WEBVTT - Bloomberg Businessweek Weekend-December 12, 2020 0:00:00.880 --> 0:00:05.360 This is Bloomberg Business Week with Carol Mazer from Bloomberg Radio. 0:00:05.680 --> 0:00:08.039 Hi on, Carol Masser, Welcome to the weekend edition of 0:00:08.039 --> 0:00:11.479 Bloomberg Business Week, Week thirty nine. Working from home still 0:00:11.560 --> 0:00:14.280 for many I was at Bloomberg headquarters in New York 0:00:14.280 --> 0:00:16.639 City along with some of my colleagues in a week 0:00:16.640 --> 0:00:19.680 where deaths in the United States from COVID nineteen surpassed 0:00:19.680 --> 0:00:22.360 three thousand a day for the first time, and we 0:00:22.400 --> 0:00:27.160 saw progress and stumbling blocks this week for coronavirus vaccines markets. 0:00:27.200 --> 0:00:31.680 They moved on that virus news, also unexpected stimulus headlines. 0:00:32.120 --> 0:00:34.559 That was our backdrop for the week. So coming up 0:00:34.560 --> 0:00:36.040 this hour, we're going to hear from the head of 0:00:36.040 --> 0:00:39.400 the largest healthcare provider in New York State, Michael Dowling, 0:00:39.440 --> 0:00:42.240 President CEO at Northwell Health. He reminds us that a 0:00:42.320 --> 0:00:45.880 vaccine rollout it's going to take time. Also, Warner Brothers 0:00:45.920 --> 0:00:48.840 recently shaking up the movie making world well known Alice 0:00:48.840 --> 0:00:51.680 Craig Moffatt at Moffatt Nathanson weighs in on that. And 0:00:51.680 --> 0:00:54.040 then we get real unreal estate with the chairman of 0:00:54.080 --> 0:00:57.320 commercial real estate firm Thestian. All of that to come 0:00:57.440 --> 0:01:00.520 We start this hour with this week's US her story. 0:01:01.040 --> 0:01:05.000 It's remarks about untangling childcare in America. It's written by 0:01:05.040 --> 0:01:09.160 Cynthia Coon's Bloomberg News US healthcare reporter Share reports on 0:01:09.200 --> 0:01:12.160 how the U s childcare crisis is torturing parents and 0:01:12.200 --> 0:01:15.160 the economy. We got more from Cynthia and Bloomberg Business 0:01:15.160 --> 0:01:18.400 wee getitor Joe Weber. They joined Bloomberg Quick Take anchor 0:01:18.480 --> 0:01:21.560 Tim Stanovic and me. You know, it's been one of 0:01:21.560 --> 0:01:24.880 the stories of the pandemic, really and um, you know, 0:01:24.920 --> 0:01:28.399 when Cynthia and the team started talking about it, you know, 0:01:28.480 --> 0:01:32.399 we started with this idea of like, really, it's been 0:01:33.200 --> 0:01:35.840 a story about moms in the pandemic. You know that 0:01:35.920 --> 0:01:38.400 this has been that's been the group that's been just 0:01:38.720 --> 0:01:42.640 crushed in In September, we saw the workforce numbers, and 0:01:42.640 --> 0:01:46.200 we just saw women leave the workforce right as schools 0:01:46.200 --> 0:01:49.480 were reopening and kids were staying remote and basically families 0:01:49.480 --> 0:01:52.960 were forced with this decision does mom keep the job 0:01:53.080 --> 0:01:56.440 or does mom watch the kids? And that has incredible 0:01:56.520 --> 0:01:59.680 economic implications for the country. And and I think, as 0:01:59.680 --> 0:02:02.360 Cynthia is gonna gonna talk about, you know, in any ways, 0:02:02.400 --> 0:02:04.760 this is just a reflection of this longstanding thing that 0:02:04.760 --> 0:02:08.480 we've known of how broken childcare is in the US 0:02:08.520 --> 0:02:11.680 compared to other countries. So Cynthia dig into this with 0:02:11.720 --> 0:02:14.399 me as as you started reporting this story, you know, what, 0:02:14.400 --> 0:02:16.800 what did you what did you learn? Well, you know, 0:02:16.840 --> 0:02:19.000 it's interesting. I thought we were in a childcare crisis 0:02:19.000 --> 0:02:22.639 before COVID, so um, what happened during COVID just really 0:02:22.720 --> 0:02:25.640 underscored all the weakness in our system. And I think 0:02:25.639 --> 0:02:28.079 the thing is also about what we described as childcare, right. 