♪ >> live from new york, you are watching bloomberg television. this is bloomberg technology. emily chang should be joining us in a moment with our scheduled program. we are taking a look at what down,ed in the markets, but we did get a little bit of buying heading into the close,

down 5% on the day. it could have been worse. volatility was all over the map. there was passage of the first -- firstrs bill, stimulus bill. the bill has passed of the house and it will make its way to president trump's desk. this is a $.5 billion that is a spending measure -- $8.5 billion but is a spending measure for the response. the big bazooka everyone is looking for is what the treasury secretary steve mnuchin has been talking about, a multi-hundred billion dollar if not trillion dollar stimulus package that could include everything from loans to loan forgiveness and not just cutting checks to everyday americans as well as businesses. that is what the market is looking for, not just response out of the white house but some sense the measures that are being taken are going to be wide enough in scope and scale to try

to address this crisis. emily: thank you. i want to dig deeper into what happened today because there was a pause in trading, seeing the new york stock exchange moving trading.electronic romaine: most of the trading now is done electronically. they do have a floor presence, so equities options are going to be shut down on the floor but there will be normal trading as usual. it will all be electronic. this should not have much of an effect on the market. there are some traders and investors that like to go to the floor brokers for trade that are complex, some that are larger. it will be interesting to see over.at gets shifted but my general assumption, based on mark the -- based on watching the market over the past few

years, we should not see a major disruption when the nyse moves to full electronic mode monday. emily: investors seem to want more government spending. lawmakers are taking steps towards this $1.3 trillion stimulus bill, but what are the markets showing you in terms of what they need to inspire confidence? mark: everyone says the main thing is to have some sort of idea of progress on the health front, an idea the infection rate is going down and we could get people back out into the world. the other one on economics -- here is the thing everyone says. there is still some spending, still some growth but generally speaking relative to what we had, there is no growth out there. for investors, many to see a was package that says this is going

to agitate growth, get people buying things the things -- get people buying things other than toilet paper. going back to conferences, once the market starts to see that, you will see people talk more about a bottom in the market. emily: i want to talk about the meetings and stuff that have been canceled. mark zuckerberg, the ceo of facebook, give a press call to talk about their efforts to fight -- gave a press call to talk about their efforts to fight misinformation. he is finding it difficult to his children.ith the s&p down 8%. when you look at the tech names, only down 2.5%, facebook just about 1.5%. why did we see the tech hit bottom with the rest of the market. -- market?

romaine: but is a pretty good performance like on a day -- that is a good performance on a day like today. there is a lot of sense the large cap tech companies will weather the storm. they will be resilience in a recession and economic downturn. your talking about companies that are well capitalized -- you are talking about companies that are well capitalized and have a leverage. did buying inf the chip names but data out of japan was encouraging. it doesn't sense we are at a bottom but we have signs the chip sector which was beaten down before the covid-19 scare sort of blossoms. some folks are starting to make bets that it might be a good time to start looking at some of those names. i want you to stick with us.

i want to bring in mark lehman of jmp securities. curious to know your thoughts on the downward pressure. we think we have hit the bottom and then it gets even deeper. where do you think this is going? mark: we have had nothing but bad news. finally a realization globally ofthe depth and the breadth this covid-19 virus. we think about what is crystal-clear on wednesday seems so strange for or five days ago. five days ago. we are getting an understanding with the market is heading. we saw panic today. rarely.e word use ivory asset class down, -- youtreasuries, stocks saw every asset class down, bonds, treasuries, stocks. those crazy times really happen and usually signal some sort of a bottom for the vix traded at an all-time high.

those are the kind appendix you usually, three to six months another road, you look at signals new the bottom. the news on the fundamental front is not anywhere near close to bottoming. the kind of things that signal with medically -- arithmet atically. missesif we see a lot of , and you got to assume people are very gratis, maybe not the worst, then what happens? mark: earnings season will start pretty soon after april 1 and everybody is going to guide or withdraw guidance by then. there are some winners and i hate to declare that a winner, companies like clorox and walmart who are keeping the supply chain open. tech stocks are outperforming.

