1
00:00:02,720 --> 00:00:10,600
Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the

2
00:00:10,600 --> 00:00:14,560
Speaker 1: Bloomberg Intelligence Podcast. Catch us live weekdays at ten am

3
00:00:14,640 --> 00:00:17,880
Speaker 1: Eastern on Apple, Cocklay and Android Auto with the Bloomberg

4
00:00:17,920 --> 00:00:21,000
Speaker 1: Business App. Listen on demand wherever you get your podcasts,

5
00:00:21,360 --> 00:00:23,120
Speaker 1: or watch us live on YouTube.

6
00:00:23,560 --> 00:00:27,319
Speaker 2: Let's go to LA. What's happening out there with the

7
00:00:29,160 --> 00:00:33,000
Speaker 2: unrest out there in Los Angeles? Sowry McGregor, Bloomberg managing

8
00:00:33,120 --> 00:00:37,120
Speaker 2: Eneger of the National Team joins us here. Sarah, can

9
00:00:37,120 --> 00:00:40,000
Speaker 2: you give us the latest reporting from Los Angeles? Understand?

10
00:00:40,040 --> 00:00:43,360
Speaker 2: President Trump has or authorized another two thousand troops in

11
00:00:43,400 --> 00:00:45,680
Speaker 2: addition to seven hundred marines.

12
00:00:45,680 --> 00:00:49,640
Speaker 3: What's the status, yes, so on the ground now we're

13
00:00:49,640 --> 00:00:52,800
Speaker 3: told there were hundreds of National Guards yesterday. That's moved

14
00:00:52,880 --> 00:00:56,000
Speaker 3: up closer to two thousand, with as you said, another

15
00:00:56,040 --> 00:00:59,120
Speaker 3: two thousand authorized. On the ground, we are hearing that

16
00:00:59,160 --> 00:01:01,560
Speaker 3: the seven hundred marine are in LA right now. We're

17
00:01:01,600 --> 00:01:04,920
Speaker 3: not being told their positions, and from what we're seeing

18
00:01:05,000 --> 00:01:07,520
Speaker 3: from local reporting or what our own reporters are seeing

19
00:01:07,520 --> 00:01:09,679
Speaker 3: on the ground, they haven't actually been deployed yet, so

20
00:01:09,720 --> 00:01:12,480
Speaker 3: we're not seeing we're not seeing them. But I think

21
00:01:12,480 --> 00:01:14,960
Speaker 3: the key question that remains is sort of what are

22
00:01:15,000 --> 00:01:17,560
Speaker 3: their marching orders, who who are they reporting to, is

23
00:01:17,600 --> 00:01:20,720
Speaker 3: their coordination with local law enforcement, and sort of how

24
00:01:20,760 --> 00:01:22,839
Speaker 3: will they react on the ground in terms of trying

25
00:01:22,840 --> 00:01:25,959
Speaker 3: to control potential protesters. We did see a fourth night

26
00:01:26,080 --> 00:01:29,440
Speaker 3: of a sort of localized protests in Los Angeles, and again,

27
00:01:29,440 --> 00:01:32,720
Speaker 3: these aren't massive protests in some ways. It's you know,

28
00:01:32,920 --> 00:01:36,840
Speaker 3: vandals looting shops and obviously interacting with security forces on

29
00:01:36,880 --> 00:01:40,000
Speaker 3: the ground. But you know, these aren't aren't massive protests

30
00:01:40,080 --> 00:01:41,200
Speaker 3: yet that we're seeing in LA.

31
00:01:41,800 --> 00:01:43,520
Speaker 4: Well, that's exactly what I wanted you to paint a

32
00:01:43,560 --> 00:01:47,840
Speaker 4: picture of because always when reporting, when you look at pictures,

33
00:01:47,840 --> 00:01:49,840
Speaker 4: you're always going to look at the worst pictures, right,

34
00:01:49,880 --> 00:01:53,120
Speaker 4: because that's what we do as a media culture. What's

35
00:01:53,160 --> 00:01:57,560
Speaker 4: it really like, how peaceful? Where are the breakouts of stress?

36
00:01:57,760 --> 00:02:00,080
Speaker 4: What does the unrest actually look like?

37
00:02:01,800 --> 00:02:05,320
Speaker 3: Even before this weekend, there were peaceful protests in downtell

38
00:02:05,360 --> 00:02:08,640
Speaker 3: at downtown LA other parts of the city, mostly people

39
00:02:08,680 --> 00:02:12,720
Speaker 3: focused on you know, immigration, anti deportation protesters, So you know,

40
00:02:12,800 --> 00:02:15,400
Speaker 3: this is something that is an unusual, people gathering to

41
00:02:15,480 --> 00:02:19,519
Speaker 3: sort of protest ice raids or Trump's immigration agenda. Of course,

42
00:02:19,560 --> 00:02:21,600
Speaker 3: the violence that we saw up take over the weekend

43
00:02:21,720 --> 00:02:25,440
Speaker 3: after a spate of raids in the area is what

44
00:02:25,600 --> 00:02:28,920
Speaker 3: sort of prompted this latest flare up. But that being said,

45
00:02:28,960 --> 00:02:31,200
Speaker 3: you know what we're seeing right now, you know, both

46
00:02:31,200 --> 00:02:34,200
Speaker 3: from our reporting and local local media, is that downtown La,

47
00:02:34,600 --> 00:02:37,480
Speaker 3: parts of South La, Compton, Paramount, and now Santa Anna,

48
00:02:37,480 --> 00:02:39,880
Speaker 3: which is an Orange County are seeing some of these

49
00:02:39,919 --> 00:02:42,480
Speaker 3: these protests. So you know, we're in Century City, our

50
00:02:42,520 --> 00:02:45,280
Speaker 3: office here at Bloomberg in the business district. You know

51
00:02:45,360 --> 00:02:48,480
Speaker 3: that's you wouldn't know anything that is happening. It's miles

52
00:02:48,480 --> 00:02:51,720
Speaker 3: away from some of these protests Santa Monica Beach areas,

53
00:02:51,760 --> 00:02:54,720
Speaker 3: so you know it is it's kind of you know,

54
00:02:54,840 --> 00:02:56,600
Speaker 3: shut down a highway over the weekend. Again, I don't

55
00:02:56,600 --> 00:03:00,880
Speaker 3: want to downplay the severity in some respects, but much

56
00:03:00,880 --> 00:03:02,399
Speaker 3: of the city, if you didn't turn on the news,

57
00:03:02,440 --> 00:03:03,680
Speaker 3: would not know this was happening.

