WEBVTT - Kodak Craziness Is Captured in One Word. Really?: Max Nisen 0:00:01.400 --> 0:00:04.120 Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney, along 0:00:04.120 --> 0:00:06.240 with my co host of Bonnie Quinn. Every business day 0:00:06.240 --> 0:00:10.360 we bring you interviews from CEOs, market pros, and Bloomberg experts, 0:00:10.400 --> 0:00:13.600 along with essential market moving news. Kind the Bloomberg Markets 0:00:13.600 --> 0:00:17.000 Podcast on Apple Podcasts or wherever you listen to podcasts, 0:00:17.000 --> 0:00:22.160 and on Bloomberg dot com. It is time for Bloomberg Opinion. 0:00:22.239 --> 0:00:25.120 This morning. We're joined by Bloomberg Opinion columust Max Neson. 0:00:25.200 --> 0:00:29.360 He covers all things biotech, farmer and healthcare. Max, You've 0:00:29.360 --> 0:00:32.919 got a column now which I just read talking about Kodak. 0:00:32.920 --> 0:00:37.159 I'm looking at the shares of Kodak here up twelve 0:00:37.200 --> 0:00:43.040 percent today, um up seven year to date, up over 0:00:43.040 --> 0:00:45.000 the trailing twelve months, and now has a market cap 0:00:45.000 --> 0:00:47.400 of one point six three billion. I didn't even know 0:00:47.479 --> 0:00:50.479 this company was still in existence as a public equity. 0:00:51.120 --> 0:00:55.640 What's going on with Kodak? Uh? So, what's going on 0:00:55.840 --> 0:01:01.040 driving this this incredible stuff? Brice Increase is a deal 0:01:01.600 --> 0:01:05.040 alan from from the government which is intended to help 0:01:05.080 --> 0:01:08.839 them kind of make a transition into into a new business, 0:01:09.400 --> 0:01:13.240 uh which is the making of of drug product of 0:01:13.240 --> 0:01:17.560 of active pharmaceutical ingredients part of kind of an ongoing 0:01:17.760 --> 0:01:22.560 policy effort to bring more of that production back into 0:01:22.600 --> 0:01:25.959 the United States. UM, which you know that that business 0:01:26.000 --> 0:01:30.560 is really currently very dependent on China and India. I'm 0:01:30.600 --> 0:01:33.319 in addition to the sort of political leanings of the 0:01:33.319 --> 0:01:37.240 current administration. You know, there are potential national security concerns 0:01:37.240 --> 0:01:40.720 about disruption, there have been quality control issues, so you know, 0:01:40.760 --> 0:01:44.360 it's not a not an insane policy move. But but 0:01:44.440 --> 0:01:46.880 the thing that's a little bit more difficult to understand 0:01:47.000 --> 0:01:52.800 is why Kodak and secondly, um, why why this loan 0:01:53.200 --> 0:01:56.560 well significant would lead to such an enormous increase in 0:01:56.560 --> 0:01:59.560 the stock Because this is a company that that, while 0:01:59.560 --> 0:02:03.480 it has chemical experience, is new to this business, which 0:02:03.520 --> 0:02:08.200 is a very difficult, very low margin commodity business. It 0:02:08.320 --> 0:02:11.320 moved out the United States for a reason because it's 0:02:11.639 --> 0:02:13.800 much cheaper to do it elsewhere. It's hard to be 0:02:13.840 --> 0:02:18.760 cost competitive here. So the imagined future where you know, 0:02:18.840 --> 0:02:23.280 code Act does this sustainably and profitably seems very unlikely 0:02:23.320 --> 0:02:25.440 to mean, I just want to bring it to our 0:02:25.480 --> 0:02:29.200 listeners attention that several outlets and now reporting that Hermann Kine, 0:02:29.520 --> 0:02:33.800 the former presidential candidate has died from COVID nineteen once again, 0:02:33.800 --> 0:02:37.120 Herman Caine has died from COVID nineteen. Will bring you 0:02:37.280 --> 0:02:41.160 more details when we get them. But another death among 0:02:41.240 --> 0:02:44.560 the one d and fifty thousand plus deaths that we 0:02:44.560 --> 0:02:47.320 were counting every day, Max. How concerning is that that 0:02:47.440 --> 0:02:51.040 we are seeing numbers rise again in the places like 0:02:51.080 --> 0:02:54.600 New Jersey, which had tried to sort of Tampa down 0:02:54.680 --> 0:02:59.280 and had managed to do so. It's it's very concerning, 0:02:59.400 --> 0:03:04.640 and you know, unfortunately maybe inevitable accent uh you know, 0:03:04.760 --> 0:03:09.040 really really strict policy or or you know, profound adherent 0:03:09.200 --> 0:03:14.040 to social distancing guidelines going forward. I think the country 0:03:14.160 --> 0:03:17.520 is in a pretty concerning place where well, you do 0:03:17.720 --> 0:03:22.680 have some some plateauing or or decline of case growth 0:03:23.240 --> 0:03:28.560 in you know, put the initial hotspots Texas, initial new offspots, Texas, Florida, Arizona. 