Hong kong security law tomorrow. Starbucks, pepsico are the latest companies to curtail ad spending on facebook. Tossure on the group crack down on hate speech shows no signs of slowing. Manus 6 00 a. M. In london. 7 00 a. M. In paris, 9 00 a. M. In dubai. It is the best year for bonds ands 1995. Charts,ne in the unchained melody. I wont sing it for you. The fed was cutting rates and get this. I know you will choke on this. 6. 47 for 30 year bonds. I could have retired. 5. 79 . Ht money was good morning. Nejra good morning, manus. I love your trips down memory lane. It is extraordinary we have seen the best first half of the year since 1995. Look, there might be more in the lower orpush yields higher this week because we got fed chairman Jerome Powell speaking to congress along with secretary of the treasury steve mnuchin. Interesting is the disconnect because youve got bonds. To that extent, but also equities bid to such an extent so a different story being told in the equity and bond markets unless you say it is the same story and all about the fed backstop. Manus who am i to say. You got 125 basis point compression, only 64 basis points the back half of the year. The question as you go intimidation and powell this powell into mnuchin and this week, can the bond market collapsed 64 basis points . 125 in the first half of the year. What is the spark to take you down to 64 basis points . Good to see you this morning. Nejra yes, absolutely. The prospect of possibly yield curve control this year. Looking at equities, we have been talking about a strong rally since the march lows, but yesterday, a weekly loss for Global Equities and we started on the back foot in the Asian Session and gathering momentum to the downside for u. S. And european futures. Really, the concerns around coronavirus are front and center in investors minds as we start the week. We look to keep data points like jobs data in the u. S. And taking a look at fx, dollar has been fairly steady, but the pound rising for four sessions, with Boris Johnson promising to spend on hospitals and infrastructure. The 10 year yield, steady but as you say on a 64 handle, and we see weakness in the oil price. Second wreck and weekly decline for Oil Last Week since late april, but the virus milestones really spurring demand angst. Manus there is anxiety in the market, no doubt. Lets talk about the coronavirus story because the global numbers have hit some grim milestones. Passed 500,000 with cases passing 10 million. World leaders had that the pandemic was slowing. Bet the pandemic was slowing. Nejra bars are being shut and Safety Measures implemented in texas where the positive cases have soared a record 14 . Sec. Alex azar warned the u. S. Needs to take action now. It is a very different situation, but this is a very serious situation and the window is closing for us to take action and get this under control. Nejra joining us for the hour is the head of fixedincome at Newton Investment management. Paul, great to have you with us on the show. To pick up on the discussion manus and i were having at the of the show, with the concerns mounting for investors causing some jitters in equity markets around the prospect of cases rising, the death toll rising globally for coronavirus, are you positioning at all in Government Bonds, particularly in treasuries with the collapse we have seen in yields since the start of the year . Paul yes, and we would still like to use the treasury market because it is an insurance further cases of the extension of the first wave, the trend in market and bond markets are there to ensure that we go back into lockdown and we do get more unemployment and potential deflation coming through, please got something in your portfolio that can make you money during that phase. With yield at 64 basis points on the 10 year, it could fall further and get Capital Gains from that insurance policy. Manus good morning to you. Drop in theoints first half of the year. Do you really think the duration trade is played . Could you collapse by a similar amount . Could we go close to zero . If that is the momentum the first half of the year, what is the risk of 0 in treasuries by the end of this year . Paul i think it is a low risk. It is possible when you look at, say, germany. Look at what has happened in japan. A prolonged period of disinflation, you get lower bond yields. That is possible. Seeing the stimulus working through into economies, gradually we will see more stimulus through fiscal injections into economies and eventually, we would be coming through the other side of this. An negativeved to Interest Rate seen as positive as it was in europe, but i still think we will get cash rates close to zero, which means there is a curve with a positive bias would have positive 10 year yield so it is possible to go to zero on the 10 year, but i think you need another