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
Speaker 1: you the latest news from the world of business and finance,
Speaker 1: plus technology, politics, economics, all furnessing the power of Business
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Speaker 1: YouTube search Bloomberg Global News. Bear with us for a moment, everyone,
Speaker 1: because there is a ton of headlines when it comes
Speaker 1: to COVID and the variants and the vaccine among them.
Speaker 1: We've got Japan to clearing a new state of emergency
Speaker 1: of a growing coronavirus cases which will run throughout the Olympics.
Speaker 1: A local newspaper reporting fans are expected to be excluded
Speaker 1: from all events in Tokyo and the surrounding areas. Tim.
Speaker 1: We've got Africa having its worst week of the pandemic,
Speaker 1: number of weekly cases rising as the delta variant spreads
Speaker 1: cross the continent, the situation expected to worse and according
Speaker 1: to the World Health Organization, and we've got that big
Speaker 1: blockbuster number, the Pandemics global depth toll surpassing four million. Yeah,
Speaker 1: and even here closer to home, Carol, New York City
Speaker 1: will reduce classroom sizes, also embark on curriculum changes when
Speaker 1: the US is largest public school system reopens fully in
Speaker 1: person in September. The US also not ready to lift
Speaker 1: restrictions on international passengers, and we'll take a conditions based
Speaker 1: approach to any relaxing of rules. That's according to Transportation
Speaker 1: Secretary Pete Buddha Judge. And we see lots of warnings
Speaker 1: over in France against vacationing their citizens, vacationing in Spain
Speaker 1: and Portugal. Forgive us for indulging us, because there's so
Speaker 1: many headlines and we really want to get our next
Speaker 1: guest thoughts on all of it. Dr Vino Polly is
Speaker 1: founder and CEO of My Doctor Urgent Care, also the
Speaker 1: chief COVID vaccine officer at My Doctor. He joins us
Speaker 1: on the phone in New York City. Uh, Dr Vena Polly,
Speaker 1: I should say thank you for indulging us, because it
Speaker 1: feels like once again, we are inundated by headlines concerning
Speaker 1: uh covid, the variant in particular, and it does feel
Speaker 1: like all of a sudden things were moving along in
Speaker 1: a good fashion, a positive fashion, all of a sudden
Speaker 1: it feels like we're slowing down again. Hi, Hi Caroline, Tim,
Speaker 1: it's great to be with you guys. Yes, of course,
Speaker 1: delta variant is definitely concerning. It's already in a hundred focus.
Speaker 1: As you mentioned, uh it's a highly transimous evo and
Speaker 1: multiplying at a very fast space. It's the fastest fitness
Speaker 1: and somewhat worrisome variant. And with all these reopenings that
Speaker 1: are going on everywhere in most countries and then the US,
Speaker 1: it's definitely a worrisome variant. Should it be worrisome to
Speaker 1: people who have been vaccinated? So the question is folks
Speaker 1: that are already vaccinated, are they getting these in factions?
Speaker 1: I think there's once news that came out of Israel
Speaker 1: that even if you're vaccinated, you can still get uh
Speaker 1: covid and section. So with delta variant, what that means
Speaker 1: is we already know this news that even if you're vaccinated,
Speaker 1: they will be breakthrough infections. But the good news about
Speaker 1: the vaccines is that eight decreases hospitalizations, severe complications, and death.
Speaker 1: And the Israel News actually felt us that it is
Speaker 1: the vaccines are effective in decrease in serious competitions, in
Speaker 1: death and those are the outcomes of want. So if
Speaker 1: you're vaccinated, even with the delta variant, which is more contagious,
Speaker 1: spreads much more quickly and is more virulent, if you will, um,
Speaker 1: you're protected, is what you're saying. Correct, you are, So
Speaker 1: all the three vaccines that we have in the United
Speaker 1: States will protect you against delta variant. And and the
Speaker 1: recent studies that came out a couple of weeks ago
Speaker 1: showed that most hospitalizations, severe complications, and deaths have occurred
Speaker 1: in patients who are not vaccinated. So yes, it is
Speaker 1: going to protect your games delta variance if you're vaccination. Okay,
Speaker 1: But if you're not vaccinated in the United States, and
Speaker 1: if we start to have pockets around the country where
Speaker 1: we see cases rise, how could that be more problematic
Speaker 1: to the wider population? So so remember, uh, one thousand
Speaker 1: counties in the US or vaccinated less and we have
Speaker 1: very densely populated areas where vaccination grates are low southeast Midwest,
Speaker 1: you know listens with the Alabama you mean it, you know.
