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Speaker 1: Global News Bloomberg Business Week. I'm Carol Masser along with
Speaker 1: Tim Stanovic, and we covered some of today's virus headlines.
Speaker 1: You've heard it. We continue to see the drug big
Speaker 1: farm of companies going for regulatory clearance for their vaccines. UH.
Speaker 1: New York state statewide daily hospitalizations jumping the most since April.
Speaker 1: One system in the New York metro area that was
Speaker 1: on the front line last spring dealing with COVID is
Speaker 1: the Atlantic Health System. They've got seven hospitals in New Jersey.
Speaker 1: They've got about seventeen thousand team members. UH and UH
Speaker 1: they are really covering much of the state of New Jersey.
Speaker 1: So great to have back with us. Brian Granulotti, he's
Speaker 1: CEO of Atlanta Health System. He joined this on the
Speaker 1: phone for Morristown, New Jersey. Hey, Brian, good to have
Speaker 1: you here with Tim and myself. I think we talked
Speaker 1: with you at the end of April. It was not
Speaker 1: a good time. Where are we today in comparison, Well,
Speaker 1: thanks thanks for having us back. It's quite different for
Speaker 1: us than it than it was back in the spring,
Speaker 1: particularly the time that we spoke. UM. You know, we
Speaker 1: were up over nine hundred patients in our hospitals per
Speaker 1: day and uh today, UM, we're about the pace of
Speaker 1: increase has been a lot slower than we experienced in April.
Speaker 1: And we're also seeing fewer patients in our intensive carry
Speaker 1: unit and fewer patients on ventilators. And that's because of
Speaker 1: some of the great strides we've made in learning about
Speaker 1: this virus and how to take care of patients. UM. Differently,
Speaker 1: we've also set up a program called Hospital at Home
Speaker 1: and that really has allowed us to keep more people
Speaker 1: in their homes getting UH oxygen treatments and and other
Speaker 1: needed treatments. So all in all, the virus is back.
Speaker 1: Um uh it is really endemic in the community. But
Speaker 1: we're not seeing that crazy growth that we saw over
Speaker 1: a three to four week period in the spring. Brian,
Speaker 1: are you concerned at all that you will start to
Speaker 1: see that that crazy growth again as we see the
Speaker 1: cases rise around the country and then also the positivity
Speaker 1: rate at least in the New York City area above
Speaker 1: four percent and of the last seven days and rising. Yeah,
Speaker 1: you know, Um, it's interesting all of our modeling that
Speaker 1: we're doing UM does not show us hitting those levels again.
Speaker 1: Because you gotta remember, we were doubling the number of
Speaker 1: cases that we had in our hospitals every uh two
Speaker 1: to three days for about a three or four week period,
Speaker 1: and this has been a slower uptake UM, starting probably
Speaker 1: at the end of September beginning of October, and Um,
Speaker 1: you know, we're seeing things plateau a little bit, then
Speaker 1: go up a little bit. The big concern we have though,
Speaker 1: is what human behavior is going to be like UM,
Speaker 1: and so we are expecting to see a bump now
Speaker 1: and probably four or five days after the Thanksgiving holiday. Ryan,
Speaker 1: how are your team members right now? Carol mentioned that
Speaker 1: you have about seventeen thousand of them, and I know
Speaker 1: they've been working around the clock keeping us safe. How
Speaker 1: are they doing? You know this is this has been
Speaker 1: tough on all people who work in healthcare. UM. You know,
Speaker 1: I know there's a general fatigue in the country right
Speaker 1: now regarding this crisis. And we do have a light
Speaker 1: at the end of the tunnel with the vaccines, and
Speaker 1: we can talk about that. But our team members have
Speaker 1: been at this for a long time. And even when
Speaker 1: our gate account went down over the summer months, UM,
Speaker 1: we were still preparing for um. Uh I called it
Speaker 1: coexisting with COVID, but we were preparing for what we're
Speaker 1: seeing right now. So UM, while they're ready and UM,
Speaker 1: you know, we're taking great care of our patients and
Speaker 1: we're keeping our team members safe. UM. They are fatigued
Speaker 1: and like all of us would like to see, UH,
Speaker 1: life get back to a bit more normal than it
Speaker 1: is right now. It's interesting what you said about it.
Speaker 1: You know, it's been a slower uptake And why do
Speaker 1: you think that is? Is it because when the numbers
Speaker 1: do start to pick up, that we've all like kind
Speaker 1: of been there before understand what we need to do
Speaker 1: to kind of back off. So we all go back
Speaker 1: to social distancing wearing masking, you know, wearing masks. Is
Speaker 1: that why it's slower? Brian, Well, when we first saw
Speaker 1: this occurring, I used to say, follow the train lines
Speaker 1: because we have you know, organizations in northern New Jersey,
Speaker 1: um and uh, right off the train line. And when
Speaker 1: you did them mapping on that, you could see that
Speaker 1: high concentration and UM, so we're working from home, not
Speaker 1: having him as much transit is obviously a difference right now.
