WEBVTT - The Final Day of Campaigning for the White House 0:00:00.240 --> 0:00:03.280 This is Bloomberg Business Week. I'm Carol Masser. Every day 0:00:03.279 --> 0:00:05.200 we're bringing you the latest news from the world's of 0:00:05.200 --> 0:00:08.920 business and finance, plus technology, politics. So much going on 0:00:08.960 --> 0:00:12.160 in the world of politics, economics, and it's all harnessing 0:00:12.160 --> 0:00:14.840 the power of Business Week reporters and editors. If you 0:00:14.840 --> 0:00:18.280 can download Bloomberg Business Week on iTunes, SoundCloud or Bloomberg 0:00:18.320 --> 0:00:20.480 dot com. If you can also listen to our radio 0:00:20.560 --> 0:00:23.400 show at two pm Eastern on Bloomberg Radio and be 0:00:23.440 --> 0:00:26.320 sure to watch us too on YouTube by searching Bloomberg 0:00:26.360 --> 0:00:28.200 Global News. Do you want to get right to the 0:00:28.240 --> 0:00:31.920 Business Week agenda with us? Is Jina Martin Adams, chief 0:00:31.920 --> 0:00:34.680 equity strategist at Bloomberg Intelligence. She's on the phone in 0:00:34.720 --> 0:00:38.239 New Jersey. Also from New Jersey on the remote access 0:00:38.280 --> 0:00:41.479 is Ja Wilson, stocks editor at Bloomberg News. You know, 0:00:41.560 --> 0:00:46.000 so here we are again. The markets started off stronger, 0:00:46.040 --> 0:00:48.280 but we're definitely off our best levels of the session 0:00:48.640 --> 0:00:51.280 and we do see as Charlie mentioned at NASDAC lower Gina, 0:00:51.760 --> 0:00:54.080 you've been writing a lot about this. We focus a 0:00:54.120 --> 0:00:58.000 lot on the elections, but you really are focusing on earnings. Yeah, 0:00:58.040 --> 0:01:00.440 and the reason Carol we're focused on or is because 0:01:00.480 --> 0:01:03.600 I think what's happening the market is as much about 0:01:03.720 --> 0:01:08.559 rotation between market leaders at the sector level as anything else. 0:01:08.640 --> 0:01:11.479 I do think the election has certainly got some nerves frayed, 0:01:11.480 --> 0:01:14.039 and you see that in the fix and fixed futures 0:01:14.120 --> 0:01:18.319 markets sort of escalating over the last couple of weeks. 0:01:18.360 --> 0:01:23.399 But also underlying that overall nervousness is a rotation and 0:01:23.480 --> 0:01:26.400 leadership out of technology and into other sectors. We talked 0:01:26.400 --> 0:01:29.360 about the market being, you know, just kind of blaw today, 0:01:29.360 --> 0:01:32.080 not up a whole lot anymore after a pretty strong start. 0:01:32.560 --> 0:01:34.759 The reason is because tech stocks have sold off. If 0:01:34.760 --> 0:01:36.920 you look at the other sectors, energy stacks about more 0:01:36.920 --> 0:01:39.800 than three percent, materials and industrial stocks are up greater 0:01:39.840 --> 0:01:42.920 than two. But it's really trust tough for the broad 0:01:44.080 --> 0:01:46.560 rise without the participation of the tech sector. And that's 0:01:46.600 --> 0:01:50.120 an earnings thing. So even the earnings have beat expectations, 0:01:50.160 --> 0:01:52.000 the tech stocks have sold off. Why have they sold 0:01:52.040 --> 0:01:55.360 off because their earnings outlook is deteriorating a little bit. 0:01:55.480 --> 0:01:59.120 Other sectors are going to produce faster growth into and 0:01:59.200 --> 0:02:02.760 that's diminishing the case for paying very very high valuation 0:02:02.840 --> 0:02:06.000 multiples for tech stocks and logically right brain, left brain. 0:02:06.040 --> 0:02:07.600 You know, if we look at it, Gina, I mean, 0:02:07.720 --> 0:02:09.919 it makes sense considering the run up that we've seen 0:02:09.960 --> 0:02:13.960 in these tech names and performing and performing to support 0:02:14.000 --> 0:02:16.760 some of it. Yeah. Absolutely, And the reason that I 0:02:16.800 --> 0:02:18.560 think you also want to think about the reason behind 0:02:18.600 --> 0:02:20.760 the runup in the technique. You know, going into second 0:02:20.800 --> 0:02:23.400 quarter and even much of third quarter earnings, they were 0:02:23.400 --> 0:02:25.240 the only game in town. They're the groups that were 0:02:25.240 --> 0:02:28.600 actually still printing revenue and earnings growth. That