♪ emily: welcome to "bloomberg technology." i'm emily chang in san francisco. technology shares leading the declines, apple, facebook and microsoft pulling the broader markets down on the back of fed chair jay powell saying he is not sure how quickly the economy will recover, intentions rising between the united states and china. now, the trump administration is calling on gaming companies to

provide administrator -- to provide information about security protocols with chinese behemoth tencent. meanwhile, bytedance and oracle have tentatively agreed to a deal has to be approved by the chinese government, and there is significant confusion about timelines. let's check in without markets ended the day with senior markets correspondent scarlet fu , leading declines but outperforming all year. what has been happening? scarlet: there was a lot going on and to some extent, you can blame the federal reserve, j powell saying rate will stay at current levels, lower for longer, but investors were expecting a dovish surprise and were left hanging. when you look at equities, most of the damages from the large cap, big tech names, but it was a broad decline, eight out of 11 sectors in 20 active 24 sectors finishing lower.

outperformance today were value encyclical stocks. if you look at the past two weeks, it has been a clear theme. the two best-performing groups were materials and industrials and the worst performers were tech and communication services and tack is pretty much apple and microsoft it for communication services, facebook and alphabet. emily: what does that mean for the growth trade led high-tech? scarlet: no one is ready to say the growth trade is over. we have done that a couple of times and it has not paid off. in scale and in terms of duration, we are not accustomed to thinking of rotation as being sustainable. since the pandemic began, by my count there has been at least eight instances where value has outperformed growth. if you look at the bottom 10 of the chart, it is a red section where you see value doing better. but they altered up to be head fakes. the question is, is the tech

pull back a simple correction or something bigger? if you look at the equal-weighted index for the s&p 500, it is down 4% year-to-date, and one analyst points out it suggests the downside risk to the overall market is limited. thank you sot fu, much for breaking that down for us. i want to get to tiktok next, and the latest news that president trump is now scrutinizing tencent. i want to bring in anna ashton, senior director of government affairs at the u.s.-china business council. anna, i mentioned there is still significant confusion about what happens next with tiktok's. we know bytedance and oracle have tentatively agreed to a deal, but the president has to sign off on that. we don't know exactly when he has to sign off on that, but what is your general belief about how this will play out? anna: it is really hard to say,

emily. overall, executive orders related to tiktok and we chat have created huge uncertainty for the business community, and that isn't going away. but there is a sense there is going to be more executive orders coming. this is the underlying issue and anytok and wechat chinese company that might be in a position to collect data on u.s. citizen. there is a national security law in china that allows the government to command any chinese company to turnover that some massivering change in the law, that concern is going to drive more action from the administration. emily: what do you make of this news about tiktok that the government is now calling on gaming companies, the u.s. government calling on gaming companies to shed light on their data relationship with tencent,

a huge company that has tentacles around the world, and certainly broader implications on chinese companies trying to do business in the united states. anna: definitely broader implications but tencent is the parent company of wechat, and that wechat executive order on august 6, was- issued at the same time as the first tiktok order. and this comes down to concerns -- concerns among u.s. policymakers, not just in the administration, about the possibility of that any of these companies could collect u.s. citizens' data entered it over the chinese government, and what might the chinese government want to do with that data? so not surprising that a follow on from the wechat order would be to look at other data relationships tencent might have with business partners in the united states. so what companies are we talking about?

if you are a chinese company and you are wondering if your relationship with u.s. companies is going to be further investigated, who is on that list? anna: honestly, what we are is nog about here, there limit to what you might imagine falling within the scope of this, because it has been rolled out with such broad language under broadly-expressed concerns. a highlyving in technical error that is becoming more so. the internet of things means almost every big industry has some sort of big data operation going on with it service to customers. any chinesens that company trying to do business in the united states could --entially subject potentially be subject to these same concerns. but right now, we are seeing companies that are specifically that, of applications

their entire business model is in collecting data, and how they use that data to provide better services to their customers and to better target advertisements and things like that. so for now, we are seeing a focus on tech companies, but it could certainly go beyond that. we have seen this concern in when a financial company expressed its desire to acquire an american company, i think an insurance company. they got denied for exactly this with theircern ability to collect data on u.s. citizens. emily: let's talk a little bit about the tiktok mechanics. obviously, many outstanding questions. what are the outstanding questions in your mind? several the midst of republican lawmakers saying they are not going to approve a deal if it doesn't meet their

