Motorola unveil a that. We will take a close look at these devices ahead. There seems to be no end in sight to concerns over the coronavirus. The death toll continued to jump after the epicenter revised a method. Thousands of passengers have been quarantined on a cruise ship in yokohama. Demand dropped this quarter for the first time in more than a decade. For market reaction, paul allen and i spoke with victoria hernandez, chief Market Strategist at Global Market investment. We are watching the headline to see what is driving the market. One of the things we tell our clients is that we want to look through the headlines when it comes to investment and strategy. We want to take a longterm approach. Yes, theook day today, virus has caused volatility in the market. We saw that this morning when they reported the higher cases of virus in china. I think we have to look at it a little bit. The market came back and gained 50 what they lost. A lot of that because the increasing cases was due to a change in methodology and how they were calculating the cases. It included a lot of people who already had the virus. It was not all new cases. Originally, we had a selloff and saw that come back throughout the day. Yes, coronavirus is driving the headlines now. It is battling with some of the fundamental things, earnings, and strong economic reports we are seeing. See small caps bounce today which reversed the trend. What is your theory on that . We know that small caps have a more domestic feel. If a lot of the downside we are seeing in the market is coming from the coronavirus care and uncertainty outside of the u. S. , we can see where small caps are starting to do better because they do not have the same concerns. We will have to see. One day does not make a trend. We will have to wait and see how those things continue over the next couple of weeks. Kayla that was victoria fernandez. The coronavirus is starting to reverberate into the global tech space. Chinesebased manufacturers have begun reopening factories after temporarily closing them but no one knows how deep disruption goes for a tech Company Including apple, samsung, and tesla. Bloomberg Senior Executive spoke with Romaine Bostick. A lot of confusion and uncertainty. The benchmark people look to is the sars epidemic so much has changed since then. It is a more globalized tech industry. China, at the center of consumption, has ramped up considerably. It is responsible for 35 of all Semi Conductor sales. A lot has changed. We know the coronavirus has eclipsed sars in terms of infection and deaths. As you said, a lot of factors are welcoming back some employees after the lunar new year. Foxconn chairman and they told workers of the unit that produces the iphone for apple to not come in. They are clearly worried of the nightmare scenario of an outbreak in one of the manufacturing facilities. I think we are going to see people coming back to work much more gradually than they anticipated. Conn grading must iphones, what are we going to see float over . The one spot of good news is that this is a soft period of the year at least outside of china in terms of consumption. The upgrade cycle is in the fall. The Holiday Shopping season is the big time of year for the Tech Companies. There is a good chance that even if they do slowly ramp up into production, they can make up the shortfall later in the year. We got an email the chairman of foxconn who said he was lowering 1 imates for the year to a to 3 growth. You see companies being cautious in terms of projecting with this means. Foxconn is a great bellwether. Look, there is going to be a hit nobody knows how big what will be. Be on that, we saw statements out of tesla that they were prepared to restart production as planned. Sony also making similar comments. At the same time, we are hearing some of these companies are not going to participate in a conference taking place in spain. A big mobile conference. What is the general sense . Can they get back up to business as normal quickly . Are they willing to do that . Is this just going to drag out . I think will drag out for the foreseeable future. It is a wait and see and following the facts on the ground. Some indications say might be peaking. Some of these companies are looking at it carefully. Ofis easy to pull out barcelona. It is an important conference for the year but the safety of your employees and preventing any unnecessary infections is paramount. Every company is looking at this to see how it plays out. I just want to mention a practicality factor where we have workers coming back from holiday in china and facing transportation blockades, quarantines. It is impossible for them to get back to work. Kayla that was bloombergs brad stone. We just heard several bigname Companies Announced they were pulling out of the mobile world congress. Wednesday, organizer scrapped the event entirely. In a statement they said the global concern regarding the coronavirus outbreak, and other circumstances, make it impossible to hold the event. My colleague paul allen deny spoke about i implications to the companies involved. It is significant in the sense it will have an Economic Impact on the city of barcelona which is everything it can to support the conference. The city becomes the conference for that week. It is going to put a delay, for halt, on a lot of business meetings and potential deals between carriers and suppliers. At the end of the day, this overall impact on technology besides a small financial headwind is not going to be significant. Thankfully, we are in the year 2020 and these things can be rescheduled whether another place or videoconference. What were we expecting from the conference . We were expecting a lot of hoopla around 5g and the back room deals. From a consumer perspective, i know motorola was set to announce a slew of new 5g phones. If you other companies were going to announce new phones. None of the major giant. You are not going to see anything new from apple, samsung, but the big players who talk about. We are not missing out on those. We are in the time