dynamic will 0:02:28.639 --> 0:02:33.320 change going into the investment opportunity set improves. Tech stocks 0:02:33.600 --> 0:02:36.400 deserved a high valuation multiple relative to the market when 0:02:36.400 --> 0:02:39.560 they were the only stocks in the market creating earning growth, 0:02:40.200 --> 0:02:42.720 and they were the only stocks in a very defensive 0:02:42.800 --> 0:02:47.200 sort of portfolio really included a heavy tech concentration. Well, 0:02:47.240 --> 0:02:50.800 now that we're moving into a different kind of landscape, UM, 0:02:50.840 --> 0:02:54.600 it looks like the opportunities that will improve for other groups, 0:02:54.720 --> 0:02:57.840 and those groups are more value and cyclically oriented segments 0:02:57.840 --> 0:02:59.520 of the S and P. I'm going to ask you 0:02:59.560 --> 0:03:01.639 how much that cycle last in a moment, but I 0:03:01.680 --> 0:03:03.440 do want to bring in Dave Wilson and talk to 0:03:03.520 --> 0:03:06.239 us about this rotation. Dave what are you seeing. Well, 0:03:06.280 --> 0:03:08.600 that's it. I mean, if you think about tech in 0:03:08.600 --> 0:03:12.639 the broad sense, I mean it's not just information technology, 0:03:12.760 --> 0:03:17.880 it's also communications services where you find you know, Google's owner, Alphabet, Facebook, 0:03:18.200 --> 0:03:22.520 and then the consumer discretionary category that includes Amazon dot Com. 0:03:22.560 --> 0:03:24.919 Those are the only three groups that are down today, 0:03:24.960 --> 0:03:27.200 along the eleven main ones in the S and P 0:03:27.360 --> 0:03:29.920 five hundred, and there are plenty of stocks doing just 0:03:30.160 --> 0:03:33.839 fine after earnings. Uh. So you know, what what you're 0:03:33.840 --> 0:03:36.960 seeing is is sort of consistent with the idea that 0:03:37.120 --> 0:03:41.120 you know. It's it's those big tech companies have been 0:03:41.240 --> 0:03:43.520 drive in the market, and you know we've seen them 0:03:43.520 --> 0:03:45.800 come off lately. You mean Sarah ponzack I saw her 0:03:45.920 --> 0:03:48.120 chart out earlier today. I know she'll be on this 0:03:48.280 --> 0:03:50.920 program later on. Uh, just noting that if you go 0:03:51.000 --> 0:03:53.480 through those eleven main industry groups in the last month, 0:03:53.720 --> 0:03:56.800 tech it's been the worst performers. So, you know, it's 0:03:56.880 --> 0:03:59.080 kind of consistent with what we've seen lately in the 0:03:59.120 --> 0:04:01.760 way things have kind of been shifting around, but certainly 0:04:01.800 --> 0:04:03.960 isn't working to the market's favor at the moment. I 0:04:03.960 --> 0:04:06.040 know some value guys would be really happy to see 0:04:06.080 --> 0:04:08.720 some market rotation genet come on in though how long 0:04:08.840 --> 0:04:11.800 might this psycho rotation last, Like I do wonder how 0:04:11.880 --> 0:04:14.760 much of it is contingent upon the economic recovery, what 0:04:14.840 --> 0:04:16.880 we see in terms of more relief, Like I feel 0:04:16.880 --> 0:04:19.920 like there are some questions what one looks like which 0:04:19.920 --> 0:04:23.240 will determine who will continue to be the market leaders. Yeah, 0:04:23.240 --> 0:04:25.400 I think that's a very very good point. If you 0:04:25.400 --> 0:04:27.560 look at the outlook for earnings, is a pretty good 0:04:27.600 --> 0:04:30.280 benchmark for what to expect. Tech is going to undershoot 0:04:30.279 --> 0:04:33.920 earnings growth for the majority of one which means this 0:04:34.000 --> 0:04:36.920 could have legs for you know, at least until the 0:04:36.960 --> 0:04:40.640 second quarter, I think comes first quarter. A lot of 0:04:40.680 --> 0:04:43.320 this will depend on who's in the White House. You know. 0:04:43.400 --> 0:04:46.719 Clearly a blue wave is going to in my mind, 0:04:47.440 --> 0:04:49.920 continue the trends that has started in the market of 0:04:49.920 --> 0:04:53.400 cyclical rotation, because it most likely does mean that we 0:04:53.480 --> 0:04:56.159 get a pretty large fiscal policy package sometime in the 0:04:56.200 --> 0:04:58.760 first quarter. So even if in the short term you 0:04:58.760 --> 0:05:01.200 don't get any fiscal policy, investors are going to count 0:05:01.240 --> 0:05:05.320 on that fact come early and that's going to keep 0:05:05.320 --> 0:05:08.760 the value rotation moving forward in my mind, you know, 0:05:08.800 --> 0:05:11.520 And then also depends on how much we shut down again. 