Spender. We breakdown numbers from facebook. And tictoc with digital ad dollars producing eyepopping numbers. We will do deeper. But first, the spread of the coronavirus rattled Global Financial markets, bringing them to their lowest level since the financial crisis more than a decade ago. Reporter thats right. Stocks with the worst week since 2008. It started as we saw the coronavirus fears really take over. As we see more investors repatriate their money pulling out of the u. S. Haven assets, of big difference at the close, with the nasdaq turning positive. Tag as a lastminute tech bid for the nasdaq, if you can believe it. Bank stocks have been driving the market, as we see. A big hitter i want to Pay Attention to is apple, apple up us the ceo coming out and saying the coronavirus should not make a huge difference in terms of moving supply chain, but still reading concerned about revenue guidance. This. A divergence from we have seen this as the supply chain really gets hit in south korea and china. But actually seeing it turned positive today as we see the investors high had the weekend. Kurt . Kurt that was bloombergs pretty good debt. Will you see schools shut down . Probably. Will you see impacts on Public Transportation question mark sure. But we know how to do this. Oft these comments out the conservative political conference today. David, give us a sense of where we are, particularly in the state of california. You heard that announcement about schools. Whats happening in california you echoed david we have quite a lot of people in california being monitored is having the virus, but not showing signs. 8000 people across the state scattered across 50 different jurisdictions. In case of confirmed cases we have only had 33 and almost all of those have been people where we know pretty much how they got the virus. So far we only have one where we dont know where she got the virus from. But still very troubling to everybody. It is circulating somewhere and were not sure how widespread it might the. What about kurt what about getting test kits out to people . David that has been a real bone of contention. We had just 200 test kits and the state yesterday according to governor gavin newsom. He had just been on the phone with the cdc, which was promising to send more, but i know one of my colleagues was and found marin county did not have any. San francisco did not have any. Its extremely limited now. Kurt earlier this week there was a mystery case in california where someone contracted the virus and it was no real clear answer as to how. Do we have an answer . David she is still in the uc davis medical center. As far as we know, there is no update on her condition. The state is trying to track down every Single Person she may have come in contact with and the federal government is sending out people to help with that tracing effort. But theres no obvious way she got it. It she did not travel anywhere in particular. The one thing people are we haveg a lot about seen the whistleblower out of washington where someone from federal health and Human Services agency was complaining the air force base in the county where this woman lived at federal workers going in and out of quarantine areas without training and might have gone in public. Youve got to wonder about that, evidencer theres no how this woman got it. Kurt thank you for tracking that. That was bloombergs david baker. If you want to stay with us on our coverage, the effect of the coronavirus on the Tech Industry, we have our executive editor tom giles. Tom, this is a global issue but it feels like its particularly important to be Tech Industry. Why is that . Tom tom you have to look at a couple different levels. The Tech Industry is so intertwined with the supply chain. World. S the apple of the they are intertwined with china where this originated. We see them issuing warnings. Now things seem to be slowing down. Now what is happening, you are seeing this in other places of the world, korea, japan, italy, l part of apples supply ch things brightening a little bit there, there are other parts of the world where the supply chain will be affected. Is the former ceo of google europe, what should Tech Companies be doing to make sure their businesses are safe . This is being quite visible the last few days. Example, a mobile conference has been canceled. The Development Conference has been canceled. Canceled, and then a lot of contingency playing. There is news on both sides of the atlantic. And theres a lot in the market to be honest there will be winners and losers here, not just losers. Theres a lot of contingency planning. Europe, italy, everywhere else is pretty confused, i think is how it works. Ben mentioned those conferences. You have been to them. I have been to them. What if they dont happen yet go is this a big deal for these companies . Tom no one was to be the company or the organizer who let the organize you let the conference go ahead and the in that context. You bring a lot of people together from that part of the. Orld, which is always the case the list goes on and on and on. No one wants to be responsible for that. The Tech Industry has a way of getting its message out there, communicating with developers, announcing products in a way that does not have as much pizzazz. There is going to be less splash around it. Theres going to be a hubbub. Thats the reality we will deal with in the near term. You do not want to raise panic. At the same time, no one wants to be left holding the bag. If it ends up being a place where the virus spreads. Kurt yeah, not really worth the risk. This may be obvious or maybe it seems obvious to me, but when i think about who will withstand Something Like this, i think about the facebooks and the googles of the world, they have built a supply chain. Can you give his opinion on who is best positioned to withstand this . Ben