1 00:00:05,800 --> 00:00:08,720 Speaker 1: Welcome to the Bloomberg pim L Podcast. I'm pim Fox 2 00:00:08,760 --> 00:00:11,440 Speaker 1: along with my co host Lisa A. Brahmowitz. Each day 3 00:00:11,480 --> 00:00:15,000 Speaker 1: we bring you the most important, noteworthy, and useful interviews 4 00:00:15,040 --> 00:00:17,520 Speaker 1: for you and your money, whether you're at the grocery 5 00:00:17,560 --> 00:00:20,560 Speaker 1: store or the trading floor. Find the Bloomberg p m 6 00:00:20,680 --> 00:00:32,560 Speaker 1: L Podcast on Apple Podcasts, SoundCloud, and Bloomberg dot com. 7 00:00:32,560 --> 00:00:35,600 Speaker 1: Phil Orlando joining us now in our Bloomberg Interactive Broker Studios. 8 00:00:35,600 --> 00:00:38,880 Speaker 1: Phil Orlando, of course, chief Equity market Strategistic Federated Investors. 9 00:00:39,120 --> 00:00:41,360 Speaker 1: He brought his blood pressure medication with him because it's 10 00:00:41,400 --> 00:00:44,319 Speaker 1: been that kind of that kind of weak. Um, so 11 00:00:44,479 --> 00:00:47,519 Speaker 1: is this enough. It's a step in the right direction. 12 00:00:47,560 --> 00:00:49,760 Speaker 1: I mean, we've seen this movie before. We we think 13 00:00:49,800 --> 00:00:53,479 Speaker 1: we know how it ends. The beginning of October, Powell 14 00:00:53,560 --> 00:00:57,240 Speaker 1: makes a rookie mistake saying we're a ways away from 15 00:00:57,240 --> 00:00:59,520 Speaker 1: neutral in the market. That's when we started to roll 16 00:00:59,600 --> 00:01:03,279 Speaker 1: over and I and then he has that special technical term. 17 00:01:04,920 --> 00:01:07,920 Speaker 1: So then he has this the lunch at the New 18 00:01:08,000 --> 00:01:12,600 Speaker 1: York on November right. I was at that lunch along 19 00:01:12,640 --> 00:01:16,600 Speaker 1: with my closest friends, and he did the right thing. 20 00:01:16,760 --> 00:01:19,280 Speaker 1: He explained to us in a little bit more detail 21 00:01:19,640 --> 00:01:23,040 Speaker 1: exactly what he meant, uh, we're very close to neutral. 22 00:01:23,400 --> 00:01:25,640 Speaker 1: And and as I walked out of that meeting, having 23 00:01:25,720 --> 00:01:29,479 Speaker 1: read his transcript, having listened to his speech, in my 24 00:01:29,560 --> 00:01:31,440 Speaker 1: mind it was like, Okay, we're gonna get a hike 25 00:01:31,480 --> 00:01:35,640 Speaker 1: in December. That's fine, We're gonna get one more hike 26 00:01:35,880 --> 00:01:40,200 Speaker 1: later in ten. I think we're gonna skip March because 27 00:01:40,440 --> 00:01:43,839 Speaker 1: of the March first deadline with the China trade deal 28 00:01:44,240 --> 00:01:46,520 Speaker 1: and breaks it coming at the end of March and 29 00:01:46,800 --> 00:01:50,520 Speaker 1: ceiling debate, and exactly so. So in my mind, I 30 00:01:50,560 --> 00:01:52,880 Speaker 1: walked out of that lunch in November saying, the Fed's 31 00:01:52,960 --> 00:01:56,160 Speaker 1: got one, maybe two hikes left and then we're done. 32 00:01:56,520 --> 00:01:59,000 Speaker 1: And what did the market do? They rallied? Okay. So 33 00:01:59,040 --> 00:02:01,720 Speaker 1: then we fast forward to fo MC meeting and everyone 34 00:02:02,120 --> 00:02:04,680 Speaker 1: myself at the top of this list or expecting the 35 00:02:04,680 --> 00:02:07,640 Speaker 1: FED to come in adjust the dot plots from what 36 00:02:07,680 --> 00:02:10,239 Speaker 1: we saw at the September f MC meeting, literally pull 37 00:02:10,320 --> 00:02:13,040 Speaker 1: in their horns. And then during the Q and A, 38 00:02:13,560 --> 00:02:16,519 Speaker 1: we were expecting Powell to sort of put some some 39 00:02:16,680 --> 00:02:19,480 Speaker 1: flesh on those bones and explain, all