WEBVTT - U.S. Prisoners Dreading The Pandemic’s End

0:00:01.800 --> 0:00:04.400
<v Speaker 1>This is Bloomberg Business Week. I'm Carol Masser and I'm

0:00:04.440 --> 0:00:07.280
<v Speaker 1>Bloomberg Quick Takes Tim Stanibek. We're here every day bringing

0:00:07.280 --> 0:00:09.799
<v Speaker 1>you the latest news from the world of business and finance,

0:00:09.840 --> 0:00:13.600
<v Speaker 1>plus technology, politics, economics, all furnessing the power of Business

0:00:13.640 --> 0:00:17.119
<v Speaker 1>Week reporters and editors, not to mention our journalists and

0:00:17.120 --> 0:00:19.600
<v Speaker 1>analyst in more than one and twenty countries. You can

0:00:19.640 --> 0:00:23.200
<v Speaker 1>download Bloomberg Business Week and iTunes, SoundCloud, or Bloomberg dot Com.

0:00:23.400 --> 0:00:25.120
<v Speaker 1>You can also listen to our radio show at two

0:00:25.160 --> 0:00:27.840
<v Speaker 1>pm Eastern Time on Bloomberg Radio, or watch us on

0:00:27.880 --> 0:00:34.560
<v Speaker 1>YouTube search Bloomberg Global News. Bear with us for a moment, everyone,

0:00:34.600 --> 0:00:37.000
<v Speaker 1>because there is a ton of headlines when it comes

0:00:37.040 --> 0:00:40.480
<v Speaker 1>to COVID and the variants and the vaccine among them.

0:00:40.680 --> 0:00:43.080
<v Speaker 1>We've got Japan to clearing a new state of emergency

0:00:43.080 --> 0:00:46.720
<v Speaker 1>of a growing coronavirus cases which will run throughout the Olympics.

0:00:46.720 --> 0:00:49.560
<v Speaker 1>A local newspaper reporting fans are expected to be excluded

0:00:49.600 --> 0:00:52.640
<v Speaker 1>from all events in Tokyo and the surrounding areas. Tim.

0:00:52.680 --> 0:00:55.520
<v Speaker 1>We've got Africa having its worst week of the pandemic,

0:00:55.680 --> 0:00:59.840
<v Speaker 1>number of weekly cases rising as the delta variant spreads

0:01:00.000 --> 0:01:02.960
<v Speaker 1>cross the continent, the situation expected to worse and according

0:01:03.000 --> 0:01:05.480
<v Speaker 1>to the World Health Organization, and we've got that big

0:01:05.480 --> 0:01:10.000
<v Speaker 1>blockbuster number, the Pandemics global depth toll surpassing four million. Yeah,

0:01:10.080 --> 0:01:12.440
<v Speaker 1>and even here closer to home, Carol, New York City

0:01:12.440 --> 0:01:15.680
<v Speaker 1>will reduce classroom sizes, also embark on curriculum changes when

0:01:15.680 --> 0:01:18.319
<v Speaker 1>the US is largest public school system reopens fully in

0:01:18.400 --> 0:01:21.360
<v Speaker 1>person in September. The US also not ready to lift

0:01:21.400 --> 0:01:24.839
<v Speaker 1>restrictions on international passengers, and we'll take a conditions based

0:01:24.840 --> 0:01:28.080
<v Speaker 1>approach to any relaxing of rules. That's according to Transportation

0:01:28.120 --> 0:01:30.680
<v Speaker 1>Secretary Pete Buddha Judge. And we see lots of warnings

0:01:30.720 --> 0:01:35.039
<v Speaker 1>over in France against vacationing their citizens, vacationing in Spain

0:01:35.040 --> 0:01:39.319
<v Speaker 1>and Portugal. Forgive us for indulging us, because there's so

0:01:39.360 --> 0:01:40.959
<v Speaker 1>many headlines and we really want to get our next

0:01:41.000 --> 0:01:43.920
<v Speaker 1>guest thoughts on all of it. Dr Vino Polly is

0:01:43.959 --> 0:01:47.039
<v Speaker 1>founder and CEO of My Doctor Urgent Care, also the

0:01:47.080 --> 0:01:50.040
<v Speaker 1>chief COVID vaccine officer at My Doctor. He joins us

0:01:50.120 --> 0:01:52.840
<v Speaker 1>on the phone in New York City. Uh, Dr Vena Polly,

0:01:52.840 --> 0:01:55.440
<v Speaker 1>I should say thank you for indulging us, because it

0:01:55.640 --> 0:02:00.120
<v Speaker 1>feels like once again, we are inundated by headlines concerning

0:02:00.360 --> 0:02:03.160
<v Speaker 1>uh covid, the variant in particular, and it does feel

0:02:03.200 --> 0:02:05.800
<v Speaker 1>like all of a sudden things were moving along in

0:02:05.840 --> 0:02:08.239
<v Speaker 1>a good fashion, a positive fashion, all of a sudden

0:02:08.240 --> 0:02:13.360
<v Speaker 1>it feels like we're slowing down again. Hi, Hi Caroline, Tim,

0:02:13.400 --> 0:02:16.480
<v Speaker 1>it's great to be with you guys. Yes, of course,

0:02:16.919 --> 0:02:21.440
<v Speaker 1>delta variant is definitely concerning. It's already in a hundred focus.

0:02:22.160 --> 0:02:25.920
<v Speaker 1>As you mentioned, uh it's a highly transimous evo and

0:02:26.120 --> 0:02:30.160
<v Speaker 1>multiplying at a very fast space. It's the fastest fitness

0:02:30.680 --> 0:02:34.840
<v Speaker 1>and somewhat worrisome variant. And with all these reopenings that

0:02:34.840 --> 0:02:38.639
<v Speaker 1>are going on everywhere in most countries and then the US,

0:02:38.800 --> 0:02:43.320
<v Speaker 1>it's definitely a worrisome variant. Should it be worrisome to

0:02:43.360 --> 0:02:48.640
<v Speaker 1>people who have been vaccinated? So the question is folks

0:02:48.680 --> 0:02:52.160
<v Speaker 1>that are already vaccinated, are they getting these in factions?

0:02:52.280 --> 0:02:55.080
<v Speaker 1>I think there's once news that came out of Israel

0:02:55.600 --> 0:02:59.320
<v Speaker 1>that even if you're vaccinated, you can still get uh

0:02:59.480 --> 0:03:03.160
<v Speaker 1>covid and section. So with delta variant, what that means

0:03:03.400 --> 0:03:07.360
<v Speaker 1>is we already know this news that even if you're vaccinated,

0:03:07.400 --> 0:03:10.480
<v Speaker 1>they will be breakthrough infections. But the good news about

0:03:10.520 --> 0:03:17.080
<v Speaker 1>the vaccines is that eight decreases hospitalizations, severe complications, and death.

0:03:17.520 --> 0:03:21.120
<v Speaker 1>And the Israel News actually felt us that it is

0:03:22.960 --> 0:03:26.799
<v Speaker 1>the vaccines are effective in decrease in serious competitions, in

0:03:26.919 --> 0:03:31.080
<v Speaker 1>death and those are the outcomes of want. So if

0:03:31.120 --> 0:03:36.440
<v Speaker 1>you're vaccinated, even with the delta variant, which is more contagious,

0:03:36.440 --> 0:03:41.160
<v Speaker 1>spreads much more quickly and is more virulent, if you will, um,

0:03:41.360 --> 0:03:45.560
<v Speaker 1>you're protected, is what you're saying. Correct, you are, So

0:03:45.760 --> 0:03:48.000
<v Speaker 1>all the three vaccines that we have in the United

0:03:48.080 --> 0:03:52.320
<v Speaker 1>States will protect you against delta variant. And and the

0:03:52.400 --> 0:03:55.880
<v Speaker 1>recent studies that came out a couple of weeks ago

0:03:56.320 --> 0:04:01.600
<v Speaker 1>showed that most hospitalizations, severe complications, and deaths have occurred

0:04:01.960 --> 0:04:05.280
<v Speaker 1>in patients who are not vaccinated. So yes, it is

0:04:05.320 --> 0:04:08.520
<v Speaker 1>going to protect your games delta variance if you're vaccination. Okay,

0:04:08.520 --> 0:04:11.000
<v Speaker 1>But if you're not vaccinated in the United States, and

0:04:11.040 --> 0:04:13.839
<v Speaker 1>if we start to have pockets around the country where

0:04:13.880 --> 0:04:16.640
<v Speaker 1>we see cases rise, how could that be more problematic

0:04:17.040 --> 0:04:23.480
<v Speaker 1>to the wider population? So so remember, uh, one thousand

0:04:23.560 --> 0:04:27.680
<v Speaker 1>counties in the US or vaccinated less and we have

0:04:28.040 --> 0:04:34.120
<v Speaker 1>very densely populated areas where vaccination grates are low southeast Midwest,

0:04:34.560 --> 0:04:37.040
<v Speaker 1>you know listens with the Alabama you mean it, you know.

