>> i'm vonnie quinn in new york in for emily chang. technology.mberg coming up in the next hour, we will stay here until we finish. that assessment from mitch mcconnell as congress gets to vote on a nearly $900 billion stimulus plan attached to a $1.4 trillion measure to keep the economy running. and tesla skids.

tesla among the biggest drugs on the s&p 500 in its first day of trading. other than the fact the index as a whole moved little. and peloton, for $420 million, to gain u.s. manufacturing capabilities and extension opportunities. we will hear from the president, bill lynch. those stories in moments. first, u.s. stocks slumped amid a new mutation of the coronavirus in the united kingdom. a wave of lockdowns and travel restrictions. abigail doolittle has more on the market today. abigail: it certainly was a volatile market today. at one point the nasdaq 100 down 3%. that's true of the s&p 500 as well, the virus fears and mutation in the u.k. weighing on markets. there was a fear that could come here and slow global economic growth. the s&p 500 lower on the open. on the close, 4/10 of 1%. the nasdaq 100 down a commensurate amount.

a bit of recovery as the buyers seemed to find footing. tesla down 7%. the company was added to the s&p 500. that coming as a big surprise -- not coming as a big surprise to experts. they suggested you will see that action for a shock up more than 700% on the year. investors taking profits. on the other hand, apple and microsoft, alphabet, stocks higher at the end of the day and that is one reason we did not have a huge selloff so a bit of a balance. finally, last week, all this positive news around the vaccine. pfizer's vaccine going into distribution.

last week, the virus makers down sharply on the week. declines extending into today. seems we have a bit more news there. vonnie: abigail doolittle, thank you for joining us and giving that run down on the markets. in washington, lawmakers poised to pass a stimulus package. earlier, david westin caught up with illinois democrat senator dick durbin who gave a rundown on the bill. >> it will be a relief for millions of americans by extending unemployment, looking for the final language.

also, making almost $300 billion in loans to businesses, which i think will mean survival to these businesses that will make more money for the logistics of the vaccination campaign, help for the schools. vonnie: with more on the stimulus, let's get to erik wasson. we finally did come out with language this afternoon, 3000 to 4000 pages. was there anything we were not anticipating? we know the broad outlines of what the house and senate would vote on. > 5593 pages to be exact. one of the biggest congress has passed. it has a $900,000 stimulus bill. -- we also have a bevy of tax breaks, energy legislation, and the way the government evaluates air in the wake of the boeing 737 max crisis. lawmakers have very little time to evaluate.

so it is an incredible piece of legislation when you look at it. vonnie: when are they boding exactly? reporter: they will have some procedural votes but we are expecting 9:00 or 10:00 for it to pass the house and go to the senate where they could move on it as quickly as 10:30 or so so it will be a tight situation with government funding. and of course right at midnight, it's not like everything ceases and federal workers stop working. that's what i would expect would happen in this case and it is pretty much a done deal. vonnie: some representatives on both sides of the aisle complaining there is not enough time to figure out what is in here. is there any danger things will

get passed that would be undoable afterwards? reporter: congress can always reverse itself as it saw with the nine month delay on the stimulus, it's hard to get consensus and get people together to fix something. is this going to be a back-and-forth? congress could revisit the issue. but this is one way lawmakers have found a time to ramp things through -- ramp things through to package things together. through togs package things together. mitch mcconnell, and relations to the horserace industry, if you are an opponent, you would find on the individual basis from getting passed on the lower. it hit in deep on page 5000 or so on the bill and it is going to become law. vonnie: that's phenomenal. the pandemic relief is almost $900 billion, a $600 check for individuals, and extra $300 and $300 onon --

unemployment. will that be enough? are lawmakers pushing for more after this particular slice of pandemic relief? reporter: democrats are looking for more. they say it would be their top priority, in addition to covert relief. nancy pelosi told reporters that it will be easier with a democratic president, even if there's a republican senate. i think it will be a tough go. there's already a resurgence of deficit concerns among republicans. democrats are certainly going to be pushing for that. republicans do want to have the trade-off for state and local aid, which is a governmental relief program left out of the bill, so we could see something put together with a group of moderate members from both parties to forge a compromise next year. it is on the table and remains to be seen whether it will get done. vonnie: negotiators could not bridge the gap on things like

liability shields for corporations, but one thing they did get here is for airlines. will other industry groups to be disappointed they were not also included? reporter: the big one is restaurants. we see $15 billion for entertainment venues and movie theaters, which have been hit hard by the pandemic. as mentioned, airlines. these are sectors of the economy that very much hindered people's abilities. the other is restaurants. there was a restaurant bill, top priority for chuck schumer, which is not in here and he will have to come back and revisit the issue. if we are going to see transportation prioritized by the biden administration, restaurant groups will be looking for relief next year. vonnie: thank you for keeping us up-to-date. erik wasson, thank you for joining. coming up, tesla tumbling on its first day on the s&p 500. this is bloomberg. ♪

every year, we set out to do one thing: help the world believe in holiday magic. and this year was harder than ever. and yet, somehow, you all found a way to pull it off. it's not about the toys or the ornaments but about coming together. santa, santa, you're on mute! just wanted to say thanks. thanks for believing.