0:05:11.600 --> 0:05:14.440 You know, obviously Europe is is shutting down again. Most 0:05:14.480 --> 0:05:17.320 of us are assuming that the United States generally will 0:05:17.360 --> 0:05:22.960 stay open, allowing for reasonable economic conditions to maintain through 0:05:22.960 --> 0:05:25.279 the winter. But that's a wild card. You know, we 0:05:25.320 --> 0:05:29.560 could have a much more difficult economic scenario in the 0:05:29.600 --> 0:05:31.920 short run. Even then, though, I think most investors are 0:05:31.920 --> 0:05:35.560 going to take that opportunity to add to cyclical earners 0:05:35.600 --> 0:05:39.520 in anticipation of the policy outlook. I gotta say, I 0:05:39.560 --> 0:05:41.880 said that France number heard it this morning, not this morning, 0:05:41.920 --> 0:05:43.240 I think it was about one o'clock or a little 0:05:43.240 --> 0:05:46.039 bit after one our time. I mean, a record more 0:05:46.040 --> 0:05:49.880 than fifty two thousand new coronavirus cases. And it certainly 0:05:49.880 --> 0:05:53.760 made me sit up and take notice. Gina, Yeah, absolutely, 0:05:53.800 --> 0:05:55.640 And I think a lot of people are taking notice 0:05:55.640 --> 0:05:57.599 and kind of wondering what our response is going to 0:05:57.640 --> 0:05:59.520 be as we head into the winter. And you know, 0:05:59.560 --> 0:06:03.920 obviously escalation in infections in the US is problematic as well. 0:06:04.040 --> 0:06:07.760 Will a new administration um you know, clearly this new 0:06:07.800 --> 0:06:12.880 administration will would approach the virus contagion potentially differently than 0:06:12.920 --> 0:06:15.400 the past administration. If we do have a new administration, 0:06:15.400 --> 0:06:17.600 in the White House next year. So there's a lot 0:06:17.640 --> 0:06:20.840 of uncertainty, without a doubt. Yeah, exactly. And Dave, that 0:06:20.880 --> 0:06:22.680 kind of leads us to our chart quick tweet tease 0:06:22.720 --> 0:06:24.000 on which you got coming up in the chart of 0:06:24.000 --> 0:06:27.000 the day because it is election related, Yes it is. 0:06:27.120 --> 0:06:29.560 I mean, think about all the law and order issues 0:06:29.560 --> 0:06:32.280 that have come up during this race, and you know 0:06:32.680 --> 0:06:35.000 it's been a plus for the companies to make guns 0:06:35.000 --> 0:06:38.280 and ammunition. They always this watching this connection always just 0:06:38.360 --> 0:06:40.400 kind of blows my mind. All right, Davilson, We're gonna 0:06:40.400 --> 0:06:42.320 look forward to that. Thank you so much. Gina Martin 0:06:42.360 --> 0:06:46.000 Adams our thanks as always, Chief Equity Strategies at Bloomberg Intelligence, 0:06:46.160 --> 0:06:48.920 both of them joining us on the phone from New Jersey. 0:06:49.120 --> 0:06:53.559 This is Bloomberg Business Week with Carol Messer from Bloomberg Radio. 0:06:53.800 --> 0:06:57.039 You're listening to Bloomberg Business Week. Um, so much to 0:06:57.040 --> 0:06:58.719 get through in terms of the virus, and I've got 0:06:58.720 --> 0:07:03.520 to say we are seeing big surges numbers rising, especially 0:07:03.560 --> 0:07:06.840 in the Midwest, whether it's North Dakota, South Dakota, Wisconsin. 0:07:07.279 --> 0:07:10.120 Wisconsin in fact, I think is third behind North Dakota 0:07:10.120 --> 0:07:12.520 and South Dakota. When it comes to New cases per capita, 0:07:12.520 --> 0:07:15.560 and Nebraska and Iowa also up uh, and a look 0:07:15.640 --> 0:07:17.720 at some of the averages over the past week in Minnesota, 0:07:17.800 --> 0:07:21.200 the trend and new COVID cases and hospital admissions also upward. 