WEBVTT - Mother's Day Has Become More Than Just Flowers 0:00:00.800 --> 0:00:04.040 Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney alongside 0:00:04.040 --> 0:00:06.920 my co host Matt Miller. Every business day we bring 0:00:06.960 --> 0:00:11.520 you interviews from CEOs, market pros, and Bloomberg experts, along 0:00:11.560 --> 0:00:15.560 with essential market moving news. Find the Bloomberg Markets podcast 0:00:15.600 --> 0:00:18.479 called Apple Podcasts or wherever you listen to podcasts, and 0:00:18.480 --> 0:00:22.400 at Bloomberg dot com slash podcast. Now ourminder to all 0:00:22.440 --> 0:00:26.840 of our listeners. Sunday is Mother's Day. Typically, I'm sure 0:00:26.880 --> 0:00:31.120 you would send flowers, but you also might send gourmet 0:00:31.160 --> 0:00:36.959 foods and gift baskets. In fact, Flowers dot Com Incorporated 0:00:37.000 --> 0:00:39.440 has made more money from the latter than the former 0:00:39.960 --> 0:00:42.640 in recent time. Springing Chris McCann right now. He's the 0:00:42.680 --> 0:00:47.520 president and CEO. UM. Chris talked to us first about 0:00:47.560 --> 0:00:50.800 the product mix. Um, I've got to guess you sell 0:00:50.840 --> 0:00:53.560 more flowers on Sunday than any other day of the year, 0:00:54.000 --> 0:00:56.840 but you sell a lot more than that. Sure, thanks 0:00:57.040 --> 0:00:58.960 thanks for having us. It's just such a crepet week 0:00:59.400 --> 0:01:01.600 on a mother is all around the world. It's just 0:01:01.680 --> 0:01:04.360 such an important role that they play. And you're right, 0:01:04.440 --> 0:01:06.800 Flowers in a traditional way to say thank you, in 0:01:06.840 --> 0:01:09.480 a way to say happy Mother's Day. But as we've 0:01:09.480 --> 0:01:13.160 branched out, gourmet foods from Harry and David h charcolate 0:01:13.200 --> 0:01:18.000 covered berries from Shari's Berries, or our newest brand, personalization 0:01:18.040 --> 0:01:21.680 Mall is just doing great this holidays. People are uploading 0:01:21.680 --> 0:01:24.200 photos to us. We're putting it in a picture frame 0:01:24.280 --> 0:01:27.200 for them, personalizing the message on the frames, sending it 0:01:27.240 --> 0:01:30.800 to their recipients. Mother's Day has become much more than 0:01:30.840 --> 0:01:33.560 just flowers. And as a company whose mission is to 0:01:33.840 --> 0:01:37.320 help our customers express, connect and celebrate, we're just so 0:01:37.400 --> 0:01:41.160 well positioned for that. So, Chris, give us a sense 0:01:41.160 --> 0:01:45.360 of how your business was impacted by the pandemic and 0:01:45.680 --> 0:01:48.720 maybe how you think your business is going to uh 0:01:48.920 --> 0:01:52.600 kind of kind of come out of this pandemic. But 0:01:52.760 --> 0:01:55.600 we've been very fortunate really that, you know, to all 0:01:55.600 --> 0:01:58.200 the troubles that we've had, you know, in our personal 0:01:58.240 --> 0:02:00.640 lives and even the challenges that we faced in the business, 0:02:01.200 --> 0:02:03.960 we were very fortunate that we were in front of 0:02:04.040 --> 0:02:07.160 two major shifts that took place during the pandemic, the 0:02:07.320 --> 0:02:11.280 tectonic shift from offline sales to online sales, and as 0:02:11.320 --> 0:02:14.680 an e commerce platform that's built for growth, we're right 0:02:14.720 --> 0:02:17.000 in front of that trend. The other one is I 0:02:17.000 --> 0:02:21.040 think we've all learned through this time relationships are so important, 0:02:21.040 --> 0:02:23.760 the need to stay connected to needs for human beings 0:02:23.800 --> 0:02:27.520 to express themselves, and that's who we are as a company. 