♪ emily: i'm emily chang in san francisco and this is "bloomberg technology." the head of the u.s. centers for disease control says the time is past to contain the virus in certain states. signals the president stimulus may be coming, but when and for whom. and president bush's former comers head weighs in on the

efforts to stem the bleeding. quarantine, will people be flocking to netflix? massachusetts becoming the latest u.s. state to declare a state of emergency along with new york, california, and more. italy remains in a nationwide lockdown. u.s. stocks rally on hopes the trump administration will institute stimulus measures. to get all the latest on where the market closed, we are joined by abigail doolittle. better than yesterday. abigail: it was. also a wild day. day, the indexhe closed up about half a percent. -- when we dig into technology, the tech index had a

monster rally. but that comes after yesterday. yesterday, this index plunged. since 2008.y tons of uncertainty as to the true impact and fallout will be. some relief perhaps around the idea that you have that potential stimulus. it is hard to know what will help when the problem is unknown. we just do not know the true extent of the impact. psychologically, it helps. we take a look at some of the individual movers, apple up in a big way. we also have microsoft up 6.8%. yesterday's losers turning into some of today's big stocks. even with the massive selloff, the new york faang index still

overextended. let's take a look at a great chart. this chart we were presenting before the selloff, saying something has got to give. the index still above the 200 day moving average, suggesting more downside could be ahead. attention tog our the latest coronavirus situation. 150alifornia, over confirmed cases and two deaths. bloomberg has learned that two people who attended the rsa security conference late last month have also contracted the disease. the grand princess cruise ship is now docked at the port of oakland after days circling the waters off san francisco. haveast 21 people on board tested positive. we saw the ship passing by our

office yesterday. pullede there as they into port and started efforts to unload these passengers. started to unload passengers and are very securely trying to ensure -- in small batches, they are bringing people who have been exposed to the coronavirus or have confirmed cases, off the ship. include the 1000 or so american residence for american citizens on the boat. some of them will be sent to texas. beyond that, there are plans to create charter flights, sent some individuals to canada, send some back to europe. in the actual crew will go into the pacific ocean. all of this will span two or

three days as officials meticulously try to unload the ship. emily: do we know how many people they have been able to test? do we know if anyone else has tested positive? >> one part of this process, they want to go through the details and ensure that no one else is spreading this illness before maybe creating panic or wanting to engage with the media. right now, little detail other than the fact that they have started the process? emily: how else is the state and city of san francisco combating this? i understand they are opening up rvs to some of the homeless community that need to be quarantined? kartikay: there is a report that there are 30 rvs in san

francisco being used to quarantine homeless individuals who have nowhere else to go but a homeless encampment to ensure they are in a clean shelter while they go through the 14 day incubation process. they may not need hospitalization. they do need to be secure in away from other individuals. these rvs are being used as a method to keep them safe and secure. emily: kartikay mehrotra, thank you so much. coming up, president trump's plans to try and jumpstart the economy. formercussion with a commerce secretary, carlos gutierrez, is next. this is bloomberg. ♪

emily: president trump says his administration will provide assistance to cruise lines and airlines where the coronavirus has been devastating to business. in a meeting with insurance executives, the president had this to say. pres. trump: we will be helping them through this patch. emily: the president did not provide details of what that help involved. he says he plans to announce "substantial measures today. the president told republican senators today that he wants a payroll tax holiday through the november election. let's get to washington to discuss with bloomberg editor alex wayne. we don't have anything on paper. the news conference the

president promised yesterday has not been scheduled here. we have a coronavirus briefing at 5:30 p.m. that is usually led by the vice president. the president may crash that briefing but we do not know yet. emily: the president has made statements that he will have a substantial plan here. what is on the table in terms of things he could unveil? -- alex: they are talking about doing something for paid sick leave. i think the government is going to do something to extend some sort of paid leave to people who are infected and those sorts of jobs. we think they probably need to work with congress on that but there are people in the --

people in the administration who say they don't, they can to that on their own. he has also asked for this payroll tax holiday. democrats in the house are not real keen on this idea. they do not think a tax cut is the right thing to do to combat the economic fallout from the coronavirus. they would rather do things like paid sick leave and unemployment insurance. situationis a fluid across the united states. not necessarily california that actually has the most confirmed cases. new york and washington possibly have more. you have lawmakers very concerned. what are the dividing lines going to be between lawmakers? on capitol hill, some of the classic dividing lines between democrats and republicans on taxing and spending.

