Patient without any of the ties to china had been diagnosed. That is a first. It is a suggestion this virus might be in wider circulation. The test that has been out there, they have not been able to get this working in many places. The cdc will allow it to be modified so more state and local Public Health labs can do that type of work when someone has symptoms that might be this virus. You want to start doing that brought surveillance, looking for patient you might not find otherwise. David we saw china their methodology two or three times. Is there any chance the change could get false positives and contaminate the data . Drew the worry with tests like this is you want to be accurate. You want to know that when you say someone has a disease, they do have it. The way the current test works is it looks at the genetic material of the virus and tested three different ways. If all three of those are positive, that is a positive test. You can take down the number of steps. You may lose some accuracy in doing so. You remember milder forms of coronavirus can cause a common cold. We have seen many forms of this thing. You do not want to start getting false positives. What they are saying with this case is we need to start doing this type of work and potentially flag more of these people. If you loosen the criteria of the tests, use two criteria instead of three and try to get the surveillance working more effectively. David we heard from President Trump yesterday in a News Conference where he seemed to be downplaying the risks, saying it was fairly modest. At the same time the cdc says it is a great rest. Is there a true difference or is it just an emphasis . Drew one of the things important to remember is the risk to an individual person is low. There are a few cases. People who do get it, the rate of severe cases as small, the rate of fatalities is under 2 . As an individual disease, does not particularly scary. As a societal disease, it seems to be comparable with Something Like the flu, where you have tens of thousands of patients who may die of the disease, that is a meaningful impact. If you look at the broad impact on society, that is a plague we have to grapple with, we have just become normalized to it. David drew armstrong who reports on health care. Now we want to check in on the markets. Joining us is Abigail Doolittle. Abigail another down day. Official correction, down more than 10 . Right now we are off the lows. Investors searching for a bottom. What you want to see in a situation like this is a capitulation bottom. The old saying, take the stairs up, take the elevator down is true in this case. When you take the elevator down you need to see the capitulation bottom where all of the fear is washed out and the buyers coming quickly. It felt a little bit like that today but we have not seen the buying yet. You want to see it faster. Lets watch into the close. Volatility, you can have big down days and pick updates followed by big down days. Seems like there is more work to the downside to be done as investors grapple with what this will mean. David what else should we be looking at . Is it bonds . Is it the vix . Been watchingve the commodity complex, oil in particular. Less liquid, selling off well ahead of stocks. Investors using that is the indication of the global growth. We have also been watching the dow transports. 25 ,can airlines is down that is pretty extraordinary. If you start to see a bounce in the airlines, that may suggest investors think that Global Travel will be less stymied by the coronavirus. That could be a bottom. Drought dow transports well below its 200 day moving average. The s p 500 testing its 200 day moving average. Past history suggests the s p 500 could follow. It seems like there is more work to be done to the downside. All of it before the coronavirus does have some sort of a meaningful impact in the u. S. We are already seeing numbers cap, Global Economic growth cap, really impacting these markets. David thank you so much to Abigail Doolittle for that report on the markets. We want to turn to capitol hill and welcome senator mike braun, republican from indiana who serves on the Health Committee and the budget committee. You are in washington. We heard from President Trump late yesterday. What is your assessment about where we are with respect to the United States and the coronavirus . Most of us were briefed on tuesday and the topsecret meeting. To be honest i was impressed that from the department of fdaland security, cdc, nih, we are as prepared as any country can be. I think what has bothered me most is how it has been sensationalized in a political way. I believe we need to take this for what it is. I think it is going to be one of several instances we might confront over time. It will say do you have the infrastructure, do you have the institutions to deal with it. My real concern would be if i were the chinese government, where it all started, with the carnage economically and lives lost will be hard to measure, it has to have them really. In our case, we take it for what it is. Something that has a lot of unknown variables, but i believe we are as wellprepared as any country in the world to deal with it. It is shameful that Chuck Schumer does his shuffle like he does on many issues to politicize it. David as far as United States goes, as part of what you have seen, you believe we can contain it realistically. Sen. Braun we are going to be better at that than any country because we have the infrastructure