Speaker 1: We can go down the list, but including New York
Speaker 1: City in the Bronx and Brooklyn, we have pockets where
Speaker 1: folks are not vaccinated. So when you are unvaccinated people,
Speaker 1: the violets multiplies at a rapid uh pace and spreads.
Speaker 1: So that's a concern. Vaccination grates are really pertical, uh
Speaker 1: to look at what's the best way to get people
Speaker 1: who I mean, it's hard to even really even I
Speaker 1: don't know the answer to this, the best way to
Speaker 1: get people who were hesitant before. If if this doesn't
Speaker 1: get them to get vaccinated, what does so? So then
Speaker 1: I think it's really important to understand we have African
Speaker 1: Americans folks who are not vaccinated or only vaccinated. The
Speaker 1: majority of African Americans Hispanic Native Americans who are not vaccinated.
Speaker 1: How do we convince them? There has been a lot
Speaker 1: of misinformation, so we have to come back back. I
Speaker 1: think the key thing is to be communication, one in
Speaker 1: one basis listening and counter any misinformation, have conversations and
Speaker 1: give them facts. I think the message is loud and clear.
Speaker 1: If you're unvaccinated you are at risk not only for infection,
Speaker 1: but getting serious complications, hospitalizations, going into respect to say year,
Speaker 1: going down a ventilator, and even death. So the message
Speaker 1: is very loud and clear and be as health care workers,
Speaker 1: of media, political leaders, community members, family and friends. You
Speaker 1: all have to come together to kind convinced and communicate
Speaker 1: with the folks are not vaccinated. So those who don't
Speaker 1: get vaccinated and we're not getting to hurt immunity. Does
Speaker 1: that potentially create a possibility or scenario Dr Polly where
Speaker 1: the variant or the or the virus can continue to
Speaker 1: mutate and become even more potent because there are hosts
Speaker 1: out there that are available because not everybody's vaccinated, and
Speaker 1: because we don't have herd immunity, and that that could
Speaker 1: ultimately create a variant that the three vaccines that we
Speaker 1: have here in the United States will not be effective against.
Speaker 1: And I think you had the nail that's exactly right.
Speaker 1: So the more number of people are unvaccinated, it's going
Speaker 1: to create a pre tridution environment for all these variants
Speaker 1: and especially delta variant. And I want to point out
Speaker 1: and not alarm your orience, there is another variant called
Speaker 1: delta plus variant, which is a seen uh in different countries.
Speaker 1: I think we have about ag cases in the US,
Speaker 1: which is additional mutation um and that that itself is
Speaker 1: not looking that good. So, yes, the virus can go
Speaker 1: into directions. You get a lot of unvaccinated people, it's
Speaker 1: gonna it's going to continue to mutate, became become more stronger,
Speaker 1: more contagious, and men even if they immunity offered by
Speaker 1: these vaccines. So it's it's really on our it's really
Speaker 1: critical that we get as many people vaccinated as possible
Speaker 1: right now. What message do you have or what do
Speaker 1: we know for people who are vaccinated but have kids
Speaker 1: under the age of twelve who can't get vaccinated and
Speaker 1: are are concerned about what's happening right now, because look,
Speaker 1: if the delta variant is indeed spreading as scientists say
Speaker 1: it is, then those unvaccinated populations that are not even
Speaker 1: eligible could get it right So so that that definitely
Speaker 1: is a concern. You're still waiting on some scientific data.
Speaker 1: We're waiting on TB two guidelines for children are twelve
Speaker 1: and below right now, there are several studies that have
Speaker 1: angled these kids and vaccination programs we're waiting for the
Speaker 1: final results. Hopefully will get that soon and maybe we
Speaker 1: could even vaccinate children younger than two out pretty soon.
Speaker 1: We're waiting on the guideline. Meanwhile, take all the precautions
Speaker 1: that you can, especially if you're visiting grandparents, as kids
Speaker 1: who are not vaccinated, they're trolling below in they're visiting grandparents.
Speaker 1: You know, their masks, you know, have the grandparents wear masks.
Speaker 1: Do some precautions for public health measures that were put
Speaker 1: in case only if those grandparents aren't vaccinated. Right, Yes,
Speaker 1: it's a grandparents, so not laccinated. You have to help
Speaker 1: them bear amount. But if they're vaccinated, it should be fine.
Speaker 1: They should be fine. Um, you know, just be careful.
