Plus, relocation, relocation, relocation. Read it has a plan to let its employees work from wherever they are. But what are the consequences of such an arrangement question we ask the ceo, steve huffman. The u. S. Has identified in iran and russia for meddling in the election. We talk about how pervasive the menace is and is potential harmful effect on democracy in our continuing to electioneering series. First, it was an ugly day for u. S. Markets. Tumbling in the worst stock rout in months. Rising cases of covid19 in the u. S. And europe and locked on measures in countries like germany and france accelerating the drop. We get the big picture from Abigail Doolittle in new york. A lot of forces at play today. It. Us through abigail over all a brutal day for stocks and risk assets on a combined basis. You mentioned the different forces. Of course there is uncertainty around the election, but i would argue the biggest force is the virus resurgence in europe. The german dax fell more than 4 , its worst day since march 18. That fear around the virus and resurgence and future lockdowns could do to the economy really hit stocks hard. Down three point 5 . The worst sector for the s p 500 was this years defensive sector, the s p 500 tech index was down 4. 3 . Bank index down 4 . Chip stocks down 3 . Folks want out of what has worked this year. Defense not working that well on the day. That was the bearish action. It seems to have more to do with the virus. We will have more information. The s p 500 has reached key Technical Levels similar to those european indexes suggesting that more selling is ahead. Stay tuned for that follow to lily. As for some earnings movers after hours, we have some reprieve with interest soaring up 29 . They put up a big beat. Driving their strength was digital ad sales. Similar to snap. Seems like these companies with digital ad sales on the internet are doing well. Clearly its consumers on the internet on their home more so than not. Ebay Beat Estimates for the last quarter but for the current quarter, they are saying that it will not be as great as hoped for for the holiday quarter. Stock falling on the guidance. Not clear what is behind that, because they actually beat. They sell the homemade masks, etsy. Could be the fact that they stocked up so much in the sales enough. Strong investors taking some chips off the table especially in the wake of the week we have had folks want only the very best. Emily interesting, all those ecommerce holiday stories to watch over the next few weeks. I was also watching the hearing on capitol hill today. Facebook ceo Mark Zuckerberg, sunder pichai of google and jack dorsey of twitter all in the hot seat, all of them reporting Earnings Results this week. What are you expecting . Abigail the testimony was very colorful in terms of language, as these bigtech internet ceos are trying to defend the section 230 that protects their companies. Lawmakers obviously going against them or trying to bring something about. In terms of any change that would actually affect the numbers or fundamentals for these companies anytime soon from this testimony, that is unlikely. So the big picture is what youre talking about, earnings tomorrow for apple, amazon, alphabet, and facebook. And interesting report. They had huge selling pressure. These were the big drags on the day. Investors are taking chips off the table, perhaps profit where it has been working. Over the last five days, these stocks are down as well. We dont have stocks trading well into the report, sometimes it can raise a red flag. But price for affection, that bar is very high because these are companies that have done very well, so any hiccup from these companies, you could see some serious selling pressure. Today is maybe a small tell. Investors are shaving some of their risk off into those reports. Emily bloombergs Abigail Doolittle, thank you so much for that update. As abigail was discussing the biggest names report tomorrow after the close apple, alphabet, amazon and facebook. Those big tech ceos were on capitol hill today ceos of alphabet, facebook them and twitter. Brody, who covers tech lobbying on washington was watching every minute. What do you think the main takeaway was . Obviously we knew there was going to be a little political fireworks ahead of the election six days away. This one was a lot more colorful than some of the testimony we seen in the past. I took the partisan theater to be one of the main takeaways. Of course, in six days, and platforms will face their biggest test. There will be a lot of disinformation, there may be false claims of having one Member States or the entire election and it was interesting to see how the tried to stand up to a republican or democratic pressure to basically treat contentkinds of certain ways. The tension was definitely high. Frankly, it seemed like a fair amount of anger from the lawmakers. That really came through. But i think the platforms are andng to parry that particularly assure that them across the they will keep this information off the platforms. But it remains to be seen in less than a week mother or not they will be able to do that. Emily lets listen to some of the we heard today, some of more Heated Exchanges between lawmakers and ceos. Take a listen. So you are testifying to this committee right now that when twitter silences or sensors people are blocks political speech, that has no impact on elections . People have choice of other communication channels. Not if they dont hear any information. If you dont think you have the power to influence elections, what did you block anything . We have policies that are focused on making sure that more heard. Are we see a lot of abuse and harassment which ends up sentencing people and having platform. The we do continue to see coordinated influence operation items. We have been