♪ i'm emily chang in san francisco and this is "bloomberg technology." deeperkets plunging despite the federal reserve's latest efforts to prop up the economy. cities and states taking unprecedented measures to keep residents at home. the bay area announcing a shelter in place order. shelter in place

extraordinary, we will have the latest. life disrupted as schools and businesses close around the world. sandbergcoo sheryl joins us live. this, as facebook shares plunge. thet, to our top story, markets going deeper into the red over fears that the economic fallout over coronavirus will be more prolonged and painful that we all expected. president trump say life could be disrupted well into the summer. the s&p sinking 12%. the dow falling to its lowest in two years despite the federal reserve cutting rates to zero. for more, i want to get to romaine bostick. so much red everywhere. break it down for us. romaine: you talk about response with regard to the monetary policy.

what you have today is a market that has basically figured out that what is ailing the u.s. and global economy will not be solved through monetary measures alone. the dow and s&p 500 had their worst single day percentage drop since black monday in 1987. you look at the nasdaq and small caps, worst days on a percentage basis on record. this is basically a market that is now pricing in what is already a technical recession with the anticipation that we could see a fundamental recession. we have talked to a lot of economists. were aroundes who during the financial crisis in 2008. they were there during the dot-com bubble. they have all said there is really no precedent for what we are going through now. people are staying home, they are not going to work, they are not really buying anything that

is not essential to their day-to-day survival. this is something that you would have to go back to at least the great depression to find anything equivalent, but definitely nothing in the modern era. emily: the president's remarks becoming grimmer/ romaine:'s comments definitely were a little bit starker than what we had seen before. todayw a bit of a selloff when he began speaking and laying out the idea that in his words this could go until july or august. at the same time, we talked to some people who said they were encouraged by the fact that his tone was a little bit or serious. we see him sort of falling back on his health and economic advisors in a way that we had not seen in previous weeks.

this is something the market had reacted negatively to in the past. pain,term economic short-term market pain. -- we could see a .napback sometime in the future emily: i want to look at the markets and the tech sector or in the future -- in particular. mark, facebook down almost 14%, apple down 12%, alphabet down 11%. what is your take on how big tech will weather the next couple of days? >> i don't think there is any they willthink that not be impacted. the big question is the

magnitude of the impact, and it will depend on whether we tip over into recession. google definitely slowed down during the great financial crisis but it was still able to grow during 2009. a lot bigger now, you have to ,ssume that any major marketing advertising recession that -- there is some recession testing here. some of these names did back then hold up relatively well. amazon and netflix, very little change in revenue growth. the stocks came in but those also created great buying opportunities. negative impact almost across the board. somewhat impacted in the middle. about the's talk

middle of the road companies, they depend on advertising for a broad part of their revenue. in a downturn, is this really bad news for them? mark: yes, it is bad news for them. you see companies cut back on brand advertising. facebook probably has a little more exposure than google does. 10-15% vertical for a name like google. they definitely would be impacted. there is no escaping it. these companies have cyclical exposure. the question is by how much their growth rates would be cut. a great is even in financial crisis, they will still be able to grow, but nowhere near where they are growing today. emily: we had laura martin from need him on last week saying

that even though you can watch movies from the comfort of your own home and you might think a lot more people are doing that, what makes you think that netflix and amazon will be spared here? mark: i am not a person to say any of these companies will be spared. it is a relative call. inexpensive,ix is at-home entertainment. it is inexpensive, maybe not versus disney but certainly versus going to a movie theater. you can watch as much as you want for $8.99 per month. in the 2008-2009 recession, there was almost no change. were they able to pull off a price increase this year?