0:07:21.680 --> 0:07:24.080 Let's get to someone who has really been so wonderful 0:07:24.120 --> 0:07:26.280 with us throughout the pandemic back with us, and we 0:07:26.320 --> 0:07:29.560 know she's busy. Dr Penny Wheeler. She's president CEO at 0:07:29.560 --> 0:07:32.040 a Line of Health. They've got twelve hospitals in the 0:07:32.080 --> 0:07:36.720 Minnesota area. They've got physicians, clinics, retail pharmacies throughout the 0:07:36.760 --> 0:07:40.720 Twin Cities metro area in eastern Minnesota. She joins us 0:07:40.920 --> 0:07:42.960 once again on the phone from Minnesota. Dr wheel are 0:07:43.040 --> 0:07:44.920 great to have you back with us. How are you, 0:07:45.800 --> 0:07:48.280 Thanks Carols, It's good to be back with you. Yeah, 0:07:48.360 --> 0:07:50.400 it's thanks. Just times here as we see those case 0:07:50.480 --> 0:07:53.320 counts go up in the hospitalizations go up as well, 0:07:53.440 --> 0:07:58.120 so so uh, there's some anxiety about that for certain 0:07:58.400 --> 0:08:00.880 I am wondering, what's the what are the conversations Dr 0:08:00.880 --> 0:08:03.600 Wheeler that you're having. You know, I mentioned the number 0:08:03.640 --> 0:08:06.000 over in France. We're watching Europe. I think everybody in 0:08:06.040 --> 0:08:08.520 the US is wondering, okay, is this where we are headed. 0:08:08.840 --> 0:08:12.800 France reporting a record fifty two thousand, five eighteen new 0:08:12.840 --> 0:08:16.520 coronavirus cases. That's a big number. Uh, And I wonder 0:08:17.160 --> 0:08:21.320 are you guys setting up are the facilities within your 0:08:21.400 --> 0:08:25.160 system and that you are involved with. Are you guys 0:08:25.160 --> 0:08:29.040 in anticipating another big surge or seeing it all? Yeah, 0:08:29.400 --> 0:08:31.000 we are, we are certain to see it already. I 0:08:31.000 --> 0:08:33.480 would say that you know, in our you know, in 0:08:33.480 --> 0:08:36.480 in minnes you know you just mentioned Carol, the surrounding 0:08:36.520 --> 0:08:40.160 states to Minnesota, all the Wisconsin and Iowa, we've all 0:08:40.200 --> 0:08:44.040 had about a higher than positivity rate. We've been creeping 0:08:44.080 --> 0:08:46.559 up and we've been seeing it around our border towns too. 0:08:46.800 --> 0:08:50.520 But we're in about eight percent prot you know, positivity rate. 0:08:50.559 --> 0:08:53.400 And I can tell you our hospital takes care about 0:08:53.440 --> 0:08:57.200 a quarter to a third of all um those in 0:08:57.240 --> 0:09:01.280 Minnesota affected by the virus. And we have doubled our 0:09:01.360 --> 0:09:04.400 census in COVID cases over the last two weeks. So 0:09:05.080 --> 0:09:08.760 it's coming quickly here. But what's what's you know, I'm curious, 0:09:08.880 --> 0:09:11.480 you know, certainly in some of the conversations we've had 0:09:11.520 --> 0:09:14.280 with within the medical community, is that we didn't have 0:09:14.280 --> 0:09:16.640 the playbook back in March, right, we were just scrambling 0:09:16.640 --> 0:09:18.960 to figure it all out. Get the equipment, get every 0:09:19.000 --> 0:09:21.200 you know, the places you know, get the systems, the 0:09:21.240 --> 0:09:24.240 necessary systems in place, or the equipment in place. I 0:09:24.280 --> 0:09:27.320 do feel like we are smarter now, and I hope so, 0:09:27.400 --> 0:09:29.480 but I do wonder what are you seeing or what 0:09:29.559 --> 0:09:31.960 have we learned from the past six to seven months, 0:09:32.000 --> 0:09:36.600 whether it's equipment, but also treating patients. Yeah, totally smarter, 0:09:36.800 --> 0:09:39.920 totally smarter, and how we're treating patients and supporting other 0:09:40.120 --> 0:09:43.000 organ systems and knowing how to treat them. So fewer 0:09:43.040 --> 0:09:45.280 people who are in our intensive care units are actually 0:09:45.280 --> 0:09:47.640 suc coming to the season dying so bad is good 0:09:47.920 --> 0:09:50.439 good news because we've learned more and we have more 0:09:50.480 --> 0:09:53.800 more treatments and more UM support available. You know, we 0:09:53.840 --> 0:09:57.480 do have the right now, the stuff available. We increasing 0:09:57.520 --> 0:10:00.640 testing significantly. I'll tell you the biggest channel for us 0:10:01.400 --> 0:10:06.040 is staffing. Staffing this appropriately for the search because of course, 0:10:06.080 --> 0:10:08.440 some of our health care workers are also people who 0:10:08.520 --> 0:10:11.240 are getting ill or having family members that are ill. 0:10:11.880 --> 0:10:15.000 So I the plea would be, boy, please do the 0:10:15.200 --> 0:10:18.199 distancing and masking. I know it's getting old and hard, 0:10:18.240 --> 0:10:21.880 but you're also protecting our healthcare workers significantly by doing so. 0:10:22.280 --> 0:10:24.640 You know, I think it's really interesting that you're saying that, 0:10:24.720 --> 0:10:27.480 because um I had a conversation actually with the CEO 0:10:27.480 --> 0:10:30.360 of Chipotle last week and I said, you know, same thing. 