WEBVTT - Using Smaller Labs for Virus Testing, Mark Carney Joins Brookfield, U.S. Produced Chemicals Fuel Mexican Drug Cartels 0:00:00.720 --> 0:00:03.720 This is Bloomberg Business Week. I'm Carol Masser and I'm 0:00:03.800 --> 0:00:06.320 Jason Kelly. We're right here every day bringing you the 0:00:06.400 --> 0:00:11.200 latest news from the world's of business and finance, plus technology, politics, economics, 0:00:11.240 --> 0:00:14.320 all harnessing the power of Business Week reporters and editors. 0:00:14.480 --> 0:00:16.439 And of course Carol that's part of a team of 0:00:16.560 --> 0:00:20.439 twenty seven hundred journalists and analysts more than a hundred 0:00:20.480 --> 0:00:23.240 and twenty countries and Jason. You can download Bloomberg Business 0:00:23.280 --> 0:00:26.240 Week on iTunes, SoundCloud, ol Bloomberg dot com. You can 0:00:26.280 --> 0:00:28.640 also listen to our radio show at two pm Eastern 0:00:28.680 --> 0:00:31.600 on Bloomberg Radio every weekday, or watch us on YouTube 0:00:31.600 --> 0:00:35.000 by searching Bloomberg Global News. All right, let's get you going, 0:00:35.000 --> 0:00:37.879 because we've got some serious stories also going on as 0:00:37.880 --> 0:00:41.559 we watched that hurricane bearing down, uh certainly on the 0:00:41.640 --> 0:00:44.040 golf right now. So let's start things off with the 0:00:44.120 --> 0:00:46.120 check on the trading day and Charlie Palin, Hi, thank 0:00:46.159 --> 0:00:48.800 you very much. Indeed, category four hurricane. Now we've got 0:00:48.840 --> 0:00:52.080 the dal the SMPNZDAC at or near best level of 0:00:52.120 --> 0:00:54.400 the day. In fact, we are looking at records for 0:00:54.560 --> 0:00:56.959 in a row now for the SMPN nastac. Let's get 0:00:57.040 --> 0:00:59.360 right to the numbers. SMP up thirty that is a 0:00:59.400 --> 0:01:01.640 gain of nine tenths of one percent. That now is 0:01:01.720 --> 0:01:04.080 up thirty four points, now hard by one tenth of 0:01:04.120 --> 0:01:06.880 one percent. Now the stack is up one hundred and 0:01:07.000 --> 0:01:10.200 eighty seven points, up one point six percent year today 0:01:10.240 --> 0:01:13.520 column on the Bloomberg up twenty nine point nine percent, 0:01:13.959 --> 0:01:16.400 ten year yield point six eight percent. Gold is up 0:01:16.440 --> 0:01:20.520 one percent seven ounce and West Texas Enemedia crude oil 0:01:20.560 --> 0:01:24.120 now up three tenths of one percent forty three forty barrel. 0:01:24.160 --> 0:01:27.759 I'm Charlie Pellot. That is a Bloomberg business flash. All right, Charlie, 0:01:27.800 --> 0:01:30.040 thanks so much. You are listening to Bloomberg Business Week. 0:01:30.080 --> 0:01:32.640 This portion brought you by Commonwealth Financial Network. Be the 0:01:32.640 --> 0:01:35.760 independent advisor you've always wanted to be with all the 0:01:35.840 --> 0:01:38.560 support you need to get there. Visit common Wealth dot 0:01:38.600 --> 0:01:43.440 com to learn more. And we got to set the 0:01:43.440 --> 0:01:48.440 Business week agenda, Harold, because you mentioned that market woa. 0:01:48.720 --> 0:01:51.920 I mean it is something to behold. Given all the headlines, 0:01:51.960 --> 0:01:54.520 you run down the most read as we often do, 0:01:54.720 --> 0:02:02.080 and you just think, oh okay, so stocks are up cool, alright, great, um, yeah, 0:02:02.240 --> 0:02:04.960 let's check in with our team if we can. We've 0:02:04.960 --> 0:02:07.520 got them assembled in the great state of New Jersey. 0:02:07.560 --> 0:02:11.120 Talking about Gina Martin Adams, chief equity strategist for Bloomberg Intelligence, 0:02:11.440 --> 0:02:14.480 on the phone from New Jersey. Also there Dave Wilson, 0:02:14.560 --> 0:02:17.120 Stocks Editor, author of the chart and stock of the Day. 0:02:17.200 --> 0:02:21.840 So Gina, help us understand this market. And maybe it's 0:02:21.919 --> 0:02:24.919 just these Tex stocks, but I have to think it's 0:02:24.960 --> 0:02:28.280 more than that. With this drive higher, I you know, 0:02:28.360 --> 0:02:32.119 I think it's more confirmation that monetary policy is going 0:02:32.160 --> 0:02:35.880 to remain extremely accommodative for a very long period of time. 0:02:35.960 --> 0:02:40.120 And frankly, that's been the driver from my perspective. That's 0:02:40.120 --> 0:02:43.880 been the driver since March and it really hasn't changed. 