Speaker 1: This is Bloomberg Business Week. I'm Carol Masser and I'm
Speaker 1: Bloomberg Quick Takes Tim Stanovik. We're here every day bringing
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Speaker 1: read stories is what's going on with COVID again? And
Speaker 1: this new variant will give you a few headlines. The
Speaker 1: doctor who alerted the government scientists to the possibility of
Speaker 1: a new variant said people infected with omikroner showing milder
Speaker 1: symptoms and those suffering that delta strain government across the globes.
Speaker 1: There they're stepping up restrictions on travel. As the World
Speaker 1: Health Organization warned that this new variant of the virus
Speaker 1: Carol could fuel a fresh surge in infections. Right, so
Speaker 1: we saw so much concern on Friday, so the market
Speaker 1: sell off. You see the bounce back today, so uster
Speaker 1: seemed to be calming down as we seem to be
Speaker 1: feeling like maybe this is manageable, this latest variant. But again,
Speaker 1: as we've mentioned earlier, still a lot to be known. Well,
Speaker 1: let's get into it with Dr Rhonda Meadows, president of
Speaker 1: Population Health Providence Health System, joining us on the phone
Speaker 1: from Rent in Washington. We should remind everyone that if
Speaker 1: we think back to about two years ago, the first
Speaker 1: case of COVID nineteen, it was confirmed in Washington State
Speaker 1: at Providence Regional Medical Center that was an Everett, Washington
Speaker 1: back in January of Dr Meadows, it's great to have
Speaker 1: you on the program. Thanks for joining us. Well, thank
Speaker 1: you for inviting me back. So it's so interesting because
Speaker 1: if we're doing this on on Friday, I think the
Speaker 1: market would be telling us that it's very concerned about
Speaker 1: this new variant. But the market telling us today that
Speaker 1: it's not concerned about the new variant. That's what investors
Speaker 1: are showing us. As a doctor, what are you thinking,
Speaker 1: I'm going to have to agree with them. I like
Speaker 1: what you were saying earlier on your show. We actually
Speaker 1: have seen this this movie before. We actually have some
Speaker 1: best practices and things that we can do. Um So
Speaker 1: panic is not the strategy, right Being in warmed is
Speaker 1: how you make your plan. I would agree with them.
Speaker 1: I think once we realize what we were seeing and
Speaker 1: what we don't know yet, then people said, okay, wait
Speaker 1: about it, let's just cool their jets for a second
Speaker 1: and see this thing through. It is a reminder, right though,
Speaker 1: um dr meadows though that we are constantly kind of
Speaker 1: racing against time and if we don't get any kind
Speaker 1: of full immunity in terms of our society on a
Speaker 1: global level, we are ultimately going to be at risk
Speaker 1: of a variant coming out that's going to be more problematic.
Speaker 1: I think you are correct, and so this is what
Speaker 1: viruses do. This is what they lived to do. They
Speaker 1: mutate to try to find some way to propagate themselves.
Speaker 1: As long as there are pockets of people who are unvaccinated,
Speaker 1: and we can now see it's not just in your
Speaker 1: local neighborhood, it's globally. So you are right. As long
Speaker 1: as there are people locally, regionally, nash Sly and globally
Speaker 1: who are unvaccinated, that is a prime place for more
Speaker 1: mutations to occur, and at some point um those mutations
Speaker 1: may actually result in the more severe disease. Right now,
Speaker 1: we don't know that that's the case. We definitely know
Speaker 1: this is a variant with lots of mutation that is
Speaker 1: spreading faster. Is it excuse me for cutting you off?
Speaker 1: We only have about three minutes left and we have
Speaker 1: so much to get to I is is there a
Speaker 1: chance Dr Meadows that we perhaps could see this variant
Speaker 1: overtake all the other variants and it be a less
Speaker 1: mild form of the infection. So essentially the winning the
Speaker 1: winning variant in terms of nature is one that isn't
Speaker 1: as dangerous to the population. Yes. And the reason I
Speaker 1: say that is a more virulent or more severe variant
Speaker 1: basically would kill off the coast um, die out right
Speaker 1: and ultimately die out right. So what we want to
Speaker 1: do is actually, if we're going to have something that's
Speaker 1: going to be downb that let it be the milder version,
Speaker 1: and let it be a milder version that we can
Speaker 1: use the vaccine against. Yeah, that actually help in creating
Speaker 1: a much broader immunity across the globe. Potentially, this is
Speaker 1: what having more mutation. No no, no, no, no, having
Speaker 1: having this latest variant that is uh not as severe,
Speaker 1: but perhaps maybe you know, spreads more easily. I don't
Speaker 1: know if that's a that's a way to kind of
Speaker 1: think about it. I think it's probably more important that
Speaker 1: the vaccines themselves actually be modified in any way that
Speaker 1: they need to be to make sure that we're doing
Speaker 1: the best immunity, and then the vaccines actually get into
Speaker 1: the arms of people who are unvaccinated or who are
Speaker 1: under vaccinated. That's probably more the way we should think
Speaker 1: about it, rather than counting or trying to figure out
Speaker 1: what a virus is going to do. How should we
Speaker 1: think about yeah, no, no, no, I get I get it.
Speaker 1: I totally get it. I just I look at society
Speaker 1: where getting a vaccine has become so political and people
Speaker 1: pushing back. So I'm thinking, Okay, in the face of
Speaker 1: maybe people not stepping up and getting the vaccine, how
Speaker 1: do we get to a better place? And I think,
Speaker 1: all right, is it just that we get a less
Speaker 1: severe case of COVID that goes around a variant that
Speaker 1: just infects more people and that they just develop immunity
Speaker 1: that way? I think that there are too many mutations
Speaker 1: variations that are going with this virus. Anyway, we can't
Speaker 1: count on that. You have to take care of the
Speaker 1: thing that we can control, which is those vaccines and
Speaker 1: um and you know as well as idea that the
Speaker 1: virus does not care about our politics, that is so true. Yeah. Well,
Speaker 1: Carol brings up a really good point because I tweeted
Speaker 1: about getting a booster last week and I got some
Speaker 1: pushback on Twitter from somebody who listens to this show
Speaker 1: a lot, and he said, he asked if I got
Speaker 1: tested for antibodies before I did the booster. No, I didn't.
Speaker 1: I got the booster because the CDC recommended it. Uh.