0:02:28.120 --> 0:02:29.959 I think most people think of that as zero to 0:02:30.639 --> 0:02:32.680 five years old, and then after that you're you're in 0:02:32.680 --> 0:02:35.120 the system, but you're really not a lot of places 0:02:35.120 --> 0:02:37.640 that are working on universal childcare are also looking at 0:02:37.720 --> 0:02:41.640 summer care, after care for care, because even our school system, 0:02:41.680 --> 0:02:44.400 when it's fully functioning, doesn't match a work day. But 0:02:44.560 --> 0:02:47.280 like Joel said, there were eight hundred sixty five thousand 0:02:47.320 --> 0:02:49.519 women who left the workforce in September, so it was 0:02:49.639 --> 0:02:52.600 very clear at that moment in time, when schools didn't reopen, 0:02:52.960 --> 0:02:56.160 that this situation was just not tenable anymore. The spring, 0:02:56.240 --> 0:02:58.080 a lot of people left their jobs, partly because their 0:02:58.160 --> 0:03:00.680 jobs disappeared, but I think by the Tall people who 0:03:00.680 --> 0:03:03.400 are reassessing what they could peasibly do with children at 0:03:03.440 --> 0:03:04.720 home and a lot for a lot of women that 0:03:04.760 --> 0:03:06.959 meant not working. And there was also a lean In 0:03:07.280 --> 0:03:10.280 and McKenzie study over the summer and then their study 0:03:10.360 --> 0:03:12.480 over a quarter I think was a quarter of women 0:03:13.400 --> 0:03:16.560 children underage ten we're considering either taking a leave or quitting. 0:03:16.800 --> 0:03:18.840 So this has been a really big problem for women, 0:03:18.919 --> 0:03:21.239 and I think what's most interesting is that when you 0:03:21.280 --> 0:03:24.079 look around the world at wealthy countries, even countries that 0:03:24.120 --> 0:03:26.799 aren't necessarily as wealthy as our own, there's a lot 0:03:26.800 --> 0:03:29.280 more money spent on childcare and early education. And so 0:03:29.480 --> 0:03:32.240 we took this moment to explore what's feasible from a 0:03:32.240 --> 0:03:35.160 policy perspective, what could the US be doing to maybe 0:03:35.800 --> 0:03:40.000 come like come back with a stronger, you know, foundation 0:03:40.080 --> 0:03:43.200 for working mothers after this crisis. Aside well, what could 0:03:43.240 --> 0:03:45.360 we be doing because as you write in your story, 0:03:45.640 --> 0:03:48.800 uh SMP Global had to report out and they said 0:03:48.800 --> 0:03:51.120 that the U s could add one point six trillion 0:03:51.200 --> 0:03:54.000 dollars to g d P if women entered in state 0:03:54.040 --> 0:03:56.240 in the workforce that are rate, similar to how it 0:03:56.320 --> 0:03:59.800 is in Norway, a country that has government subsidized daycare, 0:03:59.840 --> 0:04:02.720 So what could the US learn from Norway? So the 0:04:02.800 --> 0:04:05.240 really interesting thing is I think there's a perception here 0:04:05.240 --> 0:04:08.360 that investing in early education in childcare is really expensive, 0:04:08.720 --> 0:04:11.120 and sure it is, but as a proportion of GDP 0:04:11.360 --> 0:04:14.360 countries like Norway when you look at the data, so 0:04:14.440 --> 0:04:17.560 we're investing about one percent of GDP. We do spend 0:04:17.560 --> 0:04:21.400 money on early education for children of low income families, 0:04:21.800 --> 0:04:24.280 But in countries like Norway and Sweden, where they're subsidizing 0:04:24.320 --> 0:04:27.839 everyone's child care, they're only spending about two percent of GDP, 0:04:28.000 --> 0:04:30.880 so it's not as though they're expending some extraordinary proportion 0:04:30.920 --> 0:04:33.359 of their GDP on this. And one of the interesting 0:04:33.400 --> 0:04:36.040 things and kind of best practices is making this available 0:04:36.080 --> 0:04:38.880 to everybody, but also making people pay so that it's 0:04:38.880 --> 0:04:41.160 not necessarily free for everybody. So if you're at a 0:04:41.240 --> 0:04:43.640 higher end of the income spectrum, you are paying into 0:04:43.720 --> 0:04:46.560 the system, but you're still getting something that's equivalent to 0:04:46.600 --> 0:04:48.600 someone who can't afford to pay for that. That's a 0:04:48.720 --> 0:04:51.200 leveling factor in some of the research that's come out 0:04:51.240 --> 0:04:54.160 so far about what universal preschools do and a