1 00:00:01,400 --> 00:00:04,120 Speaker 1: Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney, along 2 00:00:04,120 --> 00:00:06,200 Speaker 1: with my co host of Bonnie Quinn. Every business day 3 00:00:06,240 --> 00:00:09,240 Speaker 1: we bring you interviews from CEOs, A, market pros, and 4 00:00:09,400 --> 00:00:12,799 Speaker 1: Bloomberg experts, along with essential market moving news. Kind the 5 00:00:12,800 --> 00:00:16,320 Speaker 1: Bloomberg Markets Podcast on Apple Podcasts or wherever you listen 6 00:00:16,360 --> 00:00:21,279 Speaker 1: to podcasts, and on Bloomberg dot com. Well. In a 7 00:00:21,440 --> 00:00:24,360 Speaker 1: video released shortly after his return to the White House 8 00:00:24,400 --> 00:00:27,000 Speaker 1: from Walter Reet Hospital, President Trump sought the play down 9 00:00:27,040 --> 00:00:29,320 Speaker 1: the peril of the virus that has killed more than 10 00:00:29,320 --> 00:00:32,360 Speaker 1: two hundred ten thousand Americans since Let's take a listen. 11 00:00:33,159 --> 00:00:36,159 Speaker 1: Don't let it dominate, don't let it take over your lives. 12 00:00:36,760 --> 00:00:39,520 Speaker 1: Don't let that happen. We're the greatest country in the world. 13 00:00:39,960 --> 00:00:42,240 Speaker 1: We're going back, We're going back to work. We're gonna 14 00:00:42,240 --> 00:00:44,760 Speaker 1: be out front as your leader. I had to do that. 15 00:00:44,920 --> 00:00:46,680 Speaker 1: I knew there's danger to it, but I had to 16 00:00:46,720 --> 00:00:51,600 Speaker 1: do it. I stood out front. I lead. That was 17 00:00:51,640 --> 00:00:54,520 Speaker 1: President Trump speaking in a video. Let's get some color 18 00:00:54,680 --> 00:00:56,480 Speaker 1: on some of those points there. We can do that 19 00:00:56,560 --> 00:01:00,760 Speaker 1: with dr amish Abalgia senior scholar, Ineffectiousness East physician, the 20 00:01:00,840 --> 00:01:03,960 Speaker 1: Johns Hopkins Center for Health Security at the Bloomberg School 21 00:01:04,000 --> 00:01:06,639 Speaker 1: of Public Health. We should note that the JOHNS Hopkins 22 00:01:06,680 --> 00:01:09,440 Speaker 1: Bloomberg School of Public Health is supported by Michael R. Bloomberg, 23 00:01:09,440 --> 00:01:12,959 Speaker 1: founder of Bloomberg LP, Bloomberg Philanthropies. And this radio and 24 00:01:13,000 --> 00:01:15,720 Speaker 1: TV operation. Dr Dodger, thanks so much for joining us. 25 00:01:15,760 --> 00:01:19,160 Speaker 1: What were your thoughts as to President President Trump and 26 00:01:19,160 --> 00:01:21,720 Speaker 1: his comments since leaving the hospital that don't let it 27 00:01:21,760 --> 00:01:24,479 Speaker 1: dominate you. He even made it in a tweet today 28 00:01:24,840 --> 00:01:26,840 Speaker 1: comparing it to the flu. What are your thoughts there? 29 00:01:28,160 --> 00:01:30,800 Speaker 1: I think these are kind of misguided statements. And the 30 00:01:30,880 --> 00:01:33,880 Speaker 1: fact is coronavirus is dominating us, and it's dominating us 31 00:01:33,920 --> 00:01:37,200 Speaker 1: because we've failed to control it and we haven't still 32 00:01:37,720 --> 00:01:40,920 Speaker 1: no ability to test, trace and isolate, and until we do, 33 00:01:41,319 --> 00:01:43,400 Speaker 1: the virus is going to dominate us, whether or not 34 00:01:43,440 --> 00:01:46,399 Speaker 1: we want to or not. And this isn't something to 35 00:01:46,440 --> 00:01:49,160 Speaker 1: compare it to influenza. This is at least six times 36 00:01:49,160 --> 00:01:53,360 Speaker 1: more fatal than influenza, and influenza isn't a worldwide calamity 37 00:01:53,400 --> 00:01:55,920 Speaker 1: and disruption the way COVID nineteen is. So I think 38 00:01:55,960 --> 00:01:59,840 Speaker 1: this is the President getting back to his standard down 39 00:02:00,040 --> 00:02:03,880 Speaker 1: laying misinformation and outright lies about the virus that he 40 00:02:03,960 --> 00:02:08,800 Speaker 1: himself luckily has survived, dr adlda. Should everybody get the 41 00:02:08,800 --> 00:02:13,080 Speaker 1: exact same course of treatment that the President has gotten. No, 42 00:02:13,320 --> 00:02:16,600 Speaker 1: each person's treatment is individualized based upon what types of 43 00:02:16,639 --> 00:02:20,720 Speaker 1: symptoms they're having. So if somebody needs oxygen, they usually 44 00:02:20,720 --> 00:02:23,040 Speaker 1: do get rem desevere in DEXI methods, and that's part 45 00:02:23,080 --> 00:02:26,160 Speaker 1: of the standard of care for individuals who require oxygen. 46 00:02:26,520 --> 00:02:29,480 Speaker 1: The regeneration antibody treatment that he got on compassionate use, 47 00:02:29,560 --> 00:02:32,359 Speaker 1: that's not available to the general public in the clinical 48 00:02:32,400 --> 00:02:35,320 Speaker 1: trials right now, So that isn't something that we give 49 00:02:35,360 --> 00:02:37,920 Speaker 1: to people. We don't know if it works yet. We 50 00:02:37,919 --> 00:02:39,679 Speaker 1: don't know if it works even in the President's case. 51 00:02:39,720 --> 00:02:42,160 Speaker 1: But the steroids and the remdesks of your are our 52 00:02:42,200 --> 00:02:46,320 Speaker 1: standard of care for oxygen basically oxygen. Docay, I know 53 00:02:46,400 --> 00:02:48,959 Speaker 1: the President is not your patient, but in your opinion, 54 00:02:49,040 --> 00:02:52,160 Speaker 1: based upon the knowledge that we have publicly available, should 55 00:02:52,240 --> 00:02:55,799 Speaker 1: he have left the hospital, well, I think I've had 56 00:02:55,800 --> 00:02:58,560 Speaker 1: patients that do well and they get discharged pretty quickly 57 00:02:58,800 --> 00:03:01,320 Speaker 1: and turn around quickly even when they've been on oxygen, 58 00:03:01,880 --> 00:03:03,680 Speaker 1: So so I do. I do think it's something that 59 00:03:03,720 --> 00:03:05,520 Speaker 1: you have to look at. Is he on a good trajectory, 60 00:03:05,560 --> 00:03:08,000 Speaker 1: have his symptoms improved? Is he no longer requiring supple 61 00:03:08,000 --> 00:03:10,080 Speaker 1: metal oxygen? And then the other question is where are 62 00:03:10,120 --> 00:03:11,880 Speaker 1: you sending him to? Are you sending him to somewhere 63 00:03:11,880 --> 00:03:14,519 Speaker 1: that faith where he has support in case he gets 64 00:03:14,520 --> 00:03:17,120 Speaker 1: into trouble again. And obviously the White House is not 65 00:03:17,200 --> 00:03:19,720 Speaker 1: the same thing as sending him to an apartment somewhere 66 00:03:19,720 --> 00:03:21,799 Speaker 1: where there's nobody to help him walk up four flights 67 00:03:21,800 --> 00:03:25,080 Speaker 1: of stairs. So the White House has a sophisticated medical 68 00:03:25,160 --> 00:03:28,040 Speaker 1: unit which can give supplemental oxygen, which can give intravenous drugs. 