Third straight week. For more on wall streets move, we are joined by scarlett fu. Lets talk about how this happened. Ett we had quadruple witching. Options tied to indexes and stocks, that led to a pick up in volume. Then you had it falling below the trendline, where the average price over the past two and half months. The theme for today, as it has been for the rest of the week is the lingering disappointment that the fed did not give investors a prize that they have been positioning for. Recent winners, the tech, has been consistent laggards. They are the worst performing sectors this month, down 10 in september. Emily i do want to talk about oracle, tiktok, and this dramatic move by the u. S. Government to expel tiktok and wechat by the app stores. When did you what caught your eye . Scarlet what i found interesting was that even though it trended lower, volume in the stock is off the charts. It was about 26 million shares this week on average. That is up 86 from the first two weeks of september when oracle was in the mix. That is more than doubled the daily average of january through august. One analyst points out that operating tiktok would be extremely profitable for the company because almost 90 of the top line will flow to the bottom line. Analysts also said that oracle can adjust National Security concerns by pointing to government agencies. It will allow it to secure personal information with the same rigor that it secures u. S. Intelligence info. That is one of the notes from wall street that has people excited Going Forward if the deal gets done. Emily thank you so much for wrapping it all up for us. Happy friday. Talking a little bit or about tiktok now. The u. S. Today said it would expel wechat and we check from u. S. App stores as soon as sunday, but could reverse a ban gets aok service once it deal that satisfies National Security concerns. Services provided to tiktok will be extended until november 12. Tiktok responded in a statement saying it disagrees with the commerce departments decision and added that the company is committed to protecting 100 million u. S. Users safety and privacy. We discovered wechat downloads have surged since the ban. Ives frombring in dan wedbush securities. If the u. S. Government makes good on this promise, it is a pretty dramatic move. really, sharper teeth and the talk up at the top coming in thethe white house talk coming out of the white house. Access, that is going to be front and center in terms of cfius. It is going to be a highstakes broker. That puts more pressure to get a deal going with oracle front and center. Emily what you think the chances are of a deal being done in the next 48 hours . Dan i think about 65 . Just given the situation in terms of bytedance and tiktok, if the plug gets pulled on , it goes downons massively on day one. If you look at the alternative with microsoft no longer involved because of the algorithm situation from an acquisition perspective, i think investors are hoping that sunday night we get a deal. Ofcomes down to this moment this tech war with tiktok and wechat front and center. Emily what do you make of what we know about a potential tie up and the term that oracle and bytedance have agreed to . To be ahink it needs majority ownership in terms of oracle and walmart oracle, they are winners. They come out smelling like roses, and this could have a Ripple Effect for oracle in the withay, since they compete microsoft and others. For tiktok and bytedance, especially ones china changes the export roles with the algorithm no longer in play, that is going to be at the linchpin of this argument in terms of how they access the source code and that is something the white house is talking about. Emily one of the chances china says, we do not care. Why does tencent need to have operations in the United States . There are plenty of giant, incredibly Successful Companies that do not operate in the United States. Dan there is definitely a chance. Operations, tiktok lets call it 30 billion, depending on what path that takes. I think that is the issue that it goes up in smoke. As much as there is a who win and who comes out better, it does come down to if those u. S. Operations get shut for tiktok, it could be a huge gut punch to bytedance. And it would be a wrapping up of tensions. Be one of the most strategic players within china apple. I think china finds themselves they are not selling in terms of tiktok, but they have to get a majority stake. Couldicken in this game have significant consequences. Emily what do you think is the ultimate outcome here . We have an election coming up in there is aber and chance that there will be an administration change. There is a chance that President Trump stay in office. Theres a chance that tiktok continues to operate as it has been from the beginning. 