days. the americans were evacuated from wuhan, which is at the center of the virus outbreak. no information has been released about their health. officials say more than 120 people are hospitalized after a boeing passenger jet operated by a turkish carrier veered off the o.nway and split into -- in tw the rear of the plane caught fire while the front became detached and landed upside down. flee.gers were forced to 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. this is bloomberg. ♪ >> welcome. here are the top stories we are following. aide struggles to reach 60 million people under quarantine in china. u.s. trucks rising. tesla stops a rally. let's get a quick check on the major averages. lots of concerns with the coronavirus. spreadseeing the rate of hit ever higher levels. here is a look at the markets. brieflyve the s&p 500 and record territory. the dow pretty close to that. one to watch, energy is leading the way, up 4%. watch for more earnings. disney is falling today. a little bit of optimism out there for the most part. shery ahn: not so much for tesla. now falling by the most since 2012. this coming after that 112% gain. up until yesterday. many analysts coming out and saying this is not reflect fundamentals. gm is the largest automaker in china. they announced earnings. they see robust growth in sales when it comes to suvs and trucks. they are assessing their supply team in china. some other factories will remain 9.t until february we are seeing some divergence in these auto stocks. that chinato say passenger car associations coming out with a new forecast saying they expect record slump in the first two months of this year given all of the disruption from the coronavirus. it could fall by as much as 30%. general motors adding its name general motors adding its name to the list of global corporations beginning to see the impact on their business from the coronavirus. it comes as retailers and manufacturers having to travel plans closing stores. the ceo told us that the company expects the first quarter to be weaker in china because of the virus. once we come out of it, we are expecting operations to recover. the team is working around-the-clock to make sure we are mitigating what we can. sophie, just in terms of what you are hearing on the ground, we continue to hear about the pace of transmission being high, maybe even getting higher, and more and more businesses responding. and yet we see fatality rates remain low. tell us what you are hearing. >> let's get to the briefing that was held. that whydentified there is an increase in cases, this is still contained. it is not yet a global outbreak. they are calling on countries to provide more detail and data. downplay thed optimism around an imminent breakthrough when it comes to vaccines and treatment. china is going to start clinical trials. a lot of authorities on high alert attempting to contain this outbreak. we are seeing the number of cases rise to 21 in hong kong. global transmission is increasingly aalert worry. carrie lam announced plans for a quarantine to be placed on all travelers from mainland china for 14 days. shery ahn: how are things looking on the grand at the epicenter? >> it certainly is dire for those who have stayed in their homes. they are looking to build up supplies. we have seen photos from the epicenter. this as the province is still under lockdown. keyher province, which is a area, is seeing measures to contain the threat of the virus. in the last 24 hours, there was a record number of area, is seeg measures to contain the threat of cases identified for the coronavirus. of whetherquestion or not hong kong will fully close borders with the mainland. that is being called for by medical staff. we have had more companies feel the impact from the coronavirus. looking to cancel 90% of its flights to china. thank you. stocks risings., for a third day while treasuries thep on speculation that impact of coronavirus will be minimized. we are seeing stocks rallying again. but not for this one sector. what is this telling us? >> this is a huge rotation day. the scale of it is pretty immense. if you look at the expensive software stocks versus energy, you will see a long short. software underperforming. that is having its worst day on record against energy stocks. rising, we have gotten into these proxies. you clearly see that at the factor level. amanda: let's take a step back. appraisal of energy and where it should trade. nothing to material has changed except maybe saudi output. nothing material besides price. that is what these companies need to trade. energy companies managed to underperform. there is a need to slow down production. it has been a very difficult sector to get right. it might be more correlated to this factor and style move. shery ahn: how is the brett of eadth of this-- br looking? >> i have not checked that today. have pretty solid performance from the s&p 500. this tells us there are so many different ways to skin a cat in this market. you have not needed that for a long time to get gains. then it comes in and saves you. this just goes to show that these rotations we have had off and on for the better part of , these protective rotations have really helped to cushion the downside. not everything is surging together. the coordination might not be the same. amanda: how much support is earnings giving to the market? been a tough element to break out. this is not what is supposed to happen during earnings season. it has modeled the picture. the readthrough is not great and the stock reaction. golden had a note this morning showing that that strategy is playing well. amanda: always great to have you. coming up next, casper is this year's first fallen unicorn. says about what it the broader state of markets. this is bloomberg. ♪ only one month into 2020 and we already have a fallen unicorn. the mattress retailer casper. its potential market value is well below less than a year ago. for more insight, we are joined by eric hirsch. great to have you. let me get started with casper. we are seeing more and more cautionary tales. is this sending us a message about the future of venture capital and how much investors can tolerate these huge evaluations? >> it is sending you a message on how faculty market is on venture backed companies. there are very few venture backed companies that have come through the ipo channel. the ones who do tend to be big. have a big story around them. have a lot of pr. public markets are not always wanting to buy with the venture groups are selling them. >> we have a lot of big money entering private markets. are they going to be successful? >> i think this is a question of what you are counting on. isn you look that venture working today, it is smaller. selling to strategic buyers. selling to