were lots of Tech Companies like to make big announcements on their own timelines. Opportunityive an to give important people in the same place talking about development. Is this going to have implications for things like 5g rollout or other deals . Yeah, deals certainly of any major importance are going to be rescheduled. I feel like if there was any missioncritical meetings, it would have happened already. I know personally if i really need to meet with someone to get something done, that is going to happen asap instead of at a to be scheduled conference. Qualcomm had a major meeting scheduled, they could have just done over the phone or met separately. I think that is more fantasy than reality. Kayla that was bloombergs mark gurman. Plenty more still to come including breaking up a tech. Regulators are demanding companies turnover data on their acquisitions both big and small. That is next. If you like bloomberg news, check us out on the radio. You can listen on the bloomberg app, bloomberg. Com, and in the u. S. On sirius xm. This is bloomberg. Taylor the u. S. Federal trade Commission Wants to know more about big tech and some acquisitions. Specifically ones that may have eliminated emerging competitors. Ftc told Large Companies to provide information about deals that were not reported to antitrust agencies. The companies include alphabet, amazon, apple, facebook and microsoft. We discussed this with Senior Analyst for internet and media, michael levine. It is probably facebook for the top of the list. I am looking at that in conjunction with hearing they were going to seek an injunction toward the end of last year trying to stop facebook from time to messaging platforms. If you think about, where that to be the case we had written a know about this at the end of the year there would be more revenue disenergy. What acquisitions would we be talking about . Are talking about whatsapp, instagram . I think that is it. Those are the ones. What are the implications . Ftc is one the thing. And antitrust action is another. What is the reality of real action . Even if they bring a case, it would take years in the court to play its way through. We obviously have gotten more negative on the stock on the basis of fundamental work we have been doing combined with a disappointing q4 and outlook 4 for the year. One of the things that have kept us on the sidelines in regards to multiple and that will be in overhang. Right on the fundamentals, you will see the multiples grind lower. Michael, is it possible there is nothing to see here . More broadly, is Regulatory Risk come with the territory of investing nowadays . I think there is something to say. There is clear dominance in the social space and one of the things that has been so remarkable about facebook is the ability to leverage data across different platforms. They are the most mop in the monopolistic. We are positive on google. I dont want to brush under the cover i think you would have issues around the doubleclick unit. We have also been reading between the lines and you saw chapter a couple of weeks ago chatter a couple of weeks ago that it may be used in our opinion is a way of appeasing the regulators. We think that would be a pretty big win. Taylor that was Pivotal ResearchSenior Analyst michael levine. Haveile and sprint emerging for two years. This week they got a step closer to reaching the finish line. The two Companies Said they expect a close as soon as april 1. We got reaction with Senior Analyst jennifer reed. I think this was a surprise particularly amongst the antitrust lawyers and analysts who had been looking at the case. It was an unusual decision. Rather than taking each of the companys defenses to an anticompetitive deal, based on combined market share and what we call the hhi index which is used to assess a deal, the defense no defense on its own met the test that was set forth in the department of justices guidelines. What this judge said was if you take them all and put them together, take in together they rebut this presumption that it is anticompetitive. The judge accepted the remedy that the department of justice imposed to divest assets to dish and set them up to be a competitor in the market. Who needed this deal more sprint or tmobile . Taylor absolutely sprint. Tmobile would have been able to go ahead and continue with a profitable path. It may have been more difficult as it needed what sprint had but sprint was in a difficult spot. They had reputational problems, network problems, debt. They were really in a position where especially 5g they were not going to get themselves to a point where they could compete with the other three, verizon, at t and mobile. I definitely think sprint is the winner. I just wanted to build on taylors question. They have had a wretched year. At think this was really needed, this deal. They should thank john legere for this deal. I have to say some of the genius and the force of his personality definitely came through and how the judge assessed evidence. The judge decided that the maverick and carrier strategy and the Corporate Culture john built into tmobile was going to continue even when it was a Larger Company combined with sprint. Was really lucky in this decision given what they have been going through. Of the visionms softbanky are urging to buy back and improve transparency. Does the completion of the deal make it known some of that will happen . I would think so. It is straining a little bit out of my area but yes, i would think so. It looks like the completion of the deal will put things in place for softbank. Taylor that was jennifer reed. Came out theft results that beat expectations. We will dive into the numbers next. This is bloomberg. Taylor lyft came out with results narrowly beating analyst estimates. It was not enough to impress investors. The company said it could not promise profit sooner. We broke down the numbers with eric newcomer. You ever had the advantage of having earnings first and got the surprise investors by moving up its profitability . I want to be clear, we are talking about the