absolutely. Theres a double bucket of companies that will do better and do well. Companies that have home delivery, home entertainment. One of the biggest changes in Consumer Behavior that is going to happen if you think about communication, what people will do more off, they are working from home. If you think about home entertainment, the disney subscriber service, spotify, youtube, if you think about home , there is delivery etc. , so to me, theres the delivery bucket which will add extra points for a company like google and facebook. They have joined right on time. They also have less to lose in the mobile china market. If you can expand a little on the streaming services, that seems like an Obvious Group of companies that might benefit as people are spending more time at home. Do you have any sense of what they are doing to prepare . Do they need to do anything to prepare . Just keep the lights on . Potentially, do more marketing. Making sure they can cope with increased demand. That would probably be the big to do they might roll out awareness plans for or services that were borderline cases. But certainly, im sure theres a lot of people, customers, potential customers out there who might have been on the fence about getting a new service. They might invest there. Tom, we were talking to david baker before you came on about how this is impacting the u. S. Matter of when, not a matter of if. Do you feel like Silicon Valley is prepared if this becomes a widespread issue in california . Tom i think in california . Tom i think a lot of companies in the tech Center Amazon today talked about how they are putting limits on nonessential travel even in the u. S. For their employees. I think a lot of companies have contingency plans in place where workers cannot do their jobs from home. You can program from home. You can contribute to the front projects from all over the world and that is something they have already been able to do. My colleague talked about conferencing. The technology is at a Place NetworkCompanies Like ours can get by in a situation where a lot of people are working from home and that certainly the case for people working in Silicon Valley. Round,e services that, the transportation. I discovered for my kids school today we are not telling anyone to stay home unless they feel well, but we are making plans for that. Kurt right. This will not be the last we talk about the coronavirus. Egg, tom giles, thank you for joining us. Coming up, how the president is differentiating himself from democrats online. We look at how facebook is shaping the election. That is next. As we mentioned, the s p 500 has tumbled 11 in the worst week since the financial crisis. We will stay on the markets throughout the hour. This is bloomberg. Kurt a quick glance at the Facebook Ad Library shows donald trump is spending big. Hes not the top spender, but he is dropping almost as much as Michael Bloomberg, the majority owner of our parent company. Theres another advantage the president has sheer volume. Between may 2018 in january of this year, trump ran to hundred 86,000 ads, nearly 25 more than the entire democratic field. To discuss this, we have jessica alter in miami and in washington , rebecca. Jessica, i would love to start with you. You normally focus more on democratic campaigns. You guys actually help some democrats with your campaigns, but here you are focusing on a republican, President Trump. What did you find in this research . Our actual apparatus helps democratic campaigns. But we research all campaigns to understand what is going on and what we found in looking at facebook and google at archives is trumps digital operation is much more sophisticated and integrated than any democrat other than Michael Bloomberg and his operation really just ramped up in the last few months. Orfound he has run 58,000 variations of ads which is a proxy for how committed you are testingge testing ,a b and he is justine rolling all democrats except bloomberg on that. Kurt im just going to ask, what is the real and if it of being able to test all these different messages . You really can tailor a message to a specific group. Is it just that . Or is there something that is a Real Advantage having that volume of ads . Yeah, its not just about targeting. Its learning about what works and what doesnt and being able to use that. Not only in your ads, but to feed it into other parts of your campaign. Whether that is male or tv or a slogan or whether you are doorknocking. Thats another thing he benefits from. We looked at what candidates are asking for in their ads. Bernie and pete are asking for money 60 of the time. Some ask for money 25 of the time. The rest of the time hes collecting information from voters on who they are and what they like and he is using it to take the conversation off of google. He really has sophisticated voter collection operation going on. And because his digital is more sophisticated, it makes his whole campaign better. Rebecca, i want to bring you in here. As the incumbent, president gets to play on a different field. How do you think the fact that he is seeking reelection versus competing with others in the primary, how does that change the game for him . A couple different ways when you can impair his campaign to the democrats. He has been building a Digital Campaign and relationship with the different platforms for Digital Advertising since 2016. Yes the longterm advantage of learning how this works. The democratic challengers are also in the middle of a much bigger fight among themselves at the moment. They are going to have to figure will gain the resources. They have to be focused much more on fundraising and the and that constitutes another major, major damage for the trump cap in. Kurt when i think of the ads cant help buti think about the one that he ran against joe biden months ago that some said was factually inaccurate. You