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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the

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Speaker 1: or watch us live on YouTube.

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Speaker 2: Joining us speaking of is George Ferguson. He's senior Aerospace,

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Speaker 2: Defense and Airlines analyst at Bloomberg Intelligence, and he joins

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Speaker 2: us from Princeton, New York, OURVII headquarters over there in

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Speaker 2: New Jersey.

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Speaker 3: What did I say, Princeton, New York?

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Speaker 4: I did?

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Speaker 3: Yeah, sorry, coffee, coffee.

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Speaker 5: I haven't had that second cup because it was delayed.

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Speaker 5: I'll get you.

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Speaker 2: Well, the eleven o'clock hour will be a good hour

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Speaker 2: for me. So Boeing is having a lot of issues.

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Speaker 2: The CEO will be facing leaders in Congress today. There

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Speaker 2: was also Later's whistleblower report that alleged to the planemaker

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Speaker 2: mishandled and lost track of hundreds of faulty parts, some

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Speaker 2: of which had been in may have been installed in

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Speaker 2: some new seven thirty seven Max planes. George, Well, okay,

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Speaker 2: there's so many questions, but what is Dave Calhoun today

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Speaker 2: going to face from Congress and then in the light

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Speaker 2: of these consistent whistleblower claims.

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Speaker 6: So my guess is that what Dave Calhoun's going to

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Speaker 6: say today's going to stick to the script. He's going

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Speaker 6: to say they're working on fixing all these problems. He'll

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Speaker 6: probably you know, not be able to confirm or deny

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Speaker 6: sort of individual reports. We saw the report come out,

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Speaker 6: you know, the Boeing They gave us a summary of

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Speaker 6: what they provided to the FAA and their action plan,

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Speaker 6: you know, for improving the production process. It included things like,

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Speaker 6: you know, making sure they appropriately tracked faulty parts and

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Speaker 6: didn't put them in airplanes. So my guess is there

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Speaker 6: were some situations where this was a problem. But again,

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Speaker 6: I think he's not going to give a lot of

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Speaker 6: specifics today in front of Congress. I think it's he'll

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Speaker 6: stick to the script, is a plan out to fix it,

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Speaker 6: and they'll say, we got the plan and we're going

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Speaker 6: to drive on that plan.

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Speaker 3: Hey, George, I know from speaking to you in the

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Speaker 3: past and reading some of your research, one of the

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Speaker 3: challenges as it relates to quality is outsourcing. You know,

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Speaker 3: Boeing over the last number of years, ten twenty years,

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Speaker 3: is maybe outsource a little bit more of their production,

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Speaker 3: their parts and so on to third parties, and that

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Speaker 3: may be introducing some more risk into their process. How

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Speaker 3: are they talking about some of their outsourcing strategies.

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Speaker 6: So in that same report, right, they talk about inspections

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Speaker 6: at suppliers, they talk about monitoring quality at suppliers better.

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Speaker 7: Yeah.

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Speaker 6: I just think this is a it's a wholly different industry, right.

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Speaker 6: I think there's a bunch of people that have come

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Speaker 6: to the aerospace world from auto backgrounds and other mass

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Speaker 6: production backgrounds, right, And in those worlds, safety isn't as important.

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Speaker 6: Volume is a lot higher. You can get multiple suppliers

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Speaker 6: to provide products to your production line, you can work

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Speaker 6: cost on the suppliers, and I think that whole game

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Speaker 6: plan is really really difficult to do in aviation. And

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Speaker 6: I think this is part of what we're seeing. Right.

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Speaker 6: I think you can outsource, but I think if you outsource,

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Speaker 6: you know, you know, to your supplier base, I think

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Speaker 6: it's still got to be you know, a pretty strong

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Speaker 6: relationship with them, not a combative relationship where it's always

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Speaker 6: about price, because it really matters the quality you get

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Speaker 6: to your line right, safety is dependent upon it. And

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Speaker 6: so I think what we're finding out as this sort

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Speaker 6: of you know, whole Boeing saga unravels, is outsourcing and

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Speaker 6: banging up your suppliers for price just isn't a winning

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Speaker 6: strategy in aviation.

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Speaker 5: Can have they course corrected enough? Or can they so?

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Speaker 6: Look, I think they can. Everything can be fixed. I

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Speaker 6: think if you look at their competitors across the pond, Airbus,

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Speaker 6: they're not having these problems. I think Airbus has been

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Speaker 6: less combative with some of their suppliers. They're in the

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Speaker 6: middle of this correction. We know they want to buy

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Speaker 6: Spirit Aerosystems. We're still waiting to hear news on that.

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Speaker 6: There's still you know the challenge of getting some of

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Speaker 6: the other companies that Spirit supplies, to name the Airbus

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Speaker 6: probably out of the portfolio so they can recover. It's

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Speaker 6: gonna it's gonna take some time. Uh, and it's gonna

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Speaker 6: take a lot of work with our suppliers.

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Speaker 3: So, George, if I think about, you know, rethinking my

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Speaker 3: strategy with my suppliers and maybe focusing less on price

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Speaker 3: competitives maybe a little bit more on quality, does that

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Speaker 3: imply that Boeing's profit margins will be under pressure going forward.

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Speaker 6: Yeah, I mean, I think I think for sure, right,

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Speaker 6: I think you're you're not going to receive a return

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Speaker 6: to the Boeing margins you saw at the end of

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Speaker 6: last decade. I'm not gonna say ever, like in time,

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Speaker 6: perhaps they could get back to that, you know, but

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Speaker 6: I think it takes you know, it's it's gonna take

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Speaker 6: a bunch of work here near term to improve the quality,

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Speaker 6: and and that's going to cost money. Plus we already

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Speaker 6: know that some of the business they've put in the books, right,

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Speaker 6: they had some challenges delivering into China. That was kind

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Speaker 6: of the one two whammy after they had the grounding

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Speaker 6: of the Max and the crashes. We know they probably

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Speaker 6: sold a bunch of airplanes for some pretty good prices

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Speaker 6: to really core customers like United, like Southwest. So I

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Speaker 6: think that I think both, you know, both on the

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Speaker 6: cost side again, given this correction to improve the supply base,

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Speaker 6: improve production, get get capacity rolling again, as well as

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Speaker 6: some of the pricing they gave away on backfill for orders.

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Speaker 6: Means you're not looking at a Boeing that's going to

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Speaker 6: get those margins free through this decade.

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Speaker 2: I think if I look at Boeing stock, then I

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Speaker 2: mean it's down from December, it's down thirty four percent.

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Speaker 2: Does that accurately reflect then this tighter profit margin world

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Speaker 2: to sort of revamp and the course correcting that they

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Speaker 2: have to do.

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Speaker 6: So, you know, I think when you look at their valuations,

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Speaker 6: you know, their historical valuations, One, they're really high right now,

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Speaker 6: right because earnings are so low, you know, So I

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Speaker 6: think that there is a little bit of investor look

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Speaker 6: through at this point, you know, on the on the

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Speaker 6: on the current problems they have, you know, but the

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Speaker 6: sort of whether or not they're they're properly positioned for

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Speaker 6: the out years right now. I think it's all a

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Speaker 6: function of if they can you know, if they can

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Speaker 6: quickly improve the build rate so they can improve economies

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Speaker 6: of scale and start to get more profitability back into

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Speaker 6: this business, and that, you know, really remains to be seen.

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Speaker 3: George, you mentioned China. Where is Boeing in terms of

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Speaker 3: getting the seventy three seven max in the air and

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Speaker 3: China kind of how's that business looking in terms of

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Speaker 3: sales and deliveries.

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Speaker 6: So their deliveries going into China, right and uh, it

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Speaker 6: looks to us to largely be deliveries that were you know, built,

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Speaker 6: you know, when the seven three seven was grounded, and

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Speaker 6: they're starting to get some of those back into the country.

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Speaker 6: But China's also has this problem now with the flight

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Speaker 6: recorder that's been authorized by other jurisdictions, including the US.

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Speaker 6: So I mean it feels to me like China is

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Speaker 6: allowing deliveries, but they still, you know, they're still not

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Speaker 6: I don't know, maybe keen on taking a lot of

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Speaker 6: deliveries from Boeing. I haven't seen a bunch of orders

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Speaker 6: come in from China, you know, for Boeing. And so

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Speaker 6: I would say that relationship still, while it's maybe thawing

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Speaker 6: a bit, is nowhere near was it where it was

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Speaker 6: in the last decade. And they have their problems too.

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Speaker 6: Right now, I think they don't need as many airplanes,

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Speaker 6: their economy isn't growing as fast, air travel isn't growing

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Speaker 6: as fast. But I still think that relationship is not

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Speaker 6: in the right place where it should be, where you'd

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Speaker 6: like it to be. I think for Boeing.

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Speaker 2: Before I let you go any word yet on and

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Speaker 2: replacement for Dave Calhoun, Like, how's that going?

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Speaker 7: He laughed?

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Speaker 5: The answer is laughing.

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Speaker 6: Yes, what I hear from news reports is picking up steam.

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Speaker 6: But g I mean, I don't know, it's been a while.

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Speaker 6: There's a lot of conjecture. It's a hard job. There's

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Speaker 6: probably a lot of people that just aren't willing to

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Speaker 6: take it. I don't know, you know, they got to

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Speaker 6: the end of the year, and so maybe they're gonna

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Speaker 6: use it all. I don't know.

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Speaker 2: I mean, and anyone but Larry Cult that you keep

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Speaker 2: hearing about, that's for real.

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Speaker 6: So I don't really track the people that's you know,

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Speaker 6: that's kind of hard for me. I do know, like

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Speaker 6: it said, it's got to be a rock star manufacturing,

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Speaker 6: you know, sort of CEO. I don't know that there's

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Speaker 6: a lot of them left in America. I think we

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Speaker 6: do a lot of outsourcing now, so maybe that makes

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Speaker 6: it a taller order too. I don't know.

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Speaker 5: All right, Hey, Georgia really appreciate it.

