China has now sanctioned almost a dozen u. S. Officials in retaliation after the u. S. Sanctioned several chinese officials last week. We are standing by for the president to deliver another is briefing after he signed four executive orders over the weekend on issues including payroll taxes, student loans, while lawmakers are still negotiating a possible broader relief bill. Joining us to discuss, abigail doolittle, looking at the ups and downs. Were there any clear drivers in one direction today . Abigail there really were not. Then, the bulls were out, we reverse lower. The nasdaq had been lower all day. But we saw today is what some are calling the reopening rotation. Some of the cyclical sectors, those climbed. As we saw those sectors climb, that is when some of the tech stock. Apple rebounded. The dow also backfire. The nasdaq did not make enough. Seventh update in a row. Longest winning streak since 2017. The russell 2000, that shows that divergence, the more value and cyclically oriented indexes. As for some of the individual movers. Beneath the surface, it is pretty interesting here, at least to me. Andresorts and mary at marriott, huge wins on the day. They have had a difficult year with the pandemic. Today, investors going back into the stocks. Of course, china is now allowing macau,s to go back into issuing tourist visas for the First Time Since january on a trial basis. Occupancy and china is improving. People really looking for those bright spots. The big winner is apple, up 1. 5 . Raisedhave dan ives, he his price target to a street saying this, company is close to a 2 trillion market cap. Have dan ives last week, talking about how devastating a potential ban of u. S. Companies working with we chat could be. Talk to us a little bit about some of the other tech names. Apple, microsoft, twitter all sort of tied into this tiktok situation. Abigail it is really interesting to see. I want to point out the degree of this possible market cap for apple. If we go into the bloomberg terminal and look at this chart, this is apples percentage of its market cap of the russell 2000. Apples market cap, lets call about 90 of the russell 2000. That really puts into dominantve just how apple is at this point. Twitter popping on this news that they may in fact put in a bid for tiktok. A possible war. Microsoft has confirmed that they are likely to put in a bid. Almost 1. 6cap, trillion. Twitter, about 30 billion. Huge spread. But they possibly will be competing for those tiktok u. S. Assets. Emily so much to examine here. Abigail doolittle, thank you so much. Continuing on this theme of chinese social media apps and their Parent Companies, tiktok now says they plan to sue the Trump Administration. With us now is stewart baker. A former assistant secretary for policy at the department of homeland security. First of all, what do you make s claims, saying they could sue the president as soon as tomorrow. Is it actually unconstitutional or is this well within the president s power . Stewart it is certainly within his statutory power. Anyone can argue that they have binge they have been treated unfairly. All that is really required under the executive order is a determination that tiktok is from an adversary nation and is posing a risk to the National Security of the United States or to the security of americans. Tiktok has had a lot of problems handling data. It is subject to chinese law to a degree that makes it kind of hard for them to argue that none of those things were irrelevant. I am guessing that that lawsuit will make a lot of noise but probably does not prevail. As a you have spent time general counsel at the nsa. You are the host of the weekly cyber law podcast. Do you believe that tiktok is a Security Risk to the United States . Stewart it collects a lot of data, just like a lot of American Companies do, although it probably connect a little more. Where that data is and how it will be made available to foreign governments is still subject to uncertainty. The effect of chinese social media in the United States raises we raises real whethers not just about u. S. Data will be used against u. S. Interests, but whether the news will be tilted the same way that the news in hong kong is now tilted in favor of the chinese government. Legitimate National Security concerns. Emily there are still questions about the logistics of how sales of a u. S. Company could work. Clone fromind of a its chinese counterpart. Could they separate it out and truly address the president s concerns . Truly separate itself from china altogether . Stewart i think you could separate it from china. You would still have some code writers i would suspect in china for the time being. Write code. Ople who from the u. S. Point of view, the biggest worries are what kind of political views are going to end everybodyurfaced for in this medium. Beit is microsoft, we can reasonably sure it will affect the biases of Silicon Valley and not beijing. I dont think the u. S. Government could do a great job separating it, which is why it is very valuable that a large u. S. Company is interested in so they will negotiate can actually make a success of the new u. S. Based tiktok. Emily talk to us about the impact of this when it comes to aktok versus wechat, which is platform larger larger platform. The implications for we chat and tencent are far beyond where they could before tiktok. Stewart you are quite right. Tiktok is a one trick pony and the trick is apparently engrossing but not the sort of thing that you have to live for. We chat, in china, people live out of we chat. They do everything out of wechat. The idea that the United States got would try to put them out of business or make it impossible for them to operate outside of china would make it unlikely. I have a feeling that while the government has been thinking a