Giants thats benefited from more money in american wallets earlier this year. For more, i want to bring in abigail, whos been following all the action in the s p. A big day, catching up to the nasdaq. Tech is helping. Abigail we have this record high. Market watchers have been waiting for the s p 500 for a week very closely. The nasdaq has been hitting record high after high. Tech, especially with amazon and other tech names, really driving the gains for the s p 500. Morning the this s p 500 briefly went negative after putting in an alltime high. We have this wall of worry. Not only do we have no still is, a second deal is not on the table yet. We have a election jitters, u. S. China trade jitters, the possibility of a second wave. It was not a robust finish for the s p 500, that a record high. One day versions are a little high, given the others closed a little high. The last time this index put in a record high was almost two years ago. Its really the habs and and havenots. Vs technology is the land of best havs. Amazon had its best day in about a month. Its not clear what was behind this except for more bullish momentum. Hedge funds are really favoring amazon at 104 favoring amazon. 104 hedge funds have their stuff in amazon. A Second Company update. One of the big winners within the s p 500. Zoom up 4 . Revenue. Ignificant they did report a great quarter up 5 . It seems that the virus is helping all of these. These are all stayathome stocks, but jd. Com as china is embracing ecommerce. A stayathome day helped the s p 500 find that near record high. Oracle nowtime, weighing a surprise bid for tiktoks u. S. Assets. The founder of oracle has been a supporter of President Trump, and shares did rise on this. Talk to us about the moves in the stocks. Abigail when is headline crossed last night, 7 00, 8 00, i was surprised. Oracle is the worlds secondlargest software company, what will they do with tiktok . They are interested, enough to cause the stock to go higher. Its best day in two months. The topline growth for this company was slow, single digits. It makes sense. Perhaps they are looking a way to diversify. Although its not clear how they would integrate that immediately. Microsoft has been the company that was thought to buy the tiktok assets. Twitter was mentioned as well. Here is the Stock Performance between oracle and microsoft. Oracle, flat, really up just about 0 . The last alltime high for oracle, more than a year ago. Microsoft, record high of 60 over the last high. Oracle is trying to figure out a way to bring more growth, if they do put in a bid for those tiktok assets. Emily certainly an interesting potential buyer. Abigail doolittle, thank you for that update. Joining us to talk more about oracle as a potential suitor for ,iktok is Kristin Martin professor of Technology Ethics at notre dame. For joining us. As abigail mentioned, oracle is a focused company. It does not take make sense to take on a Consumer Company like tiktok. What do you make of this potential bid of oracle as the owner of tiktoks assets . Prof. Martin tiktok has two places to get value. One would be consumer facing integration and i think amazon announced being able to integrate a voice command to get tiktok users to open up tiktok. You could imagine microsoft using it as a way to having consumers more easily use the products. The other side, which may be what oracle was looking at, was the consumer data. The thing that made the Trump Administration concerned about tiktok was all the information that tiktok and other apps have on us with our location and preferences. Who we are talking to and what we are talking about. Oracle does have an at tech business. Tech business. It would be valuable to them to be able to sell this data or access to this data. The consumero market, but going into the commercial market and leverage consumer data on the back end. What the Trump Administration was worried about was the exploitation of consumer data. That would be for political and commercial advertising. Incredibly is an political situation. The president has ordered tiktok to sell these u. S. Assets. Oracles founder has been a big supporter of President Trump and held a fundraiser for him at his estate back in february. What do you make of that, given the president may well have a say in who buys his company . Does that give oracle in edge over microsoft . The wholein since process seems to be so politicized, its not clear what to talk does any different than any other app that young adults and teenagers use. Social media apps, streaming apps altogether the same data. To dataoes not sell aggregators. Is the reason why tiktok needs to divest itself from its u. S. Assets. It wouldnt surprise me if the solution was an equally politicized. To your point, if the ideas as to whyoliticized tiktok needs to divest itself with u. S. Assets, it would not be shocking if the reason or solution of oracle was just as politicized to come in and save the day for trump. Emily the main difference between tiktok and other social media apps is that its own by a chinese parent company. President trump mentioned national security. The ethical issues seem incredibly murky, especially for a president that is facing reelection in a couple months. How do you parse out the ethical implications of the situation . That martin i would argue all of the Data Collection for all these types of apps is problematic. The collection of our location, our contacts, who we talked to, what we talk about. The collection of all that data, putting it into data aggregators and selling the information to the u. S. Government or foreign entities, all of that is problematic. The point would be that im not sure to tack desk to talk is any different than those other entities. Trump in thatwith the overall data selection and selling and sharing is a problem. I think more attention needs to be spent on the entire data aggregator industry. Tiktok is the way we Start Talking about this. The issue of whether or not our data gets in