right, we just 40 00:02:19,520 --> 00:02:22,239 Speaker 1: got a hike, We're probably gonna skip March for a 41 00:02:22,280 --> 00:02:25,080 Speaker 1: couple of reasons. We've got one more hike next year 42 00:02:25,120 --> 00:02:27,320 Speaker 1: and then we're probably done. That's not what he did, 43 00:02:27,760 --> 00:02:30,520 Speaker 1: and and that's why the market responded is violently to 44 00:02:30,560 --> 00:02:32,560 Speaker 1: the downside, as they did the last couple of days. 45 00:02:32,680 --> 00:02:35,880 Speaker 1: So fast forward to this morning. Uh, John Williams is 46 00:02:36,120 --> 00:02:39,000 Speaker 1: is trotted out on Steve Leesman Show, and and he's 47 00:02:39,000 --> 00:02:44,160 Speaker 1: trying to reset what what the chairman perhaps had intended 48 00:02:44,200 --> 00:02:46,560 Speaker 1: to say with that answer? All right, let's let's roll 49 00:02:46,600 --> 00:02:49,080 Speaker 1: it to the balance sheet? What do you think the 50 00:02:49,120 --> 00:02:51,520 Speaker 1: Fed is looking to do as it relates to, you know, 51 00:02:51,680 --> 00:02:54,560 Speaker 1: quantitative tightening as we roll into do you think this 52 00:02:54,600 --> 00:02:56,160 Speaker 1: is gonna play out? So I think we've got a 53 00:02:56,160 --> 00:02:59,160 Speaker 1: pretty good beat on this that that the Fed's balance 54 00:02:59,160 --> 00:03:01,360 Speaker 1: sheet peeked out about four and a half trillion dollars, 55 00:03:01,480 --> 00:03:04,680 Speaker 1: up from a number below one trillion at the beginning. 56 00:03:04,919 --> 00:03:07,760 Speaker 1: So they've got to pull that in and I think 57 00:03:07,840 --> 00:03:11,240 Speaker 1: create dry powder. They need to prepare for the next recession, 58 00:03:11,680 --> 00:03:15,799 Speaker 1: which we don't think is next year. We still think two. 59 00:03:16,080 --> 00:03:17,760 Speaker 1: And I think they need to pull that back to 60 00:03:17,800 --> 00:03:20,720 Speaker 1: about the three trillion dollar level. Right now, they're rolling 61 00:03:20,720 --> 00:03:22,799 Speaker 1: it off at a pace of about fifty billion dollars 62 00:03:22,840 --> 00:03:25,560 Speaker 1: a month. So where we are right now I think 63 00:03:25,680 --> 00:03:28,600 Speaker 1: is just a shade over four trillion dollars. We're gonna 64 00:03:28,680 --> 00:03:31,000 Speaker 1: roll off six hundred billion next year. That gets us 65 00:03:31,000 --> 00:03:33,840 Speaker 1: to about three four or so, and then if we 66 00:03:33,960 --> 00:03:36,960 Speaker 1: rolled another six hundred billion off in twenty, that takes 67 00:03:37,000 --> 00:03:40,400 Speaker 1: us down about two point eight. Somewhere in there, somewhere 68 00:03:40,400 --> 00:03:42,840 Speaker 1: between two eight and three four, you know, let's call 69 00:03:42,920 --> 00:03:44,960 Speaker 1: it three three and a quarter or something like that. 70 00:03:44,960 --> 00:03:47,040 Speaker 1: That's where I think the Fed stops. But when he 71 00:03:47,120 --> 00:03:50,080 Speaker 1: got the question during the press conference, what are you 72 00:03:50,120 --> 00:03:51,839 Speaker 1: doing with the balance sheet, he was like, Oh, we're 73 00:03:51,840 --> 00:03:56,520 Speaker 1: on autopilot. Explain to us what that means. That Hold 74 00:03:56,520 --> 00:03:58,360 Speaker 1: on a second. I think he did more than that. 75 00:03:58,480 --> 00:04:00,600 Speaker 1: I think it wasn't just that we're on a pilot. 