this is going to be another opportunity for people to remind themselves the fastest growth of the economy going forward will be what we had the last decade. that is tech and health care. we will have a health care solution within 18 months. it could be sooner. of that willwhiff propel people back into the market but nobody knows when it will be and it could send an alarm bill. everybody setting themselves up for a much lower market and there will be pressure on the upside when we get good news. we haven't seen that. haven't seen that. romaine: only look at the pressure in the -- when we look at pressure in the market, there is volatility. you sort of get this really strange sort of feedback loop that seems to continue to push us lower. even if we get good news, i guess is there a connective? is the market connected in a way that all ships are going to rise

or is this going to be a situation where three months from now, talking about winners and losers, we are talking about walmart, clorox and maybe amazon? mark: we have had some winners on the tech side, zoom, cisco, amazon was up on the day. there are winners in this supply chain that will benefit. but crews -- cruise lines and airlines, -- all tides get lifted when the oceans rise, i don't think that will happen. there will be a decoupling of that. today we will sell everything. i think you are going to see a violent -- you are going to see some violent names in funds by the end of the week. you always hear about the two or three weeks when those things happened. when i saw today told me those things were going on mother

forced liquidation was happening and the strange action in some of the most secure assets tells me there are some things that are sell everything, cover margin, get liquidity. that is what happened today. even if cases peak at the end of april, what about a resurgence in the fall third or fourth resurgence after that? what about the longer-term that we could be in this for a year or two? mark: those realities are getting priced in the marketplace. includet-case scenarios no progress made on a virus or a vaccine or the antivirals we have talked about. those kind of tones, the most dire tones, you have to understand, are possible. i am more sanguine in this time that the health care and amount of technology and sequencing

this virus and the ability to get closer to something that will make it less severe overtime is likely. i have no medical background but the smart people and those i trust are telling me over the next 12 to 18 months, it may not go away but it will be less dire. you are right. i want to talk about apple in particular given the impact we are seeing on the supply chain, worldwide stories outside of china remaining closed. is apple in more unique case? obviously it gives us a pulse of consumer sentiment and everybody is carrying a phone these days but are they uniquely impacted given their exposure in china and worldwide? mark: i would not call them unique. $170 last june and look at it today. $250 give in court --

or take. they are greeley positioned because of their shape very when this snap happens, we have these reports with the chinese manufacturing sector coming back, although two months later than the coronavirus in january, it is coming back. apple is ready to come back. they performed well. the ability to come back faster will propel them to new heights. i think the ubiquity of what apple does has not changed. it has pushed out the launch of the products one or two quarters. they will be back to being the best company like they have been the last half decade. emily: thank you so much. romaine bostick from what did you miss, thank you for sticking with us. we will talk about the work out of washington and a new release bill passed to combat this virus. this is bloomberg. ♪ . ♪

emily: welcome back to special coverage live from the san francisco bay area where we are sheltering in place in my home. i want to get to what is happening in washington. bring in mario parker, bloomberg white house reporter. the senate passing another relief bill today to combat this virus. talk to us about what this will do. mario: the latest as you will be looking at paid sick leave, food assistance for those were vulnerable during

are crisis -- those who vulnerable during this crisis and help for testing. it has been a breakthrough and things continue to move along pretty well here in washington. the president announced he will invoke the defense production act in order to get masks to people who need them faster. explain what this means. mario: for a number of weeks we have heard about glitches in to thosegetting masks .n the front lines talking about the doctors, those that are in er's across the country. red tapeves even more to increase reduction of that as well. -- production of that as well. the president and vice president

announcing this as large industrial companies, if they to their local hospitals, health services, and to forgo any future orders in order to make sure these masks get to the front lines as we combat this crisis. emily: the president ordering a navy hospital ship to new york that will bring 1000 beds. new york has the most cases of any u.s. state going to 50% of workers actually in the office. it seems like the election is giant a backseat to this worldwide pandemic. talk to us about what this means for the president, the lack of response, the not enough test, desperation and panic among the people and folks already using