Speaker 1: There are also other groups, um, individuals, people are in
Speaker 1: suppross and medications. I think we need to protect this
Speaker 1: vulnerable population, right if you're more vulnerable. Hey, um, just
Speaker 1: to wrap up here, there are headlines out there about
Speaker 1: you know, France warning its citizens against vacationing in Spain
Speaker 1: and Portugal because of the spread of the delta variant.
Speaker 1: You've got the US not yet ready to lift restrictions
Speaker 1: on international passengers that according to a US Transportation secretary,
Speaker 1: pet footage. Do you think it's right to continue these
Speaker 1: types of restrictions? And what's your advice to people who
Speaker 1: are like I am dying to get on a plane,
Speaker 1: dying to go to Venice. So so that I think
Speaker 1: the two most important things that I would recommend is
Speaker 1: supposed to get lascinated if you get on a plane,
Speaker 1: to protect to yourself and protect others from delta varian.
Speaker 1: Second thing, get tested. You know, if you get tested
Speaker 1: and if you're positive, you should not be traveling. You
Speaker 1: should not go to Venice or France or any other
Speaker 1: countries and stay back and follow public health measures until
Speaker 1: you get better or you know, give give yourself the
Speaker 1: quarantine peer you're post. So getting tested, getting vaccinated are
Speaker 1: going to be very critical during gustumber or travel. Would
Speaker 1: you also stay away just quickly twenty seconds, stay away
Speaker 1: from states within the United States where there aren't high
Speaker 1: vaccination rates just quickly you I mean, I would avoid,
Speaker 1: but you know, if you have to go, um, make
Speaker 1: sure you're vaccinated. All right, listen, we covered so much ground,
Speaker 1: Thank you so much. Stay safe. Dr Veno Polly, founder
Speaker 1: and CEO of my Doctor Urgent Care on the phone
Speaker 1: in New York City. This is Bloomberg Business Week with
Speaker 1: Carol Messer and Bloomberg Quick Takes. Tim Stinovic from Bloomberg Radio.
Speaker 1: So not sure if you knew this. I did not
Speaker 1: think about this, Tim. This is why I love this story.
Speaker 1: When COVID nineteen struck, thousands of federal prisoners were released
Speaker 1: to home confinement, and now they're in limbo fearing that
Speaker 1: the government will soon order them to go back. So
Speaker 1: let's get to it. This story reported for Bloomberg Business Week,
Speaker 1: Bloomberg News legal reporter David Yaffie Bellini. He's on the
Speaker 1: phone in Washington, d C. Along with Bloomberg Business. We
Speaker 1: get her to Joel Webber. He's right next to us
Speaker 1: in our Interactive broker studio in New York City. You know,
Speaker 1: I remember some headlines, Joe, but I kind of forgot
Speaker 1: about the prisoners who were let out, the prisoners who
Speaker 1: got to go home, and uh, as we've been reminded
Speaker 1: by David's reporting here, may not get to stay home forever, right,
Speaker 1: And part of that reason is how the cares that
Speaker 1: fits into it. So David does drop us into reporting.
Speaker 1: What did you learn in the course of working on
Speaker 1: this story? In the spring and the early days of
Speaker 1: the pandemic. It included a provision that allowed the Bureau
Speaker 1: of Prisoners to least a home consignment a much wider
Speaker 1: swath as the prison population than would normally have been eligible. Um.
Speaker 1: So you know, the Bureau of Prisons has at least
Speaker 1: people the home confinement before, but usually only for the
Speaker 1: last six months or so of their sentences. Under this program,
Speaker 1: you know, prisoners who had you know, as much as
Speaker 1: half of their sentence remaining could could go home. And
Speaker 1: so you know, thousands of prisoners were sent home as
Speaker 1: a as a result of that. They've sort of started
Speaker 1: rebuilding their lives, reintegrating into into society, you know, getting
Speaker 1: to know children who they haven't seen properly for years. Um.