specifications. anna: there are a few concerns. to start, there are a few tiktok executive orders, when issued on august 6, when issued august 14 the august 6 executive order gave a 45-day deadline, essentially next monday, for tiktok to be sold to a u.s. company. the august 14 executive order gave a 90-day deadline and also mentioned the committee on foreign investment in the united states would have to approve any transaction. we don't know which deadline is in effect, whether this oracle proposal has to be approved and enforced by monday, or if they plan to hammer out the details between now and after the election in november. abouto don't know details the oracle-tiktok plan. we don't know if this is a plan to acquire tiktok outright, or tiktok's u.s. assets and all the

data tiktok collected, and usesver algorithms tiktok to collect that data, or whether it is something less than that. if it is something less than that, we have heard from people like senator marco rubio, senator john cornyn and others, that that is not sufficient in their minds, that that doesn't l.a. the national concerns -- -- y nationalesn't alla security concerns about the chinese government. but if it is more than just a partnership, we could see where the chinese government would say, we don't want to see our chinese company to sell the rights or proprietary datamation behind this collection algorithm, this ai is using, because the chinese government has also asserted its rights to approve or disapprove on any transaction that touches nonsense to technology -- that touches sensitive technology.

so there is a lot up in the air about the deal and when the deal has to be approved. companyy the way, that the financial company tried to buy was money gram, but the u.s. opposed the deal despite huge lobbying by jack ma, and that one didn't happen. anna ashton with the u.s.-china business council, thanks for sharing your thoughts, obviously still many outstanding questions. techg up, a strong wave of ipo and zoom logic, -- and sumo logic. we will talk to the sumo logic ceo next. this is bloomberg. ♪

software maker sumo logic this week raised 326 million dollars in initial trading on the nasdaq, shares jumping as high as 25%, the listing half on the heels of snowflake debut. we spoke to the ceo's of both of those companies yesterday, and joining us now, sumo logic president ramin sayer. thank you for joining us. you saw some uplift, not double like snowflake or 50% like j frog, but they left a lot of money on the table. what is your reaction to the debut today? rain: first -- ramin: first of all, it was a joy and not something most companies get to do, so it was a very emotional day for all of us. it is a day that we were filled with joy and gratefulness. market, ifins to the

you are playing the long game and want to build a durable company, it is not about the first few days of trading, it is about continuous, quarter after quarter of deliveries, so that you cannot only build shareholder value, but continue to go after the large, $50 billion number we are trying to tackle. playing the company long game, in the last short six months, you have been thrown a curveball. i'm curious why you went public now, did the pandemic accelerate your ipo work if you pause -- your ipo, or give you pause? ramin: you can't just plan it a few weeks to go public. it is something you have to prepare for,, like game day.

however, we determined with covid that it is a tale of two tells. number one, we had to stop and focus on what matters, and that is our employees and customers. that is a priority in the near term. once we were able to get our hands on that and make sure the safety and productivity of our employees, as well as helping our customers, who needed us most during this time, we have been reliable and secure the software we deliver, and felt comfortable to resume our thinking about entering public markets. therefore, we decided to focus on this timeframe, and we are grateful to have been able to do that. powerssumo logic real-time analytics and you work companies that, have been soaring in the midst of work from home trends.

how has the pandemic and shift to remote work impacted your business? ramin: i think it has been interesting, because if you look internally within sumo, prioritizing the safety of our employees, it is not similar to what we have to do to help our customers with the safety of their employees. i mean security, analytics and intelligence. as more employees now have to work from home, the threat posture and vector as we call it in the security space, becomes more complex and risky. on legacyto rely tools that were architected for yesterday' is problem, became a huge challenge for customers. so we saw the acceleration of a lot of enterprises, not just because of movement to the cloud are digital, because of the necessity for security when employees are home and the data is distributed. then do you expect