58
00:03:04,600 --> 00:03:07,360
Speaker 2: What's been the response from government officials in the state

59
00:03:07,360 --> 00:03:09,400
Speaker 2: of California.

60
00:03:09,680 --> 00:03:11,920
Speaker 3: We saw quite the war of words between Newsom and

61
00:03:12,000 --> 00:03:15,600
Speaker 3: Trump yesterday. We saw Trump suggesting, you know, he wouldn't

62
00:03:15,639 --> 00:03:19,200
Speaker 3: mind if Newsom was arrested. Of course, there's no grounds.

63
00:03:19,000 --> 00:03:19,600
Speaker 5: Grounds for that.

64
00:03:20,200 --> 00:03:22,840
Speaker 3: But you know, kind of back and forth. Newsom posted

65
00:03:22,840 --> 00:03:25,000
Speaker 3: photos of some of the National Guards sleeping on the

66
00:03:25,040 --> 00:03:27,440
Speaker 3: floor with their backpacks, saying, you know, they're not being

67
00:03:27,480 --> 00:03:30,400
Speaker 3: treated even properly. They're not getting food or a place

68
00:03:30,440 --> 00:03:32,600
Speaker 3: to rest their heads. So, you know, there's a little

69
00:03:32,600 --> 00:03:35,000
Speaker 3: bit of theatrics going on with the war of words

70
00:03:35,000 --> 00:03:37,119
Speaker 3: playing out over social media, but at the same time,

71
00:03:37,120 --> 00:03:40,000
Speaker 3: there's some real issues at play, and I think, you know,

72
00:03:40,040 --> 00:03:43,040
Speaker 3: the escalation with the Marines yesterday is just another example

73
00:03:43,080 --> 00:03:46,160
Speaker 3: of how, you know, action is being followed up by

74
00:03:46,160 --> 00:03:48,760
Speaker 3: some of these words. And Trump in the past has

75
00:03:48,800 --> 00:03:51,640
Speaker 3: threatened federal funding to the state of California. So that's

76
00:03:51,680 --> 00:03:53,200
Speaker 3: one of the big things that we're watching for. At

77
00:03:53,240 --> 00:03:56,560
Speaker 3: what point will this escalate, you know, potentially to more

78
00:03:56,600 --> 00:03:59,880
Speaker 3: of a militarization, but also potentially funding cuts or other

79
00:04:00,560 --> 00:04:01,320
Speaker 3: you know, other things.

80
00:04:01,480 --> 00:04:03,520
Speaker 2: Okay, Sarah, thank you so much for joining us. Appreciate

81
00:04:03,600 --> 00:04:07,080
Speaker 2: your reporting from Los Angeles. Sara McGregor, National Team Managing

82
00:04:07,120 --> 00:04:11,640
Speaker 2: editor from Bloomberg News, joining us from La via zoom.

83
00:04:11,680 --> 00:04:15,400
Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live

84
00:04:15,480 --> 00:04:18,560
Speaker 1: weekdays at ten am Eastern on Apple, Coarclay and Android

85
00:04:18,560 --> 00:04:21,880
Speaker 1: Auto with the Bloomberg Business App. Listen on demand wherever

86
00:04:21,920 --> 00:04:25,040
Speaker 1: you get your podcasts, or watch us live on YouTube.

87
00:04:25,640 --> 00:04:28,919
Speaker 4: We are covering all the news for your business, economics, finance, politics.

88
00:04:28,960 --> 00:04:30,920
Speaker 4: There are a lens of our Bloomberg Intelligence folks. They

89
00:04:30,960 --> 00:04:33,200
Speaker 4: cover two thousand companies and one hundred and thirty industries

90
00:04:33,520 --> 00:04:36,320
Speaker 4: around the world. The news that broke around the closing

91
00:04:36,360 --> 00:04:40,120
Speaker 4: bell yesterday was RFK Junior removing all members of CDC

92
00:04:40,320 --> 00:04:44,480
Speaker 4: Vaccine Advisory Panel. So what does that actually mean for us,

93
00:04:44,640 --> 00:04:48,560
Speaker 4: for the vaccinators and for countries and health and all

94
00:04:48,560 --> 00:04:50,680
Speaker 4: the things. So we go to Sam Pazzelli, Bloomberg Intelligence,

95
00:04:50,720 --> 00:04:54,080
Speaker 4: Director of Research for Global Industries and Senior Pharmaceuticals. So,

96
00:04:54,160 --> 00:04:56,320
Speaker 4: if you get rid of a vaccine advisory panel, like

97
00:04:56,360 --> 00:04:57,520
Speaker 4: what happens to vaccines?

98
00:04:59,200 --> 00:05:03,280
Speaker 6: Yeah? So, Alex, this is Remember there's one group at

99
00:05:03,279 --> 00:05:07,080
Speaker 6: the FDA who decides whether to approve a vaccine or not.

