WEBVTT - Walgreens Rolling Out Covid-19 Saliva Home Tests 0:00:01.800 --> 0:00:04.400 This is Bloomberg Business Week. I'm Carol Masser and I'm 0:00:04.440 --> 0:00:07.280 Bloomberg Quick Takes Tim Stanibek. We're here every day bringing 0:00:07.280 --> 0:00:09.799 you the latest news from the world of business and finance, 0:00:09.840 --> 0:00:13.600 plus technology, politics, economics, all furnising the power of Business 0:00:13.640 --> 0:00:17.119 Week reporters and editors, not to mention our journalists and 0:00:17.120 --> 0:00:19.600 analyst in more than one and twenty countries. You can 0:00:19.640 --> 0:00:23.200 download Bloomberg Business Week and iTunes, SoundCloud, or Bloomberg dot Com. 0:00:23.400 --> 0:00:25.120 You can also listen to our radio show at two 0:00:25.160 --> 0:00:27.840 pm Eastern Time on Bloomberg Radio, or watch us on 0:00:27.880 --> 0:00:34.880 YouTube search Bloomberg Global News. Well, Anthony Faucci, President Biden's 0:00:34.920 --> 0:00:37.080 chief medical advisers suggesting that the U S may soon 0:00:37.080 --> 0:00:39.519 as you guidance, easing public health protocols where people are 0:00:39.560 --> 0:00:42.440 fully vaccinated. US definitely stepping up at S effort to 0:00:42.479 --> 0:00:46.320 track virus variants with genetic sequencing. Tim There is so 0:00:46.400 --> 0:00:48.560 much going on right now. Yeah, we're watching this play 0:00:48.560 --> 0:00:51.400 out in real time right now, and we have Robert Thompson, 0:00:51.479 --> 0:00:54.600 chief executive Officer of Clinical Reference Laboratory, joining us on 0:00:54.640 --> 0:00:57.880 the phone from Lennox to Kansas. UM, thanks so much 0:00:57.920 --> 0:01:00.080 for joining us. On this Bob, how you do and 0:01:01.160 --> 0:01:04.040 very well, thanks for having me. Good Um, what do 0:01:04.080 --> 0:01:06.120 you make of where we are right now when it 0:01:06.200 --> 0:01:10.440 comes to COVID, Because we've gotten some really good news 0:01:10.760 --> 0:01:14.160 in recent days, as we've seen number of new cases 0:01:14.160 --> 0:01:17.440 and hospitalizations down. But at the same time, when we 0:01:17.480 --> 0:01:20.120 think about this in the context of where we were 0:01:20.160 --> 0:01:22.920 a few months ago. You know, where we are now 0:01:22.959 --> 0:01:24.840 is where we were in October and November and things 0:01:24.920 --> 0:01:29.679 weren't so great then. So our cases the nationwide have 0:01:29.760 --> 0:01:34.560 dropped from the peak, which was only seven weeks ago. UM, 0:01:34.600 --> 0:01:38.400 and the positive rate has dropped from to last week. 0:01:38.440 --> 0:01:42.040 I think we were at four point eight percent, So indeed, 0:01:42.040 --> 0:01:46.520 that is really good news. UM. I think everyone's watching 0:01:46.560 --> 0:01:49.920 to see if the variance, particularly the UK variant, is 0:01:49.960 --> 0:01:52.720 going to have an impact on the numbers. It's not 0:01:52.880 --> 0:01:55.080 visible yet. I mean, even if you look at Florida 0:01:55.120 --> 0:01:58.160 in isolation, which has the greatest number of the UK 0:01:58.360 --> 0:02:04.120 variant cases, they're still dropping pretty fast. So UM, I 0:02:04.200 --> 0:02:08.440 really feel like, you know, we are an inflection point, UM, 0:02:08.480 --> 0:02:10.600 and I think we're going to continue to see cases 0:02:10.680 --> 0:02:14.240 decline in the positive rates decline, largely as a result 0:02:14.280 --> 0:02:18.440 of the natural immunity and that we've built up over time. 0:02:18.480 --> 0:02:22.320 I mean, there's twenty seven million diagnosed positive cases. Most 0:02:22.360 --> 0:02:24.760 of the estimates say that it's really three times that 0:02:24.840 --> 0:02:27.880 many that have actually been exposed. So that gets you to, 0:02:28.360 --> 0:02:32.000 you know, somewhere around eighty million people that have been 0:02:32.040 --> 0:02:35.959 exposed and have natural immunity, and you throw in forty 0:02:36.040 --> 0:02:40.040 million that have had the vaccine, then you get to 0:02:40.040 --> 0:02:42.239 a third of the US population. And I think that's 0:02:42.320 --> 0:02:46.040 really what we're seeing here in these numbers declining this quickly. 