0:04:37.120 --> 0:04:39.840
<v Speaker 1>We can go down the list, but including New York

0:04:39.839 --> 0:04:43.040
<v Speaker 1>City in the Bronx and Brooklyn, we have pockets where

0:04:43.040 --> 0:04:46.719
<v Speaker 1>folks are not vaccinated. So when you are unvaccinated people,

0:04:47.120 --> 0:04:52.120
<v Speaker 1>the violets multiplies at a rapid uh pace and spreads.

0:04:52.200 --> 0:04:57.160
<v Speaker 1>So that's a concern. Vaccination grates are really pertical, uh

0:04:57.160 --> 0:05:00.320
<v Speaker 1>to look at what's the best way to get people

0:05:00.360 --> 0:05:05.560
<v Speaker 1>who I mean, it's hard to even really even I

0:05:05.560 --> 0:05:07.000
<v Speaker 1>don't know the answer to this, the best way to

0:05:07.000 --> 0:05:10.400
<v Speaker 1>get people who were hesitant before. If if this doesn't

0:05:10.400 --> 0:05:15.400
<v Speaker 1>get them to get vaccinated, what does so? So then

0:05:15.600 --> 0:05:21.839
<v Speaker 1>I think it's really important to understand we have African

0:05:21.839 --> 0:05:26.160
<v Speaker 1>Americans folks who are not vaccinated or only vaccinated. The

0:05:26.200 --> 0:05:30.800
<v Speaker 1>majority of African Americans Hispanic Native Americans who are not vaccinated.

0:05:30.920 --> 0:05:32.800
<v Speaker 1>How do we convince them? There has been a lot

0:05:32.839 --> 0:05:36.919
<v Speaker 1>of misinformation, so we have to come back back. I

0:05:36.960 --> 0:05:40.599
<v Speaker 1>think the key thing is to be communication, one in

0:05:40.680 --> 0:05:46.400
<v Speaker 1>one basis listening and counter any misinformation, have conversations and

0:05:46.520 --> 0:05:49.839
<v Speaker 1>give them facts. I think the message is loud and clear.

0:05:49.960 --> 0:05:54.520
<v Speaker 1>If you're unvaccinated you are at risk not only for infection,

0:05:55.000 --> 0:06:00.240
<v Speaker 1>but getting serious complications, hospitalizations, going into respect to say year,

0:06:00.640 --> 0:06:03.560
<v Speaker 1>going down a ventilator, and even death. So the message

0:06:03.640 --> 0:06:07.800
<v Speaker 1>is very loud and clear and be as health care workers,

0:06:07.960 --> 0:06:12.640
<v Speaker 1>of media, political leaders, community members, family and friends. You

0:06:12.680 --> 0:06:16.200
<v Speaker 1>all have to come together to kind convinced and communicate

0:06:16.240 --> 0:06:19.480
<v Speaker 1>with the folks are not vaccinated. So those who don't

0:06:19.520 --> 0:06:23.240
<v Speaker 1>get vaccinated and we're not getting to hurt immunity. Does

0:06:23.279 --> 0:06:29.320
<v Speaker 1>that potentially create a possibility or scenario Dr Polly where

0:06:30.839 --> 0:06:33.719
<v Speaker 1>the variant or the or the virus can continue to

0:06:33.880 --> 0:06:37.400
<v Speaker 1>mutate and become even more potent because there are hosts

0:06:37.400 --> 0:06:42.240
<v Speaker 1>out there that are available because not everybody's vaccinated, and

0:06:42.279 --> 0:06:44.880
<v Speaker 1>because we don't have herd immunity, and that that could

0:06:44.960 --> 0:06:48.279
<v Speaker 1>ultimately create a variant that the three vaccines that we

0:06:48.360 --> 0:06:51.200
<v Speaker 1>have here in the United States will not be effective against.

0:06:52.800 --> 0:06:55.400
<v Speaker 1>And I think you had the nail that's exactly right.

0:06:55.920 --> 0:06:59.640
<v Speaker 1>So the more number of people are unvaccinated, it's going

0:06:59.720 --> 0:07:04.320
<v Speaker 1>to create a pre tridution environment for all these variants

0:07:04.520 --> 0:07:07.680
<v Speaker 1>and especially delta variant. And I want to point out

0:07:07.680 --> 0:07:11.080
<v Speaker 1>and not alarm your orience, there is another variant called

0:07:11.080 --> 0:07:15.360
<v Speaker 1>delta plus variant, which is a seen uh in different countries.

0:07:15.400 --> 0:07:18.040
<v Speaker 1>I think we have about ag cases in the US,

0:07:18.440 --> 0:07:22.760
<v Speaker 1>which is additional mutation um and that that itself is

0:07:22.800 --> 0:07:27.360
<v Speaker 1>not looking that good. So, yes, the virus can go

0:07:27.360 --> 0:07:31.160
<v Speaker 1>into directions. You get a lot of unvaccinated people, it's

0:07:31.160 --> 0:07:35.560
<v Speaker 1>gonna it's going to continue to mutate, became become more stronger,

0:07:36.040 --> 0:07:39.840
<v Speaker 1>more contagious, and men even if they immunity offered by

0:07:39.920 --> 0:07:43.800
<v Speaker 1>these vaccines. So it's it's really on our it's really

0:07:43.840 --> 0:07:46.880
<v Speaker 1>critical that we get as many people vaccinated as possible

0:07:47.040 --> 0:07:50.680
<v Speaker 1>right now. What message do you have or what do

0:07:50.720 --> 0:07:54.360
<v Speaker 1>we know for people who are vaccinated but have kids

0:07:54.440 --> 0:07:56.920
<v Speaker 1>under the age of twelve who can't get vaccinated and

0:07:56.960 --> 0:07:59.960
<v Speaker 1>are are concerned about what's happening right now, because look,

0:08:00.040 --> 0:08:02.880
<v Speaker 1>if the delta variant is indeed spreading as scientists say

0:08:02.880 --> 0:08:06.480
<v Speaker 1>it is, then those unvaccinated populations that are not even

0:08:06.600 --> 0:08:12.760
<v Speaker 1>eligible could get it right So so that that definitely

0:08:12.960 --> 0:08:16.080
<v Speaker 1>is a concern. You're still waiting on some scientific data.

0:08:16.360 --> 0:08:19.880
<v Speaker 1>We're waiting on TB two guidelines for children are twelve

0:08:20.080 --> 0:08:23.520
<v Speaker 1>and below right now, there are several studies that have

0:08:23.640 --> 0:08:27.680
<v Speaker 1>angled these kids and vaccination programs we're waiting for the

0:08:27.680 --> 0:08:30.600
<v Speaker 1>final results. Hopefully will get that soon and maybe we

0:08:30.640 --> 0:08:33.920
<v Speaker 1>could even vaccinate children younger than two out pretty soon.

0:08:34.960 --> 0:08:38.960
<v Speaker 1>We're waiting on the guideline. Meanwhile, take all the precautions

0:08:39.000 --> 0:08:42.720
<v Speaker 1>that you can, especially if you're visiting grandparents, as kids

0:08:42.720 --> 0:08:46.880
<v Speaker 1>who are not vaccinated, they're trolling below in they're visiting grandparents.

0:08:47.360 --> 0:08:50.240
<v Speaker 1>You know, their masks, you know, have the grandparents wear masks.

0:08:50.520 --> 0:08:53.920
<v Speaker 1>Do some precautions for public health measures that were put

0:08:53.960 --> 0:08:58.720
<v Speaker 1>in case only if those grandparents aren't vaccinated. Right, Yes,

0:08:59.080 --> 0:09:02.480
<v Speaker 1>it's a grandparents, so not laccinated. You have to help

0:09:02.559 --> 0:09:05.400
<v Speaker 1>them bear amount. But if they're vaccinated, it should be fine.

