simple, easy, awesome. transfer your service in minutes, making moving with xfinity a breeze. visit xfinity.com/moving today. ♪ emily: welcome to "bloomberg technology." i am emily chang in san francisco. apple shares jumping on a bloomberg report that the iphone maker is preparing a dramatic shift to its own ships in the max computer, something has been working on laying the groundwork on for a long time. the genetic testing giant 23 and me announcing a potentially groundbreaking discovery, linking your blood type to the likelihood of getting covid-19.

we will speak to the ceo in a moment. stocks up, halting the rally. the market may have gotten ahead of itself considering we are in the midst of a health, economic, and social crisis. we are now officially in a recession here in the united states. what drove the stall in the market today? it is easy to see why the market would want to take a little buffet either. -- little of a either. yesterday0 as of turning positive for the year despite the fact that the earnings outlook is not looking great. the data is better, but still pretty pat of all things considered. you can see why investors may want to take a pause here and assess the picture and see whether it is time to be adding

risk. the nasdaq actually did close in the green today. the nasdaq 100 actually did briefly top the 10,000 level. the community services index, those growth sectors were able to eke out gains today as well. the dollar, would have been its ninth day in a row down. it suggests that it was not an alt-right risk off day, nor was it ultra risk on. emily: apple holding a virtual version of its worldwide developers conference in a few weeks. mark gurman reporting that they are for pairing the shift to mac chips and apple computers away from intel. particulard apple in drive the rally that we saw? >> and drove quite a a lot of it. it was the biggest points contributor to both the s&p and nasdaq.

the chip format computers drove apple to fresh record highs. it is not just apple in that mega cap space. you also saw microsoft, amazon, facebook, they also carried the gains we saw. talk to us about the decline. these values cyclical sectors really go back to the bottom of the barrel and lag. that is true for those beaten down travel stocks that have seen incredible rallies. hertz, which declared bankruptcy last month, it gave about a quarter of the gains back. you also saw the likes of american, delta, norwegian lower as some of the optimism about the travel rebound has begun to wane a touch.

nikola does not have any revenue yet. but company stock debuted on the nasdaq just last week and is up 136%. clearly, investors are still looking to take some risk in the market. that raises the question of how much of the action today was profit taking. emily: thank you so much for that update. facebook also driving a little bit of the rally today. shares of the social market ended with a up 3% as they continue to face controversy about how they are moderating content on the platform. zuckerberg saying he is taking time to review the policies. but is it too little, too late? joining us, john freeman. contenty not the first controversy facebook has faced. what is your take on this?

john: i think between now and the election, there will be a lot of noise, some interested parties who will want to contribute to that noise on both sides. but whatever happens before the election is just that, just noise. whoever wins, the regulatory situation will be starkly superposition the kind of situation now. athink that there is worst-case scenario out there. facebook, social content.bel toward the to follow that logic through, i think the rest of tech, and you

talk about a trillion-plus dollars of tensions. of --k the market is kind i think you've seen what the market has reacted. it seems like investors have pretty much shrugged it off, the regulatory risk, that is. emily: twitter shares had been rallying. they are down today. twitter taking an opposite stance on this post by donald trump suggesting that looters should be shot. this has opened a new front between the president and big tex. you really don't think it is going to matter once the election is over? john: it will matter. but whatever you are hearing, what other -- whatever investigations are announced or executive orders are made, even like the last one, it was

completely toothless, really. that grandstanding, and we won't see the real situation until after the election. there does need to be some adjustments to our laws to reflect the internet era. helpfulit would be very for everybody. i don't think the fundamental principles are going to change. guys will probably compete on the basis of, we like thesor at all, facebooking zuckerberg abroad. and everybody can kind of then of thehe social network suppose.y like best, i

emily: suppose. how concerned are you about the regulatory risk, antitrust? >> month antitrust side, that is a tough -- on the antitrust side, that is a tough assessment to make. there are investigations led by both the house and senate that are ongoing. be resolvedl not until after the election. they will come up with some real recommendations, and there might be some more penalties and so forth. i don't think the fundamental principles will change. maybe some guardrails and clarifications, particularly

with regard to data privacy and that kind of thing. emily: john freeman, always good to have you on the show, thank you for joining us. coming up, can your blood type tell you if more are -- tell you if you are more or less likely to get covid-19? me saysarch from 23 and yes. we will speak to the ceo, next. this is bloomberg. ♪

the geneticrch from testing giant 23andme found that differences in a gene influence a person's blood type, that can

