Losers. As york city has a curfew they are poised to reopen after months of flock down due to the covid19 pandemic. Meantime, the markets ending the day up, somehow disconnected from all of this chaos. I want to bring in our markets reporter, abigail doolittle. On top of this, u. S. China tensions flaring up. Why do investors seem unconcerned . It is puzzling, especially with the degree of unrest in the u. S. It kind of is offensive in a way that you see stocks climbing higher. Today, almost a giddy feeling to the session. That kindhat you have of trading action, it does not seem to make sense but, again, it tells you that investors are looking past these unfortunate, sad, surreal events and making the assessment that it is unlikely to affect the economy on a longerterm basis. We have Something Else going on beyond the weak dollar. We have had a move over the past few weeks into cyclical stocks, recovery stocks out of the stayathome stocks. Up top, the nasdaq 100 and index. Take a look at expedia and United Airlines as an example of recovery stocks. Both of those up more than 1. 5 . That is adding a bit of a bullish feeling to the market. , chinae to the u. S. Relations just as puzzling. Oftake a look at an index china firms listed in the u. S. The index is up 8 . The s p 500 up over the last few days about 2 . Again, investors looking asked all these fundamentals looking past all these fundamentals. Emily meantime, zoom shares up after hours after the Company Reported quarterly results. Of course, it has been thus far essential for so many people in the middle of this pandemic. What do the numbers tell us . Abigail they put up a strong quarter. There was pressure, skepticism. The stock was up 200 , climbing after hours. 170 , putting up millions of dollars. Conferences, teleconferences. The big question, would they be guidance . Ost their talking about 1. 8 in the fiscal year, up from an estimate of 950 million. Zoom, priced to perfection. Shares are being rewarded at this point. Emily abigail doolittle, thanks so much for watching the moves for us. Facebook exploding in the middle of another controversy, this over facebook ceo Mark Zuckerbergs decision to leave up a post from President Trump that suggests that looters be shot. Zuckerberg just concluded a meeting with facebook employees. Pretty much defending his stance that he does not believe that facebook should be an arbiter of truth, and leaving the post up unchanged. I want to bring in david kirkpatrick, of course wrote the book on facebook. What is your take on zuckerbergs decision . Its doubling down seems to be the right way to describe it. It is a rare example you can find where zuckerberg has done anything that donald trump doesnt like in the recent past, which is ironic considering that trump continues to pressure thebook to do even more and general view on the right is that social media is unfavorable to the right. To believe that zuckerberg has concluded that the cost to him of crossing donald trump is greater than what would be the value of exceeding to the wishes of so many of his employees and so many people in the public to apply some kind of standard of basic decency of rhetoric on the service. Emily it is interesting that you would draw a direct line from trump to zuckerberg. We know that the president called Mark Zuckerberg on friday. Supposedly, zuckerberg told the president that he was disappointed in the tone, putting facebook in a difficult decision. Meantime, you have facebook employees walking out this week in the first, to my knowledge, public display of protest. You have a couple of facebook employees resigning today publicly because of this decision. Owen anderson, a facebook employee to much, i am proud to announce that as of the end of today, i am no longer a facebook employee. Another employee posted on facebook, saying annot refute a company so used to public scrutiny, and we have seen Mark Zuckerberg stand his ground in the midst of public scrutiny, i wonder if internal scrutiny from employees has got to moderate his stance. David i think that is a good point. The thing that zuckerberg depends upon the nose depends upon the most is talented engineers. The and public resignations today are some extent a first. Resigned, about a year ago, one of his top deputies, there was a public aroma to that action. But this is historic, the way that facebook employees are publicly organizing to disagree with and protest the companys behavior. Get goodok cant engineers, it cant continue with what really matters to zuckerberg, which is continuing to grow and providing a Service Everyone on the planet. I think zuckerberg is playing politics with a lot of his socalled principled decisions. I simply dont believe that he is following principal. I think he is much more political than he will admit. Emily zuckerberg and Sheryl Sandberg held a nearly hourlong call and civil rights leaders came away pretty disappointed again about this decision. Color of change president rishaad robinson telling berg, telling bloomberg, the problem is that we spend a lot of time explaining to him why these things are a problem in he very much just lacks the ability to understand it. Not saying that he doesnt understand, but saying he lacks the ability to understand it. What is your take on . David my take on that is that it is pretty disturbing. I dont know if i would look at it quite that way. But in their public statement, the civil rights