0:02:46.360 --> 0:02:49.400 So we've you know, obviously this has been kind of 0:02:50.320 --> 0:02:52.560 a path that we've all been on, dealing with the virus, 0:02:52.680 --> 0:02:55.919 understanding the virus, getting a vaccine, getting a vaccine out, 0:02:56.320 --> 0:02:59.240 a lot of testing along the way. Um, that's what 0:02:59.320 --> 0:03:01.680 you guys are right, you're involved in testing, and you've 0:03:01.720 --> 0:03:05.799 got a new saliva test out of COVID nineteen saliva test, 0:03:06.200 --> 0:03:10.399 rapid response test. Tell us about that and um, how 0:03:10.440 --> 0:03:13.359 it works, what it costs, and what you think this 0:03:13.480 --> 0:03:15.720 role or these kinds of tests will have the role 0:03:16.400 --> 0:03:19.679 in terms of us getting COVID under control. So our 0:03:20.360 --> 0:03:23.400 our test is the saliva based test, which is much 0:03:23.440 --> 0:03:27.440 easier to collect and more accurate than other at home 0:03:27.600 --> 0:03:31.120 nasal swap tests. UM. It's not technique depend on anybody 0:03:31.160 --> 0:03:33.960 can spit in a tube. So UM, I've done it, 0:03:34.080 --> 0:03:39.880 done it well. So you know, we're really uh trying 0:03:39.880 --> 0:03:42.400 to take that test and expand access to it. So 0:03:42.440 --> 0:03:46.640 we've been dealing with universities and employers UM and today 0:03:46.640 --> 0:03:51.080 we launched a program with Walgreens where if you go 0:03:51.160 --> 0:03:54.280 to the Walgreens Finecare app, where one of the options 0:03:54.280 --> 0:03:58.120 for COVID based testing UM and it's a hundred nineteen dollars. 0:03:58.120 --> 0:04:03.000 It's the gold standard testing methodology, the rt PCR tests 0:04:03.560 --> 0:04:06.360 UM and you know, we're really excited about it. I 0:04:06.440 --> 0:04:10.320 think in this next phase of of the testing market 0:04:11.000 --> 0:04:12.840 is going to be less of these mass you know, 0:04:12.920 --> 0:04:16.919 five people drive through sites and I think much more 0:04:16.960 --> 0:04:21.960 of sort of near patient physician office or at home 0:04:22.040 --> 0:04:25.520 testing as we migrate to the next phase of managing 0:04:25.560 --> 0:04:31.760 this pandemic. What's the cost of it? So do you 0:04:31.800 --> 0:04:35.120 see this as in terms of the reopening here, Let's 0:04:35.160 --> 0:04:38.640 say we do get the majority of people vaccinated here 0:04:38.680 --> 0:04:41.720 in the United States this summer, do you still see 0:04:41.720 --> 0:04:45.920 a need for a testing product such as this? If 0:04:46.400 --> 0:04:50.920 why if people are vaccinated on a widespread basis. Yes, 0:04:51.080 --> 0:04:54.080 and let me explain why. So to begin with, we're 0:04:54.120 --> 0:04:58.880 already seeing test drop. We're we're down in this country 0:04:58.880 --> 0:05:02.040 from the peak, and that's just less symptomatic people showing 0:05:02.080 --> 0:05:05.560 up for testing. I believe that trend is going to continue, 0:05:06.080 --> 0:05:08.960 so we're gonna see less and less of sort of 0:05:09.000 --> 0:05:12.359 mass screening, but we're still going to have that thirty 0:05:12.440 --> 0:05:16.240 whatever the current estimates are about of the population that 0:05:16.400 --> 0:05:18.560 is not a muni that is declined to take the 0:05:18.640 --> 0:05:21.360 vaccine vaccine, and you're going to have all the under 0:05:21.400 --> 0:05:24.919 eighteen year olds who right now are not authorized to 0:05:24.960 --> 0:05:27.120 take the vaccine. So we're still going to have a 0:05:27.120 --> 0:05:31.039 pretty big chunk of the population that does not have immunity. 