tv Bloomberg Daybreak Australia Bloomberg June 29, 2020 6:00pm-7:00pm EDT
♪ shery: good evening from bloomberg's world headquarters. i'm shery ahn in new york. haidi: i'm haidi stroud-watts in sydney. here are your top stories this hour. hong kong faces new uncertainty with the u.s. revoking it special trading status. washington says china undermines its traditional autonomy. the city has been bettered by protests, the coronavirus pandemic and the fallout from trade tensions.
businesses are failing, tourism has collapsed and confidence is shot. beijing is expected to confirm the new security laws for hong kong later on tuesday after imposing visa bans on americans it says are interfering. shery: let's get you started with a quick check of the markets. we are seeing u.s. futures flat at the open. we had a rally in the regular session with u.s. stocks surging. the s&p 500 erasing its june declines. all 11 sectors in the s&p 500 closed higher, being led by industrial, communication stocks. we had some positive economic data. pending home sales posting a record game, offsetting concerns of the virus resurgence over some states in the u.s. including florida and new jersey. we have the dollar also closing around the four week high. take a look at what would liz doing. under a little bit of pressure but still above $39 a barrel. oil rebounding from the weekly
loss as we got better than expected economic data. we are still seeing a bit of a bearish picture in the overall crude market. u.s. stockpiles are still at a record high. see how things are shifting up for the asian market. here is sophie kamaruddin in hong kong. onhie: after we saw losses sunday, asian stock looking higher. regional indexes have largely pulled back from their june peaks, but they are set for the best quarter since 2009, given the policy and some positive economic trends have seen in asia along with valuations. that will encourage investors to increase exposure to asian assets. we cannot overlook the risk to focus on hong kong is the u.s. has the stand on china security bill, putting the city status potentially into question. to pull up a chart on the terminal to show you the big
picture view. since plunging on may 22, the day after the bill was sengnced, the 1 hang with the $210 billion rally. it could be set to reset the 50 day moving average with economic pressures still a drag alongside applicable risks. haidi: we will talk about these political risks this hour. the u.s. revoking hong kong's special trading status, throwing topcity's future as asia's finance and business hub into doubt. the sweeping security bill and the risk of u.s. technology may be diverted to beijing with the announcement. it comes as china's top legislative body repairs to approve the controversial security bill later today. let's get over to our chief washington correspondent on the line from d.c. kevin, is this perhaps a swift reaction to the visa move from beijing, because it seems
unusual this comes ahead of this bill actually being implemented? kevin: the timing of this catching some people by surprise in washington, d.c., though it is not a surprise that ultimately the administration has decided to take this step. here is why. they have forecast for sometime this is a step they would in fact take within the last hour or so. commerce secretary wilbur ross releasing a statement, announcement the u.s. would be in fact revoking that special status that the united states has for hong kong. coupled with a dynamic that occurred last week in which a bipartisan measure advanced out of the senate in which it would allow for the united states to issue some sanctions on chinese officials to do business with the communist party of china that sponsors these so-called national security laws for hong kong. now, whether or not the president decides to sign that
into law remains to be seen. i can tell you that i am told by top republican members in the house of representatives that they are going to be pressuring him to in fact sign that into law. this is one of the rare areas of bipartisanship that has emerged in a very polarized american congressional system. a congressional institution also has a bipartisan china commission. i'm told that other bipartisan measures will be making their way come the fall and october and it might not garner some of the national attention in the mainstream press. but it will send a signal to beijing that from an american foreign-policy standpoint there is agreement as it relates to handling the communist party. shery: many people we speak to in the pro establishment camp allude to the fact if you sanction chinese officials with anything to do with hong kong,
if you remove the special trading status of hong kong, the united states will end up losing. we do know america's largest trade surplus is with the city. whatus practically removing this status actually means for both the united states and hong kong. kevin: from the u.s. perspective, to your point, there was a recent june 2020 survey put out by the american u.s. chamber of commerce that found that about 64% of those businesses survey that have business dealings and hong kong were worried about the status being revoked. it was a point of economic uncertainty from the u.s. perspective. from china's perspective, look, i think you cannot look at the u.s. financial relationship in a vacuum simply with hong kong. from a longer-term u.s. strategy, i think you could based on my reporting, see more foreign investments flooding into other financial networks,
