♪ emily: welcome to "bloomberg technology." i am emily chang in san francisco. shares soaring and pushing the nasdaq to a record high. but, the rest of the market falls after china throws a wrench into president trump's ok to sell force tikt to a u.s. company.

the chinese government said they would have to approve such a sale and that the algorithm that makes tiktok so valuable might not even be part of a deal. we are waiting on president trump to make a news conference. we will take you there when that happens. zoom, a critical player in connecting people in the pandemic, shares a skyrocketing. abigail doolittle has been following all of the back and forth. let's start with zoom. abigail: they really delivered. the pressure was on. since the last quarter that they reported, the last -- the stock was already up 46% after huge gains. this is the ultimate stay-at-home stock as folks around the u.s. and around the world want to stay connected. after hours, up 9.3%. i think it may be up a little bit more even, perhaps poised

for the best day since march 23. they put up a big quarter, beating estimates on the top and bottom line. also very encouraging, as you mentioned, growth not abating. third quarter forecast on the revenue side absolutely hire. it seems that this stay-at-home darling is set to stay that way. tomorrow, the stock could be up 400% on the year. these trends absolutely continuing for the pandemic. emily: meantime, apple soaring on the back of it stock. tesla as well after a five for one stock split. the rest of the market, fairly mixed. what was happening? abigail: this is the last week of august -- the last day of august. the day before labor day. mixed markets. the s&p 500 having its first

down day in eight. august, unbelievable. the s&p 500 up 7%. the nasdaq up 11%. the best month all the way back since april. the real standout, it really is just unbelievable, spectacular. the new york faang index, the best month ever. this is a big index going back to what he 14. the buying -- back to 2014. that was the degree of the buying of those big momentum stocks. you could say the fuel for this risk on rally pushing the dollar lower. these indexes nominated in dollars climbing. emily: talk to us about the activity we have seen on the back of the apple and tesla stock split. shares being driven up even though nothing has changed about

the company's fundamentals. any surprises? abigail: the degree of buying is pretty surprising. as you mentioned, value is not created. leanne government said, if you have a -- leon cooperman said, if you have a five dollar bill and now you have five one dollar bills, you have the same amount of money. for the retail investor comedy lowered stock price is still very high. it speaks to the momentum that these mega stocks have. tesla did put up a strong quarter. investors want in on what is working. apple in the past, generally stock split's have worked over a longer period of time. apple since the stock split up 34%. history suggests that a month from now apple should be higher.

whereg exception was 2000 a month later it was lower and a year later, apple was 60% lower. let's hope that this is not another bubble. emily: we will talk about some of those historical moments a bit later in the show and talk about these stock splits. abigail doolittle, thank you so much. this hour.t later plans to sell. havek's u.s. operations run into more headwinds. china now says it must give his blessing -- give its blessing to such a deal. microsoft, walmart, as well as oracle. with more, we have law professor at georgetown university. professor, thank you for joining us. china has basically added a whole bunch of things to its export controls list including

artificial intelligence that would cover the very algorithms so magical inok its recommendation formulas. how big a blow is this to what president trump is trying to do? >> it takes china from being a , a bystander in this game, to being a player in this game. it makes the sale contingent not only on president trump's views, but also on president trump's views. in some ways, i am surprised china did not do this earlier. was the chinese government going ?o say, ok sure, take tiktok

anupam: one obvious possibility might have been for china to turn the tables and assert national security against american companies that are very much active in china. we know that google, facebook, etc. are not in china but there are a lot of american companies in china, including companies that are offering apps. apple, for example, which sells smartphones. tos data is potentially open criticism as being open to spying by the united states. i don't think that is true. but you could always respond in kind. a some sense, this is measured response by china. it is simply say, you do not have all the trump cards. we have a card as well. emily: we have heard at the end

of last week that a deal could be announced in a matter of hours. it still has not happened. do you expect this will significantly slow the process down as they figure out how to handle this? if bytedance needs to approve it, that changes the game entirely. it looks like microsoft's approach or oracle's offer would know in the united states. it is not clear what china would do with it icu -- do with it. that is the wildcard in this whole process. i think one possibility you might see is that they announce a deal and then it is open to whether or not -- obviously, there will be some back channel with the chinese government. hopefully, they will be some kind of understanding that is

arranged. one possibility is to announce the deal and hope the chinese government approves it. deal --mean that that it actually strengthens bytedance's hand. if the deal is seen as a firesale price, you could easily see the federal government same that is not permissible. ultimately, how do you think this plays out? does a sale to a u.s. company close? does it not close and then tiktok is banned in the united states? anupam: i think a sale seems likely because the trump administration has created these inhospitable conditions of the united states.

