Secondquarter rally to 20 . The dow jumping 18 . However, dr. Anthony fauci today, the nations leading disease expert, said cases could soar if behaviors do not change. Fed chair jay powell said getting the virus under control is just as import does the u. S. Economy itself. Abigail doolittle has been covering the ups and downs. What is driving all of this . Abigail behind the rally we had today and yesterday, i think it is just a cushion to the end of this banner quarter. Investors wanted to make sure they locked in the gains. Fundamentally, not a lot changed. There was some fundamental economic data. Little bit more positive, some Chip Companies put up some good quarters. From the factr that there could be some more Companies Boycotting but a bit of a rebound rally. Confirming the risk on mood company 10 year yield higher. Bonds are lower on the quarter. 20 on the up about quarter. Treasuries higher. You do not often see that, where you have bonds and stocks. The same time, Precious Metals higher as well. Really an everything rally, which follows the horrible First Quarter where the bar was low. The Third Quarter, what will that look like . What are you watching for in the coming Third Quarter . Obviously, i am going to be watching facebook. You do have more big advertisers adding their names to this boycott list. Target, a big one today. Micron just posted a big quarter. Thatil micron did put up big quarter. They also beat to the outlook. That tells you that demand for memory chips is relatively strong. Some folks, analysts were worried about maybe a stockpiling of chips. Shares surging up for the day. They make the chips. That could be a positive forward tell. After the bell, fedex reported a very strong quarter. Outlook, efficiencies, margins were better. Also, health care, Health Equipment deliveries. Forwardright now going is so low. The number these numbers were taken in even though they have been taken up a little bit. Nonetheless, the bar has been so low, relatively easy to beat. Lets see if it continues. It will really depend on that virus data. The nasdaq, still pretty amazing, putting in those alltime highs. The chart, a little bit scary. That uptrend, typically those will not hold. Emily talking more virus numbers coming in. Texas posting a Record Number of new cases, almost 7000 in a day. Also, deaths rising about 8 . That is something we will continue to follow and which could potentially have an impact going into tomorrow. Thank you so much for that update. I want to get back to facebook. More advertisers joining that boycott today. The question that continues to be asked, does Mark Zuckerberg have too much power . I want to bring in kurt wagner. Give us the latest. Target added insult to the list, which is a huge advertiser for facebook. It is. I believe last year, target was a top 30 advertiser across facebooks Companies Spending million in0 7 facebook ads. Definitely a notable name. We have seen a number of notable names. But i think really what this comes down to come i have been speaking with a lot of the organizers of this boycott, they keep saying that they want facebook to be accountable and they are saying that Mark Zuckerberg has too much power. These are issues that cannot be resolved because Mark Zuckerberg is not going to give up any of that control. That is why am not convinced that this boycott will lead to the middle ground that i am sure some advertisers would like. Emily you wonder how much it will impact the business. You saieh huge drop on friday but the last couple of days, shares have risen. Is there any indication that Mark Zuckerberg is reconsidering any of his positions, especially his position on how to handle political speech, especially if that speech is hateful . Friday, zuckerberg broadcasting u. N. Day withcast a q a he did employees live. He announced some changes around newsworthiness. If a user like President Trump violates the policy, they would leave it up but start to label it or flag it like twitter does. A lot of people said, look, this is actually the result of this boycott. But the reality is that he has been talking about doing that for the past couple of months ever since employees started protesting it walking out of the company a few months back. What is really problematic here, they are kind of responding to many Different Things at the same time. I think the big story, what you will see from them will be kind of minor. You will not see the big Sweeping Change that i think a lot of these boycott advertisers want to see. Emily we have seen facebook employees walk out for the First Time Ever in kind of a public display of dismay for some of the policies. Is there a sense of continued agitation within the facebook employees community itself . But i think that there is, i dont think it is necessarily tied to the boycott in the way that you might think. The issues they have had for the past month have been very specific to facebooks policies. We saw that tested with those trump posts in late may. I think it would be premature to say that employees are suddenly back on board and really excited about everything facebook is doing. I am not sure that target pulling out advertising is their major concern, as opposed to what is facebooks social impact across the country. Emily thank you so much for joining us. Ago,ime, about an hour spacex launch, a falcon rocket carrying a next generation gps satellite into space for the u. S. Space