>> brenda, final trade >> paypal. just reported an excellent quarter. the month of april was off the charts in terms of total number of users added this is a company that's really benefiting >> fireeye, may 11 call. >> josh brown? >> slack, 230. >> all right, jon fortt picks up our breaking news coverage now >> thank you, scott. welcome to "the exchange." i am jon fortt a nice rally going on wall street today, although it has faded a bit as investors get optimistic about the reopening of the economy and some better than expected earnings nasdaq is now break-even, a little bit positive for the year the dow is back, right around, above 24,000 all of this bullishness coming despite the latest figures showing that 3.1 million americans filed for unemployment last week. the seven-week total is now 33.5 million. crude also giving the markets a lift with oil now up about 26%

this week. let's get a deeper dive into today's rally with bob pisani. bob? >> hello, jon. good to see you. this is a very powerful rally. a six-to-one advancing to declining stocks s&p broadly advancing. nasdaqs over 9,000 just want to show you the s&p and what's been going on here. we've had a lot of trouble getting over 2,900 it's only been there twice since early march. we're knocking on the door again. if we can get decisively over that, that will be a nice little technical resistance level and emotional resistance level for the market it's nice to see banks moving, energy moving, industrials, techs also leading that's important whey say broad, the travel and leisure stocks are all doing a little bit better today. not necessarily a lot of big headlines. yeah, the china trade data was better, but you're looking at carnival look at these stocks on the upside, marriott, nice moves up there. in addition to that, we've got

nasdaq 9,000, so all of the megacap names up these have been the big moves, recently, of course. all of these stocks are up 4 to 5% this week amazon has been a little less. finally, guys, just want to note, vix is now on the verge of going below 30 we're sitting right at it. this has not happened in a long, long time and i think you'll see people commenting on that, just sitting right there at that 30 level right now. >> bob, that's exactly what i wanted to ask you about. if i'm reading this correctly, vix has been in the 30s for a whole week we haven't had a number of levels strung together since early march. even if it doesn't drop into the 20s. if it stays at about this level, what does that mean about what the market is expecting? >> remember, we were above 80 at the end of march and we have remained in the 50s and mid-40s for weeks on end and a lot of people were just saying, this may be where we're at for a while

but in the last few weeks, not just the stimulus, but the reopening hopes, which is the added thing on top of the stimulus that's been kicking in, those hopes have really helped push down a lot of the anxiety the debate, of course, is whether pushing that anxiety down has been justified and whether we're going to get other kinds of issues and reinfections and things like that but for the moment, the reopening hopes is what's pushing that anxiety level down and pushing the vix down john >> hoping that there aren't other big shoes to drop, anyway. thank you, bob stocks rallying on positive news on the drug front and an optimism that the economy is going to improve as states start to reopen. former goldman sachs ceo lloyd blankfein explaining why he supports this move earlier on "squawk box. >> i think the right thing to do is to kind of push in the direction of opening up the economy. now, some people express this as dollars versus health. but that's not fair. it's really health versus

health because, you know, poverty, gdp is also a health issue life expectancy goes down if there is -- you know, if we have a bad economy, if gdp drops by a lot. >> all right how should investors position themselves as the markets and the economy show signs of life joining me now are charlie br brinzinskoi and scott kimball. guys, good afternoon good to see you, charlie and to hear you soon, scott charlie, i know that you guys at aerial notoriously focus on value. you're breaking up the way you're looking at companies based on businesses. unaffected, companies with head winds and those to stay away from i'm particularly wondering about those in the middle where you might see value. what does value mean to you in this kind of an environment? >> yeah, everybody talking about how the market is only down 11% or whatever. if you bifurcate the market in

terms of value versus growth, value stocks are down 20% on the year it's been brutal so there's lots of opportunity in value we don't think the rally has been excessive so there are stocks and companies that clearly have significant headwinds here, but we think some of them are temporary. there are lots of companies that don't have a headwind. we own smuckers and they're selling more peanut butter and more folgers than they've ever sold that stock is not attractive in our opinion. what is attractive there names with a short-term headwind that are going to be fine in the long run. there are lots of examples of this, but we love madison square garden entertainment, which owns m madison square garden. but it's going to come back. that's a great stock, msge is the ticker zimmer biomet, it makes hips and knees. nobody is doing elective surgery right now, but people will need hips and knees again when we get through and that stock is very attractive >> you also have viacom cbs

