Provide administrator to provide information about security protocols with chinese behemoth tencent. Meanwhile, bytedance and oracle have tentatively agreed to a deal has to be approved by the Chinese Government, and there is significant confusion about timelines. Lets check in without markets ended the day with senior markets correspondent scarlet fu , leading declines but outperforming all year. What has been happening . Scarlet there was a lot going on and to some extent, you can blame the federal reserve, j powell saying rate will stay at current levels, lower for longer, but investors were expecting a dovish surprise and were left hanging. When you look at equities, most of the damages from the large cap, big tech names, but it was a broad decline, eight out of 11 sectors in 20 active 24 sectors finishing lower. Outperformance today were value encyclical stocks. If you look at the past two weeks, it has been a clear theme. The two bestperforming groups were materials and industrials and the worst performers were tech and Communication Services and tack is pretty much apple and microsoft it for Communication Services, facebook and alphabet. Emily what does that mean for the growth trade led hightech . Scarlet no one is ready to say the growth trade is over. We have done that a couple of times and it has not paid off. In scale and in terms of duration, we are not accustomed to thinking of rotation as being sustainable. Since the pandemic began, by my count there has been at least eight instances where value has outperformed growth. If you look at the bottom 10 of the chart, it is a red section where you see value doing better. But they altered up to be head fakes. The question is, is the tech pull back a simple correction or something bigger . If you look at the equalweighted index for the s p 500, it is down 4 yeartodate, and one analyst points out it suggests the Downside Risk to the overall market is limited. Thank you sot fu, much for breaking that down for us. I want to get to tiktok next, and the latest news that President Trump is now scrutinizing tencent. I want to bring in anna ashton, senior director of Government Affairs at the u. S. China business council. Anna, i mentioned there is still significant confusion about what happens next with tiktoks. We know bytedance and oracle have tentatively agreed to a deal, but the president has to sign off on that. We dont know exactly when he has to sign off on that, but what is your general belief about how this will play out . Anna it is really hard to say, emily. Overall, executive orders related to tiktok and we chat have created huge uncertainty for the business community, and that isnt going away. But there is a sense there is going to be more executive orders coming. This is the underlying issue and anytok and wechat Chinese Company that might be in a position to collect data on u. S. Citizen. There is a National Security law in china that allows the government to command any Chinese Company to turnover that some massivering change in the law, that concern is going to drive more action from the administration. Emily what do you make of this news about tiktok that the government is now calling on Gaming Companies, the u. S. Government calling on Gaming Companies to shed light on their data relationship with tencent, a huge company that has tentacles around the world, and certainly broader implications on Chinese Companies trying to do business in the United States. Anna definitely broader implications but tencent is the Parent Company of wechat, and that wechat executive order on august 6, was issued at the same time as the first tiktok order. And this comes down to concerns concerns among u. S. Policymakers, not just in the administration, about the possibility of that any of these companies could collect u. S. Citizens data entered it over the Chinese Government, and what might the Chinese Government want to do with that data . So not surprising that a follow on from the wechat order would be to look at other data relationships tencent might have with Business Partners in the United States. So what companies are we talking about . If you are a Chinese Company and you are wondering if your relationship with u. S. Companies is going to be further investigated, who is on that list . Anna honestly, what we are is nog about here, there limit to what you might imagine falling within the scope of this, because it has been rolled out with such broad language under broadlyexpressed concerns. A highlyving in technical error that is becoming more so. The internet of things means almost every big industry has some sort of big data operation going on with it service to customers. Any chinesens that company trying to do business in the United States could entially subject potentially be subject to these same concerns. But right now, we are seeing companies that are specifically that, of applications their entire Business Model is in collecting data, and how they use that data to provide Better Services to their customers and to better target advertisements and things like that. So for now, we are seeing a focus on tech companies, but it could certainly go beyond that. We have seen this concern in when a Financial Company expressed its desire to acquire an american company, i think an insurance company. They got denied for exactly this with theircern ability to collect data on u. S. Citizens. Emily lets talk a little bit about the tiktok mechanics. Obviously, many outstanding questions. What are the outstanding questions in your mind . Several the midst of republican lawmakers saying they are not going to approve a deal if it doesnt meet their specifications. Anna there are a few concerns. To start, there are a few tiktok executive orders, when issued on august 6, when issued august 14 the august 6 executive order gave a 45day deadline, essentially next