emily: welcome to bloomberg technology. i am emily chang. market stumble as new cases of covid-19 surge across the country. new york, new jersey and connecticut requiring is interest from hotspots to self-quarantine. florida and california sitting new records and the governor of texas saying a massive outbreak is sweeping the state. this as the white house is

waiting new tariffs on $3 billion of experts -- waiting -- germany, france. the nasdaq is falling. abigail doolittle has been watching this. why the sudden drop? up.ail: reality is catching its has been disbelief for many market watchers as stocks have climbed. the nasdaq just yesterday at an all-time high even as we have had disappointing economic data. and more recently news around the virus hotspots in the u.s. today the information coming out hitting stocks. the s&p 500, the nasdaq down. it is a continuation of the big selloff we had two weeks ago. volatility showing up in other asset classes. bonds themselves rallying. it was a true risk off day.

virus fears weighing on stocks but another factor, the nasdaq 100, i was talking about an all-time high, it is amazing how far it has gone, climbing the wall of worry, now a bit of a pause if the bulls are lucky or if it is a steep uptrend, you could keep it parabolic. for physics that cannot hold. you could see potentially a bad decline. hopefully that doesn't happen. it could mean the virus situation gets worse, but that is a possibility. tech downres a big with the rest of the markets like apple, google. what stocks did you see that felt the most pain? abigail: apple and microsoft weighed on the markets most. 100, 40% weighting.

s&p 500, 20%. the big declines came from virus sensitive stocks, travel and leisure taking a hit. the cruise operators along with the gaming stocks really down sharply. the cruise operators on the day, norwegian cruise lines carnival and -- lines, carnival down. angel, they were cut to neutral. you can see the sox down 70% on the year. the ability for them to get back into waters as the virus situation worsens. down as well. from what i have been hearing this is not a second wave. this is the first wave but a big spike. the fears of a second wave could weigh on this sector in general. seeing that today.

you have been following other indicators that are a sign of sentiment. what are you seeing? we have seen a rally for the haven assets. confirming that possibility sector wise because the new defense this year, hard for me to get my mind around it, the defense is tech including amazon even though it has been at an all-time high. ofstay-at-home, the defense tech and consumer discretionary still -- cyclicals, but the sectors that have been starting to do better a number of weeks ago really taking a hit on the 12%,two weeks, down 8% to and the dow transports index, most sensitive to the virus. that is underperforming on the .ear nearly in a bear market

these new for -- fears reemerge and take a toll on the market as people worry it could provide an additional it to the economy. much --hank you so additional hit to the economy. emily: thank you so much. google now tweaking its data policies after being scrutinized for years. it is planning to let new users automatically delete all of their data and notify current users they can as well. joining us now, derek. how significant are these changes? think they are very significant. it is interesting google chose to make a big deal about it. they sent an email around to dozens of reporters last night saying make sure you get up early in time for this call. we had a call with several

executives. the more you look at this announcement which is them saying new users who sign up for a google account from scratch -- not sure many -- how many people are left, their data settings are going to be to add a medically -- automatically scrub the data google has collected on them after 18 months. but for 18 months google will still target them to ads and help them build new products. this is something we can already do. anyone can go into their google settings and tell google, stop collecting my data. google is trying to find new ways that are in between the always on and always off data collection. they are worried more and more people will do the always off option. giving them a middle ground, google can collect data but sort of speak out to consumers are regulators and say that they are trying to be more privacy

conscience. -- privacy conscious. emily: how much does it have to do with renewed antitrust scrutiny? we spoke with one chairman from the antitrust subcommittee. nod to regulators to all of are not keeping this stuff, and you should take a look at that? >> it is something that as more and more privacy legislation comes in -- we have dates for when the new privacy law can be enforced by government coming up next week. this does allow google, whether it is targeting consumers or the press or politicians, they can point to the changes they have made and say we are hearing what you have to say and we are making changes. google is working hard to run its business by choosing less