0:05:31.080 --> 0:05:33.600 And as a result of that, I think we're going 0:05:33.640 --> 0:05:36.560 to on a much smaller scale, have to continue to 0:05:36.640 --> 0:05:40.400 test again near patient testing. Um, you know, well into 0:05:40.520 --> 0:05:43.640 into next year. Hey, Robert, I am curious the variants 0:05:43.680 --> 0:05:47.320 will be able to pick up variants. So our test 0:05:47.520 --> 0:05:50.159 targets a piece of the of the viral RNA that's 0:05:50.279 --> 0:05:52.920 very stable. So every week we look at the new 0:05:53.000 --> 0:05:56.240 variants and we see where the mutations have occurred. None 0:05:56.240 --> 0:05:59.479 of them have occurred at our target piece of the RNA, 0:05:59.640 --> 0:06:02.880 so we pick up all of the variants to South African, 0:06:02.920 --> 0:06:07.000 the Brazilian, and the UK variants. Very briefly, how long 0:06:07.040 --> 0:06:09.839 do you envision COVID stays with us? I mean from 0:06:09.839 --> 0:06:12.800 a business perspective, how long are you planning on this 0:06:12.920 --> 0:06:17.719 test being a product? Um? I think we're gonna see, 0:06:18.080 --> 0:06:21.440 you know, it'll continue into next year, but just on 0:06:21.480 --> 0:06:24.880 a smaller scale. So we've we've done an enormous number 0:06:24.880 --> 0:06:28.640 of tests, five thousand plus so far, and you know, 0:06:28.680 --> 0:06:30.880 a lot of those were for universities, a lot of 0:06:30.920 --> 0:06:34.640 those were for state and local health departments. I think 0:06:34.680 --> 0:06:38.719 that piece of the business is going to gradually UM 0:06:38.720 --> 0:06:42.839 fade or maybe not so gradually fade UM. And what 0:06:42.920 --> 0:06:46.080 will happen is place is is this kind of testing 0:06:46.160 --> 0:06:49.120 Walgreen's CVS that sort of thing. Hey, gonna re leave 0:06:49.120 --> 0:06:51.000 it there, Hey, Bob, thank you so much. Bob Thompson, 0:06:51.040 --> 0:06:53.960 he's chief executive officer at Clinical Reference Laboratory. On the 0:06:53.960 --> 0:06:57.920 phone from Lenexa, Kansas. This is Bloomberg Business Week with 0:06:58.000 --> 0:07:02.360 Carol Masser and Bloomberg Quick Eggs. Tim Stinovich from Bloomberg 0:07:02.440 --> 0:07:07.640 Radio but Tessa down more than since the January high 0:07:07.680 --> 0:07:11.600 after a seven four year percent gain back in We know, tim, 0:07:11.640 --> 0:07:14.120 it was one of the high flyers last year and 0:07:14.120 --> 0:07:15.840 it was doing really well and then we've seen it 0:07:15.880 --> 0:07:18.480 pulled back this year. Yeah, it's been doing really well. 0:07:18.600 --> 0:07:21.440 As a Day is equity markets reporter at Bloomberg News, 0:07:21.440 --> 0:07:23.360 and she joins us on the phone from New York City. 0:07:23.400 --> 0:07:25.480 The big question is why has it been doing so 0:07:25.520 --> 0:07:30.160 well over the last couple of weeks, um, why why 0:07:30.160 --> 0:07:32.040 are we seeing this pullback in Tesla? And I should 0:07:32.040 --> 0:07:34.880 say it's now down only about four percent, so really 0:07:34.920 --> 0:07:38.800 off those loads from earlier today, Hi, and thanks for 0:07:38.840 --> 0:07:41.920 having me so yes, that's a great question. And flashes 0:07:42.040 --> 0:07:46.800 have you know, recovered somewhat since all year today, But 0:07:47.200 --> 0:07:51.840 they did dive pretty sharply today, extending their losses from yesterday. 0:07:52.240 --> 0:07:55.240 And that was mainly triggered by a tweet from Elon 0:07:55.360 --> 0:07:59.880 Musk over the weekend saying the price of cryptocurrencies bitcoin 0:08:00.040 --> 0:08:04.920 anitarium seemed to be high. So given Tesla itself announced 0:08:04.960 --> 0:08:07.680 a one point five billion dollar investment in which coin 0:08:07.800 --> 0:08:11.920 earlier this month, Masks comments may have heard Tesla's own 0:08:11.960 --> 0:08:14.760 investment all right, So it's a word part but but 0:08:14.840 --> 0:08:16.200 and that you know, it's interesting it's a one and 0:08:16.200 --> 0:08:18.720 a half billion dollar investment in bitcoin, but I mean 0:08:18.880 --> 0:08:22.080 this is a massive company, a six hundred fifty seven 0:08:22.080 --> 0:08:25.600 and six hundred fifty eight billion dollar market cap. So 0:08:26.120 --> 0:08:30.960 put in perspective the bitcoin exposure versus the Tesla business, 0:08:32.320 --> 0:08:34.920 that's a great question. Um. You know, as you said, 0:08:35.000 --> 0:08:37.400 it's a you know, one point five billion dollars sounds 0:08:37.520 --> 0:08:39.760 like a significant amount of money, but in the grand 0:08:39.760 --> 0:08:42.680 scheme