Plus, the congressional hotseat next week. What the text ceos will face in the line of fire. A halfmising to deliver billion cars this year from tesla. As they rev up the next chapter. Tech earnings continue with intel reporting after the bell, a lackluster report for the comely. Shares are down. Abigail doolittle joining us now with more on todays market action. Give us the highlights. Abigail you were mentioning lackluster are not very exciting , they missed in a big way. The stock down about 10 in after hours, plus the forecast not so great. Interestingly, usually when this the stock is already down 10 on the year so really not a great quarter. The stock is getting hit more so after hours. ,here we have some strength at t beat top and bottom line estimates. The wireless business is strong. 8. 6 million active users, a fraction of netflix and disney. You see netflix still down after their disappointing quarter. , theiris riding high competition having a little bit of a tough time. So at t having a very good day on a very strong quarter. Down netflix share still slightly after their earnings report. Tesla shares up but not as high a some thought that would be after the blowout quarter they reported yesterday. What did you see their . Abigail its interesting, tesla throng but not a huge move. Letter at a couple of other newer tech stocks, snowflake really surging, theres a lot of bullish quantifying qualifying there. Theyre going to start tracking u. S. Virus cases and investors like that. As for tesla, overshadowed by the stock we talked about yesterday. The invisible line maker, and you will love this, the stock itself up about 35 . Zoom talking about the effect, people are seeing their teeth on their zoom calls and they want better teeth. Tesla at the end of the day up upt. 75 , at one point today 1 . But the stock up more than 400 on the year. Not being punished because they did deliver some degree of perfection. Speaking of perfection or some shade of it, lets take a look at alphabet. We been talking about the u. S. Antitrust lawsuit, alphabet of other megaorming the stocks. It will be interesting to after there is a move testifying in Congress Next week. The top intelligence official in the United States, john ratcliffe, says iran is behind a series of intimidating messages sent to democratic voters in that both iran and russia have gotten access to Voter Registration information. We have confirmed that some Voter Registration information has been obtained by iran and separately by russia. This data can be used by foreign actors to attempt to communicate false information to register voters. Both iran and russia denied the charges, but could this be a repeat of 2016 . Could it be a repeat of 2016 . There is certainly a good because not only do we have the russians involved, they are getting more bold. I think theres a significant chance the chinese might be involved, too. Even more. About emily why are you more worried . These actors like to create chaos and discord. I argue that this will be viewed as one of the most effective covert operations in history. Weve been at each others throat for a lot of reasons. In a lot of ways they poured gasoline on the fire of disagreements we had in america already. Is getting that iran involved, spoofing proud boys emails. I think what is going on is really just causing chaos in our electoral system. Suggest, trying to find a Straight Line here gets a little bit confusing. In your view, from what we know now, does this mean the integrity of our elections is already being undermined . Like can we trust the results . I think we can trust the results. To actually affect the Election Results would be really hard. I think they recognize that might be a bridge too far. But we do effectively is undermining our confidence a casting doubt on it. Weve seen our own elected officials do the same thing. Our Officials Say things like is the most corrupt election in history. We need to try to build credibility with the elections, not try to undermine it. To so you think efforts this information and discord will last until way after the election. How so . Weve seen that take place here post 2016. To sowntinue to try discord. Clear, the chinese do not care about black americans. They are overtly trying to undermine American Interest in trying to get us at each others throats. It may not be an effort effort to amplify existing discord in america and to make it worse and sort of throw gas on this fire burning here in our country. Emily so what can be done now, or is it too late . I think we are in ok shape. There will be challenges with the voting and potentially the websites, we may see some challenges, particularly with ransomware. I think we have to look at how we make ourselves more resilient to this type of activity. Finally, we need to bring the federal and state governments recognize that no one company or no one state can do it on their own. Were going to be bombarded with messages over the next couple of weeks as we head toward the election. What can we as voters do, is there anything we can or should be more aware of . The best thing voters can do is be skeptical. Recognize that all the emails you get in your inbox may not be fact. If youre in california or other states, read about those ballot propositions. Nderstand who is behind them dont be influenced by what you see on social media. Algorithms tend to drive you in certain directions. Its not good for finding a middle ground. I encourage you to be skeptical, dive into the issues and go out and vote, thats a most important. Cast your vote with confidence. Emily absolutely, vote, vote, vote. If you more concerned about 2020 than 2016, does that mean we have made no progress . Did we not learn anything from 2016 . I think we learned a lot. Im not sure we were effective enough in our response. Engaging the enemy overseas and trying to get ahead of them. The fact of the matter is, we have not done