severe case of lockdown and moving too much higher unemployment going forward. Matt what is your approach to corporate debt in the u. S. . Bought bonds issued by Companies Including at t, unitedhealth group, and walmart . Disclosures on sunday that showed the highest percentage, 21 was debt issued by firms in the consumer noncyclical sector. Our you following the fed in targeting specific corporate in the u. S. Or do you have a different approach to corporate debt in the u. S. . The u. S. And elsewhere, we have to target specific companies because not every company will survive, even with fed support buying up their bonds. Not every company will get enough revenue stream to maintain its debt payments the next two to three years so we are being selective in our issuer allocation. We initially moved into investmentgrade as the fed started to add liquidity to markets back in the middle of march, and on the investmentgrade, corporates were looking at profits because we had a good run, the spreads have come in and you are not necessarily getting compensated for the potential downgrade in investmentgrade going forward. Highyield is where we are continuing to add, gradually, making sure we are looking at the right companies, and the u. S. Is just as vulnerable as europe to the potential of defaults and downgrades. Manus weve got chesapeake filing for chapter 11. Picturing Something Like an 11 default rate. The conversation i had last hour was we want to own asia highyield relative to u. S. Highyield because we are getting paid a little more for less potential risk, also around the ccc space. How do you think of that . Paul i think that sort of makes sense. Looking at the broader markets, you are going to get the issuer dispersion you want because in the u. S. , you got a lot of highyield energy in the highyield index, for instance and chesapeake is a good example of that so you want to avoid. We prefer to do from an issuer basis, a bottomup versus a geographic version. Asia does seem to be a place that offers more opportunity, potentially, and slightly better yields over time. Manus ok, paul. Paul brain, alphabet investment Newton Investment management head of fixedincome. Your first word news this monday morning. Donald trump, reports russia paid to have u. S. Troops in cash bounties foraid u. S. Troops was not credible. The New York Times reported on saidtory said lighthizer there was a consideration of response but no final decisions. Poland voted overnight. The president , a quick reelection. Early counties of yesterdays vote showed the president came first with 41 . The opposition candidate and warsaw mayor came in with over 30 , but no one getting a majority. The second run off of the ballot is set for july 12. Polls suggest it is too close to call. Qs red raiders have approved flights for boeing 737 max. They are reviewing safety of passengers. Beijing has made it signals the government is finally comfortable with the changes. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Nejra coming up, chinas industrial profits rise for the First Time Since november 2019. More on the state of chinas economy next. This is bloomberg. I elected to stay in the closet for a long time in my career, but i can tell you after coming out that physically and mentally, it takes a toll if you do that everyday and what we are trying to do is eliminate that from people and lift people up. That was jim fitterling, chairman and ceo speaking to bloomberg as part of bloombergs ceo spotlight. You can catch more at 7 30 p. M. London time. The profits of Chinese Industrial enterprises rebounded in may for the First Time Since november 2019. Industrial profits rose 6 from a year earlier, signaling the economy is continuing to recover from coronavirus shutdowns. The pboc will implement new monetary tools to make sure liquidity reaches the real economy. The National Security law could be imposed as early as this week as chinas legislative body votes on the bill tomorrow. A Senior Advisor to hong kongs chief executive told bloomberg the law will warn people not to cross certain red lines. Say we dont know the exact details, but we know the framework of the bill is to address National Security, in four areas. Terrorism, foreign interference. These are four specific areas the bill targeted. I think we basically know what it is. Of course, it still boils down to the interpretation and enforcement. That needs to be determined, but even without the details, the secretary of justice in hong secretary reassure that the law will be enforced in hong law, so under hong kong commonlaw jurisdiction. It is clear even though the law has been legislated in the mainland, the enforcement and judicial education will be in hong kong. I am confident the mainland authorities are taking the one country, two systems in consideration when they drafted the bill otherwise