Speaker 1: But that all could could come to an end once
Speaker 1: the once the pandemic is over and the Bureau of
Speaker 1: Prisons authority to do this expires. So it all hinges
Speaker 1: on the government declaring the pandemic being over, which might
Speaker 1: be wishful thinking at the moment um. Just if if
Speaker 1: you hear about the delta variant and delta plus if
Speaker 1: you're listening to the program right, like, all of that
Speaker 1: stuff is a variable. But what happens once that switch
Speaker 1: gets flipped in the pandemic is quote unquote over. Yeah,
Speaker 1: so it's sort of a tragic irony that we've all
Speaker 1: been waiting desperately for the pandemic to be over. But
Speaker 1: there are these prisoners, you know, who are actually dreading
Speaker 1: that that moment um, and what exactly will happen is
Speaker 1: not totally clear. Um. In the kind of waning days
Speaker 1: of the Trump administration, the Justice Department issued a legal
Speaker 1: memo which basically outlined its interpretation of this provision of
Speaker 1: the Care Act of the CARES Act, and said, you know,
Speaker 1: once the pandemic is over, the b OP is going
Speaker 1: to lose this expanded authority to put put prisoners on
Speaker 1: home confinement. Now, you know, it seems unlikely that the
Speaker 1: Biden administration will send the legal memo. Um. When you
Speaker 1: talk to two legal experts, they point out that, you know,
Speaker 1: this is actually a pretty solid bit of legal analysis
Speaker 1: that actually, if you look very closely at the way
Speaker 1: the CARES Act is written, it does seem to suggest
Speaker 1: that the Bureau of Prisons only has this authority for
Speaker 1: the duration of the emergency period of the pandemic. Um,
Speaker 1: so that memos will be not going away, despite the
Speaker 1: efforts of prisoner advocacy groups. But there are other things
Speaker 1: the Biden administration could do. I mean it could, um,
Speaker 1: you could grant clemency to the thousands of prisoners who
Speaker 1: have kind of followed all the rules and been at
Speaker 1: home for the last year, um, which would allow them
Speaker 1: to avoid returning to prison. Or you know, Congress could
Speaker 1: pass new legislation making it clear that you know this,
Speaker 1: this authority that the b OP was given temporarily applies permanently,
Speaker 1: or at least applies permanently in the cases of these
Speaker 1: prisoners who who were sent home. How exactly that will
Speaker 1: play out is not totally clear. That the Biden administration
Speaker 1: is keeping its cards pretty close to its chest. They'll
Speaker 1: say things like, oh, this is a question for when
Speaker 1: the pandemic is over, which for prisoners who are kind
Speaker 1: of waiting in limbo is not a very satisfying answer. David,
Speaker 1: this is an incredibly powerful story, and I think the
Speaker 1: reason why is because it tells the story of numbers
Speaker 1: through individuals, and you include a handful of these thousands
Speaker 1: of prisoners who have been released. Their stories tell us
Speaker 1: about somebody like Brian Carr. Sure so, Brian Carr, I
Speaker 1: think you know fits the profile of a lot of
Speaker 1: people in this situation. UM. He was sent to prison
Speaker 1: on on on drug charges a few years ago. UM.
Speaker 1: He's more than halfway through a sentence and UM was
Speaker 1: being held the prison camp in Fairton, New Jersey. UM,
Speaker 1: and he was sent home to Baltimore. He sort of
Speaker 1: started trying to rebuild his life. He's planning to enroll
Speaker 1: in a technical school. UM. Eventually he wants to start
Speaker 1: a company that would transport cars from dealerships across the country.
Speaker 1: He has young children, UM, who he has gotten to
Speaker 1: know better since he's been out of prison. He's UM
Speaker 1: living with his family in Baltimore. He's followed all the rules,
Speaker 1: but now he's kind of in the state of limbo
Speaker 1: where he doesn't know what will happen. And I mean,
Speaker 1: he said something to me that was really powerful that
Speaker 1: he felt like never in his life until he got
Speaker 1: this chance at early release had he felt like he'd
Speaker 1: won anything UM, and then suddenly got this opportunity and
Speaker 1: now it feels like it's going to be taken away
Speaker 1: from him. I feel like there's a lesson here for
Speaker 1: everyone who has read tons of research and articles on
Speaker 1: recidivism and people going back on what really keeps people
Speaker 1: out of prison. And I feel like, just such as
Speaker 1: the pandemic has been a real life experiment for us,
Speaker 1: David so too, is maybe these prisoners coming out and
Speaker 1: really finding a way to maybe write their lives. Yeah.
Speaker 1: I mean, at the moment, we've got about hundred inmates
Speaker 1: who are on home confinement under this provision of the
Speaker 1: Cares act Um, and you know only you know, throughout
Speaker 1: the pandemic, only a hundred and twenty prisoners have been
Speaker 1: sent back for either committing a new crime or violating
Speaker 1: one of the rules from confinement. They are very strict rules.
Speaker 1: You have to wear an ankle monitor, you have to
Speaker 1: check in with prison officials several times a day. You're
Speaker 1: obviously confined to your home for the most part um.
