Speaker 1: This is Bloomberg Business Week. I'm Carol Masser and I'm
Speaker 1: Bloomberg Quick Takes Tim Stanovk. We're here every day bringing
Speaker 1: you the latest news from the world to business and finance,
Speaker 1: plus technology, politics, economics, all purtnising the power of Business
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Speaker 1: YouTube search Bloomberg clovel News. All right, let's get back
Speaker 1: to COVID and the virus. Tim. We've mentioned some of
Speaker 1: the headlines, the US recovery from the latest COVID nineteen
Speaker 1: wave taking hold cases dropping or poised to start falling
Speaker 1: in the vast majority states. That makes me hopeful. It
Speaker 1: makes me hopeful as well. Also, the f d A
Speaker 1: is leaning toward authorizing half dost booster shots of the
Speaker 1: MODERNA vaccine. And we're also seeing that an anti viral
Speaker 1: drug from Murk appears to inhibit several major COVID variants,
Speaker 1: including the highly contagious delta strain. That's according to early
Speaker 1: stage data. It's really interesting stuff going on. So let's
Speaker 1: get to our daily check on COVID nineteen. Dr Amy
Speaker 1: Compton Phillips is back with us. She's president of Clinical
Speaker 1: Care at Providence Health System. She's on the phone from Seattle.
Speaker 1: Remember we've told you this before. The first known US
Speaker 1: case of COVID nineteen was confirmed in Washington State at Providence.
Speaker 1: That was back in January. She and her team were
Speaker 1: the first to know this and really have to deal
Speaker 1: with it. The hospital is part of a massive system,
Speaker 1: uh and it includes about fifty one hospitals clinics. It
Speaker 1: is huge, so they see a lot and as I said,
Speaker 1: she joins us from Seattle. Dr Compton Phillips, So nice
Speaker 1: to have you back here with Tim and myself. How
Speaker 1: are you. I'm doing great. Thank you so much for
Speaker 1: having me today. So what are you seeing when it
Speaker 1: comes to COVID nineteen cases treatment? How would you assess
Speaker 1: the current situation when it comes to our fight against
Speaker 1: this pandemic. Well, you know, it's great that we're finally
Speaker 1: seeing a little bit of light at the end of
Speaker 1: our current tunnel that we've been going through. You know,
Speaker 1: we keep thinking it's the last tunnel we have to hit,
Speaker 1: and I would love this to be the last one.
Speaker 1: We still do have in some of our markets, particularly
Speaker 1: in Alaska and in the eastern side of Washington State.
Speaker 1: UM crisis standards of care, So we're not completely out
Speaker 1: of the woods yet, But then explain what Explain what
Speaker 1: that is for people who aren't familiar with that yet.
Speaker 1: Crisis standard of care. Yeah, Crisis standards of care is
Speaker 1: what you don't want if you go into the emergency room. UM.
Speaker 1: It means that we really are beyond our capacity to
Speaker 1: help people with all the cutting edge care that you
Speaker 1: normally used to that we are either having to use
Speaker 1: UM and the kind of the mnemonic that we use
Speaker 1: this spaces, supplies and staff, So UM spaces. We're using
Speaker 1: places for care that don't normally take care of patients.
Speaker 1: So we might be using conference rooms, for example, to
Speaker 1: put patients in. UM supplies, we might not have every
Speaker 1: ventilator that we need to put people on if they're
Speaker 1: breeding sails, and instead we'll start using alternatives like high
Speaker 1: blow oxygen. And staff means we're using people to extend
Speaker 1: the skilled staff we normally have two staff I see us.