0:09:07.440 --> 0:09:10.600
<v Speaker 1>They should be fine. Um, you know, just be careful.

0:09:10.600 --> 0:09:16.079
<v Speaker 1>There are also other groups, um, individuals, people are in

0:09:16.440 --> 0:09:19.599
<v Speaker 1>suppross and medications. I think we need to protect this

0:09:19.760 --> 0:09:23.920
<v Speaker 1>vulnerable population, right if you're more vulnerable. Hey, um, just

0:09:24.000 --> 0:09:26.920
<v Speaker 1>to wrap up here, there are headlines out there about

0:09:27.360 --> 0:09:30.160
<v Speaker 1>you know, France warning its citizens against vacationing in Spain

0:09:30.160 --> 0:09:33.520
<v Speaker 1>and Portugal because of the spread of the delta variant.

0:09:33.760 --> 0:09:36.479
<v Speaker 1>You've got the US not yet ready to lift restrictions

0:09:36.480 --> 0:09:40.559
<v Speaker 1>on international passengers that according to a US Transportation secretary,

0:09:40.600 --> 0:09:43.480
<v Speaker 1>pet footage. Do you think it's right to continue these

0:09:43.520 --> 0:09:45.880
<v Speaker 1>types of restrictions? And what's your advice to people who

0:09:45.920 --> 0:09:47.920
<v Speaker 1>are like I am dying to get on a plane,

0:09:48.400 --> 0:09:52.640
<v Speaker 1>dying to go to Venice. So so that I think

0:09:52.720 --> 0:09:56.280
<v Speaker 1>the two most important things that I would recommend is

0:09:56.320 --> 0:09:59.160
<v Speaker 1>supposed to get lascinated if you get on a plane,

0:09:59.440 --> 0:10:02.320
<v Speaker 1>to protect to yourself and protect others from delta varian.

0:10:02.800 --> 0:10:06.080
<v Speaker 1>Second thing, get tested. You know, if you get tested

0:10:06.440 --> 0:10:09.559
<v Speaker 1>and if you're positive, you should not be traveling. You

0:10:09.559 --> 0:10:11.920
<v Speaker 1>should not go to Venice or France or any other

0:10:11.920 --> 0:10:16.240
<v Speaker 1>countries and stay back and follow public health measures until

0:10:16.320 --> 0:10:19.120
<v Speaker 1>you get better or you know, give give yourself the

0:10:19.320 --> 0:10:24.600
<v Speaker 1>quarantine peer you're post. So getting tested, getting vaccinated are

0:10:24.640 --> 0:10:28.440
<v Speaker 1>going to be very critical during gustumber or travel. Would

0:10:28.440 --> 0:10:30.760
<v Speaker 1>you also stay away just quickly twenty seconds, stay away

0:10:30.760 --> 0:10:33.400
<v Speaker 1>from states within the United States where there aren't high

0:10:33.440 --> 0:10:38.920
<v Speaker 1>vaccination rates just quickly you I mean, I would avoid,

0:10:39.120 --> 0:10:42.120
<v Speaker 1>but you know, if you have to go, um, make

0:10:42.120 --> 0:10:45.080
<v Speaker 1>sure you're vaccinated. All right, listen, we covered so much ground,

0:10:45.160 --> 0:10:48.240
<v Speaker 1>Thank you so much. Stay safe. Dr Veno Polly, founder

0:10:48.280 --> 0:10:50.760
<v Speaker 1>and CEO of my Doctor Urgent Care on the phone

0:10:50.800 --> 0:10:54.040
<v Speaker 1>in New York City. This is Bloomberg Business Week with

0:10:54.160 --> 0:10:58.880
<v Speaker 1>Carol Messer and Bloomberg Quick Takes. Tim Stinovic from Bloomberg Radio.

0:10:59.360 --> 0:11:01.800
<v Speaker 1>So not sure if you knew this. I did not

0:11:01.920 --> 0:11:03.720
<v Speaker 1>think about this, Tim. This is why I love this story.

0:11:03.760 --> 0:11:06.960
<v Speaker 1>When COVID nineteen struck, thousands of federal prisoners were released

0:11:06.960 --> 0:11:09.920
<v Speaker 1>to home confinement, and now they're in limbo fearing that

0:11:09.960 --> 0:11:13.400
<v Speaker 1>the government will soon order them to go back. So

0:11:13.480 --> 0:11:16.440
<v Speaker 1>let's get to it. This story reported for Bloomberg Business Week,

0:11:16.520 --> 0:11:19.720
<v Speaker 1>Bloomberg News legal reporter David Yaffie Bellini. He's on the

0:11:19.720 --> 0:11:22.040
<v Speaker 1>phone in Washington, d C. Along with Bloomberg Business. We

0:11:22.040 --> 0:11:23.840
<v Speaker 1>get her to Joel Webber. He's right next to us

0:11:23.840 --> 0:11:26.360
<v Speaker 1>in our Interactive broker studio in New York City. You know,

0:11:26.520 --> 0:11:28.640
<v Speaker 1>I remember some headlines, Joe, but I kind of forgot

0:11:28.679 --> 0:11:31.880
<v Speaker 1>about the prisoners who were let out, the prisoners who

0:11:32.080 --> 0:11:36.160
<v Speaker 1>got to go home, and uh, as we've been reminded

0:11:36.200 --> 0:11:40.920
<v Speaker 1>by David's reporting here, may not get to stay home forever, right,

0:11:40.960 --> 0:11:43.880
<v Speaker 1>And part of that reason is how the cares that

0:11:44.360 --> 0:11:47.240
<v Speaker 1>fits into it. So David does drop us into reporting.

0:11:47.280 --> 0:11:49.360
<v Speaker 1>What did you learn in the course of working on

0:11:49.400 --> 0:11:55.599
<v Speaker 1>this story? In the spring and the early days of

0:11:55.640 --> 0:11:59.080
<v Speaker 1>the pandemic. It included a provision that allowed the Bureau

0:11:59.120 --> 0:12:02.679
<v Speaker 1>of Prisoners to least a home consignment a much wider

0:12:02.679 --> 0:12:06.880
<v Speaker 1>swath as the prison population than would normally have been eligible. Um.

0:12:06.960 --> 0:12:09.120
<v Speaker 1>So you know, the Bureau of Prisons has at least

0:12:09.120 --> 0:12:11.280
<v Speaker 1>people the home confinement before, but usually only for the

0:12:11.320 --> 0:12:14.600
<v Speaker 1>last six months or so of their sentences. Under this program,

0:12:14.800 --> 0:12:16.600
<v Speaker 1>you know, prisoners who had you know, as much as

0:12:16.600 --> 0:12:19.280
<v Speaker 1>half of their sentence remaining could could go home. And

0:12:19.360 --> 0:12:22.080
<v Speaker 1>so you know, thousands of prisoners were sent home as

0:12:22.120 --> 0:12:24.520
<v Speaker 1>a as a result of that. They've sort of started

0:12:24.520 --> 0:12:28.319
<v Speaker 1>rebuilding their lives, reintegrating into into society, you know, getting

0:12:28.320 --> 0:12:32.199
<v Speaker 1>to know children who they haven't seen properly for years. Um.

