Justice kavanaugh expressed sympathy for mr. Trump plus that votes received after election day would be taken by fraud. Turkey is threatening to military operations in northern syria. The kurdish militants are not clear from areas along its border with syria. Erdogan saidident a russian airstrike that targeted turkey backed Syrian Rebels shows moscow is not looking for lasting peace in the region. His comment conveys after an airstrike that killed dozens of foreign fighters. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. I am mark crumpton, this is bloomberg. 1 00 in new york, 5 00 london, 1 00 a. M. Hong kong. Here are top stories we are following. Equities as the s p 500 tumbles around 3 . Headed to its worst day in almost two months. Rising coronavirus cases tough and lockdowns, adding to worries. Toogh there may not be much rude about, bruce think is going to make ago. Insurance platform [indiscernible] vonnie the future of new york city, San Francisco and so much more. Lets take a look at these markets. You can see the major averages down 3 apiece. No things to Tech Companies. They are all down 4. 8 to 5. 2 . If you look at google, twitter and facebook. Areously, there ceos testifying on capitol hill. Zuckerberg asking congress to create rules around content. Google spending over 1 billion on content moderation. There putting up a defense, but generally getting slack. We will be looking at the attacks later on. Meantime, online insurance platforms have fared well. Rootsnsurance platform raised 700 million in its ipo. The stock is trading higher now. Were are joined by ceo alex timm. Congratulations. Definitely a pop for stock. Were you disappointed you couldnt get more given the history of these types of companies . Thanks for having me. We are thrilled with today. Billionbrought in 1. 2 into the company through the ipo and a concurrent placement did we think that gives us a Bright Future ahead of us. We were able to get a lot of longterm shareholders. That is what we are focused on and we are absolutely thrilled. Vonnie what will you do with this 1. 2 billion . Will you reinvest in the platform . Absolutely. Where we are today, we are still a Small Company just in the beginning. We are in 30 states and looking to expand nationally quickly. With this money, we will be able to do that. Auto insurance is a massive market and we are just getting started. Were going to continue to invest in our core product, continue to invest in marketing and expansion of the business. We think were are just getting started. Vonnie you are experiencing losses. How do you turn that around . We are expressing what . Vonnie loss. Youre still reporting losses. When you make profit . We look at our Financial Statements and we believe our foundation is strong. We are still in the early days. We are focused on growth right now. We know the model is working. We know the model is strong. It is a matter for us of getting to scale. Believeve growth we growth and profitability are not opposed, they come along together. Vonnie generally. Talking about 54 retention rate, you need to up that if you want growth and scale and profitability, no . First, for an is Young Company for a Young Company in its early days, you should expect retention rates. We do not have a large portion of our business that has been with us for seven or eight years, but we will. We are not that old. That retention rate, you have got to Pay Attention to the term over term retention and adjust for how early we are in our journey. The second thing, as we have learned and collected more data, we have repriced and reiterated on a lot of our models. With that has done is created shortterm pressures in the book, as we have seen in many of our more mature markets, as we start to see these models start to work and get into more steady states, that is where we know we think the foundational elements are there. Vonnie lemon a triple. It was in the 90s before it came down. You are higher, but despite 3 . Any concern that investors may have concerns about some of what you said and also the fact you are attracting riskier drivers . No. The model itself definitely tracks better drivers. That is core to what we do. We take the worst 10 15 , and we are only we are the only company that does not write them. We do not think that is a concern. In the shortterm, markets will do all sorts of things and that is not what we are focused on. We believe our investors and the quality of investors we secure in this ipo allowed us to get people on the books that are here for the long term and have a high degree of conviction in the company. Vonnie you decided to list on the nasdaq, was traditional ipo always on the agenda . Did you consider spec partner . We had lots of options available. Onalways said, if you focus building a fantastic company, your Financial Options will be there. We decided the traditional route was best for us. We hauled the investors in that we really cared about. Vonnie congratulations once again. Your trading at 27. 