Speaker 1: This is Bloomberg Business Week. I'm Carol Masser and I'm
Speaker 1: Bloomberg Quick Takes Tim Stanibek. We're here every day bringing
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Speaker 1: YouTube search Bloomberg Global News, Jay and Jay's Vaccine. We
Speaker 1: knew it was coming. It's another tool in the toolbox
Speaker 1: to fighting COVID nineteen. Yeah, it's those tools that we
Speaker 1: need to get us on the other side of this pandemic.
Speaker 1: And joining us now is Dr David Levy, Chief Executive
Speaker 1: Officer of Health. He joins us on the phone right
Speaker 1: here from New York. Eh is a healthcare provider, uh In.
Speaker 1: Dr Levy's a public health expert in veteran epidemiologist. Hey,
Speaker 1: Dr Leviy, thanks so much for joining us today. Um,
Speaker 1: how are you doing. I'm doing great and thanks for
Speaker 1: having me back. So what do you make of the
Speaker 1: Jane Jane us. It is great news. It's another vaccine,
Speaker 1: another tool, and it's going to be widely available in
Speaker 1: the next couple of months. And I think it's fantastic.
Speaker 1: What's highly effective and uh, we're all looking forward to us.
Speaker 1: So you still considered highly effective even though it's not
Speaker 1: as effective as the MR and A vaccines from moderna
Speaker 1: Advisor by on Tech, it is absolutely as effective as
Speaker 1: in preventing hospitalizations and deaths. And that's what this epidemic
Speaker 1: is about. Reducing That's what the treatment for the epidemics
Speaker 1: should be, namely reducing lethality. And it's as good as
Speaker 1: any of the other two. Well, and so Tim and
Speaker 1: I Dr Leev if I can interrupt for a second,
Speaker 1: Like Tim and I were joking that we don't go
Speaker 1: to Dwyane red and I get the flu vaccine and
Speaker 1: I'm like, what's the efficacy? I mean, what is considered
Speaker 1: the range of a really effective vaccine. Well, it all
Speaker 1: depends what you're immunizing for and so you have to
Speaker 1: start there. And one of the issues, uh, with this
Speaker 1: particular virus is that it is highly or much more lethal,
Speaker 1: and people over sixty five and those people with comorbidities
Speaker 1: that relate to lifestyle like diabetes, hypertension and the like.
Speaker 1: And if you can, in fact have a vaccine that's
Speaker 1: targeted specifically at reducing hospitalization and death in those people,
Speaker 1: you've essentially dropped the lethality the epidemic potentially even lower
Speaker 1: than the lethality of a flu epidemic. So this is
Speaker 1: a really good piece of news. Quite candidly, Hey, how's
Speaker 1: the messaging been in general about the vaccine, because I've
Speaker 1: been having this debate with some friends recently because we've
Speaker 1: heard so much If you get the vaccine, don't change
Speaker 1: your behavior, keep wearing a mask, And I wonder what
Speaker 1: that does to the way that people think about how
Speaker 1: we're going to get through this pandemic, And just what
Speaker 1: is the point of getting the vaccine if you can't
Speaker 1: change your behavior. Well, you know, that's a great question.
Speaker 1: The or is you want to continue your social distancing,
Speaker 1: your mask wearing behavior as long as the virus is
Speaker 1: endemic in the community. And that's what herd immunity is about.
Speaker 1: It's not about eliminating the disease completely. It's about reducing
Speaker 1: the natural reducing of coming to a level of immunity
Speaker 1: whereby there's no natural community spread. And as we get
Speaker 1: to a point where there's no natural community spread and
Speaker 1: we can now basically address and contain any focal outbreak,
Speaker 1: we can gradually loosen social distancing, mask wearing and the like.
Speaker 1: And so it really depends, frankly, at what level the
Speaker 1: community is with respect to immunity and how soon they
Speaker 1: get to a situation where you're just going to have
Speaker 1: the sporadic and fairly well contained, smaller outbreaks. By the way,
Speaker 1: that's exactly the same thing with any other kind of
Speaker 1: infectious disease outbreak like the flu or others. All Right,
Speaker 1: and that's that's good to know. I'm curious what you
Speaker 1: are seeing within your employee base, in within the health
Speaker 1: care system about health care employees. Um, is everybody increasingly
Speaker 1: getting more comfortable though about taking the vaccine and getting
Speaker 1: the vaccine? Well, um, look, you hear the same reticence
Speaker 1: that you have that we've we've all heard about getting
Speaker 1: the vaccine, in particular certain segments of the population that
Speaker 1: have more mistrust for the vaccine. And I get it,
Speaker 1: and I understand it, But but I have kind of
Speaker 1: like a half cup full point of view on that,
Speaker 1: which is, you know, this is a brand new technology,
Speaker 1: particularly two m RNA vaccines, completely new, completely new science,
Speaker 1: and you know, at worst you have seventy of the
Speaker 1: people who say that they're going to get it right
Speaker 1: out of the gate. I mean, that's an early adoption
Speaker 1: factor of se which any CEO producing any product would
Speaker 1: be thrilled to have. You know, Unfortunately, when we started
Speaker 1: down this path, you know, we forgot about the marketing
Speaker 1: and distribution that we probably should have been do last
Speaker 1: summer to get people up to a level of comfort.
Speaker 1: Now that being said, you know, as you probably are
Speaker 1: education right, not even just marketing, but education. Well, I
Speaker 1: have to tell you it's not even going to be
Speaker 1: education in my view in the future. You're you're now
Speaker 1: seeing around the world people talking about vaccine passes and
Speaker 1: the ability to travel from country to country. Uh, the
Speaker 1: EU was talking about this tomorrow. I think Israel and
Speaker 1: Greece have already gone into a pact. We've seen airline
Speaker 1: the airline industry really talk about this. The truth is,
Speaker 1: as we learn to live with COVID, we won't eliminate
Speaker 1: COVID will be living with COVID like we live with influenza.
Speaker 1: People are going to need to have proof that they're immunized.
Speaker 1: And I will tell you if those people want to
Speaker 1: get who are reticent to be immunized, uh, stay that way.
Speaker 1: They won't be able to get back to a normal life.
