Investors seemingly optimistic that the worst of the economic distress has peaked as states continue to reopen across the country. Meantime, disney presenting its plans to reopen disney world in florida on july 11. We spoke with Disney Ceo Bob Chapek. Disney shares ending slightly up. I want to bring in abigail doolittle, who has been watching all the moves today. What happened today . Abigail this year has been all about volatility. Earlier this year, that huge plunge. We had the huge rebound rally. Earlier at one point, the nasdaq down more than 1 , the faang index down for percent. On the close, looking at green, but with notable divergences. The rotation onto some of the beatendown areas. Take a look at that faang index. Down day, down about 0. 6 . Rising tensions with china, around hong kong, the china index down about 1. 2 . Interesting divergences on the day. Theof this does speak to volatility i was mentioning. Nasdaq,or the relatively elevated, the key 30 level. But nonetheless, higher than the key level, suggesting that some investors are bracing for more of a sector rotation out of technology. Isly the sector rotation, this sustainable . Abigail that is the trillion dollar question. It has been all about the stayathome stocks, the faang stocks, the biotech stocks. More recently, the cyclical stocks such as the banks and industrials. The yeartodate charts comedy bank stocks up. Banks deeply in the red still in a bear market. It is unclear whether it is sustainable. Some investors worry about that, wonder about that. It would be healthy to see those cyclical sectors really move up because it suggests that investors are worried about the economy reopening. Important sentiment piece. They make a caps, those are some of the most beloved stocks out there. You can see, over the last two months, huge gains. If all we were to start to see the money go into the banks, into the industrials. Sexy than some of these technology names, it could be a problem for sentiment. Anotherets talk about elon musk company, tesla. Shares up more than 90 this year despite production issues at the factory because of the shutdown in the middle of a pandemic. Abigail it is pretty incredible. This stockne really on a roller coaster this year. Climbing right out of the march lows. Itave to believe that behind is optimism about the electric vehicles we have always had. Witha look at those gains them having to talk about cutting pricing on some of those models, 2000 on the model three. Again, teslat, outperforming the faang index, speaking to the degree of, i would even say euphoria over elon musk and what he is going to do with this company. That teslanow investors are all very passionate about the stock. Headlines coming out of boeing. Its 737 maxing production. The plane that had a couple of deadly and devastating crashes. Againill begin production at their factory in washington. Shares up slightly after hours. Boeing is the other company in addition to spacex that has theen money from nasa for mission. Laying out its plans to reopen disney world in florida on july 11. Epcot center will follow on july 15. I spoke with Disney Ceo Bob Chapek earlier today. Bob we always said we would not open up again until we thought we could do so responsibly. We got some learnings from shanghai, the dining area we opened just a few weeks ago. How you do social distancing, that is the key for us, the six feet social distancing no matter whether it is people and restaurants come on main street, we are confident we can do that responsibly. Emily universal is set to open up on july 5. Why a month later . Bob we feel this is the right time for us in july. We have a different situation for universal because we are much bigger, we have a different and it willion, take some time to take the millions of reservations we have already got and switch that over to a new reservation system. Lets talk about some of your learning from shanghai. You have been doing these temperature checks. Have people been turning up with fevers and being turned away . Have you gotten to that 30 capacity yet . Bob everything has gone extremely well in shanghai. I must complement not only the staff, but the guests. It takes the chemistry between both groups to make this work with social distancing. Us, the learning is that we have stuck to her limitations we have placed on ourselves. Guestsup to about 20,000 now that we take per day. We are maintaining the social theancing guidelines that government has placed upon us. We hope that we will be able to grow with it and really please even more guests than we can today. Emily a sense of which resorts will be next and when . Downtown disney in california, what about hong kong, tokyo, paris, and disney world in florida itself . Bob as you know, they all are in areas with different situations. Different situations in terms of the covid19of pandemic. Providing some level of assurances. We have to take our cues from each local government. We say at disney that we are really just a citizen of the environment we operate in. We really do follow the lead of the local governments and we overlay what we believe is good common sense from the disney standpoint. Ceo bob chapek. Coming up, disneys vast library of content has been the envy of many streaming competitors. We will talk about the new content kid on the block, hbo max. This is bloomberg. Another contender