Texas. Meantime, covid19 cases continuing to rise with 4 million reported across america. But today, the u. S. Centers for Disease Control that is control is advising schools to open, after originally highlighting the risks. It added up to another down day for stocks. Joining us, abigail doolittle. Abigail a lot to digest, and you nailed all the issues. A big piece of it has to do with the big xl off, but the rising tensions with china have been the backdrop for the past two years, but really coming into the forefront here. And economic data, frankly, not right. Investors are paying attention to that. You put it together, nasdaq 100 down. 9 , down on the week for the second week in a row. Stocks hit even harder, down 1. 6 . What intel really disappointing, at lowes down 18 per soient, worst day at that point since 2000 to one Third Quarter guidance for that chip to let you talked about, and also the idea that manufacturing of their trips could be changed. We had investors going into a haven asset, lets call it a haven asset today, gold, above 1900 for the First Time Since 2011. So risk off for sure. I mentioned the nasdaq 100 down on the week, that is true for two weeks in a row. We talked about this last friday, emily. Last week the nasdaq fal as the nasdaq fal as the dow key 500 climbed and the last time we saw that happened was in fall 2018, where out of nowhere it seemed like we had bears volatility volatility to the downside. Not auspicious, especially since we have the nasdaq 100 down, all the major averages in the u. S. Down on the week. Emily lets talk about the nasdaq 100 being down. Was this because of mega cap stocks or were other stocks in play . Abigail from a points standpoint, yes. Mega cap got hit. But there are bigger percentage decliners. A light technology, the time ownsng the company that invisible line, the worst performer on the nasdaq 100, priced out of the march lows. They did not give guidance for the Third Quarter, and as you can imagine, and orthodontic company in the Second Quarter didnt do great. That stock was hit. So was citrix systems, also priced to perfection for a tech stock. Their Cloud Business was a down was down sequentially for another time in a row, surprising given the stayathome environment and folks thinking that would help citrix. Apple and facebook down in a big way on the week. And they report next week. Hopefully this is not a signal of what is to come. There is overall sense that these tech stocks had been priced to perfection. To end on a bright spot, amg, a huge week, best week since 2016, take a look, up 26 . That has a lot to do with amd gain,in that is folks thinking amd may pick up market share. Emily we will talk about the chip market later. Bloombergs abigail doolittle, thanks for wrapping up the week. Mean con meantime, talking about the tech selloff in tech earnings week, we have the founder and ceo of estimize with us. Thank you, for taking the time. What do you think is driving the selloff . We have seen tech continue rising as the shelterinplace continued in certain places, working from home has continued, what is driving this . Leigh it is a technical reversion trade. The quonset have been running this month the quants have been running this model, and it has gotten away from them a little bit. On the fundamental side, how much of the curve has been pulled forward . Trends we are seeing were obviously already active in the market when you look at doc you sign and zoom and teledoc, these are names that are up somewhat, and the fundamentals justify it. But as we get into earning season, the story is going to go from, the curves are accelerating to, doesnt make sense, the multiples they are trading at . Not necessarily this quarter, or q4,n we look up to q3 for five quarters out, what do growth rates in those quarters look like . Are we seeing upward or downward revisions in those quarters . Because that is where investors are really going to sit and say, maybe this quarter has 100 growth or 150 growth, but what is it going to be once life normalizes here . And i am a little afraid that we are not seeing the same type of upward revisions in those out quarters than we are in the current quarters. Emily lets talk about Big Tech Companies reporting next week,. Acebook, alphabet, apple facebook and alphabet depend on the advertising market. We saw twitter report results yesterday, huge growth in users, but add sales hammered. At we know facebook has been in the middle of an ad boycott specific to the social network itself. What do you expect to see from those companies, given that we have in general seen a global rejection global retraction in advertising . Quarter was indicative of future quarters for facebook, where that platform is able to basically shift demand around it a piece of it falls off. Others just pick it up, because Smaller Companies, their acquisition rates used to be two highend now are in a range where they can pump a ton of money into it. Overall, we dont see this as being a problem, we havent seen major downward revisions to facebook numbers. But you look at Mark Zuckerbergs comments about how he perceives the longterm nature of the boycott, he just doesnt seem to care. There is an aspect of showmanship associated with that, but it does portend the fact he is looking at the numbers and he is just not afraid of it. When i look at google, that may be different. We have seen on the estimized platform a larger downward platform a larger downward trend, but that is because of exposure to smaller businesses out there that can shift that stuff around. So i would be more concerned about google and facebook. Emily interesting. We also have apple coming out next week. We have obviously all been using our devices, but apple stores have been closed and reclosed as covid surged across the economy, and the economy, people are suffering, we are seeing a spike in jobless numbers this week that we didnt expect. How will that translate into how many people are buying