WEBVTT - FOMC Backs Away from September Guidance Shift 0:00:00.720 --> 0:00:03.720 This is Bloomberg Business Week. I'm Carol Masser and I'm 0:00:03.800 --> 0:00:06.320 Jason Kelly. We're right here every day bringing you the 0:00:06.400 --> 0:00:11.160 latest news from the world's of business and finance, plus technology, politics, economics, 0:00:11.240 --> 0:00:14.280 all harnessing the power of Business Week reporters and editors. 0:00:14.440 --> 0:00:16.439 And of course Carol that's part of a team of 0:00:16.520 --> 0:00:20.439 twenty seven hundred journalists and analysts more than a hundred 0:00:20.480 --> 0:00:23.280 and twenty countries and Jason. You can download Bloomberg Business 0:00:23.280 --> 0:00:26.239 Week on iTunes, SoundCloud, al Bloomberg dot com. You can 0:00:26.280 --> 0:00:28.640 also listen to our radio show at two pm Eastern 0:00:28.680 --> 0:00:31.560 on Bloomberg Radio every weekday, or watch us on YouTube 0:00:31.600 --> 0:00:36.080 by searching Bloomberg Global News. So we got to set 0:00:36.080 --> 0:00:39.519 this Business Week agenda, Carol, with these FED minutes, Yeah, totally, 0:00:39.560 --> 0:00:41.639 And I gotta say I just opened them up off 0:00:41.680 --> 0:00:44.479 the FED website, so we're all kind of reading in 0:00:44.520 --> 0:00:47.600 real time at the same time. Here's one headline, FED 0:00:47.640 --> 0:00:50.520 officials reviewing the policies trate to Dane July. Well, yeah, 0:00:50.560 --> 0:00:54.200 that's what they did. So looking back at it, let's 0:00:54.200 --> 0:00:56.520 get into it with people who are far smarter than 0:00:56.520 --> 0:00:58.360 me when it comes to the Fed. Kathleen Hayes is 0:00:58.400 --> 0:01:01.120 with US Global Economics and Policy editor Bloomberg News. She's 0:01:01.120 --> 0:01:04.040 on our access line. And Dave Wilson also on the 0:01:04.080 --> 0:01:07.000 remote access. He's in New Jersey. He's our stocks editor. 0:01:07.040 --> 0:01:09.240 But Kathleen, let's start with you. Like I said, we 0:01:09.319 --> 0:01:11.520 all are opening this up at the same time in 0:01:11.640 --> 0:01:14.960 real time. Let's just tell stumping out for you. Yeah, 0:01:15.200 --> 0:01:17.160 first of all, this is you. They're usually about fifteen 0:01:17.240 --> 0:01:19.720 or sixteen pages, you know, and and they're not necessarily 0:01:20.200 --> 0:01:21.760 there's a lot in there for anybody. So I know 0:01:21.800 --> 0:01:25.440 our FED team in Washington is uh looking over very quickly. 0:01:25.440 --> 0:01:29.760 They're saying refining the statement could help improve transparency. So 0:01:29.840 --> 0:01:32.720 let's put this in perspective. They're reviewing their policy strategy 0:01:32.760 --> 0:01:35.880 at the July meeting. Maybe if they refine the statement 0:01:35.880 --> 0:01:40.200 itself can prove in transparency. Now, everybody who knows, and 0:01:40.240 --> 0:01:43.400 if you don't, the policy statement is about five paragraphs. 0:01:43.400 --> 0:01:45.880 It's kind of boilerplate. They use certain phrases to mean 0:01:45.920 --> 0:01:47.800 certain things. They change a word here or there, and 0:01:47.840 --> 0:01:49.840 I think it leaves a lot of people glad. Number one, 0:01:49.880 --> 0:01:52.800 the FED chair J Powell comes out and explains what 0:01:52.880 --> 0:01:55.640 they did and why and takes tons of questions from reporters. 0:01:55.920 --> 0:01:58.120 At the same time, I think people feel, couldn't you 0:01:58.160 --> 0:02:01.080 write something longer if you gave us more information about 0:02:01.120 --> 0:02:04.040 what you're thinking and and how it may be something conditional. 