0:10:30.600 --> 0:10:33.760 You know, what has changed in your world, you know, 0:10:33.960 --> 0:10:36.760 since March and April in terms of the virus, And 0:10:36.800 --> 0:10:39.520 he said, one of the most recent challenges is that 0:10:39.679 --> 0:10:41.920 our own employees are getting sick and it makes it 0:10:42.360 --> 0:10:44.240 harder to run the restaurant. And I do think this 0:10:44.360 --> 0:10:47.880 is going to be maybe the story for the second 0:10:47.920 --> 0:10:50.760 third waves is you know, making sure that whether it's 0:10:50.760 --> 0:10:53.880 in healthcare, whatever industry, that we've got the necessary workers. 0:10:53.880 --> 0:10:57.079 And I know in healthcare it's critical, yeah, critical to 0:10:57.360 --> 0:10:59.600 just really the health of the community and our ability 0:10:59.640 --> 0:11:02.760 to treat people. So I worry that our capacity limitation 0:11:02.800 --> 0:11:07.240 will be healthy available staff. So it will be who limits. 0:11:07.280 --> 0:11:09.280 It won't be on the it won't be on the 0:11:09.320 --> 0:11:11.920 PPE right now, it looks like it won't probably be 0:11:11.920 --> 0:11:13.840 on the testing. It will be on that. So what 0:11:13.880 --> 0:11:17.319 do you do? Can you reach out to or what 0:11:17.360 --> 0:11:20.160 do you do? Do you reach out to your surrounding community, 0:11:20.160 --> 0:11:22.680 But they're also facing the same thing. Is there is 0:11:22.679 --> 0:11:26.760 there federal assistance that can help in this kind of situation. 0:11:27.600 --> 0:11:29.719 Not you know, we're not looking to federal assistance, but 0:11:29.760 --> 0:11:32.920 we can are collaborating wonderfully well among you know, the 0:11:33.040 --> 0:11:36.160 systems here, so that we're trying to just balance things out. 0:11:36.160 --> 0:11:39.640 If somebody doesn't have I few availability, who does, so 0:11:39.720 --> 0:11:42.160 we're not you know, this is the time again for collaboration, 0:11:42.200 --> 0:11:46.400 not competitiveness. And then we're continually working with each other. 0:11:46.440 --> 0:11:48.840 Like two of us are involved, for example, in vaccine 0:11:48.840 --> 0:11:51.320 trials that are going on, so we're trying to be 0:11:51.400 --> 0:11:55.320 proactive about you know, enrolling people in in in those 0:11:55.360 --> 0:11:59.040 trials as well. Yeah, I do wonder you know that, 0:11:59.200 --> 0:12:00.640 like I said that this is going to be one 0:12:00.640 --> 0:12:04.120 of the main stories at this point. Um. I do 0:12:04.240 --> 0:12:06.480 wonder too that one of the things that we saw, 0:12:06.600 --> 0:12:09.360 certainly when we were in the midst of it here 0:12:09.360 --> 0:12:11.880 in the New York metro area, that there was really 0:12:11.920 --> 0:12:16.199 this great kind of sharing of equipment, sharing of knowledge. 0:12:16.360 --> 0:12:18.400 And you know, what are you seeing, you know, as 0:12:18.400 --> 0:12:21.280 you deal with the entire healthcare community, or are you 0:12:21.360 --> 0:12:26.680 seeing that continued cooperation and assistance around the country. We're seeing, 0:12:26.760 --> 0:12:30.840 we're seeing the collaboration and cooperation here in spades, and 0:12:31.040 --> 0:12:33.679 well we can get you can manufacture equipment. What you 0:12:33.720 --> 0:12:39.640 can't do is manufactured talented, compassionate UM staff. And so 0:12:39.679 --> 0:12:42.520 again that's the that's the area that I think all 0:12:42.559 --> 0:12:46.560 of us are most concerned about dr UM well are 0:12:46.640 --> 0:12:48.679 One thing I wanted to know is in terms of 0:12:48.720 --> 0:12:53.760 those getting the virus, are the demographics changing? Is it older, younger? 