- [narrator] compare prices to get the best discounts. - goodrx, smart. - [narrator] stop paying too much for your prescriptions. download the free app today. emily chang in san francisco and this is "bloomberg technology." half fors fees by smaller developers making up the $1 million in revenue a year. like leaderstics of spotify and epic games say it is still not enough. plus, president trump fires the nation's top cyber chief via twitter, of course.

is the security of america at risk? and covid continues to peek across the country, once again shutting new york city public schools down. with vaccines on the way but still not quite ready, we speak to 23andme ceo anne wojcicki. could their research on genes and covid give us more clues on how to fight it faster? dropping asstocks fresh resections put in place to limit the spread of covid-19 overshadowed positive news. . about vaccine develop at abigail doolittle has more. generally the markets were quieter today, but then it fell off late in the day. abigail: truly a sleeper for much of the day. cyclical rotation trying to take over. as new york city headlines crossed on top of the mta news around the subway. earlier today, two negative headlines. of course the second one being that schools are shutting tomorrow until at least after thanksgiving on the 3% seven day

rolling positivity rate here in new york city, at least according to the mayor's office. looks like the governor may have had a different number. in any case, schools are shutting. in addition, governor cuomo earlier was talking about the possibility of the orange designation at some point in the near future if that 3% rate really is hits. that would mean the likes of restaurants and gyms close. initially stocks wavered and then you can see a pretty decent selloff at the end of the day. the worst day for the dow. we usually do not look at the dow but this was hit the most in about three weeks. so investors really taking this virus seriously. the first time i can remember over the last couple weeks if not months where it seemed there was a connection between investors and a somewhat bleak reality. as for the day on the stay-at-home trade, earlier during that sleepy trading, the stay-at-home trade was not doing

much. but take a look at xoom and pelton. both of those have been down. right when the near city news came out they shot higher. day.having their best interesting, take a look at amazon and apple. amazon finished down. that does not make a lot of sense. but the true stay-at-home stocks, zoom and pallet on, a nice rally on that new york city school closure news. emily: interesting. wonder if apple has something to do with them reducing fees for developers. we are going to talk about that in a moment. i do want to hit nvidia shares down after the company reported results. but results exceeding expectations. what do you see? abigail: options suggested this stock would move in a big way, more than 5% up or down after the earnings came out. that has clearly not happened.

down more than a has been at any other point during the session. they put up a solid quarter. they beat earnings and sales estimates. adjusted earnings by 13%. they put up more than $4.7 billion in revenue, beating by 6.9%. that is great. the forecast was also terrific in terms of pc and gaming demand. the gaming unit was good. this could be a case where too f ar, too fast. the stock was up more than 130% on the year, so investors may have wanted even more of a beat. but we have to let investors sift through a little more. where we have true certainty, i know you know, tesla up for a second day. the stock was basically already in a bull market, but up 19% in two days. when you make a move of 20% in any time period, that is basically a bull market move. so a bull market move on top of a bull market. the company is being included in the s&p 500 on december 21.

buy it, they are. so are some other investors out in the world. this positive momentum may thatnue for tesla on inclusion for the s&p 500. emily: always nice to hear about tesla to spice things up. abigail doolittle, thank you so much. i want to talk about apple now, and halfpp store fees for the vast majority. for more want to bring in mark gurman who covers apple. this is pretty dramatic. it impacts the vast majority of developers out there. how many developers are we talking about, and what does this mean for them in terms of materially boosting their revenue? mark: thank you for having me. like you said, this is the biggest change to the app store fee structure since the store lost about 12 years ago.

this applies to developers who offer paid apps and in app is about and -- this 90% of developers, accounting for about 40% of app store revenues for apple. emily: that said, some of the biggest critics, epic, spotify, are still not happy about this. in fact they say it underscores the arbitrary nature that they see apple's app store being involved. an epic spokesperson saying this would be something to celebrate were it not a calculated move by apple to divide app creators and preserve their monopoly on stores, again breaking the promise of treating all developers equally. spotify saying the latest move proves their moves are arbitrary and capricious. we hope arbitrators will ignore apple's windowdressing and the urgency to protect consumer choice and ensure fair competition.