Speaker 1: So that's that's part of it. The other part of
Speaker 1: it is the measures that were taken by um, the
Speaker 1: state of New Jersey, state in New York. You know,
Speaker 1: I think our governor here in New Jersey has done
Speaker 1: a very responsible job of trying to balance the health
Speaker 1: of the citizen read the resources that we have available
Speaker 1: to care for them. Uh, and the economy and uh.
Speaker 1: You know, we're all doing our part to keep the
Speaker 1: economy open because we don't want to go back to
Speaker 1: that time where everything was shut down. The dilemma, though,
Speaker 1: strikes on your point about masking and other things like that,
Speaker 1: because it's it's your personal responsibility as a citizen to
Speaker 1: take these things seriously. And one of the reasons in
Speaker 1: New Jersey that we're seeing. Uh, you know, a better
Speaker 1: performance right now is because people are taking that seriously.
Speaker 1: But you can track back these these outbreaks to gatherings,
Speaker 1: to events where people didn't do that, and that's really
Speaker 1: where personal responsibility steps in. So I always tell people,
Speaker 1: if you want to get back to where we were, um,
Speaker 1: you want to not have restrictions in place, just do
Speaker 1: simple things. Wear a mask, you know, use common sense
Speaker 1: about gatherings and social distancing, and uh, wash your hands.
Speaker 1: Because we have such good news about vaccines right now
Speaker 1: that um, you know, we can have a much different
Speaker 1: summer if we really work hard this winter. Hey, so, Brian,
Speaker 1: one thing and before we move on to kind of
Speaker 1: talking about a vaccine and the rollout of that, is
Speaker 1: the types of COVID patients that you're seeing. It does
Speaker 1: sound like it's not as severe, but are you seeing
Speaker 1: a lot of long um of covid um long haulers.
Speaker 1: I'm just curious what you're seeing in the demographics of
Speaker 1: who's getting the virus. Has any of that changed. Yeah,
Speaker 1: we're seeing um uh a much younger population UM testing
Speaker 1: positive right now, and um, you know, we're seeing fewer
Speaker 1: patients go into the hospital. But your point about what
Speaker 1: happens afterwards is an important one. We've opened something in
Speaker 1: Atlantic called the Covidcovery Center, and we've had that open
Speaker 1: for about two months now, and what we're trying to
Speaker 1: do is to create a medical home for these patients
Speaker 1: who can't seem to shake some of the impacts of
Speaker 1: this virus. So I'll give you a quick example. We've
Speaker 1: got some young UH patients who are seemingly doing well, um,
Speaker 1: but when they exert themselves in any manner, their their
Speaker 1: oxygen levels just dropped dramatically, and UM. We can't figure
Speaker 1: out why. Um. And we're trying to understand that. The
Speaker 1: same thing with this concept of brain fog. We've got
Speaker 1: so many patients that just don't feel right and UH
Speaker 1: are are suffering from that. So this is turning into
Speaker 1: a real chronic disease. And one of the things when
Speaker 1: I when I talk about this, particularly to younger folks
Speaker 1: who think that their bulletproof on this, is that this
Speaker 1: is a very difficult virus. And while you may not,
Speaker 1: um see the dramatic impacts on you like we saw
Speaker 1: in New York and New Jersey and the spring fentile
Speaker 1: at and everything like that, this is still something that
Speaker 1: you have to take very seriously, and we're hoping to
Speaker 1: get that message across. But in the meantime, we've created
Speaker 1: a service that we think will be a medical home
Speaker 1: for patients who really are taking this on as a
Speaker 1: chronic disease. Now, yeah, I don't know if any of
Speaker 1: you have seen. I think it was at sixty minutes
Speaker 1: at a piece on some of the long haulers and
Speaker 1: it was, you know, one was a runner and it's
Speaker 1: just young people and just their life has been you know,
Speaker 1: turned upside down and it's devastating that couldn't walk. So
Speaker 1: it's it is definitely something that has to be taken seriously.