76 00:04:00,960 --> 00:04:04,440 Speaker 1: He seemed to dismiss the significance that quantitative tightening or 77 00:04:04,520 --> 00:04:06,880 Speaker 1: letting the balance sheet roll off had on markets, that 78 00:04:06,960 --> 00:04:09,560 Speaker 1: the reality is that the market is very concerned about 79 00:04:09,600 --> 00:04:12,480 Speaker 1: that because we don't have a full sense. Are they 80 00:04:12,560 --> 00:04:15,360 Speaker 1: going back to you know, a trillion dollars, are they 81 00:04:15,400 --> 00:04:19,160 Speaker 1: going to zero, or were they going to some intermediate 82 00:04:19,279 --> 00:04:23,160 Speaker 1: level at which everyone is comfortable I think some more 83 00:04:23,400 --> 00:04:26,440 Speaker 1: discussion around that point would have been more helpful to 84 00:04:26,520 --> 00:04:29,400 Speaker 1: keep the market calm. Do you think Chairman pal has 85 00:04:29,440 --> 00:04:31,159 Speaker 1: lost the market And by that I mean as he 86 00:04:31,240 --> 00:04:35,000 Speaker 1: lost the confidence at market participants, And if so, what 87 00:04:35,000 --> 00:04:38,800 Speaker 1: do we do? So? I was on Maria Bromo show 88 00:04:38,880 --> 00:04:42,080 Speaker 1: Monday morning, and we were laughing over the rookie mistake 89 00:04:42,160 --> 00:04:45,880 Speaker 1: that Ben Bernanke had made with her at a cocktail party, 90 00:04:46,040 --> 00:04:48,960 Speaker 1: talking about stuff he shouldn't have been talking about. But 91 00:04:49,040 --> 00:04:52,640 Speaker 1: he learned from that mistake and improved. Jenny Yellen made 92 00:04:52,640 --> 00:04:55,880 Speaker 1: a mistake in her first year telling everyone they should 93 00:04:55,880 --> 00:04:59,640 Speaker 1: sell biotechnology stocks that obviously didn't work very well. So 94 00:05:00,040 --> 00:05:03,040 Speaker 1: well had his rookie mistake in in October, he should 95 00:05:03,080 --> 00:05:06,159 Speaker 1: have learned from that. And and you know, I, you know, 96 00:05:06,720 --> 00:05:10,359 Speaker 1: speaking personally, and disappointed that we got the performance we 97 00:05:10,440 --> 00:05:13,440 Speaker 1: got two days ago with three days ago, we should 98 00:05:13,440 --> 00:05:16,680 Speaker 1: have gotten a better, tighter presentation. And I think that's 99 00:05:16,720 --> 00:05:19,680 Speaker 1: why the Williams comment this morning was so important. Honestly, 100 00:05:20,320 --> 00:05:23,200 Speaker 1: I could easily see somebody saying he gave us exactly 101 00:05:23,240 --> 00:05:25,640 Speaker 1: what he should have given us. He was saying that 102 00:05:25,720 --> 00:05:28,960 Speaker 1: the economy looks pretty strong. Their data dependent they're convicting 103 00:05:28,960 --> 00:05:31,680 Speaker 1: they have you know, right now it appears that things 104 00:05:31,720 --> 00:05:34,440 Speaker 1: are going well. They don't want to respond too much 105 00:05:34,520 --> 00:05:37,039 Speaker 1: to markets and use, you know, the stock market as 106 00:05:37,080 --> 00:05:39,560 Speaker 1: a barometer of whether or not they should hike. What 107 00:05:39,640 --> 00:05:41,440 Speaker 1: did you say that was that different? Number one and 108 00:05:41,520 --> 00:05:44,359 Speaker 1: number two? You know, honestly, at a certain point, aren't 109 00:05:44,360 --> 00:05:46,560 Speaker 1: we just seeing price discovery for the first time in 110 00:05:46,560 --> 00:05:49,640 Speaker 1: a decade? Lisa, You're you're a thousand percent correct that 111 00:05:49,800 --> 00:05:53,720 Speaker 1: the context of the environment you're in is something that 112 00:05:53,720 --> 00:05:56,520 Speaker 1: that he's oblivious to. The the S and P five 113 00:05:56,600 --> 00:06:00,960 Speaker 1: hundreds down sixteen since the middle of September, rustles down twenty. 