data. they talk about how using special ai technology, they may not need to crunch as much data. they said they needed to in the past. they are working on solving these problems and using less data to run their business. at the end of the day, the company relies on data to sell ads and build products. reporterl right, our who covers alphabet for us. he will continue to follow those changes. could we be nearing the end of the email era? slack has a new product that doesn't just allow people to communicate with each other within the same organization but ,ifferent organizations multiple, to collaborate. we will hear from the founders. this is bloomberg. ♪

emily: with millions of people around the world still working from home, smack is that with a new product aiming to transform business, virtual business for good. after four years in the making, slack connect allows employees to chat internally and collaborate with external partners, clients and more. on the line, stewart butterfield. slack has been touted as an email killer and that has not quite happened yet. is this the hope that this is the nail in the coffin for email? >> i don't have anything against

it. this could be a benefit. this is our answer to the question how could we improve email? we have done a great job with internal communication over the years. you have people around the world, corporate, but a lot of the external communication which has been a lot of what people are doing at work happens over ,mail, text messages, whatsapp other apps. the challenge we face is one of the quality of collaborations, alsog to channels, but communications happening outside, being out of compliance, whatever regulatory environment they are operating in. the thing that is unique here, it was a step forward in user experience and security and usually you have to choose between those two. emily: this is something you

have been working on for two years, before the pandemic and slack has been a winner in the pandemic in terms of the uses you have been seeing. investors did not seem to love this announcement. why do you think that is? think it is something we can draw a useful signal out of because of the overall macro environment. but i think the important thing ?or us is, do customers love it the answer is yes. even in our own experience we processconvertible debt in a process shared with goldman sachs and others. that was transformative to how well we were able to pull it off. we have been in normal kind of mechanics of that bond offering.

it was a smooth process. willee that and customers continue to invent new cases. you have been outspoken on immigration issues. you have the president halting guestworker visas. slack is actually based in canada. have you thought about moving to good -- canada for good? offices in15 or 16 countries around the world. i think it is a poor decision, bad for business and hurts the economy, bad for society, nothing good to say at all. i hope it is temporary. i believe it will because it is political posturing as opposed to any policymaking that is aimed at the public good. emily: you have been vocal about blackmentum behind the

lives matter movement and slack has driven for high standards of diversity. are you seeing things internally that you and slack could be doing better and how are you responding to all of this as a leader? >> it is an interesting time to be a leader of the we have all of the challenges of business, the pandemic, record unemployment. but this is important because customers,eople, family. that conversation has been elevated in importance. it was always important to our black employees, but maybe did not have the same emotional power or impression with the broader population. there is a lot more we can be doing and should be doing. 2016, we have

made real efforts to increase the representation of underrepresented minorities probably, but black people specifically in technical roles. because of that we bring up the average for the industry. we are ahead, not great numbers. that is where i put the effort in and we have the results. now we look at the business side , 2% or so instead of the 4% or 5%. we need to make sure this effort is sustained and we are paying attention. emily: meantime we were talking about google and antitrust issues, the european government looking at big tex companies, google, apple, facebook over antitrust concerns. as somebody was build and run a company successfully and competed against the big tech giants, do you believe these companies are stifling innovation?

>> i don't know if i am smart enough to say. maybe if i give you a short enough answer. competition is important for the functioning of the markets. sometimes it requires interventions. there are so many jurisdictions, laws and regulations i am happy to leave these to the lawyers and regulators and not have to solve those problems. butterfield, seo of slack -- ceo of slack. always good to have you on the show. >> thank you. emily: more on the president's decision to halt guestworker visas for workers coming into the united states. we will talk to our next guest about that. ♪

across silicon valley are among the biggest critics of president trump's decision to halt guestworker visas to the united states which are used across silicon valley. one executive familiar with the immigrant experience is ilya fushman, from kleiner perkins and former executive at dropbox. you are a u.s. immigrant along with so many folks who work at kleiner, folks who founded and run your portfolio companies. what is your take on the social and economic impact, not knowing how long these pieces will be extended? >> thank you for having me on to talk about this. it is important.

