Crucial moment in American History . We will ask a facebook early investor, as we kick off our electioneering series, where Technology Makes democracy. Preipof airbnb has plans to benefit investors. What could be the largest listing in the u. S. Of the year. I want to get you todays selloff. The vix index up a whopping 18 . Abigail doolittle in new york. Sentiment seems to be souring as we get closer to the election and cases pick up. What was driving the volatility today . Abigail many factors at work today, and you are right, there was a lot of volatility. The complacency that we felt like we had four, lets call it a few weeks, although it has been broken with the vix daca above 30. One of the drivers in the european session, the s p, a german enterprise suffer company down not just for the rest of these are but the first half of 2021, saying it will eat into their demands, that calls into question the overall i. T. Are we going to go into a period with the competitors to sap, and oracle, those stocks were down. S ps clout asaps cloudbased business was hit harder than its competitors, saying that these committees are doing a little bit better than sap. That way heavily on tech. Are we going to see some sort of slow down for i. T. Spending because of the pandemic . We have not seen any real sign of this, but is this the shot across the bow . The tech sector is down 2 . Stocks are down 2 . Of course we did have china launching new sanctions on the u. S. Defense contractors, perhaps suggesting there was some real ignition of the trade wars. The chips usually get hit a little bit more. Nasdaq 100 down sharply, and intel, they may call into question the ip, at least with the bigger, older Tech Companies. Once again, it down, and intel really dragging on chips. Lots of bearish action on the day, for sure. You bring in the virus, s ps comments folding writing, the idea that it is weak seller rating re accelerating. Emily this at the start of what is going to be a big tech earnings eight. Microsoft tomorrow, amazon, apple, twitter, alphabet all this week. What will you be watching . Abigail what is nice about the reports come in is is is a check against the s p. Other companies were just not seeing it anywhere. We will have a good check on that relative something i will be watching, are we going to have more volatility with the volatility indexes rising and then with apple and amazon. These companies are up ever so slightly on the day. Those were the two Big Tech Companies down last week. The Tech Companies that were up, alphabet and facebook, giving back those gains on the day. That has more to do with the gains that those stocks had last week. The ceos will be going before congress this week and then the earnings report. Lots of different pressures. The main questions for these with their congressional hearings, another shot across the bow that keeps happening with the possibility of regulation. Can these companies that are performed so well for the pandemic, can they continue that and will the outlook suggest the same . They say it will be a big day on friday. Emily absolutely, and of course, we have Mark Zuckerberg, jack dorsey testifying on wednesday. Huge week for big tech. Abigail, thanks so much for giving us that look ahead. I want to talk a little bit more about the broader market, the selloffs, closer look at the tech sector in particular. Ceo. E joined by a cannot we to hear your thoughts on this. Is the markets picking up to the bad news or seeing more bad news ahead . I think the answer is yes to that. Quite honestly, if you think about a president ial election in the middle of a pandemic, with markets that have been basically march,g steadily since nasdaq up27 or so youre today, i would feel more concerned if the markets were just rallying aggressively into the election and through the earnings season. I think this type of price action, choppy sideways price action would be to find the markets of the last two weeks, something to be expected. Big cap tech earnings of this weekend election around the corner a week from tomorrow, i think some of those uncertainty factors in outoftheway will help risk assets. In my view they are probably skewed tears and death two years and. I think they cap tech is going to be i think it depends on the political outcome, but i think in many scenarios big cap tech will blaze the path to work from any minute they dont lead the path forward because we get a big rotation into value and cyclicals, big cap tech will put in an impressive performance, assuming there is nothing really ugly this week, as abigail was just discussing with the s p and so forth. Emily lets talk about the political outcomes. It is go time, 8 days ago, and the beginnings of 8 days of high anxiety from a lot of people. If biden wins, what is the outlook for big tech in your view . If trump stays in office, what is the outlook . Michael part of it has to do with the senate, whether it stays in republican hands or goes to a full dem suite. My notion here and probably oversimplifying a lot of complex issues, but i think that be funny to of the day, going from what i would call at the end of the day going from one article angry senator and angry president to real policy that will disrupt the Business Model of the cap tech is much easier said than done. , techk a lot of scenarios is really going to kind of keep leading the way forward to even if there is an ugly and contested election that drags on for several weeks. I think the Business Models in bigcap tech will keep working and investors are going to keep gravitating towards them. There is not a side issue about whether we get a Capital Gains of a dem sweepe and whether that will hit the amazons and microsofts, which have been the big winners, whether that creates more volatility. I can understand that, and i think that is a little bit of a secondary i think there is a lot of institutions that will be looking to buy those gifts in two years and. I am less concerned about that. The bigger issue i have is more of a relative performance. Sweep the willm be a lot of capital flowing into cyclical for some period of time, and