i think both sides of they'll want to do something to tackle the economic fallout. airlines are struggling, the tourism and travel industry is struggling. they want to get ahead of it, but they are in disagreement about how to do it. democrats traditionally want to spend money to fight recession sort any kind of economic slowdown. republicans turned to tax cuts first. each side disagrees on the efficacy of the other side's approach. it will probably have to be some spending, some tax cuts. they will probably get there but i don't ticket will happen soon. emily: will bring you word from the president when we get it. now, to discuss further economic impacts, i want to bring in secretary carlos gutierrez from washington.

secretaryas commerce to president george w. bush and was ceo and chair of the national food giant kellogg. first of all, what is your thetion to what we know and statements the president has made so far about his plan? mr. gutierrez: it is hard to say because we don't know what the plan is. conceptually, the idea of a stimulus strikes me as solving the wrong problem. it is a good tactic, it may be a good backstop, but we have a medical problem here, not monetary or fiscal or anything else. the only solution in front of us is medical. are we putting enough resources behind finding a vaccine? do we understand the virus? have we ordered enough testing

kits. today, we say, there are a small number of people who have been tested. our problem is that we have not tested many people. of all the countries impacted by the virus, we have done the least testing. that worries me. we should get after that. whether a stimulus can be negotiated, whether it can be targeted at people who need help, perhaps that could be a good idea, but it is not going to solve the problem. i think the president has to stand up and say, we have an issue, let's all stick together and let's get it behind us. but apparently that is just not the language coming out of the white house. cdcy: the head of the saying we are beyond containment in certain states. just how dire is the crisis? mr. gutierrez: i think it is

very bad because we really don't know. we are sort of in the dark. we know we have a problem but the numbers are not telling us how big the problem is. i give the states a lot of credit where they have declared a state of emergency. we are in a state of emergency and we need to do everything from a medical point of view. since we have not tested people in several months, there could be cases in every state. there could be cases spreading as we speak. i don't want to alarm anyone. the reality is we have not paid attention to testing and that will get us in trouble. we need to know how big the problem is. emily: what parts of the economy do you think will be hardest hit? there is an entirely new

economy, the gig economy, a brand-new group of workers that did not exist before the financial crisis. mr. gutierrez: service jobs. one of those could be driving an uber. the large industries that are going to get hit and continue to get hit badly. ships, airlines, cruise entertainment. anywhere that requires the gathering of a lot of people. conferences are still on calendars but as we get closer, they are just getting canceled. theproblem is to solve medical issue. we have a very high fiscal deficit. whatever spending we do is not going to be efficient because it is not the solution to the problem.

over, or it has gone down or under control, that we have enough to be able to get out of this mess. we have to remember, our economy was slowing down before coronavirus. the virus has just made it worse. it is not going to be a total rebound back. i don't see that. you ran kellogg for many years. should we be worried about food safety? companies,ez: food pharmaceuticals, they dress like coronavirus medics at all times. so i would not look at that specifically. i would be more concerned about people. about gatherings of people.

huge crowds where you just don't know if there are 2, 3, four people. emily: should we be closing all the public schools? mr. gutierrez: i think in areas where we have seen an outbreak, yes. overreaction, let it be an overreaction. i think it is a lot better than under reacting. i think we should do whatever needs to be done. in this case, it is our public servants who have these decisions to make. secretary, foru, sharing your thoughts. still ahead, as the virus spreads, more tech employees are staying home.

emily: several universities on both u.s. coasts have suspended or canceled classes in the midst of the coronavirus outbreak. ,his includes uc berkeley harvard, columbia big tech companies like apple, facebook, amazon are encouraging employees to work from home. one company trying to offer a solution is extended reality firm magic leap. fromceo with ed hammond new york. we have been innovating in that space for eight years. we are building a technology for all day, every day, and everyone. we know the inflection point. we identify the space, kind of inclusive ar and vr.