it is personal not just for me but for our firm and it has tremendous impact on our industry and the economy as a whole. i immigrated in the 1990's and became a citizen in 2003. many of my partners came in on h-1b this is. the most recent funds, the number is between 60% and 70%. these are household names like google and slack, also some upcoming companies. these are companies that are helping immigrants and small businesses, building the next generation of enterprise software companies. overall they are 3 million immigrant entrepreneurs in the u.s. that are creating jobs. if you want to look at h-1b visas, there are about two american jobs for everyone.

butjust direct job creation the heart of innovation is at stake which is why kleiner others joint 323 businesses signing a letter imploring the president and secretary's to reconsider this to reconsider this. the global stage is quite competitive. these visas offer us the opportunity to capture some of the best talent from across the world that has been educated, that wants to have a tremendous opportunity in life and bring them here to create value not just for america but the rest of the world eventually. might lose them and never catch up. emily: a number of immigrants have been sharing their stories online. one of the ones that caught my eye was, do u.s. citizens understand how stressful it is to be an immigrant in this country? how stressful is it?

>> it is stressful. we emigrated multiple times before coming here. uprooting and making the decision to leave behind family and a life, circle of friends and to take a plunge is an incredible stress in itself. the not knowing what it looks like on the ground is even more stressful. these are folks who are motivated not just to succeed but also to create impact which is why a lot of immigrants made tremendous founders. the immigrant experience is hard. imagine restarting your life a in a place youw don't know well and trying to connect with family and friends still abroad. there are many stresses here. we should be making those difficult -- we should be making those easier. folks should want to see the land of opportunity.

land ofhe u.s. as a opportunity. emily: you have been investing in unprecedented circumstances, not just -- health crisis. what kind of new opportunities are you seeing, or how optimistic are you that there will be new moneymaking opportunities coming out of an economy that is in a recession and tens of millions of jobs lost? >> we live in unprecedented ands with both the job loss the economy today, truly unprecedented and historic. my hope is we can get through this. early on in the pandemic, we saw some good leadership from technology companies whether it is helping hospitals with personal protective equipment or rebuild ventilators. we have seen the pandemic change

the nature of how we live our lives and how we work. it has become a constant, clear theme. you have companies like slack, sigma, helping people do this better and tapping into new audiences they had not had before like educators which is a benefit to our society and we are seeing companies that become relevant in these times as people deal with stress like modern health, helping people deal with mental health stresses as they live through these times. sometimes you see tailwinds that are bringing to light to people with companies like cameo. the way we stay sane is we send cameos every once in a while. we are in a strong inflection point now. the world is in a stable state but it has a long time to go. i am optimistic the shift will

create new opportunity, certainly around the future of work. i think we will see where the most -- the more social experiences land. 30 secondsave about left. how different does silicon valley look in a year or two? will companies be leaner and smaller, having to do these layouts and to save for the future? think companies will have leaner. i think a lot of real estate, office space, travel that has been thought of a core part of work we find might not be necessary. i think these companies will similar to operate they do today. we will see changes in physical in layout in more

distributive workforces but ultimately the nature of the work is the same. , thank you fushman for joining us. the owner of the boston celtics and cochair of baincapital coming up. g up. save hundreds on your wireless bill

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emily: welcome back to "bloomberg technology." twitter and facebook continue to take different stands on president trump's posts. twitter put a warning label on a post from the president threatening, quote, "serious force" against protesters in washington, d.c., but the message on facebook remains untouched. i asked the former ceo what stand he would take. >> there are many implications that go into this. they aren't as easy as, we should do x and move on. the company is doing the best they can. one thing that surprised them

thisurprised me was call-out to one of the junior executives in the company, not somebody should -- who should have any expectation that they would should be brought to light as who could be attacked verbally. that was sort of out of control from the white house. emily: you are referring to the president tagging a specific twitter employee in a tweet. >> kellyanne conway knowing on the air and -- going on the air and calling that person out. when that happens, death threats and other violent threats immediately follow. i can tell you that is a fact. when political leaders, geopolitical leaders around the world say anything negative about an executive inside the company, there are immediate threats of violence and it is impossible to tell how seriously you should take those. that sort of targeting of a junior executive that should