Speaker 1: They won't be able to get into a large venue
Speaker 1: like a Madison Square gardener, maybe a Broadway show, or
Speaker 1: maybe a restaurant. They won't be able to travel to
Speaker 1: a country where their parents may live unless they can
Speaker 1: prove that they're immune. And that's what's going to be
Speaker 1: driving people to almost full uh population. Immunization is really
Speaker 1: to get your life back to normal, you're gonna be
Speaker 1: You're gonna be able to have to show proof that
Speaker 1: in fact, you have indeed been immunized by one of
Speaker 1: the vaccines that have been approved. You know, it's a point,
Speaker 1: a practical reality, A point that that that our colleague
Speaker 1: Drew Armstrong, SENIORIT for Healthcare, made on Quick Take this morning,
Speaker 1: was that early on in the vaccination process, we saw
Speaker 1: people who were reticent about getting vaccines or hesitant to
Speaker 1: get a vaccine once they saw people in their orbits
Speaker 1: start to get them that went away, they started to
Speaker 1: get them. So this is happening in real time. One
Speaker 1: thing we want to ask you, Dr Levy, is something
Speaker 1: that came in to us from one of our our
Speaker 1: Twitter followers and said, messenger, RNA changes your DNA. So
Speaker 1: in his book, the JJ and vaccine, a regular vaccine
Speaker 1: is better than uh, either the Maderna or Fiser vaccine.
Speaker 1: What do you say to that. I have never heard that.
Speaker 1: I have no idea what he's talking about or to
Speaker 1: what he's referencing. mRNA is basically just the code against
Speaker 1: which the cells are, you know, producing the antibodies. That
Speaker 1: doesn't do fundamentally anything to a human being, to your
Speaker 1: own DNA, I just I just don't know of any
Speaker 1: evidence or anything to substantiate that comment. But I think
Speaker 1: it does speak to the reticence that people have when
Speaker 1: it comes to you know, quote unquote new technology. Right,
Speaker 1: Like you were talking about this idea that having a
Speaker 1: new product that has seventy percent adoption is really good,
Speaker 1: but there are still people who are like, hey, wait
Speaker 1: a second, I want to see something different. I completely
Speaker 1: agree with you. I mean, this is the whole issue
Speaker 1: because it's kind of a scary notion of brand new technology.
Speaker 1: We're creating m RNA, we're putting in the body. It
Speaker 1: sounds like DNA. And that's why uh rod uh. You know,
Speaker 1: campaign ought to be introduced, you know, educates the public
Speaker 1: and you know, fairly clear and easy to understand way
Speaker 1: about what exactly it is that this new science has discovered.
Speaker 1: And by the way, I think that this is just
Speaker 1: the begin thing. I think many new vaccines in the
Speaker 1: future are going to be adopting this new technology. It's safe,
Speaker 1: and it's effective, and it's and it's a great advance
Speaker 1: for humankind. And uh, it's a kudos to all those
Speaker 1: people who and all those biologists who who have invented it.
Speaker 1: I mean, it's just a wonderful thing. It's a wonderful
Speaker 1: advance for science and for humanity. So I think it's
Speaker 1: just a bad education quite translate and to be fair
Speaker 1: new but also it's a it's not something that they've
Speaker 1: just developed overnight. They've been working on it for years.
Speaker 1: Well yeah, for years for other reasons and for other reasons,
Speaker 1: but you know, the funding and the acceleration that that
Speaker 1: coincide together, you know, with the cod with the coronavirus
Speaker 1: pandemic really has pushed this thing over the goal line.
Speaker 1: So you know, there are a lot of great benefits
Speaker 1: from this. All right, So when you look forward, what
Speaker 1: do you see as kind of our biggest obstacles still
Speaker 1: in getting us to a post COVID world. You know,
Speaker 1: I think first of all is continuing the immunization campaign
Speaker 1: and making sure this is a eye chain is great,
Speaker 1: and I think that we're throwing the kitchen sink at that,
Speaker 1: and people just have to keep on moving at that. Uh.
Speaker 1: You know, the idea of variance is always a wild
Speaker 1: card out there, but the surest prevention for new variance
Speaker 1: is the reduction of replication and new human beings who
Speaker 1: have been infected. And the best way still at that
Speaker 1: is to maximize immunization. So you know, keep on moving
Speaker 1: very very hard at that. In the meantime, all of
Speaker 1: the other things need to be really stringent to social distancing,
Speaker 1: the masking and the like, And ultimately, I think as
Speaker 1: we get back to a more normal situation, we'll be
Speaker 1: able to start relaxing some of those constraints. But really
Speaker 1: right now is to move hard and fast at immunization
Speaker 1: in this country as much as possible. Hey, Dr Leady,
Speaker 1: can you talk a little bit about the alarming surge
Speaker 1: in mental health that we've seen anxiety, depression, burnout, and stress.
Speaker 1: I mean, we're seeing it everywhere. Yeah, so this is
Speaker 1: a big problem. We see it in our patients, we
Speaker 1: see it in many of the employees of of of
Speaker 1: all of our clients. And you know, this has been
Speaker 1: going on now for a year, and you know, we've
Speaker 1: now been talking about how to bring people safely back
Speaker 1: to work, and we find that it's people have gotten
Speaker 1: into this grind of this is the way life is
Speaker 1: going to be and always going to be, and it's
Speaker 1: going to be difficult to get people into uh kind
Speaker 1: of a new way of thinking of getting them out
Speaker 1: of that rut and getting them back into a more
Speaker 1: normal and socially engaged life. I think that's going to
Speaker 1: be one of the biggest challenges for over the next
Speaker 1: six months. It's not that the people who want to
Speaker 1: just don't want to jump out and come back to work.
Speaker 1: They're sure there's lots of people like me who want
Speaker 1: to do that, but there are a lot of people
Speaker 1: who have been really stuck in this rut with an
Speaker 1: enormous amount of depression. Uh, suicidal ideation, as you know,
Speaker 1: and it's a very big problem. We're beefing up for all.
Speaker 1: Employers are beefing up support around mental health. We're looking
Speaker 1: closely at reaching reaching out throughhealth and the like to
Speaker 1: help support employees. But I think that that's going to
Speaker 1: be one of the biggest barriers. Yeah, but I have
Speaker 1: to say once we get through it, once we start
Speaker 1: to have to bring back to normal, I think normal
Speaker 1: can't wait. Dr David Levy, thank you so much, CEO
Speaker 1: at e H E Health. This is Bloomberg Business Week
Speaker 1: with Carol Messer and Bloomberg Quick Takes. Tim Stinovic from
Speaker 1: Bloomberg Radio. Bloomberg Business We had a great cover story
Speaker 1: back in July. It was about the COVID vaccine front runner.
Speaker 1: At the time, it was the work Astra Zeneca and
Speaker 1: the University of Oxford was doing, Tim, And since then
Speaker 1: we know that the path forward for Astra's vaccine it
Speaker 1: really hasn't been a straight one. Yeah. We've been hearing
Speaker 1: a lot about Johnson and Johnson, Moderna and of course
Speaker 1: Fiser in BioNTech, but Astra Zeneca not so much. Right,
Speaker 1: We've got an update on them in Bloomberg Business Week
Speaker 1: taking a look at some of the new data that
Speaker 1: the company hopes can kind of get its vaccine back
Speaker 1: on track. Reporting for the magazine, Bloomberg News healthcare reporter
Speaker 1: James Patton on the phone, Peyton on the phone in London,
Speaker 1: along with Bloomberg Business Week editor Jiell Webber on the
Speaker 1: access line in Brooklyn. James Peyton story, feel like it's
Speaker 1: such an important one to kind of understand what's been
Speaker 1: going on at Astra. Yeah, that's right. And you know,
Speaker 1: obviously here in America, Astra hasn't figured into the conversation
Speaker 1: quite as much, but it is one that's really important
Speaker 1: in Europe and elsewhere in the world, and it we
Speaker 1: you know, it still has potential and we're about to
Speaker 1: see some results from a US trial that may clear
Speaker 1: up some of the confusion. That it's a big may
Speaker 1: because the confusion has led to a backlash in Europe.
