to "bloomberg technology." stocks rising yet another day. investors hopeful about the continuing reopening of the economy despite new waves of covid-19 in multiple states. arizona, florida, oklahoma and texas, just to name a few. along with beijing, which appears to be going back into lockdown. the president touting a new infrastructure plan to help

restart the economy. some of the money being earmarked for 5g and broadband. and new developments in the house investigation into big tex. bloomberg has learned that the facebook ceo and alphabet ceo will testify if called along with amazon ceo jeff bezos. let's talk about the markets. abigail doolittle joining us. another wild day. talk to us about the main drivers. abigail: a roller coaster day. during the day out with that alleged tone. some positivity around a possible cure for the virus. plus, retail sales, the best on record. then, virus news coming out to beijing closing schools, plus texas hospitalizations at a record high, florida at a record high.

net-net, we had stocks close slightly higher. apple of for a third day, big driver, getting a boost from price target standpoint from citigroup to a street high of $400. bank getting an upgrade at of america. indication down very slightly. , stock on thee move to the downside. that is oracle. they reported their fiscal fourth-quarter, disappointing relative to revenues. that is really a tell that the covid-19 company pandemic could be weighing on the corporate i.t.. while we have this strong at ,ome technology spending corporate i.t. spending has been weaker. that could be worrisome as we think about the year ahead.

retailyou also mentioned sales being a driver. we know the president was boasting about the but the numbers still below what they were pre-covid. from a growth standpoint, up 17.7%. however, there was such a big drop prior to that, from a numbers standpoint, we are nowhere close to recovered. huge surge for certain areas such as clothing and accessories. food services, gas stations, cars are lower. not surprising with people home. it's where we also had a lot of strength, anything to do with the home. furnishing, decorating, home improvement. people are trying to make it more comfortable. we look at a breakdown for the retail sector, not surprisingly, brick and mortar.

nordstrom up 13%. also, groupon. fore are coupons and deals brick and mortar foundations. those stocks surging. stay-at-home retail, not so much. email and etsy higher but really underperforming the other retail winners. this idea of stay-at-home stocks, reopening stocks, lots of tension. we'll be here to follow it. emily: interesting. i know that plenty of desks have been bought in this house. abigail doolittle for us in new york. the trump administration touting its latest proposal to get the economy going. bloomberg has learned trump infrastructure plan has called for spending almost a trillion dollars on infrastructure. most of the money would be set aside for traditional projects 5g some would be spent on

projects and rural broadband. what is significant about the latest plan and what stands out to you? josh: we know that democrats have a proposal to essentially beef up and expiring law. we are not sure what president trump wants to do. did he want to roll something on infrastructure maybe smaller, or does he want his own thing? it looks like door number two. we know that the department of transportation is preparing a proposal on behalf of the administration. we understand it is about a trillion dollars. four months ago, before the pandemic, 10 years. the blueprint, they wanted about 20% of that for additional

infrastructure type stuff beyond the static roads and bridges. it looks like they are maybe building off of that. i think it is clear that on both sides of the aisle we have momentum in congress for at least something infrastructure related. in septemberes just before the vote. how much of this might go to the more techy pursuits like 5g, like broadband. i think lobbyists, start your engines. it will probably play out a lot like the initial virus aid to build it. want sort of they nontraditional infrastructure, if you will, to be able to access $.20 on the dollar. this could potentially be

big-money, something on the order of nearly $200 billion. hanging over all of this is at thet negative views from president on china. he blames china for not doing enough to quell the virus. can see the pressure continuing to ratchet up on china. ratcheting up pressure on huawei, chinese telecoms, a non-chinese solution to build out infrastructure. that they arees leaning on. i do think that the landscape is being set here for something to be done in a way that at least themizes the role of chinese role in 5g.

emily: the president held a press conference earlier about police reform, then veered off script. obviously, so much still happening in this country. you are seeing a resurgence of cases in arizona, oklahoma, florida, texas. also beijing. how do you expect the ?dministration to confront this josh: there is an op-ed tomorrow in the wall street journal by the vice president, saying that there is no second wave. all of these states that look like they are having problems are having their first wave. that includes oklahoma, where the president will hold a rally this saturday. arizona, florida. the u.s. is not out of the woods