114 00:06:01,760 --> 00:06:03,760 Speaker 1: We're sort of in a free fall here at a 115 00:06:03,839 --> 00:06:07,040 Speaker 1: point in the seasonal cycle where the market should be 116 00:06:07,080 --> 00:06:09,640 Speaker 1: going up. The economic that is pretty good, corporate earning 117 00:06:09,640 --> 00:06:12,000 Speaker 1: is a pretty good GDP growth is pretty good. Yet 118 00:06:12,080 --> 00:06:15,279 Speaker 1: we're in a free fall. That suggested that the market 119 00:06:15,320 --> 00:06:18,520 Speaker 1: is skittish, it's nervous, it's concerned, and and the Fed 120 00:06:18,560 --> 00:06:21,159 Speaker 1: should have recognized that. And I think Williams sort of 121 00:06:21,200 --> 00:06:25,000 Speaker 1: made that comment today. We we we we are looking 122 00:06:25,040 --> 00:06:28,200 Speaker 1: at what the markets telling us. Where we're we're cognizant 123 00:06:28,200 --> 00:06:30,159 Speaker 1: of what the market is telling us, and I think 124 00:06:30,200 --> 00:06:34,080 Speaker 1: that the market perceived Wednesday that the Powell was sort 125 00:06:34,120 --> 00:06:37,200 Speaker 1: of oblivious to what's going on right now. So real quickly, 126 00:06:37,240 --> 00:06:39,880 Speaker 1: given all of that, all that uncertainty that maybe have 127 00:06:40,000 --> 00:06:42,280 Speaker 1: been contributed by the Fed, what are you telling your 128 00:06:42,279 --> 00:06:46,160 Speaker 1: clients in Well, we're telling them that that when we 129 00:06:46,400 --> 00:06:49,720 Speaker 1: once we get work our way through all of this 130 00:06:49,960 --> 00:06:53,200 Speaker 1: noise and nonsense, there's gonna be a massive buying opportunity. 131 00:06:53,560 --> 00:06:56,320 Speaker 1: And as we look at the fundamentals, and ultimately that's 132 00:06:56,320 --> 00:06:58,200 Speaker 1: what we're trying to do. And over the course of 133 00:06:58,200 --> 00:07:01,080 Speaker 1: the next year, we think that corp earnings in twenty 134 00:07:01,240 --> 00:07:03,680 Speaker 1: nine are going to be a hundred and seventy dollars 135 00:07:03,720 --> 00:07:05,680 Speaker 1: off of a hundred and sixty dollars this year. Now 136 00:07:05,680 --> 00:07:08,120 Speaker 1: that's only up five or six percent as opposed to 137 00:07:08,440 --> 00:07:10,840 Speaker 1: five percent this year, So will there'll be a deceleration 138 00:07:10,840 --> 00:07:14,840 Speaker 1: and earnings growth? Yes. Multiples Price earnings ratios over the 139 00:07:14,880 --> 00:07:18,240 Speaker 1: last three or four months have contracted from eighteen times 140 00:07:18,240 --> 00:07:21,440 Speaker 1: earnings trading a little over fourteen times earnings right now, 141 00:07:21,520 --> 00:07:24,520 Speaker 1: we've lost four multiple points. We believe that an eighteen 142 00:07:24,600 --> 00:07:28,559 Speaker 1: multiple is the appropriate multiple given the relatively benign nature 143 00:07:28,560 --> 00:07:31,280 Speaker 1: of both interest rates and inflation. So if that's right, 144 00:07:31,800 --> 00:07:34,000 Speaker 1: and we're slapping an eighteen multiple on a hundred and 145 00:07:34,040 --> 00:07:37,320 Speaker 1: seventy dollars and earnings, that's thirty one the SMP. We're 146 00:07:37,320 --> 00:07:40,880 Speaker 1: sitting here in what dred I mean that you're looking 147 00:07:40,920 --> 00:07:43,880 Speaker 1: at at, you know, a twenty plus kind of return. 148 00:07:44,160 --> 00:07:46,559 Speaker 1: But there's a lot of stuff that's got to happen 149 00:07:46,560 --> 00:07:49,520 Speaker 1: in between now and declaring a bottom. And and the 150 00:07:49,520 --> 00:07:52,280 Speaker 1: things I'd look at are going to happen next spring 151 00:07:52,320 --> 00:07:55,120 Speaker 1: and or next March in terms of the Breggit deadline 152 00:07:55,240 --> 00:07:57,760 Speaker 1: and our Trump and she gonna be able to successfully 153 00:07:57,840 --> 00:08:01,920 Speaker 1: navigate the um you know, the trade and teriff situation. Yea. 154 00:08:02,000 --> 00:08:05,400 Speaker 1: So just wait for those politicians do come together and 155 00:08:05,400 --> 00:08:09,160 Speaker 1: and then that'll be the time. Merry Christmas, Merry Christmas. 