We have what we need. David it is said to be a radical change this week on the ability to test. What are we talking about and how many should we be testing in a given day or week . Max ideally thousands a day or tens of thousands a day. Given the fact that we had as many as six weeks of spread in washington and new states popping up with new cases. It is important to test as broadly as possible to catch and break the chains of transmission instead of letting them go on and on and people sitting waiting for tests. We can wrap up as much as we can, even if it means letting hospitals and labs coming up with their own tests. David . Ets go to Peggy Collins the big issue is the personal effect but also the economy. We had numbers out but a little wouldnd not as what you have thought. Peggy we are seeing manufacturing numbers coming in the most since 2009. That is the biggest things economists are looking out for. We came into 2020 with a global fragile, partly from the trade war. Now the coronavirus is putting additional pressure on the Global Economy. If we see contraction in places in europe, it could have a Ripple Effect on the u. S. , even without an outbreak of the virus itself. David with help on its way. We heard from jay powell, the head of the fed, he said they may do something. You had the bank of japan and england follow thereafter, saying we are prepared to step in. Peggy markets are expecting the fed to take action, possibly cut, even before the next meeting scheduled for march 17. We are on the lookout, most Central Banks around the world have been messaging to the markets and economies they are ready to step in and willing to help. So far, we have not seen them come out with a coordinated rate cut but on the lookout for that. David is that the right tool for this particular problem question mark lower Interest Rates will not problem . Lower Interest Rates will not help their they are pretty low already. Peggy that is right. We are looking at, would it be a coordinated effort between monetary and fiscal policy. The virus is putting a potential strain on is disses in terms of ability to hire or get supplies in the world which could put pressure on their ability to pay loans or take a loan. Some action might come from Small Business loans or ability to keep credit flowing. That is separate from a rate cut. It is a rate cut that made stabilized market turmoil and fears. David thank you so much. Peggy collins, reporting from washington. A big week in politics. I will put you on the spot, does the Political Climate is the Political Climate different and is President Trump more vulnerable . He might be, one of his strengths is the economy and the Interest Rate and everything peggy described. If the economy is really going weaker, thenoming he does not have that argument, whether he will say it is not his fault and it is the virus but he will and that could certainly hurt him with republicans who focus on the stock market and those who may be losing jobs if this gets bad. Itid which leads us that if is not President Trump, who will go against him in a member question mark have super tuesday a day away. Joe biden says the whole world is different after the big victory on saturday. Is he right . Wendy he feels like the whole world is different. He came off too bad losses in iowa and new hampshire. He came second in nevada. That was a good night for him saturday. He one half of the vote. That was a big, decisive win. He trails Bernie Sanders by 30 points now. The big wildcard in the race is for tomorrow, and that is Michael Bloomberg, who is another centrist candidate with whom voters who believe in the moderate centrist, lets get back to normal sort of campaign message, they might split votes between the two of them, between joe biden and mike bloomberg, which would leave Bernie Sanders getting the votes from those who are interested in the radical change. The biggest thing estate tomorrow night is california and he is dominant there. Michael bloomberg is the founder of our Parent Company but talk about california. Polls say Bernie Sanders will have a big night. Wendy Bernie Sanders is likely to have a big night out there. It is a very liberal state and where his income inequality arguments is not philosophical, it is real. There are those pockets in Silicon Valley and the San Francisco bay area and the wealthy parts of los angeles, where people are obviously very, very wealthy. The cost of living is so high and out of reach for all of the people who police those people and keep them safe and keep their houses clean and provide other services and farmworkers those people are really, really struggling in the california economy and they have a terrible homeless problem. And you have Bernie Sanders coming in and saying free health care, tuition, and that is resonating out there. David thank you so much. There is a terrific piece her team has out there on the income inequality and california and Bernie Sanders out there. Our coverage of super tuesday starts tomorrow night on Bloomberg Television and radio. Now time to find out how the markets are doing. Joining us is abigail doolittle. Abigail a rebound rally. Betweentoday, slipping small gains and losses for the s p 500. The s p 500 and nasdaq up nearly 3 , the best day in nearly