Speaker 1: It's something that just affects everybody differently exactly you get it,
Speaker 1: you don't know how it's going to affect you, and
Speaker 1: that's something we all need to keep in mind. Um, Brian,
Speaker 1: I want to talk about the vaccine and how you're
Speaker 1: planning on rolling it out and distributing it once it
Speaker 1: becomes widely available. How do you do that at Atlantic
Speaker 1: Health System? So, Um, we've had planning underway for the
Speaker 1: last several months to make sure that as soon as
Speaker 1: we are able to, we will get this vaccine in
Speaker 1: people's arms because the development of the vaccine had has
Speaker 1: been nothing short of remarkable because what we the government
Speaker 1: has been able to do is to hedge companies financial
Speaker 1: bets on this vaccine and allow them to follow the
Speaker 1: science and get it done safely, but at the same
Speaker 1: time begin production on these. So we're going to start
Speaker 1: to see, assuming UH this moves forward like we expect
Speaker 1: this week and over the next couple of weeks, vaccines
Speaker 1: being sent to each of the states and then UM
Speaker 1: being delivered to sites like our Atlantic health hospitals UM,
Speaker 1: and then we have plans to UH to get those
Speaker 1: into the arms of people, and that's going to be
Speaker 1: the real challenge. We're gonna have to set priorities at
Speaker 1: the beginning, and so we're looking forward to the guidance
Speaker 1: that we're going to get from the government this week
Speaker 1: UM states to put together plans, but generally it seems
Speaker 1: like it's gonna be health care workers first, and we
Speaker 1: think that that's really important, and then working on people
Speaker 1: who have other vulnerabilities and people who are older because
Speaker 1: the goal here is to obviously get as much vacccine
Speaker 1: out into the general public. Right probably the middle of
Speaker 1: the year. Uh, and that's going to be important, but
Speaker 1: the key thing is people having confidence in taking it. Yeah, no,
Speaker 1: I know. I think the CDC right, I think they're
Speaker 1: voting actually today on who will be first in line
Speaker 1: for a vaccine, so we we will be looking out
Speaker 1: for that headline. Hey, Brian, thank you so much. I
Speaker 1: know your world is crazy and you're so kind to
Speaker 1: always find some time for us. So stay safe and
Speaker 1: we wish you well and I'm sure we'll be checking
Speaker 1: in again with you over the next couple of months.
Speaker 1: Brian Granue Lotty, Chief executive Officer Atlantic Health System, on
Speaker 1: the phone from Morristown, New Jersey. This is Bloomberg Business
Speaker 1: Week with Carol Masser from Bloomberg Radio. Listening to Bloomberg
Speaker 1: Business Week Carol Masser along with Tim Stanovic, and we
Speaker 1: know running a political campaign, it's about fundraising, it's about
Speaker 1: getting voters, it's about building infrastructure and support. It's also
Speaker 1: about building out campaign technology, which we know is critical
Speaker 1: for Donald true Up and the Republicans back in twenties
Speaker 1: sixteen and for the Democrats this past November. So let's
Speaker 1: get into a great story in the magazine. It's about
Speaker 1: the digital machine that Democrats need to keep winning. Bloomberg
Speaker 1: Business Bloomberg business Week national correspondent Josh Green excuse me,
Speaker 1: is joining us. He's on the phone in DC, along
Speaker 1: with Bloomberg Business Week editor Joel Webber on the access
Speaker 1: line in Brooklyn. Um, Joel, this is an interesting story.
Speaker 1: I mean technology, we saw the Republicans use it. Now
Speaker 1: it seems like Democrats have figured it out. Yeah. And
Speaker 1: who better than to write about to write about the
Speaker 1: story than you know, our great m and a reporter
Speaker 1: Josh Green, who also headed to the Yeah, exactly. He's multifaceted,
Speaker 1: that Josh Green. Um. But that was sort of the
Speaker 1: root of it because he had done a story for
Speaker 1: the magazine in twenty seventeen about mobilized America. Um. But
Speaker 1: the biggest theme here is not only that marriage that
Speaker 1: I'm sure he's going to talk about in a second.
Speaker 1: But you know, there's a there's a line in the
Speaker 1: story where in today's story where he yesterday story where
Speaker 1: he throws back to the Obama momentum back when Obama
Speaker 1: was re elected and sort of the the tech um
Speaker 1: prowess that was was bestowed upon Democrats and then but
Speaker 1: you know, there was there was one thing that was missing,
Speaker 1: which is it didn't have any lasting ability. And what
Speaker 1: Josh has found here is that, you know, we're beginning
Speaker 1: to see a marriage here that may be able to
Speaker 1: become something of a machine. How about that, Josh? Can
Speaker 1: I can I just take every word out of your
Speaker 1: reporting for myself, but over to you for more M
Speaker 1: and A. I'd like to ide them. I think this
Speaker 1: might be the first M and A I've ever reported,
Speaker 1: So let's let's put a toy. The reason that I
Speaker 1: was prompted to report on an M, M and A
Speaker 1: for the first time in my like ten plus years
Speaker 1: blober career was that, as you said, I wrote about
Speaker 1: one of these companies back into late seventeen because they
Speaker 1: were a start up by a couple of young millennials
Speaker 1: which appalled that Donald's they gotten elected of Democrats couldn't
Speaker 1: beat him, and so they wanted to develop new political
Speaker 1: technology to reach the kind of voters authority plant couldn't
Speaker 1: reach and hadn't turned out. Um you know, so so
Speaker 1: they called me up actually a couple of weeks ago
Speaker 1: and said, hey, you know, we've built our company into
Speaker 1: a hundred plush people were now going to merge with
Speaker 1: a big Democratic tech company called every Action they were
Speaker 1: being acquired UM. But to me, the evolution of this
Speaker 1: company and its acquisition was really emblematic of something I
Speaker 1: think was really important in this last election. Hasn't gotten
Speaker 1: enough attention because Democrats rightly spent the months since since
Speaker 1: Trump was defeated kind of bickering and shooting at each other,
Speaker 1: which I think is taken away from UM. What I
Speaker 1: talked about in the lead to this piece was that
Speaker 1: the Democrats organizing and fundraising prowess, driven by this kind
Speaker 1: of political technology just produced more than any billion votes
Speaker 1: for jo Blinden in any hope that Democrats have of
Speaker 1: of broadening their verning coalition and winning racist in the
Speaker 1: mid terms, and that sort of thing is going to
Speaker 1: depend on this machine that was built. And the fact
Speaker 1: that these two political technology companies are coming together and
Speaker 1: joining means that Democrats organizing and tech abilities are going
Speaker 1: to grow even larger now. As Joel alluded to, UM,
Speaker 1: Democrats were plagued for years and years and years, even
Speaker 1: when Obama was winning. They were plagued by a fundamental
Speaker 1: structural shortcoming in the way that they did politics, and
Speaker 1: that was that every time you had a big presidential
Speaker 1: campaign like Obama come along, he actually had to build
Speaker 1: his own technology internally, They had to kind of start
Speaker 1: from scratch. You know. It's like getting a job at Bloomberg,
Speaker 1: but in order to get there, I have to like
Speaker 1: build my own car to to sort of drive. I mean,
Speaker 1: one of these problems where when you step back and
Speaker 1: look at it from somebody outside politics, it seems sort
Speaker 1: of absurd that nobody thought to fix this earlier. But
Speaker 1: this was a big problem. Obama built a big techno operation.
