WEBVTT - Bloomberg Businessweek Weekend - August 6th, 2021 0:00:01.040 --> 0:00:05.400 This is Bloomberg Business Week inside from the reporters and 0:00:05.600 --> 0:00:09.200 editors who bring you America's most trusted business magazine, plus 0:00:09.240 --> 0:00:13.200 global business finance and tech news as it happened. Sloomberg 0:00:13.240 --> 0:00:16.759 Business Week with Carol Massier and Bloomberg Quick Takes. Tim 0:00:16.800 --> 0:00:21.279 Stinovic on Bloomberg Radio. Welcome to the weekend edition of 0:00:21.360 --> 0:00:24.239 Bloomberg Business Week. I'm Tim Stanovic and I'm Paul Sweeney 0:00:24.280 --> 0:00:26.599 in for Karrol Master this week, Paul, another week of 0:00:26.640 --> 0:00:30.080 earnings reports behind us, and well, the majority have been positive. 0:00:30.120 --> 0:00:32.839 There are some economic growth fears that have been emerging. Wee. 0:00:33.040 --> 0:00:35.720 We've also been hearing this week from most of companies 0:00:36.200 --> 0:00:39.639 with guidance UH that has been disappointing, and we've seen 0:00:39.680 --> 0:00:42.360 as a result their stock falling. Exactly right. I think 0:00:42.360 --> 0:00:45.479 there's concerns about the next phase of the COVID nineteen pandemic, 0:00:45.560 --> 0:00:47.760 the delta variant, and I think it's all about the kids. 0:00:47.760 --> 0:00:51.239 Now more than seventy eligible US recipients have had at 0:00:51.280 --> 0:00:54.240 least one vaccine dose. That's a good news, but millions 0:00:54.240 --> 0:00:57.760 of children are preparing to return to classrooms across the country, 0:00:58.120 --> 0:01:01.640 and there's uncertainty over mask mandates and inoculation requirements for 0:01:01.800 --> 0:01:05.039 younger students, particularly those kids under the age of twelve. Yeah, 0:01:05.040 --> 0:01:07.640 we're also starting to see a playout with returns to office, 0:01:07.680 --> 0:01:11.680 with companies this week delaying September returns to office and 0:01:11.959 --> 0:01:14.520 some saying Okay, we're gonna wait and see, and some 0:01:14.520 --> 0:01:17.160 companies saying okay, well we'll wait a month. So things 0:01:17.200 --> 0:01:19.600 are not really going according to plan. We're gonna get 0:01:19.600 --> 0:01:22.560 into that, both on the education and medical perspective. We're 0:01:22.560 --> 0:01:24.760 also going to pull back the curtain on Beijing's ongoing 0:01:24.840 --> 0:01:28.280 tech crackdown to understand why that Chinese government is coming 0:01:28.319 --> 0:01:30.880 down so hard on its innovators. We're also going to 0:01:30.959 --> 0:01:33.840 talk to sim Bridge CEO Michael McGuire. This was a 0:01:33.880 --> 0:01:37.000 fun one. It's a digital asset exchange fund that's actually 0:01:37.080 --> 0:01:40.880 embracing cryptocurrency regulations and trying to get more of those 0:01:40.920 --> 0:01:44.160 institutional investors. Oh, that's to come. We begin with the 0:01:44.200 --> 0:01:47.560 magazine's cover story. The new issue of Bloomberg Business Wig magazine. 0:01:47.560 --> 0:01:50.440 It is available on newsstands now and at Bloomberg dot 0:01:50.480 --> 0:01:53.480 com Slash Business Week. The cover story, it's all about 0:01:53.600 --> 0:01:57.040 vaccine mandates for kids? Is it the next big back 0:01:57.040 --> 0:02:00.360 to school fight. Children have to get vaccinated for surgeent 0:02:00.440 --> 0:02:03.360 threats and it works, So why not with COVID? That's 0:02:03.400 --> 0:02:05.600 the big question. Joining us now is Joel Weber, editor 0:02:05.840 --> 0:02:08.600 at Bloomberg Business Week, Riley Griffin, his healthcare reporter for 0:02:08.720 --> 0:02:11.080 Bloomberg News. Joel, I want to start with you. I 0:02:11.120 --> 0:02:14.799 was really surprised to see the lack of vaccine uptake 0:02:15.080 --> 0:02:19.320 in kids who are ages twelve to seventeen only have 0:02:19.400 --> 0:02:23.840 received their first dose. What why is that? Yeah, there's definitely, um, 0:02:23.919 --> 0:02:27.040 a sense of of apathy and it has it's going 0:02:27.080 --> 0:02:31.640 to have some um, serious implications, I think, UM in 0:02:31.680 --> 0:02:34.120 the next weeks and months, especially as