Services, bundling, tv, gaming options, along with a new Fitness Service which will work in tandem with the watch. For tiktokcles bid undergoes a National Security review. Oracle does not offer compensation to the u. S. Government as president from amended but does promise to create 20,000 new jobs. Tech was up on the day but also or volatile. Why was that . Sarah the Third Straight day of gains for the s and p. The nasdaq, the second straight day of gains of more than 1 . A strong day for tech. Some of these biggest faangbutors, your classic names. Microsoft, facebook, amazon. This even after Kim Kardashian said she would freeze her facebook and instagram accounts starting tomorrow. Facebook still up more than 2 . Microsoft staging a nice gain of 1. 6 today. We are still dealing with the aftermath of nasdaq falling into a correction. The nasdaq is still about 8 or so off a record. If you look at 2020 and the performance, it is unbelievable. Emily apple, first it was up, then down, then ending the day about flat. Talk about how investors responded. Obviously, we know have has had a huge run. Weeks on thele of back of that split. Sarah apple shares are still up 57 year to date. That is an unbelievable gain, especially considering the fact that we are living through a pandemic and recession. Iner the run we have seen 2020, that still could count as a win. When you look at performance on launch days in the past, some days you have seen gains of more than 1 . Some days you have seen losses of more than 1 . We did learn more about the subscription bundles, but there really were no major surprises. Still, apple shares a little bit higher on the day. All right, we will talk a little bit more about apple now. Thank you so much to joining us. Dan morgan, senior Portfolio Manager joins us now. I want to start with the watch. Apple opened the event really playing up the Health Features of the watch. Tim cook talking about the pandemic and the impact it has had on all of us. , two brandnewes watches and also a cheaper watch, as well as a new sensor to track blood oxygen levels. What are the highlights do you . Dan the watch has been one of the fastestgrowing segment. Over the past three years, about a 40 growth in unit volume. The wearable set is a growing area for apple. They came out with the new series six. Then they kind of followed suit with what they had done in the past with their iphones. That is a lower price. Particulars on that category, it is a hot segment, so why not introduce some new watches. It should be a positive obviously for them to complement the big news, which is the 5g phone everyone is waiting on. Emily no news about the iphone today but that is as we expected. What is your take on the increased fitness offerings which will work with the apple watch in a move that seems to take on peloton. No other equipment needed other than the watch. At 995y are coming out per month, a similar offering balaton in terms of workouts, music, all of these things. It shows that there is money to be made in that segment. Peloton went click and has had publicnt balaton went and had success. I thought that was a positive addon to the services segment. They came out with a bundle on that. That,f an attachment to recognizing that the market is very important. It ties into the watch. Emily moving onto the ipads, we are seeing apple run with this idea of every product being a family of products. We have the new ipad air with the fastest processor ever to be in an ipad, as well as the ipad pro and ipad eight, a cheaper version that might be more attractive to children, for example. The ipad line has kind of made a comeback in recent years. Dan you are exactly right. If we go back and look at the third quarter, ipads were up 31 in revenues. Thatis a group or segment had kind of become commoditized. It was growing very fast. Sudden, third quarter, people wanting a device that is inexpensive. I think it is a good positive for them. Following suit like with the watch. A lowerpriced one in terms of gamead, then upped the and features. Adding Different Things to the product to be able to allow people to get a good price point. I think they said 599 on that. Like the watch, preparing for the upcoming Holiday Season and setting the stage for the two Fastest Growing category for them, the watch and the ipad. Emily also, doubling down on theires and trying to use hardware success to drive revenue with this apple one subscription that will include icloud, apple tv, gaming, apple arcade as well as apple news. Led as applesbil twist on amazon prime. How significant do you think this could be as a revenue driver . Is there a comparison to prime . Dan there is. Prime, you get unlimited shipping, you get access to the tv, and so forth. They are trying to do the same thing. They have all these Different Services and they are trying to put them together. I think it is a good way to go. I think the only thing missing, i remember last year we spent a lot of time talking about apple tv. The four dollars 99 but they. 99 service, did not pay a lot of money into content. It will be interesting, with this new bundle, will they renew that interest in apple tv and try to really go head to head against like a netflix . Emily always good to have you on the show. We will talk more about apple later on. Senior Portfolio Manager at synovus. Coming up, oracles bid for tiktok under National Security review at the moment. There is one big thing missing that the president has asked for, compensation to the u. S. Government. This is bloomberg. I have a high respect for Larry Ellison. He is somebody i know. He has been a terrific guy for a long time. I heard they are very close to a deal. We will be looking at the tiktok deal