emily: welcome to a special edition of bloomberg television, "markets uproar." i'm coming to you from the san francisco area where i am sheltered in place. orders that we not leave our home amid this coronavirus outbreak in the interest of public safety. bear with us as we bring you the news as best we can. want -- i wanto

to talk about the markets. i will bring in romaine bostick. romaine: of course, the worst yesterday.987 we retraced some of those losses today, about 6%. almost all of the sustained buying, defensive stocks, talking about utilities, real estate, consumer staples. utilities attractive at this stage because a lot of these companies pay dividends. when you talk about consumer staples, we are talking about , a lot of the goods, like food, cleaning supplies, and other sort of essential staples. another aspect we saw, recommending stocks that they say are great places to hide. facebook,ut amazon,

saying the work-at-home movement we are seeing here, of course with you being sheltering in place, that that will be a boon to companies that deliver like amazon, or like facebook. they are also recommending companies like walmart. again, the stocks moving higher are those that stand to benefit from the pain that a lot of people are expecting to see. really, everyone we spoke to today, the main word on their lips's recession. not if, but when it will happen and how long it will be. taylor: let's talk about that let's talk- emily: about the volatility. we saw a rebound today, but will it keep up? romaine: the short answer is yes. a vix right now trading well above 70. that is unusual for the vix,

which of course tracks the s&p 500 options. market, andket, fx short-term treasury market. all of those things, if they are not at record highs, they are certainly near them. all of the strategists we have spoken to say investors should be very wary around the opening and closing of markets. there are a lot of factors driving this market that has nothing to do with fundamentals, nothing to do with how much a company makes. these are more technical measures. and still these start to die down of a you will not have a platform for tried-and-true investors to start trading off things we would normally trade off of. emily: let's talk a little bit about tech. tech felt a lot of pain yesterday. was the rebound there for them as well. consensushe general

is that a lot of the big cap tech companies have two advantages. they have scale in terms of control over their market and customers. that even if there is a slumping demand now, that will bounce back in the future. the other issue with a lot of these companies, most of them have very little data. sitting on a huge cash pile whether we are talking about microsoft, amazon. they have a sustainable debt level, good brand names, and a customer base that is locked in. these companies can weather the storm much more than second-tier tech companies. right now, most analysts are pointing to some of the health care names and a lot of the consumer staple names as the best place for folks to camp out. emily: thank you for breaking it

down for us. the market moves were largely driven today by a flurry of activity in washington. talk about a stimulus package, sending checks to americans. what is the latest as far as we know? laura: it has been a fast-moving day on capitol hill. the white house wanted to do a payroll tax cut by about noon today. that shifted toward stimulus checks going out to every household. that is something both parties have been proposing in recent days. there were questions that still remain on exactly who will get it. willchildren include -- children get it, will it just be adults, how much will the checks be? they said they probably want to get those out in two weeks. that is probably not realistic because it will take a week or more to pass a bill and it will take the irs longer to get that

out. people are saying about two months. whatmillion of stimulus is secretary steve mnuchin said to expect. this is part of a larger package that could be around $1 trillion. the tax cut a few years ago, that was a $1.5 trillion tax cut over 10 years. this is $1 trillion injected into the economy in one year. emily: people want to see some relief now. i know for talking about washington, but is there anything they can do to speed up the timeline? laura: one, having bipartisan support right now does greece those wheels. i have talked with experts at the irs who say maybe they can do things with direct deposit and get those numbers to about a month. it would still be a matter of a couple of weeks to a couple of months.

in ohio, we saw the number of unemployment claims jump just from this week to last week. there has been a lot of concern that most people across the country are stuck at home and not going out to eat. a lot of workers are faced with choices about how to pay for food or how to pay for medicine. emily: let's talk about what tomorrow looks like on capitol hill and at the white house when we don't even know what the next hour looks like around the world. laura: it is very fast-moving. we are still waiting for the senate to vote on and passed the house bill, to expand paid and medical sickleave, provides more funding for unemployment insurance, gives states money to expand medicare. that is still under discussion. we expect that to move if not tonight, then tomorrow.

then they will take in on this issue with the checks. you see some division already. senator lindsey graham says he does not like the idea. they are trying to get that moving as quickly as possible so they can get that money injected into the economy. laura, thank you for that update. meantime, i want to bring in the head of u.s. markets at the nasdaq, joining me now on the phone. people are watching their 401(k)s disappear right now. what can you tell them? >> the last two weeks or the last month has been unprecedented in terms of the kind of volatility we have seen in the market. we have seen for the first time ande 1930, a 9%-plus up day 9%-plus downed a back to back.

