WEBVTT - Things Are Going Well on Campus, NJIT President Says 0:00:00.720 --> 0:00:03.720 This is Bloomberg Business Week. I'm Carol Masser and I'm 0:00:03.800 --> 0:00:06.320 Jason Kelly. We're right here every day bringing you the 0:00:06.400 --> 0:00:11.160 latest news from the world's of business and finance, plus technology, politics, economics, 0:00:11.240 --> 0:00:14.280 all harnessing the power of Business Week reporters and editors. 0:00:14.440 --> 0:00:16.439 And of course Carol that's part of a team of 0:00:16.520 --> 0:00:20.439 twenty seven hundred journalists and analysts more than a hundred 0:00:20.480 --> 0:00:23.240 and twenty countries and Jason. You can download Bloomberg Business 0:00:23.280 --> 0:00:26.239 Week on iTunes, SoundCloud, bl Bloomberg dot com. You can 0:00:26.280 --> 0:00:28.640 also listen to our radio show at two pm Eastern 0:00:28.680 --> 0:00:31.560 on Bloomberg Radio every weekday, or watch us on YouTube 0:00:31.600 --> 0:00:36.280 by searching Bloomberg Global News. Let's set the Business Week agenda. 0:00:36.320 --> 0:00:39.320 Gina Martin Adams is with US, chief Equity Strategies for 0:00:39.320 --> 0:00:42.360 Bloomberg Intelligence. She joins us from New Jersey, as does 0:00:42.440 --> 0:00:45.520 Dave Wilson, stocks editor for Bloomberg, also in the great 0:00:45.520 --> 0:00:47.800 state of New Jersey. I want to get to Gina 0:00:47.840 --> 0:00:49.320 a second, but before we do that, and we're gonna 0:00:49.360 --> 0:00:51.519 talk about this a couple of times throughout the uh 0:00:51.840 --> 0:00:54.440 of course of the show. Dave Wilson I laid eyes 0:00:54.480 --> 0:00:58.000 on him via NEXTI for the first time in a 0:00:58.120 --> 0:01:00.960 long time, in six seven months because a group of 0:01:01.040 --> 0:01:05.000 us got together virtually to celebrate his thirtieth anniversary at Bloomberg, 0:01:05.160 --> 0:01:09.640 which is so WOA incredible. It's such a woa Dave, congratulations, 0:01:09.640 --> 0:01:12.880 that's a big deal. Thank you. I appreciate that. Yeah, 0:01:13.040 --> 0:01:15.280 I mean, man, you've got those how many blocks on 0:01:15.360 --> 0:01:17.880 your well and your desk at home or desk at work, 0:01:20.440 --> 0:01:22.759 they're all the desk it works. So I haven't seen 0:01:22.840 --> 0:01:24.959 them in six and a half months, and I'm looking 0:01:25.000 --> 0:01:28.440 forward to the fourth block, just so the audience knows. 0:01:28.640 --> 0:01:30.920 You get sort of a big sort of base when 0:01:30.959 --> 0:01:33.640 you get to ten years at Bloomberg LP, and then 0:01:33.680 --> 0:01:37.080 you get another cube, but twenty another one at twenty five, 0:01:37.480 --> 0:01:41.000 and then finally your tower, so to speak, tops out 0:01:41.280 --> 0:01:43.279 at thirty years. And by the way, each the blocks 0:01:43.360 --> 0:01:47.559 is a different color, so it's really hold on a second, 0:01:47.560 --> 0:01:51.400 hold on a second, topped up four now four now, 0:01:51.520 --> 0:01:53.880 Dave Wilson, come on, well I get thirty five, David, 0:01:53.880 --> 0:01:57.920 there's gonna be another five year blocks. It's gonna be Yeah, 0:01:58.160 --> 0:02:00.120 we're gonna we're gonna talk to the powers that be 0:02:00.160 --> 0:02:03.360 about that make sure they do that. All right, let's 0:02:03.400 --> 0:02:06.520 set the Bloomberg Business Week agenda, because you've got Gina 0:02:06.560 --> 0:02:09.280 Martin Adams, also with US chief Equity Strategies at Bloomberg 0:02:09.280 --> 0:02:11.520 Intelligence on the phone from New Jersey. As we mentioned, 0:02:11.600 --> 0:02:17.200 Dave Wilson, our stocks editor, he's also here from New Jersey. Um, 0:02:17.240 --> 0:02:19.400 you know, Gina, let's talk a little bit about this 0:02:19.440 --> 0:02:21.400 market trade because we get it at the top of 0:02:21.400 --> 0:02:25.160 the broadcast. Everything is okay, We've got a rally underway. Yeah, 0:02:25.240 --> 0:02:29.000 everything's okay today. It wasn't okay Friday, it was okay Thursday. 0:02:29.120 --> 0:02:30.880 You know, I think it's a lot of back and forth. 