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 the company is making more money

delivering food than transporting passengers for the first time ever. slightlyes are down after hours. i want to bring it abigail doolittle. i want to start with uber, engagement down 44%. that is the measure of how many passengers they are transporting. what they made in food delivery did not make up for what they lost. abigail: it is an interesting quarter because they beat the estimates but revenues fell for the first time ever. as you were just mentioning, their primary business of ridesharing just not really there. i see get all the time in new york, there are much fewer driven cars out there. they demand simply is not there. who knows, maybe at least here we will see a little bit of a pickup.

but it's interesting to see that food did better than ridesharing. it shows you that these companies are trying to adapt to the pandemic. t-mobile put up a big quarter. they beat estimates. they added more than one million subscribers. you were mentioning apple. nasdaq simplyy keeps climbing. up seven days in a row now. record high after record high. it will be interesting to see of course what tomorrow brings. dayst make it to eight especially after that all-important jobs report. emily: we are also looking at t-mobile earnings. t-mobile now has the number two spot in mobile carriers, which is huge. shares of spiking after hours. impressive was an

quarter they put up. than one million subscribers, which is really very impressive. had a few other earnings reports after the bell, including the online trip advisors. not surprisingly, the stocks are higher. they have had such a tough time this year. booking at this point is flat. the estimates have been lowered so much. the expectation, so low. it is a little bit less bad, especially some of the commentary coming out saying that the trends are perhaps improving. zillow up 9%. that is one of the silver linings of the pandemic. people are embracing online shopping. on the year, we see this trend. online travel agents down on the

gear. nasdaq 100 up solidly. zillow up 56%. they have this and have-nots -- the haves and have-nots. it is clear that investors and traders are rewarding companies that can adapt quickly. emily: thanks so much. we will be back checking in with you tomorrow when we see the impact of that jobs report. meantime, i want to get back to uber. the pandemic wreaking havoc on uber's operation. revenue declining to $2.2 billion. delivery overtaking ridesharing for the first time in the company's history. highlights,re the or the low lights that you would pull out here today? >> the major highlight is that while round sharing -- while

ridesharing is down year-over-year, it is starting to recover. in july, a decline of about 50%, compared to about 75% for all of q2. there is improvement sporadically. the real bright spot is ultimately the eats or delivery business, which grew in this quarter as people couldn't go to restaurants and were looking to feed themselves and support local businesses. emily: that said, given the uncertain the ahead, companies pushing out returns until early next year or longer, the demand for ridesharing is not going to come back anytime soon. and is food delivery really going to make up for that? eric: food delivery cannot 100% makeup for the loss in rides.

but the two businesses work against each other. when lockdowns are imposed, eats does a little bit better. and the ride to do pretty horribly. but we are seeing recovery in many of their main markets, and europe, and in some markets in the u.s.. as we look at food delivery, there is a huge consumer behavior story. pre-pandemic, food delivery was really a luxury good for people who had quite frankly too much money to spend. now, options have really increased across different geographies including in the suburbs. for you look at the picture 2021, the shift to food delivery through these apps has really accelerated. that is a good sign for them moving forward into the future. emily: what do you see for ridesharing longer-term?

there is going to be remaining concerns about being in close quarters with a complete stranger. you have positive trends in private car ownership, people wanting to buy cars because then they have their own private methods of transportation. even scooters are doing other than we thought because it is open air. it seems that ridesharing than is last on the list in terms of choices. eric: i would really consider public transportation to be last on the list and that is how most people in large cities get to work on a day-to-day basis. when we look at what has been happening with regards to work from home policies, people will not be able to take a crowded subway during rush hour. they may be able to take -- they may be willing to take a rideshare. when you look forward to