inthis type of nervousness the market is understandable. what i would share is that the direction of the market is one thing. the well-functioning is separate. that markets are available from investors, resilient, and provide certainty and hopefully improve investor confidence as we see this crisis unfold. emily: talk to me about volume. how much trading is happening and what does that signal about sentiment? tal: over the past few months and few weeks, we have seen our 10 top days in terms of record, in terms of activity come on the options market, in the past month. much the samet is story, where we have seen twice the video levels. so, the markets are extremely active. we see participation at all levels of the market. i think this is going to be a

theme for the next couple of weeks as the virus continues to unfold. emily: we focus on tech here normally. talk to us about apple, facebook, alphabet, amazon. they recovered a little bit today, but not in step with the rest of the market recovery. what are you seeing when it comes to tech names? >> we are still seeing a broad set of participants actively trading those names and buying and selling activity levels fairly high. we take a step back. based on time horizon, these things will work themselves out. it is still unclear what the severity and length of this downturn will be. we need to understand, it is a health crisis first and our ability to contain that crisis and flatten the curve will really determine how severe this

downturn is for apple, facebook, and others. emily: what does tomorrow look like for you? do you watch what is happening in asia and europe? tal: we do. we pay a lot of attention to the foreign markets. we are watching what the other -- with the other markets are doing. we are very closely aligned with the futures markets. the futures markets actually will trigger the volatility guards in the option market. those guardrails in the equity and option markets are tied to other markets. we spent a lot of time looking at those other markets, paying attention, and accurately preparing for the day ahead. emily: let's talk a little bit about what is happening in washington. what kind of action would you like to see or do you think investors would like to see to

inspire confidence? the thing we have seen talked about recently, we need to continue to make sure that the markets are available, that the capital markets are well-functioning and available for investors. if they are not, i think that will add to the uncertainty, and to the fragility of the market. we need people to understand that the markets are well-functioning, they are therefore investors. the markets may have liquidity needs. they cannot meet their liquidity needs. issuers who are looking to raise capital, what if we have a biotech company that is working on a cure related to the virus and i am looking to capitalize around some rnd work. it is really important that these markets are open for business to both issuers and investors. i think that would lead to

confidence in the markets. emily: desperate times now. shortening of trading hours. what is your view on that? shortening of the trading day is probably the least bad option from a menu of bad options. making sure that markets are open as they are today is something worth pursuing. we would certainly not be in favor of closing the market. shortening the trading day might just increase the intensity. we are unclear what it would solve with that. we would like to talk to policymakers, other exchanges, and make sure we can understand what problems we are trying to solve, whether it is shortening your trading day or changing some aspects of the way the day shapes up. guards in volatility place that we have worked on over the past 4, 5 years.

they be conversation needs to shift from, do we think these new guardrails are working, are they working appropriately, do we need to optimize those rather than take some of the measures you just discussed. emily: tal cohen, head of markets at the nasdaq. we will see what happens tomorrow. meantime, some breaking news. softbank's backing away from a planned bailout for we work. of course, we work has been the subject of multiple regulatory probes by the fcc, by the justice department. softbank now backing away from part of its we work bailout plan. obviously, a lot of organizations, even well-capitalized ones, feeling the impact of this market appropriate will be back after this quick break.

emily: welcome back. now, amazon making unprecedented moves to get customers the staples they need, whether it is toilet paper, hand sanitizer. there been a lot of delays in customers getting what they feel they need. i want to bring in matt day, covers amazon. amazon has come up with a new plan to stock the essentials, and not the nonessentials like television sets. tell us how this plan will work. >> they sent a letter to merchants and big vendors this morning saying if you are not

selling one of those hot categories of basically virus essentials, they are not accepting anything inbound from you. the demand they have seen in the last week or two. need: does that mean, if i toilet paper or hand sanitizer, that i can get it and get it quickly? matt: certainly not yet. i did a search a few minutes ago for paper towels and there is not a a lot of inventory. there seems to be a plan to try to keep more in stock but a lot of this will depend on the supply chain, amazon, and everyone else trying to sell the same stuff. emily: amazon announced yesterday they are hiring 100,000 new workers down keep things running. i understand about five workers have taken ill in spain and italy in their warehouses.