Speaker 1: And he made the point that if we get boosters
Speaker 1: in this country, when not every not the entire world
Speaker 1: is vaccinated, we're pulling vaccine away from people who haven't
Speaker 1: gotten it yet. And that's a criticism that I've heard
Speaker 1: leveled a lot in developed countries. What do you make
Speaker 1: of that, doctor Meadows? So I'm going to tell you
Speaker 1: that I don't know that it's neither or I think
Speaker 1: we can still actually get vaccine and give it to
Speaker 1: people in other countries that don't have it. Now. I
Speaker 1: think we can do that and I think we can
Speaker 1: also provide boosters for people, particularly people fifty enough or
Speaker 1: people eighteen enough, who have underlying conditions that would make
Speaker 1: them more at risk. I don't think this an either
Speaker 1: on old decision. I think what there has to be
Speaker 1: is the will to actually get vaccine doses to poorer nations, right.
Speaker 1: I think that's the question, not whether that we can
Speaker 1: produce a book. Can we will we give it to
Speaker 1: them so they can go ahead and use it. Right.
Speaker 1: We're getting some pushback already from some nations are saying
Speaker 1: stop sending them. We we have so many at this point,
Speaker 1: Dr Meadows, just very quickly twenty seconds. Are you guys
Speaker 1: expecting some kind of surge in your system through the
Speaker 1: colder months? Just quickly. We we are preparing as if
Speaker 1: it's coming, no matter what, whether it's felter or whether
Speaker 1: it's omicron, or whether it's something new, We are prepared
Speaker 1: to address any search. Okay, well, we wish you well,
Speaker 1: uh in a safe and healthy holiday season. Be well.
Speaker 1: Doctor ROHNDE. Meadow is President of Population Health over Providence
Speaker 1: Health System. On the phone from Washington. This is Bloomberg,
Speaker 1: so among our most read on the terminal has to
Speaker 1: do with Twitter. This headline crossing were like, all right,
Speaker 1: we gotta find out what's going on. In fact, Twitter
Speaker 1: shares they were up eleven percent early on in the
Speaker 1: trade on this news of Jack Dorsey no longer CEO.
Speaker 1: Ten there down about two. Let's bring in Mandy Saying,
Speaker 1: senior tech industry analyst for Bloomberg Intelligence. He joins us
Speaker 1: on the phone from New York City. Mandy helped us
Speaker 1: understand what's going on here. Jack Dorsey had been at
Speaker 1: the helm since June one of twenty fifteen, at least
Speaker 1: in this iteration is CEO. First he was interim CEO
Speaker 1: and then he became full time CEO again. Um, and
Speaker 1: since then the stock is just underperformed it's peers and
Speaker 1: the benchmarks in a in a massive way. Help us
Speaker 1: make sense of Twitter's moves today though with this announcement,
Speaker 1: yeah so again. I think Twitter has been a story
Speaker 1: of continued under performance when it comes to execution on
Speaker 1: the ad side, and part of that has to do with,
Speaker 1: you know, them not being able to add more advertisers
Speaker 1: to develop a robust at platform. And I think what
Speaker 1: happened today was initially investors thought that they would bring
Speaker 1: in somebody from outside. The CEO search was more comprehensive
Speaker 1: in the sense, uh you know, they went about it
Speaker 1: objectively and they found the best candidate. Well, after two hours,
Speaker 1: we learned they picked up the CTO to be the
Speaker 1: next CEO, which I think, I mean, the way investors
Speaker 1: are looking at it is it will more or less
Speaker 1: be a continuation of the existing strategy. Granted, this guy
Speaker 1: has you know, credentials in terms of being a product guy.
Speaker 1: He can definitely improve on that ad platform that I
Speaker 1: mentioned before. But at the end of the day, when
Speaker 1: you look at these companies targets which they gave at
Speaker 1: the banning of the year, you know, user growth, it
Speaker 1: will be hard because they're not bringing in somebody new,
Speaker 1: and you know, I think investors are interpreting it as
Speaker 1: that those targets won't be met targets and that's why
Speaker 1: you're seeing this kind of historic reaction. But what does
Speaker 1: it mean when they bring in um Manti the CTO.
Speaker 1: Is it does it say something about changes to come
Speaker 1: On a tech level. I was trying to think, you know,
Speaker 1: is there another tech company out there that brought in
Speaker 1: their CTO and it was a game changer? Maybe in
Speaker 1: a good way or was disastrous. You can think of
Speaker 1: You can think about Microsoft, you know, bringing in such
Speaker 1: a leading the cloud division to be the CEO of
Speaker 1: the company. He was an internal candidate and guess what,
Speaker 1: he did a phenomenal job in terms of the vision
Speaker 1: and execution that the company showed after he took over.
Speaker 1: So I think there is merit to bringing a product guy,
Speaker 1: and you know, a tech focused guy to fix all
Speaker 1: the product issues that Twitter has faced over the years.
Speaker 1: But in terms of the neretrum kind of targets and execution, again,
Speaker 1: it doesn't give you the impression that you know there
Speaker 1: will be a drastic change in the company because of
Speaker 1: this announcement. And I think investors aren't even sure they
Speaker 1: went about the CEO search in the most comprehensive way.
Speaker 1: I mean, we don't know anything about how long were
Speaker 1: they're looking for CEO and how many candidates that they
Speaker 1: have shortlisted. So I think the objectivity of this search
Speaker 1: isn't very obvious to investors at this point of time.
Speaker 1: So help us make sense of this for our audience here, because,
Speaker 1: as I mentioned, shares of Twitter massively underperforming pure Facebook,
Speaker 1: for example, since the time the Dorsey came on as CEO,
Speaker 1: underperforming the NASTACK one hundred, the SMP five hundred, the
Speaker 1: list continues to go on. Is it is a continuation
Speaker 1: of what has been happening, a continuation of its strategy.
Speaker 1: Is that a good thing for investors? Well? So, uh, look,
Speaker 1: when you look at the social media space that has
Speaker 1: evolved quite a bit in the last you know, five years,
Speaker 1: we were mostly focused on text based content. Then you know, videos,
Speaker 1: short term videos really became a craze. You saw the
Speaker 1: rise of TikTok. Well, Twitter didn't really participate in any
Speaker 1: of those trends. When you look at a company like Snap,
Speaker 1: which is growing fifty percent, which continues to think they
Speaker 1: can grow fifty even with their core audience being you know,
Speaker 1: the younger demographic, they're doing something right in terms of
Speaker 1: monetization using ads. In start contrast, Twitter is growing and
Speaker 1: that is in line with the digital ad market growth.
