♪ >> welcome to "bloomberg technology." i'm emily chang in san francisco. president trump assigns an executive order and directly at curbing the power of social media after twitter added fact checking labels to a couple of the president's tweets about mail-in ballots. more on that in a moment. meantime, markets following the rising tension between the united states and china. the president saying he plans to hold a press conference on china tomorrow after beijing proposed

a new, widely controversial national security law for hong which has been protested by folks in hong kong. investors concerned these actions could destabilize the global economy. i want to bring in markets reporter taylor riggs, who has been following all of this. break down what happened for us. taylor: it looked like we were green and in the clear until the last hour of trading, and then you sort of mentioned other headlines that made markets very nervous. trump said he would have a press conference friday to talk about china. then there's a lot of concern about the national security law china signed that in effect would remove a lot of the economy from hong kong. in the last hour of trading, everything fell apart, but the key theme remains. some of the big companies are still some of the big out performers.

the s&p, which is a market-cap-weighted index, outperforming relative to the nasdaq, which also includes some of the smaller companies. and of course, the russell 2000, which is the small-cap companies, really the big under performer. you are seeing these key themes where everyone flocked to some of the big cap companies to help provide some stability and defensiveness in what seemed to be some pretty ugly headlines in the last hour of trading. emily: we will be following that press conference tomorrow. you've been looking at companies issuing debt, some $1 trillion so far this year, led by companies like oracle and t-mobile. what trends are you seeing? taylor: this story caught my eye because you would think in the middle of the pandemic with all the market turmoil we have seen, how are some of these companies managing to cap the debt market? so far, it only took 149 days

for companies to issue investment grade debt double the pace of last year. this came as the fed said they were going to prop up the companies that have been ravaged by the pandemic. they promised to provide about $750 billion in corporate bond support via some of these etf's. with the fed really the buyer and lender of last resort, companies rushing to take advantage of these record low rates. oracle is the second-largest borrowers so far this year. they issued $20 billion. then you mentioned t-mobile because they issued the third-largest. $19 billion to help fund their takeover of sprint. investment grade high-yield really rallying today. unbelievable, the pace at which these investment-grade markets have come so far. emily: meantime, twitter shares ending sharply lower, far lower

than the rest of the market amidst president trump's threats on social media. we know the president signed that executive order late in the day directed at twitter and facebook and google and other social media companies. walk us through what happened. taylor: twitter and facebook really going to be the two hardest hit companies. we know the president did sign an executive order making it easier for regulators to hold social media companies liable for curbing free speech. this all started after the president and then twitter put up a fact checking link on a pair of his tweets. as you can see, these are sort of the details we are getting from the executive order. it was claimed selective .ensoring emily: thanks so much. the tweets have been flying, as you say, between the president,

between twitter ceo jack dorsey, this after the president signed an executive order that would hold tech companies more responsible for content that face these post and companies with potentially a flurry of lawsuits. earlier today, the president fired back at twitter after twitter added these fact checking labels for a couple of the president's tweets, singling out a single twitter employee. in response, ceo jack dorsey responded by saying, "fact check -- there is someone ultimately accountable for our actions as a company, and that is me. please leave employees out of this. we will continue to point out incorrect or disputable information about elections globally so people can judge for themselves." i spoke with someone from the stanford internet observatory

earlier. take a listen to what she had to say. reactive.ry really interesting to see the trigger. this is not about censorship. nothing was taken down. nobody was put in time out. no tweets were deleted. it's kind of dredging up something that has come up previously and is kind of an whenever the president feels someone has done something bad to him. it is interesting to see how social media companies are handling the president's reach. twitter fact checking him. facebook saying companies should not be the arbiter of the truth, facebook does not fact-check political speech. who is right in terms of how they are handling this? there are different platforms, but ultimately, they are saying they are not going to fact-check political speech

directly, but if -- but facebook absolutely fact-check -- based -- facebook absolutely fact-checks and has been doing so for years, particularly in areas like the pandemic and voter suppression. twitter has taken the approach of connecting it directly to the president's tweets. it feels a little bit like splitting hairs, but again, facebook is also fact checking. emily: is that statement by mark zuckerberg misleading? >> i have wondered if maybe it was a weird cut of a longer interview and something else was going to come out. of facte a team checking partners recognizing that harmful information and misleading commentary going viral on the platform is impactful. emily: what about twitter? they fact checked a couple of