2021-2022, we have seen a shifts, because it is likely they will have fewer cars per household. over time, that is a net and if benefitver and -- net for uber and ridesharing in general. emily: what can over due in the meantime? they are building up the food delivery business. they are in the process of acquiring postmates. what else can they do to essentially diversify? online grocery is a massive opportunity. players, a few major instacart and amazon. when you look at e-commerce penetration of total grocery retail, it is next to nothing. there is a lot of room for them

to grow, especially as the pandemic has changed behaviors and made online pandemic delivery viable for people for the first time. if you noticed in their financial statements to be changed what was called the eats segment to the delivery segment. i would expect that online grocery is a really interesting growth area for them, especially as it will allow them to partner with some major regional chains. the unitedrocery in states is highly regional. people are loyal to their local chain. theser can partner with local companies, they do have an edge over more national retailers. emily: interesting. always good to have your commentary here on the show.

the booming gaming industry is making a big comeback among the pandemic and the changes in transportation. we will talk to one ceo who is navigating that. this is bloomberg. ♪

covid-19 has had a major

impact on businesses around the world. but, some second ears continuing to gain -- some sectors continuing to gain. the gaming industry has seen a sharp rise in customers. in particular, mobile gaming. that includes zynga, just reporting earnings yesterday, beating expectations across the board. ever quarterly revenue and bookings. best operating cash flow in eight years. is that all driven by the pandemic? >> it certainly had a major impact. if you look at our growth rate before everyone started sheltering in place, we were running at a pretty good clip. as people took measures to protect themselves and shelter at home, when you are social distancing and can't be with someone, the next best thing to do is to play a game with them.

it was really amazing to see the socialization happening in games. we saw some products that saw 400% increase in chatting, gifting, and sharing. games are starting to become their own social networks. our teams have all transitioned to a work from home environment. fortunately, we have not missed a beat. the teams have really kept up with the pace required. emily: what does this all mean for your outlook for the coming quarter and the rest of the year , given that it looks like lockdowns will continue. i am still doing the show from home. is that more good times for you? the issue for us, as we look into the second half, there is the potential for more shelter-in-place orders. what is positive for our company

is we make free to play mobile games, which are really resilient in tough times. the work that we do, the fact that we get to entertain people while times are tough is just our small part in trying to make things better. enough, wefident started the year with a guide of around $1.75 billion. we are feeling good about our trends. my kids are doing some more gaming. they are still quite young. times, thatof the is what they are enjoying. what is some advice for parents about how we can make this time productive? we want the games to be more than entertaining. we want them to be learning and their brains to be developing. i wonder how games can be part of that and how we prevent things like addiction from

happening. frank: moderation is the key. at home with my three teenagers, it is kind of ironic when their dad tells them to stop playing games, and that is my living what is great about now is there is so many multiplayer games and games that are very social, it is a great way for kids to hang out, whether it is in roadblocks, "words with friends". the ability of them to play together, communicate, keep each other up-to-date, and frankly to have some fun, and moderation, that can be a really help will that's really healthy thing. emily: google and apple left and working to increase their positions in the industry. i wonder your thoughts on that given the antitrust scrutiny? frank: android and apple have

created an amazing platform reaching 2.5 billion customers worldwide. they handle issues like billing and other things. at the same time, they are starting to build out some of their services. while it is sometimes disconcerting to see your platform partner create a game to play against. on bringingcus in the best games to bear for our players. and competition keeps you sharp. it keeps more choice available for players. inwork with apple and google a very productive way. it is a collaborative relationship. things that are working and not working. we try to improve the overall ecosystem. emily: what about other platforms like tictoc for expansion -- like tiktok for

expansion? didk: this quarter, we extend our partnership with snap hook. firstually launched our amazon alexa game, called letter pump. it is a purely verbal game that you can play at home with alexa. we are experiencing -- we are experimenting on other platforms. the gaming business, it is all about new platforms and reaching new players. we are excited for things like new ar platforms. position gets into a where it understands its future better, perhaps they can be a gaming platform as well. emily: you also just acquired a turkish gaming company and the ultra-casual games space. and are ultra-casual games why do you want to expand there?

