emily: welcome to "lumbar technology." -- welcome to "bloomberg technology." markets mixed again. latestto digest the moves around the world in response to the coronavirus pandemic. pandemic. new york considering reopening

some things like construction and drive in movie theaters. we are seeing flareups in south korea as well as wuhan, the original epicenter of the coronavirus outbreak. i want to bring in taylor riggs. walk us through the day. again, tech boolean the rest of themarket -- tech buoying rest of the market. taylor: for a few weeks, tech has been the big outperform the dow and s&p are still lower. the nasdaq 100, the faang, all of those are the outperformance. bige are a few individual tech stocks leading those. amazon, a report that potentially they were in talks entertainment and zoom, the company we have got to know well. people think offices may not

open up until next year. ready to stay home through 2020. nvidia ended up about 3%. they hit a record high after a raising the price to $3.60 per share at needham. ,f course, on the data side increased demand for both public and private clouds. that is something that is driving that business. continuation of tech heavy stocks really are performing everything else. meantime, biotech. gilead treatments hitting hospitals now. what are analysts saying? taylor: the technology and health care sectors have really emerged in the past few years. the focus is we get to look to the pandemic for a potential vaccine, potential way to treat

this disease. remdesivir, drug, which has been approved. vialsre donating 600,000 to hospitals. total of about 1.5 million vials that they will be donating worldwide. new york state has been the epicenter of the pandemic here in the u.s. analysts thought the u.s. could receive up to 80% of the donations. so there was a little bit of a disappointment. gilead came out and said that they personally do not decide to the allocation. still, gilead has proven to be a company with strength here. biotech has become the forefront of the stock sentiment of where we are with this pandemic. chips a concern today

after reports that the trump administration is in talks with various chip companies about manufacturing more chips in the united states versus asia to improve reliance in the supply chain. taylor: this is a story about turnarounds. slowly, throughout the day, it started to inch up higher and higher. this pandemic has created concerns about the supply chain in asia. over the weekend, we did hear reports that they were looking at companies like intel, taiwan semiconductor, about making them open up plants in the u.s. negative territory, then closing in near positive territory, saying it might not be a thing

in the near term. steeple analysts said that the report is not surprising but they don't think any report will nearminent and there is no financial impact. analysts at citigroup said in expansion as possible for bringing manufacturing plants from those chipmakers in the u.s., but they really highlighted the time and resources that go in to building up a plan and scaling to the volume you see. near-term, they will not be a financial impact on these companies. that is when you see these companies turn positive and brushed off worries they had over the weekend. emily: thanks so much for breaking it down. i want to dig into some of these tech themes we have been covering. about in much to talk

the world of technology. chipt to start on this issue. reporting that they are in talks with various chip companies about moving production to the united states to reduce reliance on china. what is your take on this and what it would mean? scott: thanks for having us. , whatk it is fair to say we do at third bridge, talk to executives and industry experts about what is going on and what will go on in the world about what could influence investment and businesses. what is going on in terms of investment in the u.s. is a big question. yous not surprising that have a situation where the government we have is encouraging more companies

producing goods in the united states. disconnecting supply chains from overseas, china in particular. based on experts we have spoken with, the supply chain was the first and primary issue when the coronavirus started taking hold around the world. it is pretty obvious based on those conversations we have had that the supply chain is going to have to be reapplied. emily: looking at the supply chain to be evolved for years, maybe companies taking small steps to diversify, but really has not happened. if you look at a company like apple, which has maintained the --k of its supply chain

apple ceo tim cook said the supply chain remains a strong and not disrupted, i wonder how easy it will be to convince these companies. it is obviously going to take many years to do so. i think it is a fair point. it is something that has been discussed. those people know the sectors and industries fairly well. world hasavirus proven to be a pretty significant operating risk for a lot of companies around the world. push tothat additional bring production increasingly , there is nots.

just the greater notion of doing this but also the greater will that has not existed in the past. emily: let's talk about these broader work from home trends. obviously, technology is enabling a lot of this. we know that some tech companies will see a boost. what are the trends that you are zeroing in on? scott: i think that is kind of the key question. trends are of these going to continue well into the future? i think a lot of folks are thinking about digital transformation, shift to cloud platforms, remote access, collaboration tools, video meetings and video games, which i think was mentioned in the prior conversation.

noteworthy, we have spoken to a lot of experts when it comes to zoom, microsoft, as it pertains to slack. obvious, when you , microsofte indicating that they will roll out teams for individual and family use. morewill become an even competitive case. benefits for users. been increasingly .nvesting this is something we have been talking to folks about for the last number of months.