that may on a relative basis make the bigcap tech look less appealing. I dont think that is a headwind. I dont think that means there is a permanent loss of investor appetite for those bigcap tech names. Emily ok, so lets take the politics out of this. Forecast. Sap we know the pandemic isnt going anywhere. Knows what is going to happen on november 3, but the pandemic is here for the foreseeable future. What does that mean for tech spending . S. A. P. Newsl, the is not good. A pandemic is really with a couple of specific Business Models accepted not good for anyones earnings streams. Curvescourse the covid have been resilient and pushing higher, all of which is deflationary. Deaf but i think there is another dimension to this story, which is that covid is really kind of polarizing the economy more and more, and it is polarizing it in favor of digital spending. Obviously, there is a lot of nuances within tech, that happens there. But i think broadly speaking, more covid you get, the more entry market polarization you are going to get come which basically is going to favor continued to stretch that volumetric even further into next year. So much of this will come back to the political discussion in the Spending Plans we will understand after next tuesday. Emily 8 anxious days between now and then. Michael perves, good to have you with us. Thank for sharing your outlook. Coming up, airbnb has two months left. It still plans to go public this year. What the company is doing for a muchanticipated ipo. Details next. This is bloomberg. Emily bloomberg has learned that airbnb is splitting privately held chairs ahead of an ipo plan later this year. The value is more than 10 according to an email revealed by bloomberg news. Away. Po could be weeks we know they are trying to get it done before the end of the year. What does the share split actually mean . Good to be with you, emily. We received an email from our sources saying airbnb is planning to do a stock split, a 21 split. It cut the share price in half. Although it does not affect the value of the overall company, in theory makes it easier to afford each share. A lot of people just say this is psychological or marketing then. Ipostock split ahead of the it is sort of an interesting move. It is not so common with private companies preipo. Facebook did a little bit before its ipo, but not something we hear about all the time. Emily what do we know about valuation right now . We know it plummeted from prepandemic basil to airbnb recovered from earlier this year. It had just come down to the ipo date itself. Then . Peculation till katie there is a little bit of speculation, all the documents we receive say valuation is up 10 from where it was in the last period. They did these valuations every three months. This is separate from airbnbs overall valuation. This is common stock. It shows that the airbnb and people who are evaluating airbnb believe it is improving from where it was in the depths of covid when it was struggling in the Second Quarter of this year. Emily what do we know about how the business is doing lately . Katie the ceo of airbnb has been public about how they have rebounded from the difficult period they were in a few months ago. He had gotten a hold of the financials a few months back and the revenues have fallen 67 for the quarter. What he is saying is they have seen a lot of people renting airbnb s again, quarantine houses and local travel. The business has rebounded much faster than expected. It is what we why the evaluation is going back up. Valuation earlier this year when they took on debt was 18 billion, down significant a from 31 billion, where they were valued at a few years ago. People close to airbnb say they hope to the value close to 30 billion when they go public in december, that is speculation at this point in time. Roof, thank you for your reporting. Were following every step of the way through the impending financial ipo. Coming up, a likely first. A recent promotion in Silicon Valley and why it is setting new president for venture capital. This is bloomberg. Emily markets taking a hit today, with tech being a pullback. With increasing volatility amid rising cases of covid19 and uncertainty of what new regulations election could bring. Im joined by the comanaging partner at upfront ventures, an l. A. Based enter capital firm. Congratulations, and thank you for joining us today. We have a big election coming up. How does what happened in the election impact your outlook on tech and the tech economy regardless of who wins . Whoirst of all, if i knew was going to win the election, i onld be have a career sundays so i dont any of us really know. Theres a ton of volatility in general. Tech in general has been quite strong and stronger from covid, which is quite a surprise for us. But i think that the big things that have come up in this election, you probably know what i stand, lets invest in jewels so that many voices can be heard online in tools so many voices can be heard online, how we think about communities and get underrepresented voices more representation and generally how we feel safe and secure in voting and living our lives coming to the forefront. These are important issues for tech to solve and play a role in as well. If there is a winner out of this election, aside from democracy, which is the most important, it is all the tech trends around this election that people hopefully care about and build companies around these are areas where i spent time. Lets hope we are on the other side of this and we can all get and to really tech news supporting our fellow human beings in this role in a way that makes us feel good about ourselves. Emily you are actually wearing pin today. Ted i want to ask you about the integrity of the election. We have Mark Zuckerberg, jack dorsey, Sundar Pichai appearing before congress this week to testify about these very issues. What needs to be done to ensure we have better moderation, as you say, better integrity in the process . Do you think we need regulation . Kara listen, there is always going to be a balance between regulation and competition. I come from a liberal