69 00:03:28,160 --> 00:03:30,080 Speaker 1: They have around the clock doctors and nurses and other 70 00:03:30,120 --> 00:03:33,160 Speaker 1: medical professionals there. So he really isn't going home in 71 00:03:33,200 --> 00:03:34,880 Speaker 1: the sense that you and I might be going home. 72 00:03:34,880 --> 00:03:39,360 Speaker 1: He's going to basically an advanced almost almost an advanced 73 00:03:39,360 --> 00:03:42,920 Speaker 1: hospital in many by many standards, apart from putting other 74 00:03:42,960 --> 00:03:45,240 Speaker 1: people at risk when he takes off the mask indoors 75 00:03:45,240 --> 00:03:47,040 Speaker 1: at the White House or when he takes a car 76 00:03:47,160 --> 00:03:51,320 Speaker 1: ride with Secret Service agents, albeit in Ppe. Potentially, what 77 00:03:51,480 --> 00:03:54,760 Speaker 1: about the idea that he is being active on these 78 00:03:54,840 --> 00:03:59,640 Speaker 1: drugs doesn't mean that he's doing himself some damage If 79 00:03:59,680 --> 00:04:02,720 Speaker 1: he feel feels good and gets active or is that 80 00:04:02,840 --> 00:04:05,760 Speaker 1: totally fine? If you feel good, then you know, make 81 00:04:05,840 --> 00:04:08,520 Speaker 1: use of your body while you can. Well, we want 82 00:04:08,560 --> 00:04:12,600 Speaker 1: people to re engage with their activities of daily living 83 00:04:13,040 --> 00:04:14,840 Speaker 1: in a measured way. We want to We don't want 84 00:04:14,840 --> 00:04:16,920 Speaker 1: people to go too fast, too quickly, So I think 85 00:04:16,920 --> 00:04:19,320 Speaker 1: it's important that his doctors gauge it. And it's very 86 00:04:19,320 --> 00:04:20,919 Speaker 1: hard to do that from a distance because I'm not 87 00:04:21,000 --> 00:04:23,520 Speaker 1: his position to know exactly how much trouble he has 88 00:04:23,600 --> 00:04:26,119 Speaker 1: doing activities of daily living. But we do want people 89 00:04:26,160 --> 00:04:31,080 Speaker 1: to not be bedridden and not not do anything, because 90 00:04:31,080 --> 00:04:33,040 Speaker 1: that also puts you at risk for complications. So if 91 00:04:33,080 --> 00:04:35,040 Speaker 1: you are able to be active after you've recovered from 92 00:04:35,040 --> 00:04:37,839 Speaker 1: COVID nineteen or even during COVID nineteen, it's important to 93 00:04:38,040 --> 00:04:41,159 Speaker 1: take a measured amount of activity and titrate that based 94 00:04:41,160 --> 00:04:43,200 Speaker 1: on your symptoms and how you're doing overall. And that's 95 00:04:43,200 --> 00:04:45,799 Speaker 1: something that his doctors hopefully are helping him to decide. 96 00:04:46,800 --> 00:04:49,200 Speaker 1: Dr do we know whether he is still in sexious? 97 00:04:49,200 --> 00:04:52,600 Speaker 1: The president he he is still infectious. We we know 98 00:04:52,640 --> 00:04:54,839 Speaker 1: that people are infectious for at least a period of 99 00:04:54,839 --> 00:04:57,640 Speaker 1: ten days from when symptoms occur, so he is still 100 00:04:58,160 --> 00:05:00,480 Speaker 1: still contagious to other people, probably or a couple of 101 00:05:00,600 --> 00:05:04,120 Speaker 1: at least several more days. Doctor, There's probably not much 102 00:05:04,120 --> 00:05:06,280 Speaker 1: you can say about this, but isn't it concerning that 103 00:05:06,800 --> 00:05:09,920 Speaker 1: cases are just proliberating now throughout the White House and 104 00:05:10,320 --> 00:05:12,520 Speaker 1: all sorts of people that were involved in debate prep 105 00:05:12,600 --> 00:05:14,800 Speaker 1: We're at the Rose Garden, you know, and and and 106 00:05:14,839 --> 00:05:17,920 Speaker 1: even staff at the White House, and presumably they'll get 107 00:05:18,000 --> 00:05:23,560 Speaker 1: medical care, but this will put pressure on DC medical resources. Again, Yes, 108 00:05:23,640 --> 00:05:27,799 Speaker 1: this is unacceptable and inexcusable. What's going on this White 109 00:05:27,800 --> 00:05:31,320 Speaker 1: House super spreader cluster needs to be investigated appropriately, in 110 00:05:31,520 --> 00:05:34,120 Speaker 1: inappropriate action taken. This is the biggest super spreading event 111 00:05:34,120 --> 00:05:35,800 Speaker 1: we've seen in DC, and it was in the White House, 112 00:05:35,839 --> 00:05:38,640 Speaker 1: in the most protective place on the planet. And I 113 00:05:38,680 --> 00:05:41,520 Speaker 1: think that this is something that we need to understand 114 00:05:41,760 --> 00:05:44,000 Speaker 1: what the dynamics are transmission were there. We need to 115 00:05:44,080 --> 00:05:47,039 Speaker 1: contact race and case investigate to understand how far this 116 00:05:47,080 --> 00:05:49,720 Speaker 1: will reach. Because these people, although they were on federal 117 00:05:49,760 --> 00:05:52,600 Speaker 1: property in the DC Public Health Department doesn't have jurisdiction there. 118 00:05:52,600 --> 00:05:54,920 Speaker 1: There are a lot of them are DC residents and 119 00:05:54,960 --> 00:05:58,600 Speaker 1: the DC Public Health authorities need to contact trace those 120 00:05:58,600 --> 00:06:00,680 Speaker 1: individuals to make sure that they're not starting to change 121 00:06:00,680 --> 00:06:02,920 Speaker 1: the transmission that are going to land on vulnerable people. 122 00:06:02,920 --> 00:06:05,680 Speaker 1: We've already had the President hospitalized and we have former 123 00:06:05,720 --> 00:06:08,760 Speaker 1: Governor Christie hospitalized based on these events. So we don't 124 00:06:08,760 --> 00:06:11,320 Speaker 1: want more people hospitalized because of the failure of the 125 00:06:11,320 --> 00:06:14,200 Speaker 1: White House to actually take an event that they caused 126 00:06:14,320 --> 00:06:19,360 Speaker 1: and perpetuated. Seriously, do we know whether there is contact 127 00:06:19,360 --> 00:06:21,760 Speaker 1: facing going on for those people that were at the 128 00:06:21,800 --> 00:06:26,640 Speaker 1: Rose Garden event. What we've heard is that the DC 129 00:06:26,760 --> 00:06:30,240 Speaker 1: Public Health has not had much cooperation from from the 130 00:06:30,240 --> 00:06:33,599 Speaker 1: White House. We've heard the CDC had a contact tracing team, 131 00:06:33,800 --> 00:06:35,559 Speaker 1: but they're not doing it. So this is being handled 132 00:06:35,600 --> 00:06:37,599 Speaker 1: internally from the White House. So like most things that 133 00:06:37,640 --> 00:06:40,080 Speaker 1: have happened, are regarding this is probably this is going 134 00:06:40,120 --> 00:06:43,840 Speaker 1: to be characterized by opaqueness and obfuscation, and so I'm 135 00:06:43,880 --> 00:06:46,040 Speaker 1: not sure how much contact anything is going on. We're 136 00:06:46,040 --> 00:06:50,039 Speaker 1: hearing that people were not contacted. For example, uh, the 137 00:06:50,080 --> 00:06:53,400 Speaker 1: governor of of of Ohio said he was not