♪ >> welcome to "bloomberg technology." i'm emily chang peri--- i'm only chang. -- i'm emily chang. oil rising from record lows. we are standing by for the daily white house briefing. to president expects it start a 5:45 p.m. eastern time. meantime, new york reporting 15,000 deaths in the state so

far, but the lowest number of daily deaths for some time, governor cuomo saying 474 people died in new york in the last 24 hours. we have cases surging in italy, singapore, ireland. treasuryetary of steven mnuchin says most of the u.s. economy will be open by august. i want to bring in our market's reporters taylor riggs. taylor, what is driving the rebound in particular today? taylor: markets are breathing a sigh of relief. we are waiting for the 480 $4 billion stimulus package to go in front of the house. there will be signs of the flattening of the health curve we have been talking about, as well as earnings. we're getting back some of the fundamentals, and oil rebounding after six straight days of losses, so mark is taking a sigh of relief. look at the stocks within the chipmakers. up almost 6%, having one of its best days, the biggest

outperformer. a lot of earnings are underway, so getting back to fundamentals of what is driving this market. two companies in that soft index i want to highlight, texas instruments, they are reporting better than quarterly results, and they said they would build up future inventory to make sure they are there to take advantage when demand comes back online. as well as intel. they are jumping after analysts raise their price target on the growth of data. this is ahead of their company results tomorrow. the start of a broad-based rally across the board, sort of a general risk on sentiment, but you are getting the sense be could get back to fundamentals is driving the tech stocks underneath the hood. taylor, 2020me, guidance, uber had done the same, but some analysts say lyft may be in a better position then over, which is interesting given uber also has uber eats muscle you would think perhaps not necessarily as exposed to the

drop of online demand. what is driving this theory that lyft may be in a better position? taylor: with all of that diversification as well as that business line diversification uber has eight analysts think they could weather the storm better than lyft. interestingly enough, i heard from an analyst who said the silver lining to all of this is lyft did not start to see the negative revenue trends start until march. wilbur noted on their call on march 19 they had already started to feel the weight -- uber noted on their call on march 19 they had already started to feel the negative weight. given that uber operates in north america, this could be a blessing in the sign -- in disguise saying they could have a cleaner recovery story. they don't have to worry about a lot of the problems in the rising infections you have seen over in some of the asian

countries and the re-infections, they could be poised here to have a little bit of a cleaner recovery story. a different take on some analysis coming into here about theng that diversity and geographic diversity that could have been a strength before all of this happened. emily: interesting. uber has been pushing that their diversity will ultimately help them in the long run. thank you for the update. i want to move on to a capital firm that is backed up biggest names from facebook to airbnb, to spacex. earlier today, i sat down with the partner who is well known for his contrarian views and asked him on how this pandemic is going to hit the economy, the tech economy more broadly. take a listen. measuring closer to years

and quarters. it may not be cheaper, but it is pronounced. there are a lot of layoffs. i think impacts will be very, very long. emily: several years? keith: i think the impact could be extreme the loan. for example, post 9/11, the travel industry in the united states, we had a peak. it took until may 2004 for travel to rebound back to its peak. that was almost three years. emily: you are a noted contrarian. we had been speaking to investors looking to lay off folks.

what is your advice for portfolio companies they may be contemplating this? keith: i don't think there was a one size fits all. companies have different balance sheets. delivery companies are growing, but most companies are impacted in a negative way. the general advice is to control your own destiny, meaning to breakeven or close to breakeven meaning lower your cost, raising your revenue, or some combination thereof. number two, have enough resources so that however long this takes, you don't have to raise money under pressure for a very long period of time. so there is more visibility into what is going on. by now, everyone is driving blind because no one can predict when the health crisis ends.

