♪ kurt: i'm kurt wagner in for emily chang. this is the "best of bloomberg technology." how the coronavirus has impacted tech with global smartphone shipments expected to drop 2.3% this year. we bring you the latest numbers. calls bymith reacts to equity investors to push out jack dorsey from twitter.

an interview with the impossible to enter on plans china despite the spread of the coronavirus. the global smartphone market has been slowing down for some time. the coronavirus will only make it worse. 2.3% tos will drop around 1.3 billion units. paul allen and emily chang spoke with the privacy -- the ibc president on wednesday. >> we have a number of analysts looking at this. we would say the tightest agreement -- ingredient in this is the people. not fully back to work. with think the manufacturers in --na are mainly 30, 30 5%

35% of capacity. they are slowly starting to ramp back up. china also has been a place where many components are manufactured. from that standpoint, what we have now is we believe the tightest components will be pc base and screens. that would fit with the story we have today, that if you are having trouble with replacement parts, what is one of the biggest parts? you drop your phone and you break your screen and you need a new panel. the idea that displays and screens are already starting to show up in short supply fits that story. that's what we are going to see. everything is generally tightening as we get deeper into this. emily: we have heard tech conferences are being canceled. you canceled a conference that was supposed to happen today. >> down in santa clara. emily: there is all this loss of productivity. employees working from home. employees may be not working at all. how do you begin to assess the impact on the technology on the industry?

crawford: we are living in this time where we have seen gdp and tech. growth has been over 2x that of gdp. in 2009, we were shipping dog food banks. that was 1.6 x. tech was growing at twice the rate of gdp. the first thing we look at is the gdp growth rate going forward. we have put together a number of scenarios. we have an optimistic scenario, a probable scenario and a pessimistic scenario. we think in the optimistic scenario, gdp goes to two and a half percent. in the probable scenario, it goes to about 2%. in the pessimistic scenario, it goes to 1.4%. and then, of course, we would look at all of the different components that are tied to gdp as well as overall demand and what verticals will be impacted. we believe from a probable standpoint and from a probable

standpoint, we are talking about if china starts to come back online in the springtime, but faces headwinds into the middle of the year going into the second half of the year. the probable scenario says the virus spreads around the world, which is what has happened. we are out of the optimistic scenario. we think it comes down to how much it spreads into other regions of the world. it is taking us somewhere between the probable scenario and the pessimistic scenario. that takes i.t. demand from where we thought it would be to somewhere between 3% and 1% growth. we could, in a negative scenario, get 0% growth. we do not think that will be the case. we think it will be between those, let's call it two and a half, maybe 3% growth. paul: i am wondering, to what degree are cloud services insulated?

crawford: great question. when you look at the overall services market, those tend to feel the impact a lot later. as a service business, we think -- to answer your question, not nearly as much as the people making the tangible goods. it is a lot easier to say, i will put off my pc buying. i will put off my mobile phone buying. the actual people who are at the top of the stack in service or cloud applications, in this marvelous time where technology is eating the world, if companies are going to be in business, they are using a cloud service provider. that means they are likely not to back away from those cloud service providers. kurt: that was ibc president crawford del pratt. despite trumps claims that his administration is ready for the

thatavirus, the cd says cdc says they will not be able to meet his goals of one million test kits by the end of the week. ofspoke to a professor epidemiology at the johns hopkins school of public health. >> things are ramping up. i'm pleased that diagnostic and willhas increased continue to expand in the coming days. more cases might feel alarming but it is us just getting a better understanding of the situation. paul: are enough kits available? >> yes. they are coming online and about are already online this week. about 1000 a day if things run smoothly.