here and maybe i group that in a way together with msg. because eventually, in the long run, they're both looking at advertising as a big part of what brings them back. but we don't know how quicklily advertising is going dom back. you say these are businesses that are going to be okay. okay over what term? what kind of risk are you taking on >> yeah, so that's a great question there are some that i think are going to snap back pretty quickly, again, hip and knees. zimmer would be an example of that i think msg probably takes a little longer, because we're going to have some fanless sports events in the short-term. but i think people like viacom, cbs, they're producing movies. they'll have a march madness next year which they didn't have this year. they're going to have a masters, they're going to have political spending, which has been depressed. so you're seeing viacom/cbs today is i think up like 13%, as they have showed very strong resilient earnings today that business is going to be fine in the long run >> all right, scott.

i want to talk to you about bonds, about debt. it seems like for especially bond funds, there's some unusual risk here. ratings are changing how are you assessing exactly what investors should be in, what they should stay away from, and how much they should trust the categories that have been set on these funds up to this point? >> thank you for having me and i appreciate the question. and i apologize for the lack of video. i had a technical glitch there down the home stretch. but wanted to go ahead and take that question head-on and share with you kind of our philosophy throughout bmo global management you mentioned the corporate bond fund and the way we are tackling credit within what's been a very long and productive credit cycle, but when that had a shock environment in march that tested and brought forth a lot of these concerns about what exactly can investors do or whether they're in mutual funds or buying bonds directly on their own to assess

creditworthiness we believe that this is a market where bottom up fundamental analysis and taking an independent view on the trajectory of a corporate credit is essential rating agencies do the best job they can, but they have a very large bandwidth and many times are very constrained to some qualitative factors that they can't deviate from >> so don't trust the ratings during this period >> i wouldn't say don't trust the ratings, but understand there can be a significant lab to capture what has been a very fast-moving market so you have to take a fundamental view on a sector that might have a lot of headwinds to it for example in the energy space and take a very nuanced look at the independent valuations of the company's assets, as well as the way in which they're exposed to commodity prices and sort of use that as an overlay to the ratings, not just using the ratings in and of itself >> got it, ceo that's important with interest rates being where they are, with companies being in trouble, as they are and trying to assess

that in realrealtime, it's tough charlie, scott, thank you. >> thanks for having us. >> now, for analysts looking for some idea of where consumers will want to travel again. >> while hilton saw a sharp decline in profits due to the pandemics, investors remain encouraged with the rory they're seeing, with occupancy rebounding to above 50% to a low of 9% in early february. ceo of hilton was much more cautious, though, on a recovery in the u.s. emphasizing the need for more testing and for the mortality rate to drop in order for citizens to feel more comfortable traveling again. he also says the rebound in travel will come in waves. first, a pickup in regional travel by car, and then customers slowly getting black on a plane for cross-country travel he says a vaccine will be a game changer. now, the key numbers to watch

tonight from online travel operators, booking holdings, and trip adviser will be on the preservation of cash and what steps both companies are taking to address liquidity concerns after expedia signed a deal with private equity firms just two weeks ago. john >> seema, thank you. and don't miss norwegian cruise line ceo on "mad money" with jim cramer tonight at 6:00 p.m. eastern. shares of moderna surging after the fda approved the company's coronavirus vaccine candidate for a phase ii trial let's bring in meg terrell for the very latest. meg? >> hi, john. this is moving at historic speeds moderna says it's got the go ahead to start that mid-stage study of their potential covid-19 vaccine, and at the same time, they are finalizing the protocol for the phase iii trial, which they now expect could begin in early summer 2020 and if all of this goes well, they say they could have potential regulatory approval as early as next year what this phase ii trial is

