WEBVTT - Marriott International CEO on Leading at a Difficult Time 0:00:01.800 --> 0:00:04.400 This is Bloomberg Business Week. I'm Carol Masser and I'm 0:00:04.440 --> 0:00:07.280 Bloomberg Quick Takes Tim Stanibek. We're here every day bringing 0:00:07.280 --> 0:00:09.799 you the latest news from the world of business and finance, 0:00:09.840 --> 0:00:13.600 plus technology, politics, economics, all harnessing the power of Business 0:00:13.640 --> 0:00:17.119 Week reporters and editors, not to mention our journalists and 0:00:17.120 --> 0:00:19.600 analyst in more than one and twenty countries. You can 0:00:19.640 --> 0:00:23.200 download Bloomberg Business Week and iTunes, SoundCloud, or Bloomberg dot Com. 0:00:23.400 --> 0:00:25.120 You can also listen to our radio show at two 0:00:25.160 --> 0:00:27.840 pm Eastern Time on Bloomberg Radio, or watch us on 0:00:27.880 --> 0:00:34.400 YouTube search Bloomberg Global News, Jay and Jay's Vaccine. We 0:00:34.440 --> 0:00:38.280 knew it was coming. It's another tool in the toolbox 0:00:38.360 --> 0:00:41.040 to fighting COVID nineteen. Yeah, it's those tools that we 0:00:41.080 --> 0:00:43.160 need to get us on the other side of this pandemic. 0:00:43.200 --> 0:00:45.960 And joining us now is Dr David Levy, Chief Executive 0:00:45.960 --> 0:00:49.200 Officer of Health. He joins us on the phone right 0:00:49.200 --> 0:00:52.479 here from New York. Eh is a healthcare provider, uh In. 0:00:52.760 --> 0:00:55.840 Dr Levy's a public health expert in veteran epidemiologist. Hey, 0:00:56.280 --> 0:00:58.480 Dr Leviy, thanks so much for joining us today. Um, 0:00:58.560 --> 0:01:01.160 how are you doing. I'm doing great and thanks for 0:01:01.200 --> 0:01:03.080 having me back. So what do you make of the 0:01:03.160 --> 0:01:07.560 Jane Jane us. It is great news. It's another vaccine, 0:01:07.560 --> 0:01:10.640 another tool, and it's going to be widely available in 0:01:10.680 --> 0:01:14.520 the next couple of months. And I think it's fantastic. 0:01:14.720 --> 0:01:18.479 What's highly effective and uh, we're all looking forward to us. 0:01:18.480 --> 0:01:20.760 So you still considered highly effective even though it's not 0:01:20.800 --> 0:01:23.520 as effective as the MR and A vaccines from moderna 0:01:23.600 --> 0:01:27.600 Advisor by on Tech, it is absolutely as effective as 0:01:28.000 --> 0:01:31.720 in preventing hospitalizations and deaths. And that's what this epidemic 0:01:31.800 --> 0:01:35.880 is about. Reducing That's what the treatment for the epidemics 0:01:35.880 --> 0:01:39.280 should be, namely reducing lethality. And it's as good as 0:01:39.280 --> 0:01:41.640 any of the other two. Well, and so Tim and 0:01:41.640 --> 0:01:44.120 I Dr Leev if I can interrupt for a second, 0:01:44.160 --> 0:01:46.440 Like Tim and I were joking that we don't go 0:01:46.480 --> 0:01:48.400 to Dwyane red and I get the flu vaccine and 0:01:48.400 --> 0:01:51.919 I'm like, what's the efficacy? I mean, what is considered 0:01:51.960 --> 0:01:57.560 the range of a really effective vaccine. Well, it all 0:01:57.600 --> 0:02:01.920 depends what you're immunizing for and so you have to 0:02:01.960 --> 0:02:05.960 start there. And one of the issues, uh, with this 0:02:06.040 --> 0:02:09.400 particular virus is that it is highly or much more lethal, 0:02:09.800 --> 0:02:12.680 and people over sixty five and those people with comorbidities 0:02:13.520 --> 0:02:16.120 that relate to lifestyle like diabetes, hypertension and the like. 0:02:16.960 --> 0:02:19.399 And if you can, in fact have a vaccine that's 0:02:19.480 --> 0:02:23.960 targeted specifically at reducing hospitalization and death in those people, 0:02:24.880 --> 0:02:28.480 you've essentially dropped the lethality the epidemic potentially even lower 0:02:28.520 --> 0:02:31.200 than the lethality of a flu epidemic. So this is 0:02:31.200 --> 0:02:35.880 a really good piece of news. Quite candidly, Hey, how's 0:02:35.919 --> 0:02:39.000 the messaging been in general about the vaccine, because I've 0:02:39.000 --> 0:02:41.959 been having this debate with some friends recently because we've 0:02:41.960 --> 0:02:45.040 heard so much If you get the vaccine, don't change 0:02:45.040 --> 0:02:48.320 your behavior, keep wearing a mask, And I wonder what 0:02:48.400 --> 0:02:50.800 that does to the way that people think about how 0:02:50.840 --> 0:02:53.040 we're going to get through this pandemic, And just what 0:02:53.160 --> 0:02:54.720 is the point of getting the vaccine if you can't 0:02:54.760 --> 0:02:58.720 change your behavior. Well, you know, that's a great question. 0:02:59.480 --> 0:03:03.720 The or is you want to continue your social distancing, 0:03:03.760 --> 0:03:08.440 your mask wearing behavior as long as the virus is 0:03:08.560 --> 0:03:12.120 endemic in the community. And that's what herd immunity is about. 0:03:12.160 --> 0:03:16.000 It's not about eliminating the disease completely. It's about reducing 0:03:16.000 --> 0:03:19.240 the natural reducing of coming to a level of immunity 0:03:19.240 --> 0:03:23.600 whereby there's no natural community spread. And as we get 0:03:23.639 --> 0:03:26.000 to a point where there's no natural community spread and 0:03:26.080 --> 0:03:29.880 we can now basically address and contain any focal outbreak, 0:03:30.240 --> 0:03:34.639 we can gradually loosen social distancing, mask wearing and the like. 0:03:35.080 --> 0:03:39.280 And so it really depends, frankly, at what level the 0:03:39.320 --> 0:03:41.880 community is with respect to immunity and how soon they 0:03:41.920 --> 0:03:44.280 get to a situation where you're just going to have 0:03:44.360 --> 0:03:49.200 the sporadic and fairly well contained, smaller outbreaks. By the way, 0:03:49.240 --> 0:03:51.680 that's exactly the same thing with any other kind of 0:03:51.680 --> 0:03:54.480 infectious disease outbreak like the flu or others. All Right, 0:03:54.480 --> 0:03:57.000 and that's that's good to know. I'm curious what you 0:03:57.040 --> 0:04:00.680 are seeing within your employee base, in within the health 0:04:00.720 --> 0:04:06.120 care system about health care employees. Um, is everybody increasingly 0:04:06.120 --> 0:04:08.920 getting more comfortable though about taking the vaccine and getting 0:04:08.920 --> 0:04:14.760 the vaccine? Well, um, look, you hear the same reticence 0:04:15.160 --> 0:04:18.799 that you have that we've we've all heard about getting 0:04:18.800 --> 0:04:22.479 the vaccine, in particular certain segments of the population that 0:04:22.520 --> 0:04:25.880 have more mistrust for the vaccine. And I get it, 0:04:25.920 --> 0:04:28.760 and I understand it, But but I have kind of 0:04:28.800 --> 0:04:31.360 like a half cup full point of view on that, 0:04:31.880 --> 0:04:34.320 which is, you know, this is a brand new technology, 0:04:34.320 --> 0:04:39.000 particularly two m RNA vaccines, completely new, completely new science, 0:04:39.560 --> 0:04:42.600 and you know, at worst you have seventy of the 0:04:42.640 --> 0:04:44.600 people who say that they're going to get it right 0:04:44.600 --> 0:04:47.279 out of the gate. I mean, that's an early adoption 0:04:47.360 --> 0:04:52.000 factor of se which any CEO producing any product would 0:04:52.040 --> 0:04:55.479 be thrilled to have. You know, Unfortunately, when we started 0:04:55.480 --> 0:04:58.120 down this path, you know, we forgot about the marketing 0:04:58.160 --> 0:05:00.440 and distribution that we probably should have been do last 0:05:00.480 --> 0:05:05.320 summer to get people up to a level of comfort. 0:05:05.640 --> 0:05:07.880 Now that being said, you know, as you probably are 0:05:08.040 --> 0:05:11.800 education right, not even just marketing, but education. Well, I 0:05:12.160 --> 0:05:13.560 have to tell you it's not even going to be 0:05:13.720 --> 0:05:16.279 education in my view in the future. You're you're now 0:05:16.320 --> 0:05:19.720 seeing around the world people talking about vaccine passes and 0:05:19.760 --> 0:05:22.279 the ability to travel from country to country. Uh, the 0:05:22.320 --> 0:05:24.400 EU was talking about this tomorrow. I think Israel and 0:05:24.440 --> 0:05:27.520 Greece have already gone into a pact. We've seen airline 0:05:27.600 --> 0:05:30.520 the airline industry really talk about this. The truth is, 0:05:30.560 --> 0:05:32.760 as we learn to live with COVID, we won't eliminate 0:05:32.800 --> 0:05:35.720 COVID will be living with COVID like we live with influenza. 0:05:35.760 --> 0:05:38.560 People are going to need to have proof that they're immunized. 