including singapore, but from a broader standpoint. the u.s. has been doubling down this investment in other emerging markets, most notably india. i think this is, yes, maybe if you look at it simply in a u.s.-hong kong relationship, the communist party would push out that they would be able to advance. from a u.s. perspective, this is a marathon, not a sprint. shery: kevin cirilli with the latest on the u.s.-hong kong relationship as the u.s. removes that special status for the city. the last governor of hong kong under british rule saying that theing's security law in city will be intolerable for the people then eventually for business. they areton told us already illegal but not in a way that is acceptable to the mainland government. chris: it is not a question of
it being passed. it will be imposed on hong kong. one of the many breaches of the joint declaration and the basic law. this is in effect an attempt to end one country, two systems. it produces one country, one system. it is in breach of almost anything you want to point at. whether the civil or political rights, or the agreement that hong kong should have a high degree of autonomy. and the extraordinary thing is it further demonstrates what i am saying, that at least until the last day or two, apparently the chief executive, unless she was in favor of it, it's absolutely crazy. it's designed to ensure that the hong kong freedoms or autonomy we have regarded as are put on ice, rid of.
the chinese to be able to run hong kong in whatever ways they want. it is bad news for hong kong. if this was a football game, it is another example of why china or the chinese communist regime will get a red card. >> you see this as an opportunity for the commonest party of china to basically establish a secret police in hong kong? chris: that is what they are doing. they said they would establish a national security office in hong kong. it is not going to be run by the society. it will be run by chinese security agents. what they will be wanting to do is to target anybody who disagrees. we don't know because they have not told us, they have not told people in hong kong. even though they've got posters all around hong kong saying -- we don't know the detail of what
it is. we just have leaks. will it enable them to pursue people retrospectively for the things they have done? how would it define next tradition and subversion? how would a deal with people's contacts with outside bodies, whether they are ngos or churches, let alone journalists? >> these national security provisions are outlined in article 23 of the basic law which has not been implemented as it is constitutionally required by the legislative council. for 23 years, they have failed to do that. wouldn't you say, the beijing authorities say because they did not pass on their own article 23, we've had to do it ourselves. do you buy that argument at all? chris: not remotely, because most of the things they talk about are already illegal under hong kong law. you can go through the crimes ordinance, other pieces of legislation.
treason and terrorism and sedition and so on. those things are already made illegal, but they are not made illegal in the way china wants them because china wants to be able to fine those things in a way that runs counter to most views around the world on human rights and international human rights law. there is no shortage of law on public order in hong kong. if that were the case, how come all these 10,000 people have been arrested for demonstrating, many of them peacefully, over the last few months? hong kong has those laws. what china wants or wanted in 2003 is the sort of law that would be an acceptable to people in hong kong because it would take away some of their basic freedoms. that's what the argument is about. none whether there should be national security law. that was the former hong kong governor chris patten speaking to stephen engle. bursth.o. his warning the
of the coronavirus is yet to come as several u.s. states reimpose restrictions. gilead has now priced its virus treatments for the developing world. australian set to post their best quarterly gains since 2009 after the worst year ever. we will talk to the rbc about what the second half-full for aussie stocks. this is bloomberg. ♪
karina: you are watching daybreak australia. several states in the u.s. are we imposing virus restrictions as new infections search. new jersey halting plans for indoor dining. florida reported a jump in its already double digit infection rate. tokyo is seeing a rise in cases. iran reached record fatalities. austria has the highest death
level since mid-may. world health organization says the worst is yet to come. >> this virus has two dangerous combinations. one is it's fast. it's contagious. second, it's a killer. divisions.exploit .ivisions between us karina: india to further ease virus restrictions even as infections continue to surge. the government to permit more domestic clients and night curfews will be lifted starting thursday. international flights will be allowed in a phased return, with schools and colleges will remain closed until the end of next month. india has more than a million cases. gilead has priced its coronavirus drug for developed countries, saying a typical five day course would cost about $3000.