Speaker 1: For example, so we might have one ICU nurse that's
Speaker 1: supervising to other nurses that came in from an outpatient
Speaker 1: clinic that don't normally work in an ICU UM, but
Speaker 1: to be able to extend what we typically do. Crisis
Speaker 1: then crisis then absolutely. It's like I said, it's not
Speaker 1: what you would want for you or your family, it's
Speaker 1: not what we want to provide. You do what you
Speaker 1: can when you have to. So and I thought it
Speaker 1: was so important what you said, seeing the life at
Speaker 1: the end of the current tunnel. And I do feel
Speaker 1: like every conversation we have, the caveat is well depending
Speaker 1: on COVID and depending on the trajectory of this virus,
Speaker 1: because we just don't know. UM, what optimism do you
Speaker 1: hold on to? What worries you? So the optimism I
Speaker 1: have is we now have seen around the globe countries
Speaker 1: that have been able to get things under control, even
Speaker 1: in that they of delta. And the way they're doing
Speaker 1: that is with the layered containment strategies we know work,
Speaker 1: so really really pushing on vaccines and vaccines um that
Speaker 1: that allow us to get back to life. So in
Speaker 1: countries where they for example, like over in the EU,
Speaker 1: where they're requiring proof of vaccination to go out to
Speaker 1: dinner or into museum, vaccination rates have increased and they've
Speaker 1: gotten control of the pandemic. When we do things like
Speaker 1: use masks and congregate settings, particularly in places like schools,
Speaker 1: it works. When we increase a ventilation, increase social distancing,
Speaker 1: it works. So I do believe that if we actually
Speaker 1: put science into practice that we would get control of
Speaker 1: this wave and have it be the last one that
Speaker 1: we have to deal with. One challenging thing to hear,
Speaker 1: and I think for many people to hear right now
Speaker 1: is that yes, we can get it under control, but
Speaker 1: it requires a lot of sacrifice. I think on an
Speaker 1: individual basis, like you know, we haven't seen family and
Speaker 1: over two years, for example, we're not playing on flying
Speaker 1: because we have a young child before he's vaccinated. So
Speaker 1: it's it's like this new normal. Even though we can
Speaker 1: keep it under control, it's it's it's not something that
Speaker 1: I'm you know, we're all wearing masks around the office,
Speaker 1: like it's not great. Yeah. And the really interesting thing
Speaker 1: is over in the EU, to look at Denmark, for example,
Speaker 1: they're back to normal. They're not wearing masks, but it's
Speaker 1: because they did the work to get it under control,
Speaker 1: rather than having to keep going on um with with
Speaker 1: the containment strategies. As soon as particularly our kids can
Speaker 1: get vaccinated, it really will allow us to get back
Speaker 1: to normal and we won't have to do all the
Speaker 1: layer containment. It'll just be contained now. The challenge we
Speaker 1: have is the misinformation that is stoking anti vaccination fears
Speaker 1: is really really traumatizing for communities. We have doctors and
Speaker 1: nurses that are you know, zipping up body bags again
Speaker 1: in our I see us and then go out to
Speaker 1: their car and find a flyer on their windshield saying
Speaker 1: that vaccinations cause and then choose your misinformation um fact um,
Speaker 1: and that they will be held accountable and that they're
Speaker 1: contributing to genocide. So it is incredibly challenging for our
Speaker 1: people who have been putting their lives and health and
Speaker 1: families lives on the line for the past eighteen months,
Speaker 1: to be seen as the problem rather than the solution
Speaker 1: to the pandemic. That has got to be difficult. I
Speaker 1: want to get back to our guest. At this hour,
Speaker 1: it's Dr Amy compted Phillips. She's president of Clinical Care
Speaker 1: at Providence Health System. UH still with us on the
Speaker 1: phone from Seattle. Dr Compton Phillips. Let's talk a little
Speaker 1: bit about pregnant women. It's something Tim and I have
Speaker 1: talked a lot about. I know are friends who are
Speaker 1: thinking about getting pregnant. There are those that are pregnant
Speaker 1: who've been vaccinated. There are others who don't want to
Speaker 1: get the vaccine ahead of it. Um, what can you
Speaker 1: tell us? There's lots of research and information being put
Speaker 1: out there. There is lots of research and the great
Speaker 1: news that the vaccines are safe and effective and pregnant women.
Speaker 1: The reason that's great news is because moms and babies
Speaker 1: are at real risk from COVID. That particularly with the
Speaker 1: Delta wave, with the increased contagiousness of this particular germ,
Speaker 1: and the fact that it is affecting so many young people.
Speaker 1: We have seen, um, you know, one is too many.
Speaker 1: We have seen so many women who have come in
Speaker 1: pregnant and have either lost their baby because of the
Speaker 1: blood clotting that COVID itself causes um and then disrupting
Speaker 1: flow to the placentas of them the baby doesn't make
Speaker 1: it UM and or moms themselves because of the mild
Speaker 1: immune suppression you get from pregnancy itself, not being able
Speaker 1: to fight off COVID, and then you know the whole O, B, G,
Speaker 1: Y N trying to decide do we deliver this baby
Speaker 1: early to try to save mom's life or what do
Speaker 1: we do? It's just a horrible thing for pregnant women
Speaker 1: to get severely ill from COVID. Preventing yourself with the
Speaker 1: shot is absolute, literally the best course, but it's not
Speaker 1: something that many pregnant women are doing. Only of pregnant
Speaker 1: people have been vaccinated, lower rates among Hispanic and Black people.
Speaker 1: How do you get that number? Why, why do you
Speaker 1: think that's happening? And how do you get that number up? Well?
Speaker 1: I think pregnant women are women who are even considering pregnancy,
Speaker 1: are always really really worried about doing anything that might
Speaker 1: put the baby at risk and appropriately So it's why
Speaker 1: why so many pregnant women I know um are are
Speaker 1: hesitant to take a tile at all, much less anything else.