vonnie: tesla shares fall 6.5% on its first day on the s&p 500, making it the biggest company ever to be added to the benchmark. joining us is global x etf's. they have a about a 4.5% stake. tesla made its debut and has raised a boatload of capital.

>> they say it has been a long time coming. tesla has been around for over 10 years. i think the challenge facing a lot of investors, the first $600 billion of growth has already happened. that s&p 500 is coming late into the cycle in the grand scheme of things. you would think that's the challenges of the cap weighted indexes. vonnie: the shares have skyrocketed more than eightfold this year. that is on par with some of the vaccine stuff. today's six and a half percent drop, the beginning of the reality-based phase of trading for tesla? >> it is difficult to say. when you look at the rudder electric vehicle market, only 2.5% of cars today sold our

electric. there is still 97.5% of the market to go. it is not over by any stretch but we are looking beyond just tesla, as some of the other car suppliers are creating things like lithium and battery technology. electric vehicles will start to displace internal combustion engines. wholeying to this ecosystem as electric vehicles will start to displace internal combustion engines. vonnie: that said, insurance, $600, three hundred $50 above consensus analyst estimates. what are those bears missing? >> they are missing that this was probably one of the biggest disruptive opportunities to happen in the decade or perhaps a generation. if you look at how much destruction they've had in the past 30 years in the shift to communications and remote work, the rise and the internet, the rise of mobile communications, a

lot of sectors are disrupted. one that has not really been disrupted is transportation. this is a $2 trillion industry. tesla goes probably beyond that if you include space and solar. this is a multi trillion dollar opportunity ahead. they probably won't be the only winner in such a massive market that is really stuck in old ways now. vonnie: they expect to make about half million cars this year, and there is the target of 20 million per year, but that is 10 years away still. you have to imagine it would have to dominate a burgeoning ev industry in the united states to justify this valuation. will all those things combined make tesla the winner, or by then, will some of the oems that make up tesla's market cap, will

they have caught up a little? > right now there is not much competition. . when you compare like vehicles, no one is really coming to tesla yet. the challenges is contested -- can they go down market? that's how you get to 20 million units. it is not like bmw competing it ispeting with bmw, competing with the toyota camry. once they could do that, the world is their oyster and they can start to take over the entire vehicle we old -- world, but there are others coming in. established players are behind on battery technology but they have powerful apparatuses behind them. once they really lean in, which we think is three or four years away, it's possible tesla will be big enough to surmount the -- surmount it. vonnie: part of this is the loss in china. how crucial is that to joe biden -- elon musk, and joe biden's relationship to china, how important is that? or can he carry out his plans

even if the administration takes a hard stance on china? >> china is the biggest automobile market in the world. we not only need support from the joe biden administration, but elon musk needs support from the xi jinping administration to be building in china. they have their own electric vehicle manufacturers as well. if they don't want tesla in the -- in their backyard, they don't have to have it. that is certainly a risk for tesla going forward. vonnie: at what price would you start to consider downsizing your position a little bit in the drive etf? as i say, it's about 4.5% and almost double the next largest position in the etf's. >> that is just it.

we market cap weight our indexes and we are happy to keep voting tesla but 95% of the fund is in other things. we think there's a lot of opportunity beyond tesla and other ev manufacturers that had ipos, autonomous vehicle makers, a lot of creators in the lithium commodityity pro -- producers in the lithium space. we advocate for owning the entire ecosystem. tesla is a huge part of that, if not the biggest part, but we think we are still missing 95% of the electric vehicle world. vonnie: how much is elon musk exposed to risk? is there a danger that if he were to change his priorities, or become less involved with tesla for some reason, that the stock wouldn't be performing like this? >> i think a big part of tesla and the valuation is based off future growth, and a lot of it is attributable to elon musk and

what he created for the world of electric vehicles or essentially space travel, a role that is solar. creating electrified transportation systems, he's absolutely a key part of the story. without him, clearly he would have to pick an incredible successor with a similar vision. there's not a lot of elon musks in the world. i hope it doesn't come to that. vonnie: i have to ask you about the move to texas. obviously it caused a lot of ripples and i'm curious, will other companies now be more inclined to make moves given that elon musk has announced this? what does it mean for the future of tesla? >> i don't know how much it means for the future of tesla. it means a lot for the future of the united states when you see companies moving around. we have seen financial firms looking at moving to florida and tech firms moving to texas. with the rise of remote work, the fact that we can have video conference and use chat functions anywhere, you can start to play states off each other more. maybe not every financial firm has to be in new york and around the block from each other.