Speaker 1: So so, yeah, in many ways, it's been a kind
Speaker 1: of unlikely, you know, test case for a potential solution
Speaker 1: and mass incarceration, and it's worked really well. And I
Speaker 1: think most people agree on that. And you know, when
Speaker 1: you talk to advocates, they're really frustrated that rather than
Speaker 1: talking about expanding this home confinement provision to make it
Speaker 1: permanent and giving more prisoners these opportunities they have to
Speaker 1: desperately fight to um, you know, ensure the freedom of
Speaker 1: people who have who have been out and have solved
Speaker 1: all the rules over the last year. David, just just
Speaker 1: based on your reporting and other stories that you worked on,
Speaker 1: like the beer of Beer of prisons obviously a really
Speaker 1: interesting um place and when that gets grilled a lot,
Speaker 1: and just wondering like, what what other kind of changes
Speaker 1: could you see coming coming from this time there? Um,
Speaker 1: I think I think that um that you know, not
Speaker 1: not only not only you know, as the Bureau of
Speaker 1: Prisons have seen that kind of kind of expanding the
Speaker 1: you know, sort of opening opening the possibilities of home
Speaker 1: confinement to people who are not as far along in
Speaker 1: their sentences. You know. Not not only have they seen
Speaker 1: that that that works, but they've also created like a
Speaker 1: whole new set of criteria. I mean some were associated
Speaker 1: with health risks because of COVID, but other criteria about
Speaker 1: good behavior. So they sort of found kind of a
Speaker 1: new system for kind tracking the way you know, prisoners
Speaker 1: have have responded to their their punishment that you know
Speaker 1: is a is a potential you know, set of guidelines
Speaker 1: for the future. That could allow the Bureau of Prisons
Speaker 1: to kind of determine, you know, which which prisoners might
Speaker 1: be eligible, who's most likely to benefit from home confinement
Speaker 1: and follow all the rules, and you know that that
Speaker 1: system is in place, and you know, could in theory
Speaker 1: be kind of expanded and applied to an even wider
Speaker 1: swath of the population than than we've already seen released
Speaker 1: to home confinement during COVID. And so that's a potentially
Speaker 1: you know, promising set of circumstances for the future. Um
Speaker 1: but it's also all that discussion is kind of on
Speaker 1: bold for now. I just think about crisis that a
Speaker 1: crisis comes innovation, right, and disruption and ways of doing
Speaker 1: it better, and we know the prison system has certainly
Speaker 1: lacked in terms of figuring out a better way. Great stuff,
Speaker 1: as always, David Yaffie bell In a legal over putter
Speaker 1: of Bloomberg News, Joe Webber, editor of Bloomberg Business Week.
Speaker 1: This is Bloomberg Business Week with Carol Masser and Bloomberg
Speaker 1: Quick Takes. Tim Stinovic from Bloomberg. Raidy, We've got a
Speaker 1: few stories for our food crowd. One is about Beyond
Speaker 1: Meat offering up chicken tendees. There we go. I'm so
Speaker 1: glad you sid, I'm learning, I'm learning all dog new
Speaker 1: tricks and another one set way grasping for a lifeline.
Speaker 1: Let's get to it with Bloomberg News consumer reporter Dina Shankar.
Speaker 1: She is on the phone in New York City. Can
Speaker 1: we talk about Beyond Me and what they're up to?
Speaker 1: Of course, alright, always happy we are to tell us
Speaker 1: what they're up to. So they are announcing today that
Speaker 1: they're rolling out a new chicken tender product at restaurants.
Speaker 1: It's hitting just under four hundred restaurants, which is a
Speaker 1: bit of a smaller rollout than we've gotten used to
Speaker 1: with Beyond Me. Um. These chicken tenders are honestly, they're
Speaker 1: more like a big nugget because they're a ground product
Speaker 1: instead of a whole muscle product, which is what we've
Speaker 1: come to expect from you know what. Okay, hold on,
Speaker 1: take a hold on, let's pause the dying. Tell us more, well,
Speaker 1: we should know what they're made of. Fava beans, right,
Speaker 1: not hole muscles. That's okay, there are fava there. Uh,
Speaker 1: the main ingredient and uses fava beans like silence and
Speaker 1: the lambs fava beans. That's all I can think of
Speaker 1: such a great line from a movie first person to say, right,
Speaker 1: it's like a great line in that movie. Okay, anyway,
Speaker 1: go ahead continue. Sorry, So that's fine. So fava beans
Speaker 1: are are change for beyond me that usually UH uses
Speaker 1: P protein as it's primary ingredient, and these also P protein.
Speaker 1: Actually it's in the breading for the tenders. Um. But
Speaker 1: they're made from a base of of fava beans. Um.