adjusted profitability. It cut out a lot of things. The stock these companies are spending they are spending a ton of money. Lyft is still growing. They got to 1 billion in revenue in the quarter. They have the disadvantage of being smaller and uber has had more time to become a huge business and start earning the levers to try make a profit. Uber is focused on business customers which could help it get to profitability. Does not wantlyft to commit to the same timeline. Taylor i think you hit it spot on when he said the profitability is adjusted. It is not down to net income on the bottom line. Two analysts care it is supposed to be easy profitability . You take out the other expenses not yet being included. At some level it is shocking to be talking about uber getting profitability this year when we look at 2019 losses. It was something above a billion dollars on a net income basis because they have 4 billion and other expenses. Uber is a company that loses a ton of money but the reason we focus on the even numbers is it gives analysts and investors somehow to get their head around how the Company Makes money. The framework the markets are paying attention to. That is what we have been talking about. It is important to remember there have been huge stock expenses and other expenses that will be a problem for these companies. Eric, part of the problem is that the market is saturated. You cannot encourage consumers to take more rides. Start looking at ways to make money . They have been growing into a market bigger than the company. You are seeing a growing to active riders which is a good sign. Call, you heard they were going to face the law of large numbers. They were just going to run into the top size of the ride market. Uber has gone into food and other industries in the way lyft has not. Lyfts message has been they are not going to veer from that. It seems like they need to show they can run a profitable ridehailing business and make it work as a smaller company. How about on the cost side . Jobs. Aid it will cut 90 is this just the start . Corporate jobs matter. Certainly symbolically but at the end of the day what matters here is price competition and how uber and lyft are digging into prices to gain ground relative to each other. I think that is why the stocks have traded and have been related to each other. Investors react to one announcement for the other because there has been a price war going on. Be peak loss. Ould that has the competitive dynamics. But the big question is if subsidies come down, what is the Addressable Market for ridehailing . Does that limit the number of people who will take a ride . Taylor that was eric newcomer. Simpson unveiled its latest device in San Francisco this week. It is a foldable phone the y zpany named the galaxie flip. It is smaller in price and size. It is a signal that samsung is committed to developing a global business. Also i with the new offer motorola. We got our hands on the new razor. This is the new motorola razor. 1500 razorrolas reboot. Remember the razor from 15 years ago that everyone had . Instead of being a normal flip phone it has a full touchscreen. It is a smartphone. This phone has plenty to like. It is minimalistic, it has hightech features all modern smartphones have but there are drawbacks. The technology is still super early. You can feel bumps and lumps in the electronics as you rub your finger across it. There is a notable soul sound when you open and close the phone. The hinge mechanism opening and closing. Even though it is 1500, it does not feel super reliable. This could work for six months or a year. Longterm we will see how long it goes. It easilyy to make accessible, the nostalgia, but the drawbacks just being a period where it is more accessible to pull it out versus needing to open and shut the display. The cameras are behind the time because of the thinness of the mechanism. The hinge makes the noise and you can feel the electronics. We will have to see this in longterm. At this point, it is very cool. I dont think the technology is quite there yet especially for 1500 but we will see where the future goes. Taylor that was mark gurman. An unlikely duo. Making changes by activist investor paul singer. Bloomberg technology is trimming on twitter. Check us out at technology and follow our global breaking news onwork at quick take twitter. This is bloomberg. Sometimes your small screen is your big screen. And with the Xfinity Stream app, which is free with your service, you can take a spin through on demand shows, or stream live tv. Download your dvrd shows and movies on the fly. Even record from right where you are. Whether youre travelling around the country or around the house, keep what you watch with you. Download the Xfinity Stream app and watch all the shows you love. Welcome back to the best of bloomberg technology. I am taylor riggs in for emily chang. We had more tech earnings out including alibaba on thursday. While revenue beat estimates, the cfo said revenue and growth for the Current Quarter will be negatively impacted by the coronavirus. The epidemic has already caused significant delivery delays for the chinese tech giant. Paul allen and i spoke with john freeman. My takeaways were that it was a pretty good quarter. In terms of revenue growth, it was higherthanexpected at 38 . User growth was particularly impressive. 60 of the new users coming from the rural areas. There were a couple of hundred more users that could join their. Re. The story is really about the coronavirus and what that is going to do to Overall Economic growth. To whatng to degree that will impact their revenue and earnings going forward. Harry, i wouldt, like to bring you in. Willng forward, maggie saying the overall revenue will be negatively impacted. How negatively . They did say negatively impacted. Probably low to mid single digits. The main reason as to why revenue is impacted is first, they are seeing a lot of supply dislocation. Movement ofot of goods and people being difficult. Second, there supporting the infrastructure in terms of remedial effe