WEBVTT - Government Stimulus to Offset Coronavirus Eco Impact 0:00:00.440 --> 0:00:02.960 This is Bloomberg Business Week. I'm Carol Masser and I'm 0:00:03.040 --> 0:00:05.520 Jason Kelly. We're here every day bringing you the latest 0:00:05.519 --> 0:00:09.800 news from the world's of business and finance, plus technology, politics, economics, 0:00:09.840 --> 0:00:13.480 all harnessing the power of Bloomberg Business Week reporters and editors, 0:00:13.480 --> 0:00:16.639 not to mention our hundred journalists and analysts more than 0:00:16.680 --> 0:00:19.280 a hundred and twenty countries. You can download Bloomberg Business 0:00:19.320 --> 0:00:22.200 Week on iTunes, SoundCloud, or Bloomberg dot com. You can 0:00:22.200 --> 0:00:24.520 also listen to our radio show weekdays at two pm 0:00:24.520 --> 0:00:28.320 Eastern only on Bloomberg Radio. Let's set the business week agenda. 0:00:28.400 --> 0:00:31.159 First off, Carol. Gina Martin Adams is with us on 0:00:31.200 --> 0:00:33.160 the phone from New Jersey. She, of course, is chief 0:00:33.159 --> 0:00:37.040 equity strategist for Blueberg Intelligence, and there with you in Manhattan. 0:00:37.080 --> 0:00:40.239 Dave Wilson, Stocks Editor, author of the Stock and the 0:00:40.320 --> 0:00:43.040 Chart of the Date. Dave quickly set the tone for 0:00:43.159 --> 0:00:46.680 us in this up trade today. Well, it's been a 0:00:46.720 --> 0:00:49.800 bit of back and forth that there's definitely a move 0:00:49.920 --> 0:00:52.239 higher at this point. And you know one group that 0:00:52.280 --> 0:00:55.120 really jumps out for me as utility stocks, because we've 0:00:55.160 --> 0:00:58.200 heard all these comparisons to two thousand and eight, two 0:00:58.240 --> 0:01:01.200 thousand nine, you know, the last bear market. Given the 0:01:01.200 --> 0:01:04.080 extent of the drop we've seen in stocks. More broadly, 0:01:04.640 --> 0:01:07.280 the S and People hundred Utilities index is headed for 0:01:07.360 --> 0:01:10.880 its biggest gains. It's October two thousand and eight, right 0:01:11.000 --> 0:01:15.319 smack in the middle of the previous bear market. And 0:01:15.360 --> 0:01:18.000 what's interesting if you look at the index, you actually 0:01:18.040 --> 0:01:20.520 saw that's dividendul because these are the kind of shares 0:01:20.560 --> 0:01:23.679 you buy for their payouts got close to four percent 0:01:24.480 --> 0:01:28.800 as stocks tumbled yesterday, and that's the highest dividendual on 0:01:28.880 --> 0:01:32.400 this group in four years. So it's clear that people 0:01:32.480 --> 0:01:36.640 are stepping in willing to go with a relatively defensive 0:01:36.680 --> 0:01:38.920 area of the market. And that's true more broadly as well. 0:01:39.240 --> 0:01:41.600 I mean, you're seeing, you know, the kind of defensive groups, 0:01:41.640 --> 0:01:43.360 the ones that tend to do well no matter how 0:01:43.400 --> 0:01:46.039 the economy is doing so leading the way here. But 0:01:46.120 --> 0:01:49.000 then you look at you know these stocks, Dominion Energy, 0:01:49.400 --> 0:01:54.200 you know, Utility in Virginia up seventeen percent, CMS Energy 0:01:54.520 --> 0:01:57.880 up almost seventeen for the Southern Company Big across the 0:01:57.880 --> 0:02:00.680 South up almost sixteen percent. I mean, the biggest gains 0:02:00.680 --> 0:02:03.120 in the S and P five hundred are dominated by 0:02:03.120 --> 0:02:06.360 these utilities, and you just don't see these moves like 0:02:06.600 --> 0:02:09.720 ever except in times of stress. All right, said Gen 0:02:09.840 --> 0:02:12.160 Martin Adams. Come on in on the trade today and 0:02:12.200 --> 0:02:15.560 what you're seeing and what you think is either promising 0:02:15.639 --> 0:02:19.000 or worries them. Um, So I'm kind of a data 0:02:19.200 --> 0:02:23.079 on this point. You don't usually see utilities lead a 0:02:23.240 --> 0:02:26.280 sustained rally in the equity market. As a matter of fact, 0:02:26.360 --> 0:02:29.600 utilities leadership is usually a signal of weakness, not a 0:02:29.639 --> 0:02:33.480 signal of strength, particularly with bond deals as low as 0:02:33.520 --> 0:02:36.400 they are and valuations for this group relative to the 