sounds like that might be more my speed. they basically are universal ideas that appealed to the mass market. it is like untying a knot or do a puzzle. they are very accessible to people. they don't last for very long. you play them in short bursts. what they do is generate massive audiences. company.istanbul-based it has produced the number one and number two hyper casual games on the app store. is 63total audience base million. when we see what they build and how it fits with what we build, there is a really nice connection. they can acquire users cheaply for us. we can expose them to other

games. as we look at this next chapter of growth for our company and the mobile industry. audience, scale, and a scalable network will be increasingly important. emily: thank you so much for stopping by. microsoft could looking to buy more than just tiktok's u.s. operations? perhaps all of the company instead? this is bloomberg. ♪

microsoft is reportedly ,hasing a deal to buy tiktok

all of its global operations, not just operations in the united states. microsoft is also said to have discussed an agreement to allow them to have a whole year to separate tiktok from its parent company bytedance. kurt wagner, what is your take on this report? >> we spoke with sources this morning and actually got some pushback. what we were told is that the two sides are still discussing what microsoft had announced over the weekend. that the company is looking to buy the operations in the u.s. including canada, new zealand. i think it would make a lot of sense for microsoft to be interested in tiktok globally. emily: sounds like we lost kurt wagner.

talking about microsoft's continued talks with tiktok. the financial times has reported that microsoft is considering buying all of tiktok's operations. they are getting some pushback. meantime, we will go to a conversation we had earlier today on bloomberg television with the ceo of sonos. diversifying our supply chain to talk about the tariff issues. we have had a plan for a long time to diversify. i think the good news on that front is that we have actually been given an exemption. that is something that will flow to our bottom line, which is great news. impactedobviously was by the pandemic. they shut down some of the operations there, which has

push into malaysia. we will be there up and running fully by mid 2021. they: talk to us about , whatever you want to call it, with google. are you confident that you can start to get royalties from google? >> we are very confident. our secondwe signed agreement with a competitor that is now paying us a royalty. we are 2-2 on that front. we are very confident and very is righthat that trial around the corner. we are trying to stand up for all small, innovative entrepreneurial companies that exist in the face of companies trying to infringe on

others intellectual property. we think it is the right thing to do for our people from all of us, and all of our investors. romaine: you guys were pretty early to this home connected speaker market. i complement you on the product placement over your shoulder there. is this always going to be just a home product? is there plans to do things beyond the home? patrick: you have seen that we have expanded a partnership with ikea. we have collaborated with them on new products. we recently brought out the move that you see here, which does allow you to go outside. it is portable. you can imagine, we see opportunity. emily: patrick spencer, the ceo of sonos.

coming up, more of "bloomberg technology." facebook finally taking down a post by president trump. we will tell you why the social network intervened. this is bloomberg. ♪

emily: welcome back. i'm emily chang. both twitter and facebook blocked accounts related to president trump after they shared a video of a mock news clip in which the president claimed that children are almost immune to covid-19. that is false. children are not immune. this is the first time facebook has taken a direct stand on one of the presidents posts. i want to bring in sarah frier, who covers facebook. tell us what happened here. tried tocebook has

draw a line in the sand when it comes to coronavirus info. we have seen a lot of back-and-forth with facebook whether trump violates other policies, like inciting violence or misinformation about the vote . facebook wasase, able to take a stand. what this is a reminder of is that these tech withnies, if they align what the world health organization and the cdc and epidemiologists are saying about say thatus, they can misinformation about it contributes to world harm and they can take it down, where as if they were to take a similar action on a post with anything to do with politics, they could be accused of bias. this, an response to member of the trump campaign

