emily: welcome to "bloomberg technology." stocks rising to their highest levels since the pandemic again and pulling back sharply. search in various cases across the country. florida marking its biggest increase in cases statewide ever. this as disney world reopens case -- reopens for business.

california also dramatically rolling back. indoor dining and bars across the state. staff to asking retail work from home as the company forces more stores across the covid-19.d shipping joining us to break it all down and talk about how this hit the market today, bloomberg markets reporter abigail doolittle. talk to us about what drove the drove higher than sharply them back. abigail: a big aeration reversal having not so much to do with the virus. 500, the s&p&p 500, the highest level out of the air market. the bigger show was for the tech

space. the nasdaq at one point up more than 2%, closing down more than 2%. those indexes so tightly wound, record high after record high, including today. overbought, overextended. there were also some headlines out around the u.s. and china that seemed to help the selling pressure continue. with that, we had bonds trade higher. if you take a look at it on the day, netflix a perfect example. today, earlier today, netflix had been up about 4%, closing down 4%. expectations to put a good quarter up. for interesting, investors and traders have been rushing into

stocks, rushing out on these overextended and overbought conditions. so, let's talk a little bit about the broader scheme here and the impact that these rising cases across the country are impacting investors. abigail: it is really surprising to me because i would think that investors would be taking these rising case counts and hotspots more seriously. the four hotspots in the u.s. is going, this chart in the wrong direction. search onenue record the -- record surge on the day. usually you want to see a chart move upwards from left to right, but not in this case. over the past few months, the nasdaq putting in all-time highs. you would think there would be

some fear that the economy would be impacted by this. california reversing being able to eat inside. perhaps, more be, of a connection between this sur ge, this part of still the first wave, these states that were not hit as badly earlier. relative to stocks on the year, there is this huge divergence that speaks to the possibility of more volatility ahead. 500 down00 up -- s&p 2%. the russell, most closely linked to the u.s., down 16%. when you have a divergence like that, typically there will be a convergence. the fact that small-cap was down, not such a great thing. the 2008l before volatility.

let's hope something along those lines does not happen again. volatility here in the u.s. could be a trigger. emily: abigail doolittle in new york, thanks so much. meantime, one of the stocks that rose sharply, then pulled back sharply today was tesla shares rising into the double digits, then back into negative territory. joining us, dan ives. there was a lot of optimism around tesla announcing battery day. what do you make of the sharp rise and then the sharp pullback? >> just a little bit of a knee-jerk reaction. daynet, you look at battery combined with earnings and profitability, right now $2000 could be on the near term horizon for the stocks despite these covid storm clouds.

so, talk to us then about battery day. how optimistic are you about this? what does this mean to the larger story of the company? day will be battery a potential game changer for the story. i believe the million mile battery gets announced and i think it is important because this along with some other technology names, that is something that is going to enable tesla to continue to cut some prices on some of these cars. it, then you look at moat they have built from a battery perspective, combined with deliveries, and right now in the ev market, it is tesla's world and everyone else is paying rent.

you are seeing investors continue to push shares higher and i don't see that slowing down. meantime, you have got earnings around the corner. how important will profitability be given that tesla is very close to joining the s&p 500 and analysts have big expectations? dan: if you look at the 90,000 number for delivery, it looks like that will be profitability. i think you will also see, institutionally speaking, much more of a buy in from an investor perspective, which is key to the next leg higher in tesla. i think earnings in general, there continues to be a lot of volatility near term. i think investors are looking on the others, how quickly you can see a bounceback, back to a

of 2022.y emily: what about the company's into india? meaningful relative to all global demand. right now, with tax credits in the rearview mirror, the u.s., not as much of a growth market for tesla, which is why china is the linchpin. india,u look at europe, some other areas. these are going to be key to the next leg of this growth story. see investors starting to forest for the trees in terms of go.e the eb market could emily: meantime, i want to talk about apple.