0:02:44.360 --> 0:02:47.600 You get a little bit of UM, greater optimism that 0:02:47.720 --> 0:02:51.600 we probably will experience economic recovery which will lead to 0:02:51.600 --> 0:02:55.839 bigger earnings recovery into eleven. On top of that confidence 0:02:56.000 --> 0:03:00.679 of monetary policy remaining extremely accommodative, and nowhere else to 0:03:00.760 --> 0:03:03.000 go but stocks. You've got to be willing to take 0:03:03.040 --> 0:03:06.560 a little bit of risk, utilize the liquidity to put 0:03:06.600 --> 0:03:10.320 that money to work when rates are at zero UM, 0:03:10.400 --> 0:03:12.440 and so stocks are kind of the sweet spot and 0:03:12.520 --> 0:03:14.560 I think that the market is reflecting that. You know, 0:03:14.639 --> 0:03:16.880 the other thing I think is that this idea that 0:03:16.919 --> 0:03:19.440 this is a one sided, one trade market in favor 0:03:19.480 --> 0:03:26.360 of thanks is completely overstated. Actually interesting, the data of 0:03:26.400 --> 0:03:31.800 stocks in the SPI trading above their fifty day moving average, rights, 0:03:31.800 --> 0:03:33.680 they're trading above their two hunter day moving ever. So 0:03:33.720 --> 0:03:36.560 it's blood big. Guys are big, and they keep getting bigger. 0:03:37.080 --> 0:03:39.480 But there's a decent amount of breaths here. That's I 0:03:39.480 --> 0:03:42.080 think a really really really really good point. And I 0:03:42.120 --> 0:03:45.320 also go back to what you said, well, Chause, Gina 0:03:45.360 --> 0:03:47.920 deserves a lot of realities. But the point is also, 0:03:48.160 --> 0:03:49.800 you know, we're going to talk about j Powell and 0:03:49.840 --> 0:03:52.760 the upcoming Jackson Hole meeting. I mean, the expectations are 0:03:52.840 --> 0:03:54.720 that the you know, we're gonna have zero rates for 0:03:54.720 --> 0:03:57.440 a long time, So, Gina, people are going to increasingly 0:03:57.520 --> 0:03:59.840 be looking for yield, and that is going to take 0:03:59.840 --> 0:04:02.480 you off into the stock market. Yeah, you've got to 0:04:02.520 --> 0:04:06.200 find it somewhere. And with spreads tight, with yields across 0:04:06.240 --> 0:04:09.600 the treasury curve incredibly low, with even emerging market debt 0:04:09.640 --> 0:04:13.440 has rallied, there's just not a lot of opportunity. Um 0:04:13.600 --> 0:04:16.520 for places to put your cash, but none. Nonetheless, you 0:04:16.520 --> 0:04:19.200 don't want to put it in zero percent earning money 0:04:19.240 --> 0:04:23.560 market funds, So there there definitely is an incentive to 0:04:23.600 --> 0:04:25.520 take on some degree of risk. Now, I would not 0:04:25.560 --> 0:04:28.919 go so far as to say that there's evident tremendous 0:04:29.000 --> 0:04:31.760 risk tolerance out there right. If there were, then we 0:04:31.800 --> 0:04:35.240 would see not necessarily the big defensive tech stocks and 0:04:35.320 --> 0:04:39.080 healthcare stocks and communication stocks leading to the extent that 0:04:39.120 --> 0:04:41.800 they are. We would see some of the value stocks 0:04:41.800 --> 0:04:44.280 starting to really show some leadership. So we haven't even 0:04:44.320 --> 0:04:48.279 seen that in great scale. That could be what's next 0:04:48.320 --> 0:04:50.200 to drive us even higher if we can get some 0:04:50.240 --> 0:04:53.960 economic momentum while the fit's so easy. All right, Dave Wilson, 0:04:54.000 --> 0:04:56.080 what's on your mind today? What are you seeing that's 0:04:56.120 --> 0:04:59.279 new and interesting, either with specific names or things that 0:04:59.320 --> 0:05:01.280 are driving them market that may not be obvious to 0:05:01.560 --> 0:05:04.400 mere mortals like us. Well, you know, we've already brought 0:05:04.480 --> 0:05:08.039 up the fang stocks, and boy, you see three out 0:05:08.040 --> 0:05:10.599 of the four among the day's best performers in the 0:05:10.760 --> 0:05:13.479 S and P five hundred. You know, there's Facebook, which 0:05:13.520 --> 0:05:15.919 is up almost seven percent, even though they're talking about 0:05:15.920 --> 0:05:19.240 how changes to Apple's operating system for iPhones and if 0:05:19.480 --> 0:05:23.479 iPads going to hurt their advertising network, and of course 0:05:23.560 --> 0:05:26.400 that's where the revenue comes from. A Facebook. You know, 0:05:26.480 --> 0:05:31.280 you've got Amazon dot Com up about three another day, 0:05:31.320 --> 0:05:34.839 another adventure for that online retailer, or so it seems. 