President trump saying they can pursue a deal but if it does not get done by september 15, it will shut down. We are standing by for the president to give a news briefing, where he might elaborate on his position. Also, the administration indicating it will pursue extending Unemployment Benefits on its own. Joining us now to discuss the market moves, abigail doolittle, how has been covering all the ups and downs for us. Today, a was mostly up. Sort of a perfect storm of events. Last week, we had decreed earnings reports from apple, amazon, and facebook. We also had Strong Manufacturing data in the form of the ism manufacturing number. At the end of the day, the s p 500 up. The nasdaq carving out another record high of 1. 4 . Apple and microsoft, those were the big winners. Also, biotech. Againste for a vaccine the virus. Not everyone is buying into this rally. But there you have it in terms of the big winners on the day. Over the last two days, it is incredible. 15 rabolic spike of bound of about 15 for apple. Valuations, high. That is something to keep in mind of. On the way up, that is generally not being looked at too closely. Microsoft, that tiktok news. Today, microsoft soaring on at once again. Amazon and alphabet not participating in todays rally. Lower lastd been friday on somewhat of a mixed quarter. Netit, big tech is in charge. These are the companies that seem to be doing real well in this pandemic environment. Taylor emily this microsoft news is obviously going to be big throughout the show. They come out over the weekend and confirm they are trying to buy tiktok. The president huge search with a lot of potential questions around this deal. Apple hitting a record high. What are some interesting trends within that . Abigail friday, the markets were not necessarily higher. Until that microsoft news came out, the possibility that they are interested in buying tiktok, that is when microsoft surged higher. That is when apple really took off. You seechart shows, these mega caps getting more mega. Close to 2 trillion, if you can believe it. Andso far behind, microsoft amazon. That is the trillion dollar club. I think that this potential merger Shows Confidence on the part of these big tech companies, that the future is ok, that a potential investment could be made. I think it is certainly helping to buoy the confidence on behalf of tech traders in particular. For layingks so much the groundwork for us. We are standing by for the president. Tiktoknt trump saying will have until september 15 to make a deal. Trump telling reporters at the white house today that he is ok with the idea. He also said the federal government should be paid a substantial amount of money as part of the deal. , what is your take on this . Angles. Different made a niceoft pivot several years ago into the cloud with microsoft azure. Before that, the stock had been dormant for 10 or 15 years. They have had success with microsoft azure. But this would bring them into social media for the first time and all of those social media related and revenues, this could be a real kickstarter for microsoft. Of course, it depends on what kind of deal is struck. Emily you own a good chunk of microsoft. That said, this would be a completely different kind of deal than microsoft has done before. Does that give you any concern, have foughts they antitrust issues in the past. Paul you raise a really good point. They have been a Successful Company but one thing they have been bad at is the consumer side of the house. At ceo, since he came in 2014, they will do this right. This is probably the most exciting not just social media product, but tech product that has come down the pipe in a long time so if they have a chance to grab it, they should. Emily this statement coming in from tiktok. Tiktok is loved by a hundred million americans. It will be here for many years to come. Confirming that they had these talks, that they are committed to aquiring tiktok subject complete security review. I lived in china in 2008 when the Chinese Government blocked facebook and twitter. At the time, we did not know how long it would last but now it is going on 12 years. What do you make of the president trying to use his power to ban a company that 100 million americans are using . Paul i think it is absurd. To follow up today with a conversation that if microsoft indeed buys tiktok, that the government should have some kind of founders fee paid. Unbelievable. However, i think given the concerns about tiktok i would never have as many concerns about this company then, say, huawei. This is an opportunity for microsoft and i hope they can get through the obstacles to get the deal done. But, absurd, some of the comments made today by the president. Emily even microsoft saying in their blog that they are committed to providing economic benefits to the United States. We are also watching this big rally in tech stocks. Not just microsoft shares, but apple. You and the past have said that apple was overvalued in the past. Paul i still think it is overvalued. I have it in the portfolio. It is a fairly large position. But absolutely in, relatively a little bit light. Notice, you still have at least 40 of their revenue is for the iphone. I was happy to see when they reported their earnings last 5g ishat the delay in going from september only about to the october timeframe. That still is a great dependency. Over time, smartphones mature. The other thing that really as its stockas far work,was some remote students at home buying ipads and max. If and when we solve the covid riddle, that business will go back to where it came from as recently as a year ago. So if you are planning your hopes on the iphone, the mac, and the ipad, it is maturing and, in the future, the growth there has to slow dramatically. So that, with the current stock rice, has me worried stock price, has me worried. I have some facebook. One of the things we have spoken about so far is, if microsoft does the tiktok deal, zuckerberg and facebook can go back to congressional testimony and say, look, we dont dominate the whole space. We have microsoft taking on a really big social media