0:02:27.560 --> 0:02:30.359 So we had good momentum going into the pandemic, good 0:02:30.400 --> 0:02:34.679 growth momentum that was accelerated significantly, just as the pandemic 0:02:34.720 --> 0:02:39.080 accelerated change in every area of life. So the year later, 0:02:39.240 --> 0:02:41.920 just over a year later, we're a much bigger, better, 0:02:42.040 --> 0:02:45.000 stronger company than we ever were. In fact, we got 0:02:45.080 --> 0:02:48.160 guided for double digit growth this quarter on top of 0:02:48.240 --> 0:02:53.400 phenomenal same quarter last year, and based on what we see, 0:02:53.560 --> 0:02:56.079 we see double digit growth going forward into our next 0:02:56.080 --> 0:03:00.919 fiscal year as well. How do you compete in um, 0:03:01.080 --> 0:03:04.040 the age of the Internet. You know, you've got competitors 0:03:04.040 --> 0:03:07.200 who are dropping vowels from their names, and you've still 0:03:07.280 --> 0:03:09.679 got kind of an old school phone number in front 0:03:09.720 --> 0:03:12.360 of yours. Um, what do you do to take on 0:03:12.480 --> 0:03:15.720 the kids in Silicon Valley? Well, I think, first of all, 0:03:15.800 --> 0:03:18.639 misspelling a brand name is is not as not the 0:03:18.720 --> 0:03:20.800 smartest thing to do to makes people try and figure 0:03:20.840 --> 0:03:23.320 out how do you spell that? Again? And over the 0:03:23.400 --> 0:03:27.079 years we've built such great brand recognition, such great brand 0:03:27.120 --> 0:03:31.040 attributes behind the one Flowers. The younger generation doesn't even 0:03:31.120 --> 0:03:34.240 realize that it actually was ones a phone number. Still 0:03:34.400 --> 0:03:36.840 is and we still get some cold volume there, but 0:03:36.920 --> 0:03:40.640 the vast majority of our business comes online on the 0:03:40.640 --> 0:03:43.160 e commerce channels. And that's why I say, over the 0:03:43.240 --> 0:03:45.920 years we've gone from this one Flower shop to this 0:03:46.160 --> 0:03:51.200 platform for expressions, connections and celebrations with all star lineup 0:03:51.240 --> 0:03:55.040 of brands and Harry and David personalization, mall Sharry's Berries, 0:03:56.280 --> 0:04:00.440 Flowers of course, and just constantly expanding the products and 0:04:00.520 --> 0:04:03.640 services we offer our customers to help them have better 0:04:03.680 --> 0:04:06.200 relationships in their lives. But what what kind of what 0:04:06.320 --> 0:04:08.360 kind of tech operation have you got going there? Because 0:04:08.400 --> 0:04:11.240 I noticed, I mean, it's always been the case when 0:04:11.240 --> 0:04:13.920 I put in flowers on Google, you pop up first. 0:04:13.960 --> 0:04:20.039 So you've got the search a search engine optimization down. Um, 0:04:20.080 --> 0:04:22.480 do you have a group of kids working out of 0:04:22.640 --> 0:04:25.599 Syosset on the internet? How's this going on? How's this 0:04:25.680 --> 0:04:28.920 going down? We had a group of wonderful people actually 0:04:29.000 --> 0:04:31.560 all over the country and frank quite frankly all over 0:04:31.600 --> 0:04:34.800 the world on our technology team, and we we we 0:04:34.920 --> 0:04:37.960 just made a major migration this past year or two 0:04:38.000 --> 0:04:41.920 into a whole new platform. It's a headless commerce platform 0:04:41.960 --> 0:04:45.480 built on pw A technology. It resides in the clouds, 0:04:45.640 --> 0:04:50.000 so it gives us a significantly enhanced flexibility and scalability. 0:04:50.640 --> 0:04:53.520 Uh and so it's tremendous capabilities there. But then it 0:04:53.560 --> 0:04:55.560 really comes down to the people. And as you say 0:04:55.839 --> 0:04:59.440 and Seo, we have some great people as young ladies Sarah, 0:04:59.440 --> 0:05:02.240 that does it h job heading that unit for us. 0:05:02.279 --> 0:05:05.120 But all about digital marketing, we've grown up as a 0:05:05.160 --> 0:05:08.360 digital marketing company, so we have great expertise and that's 0:05:08.360 --> 0:05:10.120 one of the things that brings that we bring to 0:05:10.120 --> 0:05:12.760 the table for some of the acquisitions that we've done. 0:05:12.760 --> 0:05:15.880 And in the past two years, we've taken Sherry's Berries, 0:05:15.920 --> 0:05:18.960 which was a bankrupt company and it has now been 0:05:19.000 --> 0:05:22.360 been a rowing success since we plugged it into our platform. 