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Speaker 2: George Ferguson, Bloomberg Intelligence senior Aerospace, Defense and Airlines analysts

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Speaker 2: joining us in Princeton, New Jersey.

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Speaker 5: Yes, who would have thunk? Yeah, it was a New

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Speaker 5: Jersey and.

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Speaker 3: You lovely home of hogi Haven, my favorite sandwich shop.

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Speaker 5: Also up on that.

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Speaker 3: Bowing down two percent today, down thirty three percent year

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Speaker 3: to date. You know, it just feels like a stock

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Speaker 3: No one wants to step in and really take a

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Speaker 3: big position here until you see real signs of our

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Speaker 3: turn around there, because it just feels like every day

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Speaker 3: there's something coming out.

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Speaker 2: And if you just time it out right, like say

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Speaker 2: they do take the rest of the year to get

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Speaker 2: a new CEO, like, let's just game that out for

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Speaker 2: a second, then the new CEO has to come in right.

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Speaker 2: Then it's a plan and it's going to be some

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Speaker 2: kind of restructuring plan in that, like how we're going

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Speaker 2: to manage the business, how we're dealing with suppliers. And

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Speaker 2: then if you they do wind up buying a Spirit Aerospace.

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Speaker 5: Then you got to integrate that. I mean that how

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Speaker 5: long a process is that?

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Speaker 7: Yep?

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Speaker 3: Exactly, So I mean and is there a value here

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Speaker 3: where it just says that I'm being compensated for that

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Speaker 3: risk and that time and I don't know, and it

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Speaker 3: just doesn't feel like it again. Stock down thirty three

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Speaker 3: percent year to date.

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Speaker 1: We're listening to the Bloomberg Intelligence podcast. Catch us live

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Speaker 1: Just say Alexa play Bloomberg eleven thirty.

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Speaker 2: All right, coming up, we're gonna talk to Jill Blanchard.

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Speaker 2: She is president of Enterprise Client Solutions at Abandoned Solutions,

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Speaker 2: and we're going to get the take here on retail sales.

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Speaker 2: So retail sales barely did anything, and the narrative here

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Speaker 2: is that the consumer is strained that they're going to

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Speaker 2: buy stuff, but they're going to buy it on sale.

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Speaker 5: The rub here is that.

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Speaker 2: This is mostly a goods report versus what we're going

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Speaker 2: to get when we get consumer spending a little later

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Speaker 2: in the month, where that might be actually a services reports.

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Speaker 2: There's still questions as to as to what the real

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Speaker 2: read through is for the consumer.

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Speaker 5: Jill, what are your thoughts?

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Speaker 4: Yes, so hello and thanks for having me back. Yeah,

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Speaker 4: you know, I think I'd lead off with one big word,

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Speaker 4: and that word is cumulative. And so the effect of inflation,

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Speaker 4: the slow rise and income the high interest rates are

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Speaker 4: really having finally a cumulative effect on the consumer and

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Speaker 4: it's a really big impact there's a big difference between

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Speaker 4: inflation and affordability as well as inflation and high prices,

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Speaker 4: and so as consumers tried to get used to high prices,

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Speaker 4: if wages aren't keeping pace and they're not, it creates

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Speaker 4: a pretty big gap and drives very different behaviors. So

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Speaker 4: you mentioned promotions before, consumers are really doing a lot

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Speaker 4: of different things. They're still spending, but they are price conscious,

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Speaker 4: they're creative, they're selective. They are and I'm just going

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Speaker 4: to walk through like a myriad of strategies. They're delaying purchases.

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Speaker 4: They're trading down, whether that's a brand or a retailer,

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Speaker 4: or a product or experience. They're shopping promotions, they're price

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Speaker 4: shopping across retailer somethind of that consolidated trip. They're going

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Speaker 4: to multiple retailers. They are cutting out or reducing discretionary spending.

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Speaker 4: They're looking for larger sized products that have a more

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Speaker 4: economical value. They are sharing bolt grocery shopping. Third of

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Speaker 4: consumers are now doing that. A quarter of consumers are

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Speaker 4: skilled big meals and buying unhealthier options because of high prices.

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Speaker 4: So it's a lot of different strategies that we're seeing

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Speaker 4: come to play.

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Speaker 3: When do I don't know if we have any data

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Speaker 3: back this up, are when do consumers get used to

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Speaker 3: this new price level?

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Speaker 5: Is it?

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Speaker 3: Because it seems like we've been here for a few years,

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Speaker 3: and you know, when do we get used to it?

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Speaker 7: Yeah?

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Speaker 4: That's interesting. So I'd say it's a tale of two

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Speaker 4: economies right now. And so at the macro level, we're

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Speaker 4: seeing in flaten now. But when you really get underneath that,

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Speaker 4: healthier income households, you know, are you know, do do

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Speaker 4: have a healthy spend? They're driving demand, but it's balanced

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Speaker 4: out by by low and mid income households that are

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Speaker 4: curbing their spending. Now that that does split spending, that's

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Speaker 4: a shift from what we've seen over the past couple

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Speaker 4: of years because spending was really fuel by pandemic era benefits,

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Speaker 4: stockpile savings, the cessation of student loan repayments, and rapid

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Speaker 4: wage increase, so a number of things that are either

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Speaker 4: reduced or actually illuminated now creating a bifurcation in spending

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Speaker 4: amongst income households.

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Speaker 2: When we take a look at the spending problem, how

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Speaker 2: do we understand it? Because slowing versus falling off a

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Speaker 2: Cliff are different and they're going to have different reaction

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Speaker 2: functions for the FED.

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Speaker 5: What's the best kind of description.

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Speaker 4: Slow? I mean nothing's going to happen fast, right, I say,

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Speaker 4: there's two things to consider, you know. One is spending

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Speaker 4: is never going to take a sharp turn in either direction.

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Speaker 4: It's going to slowly turn in either direction. And there

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Speaker 4: are multiple factors influencing that, you know, like the reduction

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Speaker 4: in the pandemic, arab benefits and stockpile savings as well

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Speaker 4: as you know, higher prices as well as a lower

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Speaker 4: wage increases right now, interest rates. So there's so many

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Speaker 4: things that really affect it. I think that we can,

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Speaker 4: you know, continue to expect to see things happen slowly

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Speaker 4: over time and not be surprised by what it is

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Speaker 4: that we're seeing today. It's it's been building to this

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Speaker 4: for for.

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Speaker 5: Many many months.

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Speaker 3: Cicadas, Oh what talk to us about cicadas.

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Speaker 4: I will talk to you about cicadas. So here's something interesting,

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Speaker 4: and this is you know, partly about cicadas. And I

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Speaker 4: happen to live in a cicada part of the country.

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Speaker 5: It's brutal out there, the shining.

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Speaker 4: Well, so here's the thing we've talked about inflation, we

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Speaker 4: talked about the slow rise in income, the high interest rates.

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Speaker 4: Let's talk about the effect of on retail spending of

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Speaker 4: extreme weather, which I know we've talked about before. We

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Speaker 4: saw today that there's going to be record breaking temperatures

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Speaker 4: in the Midwest and the Northeast. So it's it's extreme heat,

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Speaker 4: it's flooding, it's fires, it's hurricanes, snowstorms, tornados. All of

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Speaker 4: those things curb outside of the home activities, which are

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Speaker 4: typically a soci stated with bigger ticket spending.

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Speaker 1: So think of.

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Speaker 4: Things like going to an amusement park or a concert

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Speaker 4: versus watching Netflix, going to a lakehouse for the weekend

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Speaker 4: versus staying home, going out to dinner versus staying home.

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Speaker 4: So the effect the curb on out of the home

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Speaker 4: activities will translate into a different and a less retail spend.

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Speaker 4: So that's somewhat having to do with cicadas. I stay

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Speaker 4: in because it is life as.

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Speaker 5: Shining, really horrifying.

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Speaker 3: Where where are you, Jill? Where is this happening?

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Speaker 7: I am home.

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Speaker 4: Based in the Chicago market. They're pretty brutal.

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Speaker 5: Interesting, man, I didn't eve think about the sit here?

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Speaker 7: Do we know? We do we do.

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Speaker 5: Yeah, yeah, no, I mean, like not yet, but they're

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Speaker 5: they're definitely gonna come.

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Speaker 3: Yeah yeah, okay, But to.

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Speaker 5: Your point about extreme temperatures.

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Speaker 2: Too, because then you stay home and guess what, you

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Speaker 2: pump the air conditioner because if you don't, you're dealing

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Speaker 2: with one hundred degree heat and that is a huge bill.

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Speaker 2: I mean, already my electricity bill has jumped by what

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Speaker 2: by two just just for May and.

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Speaker 5: It wasn't even that hot. So that's going to be

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Speaker 5: another impact as well.

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Speaker 4: Yeah, as well as think about the damage that comes

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Speaker 4: from a flood or hurricane tornado. So yeah, it really

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Speaker 4: drives dollars being spent elsewhere, as well as the fact

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Speaker 4: that it curves outside the home spending.

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Speaker 2: Talk about then, in terms of how loyal people are

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Speaker 2: to brands, like is it just going to be a

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Speaker 2: pure value trade, like the lowest price that you can

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Speaker 2: give me is what I'm going to buy? Or do

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Speaker 2: you feel like it's going to be very selective and

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Speaker 2: brand loyalty matters.

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Speaker 4: So I heard somebody call this right now, and I

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Speaker 4: thought it was pretty clever that we're ing that we're

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Speaker 4: entering into the air of brand co miscuity, where we

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Speaker 4: are essentially buying short term loyalty, but we're really creating

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Speaker 4: long term disloyalty. So all those promotions buy today, but

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Speaker 4: they sacrifice tomorrow. Having said that, I'd say that retailers

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Speaker 4: are looking at a number of strategies. So it's not

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Speaker 4: just promotions, it's their amping up their loyalty programs, their

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Speaker 4: digital offers, their private label offerings. And let's talk a

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Speaker 4: little bit about everyday price, right, So Walmart and Target

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Speaker 4: publicly said that they plan to reduce the everyday price

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Speaker 4: on thousands of items. This is a great trip driving

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Speaker 4: strategy to get the consumer into their stores, especially the

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Speaker 4: consumers that are struggling to buy the basics every day.

