And Melinda Gates foundation, bill gates, for a wideranging interview about the pandemic. The Foundation Contributed almost 350 million to fight covid19 around the world. We also talked about the possibility of microsoft buying tictoc. We are standing by for a news briefing with the president , after secretary of state mike pompeo signaled the u. S. Will try to ban other Chinese Technology beyond tictoc in the name of National Security. I want to get to nick, who ,overs the state Department Secretary of state pompeo signaling the u. S. Would urge apple and google from removing certain chinese apps from their app stores, which would be quite dramatic. Talk about what he is saying. Moment, it looks like what secretary pompeo is doing is issuing guidelines or recommendations, warnings, i guess, where he is telling app apps, these chinese tictoc and we chat, are not safe , and we dont think you should include them in your app stores. He also said, we dont think you should allow your apps to be prebundled or preinstalled into chinese smartphones from huawei and other chinese companies. Orders rightnot now. He is not delivering an ultimatum, but it does signal an expansion of this administrations war on these chinese at, and expansion of what the u. S. Perceives as a National Security threat. Spokecording to sources i to within the state department, a harbinger of what may be to come, so you could see that try to put teeth on these recommendations with actual regulations that would restrict u. S. App stores, google and apple, for example, from including apps unless they give certain guarantees about protections of consumer data. That raises the question of how these companies will respond, and goes back to the central question, what howard is the u. S. Government and president have . Can the president force the sale of a Chinese Company to a u. S. Company, or ban a Chinese Company . Does the power of the government to extend this far . It is a great question and one they have not definitively answered. We expect the administration will announce new regulations that Gain Authority from a couple of executive orders President Trump signed last year, one specifically on the i. T. The safety of supply chain. We think they will put teeth on this. But the big issue right now is, according to the administration, this is much more, if you are a u. S. Company, you are putting your finger in the year to test which way the wind is blowing. Well, secretary pompeo just gave you a very big hint of where they are headed, and they want you to be more guarded and careful of your willingness to have chinese apps in the app store. Emily we are going to continue to follow this story, bloombergs nick wadhams, thank you for that update. Part of my whiteranging interview with bill gates, we know microsoft is in talks to buy tictocs u. S. Operations. There are concerns microsoft could be too close to china, given microsofts long history of working in china. Here is what gates said about how microsoft would address National Security issues that have been raised. The whole situation is quite novel in terms of what principles are involved, what principles china should apply to companies in china, are those reciprocal or thought through and predictable . Now. Not at the company we have made investments in china. We have engineers from all over the world, including in china. Microsoft is very careful about it data promises, and will try to have strong relationships globally. We wont do things that are viewed as hostile. Emily what about the app in general . It is very popular. It is is this something you would like to see in the microsoft family . Nice tictocit is created competition through innovation. And it doesnt seem like preventing that innovation from being available makes much sense, when you want things out there. I am not in the target audience, so i am certainly not an expert. I have gotten a lot of education from my youngest daughter about this, and why she spends time on it. Itthey did a great job on and there are a lot of ways to and hopefully that is allowed to happen in some form. Emily but is the Trump Administration in trying to force this Chinese Company to sell tictocs u. S. Operations, or even shut it down in the United States, because it is chinese . Should the company be suggest that subjected to that should the company be subjected to that . 100 million americans are using it. Bill if this is such a clear thing, why wasnt it clear six months ago. If people make investments, they should understand what is allowed and what is not allowed and therefore the reciprocal circle involved in this thing. The rightvent read article. I dont understand what happened on saturday. I am focused on the foundation and the pandemic. Adviceprobably provide at some point, but i am not at the center of the decision being made here. Emily i want to get your thoughts on the antitrust situation. I am sure the hearings have been a bit of deja vu for you, having gone through lengthy review process as yourself. You look at Companies Like apple and amazon and google and facebook and think they have become too powerful . Bill welcome of these companies are shaping the economy. The idea that congressmen get a chance to talk to their leaders and to try and understand what they are doing in terms of media and competition, that all makes sense. They were lucky that there were four of them on the hot seat. I was all by myself with critics next to me. So i guess we are getting nicer to ceos then in the old days. In the old days. I always thought talking about our values in washington was particularly through this pandemic, where these nowanies have done so well, understanding what it is like to be an entrant into this market. There are legitimate issues there that in a scattershot way did get raised. Emily more of my interview with ok coming up. He predicted a massive epidemic years ago. What does he think will happen next . How promising to new treatments and vaccines look to him now . Cloudlater in the show, rackspace goes public today. The ceo joins us next