the president's tweets, but to be fair, of everything the president has tweeted, fact checking just a couple? should twitter be doing more? >> i think they legitimately don't want to wade into fact checking every single thing every single politician says. i think you want to fact-check things with weight, information about voting or health. that's because there is some sort of harm that comes from misinformation in that regard. if people have that information about where to go vote, any range of things related to voting or false information with relation to covid-19, that has a direct impact on people's lives. fallbackat about potentially related to a death? >> that cycle is, like, a whole

four hours old now. that did not fall into information about health or voting, so again, these very narrow areas. 12 hours before the tweets were fact-check triggering the entire storm, as you mentioned, latent disinformation was left unchecked, and that angered a lot of people on the other side. there is real debate among the public where there is very divergent views of how much platforms should be doing. uply: all of this is ramping before a critical election. do you think platforms are vulnerable of being politically rep -- politically weaponized to the extent it would undermine any action? >> i think there's a real risk of misinformation going viral on election day or election night and i think it's one of the reasons platforms are areritizing in may so they

not caught flat-footed in november. we spent a lot of time -- over aboutyears now -- talking disinformation, but the problem is information moves very fast. things go viral very quickly. it does not matter who creates them, really. you have the kind of bright line takedown around things like pressure that just do not really apply when it is the president himself or domestic activists or influencers. emily: what can and should these companies do, not just facebook and twitter but also potentially google and youtube would be impacted -- what can these ?ompanies do >> i think a lot of this executive order will be challenged in court. i think there are a lot of aspects that are just not going to sit -- stick. i think they should be considering what their policies should be in-service to making

sure the american people are informed, particularly as we have a critical election coming up. emily: given that we are in the middle of a pandemic and seeing still fight misinformation about covid-19 specifically, how well do you think they are actually doing? >> i think i have had a lot of -- i think they have had a lot of real challenges. what we have seen with this particular pandemic is sometimes expert voices do not know what is going on. we have seen health authorities slow to react. the platforms have unique challenges trying to figure out what kind of expertise to surface, and i think that is the real debate underlying both of these issues. unfortunately, that debate, particularly in the u.s., is

highly politicized at this point. emily: coming up, china has made up its mind about a new national security law for hong kong, defining president trump. we talk about what it all means coming up with a china-hong kong relations expert. this is bloomberg. ♪

despite roaring protests and pressing sanctions from president trump, the chinese government has signed a new security law for hong kong that critics say curbs essential regions in the country. to discuss, i want to bring in a professor of political science at davidson college who has written extensively about china,

taiwan, and hong kong. thank you so much for joining us. this is certainly nothing end of the story, but it's hard to see how these hong kong protesters can overcome the chinese central government, or can they? >> i think it is hard to see indeed. trying to show how difficult it will be for beijing to impose its will fully , but everyone knows the beijing authorities are, one, really powerful, and two, really determined. emily: taiwan is also getting into the fight. the president of taiwan tweeting today, "all political parties in taiwan strongly condemn china's decision to bypass hong kong's throughocess and push today's legislation." what role could taiwan play here?

very tricky and sensitive issue for taiwan because on the one hand, in some sense, hong kong is a little bit of a canary in the coal mine for taiwan. hong kong's status is, of course, very, very different. of thebeen legally part people's republic of china, but under a special formula, one country, two systems, whereas taiwan has been governed separately from mainland china since 1949. before that, it was only governed together with mainland china for a few years in the mid-1940's. before that, it was a japanese colony. taiwan is a very different status. nonetheless, what we know is that the one country, two that was used to unify -- or to bring hong kong into a political relationship with the people's republic of

china was originally designed for taiwan. the idea was that hong kong would be the demonstration case, everybody would see how well it works, and then it would be applied to taiwan. the fact that it has not worked and the fact that it appears now to be effectively abandoned means that the long-standing concept for taiwan's future -- at least the concept held by the authorities in beijing -- is on really shaky ground. emily: meantime, you have the u.s. house passing this bill approving sanctions against chinese officials for how they treat muslim minorities and --ker populations -- weaker populations. what can the u.s. do in the midst of an already tense relationship between the two countries, but what has been up to this point a sort of trade to

