Secondquarter rally to 20 . The dow jumping 18 . However, dr. Anthony fauci today, the nations leading disease expert, said cases could soar if behaviors do not change. Fed chair jay powell said getting the virus under control is just as import does the u. S. Economy itself. Abigail doolittle has been covering the ups and downs. What is driving all of this . Abigail behind the rally we had today and yesterday, i think it is just a cushion to the end of this banner quarter. Investors wanted to make sure they locked in the gains. Fundamentally, not a lot changed. There was some fundamental economic data. Little bit more positive, some Chip Companies put up some good quarters. From the factr that there could be some more Companies Boycotting but a bit of a rebound rally. Confirming the risk on mood company 10 year yield higher. Bonds are lower on the quarter. 20 on the up about quarter. Treasuries higher. You do not often see that, where you have bonds and stocks. The same time, Precious Metals higher as well. Really an everything rally, which follows the horrible First Quarter where the bar was low. The Third Quarter, what will that look like . What are you watching for in the coming Third Quarter . Obviously, i am going to be watching facebook. You do have more big advertisers adding their names to this boycott list. Target, a big one today. Micron just posted a big quarter. Thatil micron did put up big quarter. They also beat to the outlook. That tells you that demand for memory chips is relatively strong. Some folks, analysts were worried about maybe a stockpiling of chips. Shares surging up for the day. They make the chips. That could be a positive forward tell. After the bell, fedex reported a very strong quarter. Outlook, efficiencies, margins were better. Also, health care, Health Equipment deliveries. Forwardright now going is so low. The number these numbers were taken in even though they have been taken up a little bit. Nonetheless, the bar has been so low, relatively easy to beat. Lets see if it continues. It will really depend on that virus data. The nasdaq, still pretty amazing, putting in those alltime highs. The chart, a little bit scary. That uptrend, typically those will not hold. Emily talking more virus numbers coming in. Texas posting a Record Number of new cases, almost 7000 in a day. Also, deaths rising about 8 . That is something we will continue to follow and which could potentially have an impact going into tomorrow. Thank you so much for that update. I want to get back to facebook. More advertisers joining that boycott today. The question that continues to be asked, does Mark Zuckerberg have too much power . I want to bring in kurt wagner. Give us the latest. Target added insult to the list, which is a huge advertiser for facebook. It is. I believe last year, target was a top 30 advertiser across facebooks Companies Spending million in0 7 facebook ads. Definitely a notable name. We have seen a number of notable names. But i think really what this comes down to come i have been speaking with a lot of the organizers of this boycott, they keep saying that they want facebook to be accountable and they are saying that Mark Zuckerberg has too much power. These are issues that cannot be resolved because Mark Zuckerberg is not going to give up any of that control. That is why am not convinced that this boycott will lead to the middle ground that i am sure some advertisers would like. Emily you wonder how much it will impact the business. You saieh huge drop on friday but the last couple of days, shares have risen. Is there any indication that Mark Zuckerberg is reconsidering any of his positions, especially his position on how to handle political speech, especially if that speech is hateful . Friday, zuckerberg broadcasting u. N. Day withcast a q a he did employees live. He announced some changes around newsworthiness. If a user like President Trump violates the policy, they would leave it up but start to label it or flag it like twitter does. A lot of people said, look, this is actually the result of this boycott. But the reality is that he has been talking about doing that for the past couple of months ever since employees started protesting it walking out of the company a few months back. What is really problematic here, they are kind of responding to many Different Things at the same time. I think the big story, what you will see from them will be kind of minor. You will not see the big Sweeping Change that i think a lot of these boycott advertisers want to see. Emily we have seen facebook employees walk out for the First Time Ever in kind of a public display of dismay for some of the policies. Is there a sense of continued agitation within the facebook employees community itself . But i think that there is, i dont think it is necessarily tied to the boycott in the way that you might think. The issues they have had for the past month have been very specific to facebooks policies. We saw that tested with those trump posts in late may. I think it would be premature to say that employees are suddenly back on board and really excited about everything facebook is doing. I am not sure that target pulling out advertising is their major concern, as opposed to what is facebooks social impact across the country. Emily thank you so much for joining us. Ago,ime, about an hour spacex launch, a falcon rocket carrying a next generation gps satellite into space for the u. S. Space force. The falcon 9 took off from Cape Canaveral in florida. Part of an effort by the department of defense to upgrade satellites in space. Callingp, the fcc is Chinese TelecomCompanies Huawei and zte National