entering the streaming race. Launchedrner media at t max today with a lastminute deal to distribute the service to comcast users, and also snapping up an old favorite, friends. Discuss, like shed partner rich. I know you have strong feelings. How well positioned do you think hbo max is . That what people forget is there are 32, 30 3 million existing subscribers to hbo. Zero laza started at disney plus started at zero, at an amazing first day, but the reality is that hbo is starting with a base of 32 millionplus subscribers. They have been around the 30 million level for years. The question, how do you take this from 30 million and grow it , 70 million . I think you have to do that by making it rotter. Intellectually highbrow, premium content, drama. When you look at the diverse content, from catalog tv shows like friends, big bang, rent and stimpy im sorry, rick and morty. Content thatrse will give existing subscribers more to do. You are not paying anything more than what you are paying for hbo before. Getting ayou are just heck of a lot more than before. Emily but that certainly does not compare to what disney plus has now after less than a year of existence, and far less of what netflix has. To do you compare hbo max now the folks that are already in this market, of course there is netflix and disney plus which have been doing quite well . Plus, you are talking global numbers versus just u. S. Numbers. The hbo market is still a very large domestic number. Service in hbo that is far broader than disney. Disney, most of it is a relatively young skewing service which is why it is priced so low. Hbo is trying for all forms of content. It is a very big bet. When you look at what john has been saying about at t, this is their future. Hbo max is their future. I do want to say weapon, but at the engine of growth. They went out and hired jason from hulu, who basically built today. To what it became it is fun, everyone likes talking about streaming wars. This entrance, that entrance. It is far less about netflix versus hbo versus disney versus amazon prime. All of these services are taking time and attention away from linear tv. Remember, there are 80 Million People still spending upwards of 100 a month for linear tv. Sports will come back. But if you are not a sports fan, all the best content you can get a la cart from these streaming services. Insaw a record cord cutting q1. I think you will see 8 million to 10 million for the full year. So many people out of jobs. I think you will see an alltime record cord cutting. It is a lot cheaper to sign up than tomax and netflix have a cable subscription. Emily lets talk about the content pipeline. Restartedy has not film and tv production. It seems like the country is starting to reopen but there could be a second wave. We dont know how long we will be in this situation. How does that impact hbo max and everyone else, especially with this new service just getting off the ground . Issue for is an everyone. I wish i had a crystal ball and i could tell you how you do traditional film and tv production. Thronesd game of finished its run because i dont know how you would film a new season of game of thrones when you talk about shooting in multiple countries, massive cast, lots of extras. We are going into a new normal. I dont know how you do that. Obviously things that were on soundstages that a relatively small Group Productions are easy. Bachelor, iike the have no idea how you do things. Ike that i will go back to your question, these Services Just launching, the good news for someone like hbo max and the broader warner bros. , there is a massive, massive library. Of big bangepisodes out there. 200 60 episodes of friends. There is a lot of library content. They roam the giving you a sneak peek of what is available. They are only giving you a sneak peek of what is available. When production restarts, it will help all of these services. Be i think the library will a big advantage. Bang has like big never been available commercial free before. This is the first time you have been able to binge 12 seasons of big bang. Big asset. Will be a Companies Like apple are out there hunting for some library content. You had lucas shaw right about that on bloomberg. Everyone is looking to bulk up on library now. I think that advantages what warner bros. Is trying to do with hbo max. Emily lets talk a little bit about some of the other streaming competitors. That we are going to have to move on because we have to get to some breaking news. Rich, thank you so much for your thoughts. We will continue this conversation off air, as i know how much we both love to talk about this. Thank you ford, joining us. The house now has enough votes to pass a bill on sanctions regarding the new security law in hong kong that has been drafted by the chinese Central Government that has been so controversial and big knighted new protests in hong kong. We will continue to follow that story. Thatime, space x canceling plan to launch, moving it to saturday. We will have more on that coming up. And we will be talking quickly about instagram, giving more autonomy to its creator. This is bloomberg. Emily instagram will now let creators profit directly from their videos, help popular users generate more income during the covid19 pandemic, and moving the service into stiffer competition with youtube. Joining us to discuss, sarah frier. Talk to us about the new guidelines. Sarah basically, someone on instagram will, for the first time, have the ability to make money off their audience directly from instagram. They will have a tipping feature on live videos. Life video views have been up 70 since the start of the pandemic shutdown. Your audience can give you . 