156 00:08:09,400 --> 00:08:14,000 Speaker 1: Would love your Christmas time Fill Orlando. What a suspenders 157 00:08:14,000 --> 00:08:16,680 Speaker 1: that are so good? Orlando, chief faculty markets strategist at 158 00:08:16,680 --> 00:08:35,400 Speaker 1: Federated Investors, full on with the holiday gear. General Maddis, 159 00:08:35,480 --> 00:08:38,320 Speaker 1: who has long been thought to be the ballast in 160 00:08:38,400 --> 00:08:42,160 Speaker 1: the current White House administration, is set to retire. He 161 00:08:42,280 --> 00:08:46,920 Speaker 1: released a memo explaining why it was rather scathing. Did 162 00:08:46,920 --> 00:08:50,440 Speaker 1: not mention President Trump by name once joining us now 163 00:08:50,600 --> 00:08:54,599 Speaker 1: here in our Bloomberg Interactive Broker Studios is Clint Watt's 164 00:08:54,600 --> 00:08:58,360 Speaker 1: Distinguished Research Fellow for Foreign Policy Research Institute, also a 165 00:08:58,360 --> 00:09:00,079 Speaker 1: Senior Fellow at the Center for Cyber and Home and 166 00:09:00,160 --> 00:09:04,280 Speaker 1: Security at the George Washington University. Former formerly an FBI 167 00:09:04,600 --> 00:09:08,840 Speaker 1: Special Agent on a Joint Terrorism Task Force, served in 168 00:09:08,880 --> 00:09:12,079 Speaker 1: the Army. He's joining me and Paul Sweeney, who is 169 00:09:12,120 --> 00:09:14,480 Speaker 1: filling in for Pim Fox. Clint, what do you make 170 00:09:14,520 --> 00:09:20,080 Speaker 1: of General Madis's resignation. It's frightening, I think for just 171 00:09:20,160 --> 00:09:23,600 Speaker 1: about anybody, Republican or Democrat, all the way up until now, 172 00:09:23,720 --> 00:09:26,840 Speaker 1: there was some sort of comfort in knowing that General 173 00:09:26,880 --> 00:09:33,520 Speaker 1: Madis was there. Very experienced, level headed executive can seem 174 00:09:33,600 --> 00:09:37,880 Speaker 1: to communicate with President Trump and the rest of the 175 00:09:38,080 --> 00:09:42,240 Speaker 1: executive branch. He's good in terms of building relationships. He's 176 00:09:42,280 --> 00:09:45,840 Speaker 1: got strong bipartisan support even on the Hill. And yet 177 00:09:46,000 --> 00:09:49,960 Speaker 1: he leaves in a very precipitous way at a time 178 00:09:50,000 --> 00:09:52,839 Speaker 1: where we've got a lot of foreign policy chaos, whether 179 00:09:52,880 --> 00:09:58,200 Speaker 1: you look across the board, Russia, China, ran Syria with 180 00:09:58,320 --> 00:10:01,640 Speaker 1: this rapid pull out, the creation of a space force, 181 00:10:01,679 --> 00:10:04,360 Speaker 1: which kind of came out of nowhere. Just every day 182 00:10:04,400 --> 00:10:07,520 Speaker 1: there seems to be a major foreign policy shift or move. 183 00:10:08,440 --> 00:10:11,800 Speaker 1: Yesterday was withdrawing soldiers from Afghanistan after we were just 184 00:10:11,840 --> 00:10:14,400 Speaker 1: talking about, you know, staying there in the fight. And 185 00:10:14,440 --> 00:10:17,600 Speaker 1: so it's hard for people in the executive branch, in 186 00:10:17,640 --> 00:10:20,960 Speaker 1: the defensive department, I think, to execute any sort of 187 00:10:21,000 --> 00:10:23,600 Speaker 1: a plan because it changes on the web based on 188 00:10:23,640 --> 00:10:26,960 Speaker 1: a phone call or an impromptu meeting the president might have. 189 00:10:27,080 --> 00:10:30,839 Speaker 1: And so I think that