affect how likely you are to contract covid-19. this is potentially very groundbreaking. joining us now to discuss the discovery, anne wojcicki, the ceo of 23 and me. great to have you back here on the show. you have made some potentially extraordinary discoveries here. talk to us about what you found. anne: we are grateful because our customers really rose to the challenge and contributed to this research. we had people who said they had covid-19, 2000 of them said they were hospitalized. we were able to analyze the data. typeund that the o blood looks like it is protective. it is not a huge increase, but it is 9% to 18% less likely to

be infected and severe. there is more research to be found here. which is part of the reason why we are still enrolling people in this study. kitse giving away 10,000 for anyone who has been hospitalized. i really believe that we have the potential to find genetic associations that will help us know who is the most vulnerable and can we do more to potentially protect those people? emily: it is obviously good news if you are type o, and it is still early, but have you found any clues showcasing any trends for other blood types? anne: o looks like you have a decreased risk and the others looked to be similar. science, to and

understand why it is protective in some ways. to be able to identify people to say, you should be more protective, or help in vaccine or drug discovery in any way. emily: what is so interesting about covid is that it can spread so fast undetected, which means some people get very sick and many people do not get very sick at all. the question of the hour is why. thatresearch indicates genes play a role here. aboutre any clues here what role your own genetics complaint? anne: that is what we are trying to see here. symptomatic would be interesting. that is why we are giving away kits.

i just want to add, a lot of infectious diseases, things like thevirus, which is known as cruise ship virus, there are genetic mutations that say these individuals are less likely to get this disease. even things like hiv, there are mutations where people are less likely to get infected if they have this mutation. we are looking for this kind of mutation. people are significantly less at risk for being infected. emily: most of the studies so far have had a few thousand participants. hunch tou go from a actual -- took actionable information? i am really proud, but customers stepped up and rallied.

hundreds of thousands. it shows the power of having a community like 23 and me. a period of time. the scientific community needs to vent it, understand the biology around it, and this starts to get integrated into how we are managing covid-19. it will take time making sure we have more people who were diagnosed and hospitalized with covid-19. emily: how do you imagine using this information? are you exploring any potential drug development? anne: we are not. we made a decision that infectious diseases is not something that 23andme has the team for, the background. we are absolutely happy to work with partners who potentially are pursuing that. wille eager to say that we

collaborate with the academic world. useful for the drug discovery and vaccine development world. the science world has come together. would you look at or explore collaborations with drugmakers in some way and what might that involve? anne: we have a collaboration right now with gsk. they have been our partner specifically looking at drug discovery from the 23andme community. again, it -- the first step for us as a company is to put out this announcement, we felt the rush because it was so important for our customers. second is to publish this in a peer-reviewed journal and look at, are there people who want to partner with this around vaccine development and drug discovery?

emily: what your blood can tell you about covid as well, specifically how severely you get sick if you contract the disease. how can that research fit into what you are doing and as you mentioned the scientific community coming together. one thing we have been ise to do with our customers reach out again and go back to them. if another team found that there was something else in the environment that we wanted to test, we could potentially reach out with our customers and see if we can collaborate. it is early days but it is exciting that the blood type looks so real. there is a reason why o type seems to be you are less susceptible to developing covid-19 because of this blood type. begin tobsolutely

collaborate. the next and focusing on it is to continue to pursue genetic findings and we can do that would get more data. emily: meantime, the government has to clear the way in order to make sure that scientists make progress, vaccines are developed. i know you have had your own experience with u.s. bureaucracy and the fda. how confident are you that the trump administration can clear the hurdles that have to be cleared in order to make real progress that needs to be made in the middle of a pandemic? anne: we have had a lot of experience now working with the fda. the fda is filled with people that are incredibly talented and they can react at the appropriate time. vaccine development, there is all kinds of data out there. normally, it takes a while. everyone is rushing.

a balance between the seed but also the need to have a product that works. i believe the fda absolutely has the ability and they have been really responsive in terms of partnering and thinking about what is the most appropriate way to move forward? emily: we are in the middle of not just a health crisis but an economic crisis and also a social crisis now as well as protests continue over police brutality, the death of george floyd. i know that these are issues you are passionate about. what can we do to change, what are you doing to change, and how can we hold ourselves come our companies, and our leaders accountable? anne: i think the most important thing for every company, not just a company but people in andral, is take a step back

whether we realize it or not, recognize we are doing something wrong. the most important thing we need to first do is recognize there is an issue, then listen and hear the stories. as i have been hearing stories, i feel awful and that there has been this systemic problem. people within the company we have not -- even within the company that we have not necessarily addressed. i put out an email, i publicly came out and said, i have a problem, i have no one who is black who is over director level or above, or on my board. that is an issue that we need to change. we focus now on identifying these four pillars of what we can potentially do. the first one being hiring. what is our hiring practice. is the funnel wide enough? linkedin says that over 70% of people come from a network, a connection.