Security threats. Commissionerto fcc jessica rosenworcel. This is bloomberg. Emily the u. S. Fcc has hasmated huawei and cte asignated huawei and zte National Security threats. These are companies that small rural carriers rely on for relatively cheap equipment. Joining us, fcc commissioner jessica rosenworcel. This is basically a final step after a decision that you made unanimously last year to ban huawei and zte from getting federal funds that were meant to expand capabilities across the United States. How critically step is this today in your view . Jessica this is really important. National security at Network Security now go handinhand. The fcc has said that these companies, which are a big part of the worldwide Equipment Market, they are not going to pay. This decision makes it final and clear. Emily huawei and zte have unanimously denied that they are threats to u. S. National security. What is the evidence you have seen that makes you believe that they are . Record our evidentiary is real strong here palm strong here. It is consistent with findings from the executive branch and congress. These are companies with deep ties to the Chinese Government and obligations under National Security laws to make sure they share intelligence with the government when asked. We do not want to have their equipment in our communications network. Emily do you think that todays decision goes far enough . Jessica todays decision is really only part of the puzzle. We want to make sure our nations networks, especially as we get to the 5g era, are truly secure. That it ise extent in our networks now, it has to take some of it out and replace it. Finally, we have to work on methods to make a more competitive and diverse Equipment Market in the future so that we dont tend to rely on these companies that we think posey security threat. Emily this is at a time when we are sheltering in place, quarantining, we need our networks now more than ever. But you have small rural carriers out there saying that this will handicap them because they dont get equipment that they need to get their networks up and running. Networksgetting everywhere in this country is really important. Carriers, it is less expensive. Weve got to figure out how to stop having them use it and also how to give them funds to the extent that it is in their networks today. That is a longterm smart investment. Emily speaking of this, you are working towards the approach that would involve using some sort of standardized hardware. Can you explain how that would solve the huawei or zte problem . Jessica we only have a handful of equipment manufacturers for Communications Networks right now globally. We want to create a much more diverse and competitive market. One of the best ways to do that these virtualize some of wireless networks, specifically the radio access network, between the core and your device. If we can bring more software into that system, it will become more diverse. Thesing on something that United States has traditionally led in the. It is getting a burst in washington, so i think it is important that we invest in that going forward. Emily a few weeks have passed since you and i discussed the president s executive order on social media. Moderating more posts by aesident trump, you have massive boycott now facing facebook. That said, now that the time has passed, i am curious your thoughts on what should happen to section 230 and whether anything will happen to section 230 as part is the fcc is concerned . Jessica i dont have a crystal ball but i think there will be efforts in congress to revisit that law. That convinced social media is frustrating but what we need right now is Congress Stepping in and assessing this law. It is definitely not the federal Communications Commissions job to protect the president from information online. Emily some people say that Companies Like facebook are so vast that they are more like Public Utilities and when a post like that comes from President Trump, there are critics who areeve that actions necessary. Jessica that is absolutely a to haveon, and we need it. But an executive order cant have the fcc rewrite section 230 and cant have the fcc rewrite the first amendment. I think what that means right now is that congress will have to assess this law and see what adjustments it might want to make. We know you are not on President Trumps side of the aisle. We have a huge election coming up. Im curious what policy changes you would imagine a Biden Administration bringing to technology and the fcc . Jessica first and foremost, we want to close our nations Digital Divide and lead the world with 5g deployment. If we do those things, we will begin a good place in terms of digital and Economic Opportunity for all. No matter what happens, fall, those are things we want to focus on. Emily and likely choices for an fcc chair in a Biden Administration . Jessica that is above my pay grade so i will pass on that one. Emily had to try. Commissioner, thank you for joining us. Startup flexe theets trying to diversify 13 trillion diversify market and bring in more investors, teeming with the nasdaq to do it. This is bloomberg. Lex markets is on a mission to open up commercial real estate to Retail Investors. The startup has reached a deal to use the Nasdaq Technology to power its trading platform, which will allow as little as 100 at a time on commercial properties. Joining us, cofounder and ceo drew sterrett. How exactly will this work . Only lex is the first and commercial securities marketplace available to accredited and nonaccredited investors. The lex platform allows investors to buy and sell shares of individual