the hands of foreign entities cannot only be tiktok. Its not clear why tiktok is being singled out other than its being politicized. ,ther apps do the same thing equally wrong. I dont mean to say they are ok in one hand and not the other, but the surveillance industry of consumers is wrong. It makes a susceptible to manipulation by commercial advertising. But that is why tiktok is different than the other apps. Equally wrong, but not clear how they differ. Emily professor of tech ethics at notre dame, thank you for joining us. Strung intooneywell action to make n95 masks at the start of the pandemic, now theyre tech is essential in helping to get universities, events, schools, airlines act up and running. We will speak to the ceo, next. They when it comes to Global Response to covid19, Honeywell Technology has been front and center. Their Technology Touches everything from n95 masks, to airlines, to universities, i cut up with honeywells chair and Ceo Darius Adamczyk and talked about the focus on the pandemic. Us initially, when we first entered the pandemic, it was about getting the n95 masks as quickly as we could. We really played our part as early as march and into april and expanded our capacity. Obviously that was priority one. But that quickly shifted because some of the other things that we sensorske some of the for the ventilators. We have a big backlog of that in april. We made our own ventilator for emergency use. Focus was how do respond to this crisis we are in very, very quickly. But now, our focus is much more back too we get people the workplace, back to flying again, back to having fun again, back to going to stadiums again . Complete shift. Now we are working with a lot of airlines, teams in the nfl, the ncaa to get their stadiums ready. Working a lot of building owners about how to get their employees back in a safe manner and have a different User Experience for the occupants as well as the owners. Really been all over the board for Immediate Response to now preparing to emerge from it and returning to a state of normal. Opened up factories in arizona and rhode island to make n95 masks. President trump visited one of those facilities, though he was not seen wearing a mask at the time. Hell closely are you still working with the white house on ppe in particular . Darius we have a Good Partnership with the white house to help them out. We quickly opened the facilities in rhode island and phoenix. We are trying to help out any way we can. We are helping them with surgical masks. Some latest discussions we had to open up more. We are continuing discussions in china help the country in any way we can. Emily there is still a huge amount of nearterm uncertainty. Nobody knows what the future looks like. What do you make of the president s evolution on masks, given that initial interaction you had with him . Darius i think the president s support of a masks, based on the data that ive seen, they help to limit the spread. We are encouraged by that. We certainly practice that. We have some of our staff working in offices, most are not, particularly in north america yet. We certainly encourage and require using a mask wherever we are. Are also in touch with airline ceos regularly. What is your role in trying to get passengers back on flights safely, if they need to fight . Rius this is all about passenger comfort, passenger safety, and i think the airlines have done a terrific job. We are helping them with sterilization. There is a robotlike device that really roams the aisles with ultraviolet lights that actually cabins andlize the can do so in a matter of minutes between flights. Solutions tog on have cleaner air within the aircraft itself. With some of our technology, which is longer term in nature. Things such as ppe kits for the passengers themselves. We have a full range of solutions from the very sophisticated to technical, to very basic things. Emily many traditional Industrial Companies are turning to software and honeywell is one of those. What are the opportunities, specifically, that you see for honeywell . Foundationalasic outcome we see is control. Weather control aircraft, control buildings, control industrial plants, you control things through hardware and software. Software has always been part of the fiber of who we are. We have more Software Engineers than any other type of engineers on our staff today. We have way more than 40,000. Transition to using data because when you control something you are connected to using enough different matter to control that process is a Natural Evolution of the company. Thats why we formed our honeywell connected enterprise, were forged ip staff and building out connective issues. Emily you are talking about the cloud. How much revenue would you expect to drive honeywell cells . How much sales . How much would software drive that revenue in five years . Ius we have a 4 billion business and software. We expect the doubledigit growth rate for our software business. Have been able to achieve much more than 10 . At the expected growth rate we hope to augment that through acquisitions. It will become a much more meaningful part of our portfolio. Emily what kind of acquisitions would you consider . Anything outside of your core business like aerospace, energy building, automation . Darius we love the platforms we are in. We look for software assets, but not Just Software assets. We base that with the strength of the Balance Sheet we have today. This will be a more friendly m a environment. We are going to be active in the second half of this year. Our business,ment certainly the digital businesses, but potentially others as well. There,darius adamczyk the ceo of honeywell. Coming up, the App Store Battle royale. Epic games has sued to overturn apples ban on its popular game fortnite. We take a look at the numbers and if the future of the text or is at risk. Thats next. This is bloomberg. Emily the saga continues. Epic games is looking to block apple from removing its fortnite game from the app