we heard about the case at headquarters in seattle. where are these workers going to go? what are the safety precautions ?oing to be >> they have seen at the break room, we really don't know the state of these workers, a lot of not clear what steps they would take if there is an outbreak. it goes beyond just one or two workers. as they have made clear since the beginning, they are trying to keep bringing things to customers. emily: if you can, give us a snapshot of what amazon fulfillment centers look like around the world. we know there are many around the united states, which is how they get us our stuff so fast, but what does this look like worldwide? how much of it has been

disrupted and how much is running as it normally does? matt: people who have not been to one of these places, it is a giant, sprawling facility. people typically are not on top of each other. they can be pretty sterile environments, frankly. you are sitting at a station, moving items from one side to another over and over again. it is not exactly seen by outside observers as a how did for transmission. these facilities employ thousands of people. amazon is trying to make sure they don't get any issues in there. bloomberg's matt day for us in seattle. coming up, we will talk about coronavirus testing. alphabet offering this green patients they ran out of tests pretty fast. this is bloomberg. ♪

welcome back to our bloomberg television special markets coverage. verily started offering coronavirus test yesterday but they ran out of tests after about 20 people at 9:00 a.m. on the first day of testing. i want to bring in our alphabet reporter. 20 tests? what happened? >> we don't have a great deal of knowledge about what has happened. the report is that they are aiming to do about twice that today. it does seem like this got rolled out very quickly. google was preparing this nationwide screening. it was a google sibling company to the bayimited

area. yesterday had folks that were desperate to get tests.and cannot get what isa snapshot of happening across the country and people cannot get tested when they want to? theye verily test, described it as a risk test. they are looking for high risk asymptomatic individuals. if you go through the screening process on the website, say you have typical symptoms of coronavirus, you are then directed to a medical professional. if you are a pregnant woman or have been traveling to infected company -- infected countries like china or iran recently,

then you can sign up for this testing. verily something that has been doing for years. their bread and butter is sort of big data analytics. they are not necessarily a health provider. they have been doing it around genetic testing but as far as for testing something like the coronavirus, it is new to them as well. emily: let's talk a little bit about the other things alphabet has been doing in the midst of this coronavirus outbreak. google has taken sort of an unprecedented approach to the way they handle information on the platform. for so many years, they have said the algorithm can do it all. how is that working? mark: from what we have seen, it is actually working. a couple of years ago, you have this influx of facts -- of

anti-vaccination misinformation spreading. they are facing a lot more scrutiny from the public, from employees, from regulators. havecus on health, they this new division just called health. people fromrts and the pharmaceutical industry. it is unclear sort of what their business is, something combined with their cloud business. they are doing this big push around health care. a big push of the system to make sure they are delivering accurate information, to see what they are planning to do broadly around health. if you go to google.com, they have the world health organization five tips for how you can fight the spread of coronavirus. emily: we will see if this leads to a longer-term change in strategy. thank you so much for that

update. coming up, we will check back in on the market. ♪

>> welcome back to our special markets coverage on bloomberg television. we'll check back on historic the market. rebounding after a bloody slide yesterday. thank you you've been putting out research through all of this. what's your latest take on the volatility and how long this up?s >> i think in general, nobody really knows how long it will up. the essence here is health related. froma little bit detached the consumer economic behavior.

healthcaresee if the crises get taken care of. you start to get a better sense of what the economic impact like, what we might expect in revenue projection. focus on thatone first health piece. of idoesn't get taken care don't think anybody has a sense economically.en the uncertainty across advice?d, what is your >> across the board, we won't want people to panic. we don't want people to think any broad economic contraction can'teans businesses continue to function. andl see massive layoffs bankruptcies. community, yout want to find good businesses flow pro file with strong balance sheet that can

withstand some sort of shock. the day you want to attract entry points. the year, isen for valuation. to down from.ak credit spreads have been tight up until recently. evaluationity , ebitda.one 12 times that's all investors really looking at. you look at any institutional investors that's the package they're looking for. is this going to impact the deal landscape? we going to see where companies can't stay afloat? just makeecause strategic sense now? private equity,

traditionally tend to be fairly gdp. getting ready to see a demand shock in the economy which will businesses to think about what the expenses will go out and spend and what teams willing to improve in terms of vendors and looking at the different cost profiles. see that and gdp start to decline as we move forward, you will see it transaction in activity. the other thing too, as we look equity, massive debt portion that comes with that. we look at what's happening in yield market and leverage loans over the past couple of weeks. those are securities protect connected and corollated what we see in. debt price we've seen equity. as those markets tighten up, you'll see lot of adjustments made.o be lot more equity building in those transactions. probablyofiles will shrink. underwriting gets lot tight and lot more scrutiny on transaction. with all this in mind, it will