force. The falcon 9 took off from Cape Canaveral in florida. Part of an effort by the department of defense to upgrade satellites in space. Callingp, the fcc is Chinese TelecomCompanies Huawei and zte National Security threats. Commissionerto fcc jessica rosenworcel. This is bloomberg. Emily the u. S. Fcc has hasmated huawei and cte asignated huawei and zte National Security threats. These are companies that small rural carriers rely on for relatively cheap equipment. Joining us, fcc commissioner jessica rosenworcel. This is basically a final step after a decision that you made unanimously last year to ban huawei and zte from getting federal funds that were meant to expand capabilities across the United States. How critically step is this today in your view . Jessica this is really important. National security at Network Security now go handinhand. The fcc has said that these companies, which are a big part of the worldwide Equipment Market, they are not going to pay. This decision makes it final and clear. Emily huawei and zte have unanimously denied that they are threats to u. S. National security. What is the evidence you have seen that makes you believe that they are . Record our evidentiary is real strong here palm strong here. It is consistent with findings from the executive branch and congress. These are companies with deep ties to the Chinese Government and obligations under National Security laws to make sure they share intelligence with the government when asked. We do not want to have their equipment in our communications network. Emily do you think that todays decision goes far enough . Jessica todays decision is really only part of the puzzle. We want to make sure our nations networks, especially as we get to the 5g era, are truly secure. That it ise extent in our networks now, it has to take some of it out and replace it. Finally, we have to work on methods to make a more competitive and diverse Equipment Market in the future so that we dont tend to rely on these companies that we think posey security threat. Emily this is at a time when we are sheltering in place, quarantining, we need our networks now more than ever. But you have small rural carriers out there saying that this will handicap them because they dont get equipment that they need to get their networks up and running. Networksgetting everywhere in this country is really important. Carriers, it is less expensive. Weve got to figure out how to stop having them use it and also how to give them funds to the extent that it is in their networks today. That is a longterm smart investment. Emily speaking of this, you are working towards the approach that would involve using some sort of standardized hardware. Can you explain how that would solve the huawei or zte problem . Jessica we only have a handful of equipment manufacturers for Communications Networks right now globally. We want to create a much more diverse and competitive market. One of the best ways to do that these virtualize some of wireless networks, specifically the radio access network, between the core and your device. If we can bring more software into that system, it will become more diverse. Thesing on something that United States has traditionally led in the. It is getting a burst in washington, so i think it is important that we invest in that going forward. Emily a few weeks have passed since you and i discussed the president s executive order on social media. Moderating more posts by aesident trump, you have massive boycott now facing facebook. That said, now that the time has passed, i am curious your thoughts on what should happen to section 230 and whether anything will happen to section 230 as part is the fcc is concerned . Jessica i dont have a crystal ball but i think there will be efforts in congress to revisit that law. That convinced social media is frustrating but what we need right now is Congress Stepping in and assessing this law. It is definitely not the federal Communications Commissions job to protect the president from information online. Emily some people say that Companies Like facebook are so vast that they are more like Public Utilities and when a post like that comes from President Trump, there are critics who areeve that actions necessary. Jessica that is absolutely a to haveon, and we need it. But an executive order cant have the fcc rewrite section 230 and cant have the fcc rewrite the first amendment. I think what that means right now is that congress will have to assess this law and see what adjustments it might want to make. We know you are not on President Trumps side of the aisle. We have a huge election coming up. Im curious what policy changes you would imagine a Biden Administration bringing to technology and the fcc . Jessica first and foremost, we want to close our nations Digital Divide and lead the world with 5g deployment. If we do those things, we will begin a good place in terms of digital and Economic Opportunity for all. No matter what happens, fall, those are things we want to focus on. Emily and likely choices for an fcc chair in a Biden Administration . Jessica that is above my pay grade so i will pass on that one. Emily had to try. Commissioner, thank you for joining us. Startup flexe theets trying to diversify 13 trillion diversify market and bring in more investors, teeming with the nasdaq to do it. This is bloomberg. Lex markets is on a mission to open up commercial real estate to Retail