0:05:22.400 --> 0:05:25.080 And then most recently during the pandemic this August, we 0:05:25.120 --> 0:05:29.880 made our largest acquisition ever, Personalization Mall, and since moving 0:05:29.880 --> 0:05:34.160 that into our platform, last quarter of the holiday season, 0:05:34.640 --> 0:05:38.479 team ball grew for us. So so wheels are turning well. 0:05:39.040 --> 0:05:40.840 All right, Chris, thanks so much for joining us. We 0:05:40.880 --> 0:05:44.200 always appreciate chatting with you. Getting uh the latest on 0:05:44.279 --> 0:05:46.320 the gift at giving a business and nobody does it 0:05:46.360 --> 0:05:48.920 better than the good folks at one Flowers dot Com. 0:05:49.000 --> 0:05:52.960 Christma can't see Flowers dot Com Incorporated giving us his 0:05:53.040 --> 0:06:00.160 thoughts as we head in to Mother's Day weekend. Now, 0:06:00.440 --> 0:06:04.720 stocks are down and the broader indexes um, but not 0:06:04.880 --> 0:06:07.839 as bad in the big indexes as they are in 0:06:07.920 --> 0:06:10.599 small caps. That's bringing Dave Wilson right now for a 0:06:10.640 --> 0:06:14.080 look at what's going on um with the smaller cap companies. Dave, 0:06:14.320 --> 0:06:18.400 They've got that right, Matt. Smaller companies, bigger declines. That's 0:06:18.520 --> 0:06:20.800 part of the story of the day. The Russell two 0:06:20.839 --> 0:06:25.440 thousand index now lower by one point four percent, while 0:06:25.480 --> 0:06:28.880 the SMP five hundred is only down two tenths of 0:06:28.920 --> 0:06:32.599 a percent. Now the steepest drop in the Russell belongs 0:06:32.640 --> 0:06:35.640 to James River Group Holdings. The ticker their j R 0:06:35.800 --> 0:06:40.119 v R. The insurer has lost more than thirty two 0:06:40.120 --> 0:06:43.560 percent after raising a hundred and seventy five million dollars 0:06:43.560 --> 0:06:46.400 in a share sale that amounted to a fifteen per 0:06:46.600 --> 0:06:51.160 and a half percent steak. Regis ticker RGS is down 0:06:51.200 --> 0:06:54.120 about twenty six and a half percent. The hair salon 0:06:54.240 --> 0:06:57.239 owner and franchise are posts the wider loss and lower 0:06:57.279 --> 0:07:00.599 revenue for the fiscal third quarter than Analystic spected in 0:07:00.680 --> 0:07:05.120 Bloomberg Survey, and US concrete ticker u SCR is down 0:07:05.160 --> 0:07:09.400 twenty three First quarter revenue fell more than analysts predicted, 0:07:09.520 --> 0:07:13.640 as a winter storm in Texas her demand now. The 0:07:13.640 --> 0:07:17.000 biggest gain Russell belongs to Avid Technology. The ticker a 0:07:17.200 --> 0:07:21.480 v i D, the maker of audio and video editing software, 0:07:21.520 --> 0:07:25.320 is up twenty one percent after reporting first quarter results 0:07:25.360 --> 0:07:28.880 that surpassed projections, and the Quidity Services ticker l q 0:07:29.200 --> 0:07:33.080 DT is up nineteen and a half percent. UH, the 0:07:33.160 --> 0:07:37.880 online marketplace for surplus goods, had fiscal second quarter results 0:07:37.920 --> 0:07:42.520 that beat estimates. Bloomberk Stocks editor Dave Wilson, thank you 0:07:42.560 --> 0:07:45.400 so much. We appreciate that small cap report. Let's take 0:07:45.440 --> 0:07:48.280 a look now at the high yield business. We do 0:07:48.360 --> 0:07:51.120 that today with Emmanuel Hayes. He's a senior portfolio manager 0:07:51.160 --> 0:07:53.640 at Melan. Manuel, thanks so much for joining us here. 0:07:53.680 --> 0:07:57.000 We've seen in the equity markets really since September, kind 0:07:57.040 --> 0:07:59.760 of a rotation trade away from some of the big 0:07:59.800 --> 0:08:02.680 high tech growth names into some more cyclical names, maybe 0:08:02.680 --> 0:08:05.680 even from a smaller cap kind of banking on this reopening. 0:08:05.960 --> 0:08:09.119 Are we seeing something similar in the high yield market 0:08:09.160 --> 0:08:14.720 as well? Hi, thank you for having me pleasure to 0:08:14.720 --> 0:08:18.480 be here. The short after is yes, we're seeing something 0:08:18.560 --> 0:08:22.240 very similar in the broader high old market. Where As 0:08:22.320 --> 0:08:27.800 the COVID impacted everybody in March and in April, we 0:08:27.880 --> 0:08:32.120 started seeing a lot of sectors get impacted from a 0:08:32.160 --> 0:08:36.240 spread perspective, as a widened indie cyclical sectors think of 0:08:36.360 --> 0:08:41.560 leisures and airline transportation, more consumer cyclical sectors. And then 0:08:41.640 --> 0:08:45.400 as things started stabilizing and there's more optimism built