with the virus. the president is advocating reopening without doing a lot of things that might make things smoother, like encouraging social distancing, wearing a mask himself. i think the president is kind of hoping that this will continue to decline. a second wave, most epidemiologists expect to come. but we are still in the first wave and many states are taking steps to loosen restrictions that could help it to continue to roll. emily: a tale of two america's coming to you from our socially distanced home studio. thank you, josh wingrove come our white house reporter. up, oracle shares sliding after reporting results. we will talk about what else is happening in big tech, next. this is bloomberg. ♪

shares downe sharply in late trading after reporting quarterly results. the company feeling the impact from the pandemic, and not in a good way. thesehat is your take on results and how oracle seems to be weathering or not weathering covid-19. >> and a lot of ways, the results are not too big of a surprise. oracle, they are a leader in the relational database area. human capital management. enterprisell huge software types of programs. it is not too big a surprise

that they came in a little bit light. one of the statistics was their cloud service. support number came in at about $6.85 billion. that is below what i was looking for, about $7 billion. not too big a surprise. that is that they again are still trying to make that migration as being a pure player, more of a cloud company. older line is an tech company, or aws or microsoft that has been successful in making that migration. they have still not quite gotten there yet and i think that is what showed up in these numbers today. emily: we are listening to the earnings call right now, saying they are working with their clients on resuming deals, also signing up new clients. how is oracle performing compared to some of the competitors out there like

salesforce? are they in a demonstrably worse position in the pandemic than some of their counterparts? >> they are so enterprise focused. salesforce, they have about a market share in the cloud space. oracle only has about 6% market share. a huge base of people who use their database software that they can then convert those in the cloud. i think that is where they have an in, where they already have the client. idea thatem on the they are using salesforce. emily: continuing to look into customers delayed

payments but they are expecting to recoup a lot of those delayed payments. we are going to continue to follow these headlines as they roll in. . want to ask you we know that the federal looking intos been antitrust violations from facebook and google. those executives are willing to testify if necessary, jeff bezos, also he is willing to testify as well. how big a risk do you think these federal probes are into these various companies? >> i don't foresee any sort of legislation that will come out

in the next year that will, say, breakup amazon or apple or anything like that. the late 90's, when there was talk about breaking up microsoft. if we look at some of these charge-offs that have occurred more recently, for example, we know that facebook did a huge charge-off about three or four quarters ago where they a more dightest -- where they amortize a huge payment. what it looks to me is more like something down the road where these companies are going to be forced to kind of write a check and take a loss on a quarter to meet the demand of legislators in regards to violations they may have. i don't see across the board breakup of, let's say i'm a google. say, google.'s emily: we don't know about tim cook's willingness to testify in

these u.s. congressional investigations. we do know that the eu has opened two antitrust probes into apple. we do have a statement from apple. these probes into the app store and apple pay. the statement today saying it is disappointing that the european commission is advancing baseless complaints from a handful of companies that simply want a free ride and don't want to play by the same rules. we want to maintain a level playing field where anyone with determination and a great idea can succeed. some pretty large companies like spotify have complained to the eu about apple's practices. what is your take on how big a risk this could be? >> that is interesting because about 70% in the last quarter,

we know the services side, apple pay come everything they do with their apps and so forth, that is a big component going forward. that is a big part of their growth recipe going forward and a big part of offsetting some of the slowness. a lot of people are not looking to probably the holiday quarter or maybe christmas when we get the 5g, which would be the next ramp up in terms of people upgrading their phones. this is something we might have to follow if they write off or change what they are doing in this area, obviously a huge growth area. facebook has been facing a storm of controversy about how they moderate content on their platform, not labeling or fact a fairly incendiary tweet by president trump.

do you see this as a risk to the long-term business given that it is an ad based business. spending 52-50 $6 billion in artificial intelligence amongst other things to clean this up. it seems like it still has been a challenge for them. you can imagine how difficult it would be on the platforms that facebook has to fact-check or make sure the information is not false and so forth on everything being said. .t is also a huge endeavor it obviously drains their bottom eps in terms of ebitda and compared to topline growth. and profits are essentially going to be negative in terms of growth.

