Speaker 1: This is Bloomberg Business Week. I'm Charle Masser and I'm
Speaker 1: Bloomberg Quick Takes Tim Stanabek. We're here every day bringing
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Speaker 1: pm Eastern Time on Bloomberg Radio, or watch us on
Speaker 1: YouTube search Bloomberg Global News. So, the weekly death toll
Speaker 1: from COVID nineteen in the US rose for the first
Speaker 1: time since February, and infections climb for a fourth straight
Speaker 1: week even as vaccinations are surge. And we talked a
Speaker 1: little bit about what's going on in New York City
Speaker 1: for some of our audience. Uh, there's a lot going
Speaker 1: on here, whether you're here in the US or of
Speaker 1: course in other parts of the world. England, by the way,
Speaker 1: reopening shops, pub gardens, gyms, and hair salons after months
Speaker 1: of a lockdown. So let's get into it with our
Speaker 1: daily check on COVID and the vaccine rollout. Welcome back,
Speaker 1: Dr Rachel Doo. She's co founder of Moody Health. She's
Speaker 1: with us once again on the phone in Los Angeles.
Speaker 1: Dr Dude, Nice to have you back with us on Bloomberg.
Speaker 1: How are you. I'm great. Thank you so much for
Speaker 1: having me back, Carol. So tell me about the view
Speaker 1: that you're seeing in terms of patients coming into your office,
Speaker 1: what you're seeing when it comes to COVID nineteen cases,
Speaker 1: what you're seeing in terms of the vaccine rollout. Yeah,
Speaker 1: absolutely so. On the Moody Health platform, our practitioners have
Speaker 1: definitely been seeing an increase in people experiencing pandemic burnout
Speaker 1: and the need for emotional well being and support from
Speaker 1: our integrative life coaches as well as our mental health professional.
Speaker 1: But we're also seeing a real uptick in people becoming
Speaker 1: more comfortable with getting vaccinated and really excited to move
Speaker 1: beyond the pandemic. One thing I will say is that
Speaker 1: you know that that pandemic exhaustion and burnout is really
Speaker 1: causing some people to stop wearing maths, stop you know,
Speaker 1: focusing on social distancing, and I think it's really important
Speaker 1: that we still stay the course and continue those safety precautions.
Speaker 1: You know, it's interesting that you say that last week
Speaker 1: we had a COVID scare in my family turned out
Speaker 1: to be a false positive and after all this testing
Speaker 1: and I was sequestered last week, my daughter, my family,
Speaker 1: But it reminded us, like we were terrified that we
Speaker 1: had gotten it even though we were so careful, And
Speaker 1: it reminded us that, you know, this is real. It's
Speaker 1: still out there. Uh, And the thought of having it
Speaker 1: really put some pressure and stress on my family, And
Speaker 1: it was great to know that we don't have it.
Speaker 1: But it's just a reminder that this is kind of
Speaker 1: the world we're living in. Yes, there's progress with the
Speaker 1: vaccine rollout, but it's still out there. We're not over it. Absolutely,
Speaker 1: So tell us in terms of you said, uh, more
Speaker 1: pandemic burnout up to uptake in up, you said people
Speaker 1: getting more vaccines. But I'm curious about the burnout because
Speaker 1: that is something a topic that we've talked about a
Speaker 1: lot over the past year. What's changed, what's different? What
Speaker 1: are the numbers like in terms of the uptick. Absolutely,
Speaker 1: I think that what we're seeing is just a large
Speaker 1: amount of people being completely exhausted, right, everybody is ready
Speaker 1: to move forward. And people, you know, they've undergone such
Speaker 1: stress for such a long period of time, right, they've
Speaker 1: been experiencing stress loss and transition. Really feeling that burnout
Speaker 1: is it's a normal response. It's a normal response for
Speaker 1: all of us. And getting support around emotionally processing what
Speaker 1: it has been for each person is important. And you know,
Speaker 1: there's also a few simple steps that everyone can be
Speaker 1: taking on their own to really reduce this this burnout
Speaker 1: and that you know, things like giving yourself permission to
Speaker 1: get more rest and the space to process the transition.
Speaker 1: So treating yourself gently and increasing self pairent ways that
Speaker 1: feel helpful, practicing mindfulness, getting outdoors and moving your body again,
Speaker 1: continuing that faith, social distancing activities with friends and loved
Speaker 1: one so you can still feel connected. And then of
Speaker 1: course getting that support from a mental health practitioner or
Speaker 1: an integrative life coach. You know, it's interesting too. Of
Speaker 1: the last week or so, we've talked about a couple
Speaker 1: of companies, a Real Bank of Canada and Toronto Dominion
Speaker 1: Bank giving employees and extra paid day off this year,
Speaker 1: and it's specifically um to avoid burnout what's changed. Do
Speaker 1: you think in the corporate culture that there's a heightened
Speaker 1: sensitivity when it comes to burnout? Absolutely. I think that
Speaker 1: free pandemic, you know, at Motive helped we do a
Speaker 1: lot in the corporate wellness spase, and so pre pandemic,
Speaker 1: we were seeing a lot of companies were wanting to
Speaker 1: increase productivity and address wellness and well being so that
Speaker 1: there could be a higher level of productivity. But during
Speaker 1: the pandemic, corporations, companies, organizations, institutions have been actually seeing
Speaker 1: over performance and burnout happening from people working from home
Speaker 1: and really over working and not having much work life balance,
Speaker 1: and so they're but is that new? I can. I
Speaker 1: know that there's going to be people saying this is
Speaker 1: nothing new. We've always talked about, certainly those of us
Speaker 1: who work in the New York metro are always talking
Speaker 1: about our our our life, our work life balance and
Speaker 1: how bad it is. What's different, Well, I think the
Speaker 1: pandemic has really shed light on the importance of work
Speaker 1: life balance, and I think that's been one of the
Speaker 1: positives to come out of the pandemic is a real
Speaker 1: reevaluation of what wellness and well being and health looks
Speaker 1: like mentally, physically, emotionally, spiritually, really that whole person, whole
Speaker 1: life approach. Well, And what would you be your advice
Speaker 1: to someone who's listening, who's thinking about this, and maybe
Speaker 1: they haven't reached out to somebody, how do they know
Speaker 1: if they've really got kind of a burnout problem and
Speaker 1: just got about forty seconds, then we'll come back and
Speaker 1: talk some more. Yeah. Absolutely, if you're feeling is austed,
Speaker 1: if you're you know, seeing a decrease in quality of
Speaker 1: sleep and a decrease in your emotional well being, you're
Speaker 1: probably experiencing some burnout or some fatigue from the pandemics,
Speaker 1: and really addressing it now is incredibly important to get
Speaker 1: the help you need. Doctor do One thing I did
Speaker 1: want to ask you, and when I kicked off our
Speaker 1: conversation in the previous segment, I said, the weekly death
Speaker 1: toll from COVID itune the US rose for the first
Speaker 1: time since February, and infections climbed for a fourth straight week.
