sports zone everybody wins. now that's simple, easy, awesome. say xfinity sports zone into your voice remote today. emily: welcome to "bloomberg technology." i'm emily chang in san francisco. the s&p climbing to a record high with tech shares driving the rally, and especially amazon. of covid-19 and hospitalization rates seem to be improving. is still no deal on more stimulus. the second half of the year remains uncertain for retail

giants that's benefited from more money in american wallets earlier this year. for more, i want to bring in abigail, who's been following all the action in the s&p. a big day, catching up to the nasdaq. tech is helping. abigail: we have this record high. market watchers have been waiting for the s&p 500 for a week very closely. the nasdaq has been hitting record high after high. tech, especially with amazon and other tech names, really driving the gains for the s&p 500. morning the this s&p 500 briefly went negative after putting in an all-time high. we have this wall of worry. not only do we have no still is, a second deal is not on the table yet. we have a election jitters, u.s.-china trade jitters, the possibility of a second wave.

it was not a robust finish for the s&p 500, that a record high. one day versions are a little high, given the others closed a little high. the last time this index put in a record high was almost two years ago. it's really the habs and and have-nots.vs technology is the land of best havs. amazon had its best day in about a month. it's not clear what was behind this except for more bullish momentum. hedge funds are really favoring amazon at 104 -- favoring amazon. 104 hedge funds have their stuff in amazon. a second company update. one of the big winners within the s&p 500. zoom up 4%. revenue.ignificant they did report a great quarter

up 5%. it seems that the virus is helping all of these. these are all stay-at-home stocks, but jd.com as china is embracing e-commerce. a stay-at-home day helped the s&p 500 find that near record high. oracle nowtime, weighing a surprise bid for tiktok's u.s. assets. the founder of oracle has been a supporter of president trump, and shares did rise on this. talk to us about the moves in the stocks. abigail: when is headline crossed last night, 7:00, 8:00, i was surprised. oracle is the world's second-largest software company, what will they do with tiktok? they are interested, enough to cause the stock to go higher. it's best day in two months. the topline growth for this company was slow, single digits.

it makes sense. perhaps they are looking a way to diversify. although it's not clear how they would integrate that immediately. microsoft has been the company that was thought to buy the tiktok assets. twitter was mentioned as well. here is the stock performance between oracle and microsoft. oracle, flat, really up just about 0%. the last all-time high for oracle, more than a year ago. microsoft, record high of 60% over the last high. oracle is trying to figure out a way to bring more growth, if they do put in a bid for those tiktok assets. emily: certainly an interesting potential buyer. abigail doolittle, thank you for that update. joining us to talk more about oracle as a potential suitor for ,iktok is kristin martin

professor of technology ethics at notre dame. for joining us. as abigail mentioned, oracle is a -- focused company. it does not take -- make sense to take on a consumer company like tiktok. what do you make of this potential bid of oracle as the owner of tiktok's assets? prof. martin: tiktok has two places to get value. one would be consumer facing integration and i think amazon announced being able to integrate a voice command to get tiktok users to open up tiktok. you could imagine microsoft using it as a way to having consumers more easily use the products. the other side, which may be what oracle was looking at, was the consumer data. the thing that made the trump administration concerned about tiktok was all the information

that tiktok and other apps have on us with our location and preferences. who we are talking to and what we are talking about. oracle does have an at tech business. tech business. it would be valuable to them to be able to sell this data or access to this data. the consumero market, but going into the commercial market and leverage consumer data on the back end. what the trump administration was worried about was the exploitation of consumer data. that would be for political and commercial advertising. incredibly is an political situation. the president has ordered tiktok to sell these u.s. assets. oracle's founder has been a big supporter of president trump and held a fundraiser for him at his estate back in february.