they could simply enforce them in my National Security lot hong kong, but they didnt. They know there are different jurisdictions so they want to make sure these designs, National Security law, can work in hong kong. In the past, you have said you expected this law to have a deterrent effect, that it would not be used as much, but right now, you are saying it is needed in hong kong, so how much do you expect this law to be put into use on sentiment at . Again, a piece of law is a deterring factor. It is really to warn people do not cross the red line. You cannot ask for hong kong independence and we do not tolerate terrorist act like what happened last year during the social unrest. So long as people abide by the law, i suppose we never have to use this legislation. Mind you, another special region in china, they passed a National Security law in 2009 and from what i was told, not one case has been prosecuted under that legislation. Behavese if people accordingly and we do not cross those red lines, we never need to use this piece of legislation. Said these report are very broadly, vaguely acts of criminality, that life sentences could be imposed. Can you confirm or deny, and is that necessary . Bernard i cannot confirm nor deny because i havent seen the details of the bill so i dont know. Again, i have seen National Security bill in other jurisdictions, singapore and thewhere, and i believe sentence is harsh and those jurisdiction, including the u. S. , but i have not seen hong kongs version yet, so i yet to find out. My question to you, are you worried about that . Are you worried about these countries putting sanctions that may hinder business relations with hong kong . If to mention what happens the special trading status with the u. S. Is revoked . Is all this, the National Security law with the protests and all the negativity that comes with it really worth it, given hong kongs future as a Financial Hub . Bernard as you rightly put it, we are one of the top three Financial Hubs in the world and there are tons of u. S. Interest in hong kong. Surprised if the u. S. Decides to put sanctions on hong kong, they could, but i dont see how it is in their interests, as well. It could hurt their interests as much as our own interests. Manus that was the Senior Advisor to hong kongs chief executive. Paul brain is at Newton Investment management, head of fixedincome. It depends who you read on twitter, but i was looking at larsson, he says the tres tilde 20 u. S. And china is all but dead and it is only the trade guild between the u. S. And china is all that said. How does the dissipation of trade angst fadeout in the technicals of fixedincome . Longterm, reversal of globalization, which i think is something we are seeing gradually over time, and favoring of bringing production back home, being in place trade barriers which was a breakdown in the trade deal, we will end up with those, leads to higher costs and those costs can be passed on and you get higher inflation. From the bond market perspective, the government level, it will cause steepened yield curves. We generally believe you will have positive yield curves even with cash rates maintained at extremely low levels and companies have higher costs, leads to higher costs and defaults down the road. It is a longterm negative trend for bond markets in general. In terms of chinas bond markets, you have the pboc saying china will make prudent Monetary Policy more flexible and appropriate. They will make sure liquidity reaches the real economy, increasing the proportion of Smaller Company loans, credit loans, and manufacturing loans. Got a bottomup approach so what opportunities are you seeing in china . Are you seeing a lot that interests you right now . Paul we are still a bit cautious when it comes to investing in china, either in the Corporate Bond market or in the government market. Weve got some exposure to chinese governments because of the yield advantage. Other markets such as the u. S. But when it comes to corporates, we are steering clear. We are waiting for the economy to stabilize and waiting for companies to restructure some of the debts they have on board. Of course, the chinese Corporate Market is one of those with a lot of debt and does need to restructure that get over time. Chineset of exposure in bond market assets at the moment. Nejra paul brain, Newton Investment management head of fixedincome stays with us. Taking back control of the agenda. Attempt toon will reboot his struggling administration after weeks of criticism over his handling of the coronavirus pandemic. We discuss u. K. Politics next. This is bloomberg. Nejra this is bloomberg daybreak europe. Im nejra cehic in london with manus cranny in dubai. Looking toon is reclaim the agenda over criticism after criticism of his handling of the pandemic. Hes announced 1. 