Speaker 1: Even as we see vaccination search. When you see a
Speaker 1: summary and headline like that, what do you think about
Speaker 1: where we are when it comes to COVID nineteen and
Speaker 1: getting to the other side of it. I think back
Speaker 1: to that pandemic burnout and people feeling like they are
Speaker 1: done following precautions, they're done dealing with it, they're done
Speaker 1: hearing about it. But again, you know, even as we're
Speaker 1: rolling out these vaccines, they're not a hundred percent effective,
Speaker 1: and we're all not vaccinated to the level that we
Speaker 1: need to be, and so it's important to continue following
Speaker 1: those safety protocols no matter how exhausted we are with it.
Speaker 1: You said, the vaccines is not a hundred percent effective,
Speaker 1: which is just a reminder that even if the there
Speaker 1: is that slim chance right that you can get it
Speaker 1: or there's still some concerns. Absolutely, and so getting fascinated,
Speaker 1: I believe is a really important part of the recovery
Speaker 1: process and getting past the pandemic. You know, really watching
Speaker 1: out not only for our own health, but also the
Speaker 1: health and wellness of our neighbors and co workers and
Speaker 1: friends and family members. So what about when you hear
Speaker 1: about variants and double variants. I mean, it was very
Speaker 1: much a big part of our discussions last week, and
Speaker 1: I know there's this kind of race to get the
Speaker 1: vaccine to as many people before we start to see
Speaker 1: too many variants and possibly one that could be a
Speaker 1: lot more contagious and a lot and contagious and a
Speaker 1: lot more serious. How do you approach that? How do
Speaker 1: you think about that? I think about that in the
Speaker 1: sense that we do need to really be steadfinced. We
Speaker 1: really need to move forward, and as many people as
Speaker 1: possible getting vaccinated as soon as possible is going to
Speaker 1: be key in being able to be prepared for any
Speaker 1: additional variants. What are the kind of cases that you
Speaker 1: guys are seeing UM, either on your platform or coming
Speaker 1: you know, what, what are you hearing in terms of
Speaker 1: the type of COVID cases that are coming out, because
Speaker 1: we've been hearing that it's getting to a younger population,
Speaker 1: younger demographic. But I'm curious about what you're seeing. Absolutely
Speaker 1: definitely seeing that, and we sort of see two major categories.
Speaker 1: We see people who are experiencing what we call mild cases,
Speaker 1: and then we're seeing much more extreme cases. Obviously we
Speaker 1: refer those out. Some people need to be hospitalized or
Speaker 1: have specialists for treating them. But you know, really, on
Speaker 1: the multi health platform, what we are really trying to
Speaker 1: do is UM a combined traditional medical and natural approach
Speaker 1: to treat and also optimize health and well being post
Speaker 1: COVID as well. What might be kind of the protocols
Speaker 1: in that combination in that if someone comes to your
Speaker 1: platform and whether it's stress and they're dealing with things,
Speaker 1: how do you combine kind of the traditional with kind
Speaker 1: of a more innovative form of healthcare? Absolutely such a
Speaker 1: great question. On our platform, people are able to build
Speaker 1: their entire care team, so it's really a whole person
Speaker 1: care team approach, so they're able to see both a
Speaker 1: natural path doctor or functional medicine doctor as well as
Speaker 1: a traditional primary care physician or specialist in traditional medicine,
Speaker 1: and then also different types of health coaches or wellness coaches, nutrition,
Speaker 1: mental health because it's so important to take a look
Speaker 1: at that full picture and support the whole person. Just
Speaker 1: got about forty fifty seconds left here. You know, I
Speaker 1: have conversations with friends, family, and we say some who
Speaker 1: are able to spend more time on their wellness side,
Speaker 1: whether it's exercising at home or what have you, but
Speaker 1: they're concerned about when everything gets up and running again,
Speaker 1: how do you continue to do that? What's one quick
Speaker 1: piece of advice and forgive me, you just got about
Speaker 1: thirty seconds left here. Yeah. Absolutely, I think that balance
Speaker 1: is something that's unique to each and every individual. So
Speaker 1: figuring out ways that work in your life to address
Speaker 1: mental health, emotional well being, physical health, and you know,
Speaker 1: really taking care of the whole person. And that again
Speaker 1: is going to look very different for different people, different budgets,
Speaker 1: different time availability, and that's what we really aim to
Speaker 1: address on the Moody Health platform. No matter where you
Speaker 1: are in your journey, what your needs are, we can help.