enterprise taking out first, then the consumer following with an inflection point in the 2023 timeframe. we see the 5g deployment becoming broader across the consumer space. the inflection point starts to happen in the 2023 timeframe. we have now is enterprise customers really starting to drive adoption. we have hundreds of enterprises that are using it for pilots and proof of concept and early deployments across communications. incredibly important right now as people need to collaborate and communicate but cannot get on planes and go to meetings, or go to conferences. emily: i will never forget magic leap's first demo, checking

email in the air, holding the elephant in your hand. we have not seen that yet. how transformative is magic leap technologies really going to be? usedth the examples you today, you can do today. my team alone, i have multiple employees -- i have a couple of folks who have gotten rid of all the monitors on their desk, they put on magic leap, and they are working. they have a conference call or videoconference going. these use cases are what we are deploying today. they are alive, not just internally, but also customers. bankingaribas, a large customer, they are using magically fanned a software toled spatial to connect

their employees around the world. their initial intent was really to become more green and reduce the carbon footprint, not getting on planes. with the backdrop of what is going on today, it is helping people collaborate. >> you talk about coronavirus being a boon to the business, but the consumer market is not really developed yet. i do you get the product to the consumer? emily: starting in the --mr. gutierrez: -- omar starting in the 2023 timeframe, we are starting to see that inflection point happened. they are excited actually about our next generation of product which is coming out next year, which is a significant step forward for the industry and for magic leap. that will be half the size and it will double the field of

view. we have got magic leap three it from a roadmap perspective. we believe those products get us toward that vision. we are not building a helmet that you have to wear for three minutes at a time but we are not building lenses that don't deliver the value. >> some of your competitors. microsoft building out their own product. facebook saying they want to do about $5 billion a year in this space. is it time to maybe look at getting some funding from the ipo market or taking on new investment? omar: i can't speak to those, but we have built a very significant, broad, foundational portfolio.

moat aroundy put a our leadership in the xr space. it makes it difficult for competitors to enter the market. we have got, our second generation product, which continues to expand our leadership next year, and the next product right behind it on ae roadmap for us to grab disproportionate share of that market, that is what our investors, figures, and employees are excited about. chief that was omar khan, product officer of magic leap. -- one analyst says even netflix isn't safe. this is bloomberg. ♪

emily: this is "bloomberg technology." as coronavirus fears way on the market, major tech internet stocks continue to feel the heat. apple, tesla, amazon, all down in the last month. rebounding from big drops yesterday. one analyst is saying even netflix won't be spared. our guest joins us now on the phone. thank you, laura, for calling in. netflix won't be spared? why not? you would think with all the people on the couch, they would be spared.

entire countries like italy are quarantined, and a lot of the countries in latin america are based on travel. if they don't have a social safety net, then people are not going to be able to pay their $13 a month netflix the. they will have to disconnect their netflix in order to pay for food because they don't have income but they still have expenses of living. international revenue line is a risk for netflix during the coronavirus emily: issue. of all the big tex companies, tech -- of all the big companies, which is best positioned to whether it? laura: none of them are. advertising for companies like google and facebook or worse. googles you ask about, and facebook are the worst position because they have so

much advertising, and advertising is slowing right now because travel is 10% of advertising. travel-based company stop advertising. when you don't get a dollar of advertising, you have 75% -- you lose 75% margin. so those companies have a lot of downside risk. also silicon valley is doing a very kind thing in that it is going to pay its hourly workers, even though none of them are coming to work. that will hurt the income statement as well for facebook and alphabet. emily: we have a piece about how google is fighting misinformation about the coronavirus on its platform. from one of the first times, google is getting involved in aggressively moderating the ranking system. surfacing new stories from mainstream organizations when asked about the coronavirus, d prioritizing what could possibly be fake news or misinformation

about the coronavirus. the same thing on youtube. google, who take on after for so long saying the algorithm can do it all, now jumping in there and saying perhaps they can't. laura: facebook is doing this, the trumping ads from campaign on biden as fake news. what is happening is the government is going to no longer allow these platforms to hide behind the fact that they are just an impartial communicator. it will force the platforms to curate the information that is spread over there platforms, which gives them liability if they make a bad call. nobody is complaining about google today because they are thinking it is getting rid of what is called fake news or news that creates panic, but extending that further structurally for the next year or two, it up -- it adds a lot of liability to the platform if they curate negatively or against somebody's best wishes.

