We will talk about the potential threats to National Security. No refunds. Airlines may be refunding customers, but many airbnb customers may be out of luck. We have the details. We begin with the volatile state of the Global Economy as the coronavirus widens. Italy went into lockdown and u. S. Virus cases spiked. The dow jones entered a bear market wednesday, the s p tumbling into their market into bear market territory after President Trump announced a ban on travel from europe. 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. That talkedch, about how much companies would lose on the downturn and uber and lyft shares fell on the reality that customers are sheltering in place. Wednesday i asked Wedbush Securities dan ives for his take on the volatility. Dan you need to put goal post around in terms of demand. 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. Whatw it as you look upon in normalized environment will be, even if you stress test the models in terms of the economic hereto down take, right you by apple and you by , microsoft. Lyft areer and down and these are names you think might benefit people dont want to take public transport. How bad is it for them . Dan you have to look at the separate risk profile. I look at names like microsoft, apple, some of the cloud. These are names that are golden opportunities. Lyftyou look at uber and guilty until proven innocent , stocks that will continue to punched across the board. They came out and said it they have not seen any changes. Property will still be there. Still very volatile names. I still like them longterm, but in the near term, theres no floor in terms of the stoxx. Emily is there any specific name you are particularly worried about . We can look out the june, out to the fall, but we do not know what is going to be happening at that point. Dan look, that is why i think when you look at security, cybersecurity, you have to separate out some of what i view as the nonessential purchases, versus what you need to spend on. When i look at names in cybersecurity, those names are in a stress test model. You look at nonessential purchases, especially these private companies 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 valuations we are seeing. Emily where are we going to see that m a . 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. In terms of corporate look at , microsoft, google, gcp, ibm, you go across the board, adobe. Right now, they are continuing to look to expand their cloud empire. 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 put in the floor of software over the coming months. Emily 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. 2 billion for facebook. Despite the frenzy to by Hand Sanitizer and bleach wipes online, even amazon profit estimates are at risk. We look at it from two lenses. One is the impact see on the sector in january and february was none. Impact chinese internet saw we are going to see a , greater effect in q2. From how hard travel was hit in general. That takes a chunk out of that, but if you look countryspecific. What does the italian quarantine mean for the countries. How much revenue is the drive . As these concerns spread outside of china, u. S. , germany, france, italy, these countries account for a majority of revenues for these companies and that is why we feel a pullback coming from key verticals and Key Countries can lead to u. S. Companies seeing what the Chinese Companies saw in 1q. U. S. Impact would be in q2. Emily lets take a look at amazon. A very interesting case. On the one hand people are flocking to amazon to get Hand Sanitizer and bleach wipes. You can imagine 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 counterfeiters and price gouging. I have heard people are worrying about getting coronavirus from amazon packages. What does this mean for amazon . Jitendra a lot of uncertainty on that front. If you look at the Distribution Centers in the u. S. , there is a high concentration in california the tristate area and, obviously, seattle. But we have not yet seen the effect to the supply chains. The report next week will give give us good insight. When supply chain gets overwhelmed, costs tend to rise. What that all means is eventually also you have to pay for employees when they cannot show up to work and things like 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 at the end of april, and that reset then sort of gives them the room for outperformance in the second half if we see the development for the rest of the world follow what china did in the last two months. Emily coming up, hacker alert. Malicious hackers are trying to exploit fears of the coronavirus outbreak. We hear from a cybersecurity expert. And if you like bloomberg news, check us out on the radio, listen on the bloomberg app, bloomberg. Com, and in the u. S. On sirius xm. This is bloomberg. Emily as the coronavirus spreads, hackers are trying to take advantage. Cybersecurity firms have reported surges of phishing attacks and malicious actors praying upon peoples fears to trick them. For more, i spoke to a Senior Vice President at a Cybersecurity Firm wednesday. You have a series of capable actors who are looking to use the epidemic to spread malware. To get into peoples email because they are interested in clicking on things about the coronavirus and to distribute ransomware in the current threat 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, there has been a longterm threat from andllectual property threat threat to infrastructure. 