♪ emily: welcome to "bloomberg technology." i've emily chang in san francisco. u.s. stocks recovering from a slide at the close, ending the day flat. apple unveiled a slew of new products, also ending the day just in the green. apple adding three new apple watches to its portfolio. new ipad, new subscription

services, bundling, tv, gaming options, along with a new fitness service which will work in tandem with the watch. for tiktokcle's bid undergoes a national security review. oracle does not offer compensation to the u.s. government as president from amended but does promise to create 20,000 new jobs. tech was up on the day but also or volatile. why was that? sarah: the third straight day of gains for the s and p. the nasdaq, the second straight day of gains of more than 1%. a strong day for tech. some of these biggest faangbutors, your classic names. microsoft, facebook, amazon. this even after kim kardashian

said she would freeze her facebook and instagram accounts starting tomorrow. facebook still up more than 2%. microsoft staging a nice gain of 1.6% today. we are still dealing with the aftermath of nasdaq falling into a correction. the nasdaq is still about 8% or so off a record. if you look at 2020 and the performance, it is unbelievable. emily: apple, first it was up, then down, then ending the day about flat. talk about how investors responded. obviously, we know have has had a huge run. weeks on thele of back of that split. sarah: apple shares are still up 57% year to date. that is an unbelievable gain,

especially considering the fact that we are living through a pandemic and recession. iner the run we have seen 2020, that still could count as a win. when you look at performance on launch days in the past, some days you have seen gains of more than 1%. some days you have seen losses of more than 1%. we did learn more about the subscription bundles, but there really were no major surprises. still, apple shares a little bit higher on the day. all right, we will talk a little bit more about apple now. thank you so much to joining us. dan morgan, senior portfolio manager joins us now.

i want to start with the watch. apple opened the event really playing up the health features of the watch. tim cook talking about the pandemic and the impact it has had on all of us. , two brand-newes watches and also a cheaper watch, as well as a new sensor to track blood oxygen levels. what are the highlights do you? dan: the watch has been one of the fastest-growing segment. over the past three years, about a 40% growth in unit volume. the wearable set is a growing area for apple. they came out with the new series six. then they kind of followed suit with what they had done in the past with their iphones.

that is a lower price. particulars on that category, it is a hot segment, so why not introduce some new watches. it should be a positive obviously for them to complement the big news, which is the 5g phone everyone is waiting on. emily: no news about the iphone today but that is as we expected. what is your take on the increased fitness offerings which will work with the apple watch in a move that seems to take on peloton. no other equipment needed other than the watch. at $995y are coming out

per month, a similar offering balaton in terms of workouts, music, all of these things. it shows that there is money to be made in that segment. peloton went click and has had publicnt -- balaton went and had success. i thought that was a positive add-on to the services segment. they came out with a bundle on that. that,f an attachment to recognizing that the market is very important. it ties into the watch. emily: moving onto the ipads, we are seeing apple run with this idea of every product being a family of products. we have the new ipad air with the fastest processor ever to be in an ipad, as well as the ipad pro and ipad eight, a cheaper

version that might be more attractive to children, for example. the ipad line has kind of made a comeback in recent years. dan: you are exactly right. if we go back and look at the third quarter, ipads were up 31% in revenues. thatis a group or segment had kind of become commoditized. it was growing very fast. sudden, third quarter, , people wanting a device that is inexpensive. i think it is a good positive for them. following suit like with the watch. a lower-priced one in terms of gamead, then upped the

and features. adding different things to the product to be able to allow people to get a good price point. i think they said $599 on that. like the watch, preparing for the upcoming holiday season and setting the stage for the two fastest growing category for them, the watch and the ipad. emily: also, doubling down on theires and trying to use hardware success to drive revenue with this apple one subscription that will include icloud, apple tv, gaming, apple arcade as well as apple news. led as apple'sbil twist on amazon prime. how significant do you think

this could be as a revenue driver? is there a comparison to prime? dan: there is. prime, you get unlimited shipping, you get access to the tv, and so forth. they are trying to do the same thing. they have all these different services and they are trying to put them together. i think it is a good way to go. i think the only thing missing, i remember last year we spent a lot of time talking about apple tv. the four dollars 99 but they.99 service, did not pay a lot of money into content. it will be interesting, with this new bundle, will they renew that interest in apple tv and try to really go head to head

against like a netflix? emily: always good to have you on the show. we will talk more about apple later on. senior portfolio manager at synovus. coming up, oracle's bid for tiktok under national security review at the moment. there is one big thing missing that the president has asked for, compensation to the u.s. government. this is bloomberg. ♪

i have a high respect for larry ellison. he is somebody i know. he has been a terrific guy for a long time. i heard they are very close to a deal.