going to do is to enroll up to 600 people in two different age groups half will be ages 18 to 55 and half will be over 55 and participants will be followed for 12 months but we're not going to be waiting those 12 months for the results and for moderna potentially to be moving forward in clinical trials this timeline, you can see going back to january when they first sequenced the vaccine and they had the vaccine sequence finalized, just until now, it's been only a few months these are some of the fastest timelines we've ever seen in history. but there are questions, of course, whether this will end up working and giving us a successful vaccine >> yeah, meg i'm wondering about the timeline specifically the president talked a few days ago about possibly having a vaccine as soon as this year then he seemed to kind of walk that back. moderna's timeline seems to be, i think, on sale as soon as 2021 is moderna being skrvconservatie is the president being overly

optimistic what do the facts say? >> i think everyone would say all of these timelines are very optimistic they count on this work being done at speeds we've never seen before in history. everything going right and essentially going right the first time sop it is possible we will see these vaccines in these timelines. and as for people talking about the fall, some people are saying they could be used on an emergency basis in high-risk groups like health care workers. so there's a lot of shots on goal and a lot of hope that one or more would work, but we would be shattering historic records if we actually got a vaccine that fast. >> let's hope that happens, but good to have the details behind what we should really expect meg terrell, thank you coming up, the ride-sharing companies are soaring today, as lyft's earnings were not as bad as expected. is this a positive sign for uber's earnings tonight? plus, layoffs have hit silicon valley with more than 17,000

start-up jobs cut so far we'll look at how bad clditou get and who is more vulnerable "the exchange" is back after this (soft music) - [female vo] restaurants are facing a crisis. and they're counting on your takeout and delivery orders to make it through. grubhub. together we can help save the restaurants we love.

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visit xfinity.com/prepare. welcome back uber announcing today it is leading a $170 million investment round in scooter company lyme as the ride sharing industry remains under a lot of pressure due to the pandemic deirdre bosa had a chance to speak exclusively with lyme's ceo just a short moment ago and

joins me now with highlights deirdre? >> it isn't just ride sharing, micromobility, ebikes and scooters, that market has been hit very hard during the pandemic jump shut down 99% of its operations in march and has laid off about 30% of its staff since the year began as you mentioned, i did have a chance to talk to new ceo weng tin and he said he is able to bring new business back online >> over the last four weeks, we started to relaunch in a more limited way what we called essential services we're seeing strong demand from riders who used to rely on us, but a host of new riders that probably never considered micromobility. >> that echoed comments we heard from lyft's team it is seeing some business come

back, al be be it at a very low base he also acknowledged that lime's valuation took a hit in this deal >> we aren't going through the details, but it is a down 'round and these are really unprecedented time and lime is not the only company that is going through a cut to its valuation. but the more important thing, the more important thing is that this round of financing is going to give us sufficient capital to withstand the downturn and to come back stronger than ever >> so what does uber get out of this deal? well, it actually gets to give up its micromobility, its scooter business to lime in the process. so essentially getting a quickly growing, but very expensive business off its balance sheet, as it tries to show investors that it is cutting costs of course, uber reports tonight and investors will be looking at other investments, too, much larger ones. remember that uber has stiks in

ridesharing firms around the world. >> all right, deirdre. efficiencies stick around and let's talk some more about the sharing economy and ride sharing giants with dan. i can't figure out whether ride sharing is going to come out of this strong, stronger -- it's better than riding public transportation but then again, you're getting into the car with somebody you don't know and you don't know who was in it before with the scooters, are people really going to want to touch this scooter that hasn't been sanitized, that somebody else was touching before? but it's better than touching a subway poll? i don't know how are investors thinking through what to expect >> i will admit, i'm kind of befuddled by the investors right now. how lyft shares are up big on their earnings yesterday and uber shares are up kind of on the coattails of that with the assumption that uber will show better than expected q1 numbers. it boggles my mind it truly does. absolutely, ride hailing could become an alternative for some folks who don't want to be on a subway or on a public bus.