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 so now. People recognize this is a situation, and criminal actors are exploiting this. We will see what nationstates do going forward, but they know they are going to use longterm hooks. Emily what are companies and individuals supposed to do if they are working from home . They may be 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. You can also leaves the latest in behavioral Threat Detection to protect your networks if you are a company. Part of this is Companies Working with one another in a collective defense 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 a while to come. Emily you are 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 medically induced coma. This is a huge gathering for your industry. I am curious how this is impacting folks in your industry right now. Jamil people are taking wise precautions. There were 36,000 people at the conference. Only a handful apparently have this issue. But the concern is you did 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 Major Tech Companies announce they are going to have your staff stay stay home. Ir staff just more generally, a better precautionary measure. At least for this industry, you want to be cautious and careful. We will see what happens. We are now about 12 days out from rsa ending, so the incubation period is 14 days. By this weekend we should know better if there are further cases, but it is better to take precaution then not. Precaution. Than not. Emily that said, the disease is continuing to spread. Earlier today cbs was evacuated. Two of its new yorkbased employees tested positive for coronavirus. They are asking employees to work from home. 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. This is a challenge. We have seen a lot of public spaces be left behind, people staying at home. But you can still get your work done. 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. The general variables of the economy 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 set to unveil a 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 it a pandemic. 114 countries affected. 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. Tell us that they are going to stimulate the economy. We know this will happen, 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. 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 iron net. If you are trying to cancel a trip, dont expect a refund from airbnb. We have all the details and disgruntled travelers next. Schools and universities around the world continue to shut down. How can kids keep learning at home . The push to get Classes Online is next. This is bloomberg. Emily travel is being hit by the coronavirus, but if you booked through airbnb, you may be out of luck. Unless you have booked a stay in china, italy, or south korea airbnb is enforcing no , Cancellation Policy unless you are in certain countries, leaving 97 others where the coronavirus has spread. I got details from olivia carville. Olivia we are seeing a lot of frustration at the moment from guests, people who booked trips years in advance and really want to go. Unfortunately, now as it has spread across the world and has reached pandemic status and Health Authorities are advising people against travel and families we are talking about 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. The airline and hotel have both refunded them. Unfortunately, airbnb has a different position. They said that according to the cdc guidelines, they can still safely travel to japan according to the cdc guidelines, the from their families position, they have a 10yearold son and dont think it is safe. We are hearing from a lot of people who feel that airbnb is putting the families at risk by giving them Incorrect Information and not offering a refund. Emily i heard the response that if the cdc conditions are followed,cautions are you can safely travel to japan. Well, nobody knows if they could safely travel are not. Airbnb has responded to all of the frustration, saying we are a twosided marketplace. It is not the travelers but the hosts who are the customers. Tell us more about airbnbs side of the story. Olivia airbnb is in a difficult position. We know that the travel sector has been the hardest hit. Airlines are canceling flights, hotels are closing, businesses are per happening travel, and events are being canceled across the world. While airlines and hotels only have to do with the customer, airbnb is a twoway platform. On airbnb, you have a host who will rent out a home, and you have a guest who intends to stay there. From their perspective, every time it gets canceled, the host is least outofpocket. Traditionally, airbnb has always had a refund policy that was kind of up to the hosts discretion. They could choose whether they wanted a flexible refund policy, which means you could cancel up 48 hours before you arrived, or , meaning noicy refunds at all if you cancel. The problem we have here is you created this extenuating circumstance around coronavirus that only applies to three countries. A lot of people are traveling beyond those three and do not feel safe. Emily in some cases you found 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 30some billiondollar valuation. If you look at a company like marriott that is a 33 billiondollar 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. This is the second biggest challenge the company has faced. And unfortunately, it is coming in the year they intend to go public. Emily bloomberg technologys olivia carville. Tesla overtook boeing wednesday is the most valuable industrial company. The electric carmakers market cap topped boeing by 10 billion. I spoke to bloombergs ed ludlow. 