12, cristobal the ball,view it crystal the way i view it is we do reach a deal here. Also possible a deal past,through, but in the it does seem like a lot of this around security concerns. I think the white house and there33 comfort needs to be comfort. If that happens, this deal gets done. Going into an election, it goes down a dangerous path especially in u. S. China decorations. Accruations. Emily all right. That would be a huge potential. Always good to have you on the show, dan. Thank you for showing sharing your insight. Silicon valley goes public. We will look at the latest ipos to hit companies to go public. Why investors are seeing a similarity with snowflake. This is bloomberg. Emily welcome back to Bloomberg Technology, some breaking news. Democrats and republicans have reached a deal to avert a shutdown on october 1. They were working to secure some additional funding to keep the government open. They have reached a deal to keep the government open for now as negotiations this week was supposed to be the before education started in new york city. Mayor de blasio pushed back the date. To open september 29. Middle and high schools to open october 1. Here in san francisco, school has already started, but it is virtual for most. The intersection of education and technology is the focus of our special airing tonight. Educators and investors and innovators. Unbelievably angry and frustrated i am at the lack of federal leadership and dishonesty and playing things down. The lack of resources. This is more of a Natural Disaster than on manmade catastrophe. Should not be in this situation. We should not be in this situation. 20 30 of the population that does not have sufficient internet access. Schools have been doing a heroic job of getting laptops out. Seeingn then, we are part of the population not engaged for whatever reason. It is a tough situation, for sure. There are some things that we can do that are immediate. We need to ensure that every student has access. Right now, there is a soup a report that estimates that 15 million to 16 Million Students lack access. Tonighthis program airs and on saturday morning in london and hong kong. If you take a look at the latest news, you will see a familiar face. The latest issue dives into the relationship between Mark Zuckerberg and President Trump and looks at employee claims that facebook is not as worried about free speech as it is about attracting the president. There it is. Sarahus now on the phone, covering the story. What was your ultimate conclusion about the relationship between art zuckerberg and the president Mark Zuckerberg and the president . H i do not think that we concluded that Mark Zuckerberg is a republican or trump supporter necessarily, but what he is is concerned about facebooks ability to stay dominant manatt be regulated, and in that sense, he has been in credibly helpful to the president looking the other way when he breaks rules, reaching out to him directly when there are problems that need to be solved, also with conservative news organizations, the policy at facebook has looked the other there is information spread on facebook. It all has to do with the recent round of lies about voting. Thato vote, went about, facebook has said in the past would take that content down, but instead has been putting links to more information instead. Ultimately, employees are concerned, not just about this type of behavior in the u. S. , but how facebook caters to governments and powers around the world and that is the story. It is a sobering reminder of how facebook deals with these problems. Emily you also reveal that zuckerberg has told employees that facebook would fare better under republicans. What is the context of that remark . Facebook is looking at a regulatory perspective. They are under antitrust investigations. Trump has made a lot of noise aret whether there anticonservative biases in facebook, but they do not believe that exists. Democrats are very organized around their critique of facebook and that was evident in the recent hearing that zuckerberg did. They have a plan for how they would hold facebook accountable that is very scoring scary to zuckerberg. He has been catering to trump this year, answering his questions and problems, and our sources tell us he has not frier, check it out in the latest news. Great reporting by sarah. Coming up, we will have more on Bloomberg Technology after this quick break. We will be right back. This is bloomberg. Welcome back to unityberg technology, Technology Getting out of the gate today. The maker of the backend platform that helps drive the creation of video games, architecture, filmmaking, advertising, even car making. The ceo joins us now. John, talk to us about the debut and your reaction to it. So happy to be here. Thank you for having me. We debuted 15 years ago. Not a brandnew company. What we make is the Underlying Technology that powers half the worlds games. We are the underlying outfit. Are 3700 strong, growing thedly, and we debuted on simple view. Emily talk to us about the environment and a decision to go public when we are in the middle of the pandemic. Huge amount of Economic Uncertainty ahead. Without the ipo window would be completely sealed we thought the ipo endo would be completely sealed shut, but you are one of the companies that made it out. I did you make that call how did you make that call . Picked the day to go public around february, before the pandemic, and we thought back then was not september would be a miserable window to go public. Depicted anyway. We thought we had a Strong Company and despite the turbulence that can because i uncertainty, we thought we would be one of the few companies that would make it out in september. On the backend of the pandemic, we thought it would be the worst window in history. And we said we are still gonna go public. You, our ability to tell the future of the stock market and the open window for ipos is about as wrong as you can get. We did not pick the window because of its strength, we picked it because it was right for us. It