Speaker 1: All Right, Well, good to check in with you again,
Speaker 1: Stay safe and be well. Dr Rachel Do, co founder
Speaker 1: CEO of Moody Health, with us on the phone from
Speaker 1: Los Angeles. This is Bloomberg Business Week with Carol Masser
Speaker 1: and Bloomberg Quick Takes Tim Stinovich from Bloomberg Radio. Certainly,
Speaker 1: one of the big stories of the day is the
Speaker 1: chip meeting at the White House today. We've all already
Speaker 1: heard from the President, President Biden saying the US needs
Speaker 1: to address chip shortages. Meantime, the Intel CEOs the White
Speaker 1: House will work with Congress to get funds and specifically
Speaker 1: are seeing support for chip production specifically in the United States.
Speaker 1: Keep in mind, the CEO is a four GM Intel
Speaker 1: and Google. We're all at the White House today for
Speaker 1: that summit. With that in mind, and the current issue
Speaker 1: of the magazine, Bloomberg's Ian King and Tom Giles dig
Speaker 1: into Intel's new hail Mary when it comes to the
Speaker 1: semi conductor industry and specifically for their company. Toma's Bloomberg
Speaker 1: Technology Executive editor joining us from San Francisco. Also joining
Speaker 1: us Bloomberg Business Week editor Joel Webber on the access
Speaker 1: line in Brooklyn. And Joel, if you think about the
Speaker 1: semi conductor industry, the global semi industry, you gotta include
Speaker 1: Intel in any discussion. Yeah, it's really um you know,
Speaker 1: Intel has just been a powerhouse um in this industry
Speaker 1: for for decades, so they kind of go hand in hand.
Speaker 1: But but what Tom and um Ian really dug into
Speaker 1: with the story has been sort of the slow decline,
Speaker 1: especially over the last decade, as Intel has gone from
Speaker 1: sort of this um M vaunted um uh symbol of
Speaker 1: American technology and and manufacturing and and management and actually
Speaker 1: have watched it sort of slowly fade uh and and
Speaker 1: kind of into this existential moment. And that's certain really
Speaker 1: where this story came into being. And you know, we've
Speaker 1: had so much attention on on chips in general. UM,
Speaker 1: we have to kind of talk about the American elephant
Speaker 1: in that room, which which is Intel. UM tom twenty
Speaker 1: billion dollars they've laid out as sort of their path
Speaker 1: to the future. UM. How much hope do you put
Speaker 1: in that number? Well, you know, look until has the money, UM,
Speaker 1: and they still throw off a lot of cash from
Speaker 1: their existing business. UM. So I have no doubt that
Speaker 1: they're going to throw a lot of money at this problem. UM.
Speaker 1: The challenge for them is that they have slipped in
Speaker 1: production of the most advanced ships. And just how quickly
Speaker 1: can you You can throw a lot of money at
Speaker 1: the problem, but how quickly can you get these new
Speaker 1: um fabs, these new ship production plants up and running UM.
Speaker 1: And how quickly can you fix the technology that they've
Speaker 1: fallen behind? You know, making these chips smaller and smaller
Speaker 1: every cycle becomes harder and harder and harder to do
Speaker 1: at the scale that Intel needs to do it. Remember,
Speaker 1: they're the main supplier to the to the to the
Speaker 1: servers and the computers around the world. UM. And the
Speaker 1: fact of the matter is other companies have just gotten
Speaker 1: faster and better than they are at cranking these things
Speaker 1: out at scale, and that's the that's the real challenge
Speaker 1: that they have. Right now. What's great about this story, Um,
Speaker 1: there's so much and I can only imagine the individuals
Speaker 1: you talk to it because there's so much insight into
Speaker 1: the different CEOs and the different stumbles that Intel did
Speaker 1: after just kind of owning I feel like the semiconductor
Speaker 1: industry you talk specifically, I feel like about a major
Speaker 1: blunder Tom and that was Apple's the misstep it did
Speaker 1: with Apple by not linking up with them. How big
Speaker 1: of a how how much did that set them back? Yeah?
Speaker 1: So when it comes to mobile chips, um, that is
Speaker 1: an area where Until just tried and tried again many
Speaker 1: times to get a told in that market. One of
Speaker 1: the early one of the early instances that we talked
Speaker 1: about in the story is when the former CEO, a
Speaker 1: guy by the name of Paul o'dalini, was you know,
Speaker 1: this is before the smartphone introduction, right in the mid
Speaker 1: two thousands. This is when Steve Jobs, the founder of Apple,
Speaker 1: came to Intel and said, Okay, we want to cut
Speaker 1: a deal with you to make chips for our phone.
Speaker 1: And Paul and Paul o'dalini just just balked at it.
Speaker 1: He said he wasn't pleased with the terms of that.
Speaker 1: That ended up being a really um, you know, really
Speaker 1: landmark decision and one that has worked against them, mainly
Speaker 1: because what it did is as this business went to
Speaker 1: other companies, first Stamp Sung and then later this company
Speaker 1: in Taiwan called Taiwan Semiconductor Manufacturing Company. When you win
Speaker 1: the contract to supply Apple, a lot comes with that.