lot 0:04:54.200 --> 0:04:56.279 of the programs going on in the US we've seen 0:04:56.520 --> 0:04:59.039 to the like Portland's just passed the universal pre care 0:04:59.120 --> 0:05:01.920 for threason four. It wasn't easy, Cynthia, and there it 0:05:02.040 --> 0:05:04.560 is kind of like, you know, liberal bastion of America, 0:05:04.560 --> 0:05:08.040 I feel like. And yet they had a hard time. Yeah, well, 0:05:08.040 --> 0:05:10.200 there are multiple groups pushing to get this done. They 0:05:10.200 --> 0:05:13.200 had different ideas, and they imagine they came together in 0:05:13.240 --> 0:05:15.200 the end, but there was sort of this you know, 0:05:15.320 --> 0:05:17.400 split decision about what they wanted to do, and they 0:05:17.440 --> 0:05:20.240 had different perspectives on it. And there were also attitudes 0:05:20.240 --> 0:05:23.040 among voters that I just spoke to one volunteer who 0:05:23.160 --> 0:05:25.839 encountered volunteers who I mean voters who were saying, you know, 0:05:25.880 --> 0:05:27.800 children should be at home with their parents, but to 0:05:27.920 --> 0:05:30.320 be fair in the end to vote with sixty percent 0:05:30.400 --> 0:05:33.360 in shavor. So it was pretty substantial, and I think 0:05:33.400 --> 0:05:35.400 it speaks to something that people said to me was 0:05:35.720 --> 0:05:37.919 we should do valid initiatives. Bring this to the people 0:05:37.960 --> 0:05:41.240 because the people want this and legislators aren't. Legislators may 0:05:41.279 --> 0:05:43.800 not be getting this done, but here's this thing. Those 0:05:43.839 --> 0:05:47.200 are threes and forest programs. It's very critical for early education, 0:05:47.600 --> 0:05:50.039 very critical component of childcare. But there's still zero to three, 0:05:50.120 --> 0:05:53.040 that's the most expensive, and then you still have aftercare, 0:05:53.080 --> 0:05:56.039 you still have summer. So states like Massachusetts they're working 0:05:56.080 --> 0:05:58.840 on something potentially, they're, you know, in early stages, trying 0:05:58.880 --> 0:06:02.320 to get something proposed for this coming legislative session. But 0:06:02.440 --> 0:06:04.160 what I talked to someone who's working on at her 0:06:04.279 --> 0:06:07.400 aim is, let's get far to thirteen. Let's stop saying 0:06:07.440 --> 0:06:10.200 it's fine for parents to spend all summer cobbling together care. 0:06:10.640 --> 0:06:12.719 And like most parents know, you're lucky if you find 0:06:12.760 --> 0:06:15.080 a campus open from nine to four and you're basically 0:06:15.120 --> 0:06:17.280 scrambling to figure out before a care in africare or 0:06:17.320 --> 0:06:19.840 your kids school and at fifteen and obviously no one's 0:06:19.920 --> 0:06:23.279 drop accommodated that. Bloomberg News US healthcare reporter Cynthia Coon's 0:06:23.320 --> 0:06:26.039 and Bloomberg Business Week editor Joel Weber, joining Bloomberg Quick 0:06:26.080 --> 0:06:28.960 Take anchor Tim Stanovic and me check out the entire 0:06:29.000 --> 0:06:31.680 remarks in the magazine. It's on newsstands online and on 0:06:31.720 --> 0:06:34.719 the Bloomberg terminal. Online and on the terminal is also 0:06:34.800 --> 0:06:38.000 where you'll find the international cover story about how South 0:06:38.080 --> 0:06:42.160 Korea's successful approach of regiment and masking aggressive testing and 0:06:42.240 --> 0:06:45.360 high tech contact tracing is a blueprint for the US 0:06:45.400 --> 0:06:48.800 and other democracies coming up from the childcare crisis to 0:06:48.839 --> 0:06:51.760 the healthcare crisis. Get ready for the COVID long haul. 0:06:51.920 --> 0:06:54.839 More from the President CEO at Northwell Health. That's next 0:06:54.880 --> 0:07:01.560 on Bloomberg Business Week. This is Bloomberg. This is Bloomberg 0:07:01.560 --> 0:07:05.440 Business Week with Cairol Mazer from Bloomberg Radio. Big week 0:07:05.480 --> 0:07:09.080 for COVID nineteen vaccine news, progress and some starts and 0:07:09.120 --> 0:07:11.440 stops as well. Which has really been a part of 0:07:11.480 --> 0:07:14.720 this entire pandemic and race for a vaccine really from 0:07:14.800 --> 0:07:16.840 day one. Well, someone who has seen it all from 0:07:16.920 --> 0:07:19.520 day one as well, and overseas the largest healthcare provider 0:07:19.600 --> 0:07:22.160 in New York State, they have treated over a hundred 0:07:22.200 --> 0:07:25.160 thousand COVID nineteen patients since the start of the pandemic. 