what do you make of that, given the president may well have a say in who buys his company? does that give oracle in edge over microsoft? the wholein: since process seems to be so politicized, it's not clear what to talk does any different than any other app that young adults and teenagers use. social media apps, streaming apps altogether the same data. to dataoes not sell aggregators. is the reason why tiktok needs to divest itself from its u.s. assets. it wouldn't surprise me if the solution was an equally politicized. to your point, if the ideas as to whyoliticized tiktok needs to divest itself with u.s. assets, it would not be shocking if the reason or solution of oracle was just as

politicized to come in and save the day for trump. . emily: the main difference between tiktok and other social media apps is that its own by a chinese parent company. president trump mentioned national security. the ethical issues seem incredibly murky, especially for a president that is facing reelection in a couple months. how do you parse out the ethical implications of the situation? that martin: i would argue all of the data collection for all these types of apps is problematic. the collection of our location, our contacts, who we talked to, what we talk about. the collection of all that data, putting it into data aggregators and selling the information to the u.s. government or foreign entities, all of that is problematic.

the point would be that i'm not sure to tack desk to talk is any different than those other entities. trump in thatwith the overall data selection and selling and sharing is a problem. i think more attention needs to be spent on the entire data aggregator industry. tiktok is the way we start talking about this. the issue of whether or not our data gets in the hands of foreign entities cannot only be tiktok. it's not clear why tiktok is being singled out other than it's being politicized. ,ther apps do the same thing equally wrong. i don't mean to say they are ok in one hand and not the other, but the surveillance industry of consumers is wrong. it makes a susceptible to manipulation by commercial advertising. but that is why tiktok is different than the other apps. equally wrong, but not clear how

they differ. emily: professor of tech ethics at notre dame, thank you for joining us. strung intooneywell action to make n95 masks at the start of the pandemic, now they're tech is essential in helping to get universities, events, schools, airlines act up and running. we will speak to the ceo, next. ♪

they: when it comes to global response to covid-19, honeywell technology has been

front and center. their technology touches everything from n95 masks, to airlines, to universities, i cut up with honeywell's chair and ceo darius adamczyk and talked about the focus on the pandemic. us: initially, when we first entered the pandemic, it was about getting the n95 masks as quickly as we could. we really played our part as early as march and into april and expanded our capacity. obviously that was priority one. but that quickly shifted because some of the other things that we sensorske some of the for the ventilators. we have a big backlog of that in april. we made our own ventilator for emergency use. focus was how do respond to this crisis we are in very, very quickly. but now, our focus is much more back too we get people

the workplace, back to flying again, back to having fun again, back to going to stadiums again? complete shift. now we are working with a lot of airlines, teams in the nfl, the ncaa to get their stadiums ready. working a lot of building owners about how to get their employees back in a safe manner and have a different user experience for the occupants as well as the owners. really been all over the board for immediate response to now preparing to emerge from it and returning to a state of normal. opened up factories in arizona and rhode island to make n95 masks. president trump visited one of those facilities, though he was not seen wearing a mask at the time. hell closely are you still working with the white house on ppe in particular?

darius: we have a good partnership with the white house to help them out. we quickly opened the facilities in rhode island and phoenix. we are trying to help out any way we can. we are helping them with surgical masks. some latest discussions we had to open up more. we are continuing discussions in china help the country in any way we can. emily: there is still a huge amount of near-term uncertainty. nobody knows what the future looks like. what do you make of the president's evolution on masks, given that initial interaction you had with him? darius: i think the president's support of a masks, based on the data that i've seen, they help to limit the spread. we are encouraged by that. we certainly practice that. we have some of our staff

working in offices, most are not, particularly in north america yet. we certainly encourage and require using a mask wherever we are. are also in touch with airline ceos regularly. what is your role in trying to get passengers back on flights safely, if they need to fight? rius: this is all about passenger comfort, passenger safety, and i think the airlines have done a terrific job. we are helping them with sterilization. there is a robotlike device that really roams the aisles with ultraviolet lights that actually cabins andlize the can do so in a matter of minutes between flights. solutions tog on have cleaner air within the aircraft itself. with some of our technology, which is longer term in nature. things such as

ppe kits for the passengers themselves. we have a full range of solutions from the very sophisticated to technical, to very basic things. emily: many traditional industrial companies are turning to software and honeywell is one of those. what are the opportunities, specifically, that you see for honeywell? foundationalasic outcome we see is control. weather control aircraft, control buildings, control industrial plants, you control things through hardware and software. software has always been part of the fiber of who we are. we have more software engineers than any other type of engineers on our staff today. we have way more than 40,000. -- transition to using data because when you control something you are connected to -- using enough different matter to control that process is a natural evolution