about big companies? should the government be bailing out big companies? keith: the answer varies. the companies make miscalculations and miss scenarios, i don't even government should be doling out money to anybody, but there are industries where the government is legally banning you from engaging in business peri--- in business. think about an sba down the street. if the government is prohibiting you from maintaining business, i don't think it is the business' fault, and the government should take responsibility. emily: [indiscernible] part, no. the most

i do think also the airlines kind of new that things like viruses and pandemics are likely. they identify these mysterious risks. i don't think the airlines really were able to focus -- were really able to forecast. i think it does matter what the company could reasonably plan for versus what the government has said what is the case. they are more sympathetic. there are different options here. again, i don't think there is

one simple answer. lyft, deeply, affected by the halt in, the halt in transportation. do you think -- what are your outlooks for these companies? how bad does it get for them? keith: i think there will be tremendous, long-term effect on travel, especially international the idea ofse pretty much one can travel almost anywhere around the globe. more of a mechanical instead of discretionary. era is over. just because i decide i want to go somewhere.

[indiscernible] -- will rebound faster. they are going to want to see other places. maybe they will be more health conscious. they will want to go to national parks. they will want to see relatives. emily: there has been speculation about the core of his being created in a lab, and you made some controversial statements on twitter about this, and you believe that it was likely it was created in a lab. the pentagon said the evidence is inconclusive. the world health organization said he came from animals. is that still your position? and why?

keith: my position is there is no doubt that one way or the other, this came from a lab. created is not exactly the right word. what actually happened is they were a going on in this lab, and by gross negligence for life, some of the experimental animals were sold into wet markets. that is technically against governmental policy, but chinese government policy has historically allowed control group animals to be sold back into the wet markets. [indiscernible] there is an account you can follow where they have evidence. capy: they are putting a were restaurants can pay food delivery services. you called that stupidity. we are seeing a trend now were

asking apartments to reduce rent. do you think that this is something that companies should grant or not? because i think we will see a wave of this over the next few months. keith: we will see a wave of renegotiations, and there is nothing wrong with renegotiations. demand have worked. there will be less people who need office space. it will increase the demand for the remote worker. landlords will have to adjust and a landlord may critically decide that i would rather you pay me less, but extend the contracts. and backve to sue you up see if there is any money

monetary negotiations, amazon set no, but renegotiations are always a good thing. but i rather you pay me $.50 on the dollar versus nothing? $.50 ontake the bankruptcy risk. crisisernment dictating is basically a term idea. supply and demand always works, and of the government mandates those, you will get less supply. let's talk about a company that does food delivery. the biggest headache for them is ashley getting the people to deliver the food. these people need to be paid real money. they're putting their health at risk to some extent and working while everyone else is at home. if the government cracks down on these companies, people will make less money. you have to raise prices to the

consumer directly. but if you raise prices, in means less supply, less people those people can afford it. it, theple can afford less people place orders and restaurants make less total dollars than they would have. governmente the interferes with supply and demand, your causing a crisis to the market. almost everybody with a brain believes that this works. it is an old policy from the 1940's to the 1970's that they have realized this is stupid. we are doing rent control over food. it makes no sense for rent control or for food. emily: keith rabois. coming up, we will talk to an online bank who found out they could get stimulus checks before

you can get them in the mail from the government. we will have the ceo from china next. we're standing by for the daily white house briefing scheduled to start a half hour from now. when that begins, we will take you to washington. this is bloomberg. ♪

♪ tens of millions of people now unemployed and many millions more than waiting for stimulus checks from the federal government. the online bank time has been running a pilot program to get checks to you as quickly then the government can mail them. joining us to discuss, the ceo, chris britt as well as sonali bostic. thanks to you. chris, how is the program going

on are you learning in terms of new accounts? hey, emily. thanks for having me bad. i appreciate it. but we decided to do, chime offers banking services for man's of americans. we believe that your bank account should be fast, free, easy. you want to be helpful, so we started taking aggressive action in terms of ppe program. alsoow program two, but the director consumer. when you receive notifications through the federal reserve's system, through the ach receiving your payments on the 16th of the month, when we received the initial notification as early as attempt of the month, five days early, we released those payments to our members. is wefect of that