we're dealing with 0:02:34.160 --> 0:02:37.560 this delta surge. You know that apathy is it's sort 0:02:37.560 --> 0:02:40.640 of multifaceted and and some of that we go into 0:02:40.720 --> 0:02:44.880 in the story. Um. The fact that kids haven't been 0:02:44.960 --> 0:02:48.200 quite as susceptible yet is to COVID is I think 0:02:48.240 --> 0:02:51.680 one of the driving reasons. UM. There's also I think 0:02:52.240 --> 0:02:57.240 a feeling that the vaccines currently have emergency youth authorization, 0:02:57.320 --> 0:03:01.560 So I think there's still some vaccine hesitancy or around it. UM. 0:03:01.800 --> 0:03:04.600 And we've seen you know, other countries even take slightly 0:03:04.600 --> 0:03:07.519 different approaches to how kids are supposed to be vaccinated. 0:03:07.520 --> 0:03:10.040 So I think they're that all creates a little bit 0:03:10.080 --> 0:03:15.200 of a fog that has um led to a slow adoption. 0:03:15.680 --> 0:03:19.800 And I think where Riley and Susie King King story 0:03:19.840 --> 0:03:24.000 goes here is an important one because as we're just 0:03:24.040 --> 0:03:27.919 seeing now with New York mandating vaccines for for restaurants, 0:03:27.960 --> 0:03:30.720 for instance, in the not so distant future, we could 0:03:30.800 --> 0:03:34.320 very easily see schools mandating vaccines. And one of the 0:03:34.360 --> 0:03:38.360 main questions that um, Riley, I'd like you to oppose 0:03:38.440 --> 0:03:40.680 to you is, you know, look like kids get vaccinated 0:03:40.680 --> 0:03:42.920 for all sorts of things that are far less urgent 0:03:42.960 --> 0:03:49.200 than COVID. So could we potentially see schools mandating COVID immunization. Absolutely, 0:03:49.240 --> 0:03:51.320 I mean, I think that's a great question, and it's 0:03:51.760 --> 0:03:54.800 one that we've seen play out, and there's precedent four. 0:03:55.320 --> 0:03:57.520 I mean, educators are having a debate on their hands 0:03:57.600 --> 0:04:00.360 right now as to whether to implement mandates and COVID 0:04:00.440 --> 0:04:04.960 nineteen vaccines as they routinely do for measle, polio and 0:04:05.040 --> 0:04:07.920 other diseases, or to punt because of politics and let 0:04:07.960 --> 0:04:12.160 parents decide. This has really become so political, UM, in 0:04:12.200 --> 0:04:15.520 part because of that emergency use authorization that you described. 0:04:15.880 --> 0:04:19.000 But once there's a full approval in place, I have 0:04:19.200 --> 0:04:23.200 no doubt that schools um at the request of states, 0:04:23.240 --> 0:04:27.080 are going to put similar requirements in place. UM. This 0:04:27.160 --> 0:04:29.320 is really just a part of the bedrock of our 0:04:29.480 --> 0:04:34.400 education system, and any parent listening knows that to be true. UM. 0:04:34.440 --> 0:04:37.800 And these mandates persist even though they've been so successful 0:04:37.880 --> 0:04:40.400 that the risk of contracting some of the illnesses they 0:04:40.400 --> 0:04:42.919 cover is almost non existent. You know, what I like 0:04:43.000 --> 0:04:45.960 to put in perspective is that the last US case 0:04:46.000 --> 0:04:49.880 of polio dates back to and yet all fifty states 0:04:49.920 --> 0:04:53.839 in the District of Columbia require kids to get vaccinated 0:04:53.839 --> 0:04:57.200 with a polio shot before going to school. Riley, You know, 0:04:57.960 --> 0:05:00.600 I fear that this is going to get really, really 0:05:00.720 --> 0:05:04.039 ugly and really personal and really localized. Do we have 0:05:04.279 --> 0:05:06.640 any evidence or do we have any precedent here for 0:05:07.480 --> 0:05:10.280 a COVID nineteen requirement, because we've got a lot of 0:05:10.279 --> 0:05:12.680 states I'm thinking in the South and the West, they're 0:05:12.720 --> 0:05:14.360 going back to school. If they're they're not already back, 0:05:14.400 --> 0:05:17.119 they're going back in the next week or two. Yeah, 0:05:17.240 --> 0:05:20.240 So what we have right now is a legal vacuum 0:05:20.480 --> 0:05:24.440 because we've never seen before a mandate put in place 0:05:24.520 --> 0:05:28.080 for an emergency use authorized vaccine. That's not to say 