WEBVTT - Pandemic Could Create Industries We're Not Yet Aware Of 0:00:02.640 --> 0:00:05.360 Welcome to the Bloomberg Penl Podcast. I'm Paul swing you 0:00:05.360 --> 0:00:07.680 along with my co host Lisa brahma Witz. Each day 0:00:07.720 --> 0:00:10.280 we bring you the most noteworthy and useful interviews for 0:00:10.320 --> 0:00:12.560 you and your money, whether at the grocery store or 0:00:12.560 --> 0:00:15.480 the trading floor. Find a Bloomberg Penl podcast on Apple 0:00:15.520 --> 0:00:18.000 podcast or wherever you listen to podcasts, as well as 0:00:17.960 --> 0:00:21.720 at Bloomberg dot Com. It's ten thirty three on Wall Street. 0:00:21.720 --> 0:00:24.520 Time to check in with Bloomberg Opinion. We're joined by 0:00:24.560 --> 0:00:28.280 opinion columns. Max Nisson covers all things healthcare for US, 0:00:28.280 --> 0:00:30.080 and we love to have him on, particularly during this 0:00:30.120 --> 0:00:33.360 pandemic because there's so many topics. There's so much breaking news, 0:00:33.440 --> 0:00:35.560 and Max, I want to start with the Santa Fee 0:00:35.600 --> 0:00:37.760 news here. I guess the CEO came out yesterday and 0:00:37.760 --> 0:00:41.400 said that the US would likely get first crack at 0:00:41.440 --> 0:00:45.559 their vaccine because the US was first to step up 0:00:45.640 --> 0:00:49.360 with funding here, and now he's getting some pushback on that, 0:00:49.440 --> 0:00:53.360 including from the President of France here, So give us 0:00:53.400 --> 0:00:56.480 the background here. How common is that in the world 0:00:56.480 --> 0:00:59.760 of healthcare and vaccines for one country to get preference 0:01:00.000 --> 0:01:05.120 over another. Uh, you know, it's not uncommon at all 0:01:05.160 --> 0:01:09.360 in the sense that you do see wealthier countries UM, 0:01:09.400 --> 0:01:13.440 countries that have a manufacturing base UM do do get 0:01:13.480 --> 0:01:17.160 access more rapidly. There there was a flu outbreak that 0:01:17.240 --> 0:01:19.720 the two thousand nine one where where a lot of 0:01:19.720 --> 0:01:22.800 those vaccine stocks, which which didn't end up being super useful, 0:01:23.120 --> 0:01:26.400 were were bought up by by countries like the United States. 0:01:26.480 --> 0:01:30.840 This is a kind of particularly special and case where 0:01:30.920 --> 0:01:33.320 you know, the United States on one hand, is providing 0:01:33.480 --> 0:01:36.880 some some extra funding helping me up potentially to build 0:01:36.920 --> 0:01:40.240 some of that that at risk manufacturing capacity before we 0:01:40.280 --> 0:01:42.880 even know if the vaccine works UM. But at the 0:01:42.920 --> 0:01:46.679 same time, the furor that this this kind of prompted 0:01:46.840 --> 0:01:49.120 highlights that this is going to be a really complicated 0:01:49.560 --> 0:01:54.640 geopolitical issue, that there's such demand that that giving countries 0:01:54.760 --> 0:01:58.440 preferences is going to be incredibly controversial and difficult, and 0:01:58.440 --> 0:02:01.240 and that you also, you know, you if you politicize it, 0:02:01.320 --> 0:02:03.520 that that has some risks. What if you have a 0:02:03.560 --> 0:02:06.920 situation where where the vaccine that turns out to work 0:02:07.000 --> 0:02:10.040 best is one of the ones being developed in China 0:02:10.120 --> 0:02:13.799 and they take the position that because they funded it, UM, 0:02:13.840 --> 0:02:15.880 the you know that the United States should be last 0:02:15.919 --> 0:02:18.560 in the queue. So it's it's a really risky path 0:02:18.639 --> 0:02:21.560 to step down um to do anything but try to 0:02:21.600 --> 0:02:26.440 develop maximum capacity and give it out to whatever extent 0:02:26.520 --> 0:02:30.000 possible based on need um. You know, the best situation 0:02:30.080 --> 0:02:34.079 is not having to ration doses out or give countries 0:02:34.120 --> 0:02:38.720 preference based on their income level max just zooming out 0:02:38.840 --> 0:02:41.800 a little bit. I mean, we're all hopeful for a vaccine, 0:02:41.800 --> 0:02:43.880 and we can argue over who's going to get it first, 0:02:44.200 --> 0:02:46.839 but we still don't have any clarity of how long 0:02:46.880 --> 0:02:48.679 it is going to take. In the w H of 0:02:48.720 --> 0:02:51.639 the World Health Organization yesterday warned that it could take 0:02:51.720 --> 0:02:55.320 up to five years before the coronavirus pandemic is under control. 