0:02:36.440 --> 0:02:40.000 index as high as they are. Evaluation multiple three utilities 0:02:40.040 --> 0:02:42.519 are at their cycle peak already relative to the SMP 0:02:42.560 --> 0:02:45.520 five have only gotten more expensive and relative terms over 0:02:45.560 --> 0:02:48.040 the course of the last month or two. So I 0:02:48.080 --> 0:02:50.000 would say that it's a little bit of a sign 0:02:50.040 --> 0:02:52.000 of weakness. That's said, The fact that you do have 0:02:52.080 --> 0:02:57.760 broader participation and you have groups including technology, healthcare, financials, 0:02:57.800 --> 0:03:01.959 consumer staples, basically every group in the sp accept energy 0:03:02.040 --> 0:03:06.480 is up is somewhat encouraging. I think usually at real 0:03:06.520 --> 0:03:09.440 bottoms you see rotation into laggards, and we really haven't 0:03:09.480 --> 0:03:12.280 seen that yet. That said, I do think this is 0:03:12.320 --> 0:03:15.400 a process, right. Bottoms are typically a process. We had 0:03:15.639 --> 0:03:19.840 very clear capitulation days last Thursday as well as yesterday, 0:03:20.360 --> 0:03:24.400 setting the stage for potentially still a volatile market, but 0:03:24.520 --> 0:03:26.840 maybe more of a bottoming process to start to emerge 0:03:26.840 --> 0:03:29.480 over the next couple of weeks. Um it remains to 0:03:29.520 --> 0:03:32.880 be seen whether we actually get that real skyrocketing sort 0:03:32.919 --> 0:03:36.520 of v bottom which would require rotation, or more of 0:03:36.560 --> 0:03:40.760 a choppy bottoming process, which is our view and so Gina, 0:03:40.960 --> 0:03:43.280 is volatility just something we're gonna have to live with 0:03:43.440 --> 0:03:47.280 for the near term until we see a real clear 0:03:47.360 --> 0:03:51.600 picture of this virus playing out medically. I think so. 0:03:52.000 --> 0:03:54.080 I don't know that we're necessarily going to have to 0:03:54.080 --> 0:03:57.160 see volatility at yesterday's levels. I mean, yesterday the VIX 0:03:57.240 --> 0:04:00.000 index reached obviously a new a new high, even high 0:04:00.120 --> 0:04:02.800 er than at any point during the two nine crisis. 0:04:02.920 --> 0:04:06.920 So it seems that that was probably our peak volatility point. 0:04:06.960 --> 0:04:09.520 But if you look at how traders are positioning, the 0:04:09.600 --> 0:04:12.240 spread between the two months and three month volatility contract 0:04:12.280 --> 0:04:15.960 is also at a record level, suggesting that traders are 0:04:15.960 --> 0:04:20.320 positioned for volatility to remain very very high. I do 0:04:20.520 --> 0:04:23.640 think that just the information vacuum that we're in right 0:04:23.680 --> 0:04:26.480 now creates a lot of frayed nerves, a lot of 0:04:26.600 --> 0:04:29.240 concern on the part of investors with respect to where 0:04:29.240 --> 0:04:32.000 we're headed, what the real value of shares is in 0:04:32.040 --> 0:04:36.320 an environment where you can't predict earnings. It's tough, you know. 0:04:36.400 --> 0:04:40.360 That's said when you have massive volatility spikes likely had yesterday. 0:04:41.040 --> 0:04:43.440 Most of the time, the result is pretty positive for 0:04:43.520 --> 0:04:45.719 investors willing to take on risk in those kinds of 0:04:45.800 --> 0:04:48.840 uncertain periods over the course of twelve months, and I 0:04:48.880 --> 0:04:51.239 think that's why we're likely to see pretty choppy price 0:04:51.279 --> 0:04:54.960 action as investors continually realized the fact that when everyone's 0:04:55.200 --> 0:04:57.720 else is so fearful, you should probably be starting to 0:04:57.720 --> 0:05:00.560 get a little greedy. All right, We're gona leave there, 0:05:00.600 --> 0:05:04.480 Gina Martin Adams, thank you so much, chief equity strategist 0:05:04.520 --> 0:05:07.840 for Bloomberg Intelligence. And of course, Dave Wilson stock c 0:05:08.120 --> 0:05:09.760 will be back with us later on with his chart 0:05:09.800 --> 0:05:12.600 in Stock of the Day. You're listening to Bloomberg Business 0:05:12.640 --> 0:05:16.640 Week with Carol Messer and Jason Kelly on Bloomberg Radio 0:05:16.920 --> 0:05:19.240 speaking about trying to get their heads around the situation 0:05:19.279 --> 0:05:22.200 and certainly being very, very busy is the medical community. 