0:03:28.880 --> 0:03:33.079 You still have many cases there also deaths as as 0:03:33.200 --> 0:03:36.200 you know, people have consistently warned catching up to that 0:03:36.280 --> 0:03:39.080 case you know, that past case growth, and then many 0:03:39.160 --> 0:03:42.800 other examples besides New Jersey around the country that you know, 0:03:42.840 --> 0:03:46.080 well not as acute as those hot spots, yet still 0:03:46.120 --> 0:03:50.360 seeing very significant levels of case growth. All of which um, 0:03:50.400 --> 0:03:53.520 you know, makes any further opening, makes school in the 0:03:53.560 --> 0:03:56.320 fall harder and will lead to both you know, more 0:03:56.440 --> 0:04:01.360 debts and the sort of unknown long term consequences of infection. Um, 0:04:01.440 --> 0:04:04.440 which you know, more more research props up every day 0:04:04.520 --> 0:04:08.840 indicating the possibility of heart lung damage that may be durable. 0:04:09.000 --> 0:04:12.360 So um, yeah, it's a it's a scary time, all right. 0:04:12.400 --> 0:04:15.960 So that brings us to the continuing ongoing view of 0:04:16.120 --> 0:04:20.359 potential for vaccines Johnson and Johnson. I saw a headline 0:04:20.400 --> 0:04:24.760 vaccine protects monkeys from COVID with single shot. How important 0:04:25.000 --> 0:04:29.039 is the J and j H news there? Um, you know, 0:04:29.240 --> 0:04:31.320 it's a little bit of both. Do you always have 0:04:31.400 --> 0:04:36.520 to be particularly cautious about um, you know, non human data. 0:04:37.120 --> 0:04:40.920 There's a saying among people who do in vectious disease research, Um, 0:04:40.960 --> 0:04:44.600 you know, mice lie, monkeys exaggerate, So you know, there, 0:04:44.600 --> 0:04:46.400 there's that's a thing you really kind of do have 0:04:46.480 --> 0:04:49.040 to view it in the context that, well, well, this 0:04:49.160 --> 0:04:51.880 can tell you something valuable, give you an indication of 0:04:51.920 --> 0:04:55.640 the likelihood that a vaccine is promising, and in this case, 0:04:55.760 --> 0:04:59.920 the particularly promising potential of of a single dose. After 0:05:00.520 --> 0:05:03.120 you really do need to see it at humans before 0:05:03.160 --> 0:05:06.960 you make any conclusions. And that's something where um, you know, 0:05:07.000 --> 0:05:09.120 the change of vaccine is running a little bit behind. 0:05:09.720 --> 0:05:12.279 It just began it its first in human studies, so 0:05:13.000 --> 0:05:16.320 I'll I personally wait for that before making to two 0:05:16.440 --> 0:05:20.240 firm of a verdict on the promise of the vaccine. Though, um, 0:05:20.360 --> 0:05:22.880 definitely you know what you want to see from a 0:05:22.960 --> 0:05:25.760 primary challenge study. You know it wasn't It went well 0:05:26.480 --> 0:05:29.960 within the limitations of the study. And we have confirmation 0:05:29.960 --> 0:05:32.599 now on the Boomberg website that Herman Came, the piece 0:05:32.600 --> 0:05:36.599 of Jane executive of course, has died seventy four years old. 0:05:36.760 --> 0:05:40.279 He released a statement via Twitter on July twod that 0:05:40.400 --> 0:05:44.520 he was hospitalized in the Atlanta area after contracting coronavirus, 0:05:44.920 --> 0:05:47.080 and that was less than two weeks after attending President 0:05:47.080 --> 0:05:50.000 Donald Thomp's indoor rally and Tulsa, Arizona. He didn't know 0:05:50.000 --> 0:05:53.760 when or how he contracted the disease. But again, Herman Kine, 0:05:54.279 --> 0:06:00.440 the former prominent Republican who actually was running for White 0:06:00.480 --> 0:06:03.479 House position, if you'd like to put it that way, 0:06:03.600 --> 0:06:07.520 has died from COVID nineteen Max. Thank you, This isn't 0:06:07.600 --> 0:06:11.279 the last death, unfortunately