to do it. So far, we have had very few cases outside of the cruise ship individuals, and thank goodness they are back in the homeland, but what has surprised me most, i guess it should not, ive been here over a year, any issue has a political angle put to it. I think what Chuck Schumer did in this case is shameful because he was not at the briefing on tuesday. He was out of the microphone or on the floor making statements to me that did not make sense. I think what the president has done, assigning Vice President pence as a point person for this , but mostly the institutions, the infrastructure we have in place lets us deal with this as good as any other place. Under the Trump Administration that infrastructure has been changed. There are some people who have not been replaced. Are you confident we have the people in place from the white house on down to the department of Homeland Security who can handle something if it does become more of an epidemic in the United States . Sen. Braun i do. Whenever you look at personnel changes that have been cited as may be making is not prepared. I think that has a Strong Political smell to it. Institutions i mentioned earlier have been around for a long time. That is where you will see the difference. On the other hand, this is unknown in terms of the extrapolation of what happens. I think we will get through it and i think in containing it and when it comes to the vaccine we are talking about, that will be done here. They are much quicker than what they used to be. We will all learn from it. Sadly, with the kind of economy we have now, we will have stuff like this originate in places that we will have to deal with down the road. This is a good heads up were us and the world to maybe sharpen our skills with it. We are talking to senator mike braun. I want to go to what you just pointed to, the supply chain issue. As a result of this, there are questions about the disruption of the supply chains out of china. Is it likely this will change our commercial relations around the world in the longerterm . Sen. Braun i think it definitely will. When you take what we have had to deal with with china, forced technology transfers, the ip issues, princi manipulation, creating these glut and dumping them, with tariffs, i think the president was correct, we would not have gotten their attention. This, along with the african swine fever on their pork supply, this is probably more devastating to china than any of what we grappled with to try to change their behavior. Yes, the companies that have gone deeply into china with their supply chains i am sure are looking at what they do to spread their egggs into other baskets, hedge their bets. That will be the true cost of the chinese. They will have a lot of soulsearching to do about how they react to it once we get through the hysteria of the moment. David you know business terribly well. What about the possible knock on effects in consumer confidence. There are some people that say thend the direct effects, American Consumer gets concerned and stop spending, it could hit our economy. Sen. Braun that is where i have more confidence. The consumer is savvy. They have been part of it as a consumer, with Household Incomes that have gone up 5,000 of family since trump has been here versus 1000 from the stretch from bush through obama. This economy is hotter than it has ever been. That is what has been driving the market. That is why i think we will get some of the market back. There will be real Economic Loss we will not get back, but i think the consumer knows this is an outlier. It is an aberration. ,onfidence in our country confidence in the infrastructure we have to get through it. They will be watchful, but it will not disrupt what has been set into place back in 2016 with the jobs and tax cut act. All of that is driving the economy better than any other place in the world. David senator, appreciate your time. That is senator mike braun, republican in indiana coming to us from capitol hill. We turn now to Mark Crumpton here with bloomberg first word news. Mark japan will close schools nationwide to help control the spread of the coronavirus. The government said all schools were remain shut until spring holidays begin in late march. The measure affects nearly 13 Million Students at 35,000 schools. Japan now has almost 900 cases of coronavirus, including 705 from a quarantined cruise ship. Russia wants its last remaining Nuclear Treaty with United States to be extended. Russia says there is no time t to negotiate any trading any changes to the new start treaty that expires in february 2021. Which was signed by president obama and Dmitry Medvedev limits each country to know more than 250 Nuclear Warheads and 750 deployed missiles and bombers. Demonstrators gathered for a fourth consecutive day on two greek islands to protest government plans to build new migrant detention centers. Lets post and geos lesbos a nd chios are the main entry points for people seeking better lives in the european union. Increased migrant flows have led to significant overcrowding. Nearly 60 600 pedestrians were killed in the United States in 2019, the highest number in 30 years. That is according to new reports by the governors Highway Safety association. One potential reason is cell phone use. The report says the number of devices in active use in the u. S. Has ballooned by more than 400 in the past 10 years. The report also says alcohol is also a major factor. About one third of pedestrians killed were