jobs, losing hours? day.: he has got a tough you are looking at one of the worst pandemics in about a century, just as it becomes clear with last night's results from the democratic primary, crystallizing the general election going forward. he has to deal with his response is is him andment his handling of that but also try to figure out a way to calm the market, wall street and also address supplies getting in the right hands. the president has a tough dance here over the next eight months tryingo balance this and to reclaim the white house. parker, calling in

from washington. thank you for that update. elon musk getting another run-in with the law. why tesla is not shutting down so far despite the shelter in place order across the bay area affecting tesla factories. this is bloomberg. ♪ this is bloomberg. ♪

emily: nonessential businesses have been ordered to cease operation and to shelter in place but tesla ceo elon musk has said this does not apply to him. he will be working as per usual. county officials were not happy. i want to bring in our reporter who covers tesla.

interesting exchange. interesting to me being in alameda county. the sheriff tweeting yesterday tesla is not an essential business. tesla can maintain minimum basic operations per the alameda county health order. minutes ago we got an update to your story. can they keep your -- their factories open or not? >> interesting story, they are now complying, going to reduce staffing 70%. that is according to a spokesperson. the have been talking with tesla, the conversation, and their understanding is tesla wants to reduce the workforce from 10,000 down to 2500. we don't have any timeframe when that is happening. as reported yesterday, we have

seen these emails but have been going on from tesla's hr department to workers -- these emails that have been going on from tesla's hr department workers. they say yesterday and today, the shelter in place order, the factory has been fully operational across all of the lines. as you said, the understanding of the county is tesla will start to wind down its workforce. emily: what does this mean for production of the car? this went in fremont produces y. model s, model x, model ed: the capacity is around 390,000 vehicles. it is the only u.s. site where tesla builds cars. the target for this year before the virus spread globally was to fromce 500,000 vehicles up

360,000 last year. there have been lots of reports how a lot of the production process is very modern. it uses some robotics. at the end of the day it is a human intensive process. if tesla is going to start winding down its production and keeping the staff out, it means that will impact the volume of vehicles tesla is able to produce. we have not had many analysts forecast what the number will look like. we are trying to communicate with tesla over what the impact will be in the plans. they are not -- and the plans. they are not communicating on that front area a lot of that staff in fremont are hourly workers. there is no representation. they are paid hourly. if the workers don't have pto, they want to be in work and we have yet to hear if tesla will cover their pay if the factory is shut down.

emily: earlier this week elon musk said to his employees, you don't have to come in if you are not comfortable. i will be here. that is just me. we are hearing from amazon workers in these warehouses and some workers are falling ill, some don't feel comfortable doing that. doing a how the working in the factories -- do we know how the people working in the factories feel? ed: we can imagine it is tough. a lot of them are hourly workers. what they said in the email we saw this morning is that if workers don't feel comfortable, they don't have to come to work. they can use paid time off but many of them don't have that accrued. another option sent out in the is they can don without pay, or there was a section of the imo which says of then borrow a time --

email says they can borrow paid time off. we are hearing there is discomfort in fremont. some are electing to go to work, others are not. we have yet to hear anything official from the company about what his response has been for those employees that are not going to work whether they will be paid or not. emily: we have about 30 seconds. tesla has an operational factory in shanghai. they are breaking ground in germany. how crippling is it not having this main fremont factory open? of math. an issue the capacity is 490,000 across the full lines. in china the capacity is 150,000 and that is just not all three. they are trying to -- just model 3. they are trying to ramp up model y.

it is basic math. if the target is 500,000, and they are off-line, they will not meet the target. breaking news out of the new york stock exchange, an employee and a traitor testing positive -- trader testing positive.

emily: welcome back to special coverage on bloomberg television. i'm emily chang in the san francisco bay area. there continuing to monitor situation out of the new york stock exchange. two individuals have tested positive for the coronavirus this week. one trader and one new york stock exchange employee. earlier today, the new york stock exchange notified traders they would be going fully electronic, temporarily closing the options and equities trading floors. we got a statement from the president saying "well we are

taking the precautionary steps with the trading floors, we believe the market should remain open and accessible to investors." this on another down day for the market. two individuals an employee and trader testing positive for the coronavirus. we will monitor the situation and see how it impacts the open and trading day tomorrow. i want to talk about sequoia capital, one of the first venture capital firms to sound the alarm about just how dire the economic impact of coronavirus outbreak would be. two weeks ago, they sent a memo to entrepreneurs calling the coronavirus the black swan of 2020 telling our shipping orders to hunker down, conserve cash, and ask critical questions about their business. i want to bring in alfred lynn, a partner at sequoia. sequoia is an investor in airbnb, zoom. you are an investor in uber.