Speaker 1: And and so I think having been appropriately cautious is
Speaker 1: absolutely the right thing to do. I don't know that
Speaker 1: women know the fact that the risk of COVID while
Speaker 1: pregnant is so much higher than the risk of the
Speaker 1: vaccine that we have a lot of data now, and
Speaker 1: I know this vaccine is reasonably new. But when you
Speaker 1: do a new vaccine in billions of people literally across
Speaker 1: the globe, you get data very quickly, and we know
Speaker 1: that this vaccine is now safe and effective for pregnant
Speaker 1: women and tificantly more safe than getting COVID is when
Speaker 1: you're pregnant. Getting that word out is hard, and so
Speaker 1: it is part of the conversation um to to help
Speaker 1: ensure that we do get the word out. So are O,
Speaker 1: B G y N s are are beating the drums
Speaker 1: were in, the papers were beating it. The American College
Speaker 1: of Obstetrics and Gynecology ACOG is making sure that it's known.
Speaker 1: CDC is putting the information out. And still it takes
Speaker 1: really one on one conversation with women to know that
Speaker 1: the best thing they can do for a safe and
Speaker 1: healthy pregnancy is get a shot dr one thing I
Speaker 1: want to do. Playing Devil's advocate, We've only got about
Speaker 1: forty five seconds. Here is there's somewhere, say we'll wait
Speaker 1: a minute. We don't know the data. We don't know
Speaker 1: when a kid is five or ten, whether there's some
Speaker 1: complications or something. What do you say to that? And
Speaker 1: I am playing Devil's advocate a bit here. Yeah, I'd
Speaker 1: say that delivering a baby to term and being able
Speaker 1: to raise that baby till their five or ten is
Speaker 1: a definite benefit rather than having having a complicated pregnancy
Speaker 1: that doesn't go to term because of COVID. Alright, we're
Speaker 1: going to leave it on that note. Always good to
Speaker 1: get your time with you. Please stay safe and we
Speaker 1: wish you well you and your team. Dr Amy Compton Phillips,
Speaker 1: president of Clinical Care at Providence Health System, on the
Speaker 1: phone from Seattle, Washington. You're listening to Bloomberg Business Week
Speaker 1: with Carol Masser and Bloomberg Quick Takes Tim Stinovic on
Speaker 1: Bloomberg Radio. Oh my god, we're already talking about this story.
Speaker 1: We've been talking since it hit the terminal this morning.
Speaker 1: It's the cover story of Bloomberg Business which happens to
Speaker 1: also be the big take on the Terminal. It's about
Speaker 1: insiders winning trades. When I read in, I mean I
Speaker 1: just I was reading in this morning. I usually scan.
Speaker 1: You couldn't put it on. I could not. I was
Speaker 1: sitting there with my coffee and just kept going because, UM,
Speaker 1: I don't know, there's just it's a fascinating story, it
Speaker 1: really is, and it's a cover story for insight into
Speaker 1: something that I don't think a lot of people know
Speaker 1: about it and understandably, um it's a little wonky too.
Speaker 1: Let's let's get into it. Joe Weber is editor at
Speaker 1: Bloomberg Business. We Ke's with us in the Bloomberg Interactive
Speaker 1: Broker studio. Liam Bond is Projects and Investigations reporter for
Speaker 1: Bloomberg News, joining us on the phone from London. Joel, Okay, insiders,
Speaker 1: that's right, how are they defined? So? UH gonna be
Speaker 1: careful here because there's a I can I can hear
Speaker 1: my my legal counsel on my on my my shoulder
Speaker 1: advising on how to say this. So, uh, corporate executives
Speaker 1: get some privilege information, right, and some of that information
Speaker 1: is obviously non public because you know, helps them do
Speaker 1: their jobs. But it also turns out that they have
Speaker 1: some special abilities to like trade, and it also means
Speaker 1: that those trades get disclosed, so eventually we get to
Speaker 1: see what they do and that's long been known. And
Speaker 1: what's really interesting about the story I thought was also
Speaker 1: that now there are like websites set up to like
Speaker 1: track and rank who's the best insider at trading and
Speaker 1: you can subscribe and you can subscribe three dollars a month. Um.
Speaker 1: But a new artier also, you know, it gets to
Speaker 1: some the heart of capitalism is like is somebody getting
Speaker 1: an unfair advantage over the rest of us? So, so Liam,
Speaker 1: what's how does that breakdown? And and how is this?
