And no refunds. Hotels and airlines might be refunding trips, but many airbnb customers may be out of luck. We have the details. We begin with the volatile state of the markets and the Global Economy as the coronavirus outbreak widens. Italy went into a nationwide lockdown, u. S. Virus cases spiked, and the dow the market plunged. The Dow Jones Industrial complex entered a bear market wednesday, the s p tumbling into bear market territory thursday after President Trump took to the airwaves, announcing a ban on travel from europe. Pres. Trump to keep new cases from entering our shores, we will be suspending all travel from europe to the United States for the next 30 days. The new rules will go into effect friday at midnight. Emily in tech, the forecast on how much Companies Like apple, amazon, google, and facebook would lose in a downturn, and uber and lyft shares fell on the reality that customers are sheltering in place. I asked Wedbush Securities dan ives for his take on the volatility. Dan you need to put a goalpost around in terms of demand. The street has written off the march quarter. What does normalized demand look like june, september, december . So when i look at the core names, a lot of the faang names, to me, we continue to believe these are buying opportunities and you navigate the volatility. I view it as you look upon, you know, what are normalized spending environments going to be, and even if you stress test the models in terms of an economic downturn, right here, you buy apple and you buy microsoft. Emily uber down 10 , lyft down 12 . These are names you think might benefit if people dont want to take public transport. How bad is it for them . Dan you have to separate the risk profile. I look at names like microsoft, apple, some of the cloud. Cybersecurity names. I have used golden opportunities for the next two or three years. When you look at uber and lyft, right now guilty until proven innocent stocks given global posed global travel, obviously that will continue to e get gutpunched across the board. They came out and said it they said that they have not seen any changes. Those are still going to be volatile names. In the near term theres no floor in terms of their stocks will go. Emily is there any specific name you are particularly worried about . We can look out to june, out to the fall, but we do not know what is going to be happening at that point. Dan yeah, i think that is why when you look at, lets say security, like cybersecurity, you have to separate out some of what i view as the nonessential purchases versus what you need to spend on. You know, when i look at names in cybersecurity, those names that to us are essentially in a stress test model. You look at nonessential purchases, especially these private companies maybe that are going to struggle, i think it will form what i believe will be a surge of m a across cloud and tech over the next three to six months given some of the valuations we are seeing. Emily where are we going to see that m a . And are people going to be making big buys right now . Dan i firmly believe if we sit here four to six weeks from now we have already seen a handful of m a. Because right now in terms of corporates, look at microsoft, google, gcp, ibm, you go across the board, adobe. Right now they are continuing to look to expand their cloud empire. And if you look at the private and public side, a lot of these stocks that are down 30 , 40 , 50 , look at the valuations. That is why i believe strategic as well as financial buyers are going to be putting in the floor of software over the coming months. Emily wedbush analyst dan ives there. According to bloomberg, the impact the coronavirus on advertising demand could drive first half revenue losses of over 3 billion for google and 2 billion for facebook. And despite the frenzy to buy Hand Sanitizer and bleach wipes online, even amazon profit estimates are at risk. For more, i spoke to Bloomberg Intelligences Jitendra Waral wednesday. Jitendra we look at it from two lenses. One is the impact we have seen on the internet sector. January and february was none. So whatever impact china saw, we are going to see a delayed effect hit in q2. That comes from two angles. You talked about travel. It presents an exposure for the industry in general. It takes a chunk out of that, but also if you look at countryspecific. What does the italian quarantine mean, for example, for these countries and how much Revenue Companies and how much revenue they derive . As these concerns spread outside of china, u. S. , the u. K. , germany, france, italy, these countries account for a majority of revenues for these companies and is that is why we feel a pullback coming from key verticals and Key Countries can lead to the u. S. Companies seeing what the Chinese Companies saw in 1q. The u. S. Impact would be in q2. Emily lets talk about amazon. People are flocking to amazon to get Hand Sanitizer and bleach wipes. That is driving a lot of business. On the other hand, amazon is the epicenter of the u. S. Coronavirus outbreak. They just closed seattle area public schools. They are fighting counterfeit, they are fighting price gouging. People are worrying about getting coronavirus from their amazon prime packages. What does this mean for amazon . Jitendra a lot of uncertainty on that front. If you actually look at the Distribution Centers in the u. S. , there is a high concentration in california, the tristate area, and seattle. But we have not yet seen the impact coming through the supply chain. The fedex report next week will give give us good insight. When supply chain gets overwhelmed, costs tend to rise. And what that all means is eventually, you know you also have to pay for employees when they cannot show up to work and things look that. The sum total of this is they are unlikely to meet profit expectations for this year. So what we see happening is expectations for the entire sector really gets probably a reset