of things, especially when it's Tesla, it's really small 0:08:42.760 --> 0:08:45.080 change for the company. I mean, this is a company 0:08:45.080 --> 0:08:48.760 that ended twenty twenty with almost nineteen billion dollars in cash, 0:08:49.400 --> 0:08:52.000 had an annual adjust and I didn't come off around 0:08:52.040 --> 0:08:54.400 two and a half billion dollars. So when I speak 0:08:54.440 --> 0:08:57.040 to Bord Street analysts, they say that, you know, rather 0:08:57.080 --> 0:08:59.480 than seeing it as an investment, we should rather see 0:08:59.520 --> 0:09:02.680 this as a signal from Tesla that it is willing 0:09:02.679 --> 0:09:05.160 to push new boundaries and you know, try out you 0:09:05.440 --> 0:09:08.560 and brave things as it tries to transform the vey 0:09:08.640 --> 0:09:11.959 cars are bottom so and given that exposure is so 0:09:12.040 --> 0:09:15.000 small relative to the company's side, they are not really 0:09:15.040 --> 0:09:19.160 worried about the short term Volati literates. But that said, uh, 0:09:19.200 --> 0:09:22.400 you know, it still has that investor sentiment attached to 0:09:22.480 --> 0:09:25.640 it and kind of given muskets. Uh, you know, has 0:09:25.720 --> 0:09:28.959 its really big cult following that is definitely playing into 0:09:29.040 --> 0:09:32.040 the weakness today. Our analysts on Wall Street thinking about 0:09:32.080 --> 0:09:34.480 Tesla right now, are they still saying that in general, 0:09:34.520 --> 0:09:37.480 that it's a by or are they saying, hey, wait 0:09:37.480 --> 0:09:41.880 a second, this thing went really high, really quickly. We're 0:09:41.880 --> 0:09:45.520 taking a step back here. Well, Um, Testa is an 0:09:45.559 --> 0:09:48.120 unusual company, and that I think it's reflected in the 0:09:48.200 --> 0:09:52.160 fact that Walsted and this just cannot seem to agree on, 0:09:52.880 --> 0:09:57.000 you know, whether this company is majorly overvalued or still 0:09:57.000 --> 0:10:01.200 significantly undervalued whilst it is and at this point pretty 0:10:01.280 --> 0:10:04.200 much split on whether it's a buy or a cell. 0:10:04.840 --> 0:10:08.760 Some say, you know, it's a cell. It's they overvalued. 0:10:08.920 --> 0:10:12.200 The stock has run up too soon, too fast. Um, 0:10:12.280 --> 0:10:15.240 And you know at this point there are better opportunities 0:10:15.280 --> 0:10:19.040 elsewhere in the eavy slate. Um. But that said, there 0:10:19.040 --> 0:10:21.320 are some who also say that Tesla has only has 0:10:21.400 --> 0:10:26.320 gotten started the ev transformation that we think will take 0:10:26.400 --> 0:10:29.640 hold of the auto industry over the next decade or 0:10:29.720 --> 0:10:33.120 so has only gotten started, and the stock has very 0:10:33.360 --> 0:10:35.000 hired to go well. And that's what I wanted to 0:10:35.040 --> 0:10:37.160 ask you, Esha, because if I look, if I got 0:10:37.240 --> 0:10:39.240 pull up the f A function on Tesla on the 0:10:39.280 --> 0:10:41.960 Bloomberg and take a look. I mean, as I mentioned, 0:10:41.960 --> 0:10:44.040 it's a six hundred almost six hundred fifty eight billion 0:10:44.040 --> 0:10:48.080 dollar market cap company. Revenues are expected to be in 0:10:48.120 --> 0:10:53.199 this one year about forty eight billion, and that's up 0:10:53.280 --> 0:10:56.720 fifty four percent year over year. I mean, earnings growth 0:10:56.760 --> 0:11:00.240 is expected to be up fourty four percent. It's still 0:11:00.360 --> 0:11:06.520 this massive growth story growth company. Are these expectations realistic 0:11:06.600 --> 0:11:11.559 for this company? UM? I would say that the overall 0:11:11.600 --> 0:11:16.280 walls it consensus expectations UM do not seem out of 0:11:16.320 --> 0:11:20.800 the place at this point. Yes, you know, no, it's possible. 0:11:20.800 --> 0:11:23.439 I know other auto company has done something like this before, 0:11:23.480 --> 0:11:27.320 but but Tesla is a very different kind of auto company. 