Speaker 1: As soon as this campaign ended, it all dissolved and
Speaker 1: went away, you know, and Hillary had to start from scratch.
Speaker 1: So what these companies done is basically take the technology,
Speaker 1: building outside campaigns that can grow and exist and innovate
Speaker 1: UM beyond a single campaign cycle. I think the fact
Speaker 1: that Democrats turned out eighty million votes even while they
Speaker 1: didn't achieve all they wanted to, shows how powerful this
Speaker 1: was and how powerful they can be moving forward. So, Josh,
Speaker 1: I mean you described this as a salesforce like platform
Speaker 1: for liberal campaigns and causes UM and the company mobilized.
Speaker 1: When these two companies together, I mean, what is the
Speaker 1: actual technology that they have? What are they able to
Speaker 1: do now, well, they do a lot of things. It's
Speaker 1: interesting about Mobilize, which I first wrote about, was they
Speaker 1: looked at Hillary's loss and they all, right, she performed
Speaker 1: really badly among millennials and really badly among black voters
Speaker 1: compared to Obama. Why And what they figured out was
Speaker 1: that the traditional ways of organizing you get a list
Speaker 1: on a piece of paper, you go out and you
Speaker 1: knock on doors, didn't really reach those populations, either because
Speaker 1: you know, they're transient like millennials, or they move around
Speaker 1: a lot. And so they thought that, well, look, the
Speaker 1: one way to reach everybody. Everybody has a cell from now,
Speaker 1: whether you're young, old, black, white, Um. They built the
Speaker 1: technology through an app, and this is something that's scaled
Speaker 1: and they tested it out in I wrote a big
Speaker 1: feature for Business Week about how they were doing in
Speaker 1: the Virginia off your elections. That worked wonderfully, and the
Speaker 1: Party do its credit, recognized this and spread it all
Speaker 1: across the country in the mid term election. Uh. In
Speaker 1: the midterm races which Democrats won handily. UH. I think
Speaker 1: twenty of the something like twenty six Democratic presidential candidates
Speaker 1: from this past cycle used the technology. So what it
Speaker 1: really is. You know, one of the founders described it
Speaker 1: to me as an engagement funnel. You know, it takes
Speaker 1: you have all these sort of hyper excited new to
Speaker 1: politics activists who people were out in the Women's March
Speaker 1: U doing March for Our Lives, not necessarily things that
Speaker 1: will campaign related, but suddenly they're inspired and they want
Speaker 1: to get involved. These apps in this technology helps funnel
Speaker 1: that initiative, that eagerness to participate, and connects them with
Speaker 1: a local campaign that can actually use their help. That's
Speaker 1: really what we saw with Joe Biden's campaign, the fact
Speaker 1: that Biden really was kind of in his basement, he
Speaker 1: wasn't out their campaigning, and yet through this use of
Speaker 1: technology and being able to kind of connect people, they
Speaker 1: managed to turn out eighty million votes and help Buyden
Speaker 1: to defeat Trump. I think that's a critical piece of
Speaker 1: technological evolution that's going to be important going forward for
Speaker 1: both parties, but especially for Democrats. So Josh, let's spend
Speaker 1: this forward. We've got, you know, Georgia Senate race here
Speaker 1: on the horizon. After that, we're gonna have some mid terms,
Speaker 1: Like when are we gonna see sort of the fruits
Speaker 1: of this marriage and and how are we going to
Speaker 1: be evaluating them? And just got about a minute, Josh,
Speaker 1: you I think I think we're already sing on your
Speaker 1: people on the grandom. There's lots of volunteers. I was
Speaker 1: talking to one of the Mobilized founders who said that
Speaker 1: the engagement the the volunteer engagement around the Georgia Senate
Speaker 1: races is even higher than it was in the midterm
Speaker 1: elections in twenty eighteen. On the other hand, Republicans have
Speaker 1: their biggest engagement driver, and that's Donald Trump, and it
Speaker 1: sounds like he's gonna be heading down there in the
Speaker 1: next week. UM. So you know, both sides this won't
Speaker 1: come as news to anybody, but both sides are just
Speaker 1: trying to turn out every single vote they can because
Speaker 1: it looks like a very close pair of elections. I
Speaker 1: think if Democrats are able to rekindle the outpouring that
Speaker 1: Joe Biden received, they're going to be a pretty good shape.
