emerging markets for the reason you mentioned. it weaker dollar tends to help valuations are attractive. so you have the potential for emerging markets to perform. getting the closing bell. it looked like it was going to be a down day. the nasdaq really came alive here. closing out at about 1.2%. i a lot of this on the back of apple, alphabet, facebook. move, oncepple's again amazing that we are at a record high. added in justlion one day alone. taylor: big tech, it is a gift that keeps on giving.

we spend our days in san francisco, i think we brought with us to new york. had two remember, we ipos. rock-tenn company finishing the company finishing the day up 10%. as earnings out of our on -- out which surprised some folks. inventory issues giving them pricing power. shares up. you better buy that car. caroline: if only the dmv would open, then maybe i could. ed, does it feel wobbly at the moment? there is a great story on the verge about robinhood trade happening worldwide. what does this feel like necessary given the sheer

liquidity in the market? storybinhood is an easy to focus on, and for good reason. we have a composite of about 30 indicators and it is actually in the neutral zone. there is pessimism out there and i think a lot of it has to do with the perceived disconnect. when you throw in secondary ipos, they top of are at a record high over the last three months. that is a lot of supply to come on the market. caroline: all eyes on capitol hill for that fiscal stimulus bill to come. want to thank ed clissold. "what'd you miss?" is next. this is bloomberg. ♪

♪ caroline: from bloomberg world headquarters in new york, i am caroline hyde. romaine: we have been waiting on uber earnings. the headline number, q2 growth coming in at $10.2 billion. as far as their actual adjusted ebit. loss, relatively in-line. their mobility booking did fall 75% year-over-year, to $305

billion. caroline: slump in terms of ridesharing. thanelivery is up more 100%. this acquisition of postmates, but it is not enough to offset the sheer scale of the loss they see in bookings. under sohis company is much pressure to turn a profit. coming out and saying they are confident of achieving that before the end of 2021. we're getting more insights from stern school of business professor. thank you so much for joining us. to be here. >> we are not giving you a ton of time to digest these earning. but, starting to see revenue decline given the drop in

travel. what could be a shift toward the freight business, is that something you see underway? >> i think that is definitely a big part of what to expect the next couple of years. isyou think about it, there hatred in dollars spent in restaurants in america every year. be dyingof that is to in. i suspect that a significant percent of it will shift to online. doordash will be competing so i can see them putting a ton of energy into that growth. i expect that the right business will recover in the long run people are going to be hesitant

to take mass transit as the economy gets back to normal and will shift to things like scooters, bikes, taking uber. off rightt write business just -- the ride business just yet. caroline: the acquisition in terms of postmates. arun: absolutely. they went after grubhub, they cannot get them. they delivery platform space is ripe for consolidation. doordash, grubhub, a host of smaller players. now that the pandemics and lockdown have really upped the ante. half of restaurants will go out of business this year in the

united states. a lot of them will come back, but as cloud kitchens, or online only. we will see a massive push to online delivery. i would not be surprised if doordash goes after some competitors as well and we end up with maybe two, three giant players controlling this market. romaine: i know you have done some research on this business and the food delivery business overall. during the pandemic, when a lot more people are relying on that. wheree also seen a shift some restaurants have decided it is better to do their own delivery or something outside of the ecosystem. what is the case to be made for some of these restaurants tethering their fortune to something like uber eats? ben: i think it is going to

a competitive necessity in the long run. toe restaurants, they want save the commission instead of our own operation. channell be the primary through which you reach your customer, specifically as your physical presence becomes less and less important. the detail you mentioned certainly highlighted just how dramatic the shift has been during lockdown as more and more restaurants join the platform and there was a more than doubling of all of the losses we saw in april and may. prognosis ise definitely -- restaurants might say, let me try to make it on my own, but customers will not want

forave 100 different apps 100 different restaurants. this is really a story like the amazon story where eventually, there will be consolidation and ownership by one or two dominant platforms. of somewhat do you make of the headwinds? in the u.k., they announced that they bought a software maker to fill some of the gaps within that u.k. market. overcoming some of these challenges? side ise labor certainly challenging over the next few years. i think uber, lift, doordash have matured significantly in the last few years and their attitude toward what kind of

solution can we come up with to provide a safety net. ave years ago, it was sort of hands-off approach. today, uber and lyft are spearheading a ballot initiative in california. is pretty substantial funding for benefits, and the driver can spend on whatever benefits they want. we are heading towards an economy where more and more people are not going to be full-time employees. in some ways, the lockdown as wiped the slate clean. as they reconstitute their workforces, more of the labor will be not employed but some other relationship. so now is the time to be building a new social safety net.