0:02:04.120 --> 0:02:05.800 You know, you don't think you're going to raise interest 0:02:05.880 --> 0:02:08.200 rates for a long time unless right, we don't see 0:02:08.200 --> 0:02:10.120 it now, And maybe that's what they're referring to. And 0:02:10.160 --> 0:02:12.919 I remember, of course they've had just almost a year 0:02:13.000 --> 0:02:16.800 long policy review, the FED listening miss meetings all over 0:02:16.880 --> 0:02:21.280 the country, and in September they are widely expected to 0:02:21.440 --> 0:02:24.320 put put their their conclusions out. And one of the 0:02:24.360 --> 0:02:25.760 other things I think we're gonna look for in the 0:02:25.800 --> 0:02:31.320 minutes is anything they said about the inflation target and 0:02:31.400 --> 0:02:33.720 moving from we're gonna keep it at two percent or 0:02:33.880 --> 0:02:36.560 try to get it to two percent recently, and then 0:02:36.600 --> 0:02:39.000 we get there, it's a ceiling and we stop. That's 0:02:39.000 --> 0:02:40.720 what people have assumed, And there's a lot of the 0:02:40.800 --> 0:02:43.280 officials saying, no, what we're gonna say is two percent 0:02:43.400 --> 0:02:45.560 is our target. But when we've been way below the 0:02:45.600 --> 0:02:49.840 target for years, it's okay to go above for a 0:02:49.919 --> 0:02:52.040 while to to get it kind of straightened out. The 0:02:52.120 --> 0:02:54.880 question is how far above and how long above. That's 0:02:54.880 --> 0:02:56.760 the kind of thing. But there's the VET can't really 0:02:56.840 --> 0:02:59.680 change his policy right now. Right virus is still there, 0:03:00.000 --> 0:03:02.840 economy still weak. There's no reason for them to hint 0:03:02.880 --> 0:03:07.080 at anything different. But I think these other questions that 0:03:07.080 --> 0:03:09.000 people are waiting to hear more about it very important. 0:03:09.200 --> 0:03:11.840 I just want to say, in terms of um market reaction, 0:03:12.040 --> 0:03:14.560 seems like from our our fed blog that we're doing 0:03:14.560 --> 0:03:16.560 our live blog, not much reaction yet in the markets. 0:03:16.600 --> 0:03:18.440 If I look at the equity markets, they're pretty much 0:03:18.480 --> 0:03:21.200 where they were prior to the release of the minutes. Uh. 0:03:21.240 --> 0:03:22.880 They are pointing out that the long end of the 0:03:22.880 --> 0:03:26.360 treasury market, those yields turning a little higher, thirty year 0:03:26.400 --> 0:03:29.359 yield at a session peak of one point. But let's 0:03:29.520 --> 0:03:31.519 let's tuck a bit about the equity trade. Dave Wilson 0:03:31.560 --> 0:03:33.760 come on in on that. Well, you have the SMP 0:03:33.919 --> 0:03:36.120 five near its highs of the day, but you haven't 0:03:36.160 --> 0:03:39.480 seen a whole lot of movement. Uh three tents of 0:03:39.680 --> 0:03:42.800 percent gain at most, and and we're approaching that at 0:03:42.800 --> 0:03:45.200 this point. But really the story of the day is 0:03:45.280 --> 0:03:49.120 Apple poking its head above two trillion dollars in market value. 0:03:49.400 --> 0:03:52.680 First US company ever to do that. You know, Saudia 0:03:52.800 --> 0:03:55.600 Ramco when they went public was just above two trillion 0:03:55.640 --> 0:03:59.680 when the shares started trading. So that's perhaps the next milestone. 0:03:59.720 --> 0:04:04.120 Four are Apple in terms of their evaluation that you know, 0:04:04.560 --> 0:04:08.440 Apple at least one big reason why you know, stocks 0:04:08.440 --> 0:04:10.560 are moving up at this point. And then you can 0:04:10.600 --> 0:04:13.760 point the target which had earnings out that we're pretty 0:04:13.800 --> 0:04:16.760 well received and those shares up twelve percent leading to 0:04:16.920 --> 0:04:20.360 SMP fire. Yeah. I do want to say the market though, 0:04:20.520 --> 0:04:23.719 coming down a little bit. Yeah, just in the last 0:04:23.760 --> 0:04:27.040 couple of seconds, and it must be to somebody found 0:04:27.120 --> 0:04:30.160 something they didn't like or you know, we're getting close 0:04:30.200 --> 0:04:31.680 to the highs of the day, and of course you're 0:04:31.960 --> 0:04:35.000 at record levels for the SMP five hundred above where 0:04:35.040 --> 0:04:37.960 we were yesterday when we broke the February high. So 0:04:38.360 --> 0:04:40.760 you know, it's understandable perhaps people might want to pull 0:04:40.800 --> 0:04:43.240 back a bit. And so, Kathleen, what is top of 0:04:43.279 --> 0:04:46.040 mind for the Fed right now in this moment, because 0:04:46.040 --> 0:04:48.080 you know, this is a little bit backward looking in 0:04:48.200 --> 0:04:49.760 terms of you know, sort of figuring out what they 0:04:49.760 --> 0:04:53.960 were thinking. We know that this is fast moving economically, medically, 0:04:54.000 --> 0:04:56.120 all of these things. You're talking to people all the 0:04:56.120 --> 0:04:58.560 time in and around the FED. What are they thinking 0:04:58.560 --> 0:05:02.040 about right now? Well, they're thinking about the fact that 0:05:02.400 --> 0:05:06.280 they have done things to support the economy that have helped, 0:05:07.080 --> 0:05:08.800 you know, so support it. You know, there are a 0:05:08.839 --> 0:05:11.720 lot of businesses that have been able to stay on 0:05:11.760 --> 0:05:15.080 there on their feet because the FED provided lots of liquidity. 0:05:15.600 --> 0:05:19.040 They've done everything they can to stabilize markets, and they 0:05:19.200 --> 0:05:22.560 every time somebody talks, sometimes whether they're asked or not, 0:05:22.760 --> 0:05:25.479 they say, and we have done what we can do 0:05:25.520 --> 0:05:28.239 with monetary policy. As J. Powell has said, the FED 0:05:28.600 --> 0:05:32.559 can lend, but it cannot spend money. Right that goes 0:05:32.600 --> 0:05:35.440 to Congress. That's where the action has to come next. 0:05:35.480 --> 0:05:38.039 I think they're probably watching these stalled stimulus talks as 0:05:38.120 --> 0:05:41.039 much as anything else. They've got to be watching virus numbers. 0:05:41.200 --> 0:05:44.560 We've got a great chart on the Bloomberg it's virus hotspots. 0:05:44.839 --> 0:05:47.240 The top line is the US and those numbers have 0:05:47.360 --> 0:05:49.640 come way down compared to the peak in July six 0:05:50.240 --> 0:05:52.600 less than half of the what they were seventy eight 0:05:52.640 --> 0:05:56.000 thousand new cases being is a total where was then 0:05:56.040 --> 0:05:59.120 our new ones daily whatever it was um and it's 0:05:59.160 --> 0:06:01.600 down to half. It's in half and the Fed is 0:06:01.720 --> 0:06:04.400 that all along? You want to determine what the economy does? 0:06:04.760 --> 0:06:07.040 Watch the virus night. There was just a guest on 0:06:07.160 --> 0:06:09.640 with David Weston from the Attorney General from North Carolina. 0:06:09.720 --> 0:06:11.680 Wasn't it saying, you know, they sent their kids back 0:06:11.680 --> 0:06:13.920 to school and now they got to send him home. Uh. 0:06:14.160 --> 0:06:15.680 That's the kind of thing that you get, get a 0:06:15.680 --> 0:06:17.760 little momentum going maybe and then it gets it gets 0:06:17.800 --> 0:06:20.599 hobbled again. Yeah, all right, guys, thank you so much. 0:06:20.720 --> 0:06:24.240 Kathleen Hayes Apple, Bloomberg News, Global Economics and Policy Theater, 0:06:24.360 --> 0:06:27.560 Dave Wilson, stocks Are, Bloomberg News. This is Bloomberg Business 0:06:27.600 --> 0:06:31.599 Week with Carol Masser and Jason Kelly on Bloomberg Radio. 0:06:31.880 --> 0:06:35.360 Let's talk a little bit about schools reopening, the medical 0:06:35.400 --> 0:06:38.359 side of that, the social side of it. And it 0:06:38.480 --> 0:06:42.680 is a complicated issue, Carol, because not everyone has the 0:06:42.720 --> 0:06:45.839 same access to healthcare, not everyone has the same sort 0:06:45.880 --> 0:06:48.800 of job. We have to worry about the most vulnerable 0:06:49.360 --> 0:06:52.240 among us. And that's exactly what Dr Ramon Tilladge does. 0:06:52.279 --> 0:06:54.600 He's the founder and chairman of some most community. Here 0:06:54.680 --> 0:06:57.800 joining us on the phone from New York City. Dr Todge, 0:06:57.839 --> 0:07:00.640 really nice to have you here with Carolin myself. I'm 0:07:00.800 --> 0:07:02.679 thank you for you to help me with you. Please. 0:07:03.600 --> 0:07:07.520 So we are talking so much about reopening schools, especially 0:07:07.560 --> 0:07:10.800 in New York City. Is the world's the nations, excuse me, 0:07:10.840 --> 0:07:14.080 the largest school system. What needs to happen for it 0:07:14.160 --> 0:07:17.320 to be safe? Well, in order for me to be saved, 0:07:17.640 --> 0:07:20.560 it should be a discussion between all the people, especially 0:07:20.600 --> 0:07:25.240 the partents with the children's, the school teachers, the doctors, 0:07:25.240 --> 0:07:28.280 obviously the authorities. Well, at this point, I don't see 0:07:28.320 --> 0:07:31.720 that happen. We've been trying for that to happen, especially 0:07:31.760 --> 0:07:35.000 as the doctor to talk and be part of the conversation. 