Speaker 1: And that's sort of where the story uh that James
Speaker 1: and others uh rope for this issue of the magazine began. So, James,
Speaker 1: what did you guys learn what's been the continent's response
Speaker 1: to Astra's rollout. Yeah, we'll get to be with you.
Speaker 1: I mean We're hearing reports out of Europe in places
Speaker 1: like Italy and Germany and elsewhere of health workers and others,
Speaker 1: UM pushing back on this vaccine basically perceiving it to
Speaker 1: be less effective in some way or you know, cause
Speaker 1: for concern when it comes to possible side effects. And
Speaker 1: there are um, you know, local anecdotes I guess you
Speaker 1: could call them circulating of health workers experiencing some bad
Speaker 1: reactions to the vaccine. UM. Now you know, the company
Speaker 1: says these are all consistent with what has been observed
Speaker 1: in uh some participants in clinical trials. UM. But that
Speaker 1: clearly hasn't held matters UM for you know, Astroseneca and
Speaker 1: Oxford its partner, And there's been a lack of data
Speaker 1: on the effectiveness in older adults. UM. You know, the
Speaker 1: vaccine was given the green light for all adults by
Speaker 1: the European regulator, the equivalent to the FDA out here. UM,
Speaker 1: but at least ten EU countries haven't cleared it for
Speaker 1: people over sixty five due to that insufficient evidence. So uh,
Speaker 1: you know in some places, I think last we checked
Speaker 1: in Germany, UM, only something like of the roughly one
Speaker 1: point five million astroid doses that have been delivered to
Speaker 1: the country, has actually been injected, uh into arms. And
Speaker 1: it's early days, but obviously that doesn't that doesn't bode well,
Speaker 1: so the company is trying to turn that around. Governments
Speaker 1: also realized they'll need to rely on this vaccine to
Speaker 1: immunize a large part of the population. So what do
Speaker 1: we know about how effective it is, James, Because as
Speaker 1: you and your colleagues right, since Astro and Oxford announced
Speaker 1: their initial results last year, data on the vaccines effectiveness
Speaker 1: in preventing symptophatic symptomatic infection have ranged from sixty and
Speaker 1: that's because of dosing amounts and regiments in the trial,
Speaker 1: different ones exactly, And that is one of the key
Speaker 1: issues that revolves around affectiveness. And you know you mentioned
Speaker 1: the other vaccines, Visor's, Maderna's. Um. You know, all the
Speaker 1: companies say over and over again, this isn't a race.
Speaker 1: You know, it's not a race. But in this case, um,
Speaker 1: you know, it turned out to be a race in
Speaker 1: many ways. Uh. You know, following Visor and Maderna was
Speaker 1: a difficult position to be in those you know, those
Speaker 1: companies have attracted most attention. Um. You know you probably
Speaker 1: recall when they reported their clinical trial results that the
Speaker 1: numbers were stunning, and you know, even if it wasn't
Speaker 1: that simple, they appeared to be totally clear and unambiguous.
Speaker 1: I mean both attained efficacy levels around so that was
Speaker 1: one number to digest. It was hugely positive. And now AstraZeneca,
Speaker 1: you know, an Oxford, it's a different story. When they
Speaker 1: released their results, as you say, there was a wide
Speaker 1: range of numbers finally an average of it was very confusing,
Speaker 1: not just for journalists but for scientists. You ever, was
Speaker 1: scrambling to make sense of just how effective this vaccine is.
Speaker 1: And you know, the takeaway to disease experts is that
Speaker 1: all these front runners, including astra Zeneca, look like they
Speaker 1: provide comparable and almost complete protection against severe illness and death.
Speaker 1: So those are the most important factors to consider. Um
Speaker 1: So when it comes to those critical outcomes that will
Speaker 1: end the pandemic, this vaccine is still expected to play
Speaker 1: a crucial role. But unfortunately there are all these questions
Speaker 1: swirling around Astersenic and Oxford that have hurt the way
Speaker 1: the vaccine is perceived. That was the point that I
Speaker 1: just wanted to sort of underscore. There is like, just
Speaker 1: because the results have been confusing, There still is a
Speaker 1: I guess you could think of it. It's like a
Speaker 1: portfolio of vaccine approach here, which is that as long
Speaker 1: as it keeps people from having severe illnesses overwhelming hospitals
Speaker 1: and and you know, hopefully dying like it, it may
Speaker 1: in the astrosenic a vaccine like still may prove a
Speaker 1: really important role, especially on a global stage. UM. So
Speaker 1: when you think about that and then you know these
Speaker 1: these forthcoming US results, what do what do we expect? Like,
Speaker 1: is there any sense that you know there could be
Speaker 1: just more confusion? More at a equals more confusion definitely.
Speaker 1: I mean the US you know you mentioned the you know,
Speaker 1: the U S data. So this is going to be
Speaker 1: from trials of tens of thousands of participants, UM, and
Speaker 1: that's going to be UM coming out in the coming weeks.
Speaker 1: I think that's going to be closely scrutinized and pivotal
Speaker 1: for the two UK partners. And I think about a
Speaker 1: quarter of the participants in that study are older than
Speaker 1: sixty five, so we should get a good indication of
Speaker 1: the protection it offers older adults. UM. So you know,
Speaker 1: astra Zeneca is keen to demonstrates its potency and older people.
Speaker 1: And I think an FDA decision UM we've reported UH
Speaker 1: is expected as early as April. So this is going
Speaker 1: to be a key stretch for UM, for ASTRA and Oxford.
Speaker 1: And as you say, I think you alluded to it.
Speaker 1: I think it's overlooked sometimes how much the world is
Speaker 1: counting on this back scene. I mean it's huge, assuming
Speaker 1: it's it's it's rolled out and there aren't for the delays. Yeah, yeah,
Speaker 1: and listen all the doctors that we talked to say,
Speaker 1: you're going to need multiple tools in that toolkit, that
Speaker 1: COVID toolkit in order to get controlled. Jil Weber, thank
Speaker 1: you so much, Editor Bloomberg Business Week. UH, and of
Speaker 1: course James Peyton healthcare reporter. Check out his story in
Speaker 1: Bloomberg Business Week. This is Bloomberg Business Week with Carol
Speaker 1: Masser and Bloomberg Quick Takes. Tim Stinovich from Bloomberg Radio. Well,
Speaker 1: that's caught our attention. You were talking about this one
Speaker 1: of our planning calls today, Tim, about how the capital
Speaker 1: is being turned or being turned into a fortress, is
Speaker 1: really kind of bringing on the push to make it
Speaker 1: a state. And look, DC statehood has been something that
Speaker 1: liberals and Democrats have wanted for a very long time.