but if that's the case if people don't want to be using mas transit, that means we are still in a pre-vaccine or a pre-therapeutic stage. so i'm not so sure that that means that we are going to have the kind of return to normal, the return to commuting, the return to people going to restaurants and bars and the other reasons they use uber and lyft that we had before. it's still, to me, a very, very dour outlook for these companies right now. >> and. >> deirdre, how much do you think the companies themselves even know about how demand is going to return? we've seen both of them make some pretty significant cuts i'm talking uber and lyft ahead of things opening back up. i want seems like this move with lyme is sort of a consolidation, perhaps even part of the plan to lay off. they're not investing as much in their own scooter business, so they're able to pick up somebody else's how do you read it >> theshort answer is that the have no idea what this is going to look like on the other side nobody does. so they're scrambling to cut costs. remember that even in the best

of times, investors weren't really buying into these business models. like dan, i would agree with him. i'm sort of mind and remember it's coming off a very low base as of yesterday. shares were down 40% year-to-date remember, this company ipo'd in the $70 range with a valuation of about $16 billion, i believe. they have come down a long way perhaps there's the argument to get in them, if you think they're at least going to survive in some form but i think what's really interesting with this uber move. remember when uber went public, it wanted to be the amazon of platform getting micromobility off its balance sheet is another indication of this and they're becoming more and more dependent on ride sharing but that is also an expensive one that's not making any money. >> you mentioned food delivery and dan, i wonder about -- let's

expand this outside of just ride sharing. food delivery is possible popular right now for obvious reasons. but at the same time, we were really looking forward to airbnb's ipo as being some indicator of the ipo market, how things are trending. that takes on an entirely different meaning now. is door dash more important? >> it may be definitely more than airbnb. it's hard to imagine that airbnb doesn't go public. it's a macro problem, but they simply don't have a business right now. doordash matters we saw the grub hub numbers. those were not terribly good and i understand door dash would argue they're not grub hub and vice versa even uber eats it's true these things have become more important and more valuable, but there have been increased disputes between some of these companies and the restaurants. that's certainly happened. also, there's a lot of restaurants they used to work with that simply aren't open at all right now. aren't doing take out, because

they're just losing more by doing so, if they were also a dine-in restaurant door d.a.s.ash matters a lot. it's hard for me to imagine they will go public anytime soon, even for them with the increased demand, their model is not right now what they expected it to be, just in terms of the way they have to operate, in terms of the extra sanitation >> okay, dan, "x" food unless you're instacart delivering peanut butter or door dash delivering takeout, is the sharing economy dead >> it's definitely dead. we would have talked uber and lyft and probably wouldn't have talked about instacart they're the one that has become truly vital for lots of americans to be able to eat. more so than the other ones have but look, the whole idea of the sharing economy was, i don't need to own something. i can borrow yours or borrow -- or use somebody i don't know that's the exactly opposite of how all of us are being told to

live right now the value of having your own car, your own bed right now is huge, because you know what you've put in there. >> yeah, insta cart a few months ago, somebody to go grocery shopping for me, why do i need that yeah, now a lot of people need that >> it used to be a convenience, now it's essential >> we could continue this conversation, but we've got to go great to hear from both of you and coming up, a battle is brewing in the education world as to when colleges should open and how. we'll speak to the president with the arizona university who says they're absolutely planning to open. plus, a $39 billion merger that's created a new behemoth in the telecom industry we will speak with the man behind the deal, mike frieze, the ceo of liberty global. and a reminder, you can always watch us or listen to us live on the go on cnthe bc app "the exchange" is back in two. ♪

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exchange." let's get the latest on the coronavirus pandemic over to sue herrera for the headlines at this hour sue? >> thank you, john good afternoon, everyone here's what's happening at this hour new york's governor andrew cuomo is extending that state's moratorium on evictions an additional 60 days through mid-august the state will also buy excess farm goods and donate them to food banks in an effort to feed an estimated 20,000 struggling families frontier airlines will drop its open seat fee policy after being criticized for profiting off of people's fear. the airline originally planned to charge passengers extra to sit next to an empty middle seat, unlike several of its larger competitors, which have already said that they would keep middle seats empty for free and the street artist banksy hailing health care workers as superheroes in his latest piece on display at an english hospital the artist captioned the piece "game changer" on instagram. and indeed, they are