store, this after apple removed the popular gaming app citing that epic was not playing by the rule. Apptopia ceo, what do who do you think is losing . There are two things happening. On the surface it looks like onc is bringing the battle behalf of small developers. You have this evil mega corp. And apple is bringing the battle epic is bringing the battle to apple. And on think that is the case when you look a little bit deeper. When you look under any surface you will see its much more complicated. You have to look at who epic is. Secondlargest owner and epic is tencent. One of the largest tech corporations in china. They are bringing the battle. Theou look at it, they are they are bringing the battle for chinese tech against american tech. Epic is not a company like spotify where you pay 30 of fees. They are selling digital goods, their margins are extremely high, and they are tremendously benefiting from the platform. What they are doing is pretending to bring this battle to apple. Really what they are angry about . 10 successt want to be apples success. They dont want to pay . 30 of every dollar to apple. Whats happening here is you are talking about tiktok and the whole political situation with tiktok, what seems to be happening to me is you have chinese tech versus american tech. This is china bringing the fight to the u. S. In creative ways. Emily thats interesting. On, thats quite an accusation. You think that epic games is doing this purely to give tencent an advantage . Eliran absolutely. Tim sweeney made his money. And is a . 10 game to play they are masters at playing. Hese games tencent has a strategy and the strategy is continued to battle american tech at every front. Lets think about epic. Epic is not tencents largest moneymaker, they have many other moneymakers. Ethics. One of many . 10 tencetnts. Are they using the Political Tension against us, definitely. They are making apple look like that evil megacorps. Its not true. Way, its not just apple, google has also pulled fortnite from the app store. Apple gets a lot more of the attention, but there is a potential, if this continues to appsout, all of epic games are at stake. My kids are on houseparty talking to their grandparents and that would be a big low if they could not access that from the app store. Do you expect that this tactic will work on apple and google, or that they will stick to the policy that theyve had over the last several years, that the app store has been in existence . The criticism that apple and google do enforce the rules inconsistently, at times . Eliran i will start from the beginning. Look, apple and google decreased frictions for both consumers and developers. They have enabled developers to ship millions of apps. The app store has only been around for about 10 years. Its unprecedented sid caesar apps have been shift. If not only to enable a payment gateway, you have to provide tools to developers, analytics, they are hosting the actual software. There is Tremendous Service and values to developers. They do deserve a significant cut. Can they get a significant cut from every publisher . No, there arent hundreds of thousands of hedge cases. Spotify cant pay 30 . Do you come to the google place store with a machete . Emily we will have to leave it there. Thank you for giving us your dots. Eliran sapir, thanks so much. We will be back with more of bloomberg technology. After this quick break. Emily welcome back to bloomberg technology. Im emily chang in san francisco. Walmart and kohls, tubing retailers out with earnings two big retailers without earnings. Joining us to break everything down, our Bloomberg Opinion columnists who covers Consumer Retail industry. With walmart. Whether or not walmart can keep up given that stimulus money is drying up. Bloomberg technology. Walmart had an increase in sales and they said it was fraud base but general merchandise was the thing that was driving the train. Thats items like one care products, sorting goods, toys, apparel and that kind of thing. Thats good for walmart because those are hiding margin highmargin items. There are looking to shore up profitability. But that question of this gimlets checks is a big one. The retailer did call out question of stimulus checks is a big one. They believe that once checks tapered off, people started normalizing their spending. That can be bad news for walmart and many other retailers of congress does not pass any legislation on that front Going Forward. Kohls is not a great quarter. What are the trends there . Did see a 58 increase in their digital sales, but that was on a pretty small base. Tosimply was not enough offset the strong decline interest that they saw for their physical stores. Kohls is just in a tough spot. Of the corners of the Retail Industry that was hardest hit by the pandemic with kids not going back to school,eople not having weddings parties, vacations to dress for her clothing retail is hit hard and kohls felt that in the quarter. What talk to us about this means for the rest of the Retail Industry. There are more traditional and physical industries to have better online operations, and there is amazon, the elephant in the room. Do you see some big players emerging based on their success, based on their leadership in online sales, and can they ever catch up to amazon . Sarah im not sure they can ever catch up to amazon, but i do see the dynamic in that environment really favors the retailers that are onestop shops. The walmarts and the targets over the world. Leases where you can get your groceries, but also get electronics. See that in this environment people are afraid to go to stores and they are consolidating their trips and they are wanting to get as much stuff as they can at one place. That is really tough for drugstores, for example. Usually a lot of fill in traffic or mall retailers that typically specialize in one thing. Time for bigong box retailers and a difficult time for everybody else. Just weeks into the pandemic there was talks about tens of tho