patietns are excited to be given six vials of remdesivir which means about $520 a pop for commercially insured people in the u.s. gilead aims to charge $390 a vial for direct government purchases of the drug. global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts. i'm karina mitchell. this is bloomberg. haidi? haidi: let's get more on the virus now with max neeson joining us out of new york. great to have you. we are coming up to six months to the day that the world health organization was made aware of this virus and out the head is yet to come even with 500,000 deaths in more than 10 million global infections. a pretty grim assessment. max: it is. we do hear where he is coming from looking at the current environment where despite having months of data about exactly how
fast things can get and a better playbook on how to address the virus, still seeing rapid spread around the world. even if there is a positive side to it, it is i don't know if we will see quite, most places at least, quite the sort of acute and deadly outbreaks with overwhelmed hospitals just because we have learned a little more about keeping the most vulnerable populations safe. but once you do get to a certain level of infection in an area, those protections do start to break down so it is something to be vigilant against going forward. optimistic piece of news coming from gilead sciences. we have a little more certainty on their coronavirus fighting drug. we have more details on the pricing as well. that was, so information that came out today, disclosed by the company.
there is sort of an interesting pricing differential by country. two different prices in the u.s. depending on whether you are commercially insured or the government. something that is not uncommon. the second lower price for developed countries worldwide. then, developing nations will potentially have access at a much cheaper generic. i think it is the last point that is particularly important. ensuring in areas where price is most likely to be an impediment to access will be as much of a problem. as always, no price will make everyone happy. some analysts say these prices are too low for gilead to fully recoup costs. some activists calling the price too high for developed nations given that the states is helping to flood the expended use of medicine. haidi: with the issue of drug pricing front and center with a
bill that was passed today by the democrats, how is this a political move going into november? think gileadtely was conscious of the politics the in pricing well below sort of upper limits of what analysts suggest or even what themselves suggested could be the potential price. the ceo wrote a letter this morning, just getting people out of the hospital four days earlier, that could save $12,000. they didn't fully try to profit maximize which is what you have to do in a pandemic. otherwise you open yourself up to criticism. shery: our bloomberg opinion columnist max nisen with the latest on the coronavirus. coming up, stronger than expected eco-data in the u.s. drove stocks higher on monday. we will give you insight on those moves next with michael
shery: u.s. stocks climbed on monday after better than expected eco-data overshadowed concerns about an increase in coronavirus cases. let's get insight on those market moves with caravel concepts chairman and ceo michael jones. great to have you with us. the data was u.s. pending home sales exceeding all forecasts. can we expect the housing sector to lead the recovery in the u.s.? what would that mean for potential valuations in the sector? michael: that is certainly our thesis. we pretty much have been expecting since the federal reserve embraced modern monetary theory, started printing the money to finance unlimited spending out of washington, we've had two themes.
we felt like the housing market and eventually the equity markets would probably bubble. the housing market would be particularly on a rocket ship because covid-19 suspended construction. we already had a very thin inventory in u.s. housing markets. now you add to that record low mortgage rates and i think you have a recipe for powerful home construction, powerful home sales, and ultimately price appreciation that will probably go a little too far. shery: does that sector pose a risk? if we are expecting the housing market to recover, could we also extrapolate that other sectors like manufacturing will do well as well? michael: well, i would say the housing sector will eventually form a risk but that will be several years down the road. if you think about the last housing bubble we went through in 2007 and the bust in 2008,
2009, we are probably 2004, 2005. so, rather than worrying about the housing market right now, what we would look at is the engine that is going to help pull the rest of the u.s. economy out of the tremendous slump that covid-19 put us into. on the other hand, you mentioned manufacturing. we think the pain in the manufacturing sector is probably going to be with us for a while. probably the poster child for that -- boeing had some good news today. the 737 max is possibly going to be recertified. the faa started the testing process. that is not going to necessarily create demand for that plane. right now, boeing is sitting on $80 billion of unsold planes. to put that in context, they had $8 billion at the last recession in 2007-2008. they are sitting on a lot of unsold planes.