that putting some pressure on uber and lyft in the next couple of years, i am confident it poses no existential threat to the business model in the long run. caroline: i am interested in the aim to achieve profitability before the end of 2021. the way in which they seem to be outlining that they have improved this is by cost cuts. ,roducing corporate spend platform r&d costs have been cut. is that the right way to get into profitability? arun: honestly, i don't think so. you and i have talked about this before. i think that over should be much more aggressive. the are still in sort of

value creation and capture phase of the ridesharing business and the food delivery business. what they should be doing is aggressively spending on building market share, convincing their investors that it is ok to lose money. in some way doing and amazon where they show they could be profitable if they scaled back certain things. but the real emphasis is on market share, growth, converting more and more people to food delivery. so i am not a big fan on the emphasis of either rnd cost-cutting or marketing cost-cutting to try and meet these wall street expectations of turning a profit by a certain deadline. regards to some of

those regulatory issues we had talked about over the previous few quarters here, that seems to have died down a little bit. probably an outgrowth of what is going to with the pandemic. is that something over and lyft need to be worried about? i think that is more of a challenge in europe than the united states. i think a lot of the taxi business in many cities has probably been close to wiped out by the lockdown. walking around new york city these days, it is rare to see a yellow cab. cities will realize, if they want an alternative to mass transit, that really uber and lyft are the only game in town. so i think the regulatory stance will probably soften on the

limousine front. as we are talking about this, i am struck by how wild spending from the past by travis is coming back to actually benefit uber. he was a kid spending on flying cars, delivery, trucking, helicopters, and so on. back andreally pulled brought some discipline. the fact that travis was out there, getting unlimited bankroll, has actually paid off over. 70% is from uber eats. ,our years ago, someone said why are they diversifying? i think it underscores the fact that diversification is going to be seen as a really important part of resilience in the years to come. taylor: on the flipside, the

core competency, a company which is less diversified. shares of lyft down about 3%. let me follow up with you on where you see this company on a global basis. grab.theast asia, i use uber got kicked out of china -- or couldn't be successful there. aboutare you thinking these companies in a competitive business internationally? has: i think that lyft always tried to focus exclusively on the united states. in what ixit china saw as a big win for them because they would have probably been driven out by the other company in a couple of years anyway.

dd willclear how much try to capture the western markets given the current geopolitical situation. south america is a growth market companies. these i certainly see a lot of growth there. asia, not so much. maybe a little bit in india, and southeast asia. but the united states remains a very important market. market inan untapped the ride-hailer and food delivery space. there is $2 trillion spent every year on buying and maintaining u.s. used cars. there is almost a trillion dollars spent on restaurants. these companies are really only scratching the surface of the total growth bookings they can have in the long run, just as

the united states. so i see the potential for at least 10 times growth in the united states alone for these companies over the next few years. so i would not worry too much if uber does not sort of expand aggressively globally so long as they are not chasing earnings based on some target or trying to reach it by the end of 2020 or 2021. but they are doing what they should be doing, focused on capturing as much of the food delivery and right hail business as they can. romaine: more revenue generated than transporting people. that is and why you started ernool of -- that is nyu st school of business professor at the author of that gradebook "the sharing economy."

coming up, we will talk about the ipo market booming. software fintech leaving the way. presidentior vice coming up shortly. this is bloomberg. ♪

earningsseveral crossing the wire. out,urse, uber, that was just recapping those earnings. estimate was for $10.4 billion. coming in a little bit light. it has actually generated more revenue from delivering food than transporting people. there are a lot of concerns about the transportation business, how that will hold up,

rebound, and when. amc, you know it, the cinema chain, second quarter worseed loss of $5.44, than had been expected. revenue came in at $18.9 million. it issued -- it is so shocking to see. second quarter consolidated attendance. versus 97 million year on year. that says it all. taylor: another company, t-mobile. approval for the takeover of sprint. second quarter adjusted revenue right in line with expectations. does look like an approved. da coming in better than expected. again, given the approval of that takeover of sprint. romaine: keep an eye on what is

going on in the housing market. zillow, the beneficiary of that. up about 9% in after-hours trading. another thing that has been hot, the ipo market. last month, july, one of the busiest months in decades for the nasdaq. sales byhare special-purpose acquisition companies are becoming the biggest part of the ipo universe. joining us, jeff thomas. let's start off with the appetite hereby investors for these new listings, these ipo's. ?hat do you think explains that jeff: investors are not really sure where to put their cash right now. when you get these new issues coming to market, it is really an opportunity for some growth and to see a return on your investment.

