Intends to bring a deal to the white house by september 20, the official deadline date. Joining now to break down the week that was is abigail doolittle. Volatility volatility volatility. Walk us through the week that was and how might next week be different . Volatileeek was very and choppy. Up and down, a real roller coaster. At the end, it was a down week and today was especially choppy. Earlier, it felt as though the bulls were trying to take it away then the bears stepped in. The s p 500 up slightly. The nasdaq down. Continues to be newtons third law what goes up must come down. We are seeing a bit of a reversal. On the day and the week, even though we had the nasdaq down, we also had the nasdaq 100 fix down. Next week, maybe some of this choppiness will leave. You see apple down again on the day. Pointing to the idea that next week maybe in the near term, some of the choppiness will leave. If we go to the terminal, we have a great heart. Over the longterm, this probably suggests there will be a huge bout of volatility ahead. What were looking at here and is the nasdaque 100. Diverged, the white shot higher and stocks dropped. Now we have the nasdaq sharply higher and a big divergence. Suggesting that will come together with stocks dropping. There is reason to think that that is going to taper off next week. I the end of the day, those two will reconnect. Again, big volatility is probably ahead before the end of the year. Hopefully, for the bulls at least, next week will be smoother. Give us an indication of what is happening beneath the surface. If you look at the individual movers, some of these were pretty ugly. Yes they were. I should add another piece of this is a move toward the cyclicals. One sector was higher, materials up 1 followed by industrials. The tech stocks we are looking at now on the week, very rough. The worst week for apple since march. It the worst week for tesla. Since march. Amazon, lululemon down. Stack is not a tech stock but it is in the nasdaq 100. If we were to look at these on the year, huge gains still. Most of these are up by 50 . Investors just taking some chips off the table perhaps putting them into cyclical names. Zoom isight side, outperforming. It was the top stock last week and this week. Stocks one stayathome that is performing in an unbelievable way. Look at that, up 66 over the last month. They recorded a great quarter. Investors one in on zoom. Emily they see more growth ahead. We will continue to follow abigail doolittle. Have a wonderful weekend. Sticking with tech movers, i want to bring in our guest. He covers so many Different Companies across the big tech landscape. Youre looking at facebook, google, netflix, amazon, what is your take on the selloff we have seen over the last few days after such an incredible and unprecedented rise . I think you said it right. Meteoric august and i think this is a healthy correction. Netflix have done phenomenally well this year. Facebook has done reasonably well and google has been in line. That is largely on track with what has happened to fundamentals this year. The yeartodate rally, i largely agree with. We did have a search in august and this pullback is probably healthy were these names. Thiswere medium buys for for us going into this correction and they still arent cheap. We consider them to be grinding stocks to the back half of the year. Emily we have been talking about tiktok every day which has proved a credible threat to facebook and social media. Instagram has come out with its take on tiktok. What is your take on how much of a threat tiktok is to the u. S. Social media giants . Midst of the uncertainty in the china situation . Nominal deska fun phenomenal example of innovation. Algorithmically driven video. Beautiful service, highly addictive. , other little Surprising Companies experimented around this. It is odd that this company did it. Its interesting they did it and youtube was left on the side and now facebook is playing catchup. All that being said, nobody knows whats happening to tiktok. That looks like there is a distinct possibility that it gets derailed if the essay gets sold or the algorithm gets removed. There is a real opportunity for and theywith reelz could be stymied at tictac tiktok. It is facebooks opportunity to come in and take some of that market share. Facebooks app is not better than tiktok, but it is comparable. It is certainly likely that nothing happens to tiktok at all. There is potentially a changeover in the administration and this was a lot of noise. We obviously dont know. We will be seeing what happens as we approach timber 20th deadline. Talking more about facebook, we have talked in the past about the blue app facebook proper, the social network, its just not as cool as it once was. Instagram has carried on the torch and away. What do you think the future of the blue app is as it faces competitive threats from all sides . Im going to give you a differ perspective. Facebook, there have been two major trends across the internet. The dramatic acceleration of online retail. That trend is phenomenal. The other trend is that social media usage really blew up this year. It accelerated and increased materially because in the times of pandemic and social unrest, people reaching out for friends and family and facebook is a way to do that. Facebook has been a bit of a usage beneficiary of the covid crisis. What is great is this new opportunity for facebook which is social commerce. , thel commerce plays out best derivative will be facebook with instagram and there is Something Else we put out a report on this last week, facebook marketplace. Dont tell anyone this, but it is now twice as big as ebay. 12 times bigger than craigslist. It is even better bigger than its competitor in china. This is like another one billion user asset facebook has that is under monetized. Thats another reason why facebook is one of our top picks. We like the shares. Emily i definitely have to agree if you have some cleaning out to do, facebook marketplace