been incredibly challenging cybersecurity challenges over the course of the last seven months. And our team is proud of that work and our customers are more reliable because we exist. Caroline you have been doing a lot of studies. Any data that really shocks you in terms of how much more instances there are of attacks, phishing, some sort of capability to that veil of security . Matthew i think everyone realized if they were running a Corporate Network before this year was they were really putting bandaids on trying to hold things together with vpns and firewalls and load balancers. They kept a box after box. They saw what the challenges were. People,talk to various almost 80 said they realized what they were doing didnt make sense for the future and they really came to understand that because of what we are living through with covid. By providing this new service, we have been very proud of the customers we have earned and are helping make sure they can continue to thrive during these challenging times. Caroline all of us are not only focused on working from home, covid, but also the president ial election in the United States. Many are worried about the implications for hacking and cybersecurity threats that build up amid the campaigning. Is that something you are seeing or navigating . Matthew in 2016, when we watched the election, we saw other Technology Companies have their platforms be used to subvert the democratic process. We realized we had a duty to do something to make sure that democracy functions the way it should. We launched something called the athenian project which helps at no cost local and state officials who are today helping more than half of u. S. States protect their election infrastructure. We are really proud of helping making sure the parts of the election infrastructure we can stay safe and secure so far. Knock on wood if i could, but so far, it does not seem like cyberattacks have been a significant risk. I think the action microsoft took today is very important for us to stay in front of this and we are monitoring it. We have a team that stands ready at no cost to up any state or local officials that need help with cyberattacks in the election ahead. Caroline kudos to you. Talk to us about how risky is it out there as an individual when navigating Online Business or just interaction . Matthew there are a number of challenges that come online. Was aicrosoft did today large botnet and what that is is a number of different computers, like the laptop you have, but ,lso the street camera closedcaptioned television camera, those have computers in them. The risk that creates is that can then be used to potentially overwhelm legitimate infrastructure with Something Like a dialup service attack. Microsoft helping disrupt that botnet is a very positive factor. We work every day to make sure those botnets that are still active cannot farm our customers or create any problems for them. Caroline congratulations to you on the new product and to protect the u. S. Election. Up moree you will say, than 20 , it was a good day. Great to have some time with you. Coming up, censorship concerns continue to dog social media leading up to the election. We will take a look at youtubes personality and why one personality continues to taunt the giant. And disney refocusing on its thriving disney plus service. Our conversation with ceo bob capek is next. I think we want to take a consumer first approach. We want the consumer to guide us on what they want to see kind coinntent. Theyre telling us they want to see more and more content on disney plus. Caroline social media companies, facebook and twitter, have been on the hot seat leading up to the president ial election but what about worry quarter of American Adults get their news, youtube . Voicing concerns over the Popular Video platform. I thought open exchange of ideas was welcome on youtube. No. This is why no one believes you. This is why no one believes you, and i hope there is some legislation that forces you to answer for this idea of being a public platform. Caroline lets dig into this particular individual. Mark bergen has written this morning on crowders battle with youtube. Hating on the hand that feeds to a certain extent. More conservatives have been voicing he has been doing with the dance on youtube and seems to be hitting on their lack of consistency. Mark publicly, and in private, he told me he wants to have a good working relationship. It site has told him welcomes conservatives and it wants conservatives there. I think he has become this fascinating figure because ted cruz mentioned his treatment last month during an antitrust hearing around google. He has become this lightning rod for what a lot of ted cruz and other politicians claim is anticonservative bias, being silenced. At the same time, he rose to fame last year after another youtuber accused him of repeated harassment. Since then, hes gained a much bigger audience and has become one of the more popular political commentators on the site. Caroline leaves a bad taste in your mouth when hes accused of allegations and wins more fans. Im interested in the role of youtube. We were focused on the facebook story earlier. They are trying to push back and clamp down on Holocaust Denial. We know that can often unfold and offer a lot of other questions as to why they are gatekeeping other areas. How does youtube balance that . Mark it is more complicated because google is supplying the economics. Controversy was not necessarily because his videos exist on youtube. Last