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 we are approaching the oneyear anniversary of that being grounded. If you look at the decline of boeings shares so far this year, that is how tesla has managed to creep up. To be fair to tesla it is , amazing we are even to be fair to tesla, talking about tesla in the same breath as boeing. This legacy, huge industrial name with 80 billion of revenue last year. Tesla get 25 billion of revenue last year. It is a crazy concept that investors have been talking about. They have been talking about how tesla has been coming a quote, unqoute real company. They are producing real things and factories. There is a growth story. Tesla shares are up 55 year to date. It is expanding its Production Capacity to 500,000 new vehicles this year. Its increasing its base of industry. Already up and running in china, plans for europe next year. Perhaps a new factory 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 panic is dumb. Meanwhile today, talking about opening new factories in the u. S. Ed on the coronavirus we did not know how it is impacting tesla. On january 30, the cfo said it will delay production in china by 1. 5 weeks, but we have not heard much more. We do not know what the situation is over the fremont factory over the water from us. Elon tweets, he draws attention away perhaps from the company and onto himself. But they are looking at this new potential factory here in the United States to produce the cyber truck, and even a model y factory they hope will be on the east coast, according to another tweet. Emily tesla has not been immune to the volatility. The Stock Plunged almost 14 monday, regained about half that yesterday, down again today. You have to think if there is a broader economic downturn, that impacts a carmaker. Ed there are two schools of thought. The first is where is teslas demand coming from. This ties into the cyber truck debate. There are signs that the demand for what was once a concept vehicle is strong. In a market of pickup trucks, which is entrenched with three players, analysts raise is it just the diehards, the people who really believe in a concept and will go for it, or is it this idea that if the world is going to shift to a renewable energy, sustainable source of energy and electric vehicles, that tesla has first mover advantage . Even in a recession people buy vehicles. Yes, used do better than new in a recession. But tesla is pretty much the sole player, so it depends on what kind of support to get. Support they get. Emily does tesla have an advantage over other carmakers in this moment . Ed we have done some reporting around this. Part of the big gain this year comes from this idea that technologywise, tesla could be three to five years ahead of the big germans. This is what is incredible about the story. We talk about teslas market cap and it is greater than volkswagen, it volkswagen reduced 10 million vehicles last year. What investors are looking at is look at the range, look at actually the volumes they are producing. No matter how many billions of dollars these legacy european makers are putting into evs, they have yet to build a single viable competitive vehicle. Emily bloombergs ed ludlow there. Bloombergs ed ludlow there. Coming up, as the coronavirus spreads globally, workers had home en masse. Could Virtual Reality help the workforce . Bloomberg tech livestreaming on is twitter, and be sure to follow our global breaking news network on quick take on twitter. This is bloomberg. W . W . Uhiono emily welcome back to the best of bloomberg technology. Magic leap, which raised 2 billion to build an augmented reality device, is reviewing options, including a sale. According to people familiar with the matter they are , considering Strategic Options that could include a partnership stakeling a significant ahead of a potential listing. To edann deny spoke hammond and i spoke to the chief product officer about their technology. We have been innovating in this space for eight years. We are Building Technology for all day and everyone. That includes enterprise and consumers. We know the Inflection Point for enterprise is sooner, a 128 billion market opportunity. Enterprise is taking off first and then the consumer is following in the 2023 timeframe. It has aligned well when we see the 5g deployment become broader and driving across the consumer space. We are seeing early consumers adopt even today, but otherwise it is in the 2020 timeframe. 