the pandemic, as it continues the uncertainty facing the economy, the lack of clarity about the next year, perhaps two years, how could that impact your business going forward? what challenges do you see on the road ahead? what youu can control can control. no one predicted covid. and in good times and bad times, we have a philosophy here that centers around our culture, and that is our customers. as long as we innovate and continue to deliver value in our ride thesee can times up and down and continue to be there is a partner, not just a vendor for our customers. that is what gave us confidence during this time. in fact, as we saw in the first though wevid, even didn't slow down in terms of the workforce, we saw the increase of data being analyzed and

managed by our platform for our customers per its of the flexibility we provide our customers because of an unknown change due to the pandemic is a great testament to what we built for the new, cloud era, the digital era we are going after, a $50 billion market opportunity. we are happy to be in this position. emily: talking about the cloud , what are growth opportunities you see? talkingveryone has been about cloud and digital and digital transformation. for any company to digitally transform, they have to build a modern application. in doing so, as you build modern applications, it creates what we refer to as a tsunami of data. because these new applications are architected differently. these new applications needed different security architecture.

better build,m manage and secure modern apps ultimately deliver delightful experiences for their users. emily: have you seen much hold pull forward mad, and could that mean less demand in the quarters ahead? ramin: besides some of the impacted industries with respect to travel and hospitality, we can see that generally, we have seen different trends by industry and geography. so i don't think it is necessarily pull forward demand that is causing slowness in the future, if anything, pull forward demand is accelerating that $50 billion that i referred to. that is locked in the data center, and if anything it is going to accelerate the digital laggards to those that are digital leaders. , presidentn sayer

and ceo of sumo logic. big day for you, thanks for joining us. coming up, uber is looking to sell part of its stake in a chinese ride hailer. we talk about that next. this is bloomberg. ♪

rohit: uber is looking to -- emily: uber is looking to sell part of its $6.3 billion stake in chinese ride hailing company didi, to raise cash and boost its own share price. uber is trading well below the share price at in which went public in may 2019. to discuss, we are joined by rohit kilkarni of mkm partners, who currently has a buy rating on the stock. rohit: uber is becoming smart

capital allocators, focusing on resources and geographic segments they think they can win . they are either number one or number two in ridesharing and delivery. if they are contemplating the , i don't think they need cash, they have enough cash and liquidity right now. but if they get cash from selling their stake in didi, aggressive. more they acquired postmates, other companies, they been aggressive recently. so i see dealmaking coming to the pike. emily: the uber ride-hailing business has suffered dramatically, although uber eats has grown. now is didi doing in china, giving the pandemic and just

general, -- just environmental term or? has fared a little better terms of the recovery in the slope of the recovery that didi has had. they are probably couple of months ahead in terms of recovery in china. where uber iss operating, the slope of the recovery and reopening hasn't been as smooth. is doing better as compared to uber and lyft here in the ,.s. in terms of ridesharing and there may be somebody that can strike a slightly better deal. emily: how would you like to see uber use this cash, if indeed they are able to offload the stake? rohit: i feel there are two

segments that they are focused on, stating the obvious, ridesharing and delivery. there are geographies they could perhaps do better in, latin america is one place where there is an opportunity for uber to be a number one or number two player. are going they i there, aagainst did chuxin way to consolidate the market tend be a clearer, number-one player in latin america. that is one geography i think uber needs in terms of what the future should look like, and with extra capital, they could be perhaps more aggressive there. emily: what is your outlook on the ride-hailing business in general, given it looks like we have more uncertainty i had -- more uncertainty ahead, the

arrival of vaccine gets pushed up farther and farther and it could be sometime before many people feel safe getting into and uber again? you asked me this question three months ago, i would've expected the shape of the recovery to be better. you have heard both uber and lyft talk about july and august, and things were slightly softer than what the street is modeling right now. both are still down 50% year on year. we had expected slightly better trends. going forward, uber has a slight edge, they have eats and people like uber as a stock, but structurally speaking, i like uber more than lift given simply -- more than lyft, given simply its investments and their scale

in most geographies. how ridesharing looks next year, at some point there is going to be a consolidation. on uber.hit kilkarni we talk about the next ipo today coming up.