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Speaker 4: And it's a real shift in what we've seen over

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Speaker 4: the past two to three years, and it might mark

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Speaker 4: the beginning of a price war the likes of which

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Speaker 4: we haven't seen since inflation took hold.

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Speaker 3: So what are retailers trying to do here? I mean,

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Speaker 3: are they are they? Are they trying to keep customers?

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Speaker 3: Are they are they just looking at for their own margins?

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Speaker 3: What are retailers strategy here?

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Speaker 4: Oh? Yes, and yes and maybe even more yeses. It

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Speaker 4: is less today about a pie that's growing and it's

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Speaker 4: more about stealing share versus creating demand. So somebody's win

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Speaker 4: is somebody's loss again, could be a brand, a retailer,

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Speaker 4: or a product choice. And so retailers you know, are

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Speaker 4: trying to are trying to get purchases and consumers that

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Speaker 4: they might not normally get and or have recently lost.

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Speaker 4: One of the things that we're seeing now that's really

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Speaker 4: interesting is both manufacturers and retailers trying to sell you know,

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Speaker 4: call it non traditional products and non traditional outlets. And

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Speaker 4: so you could expect to see health and beautycare products

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Speaker 4: at a Dick Sporting Good, maybe some more food products

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Speaker 4: at a TJ Max, And so they're really trying to

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Speaker 4: get new avenues and distribution to get those consumers in store.

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Speaker 4: A flip version of that is if you look at

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Speaker 4: the dollar channel, the dollar channel has traditionally owned that

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Speaker 4: you know, that lower price point or that opening price point,

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Speaker 4: that so many other retailers are now entering into the

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Speaker 4: smaller pack sizes for that opening price point and really

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Speaker 4: getting that volume from the dollar stores.

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Speaker 5: Wow, that's really interesting. It's true.

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Speaker 2: As a frequent user of TJ Max, I do notice

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Speaker 2: that there are is more packaged food, the home good store.

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Speaker 2: Oh my god, it's everywhere on the half of it

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Speaker 2: feels like it's food. Now, just to wrap this conversation

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Speaker 2: up as we go to sort of the Fed, let's

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Speaker 2: just pretend the FED cuts one or two times this year?

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Speaker 5: Did they say one? Market says two?

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Speaker 2: Does that matter for the consumers that we are talking about.

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Speaker 2: Does that materially change kind of what they buy and

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Speaker 2: how they spend long term?

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Speaker 4: Yes, near in, not as much as we would think.

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Speaker 4: It will have a little bit of an effect. But again,

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Speaker 4: cumulative is really the word of the day here, and

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Speaker 4: that it takes a while for any of these effects

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Speaker 4: to catch up to the consumer. So what we're seeing

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Speaker 4: today is the effect of what's been happening over the

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Speaker 4: past twelve to twenty four months, and so it will

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Speaker 4: have an effect, but not as big of an effect.

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Speaker 4: Near In.

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Speaker 3: Hey, Jill, thanks so much for joining us. They really

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Speaker 3: appreciate it. Joe Blanchard, president of Enterprise Client Solutions at

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Speaker 3: Advantage Solutions, on Zoom from Cicada infested Illinois.

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Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live

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Speaker 1: weekdays at ten am Eastern on Effo Cardplay and then

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Speaker 2: One other stock we're watching is Lenar, down by almost

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Speaker 2: three percent. So there's a homebuilder and it forecasted that

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Speaker 2: deals in the third quarter.

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Speaker 5: Missed consensus expectations.

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Speaker 2: And then Barkley's pointed out that if you take a

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Speaker 2: look at their fourth quarter guidance, it implies a very

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Speaker 2: large ramp up in gross margins in that quarter, and

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Speaker 2: investors are a little skeptical as to whether or not

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Speaker 2: that actually is going to happen. So no one to

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Speaker 2: turn to but Drew reading Bloomberg Intelligence home builder analysts.

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Speaker 2: He joins us now from Princeton, New Jersey. Hey, Drew,

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Speaker 2: I don't know. I thought it was all like, we

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Speaker 2: don't have enough supply.

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Speaker 5: This is bullish for builders. So what happened?

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Speaker 7: Well, I think you framed it perfectly. The story with Lenar,

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Speaker 7: why the stock sound? Is it so much about what's

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Speaker 7: happening with the volumes they deliver good orders? They're up

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Speaker 7: nineteen percent, they maintain their four year guidance for eighty

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Speaker 7: thousand home closings. It has to do with their outlook

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Speaker 7: for gross margin, they guided to about one hundred basis

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Speaker 7: points below what the street was looking for, and as

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Speaker 7: you mentioned, that would work quire a ramp in the

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Speaker 7: fourth quarter to about twenty five percent. So, like you said,

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Speaker 7: there's definitely some skepticism and their ability to meet their

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Speaker 7: four year outlook. The reason for that is because we

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Speaker 7: saw rates move up as high as seven and a

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Speaker 7: half percent during the quarter. You know, they've come back

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Speaker 7: in a little bit, but we're seeing their need to

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Speaker 7: incentivize buyers remain elevated, and that's what's impacting profitability.

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Speaker 3: So where are we in that activity there? If I'm

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Speaker 3: if I'm looking at a seven percent mortgage, what are

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Speaker 3: they going to do for me?

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Speaker 7: Yeah, So typically what we're seeing is that the builders

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Speaker 7: will maintain a spread versus the headline rate. So if

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Speaker 7: you're seeing seven and a half percent in the market,

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Speaker 7: typically you're going to get six percent from a builder.

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Speaker 7: You know, there are some other builders and depending on

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Speaker 7: the market, depending on how strong the market is, what

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Speaker 7: demand looks like, they could get you into the fives.

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Speaker 7: But obviously that's going to cost them on the gross

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Speaker 7: margin line. So the incentives they're using are certainly working,

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Speaker 7: it's just what's the cost.

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Speaker 2: So that one hundred percent the one hundred bases point miss,

438
00:21:58,560 --> 00:22:01,000
Speaker 2: but then keeping their guidance for ro's margin for the year,

439
00:22:01,119 --> 00:22:03,679
Speaker 2: that must imply that they're looking for rake cuts.

440
00:22:05,720 --> 00:22:08,600
Speaker 7: Yeah, I think a lot of it has to do

441
00:22:08,640 --> 00:22:10,600
Speaker 7: with what they're doing on the call side. One of

442
00:22:10,800 --> 00:22:14,800
Speaker 7: you know, Lenar's emphasis for their business over the last

443
00:22:15,119 --> 00:22:18,600
Speaker 7: several years has really been running a more efficient manufacturing

444
00:22:18,680 --> 00:22:22,879
Speaker 7: based business where they're not necessarily just chasing volume, but

445
00:22:22,880 --> 00:22:25,760
Speaker 7: they're doing it the right way. They're fine tuning their

446
00:22:25,760 --> 00:22:28,600
Speaker 7: floor plans, they're pushing back on their suppliers. You have

447
00:22:28,600 --> 00:22:31,199
Speaker 7: to remember they're one of the second largest builder in

448
00:22:31,240 --> 00:22:33,360
Speaker 7: the country, but they're one of the only builders who

449
00:22:33,400 --> 00:22:36,520
Speaker 7: has scale at the national level, so they're able to

450
00:22:36,640 --> 00:22:38,919
Speaker 7: leverage that and kind of push back a little bit.

451
00:22:38,960 --> 00:22:41,200
Speaker 7: So certainly some of the benefit that they expect in

452
00:22:41,240 --> 00:22:43,240
Speaker 7: foro Q, I would assume is going to come from

453
00:22:43,280 --> 00:22:45,320
Speaker 7: what they're doing on the calls side, as well as

454
00:22:45,359 --> 00:22:49,000
Speaker 7: fixed leverage from higher deliveries. But nonetheless that's still going

455
00:22:49,040 --> 00:22:51,199
Speaker 7: to be the focal point for investors is how do

456
00:22:51,240 --> 00:22:51,760
Speaker 7: they get there?

457
00:22:52,000 --> 00:22:52,400
Speaker 5: How much?

458
00:22:52,480 --> 00:22:54,119
Speaker 3: I mean, I remember this back in the beginning of

459
00:22:54,320 --> 00:22:58,480
Speaker 3: the pandemic, lumber went crazy. Where are we in lumber

460
00:22:58,520 --> 00:23:02,520
Speaker 3: and help? How is that a part of their gross margin?

461
00:23:03,760 --> 00:23:06,520
Speaker 7: Sure so, lumbers about ten percent of the cogs for builders,

462
00:23:06,520 --> 00:23:09,000
Speaker 7: so it's certainly the most important input costs. As you

463
00:23:09,040 --> 00:23:13,600
Speaker 7: would expect, you know, lumber prices have come back down

464
00:23:13,760 --> 00:23:16,560
Speaker 7: a lot, so builders have been benefiting on the margin side.

465
00:23:16,560 --> 00:23:19,800
Speaker 7: I think we've seen more stabilization of late, perhaps a

466
00:23:19,800 --> 00:23:22,840
Speaker 7: little rise to the upside, but really lumbers not impacting

467
00:23:22,880 --> 00:23:25,480
Speaker 7: the business in as significant a way as it was

468
00:23:25,520 --> 00:23:26,720
Speaker 7: over the last couple of years.

469
00:23:27,160 --> 00:23:29,520
Speaker 2: So KB home reports after the bell today, right, So

470
00:23:29,600 --> 00:23:32,879
Speaker 2: what kind of company is KB home versus Lenar and

471
00:23:32,960 --> 00:23:34,639
Speaker 2: has that set up KB home for today?