what do you make of that? mark: i think there are two things going on there with the responses. one, they are not happy that this move does not apply to them. change% reduction or a on the fee is only applicable to generated $1 million or less in the prior calendar year. so that would obviously not impact spotify or epic. at the same time, i'm not sure what spotify is still completing about. even if they have actually been circumventing apple's app store fees for years. you cannot sign up for spotify inside of their app. epic games, as you know during this lawsuit, they pay nothing to apple either. so this is not really something that applies to them, necessarily. in terms of windowdressing that spotify is talking about, this is something i do agree with. apple is saying this is in

response to the covid-19 pandemic impacting small businesses and small developers. and i know several developers who have had their revenues fall because of covid-19, but i think that regulatory scrutiny and other issues that apple has over its app store practices is a big reason for this change as well. to be is this going enough to appease regulators as the antitrust scrutiny continues? will regulators see this and say, ok, this makes us feel better, or is it not enough? mark: maybe some. i think the voices inside the ears of the regulators and governments, companies like you mentioned, epic, spotify, they are going to continue harping on this. because this fee reduction does not change the fact that there are a lot of developers still complaining about their apps being rejected due to inconsistent rules, rejections they disagree with, apple competing with developers on

their same platform and not having to pay that 30% cut to anyone. so this fee reduction will go a long way to buy apple some goodwill perhaps with some regulators and small app developers, but i think it does not change the larger story. emily: that said, the folks on apple's side, including many developers, recognize apple has created this incredible infrastructure that enables these developers to get out to the wider world. how much of a hit will apple actually take on revenue here, given that this is impacting the vast majority of developers, but those developers do not make more than $1 million a year? mark: i certainly agree with you. obviouslyprovides -- provides this thing in which they would not even exist. estimates sohree far today on what the impact

will be. i've seen an estimate of apple losing $1.6 billion in annual revenue. all the estimates come down to apple losing less than 1% of annual revenue. so it is not really going to have a material impact on the company as far as i can see. emily: all right. mark gurman, thank you was always for breaking it down for us. coming up, president trump fires the homeland security official after contradicting his unfounded claim about election fraud. will talk about the severity of the allegation and the security surrounding the rigged,, if it was all like the president says. this is bloomberg. ♪ s bloomberg. ♪

homeland security official christopher krebs publicly contradicted president trump's unfounded claims about widespread election fraud. last night, those remarks cost him his job. the president tweeted he had fired krebs over what he called highly inaccurate comments. called the past election the most secure ever. joining us is kiersten todt. important this is an job that chris krebs was doing. are you worried at all for american security at this moment, not having a director of cyber and infrastructure security? kiersten: thank you for having me. the short answer is no, i am not worried, and that is because of the work that chris krebs has

done over the last two years. this cybersecurity and infrastructure security agency just came into being in 2018. and chris and his team spent the past two years ensuring the security of this election and future elections, securing infrastructure across the nation. because of that work, the team in place now is very much prepared to address handling government. we have continuity of operations in government. that is what good government does and that is a testament to the leadership of chris krebs, to his deputy and the team. so while it is unfortunate, it is an irresponsible act on the part of this president to have fired him, i am not concerned about the security of the nation. emily: the president of course doing this via tweet, again claiming election fraud, and that what chris krebs has said in the past about election security is quote, highly inaccurate. krebs actually responding on

twitter as well, saying i never claimed there was not fraud in the election. it is a law enforcement matter. we did provide measures law enforcement uses to detect dead voters. don't buy it and think twice before sharing. what do you think this says at all about the integrity of the election? kiersten: i think based on what we have heard across multiple jurisdictions, we have 10,000 voting jurisdictions in this country. state and local officials from both parties have all come forward to validate the integrity of the election. and there is no reason to doubt all of those voices who were on the ground securing the integrity. and that was one of the key focus points. and it was an impressive election from the perspective of national security when you think of all the threats that we know were and are coming at us. but there is no reason to believe anything other than all of the people that are on the ground, the government