0:05:22.400 --> 0:05:24.520 New York Governor Andrew Cuomo saying earlier today that New 0:05:24.600 --> 0:05:26.599 York State will be in desperate need of hospital beds 0:05:26.640 --> 0:05:29.640 and ventilator soon and may need more than twelve times 0:05:29.720 --> 0:05:34.000 existing intensive care capacity. Let's talk about the medical community 0:05:34.040 --> 0:05:36.479 how they're dealing with the virus. Dr Ian LUs Beder 0:05:36.600 --> 0:05:39.600 is back with us, clinical Associate Professor of Medicine at 0:05:39.760 --> 0:05:42.719 n y U Landgown Medical Center on the phone in 0:05:42.839 --> 0:05:45.200 New York. Dr LUs Beder, Great to have you back 0:05:45.240 --> 0:05:48.440 with us. Um, how are you guys coping with this? 0:05:49.640 --> 0:05:53.080 Thanks for having me Carol and Jason. Um, you know 0:05:53.480 --> 0:05:56.640 everyone is coping. Uh, it's sort of amazing. I just 0:05:56.680 --> 0:06:00.240 came back from the hospital doing uh urching cases. All 0:06:00.320 --> 0:06:05.000 elective cases are canceled, people are being rescheduled really to 0:06:05.160 --> 0:06:09.599 conserve equipment, and streets are deserted. You know, there's definitely 0:06:09.760 --> 0:06:12.800 people calling in a panic, and so I think it's 0:06:12.800 --> 0:06:17.360 important to understand that the individual risk at this point 0:06:17.520 --> 0:06:21.960 is not very high of of death. Certainly, they're probably 0:06:21.960 --> 0:06:25.760 a number of patients people who are who are have 0:06:25.920 --> 0:06:29.839 an asymptomatic infection, but in terms of the medical community. 0:06:29.880 --> 0:06:34.200 Really to rationale is to um be careful with equipment. 0:06:34.240 --> 0:06:36.480 You certainly don't want out of want to run out 0:06:36.480 --> 0:06:39.880 of food in the middle of an ocean voyage. And 0:06:40.080 --> 0:06:43.560 all interactions are really done with what are called ppees 0:06:43.680 --> 0:06:47.440 or personal protective equipment. So all the masks are disposable, 0:06:47.440 --> 0:06:52.839 the masks, the gowns, the gloves, you know, every it's 0:06:52.960 --> 0:06:56.800 very UM intensive whenever you interact with a patient, and 0:06:56.880 --> 0:07:00.720 so the concern is really sort of conserving those uh 0:07:00.800 --> 0:07:03.960 if there's really a surge in the need, and that's 0:07:03.960 --> 0:07:10.400 where the rationale for for canceling elective surgeries and so forth. Right, 0:07:10.480 --> 0:07:13.360 So in you know, we've talked with you at extensively 0:07:13.960 --> 0:07:16.560 over a long period of time, but more recently about 0:07:16.600 --> 0:07:20.640 this virus being on the front lines. How worried are 0:07:20.720 --> 0:07:27.240 you about the system individual hospitals, especially in heavily populated 0:07:27.280 --> 0:07:31.680 areas like New York City, essentially getting overwhelmed exactly. Well, 0:07:31.680 --> 0:07:36.120 at this point, fortunately, everything is going smoothly. We've just 0:07:36.200 --> 0:07:40.160 started testing. So for example, Dana n y U, it's 0:07:40.160 --> 0:07:43.960 about a hundred patients a day being tested. UM no 0:07:44.120 --> 0:07:48.400 results back. That takes certainly a few days, and I 0:07:48.440 --> 0:07:52.160 think there is a bit of anxiety. I think most 0:07:52.160 --> 0:07:56.680 physicians are you know, common comfortable, UM. I think patients 0:07:56.720 --> 0:08:01.440 are are certainly concerned, UM. And I think certainly we 0:08:01.520 --> 0:08:04.920 have enough equipment now to handle things. But you're exactly 0:08:05.040 --> 0:08:09.200 right with the population you know, ten fifteen, you know, 0:08:09.280 --> 0:08:11.320 depending on how far you want to draw the circle, 0:08:11.720 --> 0:08:16.600 millions of people, even if a small percent become symptomatic 0:08:16.920 --> 0:08:21.520 or more critically ill. There are contingency plans not only 0:08:21.560 --> 0:08:24.560 for the intensive cary units, but for surgical areas and 0:08:24.600 --> 0:08:27.840 step down units. So I think the governor is right 0:08:27.920 --> 0:08:30.040 in trying to prepare. The last thing you want to 0:08:30.040 --> 0:08:32.360 do is do this at the last minute. But at 0:08:32.360 --> 0:08:35.680 this point everything seems really quite under control. The issue is, 0:08:36.160 --> 0:08:38.760 you know, conserving all this equipment. It's ironic that many 0:08:38.800 --> 0:08:43.280 of these masks are made in Wuhan, China, so supplies 0:08:43.320 --> 0:08:47.720 are somewhat limited. You can't just um open the shelf 0:08:47.880 --> 0:08:50.920 time and time again and expect it supplies to be there. 