we will be looking at the tiktok deal with larry ellison and oracle. emily: president trump earlier tiktok,lking oracle and saying the company is close to a deal but there are a lot of open questions. the national security review is underway. we are joined by shelley banjo, who has been covering every step of the review. it is actually a two-track review. hassuries secretary mnuchin promised the president a weekion by the end of this -- or a recommendation by the end of this week. shelly: it will be put into the hands of donald trump pretty soon. we know that members of the national security panel who were reviewing this bid met today and they would decide whether the

president would approve or reject the deal. members from the administration, , come out andr talk it up ahead of time. it is still unclear whether it is going to pass. nothing in this deal resembles anything that president trump had asked for in the first place. emily: the president has demanded compensation to the u.s. government. oracle has promised to create 20,000 new jobs. how will the president react when he finds out this compensation is not part of the deal? and how can they create 20,000 new jobs? snapchat only has some 3000. shelly: the answer to your first question, i think, something spendable. you say 20,000 jobs equals x

amount of tax revenue for the united states, you could peg a number on that that trump could bandy around. thatwas something already , reallyand others compounded from from the beginning. trumplly gives donald something to talk about next week when he is doing the debate for the presidential election. how they will create 20,000 jobs is a completely other story. the two areas primarily would be something like content moderation. there are thousands of people every day going through these websites, removing offensive content. a lot these jobs, companies like facebook and snapchat, right now at least bytedance has a lot of

these people in house. have more than 10,000 people doing that. that is one area. they are building capabilities around e-commerce. if you think of tiktok trying to become a mashup of google, facebook, and amazon, then you start to see where these jobs come from. what is next? the president has until september 20 and he could block this deal, correct? shelly: that is right. the president could still turn around and say, i want an outright sale and send everybody back to the drawing board. wordsnds right now by the that trump is saying about

that it larry ellison, sounds like they are all getting on board. even though i would have to reiterate that this is not a sale of the company, it is oracle taking a stake in it with bytedance, the chinese parent, retaining majority ownership. banjo, thank you so much. meantime, investors are closely watching how the tiktok saga continues to unfold. one is greylock partners, which invested in music.ly. hoffman,nder, reid -- joined us. he is also on the board of microsoft.

basically forcing a deal. id: i have invested in byical.ly, which was bought bytedance. i think what you are seeing here is the first place where we are moving into a multipolar tech world. the tech companies from china are not only doing services for china. company this amazing tencent, they do wechat. it had not come over to the u.s. much other than people who had worked with china or had other kinds of exposure. now i think we will see technology invented in china with global scope that will be contending with tech companies which we in the u.s. have been so lucky for decades to have a broadly free run.

now, i think it is the ringing of the bell that competition is here. i don't think the right response is to go protectionist. i think there is an issue. china does diction is him against its own tech industry. againstprotectionism its own tech industry. i think building bridges versus walls is generally a pro-business kind of approach as well as a pro-humanity approach. we have heard the first ring of the bell and we have had the first awkward response. what we will see a lot more of is tech companies from china becoming globally competitive. caroline: you think chinese technology is becoming more of a threat to american technology? reid: yes. establishforms will the platforms of the future? tended to make those

global messaging products generally speaking within the west coast of the united states. here you have got this amazing set of technologies from tiktok. how do you onboard someone, find videos they want to watch, this is like the next generation of television, entertainment. how do you do that? tiktok figured it out -- or bytedance figured it out before any other company in the world. have muchare going to more from reid hoffman later in the show. coming up, facebook unveiled a new information hub. west alsoardashian moving markets with her latest post, scrutinizing facebook. this is bloomberg. ♪

facebook has offered itself as a resource for accurate information about everything from covid to knowing how and where to vote in the upcoming election. now it is adding climate change to that list. joining us on the phone, kurt wagner. well is this push to provide accurate information rather than taking down misinformation actually working? kurt: we don't have great stats to determine how this works. we spoke with nick clegg at facebook and he said the reason they decided to go with a climate change hub is because they have seen so much success

with the covid-19 hub and the voting section. this they feel is a way they can walk the line between not feeling they have to police every post on the platform around misleading info, and still give folks somewhere to information.ible emily: on the west coast, as rage, wees continue to have been going on a month of bad air here. i do want to talk to you about the stop paid and for profit campaign. she said, i love that i can connect directly with you through facebook and instagram but i cannot stand by while spread hate and

misinformation. fewis just one of a celebrities that will be andzing their facebook instagram accounts tomorrow as part of the stop hate for profit campaign. adding your name to this with sacha baron cohen --adding her name to this with sacha baron cohen, katy perry. 188 millions instagram followers. she chooses to post something or not to pull something. this is the same group leading the ad boycott from july which we talked a lot about. this is kind of the next wave of that. stock takefacebook's a dip this afternoon when kim tweeted.