have no exit -- expectation of that was beyond the pale. emily: twitter is taking more aggressive actions than they have in the past. do you believe that is the right call? >> i have strong opinions. behind closed doors, i tell people what they are. the reality is, it is easy to go on tv and say they should or shouldn't do this. i won't have to face the consequences or implications are death threats that go along with that decision. i will never sit here and say they should have done that. it is like being a monday morning quarterback where they go, that was a bad call. we know they didn't get the first down so obviously it didn't work. when you are sitting in that seat, all the other complications that go into the decision, and factors that go into the decision, not having to deal with the implications, are more complicated. they are doing the best they can. emily: maybe i can convince you

to share your opinion on facebook. they left the post-up unchanged. they are getting backlash. is that the right call? >> the idea that they will have that willendent board review content and make decisions about it, that is sort of, that strikes me as a punt. like, they won't be able to react in real time at all. the company gets to abdicate its responsibility for taking action. if you are going to have an algorithmic timeline where you decide what you will show people, you have to take responsibility for deciding what sort of advertorial decisions you make around that. the notion you can have an independent board comprised of a group of academics that will get together and make decisions in anything close to real-time isn't going to happen. it was obvious by the fact that they can't decide when they were going to get together and have the first meeting.

that doesn't strike me as a board that will be able to react four minutes after a post goes up as to whether it should be taken down. emily: what do you make of mark zuckerberg's decision that they don't want facebook to be an arbiter of truth, but they do fact-check other speech and they take money from political ads? an arbiter ofo be whether this information is misinformation or not. there was an article out this morning about the fact that some of these climate deniers are able to slide their opinions through, slide articles through that have details in them that fact that across as are not fact, that are misinformation, and it is decided by facebook that those are opinion pieces, so they are going to be allowed to go forward. if you have an article that poses as research containing

facts, it is hard to pass that off as an opinion piece and abdicate the responsibility to edit misinformation. i believe if you are going to provide people with an algorithmic timeline where you decide what they will see, it is a responsibility to decide whether that is misinformation or not. emily: some advertisers are boycotting facebook. do you think that will make a dent in the revenue, or have an impact on how they deal with these issues? >> i don't know the answer. the result from facebook and thats have appeared to be the juggernaut continues, from the really big advertising giants. some falloff in travel advertising that has affected google and probably facebook, but they have so many millions of advertisers, it is hard to see that if you are making a dent. that doesn't mean there won't be

more, so i don't know what the long term impact will be. emily: as trumpet potentially tests the limit -- trump potentially tests the limits of hope companies, how do you to see them handling this over the next five months? >> the company should expect the boundaries will be pushed. they will have to make hard decisions about those boundaries, and one thing we should be sure about is that there will be people on both sides that aren't happy with the decision. that is the world we live in. you have that sort of voice in the white house who doesn't speak, who doesn't mind if that is the way it goes, if it is divisive commentary and people come down on either side of it. companies need to be prepared for that. i'm sure they have constant discussions about, what will we do? and they will see what happens. the action twitter has taken and the overreaction i think they

have gotten for what i would justder to be first steps shows you how these companies need to be prepared to deal with complications and implications they may not have expected. emily: i know you dealt with thorny issues when you were ceo. do you recall anything similar? or is this crossing any ? -- a -- a new line? >> nothing like this where it is the president. world,ely, across the these are hard decisions. there was that instance in which isis was posting photos of all sorts of dashed all sorts of social media about the pilots they had burned alive in those cages and we made a decision in posttime, any account that these photos needs to be suspended permanently. .eems like an obvious decision , i believe correctly

it was the new york post that had that photo as the cover of, the cover story the next day and they posted it to twitter, and here is the image. emails anddo? we get texts. we are not going to permanently suspend the new york post and you are made to look like, how come it is ok for these people to post it and not ok for others? you run into these things when you are running these companies on a regular basis. the thing you have to understand is that you can't just make simple rules and policies that you can assume are going to always apply in the future. there is always some new case that is problematic for all sorts of reasons. you are going to have to go into these things with an understanding that we will always have to make reactions in real time and not just saying, going and looking at existing policies and deciding which apply and which don't. emily: in either five months or