of the company. that's why we formed our honeywell connected enterprise, were forged ip staff and building out connective issues. emily: you are talking about the cloud. how much revenue would you expect to drive honeywell cells? how much -- sales? how much would software drive that revenue in five years? ius: we have a $4 billion business and software. we expect the double-digit growth rate for our software business. have been able to achieve much more than 10%. at the expected growth rate we hope to augment that through acquisitions. it will become a much more meaningful part of our portfolio. emily: what kind of acquisitions would you consider? anything outside of your core business like aerospace, energy building, automation? darius: we love the platforms we

are in. we look for software assets, but not just software assets. we base that with the strength of the balance sheet we have today. this will be a more friendly m&a environment. we are going to be active in the second half of this year. our business,ment certainly the digital businesses, but potentially others as well. there,darius adamczyk the ceo of honeywell. coming up, the app store battle royale. epic games has sued to overturn apple's ban on its popular game fortnite. we take a look at the numbers and if the future of the text or is at risk. that's next. this is bloomberg. ♪

emily: the saga continues. epic games is looking to block apple from removing its fortnite game from the app store, this after apple removed the popular gaming app citing that epic was not playing by the rule. apptopia ceo, what do -- who do you think is losing? >> there are two things happening. on the surface it looks like onc is bringing the battle behalf of small developers. you have this evil mega corp. and apple is bringing the battle -- epic is bringing the battle to apple. and on think that is the case when you look a little bit deeper. when you look under any surface you will see it's much more complicated. you have to look at who epic is.

second-largest owner and epic is tencent. one of the largest tech corporations in china. they are bringing the battle. theou look at it, they are -- they are bringing the battle for chinese tech against american tech. epic is not a company like spotify where you pay 30% of fees. they are selling digital goods, their margins are extremely high, and they are tremendously benefiting from the platform. what they are doing is pretending to bring this battle to apple. really what they are angry about $.10 successt want to be apple's success. they don't want to pay $.30 of every dollar to apple. what's happening here is you are talking about tiktok and the whole political situation with tiktok, what seems to be happening to me is you have chinese tech versus american

tech. this is china bringing the fight to the u.s. in creative ways. emily: that's interesting. on, that's quite an accusation. you think that epic games is doing this purely to give tencent an advantage? eliran: absolutely. tim sweeney made his money. and is a $.10 game to play they are masters at playing .hese games tencent has a strategy and the strategy is continued to battle american tech at every front. let's think about epic. epic is not tencent's largest moneymaker, they have many other moneymakers. ethics.one of many $.10 -- tencetnt's.

are they using the political tension against us, definitely. they are making apple look like that evil mega-corps. it's not true. way, it's not just apple, google has also pulled fortnite from the app store. apple gets a lot more of the attention, but there is a potential, if this continues to appsout, all of epic games are at stake. my kids are on houseparty talking to their grandparents and that would be a big low if they could not access that from the app store. do you expect that this tactic will work on apple and google, or that they will stick to the policy that they've had over the last several years, that the app store has been in existence?

the criticism that apple and google do enforce the rules inconsistently, at times? eliran: i will start from the beginning. look, apple and google decreased frictions for both consumers and developers. -- they have enabled developers to ship millions of apps. the app store has only been around for about 10 years. it's unprecedented sid caesar apps have been shift. if not only to enable a payment gateway, you have to provide tools to developers, analytics, they are hosting the actual software. there is tremendous service and values to developers. they do deserve a significant cut. can they get a significant cut from every publisher? no, there aren't hundreds of thousands of hedge cases. spotify can't pay 30%.

do you come to the google place store with a machete? emily: we will have to leave it there. thank you for giving us your dots. eliran sapir, thanks so much. we will be back with more of "bloomberg technology." after this quick break. ♪

emily: welcome back to "bloomberg technology." i'm emily chang in san francisco. walmart and kohl's, tubing retailers out with earnings -- two big retailers without earnings. joining us to break everything down, our bloomberg opinion columnists who covers consumer retail industry. with walmart. whether or not walmart can keep up given that stimulus money is drying up.

