not as useful as an indicator as to what is going on elsewhere. romaine: romaine: we are getting the closing bell. the dow jones industrial average of on the day. nasdaq 500 up about 7%, also about 7%. your outperform or for the day was the philadelphia semiconductor index. in the commodity space, we did see gold get a bit of a bid, of about 3% on the day. about 7% on the day. in the treasury market, some interesting action. basically 67 basis points right now. yield.r

scarlet: i am looking at the advanced decline line. volume also picked up quite a bit. nasdaq, the s&p, and the of at least 20% above the average we saw last week. the sense of optimism broadening here. technology and utilities leading the way up. the laggards are energy have just which we discussed. each up at least 4%, so when you .ee laggards let's bring back our guest, michael shaoul. how do you think about inflation? everyone's mind is still on disinflation but with all this

stimulus and interest rates at zero, there is a point where we need to worry about rising prices, no? michael: yes. if it happens, it will be caused by supply disruptions. i think there are sometimes you have to worry about that. inflation,ply driven especially in agricultural prices, that is something to be legitimately concerned about. cap the indexes. from is already suffering deflation caused by swine flu virus. i don't think we will have a replication of that but i think locally, agricultural supplies are probably more vulnerable than they realize. i think we will get some

deflation but god help the central bank that pays any attention. maximum stimulus. if you get some inflation along the way, there is not going to be any response to it. romaine: that is a great point. do you think the fed and other central banks should be concerned about some of the deflationary effects out there? michael: the fed is absolutely fighting deflation. in the bondflation market, the long end of the curve starts to behave badly. does the fed take the final step nationalize the yield curve. i guess they would in that situation if they have to but if they don't have to, they won't.

scarlet: if you look at what my hear from company executives of earnings season, how much useful information for investors do you think we will really get? they don't have a a lot of visibility and ceos will be reluctant to go out on a limb. think you would be crazy to do anything other than withdrawal guidance. very strong on this. sometimes you kind of laugh at it, but i think these are some of the most confusing times for someone running a business. we just don't know. what would you take as a sign of it being not as bad as you would expect or worse than you would

expect. it is not realistic. romaine: speaking about how hard it is to run a business, we are getting some headlines. airbnb getting a one million-dollar investment from silverlake. investso said they would with more hosts into the community. update, the company saying it is focused on long-term, the investment from silverlake. , prior, i am wondering to the outbreak, we were expecting to see a few more of these big private companies, a few more of these unicorns try to make their way. the private corporate space, particularly with some of these larger names, do you think there is still an opportunity for some

of these companies to make it into the private market in 2020? michael: probably not. that is why you see a company like airbnb do the smart thing and secure financing while they can. if you are a profitable technology company, i think people will give you the benefit of the doubt. the building and they will, models, tied to activities being directly impacted by the virus, getting beipo is rightfully going to extremely difficult. if it happens, it will happen in asia. is the biggest risk for investors when it comes to positioning? is it to be sitting in cash, is it to be overweight one asset

class over another? volatility,you hate being exposed is difficult. commercial real estate, that b stands out as a second air that sector that -- as a was inflated going into this. had have allave said commercial real estate. i think that is the one, jumping into a distressed opportunity, i would be avoiding that. michael shaoul sounding the warning there for commercial real estate. that does it for "the closing bell." "what'd you miss?" is up next where we will be talking about jeffrey katzenberg. the streaming app launched today. this is bloomberg. ♪

♪ york to live from new our viewers worldwide, this is "what'd you miss?" i am romaine bostick, broadcasting alongside my cohost, scarlet fu. optimism seeping back into the market. scarlet: volume picked up on the u.s. trading day. this followed gains in europe and asia as well. passed the worse,

with major indexes having their best gain in almost two weeks, up almost 7%. one headline we have been keeping an eye on closely is what is going on in the u.k.. prime minister boris johnson has been moved into the icu for his coronavirus treatment after his condition worsened. this has led to questions over who will run the country. in joining us by phone, tina at avon a partner hurst, a political and legal advisory boutique in london. in your london, the u.k. prime minister now hospitalized. we outward from the u.k. that dominic raab, the foreign secretary, will be taking over some of his duties where necessary, where appropriate. what does this mean for the

running of the country? michael: -- tina: it is a good question. bearing in mind that the u.k. does not have either a written any kind of vice president like the u.s. has. the responsibilities, but part of what the uncertainty is about, just the communication strategy coming from number 10 on this. night, being told last and we also had an additional speech from the queen, that the prime minister was being added to hospital as a precaution. now we are finding out that he is in intensive care and there are suggestions that he might end up being on a ventilator.