we all have to broaden our connections. second is the employee experience. are we doing things within the company that create micro-aggressions that do not reach -- do not create a safe space for people. third is the community impact. pipelinepporting the of people who potential he come to the company and are we supporting a diverse pipeline? and are we partnering with companies that also have diversity? i can make decisions of who i do research with, why buy supplies with. last is looking at our own product. recognizing that our product is relatively eurocentric right now. we have a opportunity to broaden that to support all populations. emily: meantime, it is certainly not only a 23andme problem, it

is an america problem, a silicon valley problem. tech companies from google to facebook, problems with misinformation about covid-19, yet so important with keeping us all connected as we shelter-in-place. important to share these stories, these devastating and passionate stories of change happening across the country. how do we find the balance for these companies in terms of using their power for good and curbing power when necessary? anne: that is a tricky question. i think there is a lot. i think every company has the spotlight shining on them right now about what they stand for. i think it is going to be really important. i think about this a lot, what are the decisions we are making today that we will look back on and say, were we part of the helpe, did we do things to

set up the kind of future we want? i think we need to look at how is it that we are managing. data coming in online. companies have a responsibility to recognize what they stand for. think covid has changed the company trajectory at all and if so, how? anne: i think covid has changed 23andme in that people are recognizing two things. one, the importance of prevention. for months, we could not easily go to the doctor. 23 and me is a lot about identity, learning about your genetics, health risks. the reason to learn about your health risks is because there is

an opportunity to prevent disease. we have seen our customers are is a disturbance of people logging in and wanting to know what they are at risk for and what actions they can take now. second, i think that fundamentally health care is changing because of the boom in telemedicine. have always said is that the old days were about a one-to-one connection between you and the doctor. frankly, those days are over. you have to find additional ways to get care. is that going to be through online, is that through a group setting, is that through telemedicine, is it chatbots? there is always going to be a need where you have to connect to a physician and person but there is a whole opportunity for keeping people well at home that

can leverage the internet, telemedicine, and this sort of remote connection opportunity. emily: what are your biggest concerns -- obviously, there are so many who are going through so many things right now whether it the health crisis, the economy, layoffs, people fighting for .obs across the country we have about 30 seconds left. concerns?our biggest optimisticd to be an individual. optimisticeel because there is so much unrest and change, there is a massive upheaval going on. frankly, the world is going to

be different. what i think about is that it is our opportunity to lose. so we have to make those changes. emily: absolutely. anne wojcicki, ceo of 23andme. we'll be right back after this quick break. ♪

emily: welcome back to bloomberg: technology. several countries across europe and asia are using their own contact tracing apps to track the spread of covid-19, but in the united states, regulators have raised concerns about privacy. york is now new working with the whistleblower of cambridge analytic and anti-facebook scandal to introduce a new bill to curb privacy and data issues. i spoke with kaiser earlier today. >> we want to be able to save human life in the midst of a pandemic.

just like we have decided all to stay at home and obey other regulations and quarantine ourselves, we should also be interested in using contact tracing. problem is that many of the governments don't have a great history of effecting data protection and privacy. they have not implement data protection legislation or regulation that will protect the privacy and how the data will be used. been workingve with new york on an emergency bill that will be introduced to state congress about how to regulate contract chasing data -- tracing data. what are you proposing? >> we are proposing that people have a clear and explicit opt in so they understand what the data is held for, who has access,

what it is used for, they will be modified by the individuals. lookinglso explicitly at the last week and a half or gethen law enforcement access to that data. there has been peaceful concern for riots that has broken out across the nation whether or not the law enforcement have been using contact tracing data to track protesters and phaps prevent the peaceful -- and perhaps prevent it. it is potentially undermining the u.s. presidential elections. how has that experience informed your views around contact tracing and data privacy. >> what i learned at cambridge aalytic to was that there is

big difference between what you can legally do with data and what you ethically should do with data. that is why i have spent so much time working with legislators to prevent the abuses i saw in the 2016 election. so we are using new regulation to make sure they are protected but this innovation can still go forward as long as it is done in an ethical and moral way. i obviously have a lot of quandaries had to do with and you can read more about it in my book. if you seen the great hack on netflix, that will also explain further why you cannot allow companies or governments to do whatever they want with personal data. we need to do it so that it is easier for companies and citizens to understand. emily: what are regulators telling you? >> many are concerned that if we make contact tracing apps explicitly opt in only, they are