no, but i don't think they were looking to do that either. amazon, over the years, this increasing amount of staple spend going on at amazon. we just saw this news announcement that amazon is hiring more employees to keep up with the surgeon and demand. ,arts of amazon will be week but parts will probably be strengthened by what we are seeing now. finally, there is the cloud business, a cost-inefficient way to run your business. i think that would only be modestly impacted. additionalng an 100,000 workers. times noticed delivery getting pushed farther out, being more scarce. you talk about alibaba as an of the companies that will most be negatively impacted here. what do you see? mark: they are about as close to

ground central as you can get. in all fairness, it looks like they may have gone through the worst of it. they had a supply seizure. they just could not get people in the streets to deliver products. like their careers are back out in the streets in most cities in china, delivering great so they may have already seen the worst of the impact. if that is the case, that aba the virus iser, if as reasonably well contained overtime. emily: uber and lyft have taken a big hit. that said, they are becoming more like utilities. if you are in the bay, you are not leaving your house tomorrow. what does this mean for them? mark: my first reaction is that

they would only be modestly impacted. but the ceos today saying they were seeing something like 40% reduction, you have to start extrapolating that to other cities. we are clearly going to go through that in the bay area. 90% reduction in demand. whether that is for a week, two weeks, three weeks, we don't know. more impacted than i initially thought. i think we have to get back to thinking -- it is the duration that now matters. , they saw as much as 50% reduction. i would extrapolate that to all of the markets. the question really gives duration and that is an unknown for all of us. i don't know how one can have any confidence in what the duration is. that makes these stocks, especially as they are pretty far away from profitability,

volatile. emily: thank you for helping us try to navigate through it. coming up, an exclusive conversation with facebook coo sheryl sandberg about how the tech community is leaning in to help those in need. this is bloomberg. ♪

emily: facebook shares plunge yet,the rest of the market let's get the perspective now from facebook coo sheryl sandberg. obviously, the news has been changing by the minute for the

markets, for your company, for people who live in the bay area. i have to ask you on your perspective about what we are seeing in the markets. larry summers says we are headed for a recession. you worked at google, you helped navigate facebook through the financial crisis. where is this going? --nk you for having me meryl: thank you for having , emily, and welcome back from maternity leave. we are all watching this carefully. at facebook, we are really focused on not just ourselves but small businesses that use our platforms because this can be devastating for small business. we rolled out last week a business hub. some of them are able to replace some of their brick and mortar walk in does this with some online. we want to help support that

because the impact on small businesses is going to be very scary and very real, and people need jobs. emily: facebook headquarters are in the bay area. we are going into a bay area-wide shelter in place order tomorrow. what does this mean for facebook? have been aggressively pushing for people to work from home, contractors, we are paying whether or not they are sick. jobs where we still have people coming into the office, we are getting as much of that home as possible. people but also keep providing the services we provide all around the world, which we think are increasingly important in this time. we are seeing more people turn

to our products, especially video chat and messaging products. emily: schools across the country are closed and you are launching a massive initiative. a lot of people don't realize that kids depend on schools for hot wheels. talk about this effort and how other people can join you. is al: food insecurity major issue in this country. one in eight children in america does not know where their next meal is coming from and one in three in silicon valley. this is something i have been working wound -- working on for a very long time. helped secondi harvest, a food bank, with a group donation. -- my facebookt fundraiser has raised almost

$200,000 in just two days. i think people realize -- 30 million children in the country get 10 out of 21 meals at a free and reduced -- we need to help these families. there is a food bank in every local area. you can go to feeding america and find yours. i would like to see any way we can support people. it is a very serious risk of meeting basic needs and food of all things right now is something that people desperately need and people are really worried about it. emily: people are desperate for information and the coronavirus seems to present a unique opportunity for people to panic and believe misinformation, everything from fake cures, who

created the coronavirus, and this being a media fantasy. when it comes to influencers on facebook or instagram, how are you handling potential misinformation or misleading claims in the time that we are in the middle of a public health crisis. sheryl: there responding to this with all hands on deck. we are working with who very closely and directly, taking things down that they say are harmful right away. we are trying to get good information out to people. just did and i handwashing video and we are asking celebrities across facebook and instagram to share that information. it is about taking down the bad and getting out the good. we are partnering with the u.n. foundation and who to launch a response fund. i've already raised $3 million

on facebook and we will do our match whether or not we hit it. we are going to do the same for the cdc very soon. this is about taking down the bad information but getting the good information and support out to people. incredible organizations like the who and cdc will need everyone to be doing what they can do to reduce the spread. emily: what about misinformation and private groups where sometimes the most critical misinformation resides. sometimes that is medical misinformation. with covid-19, if it is harmful information, as soon as we can find it, we are getting it down as quickly as we can. we are also seeing a lot of facebook groups doing amazing things. there were groups in italy, which has been particularly