happened to be a good window for ipos. Your largestf customers are customers on google app store, google play, what is your take on the latest attempts by the u. S. Government to push bunnies like tiktok and andompanies like Tiktok Wechat out of the app stores . Creates i it think competition creates utter outcomes for all. Blocking people from coming into the marketplace, i do not think it works long term. I definitely understand the broader notion in American Government that they want to do what they want to do on the political front. I cannot really speak to the politics. That is not my place in the world. I take these politics as sort of the specifics of an environment that i have to operate in. We are successful in the west. We love our business here. Thankfully, i am not tiktok. Games . What about you have big customers that are on the app store, what do you take what is your take on the Battle Royale between epic and apple and google . Joe brilliant ceo at epic. My take is simple. Enormously from apples ecosystem. Half ofpp store, around all mobile games a little bit less than 1 are built in epic, so in terms of whether it affects us, it really does not. The time that i have played the game, i have loved it. Other than hoping that there is peace in the world when it comes to technology companies, i do not have a horse in the race. I do not need to call it. Emily there was a lawsuit filed against your company alleging that employees including yourself have it involved in Sexual Harassment or creating a sexualized atmosphere by a vice president. What have you done to address those allegations and where does that stand at this point . These. S really all it is really old news. It was not news in begin with. We denied it in its entirety. While there might have been an opportunity for arbitration, nothing is being arbitrated. Proud of the people who work at this company. So proud of the culture. Ityou look at what we did, togetherst in it action. I will tell you that i encourage you to spend time, wander the halls and asked. We are so in it together, so aligned, so supportive of one another. Bad news cycles will happen. It is what it is. Emily i might take you up on that, john. Last question. What you see the biggest opportunity for growth in this environment . Video gaming is huge in the midst of the pandemic. Mentioned, now, as i the market leadership is an 190 countries. Beyond that, we are showing strong success in markets like architecture, technology, construction, huge opportunities there. Autonomous driving, robotics. At unity, we think of ourselves as growing and reaching beyond into other industries where we can take advantage of our tools. Emily alright. John riccitiello. Thank you so much for joining us. Snowflake, ally, having successful debuts this week. We will wrap up the tech ipo frenzy. Nasdaq ahead of stings. Next. This is bloomberg. [narrator] this is kate. Hey. [narrator] she takes two prescriptions. Kates son jack, takes one too. Kate works hard, and thought she had good insurance. But she still pays too much. Thats no good. So kate downloaded the goodrx app. Now she can compare prescription prices, to find the best discounts. She even beats her insurance price. Good for you kate, good for you. Goodrx, stop paying too much for your prescriptions. Download the free app today. We are thrilled with the reception. Really started assembling our Institutional Ownership over a year ago so this is not something of the last couple of weeks. We had people buy into the offer. Innovate to build a durable, sustainable, longterm company. It is not about the first day or first few days of trading, it is about that quarter after quarter of delivery so you cannot only deliver on the shareholder value, but continue to go after the large 50 billion we are trying to tackle. We are very focused, especially in the past four months, in understanding whats happening during covid. Whatever happening with the ipo during the first day of trading. We did the model to get it to the right price as we go out. From that point on, we trust the market to stabilize the price. Emily welcome back to Bloomberg Technology. You just heard from the ceos of allnowflake, jfrog making their ipos this week. We also heard from the ceo of unity technologies. With more on the effort to land tech ipos during the pandemic, we have jeff thomas, head of west coast listings for nasdaq. Thank you for joining us. I know it has been a big week for you, probably a sleepless week as well. Talk to us about what it was about this week. A month, two months ago, without the ipo window wast sealed shut. This week, explosions out of the gate. What is it that gave these companies such confidence . Jeff a lot of companies were targeting to come out right after labor day. This is the first crop. We have busy weeks for the foreseeable future leading up to the election. By the way, this is the first week we have talked about Tech Companies. In august andos nasdaq. You are seeing an explosion across health care, special purpose acquisition companys, and other Tech Companies are getting into the game. It is a wild ride. Emily what are the next weeks looking like for you . Jeff we have a busy lineup. One of the big ones coming up is goodrx. We have a lot of other big companies. We have news sponsors forming. Interestingly, we are seeing a lot of great business combinations. Valentine announced they will be doing an acquisition and