"bloomberg technology." walmart had an increase in sales and they said it was fraud base but general merchandise was the thing that was driving the train. that's items like one care products, sorting goods, toys, apparel and that kind of thing. that's good for walmart because those are hiding margin -- high-margin items. there are looking to shore up profitability. but that question of this gimlet's checks is a big one. the retailer did call out -- question of stimulus checks is a big one. they believe that once checks tapered off, people started normalizing their spending. that can be bad news for walmart and many other retailers of congress does not pass any legislation on that front going forward. kohl's is not a great quarter.

what are the trends there? did see a 58% increase in their digital sales, but that was on a pretty small base. tosimply was not enough offset the strong decline interest that they saw for their physical stores. kohl's is just in a tough spot. of the corners of the retail industry that was hardest hit by the pandemic with kids not going back to school, ,eople not having weddings parties, vacations to dress for her clothing retail is hit hard and kohl's felt that in the quarter. what: talk to us about this means for the rest of the retail industry. there are more traditional and physical industries to have better online operations, and there is amazon, the elephant in the room. do you see some big players emerging based on their success,

based on their leadership in online sales, and can they ever catch up to amazon? sarah: i'm not sure they can ever catch up to amazon, but i do see the dynamic in that environment really favors the retailers that are one-stop shops. the walmarts and the targets over the world. leases where you can get your groceries, but also get electronics. see that in this environment people are afraid to go to stores and they are consolidating their trips and they are wanting to get as much stuff as they can at one place. that is really tough for drugstores, for example. usually a lot of fill in traffic or mall retailers that typically specialize in one thing. time for bigong box retailers and a difficult time for everybody else. just weeks into the pandemic there was talks about tens of thousands of retail stores having to close, or closing as a result of this.

it is happening. what doesthe mall, the street look like in a year? sarah: it's going to be completely unrecognizable. we certainly have had a number of mall retailers say they will close hundreds of locations. some of the ones that are closing, it could be a domino affect where even the retailers that are surviving don't want to be in that mall if it's half empty. certainly be a lot of change, but it does result in opportunity for the retailers that remain. that's something that kohl's talked about today. they did not name specific competitors, but i think they eluded to jcpenney's, which is bankrupt and closed a bunch of stores. this is something kohl's was able to do successfully, pat their own sales, when the department store went out of

business. there will be pickup opportunities in sales for the ones that remain, as some of these other retailers fall victim to the pandemic. emily: our bloomberg opinion halzack, darkrah words that the malls will be unrecognizable. the company best known for photoshop and pdf is now using its technology to combat deepfakes. adobe is part of a content identifyity to deepfakes, misinformation and disinformation. i spoke with the ceo earlier today about how that effort is going. we have to step up and demonstrate leadership. as you know, people use adobe to create the world content. we really wondered -- wanted a partnership not just between creation companies like ofselves, but the publishers

that content, the people distributing that content and consumers. i think it's the responsibility of the industry to step up. much like was done for advertisements where you condemn -- you can determine the veracity of an advertisement. the same thing should happen with content. you saw that happen with traditional magazine publishing. you had a byline so you knew who was the author of a piece of content. as part of at creative cloud, as you use our tools, you can digitally sign or stamp a piece of content that you create, then the publisher of that content will show if it has been altered or modified, as well as the distributors of the content. it would also have to be the consumers, like you and mean who says, when i see a piece of content i want to see the authenticity of it. we are taking the lead on the tools side.

