Day after he is discharged from the hospital. Ath the election less than month away, wildfires continue andavage the west coast, office work in question. What is happening with the Real Estate Market . U. S. Stocks tumbling after President Trump said he is ending stimulus talks until after the election. This was hours after fed chair jay powell renewed his warning that the economy will stumble without additional stimulus fiscal report. The backt falling on of this report. Abigail once again, a topsyturvy day. Trump tweetingt around 2 50 p. M. , it was a jittery day. A piece of that was big tech. Ahead of President Trump tweeting, we had the s p 500 up 0. 6 . So, investors working past those jitters. President trump coming out and saying he wants to and stimulus talks. Intraday move, perish to the downside. S p 500 to finish down 1. 4 , and if you include the total move, down 2 . If they really thought this was the end to the negotiations, you might have seen more of a selloff. This could suggest more uncertainty. Down sharply. For confirmed by the fact that the vix is spiking. There is that volatility really in play. We have a privy haven bid. A haven bid. Starting truly risk off. At the end of the day, after the close, a house panel potentially wanting to break up some of the big tech companies. The big laggards on the day. Alphabet, facebook with that report, saying companies that were once scrappy startups are. Ow monopolies the storyline free couple of years. It seems that maybe we have gone from a shot across the bow. Still not a 2020 event based on the action we are seeing. Emily all right, abigail doolittle, thank you for walking us through that. Lots to get through. A house panel proposed a sweeping series of antitrust reforms to curb the power of apple,including amazon, google, and facebook. This is a result of a yearlong investigation that found the companies are abusing their dominance. Page, this is a 449 report. The most dramatic proposal to overhaul competition law in decades. What are the most dramatic recommendations that you are pulling out . That so far, we have seen the companies could be restricted from owning different business lines or have different organizational structures imposed on them. That would be a tremendous change to how these companies operate. We have heard calls to break them up. Is something they are very serious about. It is going to have to be approved, of course, by congress. This is a Huge Investment by the government in raining and the power of these companies. Emily absolutely. This house panel is led by democrats. It will be an uphill battle to get republicans to buy into that. The report does not hold back. A quote from the report, companies that were once scrappy underdog startups have become the kinds of monopolies we last saw in the era of oil barons and railroad tycoons. They have too much power and that power must be reined in. Our economy and democracy are at stake. The big question, is this going to lead to a breakup of big tech . Also thethink that is worst fear from the companies. We have seen facebook come out and say that breaking them up would be near impossible. The biggest argument in favor of breaking up is they really feel that equality that consumers are getting from these products has been degraded because of their power. In many cases, these are free product. Existing antitrust laws does not necessarily apply. That is why it is necessary to think about costs to consumers in a different way. Emily amazon out with a statement in reaction, saying fringe notions on antitrust would destroy Small Businesses and hurt consumers. Stores raising prices. You might want to challenge the word fringe, given that this is the result of a yearlong investigation by a House Committee that is comprised of both republicans and democrats. We have also heard from facebook that abe that a breakup of facebook is a nonstarter. What kind of response are you expecting from the companies, especially facebook . Sarah first of all, that is a classic line. You get this from facebook, amazon, apple, google. They always bring it back to the Small Businesses. Because these are platform companies, businesses are being built on top of them. Influencer, a developer using apples app store. I would be skeptical of that argument. These companies do have so much power over the economy. I think in the case of facebook, i was really interested in some of the reports of facebooks arguments. Facebook has said openly that they feel that instagram for instance would never be able to grow to the size and power it has today without facebooks investment. And instagram did have the resources to grow independently without facebook. They did not necessarily need facebook in order to survive. They are also saying that the company is competing more internally with instagram and whatsapp, which they own, than they are with twitter and snapchat. Ofy use that as an indicator the monopoly status. Emily meantime, facebook and twitter today have been embroiled in another controversy. Another controversial tweet by the president. This time, facebook deleted the tweet. The president claiming that covid is less lethal than the seasonal flu. He has been on quite a roll, tweeting a lot in the past 24 hours of eight questions about his mental state. What is your reaction to the way the company has handled this. Behaviore president s any different than normal . Sarah the fact that we are talking about it at all shows how new this experience is. This is the kind of thing that twitter and facebook has said they dont want. Isre you draw that line really difficult. Yesterday, the trump tweet said that he thought you should not be afraid of covid. That was considered to be safe enough. But this message was considered dangerous, comparing into the flu. I think that the closer the president gets to a fact versus opinion, the easier it is for the network to justify taking some action on that information. But it is not consistent. Emily we will stay tuned for more posts by the president. Sarah frier, thank you so much