with Larry Ellison and oracle. Emily President Trump earlier tiktok,lking oracle and saying the company is close to a deal but there are a lot of open questions. The National Security review is underway. We are joined by shelley banjo, who has been covering every step of the review. It is actually a twotrack review. Hassuries secretary mnuchin promised the president a weekion by the end of this or a recommendation by the end of this week. Shelly it will be put into the hands of donald trump pretty soon. We know that members of the National Security panel who were reviewing this bid met today and they would decide whether the president would approve or reject the deal. Members from the administration, come out andr talk it up ahead of time. It is still unclear whether it is going to pass. Nothing in this deal resembles anything that President Trump had asked for in the first place. Emily the president has demanded compensation to the u. S. Government. Oracle has promised to create 20,000 new jobs. How will the president react when he finds out this compensation is not part of the deal . And how can they create 20,000 new jobs . Snapchat only has some 3000. Shelly the answer to your first question, i think, something spendable. You say 20,000 jobs equals x amount of tax revenue for the united states, you could peg a number on that that trump could bandy around. Thatwas something already , reallyand others compounded from from the beginning. Trumplly gives donald something to talk about next week when he is doing the debate for the president ial election. How they will create 20,000 jobs is a completely other story. The two areas primarily would be Something Like content moderation. There are thousands of people every day going through these websites, removing offensive content. A lot these jobs, Companies Like facebook and snapchat, right now at least bytedance has a lot of these people in house. Have more than 10,000 people doing that. That is one area. They are building capabilities around ecommerce. If you think of tiktok trying to become a mashup of google, facebook, and amazon, then you start to see where these jobs come from. What is next . The president has until september 20 and he could block this deal, correct . Shelly that is right. The president could still turn around and say, i want an outright sale and send everybody back to the drawing board. Wordsnds right now by the that trump is saying about that it Larry Ellison, sounds like they are all getting on board. Even though i would have to reiterate that this is not a sale of the company, it is oracle taking a stake in it with bytedance, the chinese parent, retaining majority ownership. Banjo, thank you so much. Meantime, investors are closely watching how the tiktok saga continues to unfold. One is greylock partners, which invested in music. Ly. Hoffman,nder, reid joined us. He is also on the board of microsoft. Basically forcing a deal. Id i have invested in byical. Ly, which was bought bytedance. I think what you are seeing here is the first place where we are moving into a multipolar tech world. The Tech Companies from china are not only doing services for china. Company this amazing tencent, they do wechat. It had not come over to the u. S. Much other than people who had worked with china or had other kinds of exposure. Now i think we will see Technology Invented in china with global scope that will be contending with Tech Companies which we in the u. S. Have been so lucky for decades to have a broadly free run. Now, i think it is the ringing of the bell that competition is here. I dont think the right response is to go protectionist. I think there is an issue. China does diction is him against its own tech industry. Againstprotectionism its own tech industry. I think building bridges versus walls is generally a probusiness kind of approach as well as a prohumanity approach. We have heard the first ring of the bell and we have had the first awkward response. What we will see a lot more of is Tech Companies from china becoming globally competitive. Caroline you think Chinese Technology is becoming more of a threat to American Technology . Reid yes. Establishforms will the platforms of the future . Tended to make those Global Messaging products generally speaking within the west coast of the united states. Here you have got this amazing set of technologies from tiktok. How do you onboard someone, find videos they want to watch, this is like the next generation of television, entertainment. How do you do that . Tiktok figured it out or bytedance figured it out before any other company in the world. Have muchare going to more from reid hoffman later in the show. Coming up, facebook unveiled a new information hub. West alsoardashian moving markets with her latest post, scrutinizing facebook. This is bloomberg. Facebook has offered itself as a resource for Accurate Information about everything from covid to knowing how and where to vote in the upcoming election. Now it is adding Climate Change to that list. Joining us on the phone, kurt wagner. Well is this push to provide Accurate Information rather than taking down misinformation actually working . Kurt we dont have great stats to determine how this works. We spoke with nick clegg at facebook and he said the reason they decided to go with a Climate Change hub is because they have seen so much success with the covid19 hub and the voting section. This they feel is a way they can walk the line between not feeling they have to police every post on the platform around misleading info, and still give folks somewhere to information. Ible emily on the west coast, as rage, wees continue to have been going on a month of bad air here. I do want to talk to you about the stop paid and for profit campaign. She said, i love that i can connect directly with you through facebook and instagram but i cannot stand by while spread hate and misinformation. Fewis just one of a celebrities that will be andzing their Facebook Instagram accounts tomorrow as part of the stop hate for profit campaign. Adding your name to this with Sacha Baron Cohen adding her name to this with Sacha Baron Cohen, katy perry. 