0:02:30.919 --> 0:02:32.760 I feel like I'm playing ping pong the last couple 0:02:32.760 --> 0:02:35.280 of days. But in reality, the stock market's kind of 0:02:35.320 --> 0:02:38.680 gone nowhere. We've been really stuck around our fifty day 0:02:38.680 --> 0:02:43.400 moving average on the SMP five since the beginning of October, 0:02:43.520 --> 0:02:45.880 and I'm not sure we're going to get materially off 0:02:45.919 --> 0:02:49.280 of that moving average considering all of the uncertainty that 0:02:49.320 --> 0:02:51.240 we're currently faced with. You know, until we get a 0:02:51.240 --> 0:02:54.960 fiscal package or get past the election. Even getting past 0:02:54.960 --> 0:02:58.440 the election, will we have some resolution with the election. 0:02:58.480 --> 0:03:00.640 There's just a lot of uncertain tea out there, so 0:03:00.680 --> 0:03:03.880 I think we're going to be somewhat range bound. That's said. 0:03:04.480 --> 0:03:06.960 The couple of things really stand out to us. The 0:03:07.040 --> 0:03:10.320 first is, really, since the beginning of September, our our 0:03:10.360 --> 0:03:14.240 sector strategy had said, prepare for some rotation out of 0:03:14.280 --> 0:03:18.720 the COVID defensive stocks and into more cyclically oriented groups 0:03:18.720 --> 0:03:22.320 in the SNP five. We do appear to be continuing 0:03:22.360 --> 0:03:25.600 to see that. Slowly but surely. Tech stocks have sort 0:03:25.600 --> 0:03:30.000 of deflated from extreme overbought conditions and have now been 0:03:30.040 --> 0:03:32.679 trading somewhat sideways for the last couple of weeks, where 0:03:32.720 --> 0:03:36.240 we're starting to see some incremental improvement in some cyclical groups. 0:03:36.280 --> 0:03:39.480 So I think that's important to watch. The other thing is, 0:03:39.560 --> 0:03:42.840 just as much as we were focused on tech in September, 0:03:42.880 --> 0:03:46.720 there was an absolute route in energy. Last week, all 0:03:46.760 --> 0:03:49.680 stocks were up, but energy stocks were down. The month 0:03:49.680 --> 0:03:52.880 of September, energy stocks tripled at the colossis for the 0:03:52.920 --> 0:03:56.040 tech sector. I mean, it's just been absolutely brutal. So 0:03:56.040 --> 0:03:58.240 I think you want to watch the energy sector pretty carefully, 0:03:58.240 --> 0:04:01.000 and it is actually experiencing a little bit of country yeah, 0:04:01.440 --> 0:04:05.200 J And so Dave. As you look at some of 0:04:05.240 --> 0:04:07.000 the specific names. I mean, I look at the biggest 0:04:07.000 --> 0:04:10.560 mover in the SMP right now, and it is very 0:04:10.640 --> 0:04:16.880 much headline driven. Regeneration absolutely because the company's COVID nineteen 0:04:17.000 --> 0:04:20.599 cocktail was used on President Trump, and so you know 0:04:20.720 --> 0:04:23.320 you've got candor raising against rating on the stock when 0:04:23.480 --> 0:04:25.800 they're recommending their clients by for the first time in 0:04:25.880 --> 0:04:30.120 two years, you've got spb Lyrinc talking about how the 0:04:30.200 --> 0:04:34.240 decision to use the cocktail on Trump was quote the 0:04:34.320 --> 0:04:38.120 ultimate validation for their therapy, which hasn't even gotten to 0:04:38.160 --> 0:04:41.160 the point where you can give it to people under 0:04:41.200 --> 0:04:44.920 an emergency used authorization from US regulators, which is a 0:04:45.160 --> 0:04:48.440 lot of the COVID nineteen tests and treatments have been 0:04:48.480 --> 0:04:51.280 made available. Uh, you know, Trump was able to get 0:04:51.279 --> 0:04:55.120 it to what they call a compassionate use. So you 0:04:55.160 --> 0:04:58.880 know the idea is looking ahead. I mean, if you've 0:04:58.920 --> 0:05:01.520 got the president take in your drug, then then maybe 0:05:01.600 --> 0:05:04.320 it's in a position where it will actually move forward 0:05:04.600 --> 0:05:06.719 and more people will be able to do that. Regenera 0:05:06.760 --> 0:05:10.400 it's really been trying to diversify its business in any case. Uh, 0:05:10.480 --> 0:05:13.000 you look at their revenue, it's still primarily from their 0:05:13.000 --> 0:05:15.839 eye treatment a LEAH, which has been around for several years, 0:05:16.160 --> 0:05:20.279 