, and igood delegator think it is quite a chilling effect, particularly after the market performance today. to kindus is not going of peter out in some sort of predictable fashion. romaine: when we look at i guess the way the governments are responding, i guess what we saw yesterday out of the queen in the u.k., quite an unusual moment. but we have seen a lot of leaders hungry to see that leadership at the federal level in the u.s. and in a lot of countries. how do you rate what we are getting out of those leaders so far not only in terms of

logistics but also reassuring the public how this is being managed? tina: it is a remarkable effect. perhaps contrary to what we might expect in a situation where people are dying and the public is being tested, social systems are being tested, the remarkable thing is that approval ratings are actually skyrocketing for just about every leader presiding over a country that is a virus hotspot. that includes italy where the government under prime minister conde has seen very strong ratings. boris johnson, higher ratings that he had when he won a landslide in fact in the elections. trump, they rally .round the flag affect the problem is that it is

unlikely to last. for president trump, can it last until at least the election? right now, his apartment, presumably vice president biden, is not getting a lot of airtime. he can't get a lot of airtime. tina: it is an important point. it looks like we will see the conventions postponed. obviously ground to a halt. sure that the spike in approval ratings will be able to withstand what we have heard from the u.s. surgeon general and others about the projection of deaths. what really matters here in terms of the electoral outcome

in the united states or anywhere else is the ability to maintain public evidence and public -- public confidence and public trust. that is a factor we saw very much diminished in the run-up to the 2016 election and of course the referendum results. plummeting of public trust. romaine: so -- all right, we are listening to dominic raab, the u.k. foreign secretary speaking in a prerecorded statement. ande can defeat coronavirus pull this country through the challenge. >> are you confident that the government is under control tonight? there is an incredibly strong team spirit behind the prime

minister and making sure we get all of the plans implemented as soon as possible, and that will bring the whole country through the coronavirus challenge that we face right now. scarlet: that was dominic raab, the u.k. foreign secretary, making some comments after we know the prime minister of the u.k. breast johnson was taken to the icu. of course, we will keep you posted on any further developments. i want to bring back tina fordham. we started out talking about what was going on in the u.k.. dominic raab said the government business would continue. other things are still going on in the background now.

can we assume that things like like brexit will continue? tina: i think no government will to do any other policy except for this virus. that is why i have been saying for a couple of weeks now that i expect brexit will be postponed. that would have to come at the june brussels summit. it would have to be requested. of course, that is the last thing number 10 would want to be talking about right now. both parties are really fighting for survival. brexitct that a delay to will probably suit both sides. on the other site of it, just

thinking about the people for whom brexit has been the primary objective. this virus has done more to reduce -- to reverse globalization, poverty, and borders than brexiteers could have dreamed of. romaine: you kind of mentioned some of the populist movements or what passes for populism around the world. i am wondering, do we start to see a change in voters in terms of what they want out of their government? a lot of what we are seeing now is a direct outgrowth of choices that voters made and made pretty definitively. sense that there would be a shift in voter attitudes? is ani think that

important point. what you are asking about, does the demand-side change in terms of who is electable? said thishas famously country has had enough of experts. the antiscience bias in the u.s., broadly similar. more in nothing we need a crisis like this than experts. that has been seen quite clearly. ae question becomes whether severe economic and financial crisis colliding with a health crisis leads to some kind of return to more moderate political pace, or whether a new wave of populists can sort of harness the fear, bewilderment, or something else. and i hope it is not wishful thinking, if we look

back to the 20th century leadership profiles, leaders with wartime experience were very much sought-after. , wonder, in the 21st century and i do think this pandemic will be the defining feature of this century, we will rely on leaders who have experiences managing crises, who can manage complex systems. i expect people with that kind of management experience will be that more desirable. they will be the generals of the 21st century. romaine: they will be big changes that you typically get any time you have a crisis like that be well, be safe. coming up a little bit later in this program, the battle to survive. we will hear exclusively from peter krause, the wall street