resignation letter uh sends a 190 00:10:30,880 --> 00:10:34,040 Speaker 1: shock to to the rest of the executive branch and 191 00:10:34,040 --> 00:10:36,960 Speaker 1: and to the legislative branches that we are in a 192 00:10:37,040 --> 00:10:40,840 Speaker 1: very troublesome space right now. So Clint tell us in 193 00:10:40,880 --> 00:10:45,000 Speaker 1: your mind, how correlated was the resignation of General Mattis 194 00:10:45,360 --> 00:10:49,199 Speaker 1: to Trump's announcement about pulling out of Syria, And related 195 00:10:49,240 --> 00:10:52,679 Speaker 1: to that is is isis defeated, as the President claims, 196 00:10:52,720 --> 00:10:55,600 Speaker 1: that would be news to a lot of people. I believe. Yeah. 197 00:10:55,640 --> 00:10:59,160 Speaker 1: I'll start with the second one, which isis is not defeated. 198 00:10:59,160 --> 00:11:03,120 Speaker 1: In President Trump has been so negative about President Obama 199 00:11:03,200 --> 00:11:06,040 Speaker 1: Is handling where he said that essentially al Qaeda had 200 00:11:06,080 --> 00:11:09,400 Speaker 1: been defeated. That was going back into the last administration, 201 00:11:09,400 --> 00:11:11,719 Speaker 1: which seemed very foolish as ISIS sort of rose out 202 00:11:11,760 --> 00:11:14,680 Speaker 1: of the ashes of al Qaeda, out of nowhere and 203 00:11:14,720 --> 00:11:17,360 Speaker 1: became such a more powerful threat, and we're seeing President 204 00:11:17,360 --> 00:11:20,840 Speaker 1: Trump followed that same pattern. It's really crazy. There's a 205 00:11:20,840 --> 00:11:23,200 Speaker 1: lot of detainees there, the Kurds to actually have a 206 00:11:23,200 --> 00:11:26,400 Speaker 1: lot of ISIS detainees. And this really goes to I 207 00:11:26,440 --> 00:11:29,640 Speaker 1: think the Secretary Maddis decision, which is pulling out a 208 00:11:29,760 --> 00:11:33,200 Speaker 1: Syria precipitously like that may have been a good strategy 209 00:11:33,320 --> 00:11:36,400 Speaker 1: over a year or two, but you want to have 210 00:11:36,480 --> 00:11:39,080 Speaker 1: a plan in place to do that, because otherwise you're 211 00:11:39,200 --> 00:11:42,920 Speaker 1: releasing IIS back onto the battlefield. You're empowering a run 212 00:11:42,920 --> 00:11:45,920 Speaker 1: of Russia, two of our you know, biggest adversaries at 213 00:11:45,920 --> 00:11:49,080 Speaker 1: the moment, and we're not really getting anything in return. 214 00:11:49,160 --> 00:11:51,520 Speaker 1: And by the way, we're also turning our back on 215 00:11:51,640 --> 00:11:54,559 Speaker 1: allies that have gone and done the fighting for US. 216 00:11:54,800 --> 00:11:58,000 Speaker 1: Part of the Syria strategy to counter ISIS was to 217 00:11:58,040 --> 00:12:00,839 Speaker 1: have a limited US footprint on the ground. We didn't 218 00:12:00,840 --> 00:12:03,480 Speaker 1: want to send soldiers back into a rocket Syria. We 219 00:12:03,480 --> 00:12:05,559 Speaker 1: we wanted to do it with just a series of 220 00:12:05,600 --> 00:12:08,760 Speaker 1: special Forces operations and air power and we did took 221 00:12:08,800 --> 00:12:11,640 Speaker 1: a little bit longer than everybody wanted. But other people 222 00:12:11,640 --> 00:12:14,079 Speaker 1: did the fighting on the ground force, the Rocky military, 223 00:12:14,200 --> 00:12:17,480 Speaker 1: the Kurds, uh Syrian militias that we started to train, 224 00:12:17,840 --> 00:12:20,640 Speaker 1: and we have just turned our backs on all of them. Uh. 225 00:12:20,679 --> 00:12:24,000 Speaker 1: And I just really wonder that you know, how we 226 00:12:24,040 --> 00:12:26,679 Speaker 1: move forward if anything ever pops up that we want 227 00:12:26,679 --> 00:12:28,640 Speaker 