a sinceafter the worst week 2008, on uncertainty in the coronavirus and what it will mean for the Global Economy. At 2018 look back fourth quarter, there would be a down week and then a big up work up week until it was resolved between the bulls and bears. Also between august and september and it resolved in october. Same thing in 2008. All the selling pressure from last week, we see investors willing to buy, perhaps relieved by the fact that we had the horrible pmis out of china. That was sort of a given that they came out. And now some cases in the United States, while it is awful and can be intimidating to some of us, it is the reality. So instead of the reality not being spoken about, we have proof. The dow transport has been leading the index the whole way with the coronavirus. It is up on the day. It had been even, but over the last several days, down sharply. This is a big index to keep in i am with the airlines. David some are also buying bonds. investors dont know whether it is all cleared to buy a stock so they are hedging with bonds and encouraging, we are seeing a bounce for commodity complex. That is a bit risk on. Some top gainers for s p, cost co, best days as they are stockpiling as people are stockpiling clorox and cleaning supplies. David that is abigail doolittle. We go to Mark Crumpton with first word news. Mark a global teleconference will be led tomorrow to decide how to handle the threat posed to the Global Economy by the coronaVirus Outbreak. Bloomberg has learned they will be joined by central bank governors. Said thenance minister ministers need to ensure their responses are as coordinated as possible in order to be effective. The british Prime Minister, boris johnson, warns the Virus Outbreak will be more significant the u. K. In the next days. Tomorrow, the Prime Ministers government will put out a plan to fight the disease. The United States is expecting more cases. Iran and south korea reported a jump in infections. The u. S. Supreme court says it will again consider whether to strike down obamacare. The justices will hear the democratic appeal seeking to reaffirm the Affordable Care acts constitutionality. The Drop Administration is banking backing republicans to validate the law. To invalidate the law. A ruling is likely in the first half of 2021. In israel, Prime MinisterBenjamin Netanyahu and benny gantz are in the third match up in less than a year. The result may not be different. Netanyahus chances may have picked up in days. Benny gantz is the former military chief. Neither candidate was able to form a Coalition Government after the last two elections. Global news 24 hours a day, online and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im Mark Crumpton. This is bloomberg. David thank you very much. Coming up, more on the coronavirus and possible treatments. We talk to an expert from brown university. Power onalance of Bloomberg Television and radio. David here to take us through is the professor of medicine and Infectious Diseases at round university. Thank you so much for joining us. Give us a sense of the science what do we or dont we know about the coronavirus present in the United States . This ismorning remarkable how much we have been able to learn in this short period of time. In two months, we know something about the almost 90,000 cases that have been reported. About how the virus is transmitted. We know a lot about the clinical picture. With thetion had to do u. S. Situation. We know that there are micro academics and clusters micro epidemics and clusters and we know from the sequencing data, in some areas, the virus has circulated for about three to four weeks. See reported cases and parts of europe that had a secondary effect. , china, south korea, and other areas had a big number of cases. Compare this, if you will, to the spanish flu epidemic of a hundred years ago. We had bill gates, who is not an Infectious Disease specialist, writing in over the weekend saying this reminds him in some ways of that, both because of the infectious nature but also it is efficient in the way it transmits and also people can die from it. When we have something that is so different, we try to go back. History is on our mind and we associated. That is the way that knowledge goes. What we try to do is try to go back and see. There are some similarities. Some are worrisome. The mortality rate of influenza was high, but at that time, we had no Health System and no antibiotics to fight secondary infections. The information but now we know a lot. A the other hand, there is difference in transmission. If this was influenza, it would have been a pandemic already and the containment efforts would have done absolutely nothing. We do see some containment efforts that will at least delay ins from becoming a pandemic the narrow sense of the definition. Something that we need to carry from that experience from the in 1910,in the 1910 is the majority of deaths started at the end of the one season. Then there was a bounceback in the fall and winter. Is as thepredict testing becomes more widely available, especially in the u. S. , a number of cases will go up. This does not mean it is such a dramatic thing, we are just now trying to catch up on what has been going on for a few weeks time. And then hopefully, the