Speaker 1: We just don't know yet whether Democrats can win um
Speaker 1: or excite people Trump not on the top of the ticket.
Speaker 1: We're gonna find out on all right, Well, good stuff
Speaker 1: as always, Josh, Thank you so much. Who knew political
Speaker 1: m and a reporter also Bloomberg Business Week national correspondent.
Speaker 1: Do it. He can do it all. Josh Green. Anything
Speaker 1: you want to ever know about politics and the campaign
Speaker 1: trail Man, You've just got to read Josh's stuff. Of course,
Speaker 1: author of the book that explains the election outcome. We're
Speaker 1: talking about Devil's bargain. Steve Bannon, Donald Trump of the
Speaker 1: Nationalist Uprising. Josh of course on the phone from DC
Speaker 1: and Bloomberg Business we get it. Or Deel Webber on
Speaker 1: the access line in Brooklyn sees Bloomberg Business Week with
Speaker 1: kirol Messer on Bloomberg Radio for Secretary of Treasury. I
Speaker 1: am really pleased to be able to nominate Janet Yelling.
Speaker 1: No one is better prepared to deal with these crisis.
Speaker 1: I wish it weren't as much of a crisis future secretary.
Speaker 1: And of course that was President like Joe Biden just
Speaker 1: earlier today nominating Janet Yellen, former Fed chief, to be
Speaker 1: the next Treasury secretary. And I really do think this
Speaker 1: Biden economic team, tim is really one of our top
Speaker 1: stories at the day, and certainly at this hour. Yeah,
Speaker 1: it is. It's it's a lot of first Not only
Speaker 1: does it include yelling, of course, but near Tandon as well,
Speaker 1: and if she would be confirmed, she would have a
Speaker 1: lot of first to go along with her as well.
Speaker 1: And it's I think exciting to see for a lot
Speaker 1: of people because President like Biden has said he wants
Speaker 1: his cabinet to look like America, and it seems like
Speaker 1: he's making good on that promise. Yeah. Really when he
Speaker 1: was announcing all the people very very diverse. Let's get
Speaker 1: some thoughts from our Bloomberg News Politics editor Wendy Benjaminson.
Speaker 1: She is back with us on the phone from Washington. So, Wendy,
Speaker 1: I mean it really does look like in general, and
Speaker 1: certainly with this economic team that Joe Biden is thinking
Speaker 1: about uh diversity and thinking about what America looks like
Speaker 1: and what his team meets to look like. Yes, absolutely, Carol,
Speaker 1: I mean he is, um, he is making a point
Speaker 1: about them being diverse. He is certainly showing them to
Speaker 1: be diverse. And there are many many first as as
Speaker 1: you said, you know, um. Janet Yellen would be the
Speaker 1: first female Treasury secretary. Cecilia Roused would be the first
Speaker 1: African American to head the Council of Economic Advisors. Near
Speaker 1: a tandem is an Indian American who would leave the
Speaker 1: Office of Management and Budget, although women have led that
Speaker 1: office before. UM, So it's um so he really is
Speaker 1: working on that now. There are some UM Representative Jim
Speaker 1: Clyburne from South Carolina who feels that there aren't enough
Speaker 1: African Americans being selected yet, but there's still a lot
Speaker 1: of names to go and we'll see where that leads.
Speaker 1: When do you want to hit on your attendant for
Speaker 1: a second, because it does seem like if there is
Speaker 1: one person here who is seeming to get a lot
Speaker 1: of flak from both the right and the left, it's
Speaker 1: it's her, And I'm wondering what the chances are of
Speaker 1: her being thrown in there, um because the Biden team
Speaker 1: needs someone not to be confirmed, someone to be protected
Speaker 1: by Republicans right there. Well, you know, as the Biden team,
Speaker 1: of course, they are one thousand percent behind her and
Speaker 1: they did not want a shirk from nominating someone they
Speaker 1: believed to be highly qualified, even though she has irritated
Speaker 1: Republicans um to no end, and the highest second highest
Speaker 1: ranking Senator, John Poone today said, you know pretty much
Speaker 1: it's not going to happen, and um, the Lindsey Graham,
Speaker 1: who said who chairs the Budget Committee, which would have
Speaker 1: to first confirm the director of the Office of Management
Speaker 1: and Budget um said it's going to be a real
Speaker 1: uphelp climb for her. But their reasoning is not that
Speaker 1: she's not qualified. Um, it's not anything else. It's that
Speaker 1: she has tweeted insulting things at Republicans. O. There's and
Speaker 1: I think anyone who's been on earth for the last
Speaker 1: year does that? Does that a bit? Yeah? Right, I'm
Speaker 1: just gonna say it is right, Carol, And we're parents.