emily: you also cover peloton. you have folks at home with their bikes, but also not going to the gym. laura: i really think peloton is well-positioned. it has 22 warehouses so plenty of inventory. the boxer made in taiwan. fitness people -- the bikes are made in taiwan. these are not going to be the people that run out and go to the gym. my guess is peloton will sell you a bike for $58 a month, plus the subscription fee. that is a logical alternative from the coronavirus because it is targeted at a high-end audience and these are fitness people who really don't want to get sick. so bringing their peloton in-house to their own home is safer for them. emily: laura martin, thanks for calling in today. to the impact of the virus on education. harvard university has asked

students not to return to campus after spring break. columbia suspending classes for two days after individual linked to the school was exposed to the virus. classesn will have online starting marched when he third. there are questions around the world from preschool to high school about not just whether to close school but how to keep kids learning in the meantime. joining me, offering videos to 93 million users globally, good to have you back on the show. it's one thing for universities to do this, when you seemed that most of the students have the equipment to do it. but when you talk about younger children in schools around the world, are we really ready for the students to go online only? they could be going online in a matter of days. >> the simple answer is, we are not. there are a lot of actors trying

to put things together so that we can keep students learning, essentially. the reality is, there are some korea districts in south that have canceled schools nationwide. it will probably accelerate in the u.s. over the next few weeks. is, they are likely to last through summer because we will probably not see peak cases or several weeks now. one logistic change it could happen is it could shift summer vacation up a few months and just resume class in the back half of summer. assuming that is not going to happen or we see some type of hybrid, a lot of districts are thinking of how to virtualize. there's a lot of complexity there. you can operationally do it, but there are equity issues of if all students have access. we are thinking about how do we

put our materials together, they are all free and accessible, looking for ways of teachers and parents and officials to keep track of what students are doing. how do we make it easy to use if students are home for extended periods of time, possibly months, so they can keep learning. emily: how do you structure a day of learning at home? what can parents and teachers do? >> my general sense is to keep it as simple as possible. if i have young kids, elementary school age, if you can do two or three hours a focused learning a day, that would be great. i would really focus on the basics, maybe an hour of reading, an hour of math. just focus on students being able to read and parents spending time talking about what they're reading with them. kids, we have an

andthat has over 100 titles has other things on math and science, it's all noncommercial. if you're going to elementary or middle school age, there is a reading this we can provide for parents. on the math side, we feel we have families covered from as early as pre-k all the way through high school and college, whatever they need. students are able to put in two 30 minute sessions a day of focus practice, the system will progress along and they can get there basics covered. above and beyond that, if you can do an hour of writing a day, journaling, thinking about what is going on in the world, that is interesting. for high school, we can support them for biology, chemistry, physics. we have economics and american history and civics as well. emily: do you have any lessons

or anecdotes from across asia where you mention that students have been at home for weeks, where things are working and where things might not be working? >> it is coming in bits and pieces. it first came on our radar last week, teacher and south korea had to virtualize and is using con academy heavily with his students. -- khan academy. are widespread school closures here in the united states for an indefinite amount of time, how well-off do you think our children will be? >> it's obviously not great, it is not an ideal situation, but as much as possible, i think we can try to make it a last half-full type of situation. if they are able to -- a glass half-full type of situation. especially continuing through

the summer, whatever patterns can get people learning when you haveosures happen, traditionally had the summer slide were not only are kids not learning, but they forget. so that is in opportunity of sorts. i hope that districts are able to provide some support for kids who don't have resources at home or at the internet. coming ony of kids site will be lower so there's less of a chance of spreading the virus. ,al kh, thanka you asn jack dorsey's job is safer now. we will discuss, next. this is bloomberg. ♪

