Democratic candidate for President Joe Biden will make the speech intentionally of his lifetime. The day started down pete with a rise in jobless claims. Yesterday, we saw a surprise bearish reversal. Today, a surprise bullish reversal, all leading into joe bidens speech. Morning,earlier in the we had stocks down a little bit as the initial jobless claims came back in above a million. But we had a turnaround. Thanasdaq closing up more 1 , so perhaps some folks hoping that those unfortunate job numbers could force congress to approve a stimulus package sooner rather than later. Nasdaq up 1. 4 . , the newa cap index York Stock Exchange faang index, up about 2 . Facebook,habet, amazon climbing higher. The stayathome trade back in the lead. Russell down half a percent. Interesting way for the gains to happen. Perhaps not the healthiest. Financials, industrials. All about tech. You were mentioning the dnc tonight. Joe biden making potentially what will pd speech of his lifetime. Going into that, many of the peoples favor biden to win against trump. Thepredictit implied for has joe biden at 59 odds implied probability of winning. President trump at 44 . Emily given that implied probability which has biden in the lead, how does that potentially impact some other names . Right now, we are not all that likely to see that much of an influence farther away. Certainly if he does when the election, there are some names that could benefit. One is energy transfer, an energy asset company. While biden himself is not so, so green friendly, the party is more so. They could certainly use the lift. Canopy growth, the marijuana company, down 23 on the year. It is also thought that a Democratic Administration may be more favorable towards the marijuana industry. Tesla and nikola. The thought is also that Joe Bidens Administration could perhaps be more favorable. But, are these stocks pricing in any kind of a democratic win . You were talking about over and lyft. More of that story you were talking about in terms of that they have won the delay to convert drivers to employees, buying them time to potentially campaign for a ballot measure free these Transportation Companies from the requirement of Assembly Bill five. Investors clearly liking it. These companies were planning on shutting down, which obviously would have been bad for the top and bottom lines. But since that is not happening, the best day in three months. Emily indeed, for them. , aaking of uber and lyft victory for both of those companies in their quest to delay drivers from contractors to fulltime employees. Tonight, almost simultaneously, they won an appeal to keep operating as is until a hearing in october. A new law that requires them to convert contractors to employees with benefits. Catherine, what is your take on this appeal of which has some Strings Attached . The companies have to come forward with sworn statements by the ceos about how they intend to make this conversion ultimately. The delay is a big win for uber and lyft. The California Supreme Court ruled in april of 2018 that hiring entities need to treat their workforce as employees. The California Legislature voted last fall, effective january 1, Companies Need to treat their workforce as employees. Have had over two years to figure out how to comply with the law and they have just another couple of months to try and figure it out. Emily what do you make of the fact that they do not seem to have given much thought. Critics say they are drinking their own koolaid. Their lawyers have to have thought about it. Because they do not have a good argument that they are not the employers of their drivers under california law. But i think that they believe model isper low cost their business model. Treating your workforce as employees has caused. Youve got to pay into the employment insurance fund. Emily obviously, there is an argument to be made that drivers are essential to ubers service. Interesting that given this is happening in the time of a pandemic, you dont have a lot of people using uber and lyft anyway. Uber eats food delivery can continue at this point. Uber and lyft are banking on prop 22 and on california voters to sway in their favor. They say they would like to keep them as contractors but pay them above minimum wage, give them more access to benefits. Do you think Public Opinion will be on their side . It is hard to know. What i will say is that uber and lyft have trained the public to expect that to take a ride is a supercheap thing. They boxed themselves into the corner that way, saying, we can actually pay our drivers what we would have to pay them in order to ensure they get the minimum wage. Them forto compensate the use of their cars. In order that if they are injured, they get compensation for their injuries. The public toined think that a ride in an uber or lyft should be supercheap, they feel that they dont have the option to simply raise prices in order to make the cost of the ride reflective of the cost they are charging consumers. Emily especially in a them a quinn not a lot of people are writing anyway. Have set this up as a fight between the company and politicians. They said that drivers dont really want to make this change. Speaking of politicians, we spoke with the mayor of stockton, who had something to say about this. I know a lot of people in stockton who drive uber and lyft. They wish they had health care and things of that sort. I think it is symptomatic of a deeper issue, the fact that we dont have universal Health Coverage is a problem. Jobs to payt have wages that allow people to live with dignity is a problem. Tubbs, part of the Mayors Program put forth by michael bloomberg, founder of bloomberg lp. Toherine, is there a way compromise here . Catherine there is not