apple telling retail employees to work from home. this as customers are facing longer wait times and we know we are dependent on our devices right now. what do you make of this? dan: they are a barometer for overall retail, what we are seeing not just in the united states but across the world. the one thing from an investor perspective, retail is only representing 68% of sales. iphoneal going into an 12, which we believe will be a super cycle. cupertino cook and continue to lead by example, safety first. these are the smart and thessary moves, even though headline looks bad, from closing the stores, it does not significantly move the needle in

terms of the actual growth story going forward. emily: meantime, you have tim cook preparing to testify before the antitrust subcommittee and a couple of weeks in d.c. along with the ceos of facebook, google, and amazon. apple and these other enormous tech companies. the i think july 27 is seminal day. investors in the street need to understand, is this going to be political grandstanding or sharper teeth going into the antitrust issues. i think it is important. i do believe investors are starting to more understand the potential risk. of course, that would be google and amazon versus may be apple. i think it comes down to going into a presidential election. this could be a more pronounced risk.

right now, we think it is more fines, but it does feel like a brighter spot. environment, the strong has gotten stronger, which is great for the stocks. emily: dan ives of wedbush securities, always great to have you on the show. coming up, should more companies follow in wells fargo's footsteps and band tictoc from employees phones? this is bloomberg. ♪

emily: wells fargo is the latest company to tell his employees to remove the tiktok app from work phones. white house advisor peter navarro says even if the company is sold to a u.s. buyer, it won't matter. here to discuss potential cyber threats from tiktok, the managing director of the cyber readiness institute, who was also a cybersecurity advisor to president obama. what do you make of amazon -- they called it an error last week, sending any mail to employees that they would be required to delete the tiktok app, then seeing later in the

day that was incorrect. >> i think there is a lot to be singing about with this issue. what i am hearing from industry and the national security circles in d.c., the concern and fear over chinese companies like tiktok is very much out there. maden't expect that amazon an error but we don't know exactly what happens. with wells fargo following today, we can certainly assume that a lot of companies in the board rooms, there is a lot of discussion about what to do about this app, particularly as it can -- as it pertains to company security. emily: what are the risks as you see them? kiersten: there are really three issues here. the first is that tiktok is collecting private data, personally identifiable data. the second issue, while that is

not too unusual, because we have seen it with facebook and other tech platforms. but the second issue is that tiktok is a chinese company, which means that at any point in time, the chinese government over ask that they turn information. we don't know what china would do with that data. what we know is that china is data and thelot of opportunity to collected from chinese companies like tiktok. if we were to find out that china had breached a company like 23 and me, and we combined the theft of data from a company like 23 and me with the personal identification information from a company like tiktok, that would be disturbing. as a nation, we want to be thinking proactively about how to secure the nation and its citizens. emily: does that mean you think

that 23 and me should be telling the employees to delete the app from their phones? kiersten: i certainly think it is something that large companies should be looking at. this really is a supply chain security issue. we know that malicious actors don't come to big companies through the front door. they find weaker links. an entertainment app that is downloaded on devices is certainly a vulnerable opportunity. a side door that could be exposed. companies have to make a risk management decision about the risk-reward, what they are willing to roll the dice on and what they are not willing to sacrifice. emily: india has banned a number of chinese apps on grounds of security concerns. kiersten: what is important to know is that chinese companies

that enter the u.s., in with a presumption of guilt. that is based on years of intellectual property theft that has been documented by the chinese government, by china in general. there is always a risk management decision, knowing that when these companies, in, certainly not all of them pose this risk, but we don't know how many do. and we have to do our homework and the due diligence of how we are protecting ourselves and security of our nation. emily: white house advisor peter navarro said that even if tiktok is sold to an american buyer, that would not help things. because we would have to give china millions of dollars for the privilege of allowing to operate on u.s. soil. kiersten: as long as it is a chinese owned company that has its grounding in the chinese

government, that beijing has the ability to access tiktok, we have to look at how we are treating it. it goes to where personal use interferes with public use. we don't have these lines that protect one sector from another sector. era ofin an interdependency now. we don't have those foundries. it is a link to something bigger and better that you are part of. if you are an employee of a large company, it becomes an access point to you. we have seen lots of evidence in the past, using part of the supply chain that may not be linear of trying to get into a company. emily: you have a view on cyber threats across the board.