Speaker 1: The big question is it ever going to happen? Yeah,
Speaker 1: So let's put that question to Amanda Colson Hurley. She's
Speaker 1: politics editor Bloomberg Business Week. She's with us from the
Speaker 1: nation's capital. Amanda, good to have you here with Tim
Speaker 1: and myself. So tell us a little bit about your well.
Speaker 1: First of all, give us a visual. And I know
Speaker 1: we're on radio, we're on YouTube for those who are
Speaker 1: also watching there. But give us the visual of what
Speaker 1: DC is like right now? Sure? Um. So I actually
Speaker 1: went down to the area around the Capitol on Sunday
Speaker 1: and walked all around. Um, the capital as well as
Speaker 1: a number of the well known landmarks nearby, like the U. S.
Speaker 1: Supreme Courts, the Library of Congress, Um, are all behind
Speaker 1: a big sense seven fts hall fence tops in most
Speaker 1: parts with these coils of razor wire. Um. There are
Speaker 1: troops patrolling, um, you know, stationed every I would say,
Speaker 1: every d two hundred feet or so, little clump clumps
Speaker 1: of of troops. Um. And so really there's this kind
Speaker 1: of compound now on Capitol Old it's about three miles
Speaker 1: in circumference. So, um, it's a very uh dramatic difference
Speaker 1: from that area if anyone has you know, been there
Speaker 1: before as a tourist or as a local. Uh, you know,
Speaker 1: with used to be quite open obviously a great attraction
Speaker 1: for for visitors. Uh you know, very very famous views
Speaker 1: of the capital dome. Um. So, uh it's all looking
Speaker 1: looking pretty different right now. If you're watching us on
Speaker 1: YouTube right now, you see some of these images that
Speaker 1: that Amanda took, that with that she took and she
Speaker 1: sent to us. Um, Amanda, I gotta ask what the
Speaker 1: connection is here with with DC statehood? Right, the relationship
Speaker 1: between the federal government and the district and and law enforcement.
Speaker 1: Well right as as you said, Uh, now, the push
Speaker 1: for statehood in DC is not something that's frown up overnight.
Speaker 1: I mean it's been years decade that uh you know,
Speaker 1: some activists have been pushing for DC to become a state. Um.
Speaker 1: But I think, uh, a couple of things happened. First
Speaker 1: of all, the Democrats won the White House and both
Speaker 1: houses of Congress, although they controlled the Senate very narrowly,
Speaker 1: and this gave statehood advocates really the best kind of
Speaker 1: window that they've had in a long time, uh, probably ever. Um, more.
Speaker 1: You know, a prominent Democrats have said they support statehood
Speaker 1: in recent years. President Biden has said in the past
Speaker 1: that d C should be a state. Uh so there
Speaker 1: is some kind of momentum. And I think meanwhile, the
Speaker 1: events of January six, uh, you know, left a lot
Speaker 1: of people in DC, both the kind of elected local
Speaker 1: leaders there and just regular residents, uh, you know, feeling
Speaker 1: more ad ODT with the federal government. And this sense
Speaker 1: kind of symbolizes that, right. Um, you know, it was imposed. Uh,
Speaker 1: this temporary senses there now was imposed uh immediately, Uh,
Speaker 1: and people kind of understand that it needs to be there.
Speaker 1: I think it reassured people, especially in the initial days
Speaker 1: after the riot. But now there's this proposal to put
Speaker 1: up a permanent sense and uh, you know, as as
Speaker 1: one person I interviewed said to me, we already don't
Speaker 1: have any representation in Congress, and now they're kind of
Speaker 1: walling it off for us from from us. In addition
Speaker 1: to that, what's the political will to make a change.
Speaker 1: And I'm just curious Republicans versus Democrats on this. Yeah. Well,
Speaker 1: I mean there's a pretty clear split there in that uh,
Speaker 1: DC statehood is much more favored you know, by Democrats,
Speaker 1: by liberals. Uh. And part of the reason for that
Speaker 1: is that, uh, you know, the district, which has seven
Speaker 1: thousand people now, um, is you know, one of one
Speaker 1: of the most solidly democratic voting places in the country. Um.
Speaker 1: People don't vote for you know, they don't have a
Speaker 1: voting representative in the House or or senators who can vote.
Speaker 1: But but they do vote for president. And I think
Speaker 1: they voted for Joe Biden more strongly than anywhere else
Speaker 1: in the country. I mean, there are there are other
Speaker 1: reasons too, and that uh you know, there are objections
Speaker 1: on the grounds that it's it would not be constitutional,
Speaker 1: uh you know, or um, you know, the DC was
Speaker 1: really intended to be a federal district, so the the
Speaker 1: the objections are not entirely partisan, but that is definitely
Speaker 1: part of it. So Amanda, very briefly, Um, look, it
Speaker 1: makes sense that Democrats want d C to be a
Speaker 1: state for politically, it makes sense. But is there a
Speaker 1: chance that it happens in the near future, any chance
Speaker 1: at all? And we only have about twenty seconds. Oh
Speaker 1: we don't we Actually we can have more time with you.
Speaker 1: I'm sorry, we get more time with you, Amanda. We say,
Speaker 1: Amanda is On, we were just going to go well,
Speaker 1: I mean, I think the answer is still pretty six thinct,
Speaker 1: which is they have their best window they've ever had
Speaker 1: right now, but it's still pretty slim. Um. I think, uh,
Speaker 1: they're not going to get sixty votes in the Senate.