0:07:25.440 --> 0:07:28.400 We're talking about Michael Dowling and his team. Michael is 0:07:28.400 --> 0:07:31.280 President CEO at Northwell Health. Mikea is also author of 0:07:31.320 --> 0:07:34.400 a new book, Leading through a Pandemic, The Inside Story 0:07:34.400 --> 0:07:38.120 of Humanity, Innovation and lessons Learned during the COVID nineteen crisis. 0:07:38.440 --> 0:07:42.640 He's optimistic and realistic about a COVID nineteen vaccine. What's 0:07:42.640 --> 0:07:46.320 important and we should be celebrating, and that is that 0:07:46.400 --> 0:07:49.400 we finally have a vaccine that we can actually stop 0:07:49.440 --> 0:07:52.720 to distribute. But I think everybody should be well aware 0:07:52.840 --> 0:07:55.720 that this is going to be many, many months before 0:07:55.840 --> 0:07:58.960 we were able to vaccinate the bulk of the population, 0:08:00.000 --> 0:08:02.400 and then we obviously have to deal with the issue 0:08:02.440 --> 0:08:05.000 that many many people in the public are very hesitant 0:08:05.000 --> 0:08:08.120 about taking a vaccine. So while while it's a great 0:08:08.160 --> 0:08:10.000 news that we have it, and it's a great news 0:08:10.000 --> 0:08:12.800 that it's beginning, which we should celebrate, as I said, 0:08:13.200 --> 0:08:15.280 but this is a long haul. This is not a 0:08:15.360 --> 0:08:18.560 quick fix answer at the moment, and it should in 0:08:18.600 --> 0:08:22.680 no way, uh give the opportunity for people to say 0:08:22.720 --> 0:08:24.920 that they don't need to be a mask wearing and 0:08:25.000 --> 0:08:29.360 social distancing and doing all of the prevention issues that 0:08:29.400 --> 0:08:32.240 we have been talking about for a long time. So 0:08:32.720 --> 0:08:35.240 it's it's a it's a great it's it's great news, 0:08:36.200 --> 0:08:39.720 but you know, the implementation of this is not easy. 0:08:39.760 --> 0:08:42.240 It's going to be complicated. We will deal with it, 0:08:42.320 --> 0:08:45.760 we will fucceed on it and with it, but it's 0:08:45.840 --> 0:08:48.200 it's going to be months and months and months. Well, Michael, 0:08:48.240 --> 0:08:50.240 to to that end, I mean, you have seventy four 0:08:50.320 --> 0:08:53.720 thousand employees at north Well Health. When are they getting 0:08:53.720 --> 0:08:58.120 the vaccine? Well, the first batch of vaccines we are 0:08:58.160 --> 0:09:02.240 supposed to get at the beginning of next week. Then 0:09:02.320 --> 0:09:05.120 the number of doses that we're going to get, I 0:09:05.120 --> 0:09:08.320 think we don't know exactly. I put there relatively small 0:09:08.440 --> 0:09:12.160 numbers compared to the numbers of people we have gone. Obviously, 0:09:12.200 --> 0:09:16.199 we prioritize, we prioritize using The first people to get 0:09:16.200 --> 0:09:20.080 the vaccine will be intensive care workers and emergency department workers. 0:09:21.040 --> 0:09:23.480 The latest news that I hear is that I'll get 0:09:23.480 --> 0:09:26.520 somewhere between seven and a thousand doses and the vaccine. 0:09:27.440 --> 0:09:29.800 That's good news, but it's a small number and it 0:09:29.880 --> 0:09:34.360 will come out incrementally over the next month to two months, etcetera. 0:09:34.440 --> 0:09:39.080 So they do all employees. It's gone, probably going to 0:09:39.120 --> 0:09:41.640 take the next month or so. That's a suming we 0:09:41.720 --> 0:09:44.600 get the doses that on the incremental basis that we 0:09:44.640 --> 0:09:47.679 assume we will. So we probably will be starting at 0:09:47.679 --> 0:09:50.559 the beginning of next week Tuesday Wednesday, is my guest. 