Speaker 1: So I do wonder though, is I mean, I mean,
Speaker 1: is there somebody on this list who you thinks better
Speaker 1: chances or worst chances of getting past Republicans If Mitch
Speaker 1: McConnell Republicans hold on to the Senate, right, Well, I
Speaker 1: do think Janet Yellen will have almost no problem getting confirmed. Um.
Speaker 1: You know, she was confirmed to be FED chair by
Speaker 1: a Republican Senate and senators really don't like to admit
Speaker 1: they're ever wrong. So if they confirmed her, one self
Speaker 1: confirmed her again. Um. And uh, and you know she's
Speaker 1: well respected. Her politics may not agree with their politics,
Speaker 1: but there's no question she's respected. She's topping you know,
Speaker 1: I just don't see that one happening. You're tandon maybe
Speaker 1: the one that gets tossed back. She is the only
Speaker 1: one so far that everybody has said hold of and
Speaker 1: this may not work. So she's really that's going to
Speaker 1: be the fight to see if Biden decides it's really
Speaker 1: really worth it to have that fight, and he may.
Speaker 1: You know, I just want to mention, you know, a
Speaker 1: couple of headlines uh that have crossed, um, the Bloomberg terminal,
Speaker 1: Bill Barr, you know, saying that the Department of Justice
Speaker 1: hasn't uncovered widespread voting fraud. I just find it fascinating
Speaker 1: that these kind of headlines are still crossing. And then
Speaker 1: we've got you know, the president elect putting together his team.
Speaker 1: I mean, it's just how do you make sense? Continue
Speaker 1: to make sense? Wendy Andy's kind of two Washington's right
Speaker 1: now exactly. Well, I think it's one Washington and tender
Speaker 1: or another Washington. I think really there's one person in
Speaker 1: town who believes that Donald Trump won the election. That's
Speaker 1: Donald Trump. Um the I mean his own attorney general,
Speaker 1: as you said today, said he'd seen no evidence of
Speaker 1: election frauduct to a to an extent that would change
Speaker 1: the results of the election. Bill Barr did just leave
Speaker 1: the White House. We're waiting to find out if he
Speaker 1: left with his job or he left, you know, to
Speaker 1: carry a gardenboard box out of the Justice Department. We
Speaker 1: don't know yet. Um, we don't know. But um. But
Speaker 1: Trump's lawyer Rudy Giuliani came back and said, well, Bar
Speaker 1: doesn't know what he's talking about. We have tons of
Speaker 1: evidence and he won't look at it, and um, that
Speaker 1: sort of thing. So no, I mean, everyone, even these
Speaker 1: the senators I was just talking about, are talking about
Speaker 1: confirming Biden's picks, even though they will not call him
Speaker 1: the president elect or acknowledge that he won the election.
Speaker 1: So that's that's where we are right now. Yeah, and
Speaker 1: and Wendy, we are seeing another headline cross the Bloomberg
Speaker 1: from the Associated Press that says that bar has appointed
Speaker 1: Durham Special Council to keep investigating the Russia prope origins
Speaker 1: under the new administration. What are the implications of this
Speaker 1: for for President elect Biden and when he becomes President
Speaker 1: Biden in January. Well, this is a big decision President
Speaker 1: elect Biden will have to make and his administration, and
Speaker 1: we should watch very carefully who he chooses as attorney
Speaker 1: general as a signal to where that decision will go.
Speaker 1: Does he want to spend the next four years relitigating
Speaker 1: the Russia probe, the Trump you know, and everything that
Speaker 1: Democrats feel the Trump administration did wrong and and invest
Speaker 1: to gage your political opponents, which is always sort of
Speaker 1: anathema and American politic that used to be. And or
Speaker 1: does he want to, as he said throughout the campaign,
Speaker 1: healed the country, unify the country, and move forward, focusing
Speaker 1: on the economic recovery and getting us all past the pandemic.
Speaker 1: So I think, you know, there was talk that someone
Speaker 1: like pre Perrara, who used to be the U S.
Speaker 1: Attorney in the Southern District of New York, might be
Speaker 1: the attorney general. Not so much anymore, which does signal
Speaker 1: that maybe he doesn't want to, you know, spend the
Speaker 1: next four years investigating Donald Trump. It's fascinating my understanding
Speaker 1: just reading the ap right through. I guess bars saying
Speaker 1: that during investigation narrowing to focus more on the conduct
Speaker 1: of FBI agents who had worked on that Russia investigation.