contacted 138 00:06:53,440 --> 00:06:56,279 Speaker 1: about the fact that people that the debate had positive 139 00:06:56,279 --> 00:06:59,560 Speaker 1: people there. So I'm unclear to how robust is contact 140 00:06:59,600 --> 00:07:02,360 Speaker 1: tracing is going on. And in the president position, Dr 141 00:07:02,360 --> 00:07:04,800 Speaker 1: Commy has been no help in this manner. Uh So 142 00:07:05,560 --> 00:07:07,240 Speaker 1: I don't have a great confidence that they will be 143 00:07:07,279 --> 00:07:09,840 Speaker 1: able to stop these changes of transmissions because they're choosing 144 00:07:09,840 --> 00:07:12,640 Speaker 1: not to soft this change of transmission. Wow, just let 145 00:07:12,680 --> 00:07:15,480 Speaker 1: that thing in for a second. Dr Amish Adulga, thank 146 00:07:15,560 --> 00:07:18,320 Speaker 1: you so much. Really a great pleasure to speak with 147 00:07:18,360 --> 00:07:22,560 Speaker 1: you always. Dr Adulga is senior scholar and infectious disease 148 00:07:22,640 --> 00:07:27,160 Speaker 1: physician at the Johns Hopkins Center for Health Security. That 149 00:07:27,320 --> 00:07:31,000 Speaker 1: is a pretty stunning turn of affairs. We we knew it, 150 00:07:31,080 --> 00:07:33,080 Speaker 1: but to hear somebody who has treated patients, who has 151 00:07:33,120 --> 00:07:37,440 Speaker 1: released patients, who you know largely is you know, watching 152 00:07:37,440 --> 00:07:40,360 Speaker 1: what's going on and assuming the best, to hear this 153 00:07:40,520 --> 00:07:43,600 Speaker 1: is pretty stunning, Paul, It really is. It just flies 154 00:07:43,840 --> 00:07:45,960 Speaker 1: in the face of all the science that we know 155 00:07:46,280 --> 00:07:49,880 Speaker 1: that we know has worked so well, which is you 156 00:07:49,920 --> 00:07:52,840 Speaker 1: know where your mask keeps six ft apart? Wash your hands. 157 00:07:52,840 --> 00:07:54,320 Speaker 1: We know that here are the people in the Metro 158 00:07:54,360 --> 00:07:56,840 Speaker 1: and York area no better than anybody, and not to 159 00:07:56,840 --> 00:08:02,000 Speaker 1: see it followed by our leaders is frustrated. This is 160 00:08:02,040 --> 00:08:06,360 Speaker 1: Bloomberg Markets with Paul Sweeney and Bonny Quinn on Bloomberg Radio. 161 00:08:07,600 --> 00:08:09,880 Speaker 1: During these tough times. Do you find yourself looking for 162 00:08:09,960 --> 00:08:14,280 Speaker 1: images of puppies online? Well, if you do, then you 163 00:08:14,320 --> 00:08:17,160 Speaker 1: definitely want to listen into our next interview because we're 164 00:08:17,160 --> 00:08:20,680 Speaker 1: speaking with the CEO of Petco who joined the company 165 00:08:20,720 --> 00:08:24,320 Speaker 1: in two thousand eighteen after having worked for HP PepsiCo 166 00:08:24,440 --> 00:08:27,760 Speaker 1: for decades, So a lot of experience in corporate America 167 00:08:27,920 --> 00:08:31,040 Speaker 1: and a little experience with pets. I'm sure let's welcome now. 168 00:08:31,320 --> 00:08:35,000 Speaker 1: Ron Coglan, against CEO of Petco. Ron talked to us 169 00:08:35,000 --> 00:08:38,319 Speaker 1: about the rise and pet adoptions and fostering during the pandemic. 170 00:08:38,559 --> 00:08:41,040 Speaker 1: It seems like it might be a good idea if 171 00:08:41,040 --> 00:08:42,520 Speaker 1: you're ever going to do it, to do it now 172 00:08:42,559 --> 00:08:46,760 Speaker 1: when you're probably more likely to be at home. Absolutely well, 173 00:08:46,760 --> 00:08:49,240 Speaker 1: first of all, great thanks for having me. Um. If 174 00:08:49,280 --> 00:08:52,320 Speaker 1: you look at people at home, people may be looking 175 00:08:52,520 --> 00:08:56,000 Speaker 1: being a little disconcerted through the pandemic pets for a 176 00:08:56,040 --> 00:09:01,920 Speaker 1: way to have accompaniment and nurturing and seeing growth like 177 00:09:02,000 --> 00:09:05,880 Speaker 1: we haven't seen in years in pet adoptions, pet fostering 178 00:09:06,160 --> 00:09:09,600 Speaker 1: and new pets and households. Bank America just did a 179 00:09:09,720 --> 00:09:13,000 Speaker 1: study and thirty seven percent of households and that study 180 00:09:13,040 --> 00:09:15,960 Speaker 1: reported having a new pet. We have people calling our 181 00:09:16,000 --> 00:09:20,559 Speaker 1: stores waiting to see when we'll have new reptiles, birds, fish, etcetera. 182 00:09:20,720 --> 00:09:26,680 Speaker 1: So that's so ron just give us a sense of 183 00:09:26,679 --> 00:09:30,199 Speaker 1: how your company, Petco has been dealing with the pandemic 184 00:09:30,280 --> 00:09:32,600 Speaker 1: and and maybe some changes you've been forced to make 185 00:09:32,679 --> 00:09:36,920 Speaker 1: and how you're thinking about your business. Yeah. Well, first 186 00:09:36,960 --> 00:09:40,359 Speaker 1: it started with keeping everyone's safe, whether it's our customers 187 00:09:40,440 --> 00:09:43,280 Speaker 1: or whether it's our employees. We put a lot of 188 00:09:43,320 --> 00:09:48,360 Speaker 1: effort into shipping swimming pools of sanitizers, football fields of 189 00:09:48,520 --> 00:09:52,439 Speaker 1: masks um in New York. We shifted our format, closed 190 00:09:52,440 --> 00:09:54,440 Speaker 1: the front of the store. I went to Delhi order 191 00:09:54,520 --> 00:09:58,280 Speaker 1: format where our team members shopped for you. So we 192 00:09:58,320 --> 00:10:00,760 Speaker 1: did all that and I was very out and I'm 193 00:10:00,800 --> 00:10:04,760 Speaker 1: proud that our COVID penetration amongst our team is one 194 00:10:04,840 --> 00:10:08,800 Speaker 1: third the national average, despite folks interacting with humans all 195 00:10:08,880 --> 00:10:11,400 Speaker 1: day long. We also stood up curdside pick up. In 196 00:10:11,480 --> 00:10:15,760 Speaker 1: two weeks, we added five hundred ship from store locations, 197 00:10:15,760 --> 00:10:19,640 Speaker 1: so our stores now are mini distribution centers. So a 198 00:10:19,720 --> 00:10:23,640 Speaker 1: lot of fast work. But what this really solidified for 199 00:10:23,720 --> 00:10:25,719 Speaker 1: us is we have a role to play take care 200 00:10:25,760 --> 00:10:30,000 Speaker 1: of pets and our mission of improving lives and being 201 00:10:30,000 --> 00:10:33,599 Speaker 1: a health and wellness company for pets. Ron, what's the 202 00:10:33,679 --> 00:10:39,200 Speaker 1: update on I p O plans? Listen, we have more 203 00:10:39,240 --> 00:10:42,200 Speaker 1: customers coming to us for more reasons, which is good. 204 00:10:42,200 --> 00:10:45,120 Speaker 1: And whenever you have success, people start talking, but we 205 00:10:45,160 --> 00:10:49,000 Speaker 1: don't comment on any such such things. So Ron talked 206 00:10:49,000 --> 00:10:53,080 Speaker 1: to us about you know, how, how's how's your business been. 207 00:10:53,360 --> 00:10:55,480 Speaker 1: I'm guessing its sales are up. We see the industry 208 00:10:55,520 --> 00:10:59,760 Speaker 1: sales presumably a pet sales or pet adoptions and pet 209 00:10:59,800 --> 00:11:04,400 Speaker 1: owners ship is up. Is that translating into your business? 