very vigilant. We appreciate of the corporation we get from the intelligence agencies and these companies we are sharing information with. We cant stop countries like russia from trying to interfere in an election. Only the u. S. Government can really push back with the appropriate leverage to do that, but we have built up systems to make sure that we can identify them much faster when they are attempting to do that and i think that should give the American People a good amount of confidence leading into this election. Emily lets remind folks why the hearing was called in the first place. It was about section 230, which companies from legal liability for content their users post. Republicans wanted to focus more on how twitter and facebook have handled particular posts from the president , the New York Post story about hunter and joe biden. In terms of what we heard today, how will this impact the actual law, and will that law be changed. Ben it was a very interesting pretext because section 230 was discussed. There was one comment sort of in the middle of the hearing about the republican proposal on 230 and what it might do and there was a comment from Mark Zuckerberg at the end about trying to tackle the issue of transparency. So it really doesnt focus on that. What i think you are saying is 230,that issue, section which has come under bipartisan criticism, is increasingly going in the other direction. You have a set of republican criticisms and a set of democratic criticisms and they are largely opposite. Unless lawmakers can find a way to come together, obviously, this would be in the next congress, but it will be really hard for them to advance anything that really changes how this law and how it treats the tech companies. Emily right. Republicans are concerned about too much moderation and democrats are concerned about not enough and there is a big election standing between now revisited. Is will be we will continue to follow this story. Ben, thanks so much for that commentary. Bloombergs ben brody from washington. Coming up, more from the tech hearings, from a Silicon Valley veteran. Should these companies be held accountable . Do they have too much power . That is next. This is bloomberg. Emily as we have been following all day, major tech ceos in the hot seat before congress today, fighting allegations of negligence and bias. All facing tough questions from lawmakers about how they are handling political speech and misinformation with just six days to go until the election. With more on how the tech regulatory landscape has changed, tech veteran tom ceo andc3 founder, which makes a. I. Software. He has quite the interesting Historical Perspective on this. Tom, i would like to get your thoughts on the pressure facing facebook, google, and twitter. Did these companies have too much power . Tom i think this is an unusual example of the United States government stepping up and doing its job. We have a situation where we had these social Media Companies that have become more powerful than the governments about regulate them. They providelities are becoming a substantial Public Health hazard. They are being weaponize by bad actors and they are being manipulated by the people that run these companies to filter the information that is made available to voters and to the citizens at large. So this power is being abused and i think if this is a situation where if government does not regulate, we will be very sorry. Emily give us some Historical Context on how the Political Landscape is today than when it was when you started back in the day. Tom i think the idea that you will compete against facebook or google, i think it is highly unlikely. People today dont really start withnies to compete google, they Start Companies hoping to be acquired by google. These juggernauts are insurmountable. Whether or not there are trust issues, that is beyond my pay lawyer, but it a do know that these companies are misusing their power. A. I. In reallyng malicious ways. Y are many manipulating people, causing a Public Health hazard among teenagers, a loving bad actors to weaponize these systems to manipulate elections, and they are clearly filtering the information that is available to voters so that voters are unable to make wellinformed decisions because they are not being given the news. Emily so you do think this influences the election and the results, the way that these companies operate. Tom unquestionably, they are influencing the election. They know they are influencing the election. They know exactly how theyre doing it, with forethought. I dont think it is manus, they think youre doing the right thing but i dont think it is malice. They think they are doing the right thing. They have an agenda and they want to overthrow the current government and they are doing a pretty good job of it. Emily lets talk about what you are working on now. We are working on a new generation of a. I. Software. We hear ceos often refer to technology and a. I. Is a way to take bias of the process but the reality is that people make these algorithms. So what is the way forward . 