0:05:35.320 --> 0:05:38.320 And then you know you have Netflix and their name 0:05:38.400 --> 0:05:42.480 is being tossed about as a potential bidder, uh for TikTok. 0:05:42.600 --> 0:05:45.320 Now whether that happens or not, who the heck knows. Uh, 0:05:45.360 --> 0:05:48.600 it looks like they've kind of backed away from that possibility, 0:05:49.040 --> 0:05:52.520 and Netflix is up ten a percent and they all 0:05:52.600 --> 0:05:55.920 kind of take a backseat to Salesforce dot Com today, 0:05:56.000 --> 0:05:58.640 which you know, if it were next week and the 0:05:58.680 --> 0:06:01.560 company was into down Jones Industrial Average, it would be 0:06:01.600 --> 0:06:03.880 given a serious lift to the town. It's up more 0:06:03.880 --> 0:06:08.560 than twenty in the wake of its earnings. Yeah, that's 0:06:08.560 --> 0:06:10.719 a big bit. You know. It was interesting to talk 0:06:10.760 --> 0:06:13.600 to Nico Grant about the Salesforces move into the TAO 0:06:13.880 --> 0:06:15.200 and I was like, so, how big of a deal 0:06:15.200 --> 0:06:17.080 is this. He's like, this is a huge deal. This 0:06:17.120 --> 0:06:20.080 is a massive deal in part about what it says 0:06:20.120 --> 0:06:23.200 about the company, but in part what it says about 0:06:23.240 --> 0:06:26.560 the space that they're playing in who they're replacing, like 0:06:26.839 --> 0:06:29.680 the power of that company and how big it's scotten 0:06:29.720 --> 0:06:33.200 and how influential it's gotten over time. All right, Dave Wilson, 0:06:33.400 --> 0:06:36.360 quick tease for the chart of the day. Oh, you know, 0:06:36.760 --> 0:06:39.840 look at what's going on with the SMP. You think 0:06:39.839 --> 0:06:42.800 it's all about the mega cab companies, you know, the 0:06:42.880 --> 0:06:46.839 things we've already talked about them. That group has years 0:06:47.000 --> 0:06:49.239 right just to overcome and I'll show that with the chart. 0:06:50.320 --> 0:06:52.599 All right, Thank you both so much. Dave Wilson will 0:06:52.640 --> 0:06:55.279 catch up with you a little bit later at Gina 0:06:55.320 --> 0:06:58.400 Martin Adams. Thank you so much. From it was so 0:06:58.440 --> 0:07:00.520 important because we keep talking about it's all the tech. 0:07:00.560 --> 0:07:01.680 It's all on the tech, but we need to think 0:07:01.680 --> 0:07:04.400 about what else it's in. I might say it's really really, 0:07:04.440 --> 0:07:07.520 really really important. You would, just because an I did. 0:07:07.920 --> 0:07:11.520 You're listening to Bloomberg Business Week with Carol Masser and 0:07:11.640 --> 0:07:15.160 Jason Kelly on Bloomberg Radio. You know, we've been talking 0:07:15.240 --> 0:07:19.120 a bit about vaccines, but we also know that testing 0:07:19.560 --> 0:07:22.720 is huge. It's it's huge, especially as we think about 0:07:23.080 --> 0:07:26.440 getting back to something resembling normal life. Whatever this next 0:07:26.480 --> 0:07:29.400 normal is going to be we're lucky to have with this. 0:07:29.600 --> 0:07:33.560 Ali Dovar excuse me, Ali, am I pronouncing your name right. 