you sent that memo two weeks ago and things have changed dramatically since. even in the last 24 hours. are you even more worried than you were then? >> thank you for having us. we sent that memo because we wanted to let them know they should take it seriously. to the first.back this is a health crisis first and foremost. we want everybody to take care of themselves, their families, employees, and communities. as a business leader, we have to take this seriously and focus on survival. for many of our founders, that means focusing on cash flow and understanding how much cash they have to to get to the other side. i think we will get to the other side. we have been in business for years, we have seen many crises. every crisis looks different. the last was a financial crisis,

the one before was 9/11. we will get to the other side of this. ,n each and every one of these the most important thing is to stay healthy, not panic, and focus on cash flow. emily: let's talk about the financial crisis. in 2008, sukhoi also sent a famous memo, rip good times. do you believe what we are seeing now will be worse than the financial crisis? economist, i don't understand those details, but i can also tell you we have a lot of people working on it. scientists trying to figure out how we get to the other side. we will see what we him of this as china did, hong kong, or

south korea, or maybe not. i am hopeful we are going to get to the other side of this. crisis that hit napa harder was 9/11, when sales went to zero for a few weeks. we knew exactly what to do during the financial crisis, because we saw it drop significantly, as well. each one is different. the magnitudes are different. but we have examples from around the world where we can see ourselves getting to the other side in one or two quarters. i understand you believe it is a health crisis first, but what is your message to entrepreneurs and companies right now about trying to ensure the survival of their business? leaders, business leaders, it's important to focus

on your health, and generally on survival. back to understanding how much cash you have. if theremo, we mention is enough cash to last one or two quarters, if not longer. if you are in a situation where you are in that shape, great. if not, let's think about the trade-offs you need to make to get to the other side. about airbnbtalk where your an in investor -- where you are an investor, it has been hard-hit by the travel industry. it was intended to be public by the end of this year. given the uncertainty around airbnb's, how does it impact them to the public? ,> they are in a quiet period they did put out a statement

that they intend to be public in 2020. i think the main thing to focus on for them is i have great confidence in the routine. they are looking at what they need to do to get to the other side of this. travel is hard-hit, but travel will rebound. we are a social society, we are aspirational, and we will come out at some point in time. the conversations around airbnb are making sure about doing the right thing for the guests, hosts, employees, community, and for the bank holders. we are being very rational about what they need to do. dash?: what about door we broke the news earlier this year that they had filed paperwork to go public. this is a company that has continued to make rent by

subsidizing the business in part on cash from sequoia and others. continue moving forward becoming a public company, how does it impact their cash situation? >> i can't comment on the performance of the company, since they are in a quiet period is also verym clear minded. i think they are focused on making sure they also get to the other side. m&a in thisabout environment? there has been speculation about -- i know i'm asking you some sort of privileged question, but hoping you can give us some of you on them. you are also a personal investor in uber, there was talk about them acquiring doordash. can something like that happen

in this environment, or might that make sense? might we see other instances of tech m&a as a result? >> i think the m&a environment is ironically correlated with how people feel about their stock. this, it ise probably the best time to buy. i encourage companies that have good balance sheets to think about whether they should focus on m&a. all of them will be focused on survival, first and foremost. will come to a bit of a slowdown, and when we see ourselves coming out in one or two more quarters, we probably will see more m&a when people get to the other side of this. emily: let's talk a little bit about wework, which sucked a lot of the air out of the tech