0:08:51.200 --> 0:08:53.640 So that's really sort of the rationale to you know, 0:08:53.760 --> 0:08:57.120 rational these carefully not have people come in who really 0:08:57.200 --> 0:09:00.600 are symptomatic. You have to have certain criteria to get tested. 0:09:01.040 --> 0:09:02.840 Certainly at n YU you have to have a fever, 0:09:03.040 --> 0:09:07.239 respiratory symptoms. You know, they worried. Well, we're trying to reassure, 0:09:07.679 --> 0:09:10.080 right and I think that's what I think the President's 0:09:10.080 --> 0:09:13.840 team at this point are trying to convey to Americans. 0:09:13.960 --> 0:09:15.880 What are the signs to look at that say you 0:09:15.920 --> 0:09:17.880 really need to have a test at this point, because 0:09:17.920 --> 0:09:21.160 we don't have a test for everyone right now. Is 0:09:21.200 --> 0:09:24.080 there a point, a peak point? I know Dr Fauci 0:09:24.120 --> 0:09:25.880 said it's not going to necessarily be a peak, but 0:09:25.920 --> 0:09:30.679 I think more like a hump hump, that's what he said. Thanks, 0:09:30.760 --> 0:09:34.559 Jason um So, is there a point where you feel 0:09:34.559 --> 0:09:37.360 like we could be as a health care system in 0:09:37.360 --> 0:09:41.920 our country definitely taxed? That's that's really the theory. You know, 0:09:42.000 --> 0:09:45.640 we talked about that S curve logarithmic curves. So you know, 0:09:45.720 --> 0:09:48.199 people shouldn't panic right now. There are certainly going to 0:09:48.240 --> 0:09:51.439 be more and more cases reported. Fortunately, deaths in the 0:09:51.559 --> 0:09:55.079 United States are still below a hundred several thousand cases. 0:09:55.520 --> 0:09:59.040 You know, worldwide we've seen much more critical situations, but 0:09:59.120 --> 0:10:02.400 again we don't really you know what the final number 0:10:02.440 --> 0:10:05.000 will be, and there will be more and more cases. 0:10:05.440 --> 0:10:08.280 So this is really a matter of just preparing for 0:10:08.440 --> 0:10:12.280 a worst case scenario. That is, so people, streets are deserted. 0:10:12.320 --> 0:10:15.480 I think people are anxious and businesses are suffering. It's 0:10:15.520 --> 0:10:19.040 important to sort of pull together and do social distancing, 0:10:19.120 --> 0:10:23.079 personal hygiene, kind of mutual sacrifice or shared sacrifice. Not 0:10:23.200 --> 0:10:26.880 because anyone is individually in a panic. We don't really 0:10:26.960 --> 0:10:30.520 know what that final number will be. How many I 0:10:30.679 --> 0:10:33.880 see you bids will ultimately ultimately be needed. You don't 0:10:33.920 --> 0:10:36.240 want to be in a situation where someone needs an 0:10:36.280 --> 0:10:38.280 I CU bed and you don't have it. Quick question, 0:10:38.280 --> 0:10:40.800 You've gotta be quick for me twenty seconds. A vaccine? 0:10:40.960 --> 0:10:45.679 Is that still a kind of thing? Multiple companies are 0:10:45.720 --> 0:10:47.240 working on it. I think we're going to see it 0:10:47.320 --> 0:10:50.880 within six to nine months is my guestimate. So I 0:10:50.960 --> 0:10:54.400 think we'll see it before all right. Dr Ian las Bader, 0:10:54.480 --> 0:10:57.360 thank you so much. Um. We really do enjoy talking 0:10:57.400 --> 0:10:59.880 to you and really appreciate your insight on all of 0:11:00.000 --> 0:11:02.520 this on an ongoing basis. Dr Iain los Bader, Clinical 0:11:02.559 --> 0:11:05.800 Associate Professor of Medicine, n y U Lango and Medical Center. 0:11:05.880 --> 0:11:09.079 On the phone in New York City, you're listening to 0:11:09.280 --> 0:11:13.079 Bloomberg Business Week with Carol Masser and Jason Kelly on 0:11:13.360 --> 0:11:16.840 Bloomberg Radio. All Right, what a day, What a Tuesday, 0:11:16.960 --> 0:11:20.800 Carol Masser, And it's only Tuesday, Lemon, It's only Tuesday, Lemon. 