0:07:35.120 --> 0:07:39.080 But we been the one and the I say, in 0:07:39.120 --> 0:07:41.160 the front of the battle from the beginnings as much 0:07:41.200 --> 0:07:44.600 we've been doing this testing education, and I don't think 0:07:44.600 --> 0:07:47.600 we're ready and to open the school because nothing has 0:07:47.680 --> 0:07:51.120 changed as much. What do you mean nothing has changed 0:07:51.120 --> 0:07:54.520 since March? Well, yeah, well let me ask you a question. 0:07:55.200 --> 0:07:58.040 In March, why do we close the school? We've closer 0:07:58.120 --> 0:08:01.720 because the bigger skill, there's no vaccine, there's no treatment 0:08:02.280 --> 0:08:04.400 anything of those things have changed. I don't think so, 0:08:06.640 --> 0:08:10.720 and so why So why then do you think people 0:08:10.760 --> 0:08:13.200 are rushing so much to open schools? Is it an 0:08:13.200 --> 0:08:16.920 economic question? Is it that? I mean, we talked about 0:08:16.920 --> 0:08:19.200 this all the time, that people, you know, need their 0:08:19.280 --> 0:08:21.200 kids to go back to school so that they can 0:08:21.200 --> 0:08:24.160 continue to work. I know this is something you think 0:08:24.200 --> 0:08:27.600 a lot about. So why why is the pressure there? Well, 0:08:27.640 --> 0:08:30.080 there's no one answer for when you dealing with the 0:08:30.120 --> 0:08:33.600 pandemic that nobody knew about it. Nobody has a hundred 0:08:33.679 --> 0:08:36.679 years and most of our scholars has failed to tell 0:08:36.720 --> 0:08:39.120 us the truth of these virus. But we on there 0:08:39.120 --> 0:08:42.160 forth from being since March telling us what's going on 0:08:42.280 --> 0:08:46.160 right now? We know this for two in our neighborhoods 0:08:46.559 --> 0:08:49.079 how tested positive in our tests that we do. We 0:08:49.240 --> 0:08:53.439 ins almost two thousand doctors or those one more than 0:08:53.480 --> 0:08:57.679 two hundred hundred family practices will take care of two 0:08:57.720 --> 0:09:01.400 hundred kids, which is almost goes to a four fifth 0:09:01.880 --> 0:09:04.120 the faith for all the kids in New York City 0:09:04.440 --> 0:09:08.160 we've been testing. Then forty two our neighbors are positive. 0:09:08.440 --> 0:09:10.960 Let's the average between the four main border that we 0:09:10.960 --> 0:09:14.400 are on. Then it that's true. I mean the fifth 0:09:14.640 --> 0:09:17.719 percent has not seen the virus yet. You opened the 0:09:17.760 --> 0:09:20.760 school and the numbers that the mayor or the government 0:09:20.760 --> 0:09:23.560 has given us one to two percent. That mean for 0:09:23.640 --> 0:09:29.000 every every thousand kids twenty to ten really positive, you're 0:09:29.600 --> 0:09:31.679 join the other one who are negative. So you're saying, 0:09:31.800 --> 0:09:35.160 you guys have testing kids in communities and you represent 0:09:35.559 --> 0:09:38.600 largely many of certainly the public school systems in New 0:09:38.679 --> 0:09:42.400 York City. Of those kids are positive, I'm guessing a 0:09:42.440 --> 0:09:45.800 fair manner asymptomatic. And the concern is that they're going 0:09:45.840 --> 0:09:49.480 to be in the community and there will be spread. No, 0:09:49.679 --> 0:09:52.520 let me tell you forty two percent positive in blood tests, 0:09:52.840 --> 0:09:56.800 I mean they already had the disease. That means the 0:09:56.960 --> 0:10:02.480 fifty percent and haven't seen virus. Therefore, those one will 0:10:02.520 --> 0:10:05.079 be supposed in the school with the ten with the 0:10:05.120 --> 0:10:07.520 one or two percent that it is estimated that they 0:10:07.520 --> 0:10:11.280 say is positively. Now, therefore, for each thousand kids ten 0:10:11.400 --> 0:10:15.040 to twenty went to the school we positive, then the 0:10:15.080 --> 0:10:19.120 other one will get infected. The majority will never have symptoms, 0:10:19.160 --> 0:10:21.760 but they going back to the houses. Who's gonna get infected? 