monday, for tiktok to be sold to a u. S. Company. The august 14 executive order gave a 90day deadline and also mentioned the committee on Foreign Investment in the United States would have to approve any transaction. We dont know which deadline is in effect, whether this oracle proposal has to be approved and enforced by monday, or if they plan to hammer out the details between now and after the election in november. Abouto dont know details the oracletiktok plan. We dont know if this is a plan to acquire tiktok outright, or tiktoks u. S. Assets and all the data tiktok collected, and usesver algorithms tiktok to collect that data, or whether it is something less than that. If it is something less than that, we have heard from people like senator marco rubio, senator john cornyn and others, that that is not sufficient in their minds, that that doesnt l. A. The national concerns y nationalesnt alla security concerns about the Chinese Government. But if it is more than just a partnership, we could see where the Chinese Government would say, we dont want to see our Chinese Company to sell the rights or proprietary datamation behind this collection algorithm, this ai is using, because the Chinese Government has also asserted its rights to approve or disapprove on any transaction that touches nonsense to technology that touches sensitive technology. So there is a lot up in the air about the deal and when the deal has to be approved. Companyy the way, that the Financial Company tried to buy was money gram, but the u. S. Opposed the deal despite huge lobbying by jack ma, and that one didnt happen. Anna ashton with the u. S. China business council, thanks for sharing your thoughts, obviously still many outstanding questions. Techg up, a strong wave of ipo and zoom logic, and sumo logic. We will talk to the sumo logic ceo next. This is bloomberg. Software maker sumo logic this week raised 326 Million Dollars in initial trading on the nasdaq, shares jumping as high as 25 , the listing half on the heels of snowflake debut. We spoke to the ceos of both of those companies yesterday, and joining us now, sumo logic president ramin sayer. Thank you for joining us. You saw some uplift, not double like snowflake or 50 like j frog, but they left a lot of money on the table. What is your reaction to the debut today . Rain first ramin first of all, it was a joy and not something most Companies Get to do, so it was a very emotional day for all of us. It is a day that we were filled with joy and gratefulness. Market, ifins to the you are playing the long game and want to build a durable company, it is not about the first few days of trading, it is about continuous, quarter after quarter of deliveries, so that you cannot only build shareholder value, but continue to go after the large, 50 billion number we are trying to tackle. Playing the company long game, in the last short six months, you have been thrown a curveball. Im curious why you went public now, did the pandemic accelerate your ipo work if you pause your ipo, or give you pause . Ramin you cant just plan it a few weeks to go public. It is something you have to prepare for, like game day. However, we determined with covid that it is a tale of two tells. Number one, we had to stop and focus on what matters, and that is our employees and customers. That is a priority in the near term. Once we were able to get our hands on that and make sure the safety and productivity of our employees, as well as helping our customers, who needed us most during this time, we have been reliable and secure the software we deliver, and felt comfortable to resume our thinking about entering public markets. Therefore, we decided to focus on this timeframe, and we are grateful to have been able to do that. Powerssumo logic realtime analytics and you Work Companies that, have been soaring in the midst of work from home trends. How has the pandemic and shift to remote work impacted your business . Ramin i think it has been interesting, because if you look internally within sumo, prioritizing the safety of our employees, it is not similar to what we have to do to help our customers with the safety of their employees. I mean security, analytics and intelligence. As more employees now have to work from home, the threat posture and vector as we call it in the security space, becomes more complex and risky. On legacyto rely tools that were architected for yesterday is problem, became a huge challenge for customers. So we saw the acceleration of a lot of enterprises, not just because of movement to the cloud are digital, because of the necessity for security when employees are home and the data is distributed. Then do you expect the pandemic, as it continues the uncertainty facing the economy, the lack of clarity about the next year, perhaps two years, how could that impact your business Going Forward . What challenges do you see on the road ahead . What youu can control can control. No one predicted covid. And in good times and bad times, we have a philosophy here that centers around our culture, and that is our customers. As long as we innovate and continue to deliver value in our ride thesee can times up and down and continue to be there is a partner, not just a vendor for our customers. That is what gave us confidence during this time. In fact, as we saw in the first though wevid, even didnt slow down in terms of the workforce, we saw the increase of data being analyzed and managed by our platform for our customers per its of the flexibility we provide our customers because of an unknown change due to the pandemic is a great testament to what we built for the new, cloud era, the digital era we are going after, a 50 billion market opportunity. We are happy to be in this position. Emily talking about the cloud , what are Growth Opportunities you see . Talkingveryone has been about cloud and digital