0:11:20.840 --> 0:11:23.760 What a week? Uh, fast and furious. Let's get back 0:11:23.800 --> 0:11:27.200 down to Washington quickly to Anna Edgerton, deputy team leader, 0:11:27.640 --> 0:11:31.160 looking after Congress. She's looking after everything these days because 0:11:31.559 --> 0:11:34.200 the center of the world is in Washington, at least 0:11:34.280 --> 0:11:37.000 is when it comes to fiscal stamulus. We've heard a lot, 0:11:37.440 --> 0:11:39.920 Uh Anna, help us understand what we just heard from 0:11:39.960 --> 0:11:44.079 the Treasury secretary. Well, it seems like the price of 0:11:44.160 --> 0:11:46.880 this package just continuous to grow. You know. This morning, 0:11:47.240 --> 0:11:52.200 Minusian had asked lawmakers to put together a package shows 0:11:52.240 --> 0:11:55.200 about eight hundred and fifty billion dollars of aid three 0:11:55.240 --> 0:12:00.559 different industries, cash payments for directly to American adults, and 0:12:00.640 --> 0:12:04.040 you also a payroll tax cut. Now that total is 0:12:04.280 --> 0:12:08.600 topping one trillion dollars. So right now, the Senate has 0:12:08.720 --> 0:12:11.280 a measure those passed by the House last week, that 0:12:11.360 --> 0:12:13.520 they're going to try to pass quickly and then move 0:12:13.600 --> 0:12:17.319 onto this other gigantic fiscal stimulus that will try to 0:12:17.800 --> 0:12:20.679 dull the impact of this coronavirus. How quickly can all 0:12:20.679 --> 0:12:24.560 of this stuff go through? So the Senate could act 0:12:24.679 --> 0:12:26.600 very quickly on the House though, as long as there's 0:12:26.640 --> 0:12:31.520 no objections that will force different procedural measures. It depends 0:12:31.640 --> 0:12:34.559 on really how this package comes together. It seems like 0:12:34.679 --> 0:12:37.600 all you know, that's the last of the fiscal hawks 0:12:37.640 --> 0:12:40.720 to put away their concerns about how much this would cost, 0:12:40.800 --> 0:12:42.719 and you realize that this is really the time to 0:12:42.800 --> 0:12:45.320 step in in a big, bold way for the economy. Well, 0:12:45.400 --> 0:12:48.120 and what I what's interesting is that Mitch McConnell I 0:12:48.160 --> 0:12:50.800 guess the headline crossing additional bill of much larger scale 0:12:50.960 --> 0:12:54.079 is needed. I think we're all realizing, certainly when you 0:12:54.160 --> 0:12:56.880 hear New York City mayor build a Lazio speak about 0:12:57.200 --> 0:12:59.600 how this is impacting just about everybody, and we hear 0:12:59.640 --> 0:13:02.160 this from airs and governors across the country, certainly those 0:13:02.440 --> 0:13:07.400 in the hardest hit regions. Um is politics being put aside, 0:13:07.480 --> 0:13:11.959 anna uh and Republicans and Democrats um coming together and 0:13:12.120 --> 0:13:16.640 understanding about what the mission is here? Increasingly so, I 0:13:16.679 --> 0:13:19.400 mean we're still seeing some kind of snarky comments at 0:13:19.400 --> 0:13:21.640 the sides, you know, policy saying that this needs to 0:13:21.720 --> 0:13:24.920 be evidence in science based, suggesting that not everything the 0:13:24.960 --> 0:13:28.959 administration does is you know, is science base. But you know, 0:13:29.280 --> 0:13:31.679 for the most part, there is an understanding that this 0:13:31.920 --> 0:13:36.720 is a really unprecedented challenge that lawmakers need to respond 0:13:36.760 --> 0:13:39.520 to and really need to put the best of the 0:13:39.559 --> 0:13:42.719 American people first and make sure that they're putting not 0:13:42.880 --> 0:13:45.800 only the health measures forward, but also economic measures that 0:13:45.880 --> 0:13:48.640 it is going to dull the impacts of this. And 0:13:48.840 --> 0:13:52.040 I have to say, uh, Secretary Manuchin has really become 0:13:52.520 --> 0:13:54.800 the go to guy for a lot of these negotiations 0:13:55.160 --> 0:13:58.559 with the Hill notable. It feels like, yeah, absolutely, And 0:13:58.640 --> 0:14:01.400 you know, there's kind of two ways