so uh, definitely being seen as a plus. Uh. Actually, 0:05:20.320 --> 0:05:22.960 since late Friday when we found out from that White 0:05:23.000 --> 0:05:27.040 House physician that they had used regeneral therapy, I mean, 0:05:27.160 --> 0:05:31.240 stock has been on the way up. Yeah. Yeah, Gina, 0:05:31.320 --> 0:05:33.040 what's the big thing you're looking at the balance of 0:05:33.080 --> 0:05:36.159 the week here? Um. I think I want to continue 0:05:36.160 --> 0:05:39.560 to watch for this rotation. Obviously, everyone's watching fiscal policy 0:05:39.600 --> 0:05:42.120 as well, So if we get some action on fiscal policy, 0:05:42.600 --> 0:05:44.600 I think that could be a trigger for a little 0:05:44.600 --> 0:05:46.640 bit of improved first tolerance, at least in the short 0:05:46.720 --> 0:05:48.880 run for investors. But I think you want to watch 0:05:48.920 --> 0:05:52.599 really carefully as to where investors actually bit up stock 0:05:52.640 --> 0:05:55.159 prices and that environment. Does it go into COVID defenses 0:05:55.279 --> 0:05:57.960 or do we start really banking on more of an 0:05:57.960 --> 0:06:02.280 economic recovery and suing into anyone. Yeah, big questions, big 0:06:02.360 --> 0:06:04.200 questions out there, all right, Thank you so much, Gina. 0:06:04.200 --> 0:06:08.039 Martin Adams, chief equity strategist for Bloomberg Intelligence, on the 0:06:08.080 --> 0:06:10.960 phone from New Jersey. David Wilson, the anniversary man, celebrating 0:06:11.000 --> 0:06:15.120 thirty years at bloom This is Bloomberg Business Week with 0:06:15.200 --> 0:06:19.320 Carol Masser and Jason Kelly on Bloomberg Radio. Let's check 0:06:19.360 --> 0:06:22.120 in with one of our pals, Dr Joel Bloom, president 0:06:22.160 --> 0:06:25.440 of the New Jersey Institute of Technology, and j I 0:06:25.600 --> 0:06:27.279 t we know it as we've done a lot of 0:06:27.279 --> 0:06:29.880 fun broadcasts from there over the years. But it's a 0:06:29.920 --> 0:06:33.400 different world, that is for sure. Dr Bloom joining us 0:06:33.440 --> 0:06:36.320 on the phone from Newark. So, first of all, how 0:06:36.360 --> 0:06:38.880 are you What are things like on campus? I know 0:06:38.960 --> 0:06:43.400 you started to welcome some students back last month, Jason, 0:06:44.080 --> 0:06:48.560 Things are going well on campus. UM, about two thousand 0:06:48.800 --> 0:06:55.400 students day here. We've got about hundred in residents, so 0:06:55.640 --> 0:06:58.360 and we're doing some converge learning. Some students are learning 0:06:58.360 --> 0:07:02.359 in classroom while at the concurrently tuning in and we 0:07:02.400 --> 0:07:06.320 are doing some remote learning. Our enrollment is held up 0:07:06.440 --> 0:07:10.360 very nicely. Um. We're a little over eleven thousand, six 0:07:10.400 --> 0:07:14.680 hundred students this year in total. And we have been 0:07:14.720 --> 0:07:19.320 managing the virus the spread where I've got to be 0:07:19.400 --> 0:07:22.280 very careful what I say here, but we've had a 0:07:22.320 --> 0:07:27.000 total of nine cases. So we we test everything, uh, 0:07:27.120 --> 0:07:31.920 the air, waste, water, and obviously individuals, so we've been 0:07:31.960 --> 0:07:35.880 able to manage the virus, deliver our education open all 0:07:36.000 --> 0:07:39.679 labs and open much of our campus. Thank you for asking. 0:07:39.880 --> 0:07:42.960 I hope you are well. We're doing okay. You know, 0:07:43.080 --> 0:07:46.280 it's a remote world that we're living in, right Carol, Yeah, 0:07:46.360 --> 0:07:48.600 totally remote. I mean, it sounds good that you've been 0:07:48.640 --> 0:07:50.400 able to at least get, like you said, you know, 0:07:50.720 --> 0:07:53.840 labs are open, get some students on campus, because we 0:07:53.880 --> 0:07:57.000 know that that is so crucial Dr Bloom in terms 0:07:57.040 --> 0:07:59.480 of the learning experience. You can do stuff virtually, no 0:07:59.560 --> 0:08:01.320 doubt about that. We're doing a radio show and I 0:08:01.320 --> 0:08:04.560 think we do it fairly well, you know, virtually. But nonetheless, 0:08:04.600 --> 0:08:06.720 there's nothing like that