not going to get enough participation and of course i understand that. infrastructurere to work to save human lives. that's why we are working very hard to balance the needs of innovation to serve our medical and societal purposes with the need to protect our fundamental freedoms. emily: it is actually hard technological problem to pull off. so how much progress has actually been made in terms of doing this successfully? will it really work at the end of the day anyway? >> if we get enough participation, it can work. there are millions of people already opting in and of those should give permission if they come into contact with somebody found to be covid-19 positive. ofhink that is great use

showing people that sharing data can be safe and for the public good and there is a way to understand what it and can't be again, a lot of those countries to have laws so they can opt in. other speaking of countries, singapore, hong kong, israel, australia. how would you compare those approaches to the united states has been late to the game? >> i would say there are some governments that have never really respected the privacy of their citizens. their ownership or data protection, it's not really a conversation. those governments have been able privaten without permission. it's not possible across europe, in the state of california, or in the legislative framework that we in the u.s. are working towards.

is important that we inform and make citizens aware of what the apps are. emily: to be pulled off technological, google and apple, to big tech companies, have decided to work together in an unprecedented partnership for contact tracing specifically for covid-19. do you have concerns about that? >> i have plenty of concerns --ut that area on one hand area about that -- concerns about that. but of course, to companies that do not have a great history in terms of respecting privacy are now able to combine data sets that they have not been able to access before from the other company's firewall. so i think it is incredibly that we get in senate

bill in new york as well as the federal legislation introduced to congress last week. emily: on the partnerships specifically, what do you think the biggest risks are? >> i think the biggest risks are that apple and google have not yet seriously take in light of the problems that will come up .n the next two years these are all issues we have not fully addressed yet, but the idea that further personal information is going to be collected should make not only the privacy community nervous, but anyone concerned about their human rights. emily: britney kaiser, former business development director at cambridge analytic and the cofounder of the digital asset association. moving on to electric vehicles. one of the biggest companies you probably haven't heard of is

called nicola. makeran electric truck and their shares have surged last week after they debuted on the nasdaq. for more on the company, ed ludlow is with us. what exactly does nicola do what are they hoping to achieve? eventually make fuel-cell electric vehicles, which are different from the battery electric vehicles from the likes of tesla. they use hydrogen and that is the source fuel that is stored in the semi truck. it is broken down into electricity which powers the electric motor. interestingat is so is they are actually openly a long way off from doing this. in the meantime, what they plan to do is partner with an italian

industrial company and build a .actory electric version thecomp kid thing around -- comp kid thing about it has been the buzz around the electric pickup truck. we know that the board plans to do more. , andhen it comes to them will become -- comb through the filings in the last few days, it's as clear as day that nicola won't be making the pickup truck lesson finds an automotive partner. when i spoke to the company, i asked the plan this. they said they would announce a partner soon but they could not give me any other details.

emily: this is a company with a $28 billion market cap right now. what makes it works -- worth so much? >> i have been trawling through the financial and it's interesting to look at the company says they have 14,000 reservations for their truck's of different types, fuel-cell trunks and mostly. but if you look at the small print, those are not binding reservations. there is no contract in place. what they say they are doing now withrking with the people rep you will reputational's to make those contractually binding. but they raised $500 million before this reverse merger deal that happened. additionalaround 250 dollars of additional funds.

they raised about 750 million in total and have interesting financials. they have about $80 billion of cash on hand, which is not a great deal of cash. but since i have been covering all of these ev startups, many of them have raised significantly more. we know they eventually plan to break ground on this huge ev factory in arizona, but right now it is still unclear where they are at with that they don't even expect to generate a real revenue for another couple of years or expect to make any money this year. emily: thank you so much for your reporting and bring us a new story. always great to have you here. coming up, the quest for

coronavirus drugs and vaccines is accelerating. we bring you the latest, next. this is bloomberg. ♪

emily: another company is going public this weekend that is v room, an auto sales platform soaring in its trading day.

earlier, the ceo sat down with bloomberg television take a .isten >> i cannot comment on pricing. what we are thrilled about, quite frankly, is the doozy has of we had from investors throughout the testing the waters process, throughout the roadshow itself. another we have gone into the markets, i say humbly because it makes them want us -- makes us want to work even harder. we are humbled and happy with the outcome. >> when i look at you, i look at other sites. they all seem to offer, at its core, the same surface, around the edges there are some differences those wondering what the differences are.

