WEBVTT - US Deploys Marines to LA as Protests Spread to Cities 0:00:02.720 --> 0:00:10.600 Bloomberg Audio Studios, podcasts, radio news. You're listening to the 0:00:10.600 --> 0:00:14.560 Bloomberg Intelligence Podcast. Catch us live weekdays at ten am 0:00:14.640 --> 0:00:17.880 Eastern on Apple, Cocklay and Android Auto with the Bloomberg 0:00:17.920 --> 0:00:21.000 Business App. Listen on demand wherever you get your podcasts, 0:00:21.360 --> 0:00:23.120 or watch us live on YouTube. 0:00:23.560 --> 0:00:27.319 Let's go to LA. What's happening out there with the 0:00:29.160 --> 0:00:33.000 unrest out there in Los Angeles? Sowry McGregor, Bloomberg managing 0:00:33.120 --> 0:00:37.120 Eneger of the National Team joins us here. Sarah, can 0:00:37.120 --> 0:00:40.000 you give us the latest reporting from Los Angeles? Understand? 0:00:40.040 --> 0:00:43.360 President Trump has or authorized another two thousand troops in 0:00:43.400 --> 0:00:45.680 addition to seven hundred marines. 0:00:45.680 --> 0:00:49.640 What's the status, yes, so on the ground now we're 0:00:49.640 --> 0:00:52.800 told there were hundreds of National Guards yesterday. That's moved 0:00:52.880 --> 0:00:56.000 up closer to two thousand, with as you said, another 0:00:56.040 --> 0:00:59.120 two thousand authorized. On the ground, we are hearing that 0:00:59.160 --> 0:01:01.560 the seven hundred marine are in LA right now. We're 0:01:01.600 --> 0:01:04.920 not being told their positions, and from what we're seeing 0:01:05.000 --> 0:01:07.520 from local reporting or what our own reporters are seeing 0:01:07.520 --> 0:01:09.679 on the ground, they haven't actually been deployed yet, so 0:01:09.720 --> 0:01:12.480 we're not seeing we're not seeing them. But I think 0:01:12.480 --> 0:01:14.960 the key question that remains is sort of what are 0:01:15.000 --> 0:01:17.560 their marching orders, who who are they reporting to, is 0:01:17.600 --> 0:01:20.720 their coordination with local law enforcement, and sort of how 0:01:20.760 --> 0:01:22.839 will they react on the ground in terms of trying 0:01:22.840 --> 0:01:25.959 to control potential protesters. We did see a fourth night 0:01:26.080 --> 0:01:29.440 of a sort of localized protests in Los Angeles, and again, 0:01:29.440 --> 0:01:32.720 these aren't massive protests in some ways. It's you know, 0:01:32.920 --> 0:01:36.840 vandals looting shops and obviously interacting with security forces on 0:01:36.880 --> 0:01:40.000 the ground. But you know, these aren't aren't massive protests 0:01:40.080 --> 0:01:41.200 yet that we're seeing in LA. 0:01:41.800 --> 0:01:43.520 Well, that's exactly what I wanted you to paint a 0:01:43.560 --> 0:01:47.840 picture of because always when reporting, when you look at pictures, 0:01:47.840 --> 0:01:49.840 you're always going to look at the worst pictures, right, 0:01:49.880 --> 0:01:53.120 because that's what we do as a media culture. What's 0:01:53.160 --> 0:01:57.560 it really like, how peaceful? Where are the breakouts of stress? 0:01:57.760 --> 0:02:00.080 What does the unrest actually look like? 0:02:01.800 --> 0:02:05.320 Even before this weekend, there were peaceful protests in downtell 0:02:05.360 --> 0:02:08.640 at downtown LA other parts of the city, mostly people 0:02:08.680 --> 0:02:12.720 focused on you know, immigration, anti deportation protesters, So you know, 0:02:12.800 --> 0:02:15.400 this is something that is an unusual, people gathering to 0:02:15.480 --> 0:02:19.519 sort of protest ice raids or Trump's immigration agenda. Of course, 0:02:19.560 --> 0:02:21.600 the violence that we saw up take over the weekend 0:02:21.720 --> 0:02:25.440 after a spate of raids in the area is what 0:02:25.600 --> 0:02:28.920 sort of prompted this latest flare up. But that being said, 0:02:28.960 --> 0:02:31.200 you know what we're seeing right now, you know, both 0:02:31.200 --> 0:02:34.200 from our reporting and local local media, is that downtown La, 0:02:34.600 --> 0:02:37.480 parts of South La, Compton, Paramount, and now Santa Anna, 0:02:37.480 --> 0:02:39.880 which is an Orange County are seeing some of