And global domination. Tesla is one step closer to opening a massive factory in europe Winning Court approval where it eventually plans to make 500,000 cars a year. U. S. Stocks sank friday amidst renewed concerns over the coronavirus. Tech Companies Hit hard. With more, i want to get to taylor riggs in the newsroom. What happened . Taylor the s p 500 was off about 1 . Of thearing the brunt losses, off 2 . Apple and alibaba off 3 . Investors are pulling their chips off the table heading into the weekend with the nervousness we are seeing about the coronavirus. Teche last five days, clearly the worst performer off about 2 or double what the s p 500 lost this week. The tech sector losses led by nvidia. They get 1 4 of their revenue from china. I want to put the losses into perspective. Losses for chipmakers were off three pointer percent. For the day, 3 . Worsthardly one of the days they have had. A bad week, but we have had worse. Investors did not want to go into the weekend with a lot of risk assets in the portfolio. Emily thank you. While his democratic rivals are fighting to secure endorsements and delegates, President Trump has nailed a coveted election prize, advertising on youtubes homepage. Trumps campaign ads will take over the masthead on election day and in the immediate runup. Think of it as a Super Bowl Ad that will hit a wide swath of people at exactly the right time. We are joined by an advocate and social influencer. How big of a deal is getting the youtube masthead on election day given there are other ad opportunities, but this is a big one. This is absolutely a significant development. This is the Trump Campaign taking advantage of their resources to put money down early to secure very valuable real estate online trade it also demonstrates a way that campaigns are trying more and more to reach people online. Broadcast tv and radio are not reaching as many people as in elections past so they are turning over every rock on the internet to be able to go where the people are. A lot of people are going to be on youtube in the days up to election day. Emily to give you an idea of how competitive this is, president obama bought the youtubes masthead in 2012 before mitt romney even became the republican nominee. The democrats are still battling it out for the nomination. A fairly, no one is thinking that far ahead even though they have been somewhat innovative themselves what does this mean . I think you characterized it as Super Bowl Advertising. It is the perfect way to think about it. Getting 60 Million People tuning in at once, that opportunity is so much harder to do across facebook and twitter and other social channels all at once. Emily michael, lets talk about the other avenues. We have seen the rise of sponsored content where you have president ial candidates paying social influencers to talk about them. Michael bloomberg being one of them. There are other ways to reach seem to becandidates learning and trying new things every day. How does youtube stand out against all these other opportunities . That is absolutely right. Candidates are trying to innovate online because that is where so many people are spending so many hours of their day. This election, we are seeing ads on youtube, facebook, google. We are also seeing ads within streaming Services Like hulu were people getting political ads within apps. Candidates are leaving no stone unturned. It comes down to how much money they have to experiment and try to do something. This youtube masthead ad could have been purchased by any candidate or Political Group. But here, President Trump is making a powerplay reserving an early while the democrats are still fighting about who the nominee on their side of the hour will be. No other Political Group came in this early to scoop that up so his campaign has. Trumps sat down with Campaign Manager and 2018. He was talking even back then about the power of youtube, which was sort of ironic given there was this controversy about facebook potentially helping donald trump in the election. Listen to what he told me and 2018. Watching four hours of facebook this year. That will change. I think youtube and google continues to work on the platform to make improvements. What google has done with the search grew them to put youtube results at the top, they understand the value of the platform. Now more than we did in 2016. The Democratic Candidates paid attention to that interview, with they would not be in this position. Lets talk about the rise of sponsored content, the other innovations we are seeing that giving bigersial and tech big headaches because they do not have know how to police it. What is next . I think what you saw with the recent instagram sponsored content coming out is interesting because you are messagesed memes and by sponsors. This is the first time a president ial candidate has gone to influencers to leverage their audiences to target the younger demographic. Emily it seems almost obvious. Why didnt someone else think of this . For years ago, i feel the candidates were experimenting with it. Today, you are looking at people spending 1 million a day on facebook advertising. That is what top advertisers are doing on their own. You are seeing through value true value. Emily you are campaigning for campaignfinance reform. Have you think this kind of advertising should be policed how do you think this kind of advertising should be policed . We want to make sure there is transparency when it comes to who is sponsoring as on the internet. Onht now if you run an ad radio or television, there is a certain amount of information you as a viewer can see about who sponsored that group. Those context clues are important to help people assess the messenger and message they are seeing in ads. Right now, the internet is the wild west. The rules for political ads online are vastly different from the rules for broadcast television and radio. Each company right now, whether it is facebook, google, or twitter, they