?aunt -- trade detente >> i think the options available to the u.s. are pretty limited and pretty weak. matter are facing is a that the beijing leadership has pretty well committed to a course of action and is unlikely to be turned back or deterred. the hong kong issue is one of central importance to the prc, and they thought that as long as things were moving or could appear to be moving in a favorable direction or at a minimum were not moving too quickly in an unfavorable direction, there could be a lot of flexibility and the government and hong kong, the local government, could be held responsible or made responsible for managing the issue, but when

things spiraled out of control and the center stepped in, that to rolls a hard action back no matter what the u.s. does. meanwhile, the u.s. has been sort of on both sides of the 3.5a issue for the past years. we mayrd to say, but have missed the opportunity to stand up for hong kong earlier before the prc had fully committed to this course of action. i guess what i'm saying is tomorrow may be too little, too late. emily: we will certainly be following tomorrow. thank you so much for sharing your thoughts with us. all ride, coming up, we will be talking about a wework competitor -- all right, coming up, we will be talking about a wework competitor and have the

ceo with us. this is bloomberg. ♪

emily: does a co-working space model still have investors' interest? of wework's as one competitors is taking a step closer going to public. joining us now is the ceo of industrious, also cofounder of the company. thank you for joining us. part of your model is making a push toward more suburban offices as more of us work from home and look for options close to home, yet given the fact we are still in the middle of a pandemic and both of us are still sheltering in place, is there really demand for this? >> well, thanks for having me. i actually gave myself a self haircut this morning, which was a very sort of quarantine moment, and i'm very happy i'm

on the phone and not on video. but, look, i think the reality of working today and moving forward is that the companies that navigate success i think will be the ones that give their employees choice, that say, "if you want to work from home, work from home. if you want to come into hq on mondays, come into hq on mondays. commuteant a short option, that is an option, too." putting the power and employee'' hands is the most important prerogative or employers as they solve workplace problems in coming years. the reality is most companies needed a flex space service provider to partner with them in doing that. i think the next few years have a lot of demand and store given

that reality. emily: first of all, i want to let you know that those bad haircuts do grow out, as i do learn after giving my husband one that was terrible. we are past that. ceo's are telling us that their employees may be able to work from home forever. this is a permanent shift. we are in the middle of a permanent shift in how work is distributed and even when we are out of the pandemic, even when there is a vaccine and a cure, sheryl sandberg told me employees could possibly still work from home. are you fighting an inevitable trend? >> no, i could not agree more with that. i never could figure out the right phrase for this, but i think the dominant trend in the workplace for the last 10 years or so has been basically something like the democratization of real estate or the workplace.

instead of saying the ceo lives in greenwich, so let's put headquarters in stamford, really listening to what employees need and want. what covid has revealed as there are lots of different types of employees. there are people who commute two hours every day and people who can walk two minutes to the office. people who have to do five hours of childcare every day and people who are years away from that. as a result, there's very different needs employee by employee. the answer is not to be coercive. not to say "you have to come in" and also not to say "you have to spend the next three years in your living room," but rather to give employees the choice. one of those choices, i could not believe more strongly, should be working from home either all of the time or some of the time or whenever employees ask. emily: quickly, you're working towards an ipo as early as next spring. -- wework's we work

ipo plans fall through. what is investor appetite? we have about 30 seconds. >> i would say going public has always been our long-term plan to date. we are reviewing the business and a pretty comprehensive way, and i think kind of middle of next year, we will have some strategic options, and i think we probably have not gotten to the end of saying, "what does all of this mean for the ?"meline but it seems credible to me. because we do liability-light, asset-like partnerships with landlords instead of signing leases, it seems a good fit for the public market. industriousight, ceo, we will keep an eye on you. we will have you back when we can see you and your hair cut. coming up covid-19 pandemic has

created a unique marketplace for advertisers, testing the limits of what they can do. we will speak with the president of the interactive advertising bureau next. this is bloomberg. ♪