8 billion pounds to schools in england. The move comes as johnson is due to give a key speech tomorrow where he is set to spend set out his goals beyond the emergency. Please ruled out austerity and paul brain, Newton Investment management head of fixedincome is still with us. We understand the u. K. Will spend large sums on hospitals, schools, and roads. Big infrastructure building spend here. Potentially a lot of Government Debt issuance. Would you be wanting to buy those gilts . Paul the gilt market is a market we are short because we are concerned we get more positive curves coming through in the u. K. As a result of the extra spending as a result of the issuances that go with it. The support for the economy, at the same time, they are talking about recovery funds or investment in the economy. We are nervous ive said before, these Government Bond markets are going to be manipulated for some time so yields will possibly rise in the u. K. But there are limits to how hot far they can go before everyone starts to worry about candace debt be serviced . There will be bank of england intervention, as well so from here, high yields are not too absence ofh the significant inflation threat, we are not expecting yields to skyrocket higher despite all that debt. Economies are very weak and unemployment will stay high, which means for the time being, there will be low inflation so they can afford to do it further down the road. It is a question about candidate be serviced . Manus paul, thank you. Paul brain, Newton Investment management head of fixedincome. Controlling the trajectory of any yield. Ining up, market activity the first half of 2020 made history in more ways than one. Who are the winners and losers as we go to the close of the first half of 2020 . It was the best since 1995 for the bond markets. The secondlucky, and half, we will sing you the number one song from 1995. Unchained melody, on bloomberg. Manus good morning from dubai. Im manus cranny. It is bloomberg daybreak europe. Global stocks trade lower as surge past 10ses million. The World Health Organization reports the most infections for a single day. Vice president mike pence encourages people to wear masks. Chinas Industrial Companies should first monthly increase in profits since november. On the political front, reports suggest beijing will vote on a controversial Hong Kong Security law tomorrow. Starbucks, pepsico, and deaggio are the latest companies to curtail their ad spending on facebook. Pressure on the group to crack down on hate speech shows no signs of slowing. Nejra welcome to bloomberg daybreak europe. We started the week with what looks like equity and bond markets in tandem in the sense we saw weekly loss for Global Equities to the tune of 2 and youve got the 10year treasury yield trading its lowest since may 14 so we definitely start to me week on a risk off tone. Manus jay powell ammunition, so a fiscal and rhetoric debate about a dovish tone. Go get the jobs number and the ability for error is huge. Hasbond market probably risk assessment, doesnt it . Nejra we were talking at the top of the show about the fact weve had the best firsthalf for treasuries since 1995. That took you back, didnt it . Manus i was young then. Smalldimon owns a institution called jpmorgan but those were the days that recovered from the bond rout to the poor ma performance of 1995. 10 year yields, will they go to less . Lets look at the price of the markets. S p futures in the green. Asia was playing the catchup game, it was 1995. You havent had a year like it since then. 9 return this year. 30 year paper, 6. 4 in 1995. Have a look at the rest of the markets. Advertisers that are absolutely Standing Firm in terms of pulling back from the spending is rising. Starbucks joins the roll call, a 56 million wiped out. Havens are bid, gold coast higher. Yen telling do Something Else about underlying risk, which is maybe youve got to look through the covid spikes toward dollar aussie yen. , 37 point 79, down 1. 82 . Nejra more on the coronavirus now as global numbers have hit some grim milestones. Surpassed 5000 with confirmed infections topping 10 million. A rebuff to Public Health experts and World Leaders who had bet the pandemic was slowing. Manus indeed. Bars have been shut and Safety Measures implemented in texas where the positive cases have soared a record 14 . The secretary of health and Human Services alex azar warned the u. S. Needs to take action now. It is a very different situation, but this is a very very serious situation and the window is closing for us to take action and get this under control. Manus we are days away from the completion of the first half of 2020, which has made history in a variety of ways. The coronavirus crisis, which is expected to plunge 90 of the global economies into a recession this year that caused market upheaval. Lets take a look and listen to investors, what