in california court -- tiktok suing in california court, that option is not as crazy as it might seem a. is a for stability. really that what tiktok wants right now is a delay. it wants time. for example, the chinese government says no. the u.s. government says we will give you more time to work out a deal. that will potentially allow for bidders, a better deal to be on the table. emily: time does bring us quite close to the u.s. election and what happens if there is a changing of the guard and president trump is not in office at that point?

anupam: i think that is very much at issue here. there is a hope that another administration might see this differently. security asserted here, there has been no public demonstration of the national security risks. tiktok has repeatedly said that there is not such a national security risk and we will open ourselves up so you can make yourself comfortable that the data is safe. time,s very much buying kicking the can down the road could change the whole complexion, and make tiktok really the rival of facebook and youtube in the future. emily: so you are saying that is a chance that no sale happens at all? i think there is a real

chance that no sale happens. it really depends upon the trump administration. two possibilities. one, the trump ministration bans it but a future administration unbans it. tiktok ceases functioning that is reactivated in a future administration that is more hospitable to chinese investment in the united states. or it is sold. banned as you recall, is in india right now but they are trying to work with the government and going through the courts to try and revive itself in india. app today does not mean it cannot be permitted tomorrow. emily: certainly lots to follow, lots of possibilities here. anupam chander of georgetown

university, thank you for joining us. coming up, robinhood has skyrocketed past its competitors but the company now paying a heavy price for its sudden rise. we will talk about the latest outages. this is bloomberg. ♪

emily: robinhood has catapulted ahead of its online brokerage rivals with a smartphone app that has attracted an army of young investors. but that comes with complaint. outages, regulatory probes. today, traders were experiencing tech issues. joining us, sonali bostick. a huge impact on the markets today. was that driving the outages

that robinhood experienced? sonali: my clients -- or my sources say that no, this was not necessarily a contributor. today's outages impacted a number of large brokerages including schwab, td ameritrade, vanguard group, which have all been around for much longer than robinhood has been around. we have seen a lot of glitches, even big banks and their high net worth units. these things do happen. muchrobinhood, they are a younger company, about half of their users are first-time users. draw a lot less attention than the rest of the pack. today's news -- a lot more attention than the rest of the pack. emily: bloomberg is reporting that robinhood might get

400-some complaints, four times as many as charles schwab would get. why is that happening? sonali: some of these complaints -- again, 400 is no small number to consumer protection agencies. a lot of them are around the march outage. outage, a lot of people lost a lot of money. the markets were completely slammed. finra, which oversee thenhood, are investigating company's handling of that outage. since then, we have seen a lot of things happen, like hiring hundreds of people to handle those kind of complaints, inapt messaging, and a bigger presence in washington. they hired dan gallagher as their top lawyer, who is a

former republican fcc commissioner. they have gotten a lot more someng this year even amid of these issues. this likelys any of to stop people from trading or to undermined fundamentally trust in the platform? sonali: on one hand, it does frustrate people. on the other hand, you do see that more money has come into , which wasn june after march. we saw they had the highest daily average revenue trade. they are drying and more users, more investment from wall street, and hiring more talent. we do not have evidence to say that this is deterring people .way from robinhood

even though it might tell down this elevated retail trading boom, it is here to say and started really before the endemic had hit. emily: thanks so much for following that one. we will keep tracking to see if there are any updates. coming up, a california consumer bill will not move forward for now, even after amazon came out in support of this controversial the likes of smaller rivals at sea. why he believes amazon is trying to squash the competition. we are waiting on a news conference from president trump at the white house. we will take you there when it begins. this is bloomberg. ♪