Speaker 1: Uh to pass in the Senate the past statehood, they
Speaker 1: would have to sort of either eliminate or kind of
Speaker 1: work around the filibuster. I think there are you know,
Speaker 1: ways they could make a rule change where they would
Speaker 1: say statehood votes don't need you know, sixty votes. But
Speaker 1: even that seems like it would be it would require
Speaker 1: an expenditure of political capital that that perhaps you know,
Speaker 1: not everyone would be enthusiastic about, even you know, among
Speaker 1: the Democrats. So it makes me wonder what our forefathers
Speaker 1: would think. Um, but I do wonder, Amanda Hurley, what
Speaker 1: kind of a state would it be if it was
Speaker 1: on its own? Is there a state across the US
Speaker 1: that it kind of is similar to? Uh? Well, let's
Speaker 1: see in population terms, it's the most similar, I believe
Speaker 1: to Vermont and Wyoming with seven thousand people, but it
Speaker 1: would be it would have the highest share of of
Speaker 1: of black residents. Of of any states. Uh, as I
Speaker 1: said before, it would be very solidly democratic voting at
Speaker 1: least you know, for the time being, and it would
Speaker 1: still it would still have this kind of federal uh
Speaker 1: district at the very heart of it, where you know,
Speaker 1: all of the government buildings and the National Mall and
Speaker 1: monuments would be. So it's not like that's going to
Speaker 1: go away. That would just shrink and d C would
Speaker 1: otherwise kind of have the powers of the state. But
Speaker 1: I think you know that that means that whatever happens,
Speaker 1: that tension between the district and the federal government is
Speaker 1: never going to go away entirely because of that. What
Speaker 1: about people in Washington, d C. I mean, do do
Speaker 1: they want this to happen? How do they feel about this? Yeah?
Speaker 1: I think the last time there was a polar survey
Speaker 1: den uh support at least for statehood referendum was at
Speaker 1: six percent. So um, you know, and a lot of
Speaker 1: the local political leaders are pretty strong statehood proponents proponents
Speaker 1: excuse me, um. The non voting congresswoman for the district,
Speaker 1: Eleanor Holmes Norton, has introduced a statehood bill into the House. Uh.
Speaker 1: You know, year after year after year. Uh. So and
Speaker 1: certainly a number, if not all, of the members of
Speaker 1: the district the DC Council as well support statehood. Um,
Speaker 1: it's a pretty common sentiment. Even the DC license plate
Speaker 1: if you've ever seen it, the standard motto and the
Speaker 1: license plate is end taxation without representation. So people do
Speaker 1: feel pretty strongly about Yeah, that's pretty clear. What about
Speaker 1: people like beyond DC, like the rest of the country
Speaker 1: are people did they do they have any strong feelings
Speaker 1: about it? Yeah? I think in the rest of the country,
Speaker 1: I think a lot of people sort of aren't don't
Speaker 1: think a lot you know, as understandably about the issue
Speaker 1: and what it means to district residents. I think the
Speaker 1: last time there was a Gallop poll a couple of
Speaker 1: years ago, and support for d C statehood was not
Speaker 1: very high. It was I think around thirty percent or
Speaker 1: even lower. And Um, a lot of people feel that maybe,
Speaker 1: you know, it shouldn't be a state, that maybe because
Speaker 1: they think it's you know, very small, or or that
Speaker 1: it's uh you know, maybe they think it's for partisan
Speaker 1: reasons only, that that people would would want it to
Speaker 1: become a state. Uh So, Yeah, it's not an issue
Speaker 1: that I would say has attracted really broad support outside
Speaker 1: of the DC area. Are there are there certain members
Speaker 1: of Congress right now, um, who are sort of surprising
Speaker 1: on the issue, like is this Are there any Republicans
Speaker 1: who support this or do they know this is just
Speaker 1: so dangerous politically? That's a good question. I'm actually not
Speaker 1: aware if any Republicans have come out and said, you
Speaker 1: know what, DC residents should be able to, you know,
Speaker 1: have representation in Congress to um and look there there there.
Speaker 1: It is dangerous politically for them because it would the
Speaker 1: margins right now are razor tight. And if DC were
Speaker 1: to become a state, think about who that enfranchises, right,
Speaker 1: a group of voters who largely voted as you mentioned
Speaker 1: Amanda for vice for President Biden now uh. And and
Speaker 1: also it would give them senators who would likely be
Speaker 1: Democrats and really change the balance of power. That's right,
Speaker 1: I mean the DC senators if it had them, would
Speaker 1: almost certainly be Democrats. You know, two Democrats, which would
Speaker 1: you know, in the current situation easily you know, tip
Speaker 1: control of the Senate, you know from from split right,
Speaker 1: you know, easily tip it over to the Democrats and
Speaker 1: giving them a kind of margin. So so yeah, I
Speaker 1: do think that it's kind of a paradox of the
Speaker 1: current situation for statehod advocates. But while having this democratic
Speaker 1: trifecta in Washington gives them this opportunity that they're excited about.
Speaker 1: You know. Having the fifty split also probably illustrates for
Speaker 1: for Republicans and for other opponents, just just how much
Speaker 1: of a difference it would make, uh if if the
Speaker 1: district were to become the state, and you know how
Speaker 1: that would change the political calculus and does it open
Speaker 1: the door then for Puerto Rico or something. I don't know,
Speaker 1: like who knows, um, but it's very provocative. Uh, and
Speaker 1: those visuals. I highly recommend everybody to go to Bloomberg
Speaker 1: dot com and see a little bit of that more. Amanda,
Speaker 1: Thank you, Amanda Coolson Hurley Politics that are at Bloomberg
Speaker 1: Business Week from the nation's capital. This is Bloomberg Business
Speaker 1: Week with Carol Messer and Bloomberg Quick Takes Tim Stinovic
Speaker 1: from Bloomberg Radio. We had a big story, a big
Speaker 1: business story over the past week, and this is about
Speaker 1: married International naming uh Tony Capuano as chief executive officer,
Speaker 1: tapping someone who is well known to the company to
Speaker 1: really lead this hotel giant's recovery after the COVID nineteen pandemic.
Speaker 1: So we are delighted to welcome Tony to Bloomberg Business
Speaker 1: WEEKI Jones is on the phone in Pathesda, Maryland. Tony,
Speaker 1: great to have you here with Tim and myself. How
Speaker 1: are you? And I have to say, Um, many of
Speaker 1: us here at Bloomberg we've been thinking about you and
Speaker 1: the Marriott family after the loss of Arnie Sarns and
Speaker 1: he was always always so generous with his time to
Speaker 1: so many of us here at Bloomberg, and especially over
Speaker 1: the last year when we know personally professionally he was
Speaker 1: dealing with so much. Well, thank you, Carol, and thanks
Speaker 1: for having me back. It's obviously been a tough week
Speaker 1: for all of us. I talked to our team around
Speaker 1: the world over the last few days, and the two
Speaker 1: words that I really thought about were reflection and resolve.
Speaker 1: All of us are reflecting on the this this terrible loss,
Speaker 1: the loss for Arnie's family, the loss for the extended
Speaker 1: Marriott family, and the loss for the business community more broadly,
Speaker 1: as as you suggested, but I think there is a
Speaker 1: real resolve here. Um. This is a company that is
Speaker 1: approaching its anniversary, and we've been through recessions and nine
Speaker 1: eleven and the Great Financial Crisis and the pandemic, and
Speaker 1: it's a company that has the resolve to continue to
Speaker 1: build and grow and create opportunities for our folks and
Speaker 1: really help the company realize it's promise. But it's been
Speaker 1: a difficult week, no, and you've really all been on
Speaker 1: our minds, UM. And you talk about family, and you
Speaker 1: think about the Marriott family, your franchise owners. You treat
Speaker 1: them like they are family members. Tell me how they
Speaker 1: are doing in this environment and what it looks like, uh,
Speaker 1: going forward this year and then beyond. Well, the pandemic
Speaker 1: is obviously a historic and terrible crisis from a whole
Speaker 1: host of perspectives. The travel industry has been hit particularly hard,
Speaker 1: and a lot of the weight of that that impact
Speaker 1: has fallen on the shoulders of our owners and franchises. UM.