0:05:38.760 --> 0:05:41.320 And I will tell you if those people want to 0:05:41.320 --> 0:05:45.400 get who are reticent to be immunized, uh, stay that way. 0:05:45.520 --> 0:05:48.000 They won't be able to get back to a normal life. 0:05:48.040 --> 0:05:49.760 They won't be able to get into a large venue 0:05:49.760 --> 0:05:52.200 like a Madison Square gardener, maybe a Broadway show, or 0:05:52.200 --> 0:05:54.640 maybe a restaurant. They won't be able to travel to 0:05:55.120 --> 0:05:57.680 a country where their parents may live unless they can 0:05:57.720 --> 0:06:02.039 prove that they're immune. And that's what's going to be 0:06:02.120 --> 0:06:07.159 driving people to almost full uh population. Immunization is really 0:06:07.200 --> 0:06:09.560 to get your life back to normal, you're gonna be 0:06:09.800 --> 0:06:11.560 You're gonna be able to have to show proof that 0:06:11.560 --> 0:06:14.280 in fact, you have indeed been immunized by one of 0:06:14.320 --> 0:06:16.880 the vaccines that have been approved. You know, it's a point, 0:06:17.040 --> 0:06:20.800 a practical reality, A point that that that our colleague 0:06:20.839 --> 0:06:23.400 Drew Armstrong, SENIORIT for Healthcare, made on Quick Take this morning, 0:06:23.480 --> 0:06:27.520 was that early on in the vaccination process, we saw 0:06:27.600 --> 0:06:30.480 people who were reticent about getting vaccines or hesitant to 0:06:30.520 --> 0:06:33.040 get a vaccine once they saw people in their orbits 0:06:33.080 --> 0:06:35.800 start to get them that went away, they started to 0:06:35.800 --> 0:06:37.520 get them. So this is happening in real time. One 0:06:37.520 --> 0:06:39.680 thing we want to ask you, Dr Levy, is something 0:06:39.680 --> 0:06:41.960 that came in to us from one of our our 0:06:42.000 --> 0:06:46.840 Twitter followers and said, messenger, RNA changes your DNA. So 0:06:47.120 --> 0:06:50.440 in his book, the JJ and vaccine, a regular vaccine 0:06:50.680 --> 0:06:54.839 is better than uh, either the Maderna or Fiser vaccine. 0:06:54.960 --> 0:06:59.520 What do you say to that. I have never heard that. 0:06:59.600 --> 0:07:02.080 I have no idea what he's talking about or to 0:07:02.160 --> 0:07:06.440 what he's referencing. mRNA is basically just the code against 0:07:06.480 --> 0:07:10.360 which the cells are, you know, producing the antibodies. That 0:07:10.600 --> 0:07:12.920 doesn't do fundamentally anything to a human being, to your 0:07:12.960 --> 0:07:16.120 own DNA, I just I just don't know of any 0:07:16.160 --> 0:07:18.880 evidence or anything to substantiate that comment. But I think 0:07:18.880 --> 0:07:22.120 it does speak to the reticence that people have when 0:07:22.160 --> 0:07:25.600 it comes to you know, quote unquote new technology. Right, 0:07:25.680 --> 0:07:28.680 Like you were talking about this idea that having a 0:07:28.720 --> 0:07:31.160 new product that has seventy percent adoption is really good, 0:07:31.200 --> 0:07:32.720 but there are still people who are like, hey, wait 0:07:32.760 --> 0:07:36.320 a second, I want to see something different. I completely 0:07:36.360 --> 0:07:38.040 agree with you. I mean, this is the whole issue 0:07:38.080 --> 0:07:40.880 because it's kind of a scary notion of brand new technology. 0:07:40.920 --> 0:07:42.920 We're creating m RNA, we're putting in the body. It 0:07:42.960 --> 0:07:47.520 sounds like DNA. And that's why uh rod uh. You know, 0:07:47.680 --> 0:07:51.440 campaign ought to be introduced, you know, educates the public 0:07:51.480 --> 0:07:54.640 and you know, fairly clear and easy to understand way 0:07:54.720 --> 0:07:57.760 about what exactly it is that this new science has discovered. 0:07:57.880 --> 0:07:59.600 And by the way, I think that this is just 0:07:59.680 --> 0:08:01.640 the begin thing. I think many new vaccines in the 0:08:01.640 --> 0:08:04.920 future are going to be adopting this new technology. It's safe, 0:08:04.960 --> 0:08:07.560 and it's effective, and it's and it's a great advance 0:08:07.600 --> 0:08:10.880 for humankind. And uh, it's a kudos to all those 0:08:10.880 --> 0:08:13.880 people who and all those biologists who who have invented it. 0:08:13.920 --> 0:08:16.000 I mean, it's just a wonderful thing. It's a wonderful 0:08:16.280 --> 0:08:19.520 advance for science and for humanity. So I think it's 0:08:19.520 --> 0:08:22.040 just a bad education quite translate and to be fair 0:08:22.360 --> 0:08:24.960 new but also it's a it's not something that they've 0:08:24.960 --> 0:08:27.440 just developed overnight. They've been working on it for years. 0:08:28.240 --> 0:08:32.280 Well yeah, for years for other reasons and for other reasons, 0:08:32.320 --> 0:08:36.600 but you know, the funding and the acceleration that that 0:08:36.720 --> 0:08:39.520 coincide together, you know, with the cod with the coronavirus 0:08:39.600 --> 0:08:42.240 pandemic really has pushed this thing over the goal line. 0:08:42.320 --> 0:08:44.880 So you know, there are a lot of great benefits 0:08:44.920 --> 0:08:47.520 from this. All right, So when you look forward, what 0:08:47.559 --> 0:08:50.480 do you see as kind of our biggest obstacles still 0:08:50.960 --> 0:08:56.000 in getting us to a post COVID world. You know, 0:08:56.040 --> 0:08:58.920 I think first of all is continuing the immunization campaign 0:08:58.960 --> 0:09:00.880 and making sure this is a eye chain is great, 0:09:00.920 --> 0:09:04.080 and I think that we're throwing the kitchen sink at that, 0:09:04.679 --> 0:09:07.800 and people just have to keep on moving at that. Uh. 0:09:07.840 --> 0:09:10.360 You know, the idea of variance is always a wild 0:09:10.360 --> 0:09:13.280 card out there, but the surest prevention for new variance 0:09:13.400 --> 0:09:16.360 is the reduction of replication and new human beings who 0:09:16.360 --> 0:09:19.080 have been infected. And the best way still at that 0:09:19.280 --> 0:09:23.880 is to maximize immunization. So you know, keep on moving 0:09:24.120 --> 0:09:27.680 very very hard at that. In the meantime, all of 0:09:27.720 --> 0:09:31.480 the other things need to be really stringent to social distancing, 0:09:31.520 --> 0:09:34.719 the masking and the like, And ultimately, I think as 0:09:34.720 --> 0:09:37.320 we get back to a more normal situation, we'll be 0:09:37.400 --> 0:09:40.280 able to start relaxing some of those constraints. But really 0:09:40.360 --> 0:09:43.960 right now is to move hard and fast at immunization 0:09:44.000 --> 0:09:46.200 in this country as much as possible. Hey, Dr Leady, 0:09:46.200 --> 0:09:48.440 can you talk a little bit about the alarming surge 0:09:48.600 --> 0:09:52.400 in mental health that we've seen anxiety, depression, burnout, and stress. 0:09:52.520 --> 0:09:56.040 I mean, we're seeing it everywhere. Yeah, so this is 0:09:56.080 --> 0:09:58.040 a big problem. We see it in our patients, we 0:09:58.120 --> 0:10:01.040 see it in many of the employees of of of 0:10:01.120 --> 0:10:04.400 all of our clients. And you know, this has been 0:10:04.400 --> 0:10:06.800 going on now for a year, and you know, we've 0:10:06.800 --> 0:10:08.640 now been talking about how to bring people safely back 0:10:08.679 --> 0:10:11.959 to work, and we find that it's people have gotten 0:10:12.040 --> 0:10:15.000 into this grind of this is the way life is 0:10:15.040 --> 0:10:17.839 going to be and always going to be, and it's 0:10:17.880 --> 0:10:21.480 going to be difficult to get people into uh kind 0:10:21.520 --> 0:10:24.320 of a new way of thinking of getting them out 0:10:24.320 --> 0:10:26.520 of that rut and getting them back into a more 0:10:26.640 --> 0:10:29.120 normal and socially engaged life. I think that's going to 0:10:29.200 --> 0:10:32.640 be one of the biggest challenges for over the next 0:10:32.640 --> 0:10:34.920 six months. It's not that the people who want to 0:10:34.960 --> 0:10:36.480 just don't want to jump out and come back to work. 0:10:36.480 --> 0:10:38.360 They're sure there's lots of people like me who want 0:10:38.400 --> 0:10:40.079 to do that, but there are a lot of people 0:10:40.080 --> 0:10:43.000 who have been really stuck in this rut with an 0:10:43.160 --> 0:10:47.040 enormous amount of depression. Uh, suicidal ideation, as you know, 0:10:47.080 --> 0:10:50.360 and it's a very big problem. We're beefing up for all. 0:10:50.360 --> 0:10:53.120 Employers are beefing up support around mental health. We're looking 0:10:53.160 --> 0:10:56.439 closely at reaching reaching out throughhealth and the like to 0:10:56.559 --> 0:10:59.280 help support employees. But I think that that's going to 0:10:59.320 --> 0:11:01.520 be one of the biggest barriers. Yeah, but I have 0:11:01.640 --> 0:11:04.199 to say once we get through it, once we start 0:11:04.240 --> 0:11:08.480 to have to bring back to normal, I think normal 0:11:08.559 --> 0:11:11.320 can't wait. Dr David Levy, thank you so much, CEO 0:11:11.440 --> 0:11:14.880 at e H E Health. This is Bloomberg Business Week 0:11:15.080 --> 0:11:19.000 with Carol Messer and Bloomberg Quick Takes. Tim Stinovic from 0:11:19.080 --> 0:11:22.079 Bloomberg Radio. Bloomberg Business We had a great cover story 0:11:22.080 --> 0:11:24.959 back in July. It was about the COVID vaccine front runner. 