0:09:51.360 --> 0:09:55.320 And do you anticipate that you will? I'm assuming do 0:09:55.400 --> 0:09:58.560 the two doses that's necessary. I mean, that's that that's 0:09:58.559 --> 0:10:00.600 what you guys are gonna assue that you will have 0:10:00.720 --> 0:10:04.240 enough to do. Yes, Um, the penalty will give you 0:10:04.280 --> 0:10:07.640 the doses for the first for the first round, and 0:10:07.679 --> 0:10:09.400 then they come back and they give you the number 0:10:09.440 --> 0:10:11.080 for the second round. So you have to get the 0:10:11.080 --> 0:10:16.160 two doses because because the vaccine begins to really take 0:10:16.200 --> 0:10:19.439 affect after you get the second dose, which is about 0:10:19.480 --> 0:10:22.000 three weeks after you get the first one, and the 0:10:22.360 --> 0:10:24.840 management the bad and the data systems you need on 0:10:24.920 --> 0:10:28.320 that to be complicated. Um. But yes, we will be 0:10:28.360 --> 0:10:32.560 doing board obviously you have to um and and then 0:10:32.600 --> 0:10:34.360 you know we got you know, the nursing homes are 0:10:34.360 --> 0:10:37.640 going to get done, and the high the staff and 0:10:38.160 --> 0:10:40.040 just mentor will get done. And then you go to 0:10:40.080 --> 0:10:42.480 the next tiers of staff over the next month, Apool, 0:10:42.800 --> 0:10:45.480 are you at all nervous that you won't get everything 0:10:45.520 --> 0:10:47.360 you need? And I just think about all the promises 0:10:47.360 --> 0:10:51.319 for PPE, you know, during the height of the virus 0:10:51.480 --> 0:10:54.400 in the springtime here and they're just the supply chain 0:10:54.480 --> 0:10:57.600 was terrible. Are you nervous at all though, Mike that 0:10:58.000 --> 0:11:00.800 there's gonna be some problems with hiccups along the way. Oh, 0:11:00.880 --> 0:11:03.280 there will be hiccups along the way. There will be 0:11:03.360 --> 0:11:05.880 confusion along the way. That's the reality of all of 0:11:05.920 --> 0:11:08.240 these things. We are very well prepared here and not well. 0:11:08.320 --> 0:11:11.320 We have unbelievably detailed plans. We know exactly what we 0:11:11.360 --> 0:11:15.360 need to do. But it would be foolish to think 0:11:15.400 --> 0:11:18.440 that this is going to go so smoothly that nothing 0:11:18.480 --> 0:11:21.240 will will will happen. There will create a hiccup. I mean, 0:11:21.360 --> 0:11:23.480 it will happen. We just have to respond to it. 0:11:23.480 --> 0:11:25.679 As I all staff when I met with them, is 0:11:25.720 --> 0:11:29.679 that we have to manage the confusion intelligently. That's what 0:11:29.760 --> 0:11:32.079 we have to do. But that's what operations does all 0:11:32.080 --> 0:11:34.640 the time anyway, No, no, nothing that has to be 0:11:34.679 --> 0:11:39.160 operationalized always go smootly. As the fact of life. It 0:11:39.320 --> 0:11:41.480 is what it is, and we will just have to 0:11:41.520 --> 0:11:44.520 deal with it. We have all the processes in place. 0:11:44.720 --> 0:11:48.840 If we get enough doses to do everybody and and 0:11:48.840 --> 0:11:50.880 on the in the sequence that they suggest, and we 0:11:50.960 --> 0:11:53.880 will be fine. Um. And if we have to change 0:11:53.920 --> 0:11:55.840 along the way, we change along the way. That's the 0:11:55.920 --> 0:11:58.920 nature of the operations. Well, Michael, I want to get 0:11:58.920 --> 0:12:03.120 an update about COVID capacity and hospital capallacy capacity in 0:12:03.400 --> 0:12:08.000 your health system right now, Um, you treated nearly all 0:12:08.040 --> 0:12:11.920 of New York State over COVID nineteen patients. What are 0:12:11.920 --> 0:12:16.000 the hospitals like right now? Right now, we have today 0:12:16.280 --> 0:12:22.120 about seven hundred and sixty cases in our hospital um, 0:12:22.160 --> 0:12:26.920 and that has gone up from about eighty patients. This 0:12:27.080 --> 0:12:29.560 is on a daily basis about three weeks ago, so 0:12:29.600 --> 0:12:32.120 the increase has been lauged. But we've got to put 0:12:32.160 --> 0:12:35.520 it in context. Back in April at the height, when 0:12:35.520 --> 0:12:37.600 we were at the epicenter of the height of the issue, 0:12:37.640 --> 0:12:41.040 we had three thousand, five comment patients in our hospitals. 