0:05:28.160 --> 0:05:31.719 states can't do it. They are just a little hesitant 0:05:31.839 --> 0:05:35.240 to wade out into those tumultuous waters. But let me 0:05:35.279 --> 0:05:37.800 take you back into history for a moment, because in 0:05:38.000 --> 0:05:42.279 nineteen o five, the U. S. Supreme Court ruled to 0:05:42.440 --> 0:05:49.279 say that mandates are allowed, that states can require vaccination, 0:05:50.000 --> 0:05:54.200 and that individual liberties are not absolute, that the average 0:05:54.240 --> 0:05:57.280 person cannot say, hey, in the face of a public 0:05:57.279 --> 0:06:01.159 health pandemic, we are going to reject a vaccine mandate. 0:06:01.720 --> 0:06:05.360 And the first mandate actually for school kids goes back 0:06:05.360 --> 0:06:08.240 even further to eighteen fifty five. So there's a great 0:06:08.279 --> 0:06:12.320 deal of precedent um schools themselves to know that this 0:06:12.440 --> 0:06:15.839 could likely be coming. I've spoken with many administrators who 0:06:15.920 --> 0:06:18.480 said they're just waiting to get more parents on board. 0:06:18.760 --> 0:06:21.600 They want to bolster trust and confidence, especially while we 0:06:21.680 --> 0:06:24.520 still have that EU A status that was US Health 0:06:24.520 --> 0:06:27.400 Reporter Riley Griffin, also the editor of Bloomberg business Week. 0:06:27.480 --> 0:06:29.920 Joe Weber coming up more on this important issue from 0:06:29.960 --> 0:06:32.600 someone on the front lines. Dr Elizabeth Mead of Swedish 0:06:32.640 --> 0:06:35.680 Health Services in Seattle on the progress being made toward 0:06:35.720 --> 0:06:39.080 getting young children safely vaccinated against COVID. You're listening to 0:06:39.120 --> 0:06:50.360 Bloomberg Business Week. This is Bloomberg. This is Bloomberg Business 0:06:50.480 --> 0:06:54.480 Week with Bloomberg Quick Tags, Tim Stenovac and Paul Sweeney 0:06:54.760 --> 0:06:59.240 from Bloomberg Radio. Okay, it's all about when you think 0:06:59.240 --> 0:07:01.760 about the narrative of this pandemic, how it's evolved, how 0:07:01.760 --> 0:07:04.120 it's had an arc since the beginning. I think now 0:07:04.120 --> 0:07:06.560 where we are in the narrative is the delta variant 0:07:06.640 --> 0:07:11.240 and vaccinations, getting people vaccinated, geting who vaccinated, how young, 0:07:11.320 --> 0:07:14.880 how old? Uh, it's now turning towards the very youngest. 0:07:14.920 --> 0:07:16.800 We think about getting back to school, and there's lots 0:07:16.840 --> 0:07:19.560 of discussions and arguments to be made on both sides. 0:07:19.640 --> 0:07:23.040 Dr Elizabeth Me joins us. She's medical director of Pediatric 0:07:23.120 --> 0:07:26.640 Quality and Safety at the Swedish Health Services, joining us 0:07:26.680 --> 0:07:29.640 on the phone from Seattle. Uh. Dr Me, thanks so 0:07:29.720 --> 0:07:31.720 much for joining us here. I guess you know, lots 0:07:31.760 --> 0:07:33.800 of parts of the country are just about going back 0:07:33.840 --> 0:07:37.240 to school, and know California starts a week from monday. Uh. 0:07:37.280 --> 0:07:38.800 Here on the East coast, it's it's right after a 0:07:38.880 --> 0:07:41.720 labor day. But the discussion is who should get vaccinated 0:07:41.720 --> 0:07:43.400 as we think about back to school? Should we be 0:07:43.400 --> 0:07:47.600 should we be getting kids vaccinated? And how young? You know, 0:07:47.680 --> 0:07:50.920 I think absolutely. What we recommend is that kids twelve 0:07:50.920 --> 0:07:53.120 and over who are eligible for the vaccine get the 0:07:53.160 --> 0:07:55.480 vaccine and get it. You know. The reality is that 0:07:55.520 --> 0:07:58.320 it takes several weeks between a couple of doses and 0:07:58.360 --> 0:08:00.840 man fual immunity two weeks after that second dose. And 0:08:00.880 --> 0:08:03.200 so for many kids who haven't gotten the vaccine yet, 0:08:03.400 --> 0:08:05.920 we're already sort of talking about post going back to 0:08:05.960 --> 0:08:09.760 school dates for them to be fully fully protected. The 0:08:09.840 --> 0:08:12.760 cover of the new issue of Bloomberg Business Week, it's 0:08:12.760 --> 0:08:15.520 all about