0:07:34.280 --> 0:07:37.360 That's great, Yeah, that's perfect. Thank you good co founder 0:07:37.440 --> 0:07:42.120 of Atlas. I d joining us on the phone from Vancouver. So, Ali, 0:07:42.240 --> 0:07:45.840 tell us exactly about what you're doing, because rapid testing 0:07:45.880 --> 0:07:52.200 and getting tested in in all aspects so important right now. Yeah, 0:07:52.240 --> 0:07:54.800 I mean testing the broad category and rappid testing is 0:07:54.840 --> 0:07:57.160 part of it. Um. What we're doing right now is 0:07:57.200 --> 0:08:01.560 we're trying to help employers essentially get connected with testing 0:08:01.600 --> 0:08:06.320 capacity and actually do virtual health checks on employees that 0:08:06.360 --> 0:08:09.360 need to come back to work. That includes like coordinating 0:08:09.440 --> 0:08:14.720 testing and also helping facilitate that they get delivery times 0:08:14.760 --> 0:08:19.880 turn around times such that the testings look useful. So 0:08:19.960 --> 0:08:22.000 tell us about your role in all of this, because 0:08:22.040 --> 0:08:23.400 I think this is such a big part of it. 0:08:23.440 --> 0:08:25.160 I can't tell you how many times where somebody's like, 0:08:25.200 --> 0:08:26.760 you've got to get a test, but this place tells 0:08:26.800 --> 0:08:29.520 me it's going to take you know, two weeks. How 0:08:29.600 --> 0:08:31.280 useful is that this place is gonna take me a 0:08:31.320 --> 0:08:33.160 couple of days. Tell me a little bit about your 0:08:33.280 --> 0:08:35.640 role in all of this, because you guys are not 0:08:35.720 --> 0:08:38.720 in the testing business, but you are helping others, other companies, 0:08:38.720 --> 0:08:42.679 other employers facilitate testing, which we know is so crucial 0:08:43.080 --> 0:08:45.280 to where we are right now and really trying to 0:08:45.320 --> 0:08:47.400 help us all get back to maybe normal, maybe get 0:08:47.440 --> 0:08:49.760 back to work, get back to some things, get back 0:08:49.800 --> 0:08:52.520 to school, and all of those things. So what exactly 0:08:52.559 --> 0:08:58.439 do you guys do? Yeah, essentially, we're facilitating uh, these 0:08:58.480 --> 0:09:00.760 smaller and medium sized business is that need to get 0:09:00.800 --> 0:09:02.880 employees back to work to do testing. So that's a 0:09:02.920 --> 0:09:07.040 real coordination challenge, that's a real facilitation challenge, and making 0:09:07.040 --> 0:09:09.439 sure that they get access to the laboratories out there 0:09:09.440 --> 0:09:14.440 that have the capacity to test. So really, you know, 0:09:14.520 --> 0:09:18.880 the big labs are really uh caught up on public 0:09:18.920 --> 0:09:23.640 testing and the capacities already sort of add its limit there. 0:09:23.679 --> 0:09:28.280 But there's these smaller labs that have capacity and will 0:09:28.320 --> 0:09:32.920 come online um if they have visibility and are able 0:09:32.960 --> 0:09:34.880 to connect to the employers. So it's a bit of 0:09:34.880 --> 0:09:39.320 a matching problem. So we're the coordinator in between, and 0:09:39.360 --> 0:09:43.440 we're making sure that this kind of this testing gets 0:09:43.480 --> 0:09:47.040 to the employers that need it. And so tell us 0:09:47.040 --> 0:09:51.079 about the demand from employers because I know we're looking 0:09:51.120 --> 0:09:53.600 at a fall where people are, at least in New 0:09:53.640 --> 0:09:57.120 York City and certainly elsewhere trying to get people back in. 0:09:57.520 --> 0:10:01.040 How much do you worry about demand versus supply, both 0:10:01.120 --> 0:10:08.240 supply of tests but also supply of essentially evaluating those tests. Yeah, 0:10:08.320 --> 0:10:10.840 we went on in the evaluation business. We let the 0:10:10.880 --> 0:10:13.559 FDA do that. So I mean, sorry, I mean, not 0:10:13.720 --> 0:10:17.840 the value. I mean just basically like the processing of tests, 0:10:17.840 --> 0:10:22.440 That's what I mean. Sorry, Yeah, absolutely, yeah, So I 0:10:22.440 --> 0:10:27.240 mean demand is gonna spike, I think on all fronts 0:10:27.360 --> 0:10:32.079 because that we're approaching the influence of season. But at 0:10:32.080 --> 0:10:34.960 the same time, we're seeing employers get visibility into the 0:10:34.960 --> 0:10:39.080 consequences is not testing, so they're looking across at other employers, 0:10:39.559 --> 0:10:42.880 you know, seeing what happens when an outbreak happens, and 0:10:42.960 --> 0:10:45.600 that means shutting down the business of liability around that. 0:10:45.679 --> 0:10:48.600 And just the nature of this disease is, you know 0:10:48.720 --> 0:10:51.560 it you can be asymptomatic and spread so that that 0:10:51.800 --> 0:10:55.800 that happens in about cases and the workplace is one 0:10:55.840 --> 0:10:58.400 of those places where you you're really you're you're liable 0:10:58.440 --> 0:11:01.080 to have a real outbreak, So it's it's a real problem. 