officials, state and local jurisdictions who have all validated the integrity of this election. wide bipartisan support. as we head into the next administration, how do you think the biden team will be looking at this, and what should they be doing to plan for their own transition? kiersten: it is a great question because cybersecurity is evolving so much. i was working in the senate in 2001 and worked on legislation to create the department of homeland security. so i have seen its growth and evolution, and where we are now is we have gone through serious progress. the last four years, led by chris from an infrastructure perspective, we have made a lot of progress. now we have to continue to look forward. the priorities are the same. we have to look at how we build a safe and secure digital infrastructure. we have to examine how we can deter and prevent nationstate

activity and threats against our infrastructure. and we have to work with businesses of all sizes to stay secure and combat cybercrime. so, this administration that is coming, this biden administration and the transition team, needs to grow upon the successes of the past. and has to absolutely have a diverse workforce. in its diversity of opinion, perspective, race, gender, culture. cybersecurity is about creating solutions and problem solving. and the best way to do that is to ensure we have diversity of voices and represent the new and emerging voices we are seeing in this space. ebs has been quite humorous about this situation on twitter, saying he will now reintroduce himself to his family, watch sports and ride bikes. do you think biden should consider rehiring him for his administration? kiersten: i think president-elect biden has a lot of people around him who have worked in government in the past

who are from industry. again, we want to make sure that as we look forward we are going to bring in a workforce that will take the successes that have been built, take the successes that chris has achieved and built upon them. i expect president-elect biden to look at chris during the transition because that is how good government works. we work off of the successes of the past to build forward. emily: at this moment, what do you think the biggest cyber threats are that biden's team needs to be worried about? obviously you know the relationship with china is incredibly frosty and tensions have escalated. situation with some other countries out there, and certainly the trump administration has not done the best job at maintaining our relationship with traditional u.s. allies. what do you think should be priority number one on the cyber front for biden's team? kiersten: it is a two-pronged

priority number one. we have to look at how we are working internationally. we have to get rid of the america first, america only approach, and reach out and repair the international relationship that has been hurt the last four years. when we look at cybersecurity, we cannot do this on our own. we have to do it in collaboration with like-minded economic nations. we have to build a coalition of the willing to build a safe and secure digital infrastructure. so there is the international piece. on the domestic side, the current threat that is much more serious than we continue to acknowledge is ransomware, because that is affecting businesses of all sizes. when we look at the interdependencies of global supply chains, small businesses are the most vulnerable. so we have to continue the work underway to help small businesses be more secure so that these global value chains can do better work. with the cyber readiness institute, we have worked closely with chris on his team for helping small businesses and

i hope that work continues in the coming years. emily: all right. kiersten todt, managing director at the cyber readiness institute, thank you so much for joining us. very interested to see where you see priorities on the road ahead. want to bring you breaking news now. the senate is setting up to leave for recess without having voted on the nomination to the fed board of governors. her nomination has been left in limbo as the senate prepares to leave for the thanksgiving holiday. senate majority leader mitch mcconnell has been facing the absence of two key gop members, but has scheduled no more votes for the week as a result of that. we will continue to follow that, president trump's controversial nominee, confirmed once the senate returns december 30. still ahead, scientists and

pharmaceutical companies are on a fast-paced hunt for tools to control the pandemic. their efforts are paying off. a ceo weighs in. this is bloomberg. ♪ is bloomberg. ♪

another encouraging breakthrough in the fight against covid-19. pfizer and bion tech announcing a vaccine that is 95% effective in clinical trial and will now apply for emergency youth -- use operation in the u.s. the biotech ceo spoke earlier with bloomberg from germany. take a listen. will submithat we

our documents on friday to the fda. we are already in submission. we have submission to the european regulators. but this is an ongoing process. >> congratulations. this is obviously great news for everyone. we want as many vaccines as possible. how do we know if the vaccine prevents asymptomatic transmission? >> we do not have that information yet. we have the information about how the vaccine presents -- prevents disease. but we have indicators the vaccine should be able to prevent infection, since one of the components of the immune system that we are activating the vaccine is the neutralizing antibodies. we know that our vaccine induces some neutralizing antibodies. -- thiswhen no one could prevent infection.