into 0:08:45.440 --> 0:08:49.000 the vaccine rollouts, we're starting to see those trades performed 0:08:49.000 --> 0:08:53.000 really well. And so that's been very much in line 0:08:53.040 --> 0:08:55.559 with what we're seeing in the equity markets. But we're 0:08:55.559 --> 0:08:58.680 also seeing interesting other dynamics take place in high old. 0:08:59.280 --> 0:09:01.720 It's very exciting time. We're seeing a lot of companies 0:09:01.800 --> 0:09:05.000 being downgraded from investment grade. We're also seeing a lot 0:09:05.000 --> 0:09:08.200 of companies getting upgraded back into the investment grade market, 0:09:09.000 --> 0:09:14.840 providing nice tailwind performance on both sides. Very interesting time 0:09:14.840 --> 0:09:17.800 in the higold market right now, and a ton of 0:09:17.920 --> 0:09:21.640 issuance right manual we see we saw a record issuance 0:09:21.720 --> 0:09:25.400 last year four or billion dollars in total, and this 0:09:25.480 --> 0:09:27.560 year in the first quarter we had a hundred forty 0:09:27.559 --> 0:09:31.440 billion dollars in issue and so does that mean one 0:09:31.520 --> 0:09:36.520 is going to be another record year? All expectations is 0:09:36.559 --> 0:09:40.680 that this issuance pace will continue. A lot of issuance 0:09:40.840 --> 0:09:45.720 was built into last year after companies were in survival mode. Now, 0:09:45.760 --> 0:09:48.240 with rates continuing to be as low as they are, 0:09:48.720 --> 0:09:53.160 you are seeing companies being more opportunistic, looking to refinance 0:09:53.200 --> 0:09:55.960 their debt, bring down their interest expense, clean up the 0:09:56.040 --> 0:09:59.880 balance sheet issues that maybe they were encountering last year. 0:10:00.440 --> 0:10:03.280 So we are seeing record level of issuance. And with 0:10:03.440 --> 0:10:06.600 issue wance, there is a concession that takes place. So 0:10:06.760 --> 0:10:10.400 when issuers kind of the market, they do provide, you know, 0:10:10.440 --> 0:10:13.160 several bits to a hundred bits of concession just to 0:10:13.360 --> 0:10:18.360 entice investors to participate, and that provides a nice performance 0:10:19.040 --> 0:10:20.960 pop if you are able to do it in a 0:10:21.080 --> 0:10:23.320 very diversive light way across a lot of these bonds 0:10:23.320 --> 0:10:26.199 that are issued, hey man, will give us a sense 0:10:26.240 --> 0:10:29.959 of credit quality out there. We're again this pandemic. We're 0:10:30.400 --> 0:10:34.319 month fourteen here roughly. We do obviously see some really 0:10:34.360 --> 0:10:36.080 good light at the end of the tunnel here and 0:10:36.080 --> 0:10:38.280 a lot of parts of the economy already you know 0:10:38.320 --> 0:10:41.000 out of that tunnel. If if you will talk to 0:10:41.040 --> 0:10:43.239 us about the credit quality you've seen in your portfolio 0:10:43.280 --> 0:10:47.640 over the over the last fourteen months. Yeah, after the 0:10:47.720 --> 0:10:51.120 pandemic hit, we saw this huge amount of downgrades to 0:10:51.120 --> 0:10:53.520 take place. So a lot of bonds that were rated 0:10:53.559 --> 0:10:57.120 shoup will be were downgraded over two billion across twenty 0:10:57.160 --> 0:11:00.760 five companies. So naturally, what was the lowest part of 0:11:00.760 --> 0:11:04.600 the investment grade market migrated down into the high old market. 0:11:05.320 --> 0:11:09.000 And with that means now the high market for intensive 0:11:09.000 --> 0:11:13.760 purposes is higher quality, meaning more double BE rated securities. 0:11:14.320 --> 0:11:17.360 And so you saw the broad high old market naturally 0:11:17.400 --> 0:11:21.160 increases double BE exposure. Just around half of the overall 0:11:21.200 --> 0:11:24.440 explosion high old is now rated double B and that's 0:11:24.440 --> 0:11:28.079 good for the overall credit quality of the company's, the 0:11:28.160 --> 0:11:32.200 overall market landscape and high old. And what we see 0:11:32.280 --> 0:11:35.800 is that segment, that little cohort of double B rated 0:11:35.840 --> 0:11:40.439 bonds that were downgraded, it's actually a very very strong performer. 