87. This is a market where 3 is down. Congratulations for going public today. Cdo ceo alex timm. We discussed the outlook for the commercial real estate world and for the urban world with chairman a cofounder joel marcus. This is bloomberg. Vonnie this is bloomberg markets. Commercial real estate has been under pressure with one of the rage indices down 15 . One company outperforming is alexandria real estate equities. As might anticipate. Where joined by chairman a cofounder joel marcus, fresh off the Earnings Report which went well. I should point out, fresh off panels at the robinhood investors conference. Robinhood doing great work for poverty around new york city. Talk to us about the quarter. It has presumably difficult for everyone, but you are better than everyone. Have you had difficulties with at some of your campuses . Thinks for having me. It is a pleasure to be here. Hopefully everybody is taking care. We just finished the Third Quarter report. Release earnings monday. We did our Conference Call yesterday. There pleased to report largest transaction volume and the companys history during the covid quarter is hard to believe. We made a large number of acquisitions. Many of which that had the capability to add value. Well in excesse of 34 square feet laboratory space. Covid in early days of midmarch, when the early shutdowns came, our properties were deemed essential. They operate 20 47. Our frontline workers have been there since day one. You cant do science from home. Laboratories are inherently quite safe. Volume, manyir changes per hour of 100 fresh air, natural spacing. A relatively safe environment for the challenge is getting to and from our laboratories through Public Transportation in a covid environment. At, we have had a great few months and a great couple of quarters in what would otherwise be a pretty miserable environment for all of the United States. It is important to note almost 100 of our tenants who are normally doing Great Research and development are actually doing work in the covid area, whether it be testing and , andostics, vaccines therapeutics for this morning, added an interview for robinhood with Scott Gottlieb who focused heavily on the environment today and going forward. And vaccines. Mike pulled a knee, one of the worlds experts on testing and diagnostics. David ricks, ceo of lily on the therapeutic opportunity. It was a great discussion. Our tenants are hard at work doing amazing things. The next tworough or three months, i think we will see light at the end of the tunnel. Certainly run the research triangle. I am sure you generally see low turnover. Our companies trying to renegotiate payments or lease lengths the echo are you giving it lease lengths . The nice part about what we thisab space, we created niche in 1994. Today it has become a mainstream real estate sector. Essential properties doing Great Research and develop an. The operate 20 47 p there are not closed. In the Third Quarter, we collected 99. 47 . Collected 99. 7 of rent. Probably the top, if not number one. Leaders maybe another who did better in the data world or logistics. Of your cash. 7 is historically great. The part we did not connect are mostly small food operators who you could expect would be struggling, given the inability to open and provide food service. Really an historic collection quarter. Other what about all types of properties . You had a partnership with uber to provide space in San Francisco, also pinterest and other companies. What are they seeing in terms of people coming back into offices, or downsizing Headquarters Space . Have about 10 plus percent of our space is traditional office. Most of our clients are mega Tech Companies, including facebook,gle google. Many of our Tech Companies have gone to a work from home virtual situation. Many havenounced announced plans to defer workers coming back until 2021. Even a number of companies have said maybe we will do a somewhat virtual situation. We are not primarily an office company, we are primarily a laboratory company. Those Companies Pay us rent and we dont have issues. Many of them will operate virtually for the foreseeable future. Morewill look for maybe decentralized focus of being outside the big cities and maybe in secondary cities that certainly may be more attractive cost wise. Campuses,ave major apple, google, they are not going to go anywhere. They are going to stay in their campuses and operate as they do. Or places they can recruit people and i think they will find a way. It is hard to create culture when you work from your bedroom or your kitchen table. That is an issue people have to come to. Vonnie that has been the mantra, but if you give us the benefit of your wisdom, is the consensus that the urban center will still be the place where millennials and so on will want to go eventually . Or, have the suburbs taken over . I think it is a combination. Over the last number of years, we have focused on ecosystems around our campus. We have