emily: welcome to "bloomberg technology." intel drivingand markets higher. uber in live chairs also client shares alsolyft climbing. a appeals court giving them reprieve at the last minute. all of this on the day that the

democratic candidate for president joe biden will make the speech intentionally of his lifetime. the day started down pete with a rise in jobless claims. yesterday, we saw a surprise bearish reversal. today, a surprise bullish reversal, all leading into joe biden's speech. morning,earlier in the we had stocks down a little bit as the initial jobless claims came back in above a million. but we had a turnaround. thanasdaq closing up more 1%, so perhaps some folks hoping that those unfortunate job numbers could force congress to approve a stimulus package sooner rather than later. nasdaq up 1.4%. , the newa cap index york stock exchange faang index,

up about 2%. facebook,habet, amazon climbing higher. the stay-at-home trade back in the lead. russell down half a percent. interesting way for the gains to happen. perhaps not the healthiest. financials, industrials. all about tech. you were mentioning the dnc tonight. joe biden making potentially what will pd speech of his lifetime. going into that, many of the people's favor biden to win against trump. thepredictit implied for has joe biden at 59% odds implied probability of winning. president trump at 44%. emily: given that implied probability which has biden in the lead, how does that

potentially impact some other names? right now, we are not all that likely to see that much of an influence farther away. certainly if he does when the election, there are some names that could benefit. one is energy transfer, an energy asset company. while biden himself is not so, so green friendly, the party is more so. they could certainly use the lift. canopy growth, the marijuana company, down 23% on the year. it is also thought that a democratic administration may be more favorable towards the marijuana industry. tesla and nikola. the thought is also that joe

biden's administration could perhaps be more favorable. but, are these stocks pricing in any kind of a democratic win? you were talking about over and lyft. more of that story you were talking about in terms of that they have won the delay to convert drivers to employees, buying them time to potentially campaign for a ballot measure free these transportation companies from the requirement of assembly bill five. investors clearly liking it. these companies were planning on shutting down, which obviously would have been bad for the top and bottom lines. but since that is not happening, the best day in three months. emily: indeed, for them. , aaking of uber and lyft

victory for both of those companies in their quest to delay drivers from contractors to full-time employees. tonight, almost simultaneously, they won an appeal to keep operating as is until a hearing in october. a new law that requires them to convert contractors to employees with benefits. catherine, what is your take on this appeal of which has some strings attached? the companies have to come forward with sworn statements by the ceos about how they intend to make this conversion ultimately. >> the delay is a big win for uber and lyft. the california supreme court ruled in april of 2018 that hiring entities need to treat

their workforce as employees. the california legislature voted last fall, effective january 1, companies need to treat their workforce as employees. have had over two years to figure out how to comply with the law and they have just another couple of months to try and figure it out. emily: what do you make of the fact that they do not seem to have given much thought. critics say they are drinking their own kool-aid. >> their lawyers have to have thought about it. because they do not have a good argument that they are not the employer's of their drivers under california law. but i think that they believe model isper low cost their business model. treating your workforce as

employees has caused. you've got to pay into the employment insurance fund. emily: obviously, there is an argument to be made that drivers are essential to uber's service. interesting that given this is happening in the time of a pandemic, you don't have a lot of people using uber and lyft anyway. uber eats food delivery can continue at this point. uber and lyft are banking on prop 22 and on california voters to sway in their favor. they say they would like to keep them as contractors but pay them above minimum wage, give them more access to benefits. do you think public opinion will be on their side? >> it is hard to know. what i will say is that uber and lyft have trained the public to

expect that to take a ride is a supercheap thing. they boxed themselves into the corner that way, saying, we can actually pay our drivers what we would have to pay them in order to ensure they get the minimum wage. them forto compensate the use of their cars. in order that if they are injured, they get compensation for their injuries. the public toined think that a ride in an uber or lyft should be supercheap, they feel that they don't have the option to simply raise prices in order to make the cost of the ride reflective of the cost they are charging consumers. emily: especially in a them a quinn not a lot of people are writing anyway.