0:11:01.400 --> 0:11:06.120 So how much is your business change because of the virus. Well, 0:11:06.120 --> 0:11:08.920 we have developed a deep technology and we've been working 0:11:08.960 --> 0:11:12.680 on it for a while. What we've done, it's essentially 0:11:12.760 --> 0:11:16.400 utilized this technology to serve as this platform so the 0:11:16.480 --> 0:11:19.920 data is more private and secure and also facilitates this 0:11:20.040 --> 0:11:22.800 matching to happen. So a lot of these smaller labs 0:11:23.000 --> 0:11:27.520 don't really have the technology to deliver the credential, the 0:11:27.600 --> 0:11:31.080 test results, and eventually the vaccines in a way that 0:11:31.160 --> 0:11:33.920 employers might want to utilize it. So that means like, 0:11:34.000 --> 0:11:36.280 so we have film and TV customers that we put 0:11:36.280 --> 0:11:40.200 set up checkpoints zones. We have manufacturers that need to 0:11:40.280 --> 0:11:45.000 display this credential of testing or that as vaccine as 0:11:45.000 --> 0:11:49.000 that they may come to partners on site. There's all 0:11:49.080 --> 0:11:53.000 these use cases for employers to use this that these 0:11:53.160 --> 0:11:55.680 labs are really not set up to meet. Well there's 0:11:55.679 --> 0:11:58.079 some an email for instance, right, or are they sort 0:11:58.080 --> 0:12:00.960 of spreadsheet that's just not that's not out. That's how 0:12:01.000 --> 0:12:03.840 the nature of this problem. So we really are facilitating 0:12:03.960 --> 0:12:08.040 them getting connected and delivering that data in a way 0:12:08.080 --> 0:12:11.240 that's useful for employers. Yeah, Ali, this actually feeds into 0:12:11.280 --> 0:12:13.440 something Jason, I've had lots of conversations. I mean this 0:12:13.440 --> 0:12:16.280 whole idea of testing and tracing, but just testing. You know, 0:12:16.320 --> 0:12:18.560 when you think about the schools and colleges that we've 0:12:18.559 --> 0:12:22.319 talked to, it's about doing multiple tests, you know, or 0:12:22.400 --> 0:12:24.600 testing several times a day or several times a week 0:12:25.000 --> 0:12:27.680 to make sure you know communities are safe. Ali, thank 0:12:27.720 --> 0:12:30.000 you so much for checking in with us and letting 0:12:30.200 --> 0:12:31.880 us know what you guys are up to. He's the 0:12:31.880 --> 0:12:34.520 co founder of Atlas I d Ali Davar. You're listening 0:12:34.600 --> 0:12:38.400 to Bloomberg Business Week with Carol Masser and Jason Kelly 0:12:38.600 --> 0:12:42.120 on Bloomberg Radio. Let's get right to this story. Scott 0:12:42.200 --> 0:12:44.839 to Vote. I was so fortunate to just ride along 0:12:44.880 --> 0:12:46.800 with him, sort of like I ride along with you, Carol, 0:12:47.000 --> 0:12:48.959 you know, and just enjoy the good work that's being done. 0:12:49.000 --> 0:12:50.480 I did the same with Scott to Vote this week 0:12:50.760 --> 0:12:55.199 deals reporters so much more for Bloomberg answering the question 0:12:55.480 --> 0:12:58.560 so many had Scott about where Mark Karney was going 0:12:58.600 --> 0:13:01.920 to end up. Brooke feel winning the sweepstakes. This is 0:13:01.920 --> 0:13:05.640 a big higher. Yeah. I think he's probably the most 0:13:05.679 --> 0:13:08.440 coveted guy that was out there, you know, um in 0:13:08.480 --> 0:13:10.240 the early part of the year, at least for Business 0:13:10.240 --> 0:13:14.640 and politics. UM, there's been plenty of rumors swirling around. UM. 0:13:14.679 --> 0:13:18.600 You know, in particular after our colleagues broke that uh 0:13:19.080 --> 0:13:21.679 he was he was doing an informal role with the 0:13:21.679 --> 0:13:24.120 Prime Minister of Canada, you know, helping with the plan 0:13:24.240 --> 0:13:27.679 to recover from COVID. UM. People started thinking that maybe 0:13:27.720 --> 0:13:31.880 he would replace the outgoing finance minister, but obviously that 0:13:31.920 --> 0:13:35.240 did not take place. I mean this is so what 0:13:35.440 --> 0:13:39.120 does this do for him? What does this