as always, you can get more on our coronavirus coverage by heading over to cnbc.com john, i'll send it back to you >> all right, sue. as the reopening debate continues, colleges and universities are grappling with the question of whether to resume classes in the fall or to have some in person, some distance the university of arizona says it has a plan to test, trace, and treat its students and staff as it resumes in-person classes in the fall. for more, i'm joined by dr. robert robbins, president of the university of arizona. dr. robins, good afternoon >> good afternoon, john. thanks for inviting me on your program. >> great to have you university of arizona, on the upper end as far as the number of students who you have, tell me, how long were you developing this plan, how much of it involves really having all the students on campus how many do you expect to remain distanced? >> well, we started making the plan for reentry once we got

into this term and saw how our own line of distance learning would work we made that decision in mid-march. and we knew that the students wanted to come back. i was hearing from all of our students, as i went around, they were on spring break they had to come back, get their belongings, and go back home to shelter in place and talking to them and have heard from many of them directly, from their parents, from our alumni that they sought to have that on-campus experience so we've got a total of 45,000 students we're not really sure how many will come back it will look very different. we're about 110 days out from opening our fall term, but we've got plans, as you rightly outlined, our 3t program, testing, tracing, and treating our students and we think that although it won't be, obviously, 100% safe,

we want to try to make as safe as possible for our students, our faculty, and our staff to return to semi-normal activities of course, there will be a lot of social distancing, people wearing masks, and it will be a hybrid approach. >> tell me, dr. robins about the frequency of testing i assume you're not just going to test once and that's it because you have people out in the community, interacting with people who aren't students, all kinds of things, and the frequency of cleaning. because even though a lot of students aren't in a high-risk category, i imagine a lot of your faculty, a lot of your staff are. >> that's a very good point. we have two different modalities i think you probably know, we early on developed our own test kits, because we didn't want to be at the end of the supply chain. and that was for viral testing and we developed a very highly accurate antibody test so we're offering that antibody

test to all 60,000 members of our family, students, faculty, and staff, and then the algorithm we're developing for testing for viral load is -- will be for all symptomatic patients, of course. for all symptomatic students or members of our community and then we're going to have looking for hot spots, we'll use contact tracing. we'll actually use fluids from building to look to see if we can determine that there may be a hot spot before anybody becomes symptomatic or sick. >> i want to ask you, also, being the kind of school you are, about sports. it's important from a cultural perspective, it's important from a revenue perspective, i believe you said, anticipated losses in revenues over the 15 months through june 2021 are $250 million. but what's going to happen with sports if they are going to come

back in the fall, in just over a hundred days, i would imagine, you've got to have preparations for that happening right now will they come back, at any point, do you expect to have crowds in stands >> yeah, that's a really good point. and i -- you know, i got -- on the home page of espn, fortunately or unfortunately, on the day of the nfl draft saying, in my gut, i don't see people in arizona stadium or our stadiums around college football. since then, i've gotten more information from our conferences and the ncaa i think there's a plan to try to play games it will probably be a reduced schedule, may start a little later. but i don't think it will be with people in the stands. we're watching what's going on with the pga tour, nascar, nfl is supposed to make a big announcement but the first thing that has to happen is the campuses have got to invite students back, which we plan to do.

and we're working with our sports teams i think you'll see them come back and there will probably be some activities and games played this fall, but probably, initially, slowly ramping into no fans, initially, and then we'll just have to see how the public health barometers that year using to monitor this work out for us >> that's going to be tough, which is a lower risk gathering outside in a stadium or gathering inside in sportsbars dorm rooms, fraternities, who knows? i'm sure you'll work hard to figure it out. thank you, dr. robin roberts for being with us. >> thank you, jon. coming up, liberty global ceo mike fries will join us. we'll discuss the company's future, telecom, 5g, a lot more. plus, silicon valley shedding thousands of jobs amid this pandemic we'll look at what hears are getting hit the hardest. what we could see when the economy recovers we'll be right back. (upbeat music)