leader said he did this did not demonstrate orerstanding of historic modernday political suppression. , used tot nick clegg be deputy Prime Minister in the u. K. , would be advising him. Ironic, buts is Mark Zuckerberg takes advice as poorly as donald trump does. This company, in all of my criticisms of it, we cannot deny it is playing a very historically important in this time of protest, and that is meaningful. Mind, thatrgs own is probably the kind of rationalization he makes. He believes his Services Providing critical capability capability critical in the United States and these problems dont care to his ability to keep spreading this tool to everyone. These demonstrators might not be able to accomplish what they are doing without social media and facebook. Obviously, such an interesting position facebook is taking visavis twitter. Im sure we will be back with you on the story has it progresses. Coming up, we will speak to a ceo just severed a relationship with facebook over this very decision. Dock space ceo, who ended a deal with the social Network Later in the show. We inwe are also, are for another night of protests and possibly looting across the United States . Speak to a prominent voice for philadelphia where joe biden just waiting. N. Just weighted i this is bloomberg. Curfews going into effect across the country tonight as protests and potentially looting continue. Curfews set at 8 30 p. M. In philadelphia. A considerable amount of damage, the site of president ial candidate joe biden today. Mr. Biden we have to be vigilant about the violence being done by this incumbent president to our economy and to the pursuit of justice. Inly i want to bring charles ellison, host and executive producer of reality check, a Daily Public Affairs Program in philadelphia, and a contributing editor at theroot. Com. Charles, thank you so much for joining us. Have seen some very disturbing videos coming out of philadelphia. Specifically protesters being gassed . Tell us about your sense of the situation right now, especially these continuing strong words from the president. Ofrles it is a confluence very volatile events happening right now on several tracks. One of the situations, very tense in philly, people bracing for another evening of unrest. A lot of complaints, you hear a lot of black leaders in various communities around philly who are talking about people infiltrating peaceful protests, people who are really not there about the issue of Police Violence or structural racism, where there to sort of aggravate the situation, make it more violent. I heard from a lot of black elected officials in philly who are fed up with that and also telling people in their communities, particularly young people, be careful while youre out there peacefully protesting or perhaps consider staying home. I was talking to the mayor of philadelphia, jim kenney, was saying, i am with this movement, with this moment, but i have a responsibility and obligation as bayer to keep the city safe. If i feel like residents are in danger, if i feel my police are in danger he was kind of defending the decision to use tear gas. We have all seen vivid pictures of the protesters on the expressway being teargas. He defended that, saying there was a volatile, violent situation that sparked off. He thought, drivers are in danger, bystanders were in danger. Meantime, you have got the primary voting happening in the state today. You got joe biden saying earlier that President Trump has turned his own country into a battlefield, is fanning the flames of hate. President on twitter americans hoodlums,nd losers, thieves. This state inn in this country at this moment . Charles it is very surreal, very bizarre. A striking contrast between the current president , trump, who very on president ial at this moment away out of his debt, not willing to rise to the occasion and lead. A striking contrast between him and joe biden, given a speech in philadelphia, the place where there was the official spark, official trigger of rebellion against monarchy, joe biden giving a speech in philadelphia, of backdrop, the birthplace democracy. That is the kind of leadership they want in a chaotic moment like this. Interesting thing about turn on numbers for this primary. Pennsylvania is a key battleground state. Philadelphia is the Golden Nugget in the corner of that state. You want to watch turnout numbers today because it is a dress rehearsal, a fire drill for the big name in november. Actually, we are seeing bigger than anticipated turnout numbers in the primary. The primary turnout numbers in philly show that it is about to surpass the 2012 primary. That is very interesting there was an expectation that voter turnout would be abysmally low because people are afraid of going out, so much unrest. Im hearing reports also from washington, d. C. , they have a primary, maryland as a primary. There is big turnout at these consolidated locations. People understand the full by mail rhythm, they get it, they want a fix to the crisis happening in this country. They are getting prepared for that big moment, november. I do all right, charles, want to get your thoughts on the role of technology in all of this. You have social media, in so many ways the engine, the motivation for we are seeing you have Mark Zuckerberg taking a , leaving up what would potentially be violent speech from the president. In every feed, it is pictures and videos. I wonder if social media