0:11:41.360 --> 0:11:43.760 What happens with these bonds as they get migrated, they 0:11:43.800 --> 0:11:48.439 get forsold by a lot of investment grade holders, index ers, 0:11:48.600 --> 0:11:51.720 active managers, insurance companies, and so when they enter the 0:11:51.760 --> 0:11:54.520 high old market, not only is the higher quality, but 0:11:54.600 --> 0:11:59.439 you see these bonds come in at these discounts basis 0:11:59.480 --> 0:12:02.760 points from our analysis, and that shouldn't be the case. 0:12:02.840 --> 0:12:08.560 But because there is a inefficient bifurcated corporate market, high 0:12:08.559 --> 0:12:11.040 old investors are excited. They come in, they get these 0:12:11.080 --> 0:12:14.760 cheap bonds, high quality, large camp names, and they get 0:12:14.760 --> 0:12:17.800 out of its steep discount and then they harvest that premium. 0:12:18.480 --> 0:12:20.960 It's a great time to be a hiled manager, as 0:12:21.000 --> 0:12:23.720 you just are here sitting on the side taking advantage 0:12:23.720 --> 0:12:29.320 of this opportunity. That is truly fascinating insight. Manuel, thanks 0:12:29.320 --> 0:12:32.640 so much for joining us. Manuel Hayes, their senior portfolio 0:12:32.720 --> 0:12:36.560 manager at Melon, talking to us about the fallen angels, 0:12:36.679 --> 0:12:39.200 getting them at a discount on the way in and 0:12:39.240 --> 0:12:44.679 then making money obviously on the way back out. Well, 0:12:44.720 --> 0:12:48.000 when the pandemic hit, the lockdowns went into place, and 0:12:48.400 --> 0:12:51.600 daily lives as we knew them were greatly disrupted, and 0:12:51.600 --> 0:12:56.680 that includes going to your dentist, going towards your local 0:12:56.880 --> 0:13:00.000 doctor for you know, annual checkups for example, that all 0:13:00.000 --> 0:13:01.839 all was disrupted. Now as we come out on the 0:13:01.880 --> 0:13:03.800 other side, what's that Are we going to go back 0:13:03.800 --> 0:13:06.920 to a normal behavior? Let's check in with Stanley Berman. 0:13:06.960 --> 0:13:09.280 He's a chairman and chief executive officer of Henry Shine. 0:13:09.320 --> 0:13:12.760 Henry Shin is a worldwide distributor of medical and dental supplies, 0:13:12.800 --> 0:13:16.360 including vaccines, pharmaceuticals, financial services, and equipment. It is a 0:13:16.440 --> 0:13:19.559 publicly traded UH stock. Stanley, thanks so much for joining 0:13:19.600 --> 0:13:23.440 us here. When do you think and to what degree 0:13:23.480 --> 0:13:25.200 do you think we will go back to kind of 0:13:25.200 --> 0:13:28.360 pre pandemic levels in terms of going to our dentists, 0:13:28.400 --> 0:13:30.920 hopefully every six months, going to our doctor for that 0:13:31.000 --> 0:13:33.840 annual check up. What are you hearing from the doctor's 0:13:33.840 --> 0:13:37.160 offices that you guys interact with. Thank you, Paul Matte 0:13:37.160 --> 0:13:41.360 for your interview today. Very very good question. Actually, the 0:13:41.440 --> 0:13:47.120 data is quite uh, it's really good and it's reassuring 0:13:47.880 --> 0:13:50.920 the lay. About two weeks ago, the American Dental Association 0:13:50.960 --> 0:13:55.840 reported that to the population are returning to the dentist, 0:13:56.360 --> 0:14:01.320 and that's up from about sixty sixty or seventy six 0:14:01.360 --> 0:14:04.000 months ago. And we expect the public to be going 0:14:04.040 --> 0:14:06.320 back to the dentist in full swing within a few months. 0:14:07.760 --> 0:14:11.480 I'm excited to go back to the dentist myself. Good 0:14:11.520 --> 0:14:15.400 for you. Um, your r hygiene test and your regular 0:14:15.480 --> 0:14:18.880 visits are really important because there's a direct correlation between 0:14:18.960 --> 0:14:21.400 good oral care and good health care. Well, tell me 0:14:21.440 --> 0:14:24.400 about it. And I'm getting older, you know, so I 0:14:24.880 --> 0:14:26.800 I want to keep these teeth. I don't need to 0:14:26.840 --> 0:14:30.920 trade them in for any plastic dentures. But um, what 0:14:30.920 --> 0:14:33.600 what what kind of gear are you selling the most of? 0:14:33.680 --> 0:14:37.280 Because I imagine you did incredibly well with PPE obviously, 0:14:37.400 --> 0:14:41.200 but that's got a kind of taper off. Um, what's 