are each setting their own rules about what they want to share with the public about who is running ads, who those ads are targeting, how much those ads cost, and whether you as a general member of the public can even see those ads or whether only people who are microtargeted are seeing those ads. This is a place where congress could step in and set uniform standards so everyone plays by the same rules and the public can assess the ads. Emily i want to jump in because youtube considered not having any advertising on the masthead on election day and instead putting up a banner encouraging people to vote. Today have done that instead should they have done that instead . Ads in onlineal spaces are here to stay. We are very much in favor of making sure people are getting informed about voting, making sure candidates are sharing information in a way that there is transparency and accountability. Right now, there is no uniform standards for each of these platforms when it comes to disclosing who is sponsoring the ads. And that is where we see the the room for congress or federal Election Commission in washington, d. C. , to step in. Emily well, a story that will continue to evolve as the race for the democratic nomination gets more bloody. Thank you both for joining us. Coming up, the coronavirus continues to impact the global workers inacting places where the fallout continues. That is next. This is bloomberg. Sharesaltria group dipped friday after a report in the wall street journal said an investigation into the 12. 8 billion investment into juul. They are probing whether altria adequately disclosed. They valued the start up at about 38 billion. It has gone down amid new restrictions on juuls business. What do we know . We know the sec is investigating whether al the adequately disclosed risk to investors. The investment has been a headache for altria. It has not been cleared by the ftc. Litigation risk is affecting altria. The risk has include about 80 since october. This is just the latest headache for altria. Emily what does this mean for juul . It is just another headache. They have been under an immense amount of pressure. This is just another possible product problem for them. Probes playo these out generally . What do we expect is happening now behind the scenes . That is a good question. The wall street journal reported both companies have been sent subpoenas and have responded. How this plays out, we will have to see. Emily we will continue to cover that story. The sec opening a probe into altrias investment into juul. Thank you so much for joining us. The number of americans infected by the coronavirus has risen to 34 according to the centers for Disease Control which says that number is likely to rise. Most of those infected are among hundreds of americans evacuated by the u. S. State department from wuhan, china, the epicenter of the outbreak on a cruise ship docked in japan. They are quarantined in four military bases across the United States. It has forced the cancellation of global events. Joining us to discuss the impact this is having on companies and the workplaces, Brandon Morgan morgan, an attorney. Technology has perhaps dampened the impact the virus might have had, enabling people to work from home. Some of our colleagues have been able to continue to work from home despite the crisis. What impact are you seeing on work and the workplace . Thank you very much for having me. First and foremost, this is something businesses and employers are focused on right now. They are talking about what needs to be done stateside to keep their workplaces safe from a prevention perspective and also from an Employment Policy perspective, what types of policies may need to change given the unique nature of the situation. We are seeing a lot of employers readdressing policies regarding leave and sick days and you are right. The technological advances have afforded a lot of different types of businesses the ability to do that. A lot of guidance from the cdc speaks to separating employees exhibiting signs of respiratory issues, advising those employees with symptoms to stay home. Employers are having to navigate those best practices and balance them with their employment policies. Sometimes, you have to flex the policy. Emily there is the point where the outbreak is exploding. Everybody sends people home from work. Now we are a few weeks into that, and nobody knows if it will get worse before it gets better. Workplaces dealing with that kind of uncertainty . It is hard. There are not easy answers from a legal perspective or from any perspective. The thing we counsel employers is toat the outset communicate with your workforce, number one. And number two, have an actual plan in place. Companies should get the ,takeholders together upperlevel management, they need to review the osha guidelines and the cdc guidelines and formulate a plan for how they will keep their workplace safe, how they will train employees, and deal with the hysteria and fear which is understandable. It is a scary thing. It is so widely reported. It is something a lot of employees are expressing concern about. The key for employers is to communicate with your workforce, listen to them. If your workforce is expressing concerns, fears, listening and addressing and adapting to what your employees have to say. The bottom line is communicate and let the employees know that you are doing things to keep them safe. Emily thank you for communicating that with us. Brendan horgan of eckert seamans, thank you for joining us. Coming up, is it 1999 all over again . We will talk about why big tech may not be the reason markets have been overheated. Bloomberg technology is Live Streaming on twitter. Be sure to follow quicktake on twitter. This is bloomberg. Emily the u. S. Justice department has tapped an outside law firm to help with the antitrust investigation of tech giants from facebook to google. It is a sign the government may be preparing a lawsuit against one