emily: tests have not been available. we are looking at cases going back two, three weeks in the united states. what's your best guess? how many americans actually are infected by this virus that we don't know about? dr. rivers: it is impossible to say and that is what it is so -- that is why it is so important we have testing capacity. that is why i think we will see more cases in the coming days and weeks, because there has been transmission likely happening that we have not observed. we are going to go out and find those cases and get a better handle. there's no way to really estimate what the current status is. emily: what is your long-term outlook for just how serious this is and how many lives it could claim? dr. rivers: i think the current risk to the average individual is low. for communities that are seeing transmission, i think the state and local public health departments for those jurisdictions are communicating about what risks will be. i do think there is reason right now for the general public to take steps to reduce their own personal risk, regardless of what they are seeing in the community. the best ways to do that are hand hygiene and respiratory

etiquette which is covering your cough and staying home if you are sick. paul: i ask this question to a number of guests, because you see a number of people walking around with facemasks. are they actually effective? dr. rivers: they are effective if sick people wear them to contain their coughs and sneezes and so on. they are not particularly effective for well people to stay well. we are concerned about supply chain and making sure health-care workers have access to those masks, because they are at high risk being in contact , with people who may be sick. we want to make sure they have access to the supplies they need to be healthy. kurt: that was dr. rivers of john hopkins school of public health. why some activists want changes at the top of twitter, including pushing out jack dorsey. news, you like bloomberg check us out on the radio come on the app, and in the u.s. on

sirius xm. this is bloomberg. ♪

kurt: shares of twitter surged after reports that elliott management is pushing for changes after taking a stake in the company. this includes moves to replace jack dorsey. it's hard to talk about somebody else's position. twitter is a position we have looked at for quite some time. we have a lot of respect for elliott. having a cfo who is the cfo of two different companies is highly unusual. jack dorsey unusual enough to be that special? he might be. he might not be, i don't know

the answer to that. discussionmight be a among jack and the board, as well as elliott in the sheriff's to determine whether there is a construct to manage that company. i have predictions, but i don't think it is appropriate to share those. >> is it a better company with or without jack dorsey? >> i'm not sure i can answer that, and it depends on in what capacity. i do believe jack is a visionary, a unique leader. don't actually know how involved he is and how he is doing at the company. one you have been active on his ebay. last month, you wrote a letter

berating them for not having done their strategic review fast enough. what do you need to see happen to be satisfied. -- satisfied? >> ebay is one of those terrific businesses that should be able to handle the situation well. stubhub, one off of the things we were asking them to do, we would like them go further. on the operational side, we need them to perform better. there's more that needs to be done and it needs to be done focus, and weore care. there is a ceo search process and we care. we expect them to hire a best-of-read see. -- best-of-breed ceo.

the talent of the ceo is important and we believe ebay can attract one. is something you are working on currently? >> we have conversations with them frequently and it's around this time of year when it makes sense to talk about board representation. that is not always the answer. it may be, in this case, but not always. at,very company we look it's not about the board to start with. a board, but the board is overseeing management. at the end of the day, the important thing is the ceo and strategy. when you hear us talk about how companies can improve themselves and create value for the benefit of all, the ceo is incredibly important.

we will talk about that or the plan when it relates to what can be done differently. have aay, we can conversation about the board, but the most important decision is a superstar ceo. kurt: that was jeffrey smith. for more reaction on the surprise push for change, let's hear from the partner and chair of an activist shareholder who spoke with ed hammond. important to understand that founder-led companies are just different. and jack dorsey is one of the most iconic pioneers. he has founded one of the most influential media companies of all time and has started to do really good. ren he joined, he started to ight the ship. numbers were good relating to

audience growth and retention. board you have the former president of the world bank, of google. bankers, the ceo of salesforce. executivesat list of and so it is strange elliott would choose this time and this company to go after. >> and not huge tenure on the board either. do you think they have bitten more than they can chew? >> i think so. elliott does not have much experience in running proxy fights the last proxy fight they ran was several years ago and i think they have misjudged the situation. kurt: that was a partner and chairman of a shareholder activism process. up next, we hear from this

german automakers ceo. at later, and its lucid interview with the ceo of exclusive foods -- an interview with the ceo of impossible foods on disrupting global supply chain. ♪

kurt: once the go to brand for luxury buyers, bmw is facing pressure from tesla. the answer to the electric threat is a sleek, battery-powered car. the cfo spoke with matt miller in germany on the launch of the new electric concept vehicle. >> a real bmw does not compare to any other brent. -- brand.

that is where it comes to the heart of our brand. that is the first real dynamic car from bmw. it has an acceleration of only four seconds to 100 climbers -- kilometers an hour and it looks like a real bmw. >> the range has been the hardest to nail, but it has also got 500 horsepower. how do you achieve that? we started in 2013. that is when we started to ponder the future. architecture has to be able to be flexible enough to cater for mobility and combustion engines. that is the result of our thinking. >> you don't think electric cars are the future?