0:11:27.400 --> 0:11:29.880 That's its main play of you know, you know on 0:11:29.960 --> 0:11:33.080 Mascas also said that, you know, even if the growth 0:11:33.400 --> 0:11:36.840 comes a little slow, when it really takes off, it's 0:11:36.960 --> 0:11:41.120 expected to write in an in an exponential fashion. UM. 0:11:41.280 --> 0:11:45.160 Tesla is expanding in different geographies China, as we know, 0:11:45.280 --> 0:11:48.160 is a huge market. No one has had expected the 0:11:48.320 --> 0:11:52.120 easy space to explode the way it has exploded over 0:11:52.160 --> 0:11:55.200 the past couple of years. So um, from from what 0:11:55.240 --> 0:11:59.000 we understand, you know, these are unusual numbers, but Tesla 0:11:59.080 --> 0:12:04.400 has delivered orles whatever promised so far. Right, Yeah, it 0:12:04.400 --> 0:12:06.520 comes down to those fundamentals. Esha, thank you so much. 0:12:06.920 --> 0:12:09.920 Day Equity Markets reporter at Bloomberg News. Tesla shares they 0:12:09.920 --> 0:12:12.400 have erased their game for the year, though as a 0:12:12.440 --> 0:12:14.400 result of some of the pullback, it's now down three 0:12:14.440 --> 0:12:17.880 percent year to date. This is Bloomberg Business Week with 0:12:17.960 --> 0:12:22.679 Carol Messer and Bloomberg Quick Takes. Tim Stinovich from Bloomberg Radio. 0:12:22.960 --> 0:12:25.280 Well in the magazine this week and excerpt from a 0:12:25.280 --> 0:12:28.040 new book out on the secretive world of commodity traders 0:12:28.040 --> 0:12:31.040 and how they link consumers and investors to global hotspots. 0:12:31.040 --> 0:12:34.160 And maybe it's a bit of a surprise to those 0:12:34.240 --> 0:12:37.000 investors to say the least, Tim, Yeah, to say the least, 0:12:37.080 --> 0:12:40.040 especially for a group of teachers in Pennsylvania exactly. This 0:12:40.160 --> 0:12:42.040 is the subject of a new book. It's called The 0:12:42.040 --> 0:12:44.560 World for Sale, Money, Power and the traders who barter 0:12:45.000 --> 0:12:49.240 the Earth's resources. It's written by Javier Blass and Jack Farchie. 0:12:49.320 --> 0:12:51.640 It's out in the UK, now out in the US 0:12:51.720 --> 0:12:55.040 come March. Javier is Bloomberg News Chief Energy correspondent, joining 0:12:55.120 --> 0:12:57.440 us on the phone from London, along with Bloomberg Business 0:12:57.440 --> 0:13:00.520 Week editor Joe Weber on the access line in brook Again, 0:13:00.559 --> 0:13:04.560 this is going straight to Netflix. I'm just saying, Joel, Yeah, well, 0:13:04.600 --> 0:13:07.160 we we try, and I'm sure Javier would be very 0:13:07.160 --> 0:13:11.160 pleased with that outcome, as as our colleague Will Kennedy 0:13:11.240 --> 0:13:13.679 said yesterday to me, he said, just in case you 0:13:13.720 --> 0:13:16.640 didn't know um and don't follow Javier on on Twitter, 0:13:17.040 --> 0:13:20.600 he's a book for sale and it's literally called for sale, 0:13:21.000 --> 0:13:23.680 and so we were we were really pleased that we 0:13:23.720 --> 0:13:26.679 got to excerpt it. And it is sort of an 0:13:26.679 --> 0:13:29.839 example of of, you know, like I think with the 0:13:29.840 --> 0:13:32.120 book will accomplish is we pull back the curtain in 0:13:32.160 --> 0:13:35.240 many ways on on many markets that you just don't 0:13:35.400 --> 0:13:38.120 don't even know about. And Javier tell us more about 0:13:38.480 --> 0:13:42.480 um UM pensioners who found that they had a little 0:13:42.559 --> 0:13:46.800 something something in their portfolios that they may not have expected. Well, 0:13:46.920 --> 0:13:49.679 you know that pension funds are very, very conservative. They 0:13:50.040 --> 0:13:54.520 usually buy the kind of US speciery that are not 0:13:54.720 --> 0:13:56.840 yielding a lot, but you know that you you will 0:13:56.840 --> 0:14:00.320 never lose money. You do not expect to see US 0:14:00.400 --> 0:14:05.440 pension funds like teachers in Pennsylvania, or police offices in 0:14:05.520 --> 0:14:10.880 South Carolina, or firefighters in West Virginia investing in something 0:14:10.960 --> 0:14:15.920 that will go via the Kaiman Island into doubling the 0:14:16.000 --> 0:14:20.720 capital of Ireland, into a community trader in Switzerland, and 0:14:20.920 --> 0:14:24.040 from there into northern Iraq. And that's exactly what they 