listing on nasdaq. Emily now, you compete with the New York Stock Exchange for listings. Theyve got snowflake, volunteer in the next couple of weeks. Talk to us about the state of that competition. How big a deal is it when you lose a company that big . Jeff we compete seriously with every listing. We have won over 85 of all companies. When it comes to competition for listing, it is not just the ipo. Weve had a number of great eurig, dr pepper announcing a transfer. That is over 180 billion of market cap that will move their listing over from new york to nasdaq, so we are extremely proud. That is based on a Value Proposition of helping our customers through the Investor Relations assets. Helping that with their branding and messaging with investors and consumers. And some really exciting index opportunity especially with the nasdaq 100 which has been on a tear this year. Emily ok, but you do put a lot of work into trying to win these companies over. Airbnb for example also expected to come out this fall. They have not made a decision on nasdaq versus nyse. What conversations are you having with them to convince them to go your way . Jeff one of the things we talk about is how can we make your ipo day special for you . One of the things we did this week, we had jfrog and sumo go public. They couldnt travel to new york to celebrate with us there. We hosted an opening bell ceremony in Silicon Valley on wednesday and thursday morning, ringing the bell at 6 30 a. M. Thank goodness, the smoke cleared up and we were able to get cool temperatures. It was an amazing celebration with both companies. Emily theres a lot of confusion still going back and forth about the tiktok situation. The one thing that has been reported is that bytedance, the chinese owner, if a deal happens, would plan to take a u. S. Tiktok Company Public next year. What is your take on that . Jeff we deal with companies from around the globe on the nasdaq, including many chinese companies. There has been a lot of discussion around that that we have been having with the sec, with the regulators, to make sure we have clean, well lit environments for those companies to come to market. As long as the companies are qualified to list, we will be happy to have them. Emily how long do you think the ipo window is open for business . Does it close after election day . Jeff i just got off multiple calls today talking to companies that are planning to flip their s1 public in november and public and ipo in december. So, we have a lot of valuations in the market. They like the multiples. They want to try to get up before the end of the year. We are talking to Companies Planning a q1 ipo. We dont see signs of things slowing down. Emily all right, jeff thomas, nasdaq senior vice president. Thanks so much for taking the time. Enjoy the rest of your weekend. Coming up, this week, celebrities ditched facebook and instagram for a day to take a stand against hate speech. What next . We will hear from one of the movements organizers, the antidefamation league, next. This is bloomberg. Emily as we have been covering, celebrities joined a protest over facebook over its handling of hate speech. Kim kardashian west, Leonardo Dicaprio and moore froze their instagram accounts for a day as part of their campaign. To talk about the movement and what more social Media Companies can and need to do, we speak to one of the organizers, jonathan greenblatt. Talk to us about how successful this was. It seemed to get less attention then blackout tuesday. What was your take . This action that happened over the last week, the instafreeze, was the Second Initiative for the coalition. Some of the leading civil Rights Groups of the country. What was amazing was the call to action to call out facebooks failure to deal with hate and violence and disinformation on the platform. What we started engaging ordinary citizens what energized and propelled some of the most prominent influencers on the internet. You mentioned kim kardashian, katy perry. Sasha baron cohen played a pivotal role. When you talk about was it successful . Literally, we had exposure and reach to over one billion people. That is something we pulled together in just two days. It was quite remarkable to see people like Robert Downey junior and shawn mendez, ed helms, amy schumer, katy perry, so many more say that enough is enough. We need facebook to do more to deal with the rampant antisemitism, racism and misinformation so prevalent on the platform. Emily on one hand, youve got lego extending its ban on facebook ads. Facebook has said advertisers are coming back after the boycott. Do you think facebook is really getting the point . Jonathan well, thats a great question. As you referenced, to your allusion, yes, when we started this effort over the summer, we pulled together over 1200 of the biggest brands in the world. Disney, cocacola, starbucks, mcdonalds, says facebook needs to stop and finally invest in dealing with these intolerance that is so pervasive across its products. It is true. 70 billion with 8 million customers. They are not susceptible to revenue pressure like many businesses, but civil Rights Groups, Child Advocacy organizations, corporate advertisers, now alist celebrities, ordinary citizens i think more and more, the case is undeniable across all segments of society, people are demanding facebook finally fix their product. Think about this for just a minute. We saw militia groups organizing