these 0:02:39.919 --> 0:02:42.480 these protests. So you know, we're in Century City, our 0:02:42.520 --> 0:02:45.280 office here at Bloomberg in the business district. You know 0:02:45.360 --> 0:02:48.480 that's you wouldn't know anything that is happening. It's miles 0:02:48.480 --> 0:02:51.720 away from some of these protests Santa Monica Beach areas, 0:02:51.760 --> 0:02:54.720 so you know it is it's kind of you know, 0:02:54.840 --> 0:02:56.600 shut down a highway over the weekend. Again, I don't 0:02:56.600 --> 0:03:00.880 want to downplay the severity in some respects, but much 0:03:00.880 --> 0:03:02.399 of the city, if you didn't turn on the news, 0:03:02.440 --> 0:03:03.680 would not know this was happening. 0:03:04.600 --> 0:03:07.360 What's been the response from government officials in the state 0:03:07.360 --> 0:03:09.400 of California. 0:03:09.680 --> 0:03:11.920 We saw quite the war of words between Newsom and 0:03:12.000 --> 0:03:15.600 Trump yesterday. We saw Trump suggesting, you know, he wouldn't 0:03:15.639 --> 0:03:19.200 mind if Newsom was arrested. Of course, there's no grounds. 0:03:19.000 --> 0:03:19.600 Grounds for that. 0:03:20.200 --> 0:03:22.840 But you know, kind of back and forth. Newsom posted 0:03:22.840 --> 0:03:25.000 photos of some of the National Guards sleeping on the 0:03:25.040 --> 0:03:27.440 floor with their backpacks, saying, you know, they're not being 0:03:27.480 --> 0:03:30.400 treated even properly. They're not getting food or a place 0:03:30.440 --> 0:03:32.600 to rest their heads. So, you know, there's a little 0:03:32.600 --> 0:03:35.000 bit of theatrics going on with the war of words 0:03:35.000 --> 0:03:37.119 playing out over social media, but at the same time, 0:03:37.120 --> 0:03:40.000 there's some real issues at play, and I think, you know, 0:03:40.040 --> 0:03:43.040 the escalation with the Marines yesterday is just another example 0:03:43.080 --> 0:03:46.160 of how, you know, action is being followed up by 0:03:46.160 --> 0:03:48.760 some of these words. And Trump in the past has 0:03:48.800 --> 0:03:51.640 threatened federal funding to the state of California. So that's 0:03:51.680 --> 0:03:53.200 one of the big things that we're watching for. At 0:03:53.240 --> 0:03:56.560 what point will this escalate, you know, potentially to more 0:03:56.600 --> 0:03:59.880 of a militarization, but also potentially funding cuts or other 0:04:00.560 --> 0:04:01.320 you know, other things. 0:04:01.480 --> 0:04:03.520 Okay, Sarah, thank you so much for joining us. Appreciate 0:04:03.600 --> 0:04:07.080 your reporting from Los Angeles. Sara McGregor, National Team Managing 0:04:07.120 --> 0:04:11.640 editor from Bloomberg News, joining us from La via zoom. 0:04:11.680 --> 0:04:15.400 You're listening to the Bloomberg Intelligence podcast. Catch us live 0:04:15.480 --> 0:04:18.560 weekdays at ten am Eastern on Apple, Coarclay and Android 0:04:18.560 --> 0:04:21.880 Auto with the Bloomberg Business App. Listen on demand wherever 0:04:21.920 --> 0:04:25.040 you get your podcasts, or watch us live on YouTube. 0:04:25.640 --> 0:04:28.919 We are covering all the news for your business, economics, finance, politics. 0:04:28.960 --> 0:04:30.920 There are a lens of our Bloomberg Intelligence folks. They 0:04:30.960 --> 0:04:33.200 cover two thousand companies and one hundred and thirty industries 0:04:33.520 --> 0:04:36.320 around the world. The news that broke around the closing 0:04:36.360 --> 0:04:40.120 bell yesterday was RFK Junior removing all members of CDC 0:04:40.320 --> 0:04:44.480 Vaccine Advisory Panel. So what does that actually mean for us, 0:04:44.640 --> 0:04:48.560 for the vaccinators and for countries and health and all 0:04:48.560 --> 0:04:50.680 the things. So we go to Sam Pazzelli, Bloomberg Intelligence, 0:04:50.720 --> 0:04:54.080 Director of Research for Global Industries and Senior Pharmaceuticals. So, 0:04:54.160 --> 0:04:56.320 if you get rid of a vaccine advisory panel, like 0:04:56.360 --> 0:04:57.520 what happens to vaccines? 