The company is hoping this will spark more adoption, but it will only work if Health Officials offer an app to utilize the technology. Covid cases are dropping in many states but rising in the midwest. The u. S. Grappling with how and when to reopen safely. New York Public Schools just postponed in person return for three more weeks. Lets get back to the markets with Abigail Doolittle in new york. Generally another up day driven by apple. Abigail that summarizes it. It feels as though that is every day. Apple, a big driver for sure. In charge of the fed liquidity, driven rally continuing into september. We now have five up months in around and september starting up with more record highs. 75 , the0 gaining by nasdaq 100 up 1. 5 . Apple really helping out the chip space as well because there is indications they could have a strong season relative to selling iphones. You see the stock is up 2 . And ais one tell possibility investors are cautious. We are seeing a rally for haven bonds, the 10 year yield down nearly four basis points. Lets keep an eye on that. One day a trend does not make, but if that continues, it tells you investors are worried this rally is long in the tooth. Speaking of big rallies big movers outside of apple, Companies Like nvidia and broadcom, we also have walmart and amazon up. Walmart up 6. 3 , best day since early july, as they are taking on amazon prime. They are launching walmart plus in two weeks. It will cause 98 for one year relative to amazon prime at 119 and will enable free delivery of products, free grocery deliveries, and discounts on gas. They are going after prime, but amazon investors dont appear worried. Those shares up 1. 4 . Mega caps in many sectors are rallying. Emily potentially a Huge Development for walmart. We will see how it impacts the competition, namely amazon. I want to talk more about amazon. We spoke to matt nearly yesterday. He said the runup of shares in apple and tesla is undeserved and we are going to see steep decline following the stock split. Whats your take . Abigail i heard that interview. Great interview. A lot of analysts are not as aggressive on air. If wechnical support go to the bloomberg terminal and take a look at a one your chart of apple, we are going to see a grossly overextended stock. Shares of apple, 75 above the 200 day moving average. Actually 66 , but quite a bit. Onlye february apple was 42 above its 200 day moving average. Thats the degree to which buyers are more enthusiastic than the longterm buyers. The yellow line represents the longterm buying support. At some point apple will drop back down to the 200 day moving average. It happened time over time, typically around iphone cycles. Matt said he would not be surprised to see 20 . If we see that drop over the next week or months, that would be a 30 to 40 drop. Take a look at this 10 year chart. Even though they are scheduling 75 million iphone scales sales, could be tough selling ahead for apple at some point. Emily we will be watching and talking more about apple. Bloombergs Abigail Doolittle, thank you for that update. 75 million iphone target for the coming fall season. By a bloomberg reporter who covers the company for us and helped break this story. We are learning apple is targeting 75 million iphones for the fall. Tell us more about what we know and what this means. Mark they have asked their suppliers to build between 75 million and 80 million 5g phones. What that indicates is there is going to be a similar target for sales through this year as they had last year and the year before, which means despite the pandemic, the economic slowdown, everything going on in the world, apple is anticipating the status quo for their own sales is their most important product. That is good news for the company and investors. Emily you always have a pretty good lead on forthcoming products. You have reported they are planning to announce new apple watches this fall, a new ipad, over the ear headphones. Tell us more about what you know. Mark its going to be another jampacked Holiday Season for apple. In addition to those four phones, there is to be an over the ear headphones, which is quite popular. These will be basically air pods on steroids. The first time they will be doing over here headphones. These will be apple branded. There is going to be a new smaller, cheaper home pod which could help boost their smart home situation, where they have lagged behind google, amazon, and other companies in that space. There will be a new ipad air, the 500 to 600 mid tier tablet, which could continue to increase sales of that line, which saw some success in the third fiscal quarter. It is going to be a packed fall in addition to those two apple watches. About i do want to talk this new Contact Tracing partnership that has been slow to take off the ground between apple and google. Some new announcements today that iphones as of now have the ability to contact trace, but only in tandem with apps from, typically, public Health Officials. What did they tell us today and how well is this Technology Working so far . Mark the news is that on the iphone specifically with an update that came out today, you will be able to use Contact Tracing without installing an app from a Public Health authority. The problem is this portion of the service is only available in three states plus washington, d. C. This component is u. S. Only. On the android side, they are not doing as much as apple in terms of not requiring an app. The iphone will require no app, whereas android they are going to Start Building the apps for Public Health authorities themselves, which tells you all you need to know. The Public Health authorities have not gotten it together. Only six states in the u. S. And 20 countries have adopted this. There is a lot of room to grow. Gone byy coronavirus is the time people need to start complaining about this service only being in a limited amount of places. Emily whats it going to take for this