they could go a year without making another plane and they would still have enough inventory to meet demand. that means because so much of u.s. manufacturing is tied to boeing, and tied to energy, you take those two sectors, we think neither are going to have a tremendous recovery off of the covid-19 damage that has been done. that is probably a headwind that manufacturing will face for the next couple of years. there is a a norma's amount of headwinds when it comes to the service sector and consumer facing businesses re nowe we a starting to see the theme of starting to reimpose restrictions. we are getting a line out from the arizona governor ordering the closure of bars, clubs and gyms, being reported by the ap. is this a real concern? because the who is saying the worst is yet to come. we don't have a real idea on how the trajectory of this virus and
the associated productivity and economic loss will play out. michael: i think there are two time frames where you have to think about covid-19. first of all, it is between now and the end of the year. i don't think there's any question you have to say that the u.s. has botched economic reopening covid-19 shutdowns. europe reopened with infection rates down 85%, 90% from peak. the u.s. reopened with only 30%. that made us vulnerable to a second spike, and lo and behold, we are living through it. europe implemented contact tracing, testing, the u.s. didn't. all of this means within a year, will go through another phase of economic pain. not nearly as severe as with the total lockdown, but there's going to be a loss of momentum and confidence that is going to push out the return to what out ever normal is going to look like for the airlines and so forth.
however, we strongly believe that by the time we get to year end, we are going to have a vaccine. and that there are several vaccine manufacturers who are committing to going ahead and manufacturing the vaccine before they actually get fda approval. that means they will be able to deploy the vaccine faster than has ever been done historically. so it is a 2020 problem. by 2021, we think there will be much less concern about covid-19 because we will have valid vaccine. michael, great to have you with us. caravel concepts chairman and ceo michael jones. coming up, stocks set to close the best quarterly gains since 2009 after the worst start of the year. we will be asking rbc's karen jorritsma as to what the second half holds. this is bloomberg.
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shery: you are watching daybreak australia. let's get a check of the first word headlines. hong kong's future is the leading finance and business is in doubt as the u.s. says it is revoking the city's special status as a trading center. commerce secretary wilbur ross says china's decision to impose security laws threatens u.s. technology and undermines hong kong's autonomy. the city has enjoyed trade agreements under one country, two systems but washington says that is no longer valid. china's top lawmaking body expected to confirm new secured legislation for hong kong later tuesday in a move that prompted washington's decision.
beijing is also ramping up attention with the u.s., saying it will impose visa restrictions on american individuals deemed to be interfering in hong kong affairs. it is a reaction to the senate bill putting sanctions on chinese officials. outlook forng its the global economy based on monthly increases in retail sales in the u.s., the u.k. and western europe. the agency sees world gdp followed by 4.6% this year with u.s. growth dropping by nearly 6%. fitch is raising its outlook for china, now seeing gdp rising 1.2% from its earlier forecast of .7%. iran has issued an arrest warrant for president trump and 35 other people for the killing of a top general in january. tehran says the suspects include political and military officials from the u.s. and other countries over the assassination of the general.
charges include murder and terrorism, and name trump as the prime suspect. iran is requesting a so-called -- from interpol. haidi: let's take a look at how the markets are shaping up this tuesday's asian session. trading in new zealand, with the government warning they are not expecting any economic income in the way of international for the rest of this year. 1.5% when it comes to trading in kiwi stocks. chicago and nikkei futures moderately positive, 2/10 of 1% higher, after u.s. stocks climbed after better than expected eco-housing data. preliminary as it was, really outweighed the ongoing concerns about the virus trajectory disbarred florida reporting double-digit increase in the infection rate. sydney futures looking like an open of densely over 2%, bouncing off the two week low we had yesterday.