0:11:25.000 --> 0:11:27.040 At the time, it was the work Astra Zeneca and 0:11:27.080 --> 0:11:30.480 the University of Oxford was doing, Tim, And since then 0:11:30.480 --> 0:11:33.240 we know that the path forward for Astra's vaccine it 0:11:33.240 --> 0:11:35.000 really hasn't been a straight one. Yeah. We've been hearing 0:11:35.000 --> 0:11:37.440 a lot about Johnson and Johnson, Moderna and of course 0:11:37.480 --> 0:11:39.960 Fiser in BioNTech, but Astra Zeneca not so much. Right, 0:11:40.000 --> 0:11:43.200 We've got an update on them in Bloomberg Business Week 0:11:43.480 --> 0:11:44.800 taking a look at some of the new data that 0:11:44.840 --> 0:11:47.079 the company hopes can kind of get its vaccine back 0:11:47.080 --> 0:11:50.760 on track. Reporting for the magazine, Bloomberg News healthcare reporter 0:11:50.880 --> 0:11:54.400 James Patton on the phone, Peyton on the phone in London, 0:11:54.440 --> 0:11:56.720 along with Bloomberg Business Week editor Jiell Webber on the 0:11:56.760 --> 0:12:01.120 access line in Brooklyn. James Peyton story, feel like it's 0:12:01.120 --> 0:12:03.199 such an important one to kind of understand what's been 0:12:03.200 --> 0:12:06.240 going on at Astra. Yeah, that's right. And you know, 0:12:06.280 --> 0:12:10.080 obviously here in America, Astra hasn't figured into the conversation 0:12:10.240 --> 0:12:12.920 quite as much, but it is one that's really important 0:12:12.960 --> 0:12:16.280 in Europe and elsewhere in the world, and it we 0:12:16.520 --> 0:12:19.320 you know, it still has potential and we're about to 0:12:19.320 --> 0:12:22.640 see some results from a US trial that may clear 0:12:22.720 --> 0:12:24.760 up some of the confusion. That it's a big may 0:12:24.840 --> 0:12:28.240 because the confusion has led to a backlash in Europe. 0:12:28.240 --> 0:12:31.960 And that's sort of where the story uh that James 0:12:31.960 --> 0:12:35.199 and others uh rope for this issue of the magazine began. So, James, 0:12:35.200 --> 0:12:38.560 what did you guys learn what's been the continent's response 0:12:38.679 --> 0:12:43.080 to Astra's rollout. Yeah, we'll get to be with you. 0:12:43.160 --> 0:12:47.440 I mean We're hearing reports out of Europe in places 0:12:47.480 --> 0:12:53.000 like Italy and Germany and elsewhere of health workers and others, 0:12:53.160 --> 0:12:58.120 UM pushing back on this vaccine basically perceiving it to 0:12:58.160 --> 0:13:01.520 be less effective in some way or you know, cause 0:13:01.559 --> 0:13:03.880 for concern when it comes to possible side effects. And 0:13:03.880 --> 0:13:07.240 there are um, you know, local anecdotes I guess you 0:13:07.240 --> 0:13:10.440 could call them circulating of health workers experiencing some bad 0:13:10.480 --> 0:13:13.680 reactions to the vaccine. UM. Now you know, the company 0:13:13.720 --> 0:13:16.559 says these are all consistent with what has been observed 0:13:16.880 --> 0:13:21.720 in uh some participants in clinical trials. UM. But that 0:13:21.800 --> 0:13:25.520 clearly hasn't held matters UM for you know, Astroseneca and 0:13:25.559 --> 0:13:27.840 Oxford its partner, And there's been a lack of data 0:13:28.000 --> 0:13:32.199 on the effectiveness in older adults. UM. You know, the 0:13:32.280 --> 0:13:35.719 vaccine was given the green light for all adults by 0:13:35.720 --> 0:13:40.079 the European regulator, the equivalent to the FDA out here. UM, 0:13:40.120 --> 0:13:43.280 but at least ten EU countries haven't cleared it for 0:13:43.360 --> 0:13:49.200 people over sixty five due to that insufficient evidence. So uh, 0:13:49.280 --> 0:13:51.280 you know in some places, I think last we checked 0:13:51.320 --> 0:13:57.760 in Germany, UM, only something like of the roughly one 0:13:57.760 --> 0:14:00.800 point five million astroid doses that have been delivered to 0:14:00.840 --> 0:14:04.559 the country, has actually been injected, uh into arms. And 0:14:04.720 --> 0:14:07.960 it's early days, but obviously that doesn't that doesn't bode well, 0:14:08.000 --> 0:14:10.760 so the company is trying to turn that around. Governments 0:14:10.760 --> 0:14:14.240 also realized they'll need to rely on this vaccine to 0:14:14.280 --> 0:14:17.720 immunize a large part of the population. So what do 0:14:17.760 --> 0:14:21.640 we know about how effective it is, James, Because as 0:14:21.680 --> 0:14:24.480 you and your colleagues right, since Astro and Oxford announced 0:14:24.480 --> 0:14:27.280 their initial results last year, data on the vaccines effectiveness 0:14:27.280 --> 0:14:31.760 in preventing symptophatic symptomatic infection have ranged from sixty and 0:14:31.760 --> 0:14:34.040 that's because of dosing amounts and regiments in the trial, 0:14:34.120 --> 0:14:37.760 different ones exactly, And that is one of the key 0:14:38.400 --> 0:14:41.840 issues that revolves around affectiveness. And you know you mentioned 0:14:41.840 --> 0:14:47.240 the other vaccines, Visor's, Maderna's. Um. You know, all the 0:14:47.280 --> 0:14:49.400 companies say over and over again, this isn't a race. 0:14:49.600 --> 0:14:52.080 You know, it's not a race. But in this case, um, 0:14:52.440 --> 0:14:54.280 you know, it turned out to be a race in 0:14:54.320 --> 0:14:57.520 many ways. Uh. You know, following Visor and Maderna was 0:14:57.520 --> 0:15:01.040 a difficult position to be in those you know, those 0:15:01.080 --> 0:15:05.120 companies have attracted most attention. Um. You know you probably 0:15:05.160 --> 0:15:08.600 recall when they reported their clinical trial results that the 0:15:08.680 --> 0:15:12.160 numbers were stunning, and you know, even if it wasn't 0:15:12.160 --> 0:15:15.520 that simple, they appeared to be totally clear and unambiguous. 0:15:15.560 --> 0:15:20.800 I mean both attained efficacy levels around so that was 0:15:20.880 --> 0:15:25.440 one number to digest. It was hugely positive. And now AstraZeneca, 0:15:25.880 --> 0:15:27.720 you know, an Oxford, it's a different story. When they 0:15:27.760 --> 0:15:30.080 released their results, as you say, there was a wide 0:15:30.160 --> 0:15:39.000 range of numbers finally an average of it was very confusing, 0:15:39.440 --> 0:15:42.280 not just for journalists but for scientists. You ever, was 0:15:42.360 --> 0:15:47.080 scrambling to make sense of just how effective this vaccine is. 0:15:47.120 --> 0:15:50.160 And you know, the takeaway to disease experts is that 0:15:50.400 --> 0:15:55.280 all these front runners, including astra Zeneca, look like they 0:15:55.280 --> 0:16:01.000 provide comparable and almost complete protection against severe illness and death. 0:16:01.080 --> 0:16:04.040 So those are the most important factors to consider. Um 0:16:04.080 --> 0:16:06.440 So when it comes to those critical outcomes that will 0:16:06.520 --> 0:16:10.200 end the pandemic, this vaccine is still expected to play 0:16:11.080 --> 0:16:13.600 a crucial role. But unfortunately there are all these questions 0:16:14.320 --> 0:16:17.600 swirling around Astersenic and Oxford that have hurt the way 0:16:17.840 --> 0:16:21.280 the vaccine is perceived. That was the point that I 0:16:21.320 --> 0:16:23.600 just wanted to sort of underscore. There is like, just 0:16:23.680 --> 0:16:28.200 because the results have been confusing, There still is a 0:16:28.720 --> 0:16:30.640 I guess you could think of it. It's like a 0:16:30.760 --> 0:16:35.040 portfolio of vaccine approach here, which is that as long 0:16:35.040 --> 0:16:39.040 as it keeps people from having severe illnesses overwhelming hospitals 0:16:39.040 --> 0:16:42.640 and and you know, hopefully dying like it, it may 0:16:42.800 --> 0:16:45.120 in the astrosenic a vaccine like still may prove a 0:16:45.360 --> 0:16:50.280 really important role, especially on a global stage. UM. So 0:16:50.400 --> 0:16:52.360 when you think about that and then you know these 0:16:52.480 --> 0:16:56.800 these forthcoming US results, what do what do we expect? Like, 0:16:57.040 --> 0:16:58.720 is there any sense that you know there could be 0:16:58.800 --> 0:17:03.360 just more confusion? More at a equals more confusion definitely. 0:17:03.400 --> 0:17:06.280 I mean the US you know you mentioned the you know, 0:17:06.320 --> 0:17:08.440 the U S data. So this is going to be 0:17:08.520 --> 0:17:14.240 from trials of tens of thousands of participants, UM, and 0:17:14.320 --> 0:17:17.120 that's going to be UM coming out in the coming weeks. 0:17:17.160 --> 0:17:21.200 I think that's going to be closely scrutinized and pivotal 0:17:21.800 --> 0:17:25.159 for the two UK partners. And I think about a 0:17:25.320 --> 0:17:29.240 quarter of the participants in that study are older than 0:17:29.280 --> 0:17:32.720 sixty five, so we should get a good indication of 0:17:32.800 --> 0:17:37.600 the protection it offers older adults. UM. So you know, 0:17:37.800 --> 0:17:42.280 astra Zeneca is keen to demonstrates its potency and older people. 0:17:42.640 --> 0:17:46.399 And I think an FDA decision UM we've reported UH 0:17:46.560 --> 0:17:48.679 is expected as early as April. So this is going 0:17:48.720 --> 0:17:52.960 to be a key stretch for UM, for ASTRA and Oxford. 