210 00:11:04,440 --> 00:11:07,240 Speaker 1: Like I said, we have more customers coming. Um, they 211 00:11:07,240 --> 00:11:11,599 Speaker 1: are buying more food, buying more grooming, vaccinations. One of 212 00:11:11,600 --> 00:11:13,760 Speaker 1: the things that's interesting is people are home all day, right, 213 00:11:13,960 --> 00:11:16,760 Speaker 1: so they know that Fluffy needed to be groomed. They 214 00:11:16,800 --> 00:11:21,240 Speaker 1: remember that Rover needed a vaccination. Uh so Um that 215 00:11:21,559 --> 00:11:24,120 Speaker 1: the explosion of pets and people say more time with 216 00:11:24,160 --> 00:11:27,040 Speaker 1: our pets has been good for us. But one of 217 00:11:27,040 --> 00:11:29,760 Speaker 1: the things that you know, we take very seriously is 218 00:11:29,760 --> 00:11:34,119 Speaker 1: our role. And today we're announcing that we are eliminating 219 00:11:34,160 --> 00:11:38,640 Speaker 1: shock collars. Um. We codified our mission of being all 220 00:11:38,679 --> 00:11:41,920 Speaker 1: about improving lives and pets and pet parents, and we 221 00:11:42,040 --> 00:11:44,960 Speaker 1: just decided that shock collars aren't consistent with that. So 222 00:11:45,240 --> 00:11:48,559 Speaker 1: we are eliminating shock collars from our stores starting today 223 00:11:48,679 --> 00:11:52,240 Speaker 1: and actually starting a petition to have other retailers do 224 00:11:52,400 --> 00:11:57,960 Speaker 1: similarly and offering folks um free training class online to 225 00:11:58,080 --> 00:12:01,000 Speaker 1: replace it. Well, that sounds very reasonable. I'm sure pets, 226 00:12:01,040 --> 00:12:04,199 Speaker 1: even in the training process, will be happy not to 227 00:12:04,240 --> 00:12:08,760 Speaker 1: be shocked. Seriously. But that said, that just brings up 228 00:12:08,800 --> 00:12:12,400 Speaker 1: the idea of people getting sort of you know, having 229 00:12:12,400 --> 00:12:14,839 Speaker 1: strange tastes, let's put it that way. And I wonder 230 00:12:14,880 --> 00:12:16,920 Speaker 1: after the launch of Tiger King on Netflix, did you 231 00:12:16,960 --> 00:12:19,720 Speaker 1: see an increase in requests for sort of strange animals, 232 00:12:19,760 --> 00:12:25,640 Speaker 1: wild animals, unusual animals. Yeah, our our companion animal business 233 00:12:26,400 --> 00:12:30,400 Speaker 1: is doing very well. Uh in terms of strange animals, 234 00:12:30,720 --> 00:12:32,960 Speaker 1: will leave that to the to the Tiger King. But 235 00:12:33,320 --> 00:12:35,440 Speaker 1: are our folks in our stories do a great job? 236 00:12:35,559 --> 00:12:40,000 Speaker 1: You said reptiles, they're pretty strange to me. Well to come, 237 00:12:40,000 --> 00:12:43,719 Speaker 1: they're strange to others. Their their accompaniments, and we're very 238 00:12:43,760 --> 00:12:47,400 Speaker 1: proud of the teams that handle those products. Ron, how 239 00:12:47,400 --> 00:12:49,800 Speaker 1: do you gives a sense of how pet Co competes 240 00:12:49,840 --> 00:12:52,640 Speaker 1: with some of the big Amazons of the world and 241 00:12:52,760 --> 00:12:55,560 Speaker 1: some of the big chain department stores, where the pet 242 00:12:55,600 --> 00:12:58,760 Speaker 1: department is just one department of a overall bigger enterprise. 243 00:12:58,800 --> 00:13:02,439 Speaker 1: How do you traditionally compet against those bigger players. Yeah, 244 00:13:02,480 --> 00:13:03,839 Speaker 1: so let me let me start at the top. I 245 00:13:04,360 --> 00:13:07,480 Speaker 1: talked about our mission of improving lives of pets and 246 00:13:07,520 --> 00:13:11,319 Speaker 1: pet parents. No other company in UM, whether it's the 247 00:13:11,360 --> 00:13:13,680 Speaker 1: general merchandise like the ones you mentioned, or even in 248 00:13:13,720 --> 00:13:16,720 Speaker 1: the pet space, is dedicated to health and wellness for pets. 249 00:13:17,000 --> 00:13:19,040 Speaker 1: So I think of us as the CBS or the 250 00:13:19,080 --> 00:13:21,200 Speaker 1: Whole Foods in the pet space, and we think that's 251 00:13:21,200 --> 00:13:25,840 Speaker 1: a unique place. One two. Nobody else has a fully 252 00:13:25,880 --> 00:13:30,440 Speaker 1: integrated solution from the training, to the grooming, to the 253 00:13:30,520 --> 00:13:35,520 Speaker 1: veterinary care to UM food that has no artificial flavors 254 00:13:35,559 --> 00:13:40,199 Speaker 1: and colors. Nobody else carries that whole has that whole 255 00:13:40,240 --> 00:13:43,120 Speaker 1: suite of services for a one stop shop for a 256 00:13:43,120 --> 00:13:46,480 Speaker 1: pet parent that's looking for health and wellness products for 257 00:13:46,559 --> 00:13:50,480 Speaker 1: their for their pet. And what we launched last week 258 00:13:50,760 --> 00:13:54,600 Speaker 1: was vital Care, and that is a membership program for 259 00:13:54,600 --> 00:13:58,400 Speaker 1: a monthly fee. You get that nail trim, you get 260 00:13:58,440 --> 00:14:01,040 Speaker 1: that vaccination, and you get the counts on your food. 261 00:14:01,360 --> 00:14:03,760 Speaker 1: And nobody else can do that because nobody else has 262 00:14:03,800 --> 00:14:06,800 Speaker 1: a fully integrated solution. Briefly wrong because we're out of time, 263 00:14:06,840 --> 00:14:11,240 Speaker 1: but any COVID nineteam protection products or any inquiries on 264 00:14:11,280 --> 00:14:16,760 Speaker 1: those things, um in terms of our our stores and 265 00:14:16,760 --> 00:14:22,640 Speaker 1: our partners, absolutely, you know the pieces about COVID and pets. 266 00:14:23,880 --> 00:14:26,560 Speaker 1: It's it was one in a million anecdotal. So we 267 00:14:26,600 --> 00:14:29,440 Speaker 1: have not seen that as any issue that people need 268 00:14:29,480 --> 00:14:33,280 Speaker 1: to worry about. That's good. Ron Coughlin, CEO of pet Co, 269 00:14:33,440 --> 00:14:35,240 Speaker 1: joining us to talk to us about how the pet 270 00:14:35,280 --> 00:14:38,840 Speaker 1: industry is doing in the pandemic and pet adoptions uh 271 00:14:38,880 --> 00:14:41,080 Speaker 1: and sales up of four percent. That's kind of the 272 00:14:41,080 --> 00:14:46,080 Speaker 1: headline for me. We're going to consult Ira Jersey right now, 273 00:14:46,160 --> 00:14:49,920 Speaker 1: chief US Interest Rate Strategies for Bloomberg Intelligence. All right, 274 00:14:50,000 --> 00:14:51,880 Speaker 1: we had a little bit of a move yesterday sort 275 00:14:51,880 --> 00:14:54,640 Speaker 1: of walk everybody up, but that looks at the bond markets. 