100
00:05:07,160 --> 00:05:09,800
Speaker 6: So they do the or the analysis on the efficacy

101
00:05:09,839 --> 00:05:12,839
Speaker 6: and the side effect, profile, risk benefit, et cetera. And

102
00:05:12,880 --> 00:05:16,000
Speaker 6: then the ACIP, which normally meets three times a year,

103
00:05:16,520 --> 00:05:18,600
Speaker 6: was the group that decides or is the group because

104
00:05:18,600 --> 00:05:21,600
Speaker 6: it's not gone, it's just that these the current members

105
00:05:21,600 --> 00:05:24,760
Speaker 6: have been put aside and new ones are going to

106
00:05:24,800 --> 00:05:28,000
Speaker 6: be brought on. The ACIP decides how to do it,

107
00:05:28,040 --> 00:05:29,600
Speaker 6: how to take it, for what, who should take it?

108
00:05:29,600 --> 00:05:32,160
Speaker 6: Should it be, which is, you know what we've been

109
00:05:32,200 --> 00:05:36,080
Speaker 6: having those above sixty four, those above fifty, et cetera,

110
00:05:36,080 --> 00:05:39,880
Speaker 6: et cetera, with commobility without come mobility and how many times,

111
00:05:39,960 --> 00:05:43,520
Speaker 6: et cetera. That's the kind of thing The ACIP reviewed

112
00:05:43,560 --> 00:05:45,800
Speaker 6: and decided and gave guidance on that, and then insurance

113
00:05:45,800 --> 00:05:47,000
Speaker 6: companies went on the back of that.

114
00:05:47,839 --> 00:05:51,040
Speaker 2: So, Sam, when you replace this entire panel, I don't

115
00:05:51,040 --> 00:05:53,919
Speaker 2: think it's ever been done before, But my senses, I

116
00:05:53,920 --> 00:05:57,159
Speaker 2: don't know how quickly they repopulate this panel. But is

117
00:05:57,200 --> 00:06:00,479
Speaker 2: there the risk that we see a slowdown maybe kind

118
00:06:00,480 --> 00:06:04,560
Speaker 2: of the distribution of medicine's new end existing.

119
00:06:05,839 --> 00:06:09,640
Speaker 6: Well. So I wonder whether RFK Junior, the head of

120
00:06:09,680 --> 00:06:13,200
Speaker 6: the HHS, has already been thinking about this for the

121
00:06:13,200 --> 00:06:15,960
Speaker 6: past six months or say six months since since he

122
00:06:16,160 --> 00:06:19,120
Speaker 6: was confirmed, or even before that. It is possible that

123
00:06:19,480 --> 00:06:22,679
Speaker 6: he has people in mind for those for those roles.

124
00:06:23,200 --> 00:06:27,520
Speaker 6: It is also possible that and part of the reason

125
00:06:27,560 --> 00:06:31,359
Speaker 6: for that thinking is that the June ACAP meeting hasn't

126
00:06:31,360 --> 00:06:35,440
Speaker 6: been canceled. So I suspect in the next week or

127
00:06:35,520 --> 00:06:38,080
Speaker 6: so we'll be hearing the announcement of the people who

128
00:06:38,120 --> 00:06:39,640
Speaker 6: are going to be on the panel. Maybe we have

129
00:06:39,640 --> 00:06:42,000
Speaker 6: to wait until that day itself. I think it's twenty

130
00:06:42,040 --> 00:06:44,920
Speaker 6: sixth of June, if I'm not wrong, or there or thereabouts.

131
00:06:45,320 --> 00:06:48,600
Speaker 6: And so it suggests to me that the individuals have

132
00:06:48,680 --> 00:06:52,679
Speaker 6: been chosen. Now, the interesting thing is that you usually

133
00:06:52,720 --> 00:06:56,640
Speaker 6: get these folks picked and vetted, and it takes some time.

134
00:06:57,160 --> 00:06:59,919
Speaker 6: So that's why I'm wondering whether some decisions have all

135
00:07:00,279 --> 00:07:02,599
Speaker 6: be made. I don't know who would have made the decisions.

136
00:07:02,640 --> 00:07:07,560
Speaker 6: Maybe Secretary Kennedy has done it himself. I don't know

137
00:07:07,600 --> 00:07:10,120
Speaker 6: the details, but a group will be back, And of

138
00:07:10,120 --> 00:07:12,920
Speaker 6: course the question then is who are they, what type

139
00:07:12,920 --> 00:07:17,680
Speaker 6: of people are they and are they all of the

140
00:07:17,760 --> 00:07:22,040
Speaker 6: view that fits in with what Sexuary Kennedy has been

141
00:07:22,080 --> 00:07:24,600
Speaker 6: thinking or what? We'll have to wait and see.

142
00:07:24,720 --> 00:07:26,680
Speaker 5: Okay, so let's play that fun one of game. Sam.

143
00:07:26,800 --> 00:07:30,360
Speaker 4: If those that do come on do subscribe to views

144
00:07:30,360 --> 00:07:34,880
Speaker 4: over vaccines as Secretary Kennedy does, what does that wind

145
00:07:34,960 --> 00:07:37,240
Speaker 4: up looking like for vaccine stocks?