>> we built a test in class e-commerce platform and a best in class vehicle operations platform. then, the entire platform stitched together on a data, science, and experimentation platform. for customers, it means a broad , and moref cars important than ever come into ,ontact freeway and for sellers via that model, they can load in her license plate in a real-time offer and we will dispatch a truck to pick up their car and funding for the car. so we have really taken the friction out of the experience and that's why customers are really leaning in. 150% onapproaching

e-commerce and nearly 160 percent in the first quarter. and now since covid, we think there is a tailwind as more and more lean into the model. >> let's talk about that change. the coronavirus must offer a silverlining or to. talk to us about how rampant you see demand and how you do sustain it. >> we believe it is a structural change. the massive market we are playing in here, it only has 1% e-commerce penetration. they will build to reach into the pocket pull up the phone, do

everything you could possibly do in a dealership, financing, vehicle extension, and then have the car delivered. we have seen since the global pandemic is that customers now are significantly more likely to buy a car online. in fact, data suggests it has doubled. so the markets have gone our way and we have a nice tailwind in our business. that certainly makes sense. what is the trendline you're seeing with regard to overall demand. to suggestn a lot car sale growth has plateaued and people are looking to car sharing and public transit and other forms of transportation. there were moments in early march when we saw some demand.

as people were doing more under stay-at-home orders, we saw demand kicked up into the business. because we are in a commerce business, because we are agile, we were able to move through the inventory at a profit to matt on the other side of the market. it is good news for customers. so again, high interest in the model, we think that is structural. zroom ceo, paul hennessey. it has been years since millions gathered in the streets of hong kong. we get an update as u.s.-china relations continue to sour. that is next. this is bloomberg. ♪

emily: some quick breaking news to tell you about hospitalizations from covid-19 in texas have hit their highest level since the pandemic began. we know that texas has been more liberal in reopening more quickly coming out of the .helter-in-place orders virus hospitalizations are hitting their highest point since the pandemic, something we are going to hit -- going to years ago today, hundreds of protesters took to the streets, defying warnings of police an unlawful assembly. hundreds took to the streets to mark the one-year anniversary of the first major march against the since-scrapped mainland extradition will. are dozens of officers and right gear dispersing the crowd. i want to get to you yvonne man who is in hong kong. so much as happened in the last

year. most recently, this controversial new security law imposed by beijing. what is next for the pro-democracy movement? >> that is the key question, given that organizers of the events have not been able to draw the same crowds of people they drew a year ago. we mentioned hundreds of them .locking off roads when you compare to one year ago today, it was a much bigger scene or besought millions hit the streets over this extradition bill. kickoff months of protest and movement that has now involved in the fight for democracy they have mentioned this controversial national security legislation.

perhaps there has been some protest fatigue, emily, and they have lost a bit of steam. there are some, including tycoons and banks. the believe that legislation will help stabilize and revitalize the economy. they have always tried to expand to the people not to compromise freedoms here in the city. the pro-democracy front was saying they still have momentum and still have things in the works in the near future. there is the irony of president trump supporting the protest and the calls for has handledn how he the protests across the united states. see hong kong becoming more of a sticking point between

beijing and washington is this detente to that we have is being exploded? >> you could say president trump is potentially losing the moral ground to continue the fight here in hong kong. they are announcing sanctions over china over the hong kong issue in the hong kong issue could actually be a catalyst. they willst heard take residents who wants to flee the region. there saying it is no longer safe and they are seeking refuge outside of the region. they are changing immigration rules to make it easier for cantonese people with british overseas passports to seek refuge in the u.k. so you

certainly see one angle of this fight bubbling up once again. in the meantime, there are continuing concerns about how china overall has handled the pandemic. update on thes an very latest in hong kong? >> when it comes to the virus, inks have been relatively sane. at this point, it seems there would be a lot of important cases. people get tested and they get positive results. they have been able to put a stop to it at the airport. certainly, when it comes to the virus front, hong kong is succeeding. emily: yvonne man in hong kong for you this morning. thank you very much for waking up early for us and for joining

us for that update. of -- does it for this edition of "bloomberg: technology." this is bloomberg. you say that customers make their own rules.

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>> good evening. we are counting down to asia's major market opens. welcome to "daybreak: australia." believes they have overshot economic reality. continue to rise. u.s. infections are the slowest to rise, and brazil