to actually take off, for people to realize the need and take advantage of this . Mark i think googles approach to actually build the apps for the Public Health authorities is really the best option. They are basically saying, you guys are not going to, so we are going to build them. As of today, only three states plus washington, d. C. Out of all the hundreds of countries around the world and 50 states in the u. S. Not a lot of penetration. We will see how many more states get on board by the fall and how long this will really be necessary. Emily meantime, looking forward you areroducts expecting them to unveil this fall, we are expecting the launch to happen in october rather than september, when it typically happens. Normally we are preparing for the second week of september. That, to our understanding, is not happening. How will that impact apples sales for the holiday quarter, typically the biggest for the company . Mark there might be more minor products during september. The ios 14 update will come out this month. The iphones will be announced at an event of some sort in october. In terms of sales, i think they priced in for their internal guidance. They have not announced external guidance, with the coronavirus, that the phones will not launch until several weeks after. It is interesting to see how long the staggered launch is going to be. My anticipation is we will see cheaper new iphone 12 launch around the third week of october and pro models more toward the end of october, early november. You are going to see a drawback of that for the q1 holiday quarter. What that might do is set apple up for a strong q2 in 2021. Emily mark gurman, on top of it all, as always. We will be following the drumbeat to october. Coming up, the deadline is rapidly approaching for tiktok to sell its u. S. Operations. About is the company even close to a deal . Thats coming up next. This is bloomberg. Emily time is running out for tiktok to sell its u. S. Operations. President trump chimed in today on why the u. S. , he believes, should be compensated. Pres. Trump i told them they have until september 15 to make a deal. After that we close it up in this country. I said the United States has to be well compensated, because we are the ones making it possible, so we should be compensated. So the treasury has to be well compensated. Now, a generalus partner at raise capital who closely follows the company. Thank you for joining us. You sold the company to oracle back in the day, and oracle is one of the players who has committed a bid for tiktok, in addition to microsoft and walmart, going in as partners. Do you think oracle would make a good home for tiktok . Thank you for having me. This is a very interesting deal. We did not even know it was going to happen. Oracle is an Excellent Company in acquiring companies. I think there is no rival in the industry, how well they know how to do this. In terms of the fit emily what are the pros . What do you mean by that . I think in this particular case for tiktok, we have a challenge where tiktok, 69 of their users are gen z. That isnt really oracles demographics. If oracle is going to buy them, oracle will have to go down the same road microsoft has already done with Something Like linkedin. They have to build the division outside the current business. That means oracle will foray into the consumer and add business. It is not farfetched. I think there ratio is relatively modest, looking for things to grow is reasonable. In terms of people that really know how to buy a company and make it productive, they are very good at that. Emily as you alluded to, this is a complicated deal. You have the Chinese Government saying they would have to approve it. You wonder why the Chinese Government would approve such a deal at all. There are certainly a lot of risks. If you are microsoft and walmart or oracle, why even embarq on on suchwhy even embark an uncertain endeavor . Things changed this weekend. Until yesterday, we, including myself, we were all questioning exactly what is included in this deal. We are talking about selling the u. S. Operation of tiktok. That is really not very valuable. The crown jewel of the deal is the learning algorithm that is part of bytedances overall portfolio. I have always been questioning, are they selling that . How do they sell it . Do they sell a one time source code to the buyer and they will also now have to clean up the database . The u. S. Operations data would be included. The data sitting in beijing would also have to be cleaned up. Adding that the Chinese Commerce ministry would have to put in 45 days of review, that is way past president trumps timeline that the deal has to be closed in 45 days from a couple of weeks back. We are very short on time to make anything happen. Emily what happens in this deal and what has happened so far is incredibly unprecedented even in the long and complicated relationship between the United States and china. How do you believe what happens here could impact u. S. And china relations for years and perhaps decades to come . As well as the crossborder investment that happens between the two countries and the Tech Industries in both countries as well . Obviously the impact is profound. Just look at what the u. S. Has done with serbias really wanted to buy money gram and could not. The things we have seen from siphias, the things china wanted to do, they can do in this direction. If we go down the route that there is going to be a chinese siphias, that means there are things the u. S. Would like to be occurring or licensing, we are going to have the same impact. The bigger issue is heres the thing. This is a very brilliant company. For the first time the u. S. Companies have seen how good the Chinese Companies are at building Machine Learning algorithms and break the market and amass a quarter billion users. It is going to be very tricky. Portfolio with many applications. Is u. S. Operation for tiktok not a big