or Democrats, especially 0:14:01.440 --> 0:14:04.719 how Speaker Nancy Pelosi to engage with the administration. One is, 0:14:04.960 --> 0:14:07.920 you know, the confrontration of of impeachment and kind of 0:14:07.960 --> 0:14:10.800 pushing back on this very unpopular president. The other one 0:14:10.880 --> 0:14:12.760 is to get down to the nitty gritty with his 0:14:12.880 --> 0:14:16.199 Treasury secretary, with Stephen Manution. And we saw this in 0:14:16.320 --> 0:14:19.680 the de limit discussion last summer. We're seeing this now 0:14:20.000 --> 0:14:23.200 and he really has become an effective negotiator. One challenge 0:14:23.240 --> 0:14:25.080 that Manusian has, though, is that he doesn't have a 0:14:25.200 --> 0:14:27.600 very deep bench at the Treasury, so he doesn't have 0:14:28.080 --> 0:14:30.800 kind of the brain trust that um you know, that 0:14:31.360 --> 0:14:33.200 they had responding to the two thousand and eight two 0:14:33.200 --> 0:14:36.280 thousand nine crisis. He's kind of doing this all by himself. 0:14:37.520 --> 0:14:40.720 All right, Anna Edgerton, thank you so much. Great update, 0:14:41.160 --> 0:14:43.880 A fast movie. Storry. As you say, we are moving 0:14:44.160 --> 0:14:47.320 in increments of hundreds of billions of dollars as the 0:14:47.400 --> 0:14:50.680 day goes on in terms of this fiscal stimulus. You're 0:14:50.760 --> 0:14:54.480 listening to Bloomberg Business Week with Carol Masser and Jason 0:14:54.560 --> 0:14:58.960 Kelly on Bloomberg Radio. Let's move to Andy Brown, editorial 0:14:59.000 --> 0:15:02.120 director for Boomberg New Economy, joining us on the phone 0:15:02.440 --> 0:15:04.400 from New Hampshire. And Andy, I want you to pick 0:15:04.480 --> 0:15:08.160 up right where Doug was talking about this coordinated effort 0:15:08.280 --> 0:15:12.240 or lack thereof. We're starting to see some coordination from Europe, 0:15:12.320 --> 0:15:15.760 but this has not been coordinated overall. But first I 0:15:15.800 --> 0:15:18.160 gotta ask you your well, your family as well as 0:15:18.240 --> 0:15:21.680 everybody doing Hey. Thanks Jason. Yeah, I'm well. I'm in 0:15:21.800 --> 0:15:24.960 New Hampshire where something. I have a place in New 0:15:25.040 --> 0:15:29.760 Hampshire where social distancing isn't a temporary expedient, It's almost 0:15:29.800 --> 0:15:33.040 a way of life there. Aren't that many people up 0:15:33.080 --> 0:15:36.640 here where I am, And so what are you seeing? 0:15:37.000 --> 0:15:39.080 You know, from your perch there is you look across 0:15:39.200 --> 0:15:41.480 the world. You're in the business of the new economy, 0:15:41.800 --> 0:15:43.720 and it seems like part of the new economy is 0:15:43.960 --> 0:15:47.320 every man for himself. Yeah, you know, this is the 0:15:47.360 --> 0:15:50.920 way it panned out. I mean, you know that the 0:15:51.040 --> 0:15:54.760 one of the first and biggest casualties of the coronavirus 0:15:54.880 --> 0:16:00.280 has been global cooperation, international cross border collaboration, you know. 0:16:00.400 --> 0:16:03.600 And this is in such stock contrast to what happened 0:16:03.680 --> 0:16:06.840 back in two thousand and eight, where governments all over 0:16:06.920 --> 0:16:10.680 the world pulled together to prevent a global recession from 0:16:10.760 --> 0:16:13.760 becoming a global depression. And what you're seeing now is 0:16:13.920 --> 0:16:19.080 piecemeal policy formulated with little or no cross border consultation 0:16:19.680 --> 0:16:24.960 and often in the end working at cross purposes. Yeah, 0:16:25.040 --> 0:16:28.320 I mean that's what's fascinating, right, Like you know we 0:16:28.440 --> 0:16:31.520 talk about I mean, we know this is a global crisis, 0:16:32.120 --> 0:16:34.640 h and everybody's facing it together, and yet when it 0:16:34.760 --> 0:16:37.680 comes to dealing with it, um, we're not seeing that 0:16:37.760 --> 0:16:40.240 kind of coordination. We're watching headlines come out of the EU. 0:16:40.400 --> 0:16:44.040 We're yep, they're figuring out things. Um, it looks like 0:16:44.160 --> 0:16:47.880 finally together, the US is you know, charting its own course. 