>> you know, the world mobility market is highly fragmented. will be situations where you can have only electric cars, but for bmw, we need all of the dynamics. it's much more than just the engine of the car. but there will be other segments with only pure electric architecture. >> i am a motorcycle rider. will you have an electric motorcycle on the market? >> there are no decisions on that yet, but we have time. are a different market segment then cars. full mobility has arrived in the car market. everybody is working on it and we have sold thousands of vehicles last year and we will accelerate that expansion.

isinitial investment obviously huge and you have done a lot of investment in production. will the costs after that start to sink? you need fewer parts in an electric mark -- motor. >> i'm not sure the complexity is diminished. , and are sony components to have flexible components gives us a huge advantage over the competition. >> what about the headcount? a lot of your competitors have already started reducing headcount and you have yet to do that. do you need to? brand so wegrowing need our workforce. we have started to invest more heavily into electro mobility, so there is no need for us to

reduce our headcount. >> i have to ask about the coronavirus. there was a case here in munich. is it likely you will have to shut down any facilities? >> i can confirm that, as of today, we had one case in our center. was putimmediately did the temporary worker into the hospital. the hundreds of people who met at have been asked to stay home and be placed under quarantine. but currently, the measures are not necessary. measures, we have the right strategy. >> what is the biggest impact beyond the people? as far as the business of selling cars, when we things things like fiat

chrysler, when we hear about empty showrooms around lunar new year, is it a demand or supply problem? >> you refer to china. we had the new year's afterwards,, and customers did not return to the normal routine. it does not impact our markets in china. now, the world is normalizing and we don't see any serious effects on our supply chains, but that is something we have to watch. it is quickly evolving, obviously. you're cfo said bmw still expects sales growth in china. can you confirm that is your target? ande expect growth in china over the whole world.

whether that is true over the coming weeks, i would not be able to confirm. but it is far too early to make prognosis for the full year. >> it's only the beginning of march. it's also the beginning of your tenure here as ceo. congratulations on that. what strategy do you want to do differently? >> we have a set strategy. about wille pondered not change rapidly. we want to be faster than the competition, expand more quickly. i think we have created a very specific strategy which fits perfectly and we are rolling that out now. we are quite confident about this.

>> you didn't make a plan to build minis in oxford. what do you expect for the future of the brand? years, we have been pondering what the effects would be but there has been non-whatsoever on the production, supply chain, or brand in the united kingdom. we will also see what happens until the end of the year. i would be a little more optimistic than the public. makee end, everybody will sensible decisions and industries and markets can develop further. many i could envision being built somewhere else. i can't imagine building a

rolls-royce coach anywhere other than england. >> absolutely. rolls-royce is an english brand with english origins. that will stay. is arguably a pure this product. peerless product. >> we are by far the market leader. we own 50% of market share and that is evolving rather independently of the rest of the world. i think we have set the ground for further growth. that was the bmw ceo. coming up, why hp rejected a takeover offer. we are livestreaming on twitter. and follow our