for your analysis. Employees with tech fleeing Silicon Valley, wildfires battering the west coast, and an election that could throw us into further chaos, where does that leave the Housing Market . Redfin, whoe ceo of also has some thoughts on big tech antitrust scrutiny. This is bloomberg. Panel has finally released the results of its yearlong investigation into big tech, proposing the most sweeping reforms to big tech law in history. This is a 449 page report. It calls facebook, amazon, and apple anomalies. It says google has neutralized search rivals. Join us now, the ceo of redfin, who depends on these companies for advertising and traffic. I have to ask for your reactions here. The house calling three out of four of these companies and monopoly and recommending laws that could lead to the breakup of these companies. Regardless of whether these laws come to pass, although the tech giants will take note. That is good news for every company our size. We worry all the time about getting pushed down in google results. I think these companies will think twice about taking any kind of action that balances the market in their favor. How much do you depend on google and apple for customers . Glenn google, a lot. We get about half our customers from google. Apple, less so. Google is the most important partner that we have. They speaking from perspective of a developer, i use the redfin app probably more than i should. But what is your perspective . We have heard a lot of developers say, this is not fair, they are charging us way too much. Others say that is just the cost of doing business. They should be able to charge rent for the service they provide. Glenn we are not paying anything for apples app store placement. We do not charge you to use the redfin app. We cant complain, it is an amazing platform. If you are trying to monetize that traffic directly through the store, and having to convince that apple takes a piece of, that is a totally different story. As for google, we pay google to appear and we also appear for free. We just want to make sure that there is competition. If there were only one search provider and there were more advertise placements at the top of every search result, it would just make it harder and harder, especially for a new company to beat our. We want a place where the Largest Company wins. I think it is important to keep it that way. You want to make this about technology and consumers. Emily speaking from the perspective of an entrepreneur, do you think these companies are stifling innovation . Is it possible for the next redfin to stand a chance given that these companies only marketplace but also compete on the marketplace . I dont think you can blame apple and google. It used to be that a billiondollar company competing against a 5 Million Company did not have a huge advantage. But, now, if you have been to googles index for a long time, if you have a huge marketing budget, the chances that an upstart will take you on are much lower. I love the wild days of the even 2005n 1999 and when anyone who built a better site could get more traffic. I think that is slowly decaying over time. It is just a nature of industries as they mature. Emily we talk about real estate in a second but i have one more question. Do you think these companies should be broken up . Aenn first of all, i am not legislator, so who is it for me to say . I am also not the ceo of any of those companies. I try not to comment on businesses outside of our own. I thicket is important for these businesses to accept boundaries. Untrammeled Corporate Power is a threat to social wellbeing. I think there are limits short of a breakup that can be effective and you used talks of a breakup to put limits on what other types of companies you can buy, what kind of products you can put on your own site. I think without that kind of hammer, the smaller regulatory efforts will be less effective. Microsoft shows us that just that conversation can be so deadly to the buccaneering culture of amazon, facebook, and google. They have to spend more time thinking about their info on society and maybe that is good . Emily appreciate you being game to take a swing at that. Lets talk about real estate. We have been debating the future of the market given all the uncertainty in the world. I have heard it is the end of cities. I have heard the end of the city is a myth. What are you seeing in the Real Estate Market and where are we going . Glenn i just think it is a rebalancing. Cities are taking a step, rural areas are taking a step forward. You cant have this huge concentration of wealth go on forever. At some point, we have to share the love. The fact that rich people are moving to wyoming, texas, and everywhere in between is good news for us politically and economically. It means everything good about Silicon Valley will happen out will happen elsewhere. But it also means that anyone helping them move from there to here is in a very good position. I just think america is going through a significant shift. It does not mean new york or San Francisco are dead. Those are still some of the greatest cities in the world and someone will want to live there sooner or later. Emily we have a huge election in less than a month. We have seen play of surprises in the last couple of weeks. I am sure there will be more. Do you think there is some certainty ahead about which way the market will go . Or could the election throw us into more turmoil . Glenn i think there is a significant chance that the election will throw us into more turmoil. Nobody wants to bet on november and december. We should also take into we count take into account how the economy is affecting the election. The amount of people who have moved accounts for about half of the lead biden has an arizona. The same is happening from california to texas. The reason that state is going purple is in part because people have changed their address. The economy is changing society. Society is going to change the economy. Emily that said, you have so many people really suffering right now. Unequal