Investors. The startup has reached a deal to use the Nasdaq Technology to power its trading platform, which will allow as little as 100 at a time on commercial properties. Joining us, cofounder and ceo drew sterrett. How exactly will this work . Only lex is the first and commercial securities marketplace available to accredited and nonaccredited investors. The lex platform allows investors to buy and sell shares of individual real estate property, giving them the flexibility to create customized portfolios and diversified Real Estate Asset classes. Emily why are you trying to make real estate more acceptable to Retail Investors . Lex drew for the longest time, it has been sort of associated with the ultrarich top 1 . It actually came from a personal desire where i was looking to invest in real estate after working at a private equity firm. The question, how do you have the oldest and largest asset class, one of the largest wealth creators, without a transparent and liquid market . Emily what kind of investors do you expect to use the platform and how does it distinguish itself from some of the others out there . The founder and former ceo of acorn is one of our investors. Really, we are not a fiduciary. System whiching allowed the trading venue. The Stock Exchange in nasdaq. Emily you obviously have a view on where this market is going. Where do you think commercial real estate is going given that we are in the middle of a pandemic, in the middle of a recession, somebody so many people working from home and not the commercial real estate they once had . Drew i think for the most part, the story will unfold. Commercial real estate is known to lag compared to the public markets. I think we felt an initial wave where people are reevaluating certain asset classes. But, continuing to evolve and develop, and only the future can tell. Emily there are so many days in the last four months that i have come on the set, the markets are up, and it does not necessarily make any sense what you see cases rising, you see the jobless numbers. What indicators are you watching to give you some clues as to where the markets are going . Drew for the public markets, ime big believer in dont fight the fed. In my mind, that is the only thing that can truly justify where the markets are today. We are watching where income streams are occurring, what is happening with large institutions, where they are positioning themselves. At the same time, watching where clos and up and where rentals are at the end of q2, which is now, and into q3. Find out overl the next six months where real estate is moving. Emily what are you expecting to see this summer in particular . That do think actually, for the most part, you have not seen that many real estate transactions occur since covid started impacting the United States. Given that real estate is such a slowmoving beast, i think many of the impacts will be felt at the end of the year and into 2021. Emily interesting. Drew sterrett, cofounder and ceo of lex. Thank you so much for joining us. Coming up, major corporations pulling their ads from facebook more of them. We will hear from a major hear from an early facebook investor on what he things about the boycott and broader impact the pandemic will have on Silicon Valley. This is bloomberg. Emily welcome back to Bloomberg Technology. Im emily chang. Major is the latest corporation to join a course of Companies Pulling their ads from facebook. The list now includes microsoft, starbucks, cocacola and many others. Joining us to discuss, early facebook investor, l. A. Part ovi, the ceo of ali partovi, the ceo of neo. We are in the middle of an incredible moment, a pandemic. An economic crisis, a reckoning on social rights. You are an early facebook investor. What is your take on how facebook is handling this now . Ali its great to be here, emily. This is certainly a timely issue and a complicated issue. I grew up in a country, in iran, a country where there is not really freedom of speech. I remember we were kind of scared of what we would say anytime anywhere. Speechserving freedom of is a real important thing, but i think there is a balance to be found. When i look at the boycotts by advertisers thats happening, my experiences that i dont think mark response to pressure, whether from governments or advertisers, but i think he does respond to ideas. I think we need new ideas here. I feel like so far, the debate about facebook has kind of presented a false choice between unlimited freedom of speech or heavyhanded editorial moderation. And i believe there are other options. I believe we should be encouraging facebook to look for how it could preserve freedom while changing the incentives so people posting stuff regulate themselves. Emily now, more recently, mark has doubled down on his position not to moderate posts from political leaders, including President Trump threatening force on the american people. What would some of these ideas or some sort of middle ground be when you have a post like that which some view as crossing a line . Not saying i, im know the solution. Im just saying i think it is possible to have a social medium that does not bring out the worst in people, that brings out the best in people. Was the, the sad thing original mission of facebook was to connect people and bring them closer together. I think while it has done that, in many ways, i feel like we are more divided than before. I dont think that