emily: let's get to the dailyouse where the coronavirus thinkpad started by mike pence is going on. we will listen in on this and we will bring you any crucial developments or updates as we have them. in the meantime i want to talk about twitter, which has reached the truth -- a truce with elliott management and silverlake. they will get seats on the board immediately and a third,

independent director will be appointed later. there will be a succession plan for ceo jack dorsey, but jack dorsey keeps his job at this point. the tosha lam joins us, and active investor -- the tosha, what is your take on the deal that was struck here? specifically, jack dorsey keeping his job. i think he really threaded the needle on that one. i think what you saw here was both elliott and silverlake expressing their upset with the job that jack dorsey is doing, and i think for several good reasons. is too busy,nk he he is running two firms, both twitter and square. he had planned to take a hiatus to africa this year, which has since dialed back, blaming both the coronavirus and other issues.

i would say probably the primary issue for that kind of pullback, and then i would add to the pile what is happening on the platform in terms of how it is being used for hate speech, to propagate civil and human rights abuses. several proposals we pile this year that will be in front of twitter and also facebook and google, asking them to add another person to the board which is someone with human and civil rights expertise. emily: let's talk a little more about jack dorsey. he's also the ceo of square, he spends mornings at twitter and afternoons at square, or sometimes it is reversed. he said he was going to africa to work for six months, now he says he is not going to do that. when he decided to do both jobs, there was a lot of talk about whether he could continue to do it. now it has been four or five years. is it a sustainable situation? natasha: i don't think so.

i think we are in a wait pattern here with jack dorsey and the deal that was just struck. too spread.s it's not just an issue with jack dorsey, you see it across america, with people that just have too many hats. while there is the short-term truce, i think that over the long term, i would expect that things would shift, because frankly, twitter needs some attention. emily: meantime, you've been campaigning for more diversity and pay equity. facebook just added two women to its board. what is your general take of that particular move and whether or not diversity across the board is moving in general? natasha: i think it is. you just saw goldman sachs come forward and say were not going to take companies public if they don't have diverse candidates on the board.

however they define that, whether it's a woman or a minority, but there is a shift that is happening. emily: i'm sorry, i will have to interrupt you. we have to get to the white house, the vice president making some important remarks about the coronavirus. let's listen in. ence: we didnt p receive a comprehensive proposal from the cruise line industry that includes advanced screening, improving medical services on ships, fighting for airlift evacuation and land-based care, at the expense of the cruise lines for anyone that might be not only infected with the coronavirus, but any serious illness. we will be reviewing that in the next 24 hours. the president's objective is for us to make the cruise line safer, even as we work with the cruise lines to ensure that no one in are particularly

vulnerable population is going out on a cruise in the near future. fauciing to recognize dr. to talk about where we are in dr. burks will give us some research he has done on the scope privet we will have other updates. that me say once again, this is a whole of government approach and from early on, president trump has insisted that our government at the federal level, all of our partners at the state level work in concert to protect the american people. as we stand here today, the risk to the average american of contracting the coronavirus remains low. but we are absolutely determined to give every american the tools and the information they need to protect themselves, their families, their workplace, their schools, and we are going to work together to see our way through this.

and working with leaders in both and state congress leaders all across the nation and i'm confident we will. thank you very much, mr. vice president. just to give you a very brief limps of what we do every day, the cases continue to increase globally. we are paying particular attention to the cases in europe, italy, and france. relative number of cases come down from china but what were seen in europe, europe is in the upswing. that is something that is expected. that's the way these kind of outbreaks go. this is not a surprise to anybody, if you look at the history of infectious disease outbreaks. in the united states we continue to have new cases. as of this morning there were 712 with 27 deaths. by this evening, that will be up

and there will be several more. and tomorrow, there will be several more. so we realize this is something obviously we've been saying all along that we are taking very seriously. now the question is, what are we going to do about that? there are a number of things we can do. if you look at the curve of outbreaks, they have peaks and then they come down. what we need to do is flatten that down to have less people infected and ultimately, less deaths. you do that with trying to intercede with the natural flow of the outbreak. although we keep coming in and saying appropriately that as a nation, the risk is relatively low, there are parts of the country right now that are having community spread in which the risk there is clearly a bit more than that. and you know the places, like washington state and new york and florida. what i want to talk to you today for a moment or two is that we