0:17:53.160 --> 0:17:54.800 And as you say, I think you alluded to it. 0:17:55.359 --> 0:17:59.000 I think it's overlooked sometimes how much the world is 0:17:59.080 --> 0:18:03.160 counting on this back scene. I mean it's huge, assuming 0:18:03.160 --> 0:18:07.120 it's it's it's rolled out and there aren't for the delays. Yeah, yeah, 0:18:07.160 --> 0:18:08.959 and listen all the doctors that we talked to say, 0:18:09.000 --> 0:18:11.800 you're going to need multiple tools in that toolkit, that 0:18:11.920 --> 0:18:14.400 COVID toolkit in order to get controlled. Jil Weber, thank 0:18:14.440 --> 0:18:17.000 you so much, Editor Bloomberg Business Week. UH, and of 0:18:17.040 --> 0:18:20.119 course James Peyton healthcare reporter. Check out his story in 0:18:20.160 --> 0:18:24.439 Bloomberg Business Week. This is Bloomberg Business Week with Carol 0:18:24.480 --> 0:18:29.400 Masser and Bloomberg Quick Takes. Tim Stinovich from Bloomberg Radio. Well, 0:18:29.520 --> 0:18:31.800 that's caught our attention. You were talking about this one 0:18:31.840 --> 0:18:34.520 of our planning calls today, Tim, about how the capital 0:18:34.760 --> 0:18:37.520 is being turned or being turned into a fortress, is 0:18:37.560 --> 0:18:39.600 really kind of bringing on the push to make it 0:18:40.800 --> 0:18:44.120 a state. And look, DC statehood has been something that 0:18:44.480 --> 0:18:48.080 liberals and Democrats have wanted for a very long time. 0:18:48.240 --> 0:18:51.240 The big question is it ever going to happen? Yeah, 0:18:51.280 --> 0:18:54.320 So let's put that question to Amanda Colson Hurley. She's 0:18:54.320 --> 0:18:56.960 politics editor Bloomberg Business Week. She's with us from the 0:18:57.040 --> 0:19:00.280 nation's capital. Amanda, good to have you here with Tim 0:19:00.280 --> 0:19:02.480 and myself. So tell us a little bit about your well. 0:19:02.520 --> 0:19:04.320 First of all, give us a visual. And I know 0:19:04.400 --> 0:19:07.080 we're on radio, we're on YouTube for those who are 0:19:07.080 --> 0:19:10.040 also watching there. But give us the visual of what 0:19:10.200 --> 0:19:15.320 DC is like right now? Sure? Um. So I actually 0:19:15.359 --> 0:19:20.800 went down to the area around the Capitol on Sunday 0:19:20.840 --> 0:19:25.800 and walked all around. Um, the capital as well as 0:19:25.960 --> 0:19:29.879 a number of the well known landmarks nearby, like the U. S. 0:19:29.880 --> 0:19:34.240 Supreme Courts, the Library of Congress, Um, are all behind 0:19:35.840 --> 0:19:40.240 a big sense seven fts hall fence tops in most 0:19:40.280 --> 0:19:44.560 parts with these coils of razor wire. Um. There are 0:19:44.720 --> 0:19:49.040 troops patrolling, um, you know, stationed every I would say, 0:19:49.040 --> 0:19:52.359 every d two hundred feet or so, little clump clumps 0:19:52.400 --> 0:19:57.400 of of troops. Um. And so really there's this kind 0:19:57.400 --> 0:20:01.920 of compound now on Capitol Old it's about three miles 0:20:02.040 --> 0:20:07.960 in circumference. So, um, it's a very uh dramatic difference 0:20:08.119 --> 0:20:11.840 from that area if anyone has you know, been there 0:20:11.880 --> 0:20:15.399 before as a tourist or as a local. Uh, you know, 0:20:15.480 --> 0:20:18.800 with used to be quite open obviously a great attraction 0:20:18.960 --> 0:20:23.960 for for visitors. Uh you know, very very famous views 0:20:24.080 --> 0:20:28.280 of the capital dome. Um. So, uh it's all looking 0:20:28.440 --> 0:20:30.520 looking pretty different right now. If you're watching us on 0:20:30.560 --> 0:20:32.600 YouTube right now, you see some of these images that 0:20:32.600 --> 0:20:35.560 that Amanda took, that with that she took and she 0:20:35.640 --> 0:20:38.760 sent to us. Um, Amanda, I gotta ask what the 0:20:38.760 --> 0:20:42.840 connection is here with with DC statehood? Right, the relationship 0:20:42.880 --> 0:20:47.840 between the federal government and the district and and law enforcement. 0:20:48.760 --> 0:20:53.159 Well right as as you said, Uh, now, the push 0:20:53.440 --> 0:20:57.720 for statehood in DC is not something that's frown up overnight. 0:20:57.760 --> 0:21:02.199 I mean it's been years decade that uh you know, 0:21:02.240 --> 0:21:07.639 some activists have been pushing for DC to become a state. Um. 0:21:07.960 --> 0:21:11.560 But I think, uh, a couple of things happened. First 0:21:11.560 --> 0:21:15.560 of all, the Democrats won the White House and both 0:21:15.560 --> 0:21:19.040 houses of Congress, although they controlled the Senate very narrowly, 0:21:19.600 --> 0:21:23.280 and this gave statehood advocates really the best kind of 0:21:23.320 --> 0:21:29.960 window that they've had in a long time, uh, probably ever. Um, more. 0:21:30.000 --> 0:21:33.320 You know, a prominent Democrats have said they support statehood 0:21:33.320 --> 0:21:36.719 in recent years. President Biden has said in the past 0:21:37.119 --> 0:21:40.320 that d C should be a state. Uh so there 0:21:40.440 --> 0:21:44.960 is some kind of momentum. And I think meanwhile, the 0:21:45.040 --> 0:21:49.000 events of January six, uh, you know, left a lot 0:21:49.040 --> 0:21:52.399 of people in DC, both the kind of elected local 0:21:52.480 --> 0:21:56.840 leaders there and just regular residents, uh, you know, feeling 0:21:58.160 --> 0:22:01.560 more ad ODT with the federal government. And this sense 0:22:01.720 --> 0:22:06.679 kind of symbolizes that, right. Um, you know, it was imposed. Uh, 0:22:07.080 --> 0:22:12.520 this temporary senses there now was imposed uh immediately, Uh, 0:22:12.560 --> 0:22:15.880 and people kind of understand that it needs to be there. 0:22:15.880 --> 0:22:18.800 I think it reassured people, especially in the initial days 0:22:18.880 --> 0:22:22.880 after the riot. But now there's this proposal to put 0:22:22.960 --> 0:22:26.840 up a permanent sense and uh, you know, as as 0:22:27.160 --> 0:22:29.800 one person I interviewed said to me, we already don't 0:22:29.800 --> 0:22:32.640 have any representation in Congress, and now they're kind of 0:22:32.840 --> 0:22:35.359 walling it off for us from from us. In addition 0:22:35.400 --> 0:22:39.200 to that, what's the political will to make a change. 0:22:39.240 --> 0:22:43.400 And I'm just curious Republicans versus Democrats on this. Yeah. Well, 0:22:43.440 --> 0:22:47.439 I mean there's a pretty clear split there in that uh, 0:22:47.960 --> 0:22:51.919 DC statehood is much more favored you know, by Democrats, 0:22:51.960 --> 0:22:55.840 by liberals. Uh. And part of the reason for that 0:22:56.040 --> 0:22:59.320 is that, uh, you know, the district, which has seven 0:22:59.760 --> 0:23:04.200 thousand people now, um, is you know, one of one 0:23:04.200 --> 0:23:09.600 of the most solidly democratic voting places in the country. Um. 0:23:09.640 --> 0:23:12.359 People don't vote for you know, they don't have a 0:23:12.440 --> 0:23:17.960 voting representative in the House or or senators who can vote. 0:23:17.960 --> 0:23:20.280 But but they do vote for president. And I think 0:23:20.320 --> 0:23:24.640 they voted for Joe Biden more strongly than anywhere else 0:23:24.680 --> 0:23:26.440 in the country. I mean, there are there are other 0:23:26.480 --> 0:23:30.880 reasons too, and that uh you know, there are objections 0:23:30.880 --> 0:23:33.919 on the grounds that it's it would not be constitutional, 0:23:34.680 --> 0:23:37.639 uh you know, or um, you know, the DC was 0:23:37.680 --> 0:23:40.200 really intended to be a federal district, so the the 0:23:40.680 --> 0:23:43.639 the objections are not entirely partisan, but that is definitely 0:23:43.720 --> 0:23:46.480 part of it. So Amanda, very briefly, Um, look, it 0:23:46.520 --> 0:23:49.080 makes sense that Democrats want d C to be a 0:23:49.160 --> 0:23:51.480 state for politically, it makes sense. But is there a 0:23:51.520 --> 0:23:53.720 chance that it happens in the near future, any chance 0:23:53.760 --> 0:23:55.280 at all? And we only have about twenty seconds. Oh 0:23:55.280 --> 0:23:57.000 we don't we Actually we can have more time with you. 0:23:57.040 --> 0:24:00.720 I'm sorry, we get more time with you, Amanda. We say, 0:24:00.720 --> 0:24:04.520 Amanda is On, we were just going to go well, 0:24:04.560 --> 0:24:07.960 I mean, I think the answer is still pretty six thinct, 0:24:07.960 --> 0:24:10.120 which is they have their best window they've ever had 0:24:10.200 --> 0:24:13.760 right now, but it's still pretty slim. Um. I think, uh, 0:24:14.119 --> 0:24:16.359 they're not going to get sixty votes in the Senate. 