facingamazon is criticism. silverman warns that the business would burden small businesses and marketplaces, effectively hurting the competition. he recently spoke with scarlet fu. lawhere was a hole in the where if something goes wrong, there is an understanding of liability that the person who sold it to you is liable. marketplace,ine

what is the definition of a retailer. case ine was a court california that settled that. , amazon's the products, warehouse is a product, ships the product in an amazon truck. it is a retailer. amazon should be strictly liable. amazon turned around and took a bill that it was not supported and through its full force behind supporting this bill, to say that every marketplace should be strictly liable for everything sold on its etsy andace, meaning ebay should have the same burden as amazon. y, we think the

judge would have ruled differently. we are very different from amazon, truly peer to peer. is mildlysaying, this inconvenient for us but so difficult for a company like etsy, this would be crushing. so by embracing this law, we can ets the small businesses on y trying to compete with amazon. >> it sounds suspiciously like once again was opposed to sales tax on amazon purchases, then turned around and embraced it completely. >> even just frivolous lawsuits. suddenly, you have a deep pocket to go after.

a frivolouse lawsuit that cost money to go away. it is interim and's expense, all of which would have to get -- it is a tremendous expense, all of which would have to get passed on to the consumer. right now, everyone can open a for $.20.sy it would become much more expensive. with that which showed people out of this ecosystem -- we think that what shut people out of this ecosystem. >> a platform, packaging things under its own name, operates warehouses, of course is a logistics monster. it is frustrating to be defined relative to ebay or amazon. you have amazon leading the way to not necessarily writing the rules, but guiding rulemaking in some parts of the country. power in ae a lot of

lot of areas. i think the world wants alternatives to amazon. i thing the fact that amazon is pushing through a bill like this is frankly a little bit shocking. ceo josh silverman speaking with our own scarlet fu. -- areup, appleare apple and tesla overbought? the giant rally. we are awaiting a news conference by president trump at the white house. will take you there when that begins, listening for any back-and-forth on china and tiktok. zoom reported earnings that shattered estimates. moremillion in revenue, than it made all of last year. forecast also exceeding estimates. this him ceo will be joining --

the zoom ceo will be joining bloomberg tomorrow at 10:00 eastern time. this is bloomberg. ♪ ♪ ♪

emily: welcome back to bloomberg technology. i'm emily chang in san francisco. apple and tesla shares touching intraday records as their stock split take effect. joining us is the chief market strategist from miller tape back. no actual value has been created in the last 24 hours and still the stocks are soaring. what's driving this mania? couple ofnny, a months ago, we were talking about how every dip in the market got bought, especially in these mega cap tech stocks.

now there's no dips to buy and they seem to go up every single day. give me concern that stocks like these two are getting so overbought on a technical basis that they could see some significant pullbacks at some point soon. my point is these are great companies -- apple computers, their semi-things you can talk about whether it's the amount of cash they have or 5g coming up, but when stocks get very overbought, even if they are going to go a lot higher, stocks that have seen parabolic moves like tesla has, they can see significant kleins before they go higher. it happened many times in the past and i think these stocks are set up for the same kind of pullbacks, 20% or so. emily: 20%? i was going to ask how significant you think the decline would be. white when he percent? -- why would actually 20%? more i was thinking

between 20% and 30%. but if it -- if tesla went down 60%, it would still be above its highs in february. apple could go down 25% and still be above any kind of important support level on a technical basis. i think tesla has more downside than apple, apple might be in the more 10% to 20% range, but my point is when stocks see these parabolic moves, it is normal and healthy for them to see pullbacks. when the moves are parabolic, the pullbacks tend to be -- and still can be healthy. people think 20% is the end of the world but it wouldn't be. is it really retail investors driving this rally or otherwise? matt: i think it's three things -- it's the retail investor. on top of that is the retail investors become heavily involved in the options market in the last couple of months. when the market makers saw those

calls to the buyers of tesla and apple or the qqq, the major etf's, they have to hedge themselves by buying those stocks and that pushes them higher as well. the third thing is these algorithmic trading. when the momentum is going one direction, they keep going to the upside. the problem is, when the music stops, these things are going to go down and the individual investor is going to step away, but those algorithms will sell into a down market. the market has moved too far in both directions now days, so that's why i'm talking about 20% corrections or even more because of this tendency to overreact in both directions. the possiblebout inclusion of tesla in the s&p? is that just a matter of time at