146
00:07:39,040 --> 00:07:41,880
Speaker 6: Yeah, as you can tell, I think moderna is not

147
00:07:41,960 --> 00:07:45,760
Speaker 6: really particularly suffering today or biontic. I think the expectation

148
00:07:45,960 --> 00:07:48,200
Speaker 6: is that this group will still be an expert group,

149
00:07:48,280 --> 00:07:51,160
Speaker 6: will be able to decide how vaccines are administered and

150
00:07:51,200 --> 00:07:55,560
Speaker 6: how they're used. And I don't think there'll be a

151
00:07:55,600 --> 00:08:01,280
Speaker 6: particularly massive change to the already announced guidance and views

152
00:08:01,520 --> 00:08:04,560
Speaker 6: i e. Going forward and want place sebo control trials,

153
00:08:04,840 --> 00:08:07,840
Speaker 6: i e. We want these vaccines to be used in

154
00:08:07,920 --> 00:08:11,480
Speaker 6: particularly COVID, for example, in people with come mobidities, and

155
00:08:11,560 --> 00:08:14,240
Speaker 6: not just the entire population, et cetera, which has been

156
00:08:14,480 --> 00:08:17,480
Speaker 6: what had ended up being happening anyway in reality. So

157
00:08:18,320 --> 00:08:21,080
Speaker 6: I don't know whether there's going to be a massive shift.

158
00:08:21,440 --> 00:08:24,000
Speaker 6: Then again, we wait and see who's on this panel.

159
00:08:24,200 --> 00:08:27,120
Speaker 6: If they end up being non experts in the vaccine world,

160
00:08:27,320 --> 00:08:28,200
Speaker 6: then you start worring.

161
00:08:28,760 --> 00:08:31,200
Speaker 2: So, Sam, as you talk at intraditional investors around the world,

162
00:08:31,560 --> 00:08:34,400
Speaker 2: what is their view towards biotech and big format given

163
00:08:34,480 --> 00:08:36,920
Speaker 2: maybe some of this changing landscape.

164
00:08:38,240 --> 00:08:40,600
Speaker 6: Yeah, so biotics had a bit of a reprieve recently,

165
00:08:40,640 --> 00:08:42,320
Speaker 6: as you remember, a couple of weeks ago or so

166
00:08:42,559 --> 00:08:44,599
Speaker 6: ten days ago, we talked about some M and A

167
00:08:44,760 --> 00:08:48,400
Speaker 6: deals that came in some big licensing deal, et cetera.

168
00:08:48,480 --> 00:08:51,280
Speaker 6: So that has helped sentiment a bit, and I think

169
00:08:51,800 --> 00:08:55,439
Speaker 6: what the market is not ready for is a real

170
00:08:55,679 --> 00:08:59,600
Speaker 6: comeback on the most favored nation or anything to do

171
00:08:59,760 --> 00:09:03,160
Speaker 6: with the tariff some pharmaceuticals, because that's not gone away

172
00:09:03,840 --> 00:09:07,079
Speaker 6: or the other tariff conversation does not include pharmaceuticals, right,

173
00:09:07,720 --> 00:09:10,559
Speaker 6: So there is a risk that we've become a little

174
00:09:10,640 --> 00:09:14,400
Speaker 6: bit complacent maybe with regards to the sector as a

175
00:09:14,400 --> 00:09:18,440
Speaker 6: whole and what the administration would do, maybe because of

176
00:09:18,480 --> 00:09:22,679
Speaker 6: the walk backs of some of the tariff talk that

177
00:09:22,679 --> 00:09:26,000
Speaker 6: had happened with the other sectors, etc. I think there's

178
00:09:26,000 --> 00:09:30,400
Speaker 6: probably some of that happening. So fingers crossed, nothing shocking

179
00:09:30,480 --> 00:09:33,800
Speaker 6: or surprising comes out of either of those two fronts.

180
00:09:34,080 --> 00:09:36,359
Speaker 4: Would we be thinking that there would be some exemptions

181
00:09:37,160 --> 00:09:40,400
Speaker 4: for some components for some diseases.

182
00:09:41,640 --> 00:09:43,880
Speaker 6: Well, I think if there is going to be a tariff,

183
00:09:43,920 --> 00:09:46,240
Speaker 6: it has to be on the important drugs, right, because

184
00:09:46,360 --> 00:09:48,839
Speaker 6: then if you're a farmer company that produces sixty seventy

185
00:09:48,840 --> 00:09:51,720
Speaker 6: eighty percent of your product in the US already, then

186
00:09:51,760 --> 00:09:54,199
Speaker 6: you shouldn't feel an impact from that and you might

187
00:09:54,240 --> 00:09:57,320
Speaker 6: be able to then switch more manufacturing. But this is

188
00:09:57,320 --> 00:10:00,559
Speaker 6: what I've said before, you can't say to farmer companies

189
00:10:00,760 --> 00:10:03,560
Speaker 6: that the reason you should bring manufacturing here because this

190
00:10:03,800 --> 00:10:07,160
Speaker 6: is your biggest profit center, and then at the same time,

191
00:10:07,559 --> 00:10:12,000
Speaker 6: with MFN most favorite nation, try and erode that profit capability.

192
00:10:12,480 --> 00:10:16,080
Speaker 6: That's what I'm worried is one of the guiding principles

193
00:10:16,120 --> 00:10:17,600
Speaker 6: of the administration.

194
00:10:17,400 --> 00:10:19,360
Speaker 5: Right, and that obviously has those repercussions.

195
00:10:19,400 --> 00:10:21,319
Speaker 4: Hey, Sam, really great to check in with you. Sam

196
00:10:21,360 --> 00:10:24,440
Speaker 4: Bazzelli a Bloomberg Intelligence. He's director of research as well

197
00:10:24,440 --> 00:10:25,720
Speaker 4: senior pharmaceutical analysts.

198
00:10:25,720 --> 00:10:26,520
Speaker 5: Thank you very much.

199
00:10:28,240 --> 00:10:31,920
Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live

200
00:10:32,000 --> 00:10:35,400
Speaker 1: weekdays at ten am Eastern on Applecarplay and Android Auto

201
00:10:35,480 --> 00:10:38,560
Speaker 1: with the Bloomberg Business app. Listen on demand wherever you

202
00:10:38,600 --> 00:10:41,560
Speaker 1: get your podcasts, or watch us live on YouTube.