is inherent to social media. I dont think that is an intrinsic aspect of a social medium that it would bring about these behaviors. As an example, take a look at wikipedia. Wikipedia in a social medium, it is entirely created by people. It is not rife with racism or falsehoods. And people are not protesting that their freedom of speech has been taken away. So, it is possible to create a , basically is run on powered by people. Yet, does not have these bad behaviors. Im hopeful about i think people are inherently good. Given the right framework, that brings out the best in people, it should be possible to have a better outcome. Emily interesting. Speaking of another social network, you got very personal on twitter about the president suspending new visas for Foreign Workers in the United States. Obviously being an immigrant yourself, i know you have strong feelings about this. What is your take on, obviously, how this impacts the immigrant community . And Silicon Valley more specifically given, immigrants hugethere and how many Transformative Companies were built like immigrants like google, like tesla, like so many companies, just to name a few. Ali yeah, it is a great question. It is very personal for me. As i mentioned earlier, im an immigrant. Not only did i come here from iran, my twin brother and i were deported when we were young. We in seventh grade received deportation papers. We had to leave the u. S. For a period of time, we were really terrified whether we would be able to come back in and finish seventh grade. That feeling of fear and the human story is what i think is missing in a lot of the dialogue about it. There are lots of Business Leaders who have already spoken out about the Economic Impacts of the h1b visa rules. I feel like Business Leaders ought to be talking about the broader context of the human impact. Because these are not just skilled workers, they are also humans, just like george floyd was a human, just like children in cages arguments. I think the Bigger Picture is that there is an erosion of human rights in america that i think is much worse for immigrants in the long run. Against theeally rule that is holding back immigration but i feel like we should be talking about it in his bigger context. Emily meantime, your company neo is helping to mentor and invest in the top engineering at Computer Sciences students across the country. The students are graduating into an economy in a recession. There are not jobs for new graduates and a world in upheaval. What are you seeing in trends in terms of the pipeline of these students and what is happening at that early level where folks are deciding, you know, what do i do as i go back into the world out into the world . Ali its very your transition from that topic to this reflects what a complicated time we live in, that so much is up in the air and so much is changing about what we have taken for granted. And nor is that more pronounced than for College Students. Where if you are a student, your whole life, you relied on institutions, like your school, your high school, your college. You follow a certain path. And suddenly, whether you are still in college or graduating iand your last semester was shelterinplace, students are generally feeling these institutions they have kind of asied on are not necessarily permanent or as stable as they expect it. I think that is both causing some stress, but also creating opportunity. For me, what im excited about is that is causing a lot of people to think about their path into their own hands and to chart their own destination and to think more independently about, wait a second, what is important and how to get to where they want rather than just following some preset path. For me, that spirit of adventure, of doing something independently, trying something predestineda institutional route is both we are seeingd w more about than anytime before and that is one of the silver linings. Theres a real economy between the students i work with and they are incredible. They are amongst the most Brilliant Minds i have met. It is a real privilege for me to work with people who are, you know, half my age or younger, yet smarter than myself and with so much potential. If you are a student who is amongst the top of your grade, in particular in technology. If you have Computer Science skills and have practice with computer programming, you still not only have jobs, you have more opportunity than ever, i would say. There are plenty of Company Still hiring and there are more opportunities than ever to start your own company. There has never been a better time, i would say, than now to be someone with those skills may be in a small group creating something from your own home or garage or wherever you are. There are other aspects that are interesting. Because everyone is working remotely, because all of the Tech Companies have essentially shut down their offices, its removed the barriers of geography. Now you dont need to live near a tech hub to be able to be employed by a tech company. So, if you have the skills, it is less about who you know and where you live or where you grew up, and simply about if you are able to contribute. On the whole, im quite optimistic. Emily now, meantime, as we have been chatting, the Vice President mike pence just finished up a press conference of the u. S. Public health service. Some of the things he said are so exemplary of the debate our country is facing