face to face, especially when it 0:08:06.720 --> 0:08:11.520 comes to academia, and especially when it comes to the 0:08:11.600 --> 0:08:17.160 to the STEM discipline, you know, the Computer Science, Engineering, UM, 0:08:17.280 --> 0:08:22.720 Architecture UM. It's almost unimaginable as to how you can 0:08:23.040 --> 0:08:27.240 teach students, and we know the challenges of these disciplines 0:08:27.720 --> 0:08:32.400 only remotely. So while we have a predominance of freshman 0:08:32.480 --> 0:08:36.520 and sophomores on campus because they're the ones that are 0:08:36.559 --> 0:08:39.319 gonna be most challenged to get into learning in blocks 0:08:39.320 --> 0:08:42.320 of fifteen weeks, we also again have opened all of 0:08:42.320 --> 0:08:46.160 our labs for our juniors and seniors as well. It's 0:08:46.200 --> 0:08:52.320 that lab, hands on, experienced students working in teams, students 0:08:52.320 --> 0:08:56.400 doing the problem solving that makes this kind of education 0:08:56.640 --> 0:09:01.680 a real challenge to only be done online again, particularly 0:09:01.720 --> 0:09:06.199 at the undergraduate level and at the PhD research level. 0:09:07.640 --> 0:09:11.439 And so Dr Bloom, you know, we get new guidance, 0:09:11.800 --> 0:09:14.440 it feels like fairly frequently in a big set of 0:09:14.440 --> 0:09:19.000 new guidance from from the c d C today, How 0:09:19.080 --> 0:09:22.119 do you where do you take your cues from? Obviously 0:09:22.440 --> 0:09:25.840 you are very well read in and very familiar with 0:09:26.000 --> 0:09:30.120 science at its core, but who are you looking toward 0:09:30.480 --> 0:09:32.600 more or less, who has really come through for you 0:09:32.640 --> 0:09:35.440 in terms of you feel like providing the sort of 0:09:35.440 --> 0:09:39.240 information that is actionable and that you trust as you 0:09:39.679 --> 0:09:43.720 make some pretty big decisions around student and staff and 0:09:43.760 --> 0:09:48.720 faculty safety. Well, here in Newark were very fortunate. We've 0:09:48.720 --> 0:09:52.680 got another number of hospitals. We have one on one 0:09:52.760 --> 0:09:57.520 corner of our campus St. Michael's, and one a little 0:09:57.600 --> 0:10:01.800 further on the opposite corner You're Diversity Hospital, and they, 0:10:01.840 --> 0:10:06.240 in fact our health care providers St. Michael's for our 0:10:06.360 --> 0:10:11.160 students and for our faculty and staff. University hospitals, they 0:10:11.160 --> 0:10:17.920 have outstanding epidemiologists, outstanding lab and lab access um. So 0:10:18.000 --> 0:10:23.160 we have been relying on their expertise on the opposite 0:10:23.200 --> 0:10:26.439 corners of our campus to engage to talk with the 0:10:26.640 --> 0:10:30.200 test and and again to keep us up to date, 0:10:30.679 --> 0:10:34.240 very timely turn around, if you will, on our testing 0:10:34.400 --> 0:10:38.080 and our test results. And we've used other consultants again, 0:10:38.400 --> 0:10:42.840 particularly in the area of waste water testing for our 0:10:42.880 --> 0:10:46.080 residence soils. Can I just say that is such a 0:10:46.120 --> 0:10:48.000 cool thing, Like we have a great cover story in 0:10:48.040 --> 0:10:52.240 the magazine, you know that's looking at the things as 0:10:52.240 --> 0:10:54.120 we all wait for a vaccine, what else can be 0:10:54.160 --> 0:10:56.760 done kind of before that, and we talk about you know, 0:10:56.840 --> 0:10:58.680 quick testing where if we can all take a test 0:10:58.720 --> 0:11:00.280 every day and get an idea whether not we have 0:11:00.360 --> 0:11:03.040 the virus. If you could do that every day every person, 0:11:03.640 --> 0:11:07.199 it would be much more easy er to open up 0:11:07.240 --> 0:11:09.800 our economy. But wastewater that has turned out to be 0:11:09.880 --> 0:11:12.880 something that it's a right. It shows up early on 0:11:12.920 --> 0:11:17.120 if somebody has the virus, it absolutely does, and we 0:11:17.200 --> 0:11:20.520 did have and we have four we're using five of 0:11:20.520 --> 0:11:23.160 our residence halls and one of them one of our 0:11:23.240 --> 0:11:25.800 law just one that has three hundred students. We did 0:11:25.840 --> 0:11:29.760 get a positive sample. Again that's perceived generally as a predictor. 