0:12:53.920 --> 0:12:56.000 Is it a mixture. I'm just curious what you guys 0:12:56.000 --> 0:13:00.439 are seeing. Yeah, the demographics aren't changing into terms of 0:13:00.480 --> 0:13:04.920 those UM disproportionally affected who are black, indigenous people of color, 0:13:05.360 --> 0:13:08.000 so that's not changing. We are seeing a slight shift 0:13:08.040 --> 0:13:12.560 to younger UM people getting getting the virus uh UM. 0:13:12.800 --> 0:13:17.600 But otherwise profile and obviously the most of the very 0:13:17.640 --> 0:13:21.480 severe illness isn't. Sadly, the deaths occur in those who 0:13:21.720 --> 0:13:24.440 are in the older age groups or those who have 0:13:24.520 --> 0:13:27.480 chronic illnesses. So that's staying the same. Yeah, so very 0:13:27.600 --> 0:13:31.360 very similar. Listen, you know better than most it's all 0:13:31.400 --> 0:13:35.480 about you know, a vaccine. Although when you I'm curious 0:13:35.480 --> 0:13:37.160 how you feel about this. I feel like we continue 0:13:37.160 --> 0:13:39.720 to have conversations where more and more members of the 0:13:39.720 --> 0:13:42.880 medical community say, yep, a vaccines very important, but also 0:13:42.960 --> 0:13:45.880 really important is wearing your masks, social distancing, doing all 0:13:46.160 --> 0:13:49.360 all those simple things that can really make a difference 0:13:49.360 --> 0:13:52.400 in terms of our fight against this virus. Well, no 0:13:52.600 --> 0:13:55.240 question over emphasizing those over and over again. I heard 0:13:55.280 --> 0:13:59.640 one of your wonderful masks UH public service announcements while 0:13:59.640 --> 0:14:03.120 I was eating that's so important. The vaccine is important. 0:14:03.240 --> 0:14:05.680 It's it's not an all be all though. We're involved 0:14:05.720 --> 0:14:09.720 in a Johnson and Johnson ensemble vaccine trial with enrollment 0:14:09.840 --> 0:14:13.760 of people, and we're actually participant, you know, especially focused 0:14:13.800 --> 0:14:17.720 on populations of color, black, Indigenous, and people of color 0:14:17.800 --> 0:14:22.200 as participants, targeting specific zip codes. Sometimes these these studies 0:14:22.240 --> 0:14:25.600 are done too much on a more of you know, 0:14:25.760 --> 0:14:30.840 a white um population, and this is disproportionately affecting people 0:14:30.880 --> 0:14:34.360 of colors that we're actually targeting and asked to target 0:14:34.560 --> 0:14:38.600 our our vaccine trial accordingly. And then I think, Carol, 0:14:38.640 --> 0:14:40.440 you said it just right on the other side of things, 0:14:40.480 --> 0:14:43.280 we want a vaccine that can be trusted for sure, 0:14:43.320 --> 0:14:46.120 and that has safety, and that trust is important to 0:14:46.160 --> 0:14:49.480 people being able to actually get the vaccine. But remember 0:14:49.520 --> 0:14:53.960 even the even great flu vaccines, are you know, successful, 0:14:54.480 --> 0:14:58.080 and then there's a proportion that doesn't take them. So, 0:14:58.200 --> 0:15:00.360 you know, I also don't want people to think it's 0:15:00.680 --> 0:15:02.520 you know, we're flipping a switch and it's all over 0:15:02.600 --> 0:15:04.160 at that point too, But it's even when we get 0:15:04.160 --> 0:15:06.320 a safe one. Well, and that's a really good point. 0:15:06.320 --> 0:15:10.040 But I also think, you know, we continually talk um, 0:15:10.080 --> 0:15:12.240 you know, Penny about that when we get a vaccine, 0:15:12.280 --> 0:15:13.760 we've got to make sure it gets out to those 0:15:13.800 --> 0:15:18.240 most vulnerable populations as you guys are targeting. You said 0:15:18.280 --> 0:15:21.680 some zip code specifically of you know, black and indigenous, 0:15:21.720 --> 0:15:25.120 you know color people, And I do wonder do you 0:15:25.160 --> 0:15:26.880 have a lot of faith in the system that when 0:15:26.920 --> 0:15:31.160 it gets to you know, distribution logistics, that it will 0:15:31.200 --> 0:15:33.280 get to those people who really need it most. And 0:15:33.320 --> 0:15:36.080 what do we need to make sure that that happens? Boy? 0:15:36.160 --> 0:15:38.480 I do I do believe that will be true. You know, 0:15:38.480 --> 0:15:40.680 I'm an opport heart, but I think that those people 0:15:40.680 --> 0:15:44.360 who are most vulnerable and most willing, you know, those 0:15:44.400 --> 0:15:48.720 and in institutional settings that are elderly, those who are 0:15:48.720 --> 0:15:52.280 disproportionately affected, I think their acceptance rate will be higher. 