0:16:48.120 --> 0:16:51.800 Um Andy, And you know, if ever, we need more 0:16:52.320 --> 0:16:55.760 cooperation on this than ever before. Oh my goodness. I 0:16:55.840 --> 0:16:59.160 mean you know, I have to tell you that if 0:16:59.440 --> 0:17:03.000 we're going to eat back this coronavirus, if we're going 0:17:03.040 --> 0:17:07.200 to prevent a global recession from turning into global depression, 0:17:07.640 --> 0:17:09.560 we have to have I mean, this is this is 0:17:09.680 --> 0:17:14.400 not optional. You have to have global collaboration. And particularly 0:17:14.800 --> 0:17:17.000 between the US and China. You think about this, What 0:17:17.280 --> 0:17:20.520 really should be happening right now between the US and 0:17:20.640 --> 0:17:23.800 China is that they should be agreeing to accelerate the 0:17:23.880 --> 0:17:28.040 search for a vaccine against coronavirus. They have the largest 0:17:28.080 --> 0:17:31.760 pools of scientists and researchers in the world. They are 0:17:31.840 --> 0:17:35.399 the world's to data giants, you know. And not just 0:17:35.600 --> 0:17:37.520 and not just the search for a vaccine, right, I 0:17:37.600 --> 0:17:40.320 mean for the manufacturer and the distribution of all kinds 0:17:40.359 --> 0:17:43.359 of emergency medical equipment, you know, whether you're talking about 0:17:43.400 --> 0:17:47.240 face masks or respirators or ventilators. You know, these two 0:17:47.359 --> 0:17:52.119 countries need to be working right now together to combat this. 0:17:52.320 --> 0:17:54.320 And what are we seeing with the two the two 0:17:54.359 --> 0:17:56.879 of them are basically shooting poison bobs at each at 0:17:56.920 --> 0:17:59.280 each other. We heard it today what no, Donald Trump 0:17:59.359 --> 0:18:02.600 is tweeting about the Chinese virus right, and just a 0:18:02.680 --> 0:18:05.160 few minutes ago, a few hours ago, we hear from 0:18:05.200 --> 0:18:07.879 the from Beijing that you know that they're going to 0:18:07.920 --> 0:18:10.320 be booting out all the American journalists from the from 0:18:10.320 --> 0:18:12.240 the New York Times, Washington Post and the and the 0:18:12.280 --> 0:18:15.760 Wall Street Journal I mean, the exact opposite of pulling 0:18:15.880 --> 0:18:17.960 together that we need to see from the world's too 0:18:18.080 --> 0:18:20.600 largest economy. And I have to say, I keep thinking 0:18:20.640 --> 0:18:23.920 about because we don't know enough about this particular virus. 0:18:23.960 --> 0:18:26.159 And that's what we keep hearing um from the medical 0:18:26.240 --> 0:18:30.520 experts and the health community, and what happens if cases 0:18:30.560 --> 0:18:32.680 start to pick up again, whether it's in a few 0:18:32.760 --> 0:18:35.440 months or later this year, Like there needs to be 0:18:35.560 --> 0:18:38.159 global tracking of it at this point, so that we 0:18:38.280 --> 0:18:41.200 can make sure countries can get ahead of it and 0:18:41.280 --> 0:18:44.440 countries can share what seems to be the most effective 0:18:44.520 --> 0:18:47.720 policies in dealing with it. Well, that's exactly right, and 0:18:47.760 --> 0:18:49.760 we're and and and to your point, this is what 0:18:49.920 --> 0:18:54.520 we're seeing, right, So, Singapore, Taiwan, Hong Kong, South Korea. 0:18:55.000 --> 0:18:57.520 That really seemed that like they and they did have 0:18:57.720 --> 0:19:00.920 the coronavirus under control. And how you're starting to see 0:19:00.960 --> 0:19:05.200 the numbers ticking up again as infected travelers arrived in 0:19:05.280 --> 0:19:09.120 these places from Europe, from the United States. So it's 0:19:09.160 --> 0:19:11.639 you know, it's it's a global problem. It's gonna be 0:19:11.680 --> 0:19:13.280 with it. It's gonna be with us, you know, for 0:19:13.480 --> 0:19:16.840 for for for for potentially another couple of years, you know. 0:19:17.000 --> 0:19:21.439 I mean, it's we shouldn't be surprised, okay, I mean, 0:19:21.560 --> 0:19:25.399 this is this is the product of years of populists 0:19:25.640 --> 0:19:30.439 coming into power in government country after country around the world, 0:19:30.560 --> 0:19:34.399 you know, And and they have been at odds with 0:19:34.600 --> 0:19:38.080 the with an international