Speaker 1: So it is kind of fascinating to see that that
Speaker 1: could cold, cold could continue excuse me into the next administration. Um, Wendy, Wendy,
Speaker 1: thank you so much, really appreciate it. Wendy Benjaminson, she's
Speaker 1: Politics editor Bloomberg News, joining us on the phone from Washington,
Speaker 1: d C. That will be fascinating if it carries over
Speaker 1: right to bid Biden administration. Yeah. I have serious choices
Speaker 1: to make about whether he wants to end it or
Speaker 1: keep it going, because their implications for both. Yeah, exactly,
Speaker 1: And I do get the feeling he wants to move forward,
Speaker 1: so we shall see roc journal. Yeah, but you let
Speaker 1: me drive. Oh no, no, nor home, honey, please, I'll
Speaker 1: do the riding drivel. I want to drive, just drive
Speaker 1: by the question trying. This is the drive to the globe.
Speaker 1: Give me thanks, we'll drive us to dawn on Bloomberg Radio. Yes. Indeed,
Speaker 1: just about eleven minutes left to go in the Tuesday trade.
Speaker 1: It is time for the drive to the clothes. Nice
Speaker 1: to wall come. Sarah Malock. She is head of Global Equities,
Speaker 1: Chief Investment Officer of Global Equities over at Nuvine. They've
Speaker 1: got roughly one point one trillion in assets under management,
Speaker 1: and she's joining us on the phone from San Francisco. Sarett.
Speaker 1: Nice to have you here with Tim and myself. Um,
Speaker 1: let's talk a little bit about what we're seeing in
Speaker 1: the markets, because it does feel like there's some enthusiasms,
Speaker 1: some risk on once again back in the trade. What
Speaker 1: do you make of it? We think that the market
Speaker 1: basically is setting up for a return to normal. We
Speaker 1: have a nice set up for once for past some
Speaker 1: of these near term bumped in the road, you know,
Speaker 1: the elections behind us. We like we have a divided
Speaker 1: government which is market friendly. We have a vaccine coming,
Speaker 1: potential stimulus, low interest rates, low inflation. All of that's
Speaker 1: very good. We do think will be a focus on
Speaker 1: earnings growth. So was about valuations expanding and driving the
Speaker 1: market is going to be about earnings growth driving the markets. Now.
Speaker 1: In the meantime, we do have concerns. Obviously, we have
Speaker 1: a huge spike in the virus and we're seeing some
Speaker 1: not a shutdown. So the next few months are going
Speaker 1: to be bumpy, but we're setting up for a nice
Speaker 1: period past that time. Sarah, we'll talk about that in
Speaker 1: just a second. But I'm singing your bio right now.
Speaker 1: That you went to cal Poly in San Luis Obispo,
Speaker 1: that's where I'm from, so it's great to talk to
Speaker 1: a fellow former resident of San Luis Obispo. It's a
Speaker 1: fantastic place. Yeah, go Mustang's exactly. I grew up going
Speaker 1: to those soccer and basketball games when I was a kid.
Speaker 1: It was so much fun. What do these next two
Speaker 1: months look like? These bumpy two months? If you know
Speaker 1: we have potentially the president is not going to concede,
Speaker 1: We have no idea if he will go to the inauguration?
Speaker 1: Do markets care about that? I think that's more noise
Speaker 1: because the markets, do you realize that we will get
Speaker 1: through that? The main concern for us over the next
Speaker 1: couple of months, or really how bad is the economic slowdown?
Speaker 1: Because that resets the bar that we recover from. So
Speaker 1: how low does that bargo before we finally have that reopening,
Speaker 1: And that, of course depends on how this virus continues
Speaker 1: to go. Now, there could be some upside if we
Speaker 1: got did me list during the lame duck session, but
Speaker 1: our view right now is that you likely don't get
Speaker 1: that until the first quarter. So definitely a rocky couple
Speaker 1: of months and the market will stay volatile around that
Speaker 1: kind of information coming out. Well, you know, Oh good,
Speaker 1: did you say, Oh San Francisco, how does it feel
Speaker 1: right now with the virus? Definitely quiet, you know, it's
Speaker 1: definitely California is having a lot of issues. San Francisco
Speaker 1: is slowing down. We moved back to the purpose here.
Speaker 1: Things are closing again, so you know, starting you feel
Speaker 1: a lot more like March and April around here. So
Speaker 1: as an investor, yeah, I mean I do feel like
Speaker 1: we understand a vaccine is coming right, We can at
Speaker 1: this point get a little bit of a timeline and
Speaker 1: understand maybe maybe we're back to normal by late spring,
Speaker 1: maybe by summer. Um Having said that, how do you
Speaker 1: play the market at this point? We constantly talk about rotation?
Speaker 1: But again tech was interesting again this you know, on
Speaker 1: this Tuesday, So I'm wondering how you see it, especially
Speaker 1: from a global perspective. I mean, November was an interesting
Speaker 1: month because the markets up about double digits for the month.
Speaker 1: So really we expect the market most likely to take
Speaker 1: a breather as we go through this volatility, and we're
Speaker 1: less about the rotation at this point. Cyclicals have had
Speaker 1: such a nice rally. We know growth stocks are very crowded.
Speaker 1: They gave back a bit, we're most more focused on
Speaker 1: more of a mild risk on environment and focusing on earning.