this point? matt: it would certainly seem to be just a matter of time. again -- the index funds themselves are not buying the stocks, but a lot of people are buying it with that anticipation , so that's something that would help the stock. but history shows that is a short-lived situation, because the index funds by those things immediately. they don't wait around and gradually go into a stock. they want to be 100% into a stock when it gets on the index, so you can't rely on that on a long-term basis. emily: let's talk a little bit about what history tells us. we have far more history with apple dating back decades. fair, one is a very different company. what happens back then -- what happened back then could be a harbinger for today? matt: i don't want to sound

overly negative on these companies. they are very good companies, but sometimes the stocks can get way ahead of themselves. has a mixeder, it history in terms of what has happened when they have split in the past. 12 months later, the stock is usually higher, but we have had a situation where a stock drops 20% two months later after the stocks split and then a year after, the stock is up 40%, so you never know on that aspect. the thing that concerns me a most is the relative strength 286. chart is up almost earlierctually at 86 today. above 76 is considered overbought. the last time apple was this overbought was 2005. it's rsi reading got to 93. that was when the stock dropped almost 25% over the next few

months. so when you are comparing apples to apples on the technical side, the stock is stretched and could see a pullback. it's a great company, i just don't think people should chase it. save that money and you will have a great opportunity to buy it at lower levels later on. giving it to us straight, the chief market strategist at miller tape back. thank you for sharing your view with us. amazon is sitting an ambitious goal to make 60% of all shipments net zero by 2030 by reusing renewable energy sources comers sponsor both sourcing and reusable packaging. the head of worldwide sustainability gave us insight into those initiatives. >> our goal is to do two things. one is to go to the source of the packaging material and our packaging lab is constantly innovating to find ways to both reduce the waste of packaging material so we are able to be

more efficient in our deliveries . to that end, we eliminated more than 880 thousand tons of packaging material. that's one point 5 billion shipping boxes avoided. reduced the packaging weight by 33%. these kinds of innovations are key to reducing that waste. we are also investing in circular solutions and providing more information to customers about what to do when those packaging materials they receive , we have invested in circular economy initiatives like the closed-loop fund to increase the availability of me in small recycling. we have also put on a website called amazon second chance which tells customers what they can do to reuse, recycle, refurbish, resell the products and packaging they receive. hired thezon recently

first black executive to join the leadership team. it seems from the outside that amazon is trying harder to elevate women and people of color to leadership roles. what is it like on the inside seeing a woman in leadership at amazon and how important a developing do you think this is? kara: i had the great pleasure of learning from her and working with her every day, she's a formidable leader on a lot of -- and has brought a lot of great experience to amazon. it's exciting to see her turn -- to join the team. i think she's the fourth woman on the s team. i've been at amazon six years and have had a phenomenal experience as a leader and someone who has had the opportunity to in-state leadership developing programs at amazon. it comes from our customer session and just like our customers i demers, having diversity of all sorts across our team is a top priority when

it comes to talent development of developing a culture inclusion and diversity at amazon. amazingn exposed to leadership opportunities, but muchtraining and it's very our everyday conversation with our leadership principles where we seek to include diverse perspectives and the diversification of our s team is just another example of that. my conversation with the amazon head of worldwide sustained ability. coming up, we are awaiting a press conference at the white house by the president. we will take you there as soon it begins. we are standing by. this is bloomberg. ♪

emily: china's chip executives are worried they are next on president trump's list, warning further sanctions by the united states could derail the semi conductor industry. despite resilience in china's chip demand after disruptions by the pandemic. ar more, i went to bring in reporter who covers chips for us. why are these chinese chipmakers so worried? -- the we have seen background we need to establish

his china is the largest market for semi conductors. they are the gateway to the world of electronics, but it really doesn't manufacture much of its own need. the u.s. is by far the biggest producer of chips. what we have seen over the last year or so has been a growing focus of the trump administration on huawei and we have seen that focus on high silicon, which is huawei's chipmaking division. colleaguestives my in asia have spoken to are expressing concern this is going to be more than huawei. it's going to spread to become a country-focusing which is the trump administration wanting to hold back china's chip industry. emily: given the steps the trump administration has taken on other chinese technologies, given what we are seeing with tiktok, are their worries -- does that make sense?