out of the open on facebook and lead to the death of people in these protests the past summer. Can you think of another company if they had a product that was performing this poorly, that was not just hurting, but killing its users that they wouldnt take it off the shell and fixed it . All were asking for is for facebook to finally behave like every other business and every other industry and fix their problems once and for all. Emily now, facebook and instagram are obviously huge social Media Companies. They are not necessarily the only companies that have a problem with misinformation. There is twitter, tiktok. Rapid misinformation about the fires that burned across the northwest. I noticed a very compelling tiktok video with a firefighter debunking a young girl whos saying these fires are fake. What about the broader problem . Im sure facebook would say it is not just facebook problems. Jonathan that is a great point and it is a fair one. The issue of misinformation on social media is not unique to facebook. At adl, centered and Silicon Valley, we are working with not just facebook, but google and twitter and reddit and tiktok and twitch and youtube, and so many of the flashpoints. Heres what you need to keep in mind, whats really important. Facebook is far and away the largest social Media Service in the world, with more than 3. 2 billion users across their products. Anddl, we track hate harassment not just offline but online. The data tells us that users are more frequently harassed on facebook than any other service. So, we would say to you, i would say to you, facebook has an obligation to be using their capabilities for innovation to try to address this issue once and for all. And for what its worth, weve seen twitter take important steps. Youtube as well, but facebook has to do more to finally stop hate for profit. The founder and former ceo of instagrams reportedly being courted to be the ceo of this new tiktok entity. What did you make of that . Accomplished so much. A critic might say you are sort of recycling the same leadership that has helped create some of these problems. Jonathan tiktok is an interesting case study. It is a complicated situation because of the relationship with e toa and what it means to b have the Foreign Company owning the data of u. S. Citizens. We have worked a lot with instagram. We are very familiar with it. The challenge of how you can find the right management and government structure in an environment where the federal government made strong claims what they would want to cv 70 tiktok. We have found tiktok to be pretty amenable to this. Adl has worked directly with tiktok to deal with white supremacist propaganda on the platform. They have been more responsive than others and that is something i admire. Next for theat is stop hate campaign . What do you want to achieve . What will be a success . Jonathan success would be to stop the spread of stereotypes and slander on social media. To deal with the systemic racism, the abundant antisemitism. Its got to be addressed once and for all. We are working right now and focusing on facebook because of its size and the extent of the problems there. For me and for my other members of the coalition, success would be engaging constructively with facebook and actually making public commitments and progress on the problem. Weve heard from facebook the claim that 89 of the heat content on our platform is neutralized before it shows up. Could you imagine the Ford Motor Company saying that he 9 of our seatbelts work, so we are ok . Could you imagine starbucks saying 89 of our drinks dont poison our customers so we are ok . Success for stop hate for profit is engaging attractively with facebook so they show accountability and transparency that we have not seen to date. What comes next . We will work with corporate advertisers. Emily do you have more boycotts, freezes plant . Jonathan i can tell you this, we are now thinking about the next action. There are other constituencies that want to engage. I think we can move from corporate advertisers to hollywood celebrities. There are more segments of society, we will engage. This was not a oneshot deal. This is just the second salvo in an Ongoing Campaign to push facebook once and for all to stop hate for profit. Emily all right, jonathan greenblatt, ceo of the antidefamation league. Usually important issues that you are fighting. Thank you for taking the time to fighjoin us. Still ahead, the Lasting Impact of the pandemic on Silicon Valley. More with my exclusive conversation with reid hoffman. That is next. This is bloomberg. Emily the Venture Capital firm greylock announced this week it has raised an additional 1 billion to invest in the next generation of startups. They areman told me making the change dramatically amid the pandemic and sometimes finding entrepreneurs hes never met in person but he believes opportunities about. I asked him in an exclusive interview what he thinks will be the most groundbreaking technologies of the future. Fintech are looking at and we are looking at whatever the kinds of things telehealth or education or things now that the market might be opening faster. One of the things that is personal to me is looking at artificial intelligence. How do we help startups . How do we help the Large Companies catalyze the right kind of outcomes . Because ai will transform every industry. It is going to have an impact of a similar thing like