around april, the end of april in the report, and that reset then sort of gives them the room for outperformance in the second half if we see the developments for the rest of the world follow what china did in the last two months. Emily that was Bloomberg Intelligence reporter Jitendra Waral. Malicious hackers are now trying to exploit fears of the coronavirus outbreak. We hear from a cybersecurity expert, next. And if you like bloomberg news, check us out on the radio. Listen to us on the bloomberg app, bloomberg. Com, and in the u. S. On sirius xm. This is bloomberg. Emily as the coronavirus continues to spread, hackers are trying to seize the moment. Cybersecurity firms have reported surges of phishing attacks and domain name buys related to the virus. The key being malicious actors preying upon peoples fears to pretend to sell masks or sanitizers in an email to trick folks into routing them their Bank Account Numbers or other important information. For more, i spoke to a Senior Vice President at a cybersecurity firm, iron net , wednesday. What you have is a series of capable actors, both nation states and come in all criminal groups who are , looking to use the coronavirus epidemic to spread malware. Get into peoples email, because they are interested in clicking on things about the coronavirus, and establishing a longterm foothold, or establishing distributing ransomware or the like in this current environment. Emily talk to us about the threat level in cyberspace, given what is happening, the uncertainty, so many people working from home. Is there a threat to our National Security right now . Jamil i think there is. As we know, emily, there has been a longterm threat from intellectual property theft, targeting critical infrastructure, and as people start to work from home, a lot more of the economy depends on highly secured cyber infrastructure. That is what we are utilizing now to conduct our daytoday business more and more, even more the case in this environment. People recognize this is a situation, and criminal actors are starting to exploit this capability. We will see what nationstates do going forward, but we know they are going to use longterm hooks. Emily what are companies and individuals supposed to do if they are working from home . They maybe do not have all the security protocols. Jamil one of the keys for companies is to use vpns. For individuals, you can buy vpn software and at least your information is secure. It is encrypted over a tunnel. You can also use the latest in behavioral Threat Detection to protect your networks if you are a company. Part of this is Companies Working with one another, Industries Working with one posture to defend against these threats as we enter this new environment where we are all working from home, and recognizing this is just how it may be for at least a while to come. Emily you were at the rsa security conference in San Francisco a couple weeks ago, the same conference that now three people attended and have now tested positive for covid19. One of those folks is sadly in a medicalinduced coma. This is a huge gathering for your industry. You were there. I am curious how this is impacting folks in your industry right now. Jamil sure. People are taking wise precautions. There were 36,000 people at the conference. Only a handful apparently have this issue. The concern is you do not want it spreading, you do not want to be a point of spread. So a lot of people are working from home. We have seen some Major Tech Companies announce they are going to have their staff stay home. Just more generally, a better precautionary measure. And at least for this industry, you want to be cautious and careful. So we will see what happens as this plays out. We are now about 12 days out from rsa ending, 11 days, so the incubation period is 14 days. By this weekend we should know better if there are further cases, but i think for now it is better to take precaution then not. Emily that said, the disease is continuing to spread. Earlier today, the buildings of cbs in new york city were evacuated. Cbs is saying, this is just crossing now, that two of its new yorkbased employees tested positive for coronavirus. They are asking employees in at least two of their buildings to work from home. Jamil, this is certainly going to get worse before it gets better. What are you most concerned about from a National Security perspective . Jamil honestly, one of the things is people overpanicking and getting too worried and not engaging in their normal daytoday business or economic activity. Look, this is a challenge, obviously. We have seen a lot of public spaces be left behind, people sort of staying at home. But you can still get your work done. You can still participate in the economy. This is not the zombie apocalypse, as it were. The thing to do is just be safe, take normal precautions. And in the cyber arena, take smart precautions. But do not stop doing business. Dont stop participating in the economy. The general variables of the economy and the like are good and solid. We want to avoid a panic here. Emily that said, what would you like to hear from the white house at this point . Some of the panic might be tied to the fact that we are not getting a lot of information. The president has been due to unveil a stimulus plan, but that has not happened. The Daily Briefing today by the Vice President was canceled. What should we be hearing from the white house . Jamil the w. H. O. Today declared this a pandemic. 