from this awful pandemic. And again 0:06:11.320 --> 0:06:14.000 we're more than a hundred and fifty thousand people down 0:06:14.040 --> 0:06:16.640 here in the United States now and much more than 0:06:16.640 --> 0:06:21.200 that globally, so Paul and another prominent figure dying from 0:06:21.240 --> 0:06:23.320 COVID nineteen. You have to wonder if this will change 0:06:23.360 --> 0:06:26.880 the conversation in any way across the country, but unfortunately 0:06:27.240 --> 0:06:31.760 it's hard to see that happening. It is time to 0:06:31.760 --> 0:06:33.880 take a closer look at that economic data as well 0:06:33.920 --> 0:06:36.680 as what the Federal Reserved chair said yesterday. No better 0:06:36.720 --> 0:06:41.000 man than to bring in David Kotok Now of Cumberland Advisors. David, 0:06:41.080 --> 0:06:44.440 good morning, and welcome. Good morning, Vanney. It's nice to 0:06:44.520 --> 0:06:47.880 talk with well, it is, except that we got a 0:06:48.000 --> 0:06:54.240 second quarter annualized figure of down thirty two point nine 0:06:54.279 --> 0:06:57.680 percent for GDP growth. What does that mean for the 0:06:57.680 --> 0:07:00.600 economy going forward? What should we read into this well 0:07:01.400 --> 0:07:05.120 remarkable number. We've already had a lot of conversation about it. 0:07:05.600 --> 0:07:10.920 Um it was expected to be huge, and it validated 0:07:10.960 --> 0:07:15.040 the expectation, and it says nothing about where we're going 0:07:15.120 --> 0:07:19.680 to be in the fourth quarter and next year. And 0:07:19.960 --> 0:07:24.040 that's what's key markets are I think are reacting not 0:07:24.240 --> 0:07:27.600 to the GDP number with this red tape today. I 0:07:27.640 --> 0:07:31.880 think they're reacting to the impasse from the US Congress, 0:07:31.960 --> 0:07:35.680 which invites risk and the blame game between the two 0:07:35.760 --> 0:07:39.000 largest economies in the world, China and the United States. 0:07:39.000 --> 0:07:41.560 And I think that's what's driving this market to a 0:07:41.640 --> 0:07:46.160 red tape, not GDP. All right, Dave, let's let's go there. Um. 0:07:46.240 --> 0:07:50.080 We had Kevin Sirelli, Bloomberg's Washington correspondent on earlier with 0:07:50.120 --> 0:07:54.200 Tom Keene and myself on surveillance. He believes that from 0:07:54.280 --> 0:07:56.960 his contacts in Washington that something will in fact get 0:07:57.000 --> 0:08:01.120 done this week. What's your outlook for the fiscal stimulus? 0:08:01.160 --> 0:08:03.440 What do you think the market is really looking for 0:08:03.640 --> 0:08:06.120 to come out of Washington. Yeah, well, I I saw 0:08:06.160 --> 0:08:09.160 the piece with Kevin. Um. As you said, you know, 0:08:09.360 --> 0:08:13.920 I'm a regular surveillance watcher every morning, and I think 0:08:14.000 --> 0:08:16.920 the cutting edges where they're going to meet in the middle. 0:08:17.920 --> 0:08:22.440 The issue of the liabilities is not resolved, or maybe 0:08:22.480 --> 0:08:25.360 it will become. So how do you deal with a 0:08:25.520 --> 0:08:30.800 retroactive liability deletion on the part of local governments, on 0:08:30.840 --> 0:08:32.600 the part of business. Is what to do with the 0:08:32.679 --> 0:08:35.640 liability for COVID and how do you establish proof in 0:08:35.679 --> 0:08:40.199 a pandemic. These are also complicated my expectation as the 0:08:40.240 --> 0:08:43.199 markets would like to see you meet in the middle compromise. 0:08:43.600 --> 0:08:46.680 They don't expect three plus trillion, and they don't expect 0:08:46.720 --> 0:08:51.559 one trillion, and they do expect some amount of sustenance 0:08:51.720 --> 0:08:56.280 to keep thirty or forty million Americans bridged at least 0:08:56.360 --> 0:08:59.280 in part across the gap for the rest of the year. 0:09:00.000 --> 0:09:03.120 Markets would like that, businesses would like that, the citizens 0:09:03.200 --> 0:09:05.600 would like that, and we would get beyond the same 0:09:05.640 --> 0:09:09.760 pass which you indicated this morning is possibly going to happen. 