Speaker 1: How is this legal? Because it is? Yeah, so so
Speaker 1: I can look like the kind of Um, the stories
Speaker 1: that dominate, like financial coverage inside of trading always like
Speaker 1: rears its head like it was. It was really big
Speaker 1: in the eighties with Michael milk Un and Bowski and
Speaker 1: then again you know when you have Sack Capital and
Speaker 1: pre Berra and stuff. But the thing is like the
Speaker 1: stories keep coming, but the issue never goes away. And
Speaker 1: I think fundamentally the reason for that is that the
Speaker 1: law in America around inside of trading is just really
Speaker 1: shoddy and isn't really up to the task. Um. So,
Speaker 1: for example, there's no crime of insider trading in America
Speaker 1: in the same way that there is in the UK
Speaker 1: or another place. Um. What happens in America is that
Speaker 1: you have to charge people with securities fraud UM, and
Speaker 1: it's all done via kind of case law. There isn't
Speaker 1: an insider trading statue, even though people are pushing for
Speaker 1: that UM, and essentially that really raises the bar but
Speaker 1: behind bringing these cases because to prove frauard you have
Speaker 1: to demonstrate this thing called scienter, which is like criminal intent.
Speaker 1: So you have to demonstrate that this inside the trade
Speaker 1: and use their head inside instivation and liberally set out
Speaker 1: to take advantage of it UM. And the problem with
Speaker 1: that is that even though you can sort of see, well,
Speaker 1: the CEO keeps getting very lucky, they can turn around
Speaker 1: and say, well, if you look at the information that
Speaker 1: was in the public domain already, you know it was
Speaker 1: pretty obvious that the shares were going to go up,
Speaker 1: or you know, I just had better ability to judge
Speaker 1: what was already out there, and it's very hard to
Speaker 1: prove them wrong. And if you think about like normal
Speaker 1: insider trading cases that you think of like the fat
Speaker 1: capitals of this world, and hopefully if you're a secuty,
Speaker 1: you'll find some email or find some witness, whereas in
Speaker 1: this it's really just all going on in the executive's head. Um, So,
Speaker 1: you know, I spoke to a bunch of you know,
Speaker 1: x SEC folks, ex prosecutors, and they all said that
Speaker 1: these cases are just absolute pigs and that's why they're
Speaker 1: largely you know, it's almost like an unprosecutable crime essentially,
Speaker 1: meaning that they're not necessary isn't necessarily a case there
Speaker 1: you're saying, well, it's just incredibly hard to demonstrate wrong
Speaker 1: for criminal prosecutors. Yeah. Liam, What I found so fascinating
Speaker 1: about this was that even you know, some government lawyers
Speaker 1: who you talked to question how much damage the executive
Speaker 1: trading really causes, which makes me think it's like, wait
Speaker 1: a second, is it really is it a victimless Yeah,
Speaker 1: that that really struck out to me about this story.
Speaker 1: So explain that because not everybody thinks this is necessarily
Speaker 1: that bad. Well, I think that's the thing that really
Speaker 1: appealed to me about the story is the kind of
Speaker 1: moral and for esophical questions that it it raises. So
Speaker 1: you've got someone like Free Berrara, who kind of made
Speaker 1: his name as the Sheriff of Wall Street and he
Speaker 1: brought down all these insider traders, and then a load
Speaker 1: of his cases ended up having to be quashed because
Speaker 1: just down to this you know, function of this kind
Speaker 1: of squiggly law and the case law. But he would argue, look,
Speaker 1: it's about fairness. Like fundamentally, um, you know, elites in
Speaker 1: society shouldn't have an advantage when you know, trading our
Speaker 1: financial markets over other people. And even if the losses
Speaker 1: are small or they're disparate and spread out, that's you know,
Speaker 1: fundamentally the principle at stake, where other people, particularly economists,
Speaker 1: so around and say well, actually, you know, by trading,
Speaker 1: these guys are helping making markets more efficient because they
Speaker 1: make disclosures. People can look at the disclosures and ultimately
Speaker 1: it kind of helps wheel the grease the wheels of capitalism.
Speaker 1: And therefore it's a bit like you know, I sort
Speaker 1: of make the analogy of of of like drug enforcement.
Speaker 1: It's almost like an unwitnable thing. So prosecutors will be
Speaker 1: better off just ignoring it all together and accepting that
Speaker 1: this is kind of part of parting of the way
Speaker 1: that the world works. So the picture side this is
Speaker 1: it's also rather timely because you know, we have new
Speaker 1: new chair in SEC. There's been some shatter in d C.
Speaker 1: What what what has been that chattering and where could
Speaker 1: we see this this conversation go on the regulatory front. Yes,
Speaker 1: so there's two. One is at the higher level political
Speaker 1: legislative level, where they're talking about actually introducing inside of
Speaker 1: trading statutes and rules which would have a quite profound impact.
Speaker 1: And then there's the more kind of rule based stuff
Speaker 1: that's going on at the SEC where they have actually
Speaker 1: talked about and it looks like it could happen quite
Speaker 1: quickly reforming. One of the main culprits of this whole story,
Speaker 1: which these kind of the will tend be five trading
Speaker 1: plans and basically what it is, if you're an executive
Speaker 1: and you want to sell your stock, you could enter
Speaker 1: a plan with like a third party that says I'm
Speaker 1: going to trade x amount of stock over this period
Speaker 1: of time. But the problem is these things are kind
Speaker 1: of right with loopholes and um, you know, it's been
Speaker 1: various kind of research showing how how vulnerable they are
Speaker 1: to abuse. So it looks like at least on that
Speaker 1: side of things, on the trading plans thing, there could
Speaker 1: be some movement. But again, the way that the law
Speaker 1: is written, my you know, my understanding of people are spoken.