Speaker 1: So it makes you wonder Twitter with its kind of
Speaker 1: engagement and really it's one of the uh, you know,
Speaker 1: the most under monet highs platform on the Internet. It's
Speaker 1: got a very high level of engagement. It's right for
Speaker 1: user base that uses it, but they're still not able
Speaker 1: to monetize it. So the core problem does lie in execution,
Speaker 1: and you know how they show their targeted whether the
Speaker 1: ads are actually targeted or not. And that is why
Speaker 1: you you see those kind of numbers, you know, trilling
Speaker 1: the lights of snap Man deep just real quickly twenty
Speaker 1: five seconds. Can they monetize Twitter in a more effective way?
Speaker 1: Is it just bad management or is it just like
Speaker 1: we've been We've been to having this conversation about Twitter
Speaker 1: for a long time. Can they really effectively monetize it
Speaker 1: in a better way just quickly? They can? And they
Speaker 1: have to think about the next version of social media
Speaker 1: and it has to tractor in meta wors. That's why
Speaker 1: Facebook and snap everyone is going after metal wors. So
Speaker 1: they have to think long term here and not just
Speaker 1: you know, fixing the holes. Mm hmm. Like I said,
Speaker 1: i've seen this movie before happens. This product just hasn't
Speaker 1: evolved the way that other platforms have. And like Mandeep said,
Speaker 1: social media has changed so much in the last five years,
Speaker 1: and yet it's such a part of certainly our world,
Speaker 1: the media world. But I think a lot of people
Speaker 1: use it um fairly effectively to communicate all right, mind
Speaker 1: deep saying of Bloomberg Intelligence. Thank you so much. Tim
Speaker 1: and I were just talking about this. The most important
Speaker 1: abortion case in a generation will be argued Wednesday before
Speaker 1: the nation's top court. Nine justices will decide that outcome.
Speaker 1: And Tim, the veteran litigator that we arguing the case,
Speaker 1: is betting on a precedent to save abortion rights. It's
Speaker 1: Julie Rickelman and David Yaffi. Bellenie writes all about her
Speaker 1: in the most recent issue of Bloomberg business Week magazine.
Speaker 1: You can read it on the Bloomberg and at Bloomberg
Speaker 1: dot com. Joining us now is David Yaffi, Bellanie and
Speaker 1: Joel Weber, editor of Bloomberg business Week. The precedent when
Speaker 1: it comes to Roe v. Wade, Am I going to
Speaker 1: get this Rightel storry diosis? But I mean it's it's maybe. Yeah.
Speaker 1: You know. The thing that we often try and do
Speaker 1: with the magazine with stories like this is like, we
Speaker 1: know that there's this news event coming that is basically
Speaker 1: could be one for the ages. You know, I have
Speaker 1: generational consequences in terms of what this outcome looks like,
Speaker 1: and if we do our jobs well, there's often a
Speaker 1: character sort of at the center of that of that storm.
Speaker 1: And and that's what just immediately caught my attention when
Speaker 1: David started talking to us about the attorney who's actually
Speaker 1: going to be defending um uh in front of the court. So,
Speaker 1: so David tell us more about Julie, right, Coleman. Sure.
Speaker 1: So she's one of the kind of pre eminent abortion
Speaker 1: law litigators in the United States. UM. The last time
Speaker 1: there was a major abortion case at the U. S.
Speaker 1: Supreme Court, which is about a year and a half ago,
Speaker 1: she was arguing on the on the side of the
Speaker 1: abortion clinics. UM. So she's she's very seasoned and has
Speaker 1: been doing these sorts of cases for for decades and decades. UM.
Speaker 1: But but this is uh, you know, as important as
Speaker 1: it gets, UM. And one of the reasons I was
Speaker 1: interested in her was to kind of on understand how
Speaker 1: it feels like to be somebody with the kind of
Speaker 1: you know, way of the world on your shoulders going
Speaker 1: into this sort of argument, and how she doing with
Speaker 1: the weight of the world on her shoulders. I think
Speaker 1: she's holding up fine. I mean, you know, like I
Speaker 1: was saying, she's very experienced, and she's argued at the
Speaker 1: Supreme Court before. So I think that that helps, but
Speaker 1: she says it's definitely stressful, and you know, she's working
Speaker 1: long days to get ready, doing kind of trial arguments
Speaker 1: and in front of experience litigators at law firms in
Speaker 1: DC and other places. Um. So she's, you know, working
Speaker 1: really hard to make sure that that she's ready for
Speaker 1: for arguments on the Cember first. Well, what do we
Speaker 1: know about her approach for arguments come this week? And
Speaker 1: in the context of how she argued the Louisiana case,
Speaker 1: what is her strategy center on? Sure? So, I mean,
Speaker 1: at the at the heart of this case is a
Speaker 1: decades old precedent in Roe v. Wade. It's it's very
Speaker 1: rare than not unheard of for the Supreme Court to
Speaker 1: overturn its own precedent. And one of the things that
Speaker 1: she's going to be stressing is the principle of story
Speaker 1: decisives and and the importance of kind of maintaining settled
Speaker 1: law um and not creating chaos unnecessarily by sort of
Speaker 1: changing changing tracks, um, kind of on a whim. So,
Speaker 1: so that's going to be the heart of our argument.
Speaker 1: I mean, that's it's similar to how she defended the
Speaker 1: um or how she opposed this law in Louisiana a
Speaker 1: couple a year and a half ago. UM. The difference
Speaker 1: now is that the court has changed Um Amy Coney
Speaker 1: Barrett's on the court now, it's a much less sympathetic
Speaker 1: set of justices to abortion rights UM and so the
Speaker 1: challenge is greater than it's ever been. So you laid
Speaker 1: that out really well, David, and and I am kind
Speaker 1: of curious that like what we know going into this
Speaker 1: case about how the court feels, um as you've established
Speaker 1: about abortion and abortion rights, but but also in terms
Speaker 1: of how they view the President, which she will probably
Speaker 1: argue the case. Sure. So I mean we know that
Speaker 1: there are you know, three liberal justices on the Court
Speaker 1: who are basically you know, you know, Shore Shore vote
Speaker 1: UM for for up polding ruviy Wade. Then you've got
Speaker 1: John Roberts, who we all understand, you know, really kind
Speaker 1: of values the institutional legitimacy of the Court, doesn't want
Speaker 1: to do everything anything to undermine that. He sided with
Speaker 1: Julie Rickleman in in UM striking down the Louisiana law
Speaker 1: a year and a half ago. And so you know,
Speaker 1: the hope is that he'll be on board too. So
Speaker 1: that's four of the five votes that you need. UM.