we are going to collect indirect data showing how well the prevention of infections, but this will require a few months. >> are you going to get a t cell response? will there be a long-term effect? because the antibody response obviously fades. will there be a t cell response? will the body have long-term memory of how to deal with this virus? >> we have created evidence for that. the t cellsyzed from subjects who have been vaccinated, before and after vaccination. and what we observed is that weeks, the four vaccinated people have really strong t cell responses. we see two types of t cell responses. [indiscernible]

is an extremely important finding. the finding shows us that the t cell response we are observing is even higher than the t cell response observed after disease. we know from other virus infections that the t cells can last for many years. so we now have one component of the immune system which is better stability than the antibody response. ceo.: bion tech has found 23andme that african-americans are disproportionately more likely to be hospitalized for covid-19, even when controlling for certain socioeconomic factors. but the question remains, why? we hear from ceo anne wojcicki next about their covid-19 research and where it stands. also their work to conduct blood

type to covid. this is bloomberg. ♪ is is bloomberg. ♪

emily: welcome back to "bloomberg technology." while the u.s. and countries around the world rejoice in the positive covid vaccine news coming out of pfizer and moderna, covid-19 cases are continuing to search. new york city will close its largest public school system on thursday. the number of patients needing ventilators in new jersey doubled in a week. i caught up with 23andme cofounder and ceo anne wojcicki to talk about the vaccine results. anne: i look at the holiday season. i think it could be awful. we are going into a bad time

when people are going to be indoors. getting leadership about how we will control it will be great. that said, i am very enthused about the vaccine. we have not seen the data, but the fact that the companies are coming out with strong results is exciting. emily: we've got a new administration coming in. what do you want the biden administration to do when it comes to the pandemic, science, all these important issues happening now? anne: people seem utterly confused about what is real. i look at the mask mandate and the opportunity for people to make some behavior changes and really control the virus. i look at countries like new zealand where they have been able to have a relatively normal existence because they had such

strong measures for a short time. if we were really aggressive for a period of time, there is an opportunity to get it under control. emily: the fda just gave the green light for the first at-home covid testing kit. there are concerns this could introduce human error or false results, cases that could go unreported. anne: i have not looked at their data, but i know the fda process. i have some level of confidence knowing they have gotten an authorization, that this can be something people can use at home. i am enthused there will be some kind of at-home testing. i myself and others in the household, we all do a weekly testing. it has to go through the mail, but it is a great service. understanding there are going to

be some kind of errors, but you are going to enable people to get tested in an easy way. emily: 23andme has been doing exciting research on the link between genes and covid. you found blood type o is more protective against covid. what else have you found? anne: the thing that is interesting to me that i want to keep pursuing is when i look at all my customers, we have over a million customers that have taken our covid survey and thousands who said they were hospitalized. when i look at their genetic background, you can still see african-americans are disproportionately impacted for hospitalization. that leads me to believe there is more genetics to find. what is it in the african-american gina that makes themnome that makes

disproportionately likely to be hospitalized? 80%data shows they are over more likely to be hospitalized. emily: what is the ultimate goal of your covid research and other avenues you are exploring? anne: what has been first for us is to understand, is there something in your dna that makes you more susceptible and have a severe case? we all read about those stories where you have a young, healthy individual that has no underlying addition and they are severely ill or they die. is there something in their dna? those people could be potentially more isolated, or we could hone in on our policies to have more aggressive care. we have a large community of individuals who said they did

not have covid, we have their dna. we are looking to work with pharma partners, can we help with treatment and vaccine development? youy: when we last spoke, said he would be happy to collaborate with pharma makers. since then, have you had any talks? anne: we had a number of talks with pharma partners that reached out getting access to the aggregate data we have. we have this partnership with gsk. gsk says they have a separate collaboration on vaccine and drug development. we work with them on understanding the data we have. emily: meantime, you have been ramping up your own drug discovery work. team, when you might have something out, and what the targets are looking like? anne: i am so excited about the

drug discovery side because drug discovery is so hard. there are a lot of failures in this space. good data shows if you start with human genetic information, you have a higher likelihood of success. we have over 100 people on our therapeutic team. we announced a large collaboration with gsk in 2018. we have a dozen programs in development, one in the clinic, now in phase one. and oncologyno program. i am super excited. see enthused because i can the genetic story. emily: you were tweeting about amazon's push into pharmacy. what are your thoughts? do you have concerns about the security issues, regulatory issues? anne: covid-19 has blown open the doors for digital care.