basically a call option on a future business combination where investors, if they don't like the deal, can actually pull their money out. seeline: how much do you new ways of coming to market overtaking the common ipo. we have been talking about direct listings, talking about spac's. will we start to see the shares differentiate? jeff: we have seen a lot of opportunities, whether it is direct listings, spac's. you have over $20 billion in capital through spac's. you still see the vast majority of companies using the traditional ipo path where they use an underwriter to help them raise cash. companies can sort of triple track now. it used to be ipo, m&a, now you

add in spac's into the mix. taylor: foreign companies choosing not to list on the nasdaq or do any dualistic, what have companies told you about what they are thinking about trade tensions? jeff: we have been working very close with the sec, the administration. the u.s. capital markets are the broadest, deepest in the world. haveits u.s. investors to access to a broad range of capabilities. seen lots of have other markets picking up share and getting more domestic listings. romaine: with regards to the regulatory environment, some of the changes made earlier this year by the sec, how is the nasdaq responding to that? are these potential changes going to be favorable?

issues we havee been working on since 2014 is more regulation around proxy advisory firms. that was the number one issue that are listing companies came and talked to us about. we had multiple trips to the hill. sec a lot about it. we are thrilled to see the sec make moves on such an important issue for our listing companies. caroline: jeff thomas, thank you. this is bloomberg. ♪

romaine: quite if you earnings, one of them zillow, shares up about 11%. this is the home listing platform. q2 revenue coming in well above estimates. 20% jump year-over-year. we are apparently at the dawn of a great new shuffling. does speakhis really to the ongoing trends post covid of everyone wanting to get into

suburbs, out of cities. been talkingve about this for a while. the stocks have been spectacular here over the past few weeks. one of the bright spots here in the economy. labor market, while things did brighten up a little bit here early this morning when we got those jobless claims. there still over a million on a weekly basis. there are concerns about regaining some of those jobs may actually be slowing down. forget that payroll data on a monthly basis tomorrow. senior manager of economic research at schmidt futures, i would presume she would be all over this went it comes out at 8:30 in the morning. >> it is hard to come up with what we are expecting to see because the data has been really confusing in the lead up.

a lot of people are forecasting around a million jobs added. but there is high frequency data suggesting the number could be lower or negative. i think a lot of us are hoping the progress made over the past few months does not stall out. caroline: the u.s. is moving to tighten disclosures on requirements on china listings. we will get you more details on this. there is the ongoing tit-for-tat between the u.s. and china, moves being made to make it tougher. moving away from that, back to , i want toc story get an idea on where most support is needed. evictions,es about unemployment benefit. is important when

you have a crisis this big. keeping so many families going at this time. it is not just about the humanitarian need to keep them in going, keep their homes. it is really concerning at congress is not -- concerning that congress has not recapped those yet. extra 600 per week being spent or saved? >> i think a lot of it is being spent. evidence from j.p. morgan chase those who received

their benefit on time to spend it. that theree idea is are a certain amount of jobs that are just basically gone. people who are out of work, will have to find new industries to work in. they may not necessarily make the same wage levels. in your research any sort of major structural shift on what the market is going to look like on the others if this pandemic. >> there are a lot of questions about, if we are all switching willmote work, none of us go back to offices. people do want to go back to see people in person and engaging in this verse activities. that poses a big problem for labor market policymakers

because there are people who have jobs in the theater that they may not be able to do for a year. and bye people can back theater tickets, those jobs will be there again. caroline: is there hopes in terms of some sort of sustained flows,et these ebbs and we have weekly data showing some bright spots. 60 million still filing for unemployment claims. his is a vaccine that is really the -- is it a vaccine that is really the be-all and end-all? the publicu solve health crisis, the economic crisis will continue. romaine: martha, great to get your thoughts here. of course, we are all keeping an eye on the payroll data coming out tomorrow morning.