0:04:59.200 --> 0:05:03.280 Yeah? So, Alex, this is Remember there's one group at 0:05:03.279 --> 0:05:07.080 the FDA who decides whether to approve a vaccine or not. 0:05:07.160 --> 0:05:09.800 So they do the or the analysis on the efficacy 0:05:09.839 --> 0:05:12.839 and the side effect, profile, risk benefit, et cetera. And 0:05:12.880 --> 0:05:16.000 then the ACIP, which normally meets three times a year, 0:05:16.520 --> 0:05:18.600 was the group that decides or is the group because 0:05:18.600 --> 0:05:21.600 it's not gone, it's just that these the current members 0:05:21.600 --> 0:05:24.760 have been put aside and new ones are going to 0:05:24.800 --> 0:05:28.000 be brought on. The ACIP decides how to do it, 0:05:28.040 --> 0:05:29.600 how to take it, for what, who should take it? 0:05:29.600 --> 0:05:32.160 Should it be, which is, you know what we've been 0:05:32.200 --> 0:05:36.080 having those above sixty four, those above fifty, et cetera, 0:05:36.080 --> 0:05:39.880 et cetera, with commobility without come mobility and how many times, 0:05:39.960 --> 0:05:43.520 et cetera. That's the kind of thing The ACIP reviewed 0:05:43.560 --> 0:05:45.800 and decided and gave guidance on that, and then insurance 0:05:45.800 --> 0:05:47.000 companies went on the back of that. 0:05:47.839 --> 0:05:51.040 So, Sam, when you replace this entire panel, I don't 0:05:51.040 --> 0:05:53.919 think it's ever been done before, But my senses, I 0:05:53.920 --> 0:05:57.159 don't know how quickly they repopulate this panel. But is 0:05:57.200 --> 0:06:00.479 there the risk that we see a slowdown maybe kind 0:06:00.480 --> 0:06:04.560 of the distribution of medicine's new end existing. 0:06:05.839 --> 0:06:09.640 Well. So I wonder whether RFK Junior, the head of 0:06:09.680 --> 0:06:13.200 the HHS, has already been thinking about this for the 0:06:13.200 --> 0:06:15.960 past six months or say six months since since he 0:06:16.160 --> 0:06:19.120 was confirmed, or even before that. It is possible that 0:06:19.480 --> 0:06:22.679 he has people in mind for those for those roles. 0:06:23.200 --> 0:06:27.520 It is also possible that and part of the reason 0:06:27.560 --> 0:06:31.359 for that thinking is that the June ACAP meeting hasn't 0:06:31.360 --> 0:06:35.440 been canceled. So I suspect in the next week or 0:06:35.520 --> 0:06:38.080 so we'll be hearing the announcement of the people who 0:06:38.120 --> 0:06:39.640 are going to be on the panel. Maybe we have 0:06:39.640 --> 0:06:42.000 to wait until that day itself. I think it's twenty 0:06:42.040 --> 0:06:44.920 sixth of June, if I'm not wrong, or there or thereabouts. 0:06:45.320 --> 0:06:48.600 And so it suggests to me that the individuals have 0:06:48.680 --> 0:06:52.679 been chosen. Now, the interesting thing is that you usually 0:06:52.720 --> 0:06:56.640 get these folks picked and vetted, and it takes some time. 0:06:57.160 --> 0:06:59.919 So that's why I'm wondering whether some decisions have all 0:07:00.279 --> 0:07:02.599 be made. I don't know who would have made the decisions. 0:07:02.640 --> 0:07:07.560 Maybe Secretary Kennedy has done it himself. I don't know 0:07:07.600 --> 0:07:10.120 the details, but a group will be back, And of 0:07:10.120 --> 0:07:12.920 course the question then is who are they, what type 0:07:12.920 --> 0:07:17.680 of people are they and are they all of the 0:07:17.760 --> 0:07:22.040 view that fits in with what Sexuary Kennedy has been 0:07:22.080 --> 0:07:24.600 thinking or what? We'll have to wait and see. 0:07:24.720 --> 0:07:26.680 Okay, so let's play that fun one of game. Sam. 0:07:26.800 --> 0:07:30.360 If those that do come on do subscribe to views 0:07:30.360 --> 0:07:34.880 over vaccines as Secretary Kennedy does, what does that wind 0:07:34.960 --> 0:07:37.240 up looking like for vaccine stocks? 