vaccine mandates for kids, and there's some pretty 0:08:15.520 --> 0:08:19.760 startling uh statistic in here. Uh the rollout of shots 0:08:19.800 --> 0:08:23.600 to millions of kids ages twelve to seventeen. Although they 0:08:23.640 --> 0:08:26.600 account for seven point five percent of the U S population, 0:08:27.040 --> 0:08:31.960 it's really lagged only of that group has received their 0:08:32.000 --> 0:08:36.360 first dose. Uh. Why is that doctor made? Why are 0:08:36.400 --> 0:08:39.959 we seeing this reluctance from parents to inoculate their kids 0:08:39.960 --> 0:08:43.520 when uh, we think about vaccines in the early parts 0:08:43.520 --> 0:08:46.679 of our lives. That's when we get the most vaccines. Yeah, 0:08:46.720 --> 0:08:48.160 that's right, you know. I think there are a couple 0:08:48.200 --> 0:08:50.440 of factors that play into that. And so one of 0:08:50.440 --> 0:08:52.600 those factors, I think is that we know that older 0:08:52.640 --> 0:08:55.559 adults tend to get sicker, right, and so we know 0:08:55.679 --> 0:08:58.000 that although kids can get very thick, can end up 0:08:58.000 --> 0:08:59.679 in the i C. You can die from COVID and 0:08:59.760 --> 0:09:02.080 have long COVID and all those other complications that we 0:09:02.160 --> 0:09:04.800 think about, the rates of that happening in children and 0:09:04.880 --> 0:09:07.560 teens are significantly lower than an older adults. And so 0:09:07.600 --> 0:09:10.200 I think that for many people who are high risk, 0:09:10.559 --> 0:09:12.480 you know, they want to get the vaccine for themselves 0:09:12.520 --> 0:09:15.199 as soon as possible, and they may think differently about 0:09:15.200 --> 0:09:17.080 it when it comes to their kids. I think the 0:09:17.120 --> 0:09:19.120 other factor here is that we know it's hard to 0:09:19.120 --> 0:09:21.360 make a health care decision for yourself, and it's even 0:09:21.400 --> 0:09:23.920 harder to make it for someone else, and so people 0:09:23.960 --> 0:09:26.079 I think are feeling like they want to make sure 0:09:26.080 --> 0:09:29.160 they have all of their questions before they proceed with 0:09:29.240 --> 0:09:32.040 vaccines for their children. Dr me, what do we know 0:09:32.320 --> 0:09:36.959 about how young we can we can give this vaccine 0:09:37.000 --> 0:09:39.120 to a person? How young can they be mentioned twelve 0:09:39.120 --> 0:09:41.520 and older, how about some of the younger kids. Yeah, 0:09:41.520 --> 0:09:43.520 so at this point it's approved for twelve and over, 0:09:43.600 --> 0:09:46.000 we anticipate that it will be approved for younger children, 0:09:46.040 --> 0:09:48.920 probably down to age five, potentially down to age two, 0:09:49.280 --> 0:09:51.160 by kind of early to mid fall, And I know 0:09:51.200 --> 0:09:53.480 that a lot of parents are desperately waiting for those 0:09:53.559 --> 0:09:56.560 dates to get their younger children vaccinated. And the reality 0:09:56.559 --> 0:09:58.720 of this pandemic is that I think even for families 0:09:58.720 --> 0:10:01.480 where everyone who's eligible we have had the vaccine, so 0:10:01.559 --> 0:10:03.920 everybody twelve and older and then the adults in the household, 0:10:04.200 --> 0:10:06.760 many of those families still have younger children who are 0:10:06.800 --> 0:10:08.640 not yet eligible. And so I think it's hard to 0:10:08.679 --> 0:10:10.640 sort of feel like we can get back to life 0:10:10.880 --> 0:10:13.960 as normal for our families when we still have one 0:10:14.080 --> 0:10:16.600 or more young children that aren't yet able to get 0:10:16.640 --> 0:10:19.520 the vaccine who are living in our houses. Doctor. Back 0:10:19.559 --> 0:10:23.480 in May, Dr Fauci, the nation's top infectious disease doctor, 0:10:23.600 --> 0:10:26.360 he said that by the first quarter of two, we're 0:10:26.400 --> 0:10:30.679 going to have quote enough information regarding safety and immunogenicity 0:10:30.920 --> 0:10:33.800 to be able to vaccinate children at any age. Do 0:10:33.880 --> 0:10:36.280 you agree with that timeline that in the first part 0:10:36.280 --> 0:10:40.360 of next year, we're going to be able to vaccinate newborns. Yeah, 0:10:40.400 --> 0:10:42.400 I think that rings true for the most part. I mean, 0:10:43.240 --> 0:10:45.760 we know that there are ongoing trials down to age 0:10:45.800 --> 0:10:48.199 six months for multiple of the vaccines, and so we 0:10:48.280 --> 0:10:50.720 anticipate having quite a bit of safety data even down 0:10:50.720 --> 0:10:54.360 to unions. And I would guess that it will be 0:10:54.520 --> 0:10:56.240 very similar to the flu shot, and so for the 0:10:56.240 --> 0:10:58.760 flu shot, we start giving that at six months and older. 