472
00:23:36,000 --> 00:23:39,760
Speaker 7: Sure so, KB is predominantly focused on the entry level business.

473
00:23:39,760 --> 00:23:43,479
Speaker 7: It's about fifty percent or more of their total sales.

474
00:23:43,560 --> 00:23:46,240
Speaker 7: So in addition to just focus on broadly on the

475
00:23:46,400 --> 00:23:48,600
Speaker 7: entry level, we look at what they're doing from an

476
00:23:48,600 --> 00:23:51,480
Speaker 7: asp perspective to get a more holistic look. And they're

477
00:23:51,640 --> 00:23:55,840
Speaker 7: actually one of the more affordably priced builders, particularly when

478
00:23:55,880 --> 00:23:59,040
Speaker 7: you compare them to the resale market and against you know,

479
00:23:59,080 --> 00:24:02,520
Speaker 7: their public peers. So I think from a pricing perspective,

480
00:24:02,520 --> 00:24:05,000
Speaker 7: they're pretty well positioned, so they'll give us a good

481
00:24:05,040 --> 00:24:07,600
Speaker 7: sense what's happening on the lower end of the market.

482
00:24:08,160 --> 00:24:10,840
Speaker 7: With that being said, as you would expect, entry level

483
00:24:10,880 --> 00:24:13,879
Speaker 7: buyers are much more price sensitive. They're more sensitive to

484
00:24:13,920 --> 00:24:16,639
Speaker 7: that monthly payment and what's happening with rates. And we

485
00:24:16,680 --> 00:24:19,640
Speaker 7: saw that earlier with a low end builder LGI Homes

486
00:24:19,680 --> 00:24:22,680
Speaker 7: who's looking to take buyers out of a rental situation

487
00:24:22,760 --> 00:24:25,160
Speaker 7: and put them into a home, and we saw relative

488
00:24:25,200 --> 00:24:28,000
Speaker 7: weakness there. I think what you see from some of

489
00:24:28,000 --> 00:24:30,040
Speaker 7: the other builders is maybe a little bit more of

490
00:24:30,080 --> 00:24:33,080
Speaker 7: a higher end entry level buyer, maybe duel income who's

491
00:24:33,080 --> 00:24:35,920
Speaker 7: waited a little longer to purchase. So there still has

492
00:24:35,960 --> 00:24:37,760
Speaker 7: been relative strength, but we'll get a good read on

493
00:24:37,800 --> 00:24:38,520
Speaker 7: that buyer today.

494
00:24:39,040 --> 00:24:41,879
Speaker 3: What are the companies tell you about their expectations for

495
00:24:42,440 --> 00:24:44,199
Speaker 3: interest rates mortgage rates? What are they think is going

496
00:24:44,240 --> 00:24:44,600
Speaker 3: to happen?

497
00:24:46,160 --> 00:24:49,440
Speaker 7: So I think the expectation broadly is that mortgage rates

498
00:24:49,440 --> 00:24:51,000
Speaker 7: will start to come in a little bit as we

499
00:24:51,040 --> 00:24:52,919
Speaker 7: get through the end of the year. I don't think

500
00:24:52,960 --> 00:24:56,600
Speaker 7: they're managing their business for any you know, significant dropping

501
00:24:56,720 --> 00:24:59,040
Speaker 7: rates back to you know where we were previously. But

502
00:24:59,080 --> 00:25:02,080
Speaker 7: I think as a builder from a demand perspective, if

503
00:25:02,080 --> 00:25:03,920
Speaker 7: we get rates coming back to the six and a

504
00:25:03,960 --> 00:25:07,159
Speaker 7: half percent range, you know, that's pretty much a sweet

505
00:25:07,160 --> 00:25:09,960
Speaker 7: spot for them. You know, we've heard that as you

506
00:25:09,960 --> 00:25:11,920
Speaker 7: get to five and a half percent, that's really when

507
00:25:12,040 --> 00:25:15,000
Speaker 7: demand in the market starts to move. So the fact

508
00:25:15,000 --> 00:25:16,639
Speaker 7: that if we can get to six and a half

509
00:25:16,680 --> 00:25:18,840
Speaker 7: they're buying down rates one hundred basis points, I think

510
00:25:18,840 --> 00:25:22,040
Speaker 7: they'll continue to do well. And you know what's interesting

511
00:25:22,160 --> 00:25:25,560
Speaker 7: is the public builders are kind of at the top

512
00:25:25,600 --> 00:25:27,320
Speaker 7: of the food chain as it comes to housing. You

513
00:25:27,480 --> 00:25:31,160
Speaker 7: have to realize they're generating about fifty percent market share

514
00:25:31,280 --> 00:25:35,040
Speaker 7: compared to call it thirty eight percent prior to the pandemic, really,

515
00:25:35,119 --> 00:25:37,800
Speaker 7: so they've really leveraged that lack of inventory in the

516
00:25:37,800 --> 00:25:41,320
Speaker 7: resale market and the struggles among some of the smaller

517
00:25:41,359 --> 00:25:43,280
Speaker 7: private piers, and they've capitalized on it.

518
00:25:43,640 --> 00:25:45,320
Speaker 2: So when you say we have to the five and

519
00:25:45,359 --> 00:25:47,200
Speaker 2: a half percent is kind of a nice sweet spot.

520
00:25:47,440 --> 00:25:49,680
Speaker 2: So that implies the Fed Funds rated six and a

521
00:25:49,720 --> 00:25:52,040
Speaker 2: half percent, and the home builders still give thee hundred

522
00:25:52,040 --> 00:25:54,600
Speaker 2: bases point discount. When the Fed Funds rate gets to

523
00:25:54,720 --> 00:25:57,399
Speaker 2: five and a half percent, do the builders still offer

524
00:25:57,440 --> 00:25:58,960
Speaker 2: that one hundred basis point discount.

525
00:26:00,320 --> 00:26:02,880
Speaker 7: I think it's going to depend on what the broader

526
00:26:03,040 --> 00:26:06,840
Speaker 7: macro economic situation looks like. If we get a pullback

527
00:26:06,840 --> 00:26:10,479
Speaker 7: in rates, you know, a modest pullback, and we are

528
00:26:10,560 --> 00:26:14,320
Speaker 7: still dealing with a pretty solid labor market, I think that,

529
00:26:14,760 --> 00:26:16,760
Speaker 7: you know, builders will be able to definitely pull back

530
00:26:16,800 --> 00:26:19,480
Speaker 7: on their use of incentives. I don't know that they'll

531
00:26:19,480 --> 00:26:21,720
Speaker 7: go away all together, because at this point that's something

532
00:26:21,760 --> 00:26:24,360
Speaker 7: that buyers are looking to and it certainly made their

533
00:26:24,400 --> 00:26:28,639
Speaker 7: product more attractive. If we get a significant pullback in

534
00:26:28,720 --> 00:26:31,720
Speaker 7: rates and it's because you know, the economic situation has

535
00:26:31,760 --> 00:26:35,280
Speaker 7: deteriorated further, that's obviously more of a concern and we

536
00:26:35,280 --> 00:26:37,919
Speaker 7: would see them probably push incentives even harder.

537
00:26:38,600 --> 00:26:41,600
Speaker 3: What kind of homes are builders building these days, Drue.

538
00:26:41,640 --> 00:26:43,480
Speaker 3: Is it the mcmanson where they can get the big

539
00:26:43,560 --> 00:26:46,199
Speaker 3: profit margin or are they building what the market actually needs,

540
00:26:46,240 --> 00:26:49,120
Speaker 3: which is some of these entry lever homes.

541
00:26:49,760 --> 00:26:52,240
Speaker 7: Yeah, that's a great question, and we've seen one of

542
00:26:52,240 --> 00:26:56,440
Speaker 7: the primary ways that builders are addressing the affordability equation.

543
00:26:57,000 --> 00:27:00,840
Speaker 7: It's through smaller square footage floor plans. It's a shift

544
00:27:00,920 --> 00:27:02,680
Speaker 7: most of them have done. We've seen it over the

545
00:27:02,760 --> 00:27:05,960
Speaker 7: last couple of years more targeted towards the entry level.

546
00:27:06,760 --> 00:27:09,280
Speaker 7: Interestingly enough, you even have someone like a Toll Brothers,

547
00:27:09,320 --> 00:27:13,000
Speaker 7: who you traditionally think of as that luxury builder within

548
00:27:13,040 --> 00:27:16,520
Speaker 7: the builder space, they've shifted to what they call affordable luxury.

549
00:27:16,880 --> 00:27:18,960
Speaker 7: Now it's still not something that the masses are going

550
00:27:19,000 --> 00:27:21,119
Speaker 7: to be able to afford, but it's certainly a lower

551
00:27:21,160 --> 00:27:24,160
Speaker 7: price point that, as I said before, is attracting those

552
00:27:24,320 --> 00:27:27,840
Speaker 7: more well healed, duel income buyers. So every builder has

553
00:27:27,920 --> 00:27:30,359
Speaker 7: kind of attacked affordability in a different way, but I

554
00:27:30,400 --> 00:27:33,600
Speaker 7: think square footage has been something consistent across the group.

555
00:27:33,880 --> 00:27:35,879
Speaker 2: We only have about like forty five seconds left, But

556
00:27:35,920 --> 00:27:38,080
Speaker 2: what's a builder that's kind of pulling on all levers

557
00:27:38,119 --> 00:27:38,960
Speaker 2: correctly right now?

558
00:27:40,960 --> 00:27:43,639
Speaker 7: I think Lenar is actually an interesting case, and the

559
00:27:44,320 --> 00:27:47,280
Speaker 7: while the guidance may have disappointed a little bit, they're

560
00:27:47,280 --> 00:27:49,320
Speaker 7: really delivering on what they said they're going to do.

561
00:27:49,359 --> 00:27:52,119
Speaker 7: They're focused on price over pace and they're willing to

562
00:27:52,160 --> 00:27:54,560
Speaker 7: sacrifice a little bit of gross margin to do so.