0:02:55.360 --> 0:02:58.440 I'm looking at more and more dire predictions of social 0:02:58.480 --> 0:03:01.600 distance in distancing strikeing out for a longer and longer 0:03:01.680 --> 0:03:04.240 period of time as we await some sort of treatment 0:03:04.320 --> 0:03:10.480 or vaccine. Where are we How do we even judge that? Unfortunately, 0:03:11.000 --> 0:03:14.359 anyone that tells you that they have, you know, an 0:03:14.400 --> 0:03:18.560 accurate timeline is is making it up. You know, Okay, 0:03:18.600 --> 0:03:20.919 will make it up and make it good, make it positive, 0:03:20.960 --> 0:03:24.400 so we can prepare to leave our all. That's very 0:03:24.440 --> 0:03:28.320 much the temptation, but you also want to avoid giving 0:03:28.360 --> 0:03:32.840 the sense of false hope because the best way to 0:03:32.919 --> 0:03:37.280 proceed is is not in relationship to best case scenario. 0:03:37.640 --> 0:03:40.360 It's the worst case scenario where you have to use 0:03:40.440 --> 0:03:44.720 public health efforts, testing, tracking, tracing, um screening to to 0:03:45.160 --> 0:03:48.560 keep people safe until there's a vaccine, whether it's you know, 0:03:48.600 --> 0:03:50.520 by the end of the year or well into next year. 0:03:51.240 --> 0:03:54.480 It's just worth highlighting again that that we we're working 0:03:54.520 --> 0:03:58.600 on an untrucedented timeline. Um, you know, it may well 0:03:58.720 --> 0:04:04.920 be that higher vaccine development efforts were overcautious because um, 0:04:05.000 --> 0:04:07.280 you know, we just weren't willing to throw enough resources 0:04:07.320 --> 0:04:09.920 at them or or take enough risks and that that 0:04:10.240 --> 0:04:13.960 you know, these these rapid accelerations will prove successful. But 0:04:14.160 --> 0:04:17.080 you know, it's not like it's a slow process on 0:04:17.200 --> 0:04:19.760 a whim. It's because if you're going to give something 0:04:19.800 --> 0:04:23.080 to billions of people, um, you know, a one percent 0:04:23.560 --> 0:04:26.760 serious side effect rate that that's you know, close to 0:04:26.800 --> 0:04:30.480 the estimated fatality rate above the virus itself, you could 0:04:30.520 --> 0:04:33.239 be having a negative impact on millions and millions of people. 0:04:33.360 --> 0:04:36.800 So you really do have to approach is cautiously, and 0:04:36.839 --> 0:04:38.480 there are a lot of things that can go wrong. 0:04:38.640 --> 0:04:40.880 It's not just about the safety, it's about can you 0:04:40.880 --> 0:04:45.120 actually produce a durable immune response if you take the 0:04:45.200 --> 0:04:48.160 vaccine and it peters out after a few months. Um, 0:04:48.279 --> 0:04:50.400 you know, it's not all that much good, is it? 0:04:50.640 --> 0:04:53.640 So you know there there are only so many shortcuts 0:04:53.680 --> 0:04:55.520 you could take, and that's why you have to be 0:04:55.560 --> 0:04:59.080 cautious about the timeline. Max Neeson, thank you so much 0:04:59.120 --> 0:05:01.000 for being with us as all is Maxinism and Bloomberg 0:05:01.000 --> 0:05:04.599 Opinion calumnist, joining us to talk about the vaccine and 0:05:05.080 --> 0:05:09.000 the arguments that are already occurring over the distribution of 0:05:09.000 --> 0:05:12.680 those vaccines. Paul, all right, how you're gonna I'm not 0:05:12.720 --> 0:05:15.880 sure how you figure that out. You know, it's just 0:05:15.880 --> 0:05:18.600 gonna be interesting to see when they're hopefully there will 0:05:18.640 --> 0:05:22.400 be a vaccine, how it is distributed and the boy 0:05:22.440 --> 0:05:26.880 who goes first? And what does fair mean when everyone 0:05:26.920 --> 0:05:29.680 thinks that fair is for them to get it first? Okay? 0:05:29.760 --> 0:05:33.120 Moment of truth, Paul, real, moment of truth. How many 0:05:33.160 --> 0:05:36.760 times have you googled the symptoms of COVID nineteen as 0:05:36.760 --> 0:05:42.640 well as the transmission mechanisms, the you know, rate of contagion. 