Speaker 1: They are under tremendous financial pressure. UH. Some of the hotels.
Speaker 1: At the outset of the pandemic, we had hundreds of
Speaker 1: hotels clothes on a global basis, we were running twelve
Speaker 1: percent occupancy, and that created great distress for our owner community.
Speaker 1: As we've seen through the last number of months, we
Speaker 1: are seeing slow and steady recovery, particularly domestically in drive
Speaker 1: to destinations, interestingly China, which seems to have its arms
Speaker 1: relatively around the virus. We're seeing occupancy levels approaching pre pandemic,
Speaker 1: which is quite encouraging and maybe represents a bit of
Speaker 1: a roadmap for the rest of the world. But at
Speaker 1: the same time, we continue to see instances where there's
Speaker 1: a spike in infection rates and a given market, and
Speaker 1: it has a pretty stark chilling impact on the pace
Speaker 1: of demand growth. Tony, you ran the hotel, the you
Speaker 1: ran the company's hygiene initiative. What should customers expect if
Speaker 1: they haven't traveled to a Marriott property in a few
Speaker 1: years or since the pandemic started. How will that experience
Speaker 1: be different post pandemic? I think in a few ways.
Speaker 1: I think really starting during the booking process, when they
Speaker 1: go to Marriott dot com to to make their reservations.
Speaker 1: There are pretty thorough and transparent disclosures about any modifications
Speaker 1: we've made to the operations of a given hotel, whether
Speaker 1: there are outlets that are closed, that have limitations on
Speaker 1: capacity or modified hours. When they arrive, they will see
Speaker 1: every one of their fellow guests and every Marritt associated masks.
Speaker 1: They will see electrostatic cleaners disinfecting the public areas. They
Speaker 1: will have optionality around whether they want daily housekeeping, but
Speaker 1: they know that when they arrive in their room for
Speaker 1: the first time, that there is a hospital grade level
Speaker 1: of cleaning that's been done to that room before their arrival,
Speaker 1: and they will experience a lot of advances that we've
Speaker 1: made from a technology perspective to make it as touchless
Speaker 1: an environment as possible. We've made some pretty significant upgrades
Speaker 1: to the Bonvoy app and the ability to check in remotely,
Speaker 1: to order room service remotely. Uh, there's a chat function
Speaker 1: to talk to the hotel staff if there are service requests,
Speaker 1: and so I think those are the most significant changes.
Speaker 1: How much of it stays with us? Tony, Listen, you're
Speaker 1: someone who I know used to travel. I'm assuming a lot,
Speaker 1: and we can talk about how much traveling you've been doing.
Speaker 1: I used to travel a lot, haven't done much in
Speaker 1: twelve months. How much of what changes in the hotel industry,
Speaker 1: the hospitality industry really stays with us longer term? Like
Speaker 1: it sounds like some of the digitization in the apps
Speaker 1: like that to me, sounds like a great thing. Um,
Speaker 1: I'm hoping there's a day when I can walk into
Speaker 1: a hotel lobby and I don't have a mask on,
Speaker 1: and I don't have to be so worried, and I
Speaker 1: like housekeeping. I'm just gonna say so, I'm just curious
Speaker 1: how how much stays with us M Yeah, you know,
Speaker 1: all of these decisions are often informed by what we
Speaker 1: hear from our guests. But I think your intuition is right.
Speaker 1: When I look across all the changes we've had to
Speaker 1: make in response to the pandemic, I think the technological advances,
Speaker 1: the optionality of touchless experiences, I think those will continue
Speaker 1: post pandemic. Uh. The nice thing will be to your point,
Speaker 1: we all aspire to get to a place where no
Speaker 1: one has a mask, there are no plexiglass barriers, and
Speaker 1: then it will really be based upon guest preference. There
Speaker 1: are some guests that love to go to the front desk,
Speaker 1: engage with our associates, get local restaurant recommendations. And there
Speaker 1: are others that want to check in, get a mobile key,
Speaker 1: and go straight to their room. And I think we
Speaker 1: all look forward to the day where we can offer
Speaker 1: both of those options to our guests. Hey, Tony, we
Speaker 1: saw something really interesting happen at the beginning of the pandemic.
Speaker 1: When lockdown started back in March, Airbnb really struggled, and
Speaker 1: they struggled very quickly and laid off employees. And then
Speaker 1: a few months later the company really started to recover
Speaker 1: as as people wanted to spend a long time in
Speaker 1: homes away from their primary residences. I'm wondering how you
Speaker 1: think about Airbnb and how you're thinking about competition from
Speaker 1: Airbnb over the next few years. Well, Tim, we um,
Speaker 1: as you know, in two thousand nineteen, we launched Marryott
Speaker 1: Homes and Villas, uh not with an eye towards going
Speaker 1: head to head with Airbnb. I don't think we'll find
Speaker 1: ourselves in the business of traditional home sharing or couch
Speaker 1: surfing or any of those areas, um, but we've really
Speaker 1: focused on the upper end of the market and whole
Speaker 1: home rentals, and we think the value proposition that that
Speaker 1: we offer is really predicated on consumer confidence around safety,
Speaker 1: a service level that our customers expect, and a linkage
Speaker 1: to the Bonvoy loyalty program. And since that two thousand
Speaker 1: nineteen launch, where we had about two thousand homes. We've
Speaker 1: grown to over homes. We think, in for a few
Speaker 1: short months, will be on every continent. And the thing
Speaker 1: we like about that business we hear from our customers
Speaker 1: that for very specific trip types, they like the notion
Speaker 1: of whole home rentals, and by launching this platform, it
Speaker 1: allows us to keep them within the Marriott ecosphere. Yeah,
Speaker 1: that makes sense. Hey, you know, Tony, one thing I
Speaker 1: want to ask you. You guys have so many different
Speaker 1: brands under your umbrella. There's the Rich Carlton, there's St. Regis,
Speaker 1: there's the w There's Sheridan, there's Home and Village. I mean,
Speaker 1: there's just so many. Does everything stay with you going forward?