Speaker 1: And then you've got the five most conservative justices on
Speaker 1: the court, and the question is is there one of
Speaker 1: them that she can that she can win over um
Speaker 1: and Amy Coney Barrett looks like it looks like a
Speaker 1: tough one to win. She's been written critically about abortion
Speaker 1: in her kind of career as a law professor before
Speaker 1: she became a justice. UM. And so I think that
Speaker 1: the hope in in the in the pro choice community
Speaker 1: is that somebody like Brett Kavanaugh can be can be
Speaker 1: swung like a lot. Less is known about where he
Speaker 1: stands on abortion. He hasn't written or talked about it
Speaker 1: that much, and so the hope is that he's he's persuadable.
Speaker 1: But I think everybody understands that it's a long shot.
Speaker 1: And that's right, like kind of an amazing circumstance to
Speaker 1: find that Brett Kavanaugh, who had such a tumultuous hearing,
Speaker 1: would be the person who could be something of a
Speaker 1: swing vote here. Um, So what what do we know
Speaker 1: about the little that he's spoken about the issue, What
Speaker 1: what do we know? Well, one kind of quirk of
Speaker 1: history is that that in in the early nineteen nineties
Speaker 1: when um the Court reaffirmed Roe v. Wade in the
Speaker 1: case called Planned Parenthood v. Casey, basically kind of striking
Speaker 1: a compromise that kind of chipped away at Row a
Speaker 1: little bit but kept its essential holding intact. At that time,
Speaker 1: Brett Kavanaugh was clerking for a lower court judge who
Speaker 1: kind of heard the case before it reached the Supreme Court,
Speaker 1: and you know, while he was clerking, that judge issued
Speaker 1: an opinion that basically laid out the compromise of the
Speaker 1: Supreme Court later adopted. So Kavanaugh was sort of tangentially
Speaker 1: involved in the kind of most comparable historical precedent for
Speaker 1: what's happening now in case like really challenging the heart
Speaker 1: of Roe v. Wade, And he was clerking for a
Speaker 1: judge that basically helped lay out the compromise that kept
Speaker 1: Row intact. So you know, it's it's a quirk of history.
Speaker 1: And obviously a lot has happened in Brett Kavanov's career
Speaker 1: since then. He's become you know, more kind of closely
Speaker 1: witted to the conservative legal movement. But the hope is
Speaker 1: that you know, his his role and that kind of
Speaker 1: historical event, you know, maybe indicates that there's some flexibility.
Speaker 1: I mean, ultimately, is this about um a lawyer with
Speaker 1: a great argument before the Supreme Court justices, or is
Speaker 1: this just about the technicalities of law before those Supreme
Speaker 1: Court justices? What what will it come down to? Ultimately? Well,
Speaker 1: I don't think those things are fully extricable. No, clearly.
Speaker 1: But there's definitely a school of thought that there's really
Speaker 1: not a lot that Julie Rickleman can do herself. That
Speaker 1: you know, you've got nine justices who have thought about
Speaker 1: this issue plenty, who read the briefing and it probably
Speaker 1: already made up their mind, and there's like a limit
Speaker 1: to what she can accomplish um. And there's even there's
Speaker 1: a defeatist version of that argument that you hear from
Speaker 1: some people in the in the pro choice community, including
Speaker 1: the woman who argued that planned parenthood be casey case,
Speaker 1: which is that there's nothing that Rickleman can do and
Speaker 1: that you know, the numbers are the numbers, and you've
Speaker 1: got six conservative justices and it's just too much to
Speaker 1: hope that you know, two of them could be swayed. David,
Speaker 1: just in the last thirty seconds that we have with
Speaker 1: you what happens if Rickeleman ends up losing, Well, it
Speaker 1: sort of depends on how she loses. You know, there
Speaker 1: are different ways that that row could be either overturned
Speaker 1: or significantly watered down. But the most immediate effect, there
Speaker 1: are a bunch of states that have what are called
Speaker 1: trigger laws that ban abortion. The moment ree view weight
Speaker 1: is overturned, and so those would go into effect, and
Speaker 1: you'd see women in large swabs of the country lose
Speaker 1: lose access to abortion. Amazing. Um, A great story, and
Speaker 1: it's also telling it through an individual who's going to
Speaker 1: be smack in the middle of it all before the
Speaker 1: Supreme Court justices. David Yaffie Bellini, Thank you so much.
Speaker 1: Legal reporter at Bloomberg News on the phone from New Jersey,
Speaker 1: Joel Webber, Editor Bloomberg Business Week. He's in our Interactive
Speaker 1: Broker Studio. Find this story in the current issue of
Speaker 1: Bloomberg Business Week magazine. This is Bloomberg Business Week with
Speaker 1: Carol Masser and Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio.
Speaker 1: All right, you are listening to Bloomberg Business Week Carol
Speaker 1: Master along with Tim Stanovic and our interactive Broker's studio.
Speaker 1: So too is Bloomberg New Economy editorial director Andy Brown
Speaker 1: here in studio with us and the interesting story on
Speaker 1: the terminal that says China would face a colossal outbreak
Speaker 1: on a scale beyond anything any other country has yet
Speaker 1: seen if it were to reopen in a similar manner
Speaker 1: to the U S. We're talking about COVID, We're talking
Speaker 1: about closing borders, not closing borders. How do you see this? Yes,
Speaker 1: So this really confirms the general view that China has
Speaker 1: no intention of acting away from its COVID zero policies
Speaker 1: and if anything, is going to double down with this
Speaker 1: new omicron variant. So what happened was a bunch of
Speaker 1: statisticians at Peaking University asked the question, what would happen
Speaker 1: if China opened up just like the United States, in
Speaker 1: other words, adopted a pretty lay safe, fair attitude to
Speaker 1: COVID restrictions. And the answer is it would be an
Speaker 1: absolute catastrophe for China that within one or two days
Speaker 1: you'd get infections going from where they are now, which
Speaker 1: is about a hundred a day, give or take to
Speaker 1: six hundred and thirty thousands, of which of which twenty
Speaker 1: thousand would be serious cases and it would completely swamp
Speaker 1: the Chinese healthcare system. Is it just an numbers thing.