Speaker 1: And they are it's called a chop and mold, which
Speaker 1: is another way of just saying like a whoa, sorry,
Speaker 1: there's a thunderstorm happening. I'm sorry, beyond meat or or
Speaker 1: the fava bean bean police coming at your door or something. Yeah.
Speaker 1: So it was. So it's a ground product, which is
Speaker 1: sort of more similar to like a burger essentially, um
Speaker 1: because of it's chopped up and molded into a shape
Speaker 1: as opposed to a whole muscle, which um is. You know,
Speaker 1: it's taste good. It's not what we well, So, have
Speaker 1: you ever had anything that was salty breaded and fried? Yeah,
Speaker 1: it's not going to be so um it taste you know,
Speaker 1: it tastes a good. Um. I had it. They made
Speaker 1: it for me. A chef made it for me in
Speaker 1: a restaurant, so like, you know, it's not something that
Speaker 1: I made at home. Um, it was it was crunchy
Speaker 1: and and you know, oily and and it was like
Speaker 1: bar food. Um, didn't taste like chicken. Well, you know,
Speaker 1: being the reporter that I am, I had to sit
Speaker 1: there and peel the breading away and and try to
Speaker 1: you know, quote unquote me of it. And it was
Speaker 1: it was okay. It had like sort of like a
Speaker 1: slightly chalky texture but it but it was salty too,
Speaker 1: so it wasn't like all the flavor was in the breading. Um,
Speaker 1: there was flavor in there too. Um. But you know
Speaker 1: that I tried their KFC chicken nugget right before the
Speaker 1: pandemic actually, uh January so and that was their second
Speaker 1: now get with KFC, and it was a hole muscle
Speaker 1: and it was really impressive because it had that um
Speaker 1: like fibrous kind of texture that you would get from
Speaker 1: a from a chicken breath. So that's what I was expecting,
Speaker 1: um from this. But it wasn't that it was a
Speaker 1: It was a ground product, which the company incest is
Speaker 1: not a step back for them, though it is a
Speaker 1: lot more technologically difficult to make that whole muscle product.
Speaker 1: They said that this is a better way to reach
Speaker 1: the map, so they no longer offer that whole muscle product, right, Yeah, No,
Speaker 1: that was just a short term KFC. Very briefly, I
Speaker 1: don't want to get to the subway story, but very briefly,
Speaker 1: how important is this to beyond business because chicken is
Speaker 1: the most popular protein in the US. Yeah, I mean
Speaker 1: it seems like it would be important because they have
Speaker 1: you know, they have the beef obviously in the sausage
Speaker 1: and um, chicken is a much bigger opportunity just in
Speaker 1: terms of how much people eat of it. Um. It's
Speaker 1: also you know, it's tougher because there's a lot more
Speaker 1: competition in the plant based chicken market than there was
Speaker 1: in the plant based beef market when they entered, or
Speaker 1: plant based sausage and chicken also comes with it's a
Speaker 1: different it's a different mindset when somebody decides to stub
Speaker 1: in their chicken with a plant based option, because people
Speaker 1: often make that decision for health reason and chicken chicken
Speaker 1: doesn't have that same unhealthy um vibe that a burger does. UM.
Speaker 1: And I have to say these tenders aren't really any
Speaker 1: healthier than a standard chicken tender, so that makes it
Speaker 1: a little bit of a tougher cell too. Yeah. Now
Speaker 1: that's one of the big discussions we often have around
Speaker 1: this table, U is just is it healthier? Um? Hey
Speaker 1: just quickly got about forty five seconds left here subway
Speaker 1: eat fresh refresh. What are they doing? They say they
Speaker 1: are upgrading their ingredients. They are slicing their deli ham
Speaker 1: and their turkey sinner. They're offering new bread. Um. The sandwiches,
Speaker 1: I think, notably will not be getting any bigger, so
Speaker 1: you will still be getting about the same amount of
Speaker 1: me on those sandwiches. Um. You can finally order delivery
Speaker 1: through the app, which um, it's sort of hard to
Speaker 1: believe that you couldn't do until now through this whole pandemic. Um.
Speaker 1: And they are also offering ingredients like avocado and fresh mozzarella.
Speaker 1: So um, that's you know, something kind of perfect music.