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welcome back to "the exchange." let's get a check on the markets. some of today's big movers with dom chu. >> the markets are solidly higher as the s&p 500 nears that 2,900 level. meanwhile, the nasdaq composite has now recouped all of its year-to-date losses. the rally is pretty broad-based. every sector, you've got cyclical sectors like energy, financials, and materials leading the way higher meanwhile, consumer discretionary, health care, and consumer staples are the

relative laggards, though still in the green some of those stocks to watch include jetblue after the airline posted quarterly results that missed analyst expectations, but some investors are becoming more comfortable with the idea that they are taking the necessary steps to maintain costs and solidify its balance sheet. next up, you have paypal after they fell shy of consensus estimates, but stronger trends and transaction volumes and customer usage are driving some of those gains and then we'll end on peloton, which hit a record high in trading after they enabled exercise equipment said sales jumped 66%, after customers looked to alternatives to exercising in gyms after the current coronavirus pandemic that stock went public at $29 per share. back over to you >> who could have guessed this would have happened? thank you, dom neiman marcus, saddled by debt, hit by the pandemic, filing for bankruptcy with a deal to hand over the business to its creditors. the companies furloughedmost o

its 14,000 workers, closed its 43 stores. neiman marcus says it's secured enough financing from creditors to fund operations through this crisis it's now the second major retailer to file for bankruptcy during this pandemic we've been talking about j. crew up to this point moving on, it's one of the largest media mergers since the pandemic started liberty global and telefonica agreeing to combine their uk operations julia boorstin joins me now with all the details. julia? >> liberty global and telefonica are teaming up to create the largest phone and telephone operator in the uk with a joint venture between liberties virgin mobile and telefonica's 02 which will be valued at $39 billion. this creates a rival to bt, which has been the only urk operators, which has both a mobile and fixed network this new deal unites virgin, which has the second largest broadband network in the uk with o2's largest mobile network.

now together the combined company has $46 million customers. the deal, which is expected to close in mid-2021 was announced last night after liberty global reported higher revenue than expected in its earnings you see liberty global shares up over 4%. joining me now is liberty global ceo mike fries thank you so much for talking with us today. >> thanks verying if for having. >> with so much economic uncertainty, why did you move forward and make liberty global's biggest transaction ever during this coronavirus crisis >> that's a good question. to be honest, this transaction has been moving fo say that w will be a great transaction for shareholders, consumers, and for government and for the uk. >> now, what we'rebout here are consumer businesses mobile and broadband obviously, peoplg these differe

but you concerned that people will be downgrading to less costly plans >> i don't think our services are critical, vital, and essential our networks are robust and reliable we're not seeing any issues there. there are going to be some consumers with economic challenges and we're doing what we can to protect those consumers, keep them connected but if anything, this has demonstrated the value of our products and services now more than ever. we don't see that as a risk. >> now, beyond just this $39 billion deal in the uk, you have businesses around the world with exposure to both broadband and cable and also mobile. what do you see in terms of the health of the consumer around the world, and specifically the risk of cord cutting >> well, i would say two things. number one, the demand for broadband and connectivity has never been higher. so consumption on our networks is growing 10, 20, 30, 40%

depending on where you are so that's a positive thing definitely people are watching more video that's a good thing for us remember, connectivity is the killer app for us. so when they watch more video, we well. so there's going to be some disruption and continued disruption in the video space. but remember, our business, we're not advertising driven, we don't have exposure to a lot of the industries that are struggling so we're going to come out of this, we think, quite well today, we didn't change tour guidance we didn't suspend our guidance so we feel pretty good about our business in the short and medium term here. >> hey, mike, it's jon fortt looking at your two businesses, a common denominator is 5g i wonder, how has this crisis affected your plans for capital spending, particularly on 5g through this have you lost time because people are sheltering in place have things maybe sped up because people aren't on the road, and are you still projecting on spending the same amount on the build out over the next few years >> great question.