chosen major life science clusters to do that. Tech is different. Text, they generally do not want to work in the same building. Do not want to work adjacent to each other, different companies. Thoseason is because workers, everybody is trying to steal everybody else us engineers. The life science industry has historically clustered and been in tate ecosystems. Tech has been different. It is natural for them to say to somebody, you can move out of San Francisco and go to boise or reno or phoenix or denver, and we will pay you less money. We will pay you money to do that and we can build a hub. Etiquette is natural for tech, very unnatural for life sciences. Vonnie speaking of those cities, i am curious as to what you think will happen to las vegas. We are hearing Sheldon Adelson is potentially going to move out. Do you think those areas have future . When you talk about different locations, i think you also have to put them against two items in choosing whether states or cities. One, do you have a governance regime that provides safety and cleanliness in those locations . That is becoming paramount, as we have seen. Increasing homelessness. Is the tax regimes in different cities and states. I think San Francisco has a gross receipts tax. That is going to deter companies from saying staying there and paying a tax that they dont have to pay in reno. Rumored to be looking at a number of different tax increases. What happens when you raise taxes, people think it is a great thing because it provides you with the city, the state with greater resources. Was itey do not see because his flight of talent. I think that is what will happen more and more to high tax states like california, new jersey, new york, you will find people moving to nevada, texas, states more minimum tax regimes. Vonnie thank you so much. We much appreciate your comments. Joel marcus of alexandria real estate equities. Fresh off the robinhood investors conference. Still ahead, we take a bold look at selloffs. What is happening right now. Indices are lower than 3 . Nasdaq down 3. 5 . Vix above 40. This is bloomberg. All of the seven underestimated the dramatic impacts of this outbreak. If you would have asked most people nine months ago if you would see the kind of impact we are seeing across the world, few would have gotten it right. I think there are lessons to be learned. First, Global Public health. Going forward, we are going to understand much better that if we do not understand Global Public health security, we dont have national security, we do not have economic security, we will not have security of societies. Vonnie Johnson Johnson chairman and ceo speaking with David Rubenstein on the latest episode of the David Rubenstein show. Hear those conversations tonight at 9 00. Mastercard, the credit card companys thirdquarter Earnings Report shows pain. Open. K at that gap at the mastercard down as much as 9 . It recovered a little bit. Rival visa also lowered before its earnings after the close. Proxiesrd and visa are for consumer spending. Therefore, the economy is driven by consumer spending. The good news for folks is that the structural shift to ecommerce is continuing without the pandemic. Spending on debit cards has risen 13 with the market did not like was the plunging crossborder fees per that was a bigger drop, 48 . The scent to be the most lucrative transactions for mastercard or visa. Most people have not resumed travel. Mastercard said they do not expect a pickup in International Travel until they see a vaccine. Carnival extending its paws in cruises. They are already on pause and the u. S. Likehile, companies netflix and peloton are outperforming. When you look at the overall market, we are just at session lows. Every sector in red. Tech and Communication Services are leading the way down at microsoft reported earnings yesterday. There thirdquarter fallen, but outlook disappointed. Tomorrow, we will hear from alphabet and twitter. Been the havens trade, that has shifted . It has. Tech was a big beneficiary of the lockdown. Results back that up. Revenue continued growing and the print cash. The latest earnings estimates already reflect projections. From little room for the first three weeks in october, tech and communications saw the smallest revisions hire to there thirdquarter earnings. Vonnie it is fascinating. The market today is starting off broadly. Thank you to scarlett. Down 3. 