0:09:10.080 --> 0:09:13.560 Is it realistate, David to think though, that, you know, 0:09:14.360 --> 0:09:17.839 the administration of all of this can get done in 0:09:17.880 --> 0:09:20.480 the way that Republicans are expecting, in the sense of, 0:09:20.559 --> 0:09:23.080 you know, okay, down to two extra from the federal 0:09:23.120 --> 0:09:25.440 governments per week for a couple of months, and then 0:09:25.960 --> 0:09:28.880 you know, by then everybody will be able to get 0:09:28.880 --> 0:09:31.720 some of what they had been making. Is that even possible? 0:09:31.760 --> 0:09:35.480 There is no extra money for states to do this? Um, well, 0:09:35.559 --> 0:09:39.320 that's that's the profound question, Ronnie. It's a fair one, 0:09:39.960 --> 0:09:42.880 you know. I I reflect on history as you know it. 0:09:43.080 --> 0:09:45.439 I'm a student of history for a very long time. 0:09:46.000 --> 0:09:50.080 And I remember Winston Churchill rising in the House of Commons. 0:09:50.120 --> 0:09:52.280 I wasn't there at the time when I'm very young, 0:09:52.720 --> 0:09:56.560 but I remember reading his words in in the House 0:09:56.600 --> 0:09:59.640 of Commons after World War two and all the chaos 0:09:59.640 --> 0:10:01.480 a allowed, and he stood up in the House of 0:10:01.559 --> 0:10:05.320 Commons and he says, it has been said that democracy 0:10:05.880 --> 0:10:09.960 is the worst system of government. And he paused, and 0:10:10.040 --> 0:10:13.800 he said, except for all the others. And we are 0:10:14.000 --> 0:10:18.280 testing Churchill's wisdom right now today in the United States, 0:10:18.280 --> 0:10:21.880 as we have been all year. There's truth that that's 0:10:21.920 --> 0:10:25.280 our system. As crazy as it is, it's still better 0:10:25.320 --> 0:10:27.839 than a place where you live under a dictator and 0:10:27.920 --> 0:10:31.120 an autocrat and you have no rights. And so I 0:10:31.559 --> 0:10:37.280 I'm a long term believer in this enduring, marvelous experiment 0:10:37.720 --> 0:10:41.439 that started over two hundred years ago. So I think 0:10:41.480 --> 0:10:44.920 we'll work this out the hard way, but we'll get there. So, David, 0:10:45.000 --> 0:10:48.959 what's an investor to do here? As we look at 0:10:48.960 --> 0:10:53.360 these dire economic data. Yes, it's backward looking, but it's 0:10:53.400 --> 0:10:56.200 really sobering. What should investors do here as they think 0:10:56.200 --> 0:11:00.400 about the next of all eighteen months? One investor should do. 0:11:00.720 --> 0:11:03.880 It depends on their point of view. In Cumberland's case, 0:11:04.440 --> 0:11:07.600 in the stock market, we have some cash reserve, but 0:11:07.679 --> 0:11:10.559 we are invested. In the U S stock market, we 0:11:10.640 --> 0:11:14.400 are overweight the sectors which we think benefit healthcare. It's 0:11:14.400 --> 0:11:17.719 a great example, of course, and we are underweight or 0:11:17.800 --> 0:11:21.440 avoiding the troubled places. Trying to pick the right cruise 0:11:21.480 --> 0:11:24.719 ship company that will survive is trying to avoid a 0:11:24.840 --> 0:11:27.920 falling knife. Why why do that? In the rest of 0:11:27.960 --> 0:11:31.560 the world, we are deploying moneys because we think pandemics 0:11:31.679 --> 0:11:36.920 run their course. And in Asian countries specifically, we see 0:11:36.960 --> 0:11:41.679 the ability of governments to respond better than we have done, 0:11:41.840 --> 0:11:45.000 and they are doing that. Why they learned with two 0:11:45.800 --> 0:11:49.000 two thousand and three with stars, They prepared, they have 0:11:49.120 --> 0:11:52.400 tracing testing, they have all the facilities in place, they 0:11:52.440 --> 0:11:56.240 apply technology, they have apps on their phones, whether it's 0:11:56.280 --> 0:11:59.600 in a country like China or it's in South Korea, 0:11:59.720 --> 0:12:05.040 tai one. So we favor looking at Asian recovery leading 0:12:05.200 --> 0:12:08.480 the way coming out of this, and some are already 0:12:08.559 --> 0:12:11.240 doing it. And in the United States, we have to 0:12:11.280 --> 0:12:13.760 get through this forest fire in the country. Now we 0:12:13.800 --> 0:12:16.680 don't have three ways. We don't have flattening the curve. 