revenuegenerating business. They could easily create another app. The Treasury Department would become a sovereign investment banker and brokering all these deals, or we are going to be implementing policy and create a u. S. Firewall preventing us to use chinese apps and all the things we complain about how china has been doing it, the google and facebook and slack and twitter cannot get into china, and now we are going to do the same thing to them. Emily thats fascinating. Thats quite a scenario you layout, and it really is anyones guess how this plays out. Certainly fascinating things to think about. Thank you so much for joining us , general partner at race capital. Coming up, with joblessness in the u. S. On the rise and unemployment shrinking, competition for gig workers is stiffening. Drivers are resorting to extreme methods to get deliveries first. This is bloomberg. Emily a strange phenomenon has emerged near amazon delivery stations and whole foods stores in the chicago suburbs. Smartphones dangling from trees. Contact delivery drivers are putting them there to get a jump on rivals waiting to pick up orders. Spencer,story, we have who covers amazon for us. What exactly is happening here . Drivers areivery basically staking out these routes by trying to get as close to whole foods as possible. The phones are white amazons are what amazons system looks for when it assigns routes. If it has a route that has to be done immediately, it is looking for drivers that are close by. These drivers are combining a phone in the tree, to have the closest proximity to amazon, along with some sort of Software Running on the device to snag the route as soon as it becomes available. Emily what is amazon saying about this . Spencer amazon didnt talk to us about this. We did see a note they sent to a driver. Some drivers are concerned because they feel like if they are not in on this plot, they are losing work. Some people are benefiting and others are losing out, and they have complained. We saw an email amazon sent in response to the drivers, saying they will investigate the matter and if intermediaries are trying to game the system, thats a violation of policy. They said they would not be able to divulge whatever they determine from their investigation with the drivers. The drivers are frustrated, saying amazon does not seem to be doing anything about it. Emily it is certainly a very creative solution, but also a sign of some of the desperation out there, how desperate people are to get work. How were you alerted to this story . Spencer this is the gig economy, so it is not like an hourly worker who is getting paid even when the shift is slow. These are people who only get paid if they get the amazon delivery job, so they are looking for anyway possible to get the job, which could pay as little as 15. It is kind of a sign of the times. It also shows how they gig economy, particularly in a tough job market, people with the work really benefit because they will have big lines of people waiting to get that work. It doesnt hurt amazon to have a bunch of people Milling Around outside whole foods to get a delivery route. It doesnt cost amazon a nickel and makes their deliveries faster. Emily amazon has touted how many people they have hired in the midst of this pandemic. How are they handling delivery operations across the country . How much do they use amazon flex versus ups, fedex, and other Delivery Services . Spencer amazon really has a sophisticated delivery network. It can use those providers, like you mentioned, ups, the postal service. It has its own dedicated fleet of dive people see the blue amazon vans also making deliveries. All those handle a large amount of capacity. What flex does, this is an uberlike app, so it is similar to someone picking you up and driving you to the airport. That person can download the amazon flex app and make deliveries for amazon in their spare time. It is another part of the system , the only part that operates in the gig economy model. Thats why this is getting gamed in this way. Emily thank you so much for your great reporting. We will continue to follow that story. Uping up, tesla gearing production with a huge stock offering. Amazons drone delivery program. We take a look at that next. This is bloomberg. Welcome back to Bloomberg Technology. Tesla announcing today the company will be selling up to 5 billion in shares as elon musk repairs for growth in production. After a surge in the stock recently, the news has caused the stock to drop. Ark invest has tesla at the top holdings for three of the firms funds. Tesla has been doing well on the back of this stock split. What is your take on this latest announcement the company is going to be selling up to 5 billion in shares . I think the company is taking advantage of the current market cap. Obviously this will allow tesla to produce more vehicles, which from our perspective is a good thing. Carsnd i have talked about and teslas future. The more cars tesla has on the road, means the more data is collected and is furthering that goal as well. Investors. Term. We have always been looking five years out or more at our companies. We are happy that tesla is investing for growth and is just looking to make as many cars as it can. Just elon musk also surpassed Mark Zuckerberg as the third richest person in the world because of the rise we have seen in teslas stock. What is your outlook on growth as the pandemic continues . Still more uncertainty ahead. People want more private modes of transportation. People are not commuting as much. There are a lot of people struggling. We are in a recession. We do not have the money to spend on a new car. Tesla showed the graph in its last earnings report. It is the only one that has seen growth. I am more concerned about the rest of the Auto Industry. If you are a tradition automaker and youre trying to shift towards electric vehicles, trying to shift toward Autonomous Technology and you have to