0:10:58.840 --> 0:11:01.199 So I'm not really convinced that we're going to be 0:11:01.280 --> 0:11:03.800 vaccine new borns against COVID anytime soon, but I think 0:11:03.800 --> 0:11:06.240 those young infants kind of six months and older will 0:11:06.280 --> 0:11:07.920 certainly be in the next way. What do we know 0:11:07.920 --> 0:11:10.320 about dosage? I was surprised when when my son got 0:11:10.360 --> 0:11:12.480 his first flu shot that he got two of them 0:11:12.760 --> 0:11:15.480 separated a few months apart, whereas I only got one, 0:11:15.640 --> 0:11:17.880 and it was like he got double dosage basically, So 0:11:18.000 --> 0:11:20.720 for that first year, for any child who's seven or younger, 0:11:20.760 --> 0:11:23.000 for that first year, we recommend getting two doses a 0:11:23.080 --> 0:11:25.920 month apart to really kind of stimulate the immune system 0:11:25.920 --> 0:11:28.920 because for many vaccines, that first sort of primed you, 0:11:28.920 --> 0:11:31.200 and then that second doses really what confers the full 0:11:31.240 --> 0:11:34.200 immunity and after that we consider that yearly dose sort 0:11:34.200 --> 0:11:36.040 of a booster, and so it may be the same 0:11:36.120 --> 0:11:38.800 with with COVID. You know, we're already talking about potentially 0:11:38.800 --> 0:11:41.400 having boosters for high risk groups that have already received 0:11:41.440 --> 0:11:43.520 the two vaccine series, so I think it will be 0:11:43.559 --> 0:11:46.000 probably fairly similar to that. Dr me just quickly, do 0:11:46.000 --> 0:11:49.240 you think schools will mandate vaccinations. I don't see that 0:11:49.320 --> 0:11:52.440 happening personally until they help full FDA approval for the 0:11:52.440 --> 0:11:54.360 age groups that we're talking about, and so I think 0:11:54.360 --> 0:11:56.280 at that point we can really have that discussion. But 0:11:56.480 --> 0:11:58.800 in my mind, it is unlikely to happen until we 0:11:58.920 --> 0:12:00.920 reached that milestone, and hopefully that will be in the 0:12:00.960 --> 0:12:04.160 next few months. Dr mead, we like talking to people 0:12:04.160 --> 0:12:06.760 who are in hospitals, who are on the ground, who 0:12:06.800 --> 0:12:08.800 are talking to patients, who are working with patients, just 0:12:08.840 --> 0:12:11.240 to get an update from the front lines. Are you 0:12:11.280 --> 0:12:13.920 seeing younger and younger patients in your hospital than at 0:12:13.960 --> 0:12:16.320 other points during the pandemic? We really are, you know. 0:12:16.400 --> 0:12:18.559 I'm a I'm a hospital pedatrician, so I only work 0:12:18.600 --> 0:12:20.920 in a hospital. I see newborns up to eighteen who 0:12:20.960 --> 0:12:23.120 are sick, who are hospitalized. And I will tell you 0:12:23.160 --> 0:12:26.600 that throughout the pandemic, although the rates are lower than 0:12:26.679 --> 0:12:30.280 in adults and especially older adults, we have seen young infants, 0:12:30.360 --> 0:12:33.079 kids and teens who are hospitalized who are very ill 0:12:33.120 --> 0:12:35.559 with COVID, who are in the ICU, kids who are 0:12:35.559 --> 0:12:38.520 having long COVID symptoms. So although the rates are lower, 0:12:38.559 --> 0:12:41.280 I think it's really important to reinforce for people this 0:12:41.320 --> 0:12:43.920 is still a disease that can cause really critical illness 0:12:44.040 --> 0:12:46.760 in newborns all the way through those those children and 0:12:46.840 --> 0:12:49.640 teenage years. So Dr Me, what are when you do 0:12:49.679 --> 0:12:53.559 see these patients and you know, are most of them unvaccinated? 