3. Ai is the worlds leading provider of a. I. Systems. Logistics in the military, aibased Prediction Software for aircraft, what have you. Precision Software Helps with covid. The social and economic benefits of these systems are simply staggering. Most of these systems can that we are just doing with physics pressure, altitude, torque, rotational velocity, no bias in the data simply physical and natural phenomena. What we get in the intersection of a. I. And social systems, we really need to think about the bias in data. Think about criminal justice, think about using a. I. For Human Resource systems. It is unquestionable that there are cultural bias in these data and that cultural bias will simply be perpetuated by the use of a. I. So this is a real danger zone, and we need to be very careful about the use of a. I. As criminal justice, facial recognition and Human Resource systems. This is very touchy, very dangerous stuff. Emily interesting. What do you think makes your offering better, than for example what salesforce has to offer. Tom salesforce is a crm product. To my knowledge, they are not in the enterprise a. I. Business. Emily they do have their own a. I. Offering called einstein. They also bought another company which connects more disparate data sources. C3. Ai market. Alsoft suggests to the person what is the next up in the sales process. That is not on ai problem. What we solve our ai problems. We are taking the data, massive amounts of data from oil and gas companies, manufacturing companies, companies in the aerospace industry, and building Machine Learning models that are highly predictive. Those are classic ai problems. The kind of problems that salesforce claims they are using a but it is simply not on a. I. Problem. Emily interesting. Fascinating. Really interesting to get your perspective given the many years you spent in Silicon Valley. C3. Ai andep an eye on the important work for you are doing. Thank you. All right. Still ahead, as cases of covid19 surge across the u. S. And europe, Multinational Companies are stealing themselves and her clients for a potential second wave. We hear more on the potential impact with a ceo. Emily european leaders are imposing harsher pandemic measures as cases of covid19 Research Across a continent. Today germany and france announced fresh blood the measures designed to slow the space of this slow the pace of infections. Caroline hyde spoke to the leader of one of the largest i. T. Companies on how his company is preparing for the second wave . Salil having seen what is going on in the last few days, we know that those numbers would have an impact. The way we looked at our business is taking into account some scenarios of a second wave. We have obviously not considered extreme scenarios at this time, but we will have to see how this plays out. Would we have also noticed in , businesseshies have learned to work with some i am notical saying it would not be impossible with extreme sets of numbers, but there are things going on. People are using therapeutics and masking and there are ways people are finding to work and revive the economy even on a personal level. So we will watch how this plays out. Someve factored in scenarios but not extreme scenarios. Do you think you have to factor in extreme scenarios. Salil at this stage, we dont see that. Based on what we have seen so far, the numbers are increasing. No question. But equally, there is a lot of medical knowledge that exists. It was in discussion with a european client recently and they were sharing with us how in different parts of europe where there are more measures of constraining activity, there is also measures which support them medically. We will have to watch how that plays out. I dont think it will impact us way. Neighbo negative caroline talking of European Companies you work alongside. This week we had to phone numbers coming out of the s. A. P. , the key Software Provider in germany saying that actually the lockdowns will impact their business. Trying to invest. But really, what has happened with covid is the work from home focus has strained technology. There has been a force acceleration in terms of that investment. . What do you see the you see the s. A. P. Side of the equation, the uc clients putting things off as the economy turns darker, or do you think there is commitment to acceleration. Salil today, what we are going through, big Digital Transformation programs and a rapid move to the cloud. And here, we have been a tremendous engine with an emphasis which is our Digital Business. The last quarter, our Digital Business grew 25 year on year, half, 47 just under of our economy. For us ismeans partnerships that we have with cloud providers where companies are going on to the cloud infrastructure. Those are the sorts of areas where we see more traction. We are participating in those areas and that is the benefit of the growth we are seeing. Our Growth Guidance is 2 to 3 for the full year. We are not talking about returning to where we were before the medical crisis where last year we grew at 9. 8 , but it is certainly better than what our guidance was before the end of the quarter, at which stage it was at 0 to 2 . We see a gradual expansion in the guidance because we see the efficacy of the cloud. Caroline do you think you will get back to 9 growth anytime soon, with the Global Economy as it stands. Salil the way we see that, a review for this Financial Year 2021,is through march of that is the guidance we have given. My sense is that given the momentum we had heading into the crisis, we think that as we come out of the crisis, we will have equal or more momentum. It is imperative on Large Enterprises to push ahead and accelerate with the journey. The more we are it will to participate and partner with them, the more likely we are to growth. He emily that was infosys ceo salil parekh. We have some breaking news. Bytedance, the Parent Company of tiktok has sued rival killer in a dispute over patents. Killer has come under the microscope, a company that has faced allegations of having to steal some tiktok users. We will continue to follow this story and bring you more as headlines rollout. Coming up, more on the bigtech hearings, and raided making big changes to its pay packages reddit. Emily bloomberg technology. Welcome back to bloomberg technology. I am emily chang in San Francisco. The social platform reddit says it will allow most u. S. Employees to work from home forever, with some exception. They will still be paid the same, even if they choose to move out of high cost cities, like San Francisco