all right, many stories there. we will continue to follow them. synovus trust, always good to have you on the show. coming up, employers are rushing to innovate social distancing at work. software weome new will tell you about. will it be enough? we will discuss. this is bloomberg. ♪

emily: amazon is deploying new social distancing software

across its warehouses. the software called distance assistant warns employees when they are too close to their colleagues. it is the latest effort by the e-commerce giant to address their practices. i want to get to bloomberg's math day -- bloomberg's matt day with the details. little bitworks a like the augmented reality experience from pokemon go. employees are filmed on video cameras with depth sensors. they see themselves in footage when it happens. superimposed around them, little green circles follow them around. thaton as software detects someone comes to close to them, that circle turns red. it is a little feedback that allows people in high-traffic areas know that they have to spread out. emily: how has social distancing inside the warehouses been working up to this point? we know there has been a lot of

work lace agitation around this issue. we know there have been some deaths of covid-19 among amazon employees. delivering astill quickly as they are but still staying safe inside? the speed at which they have been able to move people through their warehouses, they have spread out people, used analog distancing measures. amazon thinks they have a pretty good hold on things. processes ino their warehouse. employees say there are still some tasks where it is difficult to stay apart from people and lax enforcement within the warehouses. word: since you used the police, i know in some ways we wantan't win but

workers to be safe, but at the same time this new technology sounds a little bit big brother. how is amazon addressing potential privacy concerns, especially given all the discussion of how law-enforcement uses and applies technology? matt: amazon has taken a couple unusual steps with this software. usually, this would run as a cloud service on amazon servers. that is not the case with this. they say this is run locally with a computer, not up to -- not uploaded to the internet, and it is not stored. it is only live. that will probably draw some skepticism for a company that does story lot of data. they have taken some steps to make sure this could not be used potentially for nefarious person tracking. has itseantime, amazon own facial recognition software it was providing to law

enforcement. it has paused the use of that for i believe a year so that congress can work on legislation about how this technology can be used. what is the latest on that? matt: they have not explained much about what this policy will mean for users of the tech other than police departments cannot use their facial recognition tools for a year. they were talking about broader rules but that is not clear whether that means amazon standards. ,mily: bloomberg's matt day thanks for continuing to keep us updated on amazon's efforts. coming up, cisco expanding its efforts to fight covid-19. now, systemic racism. with half $1 billion in new commitment.

cisco'sspeak with executive vice president and chief people officer next. this is bloomberg. ♪

emily: welcome back to "bloomberg: technology go -- technology." cisco is redirecting some of their covid-19 funds to fight systemic racism. is turning one of their regular conferences into a form for discussion about how stakeholder capitalism is not enough. i want to bring in the chief people officer for cisco here. thank you for joining us. obviously, this is a big number. where this money is

going and why you think it is best being redirected. >> it's wonderful to be with you. the first thing i would say is that for over 30 years, cisco has been a big believer in supporting immunities around the globe. this is important to us and has shaped the way we show up and train around the globe. the approach we have taken is really to focus on four key areas. we started first with covid and then started to look at how we can leverage funds to address racism. what we are doing is first looking at those that are most vulnerable. the second thing we are doing which is very close to our culture and what we care about is looking at family and communities. we are then looking at resilience and research and how role.y a bigger whole --

attly, we are really looking the strategic imperative for those initiatives that can make a difference. our dollars have really been spent in these four key areas. weeksou heard about two ago is we have decided to take a bigger stand as it relates to racism. so we have given money to many organizations that we think can play a significant role. we arewould imagine, having a lot of conversations and taking actions internally as well. emily: let's talk about those conversations. companies did not necessarily take a stand on internal issues. i know that is something cisco has increasingly decided has to take a stand and has these conversations internally. how do you internally draw the line between work and politics, work and social issues? or are they simply increasingly intertwined? >> such a great question and a

good point. we decided we had to have this conversation. there was a stat shared recently that basically said the workplace is where we experience difference. 70% of people said they do not experience difference in their home or personal lives but do in the work lays. i think it is all the more reason for us to truly lean into it because this is where we are going to make significant progress. it's true that this was once seen as something you did not talk about in the work race, the realization we have had is if we don't, we are not going to see the change that is required. after hearing about the murder of george floyd, what we did was call and employee meeting. we invited brian stevenson from the equal justice initiative and we just had this conversation where we were educating our teams and sharing our

perspective. something i think is so important is that we should not bring politics into racism. something that should not be considered a political issue and we are doing our best to navigate that with our employees . emily: we have been having a lot of conversations on this on our show. us that theseold commitments in general are nice but they also ring hollow. why is it only that when companies are pushed into a corner when black lives matter movement rises up that companies are just doing this now. it something they should have been doing all along. what is your response to that? fran: i think that is incredibly fair. when i think about the comments and great messages i hear other companies putting out there,

what employees are looking for is are we living this internally? when employees feel their companies are committed to change and they see these significant changes and improvements in the community. that's when you start to find momentum. of us, the first week january, chuck gathered us in our homes with 20 of our african-american leaders. we spent about three hours just listening to their experiences at cisco. lot.that, we learned a what we knew more than anything else was we had to take action. we created a 100 day sprint and the results of that was we achieved 100 10% of our university hiring goal. 100% of our university hiring goal. we did a 100% parity review as well, which is powerful.