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of bloomberg technology." i'm kurt wagner in for emily chang. on thursday, hp rejected an unsolicited takeover approach from xerox. saying it quote meaningfully undervalues hp and disproportionately benefits xerox shareholders. they said they have many routes to value we are not dependent on a combination with xerox. we spoke to hp's ceo on thursday. >> we have rejected the offer for two reasons. first, it undervalues the

company, second, it creates a risky balance sheet, and third, it is unrealistic. because of those reasons, have rejected the offer because we do not think creates value. complaints about xerox's you have said they are a company in terminal decline. how can you be confident of that? the devaluation of the company and we can steer clear. the best way to estimate that is the total contract value. it is easy to predict where the business will go and this will be key information to understand the performance going forward. >> one would assume that information is to put an offer on the table and get do

diligence. -- due diligence. when i do that? >> we need to make sure the value exchanges right, whatever the combination from the capital structure needs to make sense. and third, he needs to be realistic. this is the conversation we need to have before any discussion can happen. >> in terms of the pure logic of a combination, the printing business is a part of hp. would make sense to combine an extended platform? >> we see logic and consolidation in the market area there is an opportunity there. we have been the first market driving consolidation.

we took a market that was losing company and it will help us to grow into spaces where we are not operating. we have seen consolidation make sense and we are open to exploring that opportunity. inyou came into this role november. immediately, you find yourself in a hostile situation. on the others, what have you learned from it? >> this has been the key thing we are driving in the company. we need to continue driving the business forward. we need to make progress with our partners. the results really show the ability to not only stay focused but continue to make progress in our businesses. >> we are so focused on the potential deal, that we lose

sight of the fact you are running a significant company. switch on to what's going on there. how is the coronavirus affecting hp? >> it is a big company and we have many parts unrelated to the recent actions. we said the virus is impacting our business. side,n the manufacturing after chinese new year, manufacturing ran in china was slower. -- ramp in china was slower. we expect to recover in q3 and q4. kurt: that was hp's ceo. turning to gender equality in the workplace. women have been told to change themselves and be more assertive to succeed at their jobs. but the director of inclusion at netflix thinks that's not going to close the gender gap.

fix," shek "the argues it's time to stop the women-fixing epidemic in time to start fixing workplace. she was head of the u.n. coalition for change, she spoke with emily chang and paul allen on monday. >> it's insuring you know what the barriers are that women and minorities face at work. you remove those and create a workplace culture where people are valued for their individual identities. there is a big focus on creating belonging, an environment where employees feel they can contribute in a unique way. currently, we don't have that. a 1950's to conform to ideal that does not really serve anybody. this is about crating the right organizations where women can thrive. paul: i was intrigued by that

1950's ideal that you mentioned. men are expected to fit some certain gender stereotypes in the workplace as well, aren't they? michelle: it was part of my research that i was surprised. -- surprised by as well. i assumed the outdated, what i call the don draper ideal work for men, but it simply doesn't. there are many barriers to their ability to thrive in the workplace. there are many as a result of this, things like mail silencing, male bullying, the inability to talk about difficulties in workplaces. i always say, gender inequality is one of the best things to happen to men. they just don't know it yet. >> some of the takeaways from your book, diversity programs are largely not working despite the increased parental leave. workplaces are failing parents. what are some things the rank and file can do if so much of

what they aren't -- are doing is not working out? michelle: the main thing we are asking leaders to do is lead. we need leaders to manage the day-to-day inequality moments when they happen. in order to do that and to be aware of how inequality is showing up in your work, you have to know what the barriers are. when the inequality moments happen, so you can recognize them and intervene. speak up. advocate on behalf of women. use those moments as learning or teaching moments. in order to do that, we need leaders to disrupt the denial. we found most leaders are in denial about inequality that men and women experience in workplaces. they believe that workplace is a meritocracy. that it functions for everybody in the same way and that is simply not the case. living up to this outdated ideal is what creates challenges and barriers. ,urt: that was michelle king netflix director of inclusion

and author of "the fix." coming up, how plant-based impossible foods has placed itself amid the virus outbreak. we hear from david lee next. this is bloomberg. ♪

makerapple's top iphone says it expects normal operations by the end of the month. the unit assembles the majority of iphones and others have seen a swift recovery from the disruption. they say factories are currently running at 50% of capacity because of the outbreak. china's number two online retailer sees revenue growth saying0% whilst -- while