veteran expecting the route in credit markets only get worse. this is bloomberg. ♪

romaine: let's talk credit markets. peter krause, the chairman and ceo of aperture investors, basically saying that there is still the worst to come. he spoke earlier with sonali bostic. happening right now in terms of investors being able to differentiate themselves, companies are challenged in terms of estimating what their earnings will be. 20 or sonished reading

companies releases. they pulled all their guidance. two, they are not able to estimate the length of the crisis and impact on their sales, revenues, or expenses. now it will take very thoughtful, deep analysis to actually understand which companies will survive and will survive both intact and with financial strains coming out of this market. that is an opportunity for humans to identify. very difficult for quantitative programs to do that. environmentt is an that humans who have very strong analytical skills and detailed research capabilities can differentiate themselves and produce outsized returns for clients. passive, with all this volatility, extreme

volatility, what are we learning about the passive industry in the face of a crisis. the passivenk industry itself has seen some differentiation. if you are an investor in a large cap passive mutual fund, tracking between the index and your actual returns. theou are in some of spicier etf's or even etf's that do not follow large-cap securities, you found that the tracking error between your performance and the index is quite large. that is due to the illiquidity of the underlying assets and the challenge for providers and the associated persons that trade .hem etf's are derivatives, not

necessarily going to give you the market return, and you need to be cautious about what you own. >> talking about how it will be difficult for investors to assess earnings from here, telling businesses where to invest and really deciding a lives and who dies. peter: it certainly makes it more difficult. the major issue is not so much the government. i think the government is trying to support existing businesses and jobs. the major problem is what will happen to the covid-19 disease. how long will governments require shutdowns, social distancing, and lack of interaction. and when the social distancing is lifted, how will people's

behaviors change at all. scarlet: we bring you special coverage of all the price action. because you can't get to the theater,

we're bringing the theater home to you with xfinity movie premiere. such news. i know what this is. this is a real thing. our brand new service that lets you watch movies at home, while they're still in the theater. oh, mister elton. ahh! he has figured out a way to be invisible. they picked the wrong woman. just say "xfinity movie premiere" into your voice remote to bring the theater to you.

♪ >> the facility that -- the crisis response facility is designed to give rapid and flexible help to clients, to member countries who are under pressure as a result of the crisis. as you said, this can include financing, health infrastructure needs, health fissures that need to be met, but also more widely, financing where infrastructure

investments is an impacted -- is not impacted. we can also finance other productive sectors, support for manufacturing, those kind of things can also be included within this facility. is tost important thing identify the needs of our member countries. and the mandate given by our members to support whatever those needs are, particularly in terms of health and economic infrastructure needs that those countries face. which country do you expect to see the most demand and how quickly can you deploy this cash? >> we discussed this with our board of directors. there are widespread needs around the world but obviously particularly in asia. than 20already had more of our members come forward to express interest in accessing

this finance and i expect more to do so in the coming weeks. very much the emphasis from the bank's point of view is responding quickly and flexibly to those needs. those member countries within weeks of those countries getting in touch say they want it. initial money we have attached to this facility. obviously, if the demand is greater, the facility could be topped out in future. this is very much part of a coordinated international response. the g20.e call from we are working closely with other multilateral development banks. of from within the community

international financial institutions, there will be many sorts of finance available to members and we help those will be complementary to each other, to unable our neighbors to come through the severe economic crisis. >> you mentioned the possibility of topping it up. $5 billion is a lot but in the grand scheme of things with things happening, it does not seem like a lot of money. have there been discussions how large the facility could eventually get? danny: we have not discussed that as an international financial institution, we are there to support our members at their time of need. $5 billion as allocated now will help us finance the urgent needs that come forward first but also the scale of the demand.