0:12:53.640 --> 0:12:56.520 And if so, what are some of the typical reasons 0:12:56.640 --> 0:12:59.680 that you're finding uh in your hospital? You know, the 0:12:59.679 --> 0:13:02.160 majority of patients that are showing up to the hospital 0:13:02.200 --> 0:13:03.640 that are very sick, that are ending up in the 0:13:03.760 --> 0:13:06.480 ICU with the Delta variant in particular, are on vaccinated. 0:13:06.559 --> 0:13:08.720 So we know that the vast majority of those statients 0:13:08.760 --> 0:13:11.199 have not received the vaccine. And I think that's such 0:13:11.240 --> 0:13:14.160 an important point because we know that although people who 0:13:14.320 --> 0:13:18.079 are vaccinated can transmit the Delta variant, they are vastly 0:13:18.160 --> 0:13:20.360 less likely to end up with severe symptoms in the 0:13:20.400 --> 0:13:23.319 hospital in the I CU or to die from COVID. Right, So, 0:13:23.360 --> 0:13:25.360 what we're seeing across the country is that it seems 0:13:25.360 --> 0:13:27.679 to be the skewing now to younger people who are 0:13:27.720 --> 0:13:30.480 not vaccinated, so teens and all wo young adults, to 0:13:30.520 --> 0:13:33.200 people in their twenties and thirties who have not received 0:13:33.200 --> 0:13:35.280 the vaccine who are ending up in the hospital and 0:13:35.280 --> 0:13:37.320 who are very, very very sick from the delta variant 0:13:37.360 --> 0:13:40.640 in particular. Talk to me just in the last seconds 0:13:40.679 --> 0:13:42.560 that we have, what do you tell parents who come 0:13:42.600 --> 0:13:44.679 to you concerned that their kids under twelve can't yet 0:13:44.679 --> 0:13:47.280 be vaccinated and they're concerned about them actually getting COVID. 0:13:47.640 --> 0:13:49.839 I have so many parents who have that concern, who 0:13:49.840 --> 0:13:51.760 are just desperate for the vaccine to be approved for 0:13:51.800 --> 0:13:53.520 their younger children. We have a six year old in 0:13:53.520 --> 0:13:56.240 my house who's not yet eligible, who can't wait until 0:13:56.320 --> 0:13:58.440 he's able to get the vaccine. And I think that's 0:13:58.440 --> 0:14:00.640 actually the majority of parents that I is who are 0:14:00.679 --> 0:14:03.199 really saying, you know, the older kids are vaccinated, or 0:14:03.240 --> 0:14:05.800 I'm vaccinated, I just can't wait until my younger kids 0:14:05.840 --> 0:14:07.560 can get this so that we can really feel like 0:14:07.600 --> 0:14:10.200 our whole bottle and our whole family is protected, and 0:14:10.280 --> 0:14:12.240 my great hope is that that will happen really within 0:14:12.280 --> 0:14:14.600 the next couple of months. That was Dr Elizabeth Mead. 0:14:14.679 --> 0:14:17.719 She's the medical director of Pediatric Quality and Safety at 0:14:17.720 --> 0:14:21.160 Swedish Health Services. She joined us from the Emerald City. 0:14:21.320 --> 0:14:23.720 Still ahead on Bloomberg Business Week, we'll shift gears and 0:14:23.760 --> 0:14:26.000 take a look at the housing market and it is 0:14:26.080 --> 0:14:28.680 a great time to be a seller where the buyers 0:14:28.680 --> 0:14:31.880 are flocking and what it means for our major urban centers. Yeah, 0:14:31.920 --> 0:14:33.800 perhaps not a great time to be a buyer as 0:14:33.800 --> 0:14:36.480 prices just continue to go up. We're gonna be speaking 0:14:36.480 --> 0:14:39.920 to Compass real Estate founding agent Stephanie Malius. This is 0:14:39.960 --> 0:14:47.680 Bloomberg Broadcasting from the financial capital of the World, Bloomberg 0:14:47.800 --> 0:14:50.560 Eleve in Rio in New York to Washington, d C. 0:14:50.760 --> 0:14:55.479 Bloomberg to Boston, Bloomberg one O six one does San Francisco, 0:14:55.560 --> 0:14:59.000 Bloomberg nine sixty to the country Sirius xm CHEDO one 0:14:59.040 --> 0:15:01.720 nine team and a on the globe, the Bloomberg Business 0:15:01.800 --> 0:15:05.560 app in Bloomberg Radio dot com. This is Bloomberg Business 0:15:05.680 --> 0:15:09.800 Week with Bloomberg Quick Takes, Tim stinebec and Paul Sweeney 0:15:09.920 --> 0:15:13.040 from Bloomberg Radio. So something that happened to me in 0:15:13.040 --> 0:15:15.400 my own world in the last year, Paul has been 0:15:15.840 --> 0:15:19.760 that several friends have left New York City and gone 0:15:19.760 --> 0:15:22.360 to the suburbs. One did it much sooner than the other. 