have set this up as a fight between the company and politicians. they said that drivers don't really want to make this change. speaking of politicians, we spoke with the mayor of stockton, who had something to say about this. >> i know a lot of people in stockton who drive uber and lyft. they wish they had health care and things of that sort. i think it is symptomatic of a deeper issue, the fact that we don't have universal health coverage is a problem. jobs to payt have wages that allow people to live with dignity is a problem. tubbs, part of the mayor's program put forth by michael bloomberg, founder of bloomberg lp. toherine, is there a way

compromise here? catherine: there is not an obvious way to compromise. employers in california have to contribute into the unemployment fund so there will be money there that people are unemployed. when drivers got unemployed by the thousands, what did the company do? told them to apply for unemployment assistance funded by general tax revenue. taxpayers tog the bear the cost of their labor force rather than have taxpayers bear the cost like every other company does. yes, of course, there is a compromise. one could lower the minimum wage. one could say that we don't actually care about having employers contribute to the cost of health insurance.

businesspany that does in california has to pity minimum wage, has to pay into unemployment insurance, has to contribute to the cost of the equipment that employees provide. what uber and lyft are asking for is that the rules do not apply to them. that is not the world we live in. if they are going to compete fairly with other companies, they need to play by the rules. emily: we will be watching to see how it plays out. october hearing set for 13. berkeley law professor catherine fisk, thank you for joining us. coming up, what joe biden's pose tax plan means for silicon valley. details coming next. this is bloomberg. ♪

emily: joe biden is getting his primetime moment tonight after being officially selected as the 2020 presidential nominee despite pledges to increase taxes for individuals and companies. the campaign is still receiving support from some of the wealthiest backers. on superden's victory tuesday sent equity future soaring. his selection of, let harris as harrisning -- of kamala as his running mate also. biden's $3.2 trillion

in policy proposals have investors worried. tax increases,f funded by rolling back parts of the gop tax reform plan. this includes an increase in new taxes for corporations, bringing the corporate tax rate up to 28% from 21%. for individuals, biden wants to restore the top individual tax rate up from its current level of 37%. he wants to impose a tax on capital gains and cap tax rates for the wealthy. stateould repeal a tax on and local taxes -- a cap on state and local taxes. his plan also targets amazon ,hrough eight minimum book tax which imposes a 15% minimum tax

on companies that reported $100 million in net income in the u.s. but paid no taxes. biden'sere to discuss tax plan, bloomberg tax reporter laura davison. biden plan fores silicon valley companies? ra: tech companies can expect to pay higher taxes across the board. in the u.s., that corporate tax rate will go up from 21% to 28%. there is also this additional tax that if you have a lot of research and development tax things or depreciation, that companies, particularly amazon and netflix, have been adept at using, he says you can't do that anymore. you have to pay a 15% minimum

tax rate on your u.s. profits. also, overseas profits, right now you can pay as little as 0%. in some cases, you are paying irish tax rate. basically the same as right now earnings profits in the u.s. across the board, tech companies would pay significant and more on corporate profits. emily: compare biden to trump. broadly, whose taxes go up if biden wins and whose go down? laura: trump has been less specific about what he would do. presumably, he would keep his tax plan. he talked about some tax cuts for the middle class as well as tax benefits for companies who bring jobs back on shore as well as tariffs for companies that go offshore.

plan, corporations and those earning $300,000 or more per year. he proposes some more tax credit -- tax cuts. but if you are making in those upper income groups, that is when you see your capital gains tax rate. much double. your income tax increases. payroll tax. $400,000cks in at that level. emily: do you think the addition of kamala harris to the ticket has any implications given her ties to california, silicon valley, and big tex backers? laura: it certainly helps. they will have no her staff, they will have worked with them for years. that is how washington works. it is largely a relationship economy. she has people who understand

startups, who understand kind of howcapital gains play into these companies are formed. having people who are well-versed in those policies in high places is always a benefit. davison, thank you so much for that update. make sure to tune into bloomberg's live coverage of the democratic national convention tonight, 9:00 p.m. eastern time. coming up, alibaba's revenue growth returns to levels not seen since the pandemic. but is it enough to keep the company ahead of its competition? this is bloomberg. ♪

emily: sales growth at alibaba has bounceback to pre-pandemic

levels. it grew a better-than-expected 34%. the e-commerce giant benefiting from a gradual pickup in consumer spending. john, are you taking this as a sign that china's economy is bouncing back and could brown -- could perhaps bounce back faster than the united states? john: not yet. i was actually surprised and i think investors were also surprised. stock, thereof the are other issues that are more salient. i think everybody understands the secular growth story. i think there are larger macro and geopolitical issues that come to bear when assessing the

stock. you expect the rising political tensions between the u.s. and china to impact alibaba? they were saying that they are playing up how alibaba supports u.s. businesses. john: hello? i can hear you now. emily: asking you about the political -- let's talk about the political tensions between the u.s. and china. how do you expect that to impact the chinese economy in general? thateo played up the fact it is something they are monitoring closely. john: i think he is right. but i think it is not really matter yet, some degree, until after the election.