this an recession because some are feeling this worse than others. Thousand market for white americans is different than it is for black americans. What are the trends you are seeing . Glenn i think with this particular recession, we finally see the American Economy split in two. One part of the economy is hurting. The retail segment, service segment, is in dire shape. It is a bonanza for the upper class. Very cheap credit below housing prices in much of america. Those folks are going hogwild. That haso sits across to feel uncomfortable about it. We want to see the whole economy do well, not just the economy for one half of america. Ofly glenn kelman, ceo redfin. Thank you so much for joining us today. Technuing now on that big antitrust report, from the house antitrust subcommittee. Apple dominating the news. We mentioned that apple has a monopoly over app developers. This also happens to be the day that apple said it will hold an Event Next Week to unveil something, we believe the new 5g iphone. Mark gurman, lets start on the antitrust report. Obviously, the findings are dramatic. You have democrats having to convince republican lawmakers to get them on their side. The what is your take on house recommendations here . Mark these were all expected recommendations. Talking specifically about the idea of not competing with apps on the app store for different categories that apple has an app in. Saying that the app store cut of 30 is very high. Examples of apple rejecting applications only to sort of copy that feature into its own app. The committee went as far as quoting steve jobs several years ago saying that we have always been shameless about stealing great ideas. Very much sharp rhetoric against apple here in the report. There is not much in here that four. E not none of the recommendations really go right at apple. They are across google, apple, amazon, and facebook. I think it will take quite a bit of time, and i think you will someech companies change of their practices. Emily we have not heard yet from apple on this but i am expecting and awaiting a statement. Lets talk about the Event Next Week. The invitation went out this morning. You have reported that it would be delayed until october. What do you expect will be unveiled next week . Should workk apple on their taglines for the invite, but that is implying that 5g will be the star of the show. The interesting thing is that this will be the thing they are marketing the iphone on. At the end of the day, 5g patrician across the u. S. Is extremely limited. You will see a lot of people by these iphones, they will turn it on, and they will start complaining about how 5g does not work in their area. Emily lets talk about the 5g part of this. How significant is that . Mark 5g speeds are incredibly fast. To 10an be up to five times faster than your home wifi network. People believe it will enable augmented reality. But it will be a while until we see the full effect of 5g. All right, bloombergs mark gurman. Thank you so much for your reporting. Again, we will be following that event coming up next week, october 13. And i just want to reiterate the headlines coming out of that house report. Report recommending the most dramatic proposal to overall competition law in decades. They have been investigating tech now free full year, calling apple, amazon, and facebook monopolies, saying that google has neutralized search rivals. We will continue to bring you the headlines from this report. A big drop today from the house antitrust subcommittee. Coming up, more from Bloomberg Technology after this break. Labor we learn the u. S. Department has learned if microsofts pledge to promote more black managers and executives violates labor laws. Microsoft says its efforts are legal. Argus has covered microsoft for decades. Is the Labor Department calling this reverse discrimination . Our guest has covered microsoft for decades. They are not using that term, but thats basically what it amounts to. People at microsoft told us that last week, they got a letter from the Labor DepartmentOffice FederalCompliance Program asking about a Program Microsoft announced in june that pledged to double the amounts of the amount of executives and managers who are black or africanamerican in the next five years, and the question was microsoft said in a blog post implyt appeared to positions would be given on the basis of race. Microsoft says they are certain there program meets federal law and is both fair and legal. Emily microsofts pledge was quite dramatic, but we heard from a number of Different Companies pledges to increase the black representation, especially in leadership ranks. Im not sure if the wording was exactly in line with microsofts, but this could have reverberations for companies and trycies that have vowed to to do the right thing to improve racial diversity. We are trying to figure out if other companies have received the same letter. A crosssection of companies who have made diversity pledges to increase representation and who. Re also Government ContractorsCompanies Like boeing and google have programs similar in some ways to the microsoft one. Google says they want to have 30 more leaders from underrepresented groups by 2025. Boeing says it is targeting increasing representation rates. Microsoft does not stand alone among companies that have increased diversity programs and or large Government Contractors. The initial thing is that this is an office that has historically gone in the opposite direction. It has historically been involved in making sure that u. S. Government contractors do take action to promote diversity , and this does seem to be a bit of a reversal on that. Emily im curious to hear your perspective on these house recommendations, recommending a dramatic overhaul to competition law, specifically with regards to apple, facebook, amazon, and google. You have obviously covered microsoft at long time. Microsoft has come out and said, for example, it thinks some of apples practices are unfair. What does this scrutiny on rival mean for microsoft . For now,