0:05:43.640 --> 0:05:46.480 You know what fortunately I have not, you know, I'm 0:05:46.600 --> 0:05:50.040 really yeah, I'm just you know, staying at home, you know, 0:05:50.120 --> 0:05:53.159 doing all the common sense stuff. And I think that's 0:05:53.200 --> 0:05:55.560 the best way to go. And I'm fairly comfortable with that. 0:05:56.000 --> 0:05:58.680 Definitely the best way to go. I cannot confess to 0:05:58.720 --> 0:06:04.400 the same, but I like at well, first it was 0:06:04.560 --> 0:06:09.279 a trade dispute. Now it's fingerpointing about the coronavirus. But 0:06:09.360 --> 0:06:13.200 the US China trade and relationship has been anything but 0:06:13.440 --> 0:06:17.239 smooth under the Trump administration. Now we've got President Trump 0:06:17.240 --> 0:06:19.960 coming out recently saying he's looking at Chinese companies that 0:06:20.040 --> 0:06:22.680 trade on the NASDAC and n Y s C, but 0:06:22.720 --> 0:06:25.480 they don't follow yours accounting rules. He says he doesn't 0:06:25.560 --> 0:06:28.480 want to talk with Chinese President g So the question 0:06:28.520 --> 0:06:30.800 remains is where are we in terms of the U. 0:06:30.960 --> 0:06:34.359 S And China in terms of global relationship. There's nobody 0:06:34.440 --> 0:06:37.839 better to ask that of than Andy Brown, editorial director 0:06:37.839 --> 0:06:40.560 of Bloomberg New Economy, joins us on the phone, and 0:06:40.680 --> 0:06:42.680 he thanks so much for joining us here. It seems 0:06:42.760 --> 0:06:46.360 like President Trump is ratcheting up the rhetoric, the anti 0:06:46.480 --> 0:06:52.360 China rhetoric. Is there a strategy here that you're following right. Yeah, 0:06:52.440 --> 0:06:55.400 So so look, this is not the first time, obviously 0:06:55.520 --> 0:07:01.719 that we've heard uh inflated, overheated rhetoric on China from 0:07:02.000 --> 0:07:07.440 President Trump. Um. You'll remember in August last year, I 0:07:07.480 --> 0:07:10.840 think it was, um where, out of the blue, he 0:07:11.000 --> 0:07:16.560 suddenly orders all US companies to exit China and return 0:07:16.640 --> 0:07:19.320 to the United States, and you know, companies at a 0:07:19.440 --> 0:07:22.160 time sort of scratch their heads and tried to figure out, 0:07:22.320 --> 0:07:23.760 you know, what it was. So in fact, it was 0:07:23.840 --> 0:07:27.840 more a sort of verbal explosion than a serious declaration 0:07:28.040 --> 0:07:31.600 of intense still less, was it a strategy, um, And 0:07:31.640 --> 0:07:34.120 I think you're seeing something of that here. I mean, 0:07:34.280 --> 0:07:38.320 obviously at route what he's trying to do is deflect 0:07:38.400 --> 0:07:43.520 blame for the coronavirus onto China. Both countries are playing 0:07:43.560 --> 0:07:46.760 this game. But the rhetoric this time, I mean, I 0:07:46.760 --> 0:07:50.440 will say it it is it is even more overblown 0:07:50.480 --> 0:07:52.800 than usual. And the one thing that actually caught my 0:07:52.840 --> 0:07:56.120 eye was this comment on Ji Jim Ping. I mean, 0:07:56.720 --> 0:08:00.320 you know, he's been very careful, um, right from the 0:08:00.320 --> 0:08:03.640 beginning since he took office, to separate all the bad 0:08:03.680 --> 0:08:06.320 things that were happening in the U. S. China relationship 0:08:07.440 --> 0:08:10.720 on the trade front, and on military front, security front, 0:08:10.720 --> 0:08:13.560 I p front, and so on, to separate all that 0:08:14.080 --> 0:08:18.240 from his own personal relationship with Jimping. And he's been 0:08:18.280 --> 0:08:21.160 at pains to tell the world, you know, I have 0:08:21.200 --> 0:08:24.920 a great relationship. He's a terrific guy, he's my friend 0:08:25.040 --> 0:08:28.760 and all the rest of it. And he today he's saying, 0:08:28.760 --> 0:08:31.680 he's saying to Fox, you know, um, still I have 0:08:31.720 --> 0:08:33.600 a great relationship with him, but I don't want to talk. 0:08:33.600 --> 0:08:35.480 I don't want to talk to him. And it just 0:08:35.520 --> 0:08:40.120 seems to me that that that is quite a significant step. 0:08:40.200 --> 0:08:45.040 It's now starting to look really personal. Andy, I'm struck 0:08:45.160 --> 0:08:48.720 by the increasing rhetoric by analysts who have watched this 0:08:48.800 --> 0:08:51.520 space for a long time saying that it's really getting 0:08:51.559 --> 0:08:54.840 close to a cold war between the US and China. 