♪ welcome to "bloomberg technology." markets falling for a third straight day as investors brace for a prolonged shutdown of the u.s. economy. president trump said it will be tough, but could it be longer? the briefing scheduled to start any minute. we will take you there surpassedy as deaths

4000 with more than 200,000 cases of the coronavirus nationwide. stocks falling yet again. i want to bring in romaine bostick. is this investors waking up to the fact this is going to be going on indefinitely? romaine: that is what it is. the town changed -- tone changed yesterday out of washington. the cheerleading ran into the reality we are seeing a growing number of deaths. where i have at in new york -- i am at in new york and the visuals on the ground, it is depressing and stark. it is reminder of how much longer we have to work ourselves through this health crisis and what that means for the economy. the idea you're seeing more cities and states begin to either impose shutdown orders or impose --

when they talk about the market response, the market is pricing in recession expectations, the idea the recession is deeper, longer, and the recovery may not be the v shape some were hoping for. only one stock in the dow jones industrial average, that was jumprt which had about .4% today. when you look at the s&p 500, you had eight stocks that were higher. the nasdaq was a small cadre of stocks, t-mobile and insight. the big names are anchored towards consumer discretionary spending. hotels, cruise ships, carnival is down 33% and the airlines, -- moving lower. no area of equity market got spared today. it will be interesting to see what happens tomorrow as folks

can sort through the selloff we had today and whether the valuations have come down enough for people to take on risk. the risk in the markets is record tied to the progress we are seeing or maybe not. [please stand by] emily: should be looking for? romaine: on a day like today, no. clorox, kellogg's, target, they are your winners. when you look a little bit more long-term, and everyone we talked to on our program throughout the bloomberg day, they so you look at your out and look at the big names, microsoft -- a year out and you look at the big names, microsoft and

such, they offer value. that doesn't mean you will make money buying those stocks over three or six months pay but two or three years out, those are the stoxx investors are focused on as recovery -- the stock investorss are focused on. they offer some less risk. that is where the focus is defined companies that can focuse this storm -- that is find the companies that can survive this storm. emily: qualcomm not falling as much as other names today, little bit down 2.5%. the tech stocks are under pressure as the coronavirus spreads. to give us more into what is happening, i want to bring in the ceo of qualcomm who joins us on the film -- on the phone. i know you have got a lot going on. products, chips power the phones

and computers working overtime right now as these shelter-in-place lockdowns are happening. give us a picture of how the situation is impacting demand for qualcomm products. it is nice to talk with you. thank you. if i look at demand, i think everyone has been hit by an impact in the consumer while the virus has been peeking in inividual -- peaking individual countries. in china you have seen an improvement in terms of demand. everyone is trying to put their arms around this, how western europe and the u.s. will deal with it. in terms of the operations of the company and the supply chain, the ultimate end of demand for technology is robust.

we have to consider how we get through this near-term period of demand. the technologies themselves and the operations of the company's continue to go quite well. given the difficulties of this environment. emily: i know there is still a lot of uncertainty, but you have to be doing the math and be preparing for the worst case scenario. what is your sort of operating assumption of how much worse it gets for the overall economy, which is an indication of demand in general? steve: if you use china as a guide, it took about five weeks for their handset activations to resume to a more normal level. i don't think anyone thinks that the issue wide is going to be any less severe than what we saw

in china. what happens with companies, companies,y big tech we are focused on making sure we are positioned well coming out of the situations. if you look at the technologies like 5g or the smartphones that people are using to get by during this environment, we know those will continue to be important people. maybe even more so given the usage patterns we have seen. we want to make sure we are prepared to take advantage of what we think will be a significant uptick on the back side of this. figuring out work -- to make sure your organization continues to be strong during the downtick. we continue to hire and add people in areas that were driving 5g.

that will continue for any length of time we can envision. we are in a different situation than other companies. we know the technology we are working on will continue to be important. preemptive -- you preempted my next question. i wanted to know about your operations in the midst of the lockdown, how much of the company is operating as compared to normal? steve: we went to work from home and essential personnel about two weeks ago and we are going to extend that. we did it worldwide. we'll do it in the united states until the end of april, consistence with the guidance the president did. china, there are different guidance from the local governments. we are in compliance with that

area of what has happened, even given the fact the majority of -- the vast majority is working from home, we are continuing to make progress. we had already instrumented our labs so you don't have to physically be in them to make a lot of progress are you we don't expect, nor do we see -- make a lot of progress. any slowdown.t we expect and take a blue chips and make progress on 5g. it is remarkable. it is a tremendous amount of bandwidth delivered to the homes of our software engineers to make sure we make progress. we had, like every company last week we had to figure out how to deal with the shutdown in india. we figured our way through that. most people have continued to do