since so many of us are working from home, what are the biggest cyber threats that you see out there right now? the electionh security issue and where we are right now. we have spent the last few months as a nation going to an entirely remote workforce. we have gotten used to identifying ways to have secure remote workforces. i think one of the challenges that we will have is how we security hybrid workforce. what we know is that many u.s. companies will bring about 20% of their workforce back to the office. that means you will have a hybrid environment of people working in a physical secure office, then working from home. a lot of companies had to put together makeshift policies to handle the immediate crisis. hope we have to look at now is

longer-term strategic policies for security that respect and acknowledge the environment of virtual workspaces as well as physical spaces. thank you so much for joining us. google helping to speed up india's digital economy with a $10 billion investment. this is bloomberg. ♪

emily: google has announced new $10 billion fund to invest in india.

garrett, obviously, we know that sundar pichai and the ceo of alphabet have close ties to india. but what do you make of this particular investment? obviously, india is a huge market for google. it is one of the most important internet markets in the world. it is not somewhere that google can afford to ignore. invested already billions of dollars over the years. that $10 billion number sounds about right. -- they that they are want to be public about it and want to keep the big internet infrastructure company in india. one of the things they said they

would be spending money on is opening up access to their product to many different languages. there are many languages in india and the internet is not accessible to everyone who lives in india, even those who may have access to smartphones. those are the kind of things that they are trying to ramp up with the money. you had a piece out today theow google is changing up way they drive traffic to websites and various search upgrades that makes it harder for sites to gain traffic. gerrit: if people remember maybe 15 years ago when they first started using google, it was very simple, they were just a couple of ads at the top, then a couple of blue links that took you directly to the websites that google thought matched your search in the best way. over the years, we have noticed

that instead of just giving you a link, they may try to answer your question directly. a historical fact, they will just pull that information from wikipedia. over the years, this has started to damage a lot of companies that have made content as their lifeblood. justa lot of people are staying on google instead of actually going out to the web. so this is a dynamic that has slowly been happening, like a frog being boiled without really knowing it. now it is having a serious effect on certain websites. emily: interesting. we will have to see if this is something that comes up in the antitrust hearings later this month. thank you for joining us for that update. coming up, disney opened the gates to the magic kingdom over

the weekend in florida. why now? i will speak with the head of disney parks, coming up next. this is bloomberg. ♪

emily: welcome back to bloomberg technology. i'm emily chang. president trump is taking full advantage of facebook's granular knowledge of its users interests to rally his voter base through marco targeting. he is doing that much more often than vice president joe biden. i want to bring in kurt wagner who covers the company for us. is this like part two of the 2016 story? kurt: it certainly feels that way. was trumpew for 2016 really use facebook's targeting

tool a lot more than hillary clinton. he ran a lot more ads. he was more specific in who he was trying to reach and what he was trying to get from them, usually an n.l. or phone number so he could follow-up with campaign requests and donation requests. the same thing here. 489,000t trump has sent different facebook ads compared to joe biden's 23,000. you look at the vast number to give a sense of how specific he is being. a lot of these ads are not seen by many people. he is trying to micro target and get people the exact messaging he thinks will be most relevant to them. emily: this in the middle of a facebook ad boycott that trump and biden have not been supporting. why isn't biden doing it? kurt: it's a good question. it was a question after 2016. there was a lot of attention

paid to the democratic digital campaign at first. there was a lot of discussion of what could have been done better or should have been done better. my guess is we have seen the spending from joe biden really increase in the last couple months. basically, ever since he became the official democratic nominee. so, in theory, maybe he didn't have as much money. maybe before the pandemic, he was trying to spend more on other platforms because he was again going against so many other candidates at the time. now that we have seen rallies be put on hold and in person events be put on hold, we have seen his spending start to increase. i imagine for the rest of the summer and into the campaign, facebook will be one of the top, if not the top place for him to start spending money. we might see this become a little more of their strategy moving forward but it is a good question. emily: meantime, you are reporting facebook is now considering a possible ban on political ads leading up to the