massivey twitter, as a strip reader of content, and new york times has a great online presence. you are continuing to see more momentum because the need is there for the consumer to know whether this content has truly been created and modified. last but not least, i think we are looking at artificial intelligence and machine learning that will help us determine when and how that content was altered. emily: the recently announced a ban on political ads for the placesoftware that management on online advertisement, why? tanu: we have very clear policies. where theyes of ads had violence, we thought it was our responsibility to step up and not allow the promotion of violence. we are in uncharted territory as we step out. we take this very seriously. we just thought that that was

not appropriate for viewers. emily: twitter has done the same thing. facebook still takes that advertising. is that the wrong call? antanu: i am one of the executives who focuses on what we do and our relationship with the customers. i think it's up to every other company to understand what it is that a do and what their policies are. we are stepping up appropriately, and we have the right sentiment for our audience. insight intoyour deepfake, disinformation, and what's out there, how worried are you about the upcoming election? the first of foremost, as an immigrant of this country and a citizen of this country, is asking everybody to go out and vote. is the most important part. which is our civic responsibility. i think as it relates to the

content that people look at to make the appropriate and informed decisions. everybody would have to step up and demonstrate what's authentic versus what's fake. most citizens have a pretty good in eight cents of that -- inate sense of that. but the most important thing is to make sure your voice is heard. emily: you have been outspoken on immigration issues and the black lives matter movement. what are you doing to get more at adobe andhired on the board? u: we have had fantastic conversations with our black employee network who have stepped up and help us articulate our strategy is and how to increase it. i have two areas i am passionate about. the first is making sure we go to the colleges and get the right talent associated with black employees, african employees and all underrepresented minorities.

we will double down on making sure we get that appropriate balance. once you get the talent, it's all about promotion and nurturing them. in all of these areas, in conjunction with this network, and i arero personally sponsoring this, we will make progress. much like we did with gender. in gender we were not really on gender parity, we were focused on opportunity parity. we showedcused and gender parity an opportunity parity and we will do the same thing what the black employees and the underrepresented minorities. it's the right thing to do across the globe. emily: absolutely. ceo of adobe. is seeing a massive

turnaround during the covid-19 lockdown, but will it last. we will hear from blue apron's ceo, next. this is bloomberg. ♪

emily: the covid-19 crisis has led to a surge in food and meal kits delivery's. a 10%pron is seeing year-over-year growth in the second quarter revenue, adding 20,000 new customers. shares have soared as much is over 600% considering the three-year low. we are joined by blue apron's president and ceo linda kozlowski. thank you for joining us.

hasously there a pandemic been good for the meal kit delivery service. looking out over the next six to 12 month, given that uncertainty and lockdowns will continue, do you see business getting potentially better ahead? focused on ae been long-term growth strategy that we started before the pandemic actually hit after i joined the company last year. we were already starting to see it turn into one with our sequential quarter of a growth. what we saw on the pandemic was for year-over-year growth. there is profitability as well. something we are really proud of and focused on leveraging as we think about maintaining and developing that customer base going forward. that quarter has

given us the conjunction with the equity rates that we did. what we needed to exit our whicherm growth plan, risk -- execute our long-term growth plan, which was about gaining new customers and retaining existing ones. we are seeing behavior not just from covid-19, but people who are drive -- trying wheel kits as an opportunity to build on doing, to keepe and attract customers going forward as people see the benefits of meal kits. emily: people had written blue apron off, in a way, and the stock had been destroyed. what about when we come out of this, when restaurants reopened? do you see holding onto those new customers and that demand? linda: we have been doing internal research and looking at the external trends. the external trends look at the

fact that people cook from home more. this has reignited their confidence in the kitchen. it has reintroduced them to family time and being able to cook together and eat healthier because you are preparing food from scratch. we definitely see a continuation of at least a portion of this as things go forward. even if things open up, people will be concerned about too much exposure of spending time in public. even after that, there has been a fundamental change in habits and people are seeing the value of cooking. it's not that hard, especially if you have something like a meal kit where you remove the have the you significant effort of procuring the ingredient, but you remove food waste and having this refrigerator full of ingredients that you don't know what to do with. we see some continuation, even as things are to open up and

start to change. we have been managing, for the long-term, sustainability of that for quite some time. booming,th business that has led to a surge in trying to meet that demand. i'm sure that getting these kids prepared has been a challenge. -- are you making the kids making sure kids are safe and the employees who are putting everything together is safe? is our topty priority. we have employees that make sure these kits get made. we were already an fda regulated and certified facility. we already had so many measures factace, because of the that we are dealing so much with fresh food. procedures that we put in place in order to protect employees and the product from