cycle leading up to this. softbank might be backing away from a potential bailout of wework. softbank came into silicon valley guns blazing. a lot of capital. what is your take on their ability to continue to do that and how softbank backing out of commitments impacts the tech ecosystem? we are not shareholders in wework, i'm less familiar with that particular situation. that's why we sounded the alarm two or three weeks ago trying to make sure you get the cash you want and need. we may see more of these. havenk a lot of funds plenty of cash. we are open for business and being back and calm about the situation. if you fundamentally have a good business, if you have a business

that is not working, it is a good time to reassess and make sure you have a healthy business. you've got a lot of lp's in the health sector. the folks who are on the ground trying to find treatment, therapeutics, working towards a vaccine. what sort of activity are you seeing, and is it giving you hope? >> we are very fortunate to work with many lps on the front lines, including johns hopkins , including the medical school at stanford and harvard. with hopkins is coming out a test as early as april that they can test 1000 people a day. i think we are seeing the scientific community come together and try and help us out of this crisis. because of hopeful

all of the work. we are privileged to be working with them. emily: sequoia capital partner alfred lin, thank you for joining us. great hearing your perspective on all of this and how it will impact the tech economy going forward. we are getting some breaking news out of new york city. mayor bill de blasio giving more details on the cases in the city, saying the number of cases is growing rapidly. federal aid is hugely important, but only a start. 11 new york city residents have died from the virus. we are going to continue to monitor these headlines as we get them in. also getting some headlines from the president talking about the defense production act, which we were discussing earlier, which would help speed up the delivery of essential items like masks. the president saying invoking that would actually be the worst case scenario. we don't know if we are in that

scenario yet. but the president not going there just yet. more on that after this. we will be back. this is blumberg. -- this is bloomberg. ♪

we are continuing to get breaking news about the evolving situation on the coronavirus outbreak in new york city proper. mayor bill de blasio saying the numbers in the city are growing rapidly, 1871 cases so far. there is no cluster in particular at the moment, but 11 new york city residents have died. hoping for federal aid the mayor says is not going to be enough.

we are also getting headlines from the president saying he's hoping to not have to use the defense production act, which would speed up the production of masks and get them to folks who need them. that would be invoked in the worst case scenario. i want to talk more about facebook, taking even more dramatic steps to fight information about the coronavirus on its platform and launching a coronavirus information center -- information page that will appear on the top of user feeds around the world. mark zuckerberg holding a press poll earlier to detail the efforts. i want to bring in sarah frier, who covers facebook. talk about how this information center will work, and what this means for facebook, given their historically hands-off approach to misinformation? seeing aok is just surge of activity. they said there are more people

logging in today on a continued basis than on new year's day to post happy new year. it is really quite a critical time for people to get the right information. the question is whether they will find it. what zuckerberg announced is there will be something at the top of everyone's feed called a coronavirus information center, where they will have fai verifiable information from the who, cdc, and others, that is augmented by content created by celebrities, academics who can really help spread the message about things that are known to be best practices, such as social distancing and handwashing techniques. they are hoping that by doing balance thean help scales with a lot of the fear mongering that's happening and going viral on facebook. emily: some of the misinformation on facebook, and

it is not just facebook, it is shocking whether it is fake cures, or the coronavirus is a media inspired fantasy. i spoke with sheryl sandberg earlier this week about the steps they are taking to fight this. let's take a listen to what she had to say. >> we are responding with all hands on deck. we are keeping down any harmful information on the coronavirus. we are working with who closely and directly, taking down things they think are harmful right away, working with local health ministries. we are trying to get good information out to people. thingsone of the other she said in the interview was they would be taking down information even if it came from politicians, even if it came from celebrities, even in private groups, where things like medical misinformation are particularly pronounced. as far as i could tell, it seems

like a major shift in strategy. what do you make of that? can it impact facebook's strategy going forward? >> the biggest thing we have assessed in the past year with facebook strategy on misinformation is they don't want to be the arbiter of what is true and false. that's why they stayed away from a lot of the political misinformation. in this case, they have a chance to actually be more aggressive, because it is not facebook saying what is true and false, it is the who, the cdc. thosean lean on determinations and say "the world health organization says it is bad if our users are sharing x about the coronavirus, so we will take it down based on their input." it is harder to do that when it is something a politician said about another politician, then facebook has to make the determination. i think this is allowing them to be a lot more aggressive. it is a big step beyond anything they have ever done before.