a biden presidency might still be tough on china but it will be fair and not arbitrary. businesses like alibaba, i think that is key. , ithere is a trump victory --nk you will probably see the area where i grew up and now the, in the lobby of political world, it is hard not to. they are basically saying that a trump victory would be great for resource-based. for alibabas hard

to escape that. in addition to that, i think there are slightly longer term macro economic risks that are what people see as an erosion. tech basedion of where it is not physical goods you are moving back and forth, it is fulfillment. it is a software company that to facilitate. withnk what you are seeing impressive -- well

above what we expected. we expected a pretty significant acceleration. when you balance that all out, i think that is where the stock is. i think it will likely trade sideways for a while. emily: ok. john freeman of cfra. thanks so much for weighing in. we will continue to follow, especially in the midst of potential trade talks. airbnb filing confidentially to go public. cap on thecing a number of guests and rentals. the details, next. this is bloomberg. ♪ you doing okay?

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with the xfinity sports zone everybody wins. now that's simple, easy, awesome. say xfinity sports zone into your voice remote today. emily: welcome back to "bloomberg technology." airbnb announced the caps on cap on and events -- a parties and events in-line with covid-19 protocols. it limits occupancy to 16 people and will remain in effect indefinitely. this just one day after the company filed to go public. we are joined by crystal z. airbnb has been going through a tough time. travel has gone through a standstill -- gone to a

standstill. now with this new cap on gatherings, tell us more about it. thehey have capped occupancy to 16, and this is a global ban. they have been tackling this issue for a long time. remember the california halloween party. they have tried to crack down on parties at their properties. move toee this as a clean up before they go public. they filed on wednesday a statement saying they have filed s1 to go public. it is an issue of timing for the announcement to come almost simultaneously. emily: are there any instances or stories of covid outbreaks from airbnb stays in particular?

crystal: i don't think we have addressed that issue, but the impact of covid on airbnb's business has been talked about many times. iny have seen some recovery june, as bloomberg has reported. fromng is only down 30% 2019, given nobody is traveling. that is a positive sign. we have seen a rebound in june. the covid impact is there, but they have been improving. at the same time, the second quarter revenue fell $335 million. some people see it as a sign that because of this phone revenue, they can no longer --

which allowed them to raise capital. be anl more likely initial public offering so they can get some money for the business. emily: the question is, how will investors look at this, and how will this new ban impact the business, and what does that mean for a potential ipo? crystal: with or without the ban , it is a difficult valuation exercise for investors. they raised that deal earlier this year, and that valued them at $18 billion versus $31 billion previously. whatever number is going to appear on the ipo on listing is going to be interesting for everybody. it is going to be a difficult exercise. nobody is going to know how they are going to be valued, especially since the pandemic's rebounding, it

depends on where the pandemic hits. with or without the party ban, it will be difficult. but i think it is interesting to see the sign of recovery. emily: all right. tse.berg's crystal we are going to keep following airbnb on its road to, potentially, an ipo. honeywell initially focused on making n95 masks and ventilators when the pandemic hit. now it is shifting gears to help schools, offices, and stadiums reopen safely, even airlines. meantime, the company is also marking its 100th anniversary of being publicly traded. in the second part of my conversation with the ceo, i asked about their latest covid efforts and how the legacy will live on. >> we are in a couple of markets

that are challenged, aerospace being at the top of the list, but we have quickly pivoted. this is making lemon out of lemonade. innovated new solutions for the world. some of these solutions are for airlines, for stadiums, for industrial plants. the one we are especially excited about is we have a whole bios.lution for glass, we haveg a new packaging that is lighter, cheaper, and much more durable. you could see it innovated in a , why other than what our core markets needed four -- rather than what our core markets needed four months ago. emily: you are getting schools

ready to resume in-person instruction. at this point, do you think you can have in-person instruction safely? without a vaccine, is there really any guarantee? darius: there is no guarantee no matter what, but i think you can improve your odds of having a safe in person environment by frequent testing, by making sure wearnts where pp, by -- ppe, by measuring temperatures. we have something called a rebellion camera which cannot only very accurately measure your body temperature, but can also, through the use of ai, check whether or not you are wearing ppe. you can do that on a remote basis. example of the kinds of solutions that we will bring to universities to enable them to have in-person classes. emily: honeywell has also built