0:10:22.080 --> 0:10:25.720 Their partients and their grandparents, the people who are the 0:10:25.800 --> 0:10:28.880 most need. They have to find the food day today. 0:10:29.240 --> 0:10:31.040 They don't have a steady job. They lost their job, 0:10:31.360 --> 0:10:33.520 they couldn't find medication, they had no in students. We've 0:10:33.520 --> 0:10:35.760 been hitting very home. But you don't think with New 0:10:35.800 --> 0:10:38.120 York City. We talked about this before we started this 0:10:38.160 --> 0:10:40.760 interview for a New York audience. You don't think um 0:10:40.840 --> 0:10:44.000 Dr Tillage. We talked about the city's positive COVID nineteen 0:10:44.000 --> 0:10:46.440 tests rate, you know, to the lowest since the pandemic 0:10:46.480 --> 0:10:49.199 began in March. I mean the numbers have come way down. 0:10:49.320 --> 0:10:53.680 You don't think that's strong enough, good enough, safe enough 0:10:53.800 --> 0:10:56.480 for kids to go back. I just give you the example. 0:10:56.880 --> 0:10:59.000 I gotta ask your kids. Will you just send it 0:10:59.640 --> 0:11:02.800 knowing that if you have one percent and the school 0:11:02.880 --> 0:11:06.280 has a thousand kids then will be positive. That's one percent. Then, 0:11:07.240 --> 0:11:10.000 I mean those things we jump around kids are kids 0:11:10.520 --> 0:11:14.240 in the school with in our neighborhoods are still negative 0:11:14.720 --> 0:11:17.440 and they will getting affected. There's no one answer. And 0:11:17.480 --> 0:11:19.800 then you asked me about what happened to stay at home? 0:11:19.960 --> 0:11:22.679 Who's gonna take care of them? The motherity to work, 0:11:22.720 --> 0:11:24.640 the father need to work, or the way they can survive. 0:11:25.120 --> 0:11:27.280 They lose their job if they find a job to do, 0:11:27.520 --> 0:11:29.920 if they do the jog Hando Insurance there's no one 0:11:29.960 --> 0:11:33.640 clear answer, but whichever is the answer has to be 0:11:33.720 --> 0:11:37.360 done between all the past, talking together, the teachers, the parents, 0:11:37.400 --> 0:11:41.520 obviously the doctors in the community. We are willing to 0:11:41.559 --> 0:11:44.960 give five computers if they're going to open. We want 0:11:45.000 --> 0:11:48.000 the nurses in the school, yes, we need them and 0:11:48.520 --> 0:11:50.839 want them to be attached to the primary care. There 0:11:50.920 --> 0:11:54.319 is interchange of information according to all the hip a compliance, 0:11:54.600 --> 0:11:58.000 but we could tell them not only the vaccine that 0:11:58.080 --> 0:12:03.080 could happen at some point, how who and when they 0:12:03.120 --> 0:12:05.880 were in fact, how many are infected and what kind 0:12:05.920 --> 0:12:08.319 of our scene they need for all the diseases, the 0:12:08.400 --> 0:12:13.240 one within the pandemic. So Dr Talaj, what does a 0:12:13.400 --> 0:12:16.120 good plan look like? What do we need to do 0:12:16.240 --> 0:12:18.320 at this point? Do we just need to wait for 0:12:18.360 --> 0:12:22.080 a vaccine? There's no question, there is no one answer 0:12:22.160 --> 0:12:25.760 for that. I agree totally with the Teachers Association. We 0:12:25.800 --> 0:12:28.600 had to wait, We had to implement songs in that 0:12:28.640 --> 0:12:31.240 we all coinsolution and know it's going to be painful. 