276 00:14:55,040 --> 00:14:58,560 Speaker 1: It wasn't massive in historic terms, but it was good 277 00:14:58,600 --> 00:15:00,840 Speaker 1: five basis points for the ten year and you know, 278 00:15:00,840 --> 00:15:03,760 Speaker 1: another few basis points for the thirty year. But we're 279 00:15:03,800 --> 00:15:07,320 Speaker 1: back to sort of stagnation again today. Do the bond 280 00:15:07,320 --> 00:15:12,080 Speaker 1: market price in a less contested election and now we're done. Yeah, 281 00:15:12,080 --> 00:15:14,080 Speaker 1: I don't. I don't know if it was as much 282 00:15:14,120 --> 00:15:17,400 Speaker 1: as uh, not contested election, but I think the market 283 00:15:17,480 --> 00:15:20,040 Speaker 1: is thinking that there's a higher probability of a Biden 284 00:15:20,160 --> 00:15:23,640 Speaker 1: victory and and and so what that means is you're 285 00:15:23,800 --> 00:15:27,200 Speaker 1: going to have, uh if, if Joe Biden wins, more 286 00:15:27,280 --> 00:15:30,000 Speaker 1: likely a larger fiscal stimulus plan. And that's going to 287 00:15:30,080 --> 00:15:33,320 Speaker 1: do two things. One it should theoretically be better for 288 00:15:33,360 --> 00:15:36,160 Speaker 1: the economy in general then um then then say a 289 00:15:36,160 --> 00:15:39,400 Speaker 1: smaller fiscal stimulus that you'd probably get with the split government. 290 00:15:39,760 --> 00:15:42,440 Speaker 1: And two, and I think this is just as important, 291 00:15:42,960 --> 00:15:46,000 Speaker 1: is um, if you do get that larger fiscal stimulus, 292 00:15:46,000 --> 00:15:48,000 Speaker 1: you're gonna need there's gonna be more bonds out there 293 00:15:48,000 --> 00:15:50,760 Speaker 1: are more supply. So so that's one of the reasons 294 00:15:50,760 --> 00:15:52,960 Speaker 1: why you saw that steepening of the yield curve. And 295 00:15:52,960 --> 00:15:56,120 Speaker 1: and we we broke some pretty important levels Fannie. So 296 00:15:56,120 --> 00:15:59,040 Speaker 1: so one point five seven on the thirty year bond 297 00:15:59,160 --> 00:16:03,520 Speaker 1: was h is the high from the post covid Um 298 00:16:04,320 --> 00:16:07,200 Speaker 1: crisis period. And now that we've broken that, we now 299 00:16:07,320 --> 00:16:10,440 Speaker 1: target yields that are actually about twenty basis points above 300 00:16:10,480 --> 00:16:12,840 Speaker 1: where we are now. So so I think that that's 301 00:16:12,920 --> 00:16:14,720 Speaker 1: like that those are the numbers you have to think 302 00:16:14,720 --> 00:16:16,840 Speaker 1: about now as we get closer to the election. If 303 00:16:16,880 --> 00:16:19,880 Speaker 1: it looks like Biden wins um, you know, we might 304 00:16:20,040 --> 00:16:23,960 Speaker 1: creep higher and yield with the yield curves deepening. So 305 00:16:24,360 --> 00:16:28,240 Speaker 1: we pat Chairman Pal speaking to a group of economists today, 306 00:16:28,280 --> 00:16:31,360 Speaker 1: which sounds just like a hoot. I'm sure, Um, I've 307 00:16:31,360 --> 00:16:35,080 Speaker 1: been there, yeah. Um. It seems like we hear from 308 00:16:35,160 --> 00:16:37,680 Speaker 1: Chairman Pal almost on a weekly basis here, so I'm 309 00:16:37,720 --> 00:16:40,400 Speaker 1: not expecting much here. But is there anything different here? 310 00:16:40,440 --> 00:16:44,000 Speaker 1: Is this an audience that wants to hear something perhaps different, 311 00:16:44,200 --> 00:16:46,480 Speaker 1: or has the ability to ask questions where we might 312 00:16:46,520 --> 00:16:49,120 Speaker 1: get some news out of this. I don't. I think 313 00:16:49,160 --> 00:16:52,040 Speaker 1: that he'll continue to be pretty coy and and basically 314 00:16:52,080 --> 00:16:55,040 Speaker 1: reiterate what has been said at press conferences. I mean, 315 00:16:55,120 --> 00:16:57,120 Speaker 1: one of the things now, Paul, is because we have 316 00:16:57,120 --> 00:16:59,440 Speaker 1: press conferences at every single meeting, it's going to be 317 00:16:59,800 --> 00:17:03,080 Speaker 1: really difficult for the FED chair in particular to say 318 00:17:03,200 --> 00:17:07,000 Speaker 1: anything that's significantly different than what he said just you know, 319 00:17:07,240 --> 00:17:09,680 Speaker 1: just a week ago or two weeks ago at at 320 00:17:09,720 --> 00:17:12,760 Speaker 1: the at the press conference after the last meeting. I 321 00:17:12,760 --> 00:17:15,400 Speaker 1: think it's so important to listen to the mosaic that's 322 00:17:15,400 --> 00:17:18,399 Speaker 1: coming out with all the different FED members because you know, 323 00:17:18,480 --> 00:17:21,679 Speaker 1: having an idea about what each member is thinking about 324 00:17:21,840 --> 00:17:24,800 Speaker 1: for future policy matters, so you know, what are their 325 00:17:24,880 --> 00:17:28,760 Speaker 1: own individual tendencies when it comes to how long that 326 00:17:28,880 --> 00:17:32,480 Speaker 1: they'll let inflation run hot before they want to be hawkish. 327 00:17:32,600 --> 00:17:35,760 Speaker 1: So obviously some some members of the committee or are 328 00:17:35,760 --> 00:17:38,119 Speaker 1: going to be more hawkish. O there's more devish and 329 00:17:38,119 --> 00:17:42,119 Speaker 1: and understanding the dynamics between those individual players will what 330 00:17:42,200 --> 00:17:44,440 Speaker 1: will be key. But but to your point, I don't 331 00:17:44,480 --> 00:17:47,120 Speaker 1: think Powell today is going to say much much that's 332 00:17:47,119 --> 00:17:49,320 Speaker 1: gonna gonna be new. He will have to give his 333 00:17:49,359 --> 00:17:52,040 Speaker 1: opinion on this bond market move though, right, I M 334 00:17:52,480 --> 00:17:54,960 Speaker 1: not just that. But Charlie Opens is out yesterday sort 335 00:17:54,960 --> 00:17:56,960 Speaker 1: of saying two and a half percent. At some point 336 00:17:56,960 --> 00:17:59,159 Speaker 1: we'll need to know exactly what Powell things beyond two 337 00:18:00,240 --> 00:18:03,000 Speaker 1: Well yeah, yeah, So so certainly Powell as a member 338 00:18:03,040 --> 00:18:06,399 Speaker 1: like he'll wind up maybe saying something like, um, you know, 339 00:18:06,440 --> 00:18:09,720 Speaker 1: my personal opinion, this is not the opinion of the committee, 340 00:18:09,800 --> 00:18:12,280 Speaker 1: is that we should let it run hot until it 341 00:18:12,320 --> 00:18:14,840 Speaker 1: seems like it's sustainable and we'll have to hike. But 342 00:18:14,840 --> 00:18:17,960 Speaker 1: but you know that's gonna be you know, kind of um, 343 00:18:18,240 --> 00:18:20,600 Speaker 1: nondescript enough that it's not going to give us that 344 00:18:20,680 --> 00:18:24,639 Speaker 1: much new information. Um. When it comes to you know, 345 00:18:24,680 --> 00:18:29,040 Speaker 1: the the bond market move, it's still within mostly the 346 