iphones and new devices . Leigh the iphone number is going to be poor this quarter relative to last quarter, when numbers were relatively good relative to expectations, because everybody is going to be quarter atward a adoption for the new iphone which should come out in the fall. What is going to be really interesting with apple though, we have had this conversation for years over whether apple will be revalued as a services company. The services revenue, we expect and the estimize numbers are through the roof. Whether that surface is multiple or not, i have argued for years that it wont because it is reliant on hardware platforms. But it doesnt seem like the market is going to focus on hardware numbers this quarter. And ipad numbers could be really good again. So i dont think apple is in trouble. Climbedmultiple hasnt as much as made and smallcap growth stocks, so not as out of range of normal as some of the other ones. Emily so lets talk about how all this working from home, which ceos of Many Companies have said is going to continue into the foreseeable future, maybe forever, twitter Ceo Jack Dorsey told employees they can work from home, we know Mark Zuckerberg favors this trend as well, how does that impact your view on tech stocks Going Forward . Microsoft, for example, reported a slow down on the cloud. That hit the stock, it wasnt as strong as investors thought it would be so how do you see this trend, whether six months or longer, impacting these companies . Curves aree adoption going to accelerate considerably. And a lot of these trends have been in place, like the Remote Health care trend, that is going to be massive. Laws are being rewritten right now. Psychologists can practice across state lines. It is going to change a lot of stuff. In terms of work productivity, Microsoft Teams had a great quarter. There is going to be a transition in the next couple of quarters, were companies figure out they probably dont need as many people as they used to have. And i think the labor market is going to be tougher than people why, overall,is we are moderately bearish. We may see those numbers role over in the next three to six months. In the long term, though, cost savings that are going to come out of moving to Technology Like slack and Microsoft Teams, doc , although docusign most are going to increase the margin of Many Companies, and we are bullish on those, we are seeing those upward revisions which on our platform are considerably above where the street is, which really means there is a longterm disconnect there. Emily this big antitrust hearing that was supposed to involve the ceos of apple, google, amazon and facebook monday has been canceled. Congress will be honoring representative john lewis. How big a risk is regulation . Leigh it is not, not right now. Look, it was weighing on some of the multiplples, and the pandemic wiped that up. When we look at microsoft bundling teams with other stuff, that is definitely illegal, what they are doing, but the risk of legislation is so low right now, with an election coming up. And it is so difficult for them to get their hands around the fuzzy logic of how you regulate this stuff, that it is very Unlikely Congress is actually able to do it. Leigh drogen, thank you for weighing in on a friday afternoon. Leigh drogen, founder and ceo of estimize. Intel ceo suggesting the unthinkable, the Company Might stop manufacturing its own ships. We will speak to bob swan next. Chips. We will speak to bob swan next. Intel shares suffering about their worst day in march after announcing another delay for seven millimeter chips. Ceo bob swan is suggesting the Company Might stop manufacturing chips. We spoke to him about that on Bloomberg Television and he went on the defensive. Take a look. We are in a world where increasingly, everything looks like a computer. Big as itunity is as has ever been. We talked about yesterday, we pushed our seven millimeter product, and we have to say in timeframe by two quarters, and that was due to a split in yields in our Manufacturing Process Technology. Tofirst, we will continue invest in our Manufacturing Process Technology to catch up with our desire to play a leadership position in process. But Product Leadership is much more than just process. It includes things like technologies, different architectures, memory interconnect, security, and how you use software to optimize that hardware. So delivering worldclass leadership products is simply more than where we are on the process. And even though our process slipped, we are evaluating other opportunities we have to engage deeper with our ecosystem partners, and with our Design Methodology we have the ability today to mix and match different products to put them on the same package. And we talked yesterday about our enhanced flexibility to make those tradeoffs along the way, to make sure that we are delivering leadership products for our customers. But bob, no one seems happy right now. Investors are unhappy. Are ramping our 10 millimeter products and feel really good about where we are. 20 alked yesterday about a higher demand than our 10 nanometer products, so we are delivering on the products in 2020. In 2000ct to deliver 21, we expect to deliver in 2000 and we expect to deliver in 2023. Our focus is on these products. If you want to outsource the taiwan semi, which some analysts have been calling for, can they do that . Two they have the technology you would need to manufacture your chip . Bob one thing we have been doing over the last couple of is leveraging our foundries even more than we have in the past. Over the last five years, our company has grown by 20 billion. And with that growth, we have evaluated when we use our own capabilities versus when we use the industrys, so this is something we have been doing the haveseveral years, and we done it even more so in the last couple of years. So our ability to engage with the ecosystem is greatly enhanced because these relationships have grown over