drop.to from strategic perspective -- go ahead. >> what's your view on the start-ups for and example, smaller tech companies? by capitalist, how do you monitor what's private? in >> you're looking at a world valuations doubled. you're looking at a world where the time between rounds have shrunk. growing 50 to 100 percent certain cases. trying to tell portfolio companies be smart. they don't want them burning cash the level they've been

burning. the mantra of using capital as a competitive advantage in the die down overg to the last two quarters. be lot moreed to efficient with the capital. as we talked about capital higher level, the lot of venture backed businesses broadering into enterprise businesses. if cost cuts are contact what's going on that are smaller and don't have the cash flow profile bc's want their portfolio companies to be lot way safe and smart with the they pull down capital. deals will still get done. you'll see less deals. time, you'll see shrink.zes is they trying to be a lot more smart about what's going on using the great financial crises as a good proxy. making sure their businesses can and they can preserve capital for other investors. >> since you brought up those

words financial crises. notard so many say this is the financial crises. the banks are well capitalized. much better position than 2008. nobody really knows how this will turn out. do we know this isn't the financial crises or worse than the financial crises? for us, weference look at liquidity. you had lot of investors taking on the great financial crises. you had lot of investors that wheren terrible assets their mortgage backed securities went to zero. that changed the dynamic what the bankscould do and go under. we see in private markets, capitalized.well private2.4 trillion in capital on global basis. $1.3 trillion in private equity funds. marketole, i think the has a lot more capital to ensure survive. companies can on the banking side, while private equity and venture

are different in big banks, lot more liquidity is theed in the market and banks will be able to lend. what the fed done, ensure that banks can ensure there's a flow of lending in credit in house holds and businesses. the private on side, there's a lot of capital on the sidelines. shrink return profile. we have to capital to preserve alleviate pressure. all that so much for detailed analysis. research,director of thank you so much for stopping by today to weigh in. bring you more on bloomberg television. coming up.

>> we're going to zoom in now to the global supply chain. as theat looks like coronavirus wreaks havoc around the world. want to bring in the founder and ceo of this company that helps companies manage their risk. land.s the lay of the what do supply chains look like now? me.hank you for having it's a pleasure to be here. the global supply chain so disrupted. we are seeing disruptions from people,nd side to labor, shortages as well as raw material shortages. all the to the delivery side. companies cannot deliver to customers. for a very tough time supply chains, supply companies

all together. not seeing this top off yet. still more we're expecting in the next few weeks and months. >> are you seeing any differences in regional trends whether it's china, where obviously they've been going for several months now. sort of coming out of it versus europe? and caseschina, we see the have tapered off. largely that is because of the lockdown that have been in implemented. it's not though the virus has been defeated. over thee interesting next few weeks china start bring moderations to workers back in public places wave ofhere's a second transmission. if we do see that, we'll expect to see continued disruptions the next few months across the world and certainly in china. china is a huge hub for the

manytech industry and others heavily reliant on china asia.of in europe, for example, what we is pharmaoncerned now and the impact there. now are they consumers of the life science, the drugs and products that come from there seeing demand they are from the patients that are admitted right now. they're also huge exporters of t-drugs that the united states need. we are very concerned about the supply of essential drugs coming u.s.the us about what that means and for the consumer? for patients for people who need drugs. they're telling companies to 6-month long disruption to the global supply chains. us? does that mean to >> as consumers what is really

important ois to make sure we don't get sick. for that, i think governments and local are making best efforts to do that. we don't want to end up in the drugs that weng orply may not have enough of because we're not replenishing fast enough. happened in the pharmaceutical industry, we have lot of inventory. few weeks, we are actually quite protected. surges, those in faste inventory is not enough, therefore over the next week or month, we should start see real shortages. maybe some patients who need are preventible care might be denied medicine and have essential life saving or a critical treatment need might be accepted.