think he is pushing the envelope of what is allowed . Is this this date of play for politics . State of play for politics . Much more moving towards the normal, the state of play, but in many ways the Term Campaign was first mover. The Term Campaign has shown a willingness to push boundaries, to break norms that were built over decades in Traditional Campaign practices on television and radio and so on. The Digital Space is relatively new overall. Weve been talking about this since 2008. Still the candidates are figuring out what works in the space and they are basing their assumptions broadly on decades past, but the Trump Campaign showed its willingness to break norms, push boundaries and we see other candidates following suit. Trump has certainly been first actor in this area. Jessica, my colleague josh wrote about some of this data it yesterday or actually this morning i should say. Part of what came out, Mike Bloomberg and President Trump are advertising in a way that often you would see from a big company, not necessarily a. Olitician can you talk about how they are tailoring their relationship other than other candidates . I do not think its a quincy events that bloomberg and trump come from the commercial world and are the ones doing it differently. There is less pressure on trump to fund raise. Thats only part of the explanation. There is a problem in the Democratic Party with using digital for anything other than an atm. Trump and bloomberg are sort of this is howby the we do it in politics viewpoints, so they have taken on the way the tactic is used in the commercial world. Or bloomberg is doing is crazy or second guesses what the commercial world is using. The just confusing nontrump, nonbloomberg campaigns. The other thing i would add is theres nothing happening down ballot that is more sophisticated than the president ial campaign. So, 2020 is not just a president ial year. That is incredibly important, senate is line, the redistricting, which the state legislatures will decide and we have to be able to ring the alarm bell and say weve got to change something if we want to win. Kurt thank you. That was jessica alter and rebecca trumbull. For being your. Still to come, the s p 500 of the longest slide since 2016. The dow jones also in the red while the nasdaq ended higher your this is bloomberg. At lets take at look at other tech headlines. Dells rough it dell must be as profit forecasts came up short. They did project that resources would rebound. The Company Also Announced plans for a billiondollar stock buyback. The federal medications commission was to find the major own companies for improperly disclosing realtime locations of customers. Tmobile would face the day gift fine of 91 million dollars. The carriers, which include at t, verizon, and sprint will object to the proposed penalty. Possibledata makes it to identify the whereabouts of any school any phone in the United States. Ontiktop, advertising security risk. This is bloomberg. Awesome internet. Its more than just fast. It keeps all your devices running smoothly. With builtin security that protects your kids. No matter what theyre up to. It protects your info. And gives you 24 7 peace of mind. That if its connected, its protected. Even that that petcamera thingy. [ whines ] can your internet do that . Xfinity xfi can because its. Simple, easy, awesome. [ barking ] this is bloomberg technology. Im kurt wagner in for emily chang. We have breaking news regarding the coronavirus. The u. S. Telling citizens to consider avoiding travel to italy. Italy reported its first cases of the virus this week. U. S. Stocks have seen their worst week since the 2008 crisis as the spread of the virus rattles markets. President trump just spoke on the virus and the fed involvement. I hope the fed gets involved. Not a big fan of the fed, you know that. Involvede the fed gets and i hope they get involved soon. Countries, at other they are all putting in a lot of money. But that is up to them. They are independent. Kurt despite the s p and the dow staying in the red, there is one sector showing a rebound. Semiconductors. Some of the names that finished macron, amd,vidia, and more. Here to explain is our own ian king. What is happening here . Fundamentally, if you believe in the way that technology normally works, you are buying companies that are going to come back, where the fundamentals are the strongest. If you believe in ai, in the cloud, in self driving cars, then you think these chips are going to be the main beneficiaries of that. You buy these before you are expecting to see a return on them. Kurt the Semiconductor Industry was on a tear until last week when the coronavirus hit the markets. What was going well for that industry before all of this happened . Ian really good question. On a fundamental level, not a lot. They were dealing with inventory, production issues, so there was nothing there in terms of the earnings that was driving those gains, even though five out of the top 10 performers on the s p 500 last year were chip stocks. Of, ifack to that sense you really believe in these megatrends, if ai is going to take over computing, something has to power that and that has to be semiconductors. Kurt it still feels a little surprising to me. It seems like the Semiconductor Industry would be more vulnerable to this discussion around trade with china. Why do you think it was able to kind of despite all that contentious discussion . Ian this has been a debate amongst investors and analysts, and clearly those who believe in the scenario have been winning, but absolutely right. Trade, china is the biggest market for the u. S. Semiconductor industry. A large percentage of chips go through china on their way to other places. Chip industry has a huge amount to lose in trade. Any disruption of the chinese , the largest market for smartphones, is going to be really ba