real estate property, giving them the flexibility to create customized portfolios and diversified Real Estate Asset classes. Emily why are you trying to make real estate more acceptable to Retail Investors . Lex drew for the longest time, it has been sort of associated with the ultrarich top 1 . It actually came from a personal desire where i was looking to invest in real estate after working at a private equity firm. The question, how do you have the oldest and largest asset class, one of the largest wealth creators, without a transparent and liquid market . Emily what kind of investors do you expect to use the platform and how does it distinguish itself from some of the others out there . The founder and former ceo of acorn is one of our investors. Really, we are not a fiduciary. System whiching allowed the trading venue. The Stock Exchange in nasdaq. Emily you obviously have a view on where this market is going. Where do you think commercial real estate is going given that we are in the middle of a pandemic, in the middle of a recession, somebody so many people working from home and not the commercial real estate they once had . Drew i think for the most part, the story will unfold. Commercial real estate is known to lag compared to the public markets. I think we felt an initial wave where people are reevaluating certain asset classes. But, continuing to evolve and develop, and only the future can tell. Emily there are so many days in the last four months that i have come on the set, the markets are up, and it does not necessarily make any sense what you see cases rising, you see the jobless numbers. What indicators are you watching to give you some clues as to where the markets are going . Drew for the public markets, ime big believer in dont fight the fed. In my mind, that is the only thing that can truly justify where the markets are today. We are watching where income streams are occurring, what is happening with large institutions, where they are positioning themselves. At the same time, watching where clos and up and where rentals are at the end of q2, which is now, and into q3. Find out overl the next six months where real estate is moving. Emily what are you expecting to see this summer in particular . That do think actually, for the most part, you have not seen that many real estate transactions occur since covid started impacting the United States. Given that real estate is such a slowmoving beast, i think many of the impacts will be felt at the end of the year and into 2021. Emily interesting. Drew sterrett, cofounder and ceo of lex. Thank you so much for joining us. Coming up, major corporations pulling their ads from facebook more of them. We will hear from a major hear from an early facebook investor on what he things about the boycott and broader impact the pandemic will have on Silicon Valley. This is bloomberg. Emily welcome back to Bloomberg Technology. Im emily chang. Major is the latest corporation to join a course of Companies Pulling their ads from facebook. The list now includes microsoft, starbucks, cocacola and many others. Joining us to discuss, early facebook investor, l. A. Part ovi, the ceo of ali partovi, the ceo of neo. We are in the middle of an incredible moment, a pandemic. An economic crisis, a reckoning on social rights. You are an early facebook investor. What is your take on how facebook is handling this now . Ali its great to be here, emily. This is certainly a timely issue and a complicated issue. I grew up in a country, in iran, a country where there is not really freedom of speech. I remember we were kind of scared of what we would say anytime anywhere. Speechserving freedom of is a real important thing, but i think there is a balance to be found. When i look at the boycotts by advertisers thats happening, my experiences that i dont think mark response to pressure, whether from governments or advertisers, but i think he does respond to ideas. I think we need new ideas here. I feel like so far, the debate about facebook has kind of presented a false choice between unlimited freedom of speech or heavyhanded editorial moderation. And i believe there are other options. I believe we should be encouraging facebook to look for how it could preserve freedom while changing the incentives so people posting stuff regulate themselves. Emily now, more recently, mark has doubled down on his position not to moderate posts from political leaders, including President Trump threatening force on the american people. What would some of these ideas or some sort of middle ground be when you have a post like that which some view as crossing a line . Not saying i, im know the solution. Im just saying i think it is possible to have a social medium that does not bring out the worst in people, that brings out the best in people. Was the, the sad thing original mission of facebook was to connect people and bring them closer together. I think while it has done that, in many ways, i feel like we are more divided than before. I dont think that is inherent to social media. I dont think that is an intrinsic aspect of a social medium that it would bring about these behaviors. As an example, take a look at wikipedia. Wikipedia in a social medium, it is entirely created by people. It is not rife with racism or falsehoods. And people are not protesting that their freedom of speech has been taken away. So, it is possible to create a , basically is run on powered by people. Yet, does not have these bad behaviors. Im hopeful about i think people are inherently good. Given the right framework, that brings out the best in people, it should be possible to have a better outcome. Emily inter