00:18:29,160 --> 00:18:31,879 Speaker 1: ranges that we've seen. So, you know, the tenure yield 347 00:18:31,920 --> 00:18:34,280 Speaker 1: is still well within the ranges that we've seen over 348 00:18:34,359 --> 00:18:37,399 Speaker 1: the last four months. So UM, So I don't I 349 00:18:37,400 --> 00:18:39,520 Speaker 1: don't think that they'll he'll talk about it. I think 350 00:18:39,520 --> 00:18:42,320 Speaker 1: that maybe he'll couch the steepening of the yield curve 351 00:18:42,359 --> 00:18:45,159 Speaker 1: as a positive sign that the market thinks that the 352 00:18:45,280 --> 00:18:48,680 Speaker 1: growth and inflation are going to be higher in the future. Um. 353 00:18:48,800 --> 00:18:51,920 Speaker 1: But um but but you know, other than that talking 354 00:18:51,960 --> 00:18:54,399 Speaker 1: about it being optimistic and optimistic view, I don't think 355 00:18:54,400 --> 00:18:56,359 Speaker 1: you can say much more about the bond market move. 356 00:18:57,320 --> 00:19:00,720 Speaker 1: I wrote, what is this reserved actually doing in terms 357 00:19:00,720 --> 00:19:04,119 Speaker 1: of being in the market buying bonds? How active they've did? 358 00:19:04,240 --> 00:19:07,000 Speaker 1: What have they been buying? Yeah, so so well, they 359 00:19:07,000 --> 00:19:09,320 Speaker 1: haven't actually changed very much at all. We put out 360 00:19:09,359 --> 00:19:11,960 Speaker 1: a weekly note every Friday with what they've purchased in 361 00:19:12,000 --> 00:19:17,160 Speaker 1: that week. Um, and the basically they're still just buying 362 00:19:17,320 --> 00:19:20,560 Speaker 1: every day a little bit and uh, all throughout the curve. 363 00:19:20,600 --> 00:19:22,800 Speaker 1: They haven't changed that, and most of their purchases are 364 00:19:22,800 --> 00:19:24,440 Speaker 1: actually in the front end of the curve, so they're 365 00:19:24,480 --> 00:19:29,280 Speaker 1: in low risk, shorter maturity bonds and uh so, so 366 00:19:29,440 --> 00:19:32,320 Speaker 1: you know, that's keeping that part of the yield curve 367 00:19:33,040 --> 00:19:35,159 Speaker 1: very tame and timid. So even though you had a 368 00:19:35,160 --> 00:19:37,359 Speaker 1: pretty decent move yesterday and say the tenure in the 369 00:19:37,359 --> 00:19:40,000 Speaker 1: thirty year, the front ends still didn't move very much. 370 00:19:40,160 --> 00:19:42,520 Speaker 1: Um partially because interest rates are expected to be low 371 00:19:42,560 --> 00:19:44,720 Speaker 1: for a long period of time, but also in part 372 00:19:44,760 --> 00:19:48,320 Speaker 1: certainly that because the Fed is buying just about everything 373 00:19:48,640 --> 00:19:51,000 Speaker 1: that it can in uh in that kind of five 374 00:19:51,080 --> 00:19:55,639 Speaker 1: years and in maturity range. So I what would you 375 00:19:55,680 --> 00:19:59,159 Speaker 1: anticipate after the election, say we do get that Biden 376 00:19:59,560 --> 00:20:01,480 Speaker 1: when at the bond markets pricing in do we not 377 00:20:01,560 --> 00:20:04,480 Speaker 1: see much movement? Then yeah, I think you'll see still 378 00:20:04,480 --> 00:20:06,159 Speaker 1: see a little bit. I mean, I think the market 379 00:20:06,200 --> 00:20:08,239 Speaker 1: is still going to be a little bit um on 380 00:20:08,400 --> 00:20:11,520 Speaker 1: edge and not fully pricing a Biden victory unless it's 381 00:20:11,560 --> 00:20:14,080 Speaker 1: absolutely obvious. And I do think that the market is 382 00:20:14,080 --> 00:20:16,080 Speaker 1: a little bit concerned about whether or not there'll be 383 00:20:16,119 --> 00:20:19,280 Speaker 1: some hiccups, and you know, counting ballots and and uh 384 00:20:19,400 --> 00:20:21,879 Speaker 1: an account by mail. Uh. So, I do think that 385 00:20:21,960 --> 00:20:25,040 Speaker 1: once it's there's a declared victor, regardless of who it is. 386 00:20:25,080 --> 00:20:26,960 Speaker 1: I do think that the bond market will reprice a 387 00:20:27,040 --> 00:20:29,280 Speaker 1: little bit um. You know how much that is is 388 00:20:29,320 --> 00:20:33,320 Speaker 1: always a matter of subjectivity. Um. But I do think 389 00:20:33,359 --> 00:20:36,119 Speaker 1: that we could reach For example, certainly the yield highs 390 00:20:36,160 --> 00:20:39,080 Speaker 1: that we saw a couple of um um a couple 391 00:20:39,119 --> 00:20:42,280 Speaker 1: of months ago, kind of up near one eight percent 392 00:20:42,440 --> 00:20:46,520 Speaker 1: on the third year UM. So again like constrained but 393 00:20:46,560 --> 00:20:49,520 Speaker 1: not um but not a massive move. Hey, I rank 394 00:20:49,600 --> 00:20:52,920 Speaker 1: so much for joining us IRA Jersey, chief US interest 395 00:20:53,000 --> 00:20:56,400 Speaker 1: rate strategist for Bloomberg Intelligence. He covers all things for 396 00:20:56,520 --> 00:20:59,359 Speaker 1: the FED, all things in the treasury market. Uh he 397 00:20:59,400 --> 00:21:01,720 Speaker 1: puts out there only note he has a weekly Lots 398 00:21:01,720 --> 00:21:04,000 Speaker 1: of great stuff in there, all available on the Bloomberg 399 00:21:04,080 --> 00:21:09,400 Speaker 1: terminal by typing b I go. It is time now 400 00:21:09,480 --> 00:21:12,240 Speaker 1: for as you heard, Bloomberg Opinion. We want to get 401 00:21:12,280 --> 00:21:16,639 Speaker 1: to Bloomberg Opinion technology columnists based in Europe alex Web. 402 00:21:16,760 --> 00:21:18,800 Speaker 1: And the reason we want to get to alex Web 403 00:21:18,880 --> 00:21:21,600 Speaker 1: is because with many stories to discuss with him, we 404 00:21:21,640 --> 00:21:25,640 Speaker 1: want to talk about the Cineworld group closures, which is very, 405 00:21:25,720 --> 00:21:28,840 Speaker 1: very sad we were talking about this yesterday and other things. 406 00:21:28,960 --> 00:21:30,760 Speaker 1: We just got worried that a judge is going to 407 00:21:30,800 --> 00:21:34,080 Speaker 1: hold a hearing on November four is on Commerce Department 408 00:21:34,200 --> 00:21:36,280 Speaker 1: order banning TikTok. So we can talk about that later 409 00:21:36,320 --> 00:21:39,520 Speaker 1: in the conversation, But first, Alex, you know, obviously it's 410 00:21:39,560 --> 00:21:41,479 Speaker 1: a very sad day when all of the movie theaters 411 00:21:41,520 --> 00:21:45,080 Speaker 1: goes down. Basically, any hope that these theaters might reopen 412 00:21:45,119 --> 00:21:50,359 Speaker 1: at some point, yes, I think that that is. We 413 00:21:50,400 --> 00:21:53,919 Speaker 1: don't know when, but Tenny World has said it's going 414 00:21:53,960 --> 00:21:57,600 Speaker 1: to shut down. It's plus theaters in the UK and 415 00:21:57,720 --> 00:22:01,159 Speaker 1: the US. Um that isn't a permanent closure, but it 416 00:22:01,200 --> 00:22:05,320 Speaker 1: does potentially leave forty five thousand people