0:12:16.800 --> 0:12:20.560 We have a forest fire. It's burning. It doesn't burn forever, 0:12:21.240 --> 0:12:24.160 but it will burn for a while. David, thanks so 0:12:24.240 --> 0:12:27.319 much for that. We really appreciate it. David Kotok, Chairman 0:12:27.400 --> 0:12:30.160 and Chief investment Officer of Cumberland Advisors. They have over 0:12:30.200 --> 0:12:33.360 three billion dollars in assets under mention. We always appreciate 0:12:33.440 --> 0:12:36.800 Dave's perspective as broad perspective on the and uh, you know, 0:12:36.840 --> 0:12:39.640 putting things in context. I think for investors, I think 0:12:39.640 --> 0:12:43.000 that's investor's value that David has seen a few of these. 0:12:43.160 --> 0:12:46.840 He's seen pandemics, he has seen crises, he's seen crisis 0:12:46.920 --> 0:12:49.240 calls by all different sorts of things. He's seen market 0:12:49.360 --> 0:12:53.280 bubbles burst, and he's in the game more than ever. 0:12:53.480 --> 0:12:56.959 So obviously there is another side to the end of 0:12:57.000 --> 0:13:02.160 all of this. Very excited to welcome our next guest. 0:13:02.320 --> 0:13:05.840 Dr David S. Gorton is cardiologist and President and CEO 0:13:06.000 --> 0:13:09.559 of the Association of American Medical Colleges or the a 0:13:09.559 --> 0:13:12.400 a m C. He joins US now from Washington, d C. 0:13:13.080 --> 0:13:16.160 Following an op ed in the Washington Post which was 0:13:16.360 --> 0:13:19.840 entitled we need a COVID nineteen reset. So we developed 0:13:19.880 --> 0:13:23.360 a comprehensive plan to do just that. Drs Gorton, thanks 0:13:23.400 --> 0:13:26.440 for joining. What does a reset look like? Is it 0:13:26.679 --> 0:13:30.920 a countrywide lockdown? No, Bunny, First of all, thanks for 0:13:30.960 --> 0:13:34.520 having me on UM. It's more complicated than that. We 0:13:34.640 --> 0:13:38.280 laid out nine immediate steps that we believe the country 0:13:38.320 --> 0:13:41.360 needs to take in two longer term actions. And among 0:13:41.400 --> 0:13:45.320 those nine steps, the big three are will not surprise you. 0:13:45.440 --> 0:13:47.600 Number one is to do a better job at making 0:13:47.600 --> 0:13:50.960 sure that we have the supplies we need from personal 0:13:51.000 --> 0:13:54.520 protective equipment to the lab supplies that will allow us 0:13:54.559 --> 0:13:58.480 to boost up testing. Number two is testing itself and 0:13:58.559 --> 0:14:01.079 really nothing else that we can do in the country 0:14:01.120 --> 0:14:03.680 that we want to do, like reopen the economy, go 0:14:03.760 --> 0:14:06.560 back to school, go back to college, all of those 0:14:06.559 --> 0:14:09.640 things will depend on a better ability to do testing 0:14:09.640 --> 0:14:12.240 and turn it around more quickly than we're doing it 0:14:12.360 --> 0:14:14.959 right now. And then, thirdly, we believe there should be 0:14:15.120 --> 0:14:19.040 national standards on face coverings and that masks should be 0:14:19.080 --> 0:14:22.520 mandatory in areas of growing community spread. And then there's 0:14:22.520 --> 0:14:25.080 many other aspects, but those are those are the ones 0:14:25.160 --> 0:14:27.400 that I believe are the most urgent we need to 0:14:27.400 --> 0:14:30.520 work on now. Doctor, I guess For me, the biggest 0:14:30.520 --> 0:14:33.160 frustration is that petas I look at the US relative 0:14:33.200 --> 0:14:36.680 to other countries around the world, there has not been 0:14:36.720 --> 0:14:43.280 a national response policy to what is clearly a national problem. 0:14:43.320 --> 0:14:46.000 It is left to state by states. Some states like 0:14:46.040 --> 0:14:48.640 New York have done it better than some other states 0:14:48.680 --> 0:14:54.280 like Florida for example. Will there ever be a national response? 0:14:54.440 --> 0:14:56.200 And if there is, where does it need to come from? 0:14:56.240 --> 0:14:59.840 Doesn't need to come from the White House? Well, when 0:14:59.840 --> 0:15:02.000 you ask whether ever be a national response, if I 0:15:02.080 --> 0:15:04.240 had that crystal ball and it was as effective as that, 0:15:04.280 --> 0:15:06.680 I'd probably be um sitting in your seat and telling 0:15:06.720 --> 0:15:10.360 people which way to go. But um, what I would 0:15:10.400 --> 0:15:13.280 say is the first two words of my outbed and 0:15:13.400 --> 0:15:18.800 yesterday's post. We're we're failing, and I mean we very sincerely. 