99 or 2. 99, little tips to compensate people doing life fitness tutorials, life cooking tutorials, live performances. There is also the high gtv videos the igtv videos, basically instagrams youtube competitors. 55 they are going to share of the ad revenue on igtv with creators. That will happen once you click through. This is a really big step for instagram. It will help them get more revenue over time but also help this whole influencer industry which has been heard by the covid19 pandemic. Emily what does this mean for is where a lot of the creative is happening . Sarah it will certainly be good competition for them. Instagram tv never really took off as a youtube replacement. I think the bigger threat to youtube has been tiktok. I think a lot of youtube creators a lot of instagram creators in the past have felt pressure to have a youtube presence as well. They thought, instagram is where but i my brand deals, might as well have a youtube as well, a patriotic as well, a patreon. But this will become less necessary for people on instagram to have a youtube presence. Emily lets talk about the tiktok threat, which has been rising. People calling it the pandemic winner over the past few months, not instagram or youtube. How much more powerful do you think tiktok can become, and can mindgnificantly dent the share of instagram . Isah i think tiktok becoming increasingly powerful because it is escapist entertainment. It is this phenomenon of right now. The tough thing for tiktok will be making sure it has some longevity beyond this moment. They have been starting to do tv deals for their creators, trying to do other ways of taking advantage of that ecosystem. Already, you are seeing a lot of tiktok stars migrate over to youtube and instagram as well. I think it is becoming a more crowded space. You are not just a tiktok star anymore, ura social media star you will are a social media star. Up, Mother Nature steps in. A historic spacex launch is scrubbed and pushed to this weekend. This is bloomberg. Emily welcome back to bloomberg technology. Today was supposed to be the date nasa started sending astronauts back into space from u. S. Soil, but Mother Nature had other plans. It has been pushed to saturday. Astronauts will have to wait until then to hopefully make history. Anderson, now is chad managing partner of space capital. Good to have you back here. What does this cancellation or delay actually mean . It is just date blip, right it is just a blip, right . Minutes. Y got to t 14 it was the weather that held them back. You cannot do anything to control the weather. Taking it down and will try to get it on saturday. Emily were standing by for the astronauts to disembark. They have to do several things before they can exit the spacecraft. We are waiting for them to come out. A lot of spectators there, the president , his family appeared President Trump the president , his family. Lets talk about what this means for the industry. Obviously, it has been nine years since nasa sent an astronaut into space from u. S. Soil. It will be the first time a private company is doing so and the first launch of its kind for spacex. Chad this is a big deal because it represents the future of human spaceflight, for nasa, for spacex, and the broader commercial industry. Capsule, one of the most advanced spacecrafts ever built. It is also one of the safest. As you mentioned, a lot of firsts. First u. S. Launch since 2011. First new spacecraft since 1981. Crewedrivately built spacecraft. Importantly, this will give us an alternative ride to space. Currently, you can only go with the russians. Seat. As 90 million for a it is a whole new economy of space travel and potentially a future of Space Tourism. It may not be as expensive for nasa but it is still incredibly expensive for us regular human beings. Does this open a new era of Space Tourism or is it going to be for most of us, out of reach . Chad without a doubt. For the first time, it has made space accessible to the rest of us. They are doing the same thing now with human spaceflight as well. With lower cost, you get more access and more participation. With that, you get more competition, and competition is good because it leads to more innovation. We have seen that play out a little bit over the last 10 years. All of us who have had an interest in space and wanted to go ourselves, for those of us who want to participate and start new companies, and for those investors looking to get involved there is now room and a clear path for all of us to participate. Emily lets talk about the competition. Boeing has gotten funding to do shuttle missions. There is Virgin Galactic and a lot of Companies Working on this. Talk about the Competitive Landscape and how much of a chance these other companies have of catching up to our spacex is today. Chad it is undoubtedly a success. They were hoping to get to space in 2017 and they are obviously a little bit delayed, but not by much. When it comes to the commercial spacex goteing and the contract. Boeing was supposed to be the