Speaker 1: He says that there's only certain things they can do.
Speaker 1: They can't completely solve the problems in the way that
Speaker 1: they'd like to without ripping up the rule because and
Speaker 1: rewriting the hole inside the trading law. But there is
Speaker 1: an advantage. Let's be fair, like an insider, whether they
Speaker 1: just soak up stuff as they work around the office,
Speaker 1: is uh fair to say that they soak up a
Speaker 1: certain amount of information. There's got to be a little
Speaker 1: bit of bias in any trade that they do potentially,
Speaker 1: and you know, maybe maybe that's right that you get
Speaker 1: rewarded for that for doing such a good job, right
Speaker 1: or maybe not? And maybe this is something that we're
Speaker 1: going to hear more about. I love love, Love Love
Speaker 1: This story Must read Bloomberg Big Take cover story of
Speaker 1: Bloomberg Business this Week. Joe Weber, editor of Bloomberg Business Week.
Speaker 1: Here in our studio, Bloomberg News Projects and Investigations. Reporter
Speaker 1: Liam Bond on the phone in London. Check it out.
Speaker 1: This is Bloomberg. This is Bloomberg Business Week with Carol
Speaker 1: Messer and Bloomberg Quick Takes. Tim Stinovic on Bloomberg Radio. Well,
Speaker 1: meet George Jetson. Maybe a little bit um not really really,
Speaker 1: but are you ready to welcome in Amazon's astro robot? Me?
Speaker 1: I don't know, are you know? I'm actually not? Okay,
Speaker 1: that's sorry, all right? And really what is it for?
Speaker 1: And that's exactly what our Bloomberg News technology reporter Matt
Speaker 1: Day is asking in his latest story. He joins us
Speaker 1: on the phone in Seattle. Matt, good to have you
Speaker 1: here with Tim and myself. So tell us a little
Speaker 1: bit about the astro robot. So. Astro is a little
Speaker 1: foot and a half tall kind of a touch screen
Speaker 1: on wheels, um Amazon that it can follow you around,
Speaker 1: it could meet the family, It can do little security
Speaker 1: sweeps in your home. And if it comes to a
Speaker 1: lot of the same voice activated shops and capabilities that
Speaker 1: people would note from their their Amazon smart speakers and
Speaker 1: Alexa devices, Well, what is the need for this? Right? Like?
Speaker 1: What is what is the problem this is solving? That
Speaker 1: is a great question, and if you read the initial
Speaker 1: coverage since Amazon's launch yesterday, everybody is asking that question. Um. Amazon,
Speaker 1: for their part, says, you know, home security is a
Speaker 1: key capability of this thing. You know, if if you're gone,
Speaker 1: you can have it stream video of your kitchen or
Speaker 1: whatever to your smartphone. Um, which is in keeping with
Speaker 1: a lot of Amazon's pitch recently there if their home
Speaker 1: devices is it's basically a home security thing. Um. That's
Speaker 1: there's that off to that. But aside from that, there's
Speaker 1: not a whole lot um that this can do that
Speaker 1: you know, your your smart speaker can't already do or
Speaker 1: you know, if you might not need to be get
Speaker 1: done at all. Okay, and just did at launch just
Speaker 1: to you know, be devil's advocate here I went. I
Speaker 1: had the same reaction when the first Alexa device came
Speaker 1: out years ago. I saw the video that Amazon put
Speaker 1: out and I was like, what is this thing? And
Speaker 1: that thing ended up just being an absolute home run
Speaker 1: for the company. Is there any kind of feeling like that, like, Okay,
Speaker 1: this could be a sleeper hit or this is like
Speaker 1: Amazon just throwing something against the wall and see if
Speaker 1: it sticks. The Amazon's position if they think it's ripe
Speaker 1: enough that they want to try, right, Like just as
Speaker 1: they could put into the world a bare box you know,
Speaker 1: Echo and Eleca device that couldn't really do much at launch,
Speaker 1: it might evolve into something else. They're kind of planting
Speaker 1: the flag here, and I think, um, you know, you're
Speaker 1: you're right to raise the echo example, But that's that's
Speaker 1: definitely the optimistic take from inside Amazon is that we
Speaker 1: think the tech is good enough that there's gonna be
Speaker 1: home robots. We might as well be there in some
Speaker 1: form or fashion and see if we can, you know, frankly,
Speaker 1: help customers figure out what to do with the thing. Well,
Speaker 1: and maybe it's the first step. I mean, we've all
Speaker 1: remember Boston Dynamics, right, and those incredible robots that can
Speaker 1: that are lifelike terrifying, whether it's the dog, Yeah, terrifying
Speaker 1: works too. But you you you wonder about kind of
Speaker 1: where this is all going, and whether it's Amazon or
Speaker 1: other companies. I do feel like the world Matt to
Speaker 1: some extent is slowly moving in that direction. I mean,
Speaker 1: we don't mind that we've got a robot that vacuums
Speaker 1: are floor floors or or rugs. Like, we're all in
Speaker 1: on that. So it's not too unusual, right to kind
Speaker 1: of stretch a little bit that at some point we
Speaker 1: might have some robot that's moving around in our house,
Speaker 1: maybe checking on kids, maybe checking on elderly family members.