agenda, with globalization. They've torn down 0:19:38.160 --> 0:19:40.800 international institutions. You take yesterday, we had a meeting of 0:19:40.840 --> 0:19:43.119 the G seven. The G seven agreed that one of 0:19:43.160 --> 0:19:45.680 the best ways of keeping the global economy going is 0:19:45.760 --> 0:19:49.480 to maintain open trade. Well, guess what. The Trump administration 0:19:49.600 --> 0:19:53.680 has just paralyzed the workings of the World Trade Organization, 0:19:53.840 --> 0:19:58.200 which polices global trade. You know, so you have you know, 0:19:58.280 --> 0:20:01.200 and you talk about global collaboration. Donald Trump has spent 0:20:01.280 --> 0:20:04.000 the last four years picking trade battles and all the 0:20:04.040 --> 0:20:07.320 battles with China, with the Yampion Union and so on. 0:20:07.800 --> 0:20:10.080 And this is a big difference between now and two 0:20:10.119 --> 0:20:13.000 thousand and eight. Two thousand and eight. Who has to leadership? Right? 0:20:13.080 --> 0:20:15.960 You know? Aria different and the US is is I'm 0:20:16.000 --> 0:20:19.600 afraid when it comes to all aspects of this problem, 0:20:19.720 --> 0:20:22.960 really is you know, is not in position anymore to leave? 0:20:23.280 --> 0:20:25.359 All right, Andy Brown, We're gonna leave it. They're always 0:20:25.359 --> 0:20:28.040 good to catch up with you, Uh, Managing editor for 0:20:28.480 --> 0:20:32.280 our Bloomberg New Economy the Group joining us on the 0:20:32.320 --> 0:20:39.679 phone from New Hampshire. Brother, colonel, Now, but you let 0:20:39.720 --> 0:20:44.280 me drive? Oh no, no, no, no home, honey, please, 0:20:44.400 --> 0:20:47.760 I'll do the writing, revel let me. I want to try. 0:20:50.480 --> 0:21:03.600 Just drive, baby, It's good question. This is the drive 0:21:03.720 --> 0:21:08.640 to the globe community. Thanks, we'll try us Bloomberg Radio. 0:21:09.240 --> 0:21:11.159 This indeed, it is time for the drive to the 0:21:11.280 --> 0:21:14.639 clothes Back with us is Henley Smith, senior relationship manager 0:21:15.080 --> 0:21:20.560 at New York based stone Castle Cash stone Castle Cash Management. Uh. 0:21:20.600 --> 0:21:23.159 And he dug us on the phone from Connecticut. So Henley, 0:21:23.400 --> 0:21:25.560 nice to have you here. First of all, tell us 0:21:25.560 --> 0:21:28.480 a little bit us about your situation. I'm assuming you're 0:21:28.480 --> 0:21:30.159 working from home. Tell us a little bit about kind 0:21:30.160 --> 0:21:33.520 of how your world has changed. Well, yes, working from home. 0:21:33.640 --> 0:21:36.400 Nice to be with you. I thought I would be studio, 0:21:36.600 --> 0:21:39.720 but we're here up in lovely Connecticut doing all doing 0:21:39.760 --> 0:21:44.000 our part to help out, you know, the nation. So, yes, 0:21:44.320 --> 0:21:48.320 we're working from Connecticut. I'm remote usually, but yeah, for 0:21:48.359 --> 0:21:50.119 the most part, it's it's been a it's been an 0:21:50.160 --> 0:21:54.240 easy switch over. And so what are you hearing? Henley? 0:21:54.720 --> 0:21:56.800 First of all, glad to hear you're you're safe and sound, 0:21:56.880 --> 0:21:59.760 doing your part for social distancing. I'm doing my part 0:21:59.800 --> 0:22:03.080 from sleepy Hello, not too far from you. Um, what 0:22:03.240 --> 0:22:07.600 are you hearing? In terms of your clients? I mean, 0:22:08.040 --> 0:22:11.600 this is a worrisome market, to say the least, this 0:22:11.800 --> 0:22:16.159 sort of volatility. I was talking to an executive earlier 0:22:16.320 --> 0:22:18.880 today and she said she was traveling a few weeks ago, 0:22:19.000 --> 0:22:21.960 she was at a big private equity conference and just 0:22:22.119 --> 0:22:25.320 got the vibe. She called her money manager and said, 0:22:25.880 --> 0:22:28.480 we gotta go half cash here. Uh did you get 0:22:28.520 --> 0:22:31.880 a lot of those calls over the past couple of months. Well, 0:22:31.960 --> 0:22:34.840 you know that's our expertise, is cash is something we've 0:22:34.880 --> 0:22:38.119 talked about for for a while. And uh, you know 0:22:38.480 --> 0:22:41.560 this is uh you know again when uh we're there 0:22:41.600 --> 0:22:43.760