0:07:39.040 --> 0:07:41.880 Yeah, as you can tell, I think moderna is not 0:07:41.960 --> 0:07:45.760 really particularly suffering today or biontic. I think the expectation 0:07:45.960 --> 0:07:48.200 is that this group will still be an expert group, 0:07:48.280 --> 0:07:51.160 will be able to decide how vaccines are administered and 0:07:51.200 --> 0:07:55.560 how they're used. And I don't think there'll be a 0:07:55.600 --> 0:08:01.280 particularly massive change to the already announced guidance and views 0:08:01.520 --> 0:08:04.560 i e. Going forward and want place sebo control trials, 0:08:04.840 --> 0:08:07.840 i e. We want these vaccines to be used in 0:08:07.920 --> 0:08:11.480 particularly COVID, for example, in people with come mobidities, and 0:08:11.560 --> 0:08:14.240 not just the entire population, et cetera, which has been 0:08:14.480 --> 0:08:17.480 what had ended up being happening anyway in reality. So 0:08:18.320 --> 0:08:21.080 I don't know whether there's going to be a massive shift. 0:08:21.440 --> 0:08:24.000 Then again, we wait and see who's on this panel. 0:08:24.200 --> 0:08:27.120 If they end up being non experts in the vaccine world, 0:08:27.320 --> 0:08:28.200 then you start worring. 0:08:28.760 --> 0:08:31.200 So, Sam, as you talk at intraditional investors around the world, 0:08:31.560 --> 0:08:34.400 what is their view towards biotech and big format given 0:08:34.480 --> 0:08:36.920 maybe some of this changing landscape. 0:08:38.240 --> 0:08:40.600 Yeah, so biotics had a bit of a reprieve recently, 0:08:40.640 --> 0:08:42.320 as you remember, a couple of weeks ago or so 0:08:42.559 --> 0:08:44.599 ten days ago, we talked about some M and A 0:08:44.760 --> 0:08:48.400 deals that came in some big licensing deal, et cetera. 0:08:48.480 --> 0:08:51.280 So that has helped sentiment a bit, and I think 0:08:51.800 --> 0:08:55.439 what the market is not ready for is a real 0:08:55.679 --> 0:08:59.600 comeback on the most favored nation or anything to do 0:08:59.760 --> 0:09:03.160 with the tariff some pharmaceuticals, because that's not gone away 0:09:03.840 --> 0:09:07.079 or the other tariff conversation does not include pharmaceuticals, right, 0:09:07.720 --> 0:09:10.559 So there is a risk that we've become a little 0:09:10.640 --> 0:09:14.400 bit complacent maybe with regards to the sector as a 0:09:14.400 --> 0:09:18.440 whole and what the administration would do, maybe because of 0:09:18.480 --> 0:09:22.679 the walk backs of some of the tariff talk that 0:09:22.679 --> 0:09:26.000 had happened with the other sectors, etc. I think there's 0:09:26.000 --> 0:09:30.400 probably some of that happening. So fingers crossed, nothing shocking 0:09:30.480 --> 0:09:33.800 or surprising comes out of either of those two fronts. 0:09:34.080 --> 0:09:36.359 Would we be thinking that there would be some exemptions 0:09:37.160 --> 0:09:40.400 for some components for some diseases. 0:09:41.640 --> 0:09:43.880 Well, I think if there is going to be a tariff, 0:09:43.920 --> 0:09:46.240 it has to be on the important drugs, right, because 0:09:46.360 --> 0:09:48.839 then if you're a farmer company that produces sixty seventy 0:09:48.840 --> 0:09:51.720 eighty percent of your product in the US already, then 0:09:51.760 --> 0:09:54.199 you shouldn't feel an impact from that and you might 0:09:54.240 --> 0:09:57.320 be able to then switch more manufacturing. But this is 0:09:57.320 --> 0:10:00.559 what I've said before, you can't say to farmer companies 0:10:00.760 --> 0:10:03.560 that the reason you should bring manufacturing here because this 0:10:03.800 --> 0:10:07.160 is your biggest profit center, and then at the same time, 0:10:07.559 --> 0:10:12.000 with MFN most favorite nation, try and erode that profit capability. 0:10:12.480 --> 0:10:16.080 That's what I'm worried is one of the guiding principles 0:10:16.120 --> 0:10:17.600 of the administration. 0:10:17.400 --> 0:10:19.360 Right, and that obviously has those repercussions. 0:10:19.400 --> 0:10:21.319 Hey, Sam, really great to check in with you. Sam 0:10:21.360 --> 0:10:24.440 Bazzelli a Bloomberg Intelligence. He's director of research as well 0:10:24.440 --> 0:10:25.720 senior pharmaceutical analysts. 0:10:25.720 --> 0:10:26.520 Thank you very much. 0:10:28.240 --> 0:10:31.920 You're listening to the Bloomberg Intelligence podcast. Catch us live 0:10:32.000 --> 0:10:35.400 weekdays at ten am Eastern on Applecarplay and Android Auto 0:10:35.480 --> 0:10:38.560 with the Bloomberg Business app. Listen on demand wherever you 0:10:38.600 --> 0:10:41.560 get your podcasts, or watch us live on YouTube. 