is the way to do it. About netflix, i spoke with the coceo of netflix earlier this week. I asked him what netflix is next ask will be. He said more of the same. Were going to double down on scripted content, original content. Can netflix keep growing as it has with thyssenkrupp singler strategy in mind . Yes. In part because they tapped into the dramatic growth in streaming. People are picking netflix versus disney plus or apple tv plus. They are picking up bundle. Two or three services. Netflix is almost certainly part of that bundle. They win as the streaming bundle wins worldwide. The real gain for netflix is local content. Its original content but original International Content. Local language originals that they are producing and acting in spain, argentina, korea, japan. They are doing this globally. Iny are two years ahead terms of internationally produced International Content that they are rolling out. They own it and that will probably cause them to sustain this growth for the next 35 years. Thus the underappreciated element of netflix. The real new wants is International Original content when nobody else is. Emily always good to have you on the show. In with you again in a couple of months. Aning up, we will talk to investor in Information Technology looking at some of the Companies Making a huge impact in Remote Learning and are the gaps are for our children. Thats next. This is bloomberg. Im trying to be honest how angry and frustrated i am at the lack of federal leadership, the dishonesty, plain things down, the lack of resources. A naturalorphed from disaster to a manmade catastrophe. We shouldnt be in the situation. Catastrophe scenario is not that far off. Population30 of the that doesnt have sufficient Internet Access. Schools have done a heroic job getting laptops out. The carriers have done a great job getting them Internet Access. But we are still seeing 52 in percent of the population is not engaged for some reason. There are some things that we can do that are super tactical and immediate. We need to make sure every student has access. Right now, a report just came out the estimates 15 to 16 Million Students lack access to adequate internet and devices. Emily just some of our interviews from the week addressing the concerns associated with moat learning. Where can we do better for our children, educators, future . Our guest i saw you nodding there. We heard our guests calling it a catastrophe. Working in tech for a long time, you have invested in the space for a long time. What is your view on the urgency of this crisis facing our children . Like they said, it is not our off the catastrophe. We know that millions of students across the country during this time do not have access to highspeed internet. They dont have access to devices. A lot of the students are the same ones who already went to school for covid. They were under resourced. They didnt have access to the same resources as much more resourced schools. During this time, what you are seeing more what we expect is we are going to increase the divide that existed between students dont haves schools the resources they need to support their students. This isnt just across lines of income, it is also across lines of race and rural versus suburban. It also crosses lines of if you are a student with disabilities, you are not receiving the support you would normally receive in a School District. Theres a whole bunch of resources that students arent getting another they are at home. Now that they are at home. Emily a huge percentage of kids might have to work on a cell phone or use public wifi. Gaps that need to be filled and are there companies out there lynn these gaps and will they be filled in time . That is a great question. Aroundssing needs are the infrastructure. The internet and the device. If you dont have that, nothing else matters. You have to have the primary tools. In terms of companies that are offering that, its less companies and more workarounds for nonprofits. Some Service Providers are trying to make their axis more affordable and there is some government regulatory work happening to get more access. There are necessarily Companies Going after the infrastructure that is needed. That is the assessment of what ive seen. In terms of a concentrated effort, we have yet to see it across the country. You see it more at the School District level and the local level. Where are the opportunities for investment . We know there has been an explosion and demand for supplemental learning tools, live online classes. How big of an opportunity is that and does that remain once things go back to normal . And people dont necessarily need to supplement their education. Inas someone who has been this sector for several years now, the sector has booms and busts. You have moments where investors are super excited to invest. We are at a time where there is the boom. One of the places where we are seeing excitement is supplemental learning for k12 students. There are massive tailwinds and the market because there is more acceptance that a modality of learning around online live is exciting. Its not just that it makes it more accessible but in terms of 68anies that connect students, its students meeting students they would never otherwise meet. Orre are a lot more factors positives that come out of that experience, engagement that comes out of that rather than just purely learning itself. A lot of that will continue postcovid because even when you think about School Districts and public schools, a lot of the things that are being cut r enrichment and supplemental learning. The one trend that i am more skeptical about is we are starting to see companies turning targeting learning costs learning pods. Given the parents i talk about want to send their students back to school once covid is over, i am more skeptical about whether learning pods remain. I know you are doing a lot of work on retraining adult workers. Workers who have lost their job. Thats another opportunity. Thank you