they have to say about the outlook for the second half of 2020. Ratesh low u. S. Interest and the prospects of a sluggish u. S. Economy through the summer, you wonder if the dollar will weaken and i think that would be good for the emerging markets. Tech believe the big picture is intact for gold and we expect alltime highs. Sectors, the Health Care Sectors have been left behind, which we see a bit of opportunity. We are still positive for the china asia, because we believe there are structured opportunities for the rest of the year primarily driven by economic recovery and secular trends. Currently, we are overweight in health care, information technologies, industrial, and consumer discretionary. Investors on the second half of the year. The first half of 2020 is one that simply none of us will easily forget and for investors, six months of market upheaval. The lady with the data and information is juliette saly. Shes back by technical and popular demand. Good morning. You. Tte great to be with what a first half we have seen. We started the First Quarter with the big plunge in global stocks as the fear trade took over as the pandemic spread around the globe and global stocks ended their first bear market in 11 years, but it was also the shortest bear market on trillionsause you had of dollars a fiscal stimulus pumped in, which sold a rapid saw the rapid rebound in risk assets. The msci index on track for its best quarter for the Second Quarter since september 2009. The s p 500 index, on track for its best quarter since december 1998. Know u. S. Equities have outperformed those of the stoxx 600, the blue line on my chart and what we see in asia, the yellow line. When it comes to individual sectors, health has outperformed over the first half. Communication stocks as we had the working from home trade, real estate and energy have been the underperformers, even though you saw crude rebound from the technical do let dip. Hasother thing the recovery done, it has seen lofty valuations so youve got major benchmarks trading at their highest multiples in more than a decade. Juliette, we were saying we were starting the week with bond and equity markets telling a similar story but in the first half it was quite different. Bond markets have not been buying that risk on at all. Juliette certainly not and it certainly shows the weariness of bond traders. Do you got the yield on the 10 year virtually unchanged from where we saw it in march. You can see that emergence from what you have seen in the rebound in the tech heavy stocks on the nasdaq. Essentially, any selloff is seen as a buying opportunity and that is keeping yields unchanged from where we saw them in march. Bond traders are getting elusive about what kind of economic recovery we are going to see. Forget about the vshaped or nike swoosh shaped recovery. Seem to think it will be a fragmented recovery. Weve got the Bloomberg Barclays index up around 9 this year so that makes its first half performance since 1995, as manus has been talking about. Juliette saly, great to have you with us. Our markets reporter in singapore. News get to the first word and coronavirus cases are surging with John Hopkins University saying total cases have topped 10 million and the number of deaths have reached 500,000. Despite experts hoping for a fade, infections are multiplying more than ever. Over two thirds of americans think the government was unprepared to tackle the outbreak. Protests in hong kong as beijing debates the new National Security law for the city but a top adviser to hong kongs chief executive says people have nothing to worry about as long as they abide by the law. He says residents have to avoid crossing certain red lines. That the great comfort authorities are already taking the one country, two systems into consideration when they draft the bill. Otherwise they could enforce the mainland National Security law to hong kong. Chinese industrial profits rebounded in may for the First Time Since november. Profits rose 6 last month, leaving a slump. Isis a signal the economy recovering from the coronavirus pandemic, albeit slowly. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Lets take a look at events to watch out for this week. Euro area cpi tomorrow. Bloomberg economics forecast headline inflation will accelerate a touch to 0. 