Apple inching closer to a 2 trillion market cap. Bloomberg breaking news the news that apple is working on a subscription bundle to drive more revenue and kicking the ga paymentte over its policies. Abigail come you have been looking at materials. Abigail they had a very Strong Quarter and had a better outlook than expected and initially afterhours the stock was reacting well. The stock is up about 82 . , all over theer map. Must have a look at it it was what. They beat and put up a better outlook than expected. This is a company that makes the equipment to make the chips. This has implications in terms of the strong chip demand, which would suggest that the demand for the companys that use chips. This could be bullish overall, and relative to a different take on the day, yesterday, as you ciscogo reported reported come to supporting, weighing on the s p 500 and the nasdaq. The reason i am highlighting cisco, down 11 on the day, the worst day since 2011, and they had a disappointing outlook. You might wonder, what does that mean for the tech and corporate i. T. , especially given the fact that you have strength out of other tech companies. One of our Bloomberg Intelligence analysts told me, emily, that this might be isolated. It means that it has more to do with the recovery being slow as opposed to a black hole in terms of corporate i. T. Spending. Emily meantime, abigail, there were names that had a good day, apple being one of them. How is what you are seeing with cisco impacting the these other names out there . Abigail only time will tell. I know it seems like they are isolated apple, facebook, amazon, and others that are not technically tech names but Consumer Discretionary names, but they seem pretty isolated. Others are benefiting from the workfromhome trend. Cisco is one of the bestknown tech names out there. They have been reinventing themselves going into software, but they have not been eating up a record high going into 2000, but the question you ask is a good one. Back in 2007 had a similar situation where they put up a decent quarter, the october quarter, where they reported in november, so right after the alltime highs, and then the outlook really seems to be a shot across the bow for what happened in 2008. Lets hope that that doesnt happen here, that it is more isolated, and more a sign that this recovery, as so many economists have been say, could take longer as we are waiting with the students. Apple what is extraordinary about apple, up more than 100 from the march lows, and this is not a smallcap stock. This is the worlds biggest stock and the company more than doubling out of the march lows. As you know, the subscription bundle they are going to be offering starting in october, they have to continue to really deliver to keep shares of the stock so high, emily. Emily bloombergs abigail doolittle, thank you so much for giving us that update. More on apple. Make inapp pay and purchases from epic, which means they dont have to give apple the controversial cut. Apple has yanked the Parent Company of fortnite from the app store. Th in return. What is apple saying and what is epic saying . Thank you for having me. Apple said they removed the application because they purposely violated apple guidelines. They put out a statement saying they have remotely updated fortnite, obviously one of the most popular games in the world, to allow people to pay fortnite directly, saving them from giving the 30 cut to apple. Says we will not allow you to publicly make fun of us and circumvent the app store rules, so you are god. 15 minutes after apple did this, epic announced it is suing apple. Epic baited apple into removing the app so they had additional means to sue them. This is not a great situation for apple. This is a real boiling point amid the antitrust scrutiny, and it took a company like epic to stand up to apple, given its sheer size and wealth and financial ability. Emily right, certainly big news if you are a player of fortnite, but for other App Developers out there. In the lawsuit, epic talks about this is another example of apple flexing its an honest power to maintain 100 monopoly. Another company that has been pushing back against the fees that apple charges i got a statement from spotify in my inbox applauding epic games decision. We spoke to the ceo of epic games a couple weeks ago about this very issue. He has a problem with not just apple, but google and the way that they run their app store. Take a listen to what he had to say. It is a duopoly. They are two companies and they control 100 of the smartphone market, with Something Like 99. 9 , and if you look in a lot of territories, apple has the majority of revenue. In other countries come google has the majority of revenue. It is impossible to look at the territory and say that apple or google is not a monopoly. They have a monopoly and Business Practices that only a monopoly could get away with. Response, in its mark, apple is saying that all App Developers get treated equally and that epic wants a special deal. Is that the case . Is that the case . Welcome you could say that well, you could say they are trying to get a special deal. They say in the losses that they are not suing for monetary damages and they dont want apple to grant them an exception. It said that apple have to changes policies for all developers. Would epic the upset if they got a special deal from apple . Probably not. Is it ever going to happen . Probably not. They seem to be wanting largescale change. You saw spotify with the statement chiming in on this as well. This could create a reckoning if more companies are going to chime in. We are seeing basically Gaming Companies over the past week doing to apple what Congress Really didnt do. They let apple off the hook and to amazon andompared google and facebook, the situation with