of theut tiktok because investment committee. The ftc and Justice Department have been investigating them for mishandling data. They have been thinking about tiktok in a long time. I think wechat got tossed in late in the game and the government is now very pleased that they saved themselves 45 days to figure out what they will too. They have already said, we are sanctioning tencent but only as to wechat. The legal legends and all, the tencent properties off to one side. Now, i predict they will struggle with the question of, what will we do about we chat in the United States . I cant believe they will try to regulate wechat in china. And the question is, what are you going to do about wechat when it shows up here on a phone of somebody who is a tourist from beijing . And they want to buy something and the only way they know how these days is to call up wechat and buy it. I would not be surprised to see some delays in the implementation of the restrictions. Emily you wonder how much of this is political. To an election. This 45 day window gets us even closer to that. Administration, especially the people who are china hawks, have definitely got the bit between their teeth. They have overridden most of the objections inside the Trump Administration to a whole host of restrictions on chinese influence of u. S. Industry. They are rolling them out week by week. We will see more. I think it is more than the wante who are china hawks while the sun is shining rather than that they want this in place by the election. There is a sense in washington that whatever the Trump Administration does in this area , unlike almost everywhere else, what they do in this area may stick because democrats have not been particularly supportive of being kinder to china or chinese industry. So if they make changes in a bind and restriction in a biden administration, if the election goes that way. It is probably why Peter Navarro and the others in the white house are dying to get this done by election day. Emily there certainly gives an important there certainly is an important election coming up. Lyft have uber and been ordered to make their drivers fulltime employees in a huge preliminary ruling out of california. We are awaiting a press conference at the white house. We will take you there as soon as President Trump takes the podium. This is bloomberg. Emily a developing story. The biggests that Ridesharing Companies cannot afford to lose. A judge has ordered the brand lift to convert uber and lyft to convert california drivers from contractors to employees, with benefits. Obviously, this would be a huge blow to uber and lyft if this stands. It is pretty significant that in round one, they have essentially lost. When uber and lyft went public, this was a major risk factor in their ipo prospectuses, the idea that their workers could become fulltime employees. , they finally ab5 whichw called pretty much clearly tried to make the brand lift driver simple uber and lyft drivers employees. Now of course there will be appeals and more fighting but it is a strong sign that california may have its way and make uber and lyft drivers employees, which would be a drastic change for the rideshare business. Has helped make up for some of the loss when it comes to food delivery. Could the companies survive this . They would have to pay drivers and, pay them benefits, charge more for rides as well. Eric i dont think we really know how it will look. Causeaid that it would prices to increase. They might have to restrict the number of drivers they have. But what happens is anyones guess. Reallys an incentive to make a stink out of this. You can imagine them pulling from a market, hoping to stop it from spreading to other places. Or give it a real try and say, if we restrict to only our most dedicated drivers, how well can we make this work . That thelong argued whole prospect of ridesharing has depended on drivers being able to join and quit at their own ease. Emily we do expect these companies to appeal. Of course, it does not apply only to uber and lyft. Food Delivery Services as well. We will continue to follow that will as it develops. Coming up, facebook is launching a new vertical. Facebook financial. What is it . We will tell you next. This is bloomberg. Emily welcome back to Bloomberg Technology. Once the center of the pandemic, new york reported 476 new cases today. I should say only 476 new cases. It is preparing to reopen schools in the fall. The vice dean for Public Health practice at Johns Hopkins university spoke earlier with Bloomberg Television about the states success in containing the virus. They got right that the virus needed to take priority, that the threat of the virus was practically existential to new york. This was the number one concern. If they could get this fixed, then other things could happen. They conveyed that sense of urgency through press conferences and everything else. Getink people in new york that, because of the leadership and the sirens and all of the things that affected them. Just one image here. I live right up by the mount sinai hospital complex. The sirens went all night. At one point, i counted eight ambulances in the absolute crisis of this. Sharfstein, what do they need to do in texas and florida to do a new york state of mind . I think it is getting those levels down so they can safely do things like go back to some essential activities threatened by coronavirus. I think the leadership has to be clear, consistent, constant. I think there needs to be a restriction on some of the activities so they can drive that number down, not let up until it is really low enough. How close to herd immunity are we . Everyonea question on s mind, and nobody knows for sure. I think the fact that the virus affects a lot of people without them knowing makes people wonder whether more people