Speaker 1: I mean here in the US we have more than
Speaker 1: a hundred cases a day. Roughly, it is partly a number,
Speaker 1: partly a numbers thing. I mean, China's population is one
Speaker 1: point four billions. But it also reflects the fact that
Speaker 1: China has a relatively low vaccination rate of about fifty
Speaker 1: The vaccines they use are not the messenger RNA vaccines
Speaker 1: Madonna visa. These are vaccines made in the traditional way
Speaker 1: using inactive form of the virus or a attenuated water
Speaker 1: down form of the virus, so the the efficacy isn't
Speaker 1: quite as good. And the fact that because China has
Speaker 1: been in COVID zero, we've been pursuing COVID ze over
Speaker 1: so long, there is almost no natural immunity in the
Speaker 1: entire population, so you let it in and it just
Speaker 1: it almost go through the That's interesting because I was
Speaker 1: in Singapore with the New Economy Forum recently and they
Speaker 1: had just they have just started moving away from zero
Speaker 1: COVID towards COVID endemic. Basically, the the understanding that you're
Speaker 1: not going to defeat code and certainly not these more
Speaker 1: transmissible variants, including the delta variants. So you just got
Speaker 1: to live with it. Their experience was you went from
Speaker 1: I think it was about twenty a day two thousands
Speaker 1: a day, I mean almost overnight. I mean it went
Speaker 1: up to five thousand, and even in Singapore. Of those
Speaker 1: five thousand, there were enough serious cases to make the
Speaker 1: government very worried that their I c U units could
Speaker 1: be overwhelmed. And don't forget the Singapore healthcare system is
Speaker 1: about as good as any system in the world. And
Speaker 1: the Chinese system outside of the major cities where it
Speaker 1: is world class, medical system is world class in most
Speaker 1: of the country, and the countryside it's still medical is
Speaker 1: still pretty rudimentary. This is so important. I think about
Speaker 1: when we talk about the markets, and what's a top
Speaker 1: of the list of things that we need to be
Speaker 1: worried about. If China, you know, continues to be shut
Speaker 1: down or closed off from the rest of the world,
Speaker 1: what does that mean in terms of global economic growth
Speaker 1: or the global economic repercussions. But you think what that
Speaker 1: means right now for their efforts to maintain COVID zero
Speaker 1: in the face of delta, right, So it means extensive lockdowns.
Speaker 1: I mean they shut down the port of Ningbore, the
Speaker 1: port of dai in Uh. It's gonna mean travel restrictions. Um,
Speaker 1: it's going to mean that you know you're gonna get
Speaker 1: more snarls in your supply chains, factories closed down. I mean,
Speaker 1: look at the latest data. Factory output is slumping. Consumer
Speaker 1: demand in China is down because people are worried about
Speaker 1: going out and being exposed to COVID. So it's going
Speaker 1: to mean a good deal more economic disruption. And that's
Speaker 1: before omicron, which is apparent by all accounts, a good
Speaker 1: deal more transmissible than delta, So expect more of the same.
Speaker 1: What is life like for people who are under lockdown
Speaker 1: in China? So, I mean it it all it's all
Speaker 1: quite sudden and random, right that you know they'll lock
Speaker 1: down whole cities because they found one or two cases.
Speaker 1: I mean literally, they have the they have the confidence
Speaker 1: that they are able to track and trace and chase
Speaker 1: down every single case in a country of one point
Speaker 1: for billion people, which is about the same size as
Speaker 1: the United States. So Andy, why can't they forgive me?
Speaker 1: And I'm just kind of playing devil's advocates and things.
Speaker 1: So if they can track all of this down, will
Speaker 1: they ultimately track everyone down and just put a shot
Speaker 1: in everybody's arm and basically do it because because is
Speaker 1: that their only savior in terms of kind of reopening Well,
Speaker 1: the the the exit for them is going to be
Speaker 1: a more is going to be a better vaccine, and
Speaker 1: they're working on m R and A vaccines. We don't
Speaker 1: know when they're going to deliver one, maybe next year.
Speaker 1: UM and therapies. That's really the only exit now that
Speaker 1: they can hope for. Well, and it's interesting you do
Speaker 1: one or if the relationship right between China and maybe
Speaker 1: the U. S Or the rest of the world in
Speaker 1: terms of sharing vaccines, whether that could be a better situation. Well,
Speaker 1: Madonna would like to manufacture and has a license to
Speaker 1: manufacture in China, but they haven't actually started manufacturing yet.
Speaker 1: I mean, partly this is this is a question of
Speaker 1: you know, we're not going to rely on foreign vaccines
Speaker 1: to to save our population. They've got to be made.
Speaker 1: They've got to be made in China. There's another question, now,
Speaker 1: what happens to the Olympics? Um you know, now with
Speaker 1: with the omicron, what does happen to the Olympics. How
Speaker 1: do they do that? Well, you know, the reactions so far,
Speaker 1: Tom Crown in China has been pretty much taken in stride. Okay,
Speaker 1: we've you know, we've beaten We've beaten Delta Um. This
Speaker 1: is another challenge, but we're going to rise to the occasion. Essentially,
Speaker 1: we're going to double down. All right, Well, we will
Speaker 1: certainly see. But I do know that you talk to
Speaker 1: market watchers and they're definitely keeping an eye on what's
Speaker 1: going on in terms of Chinese growth. Andy, thank you.
Speaker 1: I really appreciate Andy Brown. He's editorial director at bloomber
Speaker 1: New Economy here in our Interactive Brokers studio, and that's
Speaker 1: something we'll probably talk about with our market clothes a
Speaker 1: little bit later on. Among the things that are top
Speaker 1: the list of market strategist market watchers, right, it comes
Speaker 1: down to COVID China being a huge economic engine for
Speaker 1: the global economy, and you do wonder if there's problems there,
Speaker 1: what happens. We should know. Biden meeting earlier in the
Speaker 1: day with CEOs of companies to talk supply chain and
Speaker 1: you have to wonder what a continued town in China
Speaker 1: means for those companies. Yeah, exactly. I try to order
Speaker 1: some things for Christmas and like no luck at a
Speaker 1: stock Well, Happy Valentine's Day everyone, exactly. Tim and I
Speaker 1: talked about some of the retail data points. Retail foot
Speaker 1: traffic up last week from a year earlier, shoppers UH
Speaker 1: driving US retail sales during Thanksgiving weekend up about fourteen
Speaker 1: point one percent year over year, and up almost six
Speaker 1: percent compared to twenty nineteen. That's according to MasterCards Spending Pulse.
Speaker 1: There's a lot going on in the retail sector. Well,
Speaker 1: fortunately we have joining us Gregg Portel, partner and head
Speaker 1: of Consumer Industries and Retail Practice at Carney. He joins
Speaker 1: us on the phone from St. Louis. Greg, help us
Speaker 1: understand where we are sort of halfway through Cyber Monday,
Speaker 1: or at least in New York wrapping up Cyber Monday. Um,
Speaker 1: what are the metrics telling you about where we are
Speaker 1: compared to nine because that is the benchmark that all
Speaker 1: of these companies are using. Well, I think the the
Speaker 1: overall messages that the consumer remains very strong. They've been
Speaker 1: the backbone as we've gone through this rocky period of time.