right now. He said, he urged americans to wear masks but would not overrule states rules on wearing masks. And he believes American Children have to go back to school in the fall. We as parents who have children at home are wondering if our kids are ever going to go back to school. Are facing an inordinate amount of screen time just to get through the day. I know you kind of grew up on computers. You cofounded code. Org with your brother which has been one of the tools in my toolkit and the toolkit of many parents across the country to help kids learn how to code and try to make some of this time at home productive. What would you say to parents who are worried about all of the time their children are spending at home right now and spending on screens just to get through the day . What are some tips that we can use to make that time productive . Ali yeah, its interesting. I was listening to you thinking talking about College Students charting their own path because they cannot rely on their own institutions. He pointed out maybe the u. S. Populace as a whole faces the same thing if we cannot rely on our own schools. What i think is great is there such a wealth of online tools. For code. Org, even before the covid era, weve had an incredible success in adoption. Today, half of all u. S. Schools teach Computer Science, which is mind blowing compared to where it was when code. Org started in 2013. It was less than 10 of schools. And most of these schools are teaching Computer Science on code. Org. The feedback from students and teachers has been amazing. And because it is all an online platform, it is already kind of design for remote learning. Exact experience that a child in the classroom could be experiencing is something they can log into and continue online at home. Even if it was not part of their classroom, any child who is stuck at home during covid19 can go on code. Org, jump in at whatever level they are at, whether it is first grader or a codechooler, and learn to and discover a lover Computer Science during this period. All they need is an internet connection. Emily well, it is certainly something that i have exposed my first grader, my rising kindergartner at this time. Ali, thank you for that and thank you for taking the time to join us. Neo. Artovi, ceo of coming up, private Equity Firm Apollo making a rare move in its latest buyout of tech data, outbidding even Warren Buffett. We will hear from the tech data ceo next. This is bloomberg. Emily tech product distributor tech data withdrew a 6 billion takeover by apollo after shunning a bit by investor Warren Buffett. The financing of the deal is seen as a kind of unusual move by the private equity firm. Tech data ceo richard hume with us with details. Thank you to rich hume for joining me today. Apollo really wanted to buy you. This deal was five years in the making when your stock was still under 60. 145, but then covid happened. How has your strategy changed, if at all, because of this crisis . Wide andwell, we are a broad distributor as it relates covid portfolio so as the pandemic has hit, we have seen a large opportunity within the remote workspace. We pivoted to that and have taken advantage of that. I would say that space is going to continue to be in demand for the coming future because most companies are thinking about changing their footprint and having more remote work through time. So, the companies have moved out, theyle up are up and operational. But i we get into phase of doing the home office for many individuals and that will be a whole new stream of opportunity. I think the long story short, our portfolios wide and broad. Theres always good opportities thin the i. T. Industry. Emilysonali your portfolio is e global with 21 countries you are operating in now. This covid pandemic has caused a lot of worries about what the supply chains may look like moving forward. Wondering what are your venturers saying about this . You work with apple, hp, dell. What are the big concerns about the tightening of the globalization we are seeing . Richard to be honest, there was a little bit of concern when covid19 had broke in china and there were some very large supply chain issues that existed. Since then, the supply chain has been quite stable and we anticipate it being stable for the foreseeable future. There is nothing we see right now that will say there will be issues, with serial issues with supply moving forward. Sonali i want to go back to that point you were making about remote work because right now you,apollo acquiring you have another 750 million to spend. Where is that money going . Richard for the last eight or nine months, we have been really focused with apollo on our strategy and where we want to make very significant investments and ensuring our Customer Experience and our Colleague Experience is the best within the industry. So, we are going to be investing in our platforms which our customers will fully take advantage of, as well as automation, analytics and big moreto make better, informed decisions as we run our enterprise going forward. Digital transformation is a onceinalifetime opportunity of providing both really good productivity but increasing customer in a very big way if done properly. We fully intend to take advantage of both of those. Sonali another thing i love about this deal is that when Warren Buffett was involved in the bidding process, this is a classic example of being outbid by a