tweeted, "silicon valley is biased against the president and only enforces the rules in one direction," despite the fact that facebook has actually been more lenient on the president's posts than other tech platforms. talk to us about how this fits into the broader facebook narrative. a big controversy has been facebook not taking a stand on political speech, not taking a stand on political advertising. do you sense that any of that is changed -- has changed? sarah: he is saying that because he knows that's exactly the kind of thing that facebook fears. they don't want the republicans to call them out as biased. so many of their policies are tailored around trying to protect the company from that risk, because trump is in a position where he could take regulatory action against facebook at any time. we have seen that right now with

tiktok. if there is a platform he does not like, he can bring down the hammer. these claims of bias, although they have no basis in fact, continue to keep facebook presidentnot just the , but a lot of other republican more extreme news organizations like breitbart. just a that this is constant dance they have where they are trying to make sure that they don't decrease their risk of regulatory retaliation. emily: also today, facebook banning advertising from a pro trump super pac. no word on how long the band will last. what do you make of that? sarah: i think they are trying to show that they are going to take aim at things that are either coordinated in authentic behavior or coronavirus disinformation -- inauthentic

behavior or coronavirus disinformation. they consistently say to the media, we are banning things based on their behavior, not for their political leaning, not for who they are connected to. they are going to try their best to reframe this decision that has nothing to do with trump and everything to do with these entities doing a violation on the platform. emily: meantime, facebook has also announced today that they removed hundreds of accounts authentic behavior, some of that politically which goes behavior, back to the heart of the original problem in 2016. clearly this is still happening. does facebook have it under control? entities, even

domestic, have learned from russia's tactics in 2017. all you have to do is establish some level of trust in a community, and you can start to see that community information in whatever direction you want, or you could stir chaos. i was on the call with facebook today, talking about this removal that -- theyompany is saying that keep coming back and a lot of linked toetworks are networks that they took down previously and are trying to check whether they have resurfaced. certainly they have, and a lot of times it is just a matter of finding that new strategy, seeing what's ahead. but i think it is going to be quite difficult, because when it comes to domestic information, arerisk that bias you

talking about, that perception of illegitimacy on the platform if you deal with something that is opinion. i think they have not figured it out, and they are going to have to keep changing their tactics to address not just what happened in 2016, but what is new this november in 2020. we may not have seen the extent to which the problem has gotten out of hand yet. emily: bloomberg's sarah frier. less than three months to the election, something we will continue to report on. thank you. now back to my interview with bill gates, the cofounder of microsoft. we talked about his outlook on the pandemic, the hundreds of millions of dollars the gates foundation is putting into vaccine development, where he takes the most promising vaccines are. he also talked about the unintended consequences of the pandemic, including increasing

inequality. i asked him, how can we continue to narrow the wealth gap? is he open to a return to calls for a wealth tax? take a listen to what he had to say. >> we can have a more progressive tax system without killing the wonderful risk-taking entrepreneurialism in this country. we can't have tax systems that go too far, but we are not at that limit, particularly for capitalist gains type income. yes, governments, if they realize that money is not free, which macroeconomic conditions are confusing to some people about that, at least temporarily, we will need taxes to make up for the resources, because this pandemic, even just within the country, whether it is low income families, minority families, kids in the inner city, it sadly has exacerbated

almost all the inequality in the society. if you are in a suburban school or private school, the online thing is actually not doing all that badly, whereas if you are a young kid in the inner-city, it is not accessible. emily: i am not sure what's more terrifying, schools reopening or schools not reopening. i am in a state where my schools are not reopening. should schools reopen now, and if they don't, is it a euros lost learning -- year of lost learning? bill: we ought to be talking about age distinctions here. in places with a heavy epidemic, high school and college are not going to get organized enough, and the disease transmission rate is much higher as you get past 14 or 15. becausey is scrambling

it is being done so much at the last minute, where some people thought that cases would not be raging at this point and did not really help us think it through. work: this shift to remote and school is dramatically reshaping companies and families. i wonder how you see that having a lasting impact on society. great thingsre like telemedicine that people have been open to because they have kind of been forced into it. there are ways to reshape that for lower cost and higher quality. the notion of how many office workers need to go in the isice, how many hours, that going to get a really big re-think business by business. you might reduce the total commercial space needed pretty dramatically and take some pressure off of these inner-city