it's palit or estimates. they reported income topping the highest estimates on robust user growth. less than0% growth is half of what analysts expect. demand for more quality controlled food and shipment safety is also rising. impossible foods, famous for its impossible burger, is sticking with its plan to enter china at a time when animals are more scrutinized. emily chang and paul allen spoke to david lee in an exclusive interview. >> there's no question that since asia comprises nearly 40% , oure entire industry mission at impossible foods remains the same, which is to eater whetheret they be in asia, china, or here

in the u.s., more and more of our great impossible burger and impossible pork made out of plants. we are excited to announce we are passing on cost savings by reducing cost to wholesalers by an average of 15%, a move consistent with our global mission to be available everywhere. emily: china is the world's largest consumer of pork. that makes sense. but let's talk about food safety. this is a question on everybody's minds. what are you doing to ensure the safety of your shipments, and should the public be concerned about broader food issues? >> impossible foods was founded by a phd, md pediatrician pat brown. from the very beginning eight years ago, our fundamental culture, our dna, is rooted in ensuring we have the highest quality options that hard-core meat eaters can crave. for us, that means being radically transparent about how

we make our products, ensuring we pick the right plant-based ingredients to ensure that the public is certainly safe, but beyond that, has a better option than the incumbent industry for their health and the environment. paul: do you anticipate any sort of marketing difficulties in china for plant-based meat? >> i think the verdict is out that meat eaters, not just here in the u.s., but as we have seen in singapore, hong kong, and macau, meat eaters globally crave meat that doesn't make them feel as guilty. the impossible burger is that. a crave a bull burger, a slider e burger, a slider for less than two dollars at white castle or in the hands of a michelin star chef, and it can transform in the hands of a chinese chef as it has here in the united states. i don't anticipate that changing regardless of the headlines of the day. paul: the headlines of the day

, of course, mostly circulate around coronavirus at the moment. has that had impact on your supply chains? >> we have had no material impact, and frankly, it has allowed us to focus on distributing more of our product. we have seen such unprecedented demand that even as we are fully in stock today, you can get a quarter pounder made by impossible at any mom and pop restaurant that wants to serve it through our distributors today. we know demand will increase. we have been undeterred and frankly not distracted by the news of the day in serving our mission. emily: disney resorts have been closed in china and shanghai and hong kong. what about your partnerships with disney world and the cruise line? any impact? >> we were really privileged to see disney chose impossible foods.

it was years in the making. they have an extremely high bar on quality. for it to be the choice they made for the plant-based products they are happy to serve is something that i think will pay off for the long-term. we have not seen any impact today, but our focus really is on a long-term business that goes beyond what we see day by day. kurt: that was impossible foods cfo david lee. this studio responsible for creating iconic products. i spoke to the founder and partner about the design process and how the retail experience can be improved with better product design. >> if you reinvent something, you will probably not get the acceptance that you want. so you start with what people isw and draw them into what

new and beneficial in their lives. >> can you give us an example? .> this uses at a technology. it weighs your food, but ultimately, it has to look at behave like an oven. anything, needs to just be a good oven. ball was a spherical floating on a cushion in your counter people would not have bought it. design,i think about this whole idea of real simplicity is certainly appreciated. i am wondering, as a non-designer, how much of that is a trend? how much is just built into the way things should be designed. >> for me, it is built-in. beautiful,imeless,

the way things should be. what's challenging is things are very complex. the art and process of making it simple is very challenging and takes a lot to do. maritimeat enormous making technology understandable -- in norma's amount of time making technology understandable and easy. what is a product in need of a redesign right now? >> there are a lot of things in the see them constantly. and you seeids, them a lot. there isen's products, an enormous amount of nonfunctional design and waste. it's time to start putting as much attention on products for children as we do phones and watches.

conversations my with ammunition founder robert bruner. of tesla'swhy one largest outside shareholders does not spooked by the rotavirus -- coronavirus. we hear about opportunities in the chinese stock market. this is bloomberg. ♪

kurt: facebook and its partners are weighing a revamp for the libra project in an effort to appease global regulators. they are considering a payment network that accepts multiple coins. sources say the libra association lands to reintroduce of the project soon.