1: to do. Who would stand with us after we've just 228 00:12:28,679 --> 00:12:30,480 Speaker 1: walked away from them? Well, but that's where I wanted 229 00:12:30,520 --> 00:12:32,720 Speaker 1: to go with this, Clint, how permanent is a damage 230 00:12:32,840 --> 00:12:35,240 Speaker 1: in your mind to the relationship of the U. S 231 00:12:35,280 --> 00:12:40,839 Speaker 1: has with its allies. Our allies don't understand what our 232 00:12:40,880 --> 00:12:44,520 Speaker 1: foreign policy is, and it sounds like sective madness doesn't 233 00:12:44,559 --> 00:12:47,040 Speaker 1: understand it either. You know. In the letter he sort 234 00:12:47,040 --> 00:12:51,120 Speaker 1: of said, you deserve a Secretary of Defense that you 235 00:12:51,160 --> 00:12:54,360 Speaker 1: know supports and works towards your views. But I don't 236 00:12:54,360 --> 00:12:56,760 Speaker 1: think anyone really knows what that is. And so if 237 00:12:56,760 --> 00:12:59,600 Speaker 1: you're an ally, you continue to look at the US 238 00:12:59,679 --> 00:13:03,160 Speaker 1: and say, what are you about? What are you pursuing? 239 00:13:03,320 --> 00:13:06,640 Speaker 1: You know what our interest? Because it pivots back and forth. 240 00:13:07,000 --> 00:13:10,199 Speaker 1: Let's take a Afghanistan. We've seen President Trump take General 241 00:13:10,240 --> 00:13:14,040 Speaker 1: McMaster's sort of strategy a year ago and implement, you know, 242 00:13:14,120 --> 00:13:17,200 Speaker 1: say we're going to do this. Now he's already backtracking 243 00:13:17,240 --> 00:13:19,040 Speaker 1: from it. So what does that tell people on the 244 00:13:19,040 --> 00:13:22,160 Speaker 1: ground there? Look at Isis and Syria. You know, we 245 00:13:22,200 --> 00:13:24,720 Speaker 1: said we'll do one thing, then we do another. North Korea. 246 00:13:25,280 --> 00:13:28,160 Speaker 1: We're going to denuclearise North creates as we want. You know, 247 00:13:28,200 --> 00:13:31,160 Speaker 1: every one of these foreign policy matches that we've gone 248 00:13:31,240 --> 00:13:34,880 Speaker 1: up against uh Vladimir Putin in Helsinki, we've come out 249 00:13:34,880 --> 00:13:38,240 Speaker 1: the other side with no real understanding of what we've gained. 250 00:13:38,280 --> 00:13:41,040 Speaker 1: What is America First Defense our strategy? But what do 251 00:13:41,160 --> 00:13:44,560 Speaker 1: we want to achieve? What we've done is alienate literally 252 00:13:44,600 --> 00:13:47,520 Speaker 1: all of our allies to where the strength of US 253 00:13:47,559 --> 00:13:50,719 Speaker 1: as a country over the past five six decades have 254 00:13:50,840 --> 00:13:53,640 Speaker 1: been we've been able to leverage the entire world against 255 00:13:53,679 --> 00:13:56,640 Speaker 1: whatever evil that might arise. I don't think we can 256 00:13:56,679 --> 00:13:58,720 Speaker 1: do that going forward, and I don't think any ally 257 00:13:58,840 --> 00:14:01,200 Speaker 1: would want to engage with us in a sustained way 258 00:14:01,480 --> 00:14:02,960 Speaker 1: when they can't know if we're really going to be 259 00:14:03,000 --> 00:14:04,840 Speaker 1: in it for the long haul or what we actually 260 00:14:04,840 --> 00:14:08,480 Speaker 1: believe in Clint, I just want to challenge you a 261 00:14:08,480 --> 00:14:10,120 Speaker 1: little bit because a lot of people have been saying 262 00:14:10,160 --> 00:14:11,640 Speaker 1: that the U s should not be fighting in the 263 00:14:11,640 --> 00:14:15,240 Speaker 1: war in Syria and that the Afghanistan UH mission has 264 00:14:15,280 --> 00:14:19,080 Speaker 1: been badly handled, with deaths that really shouldn't be happening. 