another area we have been digitalon is kind of advertising. we have talked with many experts. the one recurring theme is that advertisers, if and when they are spending, it is almost like back to basics. they are recommitting to everything from google search to facebook, facebook remarketing and retargeting efforts. they are not necessarily as lessned to experiment with tried-and-true platforms. twitter is perhaps more vulnerable. another topic that i think is worth mentioning is the notion that we arethe fact

seeing greater videogame consumption, but also the fact that there is a lot of engagement in terms of users, and the revenues are flowing therefrom. on the other hand, we are also seeing development uncertainties, where you have teams around the world where they have to put out games where there is demand. it is the name of the game, n intended, iu guess, and a lot of these categories. emily: coming up, elon musk's battle with the california government. threatening to move tesla headquarters out of california. this is bloomberg. ♪

>> go ahead. emily: we are listening to president from speaking at the rose garden. this of course after vice president mike pence's aide and press secretary tested positive for the coronavirus last week. the white house has now ordered staffers to wear masks. the president has said he has not seen the vice president since the quarantine period, he is not aware of any additional staffers testing positive. he says he has only talked by phone with the vice president during this isolation. he said he would consider mandating tests in nursing homes. of course, we know that is where

a number of the most severe outbreaks of the coronavirus have been across the country and around the world. we are going to continue to listen in to this exchange. but we are going to move on right now to tesla and elon musk. elon musk battling it out with california authorities and threatening to move tesla out of the state of california as a shelter-in-place continues. alameda county's sheriff has told tesla they cannot yet reopen. on another round of tweets from elon musk over the weekend, threatening or perhaps vowing to move the country out of the state. tell us what the latest is. >> the latest is that musk is tweeting again this afternoon that he is going to be on the production line today, the company will be operating today

in violation of the alameda county health department's orders. and if they come to arrest anyone, they will arrest him. this is really ratcheting up the pressure on the county, which government officials have basically been trying to deal with officials for weeks now. you have one of the largest and most prominent employers in the county hopefully defying an order that most others are following to the letter. it is quite the showdown and, you know, it is never a dull moment. but the speed with which this new cycle has accelerated today has been pretty profound. "this elon musk tweeting, is the final straw. tesla will move to nevada immediately. if we even retain fremont manufacturing at all, it will

depend on how tesla is treated in the future. tesla is the last carmaker in california." this, from alameda county. "the plan to establish safety while protecting the health and getting for the people who travel to and from the factory." a more levelheaded, i suppose, response or comment from the alameda county officials. what would it take for elon musk to really move manufacturing out of the state of california? do you think this is something he will follow through on? dana: it could be pretty hard to do that. tesla moving third quarter's from palo alto to something like texas, for example. he is very fond of the state. i could see the moving

headquarters. but, the fremont plant, tesla has poured billions of dollars into getting that plant up and running. they have upgraded the paint shop. to just sort of pull the plug on an auto plant and think that you can just get a new one in a new state without a lot of capex spending and without a lot of subsidies, it takes a lot of time. who knows. he is frustrated with california government, he is using this as a threat. now he is openly defying the county. i am not sure what his endgame is here. the response from california politicians has been interesting. justtory is pretty hard to pull the plug on. there are a lot of supply chain issues, employee training. don't forget, california has supported tesla for years,

longer. the state has been very pro ev. there are all kinds of tax breaks on manufacturing equipment. to kind of re-create that package in another state would be difficult. emily: i know you are continuing to follow this. the situation changes by the minute. dana hull, thanks so much. coming up, can the trump ministration force chip companies to start producing chips in the united states? ♪

the trump administration is trying to get semiconductors to start producing chips in the united states rather than

relying on the asian supply chain. here to discuss that and the broader state of the chip industry, john newberg, ceo of the semiconductor industry association. what is your reaction to this report that the trump administration is in talks with various chip companies about moving production to the united states? very first of all, encouraged that the government is moving in this direction. let me clarify, we already produce chips in many states in the u.s. of companies that manufacture, about half of that is done here. the broader picture, the global picture, about 12% of the world's semiconductor manufacturing happens in the u.s., and that percentage is probably going down. most of it happens in asia. the supply chain is very

internationalized. is it possible that one country could become so self-sufficient and produce all that it takes to make a single chip in the united states? john: i don't think that is anyone's objective. you are absolutely right, the semiconductor industry is probably the most global in terms of supply chains. we get our efficiencies because of those supply chains. ishink the focus right now to bulk up the amount of semiconductor manufacturing we do here. focus is that.he about talking

semiconductors, do you get the sense they are listening and what it would take to make these dramatic moves? john: one of the big problems over the years has been foreign governments. they have put together very impressive incentives for semiconductor manufacturing. in the u.s., the way we work here is the states create these incentives. there is no way the states could compete against a foreign government. it has been a big imbalance. the federal government is recognizing that it is time to move more aggressively to make investments in our industry. create morewho will manufacturing here, anybody who can do that is a good thing for the entire industry.