provided early access to over $1.1 billion of stimulus payments before they actually arrived in accounts. in so, not surprising, we got a lot of love from many members who were excited about it. remember --cause we because of your member obsessed and we want to be helpful. the net result is we have seen not just a lot of social media, but also hundreds of thousands of sign-ups this past week. sonali: what kind of customers have been accessing this part of the stimulus? what do they need, and what else do they need from the government? chris: well, the first payment came through -- the governor was trying to be really aggressive in his initiative, so whatever routing and account number they had on file from tax returns, they essentially pushed through

payments for anyone who qualified. that is typically for people who make under $75,000. we saw quite a few customers who were eligible to receive these payments, and so, those of the first payment that came through, but we are also trying to see the physical paper checks are now starting to be received with donald's signature or name on it. seeing those being deposited into our accounts as well starting this week. emily: what is your big take away from these government programs? we know the government approved an additional $500 billion stimulus package and another $300 billion for small businesses. we can expect that money will evaporate pretty quickly seeing how fast the initial money went. you know, where do you think these government programs are succeeding, and where the falling short. -- falling short? chris: there is no question that

how aggressive the government is trying to do to get to money to consumers. this should be applauded. but it has brought to life the fact that mailing paper checks inpeople is so ridiculous 2020. you will probably see a continued push to facilitate all payments electronically. we are encouraging our members to sign-up for accounts, go to the irs website. received a not check, plug-in your routing number and back account into chime. you don't want to wait another 15 to 20 weeks to get a paper check. for a lot of people, it may take many more weeks before they received paper. we are doing a lot to promote that. we have a ton of campaigns going to get people excited. away $1 million

this month. if a chime member tweets the also more for people on the front line doing, you will be entered into a sweepstakes. we have seen interesting moves by big banks. wells fargo and citigroup causing overdraft fees. you build your business on the premise of doing a lot of things that big banks don't do. what has this entire crisis told you about the banking system that is not getting to consumers? what should be different? chris: the banking system is so heavily relying on seeds. everyone is doing their best in a difficult time. banks came out and said they have $10 billion in profits and whatto give out in loans is essentially no risk. the same on the consumer side. our core values is around being

human, meaning having your back and providing products that will help you in ways. the question is, why do chart overdraft fees in the first place? to take the members account negative for up to $500 and we don't charge a fee. there are ways to design services that could be way more aligned with consumer'' interests. chime ceo chris britt, thank you for joining us as well as sonali bostic. we will be following you to see how the delivery of the $1200 checks goes. more "bloomberg technology." we will be back after a quick break. this is bloomberg. ♪ ♪

♪ we are standing by for the daily white house briefing. as soon as that begins, we will take you there, scheduled to begin in 15 minutes. we will be looking for any clues on further progress on plans to reopen the economy. treasury secretary steven mnuchin has said he believes the economy will be almost fully reopen by august. meantime, there has been back and forth between house speaker nancy pelosi and leader mcconnell. pelosi saying she believes the next amount of stimulation be going to state and local government partly to mcconnell saying those governments should be working to bankruptcy instead. we will be following the back-and-forth there. also, we will be talking about sandal, the first virtual nfl draft begins tomorrow, but will it come off without a hitch or a hack? we will tell you about that next

car this is bloomberg. ♪

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[ whines ] can your internet do that? xfinity xfi can because it's... ...simple, easy, awesome. [ barking ] welcome back to "bloomberg technology." the first nfl draft will happen virtually starting tomorrow and will go on for the next three days. how will it change drafts in the future? everybody asking those questions. will it come off without a hitch? joining me now, fanduel ceo matt king. i know you have been preparing for this for a few weeks. you have added some new activities to make this exciting for fans. talk to us about how much activity you are expecting tomorrow, and what you are looking out for. the draft is going

to be a huge event this year. it is always a big event, but obviously this year it will be bigger given the fact that there are so few other sports on. increaseoking for an in sports betting, more than 10x playing an people fantasy game or betting on the draft, given the interest this year. emily: that said, because it is outline it means it might be more vulnerable to cyber security threats. how concerned are you that hackers could try to derail this any number of ways? matthew: hackers try to derail businesses every day. it is just something that you need to get used to. and so we look at it from the perspective of we know the nfl is doing everything they can to create a safe event that has full integrity. and it is something we are very used to in terms of managing potential cybersecurity issues. but the draft, it will be a big