courts. we are not going to do as many business travel, i don't think. the rmd on those things is -- r and d on those things is going to make them way better. i have been talking to melinda about the impact this has had on families. i am curious how you navigating this time -- how you are navigating this time. there is this feeling in the home over whose job is more important, moms or dads. how do you answer that question? bill: i am very good at doing the dishes. i am not as good at preparing the food. hopefully some specialization sticks. our kids are older. we are lucky that we have gotten more time with them than we would under normal circumstances.

we have a lot of room in our house and a great internet connection. our case is atypically nice. i think it is great she is speaking out. if you are a single parent, if , thise in a small space is a hugely difficult thing, and it is even hard to measure how tough it has been for those -- what we are lucky to have. emily: more of my conversation with bill gates at bloomberg.com. coming up, we are going to bring you back that tiktok story. is microsoft considering buying all of tiktok's operations, not just the operations in the united states? we will have kurt wagner with us

next. ♪

emily: back to that financial times reported that tiktok, microsoft is pursuing not just tiktok u.s. operations, but looking for a deal to buy all of tiktok's global business. i want to bring back bluebird tax kurt wagner. your sources action -- bloomberg tech's at -- bloomberg kurt wagner. what have your sources told you? kurt: the two sides are in discussions to take the u.s. operations of tiktok in addition to the operations in australia,

canada, and new zealand. i can understand why there might be some interest in getting all of tiktok. it could be an easier acquisition so you are not breaking up the product in the way they would have to otherwise. but we are told the plan is still what microsoft announced over the weekend, and it is going to be limited to those four countries as of right now. emily: i still don't understand how they would break up the business and how that can make sense, since this is a global lab. is very confusing, and i don't know yet either. that is going to be one of the most challenging parts of getting a deal, figuring all that out. even looking at management, kevin mayer just joined to be the global ceo of tiktok from disney. he is also the coo of bytedance, the parent company. spins off its u.s.

business, what does kevin mayer do? does he go to microsoft or stay with bytedance and continue to run tiktok in other countries that are not the u.s.? there are a lot of confusing parts to this that are going to have to be figured out if the deal is going to get done in time. the president says it needs to be done by the middle of next month, september 15. emily: do you have any sense of whether there are any other interested suitors? i know some of the big tech companies are under antitrust scrutiny and it would not be a time to pursue a deal with tiktok, but is microsoft the only one in the running? kurt: we had a story a few days ago that there were other interested parties. what we have not been able to confirm is who those are. we have seen a few reports come out since then. apple quickly jumped into deny they were interested. there was one yesterday or the day before that verizon was a potential suitor.

you may recall verizon was being tossed around as a potential acquirer of twitter a couple years ago. there is a lot a big tech and telecom names mentioned, but no one has come out and said publicly that they are interested. i would be shocked if a property like tiktok goes on sale in such a public way and they are not fielding phone calls from a lot of people. it is very expensive, and most of the people who can afford it are those companies who were at that antitrust hearing a couple of days ago. it is going to be a limited group that can actually afford this and get a group through regulation. emily: kurt wagner continuing to take that story for us. thank you for that update. coming up, we are going to talk to the ceo of t-mobile. t-mobile just slid into the number two spot among wireless service providers in the united states. what is next? ♪

t-mobile out with earnings after the bell that beat estimates. t-mobile now the number two mobile there your united states. up 5.5%f five point -- after hours. joining us is t-mobile cbo mike sievers. thank you for joining us. i am sure this is a fun way to celebrate your tenure as ceo. talk about what trends you are seeing. historic day for our company. when we started this journey, we were number four. we announced today that we have taken over at&t as the number two provider. during the pandemic, we

