White house briefing. We will be monitoring that for any headlines as they come. Shares of the biggest banks, citigroup and bank of america, plunging today after disappointing Earnings Results revealing just how hard the pandemic is hitting them. Goldman shares ended the day up. Their portfolio took a big hit. Joining us now, sonali. Walk us through these big loan losses and why did banks do so poorly today . Sonali these loan losses are the number one reason we are seeing issues at the big banks. This might get worse in the coming quarter. Let uncertainty as what is making investors nervous. When you go to bank of america, they expect they are considering what a recession would look like into 2021. You are drawing out time frames that go well past a couple months that people expect the economy to be closed for. The banks are factoring in the reality that the American Consumer will not be able to spend as much and that there will be bad loans as people are not able to pay back all of their loans. Emily we are just getting new headlines crossing the bloomberg. Plans too outlining slow hiring in a memo to staff for the rest of the year. This coming from the google ceo. You think about all of these folks who are not going to get new jobs, were possibly going to lose their jobs. What are the banks doing in light of a weaker u. S. Consumer and are they doing enough . Sonali what is amazing, that is a large Healthy Company. There are thousands, millions of Companies Across america, Smaller Companies do not have as much access to loans. You look at the u. S. Payroll protection program, 349 billion. That is running at capacity. The banks are doing what they can to get those loans out faster. What happens 3, 4, 6 months from now as this continues to drag on and nonperforming loans get higher . This there will be less of a willingness to take on losses. That is not true for every suchny, that they have as create access as google does. Emily talk to us about what happened in goldmans portfolio. Goldmans portfolio. Trading surpassed expectations. What happened there . Sonali when it comes to bank of america, wells fargo, jp morgan, they had a they have a huge exposure to the consumer. Wasman sachs, trading skyrocketing among high volumes. Marketsility to create and liquidity in this market really showed up. They are less exposed to the consumer. If you have is that Goldman Sachs and then Morgan Stanley reporting tomorrow, the investment banks are showing an ability to show up and find ways to do deals in a market. That is finding ways for corporate clients to get liquidity. Last night. You saw deals are still happening. It is not the type of deals you would think. So much for you that update. To so slow headline to slow hiring for the rest of the year. The ceo has outlined these plans in a memo to the company. We will monitor these headlines as they come in. The u. S. Justice department is continuing to track disInformation Campaigns being waged against the United States discord. Actors to sew i talked about how american adversaries are trying to take advantage of this pandemic with jamil jaffer. Jamil we are seeing over messaging from our enemies. The folks in china, the folks in russia, iran saying this is a u. S. Virus. True. Ing we know is not we have seen that kind of messaging. On, of what we see going and opportunity. They see the u. S. Focused on inward and maybe it moves overseas. You see i ran getting more aggressive. Ehrough their proxy, has zbollah. There is a lot of overt and covert messaging taking place. Emily there is new reporting that state Department Cables from a couple years ago show there were concerns about safety at a wuhan lab that has renewed fresh speculation this originated in a lab. The pentagon says the evidence is inconclusive. What is your inclination . Jamil one of the challenges we faced is a discussion of whether this was an engineered weapon or a naturally disk naturally occurring disease. Everyone agrees it is a naturally occurring disease coming from bats and maybe another species. It is interesting is the concerns of what might have been happening at one of these labs in wuhan. Both of these labs work on that. On bats. Animal escaped from the lab should whether i got transmitted to a human in lab. What we do know for sure other than the virus originated near wuhan. We also know some of the early cases were not out of the wet market we have always talked about. There were other cases in other clusters. The indication it came from somewhere else. Is a very real concern. That indicates not only culpability on the part of Chinese Government at a role the government may have played unintentionally in the virus getting out. Emily we do not have any evidence this waste product theory has any water. We do not know right no, right . Jamil you are seeing a lot of these come out of the u. S. Government about the concern about the lab. We saw someone talking about intelligence reporting. What is interesting is there is g drumbeat suggesting there is an indication of a connection to the lab. What we do know it is not a by inured a bioengineered weapon. Emily we are hearing about countries possibly underreporting. U. S. Intelligence has said china under reported their numbers. They could be happening in other countries. How bad is this . How bad was this in china, italy, spain . Jamil it is hard to know because of the underreporting problem but also the surveillance problem. Upticks atn big times when the testing is rolled out more aggressively. In new york, we sell a lumpiness. We know the virus likes to have an even cyclical trend to it it. Ld trend is to the reason why you cc some of these as you get more surveillance, you are testing more people, youre getting numbers that are lumpy. Some of them may be intentional underreporting. Some may be the rollout of testing. With