safe bet. Spacex was an up and comer, not a lot of track record to speak of. If spacex can do this, you know, it is a great way for us to save the money but lets also do a contract with boeing because they are more likely to get us to space. Fast forward 15 years, spacex is on the pad. They did a full rehearsal today. Get to thefailed to space station in their demo one mission and that sets them back a year behind to sais a year behind spacex. It is not just a lower cost but it is also innovation and the vast number of tests allowing spacex to really advance what we are doing in the space industry. Emily Chad Anderson of space capital, we will be watching with you on saturday, assuming it all goes to plan. He was a much for joining us. Thank you so much for joining us. Biotech companies have been persistent in their vaccine trials. The company saw an 18 jump in shares. We spoke earlier with the ceo about the timeline for the vaccine to be available. Like the other vaccines, we are all going as fast as we can as the u. S. Government set up a warp speed program. Our expectation is phasebt we will go into a two trial and the phase two trial will be designed to be a phase 23 so you can see efficacy and the expectation is to do it in multiple countries. Australia, u. S. , and likely a couple of other countries in august. November, we would expect to see advocacy. That could lead to governments to conclude the vaccine might be deployable, at least under emergency use authorizations. If that is the case, by the end of the year, vaccines should be distributed to the Frontline Health care workers and on down toward people with folks people who are folks at risk. That would be the fastest timeline. What is the advantage of the protein approach . Stan it is an approach that has been proven for some time. This is not our first coronavirus vaccine. It is actually our third. We went we made one against sars. It is the production of a protein found on the surface of a pathogen such as coronavirus or flu or ebola. Our Production System is the same for all of these vaccines and it has been shown to be. Ffective at preventing disease actualllenge it with the virus and it shows protection. In ebola, for instance, we did five or six nonhuman challenge models and showed the very low doses, you can have 100 protection. The advantage of that is you can get very low doses so you can make large quantities. Inlions of doses manufacturing facility. We Just Announced an hour or two ago, the acquisition of a manufacturing facility in the Czech Republic that is being finished up this summer that has the capacity to produce over 30 doses of vaccine. Our proteinbased platform allows us to make lots of vaccine that has been shown to be safe in a halfdozen different virus disease models. A 170 million acquisition. Manufacturing is a Sticking Point for a lot of companies. Stan, what happens if you are not first to the market . If this acquisition mistake is this acquisition mistake . Ben there is not going to one coronavirus vaccine. There is no one company that has the scalability to make a vaccine that is required. Of the multiple approaches, there will be a few vaccines that are deployed globally. It is needed. First, we are not everybody has to be safe because you are giving vaccines to healthy people. It has to be safe, first. Secondly, you have to show that it is effective. There will be Different Levels of advocacy. Third, it has to be scalable. Haveis scalable and now we the physical capacity to make it scalable into the billions of doses. Novavax. E ceo of how do chinese and american investors feel about pouring money into crossborder startups in the midst of rising tensions . We will talk to an investor, next. This is bloomberg. U. S. China tensions continuing to escalate with Chinese Government issuing a new draft security law for hong kong. Meansite house indicating citys special trade status in jeopardy. We are joined by edith young. Thank you for joining us. I know this is personal for you. You were born and raised in hong kong and your parents are still there. What is your take on the Current Situation . The Current Situation is sad to watch. For the past few days, so many riot police, police cars. Tried tohe protesters surround Legislative Council because they are upset about what happened last week. What is going on if you think about it, with any sanctions against hong kong [indiscernible] trade between hong kong and the u. S. Much peoplew test today or tomorrow theppened last week law passed with the Standing Committee to work out the security legislation. The details are not out yet. The fact that the Senate Committee meets every two months , we really would not see any maybes until late summer, august. It is too early to say what will be the impact but everyone in hong kong is super upset. Emily the u. S. House has enough votes to pass this sanctions law and take it to the president s desk. Meantime, you have the White House Press secretary send a president is displeased with chinas efforts and it is hard to see how hong kong can remain a Financial Hub if china takes over. What do you think the implications are for trade between the u. S. And china and specifically the special status that hong kong enjoys . General, thek, in whole situation is putting hong kong in a tough place. With a particular focus on trade. View hinese point of we