0:08:54.960 --> 0:08:57.080 And I'm wondering how much this is due to the 0:08:57.160 --> 0:09:01.480 pandemic and concerns about the transparency from China, and how 0:09:01.559 --> 0:09:04.080 much does this have to do with just this general 0:09:04.160 --> 0:09:07.200 feeling of anger towards the way that China has handled 0:09:07.240 --> 0:09:10.520 trade and a host of other issues. Well, there's been 0:09:10.520 --> 0:09:14.559 a reset, obviously in the United States view of China. 0:09:14.600 --> 0:09:17.480 I mean, China is now quite explicitly UM, you know, 0:09:17.640 --> 0:09:23.640 a competitor and an adversary UM, and everything flows from that. UM. 0:09:23.640 --> 0:09:27.920 You know, coming into this pandemic, you had real decoupling 0:09:28.480 --> 0:09:33.600 taking place in areas of technology, in trade, in investment, 0:09:34.200 --> 0:09:38.360 in talent, the flow of people across borders UM, and 0:09:38.520 --> 0:09:42.880 coronavirus M has has has has added more poison to 0:09:42.960 --> 0:09:46.480 that well. And now you're starting We talked earlier about 0:09:47.040 --> 0:09:52.040 you know, the latest area of potential decoupling, which is 0:09:52.040 --> 0:09:55.800 in the financial sphere. And and you know, so you're 0:09:55.880 --> 0:09:59.800 hearing just yesterday, in fact, Federal Pension Fund, under pressure 0:09:59.800 --> 0:10:02.840 of from you know, the White House, announced that it 0:10:02.920 --> 0:10:05.600 was postponing a decision on, you know, whether or not 0:10:05.640 --> 0:10:09.880 to to diversify into Chinese stocks. White Houses say, why 0:10:09.880 --> 0:10:13.480 would why should American pension has be you know, supporting 0:10:13.800 --> 0:10:18.360 Chinese companies that are competing against US companies and potentially 0:10:18.440 --> 0:10:22.560 ripping off their their I P you know, UM discussion 0:10:22.600 --> 0:10:26.000 about you know, for instance, UM, you know, whether whether 0:10:26.080 --> 0:10:29.160 whether the U s should renege on its data obligations 0:10:29.200 --> 0:10:31.480 to China. This is this sort of loose talk, but 0:10:31.800 --> 0:10:35.880 very very dangerous loose talk. Andy, Is there any sense 0:10:36.040 --> 0:10:39.160 that the medical community at least is working together on 0:10:39.200 --> 0:10:41.360 a global scale US and China as it relates to 0:10:41.400 --> 0:10:44.480 this virus and potential remedies and vaccines or is that 0:10:44.559 --> 0:10:48.800 also uh kind of you know on the back burner. Yeah. 0:10:49.000 --> 0:10:52.120 So you you you read about collaboration and and and 0:10:52.520 --> 0:10:56.200 I'm sure that there is collaboration going on, um, you 0:10:56.240 --> 0:10:59.960 know in certain areas. Um, but you also read about 0:11:00.400 --> 0:11:05.199 you know, vaccine nationalism and um. You know, China in 0:11:05.240 --> 0:11:08.360 the US in a race to develop a vaccine. And 0:11:08.960 --> 0:11:12.400 you know if if China got here, would they make 0:11:12.440 --> 0:11:16.240 it available to the US and vice of US? Um. So, 0:11:16.320 --> 0:11:18.959 I mean it's it's, it's it's I think it's an 0:11:19.080 --> 0:11:25.440 area of some collaboration but also potentially of competition. Andy, 0:11:25.720 --> 0:11:27.600 you know, a lot of this has gotten wrapped up 0:11:27.840 --> 0:11:30.760 in you know, how much is deflecting blame? How much 0:11:30.760 --> 0:11:34.880 to China hide? But taking a step back, how much 0:11:35.120 --> 0:11:37.280 is China really to blame here? I mean, can you 0:11:37.320 --> 0:11:41.800 give a sense of the legitimacy of the US has claims? 