or more of the companies. David, what does this mean . TurnedJustice Department to a law firm based in d. C. , approached them about working on this investigation of the tech companies. That firm had a conflict, according to the people we spoke with, so they could not do it. It is not clear whether d. O. J. Is talking to other firms. The approach to an outside firm is pretty significant and signals that potentially d. O. J. Is getting ready to go to court because in some past antitrust fights, most notably in microsoft 20 years ago which was a huge antitrust case, they who is an outside lawyer quite famous. Is that to say this is very unusual . In is pretty unusual. Microsoft is one example. They did it in a merger case about 10 years ago. That was at ts the department of justices case against at t when a treaty at t tried to buy tmobile. When the Justice Department or ftc brings cases to stop mergers, they use their own law firms. Notableosoft case was bo when d. O. J. Hired david ise. In general, they use their own lawyers. They may turn to other law firms when they need Additional Resources which could be the case here. Emily the firm they spoke to, calluphanson, kellogghanson, does that give us any clues as to what kind of help the d. O. J. Needs . That firm is generally known for its work on litigation matters. They are not a huge firm. They are not huge firm that might be as wellknown in legal circles. It is the firmware Supreme CourtJustice Neil Gorsuch first work before he was nominated to the Supreme Court. We dont know whether the Justice Department has talked to other law firms about doing this work. I think a little more work needs to be done to find out exactly what this means. Emily give us the latest on the investigation. Attorney general barr said this investigation would move very quickly. Do we know how quickly, how soon could we see some actual action here . He talked in december about getting this done sometime this lift which would be a big because this is potentially a very sprawling investigation. We know the Justice Department is looking at google and facebook, potentially other companies. In the google case, based on our reporting reporting by other news organizations, the Justice Department is bearing down on googles Digital Advertising business, which is very complicated. We dont know as much about the facebook investigation. Getting it done in a year according to some lawyers is hasty ambitious, but barr expressed support for not having this draghi out for a very long time drag out for a very long time. Meanwhile, you have a lot of states investigating both companies. As i came on the air today, there was news the Texas Attorney general reached a settlement with google about texas use of these consultants that google has opposed. That case is also advancing. Emily interesting. Lots of competing probes. The d. O. J. , the ftc, the states. A lot for you to keep us apprised of. Thank you for joining us. , a social app sensation. We are talked about the next facebook for years. That may be increasingly unlikely. That conversation is ahead. This is bloomberg. Emily this is bloomberg technology. I am emily chang in san francisco. Including microsoft have earned their returns by outperforming expectations the last five years. What can they keep the momentum going, and if not, what does that mean for the next five years . Lets do a deep dive on this very question. First of all, lets talk about the last five years. Obviously, big tech has been on a roll. Why . If you look at the multiple evaluation, it always looks five it but we believe multiples dont tell the whole story. Interestingly, the expectation was for amazon to deliver about 22 billion in ebitda. In reality they are on track to deliver 50 billion. Same we are seeing across microsoft. Did were seeing is why outperformance happen . It happened because we underestimated aws, what the Logistics Program can do, things like that. From that point of view, from that lens, they have earned their outperformance in the stoxstocks as well. Emily have we then, the proverbial we, learned our lesson, or will we continued to overestimate the performance the next five years . Jitendra quick question. Ifthe reality is bettergreat question. If the reality is better than perception, the stoxx will their high valuation. Growth 17 Growth Expectation for profit. I think the advertising segment is not baked in here. Google is going to be youtube and cloud, and surprisingly facebook is bottom of the list. Expectations are 12 to 13 growth. Regulations have weighed on expectations. If they diversify into more into. Diversify awa content, they could have outperformance there. Diversification will be the were to watch the next five years. Emily were talking about six different committees, although we lump them all into the bang acronym. Which is most a t risk of not outperforming expectations . Jitendra that is a good question. Nearterm there is risk for all of them. All of the uncertainty around ise coronavirus impact, it not captured in expectations yet. Longer term, if you look at amazon, amazons expectations are the highest. They can deliver on the 17 to 1 8 expectation. Outperforming them significantly, as they did the last five years, that is going to be challenging. Advertising can help marginal outperformance, but the aws division draws the fiveyear outperformance moving forward. They have to compete in this market. They grow at a healthy clip, but the surprise is that the reality is better than perception will have to come from advertising. Emily Great Research there. Thank you so much for that analysis. Countless socialmedia startups since the dawn of facebook have struggled with shortlived popularity. Vine, and was, recently hq trivia. Hq trivia shut down almost as quickly as they went viral. Although we are always talking about the potential demise of facebook, no company, it seems, can become the next facebook. I feel like every year we are talking abou