0:11:30.240 --> 0:11:34.920 We quarantined all three hundred students. We did now individual 0:11:35.080 --> 0:11:38.880 testing beyond the surveillance testing that we do with four 0:11:39.320 --> 0:11:43.880 individuals every week, and ultimately we believe there was one 0:11:43.960 --> 0:11:47.560 case that we somewhat already knew about that in that 0:11:47.679 --> 0:11:51.080 residin hole that was quarantine. That turned out to be 0:11:51.120 --> 0:11:54.720 the indicator. But the two hundred and eight plus students 0:11:55.160 --> 0:11:58.839 all tested negative. As a tested negative, we put them 0:11:58.880 --> 0:12:03.480 back into the flow of the regular student population. So again, 0:12:03.520 --> 0:12:07.640 it's it's being thoughtful, it's being prepared, it's being intentional, 0:12:08.120 --> 0:12:11.920 and it's being in pought as you know, smart and lucky. 0:12:11.960 --> 0:12:14.880 So Dr Bloom, I do wonder with so many people 0:12:15.000 --> 0:12:19.720 on campus, I do wonder too about how you do 0:12:19.840 --> 0:12:22.720 impose restrictions about what everyone does. And I bring it 0:12:22.800 --> 0:12:26.920 up considering the last week and we saw out of Washington, 0:12:27.440 --> 0:12:29.920 you know, the last couple of weeks, whether it's for 0:12:30.040 --> 0:12:33.079 Supreme Court nomination, we saw people gathered even in an 0:12:33.080 --> 0:12:36.800 open setting, and yet we are now realizing or whether 0:12:36.840 --> 0:12:39.760 it's on the campaign, realizing how these things can be 0:12:39.800 --> 0:12:43.520 problematic and cause those virus numbers to go higher. How 0:12:43.559 --> 0:12:48.880 do you basically keep college students under control. Well, we 0:12:49.000 --> 0:12:55.119 have outstanding students. They're smart, their STEM receiving STEM education. 0:12:55.840 --> 0:12:58.280 They know what their future looks like, and why would 0:12:58.280 --> 0:13:01.920 they jeopardize it by either violating what we've asked them 0:13:01.960 --> 0:13:07.040 to follow, which is remain masked, remain socially distant. We 0:13:07.120 --> 0:13:09.600 have a pledge that every time they open up their 0:13:09.679 --> 0:13:13.280 computer or their devices that they have the pledge they've 0:13:13.280 --> 0:13:17.760 done the following and followed the rules, including handwashing, etcetera. 0:13:18.160 --> 0:13:22.320 So our students have been very, very compliant. Again, I 0:13:22.360 --> 0:13:25.400 think it has to do with their intelligence, their drive, 0:13:25.640 --> 0:13:28.920 what they want to achieve, and they see what's at 0:13:28.960 --> 0:13:33.240 the end of this education free and four job offers 0:13:33.520 --> 0:13:36.960 um and very often uh they will be working in 0:13:36.960 --> 0:13:41.000 the professions. They are going to help not only this economy, 0:13:41.040 --> 0:13:47.400 but help treat and prevent future pandemics. These are our science, technology, 0:13:47.520 --> 0:13:51.800 engineering mathematicians. And we know we are in the in 0:13:51.840 --> 0:13:56.720 the tech economy. Every company is a tech company today. 0:13:56.800 --> 0:14:00.679 So I think they see the vision, their moth, They 0:14:00.880 --> 0:14:04.319 understand what they need to do, and again they are 0:14:04.440 --> 0:14:09.680 following the rules. And again we are very fortunate and 0:14:09.679 --> 0:14:12.520 and Dr bloom along those lines. I mean, I have 0:14:12.640 --> 0:14:14.560 to say, having spent some time on your campus and 0:14:14.559 --> 0:14:16.800 having spent some time with you and a lot of 0:14:16.800 --> 0:14:19.480 your students and faculty, there is this sort of sense 0:14:19.480 --> 0:14:21.400 of purpose and a sense of mission that I feel 0:14:21.480 --> 0:14:24.800 like sometimes candidly as we look across the higher education 0:14:24.880 --> 0:14:29.320 landscape maybe doesn't exist across the board, and it does 0:14:29.440 --> 0:14:33.240 feel like we are at this moment of it's almost 0:14:33.280 --> 0:14:36.760 like this existential