563
00:27:54,960 --> 00:27:56,960
Speaker 7: And the idea is that they're going to generate a

564
00:27:57,000 --> 00:27:59,480
Speaker 7: ton of cash that they can use to pay down

565
00:27:59,520 --> 00:28:02,800
Speaker 7: debt return case to shareholders, which is something investors obviously

566
00:28:02,920 --> 00:28:04,120
Speaker 7: like all right, he Drew.

567
00:28:04,000 --> 00:28:05,399
Speaker 5: Really appreciate it, really great stuff.

568
00:28:05,400 --> 00:28:08,920
Speaker 2: You're reading a Bloomberg Intelligence joining us on the NARS Earning.

569
00:28:09,800 --> 00:28:13,680
Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live

570
00:28:13,760 --> 00:28:17,560
Speaker 1: weekdays at ten am Eastern on Applecarplay and Android Auto

571
00:28:17,720 --> 00:28:20,480
Speaker 1: with the Bloomberg Business app. You can also listen live

572
00:28:20,600 --> 00:28:23,760
Speaker 1: on Amazon Alexa from our flagship New York station Just

573
00:28:23,840 --> 00:28:28,720
Speaker 1: Say Alexa playing Bloomberg eleven thirty.

574
00:28:28,440 --> 00:28:30,159
Speaker 3: The Alex Steel and Paul Sweeney were live here in

575
00:28:30,160 --> 00:28:33,280
Speaker 3: a Bloomberg Interactive Brokers studio, or streaming live on YouTube

576
00:28:33,280 --> 00:28:36,400
Speaker 3: as well, So just head over to YouTube dot com

577
00:28:36,440 --> 00:28:40,040
Speaker 3: and search for Bloomberg podcasts. Let's turn our attention to healthcare.

578
00:28:40,840 --> 00:28:43,960
Speaker 3: How about this. Japan is dealing with rising cases of

579
00:28:44,000 --> 00:28:47,560
Speaker 3: a disease caused by a rare flesh eating bacteria that

580
00:28:47,560 --> 00:28:50,040
Speaker 3: can kill people within forty eight hours. Health authorities have

581
00:28:50,080 --> 00:28:55,239
Speaker 3: reported over one thousand cases of streptocockle toxic syndrome. How

582
00:28:55,240 --> 00:28:57,680
Speaker 3: about that as of early June, higher than the record

583
00:28:57,760 --> 00:28:59,520
Speaker 3: nine hundred and forty one cases reporter for all of

584
00:28:59,520 --> 00:29:03,400
Speaker 3: twenty twenty three. At the current rate of infection, experts

585
00:29:03,400 --> 00:29:06,440
Speaker 3: fear the number of cases in Japan can reach twenty

586
00:29:06,440 --> 00:29:08,080
Speaker 3: five hundred this year. For more on the story, we

587
00:29:08,160 --> 00:29:11,920
Speaker 3: check out on Meshadalogia, Senior scholar at the Center for

588
00:29:12,000 --> 00:29:15,680
Speaker 3: Health Security at John Hopkins Bloomberg School of Public Health. Uh,

589
00:29:15,840 --> 00:29:17,920
Speaker 3: doctor Adalgia thinks, so much for joining us. Can you

590
00:29:17,960 --> 00:29:21,479
Speaker 3: tell us about streptococcle toxic shock? What is it?

591
00:29:21,600 --> 00:29:25,160
Speaker 5: N by the way I job tell us about it?

592
00:29:25,240 --> 00:29:29,400
Speaker 8: So this is just this is Streptococcus is a bacteria

593
00:29:29,480 --> 00:29:31,440
Speaker 8: that all of us have dealt with. It's the same

594
00:29:31,480 --> 00:29:35,520
Speaker 8: bacteria that causes strep throat. What can happen though in

595
00:29:35,880 --> 00:29:38,719
Speaker 8: certain individuals is it can be a much more severe

596
00:29:38,720 --> 00:29:42,240
Speaker 8: infection where it can cause what we call, you know,

597
00:29:42,360 --> 00:29:46,680
Speaker 8: necrotizing or flesh eating type of skin infections and then

598
00:29:46,720 --> 00:29:50,240
Speaker 8: also spread systemically and cause multiple different organ systems to

599
00:29:50,280 --> 00:29:52,400
Speaker 8: shut down. So that's when we use the kind of

600
00:29:52,480 --> 00:29:56,280
Speaker 8: term toxic shocks. And it was said that bacteria basically

601
00:29:56,320 --> 00:29:58,920
Speaker 8: disseminates toxins throughout your whole body and it's a very

602
00:29:58,920 --> 00:30:02,000
Speaker 8: serious illness with high levels of morbidity immortality.

603
00:30:02,320 --> 00:30:05,160
Speaker 5: Doctor, Is this new or is this always been the case?

604
00:30:06,080 --> 00:30:08,120
Speaker 8: It's always been the case. But what's new is that

605
00:30:08,160 --> 00:30:11,720
Speaker 8: in Japan post pandemic, they've reported at least two years

606
00:30:11,760 --> 00:30:14,800
Speaker 8: where they've had higher than normal cases and trying to

607
00:30:14,880 --> 00:30:18,080
Speaker 8: unravel the mystery of why that change in epidemiology occurred

608
00:30:18,440 --> 00:30:21,920
Speaker 8: is what's getting headlines right now. But streptococcal toxic SHOCKSIM

609
00:30:21,920 --> 00:30:25,440
Speaker 8: has been around forever. It's just this increase in Japan

610
00:30:25,520 --> 00:30:27,360
Speaker 8: that people are interested in.

611
00:30:28,400 --> 00:30:31,720
Speaker 3: How do the medical professionals, how are they treating this?

612
00:30:33,040 --> 00:30:36,000
Speaker 8: So the mainstay is going to be antibiotics, but because

613
00:30:36,000 --> 00:30:38,840
Speaker 8: it's this systemic toxin disease, we often give other drugs

614
00:30:38,880 --> 00:30:43,840
Speaker 8: to modulate the immune system, and if there are elements

615
00:30:43,880 --> 00:30:46,840
Speaker 8: of flesh eating disease going on, they basically have to

616
00:30:46,840 --> 00:30:49,720
Speaker 8: do extensive surgery to kind of cut ahead of the infection.

617
00:30:50,440 --> 00:30:54,640
Speaker 2: Oh my god, this sounds terrible. How quickly does this happen?

618
00:30:54,840 --> 00:30:58,120
Speaker 2: I mean, you know strep can come on really quickly

619
00:30:58,200 --> 00:30:59,680
Speaker 2: and it might take you a couple of days to

620
00:30:59,720 --> 00:31:00,760
Speaker 2: realize that you have it.

621
00:31:00,920 --> 00:31:02,200
Speaker 5: Like, what's the cycle for this?

622
00:31:03,880 --> 00:31:07,200
Speaker 8: Well, when you get into that toxic shock syndrome spiral,

623
00:31:07,480 --> 00:31:10,520
Speaker 8: it's very fast. They can be dramatic, you know, even

624
00:31:10,560 --> 00:31:12,480
Speaker 8: in an hour can be a major difference in a patient.

625
00:31:13,080 --> 00:31:14,800
Speaker 8: But It's important remember that not everybody that gets a

626
00:31:14,800 --> 00:31:18,280
Speaker 8: strep infection is going to get it's still rare, and

627
00:31:18,280 --> 00:31:20,160
Speaker 8: the most people who have a strep infection of their

628
00:31:20,160 --> 00:31:22,280
Speaker 8: throat or if their skin, it's going to turn out

629
00:31:22,280 --> 00:31:24,520
Speaker 8: to be kind of a garden variety infection. But it

630
00:31:24,600 --> 00:31:28,160
Speaker 8: is important for clinicians to keep in mind that if

631
00:31:28,160 --> 00:31:30,560
Speaker 8: people are getting worse, if they're not getting better, if

632
00:31:30,560 --> 00:31:34,720
Speaker 8: they're more concerning systemic symptoms occurring, that they think about this.

633
00:31:35,000 --> 00:31:37,040
Speaker 8: And it's also important for patients to know that as well,

634
00:31:37,080 --> 00:31:38,920
Speaker 8: that if they're not getting better in the expected time,

635
00:31:39,000 --> 00:31:40,920
Speaker 8: or they're taking a turn for the worst when they're

636
00:31:40,920 --> 00:31:43,920
Speaker 8: already on antibiotics, that this is something where they need

637
00:31:43,960 --> 00:31:44,920
Speaker 8: to seek care immediately.

638
00:31:45,440 --> 00:31:48,480
Speaker 3: Is there any reason why it would be I guess

639
00:31:48,560 --> 00:31:53,200
Speaker 3: localized in Japan here to anything that is unique to.

640
00:31:53,200 --> 00:31:56,200
Speaker 8: That part of the world, not particularly, I mean, we've

641
00:31:56,200 --> 00:32:01,040
Speaker 8: seen increases in streptococal infections, not necessarily toxic shock, all

642
00:32:01,080 --> 00:32:04,040
Speaker 8: over all over different countries. For example, the UK had

643
00:32:04,080 --> 00:32:06,560
Speaker 8: a major issue with this a couple of years ago,

644
00:32:06,760 --> 00:32:08,600
Speaker 8: and it may be having to do with kind of

645
00:32:08,680 --> 00:32:12,040
Speaker 8: idiosyncrasies in the immunity in the population in Japan. Remember,

646
00:32:12,080 --> 00:32:13,840
Speaker 8: we all came through a pandemic where there was a

647
00:32:13,840 --> 00:32:17,160
Speaker 8: lot of social distancing and many of the ordinary infections

648
00:32:17,160 --> 00:32:21,000
Speaker 8: that people get every year were kind of disrupted. And

649
00:32:21,360 --> 00:32:23,440
Speaker 8: there may have been different disruptions in different parts of

650
00:32:23,440 --> 00:32:27,320
Speaker 8: the world and different prevalences of these infections, and now

651
00:32:27,320 --> 00:32:31,080
Speaker 8: they're kind of coming back to their prior levels and

652
00:32:31,200 --> 00:32:32,200
Speaker 8: there's some catching.

