Extraordinary, we will have the latest. Life disrupted as schools and businesses close around the world. Sandbergcoo sheryl joins us live. This, as facebook shares plunge. Thet, to our top story, markets going deeper into the red over fears that the economic fallout over coronavirus will be more prolonged and painful that we all expected. President trump say life could be disrupted well into the summer. The s p sinking 12 . The dow falling to its lowest in two years despite the Federal Reserve cutting rates to zero. For more, i want to get to Romaine Bostick. So much red everywhere. Break it down for us. Romaine you talk about response with regard to the monetary policy. What you have today is a market that has basically figured out that what is ailing the u. S. And Global Economy will not be solved through monetary measures alone. The dow and s p 500 had their worst single day percentage drop since black monday in 1987. You look at the nasdaq and small caps, worst days on a percentage basis on record. This is basically a market that is now pricing in what is already a technical recession with the anticipation that we could see a fundamental recession. We have talked to a lot of economists. Were aroundes who during the financial crisis in 2008. They were there during the dotcom bubble. They have all said there is really no precedent for what we are going through now. People are staying home, they are not going to work, they are not really buying anything that is not essential to their daytoday survival. This is something that you would have to go back to at least the Great Depression to find anything equivalent, but definitely nothing in the modern era. Emily the president s remarks becoming grimmer romaine s comments definitely were a little bit starker than what we had seen before. Todayw a bit of a selloff when he began speaking and laying out the idea that in his words this could go until july or august. At the same time, we talked to some people who said they were encouraged by the fact that his tone was a little bit or serious. We see him sort of falling back on his health and economic advisors in a way that we had not seen in previous weeks. This is something the market had reacted negatively to in the past. Pain,term economic shortterm market pain. We could see a. Napback sometime in the future emily i want to look at the markets and the tech sector or in the future in particular. Mark, facebook down almost 14 , apple down 12 , alphabet down 11 . What is your take on how big tech will weather the next couple of days . I dont think there is any they willthink that not be impacted. The big question is the magnitude of the impact, and it will depend on whether we tip over into recession. Google definitely slowed down during the great financial crisis but it was still able to grow during 2009. A lot bigger now, you have to ,ssume that any major Marketing Advertising recession that there is some recession testing here. Some of these names did back then hold up relatively well. Amazon and netflix, very little change in revenue growth. The stocks came in but those also created great buying opportunities. Negative impact almost across the board. Somewhat impacted in the middle. About thes talk middle of the road companies, they depend on advertising for a broad part of their revenue. In a downturn, is this really bad news for them . Mark yes, it is bad news for them. You see Companies Cut back on brand advertising. Facebook probably has a little more exposure than google does. 1015 vertical for a name like google. They definitely would be impacted. There is no escaping it. These companies have cyclical exposure. The question is by how much their growth rates would be cut. A great is even in financial crisis, they will still be able to grow, but nowhere near where they are growing today. Emily we had laura martin from need him on last week saying that even though you can watch movies from the comfort of your own home and you might think a lot more people are doing that, what makes you think that netflix and amazon will be spared here . Mark i am not a person to say any of these companies will be spared. It is a relative call. Inexpensive,ix is athome entertainment. It is inexpensive, maybe not versus disney but certainly versus going to a movie theater. You can watch as much as you want for 8. 99 per month. In the 20082009 recession, there was almost no change. Were they able to pull off a price increase this year . No, but i dont think they were looking to do that either. Amazon, over the years, this increasing amount of staple spend going on at amazon. We just saw this News Announcement that amazon is hiring more employees to keep up with the surgeon and demand. ,arts of amazon will be week but parts will probably be strengthened by what we are seeing now. Finally, there is the cloud business, a costinefficient way to run your business. I think that would only be modestly impacted. Additionalng an 100,000 workers. Times noticed delivery getting pushed farther out, being more scarce. You talk about alibaba as an of the companies that will most be negatively impacted here. What do you see . Mark they are about as close to ground central as you can get. In all fairness, it looks like they may have gone through the worst of it. They had a supply seizure. They just could not get people in the streets to deliver products. Like their careers are back out in the streets in most cities in china, delivering great so they may have already seen the worst of the impact. If that is the case, that aba the virus iser, if as reasonably well contained overtime. Emily uber and lyft have taken a big hit. That said, they are becoming more like utilities. If you are in the bay, you are not leaving your house tomorrow. What does this mean for them . Mark my first reaction is that they would only be modestly impacted. But the ceos today saying they were seeing Something Like 40 reduction, you have to start extrapolating that to other cities. We are clearly going to go through that in the bay area. 90 reduction in demand. Whether that is for a week, two weeks, three weeks, we dont know. More impacted than i initially thought. I think we have to get back to thinking it is the duration that now matters. , they saw as much as 50 reduction. I would extrapolate that to all of the markets. The question really gives duration and that is an unknown for all of us. I dont know how one can have any confidence in what the duration is. That makes these stocks, especially as they are pretty far away from profitability, volatile. Emily thank you for helping us try to navigate through it. Coming up, an exclusive conversation with facebook coo Sheryl Sandberg about how the Tech Community is leaning in to help those in need. This is bloomberg. Emily facebook shares plunge yet,the rest of the market lets get the perspective now from facebook coo Sheryl Sandberg. Obviously, the news has been changing by the minute for the markets, for your company, for people who live in the bay area. I have to ask you on your perspective about what we are seeing in the markets. Larry summers says we are headed for a recession. You worked at google, you helped navigate facebook through the financial crisis. Where is this going . Nk you for having me meryl thank you for having , emily, and welcome back from maternity leave. We are all watching this carefully. At facebook, we are really focused on not just ourselves but Small Businesses that use our platforms because this can be devastating for small business. We rolled out last week a business hub. Some of them are able to replace some of their brick and mortar walk in does this with some online. We want to help support that because the impact on Small Businesses is going to be very scary and very real, and people need jobs. Emily facebook headquarters are in the bay area. We are going into a bay areawide shelter in place order tomorrow. What does this mean for facebook . Have been aggressively pushing for people to work from home, contractors, we are paying whether or not they are sick. Jobs where we still have people coming into the office, we are getting as much of that home as possible. People but also keep providing the services we provide all around the world, which we think are increasingly important in this time. We are seeing more people turn to our products, especially video chat and messaging products. Emily schools across the country are closed and you are launching a massive initiative. A lot of people dont realize that kids depend on schools for hot wheels. Talk about this effort and how other people can join you. Is al Food Insecurity major issue in this country. One in eight children in america does not know where their next meal is coming from and one in three in Silicon Valley. This is something i have been working wound working on for a very long time. Helped secondi harvest, a food bank, with a group donation. My facebookt fundraiser has raised almost 200,000 in just two days. I think people realize 30 million children in the country get 10 out of 21 meals at a free and reduced we need to help these families. There is a food bank in every local area. You can go to feeding america and find yours. I would like to see any way we can support people. It is a very serious risk of Meeting Basic Needs and food of all things right now is something that people desperately need and people are really worried about it. Emily people are desperate for information and the coronavirus seems to present a unique opportunity for people to panic and believe misinformation, everything from fake cures, who created the coronavirus, and this being a media fantasy. When it comes to influencers on facebook or instagram, how are you handling potential misinformation or misleading claims in the time that we are in the middle of a Public Health crisis. Sheryl there responding to this with all hands on deck. We are working with who very closely and directly, taking things down that they say are harmful right away. We are trying to get good information out to people. Just did and i handwashing video and we are asking celebrities across facebook and instagram to share that information. It is about taking down the bad and getting out the good. We are partnering with the u. N. Foundation and who to launch a response fund. Ive already raised 3 million on facebook and we will do our match whether or not we hit it. We are going to do the same for the cdc very soon. This is about taking down the Bad Information but getting the good information and support out to people. Incredible organizations like the who and cdc will need everyone to be doing what they can do to reduce the spread. Emily what about misinformation and private groups where sometimes the most critical misinformation resides. Sometimes that is medical misinformation. With covid19, if it is harmful information, as soon as we can find it, we are getting it down as quickly as we can. We are also seeing a lot of facebook groups doing amazing things. There were groups in italy, which has been particularly hardhit, getting together online to provide support. There is a doctor in lombardi, italy, that has been providing services to patients, not even her own patients, just people in the area suffering from isolation, anxiety online. We are seeing churches and synagogues put their services online. We have seen this with other disasters even though i dont that we have seen anything like this, where people come together to support each other in any way they can. We will be doing everything we can to facilitate that. Emily facebook