a quantum computer. how far are you in terms of getting actual customers to use that technology, and how do you think that will play in your quest to become a more software driven company? darius: perfect question, because we actually had a very momentous event in july. we are starting to generate revenue on our quantum computer. we are in the process of building another one that is going to be even more advanced. we are accelerating that journey to much more of a commercial stage. we think that growth is going to be exponential. we have had incredible customer interest in using the quantum computer to solve a number of different problems. this is still a few years out, but i am excited by the fact that it is real, it is generating revenue, it is happening now, and it is going to be accelerating. quickly. -- accelerating very quickly.

your 100 yeare anniversary of being a publicly traded company next month. how do you see the next 100 years, even starting with a crisis? darius: every crisis is an opportunity. we have always been good at operating the business well, reducing costs, and so on. but the new set of skills we gain in this crisis is the ability to pivot extraordinarily quickly and focus on new business opportunities. but i think more than anything, this next 100 years, we are going to continue to evolve, just like we have in the past. we are going to continue being a leading technology player. and we are going to have a much more digital presence. we will become much more contemporary with our internal operations.

one of those efforts, honeywell digital, focused on our data governance, our processes and i.t. standardization. that is also enabling efficiency and speed of operations. emily: what is your outlook on the economy? how are you mapping out what coming out of this actually looks like, knowing that a vaccine is still a way's off and may not be a silver bullet? we may need more after the initial round is even developed. darius: we see a modest recovery. q2 was the low point. q3 will be better. we are not necessarily planning on a v-shaped recovery. if we get one, it is terrific. i do think it vaccine will be a catalyst, however. thatcine will catalyze much faster of a recovery, particularly in some of the markets we play.

if you think about aerospace, there is a tremendous amount of pent-up demand for travel. alone.i am not something like a vaccine, which i don't think is that far away, i think it is a few months away, rather than a few years away, and i think as we get into the first part of early next year, i think we are going to have a medical solution. emily: we have talked a lot about how working from home could change the way people work forever. could put a longer-term freeze on business travel, but it sounds like you expect business travel to resume. is that right? darius: like everybody else, i have been doing a lot more zoom calling, and it works ok, but it an in-personce meeting, and in person meal, a discussion. some of that just can't be done through the means of computer and video cameras.

it is a band-aid and it works, but it is not the same, and i can't wait to see some of the customers we currently have. i think there is another component that is really important. if we assume most of the workforce is going to spend time working at home than they do today, is that coming to increase or decrease air travel? my argument is that it will actually increase the amount of air travel, because if you want to try to build a company culture, you can't have everybody remote and never meet each other. when you think about things like onboarding new employees, how do you do that when they never meet ? how do you develop internal relationships? if we believe there is going to be more of a remote working relationship in terms of working from home, i think that is actually going to increase the need for air travel. emily: and what is your plan for

your own employees? some companies have said they can work from home forever, but it sounds like that's not the case for honeywell. darius: we are bringing back our employees to the offices when it is safe. for example, in china, we are, more or less, fully back. in europe, depending on the country, we are partially back or fully back. in the u.s., we are watching the data. we are going to do that in phases. but we do not have a plan to work fully from home. we do not think that is as effective as having colleagues in the office to work with, but we are going to continue to do that where it makes sense. but we don't see a long-term trend where everybody is going to work from home. emily: honeywell ceo and chair darius adamczyk. coming up, vice presidential candidate kamala harris takes

pride in her california roots, but how does silicon valley feel about the nomination? and privacy concerns. that is up next. ♪

emily: go with what you know. that is silicon valley's current sentiment as the dnc officially nominated kamala harris as the vice presidential candidate last night. harris's nomination is seen as a bit of an olive branch for tech , antitrustenator

enforcement the tech industries primary concern. with us as eric newcomer, who covers tech and politics for us. over the last few days, since biden picked her, we have been trying to look more closely at her record, and her ties to silicon valley leaders, not necessarily a clear line, but some have given to her campaign. what actually is silicon valley's position on kamala harris? eric: she was not the favorite favorite. you look at tech rank and file, bernie certainly had a lot of support, and warren. and from the donor class, pete buttigieg was super popular. but kamala harris is the hometown senator, has a long track record in the bay area, and is certainly a known entity. given the possibility that elizabeth warren, who has been

very harsh on tech, was a contender for the vp spot, silicon valley is certainly happy to see harris as the pick. and you've got venture , a lot of big silicon valley players who have donated to senator harris and have been supporters. this mean fores joe biden's fundraising efforts. obviously, silicon valley have very deep pockets. --haad: eric: it is good. in the first 24 hours, they raised something like $26 million. one fundraiser made the point that it its people really comfortable with the ticket. silicon valley is full of democrats.