is motivating here or if, on the other hand, it can guess somewhat numb to some of the dangerous given that we are so overloaded with it. Charles it is a mixture of both. Time inan unprecedented u. S. History. It is the first time we have had this massive social unrest and upheaval with all of the media mechanisms, the channels, the disposal, our fingertips. It is like the first moment in u. S. History that we have had a multimedia collage of social upheaval, social unrest. There is some good aspects to that because then we have all this communication going on. We are able to see images of andce violence and the to hold certain leaders, certain institutions accountable. But there are also some very bad and troubling aspects to it. The saturation of so much noise and static. Leaders, elected leaders especially, people like Mark Zuckerberg, he has to learn that too. He is extremely tone deaf. I personally deleted my Facebook Page after the 2016 election. That is probably the only way he will listen, civil rights leaders and folks within the black political and advocacy community, they will have to start a Mass Movement to delete their Facebook Pages if they want to if they want Mark Zuckerberg to listen. Emily charles ellison, appreciate you sharing your views today. Coming up, we will be talking ath a ceo just terminated business relationship with facebook. Ofwill speak to oren talkspace. This is bloomberg. Emily this tweet from talkspace ceo oren frank earlier. We will not support a platform that incites violence, racism, and lies. Black lives matter. Talk space ceo oren frank with me now. Compelled you to do this . Me, thanks for having emily, and good to be here. Basick it is a very righton of making the choice. Facebook and other platforms know that. The level of lies are so high, we are not going to factcheck amounts to saying we are willing to harm our users. It is as simple as that. That is not about ideology or politics. It is about right or wrong. Work with this. Emily i am sure it was a carefully considered decision. You said this will cost hundreds of thousands of dollars. And we are in a Mental Health crisis in this country. Americanstate of minds right now as we go through this health crisis, economic crisis, now eight devastating social crisis. Huge surgeve seen a in pain and anxiety. Horrible things being driven by covid and with these recent, i would say, uprisings, you see another jump. It doesnt matter whether you or the ceo ofent the biggest media platform in the world, facebook, you are achieving the same results. I think that is exactly what we see. In Mental Health, actually right after the election. Emily talk to us a little bit about and quickly, we have 30 seconds, what kind of leadership you would expect to see from other companies right now. A lot of companies have business dealings with facebook. Is ani think it individual and corporate thing. Actything is ok, we should according to what we believe is right. Just do it, dont talk about it. Do something about it. Emily talk space ceo oren frank , you did something about it. Thank you very much for joining us and sharing your position. Coming up, we will talk about amazon rerouting deliveries to avoid clashes with protesters. This is bloomberg. You doing okay . Yeah. This moving thing never gets any easier. Well, xfinity makes moving super easy. I can transfer my internet and tv service in about a minute. Wow, that is easy. Almost as easy as having those guys help you move. We are those guys. Thats you . The truck adds 10 pounds. In the arms. Okay. Transfer your Service Online in a few easy steps. Now thats simple, easy, awesome. Transfer your service in minutes, making moving with xfinity a breeze. Visit xfinity. Com moving today. Emily welcome back to bloomberg technology. Im emily chang. As protests continue to rock cities across the country, amazon has been modifying its delivery route to avoid clashes with protesters and maintain employee safety. Sales of pepper spray have been selling on amazon itself. Sewing on amazon itself. Dan, it is so interesting to see how these protests are impacting companies. Pepper spray shot to the top of the bestseller ranks for boards and outdoor items. You have reviewers talking about the demonstrations in reviews, one saying put the cops down when they mess with you. What do you make of this . Amazon found themselves in the middle of a firestorm because on one hand, the delivery perspective, it is about the safety of its drivers. At the same point they have got to make sure that the packages get there. You are seeing rerouting across the board. When you talk about the pepper spray, it shows a lot of these companies, they find themselves in an uncomfortable situation relative to this backdrop, which is unprecedented, and i think that is something bezos and amazon are trying to navigate by the hour. Emily meantime, you have got amazon saying they will offer some new family benefits e. Com to their 650,000 full and parttime employees in part because of the pandemic, giving them 10 days of subsidized emergency backup, child or adult care. What is your take on this . Dan this is also coming at amazon with a bit of a black eye with the warehouse situation. You look at other companies, microsoft among them, in terms of trying to adjust to this new environment, day care and making sure that employees have the opportunity where their children are being taken care of, and it is something