114 countries affected, over 4000 people dead. This is a huge concern. It has been a pandemic since h1n1 years ago. We want the white house to come out and tell us the plan. We know the fed will continue to cut rates to the extent they are able to do so. For all we know, they will engage in quantitative easing too. I think the economy will stay strong. I think the government will do the right thing. All we need for the white house and leadership in congress to do is to step up and say we will do what is necessary to keep the economy going and keep the countrys work moving. As long as we get that i think we are in solid shape. Emily that was jamil jaffer at Senior Vice President for strategy at iron net. Coming up, if you are trying to cancel a trip, dont expect a refund necessarily from airbnb. We have all the details and disgruntled travelers next. Plus later, universities and schools around the world continue to shut down to prevent the coronavirus spread. How can kids keep learning at home . The push to get Classes Online is next. This is bloomberg. Emily travel, one of the industries being hardest hit by the coronavirus outbreak. If you are canceling a trip, hotels and airlines might give you a refund or voucher, but if you booked through airbnb, you may be out of luck. Unless you booked to stay in china, italy, or south korea, airbnb is enforcing no cancellation policies, or allowing hosts to decide. That leaves out 97 others where other countries where the coronavirus has spread. I got details from bloomberg techs olivia carville. Olivia we are seeing a lot of frustration out there at the moment from guests, people who booked trips years in advance who really want to go. Unfortunately now, the coronavirus has spread right across the world and reached pandemic status. Health authorities are advising people against travel and families like this one we were talking about, who we featured in this article, think it is in their best interest to protect their family in terms of safety, but also to try and avoid actually spreading the coronavirus. They dont want to take the trip anymore and are trying to cancel. Their airline and their hotel have both refunded them, but unfortunately, airbnb is a different position. They have told the family that according to the cdc guidelines, they could still safely travel to japan. From the familys position, they have a 10yearold son and dont think it is safe. We are hearing from a lot of people at the moment you feel as who feel as though airbnb is putting their health at risk by giving them unsafe travel advice and encouraging them to continue to go by not offering a refund. Emily i have a line from your story, from airbnbs official response to this family saying if the cdcs precautions are followed, you can safely travel to japan. Well, nobody knows if this family could safely travel to japan or not. Airbnb has responded to all of the frustration out there, saying we are a twosided marketplace. It is not just you travelers who are the customers, but our hosts who are the customers. Tell us more about airbnbs side of the story. Olivia right. So airbnb is in a particularly difficult position here. We know the travel sector has been the hardest hit. Airlines are canceling flights, hotels are closing, businesses are prohibiting travel, and events are being canceled across the world. But while airlines and hotels only have to do with the customer, airbnb is a twoway platform. So on airbnb, you have a host who will rent out a home, and you have a guest who intends to stay there. And from their perspective every time it gets canceled, the host is left outofpocket. So traditionally, airbnb has always had a refund policy that was kind of up to the hosts discretion. They could choose whether they wanted to have a flexible refund policy, which means you could cancel up to 48 hours before you arrived, or a stretch policy, strict policy, which says no refund at all if you cancel. The problem we have here is you have created this extenuating circumstances policy around coronavirus that only applies to three countries. A lot of people are traveling beyond china, italy, and south korea and do not feel safe. Emily in some cases you found some anecdotal stories where perhaps the host would refund the money, but airbnb still took its fee. Meantime, this is a company that was planning to go public this year at a 30 some billion dollar valuation. If you look at a company like marriott that is a 33 billion market cap, do we buy the idea that airbnb cannot cover for these travelers in a crisis like this . Olivia we know that they have been cash flow positive and they have turned a profit in 2017 and 2018. We believe they did lose in 2019 but that has yet to come out. We do know that for airbnb, they were founded in 2008 during the Global Financial crisis. And this is the second biggest challenge the company has faced. And unfortunately, it is coming in the year they intend to go emily bloomberg technologys olivia carville. Tesla overtook boeing wednesday as the most valuable Industrial Company in the United States. The electric carmakers market cap topping boeing by 10 billion. I spoke to ed laszlo. Ed it is as much about boeings pain as teslas gain. Boeing has a double whammy where it is dealing with the coronavirus, the impact on travel globally, people are traveling less, definitely flying less. Emily and continuing to deal with the 737 max. Ed and we are approaching the one Year Anniversary of the 737 max being grounded. If you look at the decline of boeings shares so far this year, that is how tesla has managed to creep up. But to be fair to tesla, it is amazing that we are even talking about them in the same breath as boeing. This legacy, huge industrial name with 80 billion of revenue last year. Tesla did 25 billion of revenue last year, and it is kind of a crazy concept that investors have been talking about. They have been talking about how tesla is becoming a real company that is producing real things in real factories. Tesla shares are up 55 year to date. It is expanding its Production Capacity to 500,000 new vehicles this year. And its increasing its base of industry, already up and running in china, plans for europe next year. And perhaps a new factory here in the u. S. As well. Emily tesla has been a real company for a long time, lets be honest. Theres an irony in that elon musk tweeted last week the coronavirus pan