obviously, if that demand is greater than the $5 billion we have allocated, we would go back to our board straightaway. that is something we can and would do. $5 billion is a substantial allocation and it will depend on the need and demand from our members. pressureu seeing any on any of the loads you have ?ent out are you looking at restructuring or for giving any loan as a result of the coronavirus? -- the are in touch with need for additional help in our members. some existing clients may ask helpore rapid drawdowns to

their needs. scarlet: that was danny alexander, vice president and corporate secretary of the infrastructure investment bank. we want to shift gears and look at oil. it is falling today after saudi opeca, russia, and other members and allies raced to try to strike some kind of deal in limiting production. our next guest, pressure -- professor for asian and eurasian studies. members have a meeting on thursday. it was supposed to be held today, it was postponed until thursday. the energy ministers will be meeting on friday. i'm a little confused here. we are talking about reducing production by 10 million barrels

per day. what does that actually accomplish when it does not fit an -- does not create an increase in inventory? >> thursday, the meeting of the opec ministers, friday, a meeting of the g20, at best, it can delay the inevitable. the crashes dictated by the loss and demand. the coronavirus crisis hurts oil more than any other source. the major change in our behavior is lack of mobility. oil, the transportation sector. until there is a dramatic or significant change in our movements, whether it is through the deployment of a vaccine or medication or through a policy change, we really cannot shift the balance in the oil market.

romaine: one thing we were talking about a little bit earlier was the idea of the storage capacity, not only in this nation but around the world as we continue to see production continue at its own pace. i am wondering whether or not the storage capacity issue could end up becoming a factor in whether we end up getting any meaningful production cuts. agree with you that i think the extent of the storage will affect the oil price. that is why this shutdown, or is crash of the oil prices inevitable as storage starts to fill. moves can impact may be is what damage is done to fields and infrastructure in the process. we tend to think of oil

production as flipping a switch on, flip it off. it does not work that way at all. or offngs can flip on the oil field. capital and there is also potential damage which could affect future oil production. be a bitrocess could slower, this could impact the scale of the damage to production. i think we really need to start thinking about -- i don't think that is so much on the policy agenda right now, but we need to be thinking about the day after. this pandemic will pass and our middle -- and our mobility will return. we will have had a lot of investments not made in new oil production. precisely the low oil prices we are having now and that we will have right after the pandemic will actually give a boost to

economic activity, and that oil might not be there when we need it. look ahead for when the pandemic passes and we start thinking about energy policy, who do you think will be in the best position? ahead andome out most who will come out with the most constraints? brenda: it is a good question. the most expensive production is shutting off now. canadian production, brazil not going forward, smaller producers will probably see a lot of mergers and acquisitions, a lot of smaller producers being bought up by bigger producers in the u.s.. like saudiduced, arabia and the uae will be in

better shape. period,an extended double whammy with lesson revenue from oil and at the same time having to deal with a public health crisis. see instability in some producers. i would keep my eye on algeria. going into this, they have had some massive leadership crises. be having to already difficulty dealing with both crises at the same time. iran itself, not a major exporter but an important producer over the years with probably much higher rates than is being reported. this will affect production as well. brenda, love to talk to you all day. we will have to leave it here. we appreciate you taking time to

be with us today. of course, a fellow at the atlantic council's global energy center. this is bloomberg. ♪

scarlet: let's get you wake check of the latest -- acorn check of the latest is this flash update. staying at home because of the coronavirus may help some drivers in the u.s.. allstate insurance is returning some money to drivers.

allstate says personal driving customers will get back 15% of monthly premiums in april and may. sales at bmw plunged. the automakersof markets and brands as well, from mini to rolls-royce. carmakers in europe and the u.s. have shutdown production lines. bmw is expected to resume operation in about two weeks. will/flightsines from the new york area -- will slash flights from the new york area. united airlines has made a similar move. new york is the epicenter of the coronavirus outbreak in the u.s. that is your business flash headlines. story, i didthat not realize that the new york

city area airports are all only operating from 10:00 a.m. until 6:00 p.m. it is a serious pullback in our capacity. romaine: not only are they only working that time, there are absolutely no overnight shifts. usually those airports are 24-hour operations. tomorrow, there will be a total of 13 departing flights out of those airports. that is basically what we will get going forward. on a typical day, we get close s. 300 departing flight no one who doesn't really need to travel is traveling through airports. you don't really see people traveling on the roads as well. analyst jamie baker

says u.s. airlines could take multiple years to return to the level of output. while beforeo be a we get back to those 300 flights you were talking about. this is bloomberg. ♪