Speaker 1: Or do you kind of take this time to look
Speaker 1: at the business and say, maybe we do some consolidation
Speaker 1: of brands. I knew each brand kind of has its
Speaker 1: its market, but I do wonder how you look and
Speaker 1: maybe change the business tweak it going forward. Carol, We
Speaker 1: actually love the breadth of our brand portfolio, and I
Speaker 1: think we like it because of the choice that it offers,
Speaker 1: certainly the choice to our consumers, but also to our
Speaker 1: owners and franchisees. We find from a consumer perspective. Depending
Speaker 1: on trip type, they may choose one of the hotels
Speaker 1: in our portfolio in the economy tire. Then they may
Speaker 1: plan of family vacation and go to a luxury resort.
Speaker 1: And similarly, the vast majority of our owner community are
Speaker 1: multi unit owners and they would like to continue to
Speaker 1: grow their portfolios within the Marriott family. Having that breadth
Speaker 1: of choice gives them lots of options as they look
Speaker 1: to continue to invest in the Marriott flags. So Tim
Speaker 1: and I Tony cannot wait to get back on a
Speaker 1: plane for fun for work, I cannot wait. I've missed it.
Speaker 1: Have you been traveling much for traveling for our work?
Speaker 1: Are traveling at all? I have, although I think the
Speaker 1: last time I was in studio with you, you were
Speaker 1: shaking your head at a number I shared with you
Speaker 1: that I had been traveled two hundred and twenty five
Speaker 1: nights the prior year. I'm obviously at a small fraction
Speaker 1: of that today. And unfortunately, because of some of the
Speaker 1: borders that are closed, I'm not traveling internationally nearly as
Speaker 1: much as I would like. But I've been in New York,
Speaker 1: I've been in Los Angeles, I've been in Miami visiting
Speaker 1: our teams and our associates across the country, and Uh,
Speaker 1: I have my passport and my my back pocket, and
Speaker 1: I am ready as soon as some of the borders
Speaker 1: start to open. I'm jealous business travel. How long do
Speaker 1: you think before it really comes back to what we've seen,
Speaker 1: what we saw pre pandemic. Well, there are, as you know, Carol,
Speaker 1: there are lots of opinions out there about whether we've
Speaker 1: seen some sort of permanent change in the demand for
Speaker 1: business travel, and and time will tell which those opinions
Speaker 1: is accurate. As we talk to our customers around the world,
Speaker 1: we certainly think leisure will lead the recovery, but we
Speaker 1: are already seeing green shoots for business transient demand, and
Speaker 1: we think fundamentally that is a business that will come
Speaker 1: back strong. What we hear from our customers not dissimilar
Speaker 1: to you and Tim's comments. They miss being on the road,
Speaker 1: they miss visiting their their business partners, and maybe most importantly,
Speaker 1: they miss visiting their customers. And so we're we're quite
Speaker 1: optimistic about the long term UH demand for business travel.
Speaker 1: Very briefly, the only other thing I would say to
Speaker 1: you is sorry, go ahead. Oh, I was just gonna
Speaker 1: say the one thing that may shift a bit carol
Speaker 1: about business travel. As folks have gotten more and more
Speaker 1: comfortable conducting business over Zoom or Microsoft teams, they have
Speaker 1: started to learn that perhaps they can do a better
Speaker 1: job blending leisure in business travel. And so there will
Speaker 1: certainly be certain business purposes where they need to be
Speaker 1: in person, but they may also say to their family,
Speaker 1: let's go for three or four days of vacation and
Speaker 1: I'll carve out a day in the middle and conduct
Speaker 1: business via technology. All right, great stuff, listen, thank you
Speaker 1: so much. Are you two so gracious with your time?
Speaker 1: We really appreciate it. And again we're thinking about all
Speaker 1: of you guys over at Marriott. Tony be well, stay safe.
Speaker 1: Tony Capuano he is chief executive officer at Married International.
Speaker 1: On the phone from Bethesda, Maryland. I'm ROC journal. Yeah,
Speaker 1: but you let me drive. No, no, no, no, honey, please,
Speaker 1: I'll do the right rivel. I want to drive, Just drive.
Speaker 1: It's the questions. Keep trying. This is the drive to
Speaker 1: the globe. That's Bloomberg Radio. All right, Just about eleven
Speaker 1: minutes left in today's trading session. Another day where we
Speaker 1: setting selling and then buyers coming back. Into the trade. Tim,
Speaker 1: So let's get to Dan Morgan, VP and senior portfolio
Speaker 1: manager over at the Nova's trust company. They've got roughly
Speaker 1: twenty point six billion in assets under management. He's with
Speaker 1: us once again on the phone in Atlanta. Dan, Good
Speaker 1: to have you here with us. How you doing, Hi, Carol? Hi? Tim?
Speaker 1: How are you happy New year? Happy New Year? And
Speaker 1: have we not talked to you since? I guess not yet.
Speaker 1: We did a bunch of stories kind of in the
Speaker 1: you know, Kalen the last year, but then things got
Speaker 1: crazy with the election and so but we're back today
Speaker 1: talking chips. Yeah, talking to Well listen, this is a
Speaker 1: big story and video is going to be out after
Speaker 1: the closing bow. But we are all focused here at Bloomberg,
Speaker 1: watching the administration, watching the industry because these chips shortages.
Speaker 1: What do we need to know about this and what
Speaker 1: needs to be done? Well, you're right, you know what,
Speaker 1: Carol's really interesting because last time we talked, we talked
Speaker 1: about how a large percentage of chips are actually built
Speaker 1: outside the US, right over in the Pacific RIM. We
Speaker 1: have all the engineering, marketing and design skills here, but
Speaker 1: we're actually most of our plants are fabulous, which means
Speaker 1: we don't produce the chips here, And there was actually
Speaker 1: you and I talked about it. Then all of a sudden,
Speaker 1: I noticed a couple of weeks ago, in the last
Speaker 1: ten days, all the chip companies got together and signed
Speaker 1: a letter and sent it to President Biden saying, you know,
Speaker 1: we need to start building chips here in the US,
Speaker 1: and how better way to get rid of some of
Speaker 1: these shortages than to have control of your supply and
Speaker 1: right now, unfortunately we don't have that, and that's what's
Speaker 1: causing these shortages and these problems. But of course, Carol,
Speaker 1: you and I were already ahead of the head of
Speaker 1: the ball here in terms of identifying that issue before
Speaker 1: it became a major story. Hey, dan Um, just in
Speaker 1: the last few minutes the NBC reporting that GM says
Speaker 1: the worst of the global chip shortage may be behind it.
Speaker 1: Is that something that that you're seeing at all? Well?
Speaker 1: I think so. I mean, if we think about what's
Speaker 1: happening in the semiconductor business right now in terms of
Speaker 1: the overall cyclical recovery, and you think about let's say,
Speaker 1: autos and industrials which have been coming back very strongly,
Speaker 1: and I know At one point we had some shutdowns
Speaker 1: right with some of the auto manufacturers where they couldn't
Speaker 1: even deliver certain models because they couldn't get the chips.