203
00:10:41,760 --> 00:10:43,880
Speaker 4: All right, taking a look at the markets, talk about believing,

204
00:10:44,040 --> 00:10:47,720
Speaker 4: I mean it feels like a rally. I can say

205
00:10:47,760 --> 00:10:51,079
Speaker 4: that over the last few days it's stealth, it's not aggressive. Volumes,

206
00:10:51,080 --> 00:10:53,439
Speaker 4: a little mix, but we keep grinding our way higher.

207
00:10:53,720 --> 00:10:57,880
Speaker 4: Joyang is head of index product Management at market Vector's Indexes,

208
00:10:57,960 --> 00:11:00,240
Speaker 4: and she joins us now in our interactive of a

209
00:11:00,240 --> 00:11:03,320
Speaker 4: broker studio right here, at Bloomberg. So what does this

210
00:11:03,400 --> 00:11:06,520
Speaker 4: tell us is a strong conviction rally? Is this a

211
00:11:06,600 --> 00:11:09,160
Speaker 4: grind higher until we get bad news rally?

212
00:11:09,160 --> 00:11:10,160
Speaker 5: How would you describe it?

213
00:11:10,600 --> 00:11:13,520
Speaker 7: I think we're all waiting for the headline bombs to drop,

214
00:11:13,600 --> 00:11:16,800
Speaker 7: but I think investors should be cautious not to interpret

215
00:11:17,160 --> 00:11:22,080
Speaker 7: a bounds with bottom and you know, taking a perspective

216
00:11:22,240 --> 00:11:26,839
Speaker 7: year to date, develop markets, emerging markets are still up

217
00:11:26,960 --> 00:11:30,920
Speaker 7: fifteen to twenty percent compared to two percent, and we

218
00:11:31,040 --> 00:11:32,920
Speaker 7: have to look at the bond markets and what they're

219
00:11:32,960 --> 00:11:36,360
Speaker 7: telling us. You know, the yield curve is deepening, So

220
00:11:36,559 --> 00:11:40,520
Speaker 7: there's still concerns even if there are taf for agreements

221
00:11:40,720 --> 00:11:46,079
Speaker 7: around inflationary prices, around the US debt, around kind of

222
00:11:46,120 --> 00:11:50,960
Speaker 7: this backing away from US exceptionalism. So there's still a

223
00:11:51,000 --> 00:11:55,280
Speaker 7: lot of cautious risks out there that we need to process,

224
00:11:55,360 --> 00:11:59,719
Speaker 7: and we should have a broader perspective on a handshake

225
00:12:00,040 --> 00:12:06,040
Speaker 7: versus enforceable agreements, and you know the long term implications

226
00:12:06,080 --> 00:12:10,240
Speaker 7: of what's going on. So I think overall people probably

227
00:12:10,280 --> 00:12:13,880
Speaker 7: are adjusting to this new normal, which is you know,

228
00:12:13,920 --> 00:12:17,439
Speaker 7: we're going to have a lot of policy volatility as

229
00:12:17,480 --> 00:12:21,079
Speaker 7: well as well as geo political risks, So investors are

230
00:12:21,120 --> 00:12:26,199
Speaker 7: now stepping into you know, other alternative assets, and that's

231
00:12:26,200 --> 00:12:29,400
Speaker 7: why we're seeing bitcoin, you know, pretty much increasing all

232
00:12:29,480 --> 00:12:33,120
Speaker 7: time highs. We're seeing gold kind of like a stabilizing,

233
00:12:33,160 --> 00:12:36,800
Speaker 7: but we're seeing alternative gold such as silver, platinum, they're

234
00:12:36,800 --> 00:12:38,640
Speaker 7: reaching all time highs at the moment.

235
00:12:39,320 --> 00:12:43,440
Speaker 2: So do I just buy ten your treasuries? Do I

236
00:12:43,520 --> 00:12:46,240
Speaker 2: just buy gold? Do I that's my version of hiding out,

237
00:12:46,720 --> 00:12:50,439
Speaker 2: or do I go to quality stocks have air quotes.

238
00:12:50,559 --> 00:12:55,480
Speaker 7: Yeah, diversify away from you know, high tech growth stocks.

239
00:12:55,600 --> 00:12:57,920
Speaker 7: Look at quality, look at value, look at gold, but

240
00:12:58,040 --> 00:13:01,280
Speaker 7: look at you know, RelA to value to goal, which

241
00:13:01,360 --> 00:13:06,120
Speaker 7: is the silver, the platinums. Look at where policy shifts

242
00:13:06,240 --> 00:13:14,400
Speaker 7: will be more optimistic, which is around where earth metals around.

243
00:13:14,480 --> 00:13:17,599
Speaker 7: You know, those are the things that governments are focused

244
00:13:17,600 --> 00:13:22,960
Speaker 7: on and trying to create better regulation or more stimulus package.

245
00:13:23,040 --> 00:13:28,400
Speaker 7: Look at defense, and we're seeing regulatory clarity around crypto

246
00:13:28,440 --> 00:13:31,480
Speaker 7: markets also, so that's opening up a new acid class.

247
00:13:31,800 --> 00:13:36,520
Speaker 7: So really think about diversifying away from just your core holdings.

248
00:13:36,840 --> 00:13:39,920
Speaker 4: I take a look at the VIX grinding its way lower,

249
00:13:39,960 --> 00:13:42,080
Speaker 4: but then you look at say the vics six months out,

250
00:13:42,240 --> 00:13:44,440
Speaker 4: you compare the two and volatility still expected to be

251
00:13:44,520 --> 00:13:47,400
Speaker 4: quite high on a relative basis six months out.

252
00:13:47,520 --> 00:13:49,080
Speaker 5: What does that tell you?