china, we know they have made active efforts to cut down the amount of information coming out. We know we do not know why that is. If there is some sourcing issue or a lot of times, you say emily as we know, it seems to be a naturally occurring virus. That is the one thing we know for sure. Lets talk about the disInformation Campaign. The United States is heading into a critical election. We know joe biden is going to be the democratic nominee. President obama has endorsed him. That gives opportunity as we are battling the coronavirus for state actors and bad actors to take advantage of this adds we are going into a big election. What are you seeing in terms of the disapprove ration this Information Campaign . Jamil one of the things we know for sure is the russians do not feel like they have paid a real price for their intervention. They are likely to crate the kind of messaging that puts americans at odds with one another. They may play both sides of the game. Undermining competence of the american body. It is something russians have been very effective at. The chinese already trying to do with their messaging. That requires the federal and state governments to work together. And states to work with one another. The russians and chinese are focused on the nation. States are still doing elections on their own. We are increasingly looking towards technology to help track the outbreak with Contract Tracing an apple and google teaming up. That means we can be more comprehensive and also opens up new security vulnerabilities and privacy concerns. Are you ok with this given we are in a Public Health crisis or do you worry about certain issues . Jamil we should always be skeptical of government power and the government trying to step too far. Where ourom a country forefathers were deeply worried about overweening government. That is why they started the revolution. Of course i take certain measures to track the virus and protect people that goes beyond what we expect. The key is to ensure we are doing things that are designed to protect Public Health. But also we do that in privacy cents of manner. Jamil of iron net security. Google will be slowing hiring for the rest of the year. This comes in a memo to google employees. This is a company that hires thousands of people. Intoe continuing to dive these headlines as they roll in. Meantime, airbnb has raised another billion dollars. This is the second in a row. President fore Global Policy next. This is bloomberg. Emily for the second week in a row, airbnb has lined up a billion dollars in debt. This is the travel industry has slowed to a crawl creating quite a challenge for the home sharing leader. Running the on the phone, we have the Senior Vice President for Global Policy. Lots going on for you over the last several weeks. Talk to us about this extra billion dollars. How much of a financial cushion does this give you . Hope you and your family are folks are and all the staying safe. The way we are thinking about this it is what you have going on out there is bigger than just a market correction. It is almost a societal correction should we have been using the metaphor of, this is a massive storm. We know we are going to get to the other side of the storm, we went to make sure when we get to the other side, that we are in a strong position. Over the last several weeks, we have gone out there and put together the resources to make sure that not only do we get to the other side, but we get to the other side really strong. That means having the resources and support to invest in our community as we go through this. Between last weekend this week, we have put ourselves in that position. A significant amount of capital we can access and use to focus on investing in our products and services and most importantly our community. Us,y paint the picture for just how dark is the storm . How much has travel slowed across country, across the United States and globally . Chris anyone out there as well we are is well aware going through an unprecedented global crisis. At the front end of that has been travel and tourism. I do not think it is limited to travel and tourism shade it is impacting all sectors of the economy. All sectors of society. As we think about it, we are looking in real time to look at data out there and actually make realtime adjustments and modifications. I will point you to two we have done in the last. 10 days. We have launched two new products and services. Experiences, ane version of our in person experiences which you can do over your computer or your device. We have had a lot of success with that. We have also introduced something called longerterm housing. This is housing for people we need something that is more than a shortterm. They need a permanent place where they going to be for two months, three months, six month, nine months. It really accelerated in the weeks after the pandemic as people needed to find a more flexible form of permanent housing. They are obviously not the answer and the bl, what it reflects the beall, but it reflects on how we are trying to use our resources. A tough time out there not just. N travel and tourism i think that as you look on the other side of this as people are able to come out of lockdowns or stayathome sheltering that there will be travel. It will be a lot more localized before you get back to crossborder travel. How are we making sure we are taking the steps to support that . Any time you go through a massive disruption, you can have some breakable stuff and some stuff that is not quite so double. The ability to have the resources to move fast and quickly is important. At the end of the day, we have we have seven plus million listings. I will share a few relevant stats. Over 90 of our hosts are looking forward to hosting and continuing to host. Number two, at the end of march, we had