Another bipartisan spending bill. The battle to replace Justice Ruth Bader ginsburg will be anything but bipartisan. The president said he will announce his pick on saturday. Joining us to talk about how the markets are digesting this news, bloombergs abigail doolittle. This is not what investors to hear. We got that big 200,000 number in the united states. 200,000 americans have died due to covid19. Talk to us about how investors are handling these continued mixed signals. Abigail that is a tragedy in the u. S. In terms of impact on the market, probably not so much. We are looking at the volatility on the backside of the huge rally in august. August was the best month ever going back to 2014. At this point, the nasdaq 100 where it was at the beginning of august. That slump that never deserved to happen according to some strategists has now been erased. Perhaps we are on a level Playing Field that on the day has taken the nasdaq and s p 500 down. You were mentioning the big drop for apple, down 4. 2 . What is interesting to stress for these individual companies, not much has changed over the last three weeks from the euphoria at the beginning of the month. It points to technical selling. We are seeing a mini version on the week so far. If we look at a threeday chart of apple, yesterday apple was up, on monday was up. Netnet, even with todays decline, apple is up slightly. That is a mini version of what we saw in august. The question is whether the bulls or the bears will prevail. Chris murphy at susquehanna about an hour ago told me he thinks the buy is to the upside, especially for apple based on the underlying signals he looks at. Emily meantime, tesla shares also tumbling, down 10 today, down 5. 5 yesterday on the back of elons tweets before the battery event. It wasnt as explosive as investors were hoping for. Walk us through the reaction in tesla shares. Abigail a very bearish reaction. Down 10 after falling nearly 6 yesterday. 16 in two days, pretty incredible. It wasnt all bad. Upgrade,p 6 on an suggesting more upside could be happening. Western digital up 6. 7 . Liking oracle not so much. There is tesla, the worst of the worst, down 10. 3 . It has to do with the fact that the company is not wowing in terms of its battery date. So much anticipation about what would be announced, a 25,000 electric vehicle is exciting, but not until 2023. Its best year since going public in 2010. This stock is not only priced to perfection, but it is a case of what have you done for me lately . Not satisfying the high valuation. Important to know tesla is hanging onto important support. Lets see if those buyers can get it together tomorrow or next week. There is some reason to think that could happen, at least right now. Emily shares have soared going into this. Abigail doolittle, thanks for bringing that down. Continuing on tesla, setting that lofty goal of making a 25,000 car by 2023. A cheaper car will be possible by innovating electric car batteries and cutting the costs in half. It did lack the sizzle that investors have come to expect from ceo elon musk. Ofare joined by tosha keaney ark investment group. It seemed tesla came on quite unprepared. Perspective, tesla announced they are going to reduce battery caused by over 50 , increase range by 50 and reduce the investment cost on battery factories by 70 these are incredible numbers. To hear something is three years out, as a longterm shareholder is changing the way electric vehicle industry works. For any traditional automaker to catch up to tesla now impossible. A 25,000 car that will have an even greater range than previous models, 400 miles lets say, will you do if you are a traditional oem and are struggling to get your electric Vehicle Program together . Maybe you are spending money on Technology Like fuel cells. It will be hard to catch up to the at this point them at this point. Emily that said, shares down almost 16 over the last couple days. Other investors may disagree with you. What are they not getting, in your view . the stock had a good run this year, so this could be pulled back. There might have been an expectation for a shorterterm event. Disruptivee tesla, innovation, that is for longterm shareholders. If you focus on the shortterm, you will miss out on the point at which an electric vehicle reaches price parity with a gas powered car. That will rage a dramatic Inflection Point in demand in the next two to three years. Again, you want to catch that exponential growth and you have to look to the longterm to do that. Emily lets talk about china. Shanghai factory would be making one million cars a car. That is another ambitious proclamation, given they just got to one million cars cumulative. What do you make of yet another ambitious stretch goal . Tasha we have already seen tesla pull off the impossible in china. Factories up and running in less than a year. They are frankly getting more support from the government than we would have initially expected when they decided to move into that market. I do think it has been a Success Story so far. I think Government Support is crucial. The Chinese Government knows they want evs to happen and they want to let the Technology Leader in. We have already seen them get subsidies and support there. I am not too surprised to hear that target. La is announcing now although these changes will happen over the next few years, if they have a path to reducing the investment cost by 70 , and then the factories are producing a lot more than they were in the past. One night elon said factory is producing what you would expect five to 10 to produce. It is not too difficult, knowing that background, that they would expect to have a relatively aggressive goal. I would say broadly, something