expectation from other coronavirus is, is that transmission will decrease. We also need to prepare for the long haul, meaning a few months, to go through and be prepared for any reemergence of the situation. In that regard, we have learned a lot from the pandemic flu. David you referred to the diagnostic testing. There is concern we are behind in the United States. We heard mr. As are saying it zar that it will be wrapping up. Where should we be at this point . There are so many unknowns and there is a situation that we figure out as we move forward. But we haveshould, two see it in a pragmatic way. The testing now is becoming more and more common. Itould like to have seen earlier, but that is something that it is what it is. Now the testing is available and hopefully there will be even shortly,lability very from commercial as well. David on the treatment side, we heard of the head of the fda saying he would expect to have a treatment something in september or october and a vaccine would be much later. Does that sound reasonable given your understanding in this area . Timetableook at the for those two elements. Of course we cannot develop an antiviral in such a short period of time. What we are trying to do is repurpose antivirals from other antiviral develop for other coronaviruss and try to see if they are effective. We have some interesting, good results. The Clinical Trials are ongoing and we should start seeing weeks. In a couple of that is the timeframe for the antivirus serum we have in mind. We do not know how effective they will be and who will benefit from those antivirals. And then you are running into the problem of availability. How can we have antivirals available for a large number of people around the globe . Scaling up will be another challenge, assuming we will have an antiviral. As i said before, who will benefit and when to give it and you with antimicrobials, run the risk so that you dont want to give one antiviral, you want to have choices. That is the timetable. Many of them, no reason to go into individual ones. In twold have results weeks. Challengee is another. Is something that we have already. We have vaccines. We know which part we need to target. It is the part that associates with the lung cells of our body and that is where the antivirals are made for. The vaccine is going to the initial steps. The long periods it takes is for the effectiveness. That is going to be that is why it takes a year for the vaccine. David thank you very much. Breaking news, the European CentralBank Supervisory board chair has met early resistance to proposals for bursting mergers and acquisitions in the banking industry. Say are resisting and they lets liberalize the way we consolidate banks in europe. Fast. B sank not so that is coming up on balance of on Bloomberg Television and radio. David balance of power on this is Bloomberg Television and radio. Im david westin. Equities rebounding. Taylor riggs is back to explain it. Interesting,is china pmis overnight were not good, plunging 37. 5. The csi 300 in china had one of the best Days Since Last may. That gave optimism overseas and is clearly translating here into the u. S. Markets, up 2 to two and a half percent. If you look at the two year and 10 year, they were down as much as 12 basis points. I keep hearing that until we get yields bottoming out or rising, the equity rally doesnt have the strength. Both yield higher, falling, it is hard to call a bottom. Companies that favor hoarding are doing well. Walmart. Costco, withrt, clorox also. Shopping, Online Amazon managing to be higher. Today, all marked, costco and those shops higher and also with and every buddy trying to get the disinfectants. Thankank you back you. Preview of our super tuesday coverage. This is balance of power on Bloomberg Television and radio. David from new york, this is balance of power on Bloomberg Television and radio. Im david westin. We are a day away from super tuesday, went 14 states and one territory will hold democratic primaries. The shape of the Playing Field has changed with former Vice President biden big in south carolina, bringing in endorsements and money, and Pete Buttigieg abruptly dropping out of the race. Heres a look at what to expect. Selfproclaimed democraticsocialist to conventional wisdom and turned it upside down. Bernie sandersat talk about support being limited to young white liberals who are disaffected . No one is saying that now. Sanders won 47 of the vote in the nevada caucuses, and he did it with a broadbased coalition that looks more like the Democratic Party as a whole. Now sanders is eyeing bigger prizes. Dont tell anybody, i dont want to get them nervous. We are going to win the democratic primary in texas. Texas is one of just 14 states at stake on super tuesday. It is the biggest day on the president ial primary calendar. 