0:24:16.920 --> 0:24:20.480 Uh to pass in the Senate the past statehood, they 0:24:20.480 --> 0:24:23.080 would have to sort of either eliminate or kind of 0:24:23.320 --> 0:24:26.119 work around the filibuster. I think there are you know, 0:24:26.200 --> 0:24:28.320 ways they could make a rule change where they would 0:24:28.520 --> 0:24:32.320 say statehood votes don't need you know, sixty votes. But 0:24:32.440 --> 0:24:36.640 even that seems like it would be it would require 0:24:36.720 --> 0:24:40.520 an expenditure of political capital that that perhaps you know, 0:24:40.640 --> 0:24:43.960 not everyone would be enthusiastic about, even you know, among 0:24:44.000 --> 0:24:46.680 the Democrats. So it makes me wonder what our forefathers 0:24:46.720 --> 0:24:49.040 would think. Um, but I do wonder, Amanda Hurley, what 0:24:49.160 --> 0:24:51.280 kind of a state would it be if it was 0:24:51.359 --> 0:24:53.960 on its own? Is there a state across the US 0:24:54.040 --> 0:24:57.600 that it kind of is similar to? Uh? Well, let's 0:24:57.600 --> 0:25:01.000 see in population terms, it's the most similar, I believe 0:25:01.080 --> 0:25:05.040 to Vermont and Wyoming with seven thousand people, but it 0:25:05.080 --> 0:25:08.680 would be it would have the highest share of of 0:25:08.240 --> 0:25:13.919 of black residents. Of of any states. Uh, as I 0:25:13.960 --> 0:25:17.000 said before, it would be very solidly democratic voting at 0:25:17.080 --> 0:25:19.520 least you know, for the time being, and it would 0:25:19.600 --> 0:25:24.640 still it would still have this kind of federal uh 0:25:24.680 --> 0:25:27.080 district at the very heart of it, where you know, 0:25:27.160 --> 0:25:30.600 all of the government buildings and the National Mall and 0:25:30.880 --> 0:25:33.720 monuments would be. So it's not like that's going to 0:25:33.840 --> 0:25:38.000 go away. That would just shrink and d C would 0:25:38.000 --> 0:25:40.840 otherwise kind of have the powers of the state. But 0:25:41.280 --> 0:25:43.480 I think you know that that means that whatever happens, 0:25:43.520 --> 0:25:46.720 that tension between the district and the federal government is 0:25:46.760 --> 0:25:49.840 never going to go away entirely because of that. What 0:25:49.920 --> 0:25:52.480 about people in Washington, d C. I mean, do do 0:25:52.600 --> 0:25:56.360 they want this to happen? How do they feel about this? Yeah? 0:25:56.480 --> 0:25:59.520 I think the last time there was a polar survey 0:25:59.600 --> 0:26:04.480 den uh support at least for statehood referendum was at 0:26:04.840 --> 0:26:08.280 six percent. So um, you know, and a lot of 0:26:08.320 --> 0:26:13.440 the local political leaders are pretty strong statehood proponents proponents 0:26:13.520 --> 0:26:18.600 excuse me, um. The non voting congresswoman for the district, 0:26:18.600 --> 0:26:23.239 Eleanor Holmes Norton, has introduced a statehood bill into the House. Uh. 0:26:23.440 --> 0:26:27.120 You know, year after year after year. Uh. So and 0:26:27.840 --> 0:26:30.280 certainly a number, if not all, of the members of 0:26:30.000 --> 0:26:35.160 the district the DC Council as well support statehood. Um, 0:26:35.160 --> 0:26:38.200 it's a pretty common sentiment. Even the DC license plate 0:26:38.280 --> 0:26:42.000 if you've ever seen it, the standard motto and the 0:26:42.080 --> 0:26:46.600 license plate is end taxation without representation. So people do 0:26:46.680 --> 0:26:49.920 feel pretty strongly about Yeah, that's pretty clear. What about 0:26:49.920 --> 0:26:53.200 people like beyond DC, like the rest of the country 0:26:53.320 --> 0:26:55.719 are people did they do they have any strong feelings 0:26:55.760 --> 0:26:59.640 about it? Yeah? I think in the rest of the country, 0:26:59.680 --> 0:27:02.080 I think a lot of people sort of aren't don't 0:27:02.119 --> 0:27:06.520 think a lot you know, as understandably about the issue 0:27:06.520 --> 0:27:10.159 and what it means to district residents. I think the 0:27:10.280 --> 0:27:12.879 last time there was a Gallop poll a couple of 0:27:12.960 --> 0:27:15.600 years ago, and support for d C statehood was not 0:27:15.800 --> 0:27:18.840 very high. It was I think around thirty percent or 0:27:18.880 --> 0:27:22.400 even lower. And Um, a lot of people feel that maybe, 0:27:22.440 --> 0:27:24.440 you know, it shouldn't be a state, that maybe because 0:27:24.480 --> 0:27:27.480 they think it's you know, very small, or or that 0:27:27.560 --> 0:27:30.640 it's uh you know, maybe they think it's for partisan 0:27:30.680 --> 0:27:33.719 reasons only, that that people would would want it to 0:27:33.760 --> 0:27:37.639 become a state. Uh So, Yeah, it's not an issue 0:27:37.680 --> 0:27:41.040 that I would say has attracted really broad support outside 0:27:41.560 --> 0:27:45.040 of the DC area. Are there are there certain members 0:27:45.080 --> 0:27:48.760 of Congress right now, um, who are sort of surprising 0:27:48.880 --> 0:27:51.359 on the issue, like is this Are there any Republicans 0:27:51.400 --> 0:27:53.000 who support this or do they know this is just 0:27:53.080 --> 0:27:57.680 so dangerous politically? That's a good question. I'm actually not 0:27:58.000 --> 0:28:02.040 aware if any Republicans have come out and said, you 0:28:02.040 --> 0:28:06.639 know what, DC residents should be able to, you know, 0:28:06.720 --> 0:28:11.360 have representation in Congress to um and look there there there. 0:28:12.040 --> 0:28:14.760 It is dangerous politically for them because it would the 0:28:14.800 --> 0:28:17.680 margins right now are razor tight. And if DC were 0:28:17.720 --> 0:28:20.920 to become a state, think about who that enfranchises, right, 0:28:21.359 --> 0:28:23.720 a group of voters who largely voted as you mentioned 0:28:23.760 --> 0:28:27.560 Amanda for vice for President Biden now uh. And and 0:28:27.600 --> 0:28:30.240 also it would give them senators who would likely be 0:28:30.359 --> 0:28:33.720 Democrats and really change the balance of power. That's right, 0:28:33.760 --> 0:28:36.400 I mean the DC senators if it had them, would 0:28:36.440 --> 0:28:41.560 almost certainly be Democrats. You know, two Democrats, which would 0:28:42.000 --> 0:28:46.000 you know, in the current situation easily you know, tip 0:28:46.040 --> 0:28:50.320 control of the Senate, you know from from split right, 0:28:50.680 --> 0:28:52.880 you know, easily tip it over to the Democrats and 0:28:52.920 --> 0:28:55.680 giving them a kind of margin. So so yeah, I 0:28:55.720 --> 0:28:57.920 do think that it's kind of a paradox of the 0:28:57.920 --> 0:29:03.240 current situation for statehod advocates. But while having this democratic 0:29:03.240 --> 0:29:07.840 trifecta in Washington gives them this opportunity that they're excited about. 0:29:08.560 --> 0:29:12.880 You know. Having the fifty split also probably illustrates for 0:29:13.320 --> 0:29:17.360 for Republicans and for other opponents, just just how much 0:29:17.360 --> 0:29:20.080 of a difference it would make, uh if if the 0:29:20.120 --> 0:29:22.920 district were to become the state, and you know how 0:29:22.960 --> 0:29:25.360 that would change the political calculus and does it open 0:29:25.360 --> 0:29:27.160 the door then for Puerto Rico or something. I don't know, 0:29:27.320 --> 0:29:30.560 like who knows, um, but it's very provocative. Uh, and 0:29:30.640 --> 0:29:33.040 those visuals. I highly recommend everybody to go to Bloomberg 0:29:33.080 --> 0:29:35.480 dot com and see a little bit of that more. Amanda, 0:29:35.520 --> 0:29:38.040 Thank you, Amanda Coolson Hurley Politics that are at Bloomberg 0:29:38.080 --> 0:29:42.320 Business Week from the nation's capital. This is Bloomberg Business 0:29:42.400 --> 0:29:46.200 Week with Carol Messer and Bloomberg Quick Takes Tim Stinovic 0:29:46.560 --> 0:29:49.880 from Bloomberg Radio. We had a big story, a big 0:29:49.960 --> 0:29:52.040 business story over the past week, and this is about 0:29:52.040 --> 0:29:57.080 married International naming uh Tony Capuano as chief executive officer, 0:29:57.240 --> 0:30:00.600 tapping someone who is well known to the company to 0:30:00.680 --> 0:30:04.880 really lead this hotel giant's recovery after the COVID nineteen pandemic. 0:30:04.960 --> 0:30:07.560 So we are delighted to welcome Tony to Bloomberg Business 0:30:07.560 --> 0:30:10.280 WEEKI Jones is on the phone in Pathesda, Maryland. Tony, 0:30:10.320 --> 0:30:13.120 great to have you here with Tim and myself. How 0:30:13.160 --> 0:30:15.600 are you? And I have to say, Um, many of 0:30:15.640 --> 0:30:17.320 us here at Bloomberg we've been thinking about you and 0:30:17.360 --> 0:30:19.680 the Marriott family after the loss of Arnie Sarns and 0:30:19.680 --> 0:30:23.160 he was always always so generous with his time to 0:30:23.400 --> 0:30:25.320 so many of us here at Bloomberg, and especially over 0:30:25.320 --> 0:30:27.880 the last year when we know personally professionally he was 0:30:27.920 --> 0:30:32.760 dealing with so much. Well, thank you, Carol, and thanks 0:30:32.760 --> 0:30:35.920 for having me back. It's obviously been a tough week 0:30:36.000 --> 0:30:39.080 for all of us. I talked to our team around 0:30:39.080 --> 0:30:41.880 the world over the last few days, and the two 0:30:41.880 --> 0:30:45.560 words that I really thought about were reflection and resolve. 