summer, they removed him from their advertising program. In august, they were turned him they returned him. Some employees and critics have been upset about that. ,oogle has taken a lot of heat pulling down a federal conservative website for some of it take comments. What google has, the dominant digital advertiser. They provide not only the platform, but a lot of the economic field. That is where it becomes much more complicated both for the company and any potential legislation. Caroline legislation going forward, theres going to be a hearing virtually on capitol hill. Talk to us about what we can expect. Mark this is set for later this month. It will be around section 230, which is a part of the communications and decency act which deals with providing, shielding the Tech Companies like google and facebook and ,witter from liability President Trump and other politicians have suggested rewriting that law. Theres a lot of disagreement about what that would look like. The bigger question is if the platforms become liable for their content, they were probably much more aggressive in their moderation given that they have legal responsibility. That can have some unintended consequence where they actually start to remove a lot more people from their user generated sites. In the past, where they have limited regulation, they have been able to keep this much more free market of ideas. Caroline mark bergen, always enjoy reading your stories. We thank you. As we have been covering, disney said today it is making massive changes to the management ranks and organizational structure to focus on its disney plus streaming service. I spoke with bob chapek earlier about how the move will affect content contribution. Bob we want to take a consumer first approach. We want the consumer to guide us on how they want to see content. We have the greatest franchises, the greatest executives steering the direction of our content, the greatest filmmakers. Consumers need to tell us how they want to enjoy our content. Is it at home, in theaters, is it on our platform with disney plus . We are going to go ahead and take their cues. Right now, they are telling us that they want to see more content on disney plus and hulu. Caroline you just released mulan, direct to disney plus. You announced that soul, a new production, will navigate away from theaters. What is your gut telling you in the longer term . Is this something just in the pandemic or more and more will you be going straight to disney plus . Bob consumers will have their choices. Obviously, the pandemic has affected the speed with which we are looking at things. This move we made today would be happening with or without pandemic. We want consumers to have more choices. We want them to steer the ship. Obviously, we have a lot of great relationships with legacy distributors. Some of them are inside our own company. At the same time, we are going to take our cues towards the future, looking at it with a sense of vision and continuing road we have been on with a direct to consumer future. Caroline this has been unsure days, weeks, months and the making. It is interesting last week, we an activist investor basically calling you to focus more on content saying, invest your dividends, roll up together hulu, espn plus, disney plus into one. How much did you take that learning . How much did you already do you have an amount in your mind as to how much is going to be going on the making of content . Bob as you suggested, this has been in the works for many months. We see the trend and receptivity and acceptance of disney plus as first choice for consumers. As it pertains to our investors, we really like to hear from our investors and appreciate any thesis they want to forward. At the same time, we have to do what is right for our business. In this particular case, we agree that direct to consumer is a great opportunity for the walt disney company. To do that, we will have to make huge increases in investment in our content. We are ready, willing and prepared to do that but i will not comment on any decisionmaking that our board will do in terms of a dividend going forward. Caroline what about the amount that you spent . Netflix spends about 15 billion a year on content. Are you looking at that magnitude . Bob again, i will not comment on any specific number. What i will say is we will have something new virtually every week on our platforms, across all of our franchises, between pixar, disney, marvel, lucas. We have got some really great content. Our guests love it. There is so much story to be told, so many avenues to do it in. How do we go ahead and take those content Creation Centers we have inside the company, those franchises, and catalyze them to make the content we need across all of our distribution channels, but especially the direct to consumer channels. Caroline that mustve hurt a lot to announce 28,000 job cuts last month, a quarter of the themepark workforce. Isk to us how difficult it to make such decisions at the moment and how optimistic you are about possibly returning to growth . Bob our cast members are the center of the magic at our parks. Every single castguest interaction is an opportunity for us to make magic. For us to make a decision like we did is particularly painful. We are looking forward to a more optimistic future where we can welcome our guests beyond a particular limit every day in the park, to keep that sixfoot social distancing, to open up our cruise ships. Reopen disneyland hopefully sunday. And really move forward with our business so we