As big as apple and starbucks and shut down a major form of personal communication between the u. S. And china. Doubtsre increasing about an agreement on another round of stimulus. The president now expected to bypass congress with more executive orders. Microsoft leading some of the declines today. Scarlet fu has been following the market action. Talk to us about the trading moves on the back of all this tension rising between the u. S. And china. Scarlet fridays in august are not usually known to be heavy news days, but we had a jobs report today and we had President Trump stepping up his campaign against chinese Tech Companies. The stock market closed mixed with the s p and dow little changed. Between a huge contrast small caps and the nasdaq. Focus really on gold. The relentless rally in gold prices and the selloff in the dollar, the better than expected jobs report reverse that trade. Gold still finishing the week up. The dollar finished up 0. 5 . There is concern that that jobs report remove some of the urgency for democrats and republicans to agree on stimulus. In july. Ion jobs added unemployment falling to 10. 3 . Talks are at a stalemate and Steve Mnuchin says he is recommending President Trump move ahead with executive action. Emily we are still trying to figure out what that means. Also trying to figure out what this executive order on tiktok and we chat means for Companies Like apple. Would apple have to remove these apps from the app store . What are investors saying about these chinese tensions and the uncertainty around these tensions Going Forward . Scarlet we saw some of the impact this morning. Chinese adrs got hit hard. You look at some of the emerging tencent as the secondbiggest holding, that got hit pretty hard as well. Mention specifically by this executive order, but it is the biggest chinese publicly traded company. You mentioned earlier about this move to sanction chinese officials, including carrie lam, the chief executive of hong kong, handpicked by beijing. Hong kong stocks off by more than 1 . , digesting allfu of the news today, thanks so much. Monday will be an interesting day. I want to get back to the president s move to ban americans from doing business with tencent and we chat. A huge and potentially farreaching move. The internet giant losing 35 billion in market value. The Company Invests in spotify, order comingcutive after a similar move against tiktok and its parent company. Sam,ng us to discuss, cybersecurity policy fellow. We are trying to figure out what this means. But if you cut off tencent, how does that ripple through the Global Economy . Sam theres a lot more uncertainty here. When im looking at the executive order, i have three questions. What is the potential extraterritorial reach of this . We talk about u. S. Residents, but could it require app stores to remove we chat or tiktok globally . What would that mean for consumers of the iphone in china . Why would they buy iphones . The second question is, all of investments,iness does this affect those . And third, we have a massive market of chips and server centers. A lot could happen beyond just one app. Chat for soe use we many things. There really isnt even a good comparison. Starbuckst to pay for in china. I saw one quote today that if they cant use we chat, nobody is drinking starbucks in china. Talk to us about how massive this could be. Is a fallacy to think of we chat as just a messaging app. It is how businesses connect with consumers, how people shop and do payments. It is a news portal. It bundles so Many Services to the point that if people dont have we chat, basic transactions and daily life will be cut off. Which is why i think it would have serious implications for apples Global Business in china. Seen and it remains to be how these major u. S. Tech companies will respond to this. Could you see apple and google actually taking we chat and tiktok out of the app store . Sam the first thing im looking at is, lets think about what happened when huawei was placed on the entity list. There were a lot of workarounds and it was a full year after the initial entity was designated. But i think the Trump Administration figured out how to close those loopholes. Semiconductor companies were continuing to sell to huawei. You might see a similar trend there. Is this something those companies are going to comply with . This is also a First Amendment issue. Will there be a legal challenge . A lot to watch here. Emily theres the ongoing situation with tiktok. Microsoft still in talks to buy tiktok operations. Reports about buying global operations. How do you see that situation playing out . Sam 45 days, that is the window of time under this executive order. That is a short amount of time to complete an acquisition by microsoft of tiktok. To get this through, they have to push it through hard. Sale ate becomes a fire this point. The word is that had microsoft not stepped in, strong action in the form of an executive order, this was coming. Microsoft was kind of the last effort for tiktok to really survive in the u. S. Another deadline is also approaching, the president ial election. We are less than three months away. Certainly there are political motivations for the Trump Administration taking this stance. Of the entire Global Economy is shaken up just three months before the election and then trump loses, what happens . Sam. S like weve lost sam talking about the implications of this executive order on we chat, on tiktok. Huge far ranging consequences. We will talk about it later in the show with dan ives. Meantime, i want to talk about uber. Less travel and more food delivery. We are going to break down the disappointing results and what is next. This