election. where are they on that? and talk to us about the upsides and downsides of such a thing. kurt: this was a story reran -- we ran friday. there were discussions about banning political ads in the days leading up to the election. mostly the pros, or the reasons for possibly doing this would be to cut down on the spread of misinformation or misleading content as the election approaches. because facebook's policies that it will not back-check campaigns or candidates themselves, in theory, they would open themselves up in the days leading up to the election of potentially being paid to spread lies on behalf of the candidate. that would be the real reason to do that. the real downside is this could really hinder those who are trying to get out the vote campaigns. those who are trying to encourage people to go to the

polls, who might be trying to share relevant information about how to do a mail-in ballot. those of the types of things that will get caught in this net as well. if you cannot do the political ads, you cannot do get out the vote campaigns, there are a lot of people who think this could have some negative consequences as well. emily: and we know facebook has made trying to sign up new voters one of its priorities this season. thank you so much for that update. over the weekend, disney reopened the magic kingdom in florida. this as cases of covid-19 surge across the state. i will speak to disney's head of parks, josh d'amaro, next. ♪

emily: disney began reopening its theme parks in florida over the weekend. this after a near four-month shutdown. the move drawing criticism as cases of covid-19 surge across the state. i spoke with josh d'amaro, the chair of disney parks, experiences and products about why and why now? here today atts the magic and him, this a lot of trust. a lot of trust we will reopen in a responsible way. also our cast members trusting us. i think we have done a really nice job of that. we have been down for four months. we were one of the first theme parks to close in orlando and we will be the last to open. we spent a lot of time to make sure we uphold our response

ability. have cases said, you and deaths in florida hitting record highs. you have people in hospitals who are not happy you are reopening. a question a lot of people are asking is why reopen? why not wait a few more weeks, months? josh: this is our new normal. this is the world we now live in. as i said earlier, we have created a really flexible operating environment here. we're in control. we have new safety protocols in place. people wearing face mask like i am today to temperature checks to social distancing to new cleanliness standards and even reservations. if you want to show up today at the magic kingdom, there's a reservation system in place so we can control the number of guests. this is a new world we are operating in and we feel like we

have a way to operate in the new world. emily: we have seen photos circulating on social media, oen ne in particular, a line. no social distancing. awkward pileups. josh: with the new environment we have created, there is a response ability for both our guests and our operating environment. as we continue to open up, we are adjusting and modifying what we can modify. i say in general, if you walk down main street today or look around a merchandise shop, you will see a very different experience you've never had before. emily: so, would you take your kids to disney world right now or would you tell your friends and family? josh: absolutely, without a doubt. whether it is here at walt disney world or disney springs that i recently went to. we opened up in anaheim. absolutely. i think if you went around, like it did the last few days, they

feel very good. if guests have some concerns, when they are ready to come, we will be ready for them to come visit us. emily: what about employees? it is one thing to visit, you know, once. but it is another thing to go in day after day. california, employees and cast numbers you don't feel safe. what are you telling them? josh: first of all, i would start with the fact i spent a lot of time in the parks yesterday. we had some previews yesterday. i walked around the magic kingdom. i've got to talk to hundreds of cast members. this is a big deal for us. they have a lot of trust in us. i think it is important we educate them, train them in a new way. we demonstrate the safety protocols. the cast members are feeling really good. from a union perspective, i'm really proud of the relationships we have with our union.

we have a union that represents 50,000 cast members that have reviewed our guidelines and agree with our guidelines. it is a big response ability for us. i feel like we have gone above and beyond to make sure we are creating a solid environment. emily: you postpone the opening of disneyland in california because state authorities would not give you the approval you need. meantime, you've got florida's governor saying it is ok to reopen. california's governors saying we are happy you haven't. what did you make of two different approaches in the same country for the same business? josh: started in california, the government guidelines are not yet released, so that is why disneyland is not open at this point. obviously, this a different situation here. in any case, we are going to follow government protocol. we are going to listen to medical experts. we are going to learn from our theme parks around the world and apply those and open up. everything the cdc puts out, we