can employ as many cast members as possible and bring the magic back to our guests. That is what we are all about. Caroline Disney Ceo Bob Chapek. A prime day preview even in the face of economic and Public Health crisis. Some anticipate amazons annual shopping event to have an alltime record. This is bloomberg. We are going to do with our own capital. Promote weg to are going to put our money in, because the company, it is ideal for companies that are ready to go public months from now and want to do it with certainty maybe six month earlier. Those are the ones we invest in. Caroline a summer of spac. That was softbanks misra. Hes helming the vision fund and says Softbanks Vision Fund will outline plans for a Blank Check Company in the next few weeks. Part of the Milken InstituteVirtual Conference that kicked off today. We will bring you more highlights from the conference all week. Initially delayed for july, a late amazon prime day means an early start to the Holiday Shopping season. Analysts predict the ecommerce event will be the biggest and amazons history. Joining us is the cofounder and president of an ecommerce and advertising intelligence platform. She brings a decade of Prior Experience with amazon when she launched the retail business. She did so much more with the media group as well. How do you think it is going to go . It feels as though it will break a record. Absolutely. Already, the analyst emarketer predicts this event will be up 43 this year over last year and hit almost 10 billion in worldwide sales. A big thing is the impact of prime membership that will surpass 50 of u. S. Population, which is huge. I definitely think it is going to be a big event. All the traffic moving a line. Moving online. People are not stopping as much in store and being driven to esales. Caroline covid has been a storm, but amazon has been perfect. How are you seeing them evolve in this prime day versus another . What sort of moves have they made that pushes the options further . Its interesting they are getting into luxury items which was seemed is an area that amazon could not pierce. Melissa i think that amazon is well known for basically getting into everything. I think the heightened highend has always been a little bit of a challenge for amazons platform. One of the offers they had for this prime day is around the drop, their influencer led highfashion which creates a sense of urgency to buy within a certain timeframe. Being able to focus on things like that will help them. I think this prime day is still going to be primarily the bread and butter around their devices, electronics, toys and things like that. Caroline amazon with advertising, there has been talk of this other revenue stream that people are under realizing the extent it will be successful. What do you make of that . Melissa that is our business. We are an Automation Platform for advertising on amazon. What we are seeing is our clients are increasing their advertising spending this week by three times. Even if they are not participating in prime day, they are increasing their budget so they can capture the traffic. I think this week kicks it off and will see it headed into q4. We predict a lot of advertising revenue coming into prime day as well. Caroline what about the competition . To keep in line with prime day, we have seen best by saying they will launch deals. Target coming out with its own. These companies are adopting an advertising model as well. Is everyone going to be converging on the same sort of Business Model . Melissa it seems like it. As soon as amazon announced their prime day, walmart came out with their big sales day, i think it started yesterday. I think all of these platforms, soon as amazon launched, they piled on and have their own deal and offer which makes it hard for the manufacturers because it is hard for them to be nimble and have all these deals, especially with supply chains and inventory so constrained. I noticed on walmart, there was focus on thirdparty marketplace having deals. That really helps being able to spread that across. To your point about the advertising component, yes, that is a big focus. A lot of these platforms, retailers are becoming selfservice platforms. The advertising revenue really helps their bottom line. Caroline geographical footprint. We are expecting 1 trillion in u. S. Ecommerce sales by 2022. Youre looking at how much can be raised on this prime day worldwide. Where is it being overestimated versus the u. S. Where it could be eclipsing 50 of prime membership . Melissa it is a great question. Prime day, the u. S. Leads it. Then, we have seen International Countries kind of falling in line after the u. S. There is really no telling. It is a pretty big opportunity in general. Caroline one that we we evolving. Melissa burdick, it is great to have time with the, pacvue cofounder and president. That does it for this edition of bloomberg technology. Bloomberg daybreak australia is coming up next. A technology rally we saw in the u. S. , how that continues to run into australia trading and further into asia where we saw markets pick up in hong kong and mainland china. From new york, from san francisco, this is bloomberg. Haidi good morning and welcome to daybreak australia. We are counting down to asias major market open. Shery good evening from new york. Im shery ahn. Haidi these are your top stories this hour. U. S. Stocks climbed to a near sixweek high amid a rally in big tech. Nasdaq posting its biggest advance since april, as the s p 500 extends gains. Chinaaustralia