Speaker 1: It's like catch it up here is that way with
Speaker 1: the sign of the times? Uh? Dina, that was so
Speaker 1: much fun? Uh, thank you, thank you. Be careful in
Speaker 1: that storm. Dina Shankor Consumer Report Apple bring news on
Speaker 1: the fun from New York City. I'm hungry. Well, you
Speaker 1: can go get somebody's new sandwich. It's the Turkey Kelly
Speaker 1: Fresh sub. Avocado is avocado? Let me see avocado. I'm
Speaker 1: bro macro journal. Yeah, but you let me drive. Oh no, no, no,
Speaker 1: no home, honey, please, I'll do the right drivel exst me.
Speaker 1: I want to dry it. Just drive, baby, it's the
Speaker 1: question trying. This is the drive to the clobe. Gimmu thanks,
Speaker 1: we'll drying us to down. On Bloomberg Radio. Just about
Speaker 1: ten and a half minutes left in today's trading session.
Speaker 1: It is time for the drive to the close. Michael Rosen,
Speaker 1: CEO at Angelus Wealth Management, it's a multi asset investment firm,
Speaker 1: registered investment advisor. He's joining us on the phone in
Speaker 1: Santa Monica, California. Is its sunny there today, Michael, Oh,
Speaker 1: you don't want to know. It's it's look as a
Speaker 1: Californian Carol, I can tell you in the afternoon sunny.
Speaker 1: You know in southern California it's always sunny. Well it's not.
Speaker 1: It's kind of dark here. As a matter of fact,
Speaker 1: I think it's pouring maybe out. It's pretty lousy. The markets, though,
Speaker 1: you know, I think we get a little bit of
Speaker 1: everything today. UH, some negativity certainly early on. We've bounced
Speaker 1: off that loads, but I'm watching and here we are
Speaker 1: with ten minutes to go, and it looks like we're
Speaker 1: taking another leg down. What do you think is the
Speaker 1: psyche of most investors right now and what do you
Speaker 1: think explains the trade today? Well, let's remember that markets
Speaker 1: hit an all time high yesterday. So I think it's
Speaker 1: a little premature to, you know, call the beginning of
Speaker 1: a major bear market at this point. But I think
Speaker 1: if you look back a little bit longer, over the
Speaker 1: last couple of weeks or the last couple of months,
Speaker 1: the market has actually been really quite clear and sending
Speaker 1: a very consistent signal about concerns around future growth. Were
Speaker 1: previous worries that inflation would be spiking out of control
Speaker 1: have really come come back. We're seeing bomb yields that
Speaker 1: have dropped forty basis points or so in the last
Speaker 1: couple of months. UH, and a rotation in the equity
Speaker 1: markets UH, where small cap stocks are now underperforming large
Speaker 1: cap valley stocks underperforming growth stocks. The dollar is a
Speaker 1: little bit stronger. All a very consistent message of anticipating
Speaker 1: a little bit weaker economic growth, less inflation pressures, and
Speaker 1: we're seeing that rotation in the in the markets really
Speaker 1: across across asset classes. What is the one thing that changed?
Speaker 1: Were several things that changed after yesterday's closed, which was
Speaker 1: a record, and what happened this morning. Yeah, I think
Speaker 1: it's it's really as I said, it's it's been a
Speaker 1: bit of a continuation of a recognition that the previous
Speaker 1: concerns of ever higher inflation we're just simply not warranted.
Speaker 1: Uh And the markets were we're mispricing higher inflation. There's
Speaker 1: an argument that markets are now maybe mispricing too low
Speaker 1: inflation going forward. Tender inflation assumptions are now about two
Speaker 1: and a quarter percent. Uh So it's really come down
Speaker 1: quite quite substantially. But your concerns around again be the
Speaker 1: opening of economies around the world as the delta variant
Speaker 1: seems to be spreading, uh so, slower economic growth and
Speaker 1: maybe a recognition although we've we've sort of known this
Speaker 1: that be the rate of economic growth and the rate
Speaker 1: of inflation probably peak the last quarter and it's on
Speaker 1: both are kind of on their way the way down now.
Speaker 1: So I think, you know, today is uh to me
Speaker 1: sort of just consistent message that we've we've had from
Speaker 1: the markets over the last couple of weeks and couple
Speaker 1: of months. Yeah, our Gina Marton Adams, who is so
Speaker 1: smart Bluemberg Intelligence, has followed the markets for a long
Speaker 1: time and she's talks about, you know, the market is
Speaker 1: priced to an existing reality as we know it now,
Speaker 1: like we know where what's happening. We know are things
Speaker 1: are going to bounce off because our bounce up because
Speaker 1: everything fell off a cliff because of the pandemic, and
Speaker 1: so much of that is already priced in. The question
Speaker 1: now is what's next, What's going to be the real
Speaker 1: pace of recovery on the other side of this, what
Speaker 1: happens to inflation? Right, and what happens to FED policy? Yeah,
Speaker 1: that that's a that's a great question, and you know,
Speaker 1: the the really the question that we're we're all looking for.