are listening to very clearly. we are confident in the operations protocol we have in place and we're opening responsibly. as soon as california is ready to reopen, we will be ready to go. emily: universal has been opened in florida for a few weeks and attendance has not hit. they have to lay off some workers. what does attendance look like for you? we're taking baby steps here. we will open slowly. we have the reservation system in place. you can't just show up. i will tell you that when we opened up our reservations system, we were pretty pleased with the demand we saw. the demand not only showing up in the short-term, but also well into 2021. again, our guests trust us. they trust we will create an environment that they can still experience the magic in. we will continue to adjust the

operation as we see fit. we have created an planning to t in more or less people than you have been letting in in shanghai? josh: every park will be a little different. we look at capacity, the number of attractions, the specific guidelines in the marketplace. we will dial things up and down depending on the marketplace. each of these parks is a phased operating approach. we have a dial we are moving as we see as the guests are behaving and what demand looks like. i will tell you, we are pretty pleased with what we have seen right here at walt disney world, as well as in our international market. emily: you've got epcot center and hollywood studios. what is the plan for california at this point? josh: california right now, the government has not issued guidelines for theme parks reopening. i can tell you that having the benefit of theme parks around the world and watching how they

operate, we are very prepared. as soon as the marketplace is ready for us to open, we will be opening disneyland but we don't have a date. emily: you also oversee experiences which is gaming publishing. you have a broad view on the overall landscape. i spoke to the ceo of airbnb and he tells me he doesn't think travel will ever be the same. i'm curious when do you think theme park attendance will get back to what it was in 2019? next year, 2022? will it be ever? josh: disney is in a very unique position. this place means something to people. it's an important part of their lives. that was evidenced as i spoke to guests coming down main street. there will always be demand for disney. i think with our reservation systems here in florida, we have seen impressive demand in the short-term and we see that

coming into 2021 as well. i think each individual guest will be different in terms of when they interpret when they will be ready to visit. what i can tell you is we will be here, ready and operating in a welcome manner. emily: you're reworking flash mountain -- splash mountain to feature disney's first black princess. i am wondering what you are doing, when a lot of it depends on the studios creating the next hit movie. the next anna and elsa who look different. josh: diversity is incredibly important to this company. if you walk the streets in magic kingdom and we see the attractions and stories, it is an incredibly inclusive environment. it is something we will continue to push on. splash mountain is something we have been working on for years. i'm really proud of the fact we can introduce her to the world on this famous attraction. even when it started in 1955, walt talked about the fact this

will never be done. the park will continue to evolve. i'm proud of what we are doing here and what splash mountain represents. d'amaro, chair of disney parks, experiences and products. meantime, today, hong kong disney was notified by the government they would have to close starting july 15. this as cases of covid-19 spike in hong kong, in particular. a reporter who has been following all of this. we got a statement from disney saying as required by the government and health authorities, in line with prevention efforts taking place across hong kong, hong kong disneyland park will temporarily close. we are in contact with health authorities and the government about the situation." how big of a setback is this as disney was pushing forward with this opening in florida?

they've got epcot and hollywood studios in disney paris opening this week. --yeah emily: is it a setback? at as, the closure comes little bit of a tricky time. if you kind of look at it, they decided the smooth reopening in florida so this is a little bit of an awkward situation if you will. from a financial standpoint, it is not really a huge setback. if you look at the hong kong properties, one of the smaller parks in the whole disney theme park portfolio. to have about 600 million 7 million visitors. financially, not really a big deal. probably about $60 million in operating profits per month. the closer from a financial standpoint will not mean much. you have to remember disney only has partial ownership of both of its, shanghai and hong kong

theme parks. the reopening's both in shanghai and hong kong were kind of supposed to serve as the blueprint for the broader business to reopen. that is a setback. it is more the uncertainty for the parks business in general but i don't think it is a really big deal from an operating profits standpoint. emily: right. we will be watching to see what happens with the other parks. meantime, on the streaming side, disney plus had a huge gain in weekly subscribers on the back of "hamilton" debuting on the platform. how big a deal is this? geetha: it's actually a huge deal. this, as you know, this was a movie that was supposed to be released in theaters. so, they obviously decided, sensing this huge streaming opportunity with the director consumer business, they decided