the aussie dollar seeing a little bit of a gain ahead of quite a bit of china data. industrial composites elevating expectations of a stronger recovery in china. australian equities on course for the biggest surge since 2009 as lockdown ease across the country. they asx 200 has rebounded since is worse quarter ever. these efforts to reboot the domestic economy. let's get perspective on the first half and what may lay ahead with rbc's karen jorritsma. you have seen a lot of different assessments suggesting that australia, despite losing that almost 30 year streak without a recession, is still likely to come out of this better than a lot of other economies around the world. how does that reflect when it comes to investors? australia, thein investor base is really supportive of the stock market. so far, there is no alternative.
on that besasis, given people have to invest in the valuation program, we end up with a very supportive environment for the equities market which has been helpful with where we are at. haidi: valuations as valuations elsewhere are looking stretched when it comes to australia. despite the terrible start to the quarter, it is looking like the best quarter since 2009. does that suggest you need to get super selective and where do you find value in this environment? karen: it is incredibly difficult to find value in the environment. versus historical and all kinds of measures, which makes it incredibly uncomfortable. there is a real implication between where we see actual underlying value in the australian stock market and earnings. i think we are very nervous about earnings.
it might be difficult to assess where you find any value. probably the best way at the moment is to be stock specific so just chasing specific stocks rather than sectors. finding valley was a struggle for everyone at the moment. shery: one of the sectors that are clearly going to benefit from the pandemic lockdown, online stocks, online retail and so forth. karen: we are seeing a massive rally. anything that had real structural shift in a positive fashion from this pandemic in the work from home environment as well as the recovery has had enormous rallies since the march lows. anything online related. of course, the tech players primarily in the cloud such as sbc with data storage or assets. we have already seen a huge rally. it happened very early. interesting to watch and
australia. those stocks became the new defensive which was never considered. shery: we have seen the aussie dollar pretty supportive after the rba signal it was really concerned with the currency strength. where do you see the aussie headed and how is this going to change market dynamics? karen: i think the australian dollar hangs around, making enormous moves by the way. the fed has signal they plan to continue their being supportive for the next couple of weeks. we will not see a big change in dynamics between the u.s. and aussie dollar from this point forward. for market dynamics, we are more focused on the macro noise which is around what's happening with the pandemic and any kind of vaccine or signals that's returning to some sort of certainty. of course, the economic data at the moment. given that we don't have that tourism revenue with travel
restrictions and border restrictions likely to stay in place, do you see much potential and optimism when it comes to consumer facing, service-oriented stocks and industry from that domestic demand story? karen: it is very difficult to assess domestic demand. the reality is we are all seeing on a day-to-day basis, pretty bleak. brick and mortar retailers, it is very difficult. we have the borders locked up so tourism is very hard. plans are much more bearish than all of us anticipated. when you spoke to sydni airport, the numbers are a lot lower than we were anticipating for longer. it is hard to get excited by that. we are seeing a massive amount of stimulus coming from the government. you've got talk about it being expended. artificially propping up of the markets and earnings in some specific places where the consumer actually feels cashed
up and spending money in some so it seems to be very specific. mentioned this race for a vaccine and that is one of the reasons we are seeing pharma and biotech in the australian market as one of the upper formers. is there still opportunity or is a lot of that demand pretty speculative? karen: it is all speculative, really, unless you've got enormous insight into the vaccines. it is completely speculative. i don't have any better understanding of anyone of what's going on. that's what we are seeing in the u.s. those couple of companies that are big into the vaccine process. we are seeing quite large swings in the share prices because as news leaks out, people are trying to jump on the bandwagon, clearly it is going to be a huge benefit if someone comes out with a vaccine. it will be a game changer for
that company. in the meantime, i think it is very spent -- speculative to assess what it's going to be. shery: great to have you with us. argosy capital markets karen jorritsma joining us. coming up next, africa struggling with record debt even before the pandemic hit. the imf director of the african departments planes with the continent needs now. this is bloomberg. ♪