headline event, but the reality is people are trying to do bad stuff every day and you just have to defend against it every day. emily: speaking of, this could have an impact on how drafts happen all year, and perhaps how drafts are performed over the longer-term. how are you thinking about that, in terms of how this goes over the next three days could last beyond the next three days? matthew: the reality is everybody in the sports world is trying to plan for every eventuality these days. you are testing the limits of what people are willing to do virtually. so i think you will see bettery, over time, a and better ability for people to produce entertaining events virtually. i think you will see i am sure growing pains in the first draft, but i think over time they will get better and better. but the reality is a lot of us are seeing spikes in the draft

themselves, whether people are in person for that happening or doing it virtually, i think the excitement stays the same. you recentlyme, said revenue from march 16 through april 12 was down just 8% year-over-year. some might have expected those numbers to be worse. what was making up for the shortfall? was it casinos? broadw: we have a really product sector. we operate the largest online horseracing business in the country, which has seen incredible engagement through a larger and larger number of people playing, as they seek out new forms of entertainment, and frankly, take things they typically do offline and try them for the first time online. years, willn 10 fanduel be making more money off of traditional sports betting, or casinos? how should we expect the revenue

stream to evolve? matthew: i think you will always see sports betting to be the biggest market out there. it's something where it has the broadest appeal, and most likely it will be available in more states than online casinos. in the states that have online casinos and sports betting they tend to be the same sized markets. then talk to us a little bit about how you believe moreshutdown will impact broadly across the gambling world? obviously we do not know what the new normal is going to be, when sense -- when some source of normalcy returns. but we have to imagine this will change business, and perhaps even the sporting world dramatically. matthew: i think you are right. i think we are just starting to see the effects of that. i think in terms of the m&a landscape, you will probably see a world where the strongest

balance sheets probably able to use that as an opportunity to acquire attractive assets. i think in terms of the gaming space in general, i think you will see a recognition of how important online is, both in sports betting and casino, to the long-term growth of the category. and i'll be something that i think both the casino operators take note of, but also state regulators. the reality is gaming is a huge tax driver and a lot of states, and in a world where physical casinos are not able to operate at full capacity for sustained period, you will both see consumer demand for online gaming expand, but also legislative interest in expand, because it is the right way to rebuild the tax base. emily: that was my next question. do you think the budgeting pressure will be more safe to

legalize sports betting? matthew: we think so. you look at the core thesis of why so many states have legalized sports betting, because the reality is it is a recognition that this is an activity that is being done illegally today in an unregulated way and an untaxed way. this is one of the few ways where states can material -- generate material revenue that improves consumer protection, and also is something that is seen as bringing something that people want to do and making it more readily available and available legally. when you look at online gaming, many of the same fact patterns are true, which is you have a lot of people who really enjoy casino games, and in a world where you are sheltering in place, they are going to look for ways to get better entertainment at home, which online gaming does. so we think you're going to see a lot of looking at this, because it is one of the easiest

places to go for material taxes in a way that consumers actually like and are interested in. emily: now, some people say that they believe election betting could be bigger than the super bowl. just two weeks ago you started taking election bets in west virginia, with them pulled them down about one hour later. what happened there, and how big an opportunity do you think this could be? matthew: i think, let's start with what happened there. obviously sports betting, online newng, they are all categories and things that are new to a lot of states. as with any embarking category, you have people like ourselves, and frankly, let the regulators, who are looking to always be innovative. and this was a case where we had environmentin an where we were trying to do something creative that had not been done, and the reality is

g enoughwas a bi opportunity that collectively it was approved too quickly. and so the decision was made to take a little bit longer to consider what was the right way to do this. and so, it is something that -- we think a long-term opportunity, but the reality is you need to walk before you run. so what we are focused on is just making sure you get the sports betting market up and running in a really attractive and safe way, and then we will look to expand the offering over time. we know globally that election betting is a big opportunity. i do not know if it will be bigger than the super bowl, per se, but i do think it is one whose time will come, but the time will be fewer -- further in the future. emily: i do want to ask you about some pending litigation. you are being sued by the families of some fantasy players who claim that you have been