enough to effectively deter countries like russia and china and iran. Nation. O do more as a we also should go on the offense. The best defense is a good offense. If they come after us, they will pay a price. We have not done enough of that. Backed to really push against our enemies in cyberspace. Emily we are on guard, thanks to your warnings. Thank you so much for your perspective here on the show. Ofing up, the chiefs facebook and alphabet will testify, its been three months since her last appearance in washington. Facebook Ceo Jack Dorsey getting a grilling as well. Well have a preview of what to expect in next weeks hearing, coming up. Emily the ceos of alphabet, facebook, and twitter are due to testify on october 28, next week, to discuss their protections from legal liability. The socalled shield is under section 230 of the decency act. Kurt, there is no time like the present. The week they are due to report there arent, what are we expecting from the hot seat . What is crazy to me about this hearing is just that the topic is something we have obviously heard these companies talk about a lot, including in congress. If you recall Mark Zuckerberg and jack dorsey had been summoned and previously theyve taken tons of questions about conservative bias, about their content rules. Answerother executives similar questions. It feels like a well trodden area for these companies to talk about. Given the fact that were so close to the election, it will certainly have more relevant topics or relevant news to link to them. They may be subpoenaed for a Senate Judiciary committee. What do we know about that . Kurt adding to a little bit of the confusion is that now were talking about two separate committees. Committee,commerce that is ago, the companies will show up. Separately, they are now being asked to appear before second committee, and if they dont do so voluntarily, the committee has said they may have to subpoena them to get them there to testify. So its unclear when that second hearing might take place. It could happen as soon as next week, it could also happen later than that. Clearly there is a lot of interest right now about these rules companies have and they want to get answers to the ceos as soon as possible. Emily is there a sense that there is a reason this is all being rushed to happen right before the election . Kurt i think from that new york spoke New York Post story last week, if you are are a member of the republican party, you want to bring these companies there and have them Say Something along the lines at they wish they had done things differently, or that they shouldnt have limited the spread of the story. That would add some validity to the story that otherwise wouldnt be there. So im sure part of the rush is vote, toople go to call for factchecks. Weve seen twitter remove some of i could see it being used as perhaps a final effort around the vote. That, theaking of u. S. Government is accusing iran and russia being behind more efforts to meddle in the election, that theyve gotten information. That are ran is behind emails threatening voters. Kurt facebook often will take down what they call coordinated inoffensive behavior. Basically that means creating a network of accounts, facebook personas and trying to push some kind of message to people on the platform. They have a report every single month now where they are announcing these takedowns. To your point, they have taken down stuff from iran and russia. In september they took down a network of accounts that were tied to the ira, that Russian Group that was creating all the issues back in 2016. So facebook in particular has seen this type of activity before. I dont think that gone so far as to be explicit on how big the issue is ahead of 2020, but we accountsemember the from all those countries in the past year. Emily kurt wagner, thanks so much for that update. Intel slumping after the bell, and a Global Semiconductor war brewing with china. We will take a look at what new regulations are being imposed on china and to what end. That is next. This is bloomberg. Emily intel slumping after the bell, dropping near 10 amid a tepid forecast. Adding more concerned that manufacturing delays are whittling away its lead in the semiconductor business. Are the lifeline of everything, the u. S. Is doing everything it can to stifle chinas chip capabilities. Monthshas been spending looking to dodge pressure from the Trump Administration so it can supply chinas carriers and rollout 5g next year. Robert, this chip war between the u. S. And china is certainly nothing new to you, but what is your sense of how much and how many chips huawei has stockpiled , and how devastating that could be for the United States . Robert well, theyve had quite a lead up to the u. S. Imposing sanctions. This has been in the works for well over a year. Its been clear from sales that theyve been selling a lot of advanced chips to huawei and associated companies in the last year. A guess would be they have couple of years of inventory in the background. In addition theyve had an opportunity to buy Semiconductor Equipment in advance of the embargo that was announced a few weeks ago on china. Emily apple unveiled new 5g iphones the same day you had all the u. S. Carriers touting the coming of 5g. Infrastructure is far more built out than the United States. Do you think this could significantly give china an advantage when it comes to 5g and general tech competitiveness . Robert i think china has been more aggressive in building out 5g infrastructure. Has been within china proper and not in the u. S. Or European Countries or other areas. Theyve been very aggressive in building out internally, theyve been less successful externally. I dont think that has created much of the lead, as the u. S. Builds out its 5g infrastructure. Emily so what do you think the actual impact of huawei supporting its digital capabilities will be on the United States and