0:10:41.760 --> 0:10:43.880 All right, taking a look at the markets, talk about believing, 0:10:44.040 --> 0:10:47.720 I mean it feels like a rally. I can say 0:10:47.760 --> 0:10:51.079 that over the last few days it's stealth, it's not aggressive. Volumes, 0:10:51.080 --> 0:10:53.439 a little mix, but we keep grinding our way higher. 0:10:53.720 --> 0:10:57.880 Joyang is head of index product Management at market Vector's Indexes, 0:10:57.960 --> 0:11:00.240 and she joins us now in our interactive of a 0:11:00.240 --> 0:11:03.320 broker studio right here, at Bloomberg. So what does this 0:11:03.400 --> 0:11:06.520 tell us is a strong conviction rally? Is this a 0:11:06.600 --> 0:11:09.160 grind higher until we get bad news rally? 0:11:09.160 --> 0:11:10.160 How would you describe it? 0:11:10.600 --> 0:11:13.520 I think we're all waiting for the headline bombs to drop, 0:11:13.600 --> 0:11:16.800 but I think investors should be cautious not to interpret 0:11:17.160 --> 0:11:22.080 a bounds with bottom and you know, taking a perspective 0:11:22.240 --> 0:11:26.839 year to date, develop markets, emerging markets are still up 0:11:26.960 --> 0:11:30.920 fifteen to twenty percent compared to two percent, and we 0:11:31.040 --> 0:11:32.920 have to look at the bond markets and what they're 0:11:32.960 --> 0:11:36.360 telling us. You know, the yield curve is deepening, So 0:11:36.559 --> 0:11:40.520 there's still concerns even if there are taf for agreements 0:11:40.720 --> 0:11:46.079 around inflationary prices, around the US debt, around kind of 0:11:46.120 --> 0:11:50.960 this backing away from US exceptionalism. So there's still a 0:11:51.000 --> 0:11:55.280 lot of cautious risks out there that we need to process, 0:11:55.360 --> 0:11:59.719 and we should have a broader perspective on a handshake 0:12:00.040 --> 0:12:06.040 versus enforceable agreements, and you know the long term implications 0:12:06.080 --> 0:12:10.240 of what's going on. So I think overall people probably 0:12:10.280 --> 0:12:13.880 are adjusting to this new normal, which is you know, 0:12:13.920 --> 0:12:17.439 we're going to have a lot of policy volatility as 0:12:17.480 --> 0:12:21.079 well as well as geo political risks, So investors are 0:12:21.120 --> 0:12:26.199 now stepping into you know, other alternative assets, and that's 0:12:26.200 --> 0:12:29.400 why we're seeing bitcoin, you know, pretty much increasing all 0:12:29.480 --> 0:12:33.120 time highs. We're seeing gold kind of like a stabilizing, 0:12:33.160 --> 0:12:36.800 but we're seeing alternative gold such as silver, platinum, they're 0:12:36.800 --> 0:12:38.640 reaching all time highs at the moment. 0:12:39.320 --> 0:12:43.440 So do I just buy ten your treasuries? Do I 0:12:43.520 --> 0:12:46.240 just buy gold? Do I that's my version of hiding out, 0:12:46.720 --> 0:12:50.439 or do I go to quality stocks have air quotes. 0:12:50.559 --> 0:12:55.480 Yeah, diversify away from you know, high tech growth stocks. 0:12:55.600 --> 0:12:57.920 Look at quality, look at value, look at gold, but 0:12:58.040 --> 0:13:01.280 look at you know, RelA to value to goal, which 0:13:01.360 --> 0:13:06.120 is the silver, the platinums. Look at where policy shifts 0:13:06.240 --> 0:13:14.400 will be more optimistic, which is around where earth metals around. 0:13:14.480 --> 0:13:17.599 You know, those are the things that governments are focused 0:13:17.600 --> 0:13:22.960 on and trying to create better regulation or more stimulus package. 0:13:23.040 --> 0:13:28.400 Look at defense, and we're seeing regulatory clarity around crypto 0:13:28.440 --> 0:13:31.480 markets also, so that's opening up a new acid class. 0:13:31.800 --> 0:13:36.520 So really think about diversifying away from just your core holdings. 