0:15:18.840 --> 0:15:21.720 All of us need to pull together individual decisions like 0:15:21.760 --> 0:15:24.120 whether to wear a mask, whether to be socially distant, 0:15:24.360 --> 0:15:27.480 whether to pay attention to the evidence based advice we're 0:15:27.520 --> 0:15:31.280 getting from the top health professionals in the country. And yes, 0:15:31.400 --> 0:15:34.240 we believe that there is a role for government to 0:15:34.280 --> 0:15:39.120 develop more national policies, not only the administration, Congress, but 0:15:39.160 --> 0:15:41.480 there's also a role for the private sector. We think 0:15:41.480 --> 0:15:45.160 that the manufacturing sector, for example, could help us. But 0:15:45.280 --> 0:15:47.960 we're playing catch up on these supply issues. So there's 0:15:48.000 --> 0:15:50.880 something here from everybody. But yes, there does need to 0:15:50.920 --> 0:15:53.520 be a national view of how to go forward, and 0:15:53.520 --> 0:15:56.960 we try to present that view in our roadmap. Is 0:15:57.000 --> 0:15:59.680 there a time limit for this? I mean, will there 0:15:59.720 --> 0:16:03.280 be a point beyond which of all is lost? I 0:16:03.280 --> 0:16:06.280 don't mean to be, you know, totally apocalyptic about this, 0:16:06.360 --> 0:16:08.800 but you know at a certain point it's too late 0:16:08.840 --> 0:16:14.440 to implement proactive measures. Well, I'm a physician as scientist, 0:16:14.480 --> 0:16:17.560 and I'm very very strong believer in biomedical research. Right 0:16:17.640 --> 0:16:20.640 this minute, Bunny and Paul, there are people all over 0:16:20.640 --> 0:16:24.640 the world working on robust vaccines right this minute. There's 0:16:24.720 --> 0:16:29.440 people at universities and in pharmaceutical industry working on anti 0:16:29.560 --> 0:16:33.400 viral treatments and so on. And as we've learned more 0:16:33.440 --> 0:16:36.920 about the coronavirus on the front lines of hospitals across 0:16:36.960 --> 0:16:39.360 the world, we've learned more and more how to provide 0:16:39.400 --> 0:16:43.440 supportive care. So I remain an optimist about this. Nonetheless, 0:16:43.640 --> 0:16:48.240 if we don't make some changes and soon in supplies, testing, 0:16:48.680 --> 0:16:52.000 face coverings, and some other areas, um we're going to 0:16:52.080 --> 0:16:54.160 have a lot more deaths, and I'd like to just 0:16:54.320 --> 0:16:58.720 insert one issue relate to finance, if I might. One 0:16:58.720 --> 0:17:01.920 of the difficulties of national system of health insurance that's 0:17:02.400 --> 0:17:06.320 or fifty percent of people insured through their employer. Is 0:17:06.320 --> 0:17:09.680 it a time where employment dips than healthcare coverage dips 0:17:09.720 --> 0:17:13.840 as well. And one of our immediate action recommendations is 0:17:13.880 --> 0:17:17.920 to immediately expand health insurance through COBRA. That's a mechanism 0:17:18.000 --> 0:17:22.040 already in place, but many workers cannot afford to pay 0:17:22.080 --> 0:17:25.120 both the employer and employee premiums for COBRA when they're 0:17:25.160 --> 0:17:28.160 out of work. So we're asking for Congress to consider 0:17:29.320 --> 0:17:33.960 at least partly subsidizing COBRA for a while while we're 0:17:34.000 --> 0:17:36.520 in such a pickle in terms of employment and a 0:17:36.640 --> 0:17:40.480 reduction in health insurance coverage. Doctor, One of the big 0:17:40.520 --> 0:17:44.119 topics right now as it relates to our response to 0:17:44.119 --> 0:17:48.280 the pandemic is the reopening of schools or weeks away 0:17:48.320 --> 0:17:50.200 in many parts of the country. Many parts of country 0:17:50.200 --> 0:17:54.359 are actually reopening now. How do you think this should 0:17:54.359 --> 0:17:58.879 play out? One of our recommendations is to establish Tavanni's 0:17:58.920 --> 0:18:03.240 point earlier national criteria and your point national criteria for 0:18:03.320 --> 0:18:07.520 CAPE through twelve school reopenings and to immediately convene a 0:18:07.560 --> 0:18:10.959 working group to study different approaches, so to bring together 0:18:10.960 --> 0:18:13.560 the expertise to do this right. We need to bring 0:18:13.600 --> 0:18:18.119 the educators, the teachers, We need to bring some voice 0:18:18.160 --> 0:18:20.679 from parents and families, and of course we need to 0:18:20.720 --> 0:18:24.600 bring the voice of public health, epidemiology and infectious diseases. 