Restart the economy. Some of the money being earmarked for 5g and broadband. And new developments in the house investigation into big tex. Bloomberg has learned that the facebook ceo and alphabet ceo will testify if called along with amazon ceo jeff bezos. Lets talk about the markets. Abigail doolittle joining us. Another wild day. Talk to us about the main drivers. Abigail a roller coaster day. During the day out with that alleged tone. Some positivity around a possible cure for the virus. Plus, retail sales, the best on record. Then, virus news coming out to beijing closing schools, plus texas hospitalizations at a record high, florida at a record high. Netnet, we had stocks close slightly higher. Apple of for a third day, big driver, getting a boost from price target standpoint from citigroup to a street high of 400. Bank getting an upgrade at of america. Indication down very slightly. , stock on thee move to the downside. That is oracle. They reported their fiscal fourthquarter, disappointing relative to revenues. That is really a tell that the covid19 Company Pandemic could be weighing on the corporate i. T. While we have this strong at ,ome Technology Spending corporate i. T. Spending has been weaker. That could be worrisome as we think about the year ahead. Retailyou also mentioned sales being a driver. We know the president was boasting about the but the numbers still below what they were precovid. From a growth standpoint, up 17. 7 . However, there was such a big drop prior to that, from a numbers standpoint, we are nowhere close to recovered. Huge surge for certain areas such as clothing and accessories. Food services, gas stations, cars are lower. Not surprising with people home. Its where we also had a lot of strength, anything to do with the home. Furnishing, decorating, home improvement. People are trying to make it more comfortable. We look at a breakdown for the retail sector, not surprisingly, brick and mortar. Nordstrom up 13 . Also, groupon. Fore are coupons and deals brick and mortar foundations. Those stocks surging. Stayathome retail, not so much. Email and etsy higher but really underperforming the other retail winners. This idea of stayathome stocks, reopening stocks, lots of tension. Well be here to follow it. Emily interesting. I know that plenty of desks have been bought in this house. Abigail doolittle for us in new york. The Trump Administration touting its latest proposal to get the economy going. Bloomberg has learned trump infrastructure plan has called for spending almost a trillion dollars on infrastructure. Most of the money would be set aside for traditional projects 5g some would be spent on projects and rural broadband. What is significant about the latest plan and what stands out to you . Josh we know that democrats have a proposal to essentially beef up and expiring law. We are not sure what President Trump wants to do. Did he want to roll something on infrastructure maybe smaller, or does he want his own thing . It looks like door number two. We know that the department of transportation is preparing a proposal on behalf of the administration. We understand it is about a trillion dollars. Four months ago, before the pandemic, 10 years. The blueprint, they wanted about 20 of that for additional infrastructure type stuff beyond the static roads and bridges. It looks like they are maybe building off of that. I think it is clear that on both sides of the aisle we have momentum in congress for at least something infrastructure related. In septemberes just before the vote. How much of this might go to the more techy pursuits like 5g, like broadband. I think lobbyists, start your engines. It will probably play out a lot like the initial virus aid to build it. Want sort of they nontraditional infrastructure, if you will, to be able to access . 20 on the dollar. This could potentially be bigmoney, something on the order of nearly 200 billion. Hanging over all of this is at thet negative views from president on china. He blames china for not doing enough to quell the virus. Can see the pressure continuing to ratchet up on china. Ratcheting up pressure on huawei, chinese telecoms, a nonchinese solution to build out infrastructure. That they arees leaning on. I do think that the landscape is being set here for something to be done in a way that at least themizes the role of chinese role in 5g. Emily the president held a press conference earlier about police reform, then veered off script. Obviously, so much still happening in this country. You are seeing a resurgence of cases in arizona, oklahoma, florida, texas. Also beijing. How do you expect the . Dministration to confront this josh there is an oped tomorrow in the wall street journal by the Vice President , saying that there is no second wave. All of these states that look like they are having problems are having their first wave. That includes oklahoma, where the president will hold a rally this saturday. Arizona, florida. The u. S. Is not out of the woods with the virus. The president is advocating reopening without doing a lot of things that might make things smoother, like encouraging social distancing, wearing a mask himself. I think the president is kind of hoping that this will continue to decline. A second wave, most epidemiologists expect to come. But we are still in the first wave and many states are taking steps to loosen restrictions that could help it to continue to roll. Emily a tale of two americas coming to you from our socially distanced home studio. Thank you, Josh Wingrove come our white house reporter. Up, oracle shares sliding after reporting results. We will talk about what else is happening in big tech, next. This is bloomberg. Shares downe sharply in late trading after reporting quarterly results. The Company Feeling the impact from the pandemic, and not in a good way. Thesehat is your take on results and how oracle seems to be weathering or not weathering covid19. And a lot of ways, the results are not too big of a surprise. Oracle, they are a leader in the relational database area. Human capital management. Enterprisell Huge Software types of programs. It is not too big a surprise that they came in a little bit light. One of the statistics was their Cloud Service. Support number came in at about 6. 