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 theres 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 marketcapweighted index, outperforming relative to the nasdaq, which also includes some of the smaller companies. And of course, the russell 2000, which is the smallCap 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. Youve been looking at Companies Issuing debt, some 1 trillion so far this year, led by Companies Like oracle and tmobile. 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 etfs. With the fed really the buyer and lender of last resort, companies rushing to take advantage of these record low rates. Oracle is the secondlargest borrowers so far this year. They issued 20 billion. Then you mentioned tmobile because they issued the thirdlargest. 19 billion to help fund their takeover of sprint. Investment grade highyield really rallying today. Unbelievable, the pace at which these investmentgrade markets have come so far. Emily meantime, twitter shares ending sharply lower, far lower than the rest of the market amidst President Trumps 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. Its 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 factcheck 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 factcheck political speech directly, but if but facebook absolutely factcheck based facebook absolutely factchecks 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 dont want to wade into Fact Checking every single thing every single politician says. I think you want to factcheck things with weight, information about voting or health. Thats 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 covid19, that has a direct impact on peoples 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 factcheck 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 theres a real risk of misinformation going viral on election day or Election Night and i think its one of the reasons platforms are areritizing in may so they not caught flatfooted 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 inservice 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 covid19 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 Chinahong 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 its 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 chinas decision to bypass hong kongs throughocess and push todays 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 kongs status is, of course, very, very different. Of thebeen legally part peoples 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 mid1940s. 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 peoples 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 longstanding concept for taiwans 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 im 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 coworking space model still have investors interest . Of weworks 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 im very happy im 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. Ceos 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 lets 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, theres 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, youre working towards an ipo as early as next spring. Weworks we work ipo plans fall through. What is investor appetite . We have about 30 seconds. I would say going public has always been our longterm 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 liabilitylight, assetlike 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 covid19 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 covid19 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 its 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 o