four and a half years, if donald trump is no longer president, do you think that hurts twitter's engagement? >> the thesis that the reason twitter hasn't taken action a or is so great trump for their financial results, i think, is nonsense. the company will be fine with or on the platform. more people are using the platform as a source for real-time news, what's going on in the world right now, and reactions to real-time news. i think they will be just fine, irrespective of who the president is. thered go further and say would probably be some relief if they didn't have to think about whether or not the sensor -- to censor a tweet from the leader of the free world and the

implications following threats based on their actions, would probably be a relief to many. emily: we talked a week into the shelter-in-place and you said you were buying stocks. now that we are in a recession, you have tens of millions of people having lost their jobs. are you still buying? >> i am not as much of a public market investor because there are many opportunities in the private market for my partner and i. we are seeing enormous opportunities in private markets to invest. companies,prise emerging enterprise companies, you can see the valuations these enterprise companies are getting and how they really act like snowballs rolling downhill and gathering more momentum and getting bigger. some of these companies are bigger -- and even optimistic

investors four or five years ago didn't think they would be this big. i'm talking about lots of companies, you can name dozens of companies that are so much bigger than even optimists that they would be. there are a bunch of these companies in the private markets and we would like a lot of those. there is an obvious opportunity that has been accelerated in telehealth, mental health, the wo. thereon of the t are opportunities in machine learning. emily: we are speaking from our homes. jack dorsey said twitter employees can work from home forever. that will affect some of the companies you are working with. is that a good call? does that pose too many challenges? >> it is a very jack dorsey call. , good for him. the guy is nothing if not pushing the envelope on things. national holidays

for his employees, and other actions he has taken. i am much more of a person that likes to be around as many people as possible in the office. the more, the better. so for me, i think it is, it will be more of a, you can work from home and we have the tools to prove you can do it productively and i think cfos will look at travel budgets in the future, saying, do we need to send those 24 people out to the consumer electronics show? i think you will see a slowdown in those kinds of events in the future, because these companies have been just as productive or almost as productive without it. i think remote work is for sure here to stay, it is just a question of, what percentage of the workforce will do with? i don't think it will be everybody at most companies. emily: can you be as productive with all or some of your force

at home? >> with today's technology and computer dictation mechanisms -- communication mechanisms, 100%. five or six years ago, no. today, there are a number of companies that will make it even more seamless and easier and i think the answer is yes going forward. the former ceo of twitter, now founder of an advisor company. coming up, he is leading the charge on reopening the economy in massachusetts. we talked to the cochair of bain , about, steve pagliuca basketball and more, next. this is bloomberg. ♪

emily: welcome to bloomberg television. i'm emily chang. he is best known as the cochair of bain capital and the owner of the boston celtics. steve pagliuca is carving a new role in the state of massachusetts as a spokesperson for the business community. pagliuca has taken a role in fighting the pandemic, helping form an advisory board of executives and medical experts to help the governor as the state moves towards reopening. steve joins us now from the great state of massachusetts. thank you for joining us. what is the state of reopening and what is your view into how well businesses are surviving? steve: so far it is going well.

there was a large joint effort, as you referred to, with the council, the governor's council, academics, business people, medical people, and we went through a huge effort to really and thishe covid-19, was probably 10 or 11 weeks ago, while people were focusing on fighting the virus at the hospital level. we were focusing on, how would we reopen the economy once hospitals were stabilized? the governor and secretary of health and lieutenant governor have done a nice job in massachusetts. they just -- i just saw the data today, massachusetts has the lowest rt factor, 0.66, of all the states. the program has worked well. cochair of bain capital, you have an interesting vantage point. what does the economic recovery --k like to you? is it da

is a day -- is it a v shape? steve: it is probably a series droppedthe market has and that will affect the economy. it is very uncertain. the fed has piled in with $10 trillion the governor is spending, and that has kept businesses going and consumers, even with high unemployment, spending. therefore, it has blunted the economic impact of the virus. hopefully, we can keep that up and get these other states turned around in time for some kind of therapeutics or a vaccine to come along in the first or second quarter. i am more optimistic about the progress they have made with therapeutics and vaccines. there are 100 or so efforts going on to fight the virus around the world and we need a few of those to be successful, and hopefully they will be