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♪ the covid-19 pandemic ushered in a new era for telemedicine. welcome back to "bloomberg technology." i'm emily chang. mwell went public today, shares surging in their debut on the new york stock exchange. we are joined by president and .eo of amwell, roy schoenberg roy, thank you for joining us. the neuter of telemedicine never looked stronger. the pandemic accelerate your public plans? roy: it didn't accelerate the

going public plans. it definitely made it easier for us as we meant public, took slain the role of telehealth. thelain -- two role of telehealth. a year ago, we would've technologythe role of in health. i don't think we need to explain that today. provides the backend for virtual services that enable doctors to visit with their patients. what does your outlook for how much more this business will grow? as i understand it, telehealth, telemedicine hit its peak in april and hasn't seen as much growth since then. roy: that is a great question, because there are different types of telehealth. we are just turning the corner on every buddy' is understanding

of what this would do. there is the usual type of telehealth people are getting familiar with, which is telehealth for urgent care, where you are stuck at home, you don't want to end up in an er if you have any merging issue, and people are using telehealth -- an emerging issue, and people are using telehealth to get with the physician. as new alternatives are beginning to open up, we expect that to normalize. however, the bigger part of telehealth we do is not in urgent care, but for empowering clinicians to use telehealth for patients they already have a relationship with. these are chronic patients, patients with cancer, heart failure, diabetics, patients that need to be seen again and again and again. that patient population has become the majority of telehealth we do. in the lesson learned from the pandemic is, everybody is

saying, why didn't we think about this earlier, because it is such a relief for everybody to do health care that way. that part is trending up, and is never going back. it opens up the door for a complete re-imagination of how health care happens for the people who are most vulnerable. to us about growth opportunities that you see. you have got some consumers who have been doing this now for the very first time, and there are newainly, potentially huge avenues of growth ahead. roy: where do you start? peoplelity is that, for are not very sick, who don't have any chronic conditions, telehealth stands to become a bigger place you can go to when you have a new, emerging health care need, to the point that the

use for telehealth for primary care is going to escalate. there are so many people who don't have a pcp or can't get to a pcp, and telehealth can grow into delivery more and more comfort, knowing that is the first ways you go when you did health care. that is going to be a big part of the growth. the second part of the growth is that when you think about war nest think about where most health care dollars are going, to that patient population that requires frequent care, the name of the game to them is, can we help them using those technologies to get this chart from the hospital sooner, to get more of the types of health care they need to deal with their condition to come to them or surround them and be better coordinated. in every one of these elements, we are seeing outstanding realization during covid that telehealth can do so much more than whatever but he envisioned it could do, even six months ago. every one of these is a profound

impact on how health care is and health care is a bigger part of the gdp, chronic patients, elder americans, there is an opportunity that we are just turning the corner to even realizing is right in front of us. emily: google invested $100 million in amwell, and google has its own to health ambitions as well. are there any opportunities to partner there? roy: yeah, the matchmaking between us and google is the gift that keeps on giving, or whatever the term is. there is an understanding that, for this technology to serve people, to make health care or surround us where we want to be, it does not only getting connection between physicians and patients. it is a lot of other technologies like ai, machine if you pointsors to google technologies, that are

going to do their part in making sure that health care surrounds you. it needs to be understandable, it needs to be intuitive, it doesn't have to be as painful as it used to be for so many generations. so blending together the elements that touch people directly, google is very good at this. we have the ability to escalate and understand what is wrong with this person, and the need to get health care in front of them is the construct of bringing the two companies together. there are a lot of other avenues we are exploring together. google has an astounding world of technologies that can be helpful. but this is the thinking, and it works really well. emily: let's talk a little about profitability. because as you have been growing, you're losses have been widening. what is the timeline to profitability? roy: we have included the and continue to be very open about it, that this is

still a work that will take a couple of years to get there. the realization is, and we have been fortunate with banking over the years and understanding that it is not a steady state reality in terms of the opportunity coming up. we want to make sure we have the resources in order to capitalize on completing the dimensions of telehealth that are opening up. we have heard from cms only recently from central medicare that they are going to begin to cover telehealth. we want to be ready for that capability, for that revenue opportunity as well. about ourry bullish planet terms of transition to profitability. end looks like from the behavior and everybody joined -- everybody who joined us today to become part of the company, that it actually makes sense to everybody. emily: we will definitely be tracking your progress, roy president andwell

ceo, thanks. with a slew of new ipo's, what are the signs that these companies can whether the pandemic? contra fund manager spoke exclusively with our eric on how he has managed to beat the s&p 500 by an average of more than three percentage points every year for three decades. ♪ i would say that i feel great about the companies i own in contra fund. they are well-positioned and growing and extremely well-managed. pandemic -- well-managed before the pandemic. what has been unbelievable ended firing -- unbelievable and inspiring is how well many companies have managed during the pandemic, here we are, having a zoom interview, erik.