0:14:24.040 --> 0:14:27.320 were putting their money, because they were financing glenn or 0:14:27.400 --> 0:14:31.280 the world's largest commodity trader, and what they were financing 0:14:31.280 --> 0:14:35.080 in particular was a deal to buy oil in Kurdistan 0:14:35.240 --> 0:14:38.280 in northern Iraq and to ship that crew into the 0:14:38.280 --> 0:14:41.640 global market. When I was reading this, however, I kept 0:14:41.640 --> 0:14:44.240 thinking to myself over and over again, E. S G. 0:14:44.880 --> 0:14:47.680 S G. S G, Like, what about all these pension 0:14:47.680 --> 0:14:50.720 funds who are saying, we're not making investments that that 0:14:50.920 --> 0:14:54.840 violate you know, the terms of how we're thinking about E. 0:14:55.080 --> 0:14:56.960 S G. So, So how do his investments get made 0:14:57.000 --> 0:15:00.480 in these large pensions. Well, usually they get hold it 0:15:00.640 --> 0:15:04.840 into an outside manager in this case was frankin Talventone, 0:15:05.440 --> 0:15:09.720 and they usually get folded into emerging market debt. I 0:15:09.760 --> 0:15:14.160 mean in many of the prospectuses of of UM de 0:15:14.240 --> 0:15:17.840 pensions fans that will review, this was disclosed as an 0:15:17.880 --> 0:15:21.400 oil note linked to Iraq. It didn't even say that 0:15:21.440 --> 0:15:23.960 it was not actually the government, the central government in 0:15:24.000 --> 0:15:27.480 Iraqi in back back, but just an autonomous province in 0:15:27.760 --> 0:15:31.360 the north of the country. UM. I just simply think 0:15:31.400 --> 0:15:34.840 that sometimes there are a small investment. This was only 0:15:34.880 --> 0:15:39.360 a five or only quote unquote only five hundred million dollars, 0:15:39.400 --> 0:15:42.040 and I think that sometimes they just flow under the 0:15:42.120 --> 0:15:46.880 rather just bundle into American market debt. So have your 0:15:47.360 --> 0:15:51.800 Glencore obviously plays an important role in here and and 0:15:51.840 --> 0:15:54.400 also elsewhere in the book. What did you learn about 0:15:54.440 --> 0:15:58.600 Glencore in reporting this that you didn't already know? Well, 0:15:58.640 --> 0:16:03.280 I mean, it's interesting because we need these Commority traders 0:16:03.320 --> 0:16:06.520 everything that we buy coins from natural resources, and you 0:16:06.560 --> 0:16:09.560 need the commoity traders to buy and and and tell 0:16:09.640 --> 0:16:13.080 to you. What you learn when you get very close 0:16:13.120 --> 0:16:16.320 to these companies is that it's a very strange combination 0:16:16.480 --> 0:16:20.360 that they are incredibly hard working and willing to go 0:16:20.440 --> 0:16:24.240 to no one else goes um and at the same 0:16:24.280 --> 0:16:29.120 time they have that kind of profit minded only mixed 0:16:29.120 --> 0:16:33.320 with a bit of all old fashioned commercial banking, probably 0:16:33.400 --> 0:16:36.720 a hundred years ago of of my worries, my bone 0:16:36.760 --> 0:16:41.160 and handshakes. And I'm personal personally busy in every client 0:16:41.600 --> 0:16:43.800 every year and be on the road or on the 0:16:43.880 --> 0:16:46.840 air for two hundred and fifty or three hundred days 0:16:47.080 --> 0:16:49.880 a year. But what it's more amazing is that they 0:16:49.880 --> 0:16:53.720 are willing to go literally everywhere. I mean, you look 0:16:53.760 --> 0:16:56.760 at the list of countries that the State Department will 0:16:56.760 --> 0:17:01.040 tell everyone, do not go there. The commoity traders go there. 