0:15:52.400 --> 0:15:55.000 And when we have a vaccine that we can trust, 0:15:55.400 --> 0:15:57.560 I think that that will be going. I don't know 0:15:57.720 --> 0:16:01.440 that we will have widespread vaccine available, you know, right 0:16:01.480 --> 0:16:04.320 off the bat, but I think that those populations because 0:16:04.400 --> 0:16:08.080 of the UM, you know that the vaccine wo be widespread, 0:16:08.160 --> 0:16:11.680 yet will be the first one targeted for sure. One 0:16:11.760 --> 0:16:17.520 last question, I wonder what might surprise some of our listeners, 0:16:17.640 --> 0:16:20.440 especially here we are, what eight months in of dealing 0:16:20.440 --> 0:16:23.480 with this virus UM and you've seen it, like I said, 0:16:23.640 --> 0:16:27.320 front row seed for better or for worse? UM. You 0:16:27.320 --> 0:16:30.440 know what would surprise everyone about this fight, especially as 0:16:30.440 --> 0:16:32.920 it goes, You know, I would I'd have to say 0:16:32.920 --> 0:16:36.480 our staff. The resilience of our staff putting themselves on 0:16:36.520 --> 0:16:39.160 the line every day to try to care for others 0:16:39.320 --> 0:16:43.240 and going there day after day, um, despite their own 0:16:43.280 --> 0:16:46.080 personal fatigue. Obviously, this is affecting us all personally as 0:16:46.120 --> 0:16:49.760 well as professionally and all that that brings. And having 0:16:49.840 --> 0:16:53.080 school aged children that they're schooling at home and then 0:16:53.160 --> 0:16:57.880 coming and trying to take care of people, they are remarkable, 0:16:58.400 --> 0:17:01.760 just remarkable. So I know that that's a surprise to everybody. 0:17:01.760 --> 0:17:03.600 But when you see it day after day after day, 0:17:04.520 --> 0:17:08.000 you the human spirit and its resiliency in trying to 0:17:08.040 --> 0:17:10.960 work on behalf of others is pretty incredible. Well, I'm 0:17:10.960 --> 0:17:12.919 guessing as a leader, it's nice to see your staff, right, 0:17:12.960 --> 0:17:16.040 really just be out there, especially when everybody is stressed 0:17:16.040 --> 0:17:18.679 out on so many different levels. Um, Penny, thank you 0:17:18.720 --> 0:17:20.919 so much. Dr Penny wheel Er. She is president CEO 0:17:21.040 --> 0:17:23.879 at A Line of Health, joining us once again on 0:17:23.920 --> 0:17:27.959 the phone from Minnesota with a virus up update, excuse me, 0:17:28.280 --> 0:17:31.040 and just talking about the collaboration that they're doing with 0:17:31.200 --> 0:17:33.679 Johnson and Johnson as well and really targeting some of 0:17:33.720 --> 0:17:36.640 the specific zip codes, the specific you know, and most 0:17:36.720 --> 0:17:41.200 vulnerable populations. This is Bloomberg Business Week with Carol Messer 0:17:41.480 --> 0:17:44.360 from Bloomberg Radio. So we've talked about this. I feel 0:17:44.400 --> 0:17:47.120 like with the several business owners many of the restaurants space, 0:17:47.160 --> 0:17:51.960 including Danielle Bulu. It affects all kinds of industries, businesses, 0:17:52.000 --> 0:17:54.440 all sizes of businesses. It's really about how the big 0:17:54.480 --> 0:17:57.120 insurance companies have by and large refused to pay business 0:17:57.119 --> 0:18:00.399 interruption claims. This next story gets into it's gonna be 0:18:00.400 --> 0:18:02.720 featured in this week's issue of the magazine. Let's get 0:18:02.720 --> 0:18:07.040 into it. Bloomberg News Legal reporter David Yaffee Bellini joining 0:18:07.160 --> 0:18:09.399 us on the phone from Washington, d C. Along with 0:18:09.400 --> 0:18:12.400 Bloomberg business Week editor Joe Webber with us from Brooklyn. 