0:15:22.480 --> 0:15:24.640 The other one they both bought in White Plains, had 0:15:24.640 --> 0:15:27.200 the toughest time you have finding a place. They were 0:15:27.200 --> 0:15:31.160 getting outbid every weekend by people going all cash, all 0:15:31.240 --> 0:15:33.320 young families who wanted to leave New York City and 0:15:33.360 --> 0:15:36.320 get more spaces. More and more people are working from home. Yeah, 0:15:36.400 --> 0:15:39.360 it's just extraordinary. We you know, we just sold our 0:15:39.440 --> 0:15:42.120 our home in North Jersey and it sold very quickly, 0:15:42.160 --> 0:15:46.200 and it just confirmed the really really strong market out 0:15:46.240 --> 0:15:49.160 there for a residence for sellers. Yes, it's a right 0:15:49.160 --> 0:15:51.560 time to be a sellable. Well, let's get right to 0:15:51.600 --> 0:15:54.440 it with Stephanie Malio's realtor and founding agent at Compass 0:15:54.520 --> 0:15:57.640 Real Estate in Short Hills, New Jersey. Stephanie, was that 0:15:57.680 --> 0:16:00.240 a fair characterization of the way that you're seeing the 0:16:00.280 --> 0:16:03.960 market right now in the suburbs. And absolutely that's exactly 0:16:04.000 --> 0:16:09.920 what we've been experiencing in this area. South Orange, Maplewood, Summit, Livingston, Chatham, 0:16:10.120 --> 0:16:14.320 all all the counties Essex Morris Union counties have all 0:16:14.360 --> 0:16:19.080 seen a tremendous amount of activity from people kind of 0:16:19.160 --> 0:16:22.160 accelerating their timeline on maybe they were going to move 0:16:22.240 --> 0:16:27.640 in three to five years and now they're moving right now. So, Stephanie, 0:16:27.720 --> 0:16:29.040 I want to get a sense of kind of some 0:16:29.080 --> 0:16:31.960 of the drivers here. I guess it's it's some combination 0:16:32.080 --> 0:16:36.160 of boy historically low interest rates and in the mortgage market, 0:16:36.520 --> 0:16:39.240 plus the pandemic, and then the need for space and 0:16:39.240 --> 0:16:41.520 people rethinking working from home and all of that. So 0:16:41.560 --> 0:16:44.520 as you talk to your clients, what are you hearing 0:16:44.560 --> 0:16:47.320 as the primary driver. Well, for a lot of them, 0:16:47.320 --> 0:16:49.360 they've been working from home, but if they have kids, 0:16:49.360 --> 0:16:52.360 they've also been schooling from home, and that is really 0:16:52.480 --> 0:16:55.480 sort of untenable in a one or two better apartment 0:16:55.520 --> 0:16:58.400 with two adult parents working from home and one or 0:16:58.440 --> 0:17:00.960 two kids schooling from home. So it's not possible. I mean, 0:17:01.080 --> 0:17:04.800 it's possible, but it's not fun. One of the challenges though, 0:17:04.880 --> 0:17:07.440 that comes with such a hot market is the people 0:17:07.480 --> 0:17:10.760 who are selling needs somewhere else to go. And I 0:17:10.840 --> 0:17:14.760 wonder when prices just get so high. As they've continued 0:17:14.800 --> 0:17:17.879 to climb that people who do want to move somewhere 0:17:17.880 --> 0:17:21.280 else and already own, they are priced out of their 0:17:21.320 --> 0:17:24.920 own area because prices have gone up so much. That's 0:17:24.960 --> 0:17:29.040 absolutely happening here. But there's been a huge growth of 0:17:29.160 --> 0:17:32.920 luxury apartment rentals built in the region. Um, anywhere where 0:17:32.920 --> 0:17:35.879 you could sort of stick a hundred or two hundred 0:17:35.960 --> 0:17:40.040 units in a little funny area. UM, people are building 0:17:40.080 --> 0:17:43.919 them and here they are, they're ready. So UM number 0:17:43.920 --> 0:17:47.760 of people in certain generations that would never have considered 0:17:47.760 --> 0:17:50.680 renting because it's just sort of against the law to 0:17:50.760 --> 0:17:54.600 rent and pay somebody else's mortgage. Um, that mindset has 0:17:54.680 --> 0:17:57.240 changed quite a bit, especially when the tax flaw has 0:17:57.359 --> 0:17:59.000 change and you could no longer write off more than 0:17:59.000 --> 0:18:01.720 ten tho dollars or you're property tax and in this 0:18:01.960 --> 0:18:08.360 area red please yeah no kidding me too. So they're like, 0:18:08.440 --> 0:18:10.200 you know, let's just take our money off the table. 