is bloomberg. For the first time ever, uber made more money delivering food than it did transporting people, but that failed to offset a huge decline in the Second Quarter. Sales falling, ending a decade of growth. To discuss, we are joined by tom white. How bad is this . Look, thanks for having me. I dont think it was really all that bad. There were no real surprises, i would say, in the Second Quarter numbers. Either positive or negative. Maybe it is that lack of positive upside surprise heading into the print, i think that is why you saw the shares give back today. I think investors were focused on profitability trends. We had a pretty good sense of the topline trends heading in. They announced the postmates deal. Everyone was looking for either upbeat in the Second Quarter or a sign that the timetable for them achieving consolidated profitability might be moved up. We got basically in line for the Second Quarter, but nothing suggesting the timetable or profitability is speeding up. Investors might be disappointed by that. Emily what is your outlook on ridesharing given the uncertainty, given that we are not out of the pandemic in any way . This could be going on another year and a half at least according to bill gates. What does that mean for getting into a car with a stranger . Hard to handicap completely, but i think my view is that it will be sort of the longlasting impact of the pandemic will be sort of neutral to slightly net positive to the rideshare growth curve, for the adoption curve, if you will. Think positive side, i there are a lot of people who shy away from public transportation, getting on crowded subways and buses, even after the pandemic or the worst of it has subsided. That would provide a bit of a tailwind eventually. On the flipside, there is some data that suggests consumers who live outside of congested cities might embrace the idea of personal car ownership. Obviously that would erode ofewhat the longterm vision what these Rideshare Companies are trying to achieve. But on the other hand, the core markets for the rideshare densely are kind of populated urban areas. Net, we think it is probably neutral to slight positive. Lyft shares fell even further. Lyft doesnt have a food Delivery Business. How does their rideshare how is their business faring compared to uber . Is it doing even worse . Tom i think theres a couple things to think about here. Lyft is aviously single product, as you mentioned. Weve heard now from uber. Weve also heard from a lot of the Online Travel companies. Rideshare is not exactly travel but it is transportation. It sounds like u. S. Trends for rideshare and for travel kind of took a step back. Weve seen kind of steady recovery over the course of the Second Quarter, but then starting in july, we had this flareup of cases. It sounds like the pace of the recovery has slowed or even reversed a little bit. That would be worse because this is their only market, so that is one thing. I think the other thing investors are trying to wrestle with is, what does it mean that uber has been able to maintain some steady engagement with consumers and drivers because of the food Delivery Business . The food Delivery Business is taking off. Uber has touch points with consumers and drivers. Some of the Rideshare Companies havent been able to do that. About thethat mean rideshare guys, their ability to grow on the flip side of the pandemic . I think those are two of the things weighing on investors minds. Soly tom white, thank you much for joining us to weigh in. Lyft results out next week. Coming up, it is no secret that retailers have been among the hardest hit in the pandemic. We are talking to a legendary , the ceo levi strauss will be with us. Youve heard people are wearing more pajamas in the pandemic, but what about bluejeans . This is bloomberg. Emily welcome back to bloomberg technology. Retailers have been hardhit but the crisis is also leading to new innovations. I spoke with the ceo of levi howuss, chip bergh, about his company is making a business out of masks and what the outlook is for the Holiday Season. Chip i would like to say we saw this coming because it first started impacting our business in china, where we had to close down at the end of january. We had a strong first quarter, minimal impact of the pandemic. The Second Quarter, revenues our stores2 because were closed. We do expect a relatively slow recovery. We kind of said that on our Second Quarter call. Our ecommerces business has accelerated through this. We made money in the Second Quarter over a year ahead of schedule. Weve seen our ecommerce business grow month over month and it has held into the third quarter. Consumer behavior is changing as a result of the pandemic and i think a lot of this is going to stick. Emily it is no secret that apparel has been hit hard. A lot of buying has moved online, but not necessarily enough to make up for the loss. What are people buying . What are they not buying . Chip one of the soundbites out there is, everybody is doing their resume calls wearing pajamas or tights. If you read the headlines, you would believe that at leisure is taking over the world. That is false based on the data. Bigger onim is still a global basis. The entire apparel industry has shrunk during the pandemic, but denims share of apparel has not changed. Today, denim is bigger than athleisure. Emily one thing we do have to keep buying is masks. You have some trendy options on your site. How big could this be . Chip i read an Industry Report in the business of fashion that says that the mask category could be a billiondollar business this year. We are seeing it. We kind of got into this initially for our own employees, knowing that