the last few years. Is,hat i want to understand if you were weighing how you make your chips, what is the criteria for exiting the manufacturing part of the business . Bob it is relatively simple. Schedule, leadership products , on the customers server and on the clouds end on the network edge, that our customers can count on. Leadership product is what matters most, not necessarily where it is being manufactured. Where it is being manufactured is an important part of the equation, and we will continue to invest in that, but the priority for us is making sure we are delivering an annual cadence of leadership products, regardless of which process it runs on. Emily intel ceo bob swan. Could, could bob swa intels pain be another companys gain. We will talk with ian, who has been covering chips for decades. This is bloomberg. A changing of the guard in the semiconductor industry, reports of intel production delays sent the stock plunging, erasing billions and billions of dollars in market value and sending other chip makers rising. Invidious. And has beenan king covering chips for years. Is intelt of all, why considering not manufacturing its own chips . Is a huge thing. For 30 years or more, intel has been telling the industry we are the best at making our own chips, everybody has to go scrambling elsewhere, we have the best plan, this is what makes us better. You and i have already talked about this, emily, they were half they were supposed to have the 10 nanometer in 2017, here we are in 2020, still not in full production. Guess what . The next one is going to be delayed as well. When things are as bad and delayed as that, you start to look for alternatives. That is basically what bob was trying to say. About 40are talking billion in market value wiped off the map. Why havent they been able to deliver . Ian that is a very good and 40 billion is 40 billion of shock. Everybody thought, this is intel, the worlds most dominant chip company, they will sorted out, and years ago, they told us the 10 nanometer going to be fine, and yesterday they come we and saying, by the way, still have problems. A massive loss in confidence in what they are saying, a massive loss in confidence in their ability to execute. And if you are going to bet on chipmakers, why wouldnt you put your money into one of their rivals right now . And that is what is happening. Emily lets talk about the rivals. What does this mean for the rest of the chip industry, which is changing dramatically . Apple is now manufacturing its own chips. Who benefits from intels lagging . Ian exactly. Psmc, center of this is the Taiwanese Manufacturing Company that makes chips for huawei,elecom, whil the list goes on, and all those companies are direct competitors to intel. The others are, ahead, this is a massive change in the industry if intel is forced to go and stand in line with the rest of the industry at those chinese factories, to get what it needs. It is going to be reliant on designing chips based on them, and we will see if it is able to do that. Meanwhile, apple has said they are not buying. What happens . Am it is a hugely, hugely complicated information. Because the value is based on everything based on everyone using it. What happens to that value . What happens to competitors if they are worried about being locked out . This is an ongoing, complicated ross asked. There are various theories about how it could work out, who could buy it, who might not, invidious interested, but it is safe to say there are going to be a big twists or turns on the way to see what happens. What is clear is that softbank wants to realize a gain on that asset and improve its finances. Emily we will the following all your reporting on it, ian king. S bloomber coming up, my conversation with Steve Wozniak on whether he thinks apple should be broken up. This is bloomberg. Emily welcome to bloomberg technology. Monday, we were supposed to see the ceo of facebook, google, apple and amazon testified before the house antitrust subcommittee. That hearing is now postponed. Congress will be honoring representative john lewis, the civil rights icon, instead. Antitrust is still top of mind for big tech. Yesterday, i sat down with apple cofounder Steve Wozniak and asked him whether he thinks apple should be broken up. Often talk about apple things. I am not in operations directly. Sometimes i have negative opinions about apple being a little too much control over you. I thought about this one. This one that is going on right now with antitrust. I actually take apples side on this one. Why . Whats the big issue . Emily the fees that they charge developers. Steve 30 and giving you guarantees on protections and security on the apps you could possibly download. When you look at what happened in the android world, i dont object to that at all. So, if theres a little app maker and apple does the same thing, everyone uses the apple one. It could be the weather or whatever. In a lot of those cases, the app makers do not build in the Security Protection that apple offers its customers and i believe in that very much. I dont know until i watch it. Emily what about the fact that apple just does not run the gate to the app store, the gatekeeper, but also has its own apps like apple music . Is that anticompetitive . Steve i think that would be very good. Emily why . Steve why . Because it would be competitive. Apple would have to compete more facetoface. We see the other apps that people do good things as well. I dont think apple should run them over and build music into the iphone. Im for openness, competitiveness, more equality throughout things. I dont like it when the big shark eats the small thing when. Folks in some cases, think that apple is the big shark and is preventing innovation because they are making it more difficult for Smaller Companies to succeed in the app store. Listen toill have to the investigation, the questions and the answers to have an opinion. Big you canbeing so overrun the little guys.