253
00:13:49,320 --> 00:13:49,560
Speaker 6: What?

254
00:13:50,000 --> 00:13:52,040
Speaker 5: How does that change in asset allocation?

255
00:13:52,679 --> 00:13:55,080
Speaker 7: I think people are really kind of the vix is

256
00:13:55,120 --> 00:13:59,280
Speaker 7: reflecting people stepping away and just kind of waiting around.

257
00:14:00,240 --> 00:14:03,920
Speaker 7: And we've seen kind of this breakdown and correlations between

258
00:14:04,160 --> 00:14:10,920
Speaker 7: equities and bonds, and we're seeing this changing volatility pattern

259
00:14:10,960 --> 00:14:15,480
Speaker 7: and crypto acids too. So Bitcoin has been stabilizing and

260
00:14:15,600 --> 00:14:19,840
Speaker 7: volatility coming down in volatility, whereas some of these stock

261
00:14:20,240 --> 00:14:24,520
Speaker 7: you know, whether you look at Nvidia or uh pallunteer,

262
00:14:24,920 --> 00:14:28,200
Speaker 7: those volatilities are going up. So I think investors have

263
00:14:28,280 --> 00:14:32,200
Speaker 7: to adjust to this new normal and to you know,

264
00:14:32,280 --> 00:14:35,480
Speaker 7: think about holding different types of asset classes as well as,

265
00:14:35,520 --> 00:14:40,080
Speaker 7: you know, diversifying away from kind of the traditional core

266
00:14:40,400 --> 00:14:41,120
Speaker 7: equity bond.

267
00:14:41,720 --> 00:14:44,200
Speaker 2: What do you make of bitcoin? What's your crypto kind

268
00:14:44,200 --> 00:14:46,360
Speaker 2: of call? Your shop? How do you guys think about it?

269
00:14:46,840 --> 00:14:50,360
Speaker 7: I mean crypto overall is you know, it's a very

270
00:14:50,400 --> 00:14:56,480
Speaker 7: broad asset class. Bitcoin definitely is maturing with institutional focus,

271
00:14:56,600 --> 00:15:01,880
Speaker 7: and we've also seen recently flows into THEEUM. So as investors,

272
00:15:02,920 --> 00:15:08,000
Speaker 7: diverse investors come into this. You know, this ecosystem. You're

273
00:15:08,040 --> 00:15:11,960
Speaker 7: going to see a change of what people are focusing on,

274
00:15:12,000 --> 00:15:15,800
Speaker 7: which is less of the speculative volatility and more of

275
00:15:15,840 --> 00:15:19,560
Speaker 7: the use case, whether it's store value or operating or

276
00:15:19,800 --> 00:15:24,080
Speaker 7: layer one systems. You know, they are ultimately going to

277
00:15:24,240 --> 00:15:30,680
Speaker 7: produce value and perform differently from equities and bonds that

278
00:15:30,760 --> 00:15:33,400
Speaker 7: may be subject to more of the macro risks that

279
00:15:33,440 --> 00:15:34,400
Speaker 7: we're seeing at play.

280
00:15:34,960 --> 00:15:38,760
Speaker 4: Speaking of quickly Blackstone CEOs your sportsman was talking about

281
00:15:38,800 --> 00:15:43,840
Speaker 4: investing in Europe. Is the x US trade kind of

282
00:15:43,840 --> 00:15:44,680
Speaker 4: where you want to be?

283
00:15:45,600 --> 00:15:47,960
Speaker 7: It's still a good trade given the.

284
00:15:47,960 --> 00:15:50,800
Speaker 5: Valuation trade or investment, I guess so the better question.

285
00:15:51,400 --> 00:15:54,320
Speaker 7: It's still you know, look at the relative evaluation. US

286
00:15:54,400 --> 00:15:59,360
Speaker 7: is still very expensive. There's definitely rest of the world

287
00:15:59,520 --> 00:16:06,120
Speaker 7: is push towards less reliance on US exceptionalism, you know,

288
00:16:06,360 --> 00:16:12,160
Speaker 7: providing more stimulus into their own national industries and military defense.

289
00:16:12,600 --> 00:16:17,200
Speaker 7: So that's going to increase growth opportunities abroad, and as

290
00:16:17,240 --> 00:16:23,880
Speaker 7: we become I guess more inner or protect our own industry,

291
00:16:24,040 --> 00:16:28,840
Speaker 7: you know, competition well broaden elsewhere.

292
00:16:29,720 --> 00:16:31,240
Speaker 2: All right, Joey, thank you so much for joining us.

293
00:16:31,240 --> 00:16:31,960
Speaker 5: Always appreciate you.

294
00:16:32,000 --> 00:16:35,240
Speaker 2: Jo a young head of Index Product Management at Market

295
00:16:35,320 --> 00:16:37,720
Speaker 2: Vector Indexes Bloomberg INTERACTI Brokers Studio.

296
00:16:39,520 --> 00:16:43,240
Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live

297
00:16:43,320 --> 00:16:46,360
Speaker 1: weekdays at ten am Eastern on Apple Cocklay and Android

298
00:16:46,400 --> 00:16:49,720
Speaker 1: Auto with the Bloomberg Business App. Listen on demand wherever

299
00:16:49,760 --> 00:16:52,880
Speaker 1: you get your podcasts, or watch us live on YouTube.

300
00:16:53,240 --> 00:16:55,560
Speaker 4: Happy Tuesday, everybody, Alex ste you here alongside Paul sw

301
00:16:55,560 --> 00:16:58,360
Speaker 4: We need. This is Bloomberg Intelligence Radio. We're broadcasting to

302
00:16:58,520 --> 00:17:02,240
Speaker 4: live from our Interactive Brokers. You're right here in midtown Manhattan.