i think ultimately it will take a lot more than just one day of not posting on instagram. but facebook notices this kind of stuff. certainly instagram does as well. when you have someone of her stature involved, it will require reaching out and talking to people about what facebook is doing. of the timereminded that kylie jenner tweeted about snapchat and wiped a billion dollars off snapchat's market cap. we will be following just how widespread the campaign is tomorrow. kurt wagner, thanks for your reporting. coming up, more of reid hoffman. how he believes the u.s. economy will fare after getting hit by the asteroid that has been covid-19. greylock announcing a huge new fund.

this is bloomberg. ♪

emily: welcome back to "bloomberg technology." i'm emily chang in san francisco. it back to apple's launch, no iphones around, but they had a series of subscription bundles. spurstreet hopes it will more growth in services revenue, as well as new watches and ipads. you have a very nuanced take on all of these announcements. i want to start with the watch, and of course, apple playing up the health care aspects of these new watches, and how critical the watch has thus far been to

driving more health awareness. is mostificant, or what significant, in your view, about these watch it reveals? julie: the most important thing here is that apple is making strong moves upon what i call fluid and healthy. priceombination of lower points, family programs, features that appear -- appeal to children and work out for beginners will help them attract a bigger audience. their core audience is still too small. apple has always had an aspiration of playing a significant role in the health care space. doing things like adding blood , being able to measure that checks and other box for them. it could go beyond heart disease and puts them on track to become more part of people's day-to-day lives. emily: where does apple go from here when it comes to the watch?

put a lot of the gears, if you will, in place to make this something bigger. obviously there is potential bennies to be realized. -- potential that needs to be realized. it will take ae lower price point to get out to consumers. talking about critical mass that 20% or mass-market at 50%. that's listedngs as where they are headed is doing a better job at presenting consumers with insight and nudging them to act on insight. if it's my blood pressure is ith or my pressure is high, but you are on the verge of cardiac arrest, you should probably go to the hospital. driving broader adoption at lower price points. i don't know that they can do this on their own. they named -- they may need to depend on the ecosystem, the

health payers or the u.s. government for those on medicare that will somehow this smart watch has a positive roi in terms of driving down the cost. if we tap into the services bundles that they are rolling out, discontinuing to provide seamless services across their devices. while apple may not be number one in terms of the number of uses in tv, music wargames and so forth, we know they have high-quality services. the seamless operability or use across their hardware platform, including the watch, will continue to serve them well. emily: how are you expecting this to play out in the holiday quarter? we are expecting new iphones to be unveiled next month. quarter,, a booming the last quarter of the year for apple, through the holidays. they have new subscription bundles that were in a very

difficult economic time with so many people losing their jobs and struggling with keeping themselves connected. what is your outlook? julie: there is the total cost providing education. apples and others like it that are building consumer products will continue to do well because it's necessary for folks to get access to services remotely. certainly, bundling their services, as well as the free 30 days up front in the trial period gives consumers an opportunity to trial the services at a lower price point. they stick with it once i get the opportunity to experiment with it. thank you for sharing your insight with us. apple is one of the most successful companies in the world. as we see by its $2 trillion market cap. partner just raised

another billion dollars to invest in what they hope will be the next generation of big tech companies. linkedin cofounder told us in an exclusive interview, this has been the strangest year of his life, yet they are striking plenty of deals. sometimes the founders never meet in person. i asked for the outlook on the economy and how the pandemic will play out for silicon valley. >> it's very strange. we have, on one hand, this accelerated start market -- stock market due to fiscal policy, yet an asteroid has it the economy. my heart goes out to people in those industries, whether it's retail or any of these things that has just left pain and suffering a lot -- across the workforce. with happening to jobs and restaurants. to some degree i have started

thinking, what would a new deal for getting restaurant started and s&p's started, how would we do that because it's really important for all of these things. when you are in the tech space, the part of this being is most of what's happening is massive acceleration in terms of digital transformation. two months into the crisis and there was twomic, years of advancing digital transformation. in two months. we have to live with these tools. this is the thing that is happening. generally speaking, with these , we are already working towards that, what does that future look like? >> you think that tech will be impacted? we saw a big selloff in the public markets. we have seen private tech companies lay off some of their workforce. reid: tech is about building

into the future, many tech cloudies are -- the smoke is also the -- is also accelerating into the future. tech companies are acquiring more customers. interviews are now being done in videoconference. all of these different tools are being accelerated. i think some of the early layoffs was a combination of we will have volatility and uncertainty, and how do you prep for it. how do you focus on the things you are doing in order to reset. i think a lot of those resets have happened. i think a lot of tech companies said, we did the reset, now we are getting back to planning out for the future. i think that is more the truth than layoffs for the tech company. emily: you mentioned air b&b.