property. So they might become a more interesting story in directly with the hook up between microsoft and tiktok because they can probably stave off those regulators worried about facebook becoming too powerful. Got nvidia. E also obviously a lot of activity in the chip space. What are some dark horses we should be watching or names we should stay away from . Paul i would be very careful about blindly adding tech stocks. I think my two best ideas, not in the near term but over the next couple of years, micron mu, and asml. I think those companies will have big moves. Unfortunately, i think some of the big moves that have already otherade in some of the big names. Emily thank you so much for joining us and sharing your insights. We will be watching to see what moves you make. Coming more, coming up, more of bloomberg technology. Google making a big investment in the Security Company adt. This is bloomberg. The security of system provider adt sword today after google announced taking a 6. 6 stake in the company. Thecompanys plan to create next generation of smart Home Security, they say. Garrett, talk to us about the motivation for this deal. I find it interesting given that google is right now in the spotlight for antitrust concerns, surveillance issues, yet they are investing in a home Security Company. I think in terms of antitrust, google will argue that they are not a dominant player when it comes to security. They make devices such as smart locks, smart cameras. In terms of the overall google picture, making Home Security devices is even smaller. I think the motivation, if they can kind of push this through, is to say, we need someone to go out and distribute our devices. Amazon has their own marketplace, apple has all the stores. Google has a tough time getting their products out to people. With this deal with adt, they will use this companys 20,000 employees. More than 5000 rns dollars. Thousands more are salespeople, will be going out, pounding the pavement, and say, if you want sign a home agreement with us, you need google hardware. Given how much data we were to give to google about ourselves. We already give to google about ourselves. We are all concerned about privacy. We say we are concerned about privacy, yet people keep putting Smart Devices in their home. The security market, in terms of smart products, is growing around 20 every year. This is something that goes from early adopter to a mainstream product. I would say regular people who are not necessarily always the ones who run out and buy the latest gadget, are putting these all over their homes. Although many people say they are concerned about google, some suggest otherwise. About what does this say the success of nest . Google bought nest years ago. Nest already makes some of these products. With that acquisition not going as well as people hoped . Gerrit the nest products are relatively popular. It looks as if they are potentiallycan with amazonseck with ring. Nest and ring have doubledigit market share. It is not as if amazon is totally destroying google in that market. But the real prize here is getting control of the consumers home. Amazon if you have an alexa device, you want to probably get other google products. Now, if they are saying, maybe somebody is installing a google smart Security System for the first time, they will probably end up buying more google devices. Google will be able to advertise to those people, sell them services, maybe convince them to versusandroid phone iphone. Emily all right, interesting development. Thank you so much for giving us the update on that deal. Keepg up, snap trying to tempo with its competitors by offering a new music feature. This is bloomberg. Snapchat is making its way into the music business, landing a deal with tom music companies, securing the ability to add licensed songs to the platform, a feature similar and familiar to tiktok and instagram. Joining us, lucas shaw, who covers media and entertainment for bloomberg. Important about how this is for snap . Lucas it has been a long time coming. Snap has wanted to have some kind of music licensing for years. I think, considering the uncertainty around tiktok and kind of its ongoing competition with both tiktok and instagram, this is a feature that users clearly like. They like sharing videos set to music. If you want to do that now, you have to play music with your phone. You are probably breaking the law. This makes it so it is a more friendly experience and a legal one, and could give snap some momentum. Emily just in the last few ,eeks, its main competitor facebook, finally got the rights to music videos. Where does that leave snap sort of amidst the competition . Are a nicec videos addition for facebook, but that is really an area where youtube is dominant. I dont know how likely it is that any rival social app is going to chip away with it. For facebook sense and instagram given the length of videos people watch there. Snap is primarily a messaging app. That not having music videos is as big a deal for them. Emily what do you see next in terms of the evolution of this . Obviously, companies are fighting for mind share and timeshare and some are doing better than others. Lucas you have a competition for attention between a lot of different apps. Music has been central to all of them. It is interesting to see a lot of these Services Licensing music in a way they have not in a long time. They are looking for ways to try to carve out their respective niches, where snap is for messaging. In bothm has dabbled photo sharing and video. But i think we are seeing them come to the same place, which is they have tried to say, this is our lane, yet they are all getting music licenses to kind of do the same thing. Is howmain selling point popular they are with the main demographic, how that demo may not use instagram as much as an older age group. What does that mean for the industry right now, in the middle of a pandemic . Does this help musicians . With facebook and snap definitely help the record companies. This is a source of revenue that they were just not getting before. The snap deal is certainly smaller than the