so much for sharing the work you are doing with us today. Coming up, vmware following twitter and i spoke allowing staff to permanently work from home. You can expect a pay cut if you leave Silicon Valley to a less expensive city. More on that ahead. Now to a developing story. Vmware employees who take up the Companies Offer to become permanent Remote Workers will get a pay cut if they leave Silicon Valley. Us the fine print. Vmware has an interesting scale by which they are determining salaries based on where they move. It vmware employees want to leave Silicon Valley or the surrounding areas, then they have to accept that the company is going to cut their pay should regionve to a geographic with a lower cost of living. For instance, moving from the bay area to denver, colorado, would cost an employee 18 of their salary. If they wanted to go to southern california, maybe los angeles or san diego, they would be giving up 8 of their salary. Workersat a time when are encouraged to find a more Flexible Work from home solution. They may want to escape skyhigh rent and mortgage in big cities. Also in an ideal world, would want to hold onto their bigcity salary. What are other companies doing to address this increasing demand . It sounds like twitter is already doing this and has a local Compensation Program that is guiding the numbers they are giving their employees. Absolutely. Twitter as well as facebook and before now, ad strategy of paying for talent depending on where that is. Vmware calls it the cost of labor in certain places. Whats new here is that companies are at their discretion deciding whether to uphold those preexisting policies from another world in this period. Example, decide not to make any adjustments to compensation at this time. 2021,ok says that as of that is when they will cut someones pay if they move to a less expensive place. The ceo of service now spoke with me today and said they will likely take a similar approach. They havent made a final decision, but it is likely that in 2021, bahai pay that they were giving for the bay area the high pay that they were giving will decline. Emily are employees going to take the opportunity to take the cut . I think that some who want to be closer to family and loved ones and can succeed in the Real Estate Market which is really what this is about will absolutely take the cut and think that its worth it. Others might not. A real interesting story. I know you will continue to follow it. Thank you for bringing us that scoop. If you have left your heart in san francisco, you might want to leave your lungs tomorrow. The bay area is suffering from some of the worst air quality in the world as wildfires rage across northern california. One argument to go to denver or san diego or somewhere else. We will bring you the latest, next. This is bloomberg. You can go your own way go your own way your wireless. Your rules. Only Xfinity Mobile lets you choose shared data, unlimited or a mix of each. And switch anytime so you only pay for the data you need. Switch and save 400 a year on your wireless bill. Plus, get 400 off when you buy the new Samsung Galaxy note20 ultra 5g. The big events are back. Xfinity is your home for the return of live sports. Emily this is bloomberg technology. Im emily chang in san francisco. They are quality in northern california, oregon and washington is among the worst in the world. Multiple fires have swept across the region. Joining is never more at what is happening at this moment, sophie alexander. I just looked at my neighborhood this morning, around 320 aqi. It has dropped to a balmy 275. Still horrible. What exactly is the cause of the air in particular being so bad the last three days . The orange haze. The ash rainfall. Sophie yeah, so, across the west coast right now, there have been 70 fires going on up and down california. It depends on where the wind is blowing at any one time. Right now, it seems like the wind is pushing a lot of that smoke towards the bay area which were experiencing this terrible air quality. Emily this has been debilitating for a lot of people. It has been kind of a rough week. It has been hard to get anything done and to focus. How much longer is this going to go on for . Sophie yeah, it is hard to say whether this is going to last through the weekend or when its going to clear up. One of the people i was talking to who runs a restaurant, today, she had to close it yesterday. She was lamenting about the fact you cant really look at what the air quality is going to be at noon today. You cant look at what its going to be like tomorrow like you can with the weather. As for californias fire season, that is really just getting started. We should expect similar conditions for another couple of months. Emily it is a double whammy for businesses who already had to shut down because of covid. Theyve adjusted and now you cannot even be outdoors. How is it impacting the businesses you have been talking to . Covid testing sites, for example, that are also outdoors . Sophie yeah, it is affecting us and a bunch of different ways. Just regular Small Businesses like restaurants that can only really operate for sitdown service right now. Nobody wants to sit down outside when the air quality is so bad. When the sky is orange and you have real apocalyptic conditions. But its also hard for our response to covid19 across the state because we rely on outdoor testing facilities, because thats what is safe to do. Its no longer safe if the air quality is so bad. It is really a catch 22. Will all right, we continue to monitor the situation throughout the weekend. Hope it gets a little better by monday. Sophie alexander, thank you so much for the update. Well, sports this year has faced unprecedented challenges, from the Pandemic Health crisis to players boycotting games as they protest Police Brutality to shorten seasons or no seasons at all. Last night, football returned in kansas city. Trafficking ceo and cofounder Jason Robbins spoke to vonnie quinn about the return m