3 yearoveryear in june driven by a recovery in petrol prices. Wednesday, the latest fed minutes published and in europe, a Rate Decision from swedens riksbank. Bloomberg says the door will likely be left open for more asset purchases this year. Russia willdnesday, complete the weeklong referendum of constitutional amendments. The changes will allow president putin to extend his hold on power beyond 2024. On friday, it is the number we are all focused on. We get it a day earlier. We will get the jobs report on thursday because it is Independence Day this weekend for the u. S. Coming up, a day of reckoning. A disconnect in growing emerging markets as em equities and dollar bonds have their best quarter in a decade. We discuss next. This is bloomberg. Nejra this is bloomberg daybreak europe. Im nejra cehic in london with manus cranny in dubai. You are seeing a risk off tone in european futures that s p futures recouping losses. The 10 year yield a study. The dollar is actually weakening for the first time in a few sessions. Perhaps after a Coronavirus Vaccine developed by a chinese Firm Received approval for military use. Andon the back foot, speaking of oil, chesapeake energy, the archetype for americas extraordinary shale gas fortunes has become one of the industrys biggest victims of the collapsing energy demand. It filed for bankruptcy and is entering a deal to eliminate 7 billion in debt. Crude is extending its drop after its second weekly lost since april as Coronavirus Infections and fatalities surpassed grim while stones in a reminder the outbreak is far from under control, threatening the demand for oil. Manus is there a disconnect and if it exists, it is in emerging markets. Eva rarely faced such dire conditions, but assets are about to round out their best quarter in a decade. Msci emerging market index as well as dollar bonds on track for their biggest orderly gain since 2009, at odds with the downbeat from the imf projections from mexico, brazil, and africa could see gdp contract by 8 or more. Paul brain from Newton Investment management. Talked the issue we have about from a whole host of analytics. Were in a different scenario now where a major rate cutting within em, which we perhaps didnt see in the last crisis. How does that play to your thinking . There is Something Like 5000 of rate cuts gone through the em since 2018. Does that momentum continue and how do you invest around that . Paul you touched on an important point. Emerging markets always had the interestrate cushion over the years. Developed markets have been eroded the past couple of years. Emergingto look at markets against other fundamentals, supports and therefore, you have to choose carefully as we do with corporates. Get the right issuers and countries. We are looking for better businesses, surpluses in some cases. Countries that have current accounts and fiscal positions that are better than others. There is a difference between countries such as brazil and countries such as hungary. We tend to steer clear of are the large markets which dont have that fiscal or current account support. Brazil, south africa, even turkey to an extent. There are still opportunities. We are still relatively underweight compared to a normal position in a risk on phase. Weve got about 13 in emerging markets and we are looking to get it toward 20 gradually over the next two to three months. Interesting, and i know you have an issuer picking approach rather than just getting access to the beater of risk assets, so i wonder what you make of a comment that one Portfolio Manager made to bloomberg, which is there are still emerging markets, Oil Exporters that faced the dual shock of the covid19 crisis combined with an Oil Price War that is still screening cheap. Do you see opportunities in that space, for example . Paul there are some. I think that is one way of defining what the relative merits of one emergingmarket over another. How do they benefit from a continuation of a low oil price . Wherenk some countries they have to subsidize fuel within the country can benefit, so reduce subsidies and improve their fiscal position. One asian market we like gets influenced by the oil price. It is a market has other strengths. The spread on the yield is more attractive than it was before. Columbia is in market weve gone back into. Throughut very quickly the initial drops in the oil price through february into march, but it is a market we are gradually getting back to. Otherwise, we are not talking too much into emerging markets that benefit from higher oil market. We are trying oil price. We are looking for those who benefit from a local oil lower oil price. Malaysia and columbia, we dont often hear that on daybreak. Organization on a more serious note, it is hard to join the gravity of these narratives together some days. We are struggling in a new and dangerous phase. Eric nielsen says we will struggle to see through the fog and there are mispriced assets. This is broad topline. He said one of the mispriced assets is em and this goes back to your discussion when we talked about u. S. And the world. Eric says deglobalization is the biggest risk to e. M. And that goes back to your theory on steepeners and bonds and inflation, doesnt it . Paul yes it does. It is one of the threats we have gotten the next few years from the higher level of costs of doing business generally in developed markets or emerging