then we set goals up and down .he company when our employees understand we have been doing this work, it just feels real. committed, ands we heard this from chuck, we want to be laying off people in the midst of pandemic. we continue?hing that we don't know how long the social and health crisis is going to continue? very i think chuck was clear at the beginning of the pandemic that we were going to do every single thing in our power to prevent putting our employees out into the job market. that's something we care a lot about. it's something we are going to work and currently hard to do. it's funny. my team, we are getting really

creative about ideas on how to reduce some of the costs and navigate through the recession. we are going to do our best to stay in this mode. emily: all right. people officer, it's great to have your voice here. thank you for joining us. coming up, the food and travel industry. we speak to the ceo of kayak and opentable on trends he is seeing. this is bloomberg.

be theair travel won't same until at least 2023.

, at's according to kayak company tracking demand via flight searches on its platform. even as countries and cities slowly reopen, it is still a long way to go for the travel industry. steve, thering in ceo of kayak and opentable for a view at what is happening. thanks for joining us. let's start with air travel. what kind of demand are you seeing? how much is it picking up and will it ever go back to normal? steve: thanks for having me on. we are starting to see a slight recovery in consumer and travel. we are starting to see information from month -- from billions of flight inquiries so people starting to see where demand picks back up and how travel trends are changing. is ayou see from the data low point in our system on april

7 when travel queries were down 80% versus prior years. when you look at yesterday's information, it was only down a few percent. it's a big surge since early april. term: let's talk longer and start with corporate travel. do you think corporate travel will ever get back to the way it was? companies to cut costs and keep employees safe. now that we know how well we can do things remotely, some will say what is the point? steve: you are asking someone who used to spend one day a week on the airplane. the reality is i think corporate travel always lags consumer travel in terms of rebound from a shock or economic recession. i don't think this will be different.

the differences is now people have proven that you can work from home. you don't need to lose the time or incur the costs of a lot of business travel. corporate travel will bounce back but probably take longer than consumer travel. that's why we are predicting a return to 2013 levels. so you think that by 2023, things will be back to normal? i wonder if there's going to be a permanent shift, at least when it comes to consumer travel. are people going to want to get on a plane? are they going to just want to drive somewhere driving distance and not take that risk? steve: the wildcard is actually what happens with covid-19. is there going to be a vaccine? we already have upgraded protocols in testing capacity. i think consumer confidence will

return. as a businessperson, i'm certainly looking forward to getting back on the road and airplanes. what about the restaurant industry? opentable came out and said one in four restaurants will never reopen. now that we have had this wave of protests, we are seeing new waves of covid-19 across the country. how does that look? that, it may be more than i hope it is not. we have thousands of restaurant and we expect many to currently shut down. that reflects a couple of things. operate onaurants thin margins already pre-covid. add the safety measures they have to take, capacity restrictions, and the higher cost of recruiting personnel to work on those restaurants.

it's going to be tough for them. even in the best of times, it's a tough business. see ahink we are going to germanic reduction in economic reduction-- traumatic in economic activity. how dramatic a reduction in terms of the traffic and economic activity? steve: if 25% of restaurants close, i wouldn't expect the rest of the remaining locations to pick up all that much business. i don't want people to underestimate the creativity of restaurant tours -- of restaurants. here, restaurants that historically have never had outdoor spaces now have tents set up. the city has opened lanes for them to operate. you have pickups and delivery. there has been a lot of innovation in the space and they are doing everything they can to help them. one silver lining of the

pandemic is when consumers and businesses are much more likely to adopt online or digital services. the opentable software is now allowing you to bypass the hostess stand, to revisit orders from the menu and to even pay. -- i't think that will think that will all require more staff the restaurant level. emily: in the meantime, you have somebody restaurants that operate at a reduced capacity. there are limits on what they can actually do and i wonder if we are not seeing that some of the numbers you provided. some of the restaurants, though they are still open, they are just doing a fraction of the business they once were and can legally do. steve: that's right. if you look at our data half of are open fort business again. 78% are below where they were last year. it's notbe open, but