188 millions instagram followers. She chooses to post something or not to pull something. This is the same Group Leading the ad boycott from july which we talked a lot about. This is kind of the next wave of that. Stock takefacebooks a dip this afternoon when kim tweeted. I think ultimately it will take a lot more than just one day of not posting on instagram. But facebook notices this kind of stuff. Certainly instagram does as well. When you have someone of her stature involved, it will require reaching out and talking to people about what facebook is doing. Of the timereminded that kylie jenner tweeted about snapchat and wiped a billion dollars off snapchats market cap. We will be following just how widespread the campaign is tomorrow. Kurt wagner, thanks for your reporting. Coming up, more of reid hoffman. How he believes the u. S. Economy will fare after getting hit by the asteroid that has been covid19. Greylock announcing a huge new fund. This is bloomberg. Emily welcome back to bloomberg technology. Im emily chang in san francisco. It back to apples launch, no iphones around, but they had a series of subscription bundles. Spurstreet hopes it will more growth in services revenue, as well as new watches and ipads. You have a very nuanced take on all of these announcements. I want to start with the watch, and of course, apple playing up the health care aspects of these new watches, and how critical the watch has thus far been to driving more health awareness. Is mostificant, or what significant, in your view, about these watch it reveals . Julie the most important thing here is that apple is making strong moves upon what i call fluid and healthy. Priceombination of lower points, family programs, features that appear appeal to children and work out for beginners will help them attract a bigger audience. Their core audience is still too small. Apple has always had an aspiration of playing a significant role in the health care space. Doing things like adding blood , being able to measure that checks and other box for them. It could go beyond Heart Disease and puts them on track to become more part of peoples daytoday lives. Emily where does apple go from here when it comes to the watch . Put a lot of the gears, if you will, in place to make this something bigger. Obviously there is potential bennies to be realized. Potential that needs to be realized. It will take ae lower price point to get out to consumers. Talking about Critical Mass that 20 or massmarket at 50 . Thats listedngs as where they are headed is doing a better job at presenting consumers with insight and nudging them to act on insight. If its my Blood Pressure is ith or my pressure is high, but you are on the verge of cardiac arrest, you should probably go to the hospital. Driving broader adoption at lower price points. I dont know that they can do this on their own. They named they may need to depend on the ecosystem, the Health Payers or the u. S. Government for those on medicare that will somehow this smart watch has a positive roi in terms of driving down the cost. If we tap into the Services Bundles that they are rolling out, discontinuing to provide Seamless Services across their devices. While apple may not be number one in terms of the number of uses in tv, music wargames and so forth, we know they have highquality services. The seamless operability or use across their hardware platform, including the watch, will continue to serve them well. Emily how are you expecting this to play out in the Holiday Quarter . We are expecting new iphones to be unveiled next month. Quarter, a booming the last quarter of the year for apple, through the holidays. They have new subscription bundles that were in a very difficult economic time with so many people losing their jobs and struggling with keeping themselves connected. What is your outlook . Julie there is the total cost providing education. Apples and others like it that are Building Consumer products will continue to do well because its necessary for folks to get access to services remotely. Certainly, bundling their services, as well as the free 30 days up front in the trial period gives consumers an opportunity to trial the services at a lower price point. They stick with it once i get the opportunity to experiment with it. Thank you for sharing your insight with us. Apple is one of the most Successful Companies in the world. As we see by its 2 trillion market cap. Partner just raised another billion dollars to invest in what they hope will be the next generation of big Tech Companies. Linkedin cofounder told us in an exclusive interview, this has been the strangest year of his life, yet they are striking plenty of deals. Sometimes the founders never meet in person. I asked for the outlook on the economy and how the pandemic will play out for silicon valley. Its very strange. We have, on one hand, this accelerated start market stock market due to fiscal policy, yet an asteroid has it the economy. My heart goes out to people in those industries, whether its retail or any of these things that has just left pain and suffering a lot across the workforce. With happening to jobs and restaurants. To some degree i have started thinking, what would a new deal for getting restaurant started and s ps started, how would we do that because its really im