Speaker 1: They've been there throughout it, and they're there now that
Speaker 1: the challenge becomes how to interpret them because the traditional
Speaker 1: retail observers are looking for is it online or is
Speaker 1: it in store? And reality consumer shop all over the place,
Speaker 1: so it's a little bit misleading to evaluate them on
Speaker 1: one channel versus another because we just don't live that
Speaker 1: way anymore. No, but that's a good point. But we
Speaker 1: do try to figure it out, right, especially as we
Speaker 1: do try to figure it out. Yes, um, well, so
Speaker 1: like what are we doing? Are we? I mean? I
Speaker 1: don't know? Is it early in the season? Did the
Speaker 1: um omni crum variant? Do I say it right? I
Speaker 1: knew I said it incorrectly? Oh Crown Varry? Did that
Speaker 1: freak people out at all? Like what was going on
Speaker 1: this weekend? It's a little too early to tell what
Speaker 1: the new variant we'll do the consumers, but if it's
Speaker 1: like any of the other variants, consumers will blow through
Speaker 1: the news fairly quickly. One of the things we already have.
Speaker 1: The markets bounced back to me quickly, Yeah we're back,
Speaker 1: because consumers love to shop at their outlets. Retailers were
Speaker 1: really smart this year and they started to extend the
Speaker 1: holiday season so it didn't really start on Black Friday.
Speaker 1: It started in the middle of October, and that allowed
Speaker 1: the consumer to really lengthen their demand cycles, which allowed
Speaker 1: the retailers two in term, handle the pressure of the
Speaker 1: supply chains a little bit better than they have. Hey,
Speaker 1: what do we know right now about what consumers are
Speaker 1: finding out of stock versus what consumers are actually able
Speaker 1: to leave a store with him? Look, I'll speak any
Speaker 1: totally here. I went and bought a new phone while
Speaker 1: I was away last week, a very exciting, you know, staycation.
Speaker 1: And I went into another retail locations for the provider
Speaker 1: that we have and they didn't actually have any of
Speaker 1: the phones in stock, but they said we can fed
Speaker 1: X one to you and they will be there in
Speaker 1: two or three days, which is fine, right, But when
Speaker 1: I did this three or four years ago for the
Speaker 1: iPhone tend in the store, that is the The prediction
Speaker 1: of demand and the flexibility of the consumer are really
Speaker 1: two components of that story. We did a survey of
Speaker 1: consumers and asked them, hey, how loyal are you to
Speaker 1: particular brands in particular items, and shockingly said that they
Speaker 1: would go to a different store to find an item
Speaker 1: that they wanted. So it really isn't the out of
Speaker 1: stock that's going to trigger the problem. It's the how
Speaker 1: much disruption is there from going to one store to another.
Speaker 1: With the online options, it's pretty easy to to shop
Speaker 1: and find the item that you want, even if it's
Speaker 1: not in stock of your first choice, you know. And
Speaker 1: I did pop into a Target over the weekend to
Speaker 1: pick up something and it is a little bit of
Speaker 1: a madhouse. Did you did you order it online then
Speaker 1: go pick it off or do Actually I did order
Speaker 1: something online. They said they had it, and then like
Speaker 1: on route, they're like, sorry, out of stock, and I
Speaker 1: walked into the store founded on the shelf like randomly.
Speaker 1: So I do think it was either misplaced and they
Speaker 1: you know it was it was low so um, but yeah,
Speaker 1: I did think about I'm gonna do it online and
Speaker 1: just make sure I have it, and then ultimately had
Speaker 1: to go to the store anyway and play around. You
Speaker 1: point out a real problem for retailers. One of their
Speaker 1: I T backbones are not as robust as they need
Speaker 1: to be to track all of those moving parts, and
Speaker 1: consumers have really lost patience with the companies that can't
Speaker 1: figure it out. I mean, there was a certain amount
Speaker 1: of tolerance for that kind of inconvenience at the first
Speaker 1: part of the pandemic. But now consumers are expecting retailers
Speaker 1: to fulfill their consumer promise and if they if they're
Speaker 1: if you're people like you were going to the store
Speaker 1: expecting to be able to pick up the product and
Speaker 1: it's not there, that's going to have repercussions for retailer
Speaker 1: down the road. I was ticked off. I'm going to
Speaker 1: be quite honest with you because I was like, you
Speaker 1: sent me a confirmation that I had it, and then
Speaker 1: I was kind of like, what because I might have
Speaker 1: raced to the store quicker or I don't know what
Speaker 1: I would have done differently. It's happened to me, don't anymore? Yeah, So,
Speaker 1: so what's the what's the best practices for consumers right now?
Speaker 1: If they're looking to get their holiday shopping done, how
Speaker 1: should they be thinking about the supply chain snarls and
Speaker 1: navigating this. Well, if you're a shopper like me that
Speaker 1: depends on Christmas Eve to do your shopping, that's probably
Speaker 1: a bad idea. This time of year. Consumers should think
Speaker 1: about getting to the store early, having flexibility and what
Speaker 1: they want. I mean, the single Meamo doll that you had,
Speaker 1: you had your heart set on probably even going to
Speaker 1: be there this year. Yeah, it's the shop early and
Speaker 1: you know, as a retail observer, shop offer. Yeah. But
Speaker 1: it is interesting to see the equity trade today because
Speaker 1: we see a lot of the online retailers put Amazon
Speaker 1: as side. You see a lot of them like Etsy
Speaker 1: and a few others that are having are struggling a
Speaker 1: little bit because of some of the early numbers. You.