hard-hit, getting together online to provide support. there is a doctor in lombardi, italy, that has been providing services to patients, not even her own patients, just people in the area suffering from isolation, anxiety online. we are seeing churches and synagogues put their services online. we have seen this with other disasters even though i don't that we have seen anything like this, where people come together to support each other in any way they can. we will be doing everything we can to facilitate that. emily: facebook is down almost 14% with the rest of the market. how big of a downturn are you preparing for and how well-positioned is facebook as a business to whether this? this is not going to be business as usual.

the marketing industry will feel a big impact. keep, we know that we can paying our employees, paying our contractors. we know that we can keep the lights on whereas so many small businesses around the country and the world to not have that luxury. that is where we are really focused. .hat is much more important you will see more coming from us, including this week, in big efforts to help small businesses around the world. panic across the country, life being disrupted, not enough testing kits, what do you need from businesses and governments around the world to inspire confidence right now? sheryl: i am not a health expert. at facebook, we are relying very heavily on the health experts.

we need a strong response from our government, our health care system we will need a strong response to help people socially isolated. any unnecessary contact right now, we have taken that very seriously at facebook. i know that my fiance and i have taken that very seriously for ourselves. we also know that the government is going to have to have strong economic responses because they are already seeing people suffer. that is why i was so grateful to the people across silicon valley who donated to our food bank. it is serious and we all have a deep responsibility to do everything we can to help keep other people safe, and that means cutting down on all of our social activity, anything unnecessary, so that the people on the front lines -- my sister is a pediatrician, she has to go

to work. home, thee stay at safer it is for her and other health workers. emily: you are matching donations for anyone who joins you in this effort through the second harvest of silicon valley. sheryl sandberg, thank you for joining us. stay with us. this is bloomberg. ♪

stocks plunder to the most since 1987 as president trump warned that disruptions from the coronavirus could last well into the summer. more on the markets. we saw a broad selloff today across most sectors. tech, give us a highlight. >> we did see the nasdaq and s&p 500 take some major hits on the day. what you really want to take away is the way that tech is interacting with these volatile

swings in the market, moving in both directions. broader stockmarket, massive losses followed by massive gains. tech really leading on both sides. investing in tech, now is really the time to kind of buy in. people i am talking to our taking the opportunity to buy the debt. there is a shortage of liquidity in the market. you are seeing people cutting their positions, really targeting tech because you are of course exposing yourself to the industry in larger volumes than other sectors. continue are going to to monitor all developments and watch the open into asia. thank you so much for that update. this is bloomberg. ♪ plenty morethis is bloomberg. ♪ ahead. this is bloomberg. ♪

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emily: welcome back to "bloomberg technology." i'm emily chang in san francisco. back to the markets. we want to read about how equities and bonds did today. we have romaine bostick on the phone. we have david schwab well, the chief investment officer of family management corporation. thank you for calling us. obviously, it is so hard to know what you should be preparing for . what are you preparing for as you work your investment strategy over the next 24 hours? >> that's a great question. i think it is just unprecedented times. every day, the news flow is

happening so quickly that it's almost hard to keep up with. on a short time horizon, investors are trying to get a , sop of different reams president trump's announcement gave more of a realistic framework that the coronavirus could be in place until summer and to some degree, that might help expectations going forward of how long this could last. emily: so where are you placing your bets? in terms of so many unknowns, what do you think is the most likely scenario and how are you operating? think the markets may be getting a little ahead of themselves, but it's a very fine line. i think if you look at corporate bond spreads, we have seen corporate blowout in the last week or two, particularly high yield spreads out, more than 400 basis points on the year to over