0:14:41.960 --> 0:14:44.320 what's what's in the what's in the future for you? 0:14:44.440 --> 0:14:46.600 Rather than you know, during the pandemic? What are you? 0:14:46.640 --> 0:14:49.160 What are you selling in in the reopening? Right? So, 0:14:49.200 --> 0:14:53.080 of course pre E has been important. Rapid point of 0:14:53.160 --> 0:14:57.960 care tests are very very important physician officers, some dental officers, 0:14:58.000 --> 0:15:02.080 but the big area has been in digital dentistry, in 0:15:02.120 --> 0:15:05.080 other words, a scan of the mouth rather than using 0:15:05.080 --> 0:15:10.960 an impression material and to take an impression and using 0:15:11.000 --> 0:15:15.600 that to mill a crown or bridge share side. So 0:15:15.640 --> 0:15:20.320 it's one visit to the dentist to replace crown or 0:15:20.840 --> 0:15:23.080 put in a new crown or a place or put 0:15:23.080 --> 0:15:27.240 in a new bridge. All right, So one of the 0:15:27.400 --> 0:15:31.560 issues is telehealth, virtual care. They've really come to the 0:15:31.600 --> 0:15:35.560 fore here during this pandemic. How's that impacted your business? 0:15:35.680 --> 0:15:39.920 Am I gonna make fewer visits to the doctor's office? Um? 0:15:40.080 --> 0:15:44.320 I'm not sure you're gonna make a significantly fewer visits, 0:15:44.360 --> 0:15:46.920 but I think your business will be more productive because 0:15:46.960 --> 0:15:49.200 the practitioner will be ready for you when you arrive. 0:15:49.960 --> 0:15:52.400 Telehealth has gone up in a significant way. We of 0:15:52.400 --> 0:15:55.920 course offer telehealth systems to our customers, but I think 0:15:55.960 --> 0:15:59.960 the visit will be much more productive as the practitioner 0:16:00.000 --> 0:16:02.360 will be ready for you, the staff will be ready, 0:16:02.400 --> 0:16:05.960 and I think this hybrid health care system will be very, 0:16:06.080 --> 0:16:11.680 very effectivating increasing the quality of health in this country. 0:16:12.440 --> 0:16:16.960 In terms of vaccines, Um, are people coming in? You 0:16:16.960 --> 0:16:19.680 think to the dentisty get vaccine? And then uh can 0:16:19.720 --> 0:16:22.040 they can they do that? Can? Can the dental hygiene 0:16:22.040 --> 0:16:24.280 has give you a vaccine? Well, I think we've done 0:16:24.280 --> 0:16:27.600 a terrific job in rolling out the first phase of 0:16:27.800 --> 0:16:31.920 a vaccination. A lot of people have the vaccination, but 0:16:32.360 --> 0:16:37.160 we have a challenge. It's relatively stalled. There's vaccine hesitancy, 0:16:37.240 --> 0:16:41.600 and only our physicians in the United States are offering 0:16:41.720 --> 0:16:45.240 vaccines and a small amount of dentists. This is because 0:16:45.240 --> 0:16:48.600 the system is not yet geared up to providing office 0:16:48.640 --> 0:16:53.840 space practitioners with vaccines. The majority of Americans, of course, 0:16:53.880 --> 0:16:59.240 received their fluid traditional flu vaccine, their other vaccines. In fact, 0:16:59.520 --> 0:17:03.040 almost many percent from an office space practitioner who's very 0:17:03.080 --> 0:17:06.919 much trusted. And we are advocating for the greater allocation 0:17:06.960 --> 0:17:13.359 of vaccine to be provided to office space dentists and physicians. So, Stanley, 0:17:13.400 --> 0:17:15.320 that kind of goes to the issue here of you know, 0:17:15.840 --> 0:17:18.560 hesitancy of the vaccine. Here, what do you what would 0:17:18.560 --> 0:17:23.040 you like to see in terms of programs to address 0:17:23.240 --> 0:17:25.679 vaccine hesanity, because it's not just for the COVID vaccine. 0:17:25.720 --> 0:17:27.920 We've had you know, anti vaxxers for lack of a 0:17:27.960 --> 0:17:31.439 better term, um you know, you know throughout the country 0:17:31.440 --> 0:17:34.040 about different vaccines. But how do we overcome that? I 0:17:34.080 --> 0:17:38.679 think the number one priority is to put the physicians 0:17:38.720 --> 0:17:43.680 and the dentists in the driver's seat on vaccine education. 