the technology has made this pandemic relatively tolerable for many, many people and many companies and i am confident the companies i own are going to resume the growth and continue comesive after ea vaccine out, and we can finally slay this unnatural and frustrating beast we are all fighting right now. so i feel good about that. but certain companies have benefited more than others, and i always prefer to invest in companies that are doing well right now. so i would say the fund is in work from home, study from home beneficiaries, then not.- than i am not that big in airlines or hotels at this moment.

but they come as you know, will benefit when the pandemic finally ends. amazon has been an unbelievable stock, extremely well-managed, a continued opportunity as e-commerce continues to gain market share. think about it this way, erik. who wouldn't want unbelievable selection, great prices, and the convenience of having your purchases delivered in a day or two, right to your very doorstep? if amazon continues to execute, i am sure that it will be a good stock going forward. it has had a great run and you make a good point that many covid that if a series have appreciated it a lot -- covid beneficiaries have appreciated it a lot. if you said what i rather own it for the next 10 years or not, it is clearly a long-term buy.

microsoft account for a big part of the russell 100 growth. is that a barrier to position size for you, or are you willing to concentrate the contra fund even more than the index, if you like the stock enough? in a funny time where the big companies seem to be very well positioned. will accruesumably to their profits going forward. but as very large companies, it is harder to grow very rapidly over time. if you are a $2 trillion company like apple, maybe you will be able to grow 10% or 15% a year for the next five years, but you probably won't be able to grow 50% a year. that is a challenge for a bigger fund like mine, to be able to invest enough in very

fast-growing companies to make a difference. ik: d worry amazon, facebook, alphabet, are getting too big and might be targets for regulation or even antitrust action if there is a democrat in the white house? will: i agree with jeff bezos on companies that big should be monitored, and that is a good thing. it is important to have governance, and regulators making sure big companies are doing the right things, and operating fairly. bodies that regulatory and press concerns become a distraction to management. you know, i want my company executives focused on their customers and trying to delight their customers. i don't want them distracted by having to speak with

congresspeople and respond to rumors, and this sort of thing. that., i do worry about emily: bloomberg's erik schatzker speaking with will dan off, fidelity contrafund manager. up, elon musk has his sights on satellites. where the tesla founder hopes low-earth orbit will help him succeed where others have failed. this is bloomberg. ♪

♪ few years, someone comes along promising to disrupt satellite industry,

burning cash before ambition crashes down to earth. elon musk's wants to fill the skies thousands of satellites to bring the internet to isolated populations. for more, i want to bring in ashlee vance from bloomberg businessweek, who has been reporting on elon musk and his ambitions for some time. talk about the progress elon musk has made on his satellite ambitions? ashlee: the progress has been dramatic in a lot of ways. they put up an internet system called starlincoln put up 700 sidelights took power this thing. -- 700e aiming to put up satellites to power this thing. they are aiming to put up thousands more. that is more than anyone has put up in history. want to make sure that

they are cheap and affordable, all the hard stuff that goes with it. when you look up at the sky, it is so much different than when we look up at the skies as children, and you see multiple satellites almost any time you gazed the stars. i'm curious, is this good for our environment, the space environment? ashlee: i don't think people realize what is happening yet, which is basically, space has gone up for sale. up 700has put satellites. before that, there were 1300 satellites orbiting the earth at any given time. so they have already put up this massive fraction, and we are talking about, in the next few years, going to 10 times that many satellites going around the earth. and spacex sees not the only company trying to do this. amazon, lots of smaller companies trying to do this, so it is dramatic.