inflection point right for higher education where 0:14:36.760 --> 0:14:39.440 people are asking a lot of big questions about why 0:14:39.440 --> 0:14:41.280 should I go, Where should I go? What am I 0:14:41.360 --> 0:14:44.280 going to get out of it? What do you do 0:14:44.440 --> 0:14:48.680 as someone who's ultimately responsible for this institution to ensure 0:14:48.840 --> 0:14:51.920 that you're essentially continuing to be a step ahead of 0:14:51.920 --> 0:14:57.680 that debate. Well, first and foremost, we've got by we 0:14:57.800 --> 0:15:02.120 lead by example the exam couple of our alumni, what 0:15:02.320 --> 0:15:07.760 they are doing professionally, how they are succeeding, the example 0:15:07.880 --> 0:15:11.800 of the companies that come to campus that recruit here. 0:15:11.840 --> 0:15:14.240 We could just go up and down the alphabet from 0:15:14.560 --> 0:15:19.000 Alphabet to Amazon, to Apple to Microsoft. So they come 0:15:19.040 --> 0:15:22.920 here with a strong sense of conviction. Again, a predominant 0:15:22.920 --> 0:15:26.360 student coming to ng I t is middle to lower income, 0:15:26.720 --> 0:15:31.360 very often economically at the bottom quintile of family income. 0:15:31.680 --> 0:15:36.080 So again there are very often self motivated. We constantly 0:15:36.240 --> 0:15:40.400 keep them in a context which they are mentored. They 0:15:40.440 --> 0:15:44.120 get an opportunity to apply early on what they are learning. 0:15:44.160 --> 0:15:48.000 That comes back to what Carol was mentioning about the 0:15:48.080 --> 0:15:53.520 lab environment. We have them work in teams, We have 0:15:53.840 --> 0:15:59.640 them in front of faculty who make the theoretical very 0:16:00.040 --> 0:16:03.560 lie and make it very real. So see the goal 0:16:04.160 --> 0:16:07.080 of employment, how they contribute, how they can improve the 0:16:07.160 --> 0:16:10.520 quality of life. They see the research that's going on here. 0:16:10.560 --> 0:16:14.080 We've got some of the NSF money to do rapid 0:16:14.200 --> 0:16:20.480 research in the environmental spread of the COVID nineteen virus. 0:16:20.800 --> 0:16:25.520 So it's it's all very real. It's very applied, very hungry, 0:16:25.720 --> 0:16:29.880 very motivated students. And again we try to lead by 0:16:29.960 --> 0:16:34.000 example of what the lungs have achieved the companies that 0:16:34.080 --> 0:16:39.440 we partner with, and how they can be innovators, entrepreneurs 0:16:39.800 --> 0:16:44.400 and have a very significant impact on the careers and 0:16:44.440 --> 0:16:48.280 in the professions that they choose. All right, we're gonna 0:16:48.320 --> 0:16:50.320 have to leave it there. Um, Dr Joel Bloom. We 0:16:50.320 --> 0:16:52.480 always enjoy time with you. President of the New Jersey 0:16:52.480 --> 0:16:55.160 Institute of Technology on the phone from New York, New Jersey. 0:16:55.360 --> 0:16:57.960 Was it Um Longstone who that we talked to Palenteer 0:16:58.360 --> 0:17:00.600 about the need for more engineer right, we were talking, 0:17:00.600 --> 0:17:03.080 you're lawyers, more engineers. Yeah, I fewer lawyers, more into 0:17:03.120 --> 0:17:07.120 the world to be better with more engineers. Yeah, totally 0:17:07.359 --> 0:17:09.960 totally sell out in a heart beat. It would, especially 0:17:10.000 --> 0:17:12.000 at NJ I T because we've seen them and I 0:17:12.040 --> 0:17:15.000 do think that you know, that sense of purpose is real, 0:17:15.359 --> 0:17:17.480 you know that he's basically, look, these guys are going 0:17:17.520 --> 0:17:19.720 to mess this up, right. They get it. They get 0:17:19.800 --> 0:17:22.199 if they understand right, the dangers in place if you 0:17:22.200 --> 0:17:24.679 don't kind of do the right thing. This is Bloomberg 0:17:24.680 --> 0:17:29.119 Business Week with Carol Masser and Jason Kelly on Bloomberg Radio. 0:17:29.440 --> 0:17:32.520 Among the celebrities, by the way, Carol who showed up 0:17:32.520 --> 0:17:37.920 at Dave Wilson's thirtieth anniversary little virtual gathering earlier. Mike 0:17:37.960 --> 0:17:41.960 Reagan of course, of course, paying homage, paying his respects 0:17:42.000 --> 0:17:46.879 to the goat when it comes to markets coverage, exactly exactly. 