an obvious way to compromise. Employers in california have to contribute into the Unemployment Fund so there will be money there that people are unemployed. When drivers got unemployed by the thousands, what did the company do . Told them to apply for unemployment assistance funded by general tax revenue. Taxpayers tog the bear the cost of their labor force rather than have taxpayers bear the cost like every other company does. Yes, of course, there is a compromise. One could lower the minimum wage. One could say that we dont actually care about having employers contribute to the cost of health insurance. Businesspany that does in california has to pity minimum wage, has to pay into unemployment insurance, has to contribute to the cost of the equipment that employees provide. What uber and lyft are asking for is that the rules do not apply to them. That is not the world we live in. If they are going to compete fairly with other companies, they need to play by the rules. Emily we will be watching to see how it plays out. October hearing set for 13. Berkeley law professor catherine fisk, thank you for joining us. Coming up, what joe bidens pose tax plan means for Silicon Valley. Details coming next. This is bloomberg. Emily joe biden is getting his primetime moment tonight after being officially selected as the 2020 president ial nominee despite pledges to increase taxes for individuals and companies. The campaign is still receiving support from some of the wealthiest backers. On superdens victory tuesday sent equity future soaring. His selection of, let harris as harrisning of kamala as his running mate also. Bidens 3. 2 trillion in policy proposals have investors worried. Tax increases,f funded by rolling back parts of the gop tax reform plan. This includes an increase in new taxes for corporations, bringing the Corporate Tax rate up to 28 from 21 . For individuals, biden wants to restore the top individual tax rate up from its current level of 37 . He wants to impose a tax on Capital Gains and cap tax rates for the wealthy. Stateould repeal a tax on and local taxes a cap on state and local taxes. His plan also targets amazon ,hrough eight minimum book tax which imposes a 15 minimum tax on companies that reported 100 million in net income in the u. S. But paid no taxes. Bidensere to discuss tax plan, Bloomberg Tax reporter laura davison. Biden plan fores Silicon Valley companies . Ra Tech Companies can expect to pay higher taxes across the board. In the u. S. , that Corporate Tax rate will go up from 21 to 28 . There is also this additional tax that if you have a lot of research and Development Tax things or depreciation, that companies, particularly amazon and netflix, have been adept at using, he says you cant do that anymore. You have to pay a 15 minimum tax rate on your u. S. Profits. Also, overseas profits, right now you can pay as little as 0 . In some cases, you are paying irish tax rate. Basically the same as right now earnings profits in the u. S. Across the board, Tech Companies would pay significant and more on corporate profits. Emily compare biden to trump. Broadly, whose taxes go up if biden wins and whose go down . Laura trump has been less specific about what he would do. Presumably, he would keep his tax plan. He talked about some tax cuts for the middle class as well as tax benefits for companies who bring jobs back on shore as well as tariffs for companies that go offshore. Plan, corporations and those earning 300,000 or more per year. He proposes some more tax credit tax cuts. But if you are making in those upper income groups, that is when you see your Capital Gains tax rate. Much double. Your income tax increases. Payroll tax. 400,000cks in at that level. Emily do you think the addition of Kamala Harris to the ticket has any implications given her ties to california, Silicon Valley, and big tex backers . Laura it certainly helps. They will have no her staff, they will have worked with them for years. That is how washington works. It is largely a relationship economy. She has people who understand startups, who understand kind of howCapital Gains play into these companies are formed. Having people who are wellversed in those policies in high places is always a benefit. Davison, thank you so much for that update. Make sure to tune into bloombergs live coverage of the Democratic National convention tonight, 9 00 p. M. Eastern time. Coming up, alibabas Revenue Growth returns to levels not seen since the pandemic. But is it enough to keep the company ahead of its competition . This is bloomberg. Emily sales growth at alibaba has bounceback to prepandemic levels. It grew a betterthanexpected 34 . The ecommerce giant benefiting from a gradual pickup in consumer spending. John, are you taking this as a sign that chinas economy is bouncing back and could brown could perhaps bounce back faster than the United States . John not yet. I was actually surprised and i think investors were also surprised. Stock, thereof the are other issues that are more salient. I think everybody understands the secular growth story. I think there are larger macro and geopolitical issues that come to bear when assessing the stock. You expect the rising political tensions between the u. S. And china to impact alibaba . They were saying that they are playing up how alibaba supports u. S. Businesses. John hello . I can hear you now. Emily asking you about the political lets talk about the political tensions between the u. S. And china. How do you expect that to impact the chinese economy in general . Thateo played up the fact it is something they are monitoring closely. John i think he is right. But i think it is not really matter yet, some degree, until after the election. A biden presidency might still be tough on