markets. And you should have higher yields, steeper curbs as a result of that. Then you look at where we are now, and we are looking at a deflation trend for the time being, for the next six months to the end of the year, and if you look at a broad index of emergingmarket countries, the yield is so much more than that is available in developed economies. Kids screening out as a place for people to invest or park their money. Inh low Interest Rates bonds, cash rates, you are going to get the chase for yield. The difference between the financial crisis and the period after that and this crisis is we are seeing bigger fiscal spending coming through. Larger fiscal injections into economies and it is our theory we will see more of this money feeding through to the real economy this time, not just into Financial Assets or supporting bonds. It will feed through to the real economy which will make a big difference. Nejra just to build on manuss point about eric nielsen. He said was with a more convincing growth trajectory, positive policy reforms underway and undervalued europe isses, he says likely to be a key recipient of the allocation away from the u. S. And emerging markets. You are looking to increase allocation into emerging markets. Is that at the expense of europe . Paul over time, it was in the similar vein, the expense of other markets, gilt market which we are underweight. Neutralize we would be diversifying away from treasuries. If anything, europe i stick to the idea that if they can get if theyight this time, can lead to a significant Investment Plan going forward, we could see europe outperforming the u. S. In economic terms, but it will be touch and go. Theyve got a lot of bureaucracy to work are. If you look at the currency itself, it is pretty cheap against most major currencies, certainly against u. S. Dollar and it is interesting in this risk on, risk off phase that the euro has bounced from its lows and is stabilizing at a level that is still cheap but when it is perhaps underlines the potential for the european economy rather than the threat that is coming through in the u. S. Nejra interesting nuance. Great to get your thoughts. Paul brain, Newton Investment management head of fixedincome. Thank you for your time. Facebook is under growing pressure as more Companies Spending tolash ad force a crackdown on hate speech. We bring you the details next. This is bloomberg. Nejra this is bloomberg daybreak europe. Im nejra cehic in london. The Pakistan Stock Exchange says its building has been attacked in karachi and saying the situation is unfolding. Meanwhile, the police have theed to terrorists in Pakistan Stock Exchange attack. We will bring you more details as we get them with that unfolding situation. Facebook is under pressure as more Companies Plan to force a crackdown on hate speech. Lets get more with the editor for asia technology. Facebook has responded that the advocacy groups are not satisfied. Peter thats right. The boycott of facebook has been expanding. Youve seen Big Name Companies like starbucks, pepsico, honda, backo, planning to cut spending. In some cases, it is specifically about facebook and in others, more broadly about social media. They are concerned about posts that glorify violence, misinformation, racism, and they Want Companies to take more action to cut back on that. Say theye saw unilever would cut back on advertising and facebook. That contributed to an 8 decline in stock and Mark Zuckerberg saw his net worth sink by about 7 billion. This is serious. Facebook has responded. Accompany came back on friday and said they would try to do more. It has been an issue for them for many years and theyve taken a number of steps but as you mentioned, by and large, these companies have not been satisfied. Development, what facebook said they would do is they would enable voting related link to new voter information and they would expand their definition of hate speech. Manus peter, thank you. Also tracking the latest on facebook. Down 8 on friday. Equity futures indicated lower. We are moving into the risk off moment from this morning as covid hence higher. The European Market open is next. This is bloomberg. 49. 50 i found you good job. Now im gonna stay here and you go hide. Watch your favorites from anywhere in the house with the Xfinity Stream app. Free with your xfinity service. Now any room can be a tv room. Stream live tv, on demand shows and movies even your dvr recordings. Download the Xfinity Stream app today to stream the entertainment you love. Xfinity. The future of awesome. Good morning and welcome to Bloomberg Markets the european open. I am anna edwards alongside matt miller in berlin. Markets had for the havens. Towardse edging 1800 as infections for the coronavirus continue to rise. The cash trade just one hour away. Lets get your top headlines for you on the bloomberg l