are infected than we really appreciate, which would make it harder for the virus to transmit. Herd immunity in this context is not absolute. It is relative. It is not that suddenly we have herd immunity and now the virus will go away. Point, it will help push some areas into a time when the virus is going down in the population, but it could still go up in the right circumstances. It is nothing like we wake up one day and we have herd immunity. It would be more like slowly we are seeing that it is just harder for the virus to spread in certain places. Particularly in areas with such high rates of infection, it is a little bit harder for the virus to get around there. Think we should not be waiting for herd immunity. We should be taking steps to protect ourselves. Lets talk about schools. , saw a report over the weekend 97,000 children around the United States tested positive in the last two weeks of july. That is around a quarter of those tested. Decision to try and reopen schools in september . We still have significant numbers of children that are carrying the virus. They may be asymptomatic but they still have it. Think it is a questionable thats the virus around, that potentially other infected, somet students could get quite sick, their family members. That is something we want to avoid. Fstein, vicea shar dean of Johns Hopkins school of Public Health, which is supported by michael bloomberg. President trump is sent to take the podium. We will you there live when it happens. This is bloomberg. Businesses are starting to bounce back. But what if you could do better than that . Like adapt. Discover. Deliver. In new ways. To new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back. But bounce forward. Thats why were helping you stay ahead and adapt with a network you can count on, 24 7 support and Flexible Solutions that work wherever you are. Call or go online today. Yeah. This moving thing never gets any easier. Well, xfinity makes moving super easy. I can transfer my internet and tv service in about a minute. Wow, that is easy. Almost as easy as having those guys help you move. We are those guys. Thats you . The truck adds 10 pounds. In the arms. Okay. Transfer your Service Online in a few easy steps. Now thats simple, easy, awesome. Transfer your service in minutes, making moving with xfinity a breeze. Visit xfinity. Com moving today. Emily welcome back to Bloomberg Technology. Im emily chang. Tiktok, wechat and their Parent Companies under increasing scrutiny by the United States. As the president focuses in on chinese social media. We heard a lot about tiktok but what about wechat . I want to bring in isaac stone fish on the u. S. And china. Isaac, your job over the last several weeks has been incredibly exciting as result of all of this back and forth, tension and ratcheting up. What do you think of the president setting his sights not just on tiktok but on wechat and tencent which is one of the biggest conglomerates in the world . Was the firstt example of a chinese app that have innovated u. S. Apps. It was the first mobile chinese tech story. The reaction from the Trump Administration seems to be part actual National Security concerns and part wanting to andrt beijings ability also to put a thorn in beijings ban googley ok, you and facebook. We will ban one of your champions too. Emily what do you think the actual consequences of this could be . Isaac i think it is in some ways similar to sanctions where the direct consequences might not be that apparent. But the ability for tencent and wechat to potentially raise more capital from u. S. Investors, the ability to use wechat overseas. They have said so far, it is not going to affect other tencent businesses but i find that hard to believe because if you tarnish wechat and make it an app non grata in the u. S. Landscape, it has to have its other businesses as well. Course, wechat is the primary reason people buy phones in china. If apple or google has to take it out of their app stores, that could also have a devastating effect on u. S. Companies. Do you imagine it would really come to that . Isaac that is an excellent point. The ability for apple to operate in china and, like all Foreign Companies that operates by the grace of the communist party, not because of issues like competition or regulatory fairness, it is possible it could have a huge impact on especially apple but also other u. S. Platforms. Not only because of what has happened to tiktok wechat, but also it is a really Good Opportunity for beijing to either loudly or quietly retaliate against other u. S. Tech companies. When beijing does retaliate, it is not going to be a very clear, ok you did this, therefore we are doing that. It could be as simple as a larger than expected sale to finding cisco symptoms one of its offices gets rated for unexplained reasons. There are other quieter ways that th china could put pressurn u. S. Companies as a result of what happens to tencent and wechat. Emily what do you make of the tiktok side of the story . A company with 100 million americans used. Now you have potentially twitter expressing interest here. Twitter, microsoft, one of those a better bet . Isaac tiktok is the second example of chinese Tech Innovation that has really swarmed the world in a very impressive way. Right now, microsofts acquisition to lose. They have a much larger warchest. Ump has alike tr microsoft acquisition in mind. There does not seem to be other Major Companies that are angling. There could be some very lastminute surprises from a company like amazon, but it seems like the safest guest right now is a gets purchased by American Companies that microsoft will be the one to take it. Emily there is this issue of how well tiktok is comply with an order in terms of how it treats the data of children on the platform. That is now getting drudge