Speaker 1: You get, part of you get, you get into this ecosystem,
Speaker 1: and you gained the ability to really be the point,
Speaker 1: the point, the supplier for this incredibly you know, fast
Speaker 1: moving market which was smartphones. I mean, remember what it
Speaker 1: was like when when you know, fifteen years ago, when
Speaker 1: these when this was taking up, everybody was just rushing
Speaker 1: to get these and that created a lot of business
Speaker 1: for the semiconductor industry. So so Tom, you know, they
Speaker 1: missed that moment which became sort of the beginning of
Speaker 1: the mobile revolution. Um And you know, as you as
Speaker 1: you both write in the story, you know, Intel's predicament
Speaker 1: didn't come about overnight. It's been a consequence of a
Speaker 1: decade's worth of missteps. One of my most favorite elements
Speaker 1: of this story and what I think we do, especially
Speaker 1: while the magazine are these sort of like case studies
Speaker 1: and and this one really feels like a management case studies.
Speaker 1: So when you step back and you know, having covered
Speaker 1: this company for years now, if you approach it through
Speaker 1: that case study, lens, what are some of the big
Speaker 1: management take takeaways that you think, um, you know readers
Speaker 1: will find most interesting here. And please talk about Brian
Speaker 1: kay sure. Well, before we talked about Brian Cresentits, you
Speaker 1: have to go back to Andy Grove. He was one
Speaker 1: of the original founders of Intel and one of its
Speaker 1: longest lasting CEO. And he was legendary UM specifically for
Speaker 1: he was very demanding. UM. He you know, he was
Speaker 1: he was very disciplined, UM. And he ran Intel. You know,
Speaker 1: he was seen as a one of the early management
Speaker 1: guru UM, after whom many of the biggest tech executives
Speaker 1: out there right now patterned their management style. UM. The
Speaker 1: thing that was interesting he could be very demanding, but
Speaker 1: he was also he also insisted on listening to people
Speaker 1: tell him about what was wrong with the company. He
Speaker 1: called them the Cassandra's right. These are the people who
Speaker 1: otherwise wouldn't get listened to. And they were the ones
Speaker 1: who were, you know, on the front lines of talking
Speaker 1: to customers. For example, they would come and say, hey,
Speaker 1: this is what's wrong with the company, this is what's
Speaker 1: wrong with what's happening. Later in Intel's life, a CEO
Speaker 1: came into you know, came rose to the top, Brian Krisanitch.
Speaker 1: He hadn't been steeped in as closely in Andy Grove's
Speaker 1: Philosophy of the World's Andy Grove's view of how to
Speaker 1: manage a company. He had a lot of space in
Speaker 1: Intel's capabilities, some of which was well founded. Intel was
Speaker 1: an incredibly capable company. But what started to happen is
Speaker 1: people came into his orbit who started to tell him, um,
Speaker 1: we're seeing problems in our ability to keep producing these
Speaker 1: really band's chips, arms are are basically our factories are
Speaker 1: not up to the town. And he was very dismissive
Speaker 1: of that and failed to listen to the cassandras. So
Speaker 1: a takeaway here is find people in an organization who
Speaker 1: will be honest with you about what the company is
Speaker 1: doing well and what it's doing poorly, and when they
Speaker 1: come to you with bad news, don't be dismissive of it,
Speaker 1: listening to them and find out is there reason for this?
Speaker 1: It is an incredible read through and I highly recommend
Speaker 1: it and I'll retweet it out on Twitter. But so
Speaker 1: much interesting and in depth information about what went on
Speaker 1: at Intel to kind of get it to where it
Speaker 1: is today. Um, guys, thank you so much. Tom Giles,
Speaker 1: Bloomberg Technology Executive Editor, Joe Webber, Editor Bloomberg Business Week.
Speaker 1: This is Bloomberg Business Week with Carol Messer and Bloomberg
Speaker 1: Quick Takes Tim Stenovik on Bloomberg Radio. You are listening
Speaker 1: to Bloomberg Business Week. I'm Carol Master Mica. Host Tim
Speaker 1: Stanovic is out today. Well. One of the things, though
Speaker 1: that has definitely been on my radar is just watching
Speaker 1: all of the back and forth between the US and
Speaker 1: China and the relationship. The ascent of China specifically, though
Speaker 1: not a new concept, and yet the approach taken by
Speaker 1: China has provided a lot of fodder for discussion. In
Speaker 1: his latest column, Bloomberg New Economy Editorial director Andy Brown
Speaker 1: notes that the Summer and Winter Games in Beijing book
Speaker 1: and a period of history when it comes to China's
Speaker 1: approach to the rest of the world. We love this.
Speaker 1: We talked about this and his column a lot on
Speaker 1: our planning call this morning, and he joins us on
Speaker 1: the phone in New York City. UM, Andy so talked
Speaker 1: to us about this because the idea that Beijing is
Speaker 1: going to be hosting both games. I mean, there's a
Speaker 1: lot going on here in terms of what we can feel,
Speaker 1: you know, kind of Beijing's approaches to the world at large.