Speaker 1: I think the next couple of months we're still going
Speaker 1: to see a lot of noise in the data because
Speaker 1: we're still looking at a twelve month period going back
Speaker 1: to the midst of the economic shutdown that we had
Speaker 1: last year. So I think the data will continue to
Speaker 1: be a little bit noisy. We do know that in
Speaker 1: the inflation numbers that that much of the increase in inflation,
Speaker 1: and inflation was running at five percent eurover a year
Speaker 1: just a month ago. A lot of that pressure is
Speaker 1: due to supply constraints, which really is pandemic related. So uh,
Speaker 1: semiconductor chips we we know h are are are in
Speaker 1: short supply, affecting auto prices. We know that a lot
Speaker 1: of the travel agencies, uh, the car rentals and airlines
Speaker 1: shut down a lot of their capacity. Uh. And now
Speaker 1: there's there's been a surgeon demand they haven't been able
Speaker 1: to meet that. So prices are we know that that
Speaker 1: will abate over over time. So a lot of the
Speaker 1: pressures you are coming down. Look at lumber another good example. Uh.
Speaker 1: You know, lumber doubles in the first couple of months
Speaker 1: of this year and is down from its high back
Speaker 1: in early May. So uh, and again due to supply
Speaker 1: constraints in lumber mills was what drove the prices up,
Speaker 1: and now they're coming back down again. So a lot
Speaker 1: of this we know are due to temporary factors and
Speaker 1: inflation coming back down. The longer term question for investors again,
Speaker 1: we won't really see this over the next couple of months.
Speaker 1: But as we look at over the next couple of years,
Speaker 1: is you know what will FED policy be with respect
Speaker 1: to any inflation pressures that we do see. The FED
Speaker 1: wants higher inflation my senses, they probably will will get it.
Speaker 1: And so it's it's at the moment that there's a
Speaker 1: lot of noise in the in the data, a lot
Speaker 1: of that will will go away over the next couple
Speaker 1: of months and will first settle into a maybe a
Speaker 1: clearer pattern. Okay, so that's the that's your outlook, and
Speaker 1: I'm wondering how it manifests itself in portfolio recommendations that
Speaker 1: you have for your clients right now? How are you
Speaker 1: thinking about asset allocation, stocks and bonds. Yeah, it's a
Speaker 1: great it's a great question. So, um, if you you'll
Speaker 1: think about the the winners in an environment of very
Speaker 1: sluggish economic growth and u and very low or no inflation,
Speaker 1: those are long duration assets, so growth equities, long term
Speaker 1: government bonds the big winners in that kind of environment,
Speaker 1: the environment that we saw for most of the previous decade,
Speaker 1: in an environment where growth perhaps could be a little
Speaker 1: bit stronger, inflasion pressures a little bit higher. You want
Speaker 1: a short, shorter duration assets, so that means, you know,
Speaker 1: bring the duration down in fixed income, UH, favoring credit
Speaker 1: over over government bonds. UH and looking more at at
Speaker 1: value companies, value stocks relative to just long duration growth stocks.
Speaker 1: And in terms of fixed income, what would be your
Speaker 1: play here, Well, we're really over right high yield really
Speaker 1: and and and and all structured credit really to capture
Speaker 1: that yield. We've had a view that the default cycle
Speaker 1: peak last year UH, and in fact has been coming down. Uh.
Speaker 1: There's been tremendous fiscal and monetary support has been very
Speaker 1: very accommodated, and I don't see an increasemento false cycle
Speaker 1: anytime soon, which means, uh, we can clip the higher yields.
Speaker 1: Even though they're at record lows. There's still much higher
Speaker 1: yields in credit and structured credit than that we can
Speaker 1: get in government bonds, which really to me make no
Speaker 1: sense at all or for long term investors. Really yield
Speaker 1: that is, the yield after inflation are negative and government
Speaker 1: bobs and so guaranteed to lose purchasing power over time,
Speaker 1: they don't make any sense as a long term investment.
Speaker 1: All Right, we're gonna leave there Hey Michael. Good to
Speaker 1: get some time with you. Michael Rose and he's co
Speaker 1: founder in chief investment officer at Angelist Wealth Management, joining
Speaker 1: us on the phone from Santa Monica, California. Thanks for
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