china but it will be fair and not arbitrary. Businesses like alibaba, i think that is key. , ithere is a Trump Victory nk you will probably see the area where i grew up and now the, in the lobby of political world, it is hard not to. They are basically saying that a Trump Victory would be great for resourcebased. For alibabas hard to escape that. In addition to that, i think there are slightly longer term Macro Economic risks that are what people see as an erosion. Tech basedion of where it is not physical goods you are moving back and forth, it is fulfillment. It is a Software Company that to facilitate. Withnk what you are seeing impressive well above what we expected. We expected a pretty significant acceleration. When you balance that all out, i think that is where the stock is. I think it will likely trade sideways for a while. Emily ok. John freeman of cfra. Thanks so much for weighing in. We will continue to follow, especially in the midst of potential trade talks. Airbnb filing confidentially to go public. Cap on thecing a number of guests and rentals. The details, next. This is bloomberg. You doing okay . 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. Where you can find games, news and highlights. All in one place, right on your tv. The xfinity sports zone. Use your voice to search every stat and score. Follow the teams you love. And, even get notifications with breaking news alerts and more. With the xfinity sports zone everybody wins. Now thats simple, easy, awesome. Say xfinity sports zone into your voice remote today. Emily welcome back to bloomberg technology. Airbnb announced the caps on cap on and events a parties and events inline with covid19 protocols. It limits occupancy to 16 people and will remain in effect indefinitely. This just one day after the company filed to go public. We are joined by crystal z. Airbnb has been going through a tough time. Travel has gone through a standstill gone to a standstill. Now with this new cap on gatherings, tell us more about it. Thehey have capped occupancy to 16, and this is a global ban. They have been tackling this issue for a long time. Remember the california halloween party. They have tried to crack down on parties at their properties. Move toee this as a clean up before they go public. They filed on wednesday a statement saying they have filed s1 to go public. It is an issue of timing for the announcement to come almost simultaneously. Emily are there any instances or stories of covid outbreaks from airbnb stays in particular . Crystal i dont think we have addressed that issue, but the impact of covid on airbnbs business has been talked about many times. Iny have seen some recovery june, as bloomberg has reported. Fromng is only down 30 2019, given nobody is traveling. That is a positive sign. We have seen a rebound in june. The covid impact is there, but they have been improving. At the same time, the Second Quarter revenue fell 335 million. Some people see it as a sign that because of this phone revenue, they can no longer which allowed them to raise capital. Be anl more likely initial Public Offering so they can get some money for the business. Emily the question is, how will investors look at this, and how will this new ban impact the business, and what does that mean for a potential ipo . Crystal with or without the ban , it is a difficult valuation exercise for investors. They raised that deal earlier this year, and that valued them at 18 billion versus 31 billion previously. Whatever number is going to appear on the ipo on listing is going to be interesting for everybody. It is going to be a difficult exercise. Nobody is going to know how they are going to be valued, especially since the pandemics rebounding, it depends on where the pandemic hits. With or without the party ban, it will be difficult. But i think it is interesting to see the sign of recovery. Emily all right. Tse. Bergs crystal we are going to keep following airbnb on its road to, potentially, an ipo. Honeywell initially focused on making n95 masks and ventilators when the pandemic hit. Now it is shifting gears to help schools, offices, and stadiums reopen safely, even airlines. Meantime, the company is also marking its 100th anniversary of being publicly traded. In the second part of my conversation with the ceo, i asked about their latest covid efforts and how the legacy will live on. We are in a couple of markets that are challenged, aerospace being at the top of the list, but we have quickly pivoted. This is making lemon out of lemonade. Innovated new solutions for the world. Some of these solutions are for airlines, for stadiums, for industrial plants. The one we are especially excited about is we have a whole bios. Lution for glass, we haveg a new packaging that is lighter, cheaper, and much more durable. You could see it innovated in a , why other than what our core markets needed four rather than what our core markets needed four months ago. Emily you are getting schools ready to resume inperson instruction. At this point, do you think you can have inperson instruction safely . Without a vaccine, is there really any guarantee . Darius there is no guarantee no matter what, but i think you can improve your odds of having a safe in person environment by frequent testing, by making sure wearnts where pp, by ppe, by measuring temperatures. We have something called a rebellion camera which cannot only very accurately measure your body temperature, but can also, through the use of ai, check whether or not you are wearing ppe. You can do that on a remote basis. Example of the kinds of solutions that we will bring to universities to enable them to have inperson classes. Emily honeywell has also built a quantum computer. How far are you in terms of getting actual c