800 basis points p there's a fine line in corporate america depending on how long the slowdown or economy is screeching to a halt lasts that you could put significant strain on corporate borrowers. i think the high-yield space could still see some pain. i think investment-grade bond spreads are fairly attractive right now at a couple hundred basis points wide. i think there is value there right now. even the banking space, the banking space right now is pricing somewhat for armageddon and their is some interesting value there. romaine: expand a little bit about that. i'm wondering when you look at the selloff we have had, not just today but over the past three and a half weeks, how much of that is tied to this idea that a lot of the companies out there did have this net leverage that was really just by some measures, astronomical? >> absolutely.

conditions, they were favorable. you had a corporate market that was really amenable to refinancing a leverage loan market that was really opened up for favorable terms and then you add onto the fact that interest rates were low, spreads were low, and you have an environment where leverage was easy to take on and debt service was really low. at the current time, we do have low risk free rates, but credit spreads are much higher now. obviously, topline sales will be willistent while costs still be there. the pressure depending on how long this will last is went to start to pinch borrowers, particularly lower grade borrowers. romaine: that is the conundrum here. for everyone out there trying to go into their spreadsheets to remodel things, how do you solve for x in this environment when you look at these multiples and have no multiples because

there's nothing to multiply? >> exactly. i think the typical, what is the snp going to earn for 2020, that goes out the window. we have no idea how long this will last and what the downturn is. with the credit markets, the markets are pricing for 15% to 20% to fall at this point based on where spreads are and where we are heading. --tainly certain had segments will be hit harder, but on a sector by sector basis, there are interesting values out there. i know a moment ago, i talked about the banking sector but i think there are interesting values out there depending on how things go in the next six months. what do you see happening in tech where we are seeing some of the most dramatic slides of the day? >> if you go back probably six months ago, the headlines in

tech were really on the regulatory front. if you think about big tech, the headlines were, are they going to go after facebook, google, amazon for antitrust? what's interesting today is the almost think these big tech companies are under may be a little better competitive advantage going forward. if you look at amazon, the retail segment will be decimated. -- said extremely said -- sad. we saw that amazon will be hiring another 100,000 workers demand.up with you think it's conceivable when this blows over and the u.s. economy gets back to normal, that amazon could be an even better shape going forward, not only of competitors go under, -- if competitors go under, but if consumer preference has changed and more consumers are used to ordering online.

romaine: what about the esoteric question here? you are talking about companies that did well in environments before when investors got nervous. they gravitated to tech stocks because they had the growth. most of them had debt that is manageable. if you look at the idea that amazon goes out to hire 100,000 workers, google helps build a government website and these tech companies go to use their weight and leverage to help pull the economy out of where we could be going. does that buy them a little more currency on the regulatory front once we finally get through wherever it is we are going through? >> i think there's no question. we are in survival mode. this is not pointing fingers at which corporation needs to , if apple and amazon and google can use their strong balance sheet and corporate goodwill to help the american people and help keep things going and to get the economy out

of this mess even if it's just marginal help. i think that will be welcomed. i think the target will really be off their back for probably the foreseeable future. stocks, of equities and i think investors will probably continue to hang out there given the strong balance sheet and tailwinds from consumer purchases. of familyid schawel management corporation and bloombergs romaine bostick, so much to digest. thank you. isntime, san francisco taking extraordinary steps to contain the coronavirus. officials in six counties in the bay area have ordered a near lockdown, impacting nearly 7 million people. residents have been directed to shelter in place until april 7. being told to stay home and away from others as much as possible over the next three weeks. for more, let's get to david baker. we are trying to figure out what it means for us in the office

here in san francisco. tell us what the rules are and what it means. reporter: this is an order that the county health officials from six different counties put together over the weekend that just introduced an hour ago. what it means is they are asking everybody to basically stay-at-home as much as possible. if it means grocery stores can stay open, hospital use, farming -- pharmacies, grocery stores will be open and you can get to what you need, but they are asking people to refrain from going out at all as much as they possibly can. emily: this seems to be the most dramatic step any u.s. city or state has taken so far. are we expecting other cities and states to follow? unfortunately, i think so. it will be interesting how well