private equity firm. A problem Berkshire Hathaway has been having for a very long time. Apollo and go with what does apollo give you now . A unique deal in that this is not a private buyout. They did not put seven tons of debt on you. What is the difference of being owned by a private equity firm in this environment for you . Richard first of all, both firms are immensely successful investors and they built great businesses so i am not going to get into the compare and contrast. I will emphasize that our excitement working alongside apollo for the next phase of tech data is really high. For sure in the environment we are in, we are able to accelerate our strategy and investment as opposed to being a public company. We are very excited that apollo is completely aligned with our strategy and all of the Digital Initiatives and projects that we have underway. Berkshire hathaway is an Outstanding Firm as well and in the end, we felt as if apollo was the right decision for us. Sonali thank you for joining me. Tech dataich hume of who just sold his firm back to apollo. Back to you. Emily thank you so much for that interview. We will have much more of Bloomberg Technology coming up after this quick break. Emily netflix will shift 100 million to lenders that serve the black community. This makes it the Largest Company yet to pledge cash to historically underfunded Financial Institutions. To discuss, we are joined by lucas shaw. We have seen a lot of commitments from Different Companies but the approach netflix is taking to this is fairly unique. How exactly will this work . Lucas they are going to take about 2 of the cash that they have on hand at any given time, which is right now about 5 billion of the end of last year. They are going to ship that from one of the many Financial Institutions at which they already work into those that specifically serve black communities. The preferences blackowned or black lent banks. They are working with the credit union which is led by bill bynum, a black ceo. We will see how it goes beyond this. They have pledged about 35 million. They say they will go up to 100 million. I would not be surprised if they increase this the years ahead of it works well. Emily talk to us how about the idea came about. It was really sort of employee driven. Then, take into higher ups at the company who somehow got up to 100 million. Lucas netflix had started late last year, i believe it was october, stating these dinners that combined their executives with civil rights leaders and leaders from other industries where they can talk about how to improve diversity within netflix and combat racism in society. One of the netflix executives who took part was Aaron Mitchell who works in the talent recruiting area. After an april dinner, which was virtual because coronavirus had set in, he started to think about the idea of transferring money that was in netflix on netflixs Balance Sheet and other Financial Institutions to blackowned Financial Institutions. He was inspired by the book the color of wealth which is a book that has made the rounds in recent weeks. That got escalated to the higher levels at netflix. The cfo and then the ceo reed hastings. Once reed was on board, it really took off. How thealk to us about black lives Matter Movement may impact netflixs actual entertainment pipeline. And talent behind the camera. I have been catching up on some amazing netflix titles like when they see us and just mercy. Im wondering if they are looking at the entertainment side of the business to also address some of these concerns. Lucas netflix has a lot of work to do internally. We have seen the company make some really important, take some important steps that will improve society at large from the donation to hbcus to this step with banks, but their Employee Base is the relatively white, both compared to their peers and society. The stuff that they program, they started an initiative called strong black lead to highlight a lot of their titles that either have black people behind the camera, black people on screen. It is something they want to invest a lot more money in. I think you will probably see them try to work with some leading black talent and not just ones that are established like spec spike lee, but finding new talent to try to nurture that and make netflix a home for that creative. Emily meantime, they did make a position,or their cmo formerly of uber, formerly of apple. Also from the africanamerican community. How significant is this . Lucas it is netflixs first black executive in the c suite. Thats a very big deal. There is only so much they can is a once and i think this positive sign going forward, especially the netflix this history not having a very Diverse Group of people at the top of the company. To see howill watch these commitments continue to unfold. Lucas shaw, thank you so much. Bringing us that update. Thank you for joining this edition of Bloomberg Technology. That is all for now. Bloomberg daybreak australias next. This is bloomberg. Shery good evening from bloombergs world headquarters. We are counting down to asias major market open. Im shery ahn in new york. Haidi im haidi stroudwatts in sydney. The top stories this hour. Life in prison. China imposes a security law on hong kong that threatens severe punishment for those who attack beijing or the comets party. The coronavirus marches on with the warning that u. S. Could see 100,000 new cases a day. Ch