0:18:10.359 --> 0:18:11.920 We'll just rent for a year or two. I was 0:18:11.960 --> 0:18:14.440 just with somebody who's scaling down from a four million 0:18:14.440 --> 0:18:16.800 dollar house in Shorthills, thinking they'll rent for a year 0:18:16.840 --> 0:18:21.040 and see what happens, and maybe they'll buy something smaller 0:18:21.080 --> 0:18:24.720 and renovated, or maybe they'll relocate. They don't know, but 0:18:24.800 --> 0:18:27.399 they like the fact that they can be liquid and 0:18:27.480 --> 0:18:30.360 act quick when they're ready. Stephanie, what do you think 0:18:30.440 --> 0:18:35.000 would or will derail this hot market? Well, interest rates 0:18:35.040 --> 0:18:38.359 going up doesn't help, but often that stimulates people to 0:18:38.600 --> 0:18:42.440 act because funny enough is interest rates stay very low, 0:18:42.640 --> 0:18:45.439 or when they're declining, everyone thinks they have all the 0:18:45.440 --> 0:18:48.080 time in the world to find something, and when they 0:18:48.119 --> 0:18:50.000 go back up, that's when they realized they missed the 0:18:50.000 --> 0:18:52.800 bottom and oh they better scramble and get in. So 0:18:53.320 --> 0:18:58.040 sometimes having low interest rates doesn't spur activity. But in 0:18:58.080 --> 0:19:01.719 this time period with school about to start, anyone with 0:19:01.840 --> 0:19:03.840 children going into school this year, they want to make 0:19:03.840 --> 0:19:05.399 sure that because are going to be in a seat, 0:19:06.000 --> 0:19:09.879 and that's not necessarily guaranteed in the suburbs, but I 0:19:09.920 --> 0:19:12.120 think a lot of people think there's a better likelihood 0:19:12.440 --> 0:19:14.520 that they'll be in a seat in a classroom with 0:19:14.560 --> 0:19:17.920 a live teacher in these kind of areas where schools 0:19:17.920 --> 0:19:21.639 have always been very highly prized and focused on. You 0:19:21.680 --> 0:19:24.760 mentioned a lot of areas that have been of interest 0:19:24.800 --> 0:19:27.240 to a lot of people for years. I'm wondering, are 0:19:27.280 --> 0:19:30.520 there areas now that people should be paying attention to 0:19:31.040 --> 0:19:33.920 if they get priced out of the Summits and the 0:19:34.240 --> 0:19:36.880 short Hills is well, a lot of those people are 0:19:36.880 --> 0:19:39.840 actually moving to Harding Township, which is also known as 0:19:39.920 --> 0:19:42.960 New Vernon, which is very low taxes and very big 0:19:43.000 --> 0:19:48.600 properties and large homes because they realized that the need 0:19:48.680 --> 0:19:51.000 to be close to the community is no longer as 0:19:51.040 --> 0:19:53.960 important to them, so they're more willing to go sort 0:19:54.000 --> 0:19:56.760 of a country route as opposed to the suburbs. Whereas 0:19:56.800 --> 0:20:00.480 someone coming out of Brooklyn or Jersey City, they might 0:20:00.480 --> 0:20:03.720 not be quite prepared for a fifteen minute drive to 0:20:04.080 --> 0:20:08.480 civilization a like a supermarket, but for someone who's already 0:20:08.520 --> 0:20:11.280 lives here, they kind of get it. So if they 0:20:11.359 --> 0:20:14.119 really don't think they need that, they're willing to make 0:20:14.160 --> 0:20:16.639 that kind of a trade. And especially you're seeing a 0:20:16.640 --> 0:20:19.200 lot of people who normally would be thinking about scaling 0:20:19.240 --> 0:20:23.160 down at this point or downsizing we call it right sizing, 0:20:23.800 --> 0:20:26.480 but they're thinking, you know, let's go to a bigger 0:20:26.480 --> 0:20:30.040 place where if our kids right out of college have 0:20:30.200 --> 0:20:33.040 to move back in with us again, there's room for them. 0:20:33.119 --> 0:20:35.960 That was Stephanie Maleos, she's a founding agent at Compass 0:20:36.000 --> 0:20:38.520 Real Estate. You're listening to Bloomberg Business Week. Coming up next, 0:20:38.560 --> 0:20:41.360