a story we will continue to follow. ceo of the semiconductor industry association, john neuffer, thank you. coming up, we will be talking about the housing market and some brutal honesty from a ceo about how he could bp pay his own employees at risk in his response -- he could be putting his own employees at risk his response and what he is doing now. this is bloomberg. ♪ these days staying connected is more important than ever.

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emily: welcome back. i'm emily chang. we knew that we have been talking ourselves out of a reaction for too long and that may have put employees at risk, a shutdown was only a matter of time. those are some of the frank words detailing how the company has responded to the pandemic and not always in the most timely of ways. these are the first of three entries in a diary that will be rolling out and started going online today. i spoke with him about how he has navigated this crisis, with layoffs of employees and more.

>> of what celebrate the team that came together. so when did decisions we made that turned out turne to be good ones. i was not interested in raising capital because i thought we could find a way through. our cfo and chief product officer and different executives at different moments stood up to me and said you are making a mistake. if we didn't have that culture of consent, the company would have been screwed up. emily: you talk about the moment seattledenly demand in and homebuyers disappear. you say there's a point where you have 100 million unsold houses on the books and 1000 idle employees. obviously, things have changed, but how different is now from that moment when you realized that? >> what's changed is we have had four straight weeks of

increasing demand. it has been a very volatile time almost all through march. it was an express elevator to hell going down. in april, week after week, demand is coming back. buyers are out in force, but nobody wants to sell their home. it is hard to say what is going to happen in the real estate market, but what's hard for us, because we decided to let 1000 people go on furlough in the beginning of april. as soon as we did, demand started coming back. a good week after that, and then another good week, and then another good week. we have brought back about 250 people out of 1000 and plenty do more than a few weeks. emily: you are having a lot of success with the virtual tours, which you mentioned earlier was something you opposed. talk to us about what is working, what is not working, what you have learned and what might last beyond the pandemic. >> people are previewing almost

every home online. you are still going to see the property you end up living in for the next 20 years in person, but we can write the contract so we agree on terms. we can agree on a price and then the owner lets the buyer into the home. it is easy to see the property without putting anyone at risk. experience, that creating three-dimensional scans was something that involved a team. they put their neck on the line and said this will work. we tried it a few years ago and it didn't work. sometimes the idea that you tried too early that you become viscerally opposed to as a result is the best idea. in this case, it saved our bacon. it kept this company going over the past eight weeks. emily: in my own neighborhood, there is a house down the street that has 23 disclosures for one home.

what sort of signals are you seeing about demand that might give us some indication about what the housing market looks like over the next six months? >> i have been through this before in 2008. inventory was piling up month after month and prices were only going in one direction which was down. now in april, the inventory is actually down 25%. there are not enough homes to buy. homebuying demand, even after you adjust for seasonality. the issue is buyers see this as a sale, an opportunity to get assets at a discount. selelrlers are not ready to list those assets. we are going to have more bidding wars unless homes come into the market soon. emily: what does that mean for pricing? >> prices are stable, if not up. it feels crazy to say that they can continue to go up, but we are about to run out of homes to buy. we are near rock-bottom levels of inventory.

there was not enough inventory in the market even before the pandemic started. can't build houses, zoning laws are screwed up, all sorts of stuff. if you had to that that nobody wants to sell a home unless they absolutely have to, you see the mother of all inventory crunches in our future. emily: working from home is creating these sort of massive corporate and potentially cultural shifts that may live on long after this. there's talk about reshaping the workplace, reshaping cities. maybe it does not matter where , school is not in session and everything is remote. how does that impact the housing market? >> it is a seismic shift. if you compare the traffic or list things in a city over one million, to traffic of listings of populations under 50,000

towns, the towns are twice as much traffic right now. it is a trend that happened before the pandemic because they're such an affordability crisis. but the pandemic has put an exclamation point. if you can work from home and have a job that is fruitful, why would you pay to live in not in view -- in mountain view? a lot of people are looking at other places where there is homes are more affordable. we have learned as employers, people work hard from home and we are glad to have them on board. emily: initially, there was this discussion about who would be the first to return to work. now now it seems to be a race to be the last to return to work. google has already told employers they can work from home through the end of the year, same with facebook. are we going to see more of that? is that something you are considering as a ceo? i'm curious just how deep this trend will persist.