where amazon and a lot of other Tech Companies are adjusting onthefly to the new normal, because cannot go back to work, amazon is one of the leading companies in the world, so they follow leadership, and youre seeing not just amazon, but you look at apple, microsoft, google, among others, their stances and their moves over the coming days, weeks, months, are going to be pivotal in terms of perception internally as well as externally. I think this was a good move, especially the massive challenges that employees face if they have to go to the office. Emily lets talk about facebook, because facebook was getting such high praise for being the last to go back to work. Zuckerberg out there speaking about working from home. And suddenly this post from President Trump became such a flashpoint. You have civil rights leaders upset, facebook employees walking out and resigning. Mark zuckerberg did a q a with facebook employees today and there were lots of angry questions. How big a risk is this to a company that depends on the talent . The when you look at th dorsey trader battle against trump, it but Facebook Twitter battle against trump, it but facebook in the eye of the storm. Jimmy carter brazil within facebook as well as external extremely controversial within facebook as well as externally. This is a storm that zuckerberg and facebook need to navigate, because what makes them who they are, the engineers go up and down the elevator every day, and keeping employees happy but keeping their stance were they going to soften their stance . It seems they are not. It comes down to zuckerberg and facebook especially coming out of Cambridge Analytic a and everything they dealt with there, they are trying to stay thatfrom this tsunami twitter is dealing with, and i think they will continue to potentially change their stance, especially if internally this continues to get more and more pushback in a very sensitive time. Emily right, talk about the tsunami. Facebook has its own tsunami in the in action of this. Inaction of this. Twitter is a Smaller Company but a huge megaphone for the president and i wonder how this position the two of these copies on opposite sides of the line and what that actually means for the business. Dan and especially going into a president ial election. But i think it also the reason zuckerberg and sheryl and facebook have taken the stance, it comes down to the rword, regulation. That is the broader worry in terms of the impact on the business model, when you look down the road from advertising perspective, this is something they all have to face. Right now you see investors not worried about this, shrugging it off because it all comes down to what the refuge Regulatory Environment looks like going into more of a bonfire situation as you go into late summer and fall. That is why zuckerberg and facebook tried to take the opposite stance from dorsey, which no doubt is controversial internally as well as externally. But if you look at the stock from how investors are doing it, they are shrugging it off, at least for now, as it appears to be contained in terms of businessmodel changes. Emily lets talk quickly about smart phone sales. Gartner put out a report that smartphones sales are down to decline 20 this year. Worst, buthit the wondering what this means for apple, for samsung. Where do you stand . Dan in a backup of a once in a hundred year pandemic, consumers are focused on their jobs and health and even toilet paper over smartphones. That is also why the 5g for the iphone 12 going into later this year and next year is what we view as the seminal moment and ultimately the catalyst. On the other side you will see a significant rebound in the likes of apple, samsung, and even the chinese competitors, given the super cycle. Although right now as consumers, out of this dark storm, a 1000 iphone or smartphone looks a lot more expensive than it did precovid, and that will be a headwind for smartphone as you navigate the store and get to the other side. Emily all right, dan ives, always good to have your perspective on the show. Thanks so much. Coming up, President Trump escalating the global fight over taxi American Technology companies, now heightening chances another local trade dispute could result in retaliatory taxes on the u. S. Details on that next. This is bloomberg. Emily the Trump Administration is opening several investigations into the digital tax plans being considered by several different u. S. Trading partners from europe to india. Joining us is bloomberg text reporter laura davison, who covers taxes for bloomberg. It is a complex series of investigations. Talk to us about what exactly the white house is doing. Laura to go back several months, these companies have been announcing new digital taxes that target amazon, google, facebook. They are looking at a way to text these American Companies they dont get a slice of the pie on. Fast forward to now, we have seen heightened tensions between the u. S. And these countries, and the u. S. Says if you are going to tax our companies, we are going to find a way to tax you. We saw this with france. France and the u. S. Tentatively made a truce, but what we can see here is a whole new slew of tariffs or at least threats of tariffs on a wide range of products from india, the eu, turkey. Big group of countries. Emily what could that mean in terms of retaliation potentially from these countries . Laura we could see retaliatory