0:12:41.040 --> 0:12:42.600 So what the seven hundred It looks like it's a 0:12:42.679 --> 0:12:45.000 huge number, It is very small religive to what we 0:12:45.080 --> 0:12:48.560 had before. So we are prepared if the number keeps 0:12:48.559 --> 0:12:52.079 going up, which I shume it will given the holiday season, 0:12:52.160 --> 0:12:54.720 and I do believe that probably the worst period of 0:12:54.760 --> 0:12:58.080 time would be right after Christmas for a couple of 0:12:58.080 --> 0:13:01.040 weeks in January. Uh. And we are ready. We had 0:13:01.040 --> 0:13:05.400 the capacity, we have the supplies, the staff morale is good. 0:13:05.880 --> 0:13:09.280 We have the staff um. You know, if we need 0:13:09.280 --> 0:13:12.280 more as your capacity, we've got it. So we're pretty 0:13:12.280 --> 0:13:15.320 well propelled. And I'm working with all of the other 0:13:15.440 --> 0:13:18.400 health systems in New York, especially in downstates here in 0:13:18.440 --> 0:13:21.320 New York, and we talk on a continuous basis, and 0:13:21.360 --> 0:13:24.280 I think we're all, well, we're ready. We handled it before, 0:13:24.360 --> 0:13:27.000 we will handle it again. I don't think we will 0:13:27.040 --> 0:13:29.280 get back to anything close to what we had back 0:13:29.320 --> 0:13:33.040 in April. Um, that's our hope, of course, but if 0:13:33.080 --> 0:13:35.800 it does happen, we will be able to take care. 0:13:35.920 --> 0:13:39.199 We better position today than we were six months ago. 0:13:39.360 --> 0:13:43.600 We have better treatment methodologies. You know, not as many 0:13:43.640 --> 0:13:45.800 people are going into I see us today, and not 0:13:45.840 --> 0:13:49.000 as many people are being intubated today. The treatments are 0:13:49.040 --> 0:13:51.480 better and the processes are better. But we are We 0:13:51.760 --> 0:13:54.520 got the capacity, supplies, were in a good position. So 0:13:54.760 --> 0:13:56.280 I just want make sure I heard the numbers right. 0:13:56.360 --> 0:13:59.559 So you said seven six cases COVID cases in your 0:13:59.559 --> 0:14:02.600 hospital today from eight from eighty a few weeks ago. 0:14:03.160 --> 0:14:05.440 We were both three weeks ago, we had let's say 0:14:05.559 --> 0:14:07.400 three to four weeks ago, we had about eighty on 0:14:07.440 --> 0:14:10.520 a daily basis, Okay, so exponentially creep up, you know, 0:14:10.559 --> 0:14:13.880 we got to hundred fifty and in the last week 0:14:13.920 --> 0:14:18.440 it has jumped, you know, you know, post Thanksgiving. Yeah, 0:14:18.640 --> 0:14:22.640 and then we have obviously of the election process. Um, 0:14:23.000 --> 0:14:24.800 you know, doing the election, there's a lot of people 0:14:24.800 --> 0:14:27.320 out and about, and then we have pockets in the 0:14:27.360 --> 0:14:31.160 community that decide or whatever stupid reason, do not want 0:14:31.200 --> 0:14:34.160 to wear masks and do not want the social distance 0:14:34.200 --> 0:14:37.760 and I'm not complying with public health safety standards and 0:14:37.840 --> 0:14:42.440 indoors communities, you do have a higher incidence of infections. Well, 0:14:42.480 --> 0:14:44.680 we have definitely heard that from so many, including the 0:14:44.760 --> 0:14:47.960 nation's top doctors and virus experts. Wearing masks and social 0:14:48.000 --> 0:14:51.240 distancing makes a big difference. That's Michael Dowling, President CEO 0:14:51.280 --> 0:14:54.280 at Northwell Health. You're listening to Bloomberg Business Week coming 0:14:54.320 --> 0:14:56.760 up the news that rocked the movie industry, brought on 0:14:56.880 --> 0:14:59.880 by the virus. Once our Alice weighs in, that's an 0:15:00.000 --> 0:15:05.360 next This is Bloomberg is Bloomberg Business Week with Garrol 0:15:05.400 --> 0:15:09.440 Masser from Bloomberg Radio. Just about a week ago, Warner 0:15:09.480 --> 0:15:12.280 Brothers said it will make all of their one films, 0:15:12.280 --> 0:15:15.840 including Dune and Matrix four, available on HBO Max at 0:15:15.840 --> 0:15:18.600 the same time as they open up movie theaters, ending 0:15:18.680 --> 0:15:21.800 theater chain's exclusivity. It's what we like to call up 0:15:21.840 --> 0:15:25.080 