does. think it absolutely china has drawn a target on its own forehead by saying this industry is strategically important to china future. we are going to throw lots of money into making china independent here. with security and military technology, if you are an official or an agency concerned about such things, then you will hear about what china says about dependence and you are going to do what you can to try to counter that. it's a geopolitical thing as well as an industrial policy thing. how have the moves of the trump administration taken so far -- how has that impacted the chinese chip industry to this point? ian: that is a very good

question and it's hard to quantify because there have been a number of policies that andkly did not quite work at the same time, huawei is run by people who have got their eyes open and have been stocking up on chips as far as we are aware, so there hasn't been an immediate impact. the most recent moves were aimed at cutting off the use of u.s. chipmaking equipment, which is also a chokehold, they have apparently had more of an impact and that may well have a very serious impact on particularly high silicon, which is the important part of huawei here. we have been talking about u.s. companies diversifying as a result of this, perhaps choosing other chip providers. even if the moves president trump makes doesn't impact the

chinese chip industry directly, do you think he is coming out to the podium now -- let's listen in at the white house. pres. trump: the best stock market now in 36 years. that's very impressive. withople are very happy their 401(k)s and with their stocks that they have and that's a tremendous achievement. best in 36 years. let me begin with a brief update on the china virus. over the last month, our new cases in the united states have declined by 38%. last week, we announced the breakthrough in testing that 100 allow us to have over 50 million rapid point-of-care tests. these tests return results in less than 15 minutes and many would be deployed to nursing homes. we are focusing very strongly on nursing homes, assisted living

facilities, and other locations that serve high-risk populations, so we are going to have to the 15 minute and less tests and we will have 150 million rapid point-of-care tests. that's something. this evening, i'm a pleased to announced astrazeneca vaccine has reached phase three clinical trials. that's joining another group of vaccines that are very close to the end. hopefully approval. in the united states, we are doing things nobody thought would have been even possible. this is a process that would have taken in some cases years and we did it in a matter of months. thanks to the efforts of operation warp speed, we remain on track to deliver a vaccine on record time. i also want to provide an up date on left-wing political violence we are seeing in democrat-run cities. under my administration, federal law enforcement is working with state and local authorities all over the country to comb through

hours of video, track down riders, looters, and arsonists and bring them to justice. we have just come up with a report that we have arrested a large number of people. it's over 200. you will be hearing about that, but they have been arrested in various cities throughout the united states. we are doing it very low-key but we are trying to help cities. they are in all cases democrat-run, but we are doing the best we can to help them without much of a consent. we like to have consent, for example in floor -- in portland, we could solve that problem in one hour, but the mayor refuses for perhaps political reasons. i don't know why it's good for him to have a city that's falling apart and under siege for 94 days, but it really has been under siege for years if you know portland. to the mayor, i say whenever you are ready, we will solve your problem of violence, we will

solve your problem of crime, we will arrest those criminals very rapidly and you will be able to have some nice evenings in portland. the department of homeland security and the department of justice are announcing a joint operations centered to investigate the violent left-wing civil unrest in portland alone, the federal government has already taken care of and arrested 100 rioters just in that one city. the wave of violence and destruction we have seen in recent weeks and months has occurred in city exclusively controlled and dominated by the joe biden party. if you take a look, the top 10 in the country are democrats. it is democrat-run cities and it's a shame and it can be solved so easy. it can be solved very easily. the violence is fueled by dangerous rhetoric from far-left politicians that human eyes our nation and demonize our police.