0:12:32.240 --> 0:12:34.240
<v Speaker 1>But that all could could come to an end once

0:12:34.320 --> 0:12:37.120
<v Speaker 1>the once the pandemic is over and the Bureau of

0:12:37.200 --> 0:12:41.079
<v Speaker 1>Prisons authority to do this expires. So it all hinges

0:12:41.160 --> 0:12:46.240
<v Speaker 1>on the government declaring the pandemic being over, which might

0:12:46.320 --> 0:12:50.200
<v Speaker 1>be wishful thinking at the moment um. Just if if

0:12:50.200 --> 0:12:55.719
<v Speaker 1>you hear about the delta variant and delta plus if

0:12:55.720 --> 0:12:57.840
<v Speaker 1>you're listening to the program right, like, all of that

0:12:57.920 --> 0:13:02.040
<v Speaker 1>stuff is a variable. But what happens once that switch

0:13:02.080 --> 0:13:06.280
<v Speaker 1>gets flipped in the pandemic is quote unquote over. Yeah,

0:13:06.280 --> 0:13:08.280
<v Speaker 1>so it's sort of a tragic irony that we've all

0:13:08.280 --> 0:13:10.920
<v Speaker 1>been waiting desperately for the pandemic to be over. But

0:13:10.960 --> 0:13:13.160
<v Speaker 1>there are these prisoners, you know, who are actually dreading

0:13:13.280 --> 0:13:17.240
<v Speaker 1>that that moment um, and what exactly will happen is

0:13:17.280 --> 0:13:20.320
<v Speaker 1>not totally clear. Um. In the kind of waning days

0:13:20.320 --> 0:13:23.160
<v Speaker 1>of the Trump administration, the Justice Department issued a legal

0:13:23.240 --> 0:13:27.000
<v Speaker 1>memo which basically outlined its interpretation of this provision of

0:13:27.000 --> 0:13:29.560
<v Speaker 1>the Care Act of the CARES Act, and said, you know,

0:13:29.600 --> 0:13:31.760
<v Speaker 1>once the pandemic is over, the b OP is going

0:13:31.800 --> 0:13:34.880
<v Speaker 1>to lose this expanded authority to put put prisoners on

0:13:34.920 --> 0:13:38.240
<v Speaker 1>home confinement. Now, you know, it seems unlikely that the

0:13:38.280 --> 0:13:41.320
<v Speaker 1>Biden administration will send the legal memo. Um. When you

0:13:41.400 --> 0:13:43.960
<v Speaker 1>talk to two legal experts, they point out that, you know,

0:13:44.000 --> 0:13:46.959
<v Speaker 1>this is actually a pretty solid bit of legal analysis

0:13:47.040 --> 0:13:49.160
<v Speaker 1>that actually, if you look very closely at the way

0:13:49.480 --> 0:13:52.400
<v Speaker 1>the CARES Act is written, it does seem to suggest

0:13:52.480 --> 0:13:54.920
<v Speaker 1>that the Bureau of Prisons only has this authority for

0:13:55.040 --> 0:13:58.760
<v Speaker 1>the duration of the emergency period of the pandemic. Um,

0:13:58.840 --> 0:14:01.680
<v Speaker 1>so that memos will be not going away, despite the

0:14:01.720 --> 0:14:04.240
<v Speaker 1>efforts of prisoner advocacy groups. But there are other things

0:14:04.240 --> 0:14:07.600
<v Speaker 1>the Biden administration could do. I mean it could, um,

0:14:07.720 --> 0:14:10.520
<v Speaker 1>you could grant clemency to the thousands of prisoners who

0:14:10.520 --> 0:14:12.200
<v Speaker 1>have kind of followed all the rules and been at

0:14:12.240 --> 0:14:14.480
<v Speaker 1>home for the last year, um, which would allow them

0:14:14.520 --> 0:14:17.800
<v Speaker 1>to avoid returning to prison. Or you know, Congress could

0:14:17.880 --> 0:14:21.200
<v Speaker 1>pass new legislation making it clear that you know this,

0:14:21.200 --> 0:14:25.360
<v Speaker 1>this authority that the b OP was given temporarily applies permanently,

0:14:25.480 --> 0:14:28.080
<v Speaker 1>or at least applies permanently in the cases of these

0:14:28.120 --> 0:14:30.960
<v Speaker 1>prisoners who who were sent home. How exactly that will

0:14:31.000 --> 0:14:33.840
<v Speaker 1>play out is not totally clear. That the Biden administration

0:14:33.920 --> 0:14:36.440
<v Speaker 1>is keeping its cards pretty close to its chest. They'll

0:14:36.440 --> 0:14:38.960
<v Speaker 1>say things like, oh, this is a question for when

0:14:38.960 --> 0:14:41.520
<v Speaker 1>the pandemic is over, which for prisoners who are kind

0:14:41.520 --> 0:14:44.800
<v Speaker 1>of waiting in limbo is not a very satisfying answer. David,

0:14:44.800 --> 0:14:46.880
<v Speaker 1>this is an incredibly powerful story, and I think the

0:14:47.240 --> 0:14:49.720
<v Speaker 1>reason why is because it tells the story of numbers

0:14:49.760 --> 0:14:54.280
<v Speaker 1>through individuals, and you include a handful of these thousands

0:14:54.280 --> 0:14:56.760
<v Speaker 1>of prisoners who have been released. Their stories tell us

0:14:56.760 --> 0:15:01.520
<v Speaker 1>about somebody like Brian Carr. Sure so, Brian Carr, I

0:15:01.560 --> 0:15:03.760
<v Speaker 1>think you know fits the profile of a lot of

0:15:03.760 --> 0:15:07.720
<v Speaker 1>people in this situation. UM. He was sent to prison

0:15:07.880 --> 0:15:11.240
<v Speaker 1>on on on drug charges a few years ago. UM.

0:15:11.360 --> 0:15:14.320
<v Speaker 1>He's more than halfway through a sentence and UM was

0:15:14.360 --> 0:15:17.200
<v Speaker 1>being held the prison camp in Fairton, New Jersey. UM,

0:15:17.240 --> 0:15:19.080
<v Speaker 1>and he was sent home to Baltimore. He sort of

0:15:19.120 --> 0:15:22.640
<v Speaker 1>started trying to rebuild his life. He's planning to enroll

0:15:22.720 --> 0:15:25.840
<v Speaker 1>in a technical school. UM. Eventually he wants to start

0:15:26.040 --> 0:15:30.320
<v Speaker 1>a company that would transport cars from dealerships across the country.

0:15:30.760 --> 0:15:34.120
<v Speaker 1>He has young children, UM, who he has gotten to

0:15:34.160 --> 0:15:36.760
<v Speaker 1>know better since he's been out of prison. He's UM

0:15:36.880 --> 0:15:39.640
<v Speaker 1>living with his family in Baltimore. He's followed all the rules,

0:15:39.680 --> 0:15:41.760
<v Speaker 1>but now he's kind of in the state of limbo

0:15:41.800 --> 0:15:44.640
<v Speaker 1>where he doesn't know what will happen. And I mean,

0:15:44.640 --> 0:15:46.720
<v Speaker 1>he said something to me that was really powerful that

0:15:46.760 --> 0:15:49.400
<v Speaker 1>he felt like never in his life until he got

0:15:49.440 --> 0:15:51.440
<v Speaker 1>this chance at early release had he felt like he'd

0:15:51.440 --> 0:15:55.240
<v Speaker 1>won anything UM, and then suddenly got this opportunity and

0:15:55.280 --> 0:15:57.040
<v Speaker 1>now it feels like it's going to be taken away

0:15:57.080 --> 0:15:59.360
<v Speaker 1>from him. I feel like there's a lesson here for

0:15:59.440 --> 0:16:02.680
<v Speaker 1>everyone who has read tons of research and articles on

0:16:02.720 --> 0:16:05.720
<v Speaker 1>recidivism and people going back on what really keeps people

0:16:05.720 --> 0:16:08.440
<v Speaker 1>out of prison. And I feel like, just such as

0:16:08.480 --> 0:16:10.800
<v Speaker 1>the pandemic has been a real life experiment for us,

0:16:10.920 --> 0:16:14.720
<v Speaker 1>David so too, is maybe these prisoners coming out and

0:16:15.120 --> 0:16:19.080
<v Speaker 1>really finding a way to maybe write their lives. Yeah.

0:16:19.080 --> 0:16:22.360
<v Speaker 1>I mean, at the moment, we've got about hundred inmates

0:16:22.360 --> 0:16:25.600
<v Speaker 1>who are on home confinement under this provision of the

0:16:25.640 --> 0:16:28.520
<v Speaker 1>Cares act Um, and you know only you know, throughout

0:16:28.520 --> 0:16:30.720
<v Speaker 1>the pandemic, only a hundred and twenty prisoners have been

0:16:30.720 --> 0:16:33.880
<v Speaker 1>sent back for either committing a new crime or violating

0:16:33.920 --> 0:16:36.360
<v Speaker 1>one of the rules from confinement. They are very strict rules.

0:16:36.360 --> 0:16:37.760
<v Speaker 1>You have to wear an ankle monitor, you have to

0:16:37.840 --> 0:16:40.240
<v Speaker 1>check in with prison officials several times a day. You're

0:16:40.240 --> 0:16:43.480
<v Speaker 1>obviously confined to your home for the most part um.