1 percent apiece. This is bloomberg. S is bloomberg. Its moving day. And while her friends are doing the heavy lifting, jess is busy moving her xfinity internet and tv services. It only takes about a minute. Wait, a minute . But what have you been doing for the last two hours . Delegating . Oh, good one. Move your Xfinity Services without breaking a sweat. Now thats simple, easy, awesome. Xfinity makes moving easy. Go online to transfer your services in about a minute. Get started today. Adapting. Innovating. Lsetting the course. But new ways of working demand a new type of network. One thats more than just fast. You need flexibility to work from anywhere. And manage from everywhere. Advanced technology. With serious security. And reliable coverage, nationwide. Forwardthinking enterprises, deserve forwardthinking solutions. And thats what we deliver. So bounce forward, with comcast business. Covid19 cases have topped 500,000 in the state. In new jersey, hospitalizations have exceeded 1000 for the First Time Since july. The two states, the early focus of the outbreak have seen a resurgence in recent weeks. Italys outbreak continues to get worse. New cases jumped 14 today to a record high of nearly 25,000. The number of people hospitalized is at the highest since may. The Italian Government has put new restrictions into effect including restricted hours for bars and restaurants. Indias tally of confirmed cases is moving closer to 8 million. The country reported nearly 44,000 new cases today. India has the secondhighest case count behind the United States which has had more than 8. 7 million infections. Voting began today in indias thirdlargest state. That casesre worried will surge during the voting. Japan is still working on a plan to release more than 1. 2 million tons of radioactive water being stored at the nuclear plant. It has been more than nine years since a massive earthquake and tsunami devastated the site. A Government Panel recommends dumping the water into the ocean. Global news 24 hours a day on air and on quicktake by bloomberg. Powered by more than 2700 journalists and analysts in more than 120 countries. Im mark crumpton. Im mark crumpton. This is bloomberg. Live from toronto, im amanda lang. Im vonnie quinn. Here are the top stories we are following. Risk off sentiment gripping the markets. 40 as a surgeon coronavirus cases increases. Concerns over the economic recovery. The world u. S. Economic recovery stalls out. Economic says the recovery is not going to happen and some Hospital Systems would go bankrupt. We will get an update this hour. Executives in the hot seat. Publicans call for an end of section 230. Jack dorsey says its the most important law for safety. A closer look at the markets. They are being drilled today. In of the biggest selloffs two months. We are close to the lows of the session. The s p is down more than 3 . This is not just a handful of stocks. 91 of the broad market is declining and the moves are big. We are seeing some of the big tech executives on capitol hill. That might be weighing on sentiment a little bit. We are also seeing the path of the pandemic worsen. That is having an influence across the spectrum including as we hear from companies about their luck ahead and what might be in store. Mastercard and visa have held up very well through the pandemic have been suffering today. Ups is trading sharply lower. And theto, materials gold socks are slumping today. One of the questions is where investors might want to hide in this turbulent market. Andguest is the president founder of a Global Strategies company. Moves say there is a lot of sentiment at play. We are seeing big percentage moves in individual names. What is most at work here . Good to be back. Three major influences on the market. Number one, covid is not going away. It is getting worse in key states such as new york. Chance of ae is no fiscal stimulus before the elections. Third, we have the electionrelated uncertainty. You have a trifecta of negative forces all coming together. Its not as if any of these is new. They had been around for a while. The market is just realizing that all three of them are going to have an impact and i think this is the beginning of the downside run. There is a lot more to go. The electionrelated uncertainty will worsen as we go through the month, october and next the first half of the month, i see the election uncertainty increasing because if you have a joe Biden Victory as the polls suggest, the president has indicated he will not accept the results if he doesnt think its fair. You will have a lack of decision which will continue to weigh on the market for 23 weeks if not longer. Ushow much does that take down and is it acrosstheboard . Tech is leading lower. It was more af dow jones phenomenon. I keep reminding that this happened before in the 1990s. They said that tech was free of and earnings are not necessary. They will continue to do well. It worked for a while until it did not. 2000rked through 1999 and than tech collapsed. I have a feeling that is likely to happen. It may have just begun. 