shery: the coronavirus pandemic is exacerbating the uniquely challenging economic situations for africa. the imf says countries across the continent and are facing financing needs for more than 100 $10 billion in 2020 alone, with $44 billion yet to be financed. even before the pandemic, governments struggled with record debt fueled by $600 billion to fund projects. largest, africa's creditor to delay but not forgive $152 billion in loans. joining us from washington to discuss is the director of the africa department of the imf. abebe, great to have you with us. thank you for your time. give us an overview on outlook of the financing needs for africa. easyer or not the very credit conditions, located he conditions around the world, not to mention rebounding commodity
prices maybe helping the continent. abebe: thank you. what we are finding is we usually do our economic projections for the region twice a year but given how fast conditions are changing, we have another projection that came out today. region's,ow is that economies expected to shrink by we wereative to 1.6% expecting as recently as april. what this shows is that the region continues to be hit by global economic outlook which has been weaker than we were expecting a few weeks ago. as well, the period of containment, mitigation that has been longer than we were expecting. the end result is shopper contraction in outlook than we were projecting and this will be the weakest economic performance
for the region going back at least 50 years. very difficult year for the region. haidi: to take kenya for example as one of the major economies set to see that it's first contraction in nearly 30 years, how quickly do we expect the recovery given the major trading partners across the region, europe and china, are actually seen as too economies which may rebound quicker than the rest of the world? abebe: we are projecting a recovery for the global economy. with that, we expect many of the region's economy to rebound into next year. one kind of source of optimism is the total amount of covid cases remains and has remained low for quite a while. i am talking about and relatives terms to what we have seen elsewhere. i don't want to suggest the region is out of the woods, far from it. i think it is clear.
but caseloads remain lower than they have been in europe, let america, the middle east. recovering of the rest of the world takes place. many countries should be able to rebound activity next year. tourism,e sectors like travel which are beginning to open up a little bit in europe, as you know. hopefully africa will follow in the coming weeks. shery: how feasible is it to expect a continent like africa where there are so many people living in poverty to effectively shut down their economies? abebe: that has indeed been one of the challenges that policymakers have faced. ofably, the duration containment measures has been weaker and there's quite a bit legalference between
measures versus on the ground is actually happening. of course, given the social safety net remains much weaker in the region or nonexistent in many countries, that has been very difficult for governments to strictly enforce containment measures. that is why we have seen the pressure to ease coming quite quickly before the number of caseloads increasing have flattened. i have to point to some remarkably supportive new policy measures that countries have been undertaking. we've had countries like togo which have adopted -- new approaches to provide social safety nets. using existing mobile money systems to identify people with no balances, transfers. earlier, i mentioned
we have seen these record levels of debt for african economies, even before the pandemic hit. i do wonder how much of this debt burden will be hit by the ongoing pandemic, especially given we have china and africa's largest -- as africa's largest bilateral creditor. abebe: very good question. debt pressure will indeed be quite significant. going into the crisis, we had quite a few countries which had very limited borrowing room and had to cut back on public borrowing. some countries already have unsustainable debts. with the crisis, that problem is even more acute which is why very early on, the imf itself moved quite quickly forward to provide debt relief to the most vulnerable members in terms of debt this year. for the g20shed
debt relief initiative. all of these should create some fiscal space. is one thing about distress debt sustainability analysis, something which is very country specific, and at this point, it is not the time to fully understand what's going to be happening in terms of the public debt solvency issues. what is really needed now is breathing space which is what the g20 debt service initiative will provide. give countries the fiscal space , giving timeerm until next year for us to see how the debt trajectories will evolve before we have discussions. haidi: does this really indicate it was a policy error or a misstep to accept this much
investment from china? essentially what you are seeing is the exporters, china's own debt burden into the continent. course, countries nobody really expected a massive shock such as the one countries have been hit by now. so in doing the projections and undertaking the borrowing, countries were expecting to continue to be able to grow and not expecting the collapse of output and very different path forward and other physical balances they are now facing. that is one factor. that said, even before the crisis, there were quite a few country struggling to strike the right balance. on one hand addressing the development needs, health, infrastructure. on the other hand, collecting revenues to keep the level of