i think investors are missing in tesla is the autonomous opportunity. It was mentioned a few times on the call last night. China is one of the largest markets for economist driving. Orthink that is f autonomous driving. I think it is crucial tesla has the stronghold there. Emily they said they would have a full selfdriving beta product out soon. Tesla is one of your firms biggest holdings. What do you think the Biggest Challenges are in terms of meeting your expectations . What are you going to be watching . What could the catch be . Tasha i certainly think this goal so yes, tesla is our top proposition. The goal of reaching fully autonomous driving, completing that is still really aggressive because no one has ever done that yet. Right now something hard to imagine happening we have not seen it yet. Waymo, googles project, has gotten close, but they had issues commercializing and scaling. That is not to be overlooked. We are talking about stretch goals for tesla. They are pulling off something incredibly difficult. When we look at our valuations for tesla, we only assign a 30 probability to that happening. It is such a large opportunity that it is worth looking at and putting the numbers to. On the flipside, lets say autonomous driving doesnt happen. Our most recent work is looking at what would happen if tesla were to launch a ridehailing network to set up the network for robo taxis anyway. It could be profitable for them to do so because they have lower operating costs than uber and lyft. They can basically take a higher cut of the gross revenues than competitors and potentially pay the drivers better. We think this could be much higher margins than the core ev business. Emily the Company Looks to help from a federal judge. Is it the companys hail mary . We will talk about the latest next. This is bloomberg. Emily tiktoks Parent Company bytedance asked a u. S. Court to temporarily block the ban imposed by President Trump. The companys deadline to sell its u. S. Operations or risk being banned looming in the united states. For the latest, bloombergs Foreign Policy reporter on the phone. Give us the latest. Youve got not just tiktok trying to get the courts to do something, but chinese staterun media calling President Trumps tactics dirty and underhanded. Where are we . Over the weekend, there was essentially a real feeling that the tiktok deal, where oracle and walmart were going to take a 20 stake and there was going to be protection of data in the u. S. , all that was waiting was the president needed to give his approval. He said he had given his blessing on saturday and the assumption was this was essentially a done deal. In the time since, you had two big things happening. Media asinese state you mentioned calling into question the deal, suggesting this is not a deal that china ought to make. Chinese media being state media dont do that without official sentient from the government. You have these emerging factions within the u. S. Government. Bloomberg is reporting today that bill barr the attorney general has some continuing National Security concerns. What on saturday seemed like a done deal is seeming a little less so. Emily right, and the Chinese Government, or at least staterun media making increasingly hostile statements. Does that signify china is souring on this and wont approve any kind of sale . Question is a was been how much of this is National Security and how much is politics . When you hear references to things like dirty tactics, it is a sign that there is a sense the president has overstepped his bounds, and regardless of the National Security applications of this, there is a political element too where the Chinese Government has to decide, okay, too want to do something President Trump will be able to portray as capitulation . He said tiktok poses a threat, demanding something be done. We have now arranged for this to be done, for oracle to take a big stake in the company, so what the president says goes. That requires chinese acquiescence. They are in the process it is difficult to get the full scoop directly from the Chinese Government in the process of saying whether that is a political calculation they want to make. Emily what is next . The deadline of september 20 has come and gone. What is the next step . Nick as part of a series of executive orders last week, essentially the u. S. Said if this doesnt happen with tiktok, we will ban it from the app store. We will still be able to have it on your phone, but you wont be able to get updates. It was believed when the president gave his blessing on saturday, that that deadline which comes due this weekend was no longer relevant, tiktok had nothing to worry about. Uncertain,is deal you are seeing tiktok growing increasingly concerned that regardless of whether a deal is in the works, they still may get that ban. That is why you are seeing a request for injunction where tiktok is asking a judge to essentially stay that order so it can continue to be downloaded in app stores. Fory thank you so much giving us that update. Ceotime, ciscos chair and told bloomberg at the bloomberg equality summit that the company will increase the number of black employees and leaders, adding its name to a list of Technology Companies promising to fix the lack of diversity in their ranks. The things that have occurred a 2020 that led to such list of actions and this focus on social justice i think have given us more energy. It is unfortunate, but it has given us more energy to make progress. We are having a broader discussion with our employee base. We have a long way to go. Facebook squashing its second Misinformation Campaign in a month related to the upcoming president ial election. This one was also