taylor, you have the first word news. taylor: special edition. in germany, the number of new coronavirus cases where the highest in more than three months. aboveinfections climbed 1000 for the first time since the middle of june. at the peak in march and april, germany was recording almost 7000 cases per day. new york is seeking to dissolve the national rifle association. saidtate attorney general the gun rights group has been engaging in massive fraud. >> for these years of fraud and misconduct, we are seeking an order to dissolve the nra in its entirety. taylor: the suit alleges that it may case one of

the largest legal threats the nra has faced since its founding. the rate of people in florida testing positive for coronavirus dropped to just above 8%, the lowest level since june. ohio governor mike dewine announced that he has tested positive for the virus and plans to quarantined at his home for the next two weeks. the republican governor was supposed to meet president trump at the airport today and was tested on protocol. have seen transmission of covid-19 among children. this comes after the president said that children are virtually immune from the virus. a video yesterday shared by an account linked to the president, in which he said that children "don't have a problem."

global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm taylor riggs. this is bloomberg. ♪

>> i believe that the injection of that kind of money, liquidity into the economy, is likely to have some long-term ramifications. the most likely is some picked up in inflation. that does not mean it is a mistake. the mere fact that you do something that has possible negative consequences does not mean it is a mistake. if they had not done the things they did, we would be talking

about a much more serious economic event and we might even be using the words global depression. >> what we are talking about at the moment is largely a macro issue. let's try to focus for the moment if we could on the credit market. can the government ever put the genie back in the bottle, or is there now something of an irreversible backstop? >> that is the question. >> what is the answer? >> i don't know what they are going to do next time. obviously, this time, they are providing liquidity for all kinds of companies. some of them are zombie. we use that term in the markets to define a company where the cash flow is less than the debt service requirements. they have to borrow money to service their debts.

that company is not doing well. if it is going to do that for long, it probably should go out of business. liquidity is keeping them alive. say, the fedng we can provide liquidity but it can't provide solvency. keeping can and are companies -- >> for the time being, these companies would not have survived were it not for fed and treasury action? >> many of them, yes. a great example is the airlines. the airlines have tremendous ongoing costs every day, whether they are flying or not. to ground the planes and have them go through a long period when they are not flying, many of them would have gone under. them innt grants cap business.

>> do you think that we have crossed the line into state capitalism? >> well, state capitalism. we have not crossed the line into government ownership of businesses. but clearly, there is an unwillingness to let companies go. unwillingness to let the chips fall anywhere. period since march has been a period where the government has been providing revenues and incomes to people and businesses that they otherwise would not have had. without those, it would have been very serious consequences. necessaryre is a darwinistic quality to free markets that has been staved off for the time being.

every credit investor is wrestling with this because you have to make decisions accordingly about how you will generate a return. at what point does that need to start happening? term creative destruction, which is to say that companies that are unsuccessful should perish. waste societal resources keeping unsuccessful companies in business, than there are other parts of the population or economy we can do as much for. romaine: credit manager howard marks of oaktree capital. uber earnings, they were just out. a decade year had of revenue growth. sales falling in the second quarter. another interesting wrinkle in

the earnings, they actually made more money for the first time delivering food than people. caroline: ride-hailing business has become very much a food buying business. let's turn our attention to -- to a companynings, that is helping make such driverless cars a reality. stimulation technology aiding engineers building tomorrow's products. his earnings and the tech. the ceo joins us. talk to us about simulation within the auto sphere, because this is a real area of growth for you. how soon is that all going to become a reality do you think? >> by way of introduction, we are a company in the engineering simulation software space.

we work with companies around the world to help them build the most innovative products. ships,ces, rocket everything in between. designtomers are able to products completely in the digital domain without the need for expensive prototyping or experimentation. and bottom-line savings. if you take the autonomous vehicle industry, the industry leaders will tell you that it will take 8 billion miles of road testing. that just simply cannot be done through traditional driving mechanisms. it can only be done through simulation. romaine: give us a sense of how that sort of pairs with some of the real world experience you