653
00:32:32,000 --> 00:32:32,360
Speaker 7: Up to do.

654
00:32:32,960 --> 00:32:34,520
Speaker 8: There are people who might not have had as much

655
00:32:34,520 --> 00:32:36,800
Speaker 8: immunity because they weren't exposed at a low level over

656
00:32:36,800 --> 00:32:38,920
Speaker 8: the last couple of years, or they just might not

657
00:32:38,960 --> 00:32:41,480
Speaker 8: have been infected. And there's a certain number that are

658
00:32:41,480 --> 00:32:43,680
Speaker 8: going to be expected every year in Japan, and because

659
00:32:43,680 --> 00:32:48,040
Speaker 8: you had a two year lull, now it's coming back

660
00:32:48,080 --> 00:32:50,840
Speaker 8: to baseline levels and that's what they're noticing. So this

661
00:32:50,920 --> 00:32:52,560
Speaker 8: is kind of one of the leading hypothesis. But we

662
00:32:52,560 --> 00:32:54,720
Speaker 8: don't know quite everything for sure what's going on in Japan,

663
00:32:54,800 --> 00:32:56,400
Speaker 8: but that's what I think is at play.

664
00:32:56,720 --> 00:32:58,800
Speaker 2: What are the sign you mentioned that if you're on

665
00:32:58,800 --> 00:33:00,920
Speaker 2: antibiotics for strap and you know, get better, but you

666
00:33:00,960 --> 00:33:03,000
Speaker 2: get worse. What are some other signs that people should

667
00:33:03,000 --> 00:33:03,720
Speaker 2: be looking out for.

668
00:33:05,080 --> 00:33:09,000
Speaker 8: Well, so severe a spreading rash that's getting severe, severe

669
00:33:09,000 --> 00:33:11,280
Speaker 8: pain if there's a rash where the infection might have been,

670
00:33:12,520 --> 00:33:18,240
Speaker 8: anything involving low blood pressure, extreme fatigue, not being clear mentally,

671
00:33:18,760 --> 00:33:21,800
Speaker 8: difficulty breathing, all of those kind of signs that the

672
00:33:21,840 --> 00:33:23,360
Speaker 8: infection is not localized.

673
00:33:24,200 --> 00:33:26,280
Speaker 3: Nic doctor. I remember we used to talk to you

674
00:33:26,360 --> 00:33:28,400
Speaker 3: all the time during the pandemic. You were very kind

675
00:33:28,440 --> 00:33:30,760
Speaker 3: to share your time and you know, kind of educate

676
00:33:30,800 --> 00:33:34,280
Speaker 3: a lot of folks on what this virus was, how

677
00:33:34,760 --> 00:33:37,800
Speaker 3: doctors and health professionals were treating it, and then ultimately

678
00:33:37,840 --> 00:33:40,200
Speaker 3: the vaccine and the efficacy of the vaccine. So we

679
00:33:40,320 --> 00:33:43,360
Speaker 3: again appreciate all that time you gave us. Now that

680
00:33:43,360 --> 00:33:45,880
Speaker 3: we've got that in the rear view mirror here, I

681
00:33:45,920 --> 00:33:47,960
Speaker 3: know one of the themes that came out of that

682
00:33:48,080 --> 00:33:50,920
Speaker 3: was just the stress on the healthcare system and the

683
00:33:51,040 --> 00:33:54,480
Speaker 3: people of the healthcare system that doctors and nurses and

684
00:33:54,480 --> 00:33:57,000
Speaker 3: everybody of the work they had to be in the

685
00:33:57,040 --> 00:34:00,600
Speaker 3: front lines during those early months and in that year.

686
00:34:01,400 --> 00:34:03,320
Speaker 3: How are the folks, the good folks at Johns Hopkins

687
00:34:03,360 --> 00:34:06,040
Speaker 3: that you deal with in the facilities, how are they

688
00:34:06,240 --> 00:34:07,760
Speaker 3: doing several years on now?

689
00:34:08,840 --> 00:34:11,320
Speaker 8: Well, I think that most healthcare systems around the country

690
00:34:11,360 --> 00:34:14,400
Speaker 8: have kind of come to a new normal where there's

691
00:34:14,520 --> 00:34:18,560
Speaker 8: kind of chronic burnout, there are chronic staffing issues where

692
00:34:18,760 --> 00:34:22,680
Speaker 8: people quite haven't recovered from the way that the pandemic

693
00:34:22,719 --> 00:34:26,640
Speaker 8: altered hospital operations. And this is going to be one

694
00:34:26,680 --> 00:34:29,560
Speaker 8: of the long tails of the pandemic. It's not something

695
00:34:29,600 --> 00:34:31,440
Speaker 8: that you can just bounce back from. There wasn't a

696
00:34:31,440 --> 00:34:33,480
Speaker 8: lot of resiliency built into the system. There wasn't a

697
00:34:33,560 --> 00:34:36,760
Speaker 8: lot of kind of slack in it, and the pandemic

698
00:34:36,960 --> 00:34:39,239
Speaker 8: ate up all that slack. And I just think that

699
00:34:39,239 --> 00:34:42,840
Speaker 8: we're in a situation where a lot of people still

700
00:34:43,320 --> 00:34:46,120
Speaker 8: are carrying those scars around of that time when they

701
00:34:46,120 --> 00:34:49,920
Speaker 8: were overworked, where there were concerns about personal protective equipment,

702
00:34:50,040 --> 00:34:52,960
Speaker 8: where hospitals were crashing, and even when you look at

703
00:34:52,960 --> 00:34:57,280
Speaker 8: the economics of hospitals, we're seeing hospitals closed, rural hospitals

704
00:34:57,440 --> 00:35:01,080
Speaker 8: really looking at their financial viability hospital banker. So this

705
00:35:01,160 --> 00:35:03,240
Speaker 8: was something that took a major toll on the healthcare system,

706
00:35:03,440 --> 00:35:05,920
Speaker 8: just like we expected and predicted it with And this

707
00:35:06,000 --> 00:35:09,760
Speaker 8: is why it's so important to incorporate healthcare preparedness, healthcare

708
00:35:09,760 --> 00:35:14,040
Speaker 8: resiliency into planning for the next infectious disease emergency, whatever

709
00:35:14,080 --> 00:35:16,440
Speaker 8: it might be. This can't just be something that we

710
00:35:16,560 --> 00:35:19,000
Speaker 8: think about when there's a crisis, when it's in the headlines.

711
00:35:19,239 --> 00:35:21,160
Speaker 8: This is something that needs to be done kind of

712
00:35:21,239 --> 00:35:24,520
Speaker 8: with a long term eye to the future to make

713
00:35:24,560 --> 00:35:29,680
Speaker 8: a sustainable way to operate hospitals and make emergency prepared

714
00:35:29,719 --> 00:35:30,800
Speaker 8: and as part of their core function.

715
00:35:32,160 --> 00:35:35,160
Speaker 2: How are we doing with COVID? I mean, COVID loves me.

716
00:35:35,520 --> 00:35:38,560
Speaker 2: It doesn't love Paul, but it loves me. How are

717
00:35:38,560 --> 00:35:41,680
Speaker 2: we doing with COVID? What are the cases like? Where

718
00:35:41,719 --> 00:35:43,560
Speaker 2: are we going to get vaccinations in the fall for

719
00:35:43,680 --> 00:35:44,640
Speaker 2: fluen covid?

720
00:35:44,680 --> 00:35:45,239
Speaker 5: What do you think?

721
00:35:48,000 --> 00:35:50,759
Speaker 8: Well, COVID is something that's increased over time in the

722
00:35:50,880 --> 00:35:53,360
Speaker 8: last several weeks or so. But we've seen is this

723
00:35:53,520 --> 00:35:57,359
Speaker 8: virus is endemic, but it continues to mutate and spin

724
00:35:57,400 --> 00:36:00,520
Speaker 8: off new variants that are able to infect us. Right now,

725
00:36:00,880 --> 00:36:03,720
Speaker 8: all across the country, COVID cases are up, emergency department

726
00:36:03,840 --> 00:36:06,440
Speaker 8: visits are up, but its ability to cause severe disease,

727
00:36:06,640 --> 00:36:09,480
Speaker 8: its ability to crush the hospital severely constrained. Because of

728
00:36:09,520 --> 00:36:11,920
Speaker 8: the community and the other tools that we have. We

729
00:36:11,960 --> 00:36:14,399
Speaker 8: will have new vaccines in the fall that are better

730
00:36:14,400 --> 00:36:18,000
Speaker 8: targeted to what's circulating and that will likely be something

731
00:36:18,040 --> 00:36:20,560
Speaker 8: that's recommended to high risk individuals that they get right

732
00:36:20,600 --> 00:36:22,319
Speaker 8: alongside their flu vaccine.

733
00:36:23,040 --> 00:36:25,680
Speaker 3: All right, doctor George, thank you so much. We appreciate

734
00:36:26,080 --> 00:36:29,719
Speaker 3: that as always. Doctor almesh Adology a senior scholar to

735
00:36:29,760 --> 00:36:32,719
Speaker 3: Center for Health Security at Johns Hopkins Bloomberg School of

736
00:36:33,000 --> 00:36:36,000
Speaker 3: Public Health. And again, the good folks at Johns Hopkins

737
00:36:36,000 --> 00:36:38,440
Speaker 3: were so good to us, you know during those early

738
00:36:38,560 --> 00:36:40,120
Speaker 3: days when we didn't know anything nothing.