maybe every tech firm doesn't have to be on the main road. you can have innovation and collaboration and execution everywhere. if elon musk is moving to texas, it might give other ceos the confidence to move as well. vonnie: as i said at the beginning, with the capital to play with now, should elon musk prioritize capital, how should he spread it out? >> there has been another offering to raise more money, so clearly they are looking at their own valuations and saying it is a good time to raise money. if they can get money cheaply, and built at various gigafactory's, anytime they can raise capital is good. vonnie: jay jacobs of global x etf's, thank you for joining.

just a few days ahead of the christmas holiday, at least one amazon facility is closed due to covid-19 spikes among workers. details next. later, we talk to the president of peloton on the latest acquisition of fitness equipment giant, as part of the strategy to meet demands. >> we have seen a ton of growth. no one would wish though global transitional -- pandemic on anyone, but it's been huge for us on numbers. keeping up with a moving target has been a big priority. whether it is the investments in taiwan before this, we have been investing for years now, and growing the supply chain, this is one element of that strategy. ♪

vonnie: the holiday shopping rush is on but a major amazon sorting facility closed after a covid-19 spike. this facility is in new jersey. can you give us some more details? reporter: this is a facility in new jersey and it is an amazon holiday sort center. it takes packaged goods and runs them to a usps facility, for last mile delivery, just packaging things by zip code and putting them out to the final trip to your doorstep. vonnie: when they say a spike in covid-19 cases, do we have any idea what that means, how many it would take an older -- in order to close and how many people were there -- work there? reporter: we don't know how many were infected the state health department says they are working with amazon but they have not released further details. amazon has not commented. we do know it's likely to be severe only because amazon's preference throughout the pandemic has been to keep facilities open essentially at any cost unless there is a state

order, or in this case, the inability to manage the place because of the rising number of cases. but we don't have a first figure. it is not a place where thousands work, it is a degree smaller. vonnie: we have a number of 20,000 when it comes to amazon's covid places -- cases more broadly. sounds like a lot of people, but can you put into context of amazon's entire labor force and whether it is a lot? reporter: it is a little complicated by the fact that amazon over that period would describe the 20,000 or so cases they have, they employ 1.3 million people in the u.s. amazon says that is an infection rate below the wider communities where they operate. some people who study statistics say we need to know more. it is commensurate with their sizes as an employer. 20,000 seems like a lot.

they definitely had their share of cases, but comparing it is difficult. vonnie: this facility closing, will that affect people receiving holiday items? reporter: amazon says no. they don't expect delivery fallout from this. we know it is primarily the mid-atlantic, mostly philadelphia and central jersey around trenton. amazon does not expect any impact so far. we know this facility is designed to handle runoff so we should go off amazon's statement that it should be ok. vonnie: and to the situation with unions right now, we know they have been quite active in trying to speak with amazon on various issues.

can you give us an update on where they stand? reporter: there is a union drive underway at an amazon warehouse in alabama. amazon at this moment, the amazon lawyers and union lawyers are arguing on the vote. it could drag on for more months but it's fair to say we could get a pretty unprecedented for amazon union vote next year sometime. vonnie: thank you so much for joining us and breaking those stories on amazon, consistently and constantly a story today, a plant in new jersey closing because of a spike in coronavirus cases. coming up, as we approach the end of 2020, longtime investor gives us his take on the winners and losers this year. we will also look into the crystal ball for 2021. this is bloomberg. ♪

vonnie: this is bloomberg technology. i'm vonnie in new york, in for emily chang. the stock market was on fire in 2020. techtarget, airbnb, snowflake, they all went public with skyhigh valuations. toestors have been a going paint and betting on a permanent shift in the labor force and the economy. of gdvsk the cofounder

captial. wereems you like -- you involved in all of the successful startups this year. >> yes, it has been a fantastic year. i think it has been fantastic for technology in general. i think we have survivor's guilt were all the traditional businesses are floundering, people are losing their jobs, while in tech, we have been booming. tech has created an environment where every month is like a doll dear for companies. the last five months in the - dog year for companies. the last five months in the > world has been like five years of technologies. i think the best illustration is my 82-year-old mother-in-law now ordering food on instacart to be delivered to her home because of covid. that is the environment i think a lot of people in technology

are in today. vonnie: right, and they thought they would never modify their behavior, and they are willing to modify their behavior. you are on the board of draftkings, the airbnb invest it you were involved in. will those behaviors continue when life returns to something akin to normal? >> we will continue to adopt technology. i think technology is here to stay. they learn that their mobile phone is there a friend. this is how they order food basically commerce, and i think it is basically here to stay. i think you will see a lot of momentum shifting. i think people are prioritizing how they work, where they work. i think that there will be a process where it will be more balanced.