to speed things up and bring it as a director consumer play rather than bringing it to theaters. that just shows how adaptable the company is and it was really a bold move by the management team. obviously, there have been some big app reported by third-party sources. bump in the disney plus subscriber numbers. i think the timing is really perfect. obviously, you have a huge base of people sitting at home. also kind of satisfied that hunger for new content. viewers are craving something new. from a timing standpoint, this is a cultural phenomenon. this is a message about diversity and antiracism so really topical. emily: right. certainly a big part of the disney story we will continue to follow. geetha, thank you so much for joining us. coming up, we will be talking to

the ceo of walmart. he joins david rubenstein next. on the and its big bet future of e-commerce. ♪

emily: walmart is working on whether in the covid-19 storm. hiring thousands of workers to meet surging consumer demand. earlier, walmart ceo doug mcmillon spoke with david rubenstein. take a listen to what he had to say. doug: we sell food and consumables and things people really needed during this crisis. our form is retail as deemed as essential. in the u.s. and in countries around the world. we have stayed open mostly throughout the crisis selling food, consumables and other things people need in stores and also online. you are right. you are alluding to the fact e-commerce has grown during this time and that has certainly been

the case with us. david: for everybody who is watching, how many total stores does walmart have? doug: around the world, 11,484. in the u.s., we have around 4700 stores that are walmart supercenter and neighborhood markets. we have another 600 sam clubs in the u.s.. emily: you have 2.4 million associates. doug: correct. david: your revenue was about $500 billion a year? doug: a little more. david: ok. do you expect to hold onto all these employees or do you think there will be a decline in sales after we get past covid-19? doug: what happened is as we started into this covid period, we created a leave policy for our associates who needed to stay home. if they had a family member to take care of or have some concern, we created this three-tiered leave policy. hundreds of thousands of our associates that needed to more

wanted to stay home have. so, we had a need for a lot of people to run the stores, serve as it relates to e-commerce and also respond to the demand that has gone up. about 60% of the 400,000 we have hired since the middle of the march are temporary in nature. we will retain a big portion of them but not all of them. david: their biggest competitor in the online business is obviously amazon, correct? doug: it is. in the u.s. david: what have you learned from amazon? did you teach you certain things inadvertently that makes your online business better or have you done some things they wish they had done? doug: whether, it is them or others, i think the goal is to learn from them and apply what should be applied. the customer has spoken. they want convenience, assortment and timely delivery. we are trying to do the same thing they are trying to do. in other respects, we have a set

of aspects that are unique to walmart. maybe one of the big differences as it relates to a digital view is how we are using our stores. the fact you can go on your app and purchase items or reorder items you bought before and swing by the store later that day and open up the trunk and every to -- and somebody will drop it in for you is superefficient and americans really like that service. there are unique aspects to our strategy and i think the stores underpin most of those. david: it has been rumored you primennounce some type of equivalent of walmart, walmart plus i believe. is that going to be enough sometime soon or you cannot say? doug: we have a membership we have been testing called delivery unlimited. we willulation is yo launch a membership called walmart plus. futuremon theme in the

is this grocery consumables delivery from the supercenters which could include back-to-school items or even apparel items done in a really fast manner as part of a membership program is something we think will be compelling for people. based on the success we've had with this pilot of delivery unlimited, we've got confidence people do want a mom o membershp from us. there is a delivery cost. taking an order and delivering in order to someone's home. what the membership is fundamentally in the beginning is an ability to buy in bulk those deliveries at a discount in the form of an annual fee. that is the form we have taken. mcmillonlmart ceo doug with david rubenstein. that does it for this edition of bloomberg technology. i'm emily chang in san francisco. bloomberg daybreak australia starts now. this is bloomberg. ♪

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to stream the entertainment you love. xfinity. the future of awesome. ♪ shery: good evening from bloomberg's world headquarters. we are counting down to asia's major markets open. i'm shery ahn in new york. haidi: welcome to daybreak australia. here are your top stories this hour. highestcks go to the since coronavirus worries before pulling back up the close. investors think new infections will see plans to reboot the economy. global infections top 13