aimed at distributing chinese propaganda across both Southeast Asia and the united states. More on the chinese operation next. This is bloomberg. Emily Facebook Says it detected and removed a small Scale Network of fake accounts aimed at stripping chinese propaganda across Southeast Asia and the united states. The accounts also pushed messages for and against President Trump, his opponent joe biden and former democratic president ial candidate pete buttigieg. For more lets bring in bloomberg techs sarah frier. Talk to us about this Chinese Foreign interference operation. How big a deal is this . Sarah it is another example about the a lot of interest there is in the upcoming president ial election, including by foreign governments. This is nothing on the scale of what russia did in 2016. Only a few hundred thousand people saw these posts. However, it does indicate facebook is going to have to top playing whackamole prevent these from becoming an issue for the election. It has to constantly be vigilant. Emily what do we know about the scale of foreign interference versus domestic interference . Sarah it is safety site the foreign interference problem is one facebook has clearly defined and knows where they are going to halt. They are especially concerned with content from people who are pretending to be somebody else. Andle posing as americans they are not americans, or doing the same in other countries. However, the people using their Real Identities to mess with the election and are spreading conspiracy theories domestically are a factor that facebook is not quite figured out how to deal with and have very vague policies on. You have seen that in the way they handle misinformation, including from the president , that they have been tempted to remove voter misinformation. Instead they are putting a label theirto give resources in election information hub. A lot of people have said this does not go far enough to protect us from the confusion that they expect after and during the election. Inly meantime, angie stone Facebook Communications tweeting facebook will be rejecting political ads that claim victory before the results of the election have been declared. Facebook said they will not take new political advertising a week ahead of the election. What do you make of this . Sarah the big question is, declared by who . Once all the votes are tabulated, that could take a long time. It is going to be difficult for facebook to sort out this information. Is anappens if there opinion . It is not something declaring victory, but somebody saying im sure we won. There are so many ways this could be vaguely interpreted. There is a lot of wiggle room there, so i hope there is more clarity to come from facebook about how they are going to protect us from the information on their platform. Emily must quick question last quick question, a piece came out today about leaks from facebook employees about internal meetings. A number of plies have spoken to you of employees have spoken to you about similar information. This seems to be an ongoing trend. I wonder if it is a sign these external issues are having a negative impact on facebook culture. We have about 30 seconds. Sarah there absolutely is a lot of tension internally in facebook right now. The company has been trying to reduce the amount of vitriol in the network. The same people who believe so much in the open speech of social media and the posting are doing internally and their workforce. It is so different from where we were. Emily sarah frier of Bloomberg Technology. An issue we will continue to follow. More of Bloomberg Technology after this. Talking peloton. 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 up to 400 a year on your wireless bill. With the carrier rated 1 in customer satisfaction. Call, click, or visit your local xfinity store today. Emily welcome back to Bloomberg Technology. I am emily chang. It rising gillette occult geopolitical tensions between the u. S. And china have led to rocky crossborder deals. We spoke with the head of americas banking at Mizuho Securities at how investors are approaching deal flows and m a in the tech sector. More proactive intervention or scrutiny, i should say, knowing the rationale is National Security or critical infrastructure. The person sitting in the white house clearly has a prerogative and ability to do that. I do think that is clearly a factor when companies are making a determination who a potential acquirer could be. That crates uncertainty creates uncertainty. I want to draw on your experience as a longtime Technology Banker because there is so much scrutiny from washington when it comes to these tech firms. What concerns you most about how it might Impact Investor flows or m a . All ofink the answer is the above. I dont think in terms of investor flows. I go back to a fundamental belief in the Market Opportunities and the players positioning and ability to capture that opportunity, and investors look at that as well as the operating profile as to whether to get into a particular stock. I am clearly not providing advice on that, but when it comes to m a or investment, youve got to go back to the fundamentals. Intervention can make sense to the extent you are protecting protectingghts, competition. However, you have to balance it with making sure companies can be agile and pursue new opportunities. At the end of the day, it is a game of balance. Will some of this scrutiny stop some of these Technology Firms by getting bigger from getting bigger in m a . I think it is very company specific, and i think it is sector specific. Because of the concept being competitive depends on the size of the market opportunity, the level Playing Field, so its hard to use a broa