0:11:43.480 --> 0:11:47.800 Look this this whole issue about you know where it 0:11:47.880 --> 0:11:51.520 came from? So um, you know, the science says it 0:11:52.440 --> 0:11:56.480 came from from bats and was passed too uh to 0:11:56.640 --> 0:11:59.480 humans through through an animal. We we don't know, we 0:11:59.520 --> 0:12:02.360 don't know what kind of animal. And that's a question 0:12:02.400 --> 0:12:06.040 that that demands urgent inquiry and answer, which is why 0:12:06.040 --> 0:12:08.760 it's so important, I think, to have a real independent 0:12:09.120 --> 0:12:13.440 international inquiry into into what happened. But the there is 0:12:13.480 --> 0:12:18.280 no evidence to support the Trump White House accusations that 0:12:18.440 --> 0:12:20.319 you know, it came out of it, it it came out 0:12:20.360 --> 0:12:22.480 of a lab, and I think the White House as 0:12:22.559 --> 0:12:25.680 now sort of abandoned that about it was deliberate and so. 0:12:26.360 --> 0:12:28.240 But but they say that they've been you know and 0:12:28.320 --> 0:12:30.040 just just real quick, we've got twenty seconds left, but 0:12:30.040 --> 0:12:32.640 they've been talking about just a lack of transparency and 0:12:32.679 --> 0:12:36.079 how that's really hampered the ability to fight this pandemic. 0:12:36.600 --> 0:12:40.280 For sure, it has China, China, stone Wall, China has 0:12:40.640 --> 0:12:43.640 uh stiff on the w h O and continues to 0:12:43.679 --> 0:12:47.800 deny access to w h O scientists, um, you know who, 0:12:47.840 --> 0:12:51.560 who are interested in figuring out where there's the origin 0:12:51.840 --> 0:12:56.840 of of the virus. So there are legitimate complaints about 0:12:56.920 --> 0:12:59.640 China and its lack of transparency, certainly in the early 0:12:59.679 --> 0:13:01.960 part of the the early stages of the of the 0:13:02.000 --> 0:13:05.160 outbreak is equally true that the Trump White House ignored 0:13:06.120 --> 0:13:09.080 or you know, did very little to prepare the United 0:13:09.160 --> 0:13:12.840 States for this, for this coming pandemic during the entire 0:13:12.960 --> 0:13:16.360 months of February. What happened then, Andy Brown some legitimate 0:13:16.440 --> 0:13:18.520 questions and ones we will continue to ask through the 0:13:18.520 --> 0:13:21.640 weeks and months ahead, and editorial director of Bloomberg New 0:13:21.640 --> 0:13:28.520 Economy joining us on the phone from New Hampshire. Until 0:13:28.559 --> 0:13:30.280 the past few days, a lot of people have been 0:13:30.280 --> 0:13:33.560 talking about the resiliency of US equities and the contrast 0:13:34.000 --> 0:13:37.720 with that against and in creed increasingly bleak outlook for 0:13:37.800 --> 0:13:41.400 the US labor market. However, when we talk about equities, 0:13:41.440 --> 0:13:43.200 they are not all the same, and there's been a 0:13:43.280 --> 0:13:46.600 huge divergence between the mega caps, the big tech names 0:13:46.800 --> 0:13:49.720 and everybody else. Joining us now, Talcohen, head of US 0:13:49.760 --> 0:13:52.440 Markets for NASDAC in New York, tow thank you so 0:13:52.520 --> 0:13:54.960 much for being with us. I want to start there. 0:13:55.000 --> 0:13:58.040 What do you make of this growing bifurcation where the 0:13:58.080 --> 0:14:01.679 top performing stocks, the biggest stocks, which are actually the same, 0:14:02.240 --> 0:14:05.719 have continued to outperform what everything else actually gets left 0:14:05.760 --> 0:14:10.520 behind with a bigger and bigger gap. Well, thank you 0:14:10.559 --> 0:14:12.920 Lisa for having me today, and just to touch on 0:14:13.000 --> 0:14:16.240 what you mentioned in terms of the bification. The markets 0:14:16.240 --> 0:14:18.960 are distinguishing between companies that they think are part of 0:14:18.960 --> 0:14:22.680 the solution, such as tech and biotech, versus those that 0:14:22.720 --> 0:14:26.080 are most vulnerable, like travel and hospitality. And we're not 0:14:26.160 --> 0:14:27.880 just seeing it in the day to day we're seeing 0:14:27.920 --> 0:14:31.640 it in the inflows into the market. So for instance, 0:14:31.640 --> 0:14:34.160 and ask a q Q and I was like one hundreds, 0:14:34.440 --> 0:14:37.840 which we've seen eight billion