the u. S. Tech industry . Robert i think china is going to push very hard to become selfsufficient in semiconductors. They produce only about 15 , give or take. There is a program for made in china 2025, which is essential to the Chinese Government spending well over 100 billion to develop its semiconductor infrastructure and selfsufficiency. I think that is sort of the key going forward, as the u. S. Cuts off china from the supply of chips, china wants to become selfsufficient. Off recently the cut doubles down chinas effort to become selfsufficient and find other sources of equipment. Its likely that u. S. Companies will be put on whats called an unreliable entity list, such that Chinese Companies would be buying wouldnt be buying equipment from them. Theres also talked that the chinese could put a band or put pressure on exporting because ofy are the primary producer some elements used in electronics. Purely the trade war is clearly the trade war is escalating. Emily what is your thought on intel after another not so great quarter . Its obviously a company with a long and storied history. Do you see intel losing its lead in this business . Robert i think intel has already lost its lead, it fell behind on 10 Nanometer Technology and now its fallen behind on seven Nanometer Technology. Where we are today is that tsmc infar and away the leading semiconductor electronics. Away for everything including their laptops. Callntels last conference three months ago talked about increasing the outsourcing of its manufacturing to tsmc along with its competitor, amd. So basically what has happened here is, intel has sort of let the lead slip away from them. Leadership position and if anything, intel is going to outsource more and more business to tsmc. Recently in looking at im sorry. Emily we will have to leave it there. Certainly interesting to hear you talk about the evolution and we will continue to watch how intel weathers this latest chapter in chip technology. Robert, thank you so much for joining us. To theup, will speak Senior Vice President of Public Policy at yelp and get his response to the doj suit against google. Why he believes it is a long time coming. That is next. This is bloomberg. This is bloomberg technology. Decades of not more. Case against google is likely to trigger an onslaught of five it antitrust lawsuits writing on the allegation in the yelp put out a complaint in response to the actions. , luther low. Thank you for joining us. Yourt to start off with main argument. In your view, how is google harming consumers . Thanks for having me on. Today, when the mom searches for a pediatrician, google and gives asiphons wall garden is done millions of times a week in the United States. When google starts mismatching users with objectively lower quality information instead of great stuff from across the web, consumers are being harmed because they are getting lower quality information. In antitrust, loss of quality can be substituted. Emily you had quite a provocative tweet. You said it was about two guys initiate a monopoly and never answered for it. How do you back that up . Well, the entire organization of alphabet is technically still run. They have voting control over the company. In retrospect, all of that restructuring was a bit of a structural who dean act in order to buffer them from any kind of scrutiny. As that scrutiny has arrived, u. S. Versus google, i doubt i would love to see larry page deposed and have to testify. But i think it will probably be if it was anybody, it will be someone from the Current Executive Team and therefore, the people who actually control the company are not being held accountable and probably wont. Arguablycrosoft has gotten derailed for a decade dealing with their antitrust issues. Do you think google could face that same fate . So, microsoft is an important lesson in these antitrust cases. Microsoft oxygenated the market. Six months after that case was 1998, googleng of was born in a garage. What happened was microsoft spent the entire 90s bulldozing into adjacent markets. Wheren imagine a scenario after controlling operating systems and browsers, microsoft could have said in an alternate universe where no doj scrutiny came about, what is this coming up . Why dont we use our dominant browser position to clone and steer people to our own Search Engine . Instead, it paralyzed the tendency for microsoft to go into the is adjacent markets. In the Company Initially unlocked innovation and content creation on the web, it is hard to decouple the rise of 2. 0 from the rise of google. I hope that in addition to its misbehavior, it also provides immediate help to innovators and entrepreneurs who are developing new tools and markets that google could potentially threaten. Emily google says that the case is flawed and user choice is users choose these services because they want to, not because they have to. In the case of yelp, the counter would be Google Reviews. What is your response to that . How has the rise of Google Reviews impacted or hurt yelp . Does not align with the facts. I was watching an interview you did a couple days ago with adam aboutfrom google talking effectively this is only a look away a click away and so forth. This is not the 90s where in order to switch out software, you have to drive to the Software Store to buy cdroms. It turns out that people were changekely in 1997 to their operating system and people today are to tinker with their smartphones and change their google defaults. T is just the reality google understands that and appreciate the high carbonate of costs cognitive costs. That is why they spent so much money with browser Companies Like mozilla and others to protect their default positions. Emily Senior Vice President of Public Policy at yelp. Obviously this will take some time to play out. We will follow the developments and get perspectives like yours. It was another blowout quarter for tesla. The Company