85 billion. That is below what i was looking for, about 7 billion. Not too big a surprise. That is that they again are still trying to make that migration as being a pure player, more of a cloud company. Older line is an tech company, or aws or microsoft that has been successful in making that migration. They have still not quite gotten there yet and i think that is what showed up in these numbers today. Emily we are listening to the Earnings Call right now, saying they are working with their clients on resuming deals, also signing up new clients. How is oracle performing compared to some of the competitors out there like salesforce . Are they in a demonstrably worse position in the pandemic than some of their counterparts . They are so enterprise focused. Salesforce, they have about a market share in the cloud space. Oracle only has about 6 market share. A huge base of people who use their Database Software that they can then convert those in the cloud. I think that is where they have an in, where they already have the client. Idea thatem on the they are using salesforce. Emily continuing to look into customers delayed payments but they are expecting to recoup a lot of those delayed payments. We are going to continue to follow these headlines as they roll in. Want to ask you we know that the federal looking intos been antitrust violations from facebook and google. Those executives are willing to testify if necessary, jeff bezos, also he is willing to testify as well. How big a risk do you think these federal probes are into these various companies . I dont foresee any sort of legislation that will come out in the next year that will, say, breakup amazon or apple or anything like that. The late 90s, when there was talk about breaking up microsoft. If we look at some of these chargeoffs that have occurred more recently, for example, we know that facebook did a huge chargeoff about three or four quarters ago where they a more dightest where they amortize a huge payment. What it looks to me is more like something down the road where these companies are going to be forced to kind of write a check and take a loss on a quarter to meet the demand of legislators in regards to violations they may have. I dont see across the board breakup of, lets say im a google. Say, google. s emily we dont know about tim cooks willingness to testify in these u. S. Congressional investigations. We do know that the eu has opened two antitrust probes into apple. We do have a statement from apple. These probes into the app store and apple pay. The Statement Today saying it is disappointing that the European Commission is advancing baseless complaints from a handful of companies that simply want a free ride and dont want to play by the same rules. We want to maintain a level Playing Field where anyone with determination and a great idea can succeed. Some pretty Large Companies like spotify have complained to the eu about apples practices. What is your take on how big a risk this could be . That is interesting because about 70 in the last quarter, we know the services side, apple pay come everything they do with their apps and so forth, that is a big component Going Forward. That is a big part of their growth recipe Going Forward and a big part of offsetting some of the slowness. A lot of people are not looking to probably the Holiday Quarter or maybe christmas when we get the 5g, which would be the next ramp up in terms of people upgrading their phones. This is something we might have to follow if they write off or change what they are doing in this area, obviously a huge growth area. Facebook has been facing a storm of controversy about how they moderate content on their platform, not labeling or fact a fairly incendiary tweet by President Trump. Do you see this as a risk to the longterm business given that it is an ad based business. Spending 5250 6 billion in Artificial Intelligence amongst other things to clean this up. It seems like it still has been a challenge for them. You can imagine how difficult it would be on the platforms that facebook has to factcheck or make sure the information is not false and so forth on everything being said. T is also a huge endeavor it obviously drains their bottom eps in terms of ebitda and compared to topline growth. And profits are essentially going to be negative in terms of growth. All right, many stories there. We will continue to follow them. Synovus trust, always good to have you on the show. Coming up, employers are rushing to innovate social distancing at work. Software weome new will tell you about. Will it be enough . We will discuss. This is bloomberg. Emily amazon is deploying new social distancing software across its warehouses. The software called distance assistant warns employees when they are too close to their colleagues. It is the latest effort by the ecommerce giant to address their practices. I want to get to bloombergs math day bloombergs matt day with the details. Little bitworks a like the augmented Reality Experience from pokemon go. Employees are filmed on video cameras with depth sensors. They see themselves in footage when it happens. Superimposed around them, little green circles follow them around. Thaton as software detects someone comes to close to them, that circle turns red. It is a little feedback that allows people in hightraffic areas know that they have to spread out. Emily how has social distancing inside the warehouses been working up to this point . We know there has been a lot of work lace agitation around this issue. We know there have been some deaths of covid19 among amazon employees. Delivering astill quickly as they are but still staying safe inside . The speed at which they have been able to move people