more people making booking sixmonth out than we did the year before. I will give you a third one. We did a survey recently to look at consumers and how they looked at different accommodation offerings out there. Over 70 of consumers responded by saying they are looking at using shortterm rentals because they see them as the type of places where they will have more control over their accommodation experience. We are going through an incredibly difficult time. Certainly trying to look at where we are going to go and some of our inherent strengths and how we build off of that. Signs. Those are positive we can all be optimistic. We all hope life goes back to normal after this. The question is, well life ever go back to completely normal and what is the new normal . I know airbnb is a private company. You have said this is a storm. Can you give us any sense of how this will hit revenue . Will revenue be down by 50 or more this year . Chris what i will say is we have been impacted perhaps not quite as much as some of the others in the travel and tourism space. Ive been able to see some of that data. We are all being impacted significantly. I do believe as you said, is this a new normal . That at some level presupposes this is a normal baseline. This might be the great next should the great next. Seen know when we have oneoff markets disruptions in the past, the earthquakes in mexico, issues in europe, that our platform typically comes back faster and quicker and even grows at an accelerated pace on the others of that disruption. We have never seen anything quite like this. As i said earlier, we see a lot of data signals that suggest whether it is a vshaped, ushaped, whatever comes back, we are going to be wellpositioned shade one of those wellpositioned. One of the most inexorable principles of the u. S. Is they do embrace travel. They do love travel shade there is something inherent in wanting to be with humans in different places and experience different things. Really tough times. Doing everything we can to support our community but do feel we will be wellpositioned on the other side of that when the other side gets here. Airbnb has been doing its part to help folks on the front lines offering accommodations. . Ow is that going so far are you prepared to expand that or do that in other regions of the world as the outbreak continues to spread . Chris this is a classic example having this began with us having hosts in parts of europe opening up their homes to first responders. Two weeks ago, we announced a program where our our initial goal was to get 100,000 homes opened to be able to support those angels on the front lines shade within 8 on the front lines. Within a week, had more than 1000 airbnb host open up their homes. It is 130,000 as of a day ago. We have launched some incredibly interesting programs shade interesting programs. In france and italy. Thousands being housed right away. Last week, i was honored to see Governor Andrew Cuomo in new york and announce a program where we will be working with the state and a large labor union whose people are working in these hospitals to provide housing and housing free via medical experts. We are going to be rolling up additional programs in the days to come in different cities around the world we are engaging with and working with. At the end of the day, we are honored to be involved with this. This is being led by airbnb hosts who are opening up their homes. , contributedunder his own money to support the program and provide support to make sure it is getting off the ground and working really fast. This is being led by our host. Whethera big step back it is airbnb or whomever, you see so many signs out there that neighbors are looking after neighbors, communities after communities. It is fantastic to see. Owny i see notes in my neighborhood about folks opening up their homes. Some of that is happening on airbnb. Spent aggressively last year planning for a Public Offering this year. Can that still happen . Was it a mistake to send that money even though nobody could have foreseen what we would be going through right now . Chris none of us had the Global Pandemic playbook in our drawer. If we had game planned for any number of scenarios including being ready if there was some type of a disruption along the lines of 2008, 2009 or 911 shade a go or 911 shade a Global Pandemic is on a different level. The investment we made in 2019 was for the long haul. A significant amount of it was in the Tech Infrastructure of the company. That will serve us well into the future. Ultimately, no one could have foreseen a pandemic of this level, the decision is going to serve this company as we go forward over the longhaul. Shade airbnbght Senior Vice President for policy. Thank you for calling in. Appreciate you joining us. I do want to recap those headlines that are rolling in from google. Google obese on hiring for the rest of the year. This coming from the cal in a memo to the staff. Slowing the hiring for the rest of 2020. Hirer for the United States and especially in silicon valley. Here is a quote coming from a google spokesperson. Well be slowing down the pace of hiring and maintaining a mantoman on boarding many people have been hired but have not started yet alphabet 119,000 people. That gives you an idea of how big a company it is and it is generally a Healthy Company. Even a Healthy Company like google be making a move like this. Coming up, we are going to be talking about telehealth and if you have to stay home but you are feeling sick, a new way you can be diagnosed. This is bloomberg. Beyond the routine checkups. Beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected. To do the extraordinary. Take your business beyond. 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 ] welcome back to bloomberg technology. I am emily chang. There is sti