delivered 1.2 million new customers, more than three times at&t and verizon combined. to your point, but customers are looking for right now is not to have to trade off value and network. they want both. they need that connection more than ever, and they need a great deal. that is what the new t-mobile is uniquely positioned to provide. track withyou on network expansion despite the challenges the pandemic has posed in other areas? the network is being built at pace. we have our full staff -- full stack now, including the spectrum that allows customers to have eight times the speed of lte, 300 megabits per second. we've got it in the major cities across the country now. we will be in thousands of cities as we exit this year. have 50 times more coverage

than verizon on 5g and twice the coverage of at&t, with transformational customer experience, and all of that is even in advance of people having handsets. it is just extraordinary. i look back 10 years and verizon really got out in front on 4g lte, and they dictated a lot of the terms of network competition for the 4g decade. the opportunity to lead in the 5g era is t-mobile's. emily: do you think this is the year that 5g is really going to break through with mainstream customers? mike: i do. carriers have been talking about it to a long time -- for a long time with each other, but consumers will start caring this year for two reasons. one, i hope all the handsets will be there. but two, it is becoming crystal clear that that connection, that essential connection that we all have in our smart phone, it has to be a great connection. that is what 5g will be able to

deliver. emily: let's talk about the merger with sprint. are you also on track to meet merger commitments? is the pandemic at all hurting the integration in any way? not. it's really the long pole in the tin has been permitting. we have been able to come out of the gates and build. that is terrific. our two point five gigahertz 5g is rolling out in so many places across the country and providing this transformational experience. we are way ahead on things like marketing integration and our .etail store rationalization that is really great, because it gives us the potential to get to run rate synergies faster. my goal is to have the synergy production from this company, bigger and sooner than promised.

note, tensionser between the u.s. and china are at an all-time high. huawei has been a flashpoint. given how prominent their equipment is around the world, i am curious what your position is on it. is the u.s. taking the right path? mike: we have been on the sidelines for this because our big strategic partners for the network are ericsson and nokia. we have big partnerships with companies like samsung and apple. these are companies that are western, and some are american companies. we have been on the sidelines of this issue. but our partners are investing with us, and we are doing things that are breakthrough. we are the first company in the world to have a standalone 5g capability. that means you're 5g is all the way into the core of our network, and it is not hindered by any legacy technology.

we are the first in the world to do that with our partners like ericsson and nokia. what are your outlooks for the year, given that we are still working for home, schools are still remote? how is that going to drive business and pressure, essentially, on your networks over the next six to 12 months? returne have seen some through switching behavior and shopping behavior in the category, and that is really important. we predict that will continue to modestly increase through the rest of the year. but the bigger dynamic is, what are consumers going to be looking for as this pandemic unfolds and the circumstances that follow from it unfold? we are going to be -- we think they are going to be looking for a better value and a better network. budgets are tight and people are having to make choices, and they are not going to drop this category. smartphones are essential to our

lives now more than ever, but -- that is a big opportunity for the undisputed growth leader, us. many ofast question, the companies that make the phones that your customers use, apple, google are in the middle of this big antitrust situation, lots of scrutiny. what is t-mobile's position on that? are these companies too powerful? we've got about 30 seconds. serveour focus is just to customers, and they have served us very well. i am not an expert on that issue. i can just tell you that with our partners, we are delivering an incredible service. that is ultimately how the customer wins. i am a big fan of the tech sector, and i hope america continues to lead in the tech sector. emily: mike sievert, ceo of t-mobile. thank you so much for stopping by.

that does it for this edition of "bloomberg technology." stay tuned for "bloomberg daybreak: asia really a" next. -- "bloomberg daybreak: asia's australia" next. ♪

haidi: good morning and welcome to "daybreak: australia." we are counting down to asia's major market open. this hour, wall street gains again on optimism that washington will eventually agree to a virus package. are stalling, and president trump says he may take action in the