0:17:46.920 --> 0:17:49.560 He of course is one of the senior editors looking 0:17:49.600 --> 0:17:52.840 after our markets coverage. It's got a great story that 0:17:52.880 --> 0:17:57.080 I read this weekend about what the markets were looking 0:17:57.119 --> 0:18:00.520 at ahead of last Friday and then everything that ensued, 0:18:00.640 --> 0:18:02.960 and that's been quite a doozy, to say the least, 0:18:03.000 --> 0:18:05.720 and to use a technical market term. Joel Weber also 0:18:05.800 --> 0:18:09.280 joins us the editor of Bloomberg Business Week. So this, Joel, 0:18:09.320 --> 0:18:12.080 I have to say, as I always, as I often do, 0:18:12.160 --> 0:18:14.440 hats off to you because this was one of these 0:18:14.440 --> 0:18:16.960 stories that I knew I wanted to read and then 0:18:17.119 --> 0:18:18.720 like I woke up Saturday morning and there it was, 0:18:18.760 --> 0:18:21.399 so thank you. Yeah, you can give me new credit 0:18:21.440 --> 0:18:24.560 for that. Goes ult Mike, who I think you know, 0:18:24.600 --> 0:18:27.040 we had tasked sort of with a earlier in the week. 0:18:27.119 --> 0:18:30.199 He was planning on doing a story um that was 0:18:30.480 --> 0:18:34.320 sort of future minded, and then basically the biggest news 0:18:34.400 --> 0:18:38.040 event of the year, which is hard to believe. What's 0:18:38.080 --> 0:18:43.119 just saying something exactly, Um, it happened, so uh he 0:18:43.280 --> 0:18:46.639 had basically had to sort of rework everything, um uh 0:18:46.680 --> 0:18:48.800 you know, starting on Friday morning. But I think the 0:18:49.200 --> 0:18:51.960 thing that um, you know makes it the story that 0:18:52.000 --> 0:18:55.280 it is is ultimately about like how how the markets 0:18:55.280 --> 0:18:59.000 are trying to anticipate these next few weeks ahead of 0:18:59.000 --> 0:19:02.840 the election. Um, and the thing that I've done was 0:19:02.880 --> 0:19:04.880 so interesting. And the thing that I'll hope that he'll 0:19:04.920 --> 0:19:06.359 talk about a little bit here is this idea of 0:19:06.440 --> 0:19:08.199 just how how much of this was already kind of 0:19:08.240 --> 0:19:10.919 baked in and that's sort of you know, built into 0:19:11.000 --> 0:19:13.960 today's pop if you will, um, so, Mike, when you 0:19:14.040 --> 0:19:17.560 talk a little bit about that. Uh yeah, Joel, thanks 0:19:17.560 --> 0:19:20.879 for having me on. Guys, Uh yeah, Save Wilson. I 0:19:20.880 --> 0:19:22.359 don't know if I was a celebrity, but I i 0:19:22.560 --> 0:19:24.320 he was one of the guys who interviewed me in 0:19:24.359 --> 0:19:29.400 my first uh job interview at Bloomberg. So uh thought 0:19:29.400 --> 0:19:31.960 applies to shop for that happy anniversary, Dave. He's uh 0:19:32.480 --> 0:19:34.919 one of the legends of the newsroom. But yeah, so 0:19:35.119 --> 0:19:38.639 said the story looked a lot at the implied volatility 0:19:38.640 --> 0:19:41.840 in the market through the lens of Dick's futures. And 0:19:41.880 --> 0:19:45.240 if you're not familiar with what's that is it basically 0:19:45.800 --> 0:19:50.480 treated as insurance policies against a drop in stocks. Um. 0:19:50.880 --> 0:19:53.280 And you can buy Vick's futures all the way out 0:19:53.400 --> 0:19:56.639 to say, June of next year, and the way he 0:19:56.720 --> 0:20:00.200 usually works is those far out in the future, your 0:20:00.240 --> 0:20:04.280 contracts are usually more expensive because uh, you know, you're 0:20:04.359 --> 0:20:07.720 kind of buying a longer term insurance policy and you 0:20:07.760 --> 0:20:10.879 know you're protecting against swings in the market between now 0:20:11.000 --> 0:20:13.240 in June, as opposed to say, if you buy one 0:20:13.280 --> 0:20:17.520 that expires in October, you're only protected uh through the 0:20:17.880 --> 0:20:21.440 life of that futures contract. But what's been interesting all 0:20:21.640 --> 0:20:25.360 year is that those are October contracts, which the way 0:20:25.359 --> 0:20:28.360 the VIX is set up, they actually reflect the implied 0:20:28.440 --> 0:20:32.400 volatility through