out of work. 417 00:22:06,080 --> 00:22:08,119 Speaker 1: The kind of note for optimism here is that this 418 00:22:08,440 --> 00:22:10,439 Speaker 1: straw that broke the camel's back in a sense was 419 00:22:10,680 --> 00:22:13,399 Speaker 1: was MGM decided to push the release of the new 420 00:22:13,440 --> 00:22:16,000 Speaker 1: Bond film until April. But it is doing just that. 421 00:22:16,119 --> 00:22:19,000 Speaker 1: It's pushing it to April. That means that it hopes 422 00:22:19,119 --> 00:22:22,200 Speaker 1: clearly that there will be a cinema audience by then, 423 00:22:22,520 --> 00:22:26,919 Speaker 1: and it hasn't decided to push it online. Alex, to 424 00:22:26,960 --> 00:22:29,480 Speaker 1: me for somebody who's filed this industry for close to 425 00:22:29,520 --> 00:22:31,200 Speaker 1: thirty years. It's kind of a chicken in the egg 426 00:22:31,560 --> 00:22:34,320 Speaker 1: issue for me. Are people not going to theaters because 427 00:22:34,359 --> 00:22:36,960 Speaker 1: there's not enough good content or they not going to 428 00:22:37,080 --> 00:22:40,000 Speaker 1: theaters because they don't want to be stuffed into a 429 00:22:40,040 --> 00:22:44,040 Speaker 1: confined space? Uh during a pandemic, what are the companies 430 00:22:44,080 --> 00:22:46,439 Speaker 1: saying are the real reasons for I guess, you know, 431 00:22:46,440 --> 00:22:51,440 Speaker 1: temporarily closing down these theaters. So the companies are saying 432 00:22:51,440 --> 00:22:54,800 Speaker 1: it's the lack of the films they have reopened or 433 00:22:54,840 --> 00:22:59,880 Speaker 1: had reopened screens with quite strict under the quite strict guide, 434 00:22:59,880 --> 00:23:02,000 Speaker 1: and that, for example, exists in the UK where ultimately 435 00:23:02,000 --> 00:23:05,400 Speaker 1: they're only allowed to feel about thirty of each screen. 436 00:23:06,160 --> 00:23:08,040 Speaker 1: But they had been saying that, you know, they were 437 00:23:08,440 --> 00:23:12,280 Speaker 1: they were filling that thirty percent and they were hoping 438 00:23:12,320 --> 00:23:16,120 Speaker 1: then that the release of No Time to Die that's 439 00:23:16,320 --> 00:23:18,520 Speaker 1: the title of a new film, the new bomb film, 440 00:23:18,560 --> 00:23:21,800 Speaker 1: would reinvigorate a certain to a certain extent, cinema going 441 00:23:22,040 --> 00:23:24,199 Speaker 1: the other sema chains. For example, in the UK we 442 00:23:24,240 --> 00:23:27,800 Speaker 1: have Odeon still open on weekends a MC in the 443 00:23:27,880 --> 00:23:31,160 Speaker 1: US as well, so they still think there's an audience. 444 00:23:31,160 --> 00:23:34,080 Speaker 1: There is just a company like Single World in particular, 445 00:23:34,119 --> 00:23:37,960 Speaker 1: which has significant debt exposure because of not least the 446 00:23:38,080 --> 00:23:40,879 Speaker 1: acquisition of Regal cinemas in the US. That means it 447 00:23:40,960 --> 00:23:43,080 Speaker 1: has higher operating costs in the sense that it's got 448 00:23:43,080 --> 00:23:45,919 Speaker 1: to service its debt. And um, so it's trying to 449 00:23:45,960 --> 00:23:48,080 Speaker 1: reserve its cash in order to be able to do 450 00:23:48,080 --> 00:23:50,600 Speaker 1: that more effectively. Yes, it's said, according to your column, 451 00:23:50,640 --> 00:23:53,040 Speaker 1: it was burning through as much as sixty million dollars 452 00:23:53,040 --> 00:23:56,240 Speaker 1: of cash a month with screens partially open in September. 453 00:23:56,760 --> 00:24:00,199 Speaker 1: What are the margins for a screening, Alex? Obviously the 454 00:24:00,200 --> 00:24:02,480 Speaker 1: the movie theaters have to pay the studios and so on, 455 00:24:02,920 --> 00:24:07,639 Speaker 1: and they do count on things like popcorn sales to 456 00:24:07,680 --> 00:24:10,520 Speaker 1: help out and obviously that's not happening now either. So 457 00:24:10,680 --> 00:24:14,480 Speaker 1: how you know, do we have any idea what kind 458 00:24:14,560 --> 00:24:17,720 Speaker 1: of capacity would need to be filled in order for 459 00:24:17,760 --> 00:24:20,000 Speaker 1: a movie theater to be able to operate, you know 460 00:24:20,080 --> 00:24:23,640 Speaker 1: in the green and it is quite hard to get 461 00:24:23,640 --> 00:24:29,200 Speaker 1: the full granularity on that. Probably speaking, their relatively healthy 462 00:24:29,240 --> 00:24:32,600 Speaker 1: in a sense of recession recession proof businesses, you know, 463 00:24:33,000 --> 00:24:37,719 Speaker 1: silly world typically reports if its are revenue that is 464 00:24:37,760 --> 00:24:40,800 Speaker 1: of course massively dropped off right now. Um And and 465 00:24:40,880 --> 00:24:46,280 Speaker 1: the way that the kind of breakdown of revenue. The 466 00:24:46,280 --> 00:24:48,560 Speaker 1: way the revenue is broken down is that maybe is 467 00:24:48,600 --> 00:24:51,159 Speaker 1: actually the ticket sales, and then they have merchandizing and 468 00:24:52,000 --> 00:24:55,399 Speaker 1: food food sales on top of that. About half and 469 00:24:55,440 --> 00:24:59,680 Speaker 1: half clearly getting people into the cinemas me just still 470 00:24:59,680 --> 00:25:02,760 Speaker 1: able to sell um, you know, popcorn and drinks and 471 00:25:02,760 --> 00:25:04,520 Speaker 1: all those sort of things. A lot of cinemas in 472 00:25:04,520 --> 00:25:07,080 Speaker 1: the US we have seen have been offering discounts getting 473 00:25:07,080 --> 00:25:08,560 Speaker 1: them into the cinema and the hope they make the 474 00:25:08,600 --> 00:25:12,440 Speaker 1: money up on some of those other offers offerings. So 475 00:25:13,119 --> 00:25:17,480 Speaker 1: the difficulty right now is cinema studios having to work 476 00:25:17,520 --> 00:25:20,840 Speaker 1: out whether they can make enough money back from just 477 00:25:20,920 --> 00:25:25,119 Speaker 1: putting something online, whether by selling it or just selling 478 00:25:25,119 --> 00:25:30,399 Speaker 1: it to a streamer, or where they need the cinematic 479 00:25:30,440 --> 00:25:32,080 Speaker 1: release to make up. In the case of No Time 480 00:25:32,119 --> 00:25:34,560 Speaker 1: to Die, there two fifty million dollar budget and that 481 00:25:34,640 --> 00:25:38,400 Speaker 1: probably excludes the marketing costs. So it seems as though 482 00:25:38,440 --> 00:25:42,320 Speaker 1: the studios think that they do really need to release 483 00:25:42,400 --> 00:25:46,600 Speaker 1: these things cinematically in theatrically sorry, in order to cover 484 00:25:46,640 --> 00:25:49,920 Speaker 1: their costs and make the sort of returns that warranted 485 00:25:49,920 --> 00:25:52,400 Speaker 1: that upfront investment. And so that in a sense he's 486 00:25:52,440 --> 00:25:57,960 Speaker 1: good news for the the cinema industry or cinema operators, 487 00:25:58,000 --> 00:26:00,720 Speaker 1: because they hope at least that when we're clear of 488 00:26:00,760 --> 00:26:03,760 Speaker 1: the virus, the audiences warturn and the studios will return. 