>> we're in no rush. why would we ask people to come back if they are uncomfortable being in a room with one another? i personally am ready. my kids are driving me crazy. i'm probably driving them crazy. but i think most people just feel really wary of being in a close space with their colleagues. int might be all here. we just don't feel the need to make into decisions until we have to. the reason i feel that way is because there are so many decisions. every day, we have been making one decision after another. this is a decision we don't have to make right now so i would we? emily: what about commercial real estate? we have seen mass layoffs at airbnb, uber, lyft. laying off people means you won't have as much space. will we see a huge contraction in the commercial real estate market? >> long-term, we have signed

five or 10 year leases. when you call and say nobody is in the space, give me a break, you find out from landlords they are struggling too. wework was obviously having trouble before this. so much thatact commercial real estate would be in high demand for 10, 20 years. the undisclosed risk in that business. not many people recognize it. commercial real estate is going to be in a pickle for a long time to come. redfin there. of the coronavirus has highlighted some who cannot work from home. who continue to want to work from home and who wants the economy to reopen. we will discuss that and more with the survey monkey ceo. that is next. ♪

as more countries and u.s. states continue to ease their lockdown, the question keeps on being asked is it too soon? surveymonkey has been surveying millions of americans about their feelings about the economy reopening and the continuing health crisis. joining me now is ceo zander lurie. you have surveyed more than half a million u.s. adults since mid february. talk to us about what they are telling you in terms of their feelings about the answer to that question. is it too soon or not? zander: thanks for having me on. we have been in the market talking to tenss of thousands

of people in the last three months. we saw a spike in anxiety. peaked in mid-to-late march. we have seen a tapering off of folks who are worried about the global economy, worried about their own family health. on your specific question, 63% of american adults tell us they are more worried about businesses opening too soon and getting back sooner. as you would imagine, it is highly partisan. we have been segmenting the data by men and women, black and white. different industry workers. 85% of democrats are worried we are getting back to work too soon. 50% of republicans think we need to get back to work sooner. you can see the politics in america layer into the health crisis. emily: where are you seeing some of the biggest shifts? some of the things that stood out for me for the data you manyded ms. that, iis that, in

ways, opinions are not actually changing. what will? zander: i think what's going on is that corporate leaders are going to have to step up and make some bold movees in terms of how we are getting back to work. if you are waiting for the government policy, and sadly we are going to have to lean on our organizational leaders, this is what we do. our products have never been more relevant because we are enabling leaders from companies, nonprofits, government bodies to solicit the kinds of things they need from their stakeholders to make the right decision. for the first time, leaders are thinking about how are we going to operate elevators? public bathrooms or a big concern. everybody wants people to be productive. we have to do it safely. the best way to do it is to

listen to your stakeholders. that is what our products do. emily: companies as big as google and facebook have told their employees there can expect a work from home through the end of the year. instead of there being a race to get back to work first, there is a race to be last. i wonder, there was so much concern about under reacting, but now could we be overreacting when having these discussions? zander: google and facebook and surveymonkey are incredibly fortunate we don't manufacture anything in a plant or have a a retail storefront. i have sympathy for companies that work in factories or depend on store traffic. who are seeing this massive separation in america. what was going to happen over the next five or six years happening over the next five or 10 months. you are seeing a lot of engagement around products that

help people work from home productively. incredible beneficiaries to that. companies don't have to get to work can take their time and be a little bit more thoughtful about policies relative to other companies that need to stay in business and get back to work this summer. emily: for a company like yours, how are you planning to return to work? are you even talking about it yet? do you think that come 2021, you are going to be more comfortable with a large chunk of your workforce working from home going forward? zander: this is a massive seachange in the work world unlike anything we have seen before. the longer we are in an environment where you can work productive from home, and we are shipping as many lines of code, zoom minutes, time on slack, sales calls -- the company is thriving. people are eagleer to get back

to work, especially with kids in the house. we know people want to get back to work, but we have to do it in a different way. we are trying to find better returns. there was a big story going into the pandemic that was the u.s. presidential election and suddenly that take a backseat to this gigantic health and economic crisis. you are continuing to look at the data. obviously, you see the continuing divide along party lines. are you seeing anything interesting that would lead you one way or another on how this presidential election might play out given that president trump has, like it or not, has been the person responding to this? and many people can agree with his approach or disagree with his approach, but i wonder what that means for his odds come