we were going to have to reopen stores and those employees would need masks. Theres ae discovered real commercial opportunity here. Our masks right now are the number one selling mask on amazon. We sell them on our website as well. We are in short supply. We are scrambling to get back into stock. While,ere to stay for a for sure. The more the science becomes clearer that Wearing Masks can beat this thing down, we are seeing more people Wearing Masks. It is not going to go away for a while. Emily as you look out to the fall, black friday, baby day, holiday shopping, what are you expecting . We reported that the pandemic has wiped a billion dollars off your sales expectations. Is that still the case and how will the holidays be different . Chip just in the Second Quarter alone, we lost about a billion dollars off of our top line. We came into the year expecting to be about a 6 billion business. Below 5ing to be well billion. It should get progressively better unless theres a huge second wave. For the first time in 40 years, i dont have a forecast that i have a ton of confidence in. We are running the business against three scenarios. We are controlling what is within our control. We are managing our inventory going into the second half of this year very tightly. I would rather lose a sale right now than have way too much inventory at the end of the season. When you have to much inventory, you have to get rid of it, mark it down dramatically. Onwe are very focused maintaining our inventory. My expectations are that the Holiday Season is going to be muted, very different. It is going to be a very different Holiday Season. But im very optimistic about our business. We are going to emerge from this building share. We are going to take more share. We have competitors already that have gone out of business. The brand is really strong. But it is going to continue to be a challenging environment. Consumers are lining up to get into our store. Like when going to be it is zero degrees outside . Levi strauss ceo chip bergh. More on that conversation later in the show including his thoughts on tiktok. All right. Coming up, talking more about the executive order on tiktok. President trump now going after we chat as well, what banning it in the u. S. Means for businesses like apple and walmart. A prayer granting programming note. Do not miss david westins conversation with Larry Summers and jillian ted on how the pandemic aid in the United States is having a skewed impact. Wall street week, this evening. This is bloomberg. Businesses are starting to bounce back. But what if you could do better than that . Like adapt. Discover. Deliver. In new ways. To new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back. But bounce forward. Thats why were helping you stay ahead and adapt with a network you can count on, 24 7 support and Flexible Solutions that work wherever you are. Call or go online today. Yeah. This moving thing never gets any easier. Well, xfinity makes moving super easy. I can transfer my internet and tv service in about a minute. Wow, that is easy. Almost as easy as having those guys help you move. We are those guys. Thats you . The truck adds 10 pounds. In the arms. Okay. Transfer your Service Online in a few easy steps. Now thats simple, easy, awesome. Transfer your service in minutes, making moving with xfinity a breeze. Visit xfinity. Com moving today. Emily welcome back to bloomberg technology. More now on President Trumps moves to potentially ban tiktok and tencents wechat, the worlds most used messaging app. Used for sony things beyond messaging. It has the potential to up in International Business from apple to walmart, and shut down business between china. I want to bring it dan ives. Wechat is the key reason people buy phones in china. If it is not an apples app store or googles play store, what does that mean . Dan this is a slippery slope. I think it is unprecedented, choppy waters. Right now it comes down to wechat and bytedance it is a gut punch to those companies when you look at the Global Expansion plans. This is something i think over the coming weeks and months, theres going to be more chapters to this book. About so, talk to us chapter one. President e, where the in the last week and a half or so has taken aim at this company. Said it is going to be banned unless it is bought by a u. S. Company. Microsoft and negotiations to buy part of tiktok, maybe all. What is the tak your take of a likelihood being done . Dan 75 to 80 . For microsoft, it fell on their lap. Christmas morning came early in terms of this asset. They are the only ones in town that can buy. The faang names, they are up to their eyeballs and regulatory swirls. This would be a major turn in terms of social media. I think it is worth 200 billion three years from now. Theres a high likelihood of this getting done for bytedance, backs against the wall. If it is not microsoft, ultimately that is a dark chapter to go down. Emily 75 to 80 is a pretty high likelihood in a very controversial environment. The president set a deadline that seems to be done in the next 45 days. Do you really think they could do a deal that quickly . Dan i think the Technology Issues and Security Issues in terms of the lines of code, crosspollination between u. S. And china, that is going to take some time to actually get worked out. Think deal perspective, i 35 billion, 40 billion for u. S. Assets along with canada, new zealand and australia. They want to get this deal done. For facebook and zuckerberg, it is a nightmare scenario when microsoft gets the tiktok asset. A game bytedance, it is of highstakes poker. September 15 comes and that is a code red situation. Emily what does it mean for other C