the co told me that no matter what happens, travel will never be the same. never, ever. they are planning to go public and there is an argument that air b&b should have gone public sooner. how is the company doing at this point? publichen a company goes it has recovered its footing and it sees a vision of the future. one of the things that you look at, the kind of thing that air b&b brings, which is the network and community, allows it to be adaptive to win markets change. travel is changed. when people go, maybe i don't do as much international travel, but maybe i do domestic travel. i still want to get a different experience to have a break from my life. way that do it in a isn't lots of people in one big building where i have to go up

and down elevators because of the pandemic. the thing, i can rent a house. networks allow hosts to be adaptive. they can say, here is what we are doing for domestic travel. emily: you have probably supported joe biden. if he wins, what does that mean for tech and business, and what if trump remains in office? reid: if you go to your average business presence -- person and say would you rather have a stable environment with a unified society and higher taxes, or would you rather have lower taxes and everything falling apart? every business person will say i will take door a, not b. emily: you have this administration and both sides of the aisle putting her eyes on facebook and apple are facing antitrust scrutiny. do you think these companies

need to be broken up, especially given the china threat? what is the path forward? reid: i am a strong opponent to the breakup because i do think we are in global competition. he won our competitors to be strong. i am a venture capitalist, i invest in startups. if i thought that was the suppression of startups and i would have a moderately different answer. i think there is lots of room for startups and for starting new companies. even as these large companies continue to come down and scale. you need to look at global competition of products. does not mean just let companies do whatever they want. , you need to break up to say, how do we shape it. we would like cap manufacturing jobs back in the country as part of middle-class jobs. how do we make that happen?

the answer is technology. kelly get robotics in the right manufacturing done? as opposed to saying stop, i would say, these are outcomes that we want more of, these are what we want less of. how do we make that happen. the next question is, is that regulation? you create a regulatory agency and someone says, don't do anything until i tell you it's ok to do, that's not a good globally competitive stance. emily: reid hoffman at linkedin. we will have more of that conversation later in the week. coming up, snowflake is giving investors a rare opportunity to disrupt amazon. competition heats up among cloud providers. a preview of snowflakes public debut. we are expecting it tomorrow. this is bloomberg. ♪

emily: snowflake is riding a wave of enthusiasm, highlighting optimism that the young cloud computing company can hold its own against the industry's toughest rivals. our seattle bureau chief. tell us how snowflake is getting companies like amazon some stiffer competition. for thef the reasons massive enthusiasm about snowflake is for what you mentioned. they operate in a crowd space -- cloud space where rather than chasing amazon, they operate on their own. at amazon's big cloud company, a lot of -- conference, their analysis had to do with upgrading their own competing

process so it can can people at snowflake. that's unusual. most parts of the cloud market goes the other direction. everyone wants to match amazon. emily: how optimistic are investors about snowflake? we have been covering the fact that it seemed like the ipo nowow was a lot to shut, it's open. now you have this flurry of companies coming out of the gate, including snowflake. how attractive do you think this offering is going to be to investors in this environment? bumped their ipo price range up to $110 a share to 75 to 85. part of the deal is a private placement. salesforce snapped at stakes in snowflake. i think that gives you a sense of how enthusiastic investors are about this deal with people trying to get into it in the last minute. company both competes with

and partners with microsoft, google and amazon, the biggest cloud providers. it have taken a lot of customers by creating a product that's better and snowflake ceo told me last year that because of most of cloud users are on amazon comment in order to get business , his product has to be better than amazon or people would not switch. they would use the aws product. the focus is the fact that they have taking customers as a vote of confidence in their technology. that is what investors are staying in track of. emily: obviously we will be covering snowflake coming out of the gate. in.k you for weighing a big week for ipos. a couple of other companies coming out of the gate as well. still ahead here it with millions continuing to work from home, how secure is all your data? more vulnerable than ever. we will talk about it with crowd

strike ceo. ♪

millions of people around the world are still working from home, including yours truly, more bad actors continue to take it vantage of more affordable company networks. the cyber security firm crowd strike has seen an explosion in cyberattacks in the first half of the year. manufacturing and telecom industries are two popular targets. joining us for more on the new findings, crowd shrikes ceo and cofounder george kurtz. how much more activity -- how many more threats are you seeing right now? george: just to give you a