0:13:36.840 --> 0:13:39.920 I take a look at the VIX grinding its way lower, 0:13:39.960 --> 0:13:42.080 but then you look at say the vics six months out, 0:13:42.240 --> 0:13:44.440 you compare the two and volatility still expected to be 0:13:44.520 --> 0:13:47.400 quite high on a relative basis six months out. 0:13:47.520 --> 0:13:49.080 What does that tell you? 0:13:49.320 --> 0:13:49.560 What? 0:13:50.000 --> 0:13:52.040 How does that change in asset allocation? 0:13:52.679 --> 0:13:55.080 I think people are really kind of the vix is 0:13:55.120 --> 0:13:59.280 reflecting people stepping away and just kind of waiting around. 0:14:00.240 --> 0:14:03.920 And we've seen kind of this breakdown and correlations between 0:14:04.160 --> 0:14:10.920 equities and bonds, and we're seeing this changing volatility pattern 0:14:10.960 --> 0:14:15.480 and crypto acids too. So Bitcoin has been stabilizing and 0:14:15.600 --> 0:14:19.840 volatility coming down in volatility, whereas some of these stock 0:14:20.240 --> 0:14:24.520 you know, whether you look at Nvidia or uh pallunteer, 0:14:24.920 --> 0:14:28.200 those volatilities are going up. So I think investors have 0:14:28.280 --> 0:14:32.200 to adjust to this new normal and to you know, 0:14:32.280 --> 0:14:35.480 think about holding different types of asset classes as well as, 0:14:35.520 --> 0:14:40.080 you know, diversifying away from kind of the traditional core 0:14:40.400 --> 0:14:41.120 equity bond. 0:14:41.720 --> 0:14:44.200 What do you make of bitcoin? What's your crypto kind 0:14:44.200 --> 0:14:46.360 of call? Your shop? How do you guys think about it? 0:14:46.840 --> 0:14:50.360 I mean crypto overall is you know, it's a very 0:14:50.400 --> 0:14:56.480 broad asset class. Bitcoin definitely is maturing with institutional focus, 0:14:56.600 --> 0:15:01.880 and we've also seen recently flows into THEEUM. So as investors, 0:15:02.920 --> 0:15:08.000 diverse investors come into this. You know, this ecosystem. You're 0:15:08.040 --> 0:15:11.960 going to see a change of what people are focusing on, 0:15:12.000 --> 0:15:15.800 which is less of the speculative volatility and more of 0:15:15.840 --> 0:15:19.560 the use case, whether it's store value or operating or 0:15:19.800 --> 0:15:24.080 layer one systems. You know, they are ultimately going to 0:15:24.240 --> 0:15:30.680 produce value and perform differently from equities and bonds that 0:15:30.760 --> 0:15:33.400 may be subject to more of the macro risks that 0:15:33.440 --> 0:15:34.400 we're seeing at play. 0:15:34.960 --> 0:15:38.760 Speaking of quickly Blackstone CEOs your sportsman was talking about 0:15:38.800 --> 0:15:43.840 investing in Europe. Is the x US trade kind of 0:15:43.840 --> 0:15:44.680 where you want to be? 0:15:45.600 --> 0:15:47.960 It's still a good trade given the. 0:15:47.960 --> 0:15:50.800 Valuation trade or investment, I guess so the better question. 0:15:51.400 --> 0:15:54.320 It's still you know, look at the relative evaluation. US 0:15:54.400 --> 0:15:59.360 is still very expensive. There's definitely rest of the world 0:15:59.520 --> 0:16:06.120 is push towards less reliance on US exceptionalism, you know, 0:16:06.360 --> 0:16:12.160 providing more stimulus into their own national industries and military defense. 0:16:12.600 --> 0:16:17.200 So that's going to increase growth opportunities abroad, and as 0:16:17.240 --> 0:16:23.880 we become I guess more inner or protect our own industry, 0:16:24.040 --> 0:16:28.840 you know, competition well broaden elsewhere. 0:16:29.720 --> 0:16:31.240 All right, Joey, thank you so much for joining us. 0:16:31.240 --> 0:16:31.960 Always appreciate you. 0:16:32.000 --> 0:16:35.240 Jo a young head of Index Product Management at Market 0:16:35.320 --> 0:16:37.720 Vector Indexes Bloomberg INTERACTI Brokers Studio. 0:16:39.520 --> 0:16:43.240 You're listening to the Bloomberg Intelligence Podcast. Catch us live 0:16:43.320 --> 0:16:46.360 weekdays at ten am Eastern on Apple Cocklay and Android 0:16:46.400 --> 0:16:49.720 Auto with the Bloomberg Business App. Listen on demand wherever 0:16:49.760 --> 0:16:52.880 you get your podcasts, or watch us live on YouTube. 