so when you fixed in mobile convergence is happening across europe this is the fifth transaction we've announced where we've put a mobile company together with one of our broadband customers consumers are winning because they're getting faster connectivity, better connectivity governments win because they have the competence and scale to invest it's a win/win for everybody and we don't see actually any impediment to our continued growth for us, it's two things. building out fiber and one gig networks and o2 is the largest mobile operator and advancing to 5g 5g and one gig, when they come together, that's a powerful combination and that's what this merger is all about. >> and what's your plan for marketing spend? operators like you are among the biggest spenders on the one hand, people suggest that you need this on the other hand, you still want to drive business through this are you spending more, just as much >> we're finding that sales have trended down, but are stable

from pre-crisis, but churn or disconnect have also come down so our business is stable. and i think all operators are really just trying to keep the stability and the rational behavior in the market during this crisis. when we come out of a crisis, obviously, i think it will get back to normal and become competitive or more competitive again. but at this point in time, we're all -- you know, many of our shops are closed, so mobile handset sales are down and things of that nature, but churn is down, too our business is running pretty much at plan and that's a very good thing for us, obviously. >> now, mike, looking to the other end of this crisis, i wonder if you think consumer spending is going to be fundamentally changed. do you think we'll see a shift away from the cable tv bundle and further towards embracing streaming plans and mobile where do you see consumers moving on the other end of this? and what does that mean for you? >> well, i would say this demonstrates the power of fixed mobile convergence connectivity is what people want and they want it from one

provider we know that emerging customers who don't have o2 are excited about having o2 in their bundle. o2 customers are excited about having virgin media broadband in their bundle we've seen it in eight other countries where we operate churn goes doing, nps goes up. so providing consumers with a package of fixed and mobile connectivity is really important and i think will certainly help us through this period of time you know, consumers, there will be a percentage of the economy, more generally, tas going to have a harder time coming back i think some semester, you know, will not reenter as aggressively as they did, but our products and services are essential, so rilt vital to their lives, i don't see us really falling into that category >> all right, thank you, mark fries and our own julia boorstin >> thanks. now, ahead, while every other state's unemployment fund has declined due to the virus, florida's has increased. we're going to look at why and the fallout. plus, whether it's high tech,

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american eagles for the amazing price shown on your screen. welcome back out just moments ago, facebook is expected to announce today most of its employees will be given the choice to work from home through the end of the year meanwhile, more than 33 million people have lost their jobs since economies began shutting down seven weeks ago silicon valley has not been immune kate rooney joins me now with a look at how hard start-ups have been hit >> hey, jon, good to see you, the job losses are adding up and silicon valley, the especially, of course, for young tech companies is seeing the biggest effect since mid-march, we've seen more than 17,000 layoffs of barrier start-ups. new york was the next hardest hit. and globally, the total has

topped 44,000 for vc-backed companies, according to one realtime tracker transportation, food, and real estate saw the biggest effects and as far as companies, uber went through the deepest round of job cuts, followed by groupigroup igroupo and airbnb this marks a huge shift in the job tech market. recruiters tell me a few months ago these jobs were really hard to fill as demand outweighed supply this influx of new candidates makes it harder on those who are actually job hunting, especially as hiring stalls and cv investors are urging their portfolio companies to cut costs. jon? >> thanks, kate. let's dive deeper into the silicon valley layoffs and whether the situation is going to improve as the economy starts to reopen. joining me now is carl gordino, president and ceo of the silicon valley leadership group, and casey newton, silicon valley editor at "the verge." good afternoon, gentlemen. carl, i remember sitting with you 20 years ago in the boardroom of the "san jose mercury news," as we were looking at the dotcom implosion

and issues related you have seen a lot and the organization you lead, which represents 3508 or so big companies in the valley, where does this rank and what kind of a recovery are the leaders there telling you they expect? >> thank you in my role as ceo for the past 23 years, we have seen very steep and deep economic downturns. the dotcom bust of 2000 through 2002 saw 119,000 job losses in the barrier, and then in 2008 through 2010, similar amount of job losses, took 82 months to get those jobs back. we think this one may be even steeper and deeper, because it's not just an economic downturn, it's because of this global pandemic and health crisis that we're experiencing, and it's harder to know when there's going to be treatments and cures to help turn this around >> but carl, at the same time,

silicon valley is very different now fromthe way it looked then i mean, you didn't have the same kinds of power concentrated in apple, in google, in adobe, even, in downtown san jose you've got these companies that while they are affected, their financial strength remains is that going to lessen, perhaps, the blow to the ecosystem? >> it's hard to say, but it's an excellent question we've been doing ceo surveys about every ten days in the last six weeks since the shutdowns and the shelter in place orders began. our last survey from just two weeks ago, 95 of our 350-member innovation economy ceos responded. and let me just provide the numbers for your viewers 42% are hiring only for essential positions. 27.5% have frozen all hiring