Speaker 1: So it's not we think it'll be less about is
Speaker 1: a growth as it cyclicals? Which one do you want
Speaker 1: to own? It's about owning those companies in any of
Speaker 1: those areas that can have strong earnings growth, So areas
Speaker 1: like healthcare where the elections behind you as a yield
Speaker 1: curve starts to gradually steep, and are their financials that
Speaker 1: we like? And in growth and technology sectors, which ones
Speaker 1: look more attractive, like Google looks more attractive maybe than
Speaker 1: Amazon because Google has not had the run that Amazon
Speaker 1: had this year, So being more selective within the sectors
Speaker 1: rather than making that larger macro trade or do I
Speaker 1: want to be in growth or do I want to
Speaker 1: be in value? Syroly and I were talking about Airbnb
Speaker 1: just a few minutes ago and just the massive number
Speaker 1: of I p o s that we've seen this year,
Speaker 1: and the way that December is shaping up to just
Speaker 1: be the end of a huge year for I p
Speaker 1: o s. Why are so many companies right now saying
Speaker 1: this is the right time to raise money? I mean,
Speaker 1: I think you know, the markets have been strong you know,
Speaker 1: companies like Airbnb obviously had their own secular tail winds. Um.
Speaker 1: You know, those could accelerate as more people feel comfortable
Speaker 1: thing and houses going forward as they travel and the
Speaker 1: way that we travel changes over time. You know. I
Speaker 1: think access to capital within with low interest rates has
Speaker 1: just been interesting in general in terms of m and
Speaker 1: A UM and death that companies are taking on. So
Speaker 1: I just think there's a lot of capital coming into
Speaker 1: companies all that's very positive, especially with the market returns
Speaker 1: that we've seen here today. So I you know, I
Speaker 1: don't know how much you guys talk about this, Sarah,
Speaker 1: but the disconnect between Main Street and Wall Street, and
Speaker 1: you know, Timura and I were talking about it off
Speaker 1: air that it really just feel like the small business community,
Speaker 1: the midsize business community has been left behind. And I
Speaker 1: know a lot of that isn't publicly held, UM, but
Speaker 1: we talked about it being the backbone of the economy.
Speaker 1: How many dis suestions do you guys have a new vene?
Speaker 1: We're seeing this disconnect between people who feel okay if
Speaker 1: they're in the markets or other asset classes versus those
Speaker 1: who are not but are really important to certainly our
Speaker 1: society and our economy overall, and what that means potentially
Speaker 1: going forward. I would say that's a bigger discussion almost
Speaker 1: on main street, so I hear more about that from
Speaker 1: individuals who are investors and clients who are who are concerned. Internally,
Speaker 1: our view is been that this recession was an event
Speaker 1: driven and if you look at history, they tend to
Speaker 1: be deep and short lived and have these pretty fast rebounds,
Speaker 1: which is what we saw because it's based around one event,
Speaker 1: which was a COVID nineteen. Once we start to see
Speaker 1: a path out of that, the market tends to rebound
Speaker 1: quite quickly. I think in the small business space, we're
Speaker 1: actually big fans of small caps as public companies because
Speaker 1: they were pretty recently at about two decade lows in
Speaker 1: terms of valuation, but we think they'll have a lot
Speaker 1: of operating leverage coming out of this cycle. So we
Speaker 1: do like small companies, but we do think that things
Speaker 1: are going to change in terms of which one is
Speaker 1: our success and which ones are the survivors, and even
Speaker 1: new industries that may pop up because of what's happened
Speaker 1: in this pandemic. But it definitely is a concern and
Speaker 1: all that cash that's on the sidelines. A lot of
Speaker 1: people less the market and march out of fear, and
Speaker 1: now they're having trouble trying to figure out how to
Speaker 1: get into the market. And that's why most of these
Speaker 1: down drafts you see people buying on the dips as
Speaker 1: they're trying to get back into equity. Sarah'm eager to
Speaker 1: get your take on Biden's economic team and what the
Speaker 1: market is saying about it. We saw today that he's
Speaker 1: officially nominated near a tandin for OMP Wally Damo for
Speaker 1: Deputy treasure Secretary, and of course for Treasury Secretary Janet Yelling. Um,
Speaker 1: what do investors think? And just kind of about forty seconds. Yeah,
Speaker 1: the investors basically have been pretty positive so far on it.
Speaker 1: That Janet Yelling is fairly market friendly, regulatory friendly, and
Speaker 1: so I think people like this economic team. It's more
Speaker 1: moderated in the middle and that should again and be
Speaker 1: a positive and less noisy for the market. Alright, good stuff,
Speaker 1: Thank you so much, really appreciate it. Sarah Malic, a
Speaker 1: head of Global Equities ever at Navine one point one
Speaker 1: trillion in assets under management, on the phone from San Francisco. Yeah,
Speaker 1: go Mustangs, Go Mustangs. It'd be nice to be in California,
Speaker 1: and it would be do you go back there much
Speaker 1: I used to? I mean, this will be the first
Speaker 1: Christmas that we don't go back in a long time.
Speaker 1: Will you get back there? Will be in this summer.
Speaker 1: Thanks so much for listening to Bloomberg Business Week. Download
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