whether it is good or not, these satellites do come back down to earth and they burn up in the atmosphere, but there is no question that the heavens as we know it are changing dramatically in the next few years. i don't think many people have been paying attention. emily: how well positioned is spacex to meet its goals compared to other companies? onn musk certainly delivered grandiose plans when it comes to cars and when it comes to rocket launches. this is another thing he believes he will accomplish, whether it is good for the environment. , he is in a lot of ways uniquely positioned to do this because spacex is making the satellites and elon musk as assets that elon musk -- elon musk has access to the rockets

as well. he has been doing one or more each month. amazon wants to do similar services. jeff bezos's company has yet to fly a commercial rocket successfully, but if they want to put up their satellites, they will probably have to go to spacex and ask for space on the rocket spirit so it is a question of how many rides elon wants to give them, or these other companies are going to take a long time to catch up. the big question is whether his company makes money at all. so elon might beat everyone putting thousands of things up in the sky, and just like other sunlight programs you mentioned that have failed in the past, this one may end up being a money loser as well. emily: i know you will be charting the progress, ashlee vance of bloomberg businessweek. thanks for taking the time to join us. for more, check out the latest

edition of bloomberg businessweek out now. which tech ceo's have done a better job handling the company response to the pandemic. on the from glassdoor, leadership, and the rankings may surprise you. this is bloomberg. ♪

♪ leadership has been especially challenged during the covid-19 pandemic, with senior managers having to make very difficult decisions. glassdoor is really which tech ceo's have been outstanding leaders, and what employers are looking for. in more, i want to bring andrew chamberlain, she is an executive at glassdoor. i understand mark zuckerberg made the top 10 in the u.k., but

isn't even in the top 25 in the united states. what are the standout trends? andrew: this is the best of the best, the top 25. three things these companies have in common with their ceo's was clear and transparent communications so employees know what is going on during the pandemic. second, providing flexibility, work from home, giving them more tools they need to do their jobs. and third, policies that support health and safety and employees first. so not just allowing work at home, but for any on-site people, making sure safety protocols are in place. that is what these tech ceo's you sithined at, when -- when you look at what employees said on glassdoor. emily: there are no women in the top tech ceo's and only one woman in the top 25 ceo's. why is that? andrew: this is just the top 25. and it is true that there is

only one woman on this list, but women are vastly underrepresented. among fortune 500 companies, women ceo's only make up about 7%. so it is not necessarily a reflection of gender imbalance, this is what employees talked about, ceo's who got out ahead of the crisis and did things that were pro-worker. there is more women representation in companies all the time, one of the big u.s. banks, so we will have to wait and see. it is very likely that will improve in coming years. emily: i know this list is based on employee feet back, but women are often judged more harshly than men, especially in leadership. i wonder if there is anything glassdoor can do with this methodology, to look below the surface and figure out why potentially women aren't getting on this list, or how women leaders are being judged compared to their male peers?

andrew: andrew: that's -- andrew: that's true. i done a lot of research on female leadership using who considers the ceo grade and does gender really matter, compared to other things, whether they are mission driven as leaders or whether they are seen as empathetic and transparent in that research, without gender didn't matter. it is much more important that leaders sell what a company does as a social mission. that is far more urgent than personal characteristics. but in this case, what we really see is that these ceo's, the ones at the very top of this tech list, zoom video communications, that they have a great company response to the crisis, but also that they were seen as critical helping other company survive during the pandemic. box.ame with

keeping thet is economy running when everybody is working from home. emily: eric and darren have spoken on the show in the last six months. yuan ont having eric the list, given he has weathered so many controversies. eric is recognized as one of the top ceo's in 2018, and employees say it is not just generous health benefits, including mental health care, but eric has been transparent in having frequent feedback and helping people see pride in the work that they are doing, connecting people during the pandemic. right, interesting list. i appreciate you sharing it with us, and your insights. andrew chamberlain, glassdoor

chief economist, thanks so much for joining us. that does it for this edition of "bloomberg technology." chang in san francisco. [stay bake australia -- next."ak australia is this is bloomberg. ♪ ♪ ♪ - i'm doug hirsch.

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all from the comfort of your own home. visits are confidential and affordable. need a prescription? your doctor can send it to your pharmacy or have it mailed to you. get the healthcare you deserve at goodrx.com. haidi: hokum to bloomberg daybreak australia. we are counting down to the market open. shery: good evening from new york, i'm shery ahn. haidi: these are our top stories. modest friday gains after wall street. the worst of its losses. investing jobs data reflecting a fragile economic recovery. shery: oracle