0:17:01.760 --> 0:17:06.520 And and they also play big roles in politics that 0:17:06.720 --> 0:17:10.080 sometimes we do not realize because for many of these countries, 0:17:10.119 --> 0:17:12.440 think about the Middle East or some countries in Africa, 0:17:13.440 --> 0:17:16.919 well that word resources, morning and power go together. How 0:17:16.960 --> 0:17:18.240 do you what do you think is that the most 0:17:18.280 --> 0:17:22.600 striking this whole idea that commodity traders can influence history 0:17:22.800 --> 0:17:26.040 or and or I guess I should say that you've 0:17:26.040 --> 0:17:29.159 got these what are thought to be pretty safe investors 0:17:29.160 --> 0:17:32.679 are hoping that they're safe investors, and conservative investors pension 0:17:32.720 --> 0:17:36.719 investors that they don't exactly understand maybe what they're investing in. 0:17:37.840 --> 0:17:39.920 I think that both are very important. I mean, one 0:17:39.920 --> 0:17:43.119 thing that Jack and I were writing the book we 0:17:43.119 --> 0:17:46.280 were goying to achieve. We think that the commoity traders 0:17:46.280 --> 0:17:49.080 played a big role in the global economy. They play 0:17:49.160 --> 0:17:54.520 a big role in politics, and because on institutional investors 0:17:54.600 --> 0:17:58.640 be pension funds or other kinds of institutional investors are 0:17:59.280 --> 0:18:03.680 investing than providing funds with them. They are also very 0:18:03.680 --> 0:18:07.240 important to all of us. But prices Jack and me 0:18:07.480 --> 0:18:11.359 writing this and researching it is that very few people 0:18:11.600 --> 0:18:15.680 know anything about the commodity traders. There are hardly any 0:18:15.720 --> 0:18:20.080 books about them. Their accounts on most cases are secret 0:18:20.119 --> 0:18:23.400 because they have probably owned companies. And also they are 0:18:23.440 --> 0:18:26.359 controlled by a very few people. I mean most promotive 0:18:26.400 --> 0:18:30.240 traders are controlled by the staff or or a family 0:18:30.359 --> 0:18:33.600 that owns them. So any money that they make, any 0:18:33.600 --> 0:18:35.800 profit that they may go in the pockets of a 0:18:35.840 --> 0:18:38.800 few selected the individuals. Like I said, I think it 0:18:38.840 --> 0:18:41.040 has good to a Netflix so or something, because it's 0:18:41.080 --> 0:18:45.120 just really explaining how these markets work and peeling back 0:18:45.200 --> 0:18:48.400 some of the layers. Um great stuff. Thank you so much. 0:18:48.760 --> 0:18:52.479 Have your blast. Chief Energy correspondent Bloomberg News from London. 0:18:52.600 --> 0:18:54.880 Check out his new book The World for Sale. Money 0:18:54.880 --> 0:18:57.879 power and the traders who barter the Earth's resources in 0:18:57.920 --> 0:19:01.000 the UK and coming to us in March. And of 0:19:01.000 --> 0:19:03.240 course our thanks to the editor Bloomberg Business Week, Joel Webber. 0:19:03.480 --> 0:19:07.480 This is Bloomberg Business Week with Carol Masser and Bloomberg 0:19:07.560 --> 0:19:12.159 Quick Takes Tim Stinovic on Bloomberg Radio. The economy is 0:19:12.160 --> 0:19:14.560 a long way from our employment and inflation goals, and 0:19:14.600 --> 0:19:17.200 it is likely to take some time for substantial further 0:19:17.240 --> 0:19:20.080 progress to be achieved. We will continue to clearly communicate 0:19:20.119 --> 0:19:23.400 our assessment of progress toward our goals well in advance 0:19:23.480 --> 0:19:26.760 of any change in the case of purchases. A nice 0:19:26.800 --> 0:19:30.120 double dose Federal Reserve Chairman J Powell Charlie Pellet, of course, 0:19:30.160 --> 0:19:35.000 some highlights from his testimony earlier today. J Powell's testimony 0:19:35.040 --> 0:19:37.400 of course, in that semi annual testimony that he does 0:19:37.440 --> 0:19:40.479 before Congress on the state of the US economy, and 0:19:40.520 --> 0:19:44.359 Tim really giving some you know, reminder that he thinks 0:19:44.520 --> 0:19:46.360 there's progress being made, but we still have a long 0:19:46.400 --> 0:19:49.600 way to go until we get to kind of a 0:19:49.640 --> 0:19:57.200 pre pandemic economy. Akka, we're not raising rates anytime. Be patient, everyone, relax, relax. 