this is implemented. this could not be an interesting -- easy thing to force. the chief of police was asked what they intend to do about this. the chief of police said we are not going to be trying to shoe people off the streets. i don't know how well it will get rolled out here. but i would expect to see this happening in more places as the virus spreads. the bay area has been one of the hardest hit places in the country. emily: right. give us an update on the grand princess cruise ship, which docked in oakland just down the way from here, from our offices. what is the latest and the cluster of cases? they have finished offloading all of the passengers from that ship, and the ones who are u.s. citizens are either sitting in military bases in california or a base in texas or georgia. some of the other people, there's a large contingent of

canadians, they have flown back home last week. there's a large u.k. contention. what's happening now mostly has to do with crew, which is largely filipino, but from a few other countries as well like south korea. they are trying to get arrangements to get those people home but at the same time and sure they get tested. they have found so far that there have been passengers on that ship testing positive after they came off so it's still unknown how many cases we will see off of that one cruise. emily: right. so many people in the bay area trying to get tested themselves. bloombergs david baker, thank you for joining. coming up, overbooked. the google backed coronavirus testing website went live last night and was booked in minutes. . we will have the details, next. this is bloomberg. ♪

emily: breaking news. we are hearing that boeing is working on getting short-term aid and it is in talks with the white house and lawmakers right now. remember last week, boeing said it would be drawing dawn -- down all of a $13 billion loan. boeing saying it is trying to avoid layoffs, avoid a supplier meltdown in the midst of this coronavirus outbreak, and the accompanying economic fallout. we will continue to monitor that. boeing saying the aid would be for itself, suppliers, and airlines. airlines are among the hardest hit economically by this outbreak. we will continue to follow it happening with boeing and bring you update. meantime, a website to screen people for coronavirus tests run by alphabet reached capacity and stopped accepting appointments

on its first full day of operations. over the weekend, the health care unit of alphabet as well as google scrambled to put together a plan after president trump promised a nationwide testing website. garrett.ined by google did launch the website but it testing only available to folks in two counties in northern california. i know people today who are trying to get tested through this website and cannot because they are already at capacity. what is the latest? reporter: that is essentially the latest. it just shows the immense gulf between what the administration is saying and vaguely promising and what is actually out there. google itself is limited in what they are able to tell us. it seems very much they were scrambling throughout the weekend to make sure this website was ready to go. they also said they are putting together a nationwide and haveonal website

to take steps to avoid the virus. differentt been very with what google has already been doing if you searched coronavirus at any point in the last couple weeks. google has been careful to only show trustworthy information to direct you to links to health authorities like the who and cdc. it seems like this website, which is limited only to two counties in the san francisco and san jose area, is really all we have right now. emily: folks who have already been through that test, that test was smooth, don't know the results yet, but how quickly 10 this website start offering more and how quickly can or will this ever be available nationwide? reporter: i think that's a great question, whether google, alphabet, whatever you want to say is the entity leaving this,

we'll go nationwide. i think it's important to remember tests are being conducted across the country. the u.s. is way behind other countries but they are ramping up testing capacity. in most cases, people are calling their local health authorities with a hotline, speaking to a nurse and that is the person making this decision whether they should be tested. scalingan do a lot in that and getting it out to people across the country. they can't move much faster. hundreds of people are calling a limited number of nurses. they have to wait on the phone a long time. technology should be able to help, but it's unclear whether the questions being asked by an algorithm are enough to determine if someone is a good candidate for testing. as many people pointed out, google verily tests right now requires a google account, which a lot of people don't have. it's only available in english, which in a place like

california, many do not speak english or don't have it as a first language. can limited in terms of who access this and it's unclear how fast they can scale it up. you for keeping us updated. we will continue to watch for one more tests, available through verily. as the coronavirus continues to affect a global population, biotech firms are collaborating in a race to come up with a vaccine and therapy. emergent biosolutions entered an agreement with novavax for this very reason. kramer joins us from gaithersburg, maryland. talk about the progress you have made and how optimistic you are about therapies in lieu of the vaccine? >> thank you. nice to be with you. a couple things. as you indicated, we are working on two programs in parallel. the first is the partnership

with novavax to take their vaccine into advanced development and eventually scale up the manufacturing process for secondly,ct and then taking our platform technology to develop a treatment for patients who are either at risk because of their potential contact withing to the coronavirus, or individuals who are working in a hospital setting or nursing home setting, or people who are immunocompromised. the second patient group are individuals who are already in the hospital and exhibiting severe illness and symptoms because of coronavirus. this may be a treatment that is essentially a rescue therapy. the therapeutic products are the quicker path to making available to patients going forward. our particular product we hope to be able to start a clinical trial in about three or four months.