0:17:44.640 --> 0:17:49.080 Physicians and Dennis are in every community, multiple practitioners in 0:17:49.160 --> 0:17:53.760 every community, and we need to engage the office space 0:17:54.240 --> 0:17:59.000 trusted dentists and physician in educating the public on the 0:17:59.040 --> 0:18:02.560 importance of ACT means. We need to allocate vaccines, the 0:18:02.640 --> 0:18:06.000 COVID vaccines to these office space practitioners, and we need 0:18:06.040 --> 0:18:07.880 to do it quickly and make it easy for them 0:18:07.920 --> 0:18:11.399 to have access to these vaccines. Right now, it's not easy, 0:18:11.480 --> 0:18:14.520 a lot of paperwork for the practitioners. Yet they can 0:18:14.640 --> 0:18:17.680 easily obtain other kinds of vaccines. We need to make 0:18:17.760 --> 0:18:23.119 the COVID vaccine easily accessible to offer space practitioners. Standing 0:18:23.160 --> 0:18:26.560 away from maybe away from your business and and thinking 0:18:26.600 --> 0:18:31.800 more about the health and welfare of mankind. How concerned 0:18:31.840 --> 0:18:34.880 are you about what we're seeing in India and what 0:18:34.920 --> 0:18:37.520 we could soon see? You know, we could see similar 0:18:38.119 --> 0:18:43.040 problems spikes in Africa in South America. Um, what do 0:18:43.119 --> 0:18:45.600 you think needs to be done about that? I'm very, 0:18:45.720 --> 0:18:49.320 very concerned for two reasons. There's a morality issue and 0:18:49.320 --> 0:18:53.200 there's also the issue of ensuring that our own safety 0:18:53.280 --> 0:18:59.320 is protected. Excuse me vaccines. Sorry, the viruses do not 0:19:00.200 --> 0:19:04.639 have passports. You cannot be kept out through visas. We 0:19:04.720 --> 0:19:07.880 need to make sure that the entire world has access 0:19:07.920 --> 0:19:12.520 to P P and E quality that we know works tests, 0:19:13.520 --> 0:19:17.600 rapid tests for COVID and the vaccine, and I'm fearful 0:19:17.840 --> 0:19:21.040 that the wealthier countries in the world are keeping these 0:19:21.040 --> 0:19:26.000 products for ourselves. Yes, it's not moral, but from a 0:19:26.080 --> 0:19:29.520 practical point of view, if we don't provide these products 0:19:29.520 --> 0:19:34.000 to the whole world, this virus will not be contained. 0:19:36.359 --> 0:19:38.960 All right, Stanley, thanks so much for joining us. I 0:19:38.960 --> 0:19:41.800 think really important to get your take on this and 0:19:41.840 --> 0:19:45.920 also obviously great to hear about the business. At Henry Shine, 0:19:46.040 --> 0:19:49.920 Stanley Bergman is the chairman and chief executive officer, and 0:19:50.000 --> 0:19:53.960 he has been incredibly active, written a letter um to 0:19:54.800 --> 0:19:59.359 Congress about why this issue can't be overlooked in the 0:19:59.680 --> 0:20:06.840 direct consequences in terms of vaccine acceptance. This is Bloomberg. 0:20:10.640 --> 0:20:13.000 Let's get now to Mark Barry Bow. He joins us 0:20:13.040 --> 0:20:17.399 from Jennison Associates, the fundamental equity and fixed income business 0:20:17.400 --> 0:20:22.240 a P JIM and he is their head of Global Equity. Mark, 0:20:22.640 --> 0:20:25.359 we've seen this big rotation and we've been talking about 0:20:25.400 --> 0:20:27.680 it for months and months now, but you don't think 0:20:27.680 --> 0:20:32.520 investors should make major changes to their portfolios during market rotations, 0:20:32.560 --> 0:20:36.680 instead focusing on investing for the longer term. How long 0:20:36.800 --> 0:20:40.239 term are you thinking, well, you know, we're typically going 0:20:40.280 --> 0:20:43.919 to look out um, you know, the next three years. Uh, 0:20:44.240 --> 0:20:49.159 just in terms of secular trends. And you know, obviously 0:20:49.880 --> 0:20:52.600 rotations can be painful, particularly if you're a growth investor 0:20:52.640 --> 0:20:55.760 in this environment. But actually there's some really good stock 0:20:55.880 --> 0:20:58.960 setting up here we think, going into the second half 0:20:59.000 --> 0:21:03.120 of the year and into two. So it's it's very 0:21:03.200 --> 0:21:06.000 a little unusual to say that a good economy is 0:21:06.040 --> 0:21:10.280 bad for tech, because um, that would be the first 0:21:10.320 --> 0:21:13.040 cycle we've ever had were good economies bad for tech. 0:21:13.359 --> 0:21:16.160 Good economy is