Speaker 1: It's not just about the Olympic Games. It's it's not
Speaker 1: just about the Olympics. The Olympics obviously the massively political
Speaker 1: it's it's it's it's It's worth noting though that that
Speaker 1: you know, Beijing is going to be the first city
Speaker 1: in the world to host both the Summer Olympics, which
Speaker 1: you did in two thousand and eight. I was there
Speaker 1: at the time, and the Winter Olympics, which are coming
Speaker 1: up in in February next year. UM. It's also worth
Speaker 1: noting that, um, they're going to repurpose quite a few
Speaker 1: of the buildings that these iconic structures that were built
Speaker 1: for two thousand and eight, like the water Cube, which
Speaker 1: was this amazing sort of box covered in bubble wrap
Speaker 1: that was the host of the swimming and the diving
Speaker 1: competition that's not going to be. So the water cube
Speaker 1: is not going to be the ice cube. Uh. And
Speaker 1: the bird's nest, which was wrapped up in the sort
Speaker 1: of all these you know, this intricate steel lattice looking
Speaker 1: like twigs, Um, that's now going to be you know,
Speaker 1: repurposed as the venue for the opening and closing ceremonies
Speaker 1: of of the Winter of the Winter Olympics. That's what's
Speaker 1: going to be the same. The politics and the context
Speaker 1: between these two events could not be more different. As
Speaker 1: I said in the column, they bookend this period of
Speaker 1: history where China goes from being quite deferential um to
Speaker 1: the rest of the world, particularly to to the West
Speaker 1: and the United States, to being very much defiant and um,
Speaker 1: you know taking this you you you know, you you
Speaker 1: we we are not going to We're not going to
Speaker 1: tolerate a boycott. Well what's really wild is, you know,
Speaker 1: just going back to the earlier games, you talk about
Speaker 1: how they really embraced Western architects. I mean they really
Speaker 1: were kind of you know, a big hug to the
Speaker 1: world to say, yep, we're doing this, but we love
Speaker 1: you the world. At the same time, but this time around,
Speaker 1: it's got a different feel. It was amazing watching Beijing
Speaker 1: being reinvented for the two thousand and eight Olympics. They
Speaker 1: took the axis of the city which on the Mao
Speaker 1: and subsequent leaders had gone east west. They sort of
Speaker 1: along the Avenue of Eternal Peace. They built a lot
Speaker 1: of the old ministries, Ministry of Telecommunications, museums, hotels, and
Speaker 1: so on. And they literally spun Beijing around so that
Speaker 1: it sits down and on a north south axis which
Speaker 1: accentuates all of these historical venues in Beijing, the Forbidden City,
Speaker 1: the ancient gateways, some of the palaces. But the guy
Speaker 1: who did that, the architect who did that was a German, right, Uh?
Speaker 1: Is that it's actually I believe it or not. It
Speaker 1: was Albert Speer, who was the son of Hitler's favorite architect.
Speaker 1: He designed this, this this massive north north south axis,
Speaker 1: um so. And this was all intended to sort of
Speaker 1: divert the world's attention from the sort of China's revolutionary
Speaker 1: blood you know, blood soap, turmoil, you know, uh, turbulent
Speaker 1: recent history. There skips over all that and and focuses
Speaker 1: the world's attention on China's sort of glorious ancient civilizations
Speaker 1: and its culture and Buddhism and Confucianism and so on.
Speaker 1: And the message very much was you know, we are
Speaker 1: not a threat. Don't forget. This was the coming out party, right,
Speaker 1: this is whin To announces itself the world's next. Right,
Speaker 1: you can on superpowers. You don't have anything to work
Speaker 1: to worry about. Right, we're old ancient civilization. So that
Speaker 1: was really a big part of the message. And the
Speaker 1: slogan was one world, one dream. Right. But but it's interesting,
Speaker 1: is you kind of wrap up your column. You finished
Speaker 1: off saying that, you know, President she has let it
Speaker 1: be known that she doesn't really like these Western inspired
Speaker 1: buildings anymore, or maybe didn't to begin with. Right, Well,
Speaker 1: that this was the way back in two thousand and eight.
Speaker 1: This was the way they sort of defined modernity. It
Speaker 1: was very much in Western terms, right, sort of Western
Speaker 1: architectural idioms. They got ramcool House and Zaha Hadid and
Speaker 1: you know, you saw all of these amazing futuristic buildings
Speaker 1: going up in Beijing. He hates that. I mean, he said, uh,
Speaker 1: some years ago he thought it was old chee cheek
Speaker 1: like why, which is Mandarin means got a weird odd right,
Speaker 1: he doesn't like this at all. They don't want the
Speaker 1: web they you know this. The message back then is
Speaker 1: we're going to join the world as it is, the
Speaker 1: Western dominated US lead global order. And that was very
Speaker 1: much the message. We're going to sort of, you know,
Speaker 1: fit right on in. Forget it. The message now is,
Speaker 1: you know, it's it's it's it's the world on China's tongues, right,
Speaker 1: and that's how you're going to come to Beijing this time,
Speaker 1: you know, forget that, forget the efforts. Right. Well, what's
Speaker 1: interesting too, um as you know, and you and I
Speaker 1: have talked about it a lot, you know, concerns about
Speaker 1: human rights violations, concerns about how the weaker Muslims have
Speaker 1: been treated, a lot of companies, you know, everybody's playing
Speaker 1: it very delicately in terms of companies or sponsors pulling out,
Speaker 1: in terms of the U S saying we're not going
Speaker 1: to send our team. Is that unlikely? You know, we've
Speaker 1: had a history of this, right so in the UF
Speaker 1: boycott hit the Moscow Olympics in protest at the Soviet
Speaker 1: invasion of Afghanistan and seventy nine and then four years
Speaker 1: later you know, the Soviet Union boycotts the l A Games. Right,
Speaker 1: this is really a dismal history. It doesn't do much,
Speaker 1: It doesn't change much except a sort of basically chat
Speaker 1: at the dreams of the ambitions of of athletes who've
Speaker 1: trained their whole lives for these events and to peak
Speaker 1: at exactly the right time. So I don't think. I mean,
Speaker 1: of course, there are a lot of human rights groups
Speaker 1: that say, you know, they're talking about the genocide Olympics
Speaker 1: and protests, boycott it over that. Um, you know, there
Speaker 1: are some of the most sensible ideas around there around Romney.
Speaker 1: Romney is saying, you know, let's boycott it diplomatically, let's
Speaker 1: boycott it commercially, but you know, let's not penalize the athletes.