Wait what moment, which is exactly how actors, directors, you 0:15:25.200 --> 0:15:27.360 name it, took it, which is why it also caught 0:15:27.360 --> 0:15:30.040 the attention of star Alice Craig Moffatt founding partner and 0:15:30.120 --> 0:15:33.160 senior Alice at Moffatt Nathanson, who has covered the telecom, 0:15:33.280 --> 0:15:35.840 cable and satellite space for years. He's been named the 0:15:35.880 --> 0:15:39.560 number one Alice by Institutional Investor magazine year after year. 0:15:39.960 --> 0:15:41.680 Craig was also the founder and CEO of the e 0:15:41.760 --> 0:15:44.840 commerce business at Southeby's. Well. Craig filled us in on 0:15:44.880 --> 0:15:47.880 why investors in A. T and T, which owns Warner Brothers, 0:15:48.160 --> 0:15:51.120 needs to pay attention to this news. The big news 0:15:51.720 --> 0:15:55.200 really is the big announcement from A. T and T, 0:15:55.520 --> 0:15:59.880 which about bringing movies in so called day and day 0:16:00.080 --> 0:16:01.960 or the same day that they bring in the movie theaters, 0:16:02.000 --> 0:16:06.240 bring them the bringing them to HBO Max. And that 0:16:06.440 --> 0:16:12.680 is really an extraordinary development. Um. It has implications for 0:16:12.880 --> 0:16:16.479 the exhibitors, that is, the movie theaters, It has implications 0:16:16.480 --> 0:16:18.720 for A. T and T itself, and I think, as 0:16:18.760 --> 0:16:21.160 you saw with a lot of the blowback today, it 0:16:21.200 --> 0:16:24.360 has a big, big implications for the actors and artists 0:16:24.360 --> 0:16:28.000 and directors. Boy oh boy, did they hear an earful 0:16:28.120 --> 0:16:31.240 from how angry some of their stakeholders are. Kind a 0:16:31.280 --> 0:16:35.400 million questions. So do you think this is one thing 0:16:35.720 --> 0:16:37.320 or just a short term thing, or do you think 0:16:37.360 --> 0:16:41.120 this is something that becomes part of how it happens 0:16:41.200 --> 0:16:45.520 longer term and maybe forever. Well, you know, it's it's it's. 0:16:45.560 --> 0:16:48.960 It puts them in a in a difficult position because 0:16:49.240 --> 0:16:54.600 Jason clar who formerly of Hulu and the person who 0:16:54.680 --> 0:16:59.960 put himself out front in this decision um uh Inten 0:17:00.000 --> 0:17:04.160 now running Warner Media, made it very clear that this 0:17:04.200 --> 0:17:08.840 is a decision about customers and that the customers want 0:17:09.040 --> 0:17:12.080 movies day and date. It's what they've always wanted. Um. 0:17:12.200 --> 0:17:14.800 And I don't think anybody would argue with that. It's 0:17:15.000 --> 0:17:17.639 customers would love to have movies day and date. The 0:17:17.720 --> 0:17:19.800 problem is, once you say that, it's a little hard 0:17:19.800 --> 0:17:21.560 to put the genie back in the bottle and then 0:17:21.600 --> 0:17:25.800 say what we've in two we know want to put 0:17:25.840 --> 0:17:31.880 customers first. Um And so uh it feels like not 0:17:31.960 --> 0:17:34.440 just to me, but I think to most people as 0:17:34.480 --> 0:17:39.920 if this is um going to become an expectation and uh, 0:17:40.400 --> 0:17:43.159 the implications of that again are just enormous. Well, I 0:17:43.240 --> 0:17:45.439 love listen you just get into the weeds with all 0:17:45.480 --> 0:17:47.080 of this, and you really break it down at you know, 0:17:47.119 --> 0:17:50.000 when somebody creates a piece of content, you know, a 0:17:50.080 --> 0:17:53.520 major film or something, you know, the theaters is just 0:17:53.720 --> 0:17:55.840 one level, right, but there's so many other levels, and 0:17:55.920 --> 0:17:59.080 you go through the pay windows, right, And you say 0:17:59.119 --> 0:18:03.000 that often when it does its theatrical release, it doesn't 0:18:03.000 --> 0:18:06.080 necessarily make money there, But it's the later windows, Like 0:18:06.119 --> 0:18:08.520 you talk about the pay one window, like an HBO, 0:18:08.760 --> 0:18:12.160 that's where it starts to maybe you know, at least 0:18:12.160 --> 0:18:16.840 be in the green on some kind of movie. And 0:18:16.840 --> 0:18:19.960 and remember it's we're not just talking about a T 0:18:20.119 --> 0:18:23.880 and T and Warner Media themselves. We're also talking about 0:18:24.320 --> 0:18:29.720 directors and actors who have participation deals. So Christopher Nolan 0:18:31.000 --> 0:18:35.800 a critically important director to Warner Warner Media, um Is, 0:18:35.840 --> 0:18:39.600 our Rate and um As are lots of these directors. 