well. tremendous usage of data into the home and mobile data to make sure we are successful. video conferencing. i don't think the workplace will go back. people have gotten a taste of this. i think that is really, forever, the demand will be there for these technologies. i have been proud of the company the way it has responded during this time. emily: you wonder if some of these new productivity habits will carry over into a return to normal. are you saying the rollout for 5g will not be slowed down at all? should we reset expectations? is, nothe short story one has a sense for how the consumer will react here in the near term. forthe networks, the push infrastructure, the desire from

toernment or by government push technologies continues to be strong. i think most governments are trying to figure out, saying work from home, educate from home, telemedicine some of these are things we need to be prepared to deliver at a much higher volume across the entire spectrum and how do we get that figured out? i expect to see technologies worldwide being encouraged to be andoyed in stimulus bills things like that. that is something people have learned as we have learned in the united states we need to do a better job at doing. i don't think you'll see anything in terms of the deployment of these technologies, moving forward area how long does it -- moving forward. how long does it take for the consumer to get through this issue? when they do, they will want it

in a big way. emily: how is the supply chain holding up? are there weak spots, or you predict any ahead as the outbreak spreads? we have gone from china to europe to the u.s. and india at the next epicenter. india as the next epicenter. steve: we had less in china. we had avoided a number of issues other companies have seen. you had a little bit of trying to figure out how to make california deal with the shelter in place guidance the governor gave. most people have worked through those issues. supply chain, the supply chain is quite strong now area it has been for some time. -- quite strong now. it has been for some time.

that is the issue in our area. you have some issues every once in a while with delays because there are not as many commercial flights going on between asian countries. you don't have as much opportunity to take advantage of logistical flow. by and large, people are working around this. supply chain's don't seem in our industry to be the issue. be thens don't seem to issue. emily: i am wondering about your concern for your employees and how you are navigating that in terms of thinking about worst-case scenarios, preparing for long-term consequences. what do you see when you look ahead and what keeps you up at night? steve: as a manager the first thing for everyone is making sure your employees and

customers and all of the folks in the communities you live and work in our safe. was people are doing a good -- most people are doing a good job. because we have done a lot of business continuity planning, and we have had the if a structure in place to allow us to deal with something like this, it is about the operations, the equivalent of making sure your i.t. can handle the load and things like that. we spent a lot of time making sure our balance sheet and we can sustain ourselves financially. and then you stress the people, make it as much progress as you priority, keep yourself safe but make sure you are making as much progress as possible. we are using electronic video conferencing and it is a tremendous amount of video calling and video meetings.

24 hour period, essentially 100% of the company's online. we have more active vpn connections that we have employed at any given time. it is a tremendous amount of work, teams messages back and forth. i think that is the working mode people are going to be in. keeping people focused on the things you can control and trying to deal with the fact the things you cannot control, don't stress on that. it is an unusual time for people, me included. we have to get ourselves through it. emily: appreciate you giving us a window into your world. you soollenkopf, thank much for joining us. coming up, we will take you to louisiana, one of the states hardest hit by the virus,

emerging hotspot. the attorney general will be joining us. we are waiting for the press conference at the white house as the pentagon is seeking 100,000 body bags for fema as the outbreak worsens. we will take you there. this is bloomberg. ♪ ♪

♪ over: louisiana stands at 270 deaths from covid-19 and 6400 cases. it has been 23 days since the first case was reported there. i want to bring in the attorney

general of louisiana, jeff landry. thank you for joining us. the louisiana has quickly become a hotspot. update, how dangerous it is, whether you have the hospital capacity that you feel you need to get through this? ag landry: i think we are faring about as well as anybody else. it could be worse. supply kink biggest that we have, we are aggressively trying to pursue that, is actually ventilators. we don't believe we are going to reach our peak -- they are saying april 10, but i think the 10th for the 15th. medical doctors around the louisiana and new orleans -- new orleans continues to be the hotspot of the state. it is the most populated and kind of the epicenter for the south in terms of covid-19

cases. many supplyg as problems as probably other hotspots around the country. i talked to or medical providers on a pretty daily basis. they seem to be intact. outy: europe and speaking about price cap -- you have been speaking out about price gouging. this like amazon, saying company has been failing to tackle this. i have removed people from the platform for this reason. and can youstatus tell me if there is any criminal investigations pending of amazon or the other e-commerce platforms? do commentwe never on seeking investigation on anyone. generalay the attorney

sent out a letter to the number of big platforms like amazon and ebay and craigslist. we did receive a response from amazon and from ebay. the response was adequate. we hope their conduct continues for the have removed a number of products off of their websites. we are asking them to constantly monitor those sites for price gouging. it is problematic in the environment we are in. price gouging is a subjective test, based on supply and demand . position to in a weigh the evidence of whether it is price gouging or in line with market conditions. something you could pursue legal action against amazon for, or only the third