debt sustainable or serviceable. there were some countries under pressure. but those countries also had time to try to address that. the shockappened is has come in and pulled the rug from underneath them. abebe, director of the imf africa department, joining us. really do appreciate your time. we do have some breaking news when it comes to developments regarding the collapse of virgin australia. new owner.' we are hearing from the administrator of deloitte that creditors initially are unlikely to receive distribution further shares and that creditors may not be paid in full. not that this is very surprising. deloitte set on friday it is not possible to assess how much of
virgin australia debt can be recovered. they are expected to report that in the report to creditors due out before the end of next month, but had already warned that shareholders can expect nothing. virgin australia almost entirely owned by their foreign aviation group, including singapore's group, with about a 20% stake in each. shery: we do have breaking news in the u.s. as well. taxpayers cannot request filing an extension -- can now request filing an extension to july 15. they were due on july 15. this was already postponed from april 15, the first time these tax returns and payments have been delayed in mid april in decades. this as we continue to see the coronavirus cases surging in the u.s. which has more than 2.5 million cases already. don't forget, if you are away from the screen, you can find
network over its content policies. namely whether facebook removes all hate speech. caroline hyde spoke to facebook's vice president on global affairs and communications nick clegg. nick: i think with success comes response ability and with success comes accountability. thatnk it is right given it is a private company in many ons, we provide the platform which so much societal and public debate and political debate now plays out. that was especially true in the highly polarized environment in which a lot of these debates are now playing out in an election year. of course, were acutely aware this is part of great sensitivity beauty emotions are running really high in the u.s. given the killing of george floyd. we are constantly scouring our platforms to make sure there is legitimate public debate. yes, people say things that may
others don't want to hear but we believe in free especially. we do that within certain limits. we have to make sure those limits are properly safeguarded. i'm certainly not complaining that there should be a particular focus on facebook because we do play a particularly important role in those public debates. the only thing i hope -- i want to point out, we are never going to eliminate all free speech. hateful individual say hateful things to each other. it has been around since the dawn of time in every form of communication technology. email, telephone, now social media are used by a minority of people who utter a minority of hateful things. it is our job to get that content but i don't want anyone to imagine we can rid the world of hateful speech because that is part of the human condition. our job is to make sure it is minimized as much as we can
minimize it but i don't want to pretend we can eliminate. caroline: what about the criticism that some feel this content, particularly inflammatory content, glorifying violence, disinformation, somehow leaves the more eyeballs and then somehow leads to a bigger bottom line, greater revenue for facebook? is there a worry and how do you tackle that criticism that you don't do enough because it basically generates revenue for you? we do not profit from hate. we have no incentive to have hate in our platform. users do not like it. from the surveys we conduct with users, they don't like to see hateful, inflammatory content on their news feed. advertisers have made quite clear they don't like it either. it is not a question of whether it is for or against hate. it is what did you do about it. we don't benefit from hate. humanefit from positive,
connection. haidi: that was facebook's vice president for global affairs and communications, nick clegg. pinterest has hired a law firm to investigate the company's culture over claims of racial discrimination. it will help pinterest evaluate and promote and pay its workers as well as complaints of harassment, retaliation and determination. earlier this month, two black women left the company alleging unfair pay and racial bias before posting the complaint on twitter. the world's top miner has shined a light on future trading, paper transactions and using digital technology to sell iron ore. that would use blockchain to run a trial sale of $14 billion of sale for delivery later this month. bhp says its reliance on paper has been exposed due to the coronavirus. the blockchain sale was conducted by mine hub
haidi: very good morning. i am haidi stroud-watts in sydney. we are counting your down to asia's major market opens. faces yet moreg uncertainty with the u.s. revoking its special trading status. washington says china's tightening grip undermines its traditional autonomy. been battered by protests, the coronavirus pandemic, and fallout from trade