1357 delegates up for grabs, a third of the total number available. California and texas are the two biggest prizes. Others include north carolina, virginia, and massachusetts. The big question is, can anti sanders moderate stand together . We are coming back and we are going to win. Was a Longtime National front runner. He had not won a state until saturdays nort south carolina. His daughters hope that i can give him a boost on super tuesday. And there is the Michael Bloomberg factor. The billing there will be on the ballot for the first time. His performance in his first debate was widely criticized, but he has spent a fortune on advertising that will likely sure of his support. Of course, bloomberg is the majority owner of the parent of bloomberg news. Meanwhile, the candidate who took bloomberg down in that debate is looking for a bounce. Every time somebody tells you a woman cannot beat donald trump, i dont know about a woman, but i can tell you about elizabeth warren. But she and others might not get a chance unless they figure out a way to stop Bernie Sanders. Super tuesday could be one of their last opportunities. For more analysis, we welcome our panel of chris and democratic strategist al mottur. Both are coming to us from washington. Has the world changed after that big when . Win . You cannot deny it was a big win for joe biden on saturday. Asit has changed, but not much as the Vice President would like. He needs to perform will tomorrow to stop sanderss momentum. The key thing here is that 15 threshold. How many candidates can get above it in each of the states they are competing in, and in the congressional districts . District by district. How many can be awarded to sanders versus the field. All of them are looking to keep him below a number of delegates. Toid is this breaking down some extent along geographical lines, north versus south, with Bernie Sanders being dominant in the north, but maybe Vice President biden having a chance in virginia, tennessee, places like that . Alongis breaking down geographic and de demographic lines. That is what propels sanders, and that is what has and leading the polls in california, could also means he breaks through in texas. Support on saturday was based on africanAmerican Voters, the majority of the voters in the Democratic Party. Joe biden in theory could do well in Southern States with a majority of africanAmerican Voters tomorrow. Toid i wonder the extent which the coronavirus may affect this race . This is a whole different kettle of fish. It really raises questions about economic security, health security, things like that. I think the Vice President is on firm ground. He can talk about his experience with president obama, they established a Pandemic Office within the white house, which President Trump mysteriously and irresponsibly got rid of. Bernie sanders can make the case that this is why we need everyone covered under our health care system. We cannot have loopholes where people dont have coverage, particularly when they are lifethreatening diseases around the globe. I noticed bloomberg also ran a pretty strong ad against President Trump, suggesting he had the strength and experience after 9 11 to deal with crises like this. It is certainly being injected into the livestream of the campaign. Chris, you have written the book on singlepayer, you are not a fan of it. Book issues coming together. A lot of these could jeopardize the president s position. The coronavirus is a wildcard, not only how it impacts peoples lives, people contracting the disease, but also the broader economic impact. We will see how it plays out in the coming months ahead. The democrat seven interesting conundrum on their side. A majority of the voters in each of the primaries, iowa, new hampshire, south carolina, nevada, all supported a majority supported a singlepayer type of system. The problem for the democrats is a majority of voters of the country do not necessarily support it. You have an issue where the Democratic Base is going against the broader population. One thing i would add here, this is going to have a major impact on the general election as well. Nobody can really control it, and that is why the president is worried. This could be his locks on event, so to speak. If we have a Global Pandemic that shuts down economic opportunities, you see companies imposing travel bans, governments imposing travel bans in many countries, conferences are being shut down. That could become a problem for President Trump. His hallmark for his reelection is his economic success, at least as he argues it. David there is a distinction between singlepayer and universal coverage. You can have universal coverage without being singlepayer. Is that too subtle for the American Voter to sort out . I dont think so. Joe biden wants to expand on obamacare. Onhas attacked sanders singlepayer as being too radical. Joe has his own problems. He received 13 million from his income or he did not pay obamacare taxes from. It is a flawed message when he says he has an opportunity to pay taxes on his income, and went to Great Lengths to avoid that. David is this a strength or weakness for the Democratic Party . Election has turned on this issue and it is up in the air on who wins in the fall. This, if we are running under the Bernie Sanders ticket in terms of taking away health care from 160 million americans, it will be a loser for democrats. David very helpful discussion. Ourant you to tune into full coverage of super tuesday tomorrow, starting at 7 00 eastern time. For bloomberg first word news, we go to Mark Crumpton. Mark some american troops in afghanistan will be coming home soon. The esper says he has given commander the goahead to begin the