party seller, given that the seller is directly responsible but amazon is carrying that seller on the website? ag landry: i think that platforms, and i will not single anybody out how a claim that it is amazon only, -- single anybody out, anyone that has been notified and continues to per protocols in place, that is problematic for them. bezon did that -- i could wrong. they have responded to it. i could not tell you that amazon is ignoring our request. they seem to be proactively trying to participate in the market and get these people off

of their platform. emily: amazon workers have been pushing back against -- about safety conditions, especially at where houses. there are no amazon where houses at louisiana -- in louisiana but you have got deliveries. what would you like to see from amazon when it comes to safety, and are you satisfied with the measures that have been taken? ag landry: what i would want from amazon or any other company in the united states is to respect the current crisis we are in. that is a respect i believe goes both ways from employees, because they have a responsibility, as well as employers. we are sending a message to the folks that, don't go to work if you are sick. feel you have been exposed, let your employers know.

and on the flipside we are encouraging employers to become changes in respectful -- becomes -- employers to be conscientious. i try to take a measured approach with employee-employer disagreements. we need to see all of the facts that were presented. i hate to talk about one case, but it goes to everyone to take a measured commonsense approach as we try to work our way through this crisis. you have been aggressive in the big tech regulatory probes, focusing on companies like google and facebook. has this outbreak slowed down those probes, and what can you tell us about status or progress? ag landry: think the answer is the coronavirus has slowed down just about everything other than the 24-hour news cycle.

it becomes difficult when our people are working remotely and our resources are stretched thin, trying to make sure we can stand up to things going on inside of our state and at the local government level. a lot of things we are dealing with have to some extent taken a bit of a back burner. , in theeful we are all not so distant future, we will all be returning back to some sort of -- be returning back to some sort of normal once we get over this peak. emily: you have got stay-at-home orders through the end of the month. although this looks like it could go on longer. do you believe folks across the country will have to stay home longer if it continues? ag landry: i am a guy that always looks at the glass half-full.

or ian eternal optimist would not run for office. or first-line medical providers, the men and women in america working diligently for treatment, for some vaccine, some relief who will get us there, hopefully around the time of the peak. we know that america's health care system is first class. the virus but you can't handle a large amount of on oned patients particular time. the fact we can flatten the curve off, that is based on people being responsible, using the social distance guidelines the president and governors are pointing out, respecting others and recognizing the most vulnerable population out there. knowing who that vulnerable population is in respecting that is the biggest and best thing we can do at this time.

emily: louisiana attorney general jeff landry, thank you for sharing your time. we will take you to the white house as an is the virus press conference begins. the bank of america ceo. ♪ these days you need faster internet that does all you

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emily: welcome back to bloomberg technology. i am emily chang. we will take you to the white house. the daily task force breathing will begin. the president will be speaking -- force briefing will begin. the president will be speaking. the economy is going to bounce back quickly.

take a listen. >> we saw double digit rates. as we went into march, a lot of it willumer spending not be a small sample. that is faster than last year versus the year before. the economy is on this path. it has changed dramatically. what congress passed with the stimulus bill is trying to keep people employed.

other employees have been told that. keep cash flowing. that will be terrific. keep the economy growing. how do we get that money out quickly? my advice to customers is to go back to their banking. that is what the money is geared to do.

we are setting up shop and activating thousands of people to be able to take the applications. >> all of us are trying to live day-to-day and week to week. how large a risk is there? if you look at economists who are 25% down in the second quarter, the sheer amount of is overwhelmedt by the amount of support coming on the market. we are geared to get this out of the other side is fast.

you will see a rebound on the other side of this. there will be a deeper downdraft. economists believe there is a reversion back to where the economy gets back to the same size. that is a pretty fast turnaround.

we are seeing people go out and shop. the question is when the consumer feels careful -- comfortable going out. when the come health-care crisis is solved. there are tremendously talented. -- people in the health-care system. it is a matter of how fast we can get there. trump: rapid medical intervention. and very serious innovation. and fanning dangerous foreign travel. we did that far earlier than anyone would've thought.

way ahead of anybody else. know every american will do their patriotic duty and help us achieve a total victory. there is a growing threat that some will try to exploit this for their own gain. we must not let that happen. we will never let that happen. launching u.s. is enhanced counter narcotics situations in the western hemisphere. we must not let the drug cartels exploit the pandemic.

we will provide additional support for eradication efforts that are going on right now. employing additional helicopters. .ur forces are fully equipped secretary mark esper and attorney general bill barr and national security advisor robert o'brien will provide more details.