Shares continuing to rise after thirdquarter revenue. It was better than analysts were expecting. Attention has turned to what is to come for elon musk and the company in 2021. With teslatart reiterating its promise to deliver 500,000 cars this year. How can the company make good . What are the chances . Transparent that it was going to be a challenge. Analyst acrosstheboard said that it be a tall order. Tesla would need to deliver over 180,000 vehicles to reach that target, more than they have ever done. But there is some evidence they may be able to do it because the fremont,at both california, and shanghai in china have increased significantly. It is now around 840,000 vehicles and 50,000 vehicles from china. In other words, 200,000 vehicles. Theres jessica do it. The have also sorted out supply chain and the issues that they suffered from. If there is one concern, it is that tesla said that they are prioritizing whether they have in other words, their ability to supply well below what the demand is, which is good. It is good to have demand. Emily lets talk about supply and demand. The mix of the models at tesla is changing dramatically. Over 100,000 cars sold, model and exes. ,000 model s when we were covering the company, it was all about those models. Talk about how it is evolving and what it will look like in 2021. Tesla reports those numbers at lumps it lumps them together. We know that model y is increasing, but they only started producing it. The other interesting thing from earnings this week is that we look ahead of schedule on a lot of things. Elon musk said that by the end of next year, we could see the cyber truck on the road in the United States. You are bringing that into the market. Americans love pickup trucks and bis big suvs. It will be interesting to see in 2021 if there is any accountable is asian. Any cannibalization. We are seeing that in model s and model x. Emily lets talk about selfdriving. Of musk is saying that he is planning to rollout of beta version of selfdriving over the next few days. What do you think is the impact of that . Moreor tesla, it means profit. Analysts think that for others, there is a lot of excitement out there. On the website earlier, there is a caveat that the selfdriving data does not equate to the vehicle being a ton amiss. It is an interesting step forward that you are seeing. Out in the real world, you can see on your screen the video of people actually using. There willhas given, be more tesla owners over the weekend that will be given the opportunity. On monday, what tesla is going to do is raise the price by 3000. That means that the selfdriving upgrade, when it is available to you will cost around 10,000. We know also that the annexed nhtsa is looking at this from a different perspective. With the rest of the industry, there is a focused approach. Musk, would you use it in your technology . Elon musk said no. He seems to have a lot of confidence in this camera based technology and seems aggressive to roll it out into the real world. Emily interesting. It will be part of the next chapter for sure. Thank you so much for that update. Coming up, a loss of 16 trillion. That is how much racial bias is costing the American Economy according to 1 wall st economist. She joins us next to break it down. This is bloomberg. Emily as protests against Racial Injustice or rubbed it across the u. S. Followed by 10 Tech Companies getting more public about their diversity efforts, an economist tries to explain the social problem. She quantified the cost of racism to the American Economy and found in her research that closing the racial gap has generated and other 16 trillion in economic output since 2000. Joining is now is Dana Peterson. Thank you for joining us. 16 trillion. How do you get to that number . Dana we looked at all the economic gaps, racial gaps, wage gaps, education gaps. Housing. Certain aspects of wealth. Suppose youwe said, didnt have these gaps. Suppose people had access to housing and had access to funding. Suppose all students had equal access to education. How much would this cost . We added up the numbers. It turns out that over the last wasears, the equivalents 16 trillion for the u. S. Economy. My colleagues at Bloomberg Businessweek profile be you and your efforts to make change on wall street. I understand that you would not even put your photograph in the email system because you are worried that people would judge her work based on your photo. I am sure there are plenty of people out there who feel the same way. With those kinds of challenges, how do we begin to move forward . Dana indeed. When you think about these gaps. Anduns along and come experience, and even within different sectors. For example, someone could take it to the higher echelon of the financial sector. They could still feel that they are not included. A Company Company culture is very important to make sure that employees are treated fairly, that they are being adequately compensated, commensurate with their skills and output. Decision happened a long time ago and was reflective judgede fears and being based on how you look. Begin how then do we even to close the 16 trillion gap . I would love to hear some examples of we would do this, it would generate this much more output in the American Economy. Danna one thing that we looked like one thing that we looked at was the domino effect. If you do not have the access to housing in an area, if you do in have a great education, terms of which industry, if you do if you are not in the right industry. Now the outflow income affects wealth. You have to start somewhere. Fortunately, there are lots of areas where individuals come governments, and corporations all contribute. When you thing about what corporations can do, you can make sure that you have helped with diversity and inclusion initiatives. Making sure that all of your employees are paid equitably. The education level of students find thee