Speaker 1: Well it's a great read, and what a turn from
Speaker 1: two thousand eight to until to Andy, Thank you really
Speaker 1: appreciate it. Bloomberg New Economy editorial director Andy Brown. Check
Speaker 1: out his latest column. You can find it on the
Speaker 1: Bloomberg terminal and at Bloomberg dot com. This is Bloomberg
Speaker 1: Business Week with Carol Masser and Bloomberg Quick Takes Tim
Speaker 1: Stinovich from Bloomberg Radio. Well, big deal today and this
Speaker 1: is among our most read stories on the Bloomberg as well.
Speaker 1: It's about Microsoft buying speech technology company Nuanced Communications. You've
Speaker 1: heard Charlie and others talk about it on Bloomberg Radio.
Speaker 1: It's an all cash deal valued at nineteen point six billion.
Speaker 1: It's a big bat, massive bat in fact, according to
Speaker 1: our Dina Bass on healthcare artificial intelligence. So here with
Speaker 1: what you need to know is Dina Bass. She's Seattle
Speaker 1: bureau chief and g joins us on the phone in Seattle. Um, Dina,
Speaker 1: good to have you here with us, So tell us
Speaker 1: about this deal. Makes sense for Microsoft to do this
Speaker 1: because they've been working with this company for a few
Speaker 1: years now. Yeah. Absolutely, I think you know, over the
Speaker 1: courses here we've had some some Microsoft getting involved in
Speaker 1: some possible deals like TikTok, where people were a little
Speaker 1: bit scratching their heads as to how it fits. Nuance
Speaker 1: is sort of the opposite of that. I think, you know,
Speaker 1: most analysts and investors looked at that. Um, you know
Speaker 1: when we broke the news yesterday here at Bloomberg that
Speaker 1: this deal was was going to happen, and and said,
Speaker 1: you know, that makes sense. And Microsoft has been working
Speaker 1: with Nuance for two years. Microsoft is very focused in
Speaker 1: the speech AI sector, and Microsoft has also been increasingly
Speaker 1: over the last few years focused on healthcare um and
Speaker 1: what they can do to make healthcare easier with technology,
Speaker 1: cloud software and artificial intelligence. And they can say take
Speaker 1: that Amazon, right, because Amazon's is this kind of a
Speaker 1: shot at Amazon as well a little bit because Amazon
Speaker 1: does have an Alexa you know, some Alexa deployments and
Speaker 1: healthcare as well, but Alexa is still for the way
Speaker 1: most people use it is still really a consumer play
Speaker 1: it's in your kitchen, uh, you ask you to play
Speaker 1: music while you make dinner. This is much more focused
Speaker 1: in industry and very specifically in the healthcare industry. Nuance
Speaker 1: is looking at some other industries for for its software,
Speaker 1: but it really is very focused on on healthcare and
Speaker 1: how to make sort of Asian appointments and you know
Speaker 1: easier for clinicians. You know, and usually when you see
Speaker 1: your doctor now they spend half of the appointment typing
Speaker 1: away on a computer trying to get all of your
Speaker 1: information into your medical record. This is an attempt to
Speaker 1: get rid of that need makes me crazy. So talk
Speaker 1: to us about where Microsoft is going with healthcare because
Speaker 1: I do feel like, you know, we had the partnership
Speaker 1: and then came a part of Amazon and Buffett and
Speaker 1: um JP Morgan, right, and that kind of came undone.
Speaker 1: But I do increasingly see high tech companies, you know,
Speaker 1: aggressively looking at that healthcare space. It's one of those
Speaker 1: areas that hasn't quite been disrupted yet. That's right, and
Speaker 1: people have been trying for a long time. I asked
Speaker 1: Accadella that question this morning. You know, a lot of
Speaker 1: tech companies have come in and said week and fix healthcare,
Speaker 1: and and they's kind of this trail of people who failed.
Speaker 1: It is a challenging space. It took a long time
Speaker 1: even to get the electronic medical records going. Microsoft is
Speaker 1: very focused on providing cloud tools. They don't want to
Speaker 1: replace authority there, they want a partner. And you know,
Speaker 1: they've been trying to get these tools into the hands
Speaker 1: of doctors and they had some hospitals. They've been working
Speaker 1: for several years on AI tools for things like triage
Speaker 1: chat bots, you know, the things that ask you your
Speaker 1: symptoms and try to funnel you in the right direction,
Speaker 1: or you know, things for software for help with clinical trials,
Speaker 1: things like that, and as I mentioned this Nuance system
Speaker 1: tries to help caregivers with getting the information that patients
Speaker 1: give them into electronic medical records more easily through you know,
Speaker 1: speech recognition and then synthesizing with your records. But you
Speaker 1: could imagine a situation in the future. Microsoft and Nuances
Speaker 1: are very interested in where the AI search us through
Speaker 1: your health record for certain words or certain triggers that
Speaker 1: might indicate what's going on with a patient and make
Speaker 1: some suggestions to the doctor or helps the doctor, you know,
Speaker 1: find a better idea for care or things they should
Speaker 1: be looking at. And so that that's always out but
Speaker 1: that's kind of what you know, some of what they're
Speaker 1: thinking in the future as well. Do you you know
Speaker 1: from talking to the Alice community investors who follow Microsoft,
Speaker 1: do they think Microsoft moving more aggressively into AI and
Speaker 1: specifically AI healthcare makes sense. Yes, they do. And again
Speaker 1: it's partially because Microsoft has been moving in that direction
Speaker 1: on its own for the last several years and messaging
Speaker 1: that it's a really lucrative space. And I think the
Speaker 1: pandemic and everything that's gone on in the last year
Speaker 1: has only reinforced the idea that this needs to needs
Speaker 1: to happen more aggressively and more efficiently. I want to
Speaker 1: go back to because I think I'm thinking about our
Speaker 1: audience who are listening, and they think of Microsoft and
Speaker 1: they get about you know, Microsoft Teams and all of
Speaker 1: their you know, the things that we know Microsoft for
Speaker 1: so much. But you were talking about already what Microsoft's
Speaker 1: been doing in the medical space. Talk to me a
Speaker 1: little bit more about it. You talked about triage software,
Speaker 1: and you talked about other things. What have they been
Speaker 1: doing when it comes to healthcare? Actually you mentioned teams
Speaker 1: as well. Teams is an important healthcare product for them too.