dollars of inflows over just 0:14:37.920 --> 0:14:40.800 the last two to three months. So investors are trying 0:14:40.800 --> 0:14:43.400 to understand what parts of the economy are vulnerable, what 0:14:43.520 --> 0:14:46.600 parts of the economy came into this crisis on the 0:14:46.640 --> 0:14:48.640 position of strength, and what we'll leave on a position 0:14:48.640 --> 0:14:52.360 of strength. And then further, you're seeing a lot of 0:14:52.640 --> 0:14:56.080 unclear economic data such as the job support which is 0:14:56.120 --> 0:14:58.920 historically bad, and people are trying to figure out Investors 0:14:58.960 --> 0:15:00.720 are trying to figure out whether the to reflection of 0:15:00.760 --> 0:15:03.880 the long term impact or is it highlighting more of 0:15:03.880 --> 0:15:07.280 a temporary impact of the here and now. And then finally, 0:15:07.560 --> 0:15:09.360 on a day to day basis, you can wake up 0:15:09.360 --> 0:15:13.040 one morning and you can hear conflicting data on the 0:15:13.120 --> 0:15:16.120 longevity of this health crisis, where some folks will come 0:15:16.120 --> 0:15:18.200 out and say it will last throughout the year, and 0:15:18.200 --> 0:15:19.840 then you can see news at the end of the 0:15:19.920 --> 0:15:24.000 day from a healthcare company talking about a potential vaccine 0:15:24.280 --> 0:15:26.640 or potential treatment. So I think the markets and investors 0:15:26.680 --> 0:15:28.960 are trying to make sense of all of that while 0:15:29.040 --> 0:15:31.200 understanding there are going to be different parts of the 0:15:31.280 --> 0:15:35.320 economy that will be impacted severely differently than others. So 0:15:35.360 --> 0:15:37.400 tell I mean, some folks have been suggesting that we 0:15:37.480 --> 0:15:39.480 have in fact put in a bottom on this market 0:15:39.520 --> 0:15:42.560 and unlikely to retest the lows. How do you feel 0:15:42.560 --> 0:15:45.920 about that? Given some of this economic data that we see, 0:15:46.040 --> 0:15:48.480 including today's jobs claims and what we're likely to see 0:15:48.520 --> 0:15:53.680 in terms of unemployment and declining earnings. We'll leave that 0:15:53.760 --> 0:15:56.440 to the experts who watched the markets more closely. From 0:15:56.440 --> 0:15:59.120 our perspective, I would say that there's still a lot 0:15:59.160 --> 0:16:03.720 of unknown. We're still just looking to re enter into 0:16:03.760 --> 0:16:07.360 the into offices. We're talking about re entry plans there. Uh, 0:16:07.400 --> 0:16:09.880 they're still talking about a second way. There's in clarity 0:16:09.920 --> 0:16:12.800 around the vaccine or treatments, and on a state by 0:16:12.800 --> 0:16:15.280 state basis here, at least in the US, you see 0:16:15.400 --> 0:16:18.320 very very different conditions throughout the U S. I think 0:16:18.360 --> 0:16:21.000 it's it's still early to tell, and from an AZACT perspective, 0:16:21.360 --> 0:16:24.200 we just look at our own experience. We're still going 0:16:24.240 --> 0:16:26.680 through and trying to understand what it means to re 0:16:26.840 --> 0:16:30.640 enter offices. But that being said, we're very comfortable working 0:16:30.680 --> 0:16:33.880 from home. So it will depend on how comfortable you 0:16:33.920 --> 0:16:36.720 are with the situation you're in now and how long 0:16:36.840 --> 0:16:39.960 you think you'll be in this situation. Tell I'm wondering 0:16:40.080 --> 0:16:44.720 about your point with people being somewhat discerning when it 0:16:44.760 --> 0:16:47.800 comes to which companies they bet on. What does that 0:16:47.880 --> 0:16:51.680 mean for index strategies given the fact that everybody was 0:16:51.720 --> 0:16:55.200 going into passive investing and suddenly it really is a 0:16:55.320 --> 0:17:02.280 stock pickers market, particularly Pick Fang and nothing else. Yes, 0:17:02.720 --> 0:17:04.480 I think there's a couple of things to note. There 0:17:04.840 --> 0:17:06.760 is number one, you know, the FED and government have 0:17:06.840 --> 0:17:10.800 taken actions that probably have helped certain sectors, and so 0:17:10.840 --> 0:17:12.960 it's just not the market forces at work. You have 0:17:13.000 --> 0:17:15.880 the FED and government at work, and they've taken very 0:17:15.920 --> 0:17:19.600 strong and decisive actions in certain parts of the economy. 