it will be really interesting to see how it gets implemented, and whether it helps stem the tide of all of the fear mongering post that are quite harmful in their nature. zuckerberg mentioned he has seen rumors of drinking bleach and it will clear you -- cure you. that's the type of thing they want to take down immediately to prevent people from causing harm to each other. it focuses on that kind of misinformation, and they will focus less on the kind of misinformation that does not lead to bodily harm, such as lies in the election. emily: meantime, facebook employees have been ordered to shelter-in-place, just like us. they are not going to work, mostly working from home. zuckerberg talked about working from home. he talked about how this is going to impact worker productivity. he said the reality is, workers

at facebook aren't going to be that productive. how do they keep up with the misinformation at the same time that almost an entire workforce is working from home? >> they have to prioritize very stringently, which is why a lot will fall through the cracks. zuckerberg mentioned 2 things he cares about, one is the harmful information on coronavirus. depression and self-harm related content. zuckerberg said he's particularly worried as everyone starts working from home. everyone feeling isolated and depressed and potentially posting content with suicidal thought. that's the kind of thing facebook certainly wants to keep down quickly, because that can inspire other terrible people to get those ideas. and he also said that by having all of these people work from home for their own safety, there are not going to be as many contractors who have the ability to log into facebook's system

from home. a lot of that work content moderators usually do is being transmitted to full-time employees. emily: so many cascading and possibly terrifying impacts of this. sarah frier, thank you so much for that update. coming up, volatility and hedge funds. miss the conversation after this quick break. this is bloomberg ♪ .

says wey next guest were due for a downturn months ago, and here we are. the phonee now on from jersey city with a view from the hedge fund world. i have to ask you about the nyse moving to trading after two people tested positive for

coronavirus. what is your reaction? i think we are in this era of active social distancing. for the nyse, regardless of the announcement about two floor traders testing positive, i think it was bound to happen anyway. we are lucky enough to live in times where technology is able to cover for people being able to work electronically. much of the trading nowadays is done electronically. i think it was bound to happen, regardless of the news about people testing positive for the coronavirus. on previousuests segments pointed out, we will see more cases. the fact we have seen cases in new york city, in large cities, is not surprising. the fact it happens to be is it hit home closer to most of us. whether people have tested positive for coronavirus or not, it was bound to happen anyway.

emily: what are the sectors catching your eye for better or worse? >> in the hedge fund space, for us that follow the hedge fund world and work within the universe, it is very exciting. if you think about the value proposition of hedge funds, they offer active management, downside protection through shorting, and diversification. for many of the hedge fund managers, this is a period of tremendous opportunity. particular sectors that are in focus, utility, health care, and technology. people are very active. they are seeing a lot of opportunities on the long side and short side. said, as you mentioned earlier, we don't know when this will end. we don't know how long this will last. certainly there will be a rebound at some point. uncertainty, how do

investors even begin to consider what they do tomorrow, given we don't know i what will happen one hour from now. >> active and robust risk management is key. many of the hedge funds we have spoken to are essential to how they are trading. the big difference between 2008 and now is the industry as a whole, especially on the hedge fund side, management is active, it is every day, constant. people are vigilant about it. once you constantly have sound risk management infrastructure in place, you look at where you see opportunities. for a lot of the hedge fund managers, it comes down to the fundamentals. you can't time when we are going to see a bottom, when we will see a recovery, but what people are focused on is when this does end, who will be levered to immediate growth, who will be leveraged to recovery, and who has sound cash positions? who will get through this crisis and come out better?

it is really about the fundamentals. emily: a lot of investors want the answers. for joining much us. thank you all for tuning in. continued coverage of the coronavirus outbreak here on bloomberg television. ♪

[ fast-paced drumming ] [ fast-paced drumming ]

to ""bloomberg markets."." shery: i'm shery ahn and bloomberg's world headquarters in new york. we are counting down to china's major market open. paul: here are the top stories we are covering in the next hour. president trump invokes special powers to boost u.s. virus intervention and prevention as global infection cases top 200,000. the apb holds an inch