2021, we might have more of an indication of tech not being completely free of market influences as people have assumed. We have been watching the move in treasuries in the yield. Albeit a low base. Is there any thinking about where the yield curve goes change if we see a worsening because of the covid economic shut down . I repeat that what they said next week, the yield curve steepen next week but it was not going to last. Was that theon yield curve was going to flatten. The yield will come down. I think that process has begun and i would expect more of a flattening and a decline as we go through the next few months. If you have election related uncertainty continuing from november into december, and if you have the covid crisis worsening as well, i can see the 10 year yield for example going below 60 basis points potentially even below 50 basis points. Is for a further rally in u. S. Treasuries. Earlier in the broadcast, you referred to what is happening to gold stocks. I think what is happening is you have the rush, the safe haven taking place in riskfree assets such as the u. S. Treasury. Look at the german bund. What a rally they have had in the last three days. My expectation is that the 10 year bond which is 62 basis point is probably heading toward 1 . We have a lot more rally ahead. Right now, it seems to be concentrated on government securities rather than gold. Gone exponential in germany which is terrifying. Do you sell everything at this point . Is it ok to stay in what you have already decided is a good bite . Of thelked about some safe assets. On top of that, i would be looking to see what you can do on value stocks which have not done well and also far. This is the time coming for a change. More defensive in terms of your exposure. Health care, utilities, the non stocks are where you want to hide as you go into postelection mode and into 2021. Vonnie thank you. Up, we speak to a guest about the outlook for 2020 and todays down markets. This is bloomberg. Vonnie this is bloomberg markets. Our guests company had a record quarter. Congratulations. A great few months. Talk to us about the market. We are suddenly down 3 . The market clearly resembles the one todays ago. Two days ago. Anyone shouldnk be surprised that volatility is going to be increased. We are going into Uncertain Times and youre going to see the market move around a little bit. Calling hat is causing the selloff. Without stimulus could be causing this. In europe, that could cause the euro to weaken. Next guest says that could cause yields to come down and i agree with that. As that happens and yields go up, the pes and tech stocks are going to come down. That is the economic factors. The other thing, the selection this election is getting closer. If the senate doesnt flip, you are not going to have the kind of stimulus that this market has been discounting. When you put those things together, you have a market that is down significantly. I want to refer back to something you said on this network. Some time ago, back in april, you said the economic recovery isnt going to happen because we allow restaurants to open with 25 capacity. Im pretty sure there isnt a restaurant around thats going to make money at 25 occupancy. A lot of restaurants have struggled. Now, you fastforward to where we are today. Any of those are being asked to close. Should we have better foreseen that 25 was not enough and going back to zero is going to be devastating . Its going to be devastating without another round of ppp which has helped tremendously for the restaurants. What we are talking about now is shutting down again. Im not sure where were going to go. To consider shutting down the economy and restaurants without any fiscal stimulus, i think it is very reckless for the economy. The Health Care Professionals are going to say what they will say. Its very important, but the economic reality of shutdowns without stimulus, this market is not want to like. Neither will the restaurant tours. Vonnie its going to be more difficult for outdoor dining. Fullservice doesque investment firms, there need to be an impetus to stop doing deals or anything like that . Do you foresee that continuing stimulus or no and what about a change in presidency . I think there will be stimulus. The question is the size. The fed is going to be accommodative. When you take on accommodative fed with a stimulus, there will be activity. We are going to be very busy. Going forward again, volatility causes people to take pause. I am not surprised by the volatility. This election appears to be getting closer. That raises uncertainty. Uncertainty equals volatility. I have to tell all of our listeners, do not panic. Be balanced and diversified. We will see our way through this. We are in for some rocky markets. You have indicated that you would be open to acquisitions. Do the rocky markets create opportunity for a firm like yours which is doing relatively well . What of course it does. Uncertainty comes opportunity. We are wellpositioned as we have been for over 20 years. To take advantage of opportunity. That is our motto. We believe and i believe that our economy will get through this. We will get through the coronavirus. We will have a vaccine and the economy is going to do very well. Andan look through this steeple is looking through this. Vonnie you are in st. Louis. I am curious about what percentage of people are back in the office and whether you are expecting a significant portion back or even you want a significant