electricity. One of the things is Autonomous Vehicles which is a version of ai. What you actually have a ton of his vehicles, isnt that replacing jobs . Some jobs probably will get replaced, but like suburbs, all the construction, all that happened once the invention of the automobile. We can now transform space. What space is being used. Think about how cities get transformed. It is cheaper to live now because i can live one hour and a half out of town, as opposed to exalting myself driving myself in. I could be napping, reading. I could be on the phone. I wrote an essay about this that i posted on linkedin. Drinking and driving will go from dangerous, criminal, maybeent, bad behavior to you have a glass of wine when you are driving home. Emily i am coming back to you on that one in a decade or two. There are so many new Ways Companies can be financed today. How has dealmaking changed from your point of view . Someone doing some of the deals behind the scene in this unprecedented time. Strange, it is new and just like we all are. We have been investing in entrepreneurs we have never met. Where we have never gone to their offices. In greylocks 55 year history, that is a first. It helps when you are well networked and it is easy to reference check. Are these people real . You write them a big check. When you are crosschecking the belief in what their statement of the market looks like, you can call experts and say because the market look that way . We are looking an active. We have been doing a number of early stage investments. One or two growth stage investments. It is working. 2020 is thesly, strangest year in my entire life. It ranges obviously from the tragedies around the pandemic, social injustice, and the climate, and whats going on with the environment, to just in this onei sit chair in the entire world is on the screen . That is pretty odd. There is this joke that goes around. Some people really believe we live in a simulation. Maybe we are. It is a video simulation. Emily we are not living in a simulation as elon musk believes . Reid i dont think we are in a simulation. We dont have a good physical theory of the universe and he describes the universe as a computer, fine. That is two different ways of describing physical theory, but no. Other than i have been rethinking to that theory given so much of the world. Emily speaking of this little screen, work is changing dramatically. You have Companies Like twitter and slack saying you can work from home forever. I just interviewed Reed Hastings who said if he has anything to say about it, people will come back to work as soon as they can because he believes people can be as productive. I wonder if you think this work from home trend will be a net positive for Silicon Valley or if it could backfire . Reid i think it will be a net positive but there will be some challenges. Some organizations will reset. It works well. I think hes fundamentally right. Needs a lot of people who the office in order to work. Creativitylly proven and problemsolving within the work context once you start having a workplace, all the studies show this a real impulse for everyone to be there because who gets promoted tends to be who has facetime, who has permission to do the thing, in the office. The same pressure and trend to get back to that. Emily your job is to try to predict the future. Where are we in a year . Are we talking about these same things . Are we have this in five years . What is your time horizon . Reid i think the economic impacts, the other kinds of impacts will have persistent, multiyear work through periods. I think the question about inventiveness and technology and technology has and applies to , kindnd as it applies to of how we work or what we are doing, i think that continues to accelerate. Entrepreneurs will do that. You will have growth stories. I think we need to think about how do we help bring the goodness of that and Everything Else because i think we will be dealing with it. Butdeeply inside knowledge i listen to a lot of networks. I think theres a high likelihood that q1, q2, we will have a scale vaccine. To begin work us to put the pieces back together. Emily my exclusive conversation with reid hoffman. You can catch the full thing at bloomberg. Com. That does it for this edition of Bloomberg Technology. Stay with bloomberg. Wall street week is next. Later at 7 30 p. M. Eastern time, crisis ial 2020 year of the virtual classroom. We have some rain interviews in this special. Earnie duncan, the former u. S. House secretary. Talking to us about the challenges our students are facing as they learned remotely in the midst of the pandemic and how this could change Public Education as we know it. Later today on bloomberg television. Im emily chang. Have a wonderful weekend, everyone. This is bloomberg. 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. David moving sideways. The fed holds rates near zero. Tech looks for its mojo. And, washington just doesnt know what to do about stimulus. This is bloomberg wall street week. Im david westin. This week, two former treasury secretarys. Larry summers of harvard and hank paulson of the paulson institute. Mr. Paulson this is a very serious challenge. Much more significant than what we faced during the 2008 financial crisis. David former Federal Reserve governor dan tarullo. Sam palmisano who ran ibm. Enterprise Tech Companies
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