as we datad to him about concerns, privacy, and china in the cloud. This is bloomberg. Yield dumpling now 11 basis points, continuing in the kneejerk riskoff. In 20 income a bill gates predicted a massive epidemic was coming. Here we are. The bill and Melinda Gates foundation has committed more than 350 Million Dollars to fight covid19 around the world. Gates how he believes the rest of the pandemic will play out, how long it will last and when we will come out of it. The fortunately, innovations in dioxin in diagnostics, therapeutics and vaccines will get us largely out of this by the end of 2021. Therapeutics will cut the death rate, but the true ending comes when, between natural infection and the vaccine, we have herd immunity. For rich countries, sometime next year, ideally in the first half. Emily so we are going to be ok . Bill we are certainly going to be ok. We are lucky this wasnt a more fatal disease. I do think that this time we will Pay Attention and have the same type of practice and preparation. Some countries did very, very well. The u. S. Did not. Bill your foundation has given more than 350 million now to fight covid. You are backing a south korean vaccine in particular. Why that vaccine, and are there any others that look promising . Bill we are behind a lot of different vaccines. We are finding manufacturing capacity at many sites, particularly astrazeneca, Johnson Johnson and novavax. We may do that for some other vaccines, but those are the most scalable, low cost, because we are trying to make your weekend and it not just in rich countries, but also developing countries. And it benefits everyone if we achieve that. We are even asking the u. S. To contribute like they have done with other Global Health crises, which so far, they havent gotten around to that. Emily how confident are you we will have a working vaccine that can be distributed in mass quantities by the end of 2020 . Bill well, the initial vaccine in terms of effectiveness against sickness and transmission, wont the ideal. Three goal is for 50 effectiveness, and it may not someas long a duration as of the later constructs will so some of the newer and expensive ones will be mainly used in rich countries as a bit of a stopgap area we would be lucky to have much before the end of the air, but enough that during the first half of next year, a number are very likely to get approved. Then we need to scale up. We need billions of doses to get to the places that have a hard and areng sheltering, already so poor that the economic effects are quite dad dramatic. R it is the biggest quite dramatic. It is the biggest challenge. The right investments were not made, and in the u. S. , the lack of organization around testing and trials has been very disappointing. Years,for so many antifactors, people who say, if they lived through a pandemic like their parents like their grandparents did, they would think differently. Well, here we are and feelings havent changed. How concerned are you about vaccine misinformation . And that so many people out there might not get it, even if available . Have hopefully we will people of both parties who are trusted, speaking out in a credible way, people who have been known to admit mistakes and available credibility over time with various constituencies. But you do have to worry, because we do need a lot of people to take the vaccine to get that full herd immunity. Emily should have be voluntary or mandatory . Bill making something mandatory can often backfire, even when you are doing a favor to the community. So i doubt they will choose that. You might say, if you are going to work in an Old Folks Home or have exposure to elderly people, there might be circumstances where it would be required. Emily what about schools, should it be mandatory . I doubt thatn, will be a primary thing. Are elderlyhers who or live in multigenerational households where they necessarily have exposure to older people, they would be a good target. That is more leveraged than doing the full student body at times when the vaccine is going to be scarce. As it gets more available, yes, you would like to go for young ofple, particularly if one the constructs is pretty good at transmission blocking. Emily you already have countries like the United States that are moving to lock down vaccine supplies, buying up huge supplies of potential vaccines and buying the gear needed to administer them. How harmful is that . If one company invents the vaccine, we are saying that they should let other companies manufacture it. It is exemplary that a number of companies have committed to make this a nonprofit activity, just rake even, and for the poorest companies, just at their marginal costs. We are part of funding those extra factories being built, and they will be standing by for that approval. The u. S. As yet has not come up with procurement money for poor countries to get access. It is possible that will get and the supplemental bill, i am encouraging republicans and democrats to include 8 billion, half for therapeutics, half for vaccine, in whatever relief bill gets passed, so the u. S. Doesnt look selfish. We deserve credit. D than anynded more r other country, but on procurement, we have just taken care of ourselves. So if we just add this, which is just 1 of the bill, it is a typical u. S. Picture where we show up strategically, humanely, humanitarian, and we protect ourselves by voiding the disease coming back in a big way. Emily we have talked less about therapeutics. What have you seen in terms of promising treatments for this horrible disease . I wonder if drugs are going to play a more Important Role than we know . Bill absolutely. It is easy to trial drugs, although the u. S. Has been very disorganized. We used the u. K. Trial that we funded part of. Onead had enough proof remdesivir to move ahead with that. There are two other antivirals availablet are orally , there are multiple antibodies coming, and quite a few additional immune modulators. So between those different classes of drugs, we should be able to drop the death rate a lot. It