12% were already in layoffs. 3.2% were considering layoffs. and only 15% was in business as usual. and shifted like techtonic plates in last two weeks we'll survey against the next week and we think it will be a much tougher environment now >> i want to be in touch on those numbers. i want to bring in casey newton are you seeing maybe a bifurcation between what's happening in start up land where many companies had been on this grow, grow, grow trajectory, not paying that much attention to cash burn. they have to now >> that's exactly right. the whole game is to buy yourself time and for the biggest companies in silicon value wlee ha-- valley who have

cash balances will be able to ride out 18 months with no problem. they will only grow more powerful on the other end, you have a bunch of start-ups who had maybe a year's worth of revenue but that was assuming we'll be in good times now instead, we see a large sector of the economy in a deep freeze that's requiring every one to basically rev up their plans >> what happens to the workers, casey? >> i don't know you watch the workers who are tech savvy but the workers to keep platforms operating. do to workers come out okay in this or not in. >> well, the good news for contractors and companies like google and facebook so far is those companies have agreed to continue paying them and in some cases when they are not doing their work or having to do a different kind of work from

home there's been a benefit attached to those companies the smaller companies are looking to cut whatever they can. i do expect that's going to have a huge impact on the folks who are cleaning the offices who are doing the kacatering or maybe some of that content moderation works these will be felt really deeply >> casey's point is excellent bauds it reminds us we are all linked together whether that job is specifically in high-tech or the important support services that support those jobs. >> too often we forget or can forget about those workers in the economy who are getting especially hard hit and carl, we do want to get those numbers from you because it's such a good look at how the values responding get those next week. thanks for joining me. ahead, as millions of americans file for unemployment, florida's facing lots of issues

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welcome back an emergency hearing in florida as lawyers ask a judge to step in and expedite unemployment benefits we have a closer look at the path forward there >> what's happening in florida has really captured national attention. to put this in perspective, florida's unemployment rate is about 6.3% that's among the lowest in the nation the national average is 15.5%. many more floridans should be on the roles but the system is failing the very people it's supposed to protect. they have asked a judge in

tallahassee to step in and hire a new company to run florida's unemployment system that's been plagued with site crashes and glitches more than a million have applied for unemployment in florida. florida officials say they processed 69% of claims filed but paid 43.2% most of the people have gotten through and successfully applie are still waiting for the benefits there are built in theys thaz verify claims. the judge did grant the state's request to dismiss this case and this as we learned today another 173,000 floridans applied last week this has really become a national scandal >> i remember reading about this as we were heading into the crisis it seemed the argument was florida structured things to keep people off the unemployment rolls. the system wasn't designed to work that well

you think that changes out of this or not in. >> i think a lot of people hope so i think a lot of people are depending on this. there's been a lot of political back and forth about who is to blame. the system was implemented about 7 years ago when rick scott was governor most people who need these benefits argue at this point just get it done they are hoping for some regional help centers to help them get through the process whose to blame is a question depending on who you ask back to you. >> a lot of people like small government until you need big things from government that will do it for the exchange coming up next, harvard's ken rogoff will make his case for negative interest rates. ceo of penn national gaming will tell us why he's staying positive power lunch is up after a quick break. - [narrator] at southern new hampshire university,

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hi, everybody. welcome to powerlunch. the market is moving higher. this even as job losses pile up over three million more americans file for jobless claims last week tomorrow morning we'll get the april unemployment report. is now the time for the fed to go negative on interest rates. numbers as this crisis drags on. one award winning economist will make his case. a warning from the department of justice. china wants your data. we'll get much more on that story straight ahead first to tyler who is in the kitchen. >> i wish i were serving power hundrlunch but i'm not.