there is such an unbelievable opportunity now. everyone can relate to the pharmacy experience of not being a great experience. you get your toothpaste and spend 45 minutes waiting for your prescription. is there another way? i am excited seeing how is amazon potentially going to pioneer a new way? there is a lot with how it can be delivered, the service, as well as frankly with your data. has anyone tried to pull out their medication history from a pharmacy? winter,s we move into you were tweeting about bidenelection's -- biden's harrisn win, kamala becoming first woman vice president. how significant is it to you as a woman, as a business leader, as a -- as a mom?

anne: the most important thing in the last four years i have seen is how much representation matters. and twitterstories stories. it matters to have a woman there. it matters to have a woman who does not have a european background. everyone wants to have the role model that they can point to. itt is exciting as is unlocks the potential of these women and communities that have felt marginalized. to give people that opportunity to dream is huge. . am really excited this country is built on diversity. emily: given we are in the middle of a health, economic

crisis, continuing social crisis, are you concerned about the transition of power? it is great to be hopeful, but are you concerned about the present not wanting to leave office -- the president not wanting to leave office? anne: i have faith in the country and faith in enough of the leaders that the right thin gs will happen. i am a perpetual optimist. entrepreneurs have to be optimists. i am a believer. the country is going in the right direction. i think we have learned a lot over the last three years. the number one thing for me was the wake-up call that we have to do better. emily: anne wojcicki, ceo and cofounder of 23andme. she will be speaking alongside bill gates, the ceo of moderna, the heads of the imf at the

bloomberg new economy forum thursday. you can catch those conversations on the terminal and online at bloomberg.com. coming up, with people driving less in the pandemic, podcast publisher iheartmedia seeing a big uptick in global downloads and expanding its business with a new acquisition. iheartmedia ceo bob pittman joins us to discuss next. this is bloomberg. ♪

emily: as the pandemic continues to up and all of our lives -- tp lives,o upend all of our milliondia repeated 266

global podcast downloads monthly. joining us to discuss what is happening in the podcast and streaming world, ceo bob pittman . good to have you back. we are seeing a lot of action in the podcast space. you are making deals. spotify is making deals. what does this mean for advertisers, for investors? using the power of our radio platform to be the number one podcast publisher 2-to-1 over the next largest. fantastic growth. 3 we wereof revenue, q up 70% revenue year-over-year. q2, 100%. it is all building. you are looking at people trying to get aboard this party, and

for good reason. this podcast business has surpassed the big streaming using players. it has been probably the fastest digital growth business. people who never thought about audio are looking seriously at podcasting. our acquisition we made is another piece in the puzzle of how we maximize the monetization of that big audience, and by the way, still growing. pandemic came. certainly some people for a period of time didn't spend as much time in the car. our podcast usage did not dip. it went up. we saw a shift in the categories. less true crime, more comedy. the importance for us is to maximize the value of this growth and keep it going. emily: you mentioned cars. people are driving less in the

pandemic, which is a huge space for radio listeners. you are having some layoffs in different markets. give us an update on the state of the business and how much you think it can recover if our driving habits are forever changed. bob: the driving habits aren't forever changed. some of us are fortunate to work from home. most of us are not. if you look at the apple maps driving request index, it is higher now than at the first of the year. report -- a put out report about media use during covid and says radio use is up 7%. our usage was great. consumers really needed us. unlike music collection like spotify and pandora music, we are radio. our job is to keep people

company. there is always someone with you in the empty seat in the car or while you are brushing your teeth. it increased our bond with the consumer. advertising was a different story. we saw advertisers pulling back. some businesses had difficulty. some businesses did not know what to create during this time. we see that recovering nicely. hopefully, a vaccine, as we see the recovery moving forward, that helps us recover with our advertising. there is this misperception, no one is in a car -- we do one third of our listening in home, two thirds out of home. that is split between the car in the workplace. important to us. our home listening went up and the car stuff is back. emily: i am curious what you are seeing among younger listeners and if your competition is