489 00:26:04,520 --> 00:26:09,399 Speaker 1: It's interesting, Alex. Another problem for the film exhibitors is 490 00:26:09,440 --> 00:26:12,800 Speaker 1: a problem that the studios have been effectively shut down 491 00:26:12,920 --> 00:26:16,040 Speaker 1: for six to seven months. No film or TVs have 492 00:26:16,160 --> 00:26:19,280 Speaker 1: really been made because everybody has been kind of shut down. 493 00:26:19,280 --> 00:26:22,080 Speaker 1: So that suggests that even when they do open up, 494 00:26:22,080 --> 00:26:24,760 Speaker 1: there might be a lack of supply. From that perspective, 495 00:26:26,040 --> 00:26:28,640 Speaker 1: I think interestingly, that's more likely to be a problem 496 00:26:28,720 --> 00:26:33,480 Speaker 1: for the streamers because, um, you're still getting TV shows 497 00:26:33,560 --> 00:26:36,800 Speaker 1: and films released on the streaming platforms because we're not 498 00:26:36,840 --> 00:26:40,520 Speaker 1: seeing stuff released in cinemas and theaters that is being 499 00:26:40,560 --> 00:26:42,920 Speaker 1: pushed back to when the theaters open again. So you're 500 00:26:42,960 --> 00:26:46,760 Speaker 1: getting a kind of a build up of supply there 501 00:26:46,800 --> 00:26:50,560 Speaker 1: which will all of a sudden drop hopefully sometime next year. Meanwhile, 502 00:26:51,240 --> 00:26:53,760 Speaker 1: there is perhaps come the spring next year, because we 503 00:26:53,800 --> 00:26:57,640 Speaker 1: haven't had much production for the past six eight months, Um, 504 00:26:57,720 --> 00:27:00,399 Speaker 1: there's going to be perhaps the dearth of supply for 505 00:27:00,560 --> 00:27:03,439 Speaker 1: the streamers and and the TV networks and and I 506 00:27:03,480 --> 00:27:05,400 Speaker 1: think that might be more of a concern for them, 507 00:27:06,000 --> 00:27:08,320 Speaker 1: um than it is for the cinemas themselves, so that 508 00:27:08,400 --> 00:27:11,080 Speaker 1: I don't know, would you disagree with that sort of interpretation. 509 00:27:11,080 --> 00:27:13,200 Speaker 1: That's what some people have been suggesting to me. Yeah, 510 00:27:13,240 --> 00:27:14,960 Speaker 1: it's interesting, you know, it's we'll have to see it. 511 00:27:15,080 --> 00:27:16,280 Speaker 1: But there really is going to be a lack of 512 00:27:16,320 --> 00:27:18,440 Speaker 1: supply here, I think for everybody, and it's going to 513 00:27:18,480 --> 00:27:20,600 Speaker 1: take a little bit of a catch up, I guess, um. 514 00:27:20,680 --> 00:27:23,320 Speaker 1: And you know, as you're you're pointing out the broadcast 515 00:27:23,359 --> 00:27:25,760 Speaker 1: and cable networks, you know, have really cut back on 516 00:27:25,840 --> 00:27:28,040 Speaker 1: their scripted programming because there's just not that much there, 517 00:27:28,119 --> 00:27:31,720 Speaker 1: and they're relying more and more on the on you know, 518 00:27:31,800 --> 00:27:34,159 Speaker 1: kind of reality TV. So it's a real problem for 519 00:27:34,160 --> 00:27:36,840 Speaker 1: everybody just in terms of lack of supply there. Alex, 520 00:27:37,760 --> 00:27:40,440 Speaker 1: Can I jump in and ask Alex what he makes 521 00:27:40,440 --> 00:27:42,480 Speaker 1: of this Reuter's report that a judge will at the 522 00:27:42,520 --> 00:27:44,639 Speaker 1: hearing in November four the whether to block the Commerce 523 00:27:44,680 --> 00:27:49,000 Speaker 1: Department order that would effectively ban TikTok in the United States. Alex, 524 00:27:49,080 --> 00:27:52,200 Speaker 1: you got feeling what will happen with TikTok? Can it 525 00:27:52,320 --> 00:27:57,240 Speaker 1: really be banned? I think it seems unlikely they'll be 526 00:27:57,640 --> 00:28:02,760 Speaker 1: you know, an out right back on it. Did there's 527 00:28:02,760 --> 00:28:05,440 Speaker 1: the risks. I mean, obviously this is getting into real 528 00:28:05,640 --> 00:28:09,879 Speaker 1: legal sort of a legal labyrinth here. But then, um, 529 00:28:09,920 --> 00:28:12,760 Speaker 1: it's hard to know what on what basis exactly it 530 00:28:12,920 --> 00:28:18,240 Speaker 1: is being banned. The Commons Department is trying to impose 531 00:28:18,280 --> 00:28:20,679 Speaker 1: things upon it, but that doesn't have the legal basis 532 00:28:20,720 --> 00:28:22,960 Speaker 1: to do so, and obtomately that's when the judge that 533 00:28:23,080 --> 00:28:26,760 Speaker 1: has has died upon it. I'm really I'm sure the 534 00:28:26,880 --> 00:28:30,320 Speaker 1: risk of retaliate reactions from China for other pieces of 535 00:28:30,320 --> 00:28:34,080 Speaker 1: the US tech economy, it seems quite high. But equally 536 00:28:34,160 --> 00:28:36,760 Speaker 1: a judge isn't necessarily it's not his job to take 537 00:28:36,760 --> 00:28:41,760 Speaker 1: into account those kind of um diplomatic considerations. So it's 538 00:28:42,080 --> 00:28:44,840 Speaker 1: very very difficult one to protect. Well, does something else 539 00:28:44,880 --> 00:28:48,200 Speaker 1: happening that day, right, that's right, a little bit of 540 00:28:48,240 --> 00:28:52,000 Speaker 1: an election coming up, So alex wellb European technology calmness 541 00:28:52,240 --> 00:28:55,560 Speaker 1: for Bloomberg opinion joining us from London again kind of 542 00:28:55,560 --> 00:28:59,600 Speaker 1: the key issue here. For the film of businesses, not 543 00:28:59,680 --> 00:29:01,320 Speaker 1: a lot of films out there. The films that are 544 00:29:01,320 --> 00:29:03,120 Speaker 1: out there, they're getting pushed the next year. So If 545 00:29:03,120 --> 00:29:07,120 Speaker 1: you're a uh, you know, you know, a movie house, 546 00:29:07,200 --> 00:29:08,640 Speaker 1: what do you do. If you're a theater, what do 547 00:29:08,720 --> 00:29:10,680 Speaker 1: you do? You don't have any content people are concerned 548 00:29:10,680 --> 00:29:14,360 Speaker 1: about coming into your theaters. You close down temporarily. At 549 00:29:14,400 --> 00:29:18,200 Speaker 1: least that's what we're seeing across the globe. Thanks for 550 00:29:18,240 --> 00:29:21,760 Speaker 1: listening to Bloomberg Markets podcast. You can subscribe and listen 551 00:29:21,760 --> 00:29:25,280 Speaker 1: to interviews at Apple Podcasts or whatever a podcast platform 552 00:29:25,320 --> 00:29:28,760 Speaker 1: you prefer. I'm Bonnie Quinn. I'm on Twitter at Bonnie Quinn. 553 00:29:28,920 --> 00:29:31,280 Speaker 1: And I'm Paul Sweeney. I'm on Twitter at pt Sweeney. 554 00:29:31,360 --> 00:29:34,000 Speaker 1: Before the podcast, you can always catch us worldwide at 555 00:29:34,040 --> 00:29:34,800 Speaker 1: Bloomberg Radio