legally drunk. Global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. I am Mark Crumpton. This is bloomberg. David . David two days until the South Carolina primary. We hear from expert from the college of charleston. That is professor jordan ragusa. That is next. This is balance of power on Bloomberg Television and radio. David this is balance of power on Bloomberg Television and radio. Two days until the South Carolina primary. A new pullout from Monmouth University shows former Vice President biden holds a substantial lead over his opponents, 20 points more than his next closest candidate, Bernie Sanders. We welcome associate professor and associates chair of Political Science at the college of houston, he is jordan ragusa. Are us a sense of where you in South Carolina looking forward to the democratic primary. Jordan this is certainly a key moment in the primary. We had the debate in charleston on tuesday and yesterday representative jim clyburn, the third ranking democrat in the house of representatives endorsed joe biden. As you mentioned, there is a new Monmouth University poll that shows joe biden in a commanding lead. If biden can parlay the endorsement and the good debate performance into saturday, he seems like he is the odds on favorite to win the South Carolina primary. Then the question becomes how does he do in the super tuesday states located largely in the south on march 3 . As you say, representative clyburns endorsement in the past has meant an awful lot to any democrat running. Is it still the case that the endorsement means that much, because there is some erosion of party discipline. Jordan one of the things we did in the book is look at endorsements over time, from 1988 to the present. What we find is they do matter. Candidates that do well securing endorsements prior to the primary get a noticeable bump in their performance on election day. Isn it comes to clyburn, he unique in a lot of ways. There is probably no other politician in this state on either side of the aisle that has his clout. It is why the candidates work so hard to secure clyburns endorsement. How much it matters is difficult to put an estimate on. That Monmouth University poll that just came out today, it was in the field at the time clyburn had endorsed. This biden 20 point lead does not even have clyburns endorsement factored in. We will not know until election day how much it is worth. There is no doubt it matters for a lot. Just professor ragusa referred to a book he has coauthored called first in the south why the South Carolina president ial primary matters. Let me ask about the primary in a different way. In the past, there been reports of dirty tricks in South Carolina. Some played on john mccain a few years back. This year we have reports about an ad taken out using president Barack Obamas voice in a way that appeared to disparage Vice President biden, something president obama denounced, ordered them to cease and desist. Is this a tradition in South Carolina . Jordan it does seem to be a tradition in South Carolina. One of the things people debate on this issue is whether it is something unique to the demographics or politics of South Carolina. That is not the case. I think South Carolina is in such a pivotal position on the calendar that it is make or break in ways iowa and New Hampshire are not. We still have a large field for the democratic nomination. We do not have a republican contest this year. There are a few candidates whose survival depends upon a good performance in South Carolina. I think that incentivizes them to go dirty. That is something we have seen in past contests. It is something we will see in future contest. David i am also curious about the polling. There up some instances in the past where particularly Democratic Candidates have done much better than the polls indicated. Some suggest they may underreport older africanamerican voters. Jordan i am not seeing any hard data on whether that is the case were not, but it certainly seems like it would be true. The larger thing is that primaries and caucuses are very fluid environments. In general elections, we have reliable data on how people will vote. We can better estimate things like turnout, which is much higher in the general election than it is in a primary, and partner ideas is such a strong factor in general elections. Since all of the people are democrats, you do not have the party id to distinguish between the candidates. The bigger thing is that primaries and caucuses are fluid. A lot of voters are still making up their minds. There is a reason why strong debate performances matter so much. There is a reason why endorsements matter. There is a reason why Media Attention is such a critical component to the campaign. David thank you so much for your time. That is professor jordan ragusa of the college of charleston. That is professor jordan ragusa of the college of charleston. Still ahead, we are continuing to cover markets. Stocks are sliding but are now well off their lows of the day. This is balance of power on Bloomberg Television and radio. David this is balance of power on Bloomberg Television radio. Getting back to the markets, stocks are falling for the sixth consecutive day. Kailey leinz is joining me with more. It seems they are off up from where they were. A little better. Kailey if youre an equity investor, that is good news. 1. 5 for alldown of the major averages. We are flirting with correction territory for the s p and the dow. His toe not pretty. Youre