303
00:17:02,480 --> 00:17:02,640
Speaker 6: Well.

304
00:17:02,720 --> 00:17:04,240
Speaker 5: June is Paride month.

305
00:17:04,320 --> 00:17:05,919
Speaker 4: So over the next couple of weeks we're going to

306
00:17:05,960 --> 00:17:09,679
Speaker 4: highlight segments on topics related to a quality. And today

307
00:17:09,720 --> 00:17:13,600
Speaker 4: we're speaking with Chilean Tong CEO of National ACE, which

308
00:17:13,600 --> 00:17:17,000
Speaker 4: stands for the National Asian Pacific Islander American Chamber of

309
00:17:17,000 --> 00:17:21,240
Speaker 4: Commerce and Entrepreneurship. As she joins us now from Washington, DC,

310
00:17:21,840 --> 00:17:23,680
Speaker 4: it's a pleasure to spend this.

311
00:17:23,680 --> 00:17:26,320
Speaker 5: Time with you. Thank you so much for joining us.

312
00:17:26,400 --> 00:17:29,840
Speaker 4: What has been the tariff effect on Asian small businesses

313
00:17:29,880 --> 00:17:33,080
Speaker 4: so far? We heard from the nfi B that optimism increase,

314
00:17:33,160 --> 00:17:35,640
Speaker 4: but the taxes are still a main concern.

315
00:17:37,240 --> 00:17:39,840
Speaker 8: Well, Paul, Alex, thank you so much for you care

316
00:17:39,960 --> 00:17:44,560
Speaker 8: about the Asian American business community issue. We know the

317
00:17:44,640 --> 00:17:48,640
Speaker 8: trade the landscape can be very tricky and we acknowledge

318
00:17:48,920 --> 00:17:53,560
Speaker 8: administration's efforts to negotiate a new trade agreements to deal

319
00:17:53,600 --> 00:17:56,480
Speaker 8: with a fair trade practice and set a pass to

320
00:17:56,600 --> 00:18:02,439
Speaker 8: open market ass for American export. Ever, with uncertainties around

321
00:18:02,480 --> 00:18:07,399
Speaker 8: the trade deals, business of all sides feel the pressure. Recently,

322
00:18:07,960 --> 00:18:11,080
Speaker 8: at the National AIDS Capital Health Day, we took about

323
00:18:11,160 --> 00:18:15,040
Speaker 8: sixty small business owner to meet with forty congressional office.

324
00:18:15,640 --> 00:18:20,240
Speaker 8: They all talk about how tariffs are affecting their business.

325
00:18:20,520 --> 00:18:25,320
Speaker 8: They are very worried about uncertainty, rising costs, and cancelation.

326
00:18:26,000 --> 00:18:29,399
Speaker 8: It is very important for them to share their experience

327
00:18:29,600 --> 00:18:34,639
Speaker 8: with policymaker to ensure trade policy support their needs. I

328
00:18:34,640 --> 00:18:38,159
Speaker 8: would like to share with you two stories from small

329
00:18:38,160 --> 00:18:43,679
Speaker 8: business owner from both importing and exporting. Mister Ty's chili

330
00:18:43,720 --> 00:18:48,080
Speaker 8: oil was popular after TikTok video had over one hundred

331
00:18:48,119 --> 00:18:51,880
Speaker 8: and twenty five thousand views and new tariffs had made

332
00:18:51,920 --> 00:18:56,560
Speaker 8: their key ingredients chili flicks from China about fifty six

333
00:18:56,680 --> 00:19:01,280
Speaker 8: percent more expensive and the glass shared a bottles one's

334
00:19:01,520 --> 00:19:05,200
Speaker 8: thirty four per cents each. Now it costs nearly about

335
00:19:05,280 --> 00:19:09,480
Speaker 8: four times as much, and the owner Lucky Wing, said

336
00:19:09,920 --> 00:19:14,280
Speaker 8: they picked a very specific bottle style on China and

337
00:19:14,440 --> 00:19:18,400
Speaker 8: invested in it early on. Not with these press jumps,

338
00:19:18,440 --> 00:19:23,119
Speaker 8: they cannot afford to use them anymore. Another story from exporterer.

339
00:19:23,280 --> 00:19:24,760
Speaker 5: Yes, go ahead, Well, just what was.

340
00:19:24,680 --> 00:19:26,960
Speaker 2: The response when you from some of the lawmakers when

341
00:19:27,000 --> 00:19:30,399
Speaker 2: you went down to speak with them. Were they sympathetic

342
00:19:30,440 --> 00:19:32,520
Speaker 2: to some of these small business owner concerns?

343
00:19:33,560 --> 00:19:33,720
Speaker 7: Oh?

344
00:19:33,800 --> 00:19:37,720
Speaker 8: Yes, absolutely. I think we talk with both Republican and

345
00:19:37,840 --> 00:19:41,200
Speaker 8: Democrat member of Congress and that's what they say. Share

346
00:19:41,240 --> 00:19:44,760
Speaker 8: the story, share the story with the administration, share the

347
00:19:45,720 --> 00:19:50,760
Speaker 8: storyigs member of Congress, and have the stakeholder. We have

348
00:19:50,880 --> 00:19:54,280
Speaker 8: about one hundred and thirty affiliate chambers partners or the country,

349
00:19:54,560 --> 00:19:58,480
Speaker 8: so we encouraging they also encourage them to share the story.

350
00:19:58,600 --> 00:20:00,240
Speaker 8: Let people know the reality.

351
00:20:01,359 --> 00:20:04,960
Speaker 4: What are the barriers to federal support and to access

352
00:20:05,000 --> 00:20:07,679
Speaker 4: to capital from Asian small business owners?