tariffs as well we could end up in a proxy trade tariff war over this digital tax issue. There is sort of an International Group that is working towards some sort of agreement that every country could get a little slice of the tax revenue. Talks have been going on for about a year and they hope to have a deal by the end of this year, but it is a very ambitious timeline and particularly with the coronavirus that has stalled a lot of the inperson meetings that finance ministers would have come it is trickier to meet the deadline in six months. You have gotme, countries hoping to reach a global deal by the ned of the end of the year. With so much happening globally, the pandemic, in the u. S. This social crisis, what is the likelihood we will see a deal on this in time . Ninga skepticism is reigi heavily on this. At first there was hope there could be a deal. Now it seems that almost certainly is not going to be one, or at least not a big deal wrapped up in time. The question and the concern really is for a lot of the triggers for these taxes spain, for example, said if there is no global deal by the end of 2020, we will implement our digital tax on google and facebook. There has been some agreement to extend these deadlines, but countries are growing impatient, saying that the International Group organizing this is drawing out the negotiations. As we know, countries are looking for sources of tax revenue, so this would be an easy thing for countries to kick in for their budgets. Emily laura davison, i know you will continue to cover this story for us. Thank you so much for the update. Meantime, as the coronavirus as disrupted so many things from one of them is colleges and higher education. Educators are weighing the possibility and responsibility of ensuring health and safety and combating discrimination and injustice. The Harvard University president spoke with David Rubenstein on leadership. Take a listen. It all depends on where the country is in the fall, where the country is in terms of the coronavirus and how people feel comfortable gathering and getting together, if that will be something, how many we have on campus. But also where the country is emotionally, as we go with difficult issues which we have been dealing with for generations. But seems to have become a flashpoint in the last several weeks. David so when students are doing things online, do they say to you this isnt the experience i signed up for, so can i pay a little less tuition, or do they not say that . Larry some students say that. The online experience worked better than i think most of us expected to. Numberm perfect, faculty faculty members only had 10 days to plan, so it was a quick pivot. We have people working at to develop courses that will be taught online in the fall and scratch if we have to be online in part in the fall. David lets talk about the fall. A lot of universities are trying to figure out what to do. Notre dame announced they are coming back with all the students, i guess, and in your city, Boston University is coming back as well. Larry bu announced a hybrid form some on campus, some offcampus. The mix may be different by different institutions. David is it different between undergraduates and graduates . Graduate students tend to live offcampus and maybe they have their own apartments. What is the problem with undergraduates, housing, bathrooms, athletics . Larry there are a number of issues. We have our own issues when we control our own housing, as we do for undergraduates, which means we can bring them back anytime we want. They dont have to find housing in the market places. The graduate Student Housing stock, most of them are living in apartments, most one to a bedroom. They can selfisolate in ways that are difficult or harder for undergraduates, where there may be a couple people sharing a room. One of the other difficulties with undergraduates has to do candidly, the way they live and what they expect to experience when they come through a College Campus come to a College Campus. We are looking at making sure that we can ensure proper social distancing with undergraduates when they are here, wear proper masks and other things. Not just the housing, we also have to think about how we teach students. Identify customs in a class that might have 90 students, you can only probably put 30 students in the same classroom at a time and maintain social distancing. Students have to enter into the classroom carefully so they dont bunch up. You have to disinfect the classroom after each use. Classrooms the availability of classrooms will be a challenge for many institutions. David and students who come back, will they have to wear masks . How will you please their socialdistancing techniques . Larry i hope when we come back everybody will be masked on campus. We are working for a number of particles for how we would manage that. Working through a number of protocols for how we would manage that. Lots of things will be different. I dont expect students gathering in large numbers in the dining halls. They will be scheduled so we spread them out. David what about athletics . It is hard not to have contact larry it is highly likely that certain sports wont be played this fall. Emily David Rubenstein with harvard president larry bacow. U. S. China tensions continuing to escalate, in the dispute getting harder to stop. We will discuss. This is bloomberg. Emily hong kongs leader carrie lam has blasted President