facebook deal that precedes it. Told, it helps offset money they are not getting from selling physical albums and all sort of money that is not coming in right now. Emily all right, lucas shaw, thanks so much for your reporting on this. Coming, we are just three short months away from one of those critical elections in our lifetime, the u. S. President ial election. We will talk to a former cia officer about how safe our election is and can be. We are standing by for the president to give another news briefing. We will take you there as soon as it begins. This is bloomberg. Emily welcome back to bloomberg technology. Im emily chang. The u. S. President ial election is now exactly three months away to the day. But with more mailin ballots than likely ever, seeing that we are in the middle of a pandemic, how safe will the election be . Will the integrity of this election be a protected . Joining us to discuss as a visiting fellow at cornell techs Digital Life Initiative at a former cia officer and the former head of Election Integrity at facebook. So nice to have you with us and interested in hearing your thoughts. This will obviously be a big election, unprecedented election given the number of mailin ballots we are expecting. What are your biggest concerns as we move into this election now three months away . My biggest concerns there are so many. I would say the few i focus on the most on the one hand, especially now that we are in the middle of a pandemic and everyone is home more than ever and everyone is relying on the internet more than ever is how much this will play out on social media. Distress will be sown in the process. How much confusion intentionally sown by some political operatives. That is a big concert in terms of how people will trust the election, trust the process, trust the outcome. Of course, separately, there a big concern about how mailin voting is going to work, especially when we have a president who keeps tweeting and posting about how we should entrust that process. These are some of the biggest concerns about how to help ensure we still have an election that we can trust and that is not manipulated. Emily counting the ballots is going to take time, so we may not know who wins once again on election night. You recently participated in a wargame simulation, a contested trump and biden election. You played the role of social media. What did you learn from that . Yael that was really interesting. An Organization Called the transition integrity project. We really broke up into camps. Some people played biden, some people played trump. A lot of big republicans and democrats played social media. We went through different scenarios, what might happen. It was a november 3 onward scenario planning and what might happen if it is a close election , what might happen if biden or trump wins by a lot. For me, playing the social media role, part of what really concerned me was while a lot of the political operatives were thinking in political terms and thinking about how past elections have gone and some of the scenarios that might go wrong, i think a lot of the element of how this plays out online and on social media was a bit more concerning. At least, to me it was. You know, whats interesting is normally my background in terms of my National Security background, you always plan for the worst and hope for the best. You go for the absolute worst Case Scenario which is close, contested election, no results for weeks. Possibly, according to some of the scenarios, a president that refuses to concede. Things blow up on social media. Nobody knows what to trust. Then, you build out all the ways to mitigate against that, as opposed to just saying theres no way thats going to happen, that is too extreme. I think this a lot of concern from a lot of different people that we could get to a point americansmber 3 hits, are fairly used to getting there Election Results on election night. It takes a few weeks between counting the mailin ballots and trying to keep people calm. Meanwhile, we continue to have political operatives, including our president , tweeting and posting on facebook that it has been stolen, its illegitimate. Trying to call on some of his supporters to go out on the streets. This a lot of really potentially scary scenarios. To,y now, as you alluded facebook is an incredibly important player here. The integrity of the election on facebook. You have worn a lot of hats in your career. You have been a National Security advisor to Vice President biden. You work for the cia. You said the most difficult job of your career was working in elections integrity at facebook. Tell us about that experience. I know it was shortlived. You worked there for just six months. What was that experience like and what did you learn from it . Yael sure. I dont know i would say it was the most difficult. I definitely had much more challenging time in the National Security world but it was difficult to try to bring the type of analysis i would have been bringing which is really looking at what are the key issues, what are the systemic issues . Why is our platform being by russian and foreign operatives and now we see the same thing with domestic actors. What can we do to make sure this doesnt happen . The reason why it was really difficult is that i come from a world where you plan for the worst Case Scenario and you go through every step of trying to mitigate to make sure that scenario does that happen. With facebook, if i would when i tried to highlight plans for combating Voter Suppression in political advertising, the answers we get back are very tech driven. What is the scale . Are we already seeing this on the platform . I kept trying to ask played i am projecting what might happen so that we can ensure we are protecting the platform and americans against this possibility. It was a fairly reactionary. It was there is a press scandal right now over x, y or z, what can we do to make sure something we can scale globally and that is not whats going to protect against the real threats we are talking about now. Emily ok, we have to leave it there. Lets listen into the president. Pres. Trump info