this hotel group is cutting its global workforce. most losses will be in china, where businesses crumbled in the wake of the coronavirus. is alsoan startup cutting jobs in the u.s. and japan. at company was once valued $10 billion, but investors have soured on money-losing businesses after wework. seesnvestor still considerable opportunity in the chinese stock market. christopher hammond spoke to james anderson about the chinese companies he is eyeing. >> the current pattern of capitalization is wrong. the extremest to profitability, dominance

of the retail business, the whole area of enterprise and corporate software in the cloud in china is underdeveloped. alibaba is positioned and a strong premise of the growth drivers for the future are profound. the finance side is pretty powerful. >> what are some of the challenges? a lot of your bets are based in china. it is not the same as investing in the u.s. or europe. what are the challenges? >> the first thing is that people that run these companies are very much of the long-term owners and deployer's of capital. so there is that similarity with the west coast american model on that front. we have found that innovative companies, those the government feel are driving things forward are allowed to have dominance, but they occasionally have their wings clipped and regulation

in china is probably more effective than europe or america. >> that is a marked difference between the china -- between china and europe. you have much heavier state involvement in these companies, particular the ones viewed as driving the economy. >> yes and no. i am quite interested in the degree to which these chinese companies, the environment is still profoundly dynamic. when you think about the big american technology companies. they are the same we haven't ones. really seen anything dancethe emergence of byte or tiktok from america in recent years, so this environment is probably more dynamic in china than elsewhere. >> looking beyond the fluctuations in the market, how much of your bet on china depends on political stability? i think any serious level of

political unease in china would interrupt it for some time. extent, we have always felt we would get prior indication. ultimately, legitimacy of the party depends on delivering these societal goals. and hence, you see that breaking down first. >> i we spoke about the damage conflict. softbank is the heart of that. they are at the peak of that model. do you think they are to blame for breaking the model? >> i i think they have a share of responsibility. the model is broken from the process itself.

in a deeper way, i don't think companies need to go public until later, and that is structural. i have to say, i have quite a lot of sympathy. i think you can pursue longer-term goals. if i may be complementary to iny venture capitalists, think being owned by benchmark and sequoia is good for a company, where it is not always clear the market is supportive. >> if you have this shift where a lot of gains -- are being contained in a private market, it concentrates those gains in the hands of the few, the rich. >> i am very sympathetic to that. we are trying. we are trying to give people access at a much lower cost. i know we are not directly involved, but our investment

trust charges less than 0.5%. >> we have often spoke about tesla, usually when it is a lower price. today, it's at 7.25 at the close. are you selling at that level today? >> no. i want to be completely honest. we have some clients with holding restrictions. as we have already explained in the course of the last month or two, we have had to do something about that. no, we thinklly, the company is stronger and more competitively advantage -- advantaged. we are buyers of weakness more than anything else. the pattern these days is much more that increases in share price are tending to show the companies's winning a very large area. the opportunity for tesla has

gotten greater, not just in the extent of its leadership in the industry. so i don't think i can give you a figure. we will tell you when we get there. hitspromise that if it 5000, we will have you back on. kurt: that was james anderson. that does it for this edition of "best of bloomberg technology." we will bring you all the latest in tech throughout the week. tune in each day at 5 p.m. new york. of course, bloomberg technology is livestreaming on twitter. check us out and follow our global breaking news network on twitter as well. this is bloomberg. ♪ awesome internet.

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jonathan: from new york city for our audience worldwide, i'm jonathan ferro. "bloomberg real yield" starts right now. ♪ jonathan: coming up, treasuries heading deeper into uncharted territory. credit funds suffering the biggest weekly outflows in years with crude markets plunging into the low 40's. we begin with the big issue, treasuries surging. >> just when you think treasury yields cannot go lower. >> lower. >> lower. >> they continue to do so. >> yields at record lows when the fed cut. >> global bond yields at historic lows. >> record low treasury yields. >> they have gone to further record lows. >>