i am going to ask mark to start. that we will take questions as it pertains to this. >> thank you. i appreciate the opportunity to be here. time when the nation and department of defense are focused on protecting the american people from the spread of the coronavirus, we also remain vigilant to the many other threats our country faces. today, the department of defense, in close cooperation with our inter-agent partners, and alluded enhanced antinarcotics operations. we want to protect the american

people. i want to thank all of our partners. the coast guard, department of homeland security. dea, doj, and members of the justice community. the president has directed the deployment of additional ships and aircraft. last year, the u.s. southern command operations resulted in the seizure of over 280 metric tons of drugs.

for of which was designated a shipment to america. corrupt actors rely on the profits of narcotics to maintain their oppressive power. drug traffickers are seizing on this lawlessness. we must do more to prevent these drugs from arriving on our shores. furthererations will stop the flow of illicit drugs

to america. i want to thank president trump for his leadership and support. many criminal organizations are attempting to capitalize on this crisis. keep therations will pressure on these groups. thank you for your leadership. we continue to take action around the world to defend our great country. >> thank you for those words. thank you, mr. president, for your leadership.

they are thousands involved in this operation. people will try to take advantage of this. we are at war with covid-19. with terrorist. and drug cartels. we will marshal whatever assets are required.

now is not the time to try to penetrate the u.s. with illegal drugs. we will defend our country. >> thank you for your decisive leadership. during this crisis, we are all focused on covid-19.

but our national security work must go forward to protect the american people from the whole array of threats. we must destroy the mexican cartels. the president has made clear that we are in this fight against the cartels to win. we are not interested in half measures.

building on your success with the mexican resident forging a cooperative relationship. go down and meet with them. we anticipate that these will bear fruit in the months ahead. it quickly became clear that we can obtain the most immediate results.

the cartels have been using these routes to take cocaine up from columbia. also out of venezuela. because of the superb work done by the defense department and our intelligence community, we know exactly where these traffickers are. have been significantly limited and are ability to interdict because of the numbers and assets we employed. we could only intercept a fraction of traffickers.

we are talking about 100 of tons of cocaine we are able to seize. this will radically improve our interdiction efforts. last week i announced the unsealing of charges of narco former drugainst a regime. we are applying pressure. they are trying to establish an air route out of venezuela. that is one of the reasons we are trying to move firmly against that corrupt regime. this drug war has, for many

decades. at times, we have taken our eye off the ball. you have brought focus to this fight. the cartels have to be defeated. emily: the daily white house briefing continuing. president announcing a massive counter narcotics operation against the drug cartels, saying they are trying to take advantage of the u.s. during the crisis. we will continue to listen in and bring you any important headlines as they roll in.

target and walmart were some of the rare winners for today. why do you think these names are looking brighter than the rest given that almost no one seems to be immune from the pain? i do think there are a couple of key things that make walmart and target stand out. they have the exposure to some key categories. consumer staples and wellness. you can remain open. you are experiencing demand feet. the stress on those retailers is about adapting for social

distancing and hygiene. they have a lot of pressure on their supply chains. they canegories mean continue to operate. you really do get a boost in your digital or sales and consumer engagement. you have an advantage. they have same-day pickup. it is a good way to help consumers and make things easier on them right now. emily: we spend a lot of time

talking about amazon and how they are weathering this crisis. how are folks like walmart and target weathering this in comparison to amazon given that ish more of their business really online? retailers have to put the safety of their employees and customers first. it is uncomfortable to pass someone in an aisle in a store.

a lot of those things have to be put in place. that is an operational challenge. emily: how do you see this changing as the weeks go on? folks are buying the essentials but not buying as much as they would in normal times. their hours are being cut. think in the short term.

things you can do to save cash. what are you doing in the short term to increase safety if you are still in operation? what is a going to look like in the future? what will be the new normal? you have to start thinking about that. retailers are not quite there yet. they are still dealing with the shock.

you need to start thinking through what that could look like. thank you so much. i want to talk about tesla. it always sees a big end of quarter push for deliveries. we have been covering how tesla was forced to suspend production. us about what this quarter will look like for tesla .iven the pronounced slowdown the firsts like quarter has been such a long one. tesla's plants in china were shut down.

tesla usually does a big end of quarter push. they get all hands on deck. so much of california is under a strict stay-at-home measure. emily: what does that mean for the next quarter for tesla? happen asll probably the factory in china is back up and running. you will have model threes and

fremonts whil the factory is idled. i don't know how much inventory tesla is carrying. typically at the end of the quarter you can find a lot of deals on show remodels and models that were used for test drives. -- fully withdrawn its end of your guidance. one of the big questions is, what is the guidance for the year? emily: i know you will continue to follow the nuances for us. we are continuing to listen into the president's press conference. you can catch that on the

terminal. thank you for watching us, we will sue tomorrow. ♪ there's no place like home. especially when xfinity

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♪ >> good evening. we are counting down to asia's major market open. i am haidi stroud-watts in sydney. these are the top stories. wall street open a new quarter with eight steep fall. are primedc markets for more declines. china