0:18:25.200 --> 0:18:29.040 There was a recent of consensus report that I commend 0:18:29.040 --> 0:18:32.840 to you and your listeners from the National Academy of Science, Engineering, 0:18:32.880 --> 0:18:36.440 and Medicine just a few weeks ago, which laid out 0:18:36.600 --> 0:18:40.840 a very important step by step process for reopening and 0:18:40.880 --> 0:18:42.600 so we have a bit of a roadmap from the 0:18:42.680 --> 0:18:45.119 National Academy is one of the most prestigious groups in 0:18:45.160 --> 0:18:47.520 the country or in the world, and I think we 0:18:47.560 --> 0:18:50.639 need to do is make up a national commitment to 0:18:50.760 --> 0:18:53.960 listening to some of these recommendations, and then it has 0:18:54.000 --> 0:18:57.439 to be interpreted like everything else locally, depending on the 0:18:57.440 --> 0:19:01.919 amount of community spread, the re sources available, and the 0:19:01.920 --> 0:19:05.040 different neighborhoods of school districts we're talking about. There's a great, 0:19:05.080 --> 0:19:08.159 great difference, as you know, in the resources available to 0:19:08.200 --> 0:19:12.560 school districts based on local property tax revenue and so on. 0:19:13.119 --> 0:19:15.520 So yes, we need to pay attention to this, and 0:19:15.640 --> 0:19:19.320 the National Academy's report is a terrific place to start. Dr. 0:19:19.400 --> 0:19:22.040 You're a cardiologist as well as everything else, and I'm 0:19:22.040 --> 0:19:25.000 curious as to what's been the most surprising thing for 0:19:25.080 --> 0:19:28.160 you as a result of this COVID pandemic. What does 0:19:28.240 --> 0:19:31.440 the disease do in terms of what you're a specialist 0:19:31.480 --> 0:19:37.640 in that terrifies you. Well, um, from the cardiology point 0:19:37.720 --> 0:19:40.719 of view, that has not been as prominent as issues 0:19:40.760 --> 0:19:43.760 as you know, with the lungs, with the neurological system 0:19:43.800 --> 0:19:46.560 and other things. But I'll say as just a physician 0:19:46.560 --> 0:19:48.560 in general, I used to run a division of general 0:19:48.560 --> 0:19:52.920 internal medicine. We call this a novel coronavirus because it's 0:19:52.960 --> 0:19:56.400 the first time that we've known about this coronavirus affecting humans, 0:19:57.040 --> 0:19:59.800 and the fact that there can be such robust spread 0:19:59.840 --> 0:20:04.919 of a disease from asymptomatic people is quite unusual. And 0:20:04.960 --> 0:20:07.720 of course this makes it much much harder to manage 0:20:08.080 --> 0:20:11.199 the communities because you don't really know who's got it. 0:20:12.359 --> 0:20:15.280 A medical commentator a couple of three months ago said 0:20:15.840 --> 0:20:19.520 we should all act as if we have coronavirus. Put 0:20:19.520 --> 0:20:22.200 a mask on, stay away from other people, and so 0:20:22.280 --> 0:20:24.560 on and so forth, except those in our immediate family 0:20:24.600 --> 0:20:27.120 with whom we're living. And I think that's a very 0:20:27.160 --> 0:20:30.639 interesting way to look at it. But that's been a big, 0:20:30.720 --> 0:20:33.880 big surprise. And then the other big, big surprise has 0:20:33.920 --> 0:20:37.480 been the chameleon like effects of this virus on various 0:20:37.480 --> 0:20:40.120 different bodily systems. And I'm sure you all have followed 0:20:40.440 --> 0:20:43.840 the lingering effects, the neurological effects, as well as those 0:20:43.880 --> 0:20:47.680 effects from the immune system on the lungs. He does. 0:20:48.320 --> 0:20:50.239 Dr David Scorton, thank you so much for joining us. 0:20:50.240 --> 0:20:54.280 We really appreciate your thoughts, uh and opinions, David. Dr 0:20:54.359 --> 0:20:57.080 David Scorton, cardiologists and President CEO of the Association of 0:20:57.080 --> 0:21:00.600 American Medical