Speaker 1: I wonder how much of it was a is a
Speaker 1: reflection of what happened late last week. Was that's he's
Speaker 1: sort of seen as a stay at home booon. I
Speaker 1: don't know, that's like complicated. It is complicated. That's the
Speaker 1: word of the day. Omnic Amen what all? Okay? So
Speaker 1: the translation is return return return, right? Yeah? How many
Speaker 1: your susp did you take study abroad? Actually? Actually yes,
Speaker 1: there there, you've identified the title of a song that's
Speaker 1: not bad. So we're talking about returns for Latin. Yeah,
Speaker 1: that's what we're talking about. That particular version of the
Speaker 1: song was done by loss Low Books and it actually
Speaker 1: came out on a single they released themselves before they
Speaker 1: got signed and you know, made a name for themselves
Speaker 1: as recording artists. And you know that particular song is
Speaker 1: one of my wife's favorites. So I mean she learned it,
Speaker 1: you know, from her father. He was a fit goes
Speaker 1: out to Dave's wife. There you go, Sandy, you can
Speaker 1: say it if you want. In any case, I don't know,
Speaker 1: we'll find out. We'll find out. I'll find out tonight
Speaker 1: when you go home from Yeah. Absolutely might be a
Speaker 1: little lecture dessert for you. Yeah, maybe because she made
Speaker 1: her day. Yeah, I try to do it. I can, especially,
Speaker 1: you know, because I'm going to be spending more time
Speaker 1: with her very soon. In any case, Yeah, Latin America,
Speaker 1: that's what it's all about. I mean, this is uh
Speaker 1: something that Michael harten It over at the Bank of America,
Speaker 1: who's their chief global equity strategis highlighted in a report
Speaker 1: last week. A comparison between the MSCI Latin American Index,
Speaker 1: which we should point out as doward denominated, that's sort
Speaker 1: of a key issue, and the S and P five.
Speaker 1: And you look at where the ratio has been this month.
Speaker 1: It reached its lowest level since January nine, which is
Speaker 1: particularly important because the index is based is the end
Speaker 1: of nine, So in other words, you're practically back to
Speaker 1: its very beginning at this point, and the ratio has
Speaker 1: come down eighty nine percent from a record setback on October.
Speaker 1: You look at what's going on with Latin markets this year,
Speaker 1: Mexico's up a bit. The thing is, though, when you
Speaker 1: figure in the dollar, those games sort of a road.
Speaker 1: And then you look across South America you see markets
Speaker 1: like Brazil uh down in part because of lower share prices,
Speaker 1: but again weakness in the currency relative to the dollar.
Speaker 1: Similar story elsewhere like Chile for example. So it's really
Speaker 1: a continuation of something that's been going on for more
Speaker 1: than a deck and it's not like Hart and it
Speaker 1: came out in his research and said, you know, you
Speaker 1: should do something about this. He was pointing it out
Speaker 1: just to show kind of distortion arguably that's gone on
Speaker 1: in the market over time. Well, and there's a lot
Speaker 1: of markets, I feel like throughout South America's central market
Speaker 1: they've been struggling, like generally speaking, but then you factor
Speaker 1: in rite the stronger dollar and it just is really rough. Yeah,
Speaker 1: absolutely and mean. And you think about Brazil and you
Speaker 1: know what they've been going through with their president jen
Speaker 1: Your bills narrow when the issues they've had with COVID
Speaker 1: and everything else, and you can sort of understand why
Speaker 1: Latin America more broadly is in the situation it's in.
Speaker 1: You know, in Brazil, you figure is the biggest country
Speaker 1: in the region. If they're having issues, you know you're
Speaker 1: gonna see weakness. Selt square. Uh, Dave, do you have
Speaker 1: your charts picked out for the next two days? Um? Yes,
Speaker 1: there's more to come. I also have my stock of
Speaker 1: the day picked out for today. That would be very global.
Speaker 1: It's a maker of plastic packaging and other products. And
Speaker 1: they've got this activist investor and core group, and they
Speaker 1: don't have the biggest steak, only about one percent by
Speaker 1: their calculations at least. Uh. They came out though, sent
Speaker 1: a letter of the board said you should take a
Speaker 1: look at your options, including either doing a buy out
Speaker 1: or selling yourself to somebody else. And whenever you see
Speaker 1: that sort of thing come up, you know, people pay attention.
Speaker 1: And very global. The ticker is b E r Y.
Speaker 1: That's one R or even though the company name has
Speaker 1: to um as you'd expect. Well, the shares set a
Speaker 1: record today in response to this letter, and at the
Speaker 1: moment they're up about eight. Yeah, it's start that. I'm
Speaker 1: just like instance about mid October has been like bouncing
Speaker 1: off their lows and has been had quite a trajectory.
Speaker 1: But the market cap is something that you could see
Speaker 1: a lot of investors being interested in maybe doing something right. Yeah,
Speaker 1: I mean into that kind of just below ten billion dollars,
Speaker 1: all right, t Wilson, I don't go. You can also
Speaker 1: check our Dave stand all three time. It's on Facebook,
Speaker 1: LinkedIn and on Twitter at the one day. Yeah, but
Speaker 1: you let me drive. Oh no, no, no no, this
Speaker 1: is not a toy. All right, please, I'll do the
Speaker 1: riding revels. I want to drive. It's a good question.
Speaker 1: This is the drive to the clothes down on Bluebird Radio.
Speaker 1: TikTok everyone. Just about ten minutes left in today's trading session.
Speaker 1: Quite a reversal from what we saw on Friday. Remember
Speaker 1: the Friday was lighter trade in terms of market participants.
Speaker 1: But nonetheless we are seeing a bounce back in today's trade,
Speaker 1: not necessarily gaining back all the ground that we lost,
Speaker 1: certainly with those major market averages, but nonetheless definitely seeing
Speaker 1: a pop. Let's get to it with our market guest,
Speaker 1: Dave don Obede and his chief investment officer at CIBC
Speaker 1: Wealth Management. He joins us on the phone from Baltimore, Dave,
Speaker 1: how are you doing well? Are you doing well? Thanks?
Speaker 1: Help us make sense of what exactly is going on
Speaker 1: with the sell off that we saw on Friday and
Speaker 1: what the market is telling us now about the way
Speaker 1: that it's feeling about only Kron. Yeah. Well, I think
Speaker 1: if you you know, before Friday, we had a market
Speaker 1: that was uh, you know, either soaring or complacent about risk,
Speaker 1: depending on your your point of view. And then uh,
Speaker 1: you know, Friday, on a holiday shortened trading session, a
Speaker 1: new issue was injected on the CRON, and um, you know,
Speaker 1: complacency turned to fear. Although it was it was orderly,
Speaker 1: perhaps a little bit of volatili on Friday, a little
Speaker 1: bit exacerbated by lack of trading volume. But then I
Speaker 1: think we have all learned in the last twenty months
Speaker 1: in a coronavirus environment is that investors are adaptable, economies
Speaker 1: are adaptable, and so I think a little bit of
Speaker 1: time to think about it investors today. So you know,
Speaker 1: the delta variant was very important, um and significant health concern.
Speaker 1: It did slow the economy a little bit, but markets
Speaker 1: looked right through it, and uh, you know, let's not
Speaker 1: jump to conclusions here. Um, I think that's really important.