Speaker 1: Maybe I don't know, you know, I'm not quite sure
Speaker 1: where this goes. I think nobody is. But we're really
Speaker 1: going to have to decide how comfortably want to be
Speaker 1: with surveillance, which is one theme that Amazon to keep talking.
Speaker 1: You know, new devices with cameras and microphones on them,
Speaker 1: and you know that's that's great as long as you
Speaker 1: trust the company and faith and what's gonna be done
Speaker 1: with that data? But you know that's that's not something
Speaker 1: we traditionally had in our owns. Well, what are you
Speaker 1: hearing about that? Because it isn't It's interesting with younger
Speaker 1: generations sometimes I feel like, yeah, I don't want people
Speaker 1: watching me, and then you know they're on their phone
Speaker 1: constantly with cation services, and yeah, you can find me
Speaker 1: wherever you want to find me. Um, Increasingly you walk
Speaker 1: into an office and you've got badges and different things
Speaker 1: and cameras throughout that are tracking you. You know, Uh,
Speaker 1: we see increasingly in the United States. You see it
Speaker 1: a lot over in Europe or the UK. There's cameras
Speaker 1: outside everywhere, certainly over in China. So, uh, isn't that
Speaker 1: just kind of the whether, however you feel about it,
Speaker 1: that's kind of where we're all moving towards and there's
Speaker 1: a big chunk of the retail public that will tell you,
Speaker 1: you know, yeah, they're taking all of my data. Anyway,
Speaker 1: you might as well just get the cool news services.
Speaker 1: But I think what we've seen in the last couple
Speaker 1: of years of companies like Amazon and like Google that
Speaker 1: do a mass a frankly great frightening throw v intol
Speaker 1: on us. They know they have to take this seriously.
Speaker 1: At least so they have seen I don't know whether
Speaker 1: we could call it a backlash, but enough of a
Speaker 1: ground towel of concern among consumers that they have to
Speaker 1: at least pay proper lift service of privacy and then
Speaker 1: ideally you know, yeah, um, listen to us on it. Hey, Matt,
Speaker 1: I gotta ask you about other Amazon announcements yesterday that
Speaker 1: we saw from the company. The company announcing uh, it's
Speaker 1: a Halo fitness service that competes with Apple and also
Speaker 1: competes with Peloton's app. We saw Peloton stock take a
Speaker 1: hit yesterday. I take us into everything they're offering. So
Speaker 1: Halo Fitness. You know, for a long time after Amazon
Speaker 1: released as Halo Band originally didn't have a screen. Um, folks,
Speaker 1: Speculative Courses is going to go into health and fitness
Speaker 1: tracking and loan behold it is bone Behold, it does
Speaker 1: have a screen on on the second version of the device. UM.
Speaker 1: Amazon's hoping this is all going to be enough a
Speaker 1: package to get to subscribed to pay a monthly fee
Speaker 1: um something like four bucks a month to um to
Speaker 1: activate all of the sort of health tracking benefits that
Speaker 1: they say come with this thing. Um. You know, Halo
Speaker 1: was another Amazon for I think I kind of mixture
Speaker 1: used at launch, So it makes beteen whether it gonna
Speaker 1: be a big market for it. But certainly Wallster's taken
Speaker 1: through hey match just quickly. So how much does any
Speaker 1: of this move the financial needle or have the potential
Speaker 1: to at Amazon, be it the robot or fitness it
Speaker 1: is unclear. They don't release a a lot of data
Speaker 1: on it, but you know it's it's part of a
Speaker 1: long term play to just keep us all engaged in
Speaker 1: their system and you know, ideally buying some more stuff
Speaker 1: in the retail site while we're at it. Astro a
Speaker 1: robot for you, Matt Day, Oh, I don't know. I'm
Speaker 1: not sure I can afford one at launch a thousand
Speaker 1: bucks or if you don't buy it at launch, right man, Yeah,
Speaker 1: that's training and when is it going to be obsolete?