vonnie: what about companies that have gone the wrong way? >> sure, you talk a little bit about what has been happening in technology and the look at it he we are seeing. a lot of them pennies are seeing a lot of money being run at them by growth equity investors. this a lot of capital to survive the storm, but they will come back on the other side. in terms of the liquidity side of venture investing, the specs are here. they are here to stay. three or four years ago, they

were the backwaters of liquidity, but today they are almost front and center. if you are not a big tech company, a 10 billion dollar, $20 billion company. it's very difficult to find a way to go public. you have to have the big investment banks take you public. it has kind of gone back to where i started my career in the 1990's. you would take small and medium tech companies public and that's the way you raise your $50 million funding round. the last 10 years, that has gone to growth investors. now you see them come back, offering better valuations, more liquidity, frankly more

interesting environments for these smaller tech companies. vonnie: sure, and that is what friends who are fans of say. it's much better for the private companies to be attached to a sponsor to leave them through the process. are the targets out there? >> great question. a number of companies are engaging in the first quarter. the issue you are seeing that i have seen so far is most of the spac's we see around us are high-quality sponsors. they have been operating in business for a long time and they are adding value to their priorities. when you look at how the ipo markets open and close, they open and close based on what comes out. i think you will see the higher-quality names come back.

that is something to keep your eye on. how well you do in the pipe process. or will they be more consistent with the ipo? vonnie: we will have you come back next month. thank you for joining us. one of the most watched companies plans to acquire free

core for $420 million. it will help meet the demand. jason kelly spoke to the pellet peleton president about the deal. >> it's a big deal for us. $420 million purchase price. we have been planning a lot, but there's a lot to be planned. we have no plans. we will bring the experience into our fitness experience, but we will be deliberate and ensure the overall experience makes sense. we will work through that. it has us excited. jason: what does this do in terms of your roadmap that has been laid out.

i know you talked about things like a row were and you have bifurcated the tread and the bike and you announced that earlier this year. what does this mean for the product roadmap? >> for our goodly the best in the industry. we have 100 people. we had tier one fitness > equipment. the people were a big part of this deal. we really like the people there. jason: tell me about the supply chain. the demand has been off the chart. you also have people out there who are having to wait weeks, if not months to get appellate time. how much of that was a driver for this deal. >> definitely as we have been

investing in scaling, we have growth.on of i would not wish the global pandemic on anybody, but it has been a tail wind. we have been keeping up with that. whether it is the investments we made in taiwan or we have been investing for years now, growing the supply chain, this is an element of this strategy. jason: what is the net effect of the cycle of getting things produced? or the mix of where things are produced? >> if you have a supply chain in which you are selling, it is disruptive.

it gives us more flexibility. we will be able to produce the majority of our products with incredible capabilities. it's about growth. there's no mixed target rate now. jason: it's turbulent, maybe boutique flows. some permanently. -- boutiques closed, some permanently. some for long, long stretches.

how do you on board what you have seen in 2020 in terms of where you see the business going? >> we do not take any solace in that. we believe as long as we offer a better experience at home, which we believe peloton dies, that we we will continue to see connected fitness. and so that is certainly reflected in our growth rate. jason: in terms of future acquisitions, that sort of thing, this is the big one. is there more to be done? is there more consolidation coming?

>> we think so, yeah. we are the leader inc. and connected we are thected f -- leader in connected fitness. in order to continue to leave we will continue to try to drive more utility for our members. that is part of we launch things we have with workouts. we will continue to innovate and when it makes sense -- this is all in service of continuing to make membership more and more valuable. vonnie: that was the peloton president william lynch. at least 200 organizations were hacked in a suspected russian cyber attack. we will discuss this with a leading expert in the area. this is bloomberg.