0:12:31.720 --> 0:12:34.280 But if we open right now the way it is, 0:12:34.400 --> 0:12:37.920 there's no different from March. Still, people are positive out 0:12:37.960 --> 0:12:40.120 there and then we come to the school and the 0:12:40.200 --> 0:12:42.880 kids doesn't see the virus will get effected, and then 0:12:42.920 --> 0:12:46.720 we're bringing home and elderly and parents are gonna die. 0:12:47.120 --> 0:12:49.439 They're gonna be very sick. And we don't want to 0:12:49.480 --> 0:12:52.080 see the same way it happened before in New York City. 0:12:52.240 --> 0:12:54.719 We don't. So I do what and if and if 0:12:54.720 --> 0:12:57.320 they open, I don't see. I don't want to see 0:12:57.360 --> 0:13:00.000 one of my kids going to public hopital to get 0:13:00.040 --> 0:13:05.880 That's it. That's preposterous, petricians or in the school? Well 0:13:07.840 --> 0:13:10.360 is that how I mean? A vaccine is not around 0:13:10.400 --> 0:13:12.600 the corner. We may not even get something before the 0:13:12.679 --> 0:13:15.440 end of the year, and some say maybe it'll be 0:13:15.559 --> 0:13:17.680 a year from now before we really have something that's 0:13:17.840 --> 0:13:21.880 very successful in terms of the immunity it creates, creates 0:13:21.880 --> 0:13:25.479 an individuals. But I do wonder Dr Talaj. In the meantime, 0:13:25.800 --> 0:13:28.040 there is pressure to get kids back to school because 0:13:28.440 --> 0:13:31.320 there are those who, as you know, can hire private 0:13:31.320 --> 0:13:35.559 tutors or you know, learn from home successfully, and so 0:13:35.640 --> 0:13:37.720 we are worried about who gets left behind as a 0:13:37.760 --> 0:13:41.520 result of this. If we could have rapid testing in 0:13:41.640 --> 0:13:47.520 schools and administered by medical professional, would that make it 0:13:47.679 --> 0:13:52.560 safer significantly? Would your opinion change about the safetiness of 0:13:52.679 --> 0:13:55.280 our the safety of having kids back at school. Let 0:13:55.320 --> 0:13:56.840 me ask you a question. Are you talking about to 0:13:56.840 --> 0:14:01.240 do one point one million every three days? I guess 0:14:01.320 --> 0:14:04.680 I guess that's not realistic. Certainly not to that. Let's 0:14:04.760 --> 0:14:08.520 let's start that way. We are. You know, we have physicians, 0:14:08.880 --> 0:14:12.400 We believe in science. Besides that, I'm very trusting in 0:14:12.480 --> 0:14:15.880 God and Christian and tratolly. But I'm telling you right 0:14:15.920 --> 0:14:18.440 now it Cattaby is some kind of business if they 0:14:18.440 --> 0:14:20.280 want to open the school the way we're talking about. 0:14:20.400 --> 0:14:22.840 Nothing has changed this March, and we've been in the 0:14:22.880 --> 0:14:24.960 fourth Front, and we we were the first one to 0:14:25.000 --> 0:14:28.040 get the alert at the beginning of March. I'm being 0:14:28.040 --> 0:14:30.960 sorry they. You know, March we told them seventy of 0:14:31.000 --> 0:14:34.680 the people and queens are positive. Stop we need to isolation. 0:14:34.800 --> 0:14:37.560 They were looking for ventilators. We know what we're saying. 0:14:37.760 --> 0:14:41.280 We don't have the answer yet. There's no science answer 0:14:41.440 --> 0:14:46.200 about this vible. Certainly we know that the vaccine that 0:14:46.200 --> 0:14:47.920 I produced, they want to produce it because they want 0:14:47.960 --> 0:14:50.600 to create antibody and the kids. Now we know the 0:14:50.680 --> 0:14:54.480 forty two of our kids has antibody. That's an average. 0:14:54.880 --> 0:14:59.960 Our neighbor therefore is the most important number. Those are negative, 0:15:00.040 --> 0:15:03.400 they haven't seen the virus. Those we get infected. Here 0:15:03.440 --> 0:15:06.480 we go again, Here we go again, and most of 0:15:06.520 --> 0:15:10.280 the time cheater does not have symptoms. So then do 0:15:10.360 --> 0:15:13.720 we just need to wait for her immunity. Then, well, 0:15:13.880 --> 0:15:17.240 I just tell you what the facts are. Now, we 0:15:17.320 --> 0:15:21.880 sit down together on the teachers, the parents, the stakeholders 0:15:21.920 --> 0:15:24.880 decide this is the way we go single go wrong, 0:15:25.400 --> 0:15:28.640 to go right, it will be casualties. That's probably what's 0:15:28.680 --> 0:15:31.680 not to happen. This is really we're dealing here with this. 0:15:32.040 --> 0:15:35.280 We call it the SOLIDU virus because people are dying alone, 0:15:35.760 --> 0:15:38.000 they cannot even see their family. I don't want to 0:15:38.040 --> 0:15:41.800 see another round the same way we saw it a 0:15:41.800 --> 0:15:44.560 few months ago, when so many people die in our neighborhood. 