0:16:43.520 --> 0:16:45.960
<v Speaker 1>So so, yeah, in many ways, it's been a kind

0:16:46.000 --> 0:16:49.960
<v Speaker 1>of unlikely, you know, test case for a potential solution

0:16:50.000 --> 0:16:53.320
<v Speaker 1>and mass incarceration, and it's worked really well. And I

0:16:53.320 --> 0:16:56.320
<v Speaker 1>think most people agree on that. And you know, when

0:16:56.360 --> 0:16:59.120
<v Speaker 1>you talk to advocates, they're really frustrated that rather than

0:16:59.160 --> 0:17:03.440
<v Speaker 1>talking about expanding this home confinement provision to make it

0:17:03.480 --> 0:17:06.159
<v Speaker 1>permanent and giving more prisoners these opportunities they have to

0:17:06.240 --> 0:17:09.480
<v Speaker 1>desperately fight to um, you know, ensure the freedom of

0:17:09.880 --> 0:17:11.440
<v Speaker 1>people who have who have been out and have solved

0:17:11.440 --> 0:17:14.840
<v Speaker 1>all the rules over the last year. David, just just

0:17:14.880 --> 0:17:18.280
<v Speaker 1>based on your reporting and other stories that you worked on,

0:17:18.359 --> 0:17:20.560
<v Speaker 1>like the beer of Beer of prisons obviously a really

0:17:20.600 --> 0:17:24.280
<v Speaker 1>interesting um place and when that gets grilled a lot,

0:17:24.320 --> 0:17:27.639
<v Speaker 1>and just wondering like, what what other kind of changes

0:17:27.720 --> 0:17:32.359
<v Speaker 1>could you see coming coming from this time there? Um,

0:17:32.400 --> 0:17:35.840
<v Speaker 1>I think I think that um that you know, not

0:17:35.840 --> 0:17:37.680
<v Speaker 1>not only not only you know, as the Bureau of

0:17:37.720 --> 0:17:40.800
<v Speaker 1>Prisons have seen that kind of kind of expanding the

0:17:41.000 --> 0:17:43.840
<v Speaker 1>you know, sort of opening opening the possibilities of home

0:17:43.880 --> 0:17:45.720
<v Speaker 1>confinement to people who are not as far along in

0:17:45.760 --> 0:17:47.640
<v Speaker 1>their sentences. You know. Not not only have they seen

0:17:47.680 --> 0:17:49.919
<v Speaker 1>that that that works, but they've also created like a

0:17:49.960 --> 0:17:53.439
<v Speaker 1>whole new set of criteria. I mean some were associated

0:17:53.480 --> 0:17:56.720
<v Speaker 1>with health risks because of COVID, but other criteria about

0:17:56.760 --> 0:17:58.600
<v Speaker 1>good behavior. So they sort of found kind of a

0:17:58.640 --> 0:18:02.520
<v Speaker 1>new system for kind tracking the way you know, prisoners

0:18:02.520 --> 0:18:05.399
<v Speaker 1>have have responded to their their punishment that you know

0:18:05.520 --> 0:18:08.119
<v Speaker 1>is a is a potential you know, set of guidelines

0:18:08.119 --> 0:18:10.800
<v Speaker 1>for the future. That could allow the Bureau of Prisons

0:18:10.840 --> 0:18:13.280
<v Speaker 1>to kind of determine, you know, which which prisoners might

0:18:13.320 --> 0:18:16.760
<v Speaker 1>be eligible, who's most likely to benefit from home confinement

0:18:16.760 --> 0:18:18.840
<v Speaker 1>and follow all the rules, and you know that that

0:18:19.000 --> 0:18:22.119
<v Speaker 1>system is in place, and you know, could in theory

0:18:22.240 --> 0:18:25.600
<v Speaker 1>be kind of expanded and applied to an even wider

0:18:25.640 --> 0:18:28.680
<v Speaker 1>swath of the population than than we've already seen released

0:18:28.720 --> 0:18:31.520
<v Speaker 1>to home confinement during COVID. And so that's a potentially

0:18:31.840 --> 0:18:35.480
<v Speaker 1>you know, promising set of circumstances for the future. Um

0:18:35.840 --> 0:18:37.879
<v Speaker 1>but it's also all that discussion is kind of on

0:18:37.960 --> 0:18:39.680
<v Speaker 1>bold for now. I just think about crisis that a

0:18:39.720 --> 0:18:42.560
<v Speaker 1>crisis comes innovation, right, and disruption and ways of doing

0:18:42.560 --> 0:18:44.840
<v Speaker 1>it better, and we know the prison system has certainly

0:18:44.920 --> 0:18:48.000
<v Speaker 1>lacked in terms of figuring out a better way. Great stuff,

0:18:48.119 --> 0:18:50.280
<v Speaker 1>as always, David Yaffie bell In a legal over putter

0:18:50.320 --> 0:18:52.920
<v Speaker 1>of Bloomberg News, Joe Webber, editor of Bloomberg Business Week.

0:18:53.080 --> 0:18:57.080
<v Speaker 1>This is Bloomberg Business Week with Carol Masser and Bloomberg

0:18:57.160 --> 0:19:00.720
<v Speaker 1>Quick Takes. Tim Stinovic from Bloomberg. Raidy, We've got a

0:19:00.800 --> 0:19:03.600
<v Speaker 1>few stories for our food crowd. One is about Beyond

0:19:03.640 --> 0:19:06.240
<v Speaker 1>Meat offering up chicken tendees. There we go. I'm so

0:19:06.359 --> 0:19:09.399
<v Speaker 1>glad you sid, I'm learning, I'm learning all dog new

0:19:09.480 --> 0:19:11.679
<v Speaker 1>tricks and another one set way grasping for a lifeline.

0:19:11.760 --> 0:19:14.959
<v Speaker 1>Let's get to it with Bloomberg News consumer reporter Dina Shankar.

0:19:15.119 --> 0:19:18.160
<v Speaker 1>She is on the phone in New York City. Can

0:19:18.200 --> 0:19:20.280
<v Speaker 1>we talk about Beyond Me and what they're up to?

0:19:22.040 --> 0:19:26.159
<v Speaker 1>Of course, alright, always happy we are to tell us

0:19:26.200 --> 0:19:30.320
<v Speaker 1>what they're up to. So they are announcing today that

0:19:30.440 --> 0:19:35.439
<v Speaker 1>they're rolling out a new chicken tender product at restaurants.

0:19:35.480 --> 0:19:39.440
<v Speaker 1>It's hitting just under four hundred restaurants, which is a

0:19:39.520 --> 0:19:41.920
<v Speaker 1>bit of a smaller rollout than we've gotten used to

0:19:42.119 --> 0:19:47.720
<v Speaker 1>with Beyond Me. Um. These chicken tenders are honestly, they're

0:19:47.720 --> 0:19:51.600
<v Speaker 1>more like a big nugget because they're a ground product

0:19:51.840 --> 0:19:54.960
<v Speaker 1>instead of a whole muscle product, which is what we've

0:19:55.040 --> 0:19:58.520
<v Speaker 1>come to expect from you know what. Okay, hold on,

0:19:58.600 --> 0:20:02.040
<v Speaker 1>take a hold on, let's pause the dying. Tell us more, well,

0:20:02.080 --> 0:20:03.719
<v Speaker 1>we should know what they're made of. Fava beans, right,

0:20:03.800 --> 0:20:08.520
<v Speaker 1>not hole muscles. That's okay, there are fava there. Uh,

0:20:08.840 --> 0:20:11.800
<v Speaker 1>the main ingredient and uses fava beans like silence and

0:20:11.840 --> 0:20:13.879
<v Speaker 1>the lambs fava beans. That's all I can think of

0:20:14.080 --> 0:20:18.120
<v Speaker 1>such a great line from a movie first person to say, right,

0:20:18.280 --> 0:20:20.359
<v Speaker 1>it's like a great line in that movie. Okay, anyway,

0:20:20.359 --> 0:20:24.600
<v Speaker 1>go ahead continue. Sorry, So that's fine. So fava beans

0:20:24.640 --> 0:20:29.280
<v Speaker 1>are are change for beyond me that usually UH uses

0:20:29.320 --> 0:20:32.679
<v Speaker 1>P protein as it's primary ingredient, and these also P protein.

0:20:32.760 --> 0:20:36.240
<v Speaker 1>Actually it's in the breading for the tenders. Um. But

0:20:36.359 --> 0:20:40.240
<v Speaker 1>they're made from a base of of fava beans. Um.