do? Um 0:13:39.280 --> 0:13:43.000 for the private equity firm Brookfield. So I guess the 0:13:43.040 --> 0:13:45.800 big thing will be that he is going to lead 0:13:45.840 --> 0:13:49.520 a new initiative to basically build a new stilo for 0:13:49.559 --> 0:13:53.240 Brookfield that will do E s G investing, so focusing 0:13:53.240 --> 0:13:58.280 on environmental, social and governance issues. UM. And you know 0:13:58.400 --> 0:14:03.720 Brookfield has basic for stylos right now in renewable energy, infrastructure, 0:14:04.200 --> 0:14:07.120 property and they have a private equity arm. So the 0:14:07.160 --> 0:14:12.000 idea would be too, he's going to oversee this new 0:14:12.120 --> 0:14:15.800 vertical for Brookfield UM. And they think it's going to 0:14:15.880 --> 0:14:18.320 be you know, as big as any of the other verticals, 0:14:18.360 --> 0:14:22.680 which ranged from fifty billion to eight six billion. I 0:14:22.760 --> 0:14:26.720 believe in assets under management UM. And so more importantly, 0:14:26.720 --> 0:14:30.880 I think. Um. What Mark told us Jason and I 0:14:31.440 --> 0:14:36.160 yesterday was that um he was, uh, you know, looking 0:14:36.200 --> 0:14:39.120 for something where he could marry some of his passions. Um. 0:14:39.160 --> 0:14:42.400 You know he's been a big climate change um you know, 0:14:43.160 --> 0:14:49.960 um proponent and also for businesses. Uh that aren't you know, 0:14:50.440 --> 0:14:53.720 getting on this climate change and initiative he's been you know, 0:14:53.840 --> 0:14:57.440 quite critical of So he'll be able to do both. Yeah, 0:14:57.480 --> 0:14:59.560 I mean, Scott, what struck me as you and I 0:14:59.600 --> 0:15:01.800 were catch ing up with Mark Karney and Bruce flat 0:15:01.800 --> 0:15:04.640 the sea of Brookfield esterday and sort of understanding what 0:15:04.680 --> 0:15:07.960 was behind all this really was the size of the opportunity. 0:15:07.960 --> 0:15:10.000 And one of the things that you and I and 0:15:10.360 --> 0:15:13.720 Carol have all learned and watching this business over the 0:15:13.760 --> 0:15:17.000 past few years is that the scale and the ability 0:15:17.080 --> 0:15:20.480 to do really big things matters. And that's what's ultimately 0:15:20.520 --> 0:15:22.560 and I was glad that you really pushed this to 0:15:22.600 --> 0:15:25.320 the fore in the story too. That is what has 0:15:25.360 --> 0:15:29.440 made Brookfield so competitive and now really only second to 0:15:29.560 --> 0:15:32.200 Blackstone when it comes to the world of alternative assets. 0:15:32.680 --> 0:15:36.120 Big investors are looking for investors who can put lots 0:15:36.120 --> 0:15:38.840 of money to work, and that doesn't exist in this 0:15:38.880 --> 0:15:42.280 space right now. When it comes to E s G. Yeah, 0:15:42.320 --> 0:15:43.840 I agree. I think that was one of the things 0:15:43.840 --> 0:15:46.400 that jumped out at me. I think Bruce Flatt said 0:15:46.600 --> 0:15:48.400 something along the lines of, you know, in terms of 0:15:48.400 --> 0:15:50.680 the kind of funds that they're thinking of raising, there's 0:15:50.680 --> 0:15:54.600 only been a counter fifteen billion raised globally at UH 0:15:54.680 --> 0:15:57.400 for similar funds, and he thinks it's hundreds of billions 0:15:57.400 --> 0:16:01.560 of dollars sitting on the sidelines looking for something like this. Yeah. 0:16:01.760 --> 0:16:04.360 I do wonder if like we're at, you know, a 0:16:04.440 --> 0:16:06.640 turning point. Scott Jason and I've talked about this, but 0:16:06.680 --> 0:16:08.320 when it comes to E s G, I do feel like, 0:16:08.640 --> 0:16:11.400 all of a sudden, you know, some of these bigger players, 0:16:11.400 --> 0:16:14.800 these all asset type investors to are just looking at 0:16:14.800 --> 0:16:16.680 E s G in a very different way and really 0:16:16.720 --> 0:16:20.400 kind of like E s G has grown up. Yeah. 0:16:20.440 --> 0:16:24.040 I think that's probably true because if you think about um, 0:16:24.160 --> 0:16:26.960 you know, the constituents of you know, the pension signs 0:16:27.360 --> 0:16:31.360 and um you know even you know, even some of 0:16:31.360 --> 0:16:35.440 the big