Speaker 1: And if you want like pedigree or a name for
Speaker 1: a specific name, you have to pay even more. Nowns
Speaker 1: Obazos is you know he's he's no longer CEO of
Speaker 1: the company, but maybe he should have brought one to
Speaker 1: space a few months ago. Stay tuned. Yeah, brother for
Speaker 1: that one. Matt Day, thank you, technology reporter at Bloomberg
Speaker 1: News on the phone from Seattle. You know, we all
Speaker 1: left at Elon Musk when he was going to try
Speaker 1: and disrupt the car industry, and look where we are.
Speaker 1: He disrupted it and everybody's really following in his path. Hey,
Speaker 1: but he doesn't have that robot out yet. Remember what
Speaker 1: happened at the announcement a few months ago. It was
Speaker 1: like the person dressed up as a robot. This is
Speaker 1: a real robot. That was kind of funny. I felt
Speaker 1: like it was at Momon Chance or something or what
Speaker 1: is that called I'm roam. Yeah, but you let me drive?
Speaker 1: Oh no, no, no, no, this is not a twin. Please,
Speaker 1: I'll do the riding gravels. I want to drive. It's
Speaker 1: a good question. This is the drive to the clobe
Speaker 1: down on the blue Bird Radio. So just about ten
Speaker 1: and a half minutes left in today's trading session. It
Speaker 1: is time for the close Carol Master along with Tim Stanovic,
Speaker 1: and we are seeing stocks taking another leg down there
Speaker 1: off their highs and lows of the session. Mixed trained,
Speaker 1: little change on the SMP up about four tens of
Speaker 1: a percent on the down, down about one tenth of
Speaker 1: a percent on the NASTAC Charlie breaking that down for
Speaker 1: you as well, looking forward to our drive to the close.
Speaker 1: Guest Coast James Chuck Mark is back with us, partner
Speaker 1: and technology analyst at the asset management from Clock's Clockwise Capital,
Speaker 1: and James is back with us on the phone from Miami. James,
Speaker 1: how are you? I'm doing great. How are you so
Speaker 1: still in Miami? James? Not not moving back to New
Speaker 1: York yet. I was just in New York about a
Speaker 1: month ago for some meetings, but um kind of permanently
Speaker 1: in Miami. From the frezealable future. You're one of the
Speaker 1: one of the many, then help me make some sense
Speaker 1: out of the market trade. It feels like things are
Speaker 1: getting a little tired there. We're definitely seeing more volatility,
Speaker 1: especially when it comes to some of the big tech names.
Speaker 1: We took out the ninety day moving average this week,
Speaker 1: or definitely below the fifty day on the S and
Speaker 1: P five hundred, But we are bouncing off and just
Speaker 1: hovering at that ninety day. We talk about, you know,
Speaker 1: dip buying and so on and so forth, but it
Speaker 1: feels like that's becoming a weaker and weaker trade. How
Speaker 1: do you see it? Sure? So at the beginning of
Speaker 1: this year, obviously there was a lot of concerns around
Speaker 1: inflation and what's going to happen with interest rates and
Speaker 1: when it said going to temper um, and it appeared
Speaker 1: that the market is seeing that those fears are coming
Speaker 1: into fruition. Now the question I think that investors are
Speaker 1: asking themselves is this something that is a prolonged thing
Speaker 1: or a sustainable upward trend that's going to move against
Speaker 1: the market, against technology stocks particularly, or is this something
Speaker 1: that's a temporary phenomenon where we have supply constraints and
Speaker 1: will be able to go through it and see some
Speaker 1: positivity on the other side. So a lot of the
Speaker 1: I think the moves are being exacerated by algorithmic trading,
Speaker 1: But at the end of the day, that's the question
Speaker 1: that a lot of investors are asking themselves, including us,
Speaker 1: what do you think is it permanent or is it temporary?
Speaker 1: We think it's temporary. We think we The analogy we
Speaker 1: make is this is a classic traffic jam where you know,
Speaker 1: this was somewhat self inflicted by closing out the economy um,
Speaker 1: but what as we reopen it, there are going to
Speaker 1: be constraints in terms of getting distribution back on track
Speaker 1: on the supply side, and also getting stocking back on track.