0:20:40.400 --> 0:20:45.080
<v Speaker 1>And they are it's called a chop and mold, which

0:20:45.119 --> 0:20:47.639
<v Speaker 1>is another way of just saying like a whoa, sorry,

0:20:47.680 --> 0:20:54.080
<v Speaker 1>there's a thunderstorm happening. I'm sorry, beyond meat or or

0:20:54.119 --> 0:20:57.680
<v Speaker 1>the fava bean bean police coming at your door or something. Yeah.

0:21:00.080 --> 0:21:02.960
<v Speaker 1>So it was. So it's a ground product, which is

0:21:03.119 --> 0:21:06.919
<v Speaker 1>sort of more similar to like a burger essentially, um

0:21:07.000 --> 0:21:09.080
<v Speaker 1>because of it's chopped up and molded into a shape

0:21:09.080 --> 0:21:11.920
<v Speaker 1>as opposed to a whole muscle, which um is. You know,

0:21:12.040 --> 0:21:17.200
<v Speaker 1>it's taste good. It's not what we well, So, have

0:21:17.320 --> 0:21:20.120
<v Speaker 1>you ever had anything that was salty breaded and fried? Yeah,

0:21:20.160 --> 0:21:26.159
<v Speaker 1>it's not going to be so um it taste you know,

0:21:26.240 --> 0:21:28.240
<v Speaker 1>it tastes a good. Um. I had it. They made

0:21:28.280 --> 0:21:29.720
<v Speaker 1>it for me. A chef made it for me in

0:21:29.760 --> 0:21:31.720
<v Speaker 1>a restaurant, so like, you know, it's not something that

0:21:31.840 --> 0:21:35.040
<v Speaker 1>I made at home. Um, it was it was crunchy

0:21:35.119 --> 0:21:38.040
<v Speaker 1>and and you know, oily and and it was like

0:21:38.520 --> 0:21:41.879
<v Speaker 1>bar food. Um, didn't taste like chicken. Well, you know,

0:21:42.040 --> 0:21:44.240
<v Speaker 1>being the reporter that I am, I had to sit

0:21:44.320 --> 0:21:47.800
<v Speaker 1>there and peel the breading away and and try to

0:21:48.200 --> 0:21:50.520
<v Speaker 1>you know, quote unquote me of it. And it was

0:21:50.640 --> 0:21:53.879
<v Speaker 1>it was okay. It had like sort of like a

0:21:54.000 --> 0:21:57.320
<v Speaker 1>slightly chalky texture but it but it was salty too,

0:21:57.520 --> 0:22:00.359
<v Speaker 1>so it wasn't like all the flavor was in the breading. Um,

0:22:00.520 --> 0:22:03.399
<v Speaker 1>there was flavor in there too. Um. But you know

0:22:03.520 --> 0:22:09.040
<v Speaker 1>that I tried their KFC chicken nugget right before the

0:22:09.119 --> 0:22:13.840
<v Speaker 1>pandemic actually, uh January so and that was their second

0:22:13.880 --> 0:22:16.119
<v Speaker 1>now get with KFC, and it was a hole muscle

0:22:16.480 --> 0:22:20.120
<v Speaker 1>and it was really impressive because it had that um

0:22:20.359 --> 0:22:23.400
<v Speaker 1>like fibrous kind of texture that you would get from

0:22:23.440 --> 0:22:26.600
<v Speaker 1>a from a chicken breath. So that's what I was expecting,

0:22:27.240 --> 0:22:30.119
<v Speaker 1>um from this. But it wasn't that it was a

0:22:30.240 --> 0:22:32.920
<v Speaker 1>It was a ground product, which the company incest is

0:22:33.040 --> 0:22:35.359
<v Speaker 1>not a step back for them, though it is a

0:22:35.480 --> 0:22:39.280
<v Speaker 1>lot more technologically difficult to make that whole muscle product.

0:22:39.600 --> 0:22:41.359
<v Speaker 1>They said that this is a better way to reach

0:22:41.440 --> 0:22:45.760
<v Speaker 1>the map, so they no longer offer that whole muscle product, right, Yeah, No,

0:22:45.960 --> 0:22:49.800
<v Speaker 1>that was just a short term KFC. Very briefly, I

0:22:49.840 --> 0:22:51.520
<v Speaker 1>don't want to get to the subway story, but very briefly,

0:22:51.560 --> 0:22:53.600
<v Speaker 1>how important is this to beyond business because chicken is

0:22:53.640 --> 0:22:58.080
<v Speaker 1>the most popular protein in the US. Yeah, I mean

0:22:58.240 --> 0:23:00.920
<v Speaker 1>it seems like it would be important because they have

0:23:01.400 --> 0:23:03.560
<v Speaker 1>you know, they have the beef obviously in the sausage

0:23:03.600 --> 0:23:07.440
<v Speaker 1>and um, chicken is a much bigger opportunity just in

0:23:07.600 --> 0:23:10.520
<v Speaker 1>terms of how much people eat of it. Um. It's

0:23:10.560 --> 0:23:12.800
<v Speaker 1>also you know, it's tougher because there's a lot more

0:23:12.880 --> 0:23:15.680
<v Speaker 1>competition in the plant based chicken market than there was

0:23:16.000 --> 0:23:18.440
<v Speaker 1>in the plant based beef market when they entered, or

0:23:18.480 --> 0:23:23.000
<v Speaker 1>plant based sausage and chicken also comes with it's a

0:23:23.080 --> 0:23:25.600
<v Speaker 1>different it's a different mindset when somebody decides to stub

0:23:25.760 --> 0:23:28.320
<v Speaker 1>in their chicken with a plant based option, because people

0:23:28.400 --> 0:23:32.280
<v Speaker 1>often make that decision for health reason and chicken chicken

0:23:32.320 --> 0:23:38.159
<v Speaker 1>doesn't have that same unhealthy um vibe that a burger does. UM.

0:23:38.320 --> 0:23:41.920
<v Speaker 1>And I have to say these tenders aren't really any

0:23:42.040 --> 0:23:46.080
<v Speaker 1>healthier than a standard chicken tender, so that makes it

0:23:46.080 --> 0:23:48.280
<v Speaker 1>a little bit of a tougher cell too. Yeah. Now

0:23:48.440 --> 0:23:50.399
<v Speaker 1>that's one of the big discussions we often have around

0:23:50.400 --> 0:23:53.719
<v Speaker 1>this table, U is just is it healthier? Um? Hey

0:23:53.840 --> 0:23:56.360
<v Speaker 1>just quickly got about forty five seconds left here subway

0:23:56.600 --> 0:24:01.800
<v Speaker 1>eat fresh refresh. What are they doing? They say they

0:24:01.880 --> 0:24:06.360
<v Speaker 1>are upgrading their ingredients. They are slicing their deli ham

0:24:06.440 --> 0:24:11.120
<v Speaker 1>and their turkey sinner. They're offering new bread. Um. The sandwiches,

0:24:11.520 --> 0:24:14.040
<v Speaker 1>I think, notably will not be getting any bigger, so

0:24:14.119 --> 0:24:16.200
<v Speaker 1>you will still be getting about the same amount of

0:24:16.240 --> 0:24:19.560
<v Speaker 1>me on those sandwiches. Um. You can finally order delivery

0:24:19.800 --> 0:24:22.840
<v Speaker 1>through the app, which um, it's sort of hard to

0:24:22.920 --> 0:24:27.719
<v Speaker 1>believe that you couldn't do until now through this whole pandemic. Um.

0:24:28.440 --> 0:24:34.960
<v Speaker 1>And they are also offering ingredients like avocado and fresh mozzarella.

0:24:35.160 --> 0:24:40.920
<v Speaker 1>So um, that's you know, something kind of perfect music.

0:24:41.480 --> 0:24:45.280
<v Speaker 1>It's like catch it up here is that way with

0:24:45.440 --> 0:24:47.480
<v Speaker 1>the sign of the times? Uh? Dina, that was so

0:24:47.640 --> 0:24:50.040
<v Speaker 1>much fun? Uh, thank you, thank you. Be careful in

0:24:50.080 --> 0:24:52.800
<v Speaker 1>that storm. Dina Shankor Consumer Report Apple bring news on

0:24:52.800 --> 0:24:54.720
<v Speaker 1>the fun from New York City. I'm hungry. Well, you

0:24:54.760 --> 0:24:57.000
<v Speaker 1>can go get somebody's new sandwich. It's the Turkey Kelly

0:24:57.080 --> 0:25:03.040
<v Speaker 1>Fresh sub. Avocado is avocado? Let me see avocado. I'm

0:25:03.119 --> 0:25:10.119
<v Speaker 1>bro macro journal. Yeah, but you let me drive. Oh no, no, no,

0:25:10.200 --> 0:25:15.840
<v Speaker 1>no home, honey, please, I'll do the right drivel exst me.