41,000 keyboard breaches. those are people behind the breaches trying to get into the company. all of last year was 35,000. we have seen an explosion in the interactive nature and try to get into companies, and a lot lot was driven by e crime and ransomware. to us about the biggest threats that you see, and where specifically you are seeing acceleration. we are seeing eke rhyme continue to up their game. what we have seen is that the ee crime actors focused on andtizing their access about things they do have taken it to the next level. a have taken a sophisticated techniques that we seen from actors and applied it to their craft. in the past you might have gotten something that that click

encrypted.ur pc got we are seeing crime actors break into networks, placed the malware and then activate that malware and charge much more in terms of the ransom rather than $300 per pc, it could be several millions of dollars for large companies to unencrypted data. i want to zero in on china. we have seen a frosty relationship between the u.s. and china. some folks on the show have called at the beginning of a new cold war. tiktokseeing the situation continue with new twist and turns every day. translated ining the cyber landscape? toknow that hackers linked china are always very active. what kind of fresh activity are you seeing? george: if you think about the time we are in, there

is nothing more relevant on any information on covid-19. that could be therapeutics, vaccine by thehe vaccine itself. is the one universal topic that everyone is concerned about. we continue to see this. china has been very active in the theft of intellectual property. from our standpoint, the environment continues to get worse and it gets worse because people are not even in the office. thesere trying to protect new systems with legacy technologies america out of the office and the nation state actors have been very good and are sophisticated in getting into these companies and feeling that critical, intellectual property. do you have national security concerns about tiktok? from a tiktok perspective, i don't use it, i don't know much about it other than my kids use it. at the end of the day, let the

politicians sort that out. of thesek about any large service providers and the information they actually have, it's incredibly valuable. a lot of it is private information. it is ensuring that is not used for malicious purposes. i think going to that exercise and just understanding that is something that is a giving to understand and we will leave it to the politicians. emily: we have a big election coming up, how concerned are you about the vulnerability of the selection given that so much is going to happen by mail and people can get to their mailboxes? george: we have been voting by mail in a long time. when you look at the exposure is something we have to be concerned with. can we be concerned we are protecting the integrity of the election.

everything from the physical world to the electronic world. i think at least in 2020 there are -- there is a much more heightened awareness of things out there on the cyber side. federalit's a government or local government to make sure they protect those critical assets in the electronic world as well as the physical world. emily: we have a host of ipos coming this week, including snowflake. we are also expecting unity, j went crowd strike recently public. you have advice for folks coming out of the gate, especially in such an uncertain environment? george: last year we went public and i think the timing was fantastic. we were able to get out and perform well. this year it was interesting. whohe beginning of the year knew if the ipos would get out. i think a lot of quality companies out there like snowflakes and others. it's exciting for me to watch to see how they are received.

from an investor's standpoint there are high-quality customers out there and i think investors have a big appetite. given that this working from home think will go on for some time and you have companies like twitter saying employees can work from home forever if use sell to enterprises, but what can we as employees and individuals do when we are try to get our were done from home but sometimes it's difficult to log on, it takes more time, what are some best practices for folks in a remote work environment? about workn we think from home we have a broader view, which is work from anywhere. i don't have a crystal ball, but i know we will go back to the way we were doing things. work from anywhere is a broader statement thin work from home. what we haveout

seen in the past from covid-19 and making it look like it came from employers. see something, say something is the best advice. on the corporate side, as people move to a digital transformation strategy, you- cannot have digital transformation without security transformation. that's where crowd strike comes in. protect the workers at home and the cloud workloads. i think that is important as we go through the process. we see a much more sustainable trend in digital transformation over the coming years because people will either have to transform or die. that's a harsh reality of this current environment we are in. emily: crowd strike ceo george kurtz, always good to have you. thank you for warning us about the threats that are still out there. that does it for this edition of "bloomberg technology." australia"daybreak:

is coming up. i am emily chang in san francisco. this is bloomberg. ♪

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your connection doesn't. so how do i do this? you don't do this. we do this, together. bounce forward, with comcast business. >> good morning, welcome to "bloomberg daybreak: australia." i'm haidi stroud-watts in sydney. heri: here are your top stories is our. tech helps offset weakness in financials. investors now looking ahead to the fed, boe and boj decisions. china gets a win on trade is the wt a