favoring affectional players, and deceptively marketing to inexperienced players. obviously you have been fighting back on this. what is your response to some of these allegations? matthew: i think as you look at our products, we are very open about the way our products work. of,re very open about, kind how different prices pay out. and we are very focused on encouraging new players to play games where they have the highest likelihood of winning. so if you actually look at the underlying data, the claims made by some of these lawsuits are baseless. so, for the cases that have gone through the full court process, by and large we have prevailed because the facts that prevailed. on fortunate reality of any digital business these days, is that people will always look for ways to make a quick buck, even when the facts don't

support anything. emily: as you look out through the rest of the year, what are you planning on in terms of sports resuming, or not resuming, and how this pandemic will fundamentally change the way you do business? question,t is a great and obviously it is one that changes when the ground changes, so to speak. like sports teams themselves, we are planning on a number of different scenarios. everything from some sports returning in a limited fashion in the next 30 to 60 days, to longer term outcomes that may have sports not being conducted, for being conducted in a limited fashion for longer period. we do think sports will come back, we think sports will be one of the first things back. not just because when you look at sports, it is important to the overall cultural fabric of the country. and i think people in times like

this are going to look for things to unify us, and things that bring back some of the kind of core foundations of the life that they had come to expect. and we think sports plays a key role in that. period where sports are not available, we are looking to be an entertaining play for our users, and frankly be welcoming for people looking for a distraction. and when sports are back, we always want to be part of that moment in time, and something that helps amplify that and make it an even better experience for sports fans everywhere. emily: all right. matt king, ceo of fanduel. thank you so much for sharing your thoughts with us, and good luck as the draft kicks off tomorrow. coming up, we are going to be talking about netflix. a blockbuster quarter, adding 15 million new subscribers.

but is this as good as it gets? we will dig in. this is bloomberg. ♪

netflix adding a record number of subscribers, 15.8 million. but is that the best it is going to get for this year? i want to bring in tuna amobi.

do you think that is the best it will get for the next two quarters? tuna: 16 million i think is mind blowing. and it is really hard to see that momentum continuing, that illy given the fact think they have given guidance for 7.5 million for the second quarter, which i think looks conservative. going into these earnings we knew they would have a huge positive surprise, not least because of the benefits from the in-home confinement. this is something we are seeing across a lot of streaming platforms. so the trends are still intact. the question is how much of this 16 million is a potential pull forward of subscribers. i would argue that there is a very good chance they will

retain a significant amount of subscribers who are getting hooked. a lot of shows right now are capturing the zeitgeist. all in all, i think the trends are still favorable. the question of that is how much is priced in. but we are keeping our buy recommendation. netflix doesaid, not have anything in production right now, as most folks don't given the shutdowns across the country. how do you see netflix in position versus disney with disney plus, apple with apple tv, and amazon, and some of the other smaller streaming players? tuna: right. tohink netflix just happens be -- i do not want to say lock -- but their business model has allowed them to plan production without. ee see today most of -- they ar

pretty set with content slated launch0, because they shows continuously. 2021, they are pretty deep into postproduction. so i think about the shutdown of hollywood production, as much as they will be affected, the longer this opera continues, but relatively speaking to the other streamers i think they are in good shape, except for disney. ofy had been skewing a lot investment towards original comment -- content. they said they will license more if necessary just to for lefty pipeline. but i do not think -- just to fill up the pipeline. i do not think they have anything to worry about this year and perhaps early next year as well if the pandemic continues. emily: which of the streamers do have something to worry about? we were speaking with the former president of cnn yesterday, he believes that this pandemic will just accelerate a shift that was going to happen eventually, in

that you cannot have so many streaming players trying to play in the original content market. this will separate the good from the less good, and some of those folks would just have to settle on being distributors. tuna: there is no question that the streaming landscape is still fairly fragmented. we have seen how much this pandemic might accelerate that consolidation. what we see at this point is the data that we are getting from some of the art of the ins measurement firms, nielsen and so on, are pointing to a spike in in-home streaming, essentially based on the confinement. so based on this pandemic continuing, as ironic as it might sound, i think streaming platforms across the board are benefiting now. not so much for apple. of course they have a pretty light contents late. but netflix and disney i think