0:19:57.520 --> 0:19:59.960 Joining us with more on J. Powell and FED policy 0:20:00.080 --> 0:20:03.359 really the overall US economy. Danny blanche Flower, professor of 0:20:03.359 --> 0:20:06.720 economics at Dartmouth College, former Bank of England Monetary Policy 0:20:06.760 --> 0:20:09.879 Committee member. He joins us on the phone from Florida. Danny, 0:20:09.880 --> 0:20:12.840 how are you. I'm great, Always good to talk to 0:20:12.880 --> 0:20:16.760 you guys on a very interesting day. Well interesting, how 0:20:17.000 --> 0:20:19.320 was saying very sensible things? I mean, this is the 0:20:19.400 --> 0:20:22.800 reality that we're in. It's the right thing to do. 0:20:23.000 --> 0:20:25.239 We'll talk to us about that. Tell us what was 0:20:25.480 --> 0:20:29.280 what struck you as being very very sensible from J. Powell? Well, 0:20:29.359 --> 0:20:33.600 I think I think the uncertainty is is very high here. Um, 0:20:33.680 --> 0:20:37.320 we're seeing the economy recover, but there's clearly, clearly the 0:20:37.440 --> 0:20:40.919 number of people that are claiming benefits remembers slack in 0:20:40.920 --> 0:20:44.120 the economy, and of course the uncertainty going forward about 0:20:44.160 --> 0:20:47.080 how quickly the vaccinations are going to go, how effective 0:20:47.080 --> 0:20:51.240 they're going to be, how how firms bounds back. And 0:20:51.280 --> 0:20:53.080 I think the other one is what kind of long 0:20:53.160 --> 0:20:55.720 run changes in behavior are they going to beat? Are 0:20:55.760 --> 0:20:58.520 people going to commute the same as they did, are 0:20:58.520 --> 0:21:01.199 they going to go back to cruise ship? All of that, 0:21:01.280 --> 0:21:03.960 but particularly are they going to save more. And I 0:21:04.000 --> 0:21:06.560 thought what was interesting because you have a sort of 0:21:06.600 --> 0:21:10.960 conservative message which has often not happened between the Central 0:21:10.960 --> 0:21:13.919 Bank and the Treasury, which perhaps not a surprise, and 0:21:14.040 --> 0:21:17.080 also from the thing from the Council of Economic Advice 0:21:17.200 --> 0:21:20.600 from cc ROUS. So you're having a thirsted views and 0:21:20.680 --> 0:21:23.960 a consistent view across all the parts and so often 0:21:24.000 --> 0:21:26.560 in the past we've seen working against each other. So 0:21:26.680 --> 0:21:28.960 now what we're seeing are the two branches, if you like, 0:21:29.040 --> 0:21:32.359 a monetary and fiscal policy essentially saying the same thing, 0:21:32.600 --> 0:21:35.080 a bit different than in the UK, where we're actually 0:21:35.119 --> 0:21:37.640 on the NPC members are actually disagreeing with each other 0:21:37.920 --> 0:21:40.080 about whether they should go to negative breaks and we 0:21:40.080 --> 0:21:42.320 haven't really heard that in the US, but that's a 0:21:42.440 --> 0:21:44.840 clear thing that's going on in Britain. How do you 0:21:44.880 --> 0:21:48.760 think that the FED and particularly FED share Powell is 0:21:48.960 --> 0:21:52.240 or should be paying attention to the sharp increase in 0:21:52.400 --> 0:21:56.000 bond yields that we've seen in recent weeks. Well, I mean, 0:21:56.000 --> 0:21:59.800 obviously that's that relevant and to think about it, but 0:21:59.840 --> 0:22:03.040 the scale of that rise, I don't think it's that significant. 0:22:03.240 --> 0:22:06.080 But what else should they do? What other alternatives do 0:22:06.200 --> 0:22:09.280 they have other than trying to get America back to 0:22:09.400 --> 0:22:13.040 work and try to kind of overcome the difficulties that 0:22:13.080 --> 0:22:16.520 have been caused by this this this terrible pandemic. So 0:22:16.560 --> 0:22:18.960 I think the answer is, you know, you can't do everything, 0:22:19.520 --> 0:22:21.200 you do what you can do. I mean, think about 0:22:21.240 --> 0:22:23.280 the story of Easy If we could talk about what's 0:22:23.320 --> 0:22:25.840 the impact of what the FED has done to inequality? 0:22:26.119 --> 0:22:28.320 And Janet Yellen talked about that much he was the chair. 0:22:28.359 --> 0:22:30.600 But their answer was, you can't do much about it. 0:22:30.640 --> 0:22:33.119 You've probably got to go ahead with this worry about 0:22:33.200 --> 0:22:35.679 what's going ahead in the future. If you have to 0:22:35.680 --> 0:22:38.359 do something, then you change and you adapt. The same 0:22:38.359 --> 0:22:41.200 thing with inflation. If you see inflation starting to in 0:22:41.720 --> 0:22:44.480 deal with it when you get there. But at the moment, 0:22:44.680 --> 0:22:47.679 you keep doing what they're saying. And I think that's right. 0:22:47.760 --> 0:22:49.520