0:15:44.800 --> 0:15:47.520 Those are the same one who has no computers. Their 0:15:47.520 --> 0:15:49.600 farthing had no computers. I want to take the kids 0:15:49.960 --> 0:15:52.480 they know, they don't know that have WiFi. All of 0:15:52.480 --> 0:15:54.800 the things you have to put in consideraction. But there's 0:15:54.840 --> 0:15:58.960 no one answer. One thing is an answer. This virus 0:15:58.960 --> 0:16:03.960 still killed the saying. So bottom line, you would say, 0:16:04.000 --> 0:16:06.560 no school's open come September. In New York City just 0:16:06.680 --> 0:16:09.400 quickly just got about thirty seconds they do, we will 0:16:09.400 --> 0:16:14.480 be supposed all right, Well, we're gonna leave it there. 0:16:14.520 --> 0:16:16.040 Thank you so much. We look forward to keeping in 0:16:16.080 --> 0:16:18.880 touch with you. Dr Ramon to Lodge, founder chairman of 0:16:18.920 --> 0:16:23.120 some most Community Care. It is a network of independent 0:16:23.360 --> 0:16:30.600 physicians more than healthcare providers involved, serving predominantly Latino and 0:16:30.640 --> 0:16:35.000 immigrant communities. This is Bloomberg Business Week with Carol Masser 0:16:35.120 --> 0:16:38.880 and Jason Kelly on Bloomberg Radio. Check out this Bloomberg 0:16:38.920 --> 0:16:44.000 Business Week story because let's not forget with Despite everything 0:16:44.040 --> 0:16:47.680 going on, hackers never let up this story at Business 0:16:47.720 --> 0:16:51.360 Week about how hackers bled one eighteen bitcoins out of 0:16:51.360 --> 0:16:54.000 COVID researchers in the United States. So, yeah, there is 0:16:54.040 --> 0:16:57.760 a virus angle here. Carter ke Marotra is cybersecurity reporter 0:16:57.800 --> 0:17:01.600 at Bloomberg News, joins us on the phone from sam Francisco. Cardike. 0:17:02.080 --> 0:17:07.000 Interesting story, tell us what's going on. So in early June, 0:17:07.560 --> 0:17:14.199 um attackers, cyber attackers from a cybergang broke into the 0:17:14.280 --> 0:17:18.359 Department of Epidemiology and Biostatistics at the University of California 0:17:18.400 --> 0:17:22.639 San Francisco. UCSF is uh famous for its med school 0:17:22.680 --> 0:17:25.440 and its teaching hospital and was was in the midst 0:17:25.560 --> 0:17:29.520 of some COVID related research. They were looking into UM 0:17:29.560 --> 0:17:32.800 at the time, we were still wondering whether hydroxy chloroquinn 0:17:32.880 --> 0:17:36.359 could could offer any redeeming value as as treatment. They 0:17:36.359 --> 0:17:40.000 were looking into contact tracing programs. They wanted to know 0:17:40.119 --> 0:17:43.760 who was adversely affected most by COVID and UH. In 0:17:43.760 --> 0:17:47.439 that first week of June, hackers locked up seven of 0:17:47.480 --> 0:17:52.000 their servers UM and UH and demanded three million dollars 0:17:52.040 --> 0:17:56.040 in ransom. It took about a week. UCSF hired a 0:17:56.080 --> 0:17:59.080 negotiator and some lawyers to to help them see their 0:17:59.080 --> 0:18:02.280 way through this, and over the course of a week, UM, 0:18:02.480 --> 0:18:05.000 we we got a glimpse into what it takes to 0:18:05.040 --> 0:18:08.280 get out of this very very messy situation. Yeah. So 0:18:08.440 --> 0:18:13.800 you saw basically the communication between the operator and you. 0:18:14.000 --> 0:18:16.960 C SF tell us what was in there, because the 0:18:17.000 --> 0:18:20.879 back and forth is fascinating. It's really strange. UH. So 0:18:21.440 --> 0:18:25.320 you've got one side that that is, you know, objectively 0:18:25.320 --> 0:18:28.640 a criminal, right and in a real world situation, there's 0:18:28.680 --> 0:18:34.040 no way you you offer legitimacy too to their business model, 0:18:34.080 --> 0:18:37.560 which is holding you hostage. But in a cyber realm, 0:18:37.600 --> 0:18:41.239 there's no chance of or very little chance of at 0:18:41.280 --> 0:18:44.520 least immediately catching these bad guys. You have to take 0:18:44.600 --> 0:18:48.040 them seriously. And that's what this negotiator did, was was 