353
00:20:09,200 --> 00:20:12,760
Speaker 8: Well, for access to capital part, I think this is

354
00:20:12,960 --> 00:20:17,560
Speaker 8: a very very important. For the past few years since COVID,

355
00:20:17,640 --> 00:20:22,120
Speaker 8: we always deal with access to capital. We had a survey.

356
00:20:22,840 --> 00:20:27,040
Speaker 8: We had twenty twenty four restern funds for the past

357
00:20:27,600 --> 00:20:30,800
Speaker 8: since twenty twenty one we have a giving about a

358
00:20:30,800 --> 00:20:35,080
Speaker 8: ten million dollars grant. So for those applicants, what is

359
00:20:35,200 --> 00:20:39,240
Speaker 8: seven percent of applicants share that their main source of

360
00:20:39,440 --> 00:20:43,120
Speaker 8: capital for their business that come from personal funds and

361
00:20:43,240 --> 00:20:47,720
Speaker 8: only twenty one percent indicate loans and credit from traditional

362
00:20:47,760 --> 00:20:52,280
Speaker 8: financial institution. So therefore, when we talk to the federal

363
00:20:52,280 --> 00:20:55,720
Speaker 8: agency and also the administration, we really want them to

364
00:20:55,840 --> 00:21:00,679
Speaker 8: develop more a small business program and accessible funding and

365
00:21:00,840 --> 00:21:04,919
Speaker 8: grant program for a small business owner for example, like

366
00:21:04,960 --> 00:21:08,199
Speaker 8: a minority business defounder agency. They used to have a

367
00:21:08,320 --> 00:21:13,160
Speaker 8: capital readiness program then able to share and the technical

368
00:21:13,200 --> 00:21:16,680
Speaker 8: as system to support small business to get the funding.

369
00:21:17,119 --> 00:21:20,639
Speaker 8: But now they are kind of you know, eliminating that,

370
00:21:21,080 --> 00:21:22,880
Speaker 8: but hopefully they will get back soon.

371
00:21:24,359 --> 00:21:27,560
Speaker 2: So what if you heard chilling from your small business

372
00:21:27,560 --> 00:21:31,919
Speaker 2: owners about the labor market here with the illegal migration

373
00:21:32,000 --> 00:21:34,119
Speaker 2: has effectively come to a halt in the southern border.

374
00:21:34,480 --> 00:21:38,560
Speaker 2: Are they seeing that in their businesses the more difficult

375
00:21:38,560 --> 00:21:39,200
Speaker 2: to hire people.

376
00:21:40,680 --> 00:21:45,359
Speaker 8: Well, I think since COVID they had difficulty to hire people,

377
00:21:45,760 --> 00:21:50,720
Speaker 8: especially restaurant owners. They're always short of workers. But we

378
00:21:50,920 --> 00:21:56,240
Speaker 8: just feel Chinese Chinatown, like Chinatown small business owner, they

379
00:21:56,400 --> 00:22:01,159
Speaker 8: always have a way to demonstrate incredible ras aliens and

380
00:22:01,440 --> 00:22:05,480
Speaker 8: even for you're right, the label shortage and also other

381
00:22:05,560 --> 00:22:07,120
Speaker 8: things really a big concern.

382
00:22:07,800 --> 00:22:09,639
Speaker 2: Chilling, thank you so much for joining us. Really appreciate

383
00:22:09,640 --> 00:22:12,439
Speaker 2: getting a few minutes of your time. Chilling Tongue, CEO

384
00:22:12,480 --> 00:22:15,479
Speaker 2: of the National ACE, which is a national association, our

385
00:22:15,560 --> 00:22:20,359
Speaker 2: national Asian Pacific Islander American Chamber of Commerce and Entrepreneurship.

386
00:22:20,400 --> 00:22:23,520
Speaker 2: So the tariffs having impact on all businesses we hear

387
00:22:23,560 --> 00:22:26,800
Speaker 2: not on the conference calls of all the corporations that

388
00:22:26,880 --> 00:22:30,040
Speaker 2: we talk to all the time, but perhaps even more

389
00:22:30,080 --> 00:22:32,719
Speaker 2: pronounced for the small business owner who doesn't may not

390
00:22:32,760 --> 00:22:35,439
Speaker 2: have obviouly the financial resources or the flexibility in their

391
00:22:35,480 --> 00:22:39,280
Speaker 2: business model to withstand higher taxes so or higher tariffs

392
00:22:39,280 --> 00:22:40,359
Speaker 2: on some of their input.

393
00:22:40,560 --> 00:22:41,600
Speaker 5: I mean even JM.

394
00:22:41,640 --> 00:22:44,280
Speaker 4: Smunkers, which is clearly not a small business, is having

395
00:22:44,320 --> 00:22:47,560
Speaker 4: a hard time with those increasing costs. Also increasing costs

396
00:22:47,560 --> 00:22:49,960
Speaker 4: in its coffee business, which is going to hurt profit

397
00:22:49,960 --> 00:22:52,320
Speaker 4: by about one dollar a share, So there is that

398
00:22:52,400 --> 00:22:52,760
Speaker 4: as well.

399
00:22:53,359 --> 00:22:58,040
Speaker 1: This is the Bloomberg Intelligence podcast, available on Apple, Spotify

400
00:22:58,240 --> 00:23:01,720
Speaker 1: and anywhere else you get your podcast. Listen live each

401
00:23:01,720 --> 00:23:05,520
Speaker 1: weekday ten am to noon Eastern on bloomberg dot com,

402
00:23:05,600 --> 00:23:09,160
Speaker 1: the iHeartRadio app tune In, and the Bloomberg Business app.

403
00:23:09,560 --> 00:23:12,520
Speaker 1: You can also watch us live every weekday on YouTube

404
00:23:12,880 --> 00:23:15,160
Speaker 1: and always on the Bloomberg terminal