country equal amount of funding so that they can have equal access to education. Even in the space of financing, whether it is more often that black entrepreneurs find that it is difficult for them to be approved for loans and even if they are approved, the loans are not always equal to what they expected. Bute are definitely ways governments and individuals can Work Together to help close these racial gaps. Emily you mention entrepreneurship. We cover tech and Silicon Valley , Venture Capital as well. This area is a huge source of new jobs and growth in the global economy. Elaborate on where you see some of the inequities in this part of business. Dana one challenge is certainly in terms of labor markets where oftentimes, black people, and alsoolor they find themselves in Industries Susceptible to automation. Just getting into the right field is important. Once you are in that field, it can be very difficult. Especially Venture Capitalism, when many people might may not look like you. Relationships are so important in terms of getting investors to buy into your product and invest in you. Toyou do not have the access those relationships, or if those relationships are hard to form, then you would find inequities there. Emily what has been the reaction to policymakers for your support . Have you raised the alarm . Dana we have seen some reactions and most have been quite good. Thank you for highlighting these issues and the economic costs how do we address these areas . Especially for banks, governments, and all the regional banks. What can be done in terms of metrics . Making sure that you are accounting for the problem . What can be done in terms of outreach, making sure that there are equities . For the most part, there have and positive feedback hopefully this will encourage others to do more. 16 trillion dollars. At the cost of racial bias. Since the year 2000. Think you so much, Dana Peterson , for making us aware. , 12 days, still ahead ahead until election day. Hadld trump and joe biden to nashville for the president ial debate. What to expect next. Our political contributor will be with us. This is bloomberg. Emily joe biden and donald trump faceoff in the final president ial debate tonight. The biggest risk for each candidate make him may come more from their weaknesses than from each other. Jeanne, good to have your voice. As the evening gets underway, the big question is, will president jumping more residential . What do you think . That is the big question of the night. Is he able to dial it back, to and the biden his say, batting Campaign Hopes that joe that would of course depend on whether the president dials it back and is willing not to interrupt and let joe biden speak and of course, we will have muted mikes mics. Emily there are some new rules that they are going to be experimenting with tonight. What about for the Vice President . What does he need to accomplish giving that he is leading in National Polls . If you look statebystate, it is a lot closer in some cases. These the polls in battleground states, and i think joe biden has two things to do. He has to make no errors. If you are in the lead, you cannot make any errors, and he has to remain calm when the attacks come. And we think they will about his family, particularly his son hunter biden. We know that the Vice President acting inticing a more traditional way for these things that thered saying. He is preparing for the onslaught and attack on his family. He snapped back to a certain extent. Emily what about policy and gossip . The president was diagnosed with covid19 just a couple weeks ago and we will already be on this debate stage. In terms of the policy issues, do you expect does it even matter or is it all about their behavior . Jeanne i think the policies do matter. It seems like eons ago that he was diagnosed. And it has not been that long. We are not going to be able to forget that he was diagnosed with covid or that we are all in the midst of a pandemic because we understand that they will be separated by plexiglass, everybody in the audience will be wearing face masks. They will be distanced, the candidates and the moderator. That will be a main topic and something that we know that the president does not want to talk a lot about because that is what to frustrate him so much with the interview with 60 minutes today. Their respective responses to covid, we know other issues include race and Climate Change and there is an awful lot to say about that. And national security. The discussions last night, and election interference, that is going to be a big issue. The president is really frustrated because he wanted to focus on foreign policy, which is originally what this debate is supposed to focus on. Turn to thoseto issues as much as possible. Emily thats interesting given the news of the day about iran sending these threatening emails to u. S. Voters and iran and russia getting information on Voter Registration. Could that be a hot potato . Jeanne i think absolutely that is going to come up. I think we will hear a lot of discussion on that. On what the u. S. Has done under , that the mp Security Apparatus that occurred in 2016 that the president has not been willing to accept that. We will hear an awful lot about that and the news that broke overnight. I think certainly that and of course, both of their respective willingness to accept the results of the election whatever they are. Emily hugely important. Will there be a peaceful transition of power if indeed our needs to be transferred . Thanks so much. She will be with us all night for the coverage of the final president ial debate, beginning 8 30 p. M. Eastern time. Do not miss it. 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. Good morning i am haidi. Good morning. Stimulus negotiators say that they are moving closer with nancy pelosi saying that they are just about there, despite some remaining differences. Federalaid will be a debate