initial withdrawal of american military. The job done was required to start within 10 days of a signing of a peace deal with the taliban. The coronavirus is spreading in the United States. New hampshire has reported its first case of the virus. Manhattan confirmed its first case in new york state. Portugal has just confirmed its second case, according to the Health Director there. The Supreme Court has ejected an appeal of the federal ban on bump stocks, devices that allow semiautomatic firearms to fire rapidly like machine guns. President trump says the government would move to dan bump stocks following a 2017 shooting in las vegas in which a gunman use the device to shoot concertgoers from his hotel room. 58 people were killed and hundreds more were wounded. Jack welsh has died, a champion of corporate efficiency, who built General Electric into one of the largest companies. Stock rose almost 3000 over his two decades as ceo. His reliance on the ge finance unit would prove to be a threat to the company after he retired. Global news 24 hours a day, onair, and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im Mark Crumpton. This is bloomberg. David this is balance of power on Bloomberg Television and radio. Im david westin. Panera bread is best known for its 2000 Stores Across the u. S. And canada, and being a pioneer and fast casual food, moving on to a commitment to healthy agreements and Technology Like mobile ordering and delivery. Now it wants to be known for its coffee. We welcome the panera ceo, niren chaudhary, to tell us about the latest initiative. Tell us about this initiative. Subscription coffee . So excited because we are disrupting the industry. Every day in the u. S. , there are 150 million to 200 million cups of coffee consumed every day. Half of those consumers are conflicted about the price they have to pay. My so high price . We have great coffee, and we believe we can eliminate that source of conflict and give highquality coffee at a competitive price. If coffee is about optimism, it is more than about this hot liquid. Unlimited coffee is unlimited optimism. We believe on the back of this, americas cup can always be full. David what were some of the test that you did that drove you to do so quickly . Niren we tested this at about 350 cafes. The frequency went up by more than 200 , which is fantastic. David people just came to the stores more often. Niren and also new customers. Fromf the frequency was customers that have not come in before. 70 increase in food attachments. People enjoying the food and adding that. Third, subscriptions work only as a recurring revenue model, if there is rid of. We found 95 when doing after the month. David that was going to be my next question. Churn can be chilean some of those subscriptions. Niren the churn is less than 5 . We are super excited about that. Things like drivethrough, delivery, and so on. Underscore the importance to have a frictionless, convenient experience with coffee. Subtraction,ave a i dont have to go through the normal checkout . Niren you can do it when you wanted, how you want it, on premise, off premise. You can go to the kiosk, enter your reward number, go to the station and pick it up. You dont have to interact with anybody if you dont want to. David you have done the research, you have every reason to be optimistic about it. It is an unfortunate time right now with the coronavirus scare. How does that fit together with you . Niren a fast emerging situation, we are watching it closely. Cdcre monitoring the notifications, looking through our supply chain plans to ensure continuity. We are prepared to ensure ongoing safety for our customers and employees. We are watching it closely. So far, we are just excited about this initiative. David have you seen any effects of the coronavirus on your business so far . Niren we have not. David we have talked about all of this testing at the cdc, but it costs money. Thousands of dollars. A lot of People Living on the margins dont have the money for that. I hope you dont have the situation, but if you do, how can you provide testing your for your employees . Niren we will handle it with the utmost compassion, as we are known to do as a brand. We will do what is right for the employees and customers. David do you have a monitoring if you have somebody . Are focusingnow we on sanitizing, making sure that all of our employees are protected. If anyone is not feeling well, asking them to stay home. Just thinking through the process, making sure we are prepared to react. David an error is held privately panera is held privately. Does that give you more leeway, flexibility, cushion, if there is a downturn . If we have a slowdown in this country . Niren what is unique about jb, we are always committed to building shareholder value by building great brands for the midand longterm. That is very much the approach and intent of jb. I would say we are fully empowered to do what is right for the business and people for the middle and long term. I think we will continue to do that. David talk about growth. It sounds like this initiative is to get more out of your existing stores, more frequency, people buy more. Are you thinking about expanding in other ways . On the first question, it will be an interesting tactic for us