heritage of people who are probably on the side of more regulation, but i am someone who believes deeply in the market and capitalism and cover edition. I think that tension is important. You need to think about competing on a global scale. We need to think about the way our technologies are represented in the world. I think the biggest thing there are easy things around this. Mores more people, different kinds of people Building Technology will get us different outcomes. This goes to your book, emily, which had a big impact on me. If all men are Building Tech tools, we are wiring ai algorithms, we are less likely to wind up in a world that doesnt find balance between these things. Getting more women and people of color in coding and executive positions and having a guy like publicly, these are things that will lead to ahaving a dialogue publicly come these are things that will lead to a Better Future for all of us. The quickest way to fix all of this is to get different kinds of people into positions of ourpositions of power asking questions and building competing products. Is a big part of what motivates me every day. Emily 100 , you are preaching to the wife. Weaponname preaching to the choir. You have been named comanaging partner of upfront ventures. Given the election and the pandemic and so many of us working from home, where do you want to place your bets . What do you want to double down on intact . In tech . Kara coming out of this time, in the beginning of the covid era we were worried everything would go in a difficult election for everyone. Been an incredibly hard time commodities lee, broadly incredibly hard time, obviously, broadly. But we have surprised by the groom across cybersecurity boom across cybersecurity, automation. We are fortunate to be invested in a number of these companies that are growing rapidly, over 100 yearoveryear. Goat is a 1. 7 billion company. People can go to foot locker cant go to foot locker and buy shoes anymore. Where and how we purchased things has changed dramatically. On the opposite end of the spectrum you had areas like cybersecurity, where i spent a majority of my time these days, with Great Companies out of california, symantec and the like. The area has been a boon beforehand, but now with the conversation around Election Hacking and people working from home and realizing that vpns from 20 years ago are not working the same way they need to today, there is an acceleration of what was already happening by five or 10 years. Emily so when it comes to cyber, are you confident in the integrity of the election that is going to happen in 8 days . Kara i am personally. I believe in the system. That incredible groups are going to great length to do this. Putin came out and said something positive about the election today. If there is one really positive thing that has happened in the last few weeks, it is a reiteration on the part of certain candidates the system will work of people were. Million ballots in a difficult time to vote at this point, we can all feel good about it. Listen, there are chileans of dollars of cybercrime out there. A couple hundred billion dollars industry. It is also a place where the best innovators in the world from all backgrounds need to be talking about and investing in it. Emily all right, thank you for talking about it with us here today. Comanaging partner of upfront ventures, thank you so much for joining us. Coming up, while the covid prices disruptcrisis disrupts supply chains for traditional isd, impossible foods seizing the moment to expand globally, as customers fill based cards with plant alternatives. We will hear from the cfo next. This is bloomberg. [ sigh ] not gonna happen. Thats it. Im calling kohler about their walkin bath. My name is ken. How may i help you . Hi, im calling about kohlers walkin bath. Excellent happy to help. Huh . Hold one moment please. [ finger snaps ] hmm. The kohler walkin bath features an extrawide opening and a low stepin at three inches, which is 25 to 60 lower than some leading competitors. The bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. Kohler is an expert in bathing, so you can count on a deep soaking experience. Are you seeing this . The kohler walkin bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. Everything is installed in as little as a day by a kohlercertified installer. And its made by kohler americas leading plumbing brand. We need this bath. Yes. Yes you do. A kohler walkin bath provides independence with peace of mind. Ask about saving up to 1,500 on your installation. Virtual appointments now available. Emily welcome back to bloomberg technology. Foods is doubling the size of its r d team, seeking the worlds best scientists to help eliminate Animal Agriculture and its impact on climate. David lee spoke to Caroline Hyde and Romaine Bostick earlier about its expansion amid the pandemic. David i can share that we certainly have adjusted in this current crazy environment. We have met with people wanting to buy meat whether that is in the Grocery Store or direct to consumer. Our grocery business has grown 100x since january. 150 grocery locations to now 15,000 globally. Just this week, just today actually, we announced 600 great roastery locations in canada along with 200 in singapore and hong kong. Its because that is where the meat eater goes. 90 of the customers of impossible foods are selfavowed mediators. Meat eaters. Has grown to where the meat eater goes. Romaine this idea of coming up with new and creative ways to feed the appetite out there for meat alternatives, there is a cost associated with that. I remember early in the process, impossible foods jump on the radar of a lot of folks, there was a lot of talk about the cost to produce those original burgers you guys were doing. How much of that factors into the longterm strategy for the company in dealing with those costs and making sure what you put out at the end of the day is not only affordable to people like me, but also profitable to the company . David it is very important we not just deliver a great tasting burger or a great tasting piece of meat made by plants, it