would like the country to realize that as a nation, we cannot be doing the kinds of things we were doing a few months ago. it doesn't matter if you're in a state that has no cases or one case, you have to start taking seriously what you can do now, and if and when the infections will come, and they will come, i'm sorry to say, sad to say, they will. but when you're dealing with an infectious disease, he always had that metaphor that people talk about, like wayne gretzky, going where the puck is going to be. we want to be where the infection is going to be, as well as where it is. , if you gohave here to coronavirus.gov, yesterday we mentioned some of the things he put together. these are really simple. keeping the workplace safe, keeping the home safe, keeping the schools safe, and keeping

commercial establishments safe, should be universal in a country. everyone should be doing that, whether you live in a zone that has community spread or not. spread, have community you obviously have to ratchet up the kinds of mitigation that you have. but at a minimum, everybody should say all hands on deck, this is what we need to do. i will stop there, and later i will be happy to answer questions. that clarity.or we continue to monitor the situation across the country and across the globe. we are very fortunate, we have long-term contacts out there in many of these countries that are experiencing current outbreaks. we continue to review all the scientific literature to look for insights and to really determine who is at the greatest risk. that is why we have talked to you about people with immuno deficiencies at any age, people

with medical conditions, and the elderly. and how important it is for all of us to take these precautions in the household to protect others. because we have circulating flu and other diseases at the time, we all have to act like all of those diseases, any respiratory disease mccann be transmitted to others. as we said yesterday, we hope that decreases all the respiratory disease we are experiencing. finally we have new reports out that nine pregnant women were infected, and they delivered while they were infected, and all nine babies were healthy and the mothers were healthy. so we continue to look for daily like that. about the daily briefing the coronavirus on going there at the white house. vice president mike pence talking about a proposal he is receiving to help ailing cruise lines. and that they are monitoring the

situation particularly in france and europe. saying frank lee that there will be more cases in the united states tomorrow as well. speaking of the coronavirus and politics, both joe biden and sanders canceling planned rallies as mounting fears about the virus spread. there is still plenty at stake in the u.s. democratic primaries happening today across the country. stepiden could take a big closer to wresting the nomination from bernie sanders. the biggest prize being the state of michigan, which was a surprise victory for sanders four years ago. is it going to be the same for center sanders this year in michigan? the polls seem to indicate that it won't be. >> it's hard to tell. the polls also favored hillary clinton the last cycle, and

bernie sanders ended up with a win of maybe 1%. i think this time it is different, biden is doing very , he with the union workers has a commanding lead and is favored to win tonight. so i hate to say it is over, but i think it's going to be a good night for biden. emily: if you're looking at the rallies you see candidates high-fiving and shaking hands. after the pressure, they've been canceling some rallies. how did the campaign change if the candidates and the president cannot do these big rallies that are sort of the bread-and-butter of the race to the white house? >> that's right, well, first of all president trump hasn't said he is canceling rallies.

within the last half-hour both joe biden and bernie sanders said they were not canceling rallies for tonight but then we'll look at them on a case-by-case basis. either way, they live on going from city to city and having rallies in every city. some small, some little, but they are all with people in very close quarters. and of course these are both men in their late 70's. president trump is in his mid-70's. he hasn't said yet if he's going to adjust his rallies. how they campaign in the future is anyone's guess. it will be interesting to see how they campaign without physical contact with the voters. we will see. emily: we will be monitoring the pulse across the country. thanks so much for that update. that does it for this edition of "bloomberg technology."

we are live streaming on twitter, find us there at technology and follow us on quick take on twitter. i'm emily chang. this is bloomberg. ♪

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haidi: welcome to daybreak australia. sophie: we are counting down to major market opens. haidi: here are the top stories recovering in the next hour. the coronavirus spreads further with at least 10,000 sufferers in italy. u.s. health officials say containment in some areas is beyond control. china says the infection rate on the mainland is slowing.