our police tolow do what they are very good at doing. we have taken that power away. they are afraid to lose their pension, their job, they are afraid to be destroyed. you saw this when left-wing extremists attacked law-abiding citizens attending the republican national convention at the white house, including senator rand paul and his wonderful wife, kelly and what they went through but other people went through it, too, and that was done very systematically, that was done on purpose, they knew we were having the convention and they want to do everything they could to disrupt it and the good news is the public is very wise to it. they see what's happening and they are wise to it and i think they are probably acting accordingly. left-wing rioters are repeating the same false narrative about america that you hear about -- wherever you hear this from, from people, what they are

saying, how they are saying it, the violence, it's terrible, and again, it is democrat politicians. i don't know that they are spurring it on where they are afraid to stop it but in any event, we are there to help, we are there to get things under control. what they did on thursday night at the white house, just outside of the white house to people that came from all over the is a is a disgrace, it disgrace. and frankly, the mayor, the democrat mayor, mayor balser should have done a better job. she did a very poor job. but at the same time, we had the police -- they were brave and they took a beating. they took some heavy hits. one went down but got right up and two others joined them and they were able to get rand and kelly through. but it was a terrible, terrible thing to witness but other people went through similar -- but not to the extent in terms of taping.

we don't have the tapes as strong but some people went through as bad or worse. the violent rioters share biden's same talking points and same agenda for our nation and even his strange speech today that he made in pittsburgh, he did not mention the fact and he orn't mention the far-left from what i saw, i don't believe he mentioned the word antifa. it's a criminal organization and he did not mention antifa thugs and mostly seem to blame police and law enforcement and went on point after point after point and even talked about those on the right but he didn't talk about those on the left and those on the left are the is the and antifa problem. the rioters and joe biden are both on the side of the radical left and that is so obvious and until that neutralizes, you are never going to have safe areas

in those democrat-run areas. for months, joe biden has given moral aid and comfort to the vandals, repeating the monstrous lies that these are peaceful protesters. they are not peaceful protesters. that is anarchy. you look at the agitators, you look at the looters, the rioters, that's not a peaceful protest. they keep using the term, it's so nice. and behind them, the cities are burning. we could solve it very quickly if they ask us to come in like we did in minneapolis and like we just did in wisconsin where i will be going tomorrow and at least the governor asked me if i could -- i said you've got to get the national guard and he finally agreed to even a small number but they are able to take care of things and that was about five days ago, six days ago and ever since, it has been very good. 13 members of biden's campaign staff donated to a.l. and

rioters, getting them out of jail, looters, they got them out of jail and his running mate, come allah urge them to do the same thing. it is outrageous that they are seeking to shift the blame for the mayhem and they want to put it on the backs of the police, i say it, the police. war on lawst a enforcement in this country and without law enforcement, we would not have a country. we have very talented people that are not allowed to do their job. if you view the radical left power, what you are seeing in the democrat-run cities would be done to every city in this country. every city in this country could be potentially another portland or another chicago where they have had such problems. jailfeat them, we must lawbreakers and defeat their hateful ideology about this country, about america. we must teach our children that

america is an exceptional, free, and just nation and we are preserving and protecting and we want -- they want to destroy our country, they are going to destroy our suburbs, but i think i got a long way from allowing that to happen. the suburbs are protected, especially with the rule changes i made. i took them out of the obama administration, they were going to be made what -- they were going to be made much worse. but we are seeing today is the result of left wing and dr. nation in our schools and universities. many young americans have been fed lies about america in a wicked nation plagued by racism. joe biden and his party spent their entire convention spreading this message while refusing to say one word about the violence. they didn't even discuss law enforcement or the police. those words weren't mentioned. two words that were taken out god" --e words "under

two very important words in the pledge of allegiance. they did it twice. i heard it though one time and i said that's strange, i figured maybe they made a mistake, something happened -- they didn't make a mistake and then they did it later on. "god" outok the word of the pledge of allegiance. we are not taking the word god out of anything. we're not taking it out of our pledge of allegiance, we are not taking the great word god out of anything. at our convention, we highlighted law enforcement heroes and repeatedly emphasized violence has no place in american political discourse. the left swore on police and american history is tearing our country apart which is what they want. they think it's good, but it's gotten out of control, they are unable to control this radical left -- emily: president trump there speaking at the white house,

talking about various operations, the department of justice, the department of homeland security are working on with regard to the civil unrest across the country. that is all for bloomberg tech now. more bloomberg tv is next. ♪

haidi: good morning and walking to daybreak us trail you. we are counting down to the asian market open. shery: and good evening from new york. i'm shery ahn. haidi: china's tiktok change worries, microsoft and walmart falling on fears they could derail