0:30:46.400 --> 0:30:50.080 All of us are reflecting on the this this terrible loss, 0:30:50.760 --> 0:30:53.640 the loss for Arnie's family, the loss for the extended 0:30:53.680 --> 0:30:57.640 Marriott family, and the loss for the business community more broadly, 0:30:57.680 --> 0:31:00.560 as as you suggested, but I think there is a 0:31:00.640 --> 0:31:03.520 real resolve here. Um. This is a company that is 0:31:03.560 --> 0:31:08.760 approaching its anniversary, and we've been through recessions and nine 0:31:08.760 --> 0:31:12.320 eleven and the Great Financial Crisis and the pandemic, and 0:31:12.400 --> 0:31:15.240 it's a company that has the resolve to continue to 0:31:15.280 --> 0:31:18.920 build and grow and create opportunities for our folks and 0:31:18.960 --> 0:31:22.080 really help the company realize it's promise. But it's been 0:31:22.120 --> 0:31:24.800 a difficult week, no, and you've really all been on 0:31:24.840 --> 0:31:27.320 our minds, UM. And you talk about family, and you 0:31:27.360 --> 0:31:31.120 think about the Marriott family, your franchise owners. You treat 0:31:31.160 --> 0:31:33.600 them like they are family members. Tell me how they 0:31:33.640 --> 0:31:36.840 are doing in this environment and what it looks like, uh, 0:31:37.040 --> 0:31:42.560 going forward this year and then beyond. Well, the pandemic 0:31:42.720 --> 0:31:46.440 is obviously a historic and terrible crisis from a whole 0:31:46.680 --> 0:31:51.800 host of perspectives. The travel industry has been hit particularly hard, 0:31:52.280 --> 0:31:55.280 and a lot of the weight of that that impact 0:31:55.400 --> 0:32:00.280 has fallen on the shoulders of our owners and franchises. UM. 0:32:00.840 --> 0:32:05.400 They are under tremendous financial pressure. UH. Some of the hotels. 0:32:05.440 --> 0:32:08.880 At the outset of the pandemic, we had hundreds of 0:32:08.920 --> 0:32:12.840 hotels clothes on a global basis, we were running twelve 0:32:12.920 --> 0:32:17.800 percent occupancy, and that created great distress for our owner community. 0:32:18.520 --> 0:32:21.160 As we've seen through the last number of months, we 0:32:21.240 --> 0:32:26.000 are seeing slow and steady recovery, particularly domestically in drive 0:32:26.080 --> 0:32:30.840 to destinations, interestingly China, which seems to have its arms 0:32:30.960 --> 0:32:36.480 relatively around the virus. We're seeing occupancy levels approaching pre pandemic, 0:32:36.880 --> 0:32:39.720 which is quite encouraging and maybe represents a bit of 0:32:39.720 --> 0:32:42.320 a roadmap for the rest of the world. But at 0:32:42.360 --> 0:32:46.160 the same time, we continue to see instances where there's 0:32:46.160 --> 0:32:49.040 a spike in infection rates and a given market, and 0:32:49.080 --> 0:32:51.960 it has a pretty stark chilling impact on the pace 0:32:52.000 --> 0:32:56.400 of demand growth. Tony, you ran the hotel, the you 0:32:56.720 --> 0:33:02.920 ran the company's hygiene initiative. What should customers expect if 0:33:02.920 --> 0:33:06.440 they haven't traveled to a Marriott property in a few 0:33:06.520 --> 0:33:09.440 years or since the pandemic started. How will that experience 0:33:09.480 --> 0:33:14.600 be different post pandemic? I think in a few ways. 0:33:14.680 --> 0:33:18.680 I think really starting during the booking process, when they 0:33:18.680 --> 0:33:22.040 go to Marriott dot com to to make their reservations. 0:33:22.520 --> 0:33:28.680 There are pretty thorough and transparent disclosures about any modifications 0:33:28.720 --> 0:33:31.880 we've made to the operations of a given hotel, whether 0:33:31.920 --> 0:33:34.880 there are outlets that are closed, that have limitations on 0:33:35.000 --> 0:33:40.920 capacity or modified hours. When they arrive, they will see 0:33:41.000 --> 0:33:44.640 every one of their fellow guests and every Marritt associated masks. 0:33:45.240 --> 0:33:51.920 They will see electrostatic cleaners disinfecting the public areas. They 0:33:51.960 --> 0:33:55.880 will have optionality around whether they want daily housekeeping, but 0:33:56.000 --> 0:33:57.920 they know that when they arrive in their room for 0:33:57.920 --> 0:34:01.160 the first time, that there is a hospital grade level 0:34:01.160 --> 0:34:04.040 of cleaning that's been done to that room before their arrival, 0:34:04.720 --> 0:34:07.640 and they will experience a lot of advances that we've 0:34:07.640 --> 0:34:12.000 made from a technology perspective to make it as touchless 0:34:12.000 --> 0:34:16.120 an environment as possible. We've made some pretty significant upgrades 0:34:16.160 --> 0:34:20.520 to the Bonvoy app and the ability to check in remotely, 0:34:20.920 --> 0:34:24.600 to order room service remotely. Uh, there's a chat function 0:34:24.680 --> 0:34:27.719 to talk to the hotel staff if there are service requests, 0:34:28.120 --> 0:34:30.640 and so I think those are the most significant changes. 0:34:31.040 --> 0:34:33.080 How much of it stays with us? Tony, Listen, you're 0:34:33.120 --> 0:34:35.680 someone who I know used to travel. I'm assuming a lot, 0:34:35.719 --> 0:34:37.680 and we can talk about how much traveling you've been doing. 0:34:37.719 --> 0:34:40.120 I used to travel a lot, haven't done much in 0:34:40.160 --> 0:34:43.680 twelve months. How much of what changes in the hotel industry, 0:34:43.719 --> 0:34:46.960 the hospitality industry really stays with us longer term? Like 0:34:47.000 --> 0:34:49.040 it sounds like some of the digitization in the apps 0:34:49.040 --> 0:34:51.439 like that to me, sounds like a great thing. Um, 0:34:51.480 --> 0:34:53.040 I'm hoping there's a day when I can walk into 0:34:53.040 --> 0:34:54.920 a hotel lobby and I don't have a mask on, 0:34:55.360 --> 0:34:56.960 and I don't have to be so worried, and I 0:34:57.000 --> 0:34:59.880 like housekeeping. I'm just gonna say so, I'm just curious 0:34:59.880 --> 0:35:05.480 how how much stays with us M Yeah, you know, 0:35:05.960 --> 0:35:08.799 all of these decisions are often informed by what we 0:35:08.880 --> 0:35:12.360 hear from our guests. But I think your intuition is right. 0:35:12.360 --> 0:35:14.680 When I look across all the changes we've had to 0:35:14.760 --> 0:35:20.120 make in response to the pandemic, I think the technological advances, 0:35:20.160 --> 0:35:25.080 the optionality of touchless experiences, I think those will continue 0:35:25.160 --> 0:35:29.400 post pandemic. Uh. The nice thing will be to your point, 0:35:29.800 --> 0:35:32.120 we all aspire to get to a place where no 0:35:32.160 --> 0:35:36.480 one has a mask, there are no plexiglass barriers, and 0:35:36.560 --> 0:35:40.000 then it will really be based upon guest preference. There 0:35:40.000 --> 0:35:42.280 are some guests that love to go to the front desk, 0:35:42.440 --> 0:35:47.600 engage with our associates, get local restaurant recommendations. And there 0:35:47.640 --> 0:35:50.279 are others that want to check in, get a mobile key, 0:35:50.320 --> 0:35:52.440 and go straight to their room. And I think we 0:35:52.520 --> 0:35:54.359 all look forward to the day where we can offer 0:35:54.440 --> 0:35:56.840 both of those options to our guests. Hey, Tony, we 0:35:56.880 --> 0:36:00.759 saw something really interesting happen at the beginning of the pandemic. 0:36:01.000 --> 0:36:06.239 When lockdown started back in March, Airbnb really struggled, and 0:36:06.280 --> 0:36:10.359 they struggled very quickly and laid off employees. And then 0:36:10.960 --> 0:36:14.000 a few months later the company really started to recover 0:36:14.200 --> 0:36:17.080 as as people wanted to spend a long time in 0:36:17.200 --> 0:36:20.960 homes away from their primary residences. I'm wondering how you 0:36:21.000 --> 0:36:24.080 think about Airbnb and how you're thinking about competition from 0:36:24.080 --> 0:36:30.839 Airbnb over the next few years. Well, Tim, we um, 0:36:30.880 --> 0:36:34.000 as you know, in two thousand nineteen, we launched Marryott 0:36:34.000 --> 0:36:38.200 Homes and Villas, uh not with an eye towards going 0:36:38.280 --> 0:36:41.840 head to head with Airbnb. I don't think we'll find 0:36:41.840 --> 0:36:46.840 ourselves in the business of traditional home sharing or couch 0:36:46.880 --> 0:36:50.280 surfing or any of those areas, um, but we've really 0:36:50.320 --> 0:36:53.000 focused on the upper end of the market and whole 0:36:53.080 --> 0:36:56.839 home rentals, and we think the value proposition that that 0:36:56.880 --> 0:37:02.720 we offer is really predicated on consumer confidence around safety, 0:37:03.280 --> 0:37:06.960 a service level that our customers expect, and a linkage 0:37:07.000 --> 0:37:10.680 to the Bonvoy loyalty program. And since that two thousand 0:37:10.760 --> 0:37:14.160 nineteen launch, where we had about two thousand homes. We've 0:37:14.200 --> 0:37:18.640 grown to over homes. We think, in for a few 0:37:18.680 --> 0:37:21.839 short months, will be on every continent. And the thing 0:37:21.920 --> 0:37:25.719 we like about that business we hear from our customers 0:37:25.760 --> 0:37:29.720 that for very specific trip types, they like the notion 0:37:29.800 --> 0:37:33.279 of whole home rentals, and by launching this platform, it 0:37:33.320 --> 0:37:37.160 allows us to keep them within the Marriott ecosphere. Yeah, 0:37:37.200 --> 0:37:39.000 that makes sense. Hey, you know, Tony, one thing I 0:37:39.040 --> 0:37:40.880 want to ask you. You guys have so many different 0:37:40.920 --> 0:37:44.600 brands under your umbrella. There's the Rich Carlton, there's St. Regis, 0:37:44.640 --> 0:37:47.839 there's the w There's Sheridan, there's Home and Village. I mean, 0:37:47.840 --> 0:37:51.760 there's just so many. Does everything stay with you going forward? 