and digital transformation. For any company to digitally transform, they have to build a modern application. In doing so, as you build modern applications, it creates what we refer to as a tsunami of data. Because these new applications are architected differently. These new applications needed different security architecture. Better build,m manage and secure modern apps ultimately deliver delightful experiences for their users. Emily have you seen much hold pull forward mad, and could that mean less demand in the quarters ahead . Ramin besides some of the impacted industries with respect to travel and hospitality, we can see that generally, we have seen different trends by industry and geography. So i dont think it is necessarily pull forward demand that is causing slowness in the future, if anything, pull forward demand is accelerating that 50 billion that i referred to. That is locked in the data center, and if anything it is going to accelerate the digital laggards to those that are digital leaders. , president n sayer and ceo of sumo logic. Big day for you, thanks for joining us. Coming up, uber is looking to sell part of its stake in a chinese ride hailer. We talk about that next. This is bloomberg. Rohit uber is looking to emily uber is looking to sell part of its 6. 3 billion stake in chinese Ride Hailing Company didi, to raise cash and boost its own share price. Uber is trading well below the share price at in which went public in may 2019. To discuss, we are joined by rohit kilkarni of mkm partners, who currently has a buy rating on the stock. Rohit uber is becoming Smart Capital allocators, focusing on resources and geographic segments they think they can win. They are either number one or number two in ridesharing and delivery. If they are contemplating the , i dont think they need cash, they have enough cash and liquidity right now. But if they get cash from selling their stake in didi, aggressive. More they acquired postmates, other companies, they been aggressive recently. So i see dealmaking coming to the pike. Emily the uber ridehailing business has suffered dramatically, although uber eats has grown. Now is didi doing in china, giving the pandemic and just general, just environmental term or . Has fared a little better terms of the recovery in the slope of the recovery that didi has had. They are probably couple of months ahead in terms of recovery in china. Where uber iss operating, the slope of the recovery and reopening hasnt been as smooth. Is doing better as compared to uber and lyft here in the ,. S. In terms of ridesharing and there may be somebody that can strike a slightly better deal. Emily how would you like to see uber use this cash, if indeed they are able to offload the stake . Rohit i feel there are two segments that they are focused on, stating the obvious, ridesharing and delivery. There are geographies they could perhaps do better in, latin america is one place where there is an opportunity for uber to be a number one or number two player. Are going they i there, aagainst did chuxin way to consolidate the market tend be a clearer, numberone player in latin america. That is one geography i think uber needs in terms of what the future should look like, and with extra capital, they could be perhaps more aggressive there. Emily what is your outlook on the ridehailing business in general, given it looks like we have more uncertainty i had more uncertainty ahead, the arrival of vaccine gets pushed up farther and farther and it could be sometime before many people feel safe getting into and uber again . You asked me this question three months ago, i wouldve expected the shape of the recovery to be better. You have heard both uber and lyft talk about july and august, and things were slightly softer than what the street is modeling right now. Both are still down 50 year on year. We had expected slightly better trends. Going forward, uber has a slight edge, they have eats and people like uber as a stock, but structurally speaking, i like uber more than lift given simply more than lyft, given simply its investments and their scale in most geographies. How ridesharing looks next year, at some point there is going to be a consolidation. On uber. Hit kilkarni we talk about the next ipo today coming up. Give you my world how can i, when you wont take it from me you can go your own way go your own way your wireless. Your rules. Only with xfinity mobile. The covid19 pandemic ushered in a new era for telemedicine. Welcome back to bloomberg technology. Im emily chang. Mwell went public today, shares surging in their debut on the new york stock exchange. We are joined by president and. Eo of amwell, Roy Schoenberg roy, thank you for joining us. The neuter of telemedicine never looked stronger. The pandemic accelerate your public plans . Roy it didnt accelerate the going public plans. It definitely made it easier for us as we meant public, took slain the role of telehealth. Thelain two role of telehealth. A year ago, we wouldve technologythe role of in health. I dont think we need to explain that today. Provides the backend for Virtual Services that enable doctors to visit with their patients. What does your outlook for how much more this business will grow . As i understand it, telehealth, telemedicine hit its peak in april and hasnt seen as much growth since then. Roy that is a great question, because there are different types of telehealth. We are just turning the corner on every buddy is understanding of what this would do. There is the usual type of telehealth people are getting familiar with, which is telehealth for urgent care, where you are stuck at home, you dont want to end up in an er if you have any merging issue, and people are using telehealth an emerging issue, and people are using telehealth to get with the physician. As new alternatives are beginning to open up, we exp