2023 timeframe. What we have now is the enterprise customers really starting to drive Adoption Across hundreds of use cases. We have enterprises that are points for early deployments with training use cases, cloud creation and collaboration which is , incredibly important as people collaborate across time and space because they cant get on planes and go to meetings or conferences. Emily i will never forget your first demo and the early concept videos of checking emails in the air. Holding the elephant in your hand. We have not seen that yet. How transformative is the technology, which was supposed to meet magic mixed with reality . Omar truly transformative. both of the examples you used you can do today. You can hold the elephant in your hand. A man on my team have People Living in magic leap all day. I have people who have gotten rid of all of the monitors in their desk and they work all day with magic leap. They have five or six monitors up, they have a video in the background. These use cases are what we are deploying today, there are actually five. It is not just internally but also with customers. We have a customer in paris, bnp paribas. That is a large real estate and banking customer of ours. They are using magic leap in software called spatial to connect employees around the world. They are also working with customers to give to our of projects on the ground and the initial intent was to become more green. Given the backdrop of what is going on today in the world, it is actually helping people collaborate around the world. You are talking about this being a boon to the business. The Consumer Market is not really developed yet. How do you get the consumer . That actually is a much and to bert market than the enterprise piece. Omar starting in the 2023 timeframe along with carrier customers we are starting to see , that Inflection Point happen. We have got magic fleet that customers are adopting and they are excited about our next generation product, which is a significant step forward for the industry. It will be half the size and double the fieldofview. It really removes the compromises you have to make in todays platforms from an experience perspective. We have magic leap three right behind it from a roadmap perspective coming out. We believe those products get us towards the vision we are driving, which is all day, everyone, everywhere. We are not building a helmet or a flimsy set up like lenses that dont deliver. Some of your competitors are building their own products. Apple i think is in the space. Facebook wants to do something the space. Time for magic leap who has grown fast to get some funding through the ipo market . Omar i cant speak to those conversations. But what i can tell you is that in those eight years, we have built a significant, broad portfolio that has put a moat around our leadership in the exar space. Xr space. And that makes it difficult for competitors to enter the market. We have got our Second Generation product which continues to expand our leadership. That gives us tremendous confidence that we can grab a share of that market and thats what we are excited about and confident in. Emily that was omar khan, chief product officer of magic leap. Xerox is out in the market trying to raise cash for the largest or what could be the largest hostile takeover in years. Despite recent rejections from hp, xerox is persisting in its bid. We spoke to a xerox nominee to the hp board and the former ceo of cowan. I have no comment on what i would do as an operating board member in terms of operations, but what i would do assuming the board agreed is engage in meaningful conversations and on what terms. The board has given us detailed reasons for why they rejected. Do you think they were wrong . Yes, i think they were wrong to reject. They rejected on incomplete facts and have not done their diligence on xerox. They have not been able to. They have not engaged and done their Due Diligence to find out if the synergies are real. What with a capital structure look like . What would the allocation of value be . All of those things are still up in the air. Some things the board or management have said would be damaging do you disagree with , them . They said it would put undue leverage. The leverage, xerox believes, there would still be investmentgrade after the transaction. If you look at the projections i , find them credible. In 2023, the leverage would be 2x, a good capital structure. I do not think there is any risk to the capital structure. What about the characterization of xerox as a desperate company that needs the deal to survive . Thats pejorative, obviously. Having been in this business i , made a lot of those comments myself, but i never met them when i said them but in this , case, it is not a desperate company. In fact, it has got management that is quite skilled at negotiating desperate times. They have managed a declining in a declining revenue period and delivered shareholder return of almost 100 in the last year. I do not think they are acting desperately. A theoretical situation you , get onto the board do you get excited about 24 a share . I would have to be inside hp to get a sense of that. But i think as an hp shareholder, i would say its higher than the cash was before the announcement and half the company. I think it is a nolose, frankly. Lets talk about the cash piece. Xerox reaffirmed they would make the offer as stamps. Have they got the financing, stands. Have they got the financing, does that change in this market . The banks are in and i think xerox confirms they are still in. When you look from the outside, you have to have conviction you would be a better steward of the capital there. Steward for the shareholders there. What gives you the confidence you would indeed be better . I dont want to personalize this against any hb director, i think they are all capable. You will have to replace one. Probably the weakest. But its clear i have a different philosophical approach to the activity going on today. Whether i would probably insist it be run differently in some respects that i dont know yet. I would certainly say a credible party has come, made an to discussants