0:18:48.119 --> 0:18:53.000 provide them with the respect they needed. They demanded respect um, 0:18:53.280 --> 0:18:55.639 and so the negotiator had to provide them with that 0:18:55.760 --> 0:18:58.560 sort of certainty that we are taking you seriously. We 0:18:58.560 --> 0:19:00.800 we know that this is your business model and and 0:19:00.840 --> 0:19:03.600 you're just here to do your job. And so UM 0:19:03.720 --> 0:19:07.000 UCSF really had to sort of buy into that. And 0:19:07.000 --> 0:19:09.439 and so the back and forth over weeks was but 0:19:09.560 --> 0:19:14.359 at times comical, almost like amateur drama. Ish um. But 0:19:14.920 --> 0:19:17.880 you know, car, I want to do a reading around 0:19:17.920 --> 0:19:20.199 the table with the lines back and forth here because 0:19:20.520 --> 0:19:23.840 you say, the guys uh at u c SF UM, 0:19:23.960 --> 0:19:26.120 we're saying to the hackers, we've poured almost all our 0:19:26.160 --> 0:19:29.080 funds into COVID nineteen research to help cure this disease. 0:19:29.720 --> 0:19:31.240 Um that on top of all the cuts due to 0:19:31.280 --> 0:19:33.199 classes being canceled as put a serious drain in the 0:19:33.200 --> 0:19:35.359 whole school. You know, they're like, we don't have the 0:19:35.359 --> 0:19:38.760 money basically, and then the operator was like, wait a minute. 0:19:38.840 --> 0:19:40.919 You know the school, you know, you collect more than 0:19:40.960 --> 0:19:43.399 seven billion in revenue each year. You've got lawyers, you 0:19:43.480 --> 0:19:46.240 got security consultants. We think you should be good for 0:19:46.280 --> 0:19:49.080 a few mil. Yeah, they just weren't buying it right. 0:19:49.480 --> 0:19:53.280 They saw this as a massive institution that spend billions 0:19:53.320 --> 0:19:55.960 every year. Uh, and they should have a couple of 0:19:56.000 --> 0:20:00.720 mill to toss around to get their system back online. Unfortunately. 0:20:00.880 --> 0:20:04.160 Or UCSFS contention was that, look, we're in the middle 0:20:04.160 --> 0:20:06.359 of a pandemic. We don't know if our students are 0:20:06.359 --> 0:20:08.200 coming back and if anybody's going to be paying their 0:20:08.200 --> 0:20:11.240 bills to us this fall. Um, we're trying to research 0:20:11.320 --> 0:20:14.640 a cure for this this disease. We just don't have 0:20:14.680 --> 0:20:17.520 that kind of cash laying around. So their initial offer 0:20:18.040 --> 0:20:24.200 was three dollars um and and the operator scoffed at it. 0:20:24.280 --> 0:20:26.800 He just he or she just didn't didn't see it 0:20:26.840 --> 0:20:29.880 as a reasonable offer because they obviously have a job 0:20:29.920 --> 0:20:33.119 to do as well, and you know, like any salesperson, 0:20:33.240 --> 0:20:35.520 they have a boss as well. Uh. And they were 0:20:35.520 --> 0:20:38.160 afraid of taking three to their boss in the first place. 0:20:38.160 --> 0:20:40.800 They said, look, you have to do better than that. Well, 0:20:40.840 --> 0:20:43.600 and you know, down lower in this story, and I 0:20:43.680 --> 0:20:46.199 encourage everybody to read this because it does take some 0:20:46.240 --> 0:20:50.160 twists and turns and you're reminded that as cinematic as 0:20:50.200 --> 0:20:52.160 this is, and I couldn't help thinking if they made 0:20:52.160 --> 0:20:54.879 the big Lebowski now it would have to involve some 0:20:54.880 --> 0:20:59.080 some bitcoin. Um. But you know, you do have some 0:20:59.119 --> 0:21:03.600 really interesting moments where the representative from UCSF basically is like, 0:21:03.880 --> 0:21:06.439 look man like as you say, like my jobs on 0:21:06.480 --> 0:21:09.399 the line. Here people are essentially making fun of me. 0:21:09.480 --> 0:21:12.760 They think I totally messed this up. And you have 0:21:12.760 --> 0:21:14.520 the operator coming back and be like, it's really not 0:21:14.560 --> 0:21:16.359 your fault. We could do this to anyone. I mean, 0:21:16.400 --> 0:21:19.000 it's chilling in a lot of ways, and it's it's 0:21:19.000 --> 0:21:22.480 really true. Um. And so the most important aspect of 0:21:22.480 --> 0:21:25.040