november? zander: the thing i found so striking was the political divide in terms of the coronavirus data and going back to work data. how tightly aligned with political status. putting that aside, we saw a big bump in the approval rates of president trump in the early days of the crisis. those have subsided. usc in the approval ratings go back to where they were precrisis. huge support from republicans and terrible support from democrats. it's may. this election is not until november. push a lot ofrump the leadership about getting back to normalcy. we're seeing the states step up and we are seeing government bodies stepping up. how that plays into the election, we will keep asking questions. i'm glad to share those with you. emily: speaking of time on the

clock, you have been in silicon valley for a long time. i'm curious how hard do you think this will hit the tech economy? we have seen huge chunks of companies getting laid off. 17% at lyft., this is certainly unlike anything silicon valley has never experienced before. what does it look like on the others? zander: i think the global economy and the shrapnel in the u.s. economy -- no business is immune from that. unless you have a specific product like zoom that is tailor-made to help during this crisis, no company is immune from 30 million people being out of work. we know it is hitting minority communities worse than the public at large. every technology company is going to have to react to this. agility is the new superpower. we continue to put software products out there to help

companies communicate with their stakeholders, be responsive. your marketing is going to change, your pricing. really how you think about your teams getting back to work and serving your customers is going to change. the layoffs have been terrible and we feel for the economic hardships that so many people are feeling. crisis comes opportunity. there are plenty of several linings about how people are adapting to changing their businesses. we have seen adaptability by companies and figuring out new ways to serve their customers. the longer this crisis goes on, the more we will have to come up with innovation. emily: zander lurie, ceo of surveymonkey, thank you so much for stopping by. as we've been speaking, we have been getting headlines from an interview bloomberg news is doing with the director of national institutes of health, who just said likely we will need more than one vaccine for

covid-19 and different groups of people may need entirely different vaccines. certainly interesting and potentially sobering news. we will continue to follow headlines from that conversation which has been happening while we were speaking. coming up, we will be talking about amc and movies. amc shares soar after reports amazon might be interested in a takeover. we will discuss next. this is bloomberg. ♪

emily: headlines coming in on draft kings. george soros has taken a stake in the sports betting company. one of several big-name investors to receive shares of draftkings through a deal that took a public last month. we will continue to follow that story. continuing entertainment, shares of amc shares skyrocketing after

the report from the daily mail said amazon had been considering a takeover. elly frome now is k l.a. who has been following the story. this is an unverified report so why did shares responded so dramatically today? kelly: thanks so much. that is very good to point out to look at this with a good degree of skepticism. i think people are really just hungry for information on what's going to happen with these theaters. people are probably starting to think something's got to change here. the business model is under an incredible amount of pressure. even before coronavirus started because of competing entertainment sources on people's divisive. coronavirus, they are completely shut and these businesses tend to have a lot of debt.

people are wondering what is the way out? this report today offered an answer to that, although i am not sure that really is the answer. that is why people were reacting so strongly to it. emily: what did you make then -- amazon here, which has its amazon prime video service, but is still a much smaller player in the business if you compare them to netflix or disney? amazon, theyk for do release movies but i think &a wouldr them, a big m need to benefit the e-commerce business. i am not sure how buying amc would do that. they occasionally release movies into theaters, which they have to do if they want to be considered for awards. but for the most part, they are releasing their films and

television shows online. that has been pretty well. amc is a very physical, capital-intensive business. like i said, the business model is under so much pressure so am not sure why amazon would really want to take on the debt and difficulty that would go along with owning a big physical theater chain right now. emily: meantime, you have disney reopening its shanghai theme park in china today. obviously in a very different world, what do we know about how that went and what this means for disney? i know this is a small part of the business but it is a symbolic move. kelly: i think that is a good way to think about it. it is a very important test. this is the first kind of -- first opportunity to see how people are going to react to the massey to gather ien

again since this all started. there were some lines today up to 30 minutes. patrons are still having to adhere to all the social distancing rules. they still need to stay six feet apart and wear a mask. the rides are half-empty. it is a changed experience but given how disney said it lost over $1 billion in profit that was going to be there and wasn't because of all the social gathering restrictions, this is going to be an important as of a test case for disney to see what it is like for them going forward. emily: we will continue to watch how it goes at the park over the next few days. kelly, thank you so much for joining us. thank you all for watching this edition of bloomberg technology. bloomberg daybreak australia is next. i'm emily chang. ♪

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♪ very good morning. i'm haidi stroud-watts alongside shery ahn. these are your top stories. new trade tensions. china may terminate the phase one deal or demand new terms. president says he's not interested. coronavirus cases continues to rise with the new infections in the chinese city where it was first reported. new york state will reopen partially this week. russia sees cases.