need. with something like autonomous driving or even rockets, there is so many i guess real-world variables that can come out of the blue that i think would be a little bit harder to replicate with software. ajei: the way you should think about our technology, we approach it from the fundamentals of physics. we look at the radar camera, all of the sensors. we give a complete analysis of how those sensors will behave. we can help our customers evaluate that those eyes and ears were correctly. ofis not just a matter ensuring that the eyes and ears work right, it is making sure cars are subject to a number of different scenarios against what would be reality. let me give you an example. let's say you are driving down a

piece of highway. what we can do is we can replicate that environment and create thousands of instances of that same mile with different lighting conditions. the sun is up, the sun is down. there is different traffic. there is glare. there may be snow, there may be eyes. that helps our customers make sure that their products work well. taylor: it is so interesting that, in an economic downturn, you start to see spending from customers pullback. i'm curious, what are some of your customers tell you about why they are increasing some of their orders and further pull -- further pushing into this? q2, we had ang our record transaction of the

largest in our history, with the automotive segment, a $100 million deal. the reason we are in a position to close transactions of this nature, is because our technology is as valuable for our customers. they recognize that using our technology, they are in a position to develop these next-generation products faster than before and at lower cost than ever before. that is one of the reasons why the market is very strong. we believe we have the best product in the marketplace. you put that together, the ability to address customer needs, that the multiyear customer needs, with great , to support our customer even as they are working from home. caroline: of course, the bigger clients. the smaller clients are having

to use investment in their business. how are you seeing covid change the landscape of those types of product is and projects? ajei: we are certainly seeing weakness or softness in the smb segment of the market. but, as we look at our customer base, what i am struck by is the number of startup companies that we have. we have over 750 companies, companies that are looking at very innovative uses of technology. when i think about our own business, we are anchored on a relationshipsomer with some of the largest and most successful companies around the world. regards to your

own growth in the company, is there any temptation to maybe look a little bit beyond your own organic growth? ajei: we have been a very successful acquirer. acquisitions are not a strategy themselves. acquisitions are in support of a strategy. the technology, we sort of think about it as a superpower. it helps to make the average engineer into a super engineer. our technology, we think, can be applicable in a number of areas. so we are always looking at acquisitions that can broaden our portfolio. we are always looking for incremental opportunities to be able to grow our company both of course organically. romaine: great to have you on. really a fascinating company

here. opal, the ceo of ansys. uber earnings of course the big one of the day here. sales down 29% in the second quarter. the number of people using uber's platform, 44% shrink in the second quarter. , a segmentmc cinemas of the market that has been wreaked havoc on by covid. they said they can survive into next year. they are planning new deals with major studios in terms of bringing new homes direct to the homes. andor: used to have a third fourth wireless provider. they merged. you now have a number two provider. t-mobile taking over at&t. 98 million customers after that merger was approved.

about 1.5%.ga down there is a programming note. i believe so. mbergr: tune into "bloo technology." you will hear from the t-mobile ceo. this is bloomberg. ♪

let's talk about today's bloomberg equality summit. several business leaders discussed how their companies are making a change by increasing diversity and inclusion within their businesses. the daily protest has really solidified in people's minds that -- >> real change is when we change the system and the structures. each year, we serve over 4000

young people, overwhelmingly -- >> all of us have opened our eyes that we need to make a change. and we are. >> the world is changing. it needs to accelerate. theseimination of structural, racial imbalances and injustice. caroline: some of the key business leaders speaking earlier at the bloomberg equality summit. you can watch those on bloomberg radio and bloomberg.com. taylor: tons of earnings coming in. i made a joke earlier that adjusted ebitda positive by the end of 21. that isn't actually profitability. profitability is net income. romaine: profitability doesn't matter anymore. these: are we throwing papers away?

romaine: we recycle. caroline: and you don't use a pencil. it is computerized. taylor: "bloomberg technology" is next. romaine: this is bloomberg. ♪ businesses are starting to bounce back.

but what if you could do better than that? like adapt. discover. deliver. in new ways. to new customers. what if you could come back stronger? faster. better. at comcast business, we want to help you not just bounce back.

but bounce forward. that's why we're helping you stay ahead and adapt with a network you can count on, 24/7 support and flexible solutions that work wherever you are. call or go online today. ♪ emily: markets rise. investors optimistic about a new round of stimulus. lawmakers starting talks at this hour about what the next relief package will look like. this amidst 1.2 million new jobless claims this week. in tech, apple leading the charge, hitting another all-time record. uber out with earnings showing th