November. UM, they've been the most at least 0:20:32.440 --> 0:20:36.720 it's more expensive than the others uh contracts around them 0:20:36.760 --> 0:20:39.359 all year, and the traders call a kink in the 0:20:39.480 --> 0:20:42.800 VIX curve because it's not really what you normally see 0:20:42.800 --> 0:20:45.359 when you chart them all out on a on a 0:20:45.480 --> 0:20:49.120 graph for a curve. UM. What's that even worth fascinating 0:20:49.240 --> 0:20:54.080 is that October, November and December futures are all elevated, 0:20:54.480 --> 0:20:56.800 so you have the shape of the VIX curve is 0:20:56.840 --> 0:20:59.320 not what it normally is. You have the most expensive 0:21:00.200 --> 0:21:04.520 mixed futures right near the front of the curve, so, 0:21:04.600 --> 0:21:08.000 in other words, protecting against folcilty through the end of 0:21:08.040 --> 0:21:11.320 the year. And what everyone is basically attributing that too 0:21:11.600 --> 0:21:15.040 is concerned that there will be a big legal fight 0:21:15.280 --> 0:21:18.639 over the results of the election. Uh and possibly even 0:21:19.000 --> 0:21:21.040 you know, not to get too dramatic, but even a 0:21:21.080 --> 0:21:25.640 constitutional crisis at President Trump, as he has indicated, does 0:21:25.720 --> 0:21:29.920 not accept the results of the election. Um. So uh, 0:21:30.160 --> 0:21:33.880 then I don't top about Well wait a minute, Mike, 0:21:34.040 --> 0:21:35.960 that's where I wanted to jump in. All right. You know, 0:21:36.000 --> 0:21:38.680 we talked about, especially in presidential election years, we talked 0:21:38.680 --> 0:21:42.639 about October surprises. We've had actually several, so I'm guessing 0:21:42.640 --> 0:21:45.160 it was not completely a surprise when you probably got 0:21:45.200 --> 0:21:47.879 the call from Joel that said, hey, we've got this 0:21:47.920 --> 0:21:49.800 thing called that you know, the president's got the virus. 0:21:49.840 --> 0:21:51.760 So we've got to think of, you know, maybe potentially 0:21:51.840 --> 0:21:55.240 rethink your story, like how does that impact But you 0:21:55.320 --> 0:21:58.240 just kind of laid out for us. Well, I think 0:21:58.359 --> 0:22:01.320 everyone scrambled this sort of wrap their heads around that 0:22:01.440 --> 0:22:05.960 the various possible scenarios in which it could affect fault 0:22:06.000 --> 0:22:08.520 so he I think one of the more interesting ones 0:22:08.600 --> 0:22:13.159 to me is that obviously Biden's whole lead in the 0:22:13.240 --> 0:22:18.960 polls has widened pretty significantly since the debate. UM, and 0:22:19.000 --> 0:22:21.320 I think a lot of people expected to continue to 0:22:21.440 --> 0:22:26.520 widen UM because of President Trump getting sick, this outbreak 0:22:26.840 --> 0:22:30.240 among his staffers at the White House sort of reinforcing 0:22:30.280 --> 0:22:33.480 the idea that um, he didn't take the virus seriously enough, 0:22:33.640 --> 0:22:36.800 wasn't taking uh, you know, enough precautions at least that's 0:22:36.800 --> 0:22:38.879 the impression. You know, who knows where he got it 0:22:38.960 --> 0:22:42.040 and it uh you know, was avoidable, but that certainly 0:22:42.080 --> 0:22:44.879 is the impression. So with Biden sort of taking a 0:22:44.960 --> 0:22:48.600 more commanding lead in the polls, a lot of people 0:22:48.680 --> 0:22:53.080 are saying, well, this sort of reduces the potential and 0:22:53.119 --> 0:22:56.320 the possibility for a contested election because if he is 0:22:56.840 --> 0:23:00.359 further out ahead, uh, the avenues to challenge it to 0:23:00.440 --> 0:23:05.000 finish somewhat. So that removes some of the uh you know, 0:23:05.440 --> 0:23:09.040 concerned about ball Toby uh for the rest of the 0:23:09.119 --> 0:23:12.719 year that that was motivated by worries about a contested election. 0:23:12.760 --> 0:23:14.760 And if you look at the vixed futures now today, 0:23:14.800 --> 0:23:18.560 they are they're all down across the board, but especially 0:23:18.560 --> 0:23:24.119 those October, November, December UM contracts are all down pretty significantly. So, 0:23:24.640 --> 0:23:27.600