through their warehouses, they have spread out people, used analog distancing measures. Amazon thinks they have a pretty good hold on things. Processes ino their warehouse. Employees say there are still some tasks where it is difficult to stay apart from people and lax enforcement within the warehouses. Word since you used the police, i know in some ways we wantant win but workers to be safe, but at the same time this new technology sounds a little bit big brother. How is amazon addressing potential privacy concerns, especially given all the discussion of how lawenforcement uses and applies technology . Matt amazon has taken a couple unusual steps with this software. Usually, this would run as a Cloud Service on amazon servers. That is not the case with this. They say this is run locally with a computer, not up to not uploaded to the internet, and it is not stored. It is only live. That will probably draw some skepticism for a company that does story lot of data. They have taken some steps to make sure this could not be used potentially for nefarious person tracking. Has itseantime, amazon own facial Recognition Software it was providing to law enforcement. It has paused the use of that for i believe a year so that congress can work on legislation about how this technology can be used. What is the latest on that . Matt they have not explained much about what this policy will mean for users of the tech other than Police Departments cannot use their facial recognition tools for a year. They were talking about broader rules but that is not clear whether that means amazon standards. ,mily bloombergs matt day thanks for continuing to keep us updated on amazons efforts. Coming up, cisco expanding its efforts to fight covid19. Now, systemic racism. With half 1 billion in new commitment. Ciscosspeak with executive Vice President and chief people officer next. This is bloomberg. Emily welcome back to Bloomberg Technology go technology. Cisco is redirecting some of their covid19 funds to fight systemic racism. Is turning one of their regular conferences into a form for discussion about how stakeholder capitalism is not enough. I want to bring in the chief people officer for cisco here. Thank you for joining us. Obviously, this is a big number. Where this money is going and why you think it is best being redirected. Its wonderful to be with you. The first thing i would say is that for over 30 years, cisco has been a big believer in supporting immunities around the globe. This is important to us and has shaped the way we show up and train around the globe. The approach we have taken is really to focus on four key areas. We started first with covid and then started to look at how we can leverage funds to address racism. What we are doing is first looking at those that are most vulnerable. The second thing we are doing which is very close to our culture and what we care about is looking at family and communities. We are then looking at resilience and research and how role. Y a bigger whole attly, we are really looking the strategic imperative for those initiatives that can make a difference. Our dollars have really been spent in these four key areas. Weeksou heard about two ago is we have decided to take a bigger stand as it relates to racism. So we have given money to Many Organizations that we think can play a significant role. We arewould imagine, having a lot of conversations and taking actions internally as well. Emily lets talk about those conversations. Companies did not necessarily take a stand on internal issues. I know that is something cisco has increasingly decided has to take a stand and has these conversations internally. How do you internally draw the line between work and politics, work and social issues . Or are they simply increasingly intertwined . Such a great question and a good point. We decided we had to have this conversation. There was a stat shared recently that basically said the workplace is where we experience difference. 70 of people said they do not experience difference in their home or personal lives but do in the work lays. I think it is all the more reason for us to truly lean into it because this is where we are going to make significant progress. Its true that this was once seen as something you did not talk about in the work race, the realization we have had is if we dont, we are not going to see the change that is required. After hearing about the murder of george floyd, what we did was call and employee meeting. We invited Brian Stevenson from the equal Justice Initiative and we just had this conversation where we were educating our teams and sharing our perspective. Something i think is so important is that we should not bring politics into racism. Something that should not be considered a political issue and we are doing our best to navigate that with our employees. Emily we have been having a lot of conversations on this on our show. Us that theseold commitments in general are nice but they also ring hollow. Why is it only that when companies are pushed into a corner when black lives Matter Movement rises up that companies are just doing this now. It something they should have been doing all along. What is your response to that . Fran i think that is incredibly fair. When i think about the comments and great messages i hear other companies putting out there, what employees are looking for is are we living this internally . When employees feel their companies are committed to change and they see these significant changes and improvements in the community. Thats when you start to find momentum. Of us, the first week january, chuck gathered us in our homes with 20 of our africanamerican leaders. We spent about three hours just listening to their experiences at cisco. Lot. That, we learned a what we knew more than anything else was we had to take action. We created a 100 day sprint and the results of that was we achieved 100 10 of our University Hiring goal. 100 of our University Hiring goal. We did a 100 pari