Speaker 1: We know very little about a macron. In fact, the
Speaker 1: experts are sort of sending different messages that the who
Speaker 1: referred to the risk of a macron is being very high,
Speaker 1: and hours later, the head of the South African Medical
Speaker 1: Association said that from what they could see the patients
Speaker 1: with symptoms, those symptoms were extremely mild. So is the
Speaker 1: risk very high or is there something was extremely mild symptoms.
Speaker 1: I think we're gonna, uh, you know, go through another
Speaker 1: couple of weeks of uh, fact finding, but probably with
Speaker 1: market volatility associated with it, until there's more clarity, luckilarly
Speaker 1: about what are the vaccines will be effective. David Wise
Speaker 1: person said to me just recently, we don't even know
Speaker 1: how to say this. We are still kind of early
Speaker 1: in the stagious when it comes to that person's initials
Speaker 1: are ts. Look happens to be my co host, But
Speaker 1: I mean, I'm not making light because people are getting
Speaker 1: sick still, and we know there's nothing funny about COVID
Speaker 1: and where we are and the impact it's had on society.
Speaker 1: But you make a good point, right. I mean, Tim,
Speaker 1: we're early in on We're still trying to figure this out,
Speaker 1: this variant, you know, And to some extent, David kind
Speaker 1: of felt like on Friday a repeat of what happened
Speaker 1: in March of twenty when the world was quickly learning
Speaker 1: about something new that it hadn't experienced. And then, you know,
Speaker 1: we speak earlier in the show with Dr Rhonda Meadows
Speaker 1: from the Population Health Management Providence in Washington State, and
Speaker 1: she says, what did She said, Carol, We've seen this
Speaker 1: play out before, We've seen this movie before. Don't panic exactly,
Speaker 1: and we have to take some time with him. She said,
Speaker 1: the market was right, exactly. And it is interesting the resiliency, right,
Speaker 1: we see when investors are like get some clarity and
Speaker 1: they bounced back. Having said that, we've talked about and
Speaker 1: I think a lot of market watchers, certainly earlier this
Speaker 1: year day we're talking about this being a much more
Speaker 1: volatile market and we've seen the VIC swing around certainly Friday,
Speaker 1: certainly again today. Um, how do you anticipate market action
Speaker 1: or what are you expecting in terms of market direction?
Speaker 1: Maybe it's a better question as we turn into a
Speaker 1: new year it's just around the corner. Yeah, So we
Speaker 1: think that the market direction for for equities is still higher,
Speaker 1: but our messages, uh, you know, it's sort of cautiously optimistic.
Speaker 1: Probably you take a six or twelve month time frame,
Speaker 1: it's probably more of a single digit market return and
Speaker 1: to your point, with higher levels of volatility. And that
Speaker 1: was our view even before this latest piece of news
Speaker 1: on on the coronavirus, because you have, you know, valuations
Speaker 1: that are certainly fowl. Uh, we're at you know, past
Speaker 1: peak policy support both monitoring fiscal policy, so not not
Speaker 1: quite as much of a catalyst there um and a
Speaker 1: year in which you know, we expect earnings in to
Speaker 1: be positive but but of course not up nearly as
Speaker 1: much as as so a more muted environment with higher volatility,
Speaker 1: which really what I'm saying is a more historically normal
Speaker 1: environment compared to what we've seen in the last three years.
Speaker 1: So we're also on the watch for a lot of
Speaker 1: economic data this week that we're set to get pending
Speaker 1: home sales for October this morning, hitting a new high
Speaker 1: for the year. We're expecting i M. Manufacturing on Wednesday,
Speaker 1: and of course that jobs report on Friday morning. We're
Speaker 1: at least now according to economists survey by Bloomberg, we're
Speaker 1: looking at just around fifty thousand jobs at it for
Speaker 1: the month of November. Apart from the job's report, what's
Speaker 1: the most recent what's the most important piece of economic
Speaker 1: data for us to keep an eye on? Dave? Yeah,
Speaker 1: I I think the other thing I have my eye
Speaker 1: on is, uh, you know, any piece of inflation data. Obviously, UM,
Speaker 1: we're very bullish on the economic outlook, the growth outlook
Speaker 1: right right through next year. UM. And you mentioned a
Speaker 1: lot of the data. We think it's going to continue
Speaker 1: to get stronger. But we're also in the sort of
Speaker 1: higher for longer camp on inflation. I think that you know,
Speaker 1: some of these supply chain shortages will lease over the
Speaker 1: next six or twelve months. But we're seeing stronger wage
Speaker 1: growth and we think we've not even seen the peak
Speaker 1: of that yet. We have rising shelter costs and just
Speaker 1: this incredible amount of liquidity flashing around UM. And so
Speaker 1: the notion that you even see in the Fed Zone
Speaker 1: forecast of inflation settling back down around two by the
Speaker 1: end of next year, we don't think that's going to happen.
Speaker 1: We think that the new normal for inflation is going
Speaker 1: to be you know, it's going to start with a
Speaker 1: free three points something instead of one or two percent.
Speaker 1: That's exact, and that's not the end of the world
Speaker 1: for equities. But the transition relative to that change in
Speaker 1: expectations is going to mean probably a more aggressive tightening
Speaker 1: path for the FED over the next couple of years
Speaker 1: than investors currently anticipate. But I do think about the
Speaker 1: spending power of individuals. We know consumers have been so
Speaker 1: crucial to this this UH economic recovery, and then you
Speaker 1: do wonder if they're purchasing power is reduced because of
Speaker 1: inflation or there's definitely we're seeing wages in some sectors
Speaker 1: but not necessarily everywhere, And you do wonder with the
Speaker 1: inability of wages to maybe keep up, whether or not
Speaker 1: that starts to dampen some of the earnings outlook going forward. Hey, Dave,
Speaker 1: we gotta run. Thank you so much. Dave don Obedie
Speaker 1: and his chief investment officer over at CIBC Private Wealth
Speaker 1: Management on the phone from Baltimore. What wage growth important
Speaker 1: number to keep an eye on on Friday when we've
Speaker 1: got those jobs jobs numbers for the current month that
Speaker 1: we're in and how much is it spread out. We've
Speaker 1: seen certainly um wages go up in some of the
Speaker 1: lower end or lower paying jobs, which is a good
Speaker 1: thing because they've lagged for so long. Labor force participation
Speaker 1: as well, exactly. Thanks for listening to Bloomberg Business Week.
Speaker 1: Download the podcast on iTunes, SoundCloud, or Bloomberg dot com,
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Speaker 1: on YouTube search Bloomberg Global News