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>> it is very serious. itdon't know the depth of yet. we are spending a lot of time analyzing. we never imagined we would spend billion's of dollars, obviously with limited success and this is the risk of the defense of this country, national security. we have to take it seriously. vonnie: ominous assessment from senator dick durbin. this is after hackers breached u.s. systems. for more on what officials are finding out abou tthe -- about

the hacks, we have theresa. is this the tip of an iceberg or have we pretty much figured out what is going on. >> we have not figured out everything that is going on. but the investigation continues. we have not identified the full ecosystem. allll of the victimes i -- fulle victimes in the ecosystem. for example we know the fireeye team tools were taken. counter surveillance measures have to be put in place. we know that solar winds has the supply chain attack. there could be other ways that solar and customers moved to not solar when customers. this is very early in the investigation. -- solar wind customers to

non-solar wind customers. this is very early in the investigation. a lot has to be confirmed and a lot of countermeasures have to be developed. vonnie: as often happens, we are finding out that solar wind's advisor did warn of lax security several years before the attack. how do we prevent this happening in the future? >> one of the things this needs to be a start wake-up call for is just spending money on products and hiring people is not going to be enough. it requires very creative thinking and design of systems. the way this attack worked, the hackers were able to create something we refer to as god access or a god door. basically, the most elevated all thes they want.

privileges you can imagine to give them a digital passport to go anywhere they want. one of the things that has to happen is better segmentation of access. it makes it harder to protect thisr hackers to get passport and go anywhere they want. there needs to be something built into our design so that when something is an anomaly like this that you can go shields up, flip the switch, and keep things operating. doing something like that right now is very extreme. attack,was a march after that, everybody went remote. they went into computing, right? computing power. how deep into our secrets might these perpetrators be?

>> they are probably very deep into the secrets. they are on the classified systems of government. you and i both know that through the normal course of doing business, a lot of information passes back in fourth between businesses and departments and agencies in the military. we used to say at the white house that pieces of the puzzle on the unclassified side a lot of times lead to the bigger things discussed on the classified side. that ouro assume critical infrastructure, our vulnerabilities about that, our conversations around trade that those have all been at some point in time been read, looked at and intersected. the question is why. what was the motive and purpose? was this purely a need to do intelligence? was this to steal intellectual property or was this lying in wait at some

some future point? this was not just a u.s. hack. we do not know yet what the final motive was. inthank you, we will take with you soon. this is not going anywhere. another startup attacked just 10 days before the end of 2020. we will hear from web open-door investigators. this is bloomberg. ♪

vonnie: online real estate firm -- open door, the prospect -- made is trading debut on monday, this marked the end of a roller coaster for the company. although the prospects look pretty dim at the early months of the covid-19 pandemic, a valley in the housing market has boosted real estate technology. joining us is our guest.

first, congratulations. this is partially an exit. well done. i am sure you are pleased. stocks rose 6%. i am curious if you're disappointed a little bit. >> not at all. open-door is a spac, as opposed to an ipo. it would have been unexpected it -- unexpected had it had a first big day of trading. very happy with the capital rating that came along with the spac. just excited for the company to be public. now we can have public security. vonnie: what was the attraction to a spac in particular? why did the founders decide to tie themselves to going public

in this particular way? >> it's a good question. i think that for open-door, this transaction made sense. whether you go public through a spac, ipo, public on day two,sting, you are just a public company. the most important thing was to get to the finish line, raise enough capital so that the transaction is worthwhile and also, have the opportunity to and your story to investors build a book of investors that you want in your company. open-door the opportunity to have all those pieces so it was a good transaction for the company. is one pending, a very interesting one. the firm for payments ipo. can you tell us how you

anticipate that will go? lucky to beery involved with something great companies. a lot of them have tapped the public market. we are very excited about the future. i can't speak specifically to the timeline of their public offering. are in the business they is quite attractive. their filings are public. you can see they have grown quite a bit. we are very excited about the prospects for a firm as well as the other companies. >> nobody has been expecting this to pan out the way it did. really extraordinarily shocked. frontier nowext that we have gotten through this pandemic to a certain extent?

>> the pandemic has accelerated a digital transformation that has occurred across many industries. they promised simplicity speed. this is also a secure way to transact. people are moving from urban centers to suburban centers. they want more space to be able to work from home, that is something that i don't think we'll switch off when the pandemic comes to an end. you have a supply and demand imbalance. i think open-door is a big beneficiary. my expectations for open-door, these trends don't end when covid ends. i think you will see a lot in

the other industries like travel, airbnb, etc.. >> we will have you back, thank you so much for joining us. that is offer for us on this edition of bloomberg technology. ♪

>> this is bloomberg daybreak middle east. concerns about the reported market to just coronavirus , in thein the u.k. advanced travel from britain which now faces supply shortages. in dubai with equities following the most since m