0:16:53.240 --> 0:16:55.560 Happy Tuesday, everybody, Alex ste you here alongside Paul sw 0:16:55.560 --> 0:16:58.360 We need. This is Bloomberg Intelligence Radio. We're broadcasting to 0:16:58.520 --> 0:17:02.240 live from our Interactive Brokers. You're right here in midtown Manhattan. 0:17:02.480 --> 0:17:02.640 Well. 0:17:02.720 --> 0:17:04.240 June is Paride month. 0:17:04.320 --> 0:17:05.919 So over the next couple of weeks we're going to 0:17:05.960 --> 0:17:09.679 highlight segments on topics related to a quality. And today 0:17:09.720 --> 0:17:13.600 we're speaking with Chilean Tong CEO of National ACE, which 0:17:13.600 --> 0:17:17.000 stands for the National Asian Pacific Islander American Chamber of 0:17:17.000 --> 0:17:21.240 Commerce and Entrepreneurship. As she joins us now from Washington, DC, 0:17:21.840 --> 0:17:23.680 it's a pleasure to spend this. 0:17:23.680 --> 0:17:26.320 Time with you. Thank you so much for joining us. 0:17:26.400 --> 0:17:29.840 What has been the tariff effect on Asian small businesses 0:17:29.880 --> 0:17:33.080 so far? We heard from the nfi B that optimism increase, 0:17:33.160 --> 0:17:35.640 but the taxes are still a main concern. 0:17:37.240 --> 0:17:39.840 Well, Paul, Alex, thank you so much for you care 0:17:39.960 --> 0:17:44.560 about the Asian American business community issue. We know the 0:17:44.640 --> 0:17:48.640 trade the landscape can be very tricky and we acknowledge 0:17:48.920 --> 0:17:53.560 administration's efforts to negotiate a new trade agreements to deal 0:17:53.600 --> 0:17:56.480 with a fair trade practice and set a pass to 0:17:56.600 --> 0:18:02.439 open market ass for American export. Ever, with uncertainties around 0:18:02.480 --> 0:18:07.399 the trade deals, business of all sides feel the pressure. Recently, 0:18:07.960 --> 0:18:11.080 at the National AIDS Capital Health Day, we took about 0:18:11.160 --> 0:18:15.040 sixty small business owner to meet with forty congressional office. 0:18:15.640 --> 0:18:20.240 They all talk about how tariffs are affecting their business. 0:18:20.520 --> 0:18:25.320 They are very worried about uncertainty, rising costs, and cancelation. 0:18:26.000 --> 0:18:29.399 It is very important for them to share their experience 0:18:29.600 --> 0:18:34.639 with policymaker to ensure trade policy support their needs. I 0:18:34.640 --> 0:18:38.159 would like to share with you two stories from small 0:18:38.160 --> 0:18:43.679 business owner from both importing and exporting. Mister Ty's chili 0:18:43.720 --> 0:18:48.080 oil was popular after TikTok video had over one hundred 0:18:48.119 --> 0:18:51.880 and twenty five thousand views and new tariffs had made 0:18:51.920 --> 0:18:56.560 their key ingredients chili flicks from China about fifty six 0:18:56.680 --> 0:19:01.280 percent more expensive and the glass shared a bottles one's 0:19:01.520 --> 0:19:05.200 thirty four per cents each. Now it costs nearly about 0:19:05.280 --> 0:19:09.480 four times as much, and the owner Lucky Wing, said 0:19:09.920 --> 0:19:14.280 they picked a very specific bottle style on China and 0:19:14.440 --> 0:19:18.400 invested in it early on. Not with these press jumps, 0:19:18.440 --> 0:19:23.119 they cannot afford to use them anymore. Another story from exporterer. 0:19:23.280 --> 0:19:24.760 Yes, go ahead, Well, just what was. 0:19:24.680 --> 0:19:26.960 The response when you from some of the lawmakers when 0:19:27.000 --> 0:19:30.399 you went down to speak with them. Were they sympathetic 0:19:30.440 --> 0:19:32.520 to some of these small business owner concerns? 0:19:33.560 --> 0:19:33.720 Oh? 0:19:33.800 --> 0:19:37.720 Yes, absolutely. I think we talk with both Republican and 0:19:37.840 --> 0:19:41.200 Democrat member of Congress and that's what they say. Share 0:19:41.240 --> 0:19:44.760 the story, share the story with the administration, share the 0:19:45.720 --> 0:19:50.760 storyigs member of Congress, and have the stakeholder. We have 0:19:50.880 --> 0:19:54.280 about one hundred and thirty affiliate chambers partners or the country, 0:19:54.560 --> 0:19:58.480 so we encouraging they also encourage them to share the story. 0:19:58.600 --> 0:20:00.240 Let people know the reality. 