are sitting really pretty. when you think about the likes that just launched a few days ago and also hbo max, still about to launch next month, these guys are looking at the current situation and figuring that, as bad as this sounds, they have a very good opportunity to launch into captive homes. that being said, no question that as we think of the second half of next year, it could be a rollback impact. but for now, i think it has just been a very good time to have your content and have people discover and search, and hope that a lot of these consumers will stay on when things normalize. emily: do you believe that there's going to come a time when it will just feel like there is no new content? tuna: i am sorry? what content? emily: do you believe there will

september,maybe in where viewers feel like there is no new tom it -- new content? tuna: september might be too soon for that, to be honest with you. when we get to the end of the year we might worry a little bit about that. but the impact of that will vary tremendously. i think some of the newer upstarts, or those streamers who have relatively light pipelines, have much more to worry about than the likes of disney or netflix, for that matter, or even companies like warner media that might be forced to dig deeper into their library. so this really favors the companies that have a huge library of content. the ones i feel it will impact the most, of course those that depend on live sports offerings

and things of that nature. i think thatl, most consumers now are willing to subscribe to more than one, or a couple streaming platforms, and complementing that in many cases with pay-tv subscriptions, which remember, is still in a decline, and that decline might in fact accelerate. emily: all right. tuna amobi, thank you so much for sharing your thoughts with us. coming up we are going to be ducking out facebook taking its whatsapp -- with since they bought whatsapp. this is bloomberg. ♪ is is bloomberg. ♪

emily: facebook is making its biggest deal since whatsapp, investing $5.7 billion in a major indian telecom. i want to bring in bloomberg's

kurt wagner who covers facebook. kurt, is not a straightforward deal. explained to us what facebook is actually buying here, and what that means about their admission. -- ambition. kurt: usually what we see from mark zuckerberg is him spending a lot of money to read -- to acquire a company, which we have seen with instagram and whatsapp for $19 billion a few years ago. what is unique about this is he is not acquiring anybody. just taking a sizable stake in a company. markhat is unique is zuckerberg is usually someone who is in control of everything. here is a relationship he is not necessarily going to be able to control. what we have heard yesterday from the two sides is they see this as a strategic partnership because whatsapp is huge in india and jio has a lot of reach to indian small businesses and consumers. so you can imagine a world in

which whatsapp is able to extend its reach through the jio partnership and jio gets a nice investment from facebook, and the existing relationship with the world's largest social network. emily: explain the telecom part of this and how that might also give facebook some sort of advantage. the surface it seemed obvious to me, which is that if you are providing telecom services to people, you facebook,ably provide maybe for preinstall on a phone, or you could offer what is called zero rating, so you can maybe take away the data that you would usually have to use to use facebook and basically offer it for free. but what i am told is neither of those things are actually happening. they are not trying to create what they would call special

access to facebook through this partnership, which does make it a little more confusing to me. and what i think is that they actually have not quite established what this is going to look like. i think the biggest thing is e-commerceso owns an division called jiomart, and facebook is trying to get in with small businesses in india, so there is a lot they can probably learn from jio, and there are a lot of existing relationships jio has with businesses in india that facebook is hoping they can transport over to their platform. emily: interesting. certainly it is a story you will continue to follow. kurt wagner for us, thank you. we are still waiting for that white house briefing to begin. when it starts we will take you there. you can also turn -- tune into live go. it should begin any moment now. that does it for this edition of "bloomberg technology." this is bloomberg. ♪

>> good evening from bloomberg world headquarters. we are counting down to the major market open. i am shery ahn in new york. haidi: and i am haidi stroud-watts in sydney. welcome to "daybreak -- australia." here are our top stories. u.s. stocks halt a two day slide amid optimism for reopening the economy. steven mnuchin and sees a restart by the end of august. oil recovers from a 21 year low after two days of frantic selling,