any impacts of covid really were above and on top of an already very rigorous standard -- on top of an already very rigorous standard. that made it easier for us to implement changes we made to keep our employees safe. that is the number one priority. we are dealing with something that is coming into people's homes and feeding their families. and every stepo of the process, including our suppliers, goes through the same certifications and checks we go through. it's a critical part of how weekl -- how we keep our employees safe in the process. emily: you were the ceo of at sea and worked at alibaba, how do you think the pandemic will change e-commerce going forward? linda: a lot of people are seeing the benefits that e-commerce can help us through our lives. a lot of people are nesting and

feeling like, ok, my home is not just where i come and sleep after the things i'm doing during the day, this becomes my workspace, my social space, my sanctuary at the same time. i think that investing in things decorating and making your home a better place, but also investing in the food and those mealtime moments, and really creating mindful moments around things like food are top of mind for a lot of people. i think e-commerce in general has been -- has benefited from the fact that people need to bring things home. the next thing you will see is more and more evolution. this is something we think a lot about of, where these products come from? what is the environmental impact of what i'm doing? that's a big part of why we focus not only on the quality of andproducts, meats, produce, but we also focus on

food waste and how we lower the impacts. which is why we have a lower carbon footprint because we reduce waste. the next thing you will see in e-commerce is how can you continue to minimize the waste that comes from e-commerce, while also taking advantage of the opportunities for how e-commerce can help serve families and people at home? , ceo ofinda kozlowski blue apron. thank you for joining us. still ahead, apple taking its music offerings global and we will look at what's new and their plans for the future with our own mark gurman. that's next. this is bloomberg. ♪

emily: apple is expanding its music streaming services by adding to live global radio offerings. apple music hits and apple music

country. for more on this is bloomberg's covers applewho for us. how does this fit into what apple already offers, and how significant or used do you think these radio channels will be? mark: this is another element they are adding to apple music to help compete with spotify. spotify is the market leader in streaming music and online radio and playlist and such. apple music has been improving since its launch five years ago. radio stations, one is apple country and the other is apple music hits, should give more pure ration and a touch that people will appreciate and keeps people glued in two the subscription. in addition to the new shows, renaming their

music station from beats 1 to apple music 1. emily: i have to get your thoughts on the battle royale between epic games, apple and google. whoad the ceo of apptopia claimed epic is doing this only to boost tencent, who owns a has itsake in epic and own app store and competes with apple's app store and google play. what's your take on that? mark: i have not heard that. i don't find that to be true, based on the apple site. on the -- apple side. on the apple side you can only have the app store on the phone. but perhaps the assertion holds up on the google side, on the android phone side, where the marketplacestore or is a real competitor in some

regions of the world. is not available in china, so it's really unclear how or why that would be true at all for apple. but maybe a little bit for google. meantime, apple is now potentially threatening to epics pipelined to some of its other apps and not just fortnite, house party as well. this has become quite extreme in terms of the back and forth. what is the latest on how you expect this to play out. ? mark: apple told epic games they will either kill the developer account on august 28 or so. that would mean their other applications would be pulled from the app store. they have one other ipad game. those would be gone.

you won't be able to get updates to fortnite. and the developer tools used to develop a graphics framework that lots of third party app developers used to support graphic and gaming in their own apps, that has nothing to do with epic games, so they would be cut off from that. firmgames, if apple stands and epic games does not submit a new update and keeps attacking apple, they will remove the developer account. eventually that epic relents, apple makes changes to the app store and appeases everyone else. i knew you have a prediction of sorts. bloomberg's mark gurman, thank you for joining us. that does it for this edition of "bloomberg technology." daybreak:, "bloomberg australia" is next.

stay tuned. i'm emily chang. ♪

>> welcome to "daybreak: australia." i'm haidi stroud-watts in sydney. we are counting down to ages major market open. >> good evening from new york, i'm shery ahn. >> u.s. stocks complete their fastest ever return to your record, topping february highs for the first time since the coronavirus upended the market. the s&p 500 capping a rally from march low.