right. thank you so much for giving us that global view. appreciate it. turn now to another story and how china is using the coronavirus to monitor quarantines for atmple to keep the outbreak bay. generalus is the deputy manager of smart drone a company working with the chinese government. drones exactly how these work. >> basically, thank you for inviting me. drone is working through programs. program andve it a you follow the instructions and autonomously. drones.any produces it can take off anywhere like in

and then transit anywhere.and land it's very flexible. basically that's how it works in that.of obviously, fights like the and to help the government to quarantine. contribute a lot in terms of s.rious aspect >> tell us little bit about what these drones are capable of and help?ey can equipped with like optical zone camera. identify people congregation more efficiently. especially in large areas. example, usually the havenment, they don't enough human resources. they choose to use the drone

technology. with the technology, it's easier to deploy and take off and the major roads and quickly.aces very they can alert the staff on the and they can take action to inform thees public that not to be getting together. this is one aspect and then the other is the drone can use loud using ofo replace the normally driving police cars around us. drone can fly more everywhere to broadcast the knowledge and the guidance, if you will follow and to keep people noticing and

a mask or theyr should not be so close to each other. have to be socially distance. something that it can replace the traditional way of broadcasting it. >> what exactly have your orders from the chinese government? are you these drones in operation and in other countries? >> basically, since the really --we have been we help the government. governmentk with the in terms of helping them to more efficiently, do the quarantine flow.ntrol the people it has been very successful so far.

sometimes we do service for them. the drones. we have our pilots to fly the give more results of time.tain period >> all right, fascinating to see technology is being used. deputy general manager of drone, thank you so much for joining us today. coming up, we'll be talking airbnb, talking with a top executive as the company faces disruption to the travel industry. that's next. ♪

>> now to airbnb a company that shift itsmatically strategy as the coronavirus

outbreak disrupts their business. us now is chris, airbnb policies.bal you made some changes. you've been allowing refunds, cancellations. talk to us about the policy as it stands now. if you want to cancel a trip anywhere in the world because of this. how is airbnb responding? right.'s exactly we have a global policy in place a guest to be able to cancel. regardless of where they are traveling. we put this in place based on guidance and counsel that we've receiving from government, from healthcare experts with one point around focus in mind. that what can we do to make sure we're doing everything in our power to prioritize health

and safety. i want to make sure guests are that position. what in the best health interest we're in, ourties hosts and guests and what we can platformesponsible given what's going on in the world now. airbnb is in unique position. it's not just about the visitors about the host and money that they also depend on. saying that anyone who onlyells a trip will not get their stay refunded but their airbnb fee? >> that's right. we're refunding 100% of our fees and the policy really does apply board for anyone who is out there looking to cancel a reservation. should really emphasize that

the vast majority of the airbnb hosts were already doing this on theirown outside of preexisting cancellation policy. were generally doing this. we want to make sure that we did fees anding all of our again, really prioritizing the and safety of the communities that we operate in. that's really how we have about this. as you referenced, it is a two sided marketplace. that has a real impact on our hosts and we've made really any number of ways. we're exploring a variety of we can beoptions so in position to help those hosts through this.rd airbnb is ultimately two sided marketplace where we trying to empower people. obviously there's huge things going on in the world and we hierarchy of the

this. we want to make sure what we can prioritize the health and safety issues. >> you sent a letter to u.s. today.akers you're asking congress to work together on policies solutions the travellp industry through this. what exactly are you asking for? or you planning to give hoping to be able give financial hostsance to your directly? >> we are exploring variety of can helpways that we provide support to our hosts as we go forward. we specifically wrote to today in the context of the larger conversation about a package to help americans givever the country and great credit to leadership we're seeing in congress. lot of conversations about what of support can be given to larger travel and tourism sector. different.ittle bit in the sense that the vast majority of economics that thenb generates around world but here in the u.s.,

help.ly go out to the they're just everyday people. they make up 97% what they list their homes are. over half of our host depend on meet theircs and monthly needs. behind all this fact and real people.e these are teachers, educators people.es helping they're seniors on fixed income. we're asking congress as they go process to get out much needed support that we actually think about these small men and women who depend on platforms like airbnb to help meet.heir ends we're hopeful we can think about those folks and making sure they some support. >> chris, we've got 20 seconds left. impact airbnb's plan to go public this year? >> it was. in a quiet period.

i'm limited in what i can say. we put out guidance that we're public. go >> all right. lehane, stay with bloomberg television. [ fast-paced drumming ]

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daybreake to australia. down.re counting asia market open. >> here's top stories we're covering. deep, the government vow to spend heavily to defeat virus.ng u.s. package could top trillion dollars and include $1000 weeks.s within >> the infection continues to damage china's