other venture firms and continuing that growth trajectory. when you have only one exit class and it is the ideal market, that never feels like a great strategy. one of the places we watched for this relationship is it tells us a lot about what we used to call the smart money and the state of the public market. does that suggest anything about overvaluation on the public side? it is a question of valuation and government. moreublic market is much accustomed to very traditional governance structures using real boards, real structure around that. the venture world has decided that they are willing to back some founders who are creating a cult of personality and are not looking for real governance around that. have other big news in the private equity markets. vanguard entering the game. didn't they try to deal with you guys back in 2001? >> no deal. shery ahn: what do you make of this? they finally decided this is a real asset class and they should come around to it and get in the game. traditional asset management firms are looking for growth. the private market has really been that place. and concernsstions about the ability to absorb the money. but the returns have been there. vanguard is acknowledging that. >> one of the things interesting about this deal is the investors. will they be happy with the returns they are getting? >> that is the question. none of us have seen the details. what are they selling? who is getting paid what? what does the return profile look like for the investor? can they be assured that they are getting the best stuff they have? fees will be one side of the equation. another thing raised by the big players are pension fund heads like liquidity. what happens to the private side? you are seeing two pieces of that. the secondary market in the private world continues to grow. you are seeing more and more liquidity. the second part that is more interesting is coming out of the last financial crisis, you saw a lot more investors willing to accept illiquidity in their portfolio. ofy could afford to have 50% their capital locked up in a more illiquid ask -- as i cost. fixationsee ranting with needing to have all parts of your portfolio be fully liquid. shery ahn: are you concerned about leverage levels? >> we should all be concerned at some point. one of the things that is easy to forget is that private markets have thousands and thousands of fund managers. you will see lots of different performance. people will be conservative. that is what we are seeing today. not everyone is using aggressive leverage. >> it seems like there is a lot of money being raised with nowhere to go. >> pacing has been pretty reasonable. if you look at dry powder, which is substantial out there, it does continue to get eaten away. our data says take all the dry powder and look at investment pacing today. that money gets spent in under three years. that is about normal. will ask you a question that you have no incentive to answer. given all of this competition and new money, where do you see the actual opportunities? >> i think we are in one of these weird parts of the cycle. there is nothing cheap or easy. are really hunting for exceptions. is that a great investment strategy? not for every investor. this is where being large and having scale and choices makes it easier. we are basically looking at lots of stuff and saying no to the majority of it because there is no easy solution today. we are finding opportunities and some industrial spots, biofarma sees, outside of the u.s.. there is not one little pocket we are playing. >> private credit has been in a huge frenzy. what is the big risk and that market? >> you have a lot of new practitioners. who have never been through a down cycle. the boom of private credit occurred as you saw the public credit side yield to dropping and investors scrambling. you had a lot of new managers come onto the scene. they have no experience and a down cycle. that is something to keep an eye on. shery ahn: we have to leave it there. us.t to have you with this is bloomberg. ♪ amanda: tesla fans hit the gas and now the brakes. the company searched for six days. a 60% rally. we are seeing its slam to a halt today. it is unfair to ask you why it is selling off when we did not know why it is gaining. in terms of this crazy momentum trade, what should we understand? >> this morningis selling off wt know why it is the rating on the stock was dropped citing china, the coronavirus could have an impact. it is something tesla thought about a week ago. saying it would delay production of the model three in shanghai by a couple of weeks. it would have some limited impact on profitability. it is something that has been discussed in the last seven days. maybe it is just the law of gravity. investors are struggling to find an underpinning to the rally that we saw at the beginning of the year. there has been this big sentiment shift, particularly for institutional growth investors. these to see it as a write-off. now they see tesla as a real company like to make money. that is one part of the story. shery ahn: some prefer gm to tesla. talk to us about some of the fundamentals. tesla has always been good at keeping investors enthusiastic. but it is always overpromising and under delivering. they have come through ahead of schedule with the model why in china. that is really some of the positives. ♪ everyone uses their phone differently. that's why xfinity mobile lets you design your own data. you can share 1, 3, or 10 gigs of data between lines, mix in lines of unlimited, and switch it up at any time. all with millions of secure wifi hotspots and the best lte everywhere else. it's a different kind of wireless network, designed to save you money. switch and save up to $400 a year on your wireless bill. and save even more when you say "bring my own phone" into your voice remote. that's simple, easy, awesome. click, call or visit a store today. mark: the first word news. the head of the world health organization gave an update on the spread of the coronavirus today. last 24 hours, we have had the most cases in a single day since the outbreak started. outside china, there are 191 cases in 24 countries. and one death in the philippines. high the who chief said income countries have stepped up the reporting efforts since he called them out on tuesday for not sharing what he called vital case data. he said their greatest concern was the virus spreading to what he called countries with weaker health systems. the supreme court is signaling it may consider the fate of the affordable care law on a fast-track schedule. that would mean a decision by the end of june. at issue, to democratic appeals that seek a definitive ruling of halting obamacare during the current term. the appeals challenge -- the decision that fo