0:25:16.200 --> 0:25:23.520
<v Speaker 1>I want to dry it. Just drive, baby, it's the

0:25:23.720 --> 0:25:34.840
<v Speaker 1>question trying. This is the drive to the clobe. Gimmu thanks,

0:25:34.880 --> 0:25:40.840
<v Speaker 1>we'll drying us to down. On Bloomberg Radio. Just about

0:25:40.880 --> 0:25:43.399
<v Speaker 1>ten and a half minutes left in today's trading session.

0:25:43.440 --> 0:25:45.439
<v Speaker 1>It is time for the drive to the close. Michael Rosen,

0:25:45.880 --> 0:25:49.360
<v Speaker 1>CEO at Angelus Wealth Management, it's a multi asset investment firm,

0:25:49.400 --> 0:25:52.639
<v Speaker 1>registered investment advisor. He's joining us on the phone in

0:25:52.760 --> 0:25:57.080
<v Speaker 1>Santa Monica, California. Is its sunny there today, Michael, Oh,

0:25:57.200 --> 0:26:00.680
<v Speaker 1>you don't want to know. It's it's look as a

0:26:00.760 --> 0:26:03.880
<v Speaker 1>Californian Carol, I can tell you in the afternoon sunny.

0:26:04.480 --> 0:26:08.520
<v Speaker 1>You know in southern California it's always sunny. Well it's not.

0:26:08.680 --> 0:26:10.359
<v Speaker 1>It's kind of dark here. As a matter of fact,

0:26:10.800 --> 0:26:15.040
<v Speaker 1>I think it's pouring maybe out. It's pretty lousy. The markets, though,

0:26:15.520 --> 0:26:16.800
<v Speaker 1>you know, I think we get a little bit of

0:26:16.840 --> 0:26:21.159
<v Speaker 1>everything today. UH, some negativity certainly early on. We've bounced

0:26:21.200 --> 0:26:23.600
<v Speaker 1>off that loads, but I'm watching and here we are

0:26:23.800 --> 0:26:25.920
<v Speaker 1>with ten minutes to go, and it looks like we're

0:26:25.920 --> 0:26:28.399
<v Speaker 1>taking another leg down. What do you think is the

0:26:28.480 --> 0:26:30.480
<v Speaker 1>psyche of most investors right now and what do you

0:26:30.600 --> 0:26:37.359
<v Speaker 1>think explains the trade today? Well, let's remember that markets

0:26:37.440 --> 0:26:39.640
<v Speaker 1>hit an all time high yesterday. So I think it's

0:26:39.640 --> 0:26:43.159
<v Speaker 1>a little premature to, you know, call the beginning of

0:26:43.200 --> 0:26:46.000
<v Speaker 1>a major bear market at this point. But I think

0:26:46.040 --> 0:26:48.520
<v Speaker 1>if you look back a little bit longer, over the

0:26:48.680 --> 0:26:50.800
<v Speaker 1>last couple of weeks or the last couple of months,

0:26:51.760 --> 0:26:54.480
<v Speaker 1>the market has actually been really quite clear and sending

0:26:54.520 --> 0:26:59.920
<v Speaker 1>a very consistent signal about concerns around future growth. Were

0:27:00.400 --> 0:27:03.359
<v Speaker 1>previous worries that inflation would be spiking out of control

0:27:03.440 --> 0:27:06.520
<v Speaker 1>have really come come back. We're seeing bomb yields that

0:27:06.640 --> 0:27:10.160
<v Speaker 1>have dropped forty basis points or so in the last

0:27:10.840 --> 0:27:13.640
<v Speaker 1>couple of months. UH, and a rotation in the equity

0:27:13.720 --> 0:27:19.000
<v Speaker 1>markets UH, where small cap stocks are now underperforming large

0:27:19.040 --> 0:27:23.000
<v Speaker 1>cap valley stocks underperforming growth stocks. The dollar is a

0:27:23.040 --> 0:27:27.879
<v Speaker 1>little bit stronger. All a very consistent message of anticipating

0:27:28.280 --> 0:27:32.920
<v Speaker 1>a little bit weaker economic growth, less inflation pressures, and

0:27:33.040 --> 0:27:35.640
<v Speaker 1>we're seeing that rotation in the in the markets really

0:27:35.680 --> 0:27:39.000
<v Speaker 1>across across asset classes. What is the one thing that changed?

0:27:39.240 --> 0:27:42.399
<v Speaker 1>Were several things that changed after yesterday's closed, which was

0:27:42.440 --> 0:27:47.520
<v Speaker 1>a record, and what happened this morning. Yeah, I think

0:27:47.560 --> 0:27:49.840
<v Speaker 1>it's it's really as I said, it's it's been a

0:27:49.920 --> 0:27:54.200
<v Speaker 1>bit of a continuation of a recognition that the previous

0:27:54.280 --> 0:27:58.359
<v Speaker 1>concerns of ever higher inflation we're just simply not warranted.

0:27:58.920 --> 0:28:04.240
<v Speaker 1>Uh And the markets were we're mispricing higher inflation. There's

0:28:04.240 --> 0:28:07.120
<v Speaker 1>an argument that markets are now maybe mispricing too low

0:28:07.200 --> 0:28:10.879
<v Speaker 1>inflation going forward. Tender inflation assumptions are now about two

0:28:10.920 --> 0:28:13.720
<v Speaker 1>and a quarter percent. Uh So it's really come down

0:28:13.880 --> 0:28:18.080
<v Speaker 1>quite quite substantially. But your concerns around again be the

0:28:18.200 --> 0:28:21.800
<v Speaker 1>opening of economies around the world as the delta variant

0:28:22.040 --> 0:28:26.040
<v Speaker 1>seems to be spreading, uh so, slower economic growth and

0:28:26.119 --> 0:28:28.760
<v Speaker 1>maybe a recognition although we've we've sort of known this

0:28:28.960 --> 0:28:32.960
<v Speaker 1>that be the rate of economic growth and the rate

0:28:33.040 --> 0:28:36.680
<v Speaker 1>of inflation probably peak the last quarter and it's on

0:28:36.880 --> 0:28:39.200
<v Speaker 1>both are kind of on their way the way down now.

0:28:39.360 --> 0:28:42.200
<v Speaker 1>So I think, you know, today is uh to me

0:28:42.320 --> 0:28:45.080
<v Speaker 1>sort of just consistent message that we've we've had from

0:28:45.120 --> 0:28:47.480
<v Speaker 1>the markets over the last couple of weeks and couple

0:28:47.520 --> 0:28:49.840
<v Speaker 1>of months. Yeah, our Gina Marton Adams, who is so

0:28:49.960 --> 0:28:52.320
<v Speaker 1>smart Bluemberg Intelligence, has followed the markets for a long

0:28:52.360 --> 0:28:54.520
<v Speaker 1>time and she's talks about, you know, the market is

0:28:54.600 --> 0:28:57.360
<v Speaker 1>priced to an existing reality as we know it now,

0:28:57.480 --> 0:29:00.120
<v Speaker 1>like we know where what's happening. We know are things

0:29:00.160 --> 0:29:02.440
<v Speaker 1>are going to bounce off because our bounce up because

0:29:02.480 --> 0:29:05.360
<v Speaker 1>everything fell off a cliff because of the pandemic, and

0:29:05.680 --> 0:29:09.160
<v Speaker 1>so much of that is already priced in. The question

0:29:09.240 --> 0:29:12.120
<v Speaker 1>now is what's next, What's going to be the real

0:29:12.200 --> 0:29:14.480
<v Speaker 1>pace of recovery on the other side of this, what

0:29:14.640 --> 0:29:18.880
<v Speaker 1>happens to inflation? Right, and what happens to FED policy? Yeah,

0:29:18.960 --> 0:29:21.120
<v Speaker 1>that that's a that's a great question, and you know,

0:29:21.240 --> 0:29:24.480
<v Speaker 1>the the really the question that we're we're all looking for.