Speaker 1: So slowly, that's starting done fall a little bit. And
Speaker 1: you know, if we look at just a week ago,
Speaker 1: Analog Devices reported numbers and their auto division was up
Speaker 1: nineteen in terms of revenues. So I think that's getting
Speaker 1: behind us and things are getting better. But it'd be
Speaker 1: great if we could move those facilities here to the
Speaker 1: US and we wouldn't have any problems. Yes, everything would
Speaker 1: be some entirely. Oh that it were so okay, But Dan,
Speaker 1: wait a minute, Listen, you're much smarter than I when
Speaker 1: it comes to chips. There's lots of different kinds of chips.
Speaker 1: Are you talking about that we need to bring all
Speaker 1: kinds of chip manufacturing back to the United States? Well,
Speaker 1: you're right. I mean we talked about the autos industrials.
Speaker 1: One thing we always say, Carol, is that not every
Speaker 1: chip company is exactly the same. So I mean, when
Speaker 1: I say every it would just be good to have
Speaker 1: a larger percentage of the chips produced here domestically to
Speaker 1: kind of meet some of these areas that are really
Speaker 1: going to continue to be kind of secular growth stories.
Speaker 1: And we talked about this before, Carol and Tim. The cloud,
Speaker 1: which we all know is a great space gaming and
Speaker 1: then this huge five G rollout, especially in not only
Speaker 1: with smartphones with let's say an Apple, but also from
Speaker 1: the communications infrastructure, you know, perspective in terms of rolling
Speaker 1: out the base stations in terms of five G. So
Speaker 1: I don't know if we can get all of these
Speaker 1: areas here in the US domestic, but if we could
Speaker 1: get a larger percentage because I think at this point
Speaker 1: we talked about this before, Carl, I think it was
Speaker 1: only it was being produced outside it was a huge Yeah. Okay,
Speaker 1: so let's talk more in video company reporting earnings after
Speaker 1: the bell today. Speaking of chips, what would you ask
Speaker 1: management if you had the opportunity to do so well?
Speaker 1: I think Tim, you know, obviously we're gonna be following
Speaker 1: expectations in terms of data center revenue, which is about
Speaker 1: one point eight eight billion, gaming at two point three
Speaker 1: nine billion. I think something that's been kind of hot
Speaker 1: topic has been how is this acquisitioning is coming along?
Speaker 1: In return in regards to the arm deal, that was
Speaker 1: something that's somewhat controversial. Um, it really gives them a
Speaker 1: leg up in artificial intelligence what they have about a
Speaker 1: thirty nine percent market share, and they're kind of head
Speaker 1: of some of these other you know players in that space.
Speaker 1: Sy Links is in space Lattice, So it's kind of
Speaker 1: interesting to see if we can get a little bit
Speaker 1: more color from management, if that deal will in fact
Speaker 1: go through. There's been some pushback from some of the
Speaker 1: other chip makers that's saying, hey, we don't want ARM
Speaker 1: to be owned by videos. So I think that's could
Speaker 1: be on the center stage beyond just hitting those targets
Speaker 1: in terms of revenues. Is that deal going to go through? Well,
Speaker 1: that's where I wanted to go. I mean, there's some
Speaker 1: big companies are questioning this acquisition, Google, Microsoft, qual Calm.
Speaker 1: I mean some of the world largest technology companies. They're
Speaker 1: complaining to US antitrust regulators. When you look at that
Speaker 1: deal from an antitrust perspective, as an analyst, as an investor,
Speaker 1: do you think there's a problem. Well, Carol, you know,
Speaker 1: for listeners out there that aren't familiar with the model, right,
Speaker 1: it's kind of like a qualcom right, they are an
Speaker 1: intellectual property model which is they collect fees in regards
Speaker 1: to their you know, what they're providing in terms of
Speaker 1: the designs and so forth. They're not like a company
Speaker 1: that produces chips, like let's say Intel and you know,
Speaker 1: turns out microprocessors and sells them to PC manufacturers. So
Speaker 1: they're a little bit of a different animal. And the
Speaker 1: fact that they work with so many other chip companies
Speaker 1: in terms of providing these this tech, you know, this
Speaker 1: intellectual property that that could be somewhat of you know,
Speaker 1: a monopoly right that in video would have over this
Speaker 1: company that's so different. It's not just you know, like
Speaker 1: a company that produces more gaming chips. So I think
Speaker 1: that that is kind of interesting, Carol, Like you said
Speaker 1: that we're getting this pushback and could this be an
Speaker 1: anti trust issue that then derails the deal? Um, because
Speaker 1: everybody's saying, wow, us to be a sweet deal for
Speaker 1: end Video, but not so good for everybody else. So
Speaker 1: do you think it happens? Well, I'm hopeful. I mean,
Speaker 1: you know, that's why I'm you mentioned Tim in the
Speaker 1: beginning about what we want to hear from management. I
Speaker 1: think that's got to be on center stage, right. How's
Speaker 1: that deal coming along? What what's the issues with the
Speaker 1: d o J or you know, antitrust issues and if
Speaker 1: that you know, will consummate. So I'm I'm hopeful and
Speaker 1: optimistic they can execute the deal. I think it'd be
Speaker 1: great for them, as I mentioned an ai um and
Speaker 1: hopefully they can set up some firewalls where they're not
Speaker 1: interfering with other companies that are using um ARM in
Speaker 1: terms of some of these designs, you know, and then
Speaker 1: creating some sort of competitive advantage. I think that's what
Speaker 1: everybody's really worried about. Hey, just twenty seconds here the
Speaker 1: Tech pullback rally. Any thoughts on it? Well, it's actually, Carroll,
Speaker 1: because Tech made such a huge run. It did so well.
Speaker 1: I mean I was just looking at the charts because
Speaker 1: we've been talking about chips for such a long time.
Speaker 1: Do you realize that the socks is up two percent
Speaker 1: from the low that it hit in March? I mean, unbelievable, right,
Speaker 1: So I mean, I think it's only naturally we're going
Speaker 1: to get a bit of a pullback. But you know
Speaker 1: you're talking to the wrong guy, Carol and Jim, because
Speaker 1: you know I'm always bullish on technology. Right Listen, As
Speaker 1: Kathy would said, to us yesterday from Mark Right. Things
Speaker 1: don't go up in a straight line. Dan Morgan, thank
Speaker 1: you so much, senior portfolio manager over at s Nova's Trust,
Speaker 1: joining us once again on the phone from Atlanta. Thanks
Speaker 1: for listening to Bloomberg Business Week. Download the podcast on iTunes, SoundCloud,
Speaker 1: or Bloomberg dot com, and you can also listen to
Speaker 1: our radio show at two pm Eastern on Bloomberg Radio
Speaker 1: or watch us on YouTube. Search to Bloomberg Global News.