0:17:19.680 --> 0:17:22.240 So I think that's that's a factor. The second one is, 0:17:22.280 --> 0:17:25.160 once again, when you're working from home and you're thinking 0:17:25.200 --> 0:17:29.400 about the impact of this crisis for me personally, I'm 0:17:29.480 --> 0:17:32.000 using all these collaboration tools on a day and day 0:17:32.000 --> 0:17:34.560 out basis that I might not have been using before. 0:17:34.680 --> 0:17:38.520 So those companies that enable work from home, that enable 0:17:38.600 --> 0:17:42.080 the remote and virtual working environment, they're going to be winners. 0:17:42.520 --> 0:17:46.040 And those industries that clearly there isn't any clarity at 0:17:46.040 --> 0:17:47.440 this point in time as to when they're going to 0:17:47.480 --> 0:17:48.879 come back or how they're going to come back, and 0:17:48.920 --> 0:17:51.800 there's a debate as to, you know, what it looks like, 0:17:52.119 --> 0:17:55.600 what's the new new normal look like. So people instead 0:17:55.600 --> 0:17:57.960 of just taking bets on individual companies might feel more 0:17:58.040 --> 0:18:02.080 comfortable going into sector et F or thematic ets. But 0:18:02.200 --> 0:18:04.600 to your point, with interest rates and everything else being 0:18:04.600 --> 0:18:07.200 where they are, people are also looking at and being 0:18:07.200 --> 0:18:10.520 more critical about how the stock selection process would work. 0:18:10.520 --> 0:18:15.040 Now the nastack market held up in terms of performance 0:18:15.080 --> 0:18:17.720 in terms of kind of handling the order flow given 0:18:18.000 --> 0:18:19.840 a lot of the altivy we've seen over the past 0:18:19.840 --> 0:18:24.600 couple of months, great questions. So we've been almost all 0:18:24.640 --> 0:18:26.600 of us have been working from home for the better 0:18:26.640 --> 0:18:29.560 part of two months of our workers at home, and 0:18:29.680 --> 0:18:32.600 we've been able to operate without interruption to our business 0:18:32.600 --> 0:18:35.479 and continue to serve our markets and our clients. And 0:18:35.520 --> 0:18:39.120 we've helped up really well. The markets have functioned really well, 0:18:39.480 --> 0:18:41.680 and I think we're comfortable as a company because we've 0:18:41.720 --> 0:18:43.639 gone through it. We were lucky in some ways that 0:18:43.720 --> 0:18:48.080 the financial industry had gone through nine oleaven Hurricane Shandy, 0:18:48.119 --> 0:18:50.679 and some other events that have provided us with an 0:18:50.720 --> 0:18:54.359 opportunity to ensure that we have the resiliency and the 0:18:54.440 --> 0:18:57.600 BCP plans to withstand something like this. So I think, 0:18:58.080 --> 0:18:59.680 you know, we look at it and we think we'll 0:18:59.720 --> 0:19:01.639 be able to function well and we'll likely be a 0:19:01.720 --> 0:19:05.960 fast follower as people look onto the office till twenty seconds. 0:19:06.000 --> 0:19:07.919 Do you think a lot of people won't ever return 0:19:07.960 --> 0:19:10.240 to the office. I think it will be done on 0:19:10.320 --> 0:19:12.760 a voluntary basis. It will be done in ways and 0:19:12.840 --> 0:19:17.000 it who's companies to collaborate and talk to their employees 0:19:17.040 --> 0:19:19.400 about what they're comfortable doing, and then that will tell 0:19:19.480 --> 0:19:22.119 us the answer. Tal, thanks so much for joining us. 0:19:22.119 --> 0:19:25.360 I really appreciate your thoughts. Tal Cohen, head of US 0:19:25.480 --> 0:19:30.280 markets for NASDAK Nastack, of course based in New York City. Interestingly, 0:19:30.359 --> 0:19:32.000 so I think you know a lot of companies are 0:19:32.040 --> 0:19:34.959 really going to be rethinking this work from home situation. 0:19:35.000 --> 0:19:38.679 Given I think what's most feel like it's pretty decent productivity. 