0:18:39.640 --> 0:18:44.800 So you know, in Legendary Entertainment, which was offered hundreds 0:18:44.800 --> 0:18:47.639 of millions of dollars for King Kong versus Godzilla to 0:18:47.680 --> 0:18:51.520 go direct to Netflix, took it, took the deal to 0:18:51.640 --> 0:18:55.560 Warner Brothers instead, and then got blindsided and wasn't told 0:18:55.600 --> 0:18:58.480 in advance. From what we read today, that Oh, by 0:18:58.520 --> 0:19:02.120 the way, we're taking your movie out of movie theaters 0:19:02.240 --> 0:19:04.320 or at least, um, we're going to be making it 0:19:04.359 --> 0:19:08.800 available at no extra charge on HBO same day. Um. 0:19:08.840 --> 0:19:13.240 If you're a director and you're and or an investor 0:19:13.280 --> 0:19:16.399 in one of those films, and you've got hundreds of 0:19:16.440 --> 0:19:19.639 millions of dollars writing on the performance at the box 0:19:19.720 --> 0:19:22.920 office based on your contract, your head is kind of explode. 0:19:23.040 --> 0:19:26.760 And from what we understand, um, they were not not 0:19:26.920 --> 0:19:30.440 told in advance in order to keep secrecy. So when 0:19:30.480 --> 0:19:34.080 when they did this with Wonder Woman, which was you 0:19:34.160 --> 0:19:37.600 may recall Wonder Woman was the first movie and that 0:19:37.680 --> 0:19:40.240 was very done purely as a one off. It was 0:19:40.720 --> 0:19:44.679 single film with no expectations of any others to follow. 0:19:45.080 --> 0:19:47.399 But you're talking about what happened with Wonder Woman and 0:19:47.400 --> 0:19:50.000 what people are now calling the Wonder Woman money. You know, 0:19:50.960 --> 0:19:55.240 this comes down to, you know, how people are paid, right, 0:19:55.600 --> 0:19:58.480 whether it's directors, actors, all of the people involved in 0:19:58.520 --> 0:20:00.880 getting a movie to the the it are. It kind 0:20:00.880 --> 0:20:03.280 of comes down to that, right, the upfront money versus 0:20:03.600 --> 0:20:07.200 maybe the money that comes later after ticket sales. That's right. 0:20:07.280 --> 0:20:10.199 And the reason this is also important is look at 0:20:10.240 --> 0:20:12.159 the end of the day, A T and T is 0:20:12.200 --> 0:20:17.159 a phone company, and culturally, um, you always have to 0:20:17.200 --> 0:20:19.920 wonder how well is it is a phone company going 0:20:19.960 --> 0:20:23.760 to adapt to what is essentially a creative business. Well, 0:20:23.840 --> 0:20:26.359 time will certainly tell about how well the synergies between 0:20:26.359 --> 0:20:28.320 A T and T and Warner Brothers work out. That's 0:20:28.359 --> 0:20:31.480 Craig Moffatt, founding partner and senior analyst at Mofatt Nathanson. 0:20:31.800 --> 0:20:34.920 Find that full conversation on our Bloomberg Business Week podcast 0:20:34.960 --> 0:20:38.240 feed at Bloomberg dot com or Apple Podcasts. You're listening 0:20:38.240 --> 0:20:40.800 to Bloomberg Business Week. Our next guest doesn't mince words 0:20:40.840 --> 0:20:43.119 when it comes to the commercial real estate market. He 0:20:43.240 --> 0:20:46.080 says it's the worst since, well, in a long long time. 0:20:46.440 --> 0:20:49.960 More from Vestition's chairman. That's coming up. This is Bloomberg. 0:20:59.000 --> 0:21:02.879 Is Bloomberg Business Week with Garrol Mazer from Bloomberg Radio 0:21:03.160 --> 0:21:05.400 made a flurry of real estate headlines on the Bloomberg 0:21:05.400 --> 0:21:08.000 this week, including Manhattan apartment rant sinking to the lowest 0:21:08.080 --> 0:21:10.840 level in a decade, San Francisco apartment rants plunging the 0:21:10.840 --> 0:21:14.040 most in the US, and Airbnb holding its i PO 0:21:14.280 --> 0:21:17.920 as its pandemic recovery has outpaced major hotel chains. The 0:21:18.000 --> 0:21:20.919