consolidation in an industry that needs it and i think we should make that conversation. This sounds cliched, when you go on aboard, you have an a board, you have a fiduciary obligation. You are the board which represents the owners and you owe it to the owners to give it a look. Emily that was xeroxs nominee for the hp board. Our parents prepared to teach their children in the midst of School Closures around the world . We speak to the ceo of an Online Education company next. Plus, how one of chinas Largest Ecommerce Companies is faring as the coronavirus spreads around the world. This is bloomberg. Emily now to the impact of the virus on education. Harvard, yellow, are now, and many schools and universities harvard, yale, cornell, and many schools and universities are asking students not to return to campus in moving Classes Online. There are questions for schools around the world about whether to close and how to keep kids learning in the meantime. I spoke to the ceo of khan academy, a Nonprofit Educational Organization that offers online videos to 93 million users globally. There are a lot of actors who are trying to put things together so we can keep students learning. The reality is there are some School Districts internationally in places like japan and south korea have already canceled schools nationwide. It will probably accelerate in the u. S. Over the next few weeks. The reality is, if they start in the next few weeks, they are likely to last through summer because we will probably not see pete cases for several weeks now. One logistic change that could happen is it could shift Summer Vacation up a few months and just resume class in the back half of summer. That could simplify a lot of things. Assuming that is not going to happen or we see some type of hybrid, a lot of districts are thinking of how to virtualize. Theres a lot of complexity there if they can operationally do it, but there are equity issues of if all students have access. We are thinking about how do we put our materials together, they are all free and accessible, as much practice and as much feedback looking for ways of looking for ways of teachers and , parents and officials to keep track of what students are doing. How do we make it easy to use if students are home for extended periods of time, possibly months, so they can keep learning. Emily how do you structure a day of learning at home . What can parents and teachers do . My general sense is to keep it as simple as possible. If i have young kids, Elementary School age, if you can do two or three hours of focused learning a day, that would be great. I would really focus on the basics, maybe an hour of reading, an hour of math. Net reading can really just be focused on the students being able to read and you as a parent spending time talking about what theyre reading or if they are younger, you could be with them for an hour a day. We have an app that has over 100 titles and has other things on math and science, its all noncommercial. If youre going to elementary or middle school age, there is a reading this we can provide for parents. On the math side, we feel we have families covered from as early as prek all the way through high school and college, whatever they need. Students are able to put in two 30minute sessions a day of focus practice, the system will progress along and they can get there basics covered. Above and beyond that, if you get their basics covered. Above and beyond that, if you can do an hour of writing a day, journaling, thinking about what is going on in the world, that is interesting. For high school, we can support them for biology, chemistry, physics. We have economics and American History and civics as well. Emily do you have any lessons or anecdotes from across asia where you mention that students have been at home for weeks, where things are working and where things might not be working . It is coming in bits and pieces. It first came on our radar last week, when a teacher in south korea had to virtualize and is using khan academy heavily with his students. Thats when we realized we had to start working heavily and it was our duty as an ngo. Emily if there are widespread School Closures here in the United States for an indefinite amount of time, how welloff do you think our children will be . Its obviously not great, it is not an ideal situation, but as much as possible, i think we can try to make it a glass halffull type of situation. If they are able to use the types of online materials we talked about, part of the glass halffull is whatever patterns we can get people learning. That will set a pattern for what is traditionally called the summer slide, where not only are kids not learning, but they forget. So that is in opportunity of sorts. I hope that districts are able to provide some support for kids who dont have resources at home or internet. Maybe keep certain places open. It would not be for all of the kids because the density of the kids coming on site would be lower, so theres less of a chance of spreading the virus. Emily sal khan there. Ecommerce plat form pinduoduo remains positive despite its recent sales miss. We hear from the Vice President of strategy next. This is bloomberg. Emily several companies are expecting headwinds from the coronavirus pandemic, including chinese ecommerce giants like alibaba. Pinduoduo is no exception. The Company Reported Fourth Quarter fails and missed viceates, but the president of strategy is still positive. In