Trumps handling of protests across the country, claiming the president has double standards. Of course, the president has condemned to beijing, when he curbing what he says of essential freedoms in hong kong, as protests across the u. S. Continue to rage, the president has suggested protesters be shot. Joining us is a professor at the university of toronto. View ofwhat beijings all of this is, especially this discussion that is now raging across chinese staterun media about President Trumps double standards. Yeah, that is an interesting angle, because trumps threat to american protesters david beijing the best problem gave beijing the best propaganda gift ever, because beijing is saying that one hong kong crackdown on protesters, washington called it a human rights abuse, but when the u. S. Tear gases and shoots rubber bullets at their own protesters, they call it restoring order. To beijing this is absolutely u. S. Hypocrisy on full display, and it is true that trumps actions is hurting u. S. Credibility, but it is also giving beijing a golden opportunity to change the conversation. Beijing wants people to focus on police brutality, but that is not the crux of the issue in hong kong. The heart of the issue in hong kong is the right to selfgovernment under the one country, two systems arrangement, hong kong people being the ones deciding their laws and not beijing. When beijing is doing this by passing hong kong altogether, passing the National Security law, effectively moving the status quo towards a one country, one system, with patient in the driver seat. That is exactly why hong kong people are so anxious about their future. Emily meantime, you have to President Trump in an Election Year and his actions on china, even his threats, are very mobilizing to his face. I wonder if that to his base. Im wondering if that motivates actions the president takes he has threatened a number of things, but the phase one trade deal earnings largely intact. How could potentially facing reelection impact what the white house decides in terms of policy . Diana well, thats a good question, but i think if beijing has learned anything in the past year, it is that trump is very unreliable and he changes his tune all the time. They are waiting to see if trump s threats of retaliation are going to come true or not. But even if trump keeps his word and imposes tariffs and trade restrictions, i very much doubt that beijing would backtrack. For beijing to change its course after it has passed a law through the National Peoples congress, this would be seen as a national humiliation. It would be seen as bowing before and bullying, and beijing would not show such kind of week. Emily meantime, do you expect beijing to retaliate further . They have asked staterun companies do not buy u. S. Farm products. What more can they do . Diana i think beijing has adopted every combat of diplomatic a very combative diplomatic posture, and this is what some people call wolfwarrior diplomacy. The wolf warrior is from a chinese blockbuster who defends chinas honor. Chinese diplomats are heading back at any country beijing sees as attacking china, including the u. S. , the eu, canada, australia, and other western allies. There is possibility that beijing will retaliate. Meantime, what does this all mean for hong kong . Part of the issue is hong kongs ability to self govern. Is that ultimately taken away . Diana i think that the security law is really a watershed moment for hong kongers. It is bad news for hong kongers who care about civil and political liberties, because beijing is declaring it will decide which activities consist of subversion, which activities are sedition is, and not seditionist, and not the hong kong people. The law, everywhere worryingly, would allow mainland agencies to set up in hong kong. They will not deal lightly with individuals charged with subversion. Mainland china activists charged with subversion are often given long jail sentences. This is very worrying for hong kong protesters, who could be charged with subversion of state hour. What is yourfu, view on the next steps . What are you going to be watching . Mean, i think the next steps it is hard to say what the next steps are, what unfortunately the options for those who oppose the security law in hong kong are very few. It is basically a fight or flight situation. One option for those who oppose , and many to fight have taken to the streets once again. But they are being met with very well prepared Security Forces in hong kong. Last week authorities arrested more than 300 activists. Activists are fearing protest fatigue. This is amplified by the pandemic, and they are not seeing the same turnout as last summer. Others could choose to fully in the coming flee in the coming months. University ofu, toronto associate professor, really appreciate your insights. Thank you for stopping by. That is it for this edition of bloomberg technology. Bloomberg daybreak australia is next. Im emily chang. This is bloomberg. Haidi welcome to daybreak australia. We are counting you down to asias major market open. These are your top stories. President trump under fire for his Washington Church photo op. Critics and religious leaders saying clearing protesters by force was an abuse of power. U. S. Stocks rise a thursday as new stimulus and positive Economic Data continues to suggest a postvirus recovery. The s p
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