0:37:51.960 --> 0:37:54.319 Or do you kind of take this time to look 0:37:54.360 --> 0:37:57.239 at the business and say, maybe we do some consolidation 0:37:57.320 --> 0:37:59.160 of brands. I knew each brand kind of has its 0:37:59.239 --> 0:38:02.160 its market, but I do wonder how you look and 0:38:02.200 --> 0:38:08.440 maybe change the business tweak it going forward. Carol, We 0:38:08.480 --> 0:38:12.120 actually love the breadth of our brand portfolio, and I 0:38:12.160 --> 0:38:15.080 think we like it because of the choice that it offers, 0:38:15.120 --> 0:38:18.359 certainly the choice to our consumers, but also to our 0:38:18.360 --> 0:38:23.799 owners and franchisees. We find from a consumer perspective. Depending 0:38:23.880 --> 0:38:26.960 on trip type, they may choose one of the hotels 0:38:26.960 --> 0:38:30.879 in our portfolio in the economy tire. Then they may 0:38:30.920 --> 0:38:33.800 plan of family vacation and go to a luxury resort. 0:38:34.280 --> 0:38:38.160 And similarly, the vast majority of our owner community are 0:38:38.280 --> 0:38:41.440 multi unit owners and they would like to continue to 0:38:41.520 --> 0:38:45.760 grow their portfolios within the Marriott family. Having that breadth 0:38:45.760 --> 0:38:48.399 of choice gives them lots of options as they look 0:38:48.480 --> 0:38:52.000 to continue to invest in the Marriott flags. So Tim 0:38:52.000 --> 0:38:53.719 and I Tony cannot wait to get back on a 0:38:53.760 --> 0:38:57.200 plane for fun for work, I cannot wait. I've missed it. 0:38:57.560 --> 0:39:00.439 Have you been traveling much for traveling for our work? 0:39:01.000 --> 0:39:04.960 Are traveling at all? I have, although I think the 0:39:05.040 --> 0:39:08.160 last time I was in studio with you, you were 0:39:08.200 --> 0:39:10.480 shaking your head at a number I shared with you 0:39:10.640 --> 0:39:12.920 that I had been traveled two hundred and twenty five 0:39:13.080 --> 0:39:16.760 nights the prior year. I'm obviously at a small fraction 0:39:16.800 --> 0:39:19.799 of that today. And unfortunately, because of some of the 0:39:19.840 --> 0:39:23.520 borders that are closed, I'm not traveling internationally nearly as 0:39:23.600 --> 0:39:26.319 much as I would like. But I've been in New York, 0:39:26.360 --> 0:39:29.640 I've been in Los Angeles, I've been in Miami visiting 0:39:29.640 --> 0:39:33.200 our teams and our associates across the country, and Uh, 0:39:33.320 --> 0:39:36.719 I have my passport and my my back pocket, and 0:39:37.040 --> 0:39:39.000 I am ready as soon as some of the borders 0:39:39.000 --> 0:39:42.160 start to open. I'm jealous business travel. How long do 0:39:42.200 --> 0:39:44.839 you think before it really comes back to what we've seen, 0:39:44.920 --> 0:39:50.280 what we saw pre pandemic. Well, there are, as you know, Carol, 0:39:50.320 --> 0:39:53.200 there are lots of opinions out there about whether we've 0:39:53.200 --> 0:39:56.319 seen some sort of permanent change in the demand for 0:39:56.400 --> 0:40:00.799 business travel, and and time will tell which those opinions 0:40:00.920 --> 0:40:04.280 is accurate. As we talk to our customers around the world, 0:40:05.040 --> 0:40:08.400 we certainly think leisure will lead the recovery, but we 0:40:08.480 --> 0:40:12.359 are already seeing green shoots for business transient demand, and 0:40:12.400 --> 0:40:15.480 we think fundamentally that is a business that will come 0:40:15.520 --> 0:40:19.719 back strong. What we hear from our customers not dissimilar 0:40:19.719 --> 0:40:22.560 to you and Tim's comments. They miss being on the road, 0:40:22.800 --> 0:40:27.200 they miss visiting their their business partners, and maybe most importantly, 0:40:27.600 --> 0:40:31.040 they miss visiting their customers. And so we're we're quite 0:40:31.080 --> 0:40:35.080 optimistic about the long term UH demand for business travel. 0:40:35.400 --> 0:40:37.120 Very briefly, the only other thing I would say to 0:40:37.200 --> 0:40:42.400 you is sorry, go ahead. Oh, I was just gonna 0:40:42.400 --> 0:40:45.400 say the one thing that may shift a bit carol 0:40:45.400 --> 0:40:48.879 about business travel. As folks have gotten more and more 0:40:48.960 --> 0:40:54.759 comfortable conducting business over Zoom or Microsoft teams, they have 0:40:54.880 --> 0:40:57.239 started to learn that perhaps they can do a better 0:40:57.320 --> 0:41:01.239 job blending leisure in business travel. And so there will 0:41:01.280 --> 0:41:03.960 certainly be certain business purposes where they need to be 0:41:04.000 --> 0:41:07.280 in person, but they may also say to their family, 0:41:07.960 --> 0:41:10.040 let's go for three or four days of vacation and 0:41:10.080 --> 0:41:12.080 I'll carve out a day in the middle and conduct 0:41:12.120 --> 0:41:15.880 business via technology. All right, great stuff, listen, thank you 0:41:15.920 --> 0:41:18.359 so much. Are you two so gracious with your time? 0:41:18.400 --> 0:41:20.560 We really appreciate it. And again we're thinking about all 0:41:20.560 --> 0:41:23.680 of you guys over at Marriott. Tony be well, stay safe. 0:41:23.719 --> 0:41:26.960 Tony Capuano he is chief executive officer at Married International. 0:41:27.080 --> 0:41:35.120 On the phone from Bethesda, Maryland. I'm ROC journal. Yeah, 0:41:35.160 --> 0:41:40.160 but you let me drive. No, no, no, no, honey, please, 0:41:40.280 --> 0:41:46.920 I'll do the right rivel. I want to drive, Just drive. 0:41:49.960 --> 0:41:59.600 It's the questions. Keep trying. This is the drive to 0:41:59.680 --> 0:42:05.520 the globe. That's Bloomberg Radio. All right, Just about eleven 0:42:05.520 --> 0:42:08.040 minutes left in today's trading session. Another day where we 0:42:08.160 --> 0:42:11.279 setting selling and then buyers coming back. Into the trade. Tim, 0:42:11.440 --> 0:42:14.760 So let's get to Dan Morgan, VP and senior portfolio 0:42:15.160 --> 0:42:17.879 manager over at the Nova's trust company. They've got roughly 0:42:17.920 --> 0:42:20.920 twenty point six billion in assets under management. He's with 0:42:21.040 --> 0:42:23.480 us once again on the phone in Atlanta. Dan, Good 0:42:23.560 --> 0:42:26.920 to have you here with us. How you doing, Hi, Carol? Hi? Tim? 0:42:26.960 --> 0:42:29.239 How are you happy New year? Happy New Year? And 0:42:29.400 --> 0:42:32.279 have we not talked to you since? I guess not yet. 0:42:32.360 --> 0:42:34.560 We did a bunch of stories kind of in the 0:42:34.680 --> 0:42:36.880 you know, Kalen the last year, but then things got 0:42:36.920 --> 0:42:39.280 crazy with the election and so but we're back today 0:42:39.320 --> 0:42:41.759 talking chips. Yeah, talking to Well listen, this is a 0:42:41.800 --> 0:42:43.359 big story and video is going to be out after 0:42:43.440 --> 0:42:47.600 the closing bow. But we are all focused here at Bloomberg, 0:42:47.920 --> 0:42:51.600 watching the administration, watching the industry because these chips shortages. 0:42:51.640 --> 0:42:53.120 What do we need to know about this and what 0:42:53.280 --> 0:42:55.600 needs to be done? Well, you're right, you know what, 0:42:55.760 --> 0:42:58.640 Carol's really interesting because last time we talked, we talked 0:42:58.680 --> 0:43:03.800 about how a large percentage of chips are actually built 0:43:03.880 --> 0:43:06.360 outside the US, right over in the Pacific RIM. We 0:43:06.480 --> 0:43:10.080 have all the engineering, marketing and design skills here, but 0:43:10.160 --> 0:43:12.799 we're actually most of our plants are fabulous, which means 0:43:12.840 --> 0:43:15.280 we don't produce the chips here, And there was actually 0:43:15.320 --> 0:43:17.000 you and I talked about it. Then all of a sudden, 0:43:17.000 --> 0:43:19.439 I noticed a couple of weeks ago, in the last 0:43:19.520 --> 0:43:22.760 ten days, all the chip companies got together and signed 0:43:22.800 --> 0:43:25.000 a letter and sent it to President Biden saying, you know, 0:43:25.120 --> 0:43:27.000 we need to start building chips here in the US, 0:43:27.640 --> 0:43:29.759 and how better way to get rid of some of 0:43:29.800 --> 0:43:32.719 these shortages than to have control of your supply and 0:43:32.840 --> 0:43:35.759 right now, unfortunately we don't have that, and that's what's 0:43:35.800 --> 0:43:38.600 causing these shortages and these problems. But of course, Carol, 0:43:38.840 --> 0:43:41.200 you and I were already ahead of the head of 0:43:41.280 --> 0:43:43.879 the ball here in terms of identifying that issue before 0:43:43.920 --> 0:43:47.279 it became a major story. Hey, dan Um, just in 0:43:47.280 --> 0:43:49.719 the last few minutes the NBC reporting that GM says 0:43:49.760 --> 0:43:52.239 the worst of the global chip shortage may be behind it. 0:43:52.600 --> 0:43:55.680 Is that something that that you're seeing at all? Well? 0:43:55.719 --> 0:43:57.640 I think so. I mean, if we think about what's 0:43:57.640 --> 0:44:00.600 happening in the semiconductor business right now in terms of 0:44:00.760 --> 0:44:03.600 the overall cyclical recovery, and you think about let's say, 0:44:03.600 --> 0:44:07.400 autos and industrials which have been coming back very strongly, 0:44:08.080 --> 0:44:10.080 and I know At one point we had some shutdowns 0:44:10.200 --> 0:44:12.400 right with some of the auto manufacturers where they couldn't 0:44:12.400 --> 0:44:15.319 even deliver certain models because they couldn't get the chips. 