terms of impact ecommerce, we are seeing an onset of coronavirus outbreaks in china that ecommerce played a big part in supporting and stabilizing the lives of daily lives of the people. We are the second largest in china in terms of user account, so millions have come to rely on us for daily necessities. In trying times like this our priorities are with our users, so we have continued to provide subsidies against daily supplies dailyical supplies, necessities, from the very beginning we see surge outpacing demand in the market. That said the other thing i , would point out is that 13 of our gross merchandise volume is in agricultural produce. We have been a strong Online Platform for the purchase of agricultural products. As you think about people staying home and looking for supplies we leverage our network , through this very difficult time to make sure farmers whose businesses have been impacted because of the disruption of transportation are able to make goods available efficiently online consumers. At the same time, we spent a lot of effort making sure goods are delivered to users in the comfort of their home. Haslinda but there has been a disruption to the supply chain. Even alibaba has said there could be an impact on consumer spending. David absolutely. We also expect the first quarter, because of coronavirus to see a negative impact to our , growth. That said, we have been observing positive trends in terms of Consumer Behavior as china begins to resume work since the 10th of february. We are roughly about a month in. We have seen 90 recovery in the Delivery Network in china and we have seen a pickup and activities among our merchants and users. Take february, a three day campaign of our 10 billion r d Subsidy Program. What we have seen is we sold 50,000 iphones and 20,000 max within the first they of that, first 12 hours of that, so consumer demand is positive and our outlook remains positive. Haslinda is there a risk for smaller merchants . David yes, they are more exposed because of cash flow concerns and the price disruptions and higher cost of logistics. We come as a platform, have actually set aside one million in r d reserves for a Subsidy Program to help ease that transition back to normal. Haslinda pdd announced results that still fell short of expectations. Are you disappointed . David on the contrary, we are positive on our own result. We believe the fourth was actually very strong. First of all, we hit a new milestone in terms of volume. We reached a one trillion r d mark in around 4. 5 years. Secondly, we added 50 million active users in the Fourth Quarter. Thats around twice that of our nearest competitors. We continue to see more people coming to our platform and becoming engaged and that bodes well for the long term. Monetization or revenue is not our focus today. Our priority is improving User Engagement and interactions. Haslinda you are competing with alibaba, targeting millions a billion active users by 2024. Can you do that earlier . David we added 50 million users in the last quarter and that is two times what our competitors have added to the platforms. We see no reason why that pace shouldnt continue. It is just a matter of time. What what if your haslinda what is your three to five year strategy . Pdd has always been seen as a platform targeting the third tier cities. Are you maintaining that strategy or will you be tweaking that to compete effectively with alibaba . David im actually really glad you asked this question because it will allow me to clarify. We have been designed as a platform that serves the entire population of china. If you look at user distribution, it is like chinas distribution between rural and urban areas. But more importantly as we begin , to win more trust with our users to build more engagement, we are actually seeing activities pickup in first and second tier cities. For example, in november, 45 of volume waserchandise generated by users in first tier cities. Highend cosmetics, fruit. As a strategy, i would say our platforms continue to understand and promote interactions between our users, to understand what they may be using for and to looking for and make available a breadth of products and diversity and continue to encourage them to share their experience with other people. Haslinda black friday last year, you partnered with amazon, which was seen as successful. Any reason to think you will deepen that partnership with amazon . David amazon and us partnered during black friday to bring thousands of units to the chinese customers. This is consistent with our strategy of differentiated shopping experiences to the user and giving them access to Higher Quality products with certainty around authenticity and we will continue collaborations going forward. Emily that was the Vice President of strategy. That does it for this edition of the best of bloomberg technology. We will bring you all of the latest in tech throughout the week. Tune in every day 5 p. M. In new york, 2 00 p. M. In San Francisco. We are also livestreaming on twitter. And be sure to follow our global breaking news network quiktake on twitter. 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 ] carol welcome to bloomberg businessweek. Im carol massar. Jason im jason kelly. The outbreak is now in pandemic. Carol the travel ban from the europe to the United States has already rattled the market. Jason more than 100 nations reported
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