, we wouldon of that have to have agreement with the fda. of course, this is being developed on a platform that has also been used to license many other therapeutic treatments that the speed to a treatment is very quick. emily: so you're saying it will take at least three or four months and then you have to do the clinical trial. tos incredible you are able do this, but just how long are we looking at and how effective are therapies going to be? the outbreak is now. >> the outbreak is now. we, like many other companies, are working around the clock to make sure the therapeutic treatment is made available as quickly as possible. we are again hoping to begin a clinical trial later this summer and then depending upon the duration of that, could be a couple months.

we have a high degree of confidence that the treatment we are working on is going to be shown to be quickly and safe and effective given the fact that it has been used to license a number of products with the fda's consent. i know it seems like a long time, but we are working as many other companies are to quickly bring this to the fate -- patients who need it. emily: what kind of communication are you getting from the federal government and are you getting good communication? >> we are. the history of our company is that we have been doing this for , and we have been collaborating with the u.s. government as well as allied governments and the development of counter measures to do exactly this and produce quickly and develop medical countermeasures for emerging infectious diseases for a long time. the communication has been transparent and collaborative.

a manufacturing facility we co-invested with hhs a number of years ago is the facility outside of baltimore that is being used to do the development and manufacturing for the vaccine candidate as well as development for the therapeutic treatment. emily: bob kramer, ceo of emergent biosolutions. thank you for your work. keep us updated on your progress. still ahead, more retail store closures worldwide due to the coronavirus pandemic including apple. we will see how this has impacted these iphone maker -- the iphone maker worldwide. this is bloomberg. ♪

emily: apple shares tumbled as the company announced a decision to close all of its retail stores outside china due to the coronavirus pandemic. at current levels, the stock is up more than 1/5 of the value from a record hit last month. in more, i want to bring mark gurman from the phone in --. and who has kovel are covered apple for us. today, falling with the rest of the market, certainly has felt pain already from having to close china stores earlier in the year. what is the latest? reporter: the latest on apple's approach, you saw that 11:30 pm announcement on a friday night about this. this announcement, i was up

waiting for something like this because the work at home had expired friday so there was clearly something coming. this was a big surprise. this is tim taking leadership here and closing about 460 stores outside of china. they have one of the biggest global footprint of any retail brand. they really have had no choice here. what an applebout store is, you have foot traffic, millions of people a month coming into the stores trying on apple watches, putting the air pods in their ears, playing with iphones, using ipads and laptops and desktops. so many people touching the products. this was potentially a breeding ground for this virus to spread in high population areas. they really had no choice but to do this. it's a difficult decision but i

think the right thing to do. emily: apple not the only , but one ofdo this the biggest in the world. what is the implication going forward given that devices drive revenue? reporter: this is a big deal from a marketing standpoint, visual standpoint. at the end of the day, we are talking about if this does now, iend 11 days from would say a 3 billion-dollar revenue loss. terms of investor expectations, i don't think it is too shocking. they already removed guidance of hitting $63 billion for the march quarter. this is a sticking point to have an impact. emily: we will continue to follow. mark gurman who covers apple, thank you. that does it for this edition of "bloomberg technology." you can find us live streaming

on twitter. check us out at technology. stay with us. we have coverage live around the world as the outbreak continues to unfurl. this is bloomberg. ♪

haidi: welcome to bloomberg. i'm haidi stroud-watts in sydney. shery: i am shery ahn and new york. sophie: i'm sophie kamaruddin in hong kong. we are counting down to the market open. haidi: here are the top stories we are covering. the imf is calling for global cooperation to fight the coronavirus. it is ready to tap its trillion dollar lending capacity to find a solution. president trump changes his tune on the outbreak. he has repeatedly downplayed the danger but is now telling