0:44:15.400 --> 0:44:18.120 So slowly, that's starting done fall a little bit. And 0:44:18.239 --> 0:44:19.680 you know, if we look at just a week ago, 0:44:19.760 --> 0:44:22.759 Analog Devices reported numbers and their auto division was up 0:44:22.840 --> 0:44:25.839 nineteen in terms of revenues. So I think that's getting 0:44:25.880 --> 0:44:28.600 behind us and things are getting better. But it'd be 0:44:28.640 --> 0:44:30.279 great if we could move those facilities here to the 0:44:30.360 --> 0:44:35.799 US and we wouldn't have any problems. Yes, everything would 0:44:35.800 --> 0:44:40.719 be some entirely. Oh that it were so okay, But Dan, 0:44:40.920 --> 0:44:43.440 wait a minute, Listen, you're much smarter than I when 0:44:43.480 --> 0:44:46.319 it comes to chips. There's lots of different kinds of chips. 0:44:46.360 --> 0:44:48.319 Are you talking about that we need to bring all 0:44:48.400 --> 0:44:52.680 kinds of chip manufacturing back to the United States? Well, 0:44:52.680 --> 0:44:55.440 you're right. I mean we talked about the autos industrials. 0:44:55.480 --> 0:44:57.319 One thing we always say, Carol, is that not every 0:44:57.400 --> 0:45:00.960 chip company is exactly the same. So I mean, when 0:45:01.000 --> 0:45:02.840 I say every it would just be good to have 0:45:02.920 --> 0:45:07.040 a larger percentage of the chips produced here domestically to 0:45:07.120 --> 0:45:09.520 kind of meet some of these areas that are really 0:45:09.560 --> 0:45:12.240 going to continue to be kind of secular growth stories. 0:45:12.560 --> 0:45:15.520 And we talked about this before, Carol and Tim. The cloud, 0:45:15.760 --> 0:45:18.440 which we all know is a great space gaming and 0:45:18.520 --> 0:45:21.600 then this huge five G rollout, especially in not only 0:45:21.719 --> 0:45:24.560 with smartphones with let's say an Apple, but also from 0:45:24.600 --> 0:45:28.160 the communications infrastructure, you know, perspective in terms of rolling 0:45:28.200 --> 0:45:30.440 out the base stations in terms of five G. So 0:45:30.800 --> 0:45:32.879 I don't know if we can get all of these 0:45:33.440 --> 0:45:36.799 areas here in the US domestic, but if we could 0:45:36.840 --> 0:45:38.759 get a larger percentage because I think at this point 0:45:38.800 --> 0:45:40.560 we talked about this before, Carl, I think it was 0:45:40.640 --> 0:45:46.959 only it was being produced outside it was a huge Yeah. Okay, 0:45:46.960 --> 0:45:49.520 so let's talk more in video company reporting earnings after 0:45:49.560 --> 0:45:52.239 the bell today. Speaking of chips, what would you ask 0:45:52.280 --> 0:45:55.080 management if you had the opportunity to do so well? 0:45:55.120 --> 0:45:57.720 I think Tim, you know, obviously we're gonna be following 0:45:57.960 --> 0:46:00.839 expectations in terms of data center revenue, which is about 0:46:00.840 --> 0:46:03.120 one point eight eight billion, gaming at two point three 0:46:03.239 --> 0:46:05.480 nine billion. I think something that's been kind of hot 0:46:05.560 --> 0:46:09.440 topic has been how is this acquisitioning is coming along? 0:46:09.960 --> 0:46:12.400 In return in regards to the arm deal, that was 0:46:12.480 --> 0:46:16.000 something that's somewhat controversial. Um, it really gives them a 0:46:16.120 --> 0:46:19.080 leg up in artificial intelligence what they have about a 0:46:19.160 --> 0:46:21.239 thirty nine percent market share, and they're kind of head 0:46:21.280 --> 0:46:23.920 of some of these other you know players in that space. 0:46:24.040 --> 0:46:26.920 Sy Links is in space Lattice, So it's kind of 0:46:27.000 --> 0:46:28.799 interesting to see if we can get a little bit 0:46:28.880 --> 0:46:32.000 more color from management, if that deal will in fact 0:46:32.040 --> 0:46:34.160 go through. There's been some pushback from some of the 0:46:34.200 --> 0:46:36.839 other chip makers that's saying, hey, we don't want ARM 0:46:36.920 --> 0:46:39.719 to be owned by videos. So I think that's could 0:46:39.760 --> 0:46:42.640 be on the center stage beyond just hitting those targets 0:46:42.680 --> 0:46:45.399 in terms of revenues. Is that deal going to go through? Well, 0:46:45.480 --> 0:46:47.360 that's where I wanted to go. I mean, there's some 0:46:47.520 --> 0:46:52.600 big companies are questioning this acquisition, Google, Microsoft, qual Calm. 0:46:52.719 --> 0:46:55.520 I mean some of the world largest technology companies. They're 0:46:55.560 --> 0:47:00.400 complaining to US antitrust regulators. When you look at that 0:47:00.600 --> 0:47:04.120 deal from an antitrust perspective, as an analyst, as an investor, 0:47:04.520 --> 0:47:07.320 do you think there's a problem. Well, Carol, you know, 0:47:07.560 --> 0:47:10.040 for listeners out there that aren't familiar with the model, right, 0:47:10.120 --> 0:47:12.640 it's kind of like a qualcom right, they are an 0:47:12.680 --> 0:47:16.840 intellectual property model which is they collect fees in regards 0:47:16.920 --> 0:47:19.279 to their you know, what they're providing in terms of 0:47:19.400 --> 0:47:22.680 the designs and so forth. They're not like a company 0:47:22.760 --> 0:47:25.560 that produces chips, like let's say Intel and you know, 0:47:25.920 --> 0:47:29.520 turns out microprocessors and sells them to PC manufacturers. So 0:47:29.560 --> 0:47:31.640 they're a little bit of a different animal. And the 0:47:31.719 --> 0:47:34.680 fact that they work with so many other chip companies 0:47:35.080 --> 0:47:38.000 in terms of providing these this tech, you know, this 0:47:38.160 --> 0:47:42.120 intellectual property that that could be somewhat of you know, 0:47:42.280 --> 0:47:44.920 a monopoly right that in video would have over this 0:47:45.160 --> 0:47:47.719 company that's so different. It's not just you know, like 0:47:47.800 --> 0:47:50.319 a company that produces more gaming chips. So I think 0:47:50.360 --> 0:47:52.640 that that is kind of interesting, Carol, Like you said 0:47:52.760 --> 0:47:55.719 that we're getting this pushback and could this be an 0:47:55.760 --> 0:47:59.080 anti trust issue that then derails the deal? Um, because 0:47:59.120 --> 0:48:00.920 everybody's saying, wow, us to be a sweet deal for 0:48:01.000 --> 0:48:04.759 end Video, but not so good for everybody else. So 0:48:05.120 --> 0:48:07.920 do you think it happens? Well, I'm hopeful. I mean, 0:48:08.200 --> 0:48:09.920 you know, that's why I'm you mentioned Tim in the 0:48:10.000 --> 0:48:12.440 beginning about what we want to hear from management. I 0:48:12.480 --> 0:48:14.399 think that's got to be on center stage, right. How's 0:48:14.440 --> 0:48:16.880 that deal coming along? What what's the issues with the 0:48:16.960 --> 0:48:19.799 d o J or you know, antitrust issues and if 0:48:19.880 --> 0:48:22.759 that you know, will consummate. So I'm I'm hopeful and 0:48:22.840 --> 0:48:24.920 optimistic they can execute the deal. I think it'd be 0:48:25.000 --> 0:48:28.000 great for them, as I mentioned an ai um and 0:48:28.080 --> 0:48:30.520 hopefully they can set up some firewalls where they're not 0:48:30.760 --> 0:48:34.759 interfering with other companies that are using um ARM in 0:48:34.960 --> 0:48:37.640 terms of some of these designs, you know, and then 0:48:37.680 --> 0:48:39.920 creating some sort of competitive advantage. I think that's what 0:48:39.960 --> 0:48:42.640 everybody's really worried about. Hey, just twenty seconds here the 0:48:42.840 --> 0:48:48.239 Tech pullback rally. Any thoughts on it? Well, it's actually, Carroll, 0:48:48.239 --> 0:48:50.600 because Tech made such a huge run. It did so well. 0:48:50.800 --> 0:48:52.399 I mean I was just looking at the charts because 0:48:52.440 --> 0:48:54.480 we've been talking about chips for such a long time. 0:48:54.719 --> 0:48:57.520 Do you realize that the socks is up two percent 0:48:57.600 --> 0:49:00.920 from the low that it hit in March? I mean, unbelievable, right, 0:49:01.320 --> 0:49:02.960 So I mean, I think it's only naturally we're going 0:49:03.000 --> 0:49:04.480 to get a bit of a pullback. But you know 0:49:04.520 --> 0:49:06.399 you're talking to the wrong guy, Carol and Jim, because 0:49:06.400 --> 0:49:09.279 you know I'm always bullish on technology. Right Listen, As 0:49:09.400 --> 0:49:11.960 Kathy would said, to us yesterday from Mark Right. Things 0:49:12.040 --> 0:49:14.120 don't go up in a straight line. Dan Morgan, thank 0:49:14.160 --> 0:49:17.280 you so much, senior portfolio manager over at s Nova's Trust, 0:49:17.840 --> 0:49:22.879 joining us once again on the phone from Atlanta. Thanks 0:49:22.920 --> 0:49:26.759 for listening to Bloomberg Business Week. Download the podcast on iTunes, SoundCloud, 0:49:26.920 --> 0:49:29.040 or Bloomberg dot com, and you can also listen to 0:49:29.080 --> 0:49:31.680 our radio show at two pm Eastern on Bloomberg Radio 0:49:31.800 --> 0:49:34.520 or watch us on YouTube. Search to Bloomberg Global News.