Colleges, giving us his thoughts on what a 0:21:00.720 --> 0:21:06.639 national policy could look like. Well, tech analysts and tech 0:21:06.760 --> 0:21:09.359 investors are going to be more than busy after the 0:21:09.400 --> 0:21:13.760 close today. We have the big four tech companies, Apple, Amazon, Facebook, 0:21:13.960 --> 0:21:17.400 and Alphabet reporting numbers. I don't think that's ever happened, 0:21:18.040 --> 0:21:20.880 Vonnie one time at the same time on the same 0:21:20.960 --> 0:21:23.719 day reporting. It's gonna go. So there's gonna be a 0:21:23.720 --> 0:21:25.760 lot to pass through from big tech. It's got a 0:21:25.760 --> 0:21:27.119 little bit of a preview there. We can do that 0:21:27.160 --> 0:21:30.240 with Barry Ridholtz. He's a Bloomberg opinion columnist and host 0:21:30.280 --> 0:21:33.360 of Masters in Business on Bloomberg Radio. And of course 0:21:33.400 --> 0:21:35.480 he's a founder, chairman and chief investment off Server it 0:21:35.520 --> 0:21:39.080 holds wealth Management. So, Barry, if you needed some color 0:21:39.320 --> 0:21:41.680 on what's going on in the tech space, I think 0:21:41.720 --> 0:21:44.800 you're gonna get it. After the close today, You're gonna 0:21:44.800 --> 0:21:46.760 get a lot more than color. You're gonna have a 0:21:46.840 --> 0:21:51.800 full painting as to how four of the six companies 0:21:51.800 --> 0:21:55.800 that have been driving two thirds of the SMP five hundred, 0:21:56.320 --> 0:22:00.480 how well they're doing. And uh, it's gonna be interesting. 0:22:00.680 --> 0:22:05.160 Remember back in February, Apple was the first company that 0:22:05.240 --> 0:22:10.040 came out and said, given this nascent coronavirus pandemic, we 0:22:10.160 --> 0:22:13.120 have no visibility for the rest of the year. They 0:22:13.160 --> 0:22:15.960 were way ahead of the curve on that. I'm really 0:22:15.960 --> 0:22:19.040 curious to see what they're going to come out and say, Yeah, 0:22:19.119 --> 0:22:22.320 it's gonna be fascinating. I mean, will they all show 0:22:22.400 --> 0:22:24.919 stellar results? You think Pario it feels like they are 0:22:25.119 --> 0:22:28.360 some of the only winners out of all of this. Well, 0:22:28.359 --> 0:22:33.280 they clearly have been UM part of the stocks that 0:22:33.320 --> 0:22:37.280 have been been driving games. Take take the ten biggest 0:22:37.359 --> 0:22:41.200 names in the SMP five hundred on an equal weight basis, 0:22:41.280 --> 0:22:44.439 they're up thirty four percent for the year. Take the 0:22:44.640 --> 0:22:49.040 next four hundred nine UM stocks in the SNP five 0:22:49.080 --> 0:22:53.280 hundred on an equal weight basis, they're down eight percent 0:22:53.359 --> 0:22:57.880 for the year. So the the earnings health of the 0:22:58.040 --> 0:23:00.720 of the fang so called fang stocks are really important, 0:23:01.359 --> 0:23:03.920 but I don't know if investors are going to give 0:23:03.960 --> 0:23:08.200 them a pass. If anybody says, well, this sector did 0:23:08.240 --> 0:23:11.080 well and this division did well, but we really saw 0:23:11.640 --> 0:23:18.080 soft sales in this sector. Maybe it's iPhones, maybe it's UM. 0:23:18.200 --> 0:23:21.880 Some form of advertising on Facebook or Google that's they 0:23:21.880 --> 0:23:26.680 expect will return once things get back to normal. It's interesting. 0:23:26.720 --> 0:23:29.639 I'm looking, you know, just at the the advertising driven 0:23:29.720 --> 0:23:31.679 names that we're gonna hear from tonight, in terms of 0:23:31.680 --> 0:23:36.720 Facebook and and Google parent is alphabet UM those stocks, 0:23:36.760 --> 0:23:38.800 you know, they're you know, and also looking for a 0:23:38.920 --> 0:23:42.880 significantly slower rubbnue growth because let's face it, advertisers aren't 0:23:42.880 --> 0:23:44.919 advertising that much. I don't care if it's on a 0:23:45.040 --> 0:23:48.280 radio or TV ed or a newspaper or on the Internet. 0:23:48.359 --> 0:23:50.359 Yet those stocks are still up their team percent. So 0:23:50.359 --> 0:23:53.160 I guess tech investors barrier, you know, willing to look 0:23:53.160 --> 0:23:55.720 towards the other side of this. Yeah, I mean everybody 0:23:55.760 --> 0:24:00.480