0:18:12.440 --> 0:18:14.960 I feel, like Joe, the stakes here are enormous for 0:18:15.080 --> 0:18:19.000 everyone involved. Yeah, that's right. And when David came to 0:18:19.080 --> 0:18:23.800 us with this pitch, I think he really just immediately 0:18:23.920 --> 0:18:28.240 got our attention because we're about to see a case 0:18:28.400 --> 0:18:31.960 brought to a court by an attorney in New Orleans 0:18:32.440 --> 0:18:35.040 and it is basically the shot across the Bow, and 0:18:35.080 --> 0:18:37.280 I think all eyes are gonna be on it because 0:18:37.320 --> 0:18:41.920 it will be sort of it's basically business versus insurance 0:18:42.480 --> 0:18:46.199 and there's probably billions of dollars in this way in 0:18:46.320 --> 0:18:50.600 terms of how this one um sways effectively. UM and 0:18:50.760 --> 0:18:53.480 he happens to be an incredibly colorful character as well, 0:18:53.520 --> 0:18:56.600 so that made the story that much more enjoyable to read. 0:18:56.800 --> 0:19:00.399 It's a movie in the making. I have to say, exactly, David, 0:19:00.400 --> 0:19:03.480 who is this lawyer that we're talking about. He's a 0:19:03.520 --> 0:19:06.920 plaintiff lawyer in New Orleans named John hotel ing Um 0:19:07.000 --> 0:19:11.200 who has basically been ensuing insurance companies after major disasters 0:19:11.280 --> 0:19:14.560 since Hurricane Katrina. So he has a track record of 0:19:15.080 --> 0:19:19.800 representing businesses and coverage disputes, and this dispute over business 0:19:19.800 --> 0:19:22.480 interruption insurance is sort of the latest iteration of that. 0:19:24.720 --> 0:19:29.320 And how much money could we potentially be looking at here, 0:19:29.560 --> 0:19:31.960 like what what what's involved in this particular case and 0:19:31.960 --> 0:19:36.840 then what cases to come. So the amount of money 0:19:36.840 --> 0:19:40.720 in this particular case in New Orleans isn't entirely clear 0:19:40.800 --> 0:19:44.560 yet because the restaurant that he's representing hasn't actually filed 0:19:44.560 --> 0:19:48.560 a claim. Um, they're preemptively suing to kind of establish 0:19:48.640 --> 0:19:51.560 the legal precedent that insurers should be on the hook 0:19:51.760 --> 0:19:56.680 for damage caused by the pandemic. Um. But if you, 0:19:56.680 --> 0:19:59.919 you know, broaden this out to all the businesses across 0:20:00.040 --> 0:20:03.119 the country that have business interruption insurance and are suing 0:20:03.200 --> 0:20:06.959 to force their insurers to pay up. One industry estimate 0:20:07.000 --> 0:20:09.960 puts it in between fifty two billion dollars and two 0:20:10.160 --> 0:20:13.679 d and twenty three billion dollars a month that insurers 0:20:13.680 --> 0:20:16.600 would have to pay to cover the damage caused by 0:20:16.680 --> 0:20:19.520 the pandemic. And the argument that the insurance industry is 0:20:19.560 --> 0:20:22.480 making is that this would essentially wipe out their reserves. 0:20:22.520 --> 0:20:27.040 It's just not feasible for them to cover this many claims. 0:20:27.080 --> 0:20:28.879 I have to say. I mean, this kind of gets 0:20:28.920 --> 0:20:32.399 to like, why do you have insurance, right, and this 0:20:32.440 --> 0:20:36.480 whole idea of unprecedented when it comes to acts of 0:20:36.560 --> 0:20:40.199 either natural disasters or you know, just unexplained events, and 0:20:40.240 --> 0:20:43.320 I feel like that's going to be talked about a lot, David, 0:20:43.359 --> 0:20:47.800 when it comes to these cases. Yeah. Absolutely. I mean, 0:20:47.840 --> 0:20:50.480 the the other argument that the insurers keep making it 0:20:50.520 --> 0:20:54.320 that it's totally unprecedented because we've had catastrophes in the past, 0:20:54.359 --> 0:20:57.560 but they're they're isolated to a certain geographic region. There's 0:20:57.600 --> 0:21:00.440 a there's a hurricane in New Orleans, which is Stroy's 0:21:00.480 --> 0:21:03.199 businesses there, but at least it only affects, you know, 0:21:03.280 --> 0:21:06.600 one city or or a few cities. Um, Whereas the 0:21:06.640 --> 0:21:09.960 pandemic is like a hurricane happening in every city in 0:21:09.960 --> 0:21:12.520 the country at the same time, and every business in 0:21:12.520 --> 0:21:15.960 the country is disrupted in a major way, and it's 0:21:16.000 --> 0:21:19.560 just not possible for the insurers to respond. Um. The 0:21:19.600 --> 0:21:22.359