0:19:38.800 --> 0:19:41.840 Did you see the Connecticut governor's comments yesterday where he 0:19:41.880 --> 0:19:45.320 said that the Monday through Friday commute from Greenwich, Connecticut 0:19:45.600 --> 0:19:49.080 maybe a thing of the past. Yeah, exactly. It's interesting. 0:19:49.080 --> 0:19:52.000 You know, as a thirty year commuter on New Jersey Transit, 0:19:52.040 --> 0:19:56.080 that is a fascinating thing to think, you know, So 0:19:56.119 --> 0:19:58.240 as we think about that, so we'll have to see 0:19:58.280 --> 0:20:03.440 how this plays out over time. When we talk about 0:20:03.520 --> 0:20:06.199 reopening economies, a lot of it has to do not 0:20:06.280 --> 0:20:09.520 only with testing, but tracing. This raises a whole host 0:20:09.560 --> 0:20:12.400 of questions. Who will do the tracing, how will they 0:20:12.440 --> 0:20:15.720 do it, What kinds of personal privacy issues does this raise? 0:20:16.000 --> 0:20:18.520 And how organized is United States? Not to mention, who 0:20:18.560 --> 0:20:20.280 pays for it? Joining us now to answer all of 0:20:20.280 --> 0:20:23.880 these questions completely and fully is take him technology calumnists 0:20:23.920 --> 0:20:27.400 for Greenberg opinion, no pressure or anything. Hey, let's get 0:20:27.440 --> 0:20:30.840 started with big tech and how they have offered to 0:20:30.960 --> 0:20:34.159 help track and trace everybody in order to prevent the 0:20:34.160 --> 0:20:39.560 spread of the of the coronavirus. So on, April Tense, 0:20:39.640 --> 0:20:42.640 about a month ago, Apple and Google announced this unprecedented 0:20:42.720 --> 0:20:45.000 joint effort. I mean they've never really worked together like 0:20:45.040 --> 0:20:49.360 this before to develop smartphone technology to do context tracing. 0:20:49.440 --> 0:20:52.000 Basically the learning users that they've been in the proximity 0:20:52.040 --> 0:20:54.480 of a detected person so they can get tested in 0:20:54.560 --> 0:20:58.439 self quarantine. Um the crux and my column was a 0:20:58.480 --> 0:21:01.760 lot of countries in Europe have adopted the Google Apple 0:21:02.080 --> 0:21:06.399 proposal and plan Germany, Italy, Austria, even the United Kingdom 0:21:06.480 --> 0:21:10.000 is considering it. And I'm a little worried that the 0:21:10.080 --> 0:21:14.040 US is not doing anything on a national basis. Um 0:21:14.200 --> 0:21:17.280 President Trump days after it was first announced that it 0:21:17.680 --> 0:21:19.960 looked great, but he needed to talk to all these 0:21:20.000 --> 0:21:21.960 experts and he's gonna make a vision and that he's 0:21:22.000 --> 0:21:25.080 doing weeks, and it's been about four weeks, and we 0:21:25.119 --> 0:21:27.919 haven't heard anything from the American government. So I'm worried 0:21:27.960 --> 0:21:30.760 that the US is not actively working on this while 0:21:30.760 --> 0:21:34.160 all these European countries and countries around the world are 0:21:34.520 --> 0:21:38.560 basically accepting this great proposal that Apple and Google are presenting, 0:21:39.240 --> 0:21:42.240 and the US doesn't seem to have his app together. 0:21:42.760 --> 0:21:45.800 So tay, do I even need the US approval. Don't 0:21:45.800 --> 0:21:49.960 I just download it from my Apple you know apps 0:21:49.960 --> 0:21:54.639 like any other apps. Unfortunately we do. UM. Apple and 0:21:54.640 --> 0:21:58.280 Google's plan they don't actually create the app. They say 0:21:58.520 --> 0:22:01.919 one app per country. A public health authority needs to 0:22:01.920 --> 0:22:05.919 create the app to use their software technology, and for 0:22:06.040 --> 0:22:08.120 it to work, it really has to be a national 0:22:08.200 --> 0:22:11.119 app because everyone has to get involved. We have to 0:22:11.119 --> 0:22:14.520 have to share specific duty to do it. UM. It 0:22:14.560 --> 0:22:17.439 looks like in the US we have like the Utah 0:22:17.640 --> 0:22:21.520 making app in North Dakota, state by state. Thing is 0:22:21.520 --> 0:22:23.080 not going to work. We need the whole country to 0:22:23.119 --> 0:22:26.280 get behind it. And for that to be effective, we 0:22:26.320 --> 0:22:29.720 need the president, we need the federal government to be 0:22:29.720 --> 0:22:31.960