portion back . That is geographically dependent. Certainly, in major urban areas, we dont have the people back. We have over 50 of our people back in st. Louis. Some of our more rural areas have hundred percent of people back. It depends. We leave it to the local situation. Eventually, some of these big cities need the people to come back. What the economic of urbanization is. Restaurants require density. The economy of new york needs the density. We need to get people back. There is no question about that. Its great to have you with us. We appreciate your time today. Coming up next, we have been watching big tech ceos in the hot seat today. They may just be rubbing up wrapping up on capitol hill. This is bloomberg. Questions especially when it came to senator ted cruz. Last night, senator cruz tweeted a photo of himself with jack dorsey predicting a freespeech showdown of sorts. I want you to take a listen to part of their exchange. Dorsey, does twitter have the ability to influence elections . X no. You dont believe twitter has any ability to influence elections . Ofno, we are one spectrum communication challenges. You are testifying that twitter when it silences people, when it sensors people, when it blocks political speech that has no impact on elections . People have choice. Not if they dont hear information. If you dont think you have the power to influence elections, why do you block anything . We have policies that are focused on making sure that more voices on the platform are possible. Andee a lot of abuse harassment which silences people and has them leave the platform. Dorsey largely maintained his cool but did not make the most convincing argument about actions that twitter had and has not taken. All ofrberg also them agreed to return for another round of questioning. The big question is, why is this happening six days before the election . Why did this need to happen today . Democrats made a point of talking about it. It was really pretty fascinating because correct me if im wrong, its up to congress to change the law or change section 230. Right. Of the 230 is a part Communications Decency act that was written in 1996 which gives the platforms a shield from legal liability for content that these users post. So they dont necessarily have to fight a legal battle over this and that tweet or post. That has enabled the companies to grow and they say it enables them to police the content in a fair and healthy weight. They say that reforming section 230 is necessary. They would like to see more transparency, but the spirit of the law is important to allow them to police and take down the most vile content. Lawmakers today were not focused on the most vile content, they were focused on actions taken against president trumps account or the New York Post story about joe and hunter biden. Which certainly goes to the partial motivation here that republicans wanted to make a point six days before the election. One question investors have to ask is although there can be a lot of lyrical posturing at these events and there could be a meaningful change for how to do their business, will it affect their Business Model if this change happens . If there are regulatory changes rest upon them . If facebook and google and twitter had to fight a legal battle every time there was a questionable post by a user, that would be a distraction. The shield from legal liability by section 230 has enabled these companies to grow into behemoths. Mark zuckerberg made a point that even though he wants the law to be reformed, he doesnt wanted to be reformed so much so that it would impede growth of future startups. The question is what happens to the law. It is under the purview of congress, but he has repeatedly tweeted to repeal 230. The fcc, many of the commissioners have said this is not in their purview. Its not how or if the law would be modified. What is clearly still important are the concerns on the right about anticonservative bias by social media and concerns on the left about continuing misinformation. There is bipartisan support for some sort of change, but not necessarily agreement on why the change needs to be made. Thank you. There is more to come. Two in to emily later for all of that. That was emily chang of bloomberg technology. From new york and toronto, this is bloomberg. Joe biden is hearing from Public Health experts about the coronavirus, as cases surge in the u. S. The nominee was briefed virtually. Health officials warned biden the u. S. Has entered a third wave of infections. Johns hopkins shows more than 226,000 americans have died from the virus. More than 71,000 people a day are testing positive on average, up from 51,002 weeks ago. 51,000 two weeks ago. In europe, new business restrictions and another round of largescale lockdowns. At a summit in brussels, they said we are deep in the second wave, warning this years Holiday Season will be impacted. I think that this years christmas will be a different christmas. A lot depends on our