to explode up on the breakfast front. You also have a choice between good coffee and good food. At panera, you dont have to choose. Our food is freshly prepared. Food that is 100 clean. We are the only retailer that does that. I think our breakfast part will grow. We are also focused on growing dinner in the months ahead. Dropping the core business through innovation and value is one component of our strategy. Then continuing to grow our new cafes. David about 2000. Niren 2200. David how fast are you adding new stores . Niren about 100 every year. We are also developing newer concepts, smaller concepts, urban concepts. We are looking at more flexible ways to penetrate the urban market. About 30 ing at our cpg business. Omni channel growth. We are the nations largest catering provider. We are the largest provider in fast casual delivery. New cafes, new formats, new channels. David how are you benchmarking who you are competing against right now . Niren we are players in three day parts. Coffee, breakfast, around the day, some higher afternoon and evening brands. David how do you assess your market share in this competitive sets . Niren we have a ton of research that we do. They are constantly looking at who we are losing or gaining share from. It is fascinating to have a business with three different day parts. The core of what makes us different is that we eliminate the need for our customers to compromise. Betweento compromise credibility and value. No need to compromise between value and quality. David congratulations on your new initiative. Niren your cup is always full. David many thanks to niren chaudhary. The ceo of panera bread. Why an activist thinks twitter more focused ceo in this election year. This is balance of power on Bloomberg Television and radio. Bloomberg television and radio. David this is balance of power on Bloomberg Television and radio. Im david westin. Shares of twitter surged in early trading with bloomberg reporting that Elliott Management is pushing for changes, after taking a 1 billion stake in the company, including possibly replacing cofounder jack dorsey. Year with us now is our senior deals reporter. This has been kicking around. Why is it coming to the forefront now . I think you are right, its been an issue for a while. It is big news now because elliott is a top brand activist stop. We dont know exactly what, but we think it will center around jack dorsey, and whether it is appropriate for him to wear two co headset once. David do we have a sense of whether it is jack dorsey not wanting to expand the way that other social Media Companies have done . If it is the latter, it is an interesting bit. Jack dorsey is rightly credited for being a visionary. The Employee Base are extremely loyal to him. There would be serious questions raised if anyone came in and said you are not doing the right things, you should grow the company this or that way. It is fairly limited, the options that elliott has. Can you go and acquire another product line . Maybe. Istters whole thing sticking to a single business, and they have done well. David they have done well but maybe not as much as some have thought. It has not gone up nearly as much as facebook. You would think with the president using an multiple times a day, you would think there would be some upside. That is some of the issue. Twitter gets lumped in with big tech. It is a single use platform, it does just one thing. It doesnt build out in the way that facebook and google has. It is a bit unfair that we look at them sidebyside and say it has not grown the same way, despite having a huge user base. Give upoes jack dorsey an opportunity in not taking a political advertising . He gave up a significant economic opportunity, but he wanted to keep it pure in terms of content. That is something that the employees probably like, users like. It is his company, and he is running at the way that he sees fit. Part of that is keeping it out of the fray of politics. David Elliott Management may have a different idea. Thank you. Super up, remember, our tuesday coverage begins at 6 00 eastern time tomorrow. Coming up in the second half hour, we will be speaking with the principal and government r group. S firm bg ou we will be talking about super tuesday. This is balance of power on Bloomberg Television and radio. G television and radio. Mark im Mark Crumpton with bloomberg first word news. Health officials in the United States say there are now 91 confirmed cases of the coronavirus in 10 states. The centers for Disease Control and prevention say that includes 45 infections among people who were on a diamond princess cruise ship, which is one more than previously reported. 17 of the u. S. Cases have been hospitalized, and to have died. Polls show Bernie Sanders dominating the democratic race in california, a day before the primary. One survey has in leading joe biden 32 to 14 . Boosted by been californias crisis over income inequality and housing affordability. The state is one of 14 holding primaries tomorrow on super tuesday. Longawaited trade talks between the European Union and britain kickoff today. The eus chief negotiator has warned the u. K. That no deal can provide the frictionless trade that membership in the eu did. The u. K. Let the European Union january 31