has already dropped quite a bit as doctors realized not to use ventilators much, to use oxygen earlier, use the prone the drugs including remdesivir that we have. But before the end of the year, we will have antibodies that those could be quite dramatic in benefits. Emily there was a lot of Bad Information about therapeutics out there. These are some of the myths, hydroxychloroquine being one of them. Bill you know, it is an age of science but sometimes it doesnt feel that way. Testing,ideas about hydroxychloroquine, the numbers are quite clear. It got confused because the trials were done so poorly but there is lots of good things coming in the therapeutic area that are really proven to work without severe side effects. Little bit slow, but a lot of good news to come in that domain. Emily there are some raging internet conspiracy theories out there about you wanting to implant chips in people via a vaccine, and you are the center of some frankly ludicrous narratives. Does that upset you personally . How do you feel about that . Bill it is kind of strange, because they take the fact i am involved in vaccines, that part is true. It involves saving millions of lives from lots of different diseases, including hiv and malaria. They just reverse it that instead of giving money to save lives, i am aching money to get rid of lives. And by inverting it ascribing ill intent, it takes this complex situation that was unexpected and it makes it feel like it is more understandable. If that stops people from taking the vaccine or looking at the latest data about how they should hate, including wearing a mask, then that is a big problem. This t have expected i would have expected this, it is just a bit strange that it has been politicized in the conspiracy people are having a heyday. Emily much more on that conversation with bill gates to come. Went publicackspace today, going in the bottom going in the opposite direction, starting at the bottom, still down over 20 on the day. Joining us to discuss rackspace s ceo kevin jones paid kevin, what is your take on what happened and why investors received it this way . Kevin emily,f all, thank you, for having me on. We have been pleased overall with the ipo process. We have a great group of initial investors. Keep in mind, this is one of the largest tech ipos of the year. We are actually just thrilled to reach this milestone and are excited to be in the public market. Today is day one. We are not focused on todays stock price, we are focused on value over the longterm for customers and shareholders and extending our position as the leading peer play multicloud company. Emily is one of the worst ipo showings for that year. Certainly you have something to prove. One criticism has been, since you were taken private in 2016, not a lot has changed. Withaid, dont compete aws, microsoft and google. What has changed in your view . We are a transformed company in the last four years. One of the changes, you tioned, prior to be taken prior to being taken private in 2016, we competed with aws and hyper scalars. Today, we do not compete with them. Aws, microsoft and google are our strongest partners. Another thing has changed. We have done for acquisitions that have revolutionized applicationsfour that have revolutionized solutions, we have security market, wethe public are consolidating our leadership position in the public cloud ecosystem, so the company is much effort. We have one took a 20,000 customers in one of the 20 countries. We are expanding rapidly, geographically. And if you just look at sales result in the second quarter, our sales grew one have 7 in the second quarter. We have accelerating Revenue Growth helping our customers navigate the maze of cloud complexity. Becominge cloud is even more controversial, and i am curious given how much of our data is housed there, and administration concerns about National Security and china. Ast is your take on all this data and privacy issues evolve . Kevin great question and as it ofates to multicloud, one the things not just in the public sector, but even privatesector Companies Want to make sure of is, will my data be secure . Dompanies invest a lot in r and they want to make share make sure their electoral properties protected. Security is paramount. But this is an ongoing situation. Bad guys keep getting more sophisticated hacking attempts occur even more frequently in the pandemic. We have seen hacking attempts into customer environments increased 300 , but at the same time, we have got incredible innovation by firms like Rackspace Technology as well as hyper scalars at other firms. We are on the right track. Day by day, it is a battle that has to be one in the trenches. Emily so what is next when it comes to that battle . Where are you being most vigilant . Rackspace kevin when it comes to security, data dominance is absolutely critical. Having the proper design of a security environment and having the strategy laid out and bought into by the board in the interests of our customers, absolutely critical. Having active management of incidents in a methodical and operational way is critical. Making sure all the virus protection is done in customers environments, that is another thing that can harden the security environment for customers. And finally, making sure you partner with the best technology providers, like us. And certainly since we moved into leadership in multicloud, it has been really important for us to enhance security. Will have to leave it there, kevin jones, ceo of rackspace. Coming up, dr. Anthony fauci joins us on the latest state of the pandemic, next. This is bloomberg. Welcome back to bloomberg technology. Im emily chang. Imitation is sometimes the sincerest form of flattery, and social media is no exception. They spokes instagram has launched a tictoc competitor, some might say clone, in more than 50 companies per bloombergs sarah frier joins us. Should i say things are about to get real . Sarah [laughter] good pond, emily. [laughter] pun emily. Good timing for the real launch, the u. S. Threatening tictocs existence,