do not want to see this happen to hong kong. At the same time, if any sanctions happened to hong kong, it will challenge the fact that we have been a Financial Center of asia. View, the. Point of u. S. Wants to do it the u. S. Way. Protecting the markets, i get that. Looking at what has been happening between china and the picked anything trade war. From a china void from a hong kong point of view, if china is going to continue to have a hard time doing any business in the u. S. , look at what happened with tictoc. More and moreeek, restrictions against Chinese Companies getting listed in the u. S. Stock market. This unfriendliness culture will continue to grow and it will be there for a long time. Beijing madet is an announcement but there are no details yet. I can understand why the hong kong people are upset. The situation is really, really tough. It is sad to see how politics is affecting investment and technology so much. Emily lets look at a company like tictoc, for example. What are the unintended consequences . With, nott to start that many Chinese Companies grow that big in the u. S. It is rare to see. As we are seeing more and more Chinese Companies going global, the implications are going to be it may not be the best place to be in terms of growth and market expansion. I think we need to be aware of that for china to follow the u. S. Way, it will be tough. The u. S. Wants to go with the u. S. Way. The china china wants to go the china way. Discourage many Chinese Companies in fact, donthinese Companies Come to the u. S. Because it seems so unfriendly. Emily how is this impacting your Investment Strategy . Is this going to be changing where you put your money . I learned so much i learned so much every time i go back to china. Hong kong is still a vibrant city. Us, for a hong kong entrepreneur, you really need to think global. China is already doing that. Many of us are working us working from home. We welcome hong kong entrepreneurs and chinese entrepreneurs who want to go global. Emily t was so much for sharing your perspective thank you so much for sharing your perspective. I appreciate hearing from you. The house has officially passed that vote on sanctions against chinese officials for actions taken against the Muslim Minority in china. This is something the Senate Passed a couple of weeks ago. The president has not yet said what steps he will take on it but this now goes to the president s desk. We have been waiting for these two astronauts to exit the dragon. They are working on getting the hatch opened and getting the astronauts out. We have been watching them sitting there as they wait to disembark and start preparing for their next launched scheduled for saturday. Coming up, after years of criticism, could twitter be taking a harder line on tweets from President Trump . We will tell you how, next. Emily the astronauts are exiting the crew dragon after their launch was scrubbed and postponed until saturday. They will now start preparing for that. This would have been the first visit this would be their first visit together and in Historic Mission restarting the Space Shuttle program off u. S. Soil via a private company spacex. We will be following developments across the week. I want to turn to twitter. Finally taking a harder line stance on tweets from President Trump. In morning tweet, the president not seeming amused. He has threatened to strongly regulate or shut down twitter as a result. I want to bring in kurt wagner. What happened is that twitter flagged a tweet posted by President Trump about mailin ballots and he has not pleased he is not pleased. He is not pleased at all. Policy andher new they just started doing it in the last couple of months where they have started identifying tweets that are misleading, not necessarily directly against the companys guidelines. Instead of removing them entirely, they are adding these labels. Share more information about the topic at hand. It is a knowledge meant that whatever acknowledgment that whatever the original tweet is, it is misleading or misinformation. It is the first time they have ever taken action against trump, which is part of the reason this is so shocking they would choose to do this right now especially when we are five months away from the election. Emily speaking of misleading, can the president shut down twitter . Not that im aware of. I have not spoken to anyone or hurt anyone that he would be able to shut down a private company. Obviously, there are other powers the government has. The department of justice, they have investigated some of these big tech Companies Like facebook and google for antitrust reasons. It could create some headaches for twitter. Twitter is know, going to be operating tomorrow. Wagner, i know you will keep us updated. I want to bring you a new headline that United States deaths from coronavirus has officially surpassed 100,000. We cannot believe we have gotten there after a matter of weeks. Deaths around the world more than 350,000. And stillillion cases far from over. Coming from johns hopkins, deaths in the United States from covid19 now more than 100,000. Bloomberg daybreak australia is next. From bloomberg world headquarters, we are talking we are counting down to asias market open. Haidi welcome to daybreak australia. Here are your top stories this hour. Here are your top u. S. Stocks look set to boost asia