successful in short order. until then, we are going to be an 80% economy, and economy shifting. you have seen big increases in any kind of e-companies, getting deliveries at home, they have boomed while other businesses have suffered. without a vaccine, the health risks continue. let's talk about what that means for basketball. how long do you expect the nba to play without fans? how long before that becomes a financial burden? nbae: we are focused at the level on having a great season in orlando. adam silver and the board of governors have put safety first for players, and there won't be fans. they are designing a bubble environment in the disney facility in orlando to keep players and staff safe. focus is onll the

setting up that facility and making sure the players are trained and safe, and we can go back to having basketball, which i think is desperately needed. emily: that might be fined for finishing this season, but is it sustainable for next season and beyond? you have to be thinking about that. steve: we are studying next season, but the focus is on getting this season done safely. iger would say it is about data, not dates. we will see how it comes along. if we get reputed and vaccines sooner, we will see fans back. if we don't, there will have to be adjustments made and we will work those out as soon as the season ends, for next year. emily: we are also in the middle of a social crisis and the momentum in the black lives matter movement. i'm curious how you have addressed bit -- this at the team level and for bain capital, not just through your own, the

way that your own firm is built but also the companies you fund. been extremely disheartening to see the events of the last few weeks. we are redoubling our efforts at bain capital and the nba and the address thel to social injustice. like many people, i thought we were making progress. we haven't made the progress we need to make. no one could watch that video of george floyd and not think that. specifically, bain capital came up with a program to invest $100 million in social justice initiatives over the next 10 years, and we are working to specify where those initiatives would be. it is a major commitment to boston and economic empowerment. we are doing the same thing with the celtics, looking at how we can unite with our players, our

investors, our fans to really make change. -- ien't seen unfortunately grew up in the 60's -- the 1960's and was almost drafted for vietnam. there were protests and people taking to the streets. we got the war ended and i haven't seen the country mobilized like that since then. we deserve to mobilize and get out there, because we have to make change at all these levels. i think it starts with each of our businesses and the companies we work with. we are going to redouble our efforts. we made progress and we are making progress, but it is not enough and it has to be more. thatnk it is an issue isn't a quick fix, but we have to pay attention and really drive change over the next decade or two. the folks at bain capital are united to do that. the whole nba is behind that effort and we must make the

change in this country. to thewhen it comes investing landscape, seems like your rivals are building bigger and bigger funds to change venture and growth equity investing, whether it is blackstone, ppg has a sizable business. lots of hedge funds are getting into private market investing. does this new money know what it is doing and understand the returns they are trying to chase? steve: it is interesting. i remember doing interviews in the 1980's, the late 1980's, and the question was, are there too many people in private equity? too many venture firms? at the time i thought, the industry is growing and maybe there was. turns out the model of private equity and growth capital has worked well. the governance model. and the firms, and bain capital leading the way, driving transformations of businesses.

we have had excellent returns for our investors, and we have created a global firm with 1000 people and $100 billion in capital that stems from the tornings of bain and company really have companies grow again. i think the industry has grown because it is a great business model and there is plenty of room out there, you are seeing many more companies go through many rounds, from venture to midmarket all the way up to large cap deals. geo just raised something greater than $10 billion. that could not have been done 25 or 30 years ago. global, and is no it spans every asset class. i think with the state of low interest rates and how high the markets are right now, people are turning to alternate assets to capture that. ke is a best poke -- bespo

business and people can get great returns. .mily: thanks, steve pagliuca thanks to our tv viewers and radio listeners. this is bloomberg. ♪

>> good evening from bloomberg. we are counting down to asia's major market open. i'm shery ahn in new york. >> i'm haidi stroud-watts in sydney. welcome to daybreak australia. clouds gathering over the global economy. the imf says the corona virus impact will cause more damage. covid-19 infections continuing to rise. the surge is reported across several u.s. states. the governor of texas, warning of a massive outbreak.