asset managers, UM. You think about who's who's 0:16:35.440 --> 0:16:39.040 putting their money into these kind of um UH funds 0:16:39.080 --> 0:16:41.920 that Brookfield would be raising, and these people are people 0:16:41.960 --> 0:16:45.200 that have been you know, pounding the pavement about you know, 0:16:45.480 --> 0:16:49.280 needing to fix social issues, environmental issues, and they want 0:16:49.280 --> 0:16:52.520 to put their money where they can trust um that 0:16:52.640 --> 0:16:55.680 they'll you know, they'll be getting a good return, but 0:16:55.720 --> 0:16:58.720 they'll also be doing good generally for you know, the 0:16:58.720 --> 0:17:01.480 modern society. A lot of these implications. If you don't 0:17:01.560 --> 0:17:03.560 now whether it's legal total, it's the impact. Like you, 0:17:03.720 --> 0:17:05.399 you know, you can cost your company a lot of 0:17:05.400 --> 0:17:08.399 money by not um falling in line with this stuff. 0:17:08.400 --> 0:17:10.679 So cool. Good to work with you on this one. 0:17:10.680 --> 0:17:13.680 Scott to Vote Deal's reporter for Bloomberg, breaking the news 0:17:13.720 --> 0:17:16.080 that Mark Karney's going to Brookfield. I have to say, Carol, 0:17:17.280 --> 0:17:19.639 I have to think that Steve Schwartz and Henry Kravits 0:17:19.640 --> 0:17:24.080 and others are like book Field. They got him. You 0:17:24.160 --> 0:17:29.040 are listening to Bloomberg Business Week, Jason Kelly and Carol Masser. Well, 0:17:29.200 --> 0:17:32.640 this next story, it takes us to Mexico, but by 0:17:32.680 --> 0:17:35.119 way of London, because that's where we find one of 0:17:35.160 --> 0:17:38.199 the reporters involved in this Camp Simpson News Projects and 0:17:38.280 --> 0:17:42.600 Investigations reporter for Bloomberg. We find him in London, along 0:17:42.640 --> 0:17:47.080 with in Massachusetts Joel Webber, the editor of Bloomberg Business Week, 0:17:47.280 --> 0:17:50.320 all about a story the US drug crisis is made 0:17:50.320 --> 0:17:55.040 in Mexico with American raw materials, Joel I have to say, 0:17:55.080 --> 0:17:58.640 this story is really I don't know what any other ways, 0:17:58.840 --> 0:18:03.080 it's really disturbing, super disturbing. And tons of credit to 0:18:03.160 --> 0:18:06.960 Cam for really sticking through this. Uh, he's been working 0:18:06.960 --> 0:18:08.520 on it for a long time, which I'm sure he 0:18:08.560 --> 0:18:10.440 can tell us all about. But you know, the main 0:18:10.480 --> 0:18:12.440 thing here is, you know, obviously we're in the middle 0:18:12.480 --> 0:18:15.359 of a pandemic, and we've just done vaccine issues, and 0:18:15.400 --> 0:18:18.080 that's a story that you know, we're I think is 0:18:18.080 --> 0:18:21.119 is here and now. But let's not forget that there's 0:18:21.160 --> 0:18:24.560 this unfolding epidemic that's been going on for more than 0:18:24.600 --> 0:18:28.199 a decade now, involving heroin and meth and the and 0:18:28.280 --> 0:18:31.680 the kind of the most salacious thing that Cam's discovered 0:18:31.680 --> 0:18:36.720 in his reporting is that US companies, um one of 0:18:36.720 --> 0:18:40.760 which is publicly traded, are actually making the raw ingredients 0:18:40.880 --> 0:18:46.280 that Mexican cartels are exploiting in Mexico. You can't they 0:18:46.280 --> 0:18:48.119 can't obviously make them in the US, but they can 0:18:48.160 --> 0:18:51.080 make them, uh, their subsidiaries can make them in Mexico. 0:18:51.760 --> 0:18:54.800 That's where they've been rated stolen there in jugs. They 0:18:54.800 --> 0:18:57.400 can actually just be bought over the counter even and 0:18:57.480 --> 0:19:02.800 those are fueling base weekly this ongoing epidemic. Cam. How 0:19:02.840 --> 0:19:06.600 did you find out about this story and and what 0:19:06.600 --> 0:19:10.639 what makes you so frustrated about it? Yeah? Thanks, jo 0:19:10.920 --> 0:19:15.200 Um Gosh. Well, you know, the space that I've worked 0:19:15.240 --> 0:19:17.399 in for the last couple of decades is sort of 0:19:17.440 --> 0:19:22.000 the blind spots created by globalization and you know, transnational 0:19:22.080 --> 0:19:26.720 illicit trade. All kinds of