Speaker 1: So that's going to take time. We think it's going
Speaker 1: to be um it could last you know, several quarters,
Speaker 1: potentially longer. But there is um brightness on the other
Speaker 1: side of it, because at the end of the day,
Speaker 1: the supply and demand will we calibrate. The only caveat
Speaker 1: that we make outside of what we do, which is
Speaker 1: predominantly technologies on the energy side, where the inflation that
Speaker 1: you see there um could be more prolonged than the
Speaker 1: rest of the sectors. But if you're looking at the
Speaker 1: predominant drivers of the market, technology of being at the forefront,
Speaker 1: which is inherently deflationary in nature. We continue to have
Speaker 1: a very bullish posture over the near term as well,
Speaker 1: as the longer term. What you said about inflation really
Speaker 1: mirrors what we heard from J. Pow, Christine Leguard, Andrew
Speaker 1: Balley of the Bank of the the UK Bank a
Speaker 1: Bank of England, i should say, and B of J's
Speaker 1: Kuroda at that ECB form. They all talked about inflation
Speaker 1: really dominated the discussion, and they basically said, it's a
Speaker 1: supply chain constraints. The problem is, you know, everybody feels
Speaker 1: in the dark right now because we don't know what
Speaker 1: the next leg of the pandemic. We understand the current leg,
Speaker 1: but we don't know what the next leg is. Having
Speaker 1: said that, you look at technology, what have you been buying?
Speaker 1: What have you been selling? Sure? I think right now
Speaker 1: what you have to do is move up in quality.
Speaker 1: You know what you saw in the the initial part
Speaker 1: of the reopening that people were willing to move down
Speaker 1: balance sheet and the lower quality names just to get
Speaker 1: that reopening bump. But at this point, given the lack
Speaker 1: of visible visibility that we have in terms of the
Speaker 1: duration of these impacts, not that it's going to be prolonged,
Speaker 1: but how long will actually laugh um, you have to
Speaker 1: move up into higher quality names. And secondly to that,
Speaker 1: you have to expose yourself and get get exposure to
Speaker 1: the themes that are going to dominate the next cycle.
Speaker 1: We're moving toward a centralized world to a decentralized one,
Speaker 1: and every company that you analyze it will this company,
Speaker 1: given the direction that the world is going into, the
Speaker 1: direction that society is going, Will these companies be more
Speaker 1: relevant in several years times? And they are today? So
Speaker 1: with that in mind, you know, we really have exposure
Speaker 1: longtime exposure in in data management and data security, companies
Speaker 1: that are involved in the next wave of social interaction
Speaker 1: with the metaverse, and and the companies that bridge the
Speaker 1: gap between the analog world and the digital world of
Speaker 1: via logistics. What's the metaverse company that you're focused on?
Speaker 1: Facebook would like it to be the itself to be
Speaker 1: the metaphorst company. We heard that from Mark Zuckerberg in
Speaker 1: the most recent earnings called what are you betting on? Sure? Sure?
Speaker 1: I mean Facebook? You know, we have a position in
Speaker 1: that UM and we think that there's going to be
Speaker 1: an integral part of it UM just given the the
Speaker 1: number of people that they serve UM. But we're looking
Speaker 1: at more UM as far as the next gen, bigger
Speaker 1: opportunities are concerned with the more your play entities like
Speaker 1: roadblocks and Unity. We have a small position and Unity software. UM,
Speaker 1: so that's the one that we're playing right now. You
Speaker 1: also like, from what I understand, CrowdStrike holdings. You like Uber, Amazon, Square, YEP, Square,
Speaker 1: and Snowflake. UM. You know all those tackle the big
Speaker 1: beams in the future. You know, we're moving to the cloud.
Speaker 1: Cloud Strike helps you secure that moving to the cloud.
Speaker 1: Snowplank stolps you manage that. Square is just disintermediating the
Speaker 1: card networks and financial institutions and Unity we talked about
Speaker 1: in Uber Amazon tackled the whole US again. Is there
Speaker 1: just quickly we just have about thirty seconds left here.
Speaker 1: Is there a tech name that you think people are
Speaker 1: still plowing into, a big tech that you're like, m
Speaker 1: it's done. The one big tech name where we're starting
Speaker 1: to second guest ourselves, and this has been a long
Speaker 1: term position is Apple. We are looking at it with
Speaker 1: greater scrutiny. Now. Obviously the growth opportunities are still pervasive.
Speaker 1: They're just given their proliferation of their devices. But when
Speaker 1: you look at the economics of the business, UM, it's
Speaker 1: predominantly going to be driven by their ability to continue
Speaker 1: to buy back shares versus more littlebust growth on the
Speaker 1: top line. So that's one where we're kind of second
Speaker 1: casting in terms of how much of a position do
Speaker 1: we really want to have in this into the next chapter.
Speaker 1: It's something I talked about with Kathy Wood, who said
Speaker 1: Apple's great, but ARC is about new technology and she
Speaker 1: was looking forward, um, always looking forward to. James Chalkmak
Speaker 1: comes on with us. He's partner in Tech analyst over
Speaker 1: Clockwise Capital on the phone from Miami. Thanks for listening
Speaker 1: to Bloomberg Business Week. Download the podcast on iTunes, SoundCloud,
Speaker 1: or Bloomberg dot com, and you can also listen to
Speaker 1: our radio show at two pm Eastern on Bloomberg Radio
Speaker 1: or watch us on YouTube. Search to Bloomberg Global News.