739
00:36:40,320 --> 00:36:42,000
Speaker 2: I actually want to say, we should get him back

740
00:36:42,120 --> 00:36:44,360
Speaker 2: when there's not a crisis, just to like learn about

741
00:36:44,400 --> 00:36:47,600
Speaker 2: stuff that isn't a flesh eating disease, right that comes

742
00:36:47,600 --> 00:36:50,200
Speaker 2: from strap or like COVID spreading again, just to like

743
00:36:50,280 --> 00:36:53,040
Speaker 2: learn about the system and like what cool things are

744
00:36:53,040 --> 00:36:55,560
Speaker 2: in the pipeline to be discovered and what people are treating.

745
00:36:55,560 --> 00:36:57,359
Speaker 5: And I mean everyone's living longer, yep.

746
00:36:57,480 --> 00:36:59,960
Speaker 2: Right, we're letting people live longer, but then how we

747
00:37:00,080 --> 00:37:02,960
Speaker 2: support them really fails. And then getting that dynamic from

748
00:37:03,000 --> 00:37:04,399
Speaker 2: him and be super interesting yep.

749
00:37:04,440 --> 00:37:06,640
Speaker 3: I went into a healthcare episodic for the first time

750
00:37:06,719 --> 00:37:10,280
Speaker 3: yesterday and I can't remember how long and X rays.

751
00:37:10,480 --> 00:37:12,839
Speaker 3: I mean what I was interesting to see, like how

752
00:37:12,880 --> 00:37:15,960
Speaker 3: well it was staff, Like are there nursing shortages are there,

753
00:37:16,000 --> 00:37:19,239
Speaker 3: you know, technician shortage, and it seemed like it was

754
00:37:19,640 --> 00:37:22,320
Speaker 3: back to normal. There's plenty of folks there, you know,

755
00:37:22,360 --> 00:37:23,759
Speaker 3: a few masks here and there from some of the

756
00:37:23,760 --> 00:37:28,360
Speaker 3: healthcare professionals. But it seemed like pre pandemic business as usual.

757
00:37:28,360 --> 00:37:30,160
Speaker 3: But I get as doctor Dalga was saying, there's some

758
00:37:30,560 --> 00:37:33,479
Speaker 3: long tail issues for the industry as a whole. I guess,

759
00:37:33,560 --> 00:37:35,440
Speaker 3: you know, they were so crushed. I think about the

760
00:37:35,480 --> 00:37:37,680
Speaker 3: hospitals here in New York City that were so crushed.

761
00:37:37,680 --> 00:37:40,200
Speaker 5: You should just see, like the ers are crazy, like

762
00:37:40,239 --> 00:37:42,799
Speaker 5: they're just overflowing. It didn't take days to get a bed.

763
00:37:42,880 --> 00:37:46,440
Speaker 5: And yeah, it's just it's it's the healthcare systems and

764
00:37:46,520 --> 00:37:47,440
Speaker 5: real issues with that.

765
00:37:49,760 --> 00:37:53,640
Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live

766
00:37:53,719 --> 00:37:57,239
Speaker 1: weekdays at ten am Eastern on applecar Play and royd

767
00:37:57,280 --> 00:37:59,959
Speaker 1: Otto with the Bloomberg Business App. You can also listen

768
00:38:00,200 --> 00:38:03,239
Speaker 1: live on Amazon Alexa from our flagship New York station,

769
00:38:03,640 --> 00:38:06,359
Speaker 1: Just Say Alexa, playing Bloomberg eleven thirty.

770
00:38:08,160 --> 00:38:10,560
Speaker 2: I'm Alex Thee alongside Paul Sweeney. This is the Boomberg

771
00:38:10,600 --> 00:38:12,480
Speaker 2: Intelligence Radio. We bring you all the top news and

772
00:38:12,560 --> 00:38:15,680
Speaker 2: business and finance live from an interactive Brokers studio right

773
00:38:15,719 --> 00:38:18,600
Speaker 2: here in midtown Manhattan now for the month of June,

774
00:38:18,640 --> 00:38:21,680
Speaker 2: Bloomberg Radio is committed to bringing you segments and guests

775
00:38:21,719 --> 00:38:24,239
Speaker 2: focus on the topic of equality. And today we have

776
00:38:24,239 --> 00:38:27,200
Speaker 2: the pleasure of speaking with a Lalua Ganga. She's US

777
00:38:27,320 --> 00:38:30,959
Speaker 2: Chief investment Officer over at Mercer. She is a rock

778
00:38:31,000 --> 00:38:34,640
Speaker 2: star in her own right as an investment analyst and

779
00:38:34,719 --> 00:38:38,439
Speaker 2: a portfolio diversifier and talk about clients and.

780
00:38:38,400 --> 00:38:39,200
Speaker 5: All those things.

781
00:38:39,480 --> 00:38:42,799
Speaker 2: And also she is in the C suite and also

782
00:38:42,920 --> 00:38:46,000
Speaker 2: working mom and that's hard, so we can cover both.

783
00:38:46,680 --> 00:38:48,560
Speaker 2: So can you just tell me a little bit about

784
00:38:48,600 --> 00:38:50,480
Speaker 2: you know, your career and how you got to where

785
00:38:50,520 --> 00:38:50,799
Speaker 2: you were.

786
00:38:53,000 --> 00:38:56,240
Speaker 9: Well, thank you for having me. I heard the introduction

787
00:38:56,320 --> 00:38:58,359
Speaker 9: to kind and I just started laughing because my daughter

788
00:38:58,400 --> 00:38:59,480
Speaker 9: would just be like, that's just.

789
00:38:59,520 --> 00:39:01,200
Speaker 5: Mom, Yeah, totally.

790
00:39:01,360 --> 00:39:05,200
Speaker 2: I can appreciate that that is what happened.

791
00:39:05,239 --> 00:39:09,319
Speaker 9: So, you know, I there are days that I take

792
00:39:09,360 --> 00:39:12,359
Speaker 9: a step back and I look at my career and

793
00:39:12,440 --> 00:39:18,200
Speaker 9: I'm I'm even blown away and surprised. Frankly, I've had

794
00:39:18,200 --> 00:39:21,919
Speaker 9: the privilege of being in the US. I moved here

795
00:39:21,960 --> 00:39:25,880
Speaker 9: for college. I'm originally from Nigeria. My family's from Nigeria,

796
00:39:26,000 --> 00:39:29,520
Speaker 9: born and raised both in Nigeria and Botswana, and I

797
00:39:30,400 --> 00:39:34,320
Speaker 9: moved in nineteen ninety nine. I studied math. Didn't know

798
00:39:34,320 --> 00:39:36,680
Speaker 9: what I was going to do with it. It was

799
00:39:36,719 --> 00:39:38,840
Speaker 9: somewhat accidental. I was trying to find a place that

800
00:39:38,920 --> 00:39:40,080
Speaker 9: gave work visas.

801
00:39:40,480 --> 00:39:42,920
Speaker 3: Yep, such a big air.

802
00:39:42,760 --> 00:39:46,840
Speaker 9: Got to be a big firm, and my family science based.

803
00:39:46,960 --> 00:39:51,400
Speaker 9: I ended up working at a bank because big hires

804
00:39:51,440 --> 00:39:53,160
Speaker 9: and they gave visas back in the day, and it

805
00:39:53,200 --> 00:39:56,080
Speaker 9: was a trading desk, and all I could think I

806
00:39:56,200 --> 00:39:58,240
Speaker 9: was I did to work really hard to keep this visa,

807
00:40:00,000 --> 00:40:03,480
Speaker 9: and I learned about markets. I learned about trading. I

808
00:40:03,520 --> 00:40:06,239
Speaker 9: realized that in order to stay here, I had to

809
00:40:06,560 --> 00:40:09,920
Speaker 9: in my head work harder than everybody else and just

810
00:40:09,960 --> 00:40:12,120
Speaker 9: show that I truly wanted it. And I was a

811
00:40:12,200 --> 00:40:16,279
Speaker 9: student of markets. I just loved learning. And over time,

812
00:40:16,360 --> 00:40:20,160
Speaker 9: I was fortunate that folks saw me and gave me

813
00:40:20,200 --> 00:40:23,719
Speaker 9: a chance and opportunity to do more. I raised my

814
00:40:23,760 --> 00:40:26,840
Speaker 9: hand and I asked for more, and you know, fast forward,

815
00:40:28,320 --> 00:40:33,799
Speaker 9: I don't know, twenty something years or more, I'm the

816
00:40:33,880 --> 00:40:39,640
Speaker 9: chief investment officer at one of the most major prominent

817
00:40:39,680 --> 00:40:45,160
Speaker 9: platforms for in Dowmon's Foundation's healthcare pensions. Like the assets

818
00:40:45,160 --> 00:40:47,640
Speaker 9: and the responsibility that we have blows me away, and

819
00:40:47,680 --> 00:40:50,760
Speaker 9: I take it very seriously and I'm just truly grateful

820
00:40:50,800 --> 00:40:51,439
Speaker 9: to be in the seat.

821
00:40:52,440 --> 00:40:57,400
Speaker 3: Women in financial services on Wall Street a constant challenge,

822
00:40:57,440 --> 00:41:00,720
Speaker 3: and in my prior role, I hired a lot of

823
00:41:00,760 --> 00:41:04,640
Speaker 3: folks coming out of school, and our entering classes were

824
00:41:05,040 --> 00:41:08,879
Speaker 3: perfectly diverse, perfectly diverse. Ten years later when it came

825
00:41:08,920 --> 00:41:12,440
Speaker 3: time for the managing director or a partner discussion, not

826
00:41:12,520 --> 00:41:16,239
Speaker 3: so much yep. So what was your experience going through

827
00:41:16,239 --> 00:41:19,439
Speaker 3: this whole process? Having spend that much time in the business.

828
00:41:20,080 --> 00:41:24,359
Speaker 9: I knew that I had to not think about it.