Speaker 1: They have a you know, a version of Teams that's
Speaker 1: meant for for healthcare teams. So for example, when you're
Speaker 1: in the hospital, there's a care team, and often when
Speaker 1: you walk into a hospital room, you see that the
Speaker 1: care team exchanges information via whiteboard. Right. It's very low
Speaker 1: tech um and you have to rely on different members
Speaker 1: of your care team to talk to each other or
Speaker 1: keep you know, whoever with the patient keeps repeating what's
Speaker 1: going on with the patient. They're trying to get care
Speaker 1: teams to communicate more through Microsoft Teams. So that's one
Speaker 1: thing they've been doing. Uh, They released a healthcare cloud
Speaker 1: product in May, which sort of takes versions of various
Speaker 1: cloud software programs that Microsoft has and tailors them for healthcare. Uh.
Speaker 1: You know, we talked a little bit before about software
Speaker 1: for clinical trials. Um. You know, they really do want
Speaker 1: to be a software provider to all of the major
Speaker 1: healthcare companies. But you know, it's all emphasized to me
Speaker 1: that that they do not want to compete with those
Speaker 1: healthcare companies. I know there was some noise this morning
Speaker 1: about whether this deal meant that Microsoft wanted to compete
Speaker 1: with EPIC ANDCERN or who the too big electronic medical
Speaker 1: records companies. He said to me very firmly, you know,
Speaker 1: absolutely not. We want to partner with them if you
Speaker 1: can as them. Okay with that right right, right right exactly, UM,
Speaker 1: to just to make it more efficient. You mentioned it's
Speaker 1: been difficult and again we've seen that that pandemic and
Speaker 1: it's been difficult for Microsoft too. You know, their their
Speaker 1: record is not spotless here. They helped several states with
Speaker 1: vaccine rollout platforms and appointment platforms, and some of those
Speaker 1: went well as in a Oklahoma. Some of those those
Speaker 1: in New Jersey went very poorly. Indeed, yeah, hey, listen,
Speaker 1: great stuff. This is what I was hoping hoping to
Speaker 1: bring to our audience. So thank you so much for
Speaker 1: joining us. Tina Bass, she is Seattle bureau chief at
Speaker 1: Bloomberg News, as she mentioned Bloomberg breaking that story on
Speaker 1: Microsoft on making that big bet on healthcare AI by
Speaker 1: buying Nuance Romco a journal now, but you let me drive, No,
Speaker 1: no, no no, honey, please, I'll do the right vel. I
Speaker 1: want to drive, just drive. It's the questions dry use
Speaker 1: the drive to the globe. Thanks, we'll dry us Dawn
Speaker 1: on Bloomberg Radio. Indeed, everybody, just about nine minutes left
Speaker 1: in today's trading day, Let's get to the drive to
Speaker 1: the close. Back with us. Managing director of Senior Portfolio
Speaker 1: Manage at Wells Fargo Asset Management Market PTEL with about
Speaker 1: six hundred three billion in assets under management over at
Speaker 1: Wells Fargo Asset Management, Margie back with us on the
Speaker 1: phone from Boston. Margie, how are you very good? Carol? Well,
Speaker 1: nice to have you here with us. Um this is
Speaker 1: a big week. I feel like, into some extent, I
Speaker 1: feel like equity investors are taking a little bit of
Speaker 1: a breather because you've got big banks coming out with
Speaker 1: their earnings, and they're going to talk about the outlook,
Speaker 1: the visibility, what the market environment is like, how do
Speaker 1: you see it this week? Well, it's interesting because I
Speaker 1: can ever think of another quarter where we're absolutely convinced
Speaker 1: that this will be an extraordinarily strong quarter. We feel
Speaker 1: that way too, and it will be interesting to see
Speaker 1: are their cross currents from these very very high expectations.
Speaker 1: Uh one, will companies talk about a continuation through the
Speaker 1: rest of the year very strong earnings, Well, they shade
Speaker 1: as little as we get to the third or fourth
Speaker 1: quarter of the year. And then the other kind of
Speaker 1: big unknown is what happens to interest rates and inflation.
Speaker 1: We'll see a pickup, will that roll over and continue
Speaker 1: to depress some of the values of the gross stalks.
Speaker 1: So there's a lot of cross currents. Well, kidnap, Yeah,
Speaker 1: we'll talk to me about those earnings expectations, um our.
Speaker 1: Dave Wilson was just breaking down the number were expecting
Speaker 1: higher in the first quarter when it comes to E
Speaker 1: P s and the S and P five year over
Speaker 1: year up in the second quarter if those companies and
Speaker 1: those are big bounce backs, but obviously from a year
Speaker 1: ago when the whole world just fell apart. But if
Speaker 1: there is some disappointment or misses, how strongly do you
Speaker 1: think investors on the equity side of things will react
Speaker 1: to that? Oh? I think this is going to turn
Speaker 1: out to be an extremely volatile quarter in spite of
Speaker 1: those dynamic increases in earnings for this quarter next quarter,
Speaker 1: so I think that we're people expecting even more of
Speaker 1: a blowout number, and will people be disappointed? Some sectors
Speaker 1: will be a little depressed. For example, with the chip shortage,
Speaker 1: some of the auto related companies may well have disappointing
Speaker 1: earnings because they simply haven't been able to produce enough
Speaker 1: because they haven't had enough chips. Well, the market look
Speaker 1: past those, so I think we'll see some some cross currents.