nearly serving as many diners were making as much money, so that's why think pickups and delivery models are important going forward. emily: what are you hearing about staffing? we have heard anecdotally that some restaurants are having trouble getting employees to come back because a they are nervous about their health, and they are not being paid enough. i wonder how much that is going to hold restaurants back. steve: it is a big consideration. toursof famous restaurant -- restaurants have been famous -- very vocal. some of the aid was more generous then employees would make working in the hospitality industry and that makes it difficult to bounce. -- bounceback. but i would say this is a perfect time to reimagine how

you conduct your services. need a traditional hostess stand or do you trust the customer to come in? do you need a waiter to hand out menus, collect orders, or give you the check at the end of a transaction? or will you just allow your customers to order from apps, pay, and walked out? improvementa lot of for restaurant tours -- four restaurants to make. on that note, innovation happens in times of crisis and i wonder if this has you rethinking any potential partnerships. would you be willing to integrate with a company like airbnb which has home sharing and property sharing and set of additional hotels -- instead of additional hotels? would you be open to new types of deals that would not have happened pre-covid?

steve: sure. tribe --r premier travel band, we have always wanted their inventory on kayak to be comprehensive. we have historically been restrictive about that and want to keep all the inventory on their platform, but most of that inventory is available on kayak via other distributors like booking.com. i do hope everyone in the restaurant and travel business comes together and cooperates a little bit more. that's a we have seen through the pandemic aired -- pandemic. with no business to be had, no one is fighting over market share. but i'm hoping people become more open-minded about the businesses and partnerships they have. i will make sure to ask brian that question next time we chat.

generally then, what is the outlook for you? we don't know how long this is going to go on for. we don't know how bad the second wave of the virus is going to be. are you reconsidering your own staffing plan? layoffs and can you or will you operate your own company more cleanly -- more leanly if this continues? steve: we prided ourselves on being lean, nimble, and entrepreneurial. we had the most attractive profit margins in the industry that served us well as we entered the pandemic. we did not have to make as many costs or staffing changes. they had a healthy business, a healthy balance sheet. quickly.end very

staffing, and at what was said was we've already reduced 25% of our staff through layoffs and furloughs. 2023, we arewards actually bringing people back there it -- back. as restaurants reopen, we need people. we have brought back our first folks last week, which i was delighted to welcome back. emily: all right. thank you so much for giving us a view into what is happening in this business. curious.l very qs -- steve, we will check back in with u.s. things progress thank you. still ahead, and asked ebay ceo is said to have considered a scare tactic that is grisly and bizarre, all to take down an online blogger.

we have that story next.

emily: in a bizarre story, the fbi now claims a former top ebay executive led a plot to silence an online blogger with the use of cockroaches and a bloody pig .ask former ceo of ebay implicated here. .hat exactly happened >> they publish an online newsletter. it covers news about online marketplaces, including ebay.

so they were getting bizarre things happening to them like getting packages with cockroaches, a funeral wreath, a book about how to survive the death of a spouse, and complaints to law-enforcement. it all eventually led to ebay employees that have allegedly led this harassment campaign in efforts to scare this couple away. long federalery and were able to corroborate that he was indeed executive one referred to in this indictment. the people been who -- the people who have been charged with a crime our security workers within ebay -- are security workers within ebay who allegedly did these deeds. the question now is why? for these folks who went rogue, where they directed to do more stuff? emily: why, why come and why. why?y, and

that is the question. what would the next steps in this case be? >> the indictment was revealed monday and people have been charged. obviously, if the folks have anything else to say, this would be a good time for them to do it. what we are watching is these folks who have been directly charged of crimes. they have anything more to share with it with prosecutors or any more of these criminal indictments moving up the food chain or it might just stay where it is. emily: just a quote from your story, we are going to crush this lady one employee is described as saying. quickly, could this have had anything to do with him leaving the company? >> absolutely.

the timing of it all corresponds. prosecutors allege that this behavior began in august. there is definitely a connection. emily: all right. soper, wes spencer are going to continue to follow the story, bloody pig masks and all. that does it for this edition of "bloomberg: technology." bloomberg daybreak: asia is next. i am emily chang. -- daybreak: australia is next. i am emily chang. this is bloomberg. ♪ save hundreds on your wireless bill

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only with xfinity mobile. now that's simple easy awesome. switch and save up to $400 a year on your wireless bill. plus get $200 off a new samsung galaxy s20 ultra. world headquarters. we are counting down to the major market open. welcome to daybreak: australia. top stories this hour. beijing shuts markets and schools as a ported seafood is blamed for the coronavirus saying potential carriers cannot leave. optimism of a u.s. recovery overshadows fears of a secon