829
00:41:24,360 --> 00:41:26,680
Speaker 9: It was a deliberate choice to not think about it,

830
00:41:26,719 --> 00:41:29,560
Speaker 9: because if I did, and you look at the numbers, like,

831
00:41:29,680 --> 00:41:33,040
Speaker 9: it's very easy to be discouraged. It's very easy to

832
00:41:33,120 --> 00:41:35,439
Speaker 9: say I don't see it, So how can I think

833
00:41:35,520 --> 00:41:38,600
Speaker 9: it and be it? And make no mistake, I did

834
00:41:38,640 --> 00:41:41,920
Speaker 9: think it very often, but I just had to actively

835
00:41:41,920 --> 00:41:45,160
Speaker 9: put it out of my mind. And there are certain

836
00:41:45,239 --> 00:41:49,680
Speaker 9: points that you have as a woman, your choice of

837
00:41:49,719 --> 00:41:53,399
Speaker 9: a partner, your choice of having a family, and when

838
00:41:53,480 --> 00:41:58,480
Speaker 9: you do that, how much time you spend with I

839
00:41:58,480 --> 00:42:01,120
Speaker 9: have a daughter, she's turning five in a few weeks.

840
00:42:02,320 --> 00:42:04,480
Speaker 9: There are points that you will be slower in your

841
00:42:04,680 --> 00:42:07,200
Speaker 9: career as a result of that. It's also a choice

842
00:42:07,200 --> 00:42:09,160
Speaker 9: and there are times that you have the ability to

843
00:42:09,160 --> 00:42:12,440
Speaker 9: do it. For me, I found that it's been support

844
00:42:12,920 --> 00:42:14,600
Speaker 9: and the support system around me.

845
00:42:15,080 --> 00:42:18,319
Speaker 5: And you mean like personal or job wise or both both?

846
00:42:18,680 --> 00:42:23,560
Speaker 9: Yeah, definitely both. The if the job wise is like

847
00:42:23,600 --> 00:42:26,279
Speaker 9: you can do this job, and personally it's hard, you

848
00:42:26,320 --> 00:42:28,200
Speaker 9: have to make that choice. A lot of women are like,

849
00:42:28,239 --> 00:42:30,640
Speaker 9: I will choose and it won't be you. It won't

850
00:42:30,680 --> 00:42:33,239
Speaker 9: be you job, it will be the family because that's

851
00:42:33,480 --> 00:42:34,920
Speaker 9: you know, at the end of the day, when we

852
00:42:35,040 --> 00:42:39,359
Speaker 9: leave this world, that's what matters the most. So when

853
00:42:39,480 --> 00:42:41,719
Speaker 9: put in a situation where you have to choose, and

854
00:42:41,840 --> 00:42:44,600
Speaker 9: many people are in situations whereby they have to choose,

855
00:42:44,640 --> 00:42:49,400
Speaker 9: they don't choose work. So how you have the support

856
00:42:49,440 --> 00:42:52,200
Speaker 9: in place to be able to have both, which you

857
00:42:52,280 --> 00:42:55,280
Speaker 9: can't have them at the same time at the same intensity.

858
00:42:56,160 --> 00:42:57,480
Speaker 9: You know you can have it, but you have to

859
00:42:57,760 --> 00:43:01,120
Speaker 9: stage like sad, my daughter's five are going to be five.

860
00:43:01,600 --> 00:43:04,440
Speaker 9: So I had children later in life in order to

861
00:43:04,480 --> 00:43:07,480
Speaker 9: be able to go as fast as I could without

862
00:43:07,520 --> 00:43:10,600
Speaker 9: making some of those other trade offs, and then having

863
00:43:10,600 --> 00:43:13,319
Speaker 9: the support system in place while you are doing the worst.

864
00:43:13,360 --> 00:43:14,560
Speaker 5: So I love that you brought up support.

865
00:43:14,600 --> 00:43:17,279
Speaker 2: I had a dinner last week with a bunch of

866
00:43:17,320 --> 00:43:20,719
Speaker 2: women in finance, super successful, really great, and eventually it

867
00:43:20,760 --> 00:43:23,520
Speaker 2: turned to the topic of they couldn't do those jobs,

868
00:43:23,600 --> 00:43:26,560
Speaker 2: and it either could I without a really supportive partner,

869
00:43:26,920 --> 00:43:29,479
Speaker 2: and that you learn really fast, particularly when you have kids,

870
00:43:29,520 --> 00:43:32,120
Speaker 2: how supportive that partner is actually going to be, particularly

871
00:43:32,120 --> 00:43:36,040
Speaker 2: when you travel. But that's hard, Like, that's not a given,

872
00:43:36,120 --> 00:43:38,319
Speaker 2: particularly if you're in a if you're a woman with

873
00:43:38,440 --> 00:43:41,400
Speaker 2: like a career driven role, and you put that first.

874
00:43:41,480 --> 00:43:44,839
Speaker 5: That's not a given in the world, not a given

875
00:43:44,880 --> 00:43:45,160
Speaker 5: at all.

876
00:43:45,200 --> 00:43:48,239
Speaker 9: And you know, in life and in work, there is

877
00:43:48,760 --> 00:43:52,040
Speaker 9: your ability to work hard, your intelligence, and then there

878
00:43:52,120 --> 00:43:54,800
Speaker 9: is luck. And I will admit that there's there's a

879
00:43:54,880 --> 00:43:57,200
Speaker 9: lot of luck that I've had. My husband, I've known

880
00:43:57,200 --> 00:43:57,920
Speaker 9: since I was eighteen.

881
00:43:58,400 --> 00:43:59,200
Speaker 5: Oh my goodness.

882
00:43:59,760 --> 00:44:02,240
Speaker 3: So we grew up together.

883
00:44:02,640 --> 00:44:05,760
Speaker 9: Essentially it was okay, you go to school, you're working,

884
00:44:05,880 --> 00:44:08,280
Speaker 9: you're was going it was it was it was trade

885
00:44:08,280 --> 00:44:11,520
Speaker 9: offs and who's on, who's off, How do we do

886
00:44:11,600 --> 00:44:16,080
Speaker 9: it and who knew. You know, the stats in this

887
00:44:16,200 --> 00:44:19,640
Speaker 9: in this country are not necessarily encouraging in that respect,

888
00:44:19,640 --> 00:44:22,239
Speaker 9: But we communicate a lot, and we have honest conversations.

889
00:44:22,239 --> 00:44:26,480
Speaker 9: Who's on, who's off, who, who picks up the gap

890
00:44:26,520 --> 00:44:27,279
Speaker 9: and for how long?

891
00:44:28,200 --> 00:44:28,960
Speaker 8: That's interesting.

892
00:44:29,280 --> 00:44:30,959
Speaker 3: I think what we learned just real quickly at thirty

893
00:44:31,000 --> 00:44:34,879
Speaker 3: seconds the childcare and now the elder care in this country. Boy,

894
00:44:34,920 --> 00:44:36,319
Speaker 3: that's got to change. We learned that. I think during

895
00:44:36,360 --> 00:44:38,480
Speaker 3: the pandemic, people who weren't aware of it, they got

896
00:44:38,520 --> 00:44:40,120
Speaker 3: they became aware of it pretty quickly.

897
00:44:40,280 --> 00:44:47,000
Speaker 9: Yes, absolutely, and the pandemic was a big equalizer for

898
00:44:47,200 --> 00:44:50,160
Speaker 9: many family like men and women whatever. It was like

899
00:44:50,200 --> 00:44:53,360
Speaker 9: everyone had to pitch up and roll up their sleeves.

900
00:44:54,239 --> 00:44:58,319
Speaker 9: You could have a nanny, but could they come in Nope, right,

901
00:44:58,520 --> 00:45:01,960
Speaker 9: So that was it. And then you had that plus

902
00:45:02,040 --> 00:45:06,160
Speaker 9: if you had elderly parents, which my parents are not

903
00:45:06,200 --> 00:45:11,279
Speaker 9: in this country, my husband had at the time, and

904
00:45:11,320 --> 00:45:15,600
Speaker 9: how you're navigating that on both sides, you can get pulled, frankly,

905
00:45:16,320 --> 00:45:19,960
Speaker 9: to be able to do that. During the pandemic, it

906
00:45:20,080 --> 00:45:22,960
Speaker 9: was everybody was experiencing that. But if you remove the

907
00:45:23,000 --> 00:45:27,840
Speaker 9: pandemic and quote unquote normal times, it's hard to be

908
00:45:27,880 --> 00:45:30,759
Speaker 9: able to have that empathy in place with people that

909
00:45:30,800 --> 00:45:34,160
Speaker 9: are managing a number of other personal commitments.

910
00:45:34,960 --> 00:45:37,640
Speaker 2: I could talk to you for dance, so definitely come back.

911
00:45:37,760 --> 00:45:39,120
Speaker 2: We can do a little bit of this. We can

912
00:45:39,120 --> 00:45:41,719
Speaker 2: talk about your market views.

913
00:45:41,760 --> 00:45:43,560
Speaker 5: Really amazing. Thank you so much for sharing.

914
00:45:43,560 --> 00:45:45,160
Speaker 2: You're speaking a lot of what I hear about all

915
00:45:45,160 --> 00:45:46,719
Speaker 2: the time and things that I go through too, So

916
00:45:46,719 --> 00:45:47,560
Speaker 2: thank you for sharing that.

917
00:45:47,640 --> 00:45:51,720
Speaker 5: Lalua Ganga. She's US Chief investment officer over at Mercer.

918
00:45:52,120 --> 00:45:56,640
Speaker 1: This is the Bloomberg Intelligence podcast, available on Apples, Spotify,

919
00:45:56,840 --> 00:45:59,719
Speaker 1: and anywhere else you will get your podcasts. Listen live

920
00:46:00,120 --> 00:46:03,600
Speaker 1: weekday ten am toanoon Eastern on Bloomberg dot com, the

921
00:46:03,719 --> 00:46:07,160
Speaker 1: iHeartRadio app, tune In, and the Bloomberg Business app. You

922
00:46:07,200 --> 00:46:10,400
Speaker 1: can also watch us live every weekday on YouTube and

923
00:46:10,560 --> 00:46:12,160
Speaker 1: always on the Bloomberg terminal.