back. welcome the covid-19 pandemic has not spared traditional and digital advertising, and the international advertising bureau predicts that is a phenomenon that will continue through the end of the year. cohen, me now, david president of the iab. who is getting hit the hardest in terms of lost advertising right now? david: it's an interesting question. we have been in the market several times, four times over the past two months to try to

identify who is being disproportionately affected. it is affecting different vertical categories differently, different geographies differently, and different sectors differently. traditional is being affected more than digital. term, somewhere in the 35% to 45% range, digital and the 25% to 35%. publishers are being more affected than programmatic search, social, and audio is actually faring quite well. emily: so, talk to us about who and what companies and sectors appear to be the most resilient. i know there are some unexpected winners here. david: the name of the game, the word we keep on hearing his agility, the ability to optimize quickly, put something in

market, see what works, and be able to get out or adjust accordingly. those are the folks that seem to be winning. that's search, social, podcasts, and audio. the ott connected television area, we have seen explosion of toys from a consumer standpoint, lodges of peacock and hbo max, etc. consumers are flocking there, and it is actually the most resilient of any kind of digital format. this is the streaming revolution. everything has been accelerated as it relates to the covid-19 pandemic. let's talk about the trends you see in what remains of ad budgets. i am reading breakfast cereal companies, of all things, are spending a lot more. david: there is a wide range. as you would imagine, we tried

to get a sense of which categories were being disproportionately affected, and the obvious ones are travel and tourism, brick-and-mortar retail, restaurants, and auto. there are still a lot of categories that are relatively unscathed, pets, baby, telco, gaming, beer and wine. specific other kind of advertisers that don't have any problems selling their products. this stuff is flying off the shelves so they don't need to advertise. it is an interesting dynamic. it changes week by week, but we are seeing broad general characteristics of travel retail, ric brick-and-mortar, restaurants, auto the worst off, and at home usage not doing bad at all. emily: when do you see advertising returning to normal, given the economic fallout could last for several years?

what does that new normal look like? david: we try to gauge the immediate term and q3, q4, as well as 2021. 35% tois probably in the 40% off expectations range. we are cautiously optimistic as sports comes back online. we think there is going to be a pent-up demand for live sports unlike anything we have seen in the marketplace before. we think, based on what we are seeing from the marketplace, the back half of the year could be off only 15% to 20%, or even better. 2021 is another story. we go through this kind of upfront television advertising process typically, and i think that's being rewritten as we speak. initial indications were that it was going to be off by about 20% . it might be slightly more than that. our guests is the television

marketplace is going to take a page out of the digital playbook and be just in time as opposed to having to commit a year in advance. the word of the day is flex fility and agility -- lexibility and agility. debate coming a up about what's fair and not fair in political advertising, and that's going to be a significant portion of income this year for a number of social media companies, for google. what trends are you expecting to see when it comes to political advertising and how the bite and trump campaigns spend -- biden and trump campaigns spend? ford: digital has been good a long time, targeting characteristics is one of the at.gs digital is very good getting folks to lean in, donate

if necessary. everyone comes to the table with a good understanding of who is their base, who are the undecided, how did they leverage digital technologies to reach, were read, and bring folks over to their side -- reach, recruit, and bring folks over to their side of the table. i am certain that we are going to see that this year as well. know: obviously, i facebook and google are among your members, two companies that we cover almost every day here on bloomberg technology. it's interesting, on one day you see facebook getting love from investors. on another day, it's google. do you see that one or the other is better positioned during the pandemic? march.w add declines in facebook said that was stabilizing in april. is google or facebook in a

better position here? david: the folks who are able to take creative, adept messaging -- that's one of the greatest challenges for marketers, how does it make sense in the environment in which they are advertising. i think both google and facebook have complementary offerings in that space. google has a phenomenal search offering. facebook is a fantastic social platform. both give you the ability to add scale with very little friction. go to the market, read the results, and optimize it quickly. i don't see one benefiting over the other. i think both will be beneficiaries. iab, thankd cohen of you so much for joining us today. appreciate your insight. coming up, we have more of "bloomberg technology."