changing. more visuald a customized medium your competition now? are younger listeners listening to radio as much as the generation before them? bob: the answer is yes, they are. it on a listening to lot of other devices. we are on 250 other platforms other than am/fm. podcasting is a young person's medium as well. it has to be the right spoken word. a wonderfultok is promotional vehicle for us. our users do video games, they do tiktok, facebook, instagram. it is some of the ways we communicate with them. keep in mind, we are not content, we are companionship. we are keeping people company.

anything they talk about of interest to them, we get involved with. you have tiktok videos and people interacting with radio. it all becomes one piece, especially for the younger audience. emily: let's talk about the people providing that companionship, musicians. revenue streaming for musicians have been worn down over time, but kind of obliterated in the midst of the pandemic. they can't do live concerts. what does the future moneymaking opportunity look like for a traditional musician going from, maybe not taylor swift, but a step below that who is looking for an outlet? bob: the streaming services are continuing to be used. it is the new tower records. they are providing ongoing revenue to the musicians. you are right, touring has sto

pped, but that is going to come back. your estimates from the spring to the end of next year, but a lot depends on how much vaccination we can get how quickly and how well the therapeutics work. i am encouraged about it. in the meantime, we are helping our friends in the music business keep their relationship with the consumer. we are dreaming up ways to connect them with the fans. stations,ic radio which is 75% of our stations, we make it a mission to connect the fans to the music. that is more important now than ever during this pandemic. emily: interesting to watch how you pivoted. a lot of your live events have gone virtual. iheartmedia ceo bob pittman. a quick reminder, bloomberg programmingrovide

of iheartmedia through a marketing agreement in san francisco. breaking news, deaths from covid-19 in the united states have now topped 250,000. this coming from new data out of johns hopkins university. obviously a very bleak number. now 250,000 americans we know have died from covid-19. cases continue to surge across the country. lockdowns also surging across the united states and threatening to take another bite out of the already struggling hospitality industry. one expert is reimagining the future of dining, and that is jon taffer. host of a very popular show. stay tuned for that conversation next. this is bloomberg. ♪

emily: 250,000 americans have

now died of covid-19. restaurants across the country continuing to shut down. new york city closing its public schools as of tomorrow. we are joined by jon taffer, hospitality expert and host of "bar rescue," known for -- failing restaurants and pubs. you have just opened a new restaurant. how are you opening a restaurant and addressing all of these challenges? jon: we started creating taffer's tavern two years ago when unemployment was so low that the restaurant industry could not find employees. that is how much things have changed. we had an industry-wide issue with finding employees. we went on a quest to change the casual dining model with

computerized cooking systems and creating a kitchen of the future. that is how we started. when covid came about a year ago , we realized we have the safest kitchen in the world because it has virtually no contact. it is computerized and high-quality products. we developed the taffer safe dining system, compartmentalized outgoing food and transactions, created an exceptionally safe environment with hand scanning equipment, with all these technologies. when we finished, we had the most covid friendly restaurant in the country. we started out focusing on, how do you do it without a labor pool? it ended without a labor pool and more machines, less contact. emily: that is fascinating. restaurants are one thing. bars are another. how do you see bars coming back

when no one wants to enter an empty bar? i imagine that would be even harder. jon: it would be. as bob said in your last segment, we have great therapeutics. 160 days from now this will be a different country. i believe more people will take the vaccine than they say they are. the next thing they do after a vaccine is go to dinner. summer intown this the restaurant business. capacity is 40% lower because of restaurant closures. if the marketplace comes back with a surge post-vaccine, it is boomtown. i am very bullish on the future of the industry come this summer. emily: boomtown. that is quite a prediction. ,"n taffer of "bar rescue

fascinating to hear about the technology you integrated into your restaurants. i love the optimism. thank you for joining us. that does it for this edition of "bloomberg technology." bloomberg daybreak: asia is coming up next. i'm emily chang in san francisco. this is bloomberg. ♪

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