Speaker 1: Are results going to be blowout? Results going to be
Speaker 1: good enough for the market? Yeah, Investors trying to make
Speaker 1: sense of it just want to mention a headline crossing
Speaker 1: US Treasury Secretary Janet Yellen, of course, former head of
Speaker 1: the fed uh saying that they plan to spare China
Speaker 1: from the currency manipulator label. And we often have seen
Speaker 1: the back and forth on that over the past few decades.
Speaker 1: UM having said that maybe you know, let me bring
Speaker 1: that into our discussion, Margie, that there are lots of
Speaker 1: political concerns going on right now. Any of them that
Speaker 1: you think get in the way of uh investor psyche
Speaker 1: that makes them a little bit nervous. Uh No, because
Speaker 1: I think the two biggest players, the US and China,
Speaker 1: have a pretty strong growth outlook for the next few quarters.
Speaker 1: And the lagguerage I think are continental Europe and some
Speaker 1: of the emerging markets. But basically, when you have over
Speaker 1: half of the GDP looking very strong, that says that
Speaker 1: I think that will really drive earnings and drive investor expectations.
Speaker 1: What about inflation concerns? We heard J Powell on sixty
Speaker 1: Minutes every weekend. A lot of FETE officials have been
Speaker 1: out there with Kathleen Hay's talking with Mr Bullard and
Speaker 1: Bullard Mary daily, Uh, just hearing from them and weighing
Speaker 1: in on the economic outlooking what they see with inflation.
Speaker 1: Does inflation become problematic on the equity side of things
Speaker 1: anytime soon? Margie, I think we have to see all
Speaker 1: that unfolds. I think clearly we're going to see inflation
Speaker 1: in certain sectors, some of the commodity sectors, some of
Speaker 1: the goods that have been in short supply. I think
Speaker 1: we'll see that some some of the chip in fact,
Speaker 1: computer chips have gone up a lot in price. So
Speaker 1: I think we'll see here and there lot of spotty things.
Speaker 1: It's much more important to me is what happens to
Speaker 1: labor costs overall, because that's really the biggest driver of inflation.
Speaker 1: But I think we should expect to see from materials
Speaker 1: and shortages, we should see some higher prices. And I
Speaker 1: don't know if that will spook the market. It's only
Speaker 1: if we start to see sustained labor increases, I think
Speaker 1: that the market will get quite concerned. Can we can
Speaker 1: we drop on history? If I think about pre pandemic,
Speaker 1: the labor market was getting very tight. We know that
Speaker 1: we did start to see some strains and some push
Speaker 1: up in terms of wages, especially along the lower rung
Speaker 1: uh jobs, if you will, and that showed how tight
Speaker 1: the labor market was. Is it a long time before
Speaker 1: we get to that point. Well, I think we should
Speaker 1: expect to see some of those the bottom fifth or
Speaker 1: two fifths in the employment market show the biggest percentage
Speaker 1: rebounds um. But I think what's more important is what
Speaker 1: happens to that top top two fifths of labor. We're
Speaker 1: not expecting to see much increase there, but optically we
Speaker 1: may see. Uh for for the average rage for the
Speaker 1: entry level worker, big increases they are just because they've
Speaker 1: gone from such a low level, and we'll need a
Speaker 1: big bounce back in order to draw those people back
Speaker 1: in the labor force. Hey, market, where don't you want
Speaker 1: to be in the market right now? Uh? Well, I
Speaker 1: think the best place to be is in the strongest economy.
Speaker 1: So of course I would still think the US. As
Speaker 1: opposed to say, emerging markets, I think there's still a
Speaker 1: lot of uncertainty about the ability of those countries to
Speaker 1: rebound and also their ability to get over the COVID crisis.
Speaker 1: We were pretty much past that, England's pretty much past that.
Speaker 1: China looks like it's handling that been. Some of the
Speaker 1: emerging markets they look much earlier on the COVID curve
Speaker 1: than we are. So I think we may see disappointing
Speaker 1: growth from from those countries. But did you like the
Speaker 1: economically sensitive sectors correct? Yes, Because we're seeing a not
Speaker 1: only a short term cyclical rebound, but also continuation of
Speaker 1: the secular growth, especially in the U ask for a
Speaker 1: lot of materials demands. A lot of those companies have restructured,
Speaker 1: a lot of industrial companies have restructured. So we think
Speaker 1: that as economy progresses, we'll see good demand for those
Speaker 1: those uh, those companies. Just real quickly, just got about
Speaker 1: twenty seconds here. What keeps you up at night when
Speaker 1: you look at the financial markets? I would say, will
Speaker 1: we see inflation actually pick up for the first time
Speaker 1: in several decades? Right now, it doesn't look like it,
Speaker 1: but it's something to be carefully watched. All right, Gonna
Speaker 1: leave it there, Markie, thank you so much, really appreciate it.
Speaker 1: Market Patao. She's senior portfolio manager at Wells Fargo Asset Management,
Speaker 1: six hundred three billion dollars in assets under management, on
Speaker 1: the phone from Boston. Thanks for listening to Bloomberg Business Week.
Speaker 1: Download the podcast on iTunes, SoundCloud, or Bloomberg dot com,
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