things happen, you know, especially 0:19:26.720 --> 0:19:29.720 with corporations in these blind spots, whether it's human trafficking 0:19:29.880 --> 0:19:32.199 or whatever is in your supply chain that that you 0:19:32.240 --> 0:19:35.359 don't want to look at. And I think probably about gosh, 0:19:35.400 --> 0:19:37.720 it's been probably about eight years ago I read a 0:19:37.800 --> 0:19:41.960 journal article about the trafficking in this this chemical, So 0:19:42.040 --> 0:19:44.199 you have all the heroine that's ever been made in 0:19:44.200 --> 0:19:46.280 the world has been made with a single chemical. It's 0:19:46.320 --> 0:19:49.360 required to make heroin. It's called a cetic and hydride. 0:19:49.359 --> 0:19:52.359 When it was initially discovered in eighteen seventy four by 0:19:52.359 --> 0:19:55.200 an English chemist, he did it with this chemical called 0:19:55.200 --> 0:19:58.800 acetic and hydride, and so it's it's for the last 0:19:58.840 --> 0:20:04.840 twenty years been the heavenly regulated products. You can imagine 0:20:04.880 --> 0:20:07.840 in the international trade under international drug laws pushed by 0:20:07.840 --> 0:20:11.440 the US all over the world, it's incredibly restricted, and 0:20:11.640 --> 0:20:14.240 you know, I read about in Afghanistan it's completely illegal. 0:20:14.280 --> 0:20:16.320 It's a crime to even have a leader of this 0:20:16.400 --> 0:20:19.719 chemical because there's no legitimate ustward in the country and 0:20:19.760 --> 0:20:23.240 it's all based on smuggling the entire market there. And then, 0:20:23.480 --> 0:20:27.000 you know, come about two thousand and seventeen, when I 0:20:27.040 --> 0:20:29.480 realized from my post here in London where I do 0:20:29.720 --> 0:20:33.320 work on international stories, that that there was this horrible 0:20:33.320 --> 0:20:36.280 heroin crisis in the US that had really kind of 0:20:36.280 --> 0:20:40.720 moved in on the prescription opioid epidemic. After prescription opioids 0:20:40.720 --> 0:20:43.480 were made harder to get, you know, through reformulation, there's 0:20:43.480 --> 0:20:46.240 been almost a one to one replacement in terms of 0:20:46.280 --> 0:20:49.520 overdose deaths from heroins to the Mexican cartels really moved 0:20:49.520 --> 0:20:52.520 in quickly and quite silently. I don't think people realized 0:20:52.800 --> 0:20:56.400 how much their production was growing, you know, four or fivefold, 0:20:56.600 --> 0:20:59.560 along with a four fivefold increase in overdose desks over 0:20:59.640 --> 0:21:02.440 just you know, a very few years, and it kind 0:21:02.440 --> 0:21:04.600 of clicked in my head that I had studied this 0:21:04.680 --> 0:21:06.679 issue a little bit in the past, and I thought, well, 0:21:06.720 --> 0:21:09.440 that's interesting. I wonder how they're getting all the ascetic 0:21:09.520 --> 0:21:11.359 and hybride that they need to make that heroin. And 0:21:11.400 --> 0:21:16.280 it turns out it was completely effectively totally unregulated in Mexico, 0:21:16.720 --> 0:21:20.480 and the market there, the supply is totally incompletely dominated 0:21:20.480 --> 0:21:25.600 by US companies. As Joel said, they operate through subsidiaries 0:21:25.640 --> 0:21:30.560 in Mexico, so they're effectively insulated from the international drug 0:21:30.640 --> 0:21:33.679 laws and really tough US drug laws that deal with 0:21:33.720 --> 0:21:36.159 the same chemicals that have been around for you know, 0:21:36.200 --> 0:21:40.400 for three decades, and and no oversight obviously, um from 0:21:40.520 --> 0:21:43.520 US officials. So it's kind of greening this weird, surreal 0:21:44.440 --> 0:21:48.720 free market in Mexico. That's where it's fueling the entire 0:21:49.119 --> 0:21:52.600 US epidemic, and heroin and meth uh in this chemical 0:21:52.760 --> 0:21:55.679 and a pretty lax environment and others. They're even you know, 0:21:55.880 --> 0:21:59.239 quite strictly controlled at least by Mexican standards. UM. So 0:21:59.280 --> 0:22:01.560 that was really was really the basis, Tim, what's the 0:22:01.640 --> 0:22:04.840 role of tobacco companies and all of this. It's really 0:22:04.880 --> 0:22:08.840