apple is not as that. Thats not as not as bad. Emily meantime, you broke another story that apple is working on a subscription bundle, putting all of its services into one package that would be cheaper to purchase, including i cant, apple tv services. Icloud, apple tv services. Talk to us about how you understand work. Mark basically what you would be able to do is instead of subscribing to all the Apple Services individually, you can subscribe to a bunch of them. Etc. , offer, news, one super price. What they will do is basically pay upwards of five dollars a month if you subscribe to several Apple Services. For apple this will create recurring revenue. For consumers, you might be saving a few bucks a month. Gurman,ll right, mark thank you so much for getting us those scoops today and joining us to wayne. Chat tiktoke downplaying the looming threat of a ban in the United States. Could have a big impact on Companies Like apple. We will discuss, coming up. That is next. This is bloomberg. Emily highest revenues in two pandemicinduced surge in business, for the massive conglomerate coming to turns with what a ban on u. S. Servicens of its wechat could mean for its business. That along with tiktok and a National Security concerns by President Trump. Thank you for joining us. 83 days to go until the election. What do you think trump is trying to accomplish with all of this . Well, theres a lot of things going on. There are longstanding legitimate concerns about china that the Trump Administration has been working on. But it is unavoidable that the last few weeks the Trump Administration has been upping tensions with china and using china issues as a way to push attention away from failures at home, the covid situation, and even from slumping trade agreement with china, the phase one trade dont that wasnt so big in the first place and hasnt really come to pass in the way it was intended. , china is saying it is going to bring this up at the next round of trade talks. Talk to us about what is at stake here. Right now there are executive orders that would ban u. S. Business with tiktok and tencent. It is the Parent Company of wechat that we have just been talking about. In your previous segment you were talking about fortnite, and they are owned partially by tencent as well. The reach of an order that would shut down tencent would be huge. It would make it very hard for people to engage in normal business and contact across the borders. If they went as far as they could, it could even result in pulling the apps out of app stores globally. There is really an enormous potential, but we dont know what might happen. There is several days several weeks left to negotiate. There is a lot of wiggle room for the administration to do what they feel they need to. We are standing by for the president to deliver one of his daily news briefings. Would you say this is inching closer towards the cold war type of scenario, or is that too extreme . Graham i think some people in the Trump Administration are trying to push towards Something Like a cold war scenario that would be durable and hard for the next administration, whether it comes next year or later on, to undo. There are people who wanted more conflict with china or believe it is already there and they want to cement it. I think that is strategically wrong and would break a lot of potential for mutually beneficial ties, and it would stop useful engagement to fix chinese misdeeds in human rights and markets around the world. But i think people are trying to build a new cold war. Emily what about the impact that this could have on a company like apple, walmart, companies that have apple, for example, the reason you buy an iphone in china is to use wechat, and it is a huge business for them, selling iphones in the country. What about the knock on effect this could have on u. S. Companies that President Trump is also trying to protect . Graham u. S. Companies really dependent great deal on supply chains that spread across the world, but especially in china. If Something Like a cold war or a really hard decoupling were to happen, that will cost a lot of money and a lot of effort to get new supply chains, and some diversification was already coming. Labor prices in china have been rising. Some manufacturing is going to Southeast Asia and india and elsewhere in the world. But forcing a rearrangement based on geopolitics and not on market demands is going to be very costly for Many Companies, especially someone like apple who has invested so much in a highly advanced supplychain in china over the years. Tiktokmeantime, you have still doing business deals, striking a 10 million deal with the new york yankees. Do you believe tiktok and wechat are actual security threats . Graham well, it is a matter of degree. Any mobile app that collects a ton of information has a bit of a security concern, privacy concern, and it is heightened it certainly in the case of these countries because the Parent Companies are chinese. But you have to look at what the actual threat would be, and if you are not handling highly sensitive information, the personal privacy concerns when you are talking about the Chinese State spy agencies are a because ininative, most cases they are not going to be that interested. I think this is very different from Something Like huawei, where there are real serious concerns you might not want infrastructure run by machines that could be more easily controlled by a potential adversary. But those kind of differences are getting blurred together. Foxconn, which assembles iphones, has said that chinas days of the world factory are over. Foxconn is one of the companies diversifying its manufacturing outside china. Do you think that is true . Chinese staterun media has pushed back against this idea. Graham i dont think china is going to stop