good for tech. So I think it's 0:21:16.160 --> 0:21:18.479 a little bit overdone. So you don't think this rotation 0:21:18.520 --> 0:21:21.320 is going to stick, is basically what you're saying. No, 0:21:21.520 --> 0:21:23.959 I think once you as you're working through earnings, we're 0:21:23.960 --> 0:21:27.760 seeing some amazing prints at a big companies like Apple 0:21:27.920 --> 0:21:33.240 or Amazon, Google, Tesla, etcetera. And um, you know Mercado 0:21:33.320 --> 0:21:38.120 Libre last night out of Latin America, and uh, these 0:21:38.200 --> 0:21:43.160 leading companies are building major platforms that that are going 0:21:43.240 --> 0:21:45.800 to you know, thrive for years to come, we think. 0:21:46.440 --> 0:21:50.159 And so I think once the cyclical kind of you know, 0:21:50.320 --> 0:21:55.040 rallied you know, reaches its crescendo as it were, because 0:21:55.080 --> 0:21:57.760 there is nothing secular about it. It's just a cyclical 0:21:57.800 --> 0:22:01.200 bounce off the bottom. Uh, it's going to be. Investors 0:22:01.200 --> 0:22:03.600 are just gonna win with companies that are that are 0:22:03.760 --> 0:22:07.280 gaining market share and creating goods and services that people 0:22:07.359 --> 0:22:10.320 really like. And I think, you know, you're just back 0:22:10.320 --> 0:22:15.840 to basic fundamentals instead of just macro trading. So how 0:22:15.880 --> 0:22:19.040 do you generate alpha in with the strategy like that 0:22:19.119 --> 0:22:21.760 mark in the in the context of not really going 0:22:21.800 --> 0:22:24.560 to where the puck is going? Uh? And and over 0:22:24.600 --> 0:22:26.560 the last you know, kind of nine months, ten months, 0:22:26.560 --> 0:22:28.520 it's been some of those cyclical trade maybe even some 0:22:28.600 --> 0:22:33.240 of the small caps as well. Yeah, no, you know, 0:22:33.359 --> 0:22:37.280 we've of course over the last year. Uh. As long 0:22:37.320 --> 0:22:41.399 as you're in the right names, you can consistently generate alpha. 0:22:41.440 --> 0:22:45.679 Of course, if if the whole cluster sells off as 0:22:45.720 --> 0:22:48.120 it did in March, you know, obviously in one month, 0:22:48.160 --> 0:22:51.719 it's tough. So what we try to do is not 0:22:51.920 --> 0:22:54.760 let all the short term movement get in the way 0:22:55.400 --> 0:23:00.480 of evaluating how big can a specific company become, how 0:23:00.560 --> 0:23:05.360 dominant in its particular niche, how important is that company 0:23:05.440 --> 0:23:08.920 to a local market, And if you approach it from 0:23:08.960 --> 0:23:11.120 that perspective, you tend to get some really good long 0:23:11.200 --> 0:23:15.199 term investments that pay off. Um, although every one of 0:23:15.240 --> 0:23:17.800 them periodically is going to take a breather, right, because 0:23:18.080 --> 0:23:21.440 sometimes they'll get ahead of themselves as stocks. But you know, 0:23:21.480 --> 0:23:25.320 if you look at Amazon, for example, it's kind of stunning. Uh, 0:23:25.840 --> 0:23:30.280 you know, they just reported revenue growth on a multi 0:23:30.359 --> 0:23:36.199 hundred billion dollar revenue base and um, you know, you 0:23:36.280 --> 0:23:39.040 just don't find scale like that generally in the market. 0:23:39.760 --> 0:23:42.440 So their revenues in the first quarter, we're up forty 0:23:43.160 --> 0:23:46.040 year every year, the stocks only up thirty nine percent 0:23:46.200 --> 0:23:49.040 year over year. So there seems to be a disconnect. 0:23:49.440 --> 0:23:52.680 It's not not not extended. It makes sense you can't 0:23:52.720 --> 0:23:55.439 go more compelling. It makes sense that you can't go 0:23:55.520 --> 0:23:58.320 wrong there with the with the big fan companies. I mean, 0:23:58.359 --> 0:24:03.960 Amazon is just a killer. But what do you like blow, um, 0:24:04.000 --> 0:24:07.359 you know, trillion dollar valuations? What do you like in 0:24:07.480 --> 0:24:18.120 terms of sectors other than Amazon? Apple? Um, you know, Tesla, Google? Sure? Well, 0:24:18.160 --> 0:24:20.560 you know it's what's really interesting, Okay, if you if 0:24:20.560 --> 0:24:22.480 you take a step back and you say, what, what's 0:24:22.520 --> 0:24:28.000