>> president trumpian joe biden had a phone call -- president trump and joe biden had a phone call to talk about the coronavirus. he said he wanted to talk to the president, maybe way in, get some advice. funpresident kind of made of that, said fake news was reporting it. apparently, people in the know, that conversation did happen. we don't have any of the details yet but i am guessing we will hear about it from president trump went he and the

coronavirus task force get going. >> the hill was saying that the call began taking place last week after joe biden offered to speak to the president about the u.s. strategy. this is where current administrations often call on past administrations, what was your planning? they often did have a plan in the works. you can fall back on people at work in crisis situations, how did you handle it? when time is of the essence, you don't want to waste any time. >> this is a little bit different where you have a high-ranking member of the previous administration now as a chief political rival. the atmospherics might be a little bit different. and again, we are talking about dissident trumpcare.

-- talking about president trump here. >> normally, in times of crises, that is what we see happening but that has not been the case in this administration. >> this is coming on a day where there is a lot more -- there was a lung more optimism in the markets. markets up better than 7%, and yet we still go back to where we started the show. this is a medical crisis and health crisis. minister of prime the united kingdom in intensive care owing to covid-19. >> the only way you continue the trajectory of may be reaching a peak where we stay at this level, the number of cases, the number of deaths, these numbers

are going to really catch us all off guard. the point is, you have to continue sheltering at home, maintaining social distance, in order for the metrics that are out there that people have put in place for all of this to play out. otherwise, we can't really figure out what the future will be. the models, right? absolutely. today is the launch day for quibby. device, you have probably seen an ad for this. jeffrey katzenberg joins us on los angeles.m how are you? jeffrey: i am good.

how are you holding up? >> i am ok. how are you holding up? jeffrey: the same. for a lot of us, pretty stressful if not distressing time. like everybody, we are hunkered down and trying to make our way through it. our mayor and governor i think has shown some great leadership we will see. we have not been hit with the wave yet. jason: a lot of high marks for governor gavin newsom. we would like to catch up with you on that. let's talk about the launch day. what are you learning today on launch day that tells you about the state of consumer and what their appetite may be for this should -- for this form of media? this is short form, right?

we have movies that are maybe two hours in length but they are in chapters of under 10 minutes. a couple of interesting statistics i think that will give us all some insight. there are 2 billion people who watch 2 billion hours of content every day on their phones. it is a massive global market. stream.umping to that more importantly, you just saw a report that in the month of march, viewing of video on a phone is up 60% over last year. sheltered inl be place. we are watching tv but we are watching even more video on our phones. carol: we talked to the ceo of verizon. he talked about all the

streaming people are doing at this point because they are sheltering in place. what does a user get in they go on this launch day? and what are your expectations? jeffrey: between today and next week we are launching over 50 original shows. there are over 500 episodes. both movies mix of and check yours as well as unscripted and documentary work, plus our daily essentials, which is the cure ration of professional convenience of news , sports, whether of a lifestyle, talk, all of those things. it is very diverse on purpose. different things for different people.

each fewident that will find things that they will be entertained by and find unique and different. jason: i have to ask, you have some huge names. lebron james. you have sports. famous actors. i saw bill murray pop up. what was the secret to getting everybody on board here? isfrey: i actually think it three things. first is the new form of storytelling. the creative community. hollywood is quite entrepreneurial in that regard. the second thing is that we gave them technology, a set of tools that allowed them to make

technology look beautiful on your telephone, something that has not existed before. i hope you get a chance to look at this on your phone because it really is special. finally, that they have a real upside ownership in the content. the combination was undeniable. carol: i so apologize but we do have to leave it there. jeffrey katzenberg, of course the founder of quibi, joining us from los angeles. we are going to toss it back to the folks on bloomberg tv. scarlet: carol massar and jason kelly of bloomberg radio. i was just checking. quibi had a little bit of an outage for an hour. they were fixed by 3:0 7:00 p.m. eastern time. -- 3:07 eastern time.

"bloomberg technology" is next in the u.s. this is bloomberg. ♪ to help you stay informed of the latest news

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♪ welcome to "bloomberg technology." stocks surging the most in almost two weeks on reports that the death toll in coronavirus hotspots is showing signs of slowing down. the s&p advancing in late trading almost 7%. other hotspots developing. japan preparing for resurgence. we will send you to washington me