being a major manufacturing hub, put some diversification is called for. As i mentioned, labor prices have been going up for years in china as the country gets richer in general. And so capital wants to find cheaper labor, and some diversification is going to happen. I think it is going to be hard to overcome, though, the type of industrial clusters, the sort of rapid prototyping capabilities that you get in a place like shen jet. Shenzhen. Emily graham webster, thank you so much for joining us. Up, a relativeng newcomer in the redhot area of work is productivity. Workplace productivity. We will talk to the cofounder and ceo about taking on google and microsoft. This is bloomberg. Emily the Workplace Productivity company coda may be some years away from scaring off google and microsoft, the company not going unnoticed, just raising a huge round of funding, 80 million, bringing million. Tion to 630 joining us is cofounder and ceo shishir mehrotra, who worked at google and microsoft for many, many years. Obviously, work collaboration is in the spotlight with so many workers working remotely, and there is an even greater need for better tools to collaborate. What sets coda apart from google, google docs, microsoft w ord . Thanks hi, emily, wrapping me. As you mentioned, the world is changing really fast, and many workplace patterns accelerating. We are zooming a decade into the future in just a few months. Every form of that is being reconstructed. Coda is an allinone document that once together documents that blends blends together documents into one service. You can build docs as powerful as apps. You can close the gap between documentation and the real flow of how your business operates. Emily it seems like the vast majority of people are still using microsoft and google. What kind of traction is coded getting,and is coda and how do you see its amounting these incredibly entrenched giant companies . Shishir to be clear, we work sidebyside with many of those tools. I dont think it is necessarily a zerosum game that way. We have been doing really well we shipped coda 1. 0 about a year and a half ago, and we are about to 25,000 teams using coda around the world. This year has been particularly good. The momentum is quite high. It is early days, and a lot more to come. Emily how are your thoughts evolving about the future of work . What do you think would be fundamentally different if and when we come out of a pandemic and there is a vaccine . Do you think that things can come back, or is the workplace changed for good . Shishir i think it is change for good. And i spent six years working at google and microsoft before that. G some form for over a decade now. If the companys lean into that form of work and to being able to work remotely, the best practices you develop are come were if you do distributed well you are a Better Company in general. I think what we are watching, they wont want to go back when they realized it corrects for a lot of issues that companies naturally have stop i think it is here to stay. Emily we are standing by for the president ok, we are standing by for the president to take the podium at the white house. Im curious, fo you as a growing businessr, we have talked a lot about how Small Businesses are suffering and the pandemic. How do you expect businesses in Silicon Valley to change as we come out of this . Our companies out there that cannot raise funding right now, there are a lot of people will lost their jobs and a lot of layoffs in Silicon Valley. As somebody who has worked here for so many years, what do you think about her impact of this will be on Silicon Valley itself . Shishir it is fairly extreme. As you mentioned, there are some companies for whom the pandemic is devastating, and some companies for whom it is enabling or accelerating. But is in the latter camp, there are Many Companies that are struggling through it. I think moments of disruption have tended to be positive for Silicon Valley in general. The crisis in 2009 led to a number of really Great Companies getting created. I think for a region that thrives on change and innovation, any change is a good time for people to try new behaviors, new tools. Butain businesses hurt, other businesses flourish. I think we will see a lot of division in this pinnovation in this period. Emily technology has thrived as a result of being such a driver of some of this work. Stay connected while sheltering in place. At the same time you are intense scrutiny in washington of big tech companies. Thatu have any concern these companies will become more powerful as a result of the pandemic and that it will be harder for Smaller Companies and smaller startups to actually break through . I amir you know, generally of the mindset that ispanies getting too large not good for the industry, and there is a healthy balance to be struck. I have seen both sides of how Companies Operate when they are checked and left unchecked. I wouldnt be extreme on either side of that. I think we are clearly in a world where many of the behaviors of the company are indicative of having a scale that is unprecedented for most marketplaces. I think they could be pulled back. Emily we will have to leave it there. The president speaking. Lets listen in. Pres. Trump announced by attorney general barr that they tafaro,he killer of horribly shot young man, wonderful young man. We have just this just came out two minutes ago. Attorney general barr Just Announced as you know, we named operation legend after legend tafaro. We will be entering the process of helping out cities throughout our country that have difficulty with crime and particularly certain types of crime. That is really good news. They caught the killer of legend. Today we saw joe biden continue to politicize the pandemic and to show his appalling lack of respect for the A