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emily: new jersey has been ravaged by the coronavirus, taking the lives of 11,000 people in the state. earlier today, bloombergs david westin caught up with governor phil murphy. they talked about the dangers of reopening and how to prevent more loss of life. take a listen. >> i hope what we can offer whichis that the basics, is, number one, public health creates economic health. as much as we are chomping at the bit to get everything open again, if we transpose these ieps or if we jump the gun,

think we throw gasoline on the fire. we have been deliberate. we say it is the time that data determines dates. as much as we don't want this to be abstract, in fact, we eulogize a number of people every day, calling families every day to make sure it stays personal, having said that, this is moneyball. this is what the data tells us and what the data allows us to do. i hope we get that right. to just about every one of those briefings, you also give credit to people in new jersey for complying with the restrictions that are not easy to comply with. people are chomping at the bit in new jersey and elsewhere as well. compliance?nsure it's going to get harder. >> it probably is, but i have to say both individuals, david, in terms of staying at home, wearing face coverings, as well

as businesses, both big and small, the compliance has been overwhelming relative to any expectation. clearly, as the weather has gotten warmer, as the clock has ick, as folkst have seen other states that are less hard hit the new jersey and new york, that's all human nature, and i get that. are there more folks today than there were a month ago saying, i'm going to open on june something? yes, there are, but i will say this. the other point i would make is that we have started to open up. we recognize that we need to take steps. we are going to come over the next few days, announce a whole lot of steps. david: what about the politics in new jersey? we have seen a fair amount of politics involved where people are really demonstrating. what have been the politics in

new jersey? do you have politicians backing you? gov. murphy: for the most part, we do. there have and some demonstrations, nothing like michigan, but there have been pretty regular demonstrations, and i don't begrudge that. we prefer that folks don't congregate. that bothers me more than the demonstrations. we have had a very good, across the aisle, give and take, generally strong support. .e need laws to be passed we need money to fill up the enormous budget hole that we have. so far, so good. there are some folks who are going to go off and do their own things, but for the most part, we have been in a good place. david: one of the tricky things is reopening the schools.

fortunately, it's the summer, most of us are not going to school anyway, but you've got the fall coming up. a lot of uncertainty about that. what are you considering about how and when to open your schools? gov. murphy: we have promised folks by mid june, we are going to give them guidance, at least on pre-k through 12. we are talking to the universities and higher ed community constantly as well. my bias, david, is strongly that we get back to school. we have done the virtual stuff as well as any american state, but that's for a whole host of reasons, including mental health, the richness of the experience. i want to see us back in school, but it's got to be a new normal. emily: new jersey governor phil murphy with david westin. meantime, he threatened to do it , tweeted about doing it, and in the end, he did do it.

the president signed an executive order aiming to curb the power of social media companies. minutes ago, we have seen the full text of this executive order. joining us is bloomberg's been brody. i am looking at the executive order in front of me. the president saying twitter, instagram, facebook, and youtube wield immense power to shape censor ornts, to disappear information. the president calling this censorship. tell us more about the details here. trump is really targeting the companies by going after the liability protection they enjoy. there are two they enjoy. one is for content they leave up, and the other is for user content that they take down it is called good faith.

is basically pushing the federal communications commission to define good faith and bad faith, and once that gets narrowed and defined, companies could face a lot more liability, particularly for the kinds of things they are taking down, which is, in a lot of cases, the things people allege are silencing them. emily: what can the president actually do here? we have this executive order. encourage ato reconsideration of the communications decency act, fair,n 230, which, to be came into law in 1996, when mark zuckerberg was still a child. how would this legally work? think there are huge questions about that. the one thing, the fcc is an independent agency.

it does not have to take orders from the white house. also does not grant rule-making authority to any agency. and then you get into much bigger constitutional questions about free speech. if he is really doing this to come back at twitter because they fact-check him and that will enrage him, that is unconstitutional and is probably going to get us thrown out despite the kinds of bureaucratic levers that they are invoking here to get this done. meantime, you cover lobbying by these tech companies in washington. they have been lobbying and spent more on lobbying than ever. how do you expect the companies to fight back? have they been fighting back? this is not the first time the president has claimed they are censoring him. be reallyect them to participating in the fcc process