is down almost 14 with the rest of the market. How big of a downturn are you preparing for and how wellpositioned is facebook as a business to whether this . This is not going to be business as usual. The Marketing Industry will feel a big impact. Keep, we know that we can paying our employees, paying our contractors. We know that we can keep the lights on whereas so many Small Businesses around the country and the world to not have that luxury. That is where we are really focused. Hat is much more important you will see more coming from us, including this week, in big efforts to help Small Businesses around the world. Panic across the country, life being disrupted, not enough testing kits, what do you need from businesses and governments around the world to inspire confidence right now . Sheryl i am not a health expert. At facebook, we are relying very heavily on the health experts. We need a strong response from our government, our Health Care System we will need a strong response to help people socially isolated. Any unnecessary contact right now, we have taken that very seriously at facebook. I know that my fiance and i have taken that very seriously for ourselves. We also know that the government is going to have to have strong economic responses because they are already seeing people suffer. That is why i was so grateful to the people across Silicon Valley who donated to our food bank. It is serious and we all have a deep responsibility to do everything we can to help keep other people safe, and that means cutting down on all of our social activity, anything unnecessary, so that the people on the front lines my sister is a pediatrician, she has to go to work. Home, thee stay at safer it is for her and other health workers. Emily you are matching donations for anyone who joins you in this effort through the Second Harvest of Silicon Valley. Sheryl sandberg, thank you for joining us. Stay with us. This is bloomberg. Stocks plunder to the most since 1987 as President Trump warned that disruptions from the coronavirus could last well into the summer. More on the markets. We saw a broad selloff today across most sectors. Tech, give us a highlight. We did see the nasdaq and s p 500 take some major hits on the day. What you really want to take away is the way that tech is interacting with these volatile swings in the market, moving in both directions. Broader stockmarket, massive losses followed by massive gains. Tech really leading on both sides. Investing in tech, now is really the time to kind of buy in. People i am talking to our taking the opportunity to buy the debt. There is a shortage of liquidity in the market. You are seeing people cutting their positions, really targeting tech because you are of course exposing yourself to the industry in larger volumes than other sectors. Continue are going to to monitor all developments and watch the open into asia. Thank you so much for that update. This is bloomberg. Plenty morethis is bloomberg. Ahead. 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 ] [ fastpaced drumming ] emily welcome back to bloomberg technology. Im emily chang in San Francisco. Back to the markets. We want to read about how equities and bonds did today. We have Romaine Bostick on the phone. We have david schwab well, the chief Investment Officer of Family Management corporation. Thank you for calling us. Obviously, it is so hard to know what you should be preparing for. What are you preparing for as you work your Investment Strategy over the next 24 hours . Thats a great question. I think it is just unprecedented times. Every day, the news flow is happening so quickly that its almost hard to keep up with. On a short time horizon, investors are trying to get a , sop of different reams President Trumps announcement gave more of a realistic framework that the coronavirus could be in place until summer and to some degree, that might help expectations Going Forward of how long this could last. Emily so where are you placing your bets . In terms of so many unknowns, what do you think is the most likely scenario and how are you operating . Think the markets may be getting a little ahead of themselves, but its a very fine line. I think if you look at Corporate Bond spreads, we have seen corporate blowout in the last week or two, particularly high yield spreads out, more than 400 basis points on the year to over 800 basis points p theres a fine line in Corporate America depending on how long the slowdown or economy is screeching to a halt lasts that you could put significant strain on corporate borrowers. I think the highyield space could still see some pain. I think investmentgrade bond spreads are fairly attractive right now at a couple hundred basis points wide. I think there is value there right now. Even the banking space, the banking space right now is pricing somewhat for armageddon and their is some interesting value there. Romaine expand a little bit about that. Im wondering when you look at the selloff we have had, not just today but over the past three and a half weeks, how much of that is tied to this idea that a lot of the companies out there did have this net leverage that was really just by some measures, astronomical . Absolutely. Conditions, they were favorable. You had a Corporate Market that was really amenable to refinancing a leverage loan market that was really opened up for favorable terms and then you add onto the fact that Interest Rates were low, spreads were low, and you have an environment where leverage was easy to take on and debt service was really low. At the current time, we do have low risk free rates, but credit spreads are much higher now. Obviously, topline sales will be willistent while costs still be there. The pressure depending on how long this will last is went to sta