they are probably going to support joe biden, but kamala harris is not exactly someone who has been antagonistic to the tech it is free, so they can feel comfortable they are not working against their own interests in the industry. emily: she is a bit antagonistic, but she has not been overly friendly, either. things she will have a say on our kind of unclear. what stance do we believe she will take on antitrust issues, given we just on the ceos of amazon, apple, and google drag before congress? generallyis difficult because she positions herself as un-ideological, so it gives her a lot of room to maneuver. sheok back in 2010, when was just running for california attorney general, and she went to google and talked to them and had a really friendly tone on antitrust, which is the biggest

corporate tech issue. to position herself -- she positioned herself as more friendly, but obviously things have changed. now she is saying we should look into whether facebook needs some sort of break out for punishment, so that is definitely a change of tone, but it is nowhere near as strong as senator warren, who came out with a list of tech companies she wanted to be broken up. that is a different posture. on things like privacy, kamala harris is more likely to be with the mainstream. democrats think there needs to be some kind of privacy reform, and we have seen some activity from her on that. and on a b5 with uber, the assembly bill we are seeing play out right now, she was the supporter of the bill that made uber drivers employees. that is a case where she has been on the side against tech, even though her brother-in-law,

tony west, is the chief legal officer of uber. emily: right, that's a very interesting tie, her relationship to tony west, who runs all of uber's legal operation. of course, don't miss our coverage of the dnc starting at 9:00 p.m. eastern time. coming up, our conversation with the ceo of infosys on how he is navigating china and evolving immigration policies around the world. ♪

is one of the largest i.t. outsourcing companies in the world and has seen its business battered not just by the pandemic, but by immigration policies changing in the united states, forcing the company to pivot and higher more local talent instead, rather than bringing on i.t. consultants from india.

caroline hyde spoke with the ceo, said leo porac -- salil parekh, on how he navigates the changing environment. salil: our focus has been on our businesses in the u.s., which has been 60% of our business. the rest of the world, australia is a significant part. we have a small business in china where we work with chinese private enterprises, essentially companies that are growing up in this tech space. and some global companies that operate in china. businesstage, our works within the global guidelines, government regulations in those

jurisdictions. caroline: do you have any hopes here in the united states for what policymaking could be made to sustain your business a little bit better? what would make doing business with the u.s. easier, particularly for those employees here on the ground? what i see is the change in technology and the continuous change that u.s. companies have been there -- have to leverage technology. of course, there are other qualities. the primary activity that drives all of the change is the technology innovation. our digital business today, in the first quarter, grew at 25%. is where the

greatest impact is on the work that we do, on the cloud, on cybersecurity. these are the types of changes that benefit from the u.s. of course, there are other dimensions on policy, but they do not have the biggest impact because of the technology giants. caroline: talk about how your role has changed as a technology leader within the pandemic. you are helping launch contact tracing applications, for example. is that something you see yourself doing more of? salil: we remain confident on our technology platform and with some of the states we are working closely with, to make sure that if they want to launch any of these within their support, their

tracking, their handling of the covid response, we are there for them. one of those examples was in rhode island, where we worked closely with the governor and ensured that our technology was leveraged as they saw fit to make sure they could project the needs of handling covid within the state. we are working with other states and across other jurisdictions as well. we have done quite a bit of work in supporting the communities in india, and the u.k. we are starting to do more of this across asia pacific as well. emily: the ceo of emphasis there with caroline hyde -- infosys there with caroline hyde. go bite and is scheduled to speak sometime tonight between 10:00 and 11:00 p.m. -- joe biden is scheduled to speak

sometime tonight between 10:00 and 11:00 p.m. eastern time. at 9:00 eastern, we will be all across the convention. ♪

haidi: good morning and welcome to "daybreak: australia." from bloomberg's world headquarters in new york, i'm shery ahn. haidi: big tech once again drives u.s. markets higher. the nasdaq hitting a high on easing concerns about the recovery. apple and tesla offsetting a slide f