, if the fcc does pick this up. there are some pointers to the federal trade commission as well. but a lot of the action is going to be in congress. at the end of the day, they make the laws in this country. trump seems to forget that a little bit. i think the companies are going to be really doubling down there. one thing that's interesting is the order that tells the justice department to prepare legislation that congress might want to adopt to try to affect these kinds of things. it might not go through in this political environment, but i think kicking it to congress is a sign of where the fight is going to be, and, of course, you have the courts. emily: you will be following the twists and turns for us. ben, thank you so much for breaking it down. still ahead, we are going to head to hong kong, where protesters continue massive demonstrations against china's tightening grip.

we are going to have a live report on the situation and what is at stake.

emily: president trump has announced he will be holding a news conference about china on friday, after beijing passed a sweeping national security law that critics say curbs essential freedom in hong kong. kong,g us from hong bloomberg's stephen engle. we know protesters have been filling the streets where you are. we are still far away from the actual implementation of this law. beijing has approved it.

tell us the very latest. stephen: the latest is china defying the threat of retaliation for china passing this security law. the national people's congress in beijing passed that laws late yesterday. of course, you have covered the npc before. it is a rubberstamp legislature. when china came with this announcement that was going to have the security law for hong kong late last week, it was a foregone conclusion it would be approved. 2878 to one. one abstention. it was passed through. it won't be implement it yet because the mpc is standing committee, which has to -- the npc standing committee has to formally draft the law and approve it, so we could be months away before hong kong gets this sweeping law implemented.

again, there has been a chorus of support and derision on this law across different swaths of society here in hong kong. emily: the u.s. and china have been in a trade that can't, but it has been complicated by the covid 19 pandemic and this. what kind of response should we expect from president trump tomorrow? stephen: it is an election year. it will be interesting. trump's priority is not either or, but it will be an interesting decision to see what he has to say at that press conference. tookrump administration the significant step up saying it would no longer certify hong kong as being politically autonomous from china's bombshell -- autonomous from china, the bombshell coming from mike pompeo earlier this week. that could lead to the white house revoking the special -- that could lead to a number of

sponsors, including revoking the special trading status the white house has with hong kong. it could make hong kong no different on the trade front than any other chinese city and could threaten hong kong's role as an international financial hub. but there are other options. he could freeze assets of key communist party authorities. he could put up tariffs on hong kong exports, granted it is a smaller percentage of chinese exports that go through hong tog, 12% last year compared 42% in 1992, but still, it is a much bigger pie. 12% is still a sizable amount. is saying beijing's move was a huge mistake and they will be held accountable, so let's wait to see how much political capital donald trump wants to put in hong kong. emily: when it comes to the protests, does it feel like deja vu to you, and echo of the protest we saw last year, or does it feel different this time? it feels different

because we are coming out of three months of coronavirus log down-and-in asked him -- lockdown and an absolute decimation of the hong kong economy. this is anecdotal and just kind of getting a pulse check of the city, this seems to be -- there seems to be less widespread support. the hard-core support is still there. the dex media founder was on bloomberg yesterday saying we have to emigrate or fight. they are emboldened by the white house's move, but the broader support, we are seeing a litany of different figureheads, including the richest man in hong kong coming out in support of this hong kong national law for security. he is saying it is china's right to invoke such laws. other people, the hong kong property developers association was out. i number of prominent people have been coming out saying, we need this. after the coronavirus decimating

the hong kong economy, we need stability. but there's always going to be people on the street saying, we need to preserve our freedoms. but the size of the protests are definitely smaller. emily: all right, bloomberg's stephen engle for us in hong kong. i really appreciate it. that does it for this edition of "bloomberg technology." we are going to cover all of this. will be across the president's news conferences. stay tuned. bloomberg "daybreak australia." -- "daybreak australia" is next. ♪

shery: good evening from bloomberg world headquarters. i'm shery ahn in new york. haidi: i'm haidi stroud-watts in sydney. australia."daybreak china approves new security laws for hong kong, defying u.s. criticism and insisting they ensure fundamental freedoms. president trump will comment on friday. u.s. stocks finishing the session lower