0:20:01.359 --> 0:20:04.960 What are the barriers to federal support and to access 0:20:05.000 --> 0:20:07.679 to capital from Asian small business owners? 0:20:09.200 --> 0:20:12.760 Well, for access to capital part, I think this is 0:20:12.960 --> 0:20:17.560 a very very important. For the past few years since COVID, 0:20:17.640 --> 0:20:22.120 we always deal with access to capital. We had a survey. 0:20:22.840 --> 0:20:27.040 We had twenty twenty four restern funds for the past 0:20:27.600 --> 0:20:30.800 since twenty twenty one we have a giving about a 0:20:30.800 --> 0:20:35.080 ten million dollars grant. So for those applicants, what is 0:20:35.200 --> 0:20:39.240 seven percent of applicants share that their main source of 0:20:39.440 --> 0:20:43.120 capital for their business that come from personal funds and 0:20:43.240 --> 0:20:47.720 only twenty one percent indicate loans and credit from traditional 0:20:47.760 --> 0:20:52.280 financial institution. So therefore, when we talk to the federal 0:20:52.280 --> 0:20:55.720 agency and also the administration, we really want them to 0:20:55.840 --> 0:21:00.679 develop more a small business program and accessible funding and 0:21:00.840 --> 0:21:04.919 grant program for a small business owner for example, like 0:21:04.960 --> 0:21:08.199 a minority business defounder agency. They used to have a 0:21:08.320 --> 0:21:13.160 capital readiness program then able to share and the technical 0:21:13.200 --> 0:21:16.680 as system to support small business to get the funding. 0:21:17.119 --> 0:21:20.639 But now they are kind of you know, eliminating that, 0:21:21.080 --> 0:21:22.880 but hopefully they will get back soon. 0:21:24.359 --> 0:21:27.560 So what if you heard chilling from your small business 0:21:27.560 --> 0:21:31.919 owners about the labor market here with the illegal migration 0:21:32.000 --> 0:21:34.119 has effectively come to a halt in the southern border. 0:21:34.480 --> 0:21:38.560 Are they seeing that in their businesses the more difficult 0:21:38.560 --> 0:21:39.200 to hire people. 0:21:40.680 --> 0:21:45.359 Well, I think since COVID they had difficulty to hire people, 0:21:45.760 --> 0:21:50.720 especially restaurant owners. They're always short of workers. But we 0:21:50.920 --> 0:21:56.240 just feel Chinese Chinatown, like Chinatown small business owner, they 0:21:56.400 --> 0:22:01.159 always have a way to demonstrate incredible ras aliens and 0:22:01.440 --> 0:22:05.480 even for you're right, the label shortage and also other 0:22:05.560 --> 0:22:07.120 things really a big concern. 0:22:07.800 --> 0:22:09.639 Chilling, thank you so much for joining us. Really appreciate 0:22:09.640 --> 0:22:12.439 getting a few minutes of your time. Chilling Tongue, CEO 0:22:12.480 --> 0:22:15.479 of the National ACE, which is a national association, our 0:22:15.560 --> 0:22:20.359 national Asian Pacific Islander American Chamber of Commerce and Entrepreneurship. 0:22:20.400 --> 0:22:23.520 So the tariffs having impact on all businesses we hear 0:22:23.560 --> 0:22:26.800 not on the conference calls of all the corporations that 0:22:26.880 --> 0:22:30.040 we talk to all the time, but perhaps even more 0:22:30.080 --> 0:22:32.719 pronounced for the small business owner who doesn't may not 0:22:32.760 --> 0:22:35.439 have obviouly the financial resources or the flexibility in their 0:22:35.480 --> 0:22:39.280 business model to withstand higher taxes so or higher tariffs 0:22:39.280 --> 0:22:40.359 on some of their input. 0:22:40.560 --> 0:22:41.600 I mean even JM. 0:22:41.640 --> 0:22:44.280 Smunkers, which is clearly not a small business, is having 0:22:44.320 --> 0:22:47.560 a hard time with those increasing costs. Also increasing costs 0:22:47.560 --> 0:22:49.960 in its coffee business, which is going to hurt profit 0:22:49.960 --> 0:22:52.320 by about one dollar a share, So there is that 0:22:52.400 --> 0:22:52.760 as well. 0:22:53.359 --> 0:22:58.040 This is the Bloomberg Intelligence podcast, available on Apple, Spotify 0:22:58.240 --> 0:23:01.720 and anywhere else you get your podcast. Listen live each 0:23:01.720 --> 0:23:05.520