0:29:24.600 --> 0:29:27.239
<v Speaker 1>I think the next couple of months we're still going

0:29:27.240 --> 0:29:28.920
<v Speaker 1>to see a lot of noise in the data because

0:29:28.920 --> 0:29:32.240
<v Speaker 1>we're still looking at a twelve month period going back

0:29:32.320 --> 0:29:35.320
<v Speaker 1>to the midst of the economic shutdown that we had

0:29:35.440 --> 0:29:37.640
<v Speaker 1>last year. So I think the data will continue to

0:29:37.680 --> 0:29:39.720
<v Speaker 1>be a little bit noisy. We do know that in

0:29:39.800 --> 0:29:44.120
<v Speaker 1>the inflation numbers that that much of the increase in inflation,

0:29:44.440 --> 0:29:47.880
<v Speaker 1>and inflation was running at five percent eurover a year

0:29:48.000 --> 0:29:51.120
<v Speaker 1>just a month ago. A lot of that pressure is

0:29:51.360 --> 0:29:56.280
<v Speaker 1>due to supply constraints, which really is pandemic related. So uh,

0:29:56.440 --> 0:30:01.760
<v Speaker 1>semiconductor chips we we know h are are are in

0:30:01.880 --> 0:30:05.160
<v Speaker 1>short supply, affecting auto prices. We know that a lot

0:30:05.240 --> 0:30:11.640
<v Speaker 1>of the travel agencies, uh, the car rentals and airlines

0:30:11.800 --> 0:30:14.640
<v Speaker 1>shut down a lot of their capacity. Uh. And now

0:30:14.720 --> 0:30:17.560
<v Speaker 1>there's there's been a surgeon demand they haven't been able

0:30:17.600 --> 0:30:20.320
<v Speaker 1>to meet that. So prices are we know that that

0:30:20.520 --> 0:30:24.200
<v Speaker 1>will abate over over time. So a lot of the

0:30:25.000 --> 0:30:29.320
<v Speaker 1>pressures you are coming down. Look at lumber another good example. Uh.

0:30:29.560 --> 0:30:31.840
<v Speaker 1>You know, lumber doubles in the first couple of months

0:30:31.880 --> 0:30:35.080
<v Speaker 1>of this year and is down from its high back

0:30:35.120 --> 0:30:38.160
<v Speaker 1>in early May. So uh, and again due to supply

0:30:38.280 --> 0:30:41.680
<v Speaker 1>constraints in lumber mills was what drove the prices up,

0:30:41.720 --> 0:30:43.719
<v Speaker 1>and now they're coming back down again. So a lot

0:30:43.800 --> 0:30:46.520
<v Speaker 1>of this we know are due to temporary factors and

0:30:46.600 --> 0:30:52.640
<v Speaker 1>inflation coming back down. The longer term question for investors again,

0:30:52.720 --> 0:30:54.800
<v Speaker 1>we won't really see this over the next couple of months.

0:30:54.880 --> 0:30:57.480
<v Speaker 1>But as we look at over the next couple of years,

0:30:57.760 --> 0:31:00.600
<v Speaker 1>is you know what will FED policy be with respect

0:31:00.680 --> 0:31:04.000
<v Speaker 1>to any inflation pressures that we do see. The FED

0:31:04.280 --> 0:31:07.960
<v Speaker 1>wants higher inflation my senses, they probably will will get it.

0:31:08.080 --> 0:31:11.520
<v Speaker 1>And so it's it's at the moment that there's a

0:31:11.560 --> 0:31:14.720
<v Speaker 1>lot of noise in the in the data, a lot

0:31:14.800 --> 0:31:16.800
<v Speaker 1>of that will will go away over the next couple

0:31:16.800 --> 0:31:19.120
<v Speaker 1>of months and will first settle into a maybe a

0:31:19.200 --> 0:31:22.280
<v Speaker 1>clearer pattern. Okay, so that's the that's your outlook, and

0:31:22.280 --> 0:31:25.720
<v Speaker 1>I'm wondering how it manifests itself in portfolio recommendations that

0:31:25.800 --> 0:31:27.760
<v Speaker 1>you have for your clients right now? How are you

0:31:27.760 --> 0:31:31.040
<v Speaker 1>thinking about asset allocation, stocks and bonds. Yeah, it's a

0:31:31.080 --> 0:31:34.000
<v Speaker 1>great it's a great question. So, um, if you you'll

0:31:34.040 --> 0:31:38.200
<v Speaker 1>think about the the winners in an environment of very

0:31:38.280 --> 0:31:43.080
<v Speaker 1>sluggish economic growth and u and very low or no inflation,

0:31:43.440 --> 0:31:47.360
<v Speaker 1>those are long duration assets, so growth equities, long term

0:31:47.520 --> 0:31:51.240
<v Speaker 1>government bonds the big winners in that kind of environment,

0:31:51.280 --> 0:31:54.720
<v Speaker 1>the environment that we saw for most of the previous decade,

0:31:55.280 --> 0:31:58.320
<v Speaker 1>in an environment where growth perhaps could be a little

0:31:58.360 --> 0:32:01.560
<v Speaker 1>bit stronger, inflasion pressures a little bit higher. You want

0:32:01.560 --> 0:32:04.440
<v Speaker 1>a short, shorter duration assets, so that means, you know,

0:32:04.520 --> 0:32:09.080
<v Speaker 1>bring the duration down in fixed income, UH, favoring credit

0:32:09.240 --> 0:32:13.719
<v Speaker 1>over over government bonds. UH and looking more at at

0:32:13.840 --> 0:32:18.200
<v Speaker 1>value companies, value stocks relative to just long duration growth stocks.

0:32:18.480 --> 0:32:21.239
<v Speaker 1>And in terms of fixed income, what would be your

0:32:21.280 --> 0:32:26.120
<v Speaker 1>play here, Well, we're really over right high yield really

0:32:26.280 --> 0:32:30.120
<v Speaker 1>and and and and all structured credit really to capture

0:32:30.160 --> 0:32:33.920
<v Speaker 1>that yield. We've had a view that the default cycle

0:32:34.040 --> 0:32:37.959
<v Speaker 1>peak last year UH, and in fact has been coming down. Uh.

0:32:38.040 --> 0:32:41.640
<v Speaker 1>There's been tremendous fiscal and monetary support has been very

0:32:41.800 --> 0:32:45.400
<v Speaker 1>very accommodated, and I don't see an increasemento false cycle

0:32:45.480 --> 0:32:49.800
<v Speaker 1>anytime soon, which means, uh, we can clip the higher yields.

0:32:49.880 --> 0:32:52.960
<v Speaker 1>Even though they're at record lows. There's still much higher

0:32:53.080 --> 0:32:56.600
<v Speaker 1>yields in credit and structured credit than that we can

0:32:56.640 --> 0:32:58.960
<v Speaker 1>get in government bonds, which really to me make no

0:32:59.160 --> 0:33:03.040
<v Speaker 1>sense at all or for long term investors. Really yield

0:33:03.160 --> 0:33:06.880
<v Speaker 1>that is, the yield after inflation are negative and government

0:33:06.960 --> 0:33:12.120
<v Speaker 1>bobs and so guaranteed to lose purchasing power over time,

0:33:12.240 --> 0:33:14.760
<v Speaker 1>they don't make any sense as a long term investment.

0:33:15.000 --> 0:33:16.600
<v Speaker 1>All Right, we're gonna leave there Hey Michael. Good to

0:33:16.640 --> 0:33:18.160
<v Speaker 1>get some time with you. Michael Rose and he's co

0:33:18.280 --> 0:33:21.520
<v Speaker 1>founder in chief investment officer at Angelist Wealth Management, joining

0:33:21.600 --> 0:33:27.160
<v Speaker 1>us on the phone from Santa Monica, California. Thanks for

0:33:27.200 --> 0:33:30.960
<v Speaker 1>listening to Bloomberg Business Week. Download the podcast on iTunes, SoundCloud,

0:33:31.080 --> 0:33:33.240
<v Speaker 1>or Bloomberg dot com, and you can also listen to

0:33:33.280 --> 0:33:35.840
<v Speaker 1>our radio show at two pm Eastern on Bloomberg Radio

0:33:36.000 --> 0:33:38.680
<v Speaker 1>or watch us on YouTube. Sarah to Bloomberg Global News