265 00:14:19,160 --> 00:14:23,080 Speaker 1: So isn't isn't Trump right on that part. The part 266 00:14:23,160 --> 00:14:27,000 Speaker 1: with Syria which is fascinating is the Obama administration took 267 00:14:27,000 --> 00:14:29,920 Speaker 1: a very limited stands. They would not put US soldiers 268 00:14:30,000 --> 00:14:32,520 Speaker 1: into Syria, if you remember, for that exact name reason. 269 00:14:32,760 --> 00:14:34,920 Speaker 1: We don't want to be there permanently trying to solve 270 00:14:34,920 --> 00:14:38,480 Speaker 1: serious problems. President Trump's one of his first actions of 271 00:14:38,520 --> 00:14:41,840 Speaker 1: his administration was to send US soldiers and four straight 272 00:14:41,880 --> 00:14:45,040 Speaker 1: into Syria and into that combat zone. He actually took 273 00:14:45,040 --> 00:14:48,040 Speaker 1: the reverse of that. So if if the strategy is 274 00:14:48,080 --> 00:14:51,200 Speaker 1: to just deal with ISIS and also not get stuck 275 00:14:51,240 --> 00:14:52,760 Speaker 1: in this quagmire, you have to do that in a 276 00:14:52,880 --> 00:14:55,120 Speaker 1: very deliberate way. I think that's what the issue is 277 00:14:55,160 --> 00:14:58,240 Speaker 1: with the Syria debate. People don't doubt that Iran and 278 00:14:58,320 --> 00:14:59,840 Speaker 1: Russia we are mostly going to get their way over 279 00:14:59,880 --> 00:15:02,520 Speaker 1: the long term. But what do we want in that fight? 280 00:15:02,560 --> 00:15:05,960 Speaker 1: Because right now, Russia and Iran and anyone else, if 281 00:15:06,000 --> 00:15:07,640 Speaker 1: they don't take care of that ISIS fight. We'll have 282 00:15:07,680 --> 00:15:12,000 Speaker 1: what we had in foreign fighters showing up around the world, 283 00:15:12,200 --> 00:15:15,200 Speaker 1: terrorists checks and our strategy has always been fight them there, 284 00:15:15,320 --> 00:15:18,360 Speaker 1: rather them fight them here. This goes to Afghanistan as well, 285 00:15:18,440 --> 00:15:21,800 Speaker 1: So to make that bridge, the Afghan war has needed 286 00:15:21,840 --> 00:15:24,680 Speaker 1: to wind down for a long long time. But the 287 00:15:24,720 --> 00:15:28,640 Speaker 1: thing is that it's Hotel California. You you can check in, 288 00:15:28,680 --> 00:15:30,480 Speaker 1: but you can never leave. That's the problem in these 289 00:15:30,520 --> 00:15:34,000 Speaker 1: counter terrorism fights is anytime we put ourselves in a 290 00:15:34,000 --> 00:15:36,480 Speaker 1: footprint like that, we're going to have to be there 291 00:15:36,560 --> 00:15:40,160 Speaker 1: or have a proxy or an ally or a surrogate 292 00:15:40,280 --> 00:15:44,840 Speaker 1: someone help us keep that counter terrorism security mission going forever. 293 00:15:45,040 --> 00:15:47,960 Speaker 1: And we don't have that plan hammered out in Afghanistan 294 00:15:48,080 --> 00:15:50,680 Speaker 1: right now, So we don't have that that raises the 295 00:15:50,800 --> 00:15:56,200 Speaker 1: risk of anything happening on our soil. Yes, over time, 296 00:15:56,280 --> 00:15:59,400 Speaker 1: I mean it won't happen instantaneously. These networks, you know, 297 00:15:59,440 --> 00:16:02,120 Speaker 1: they tend to rise, they evolve, and they show up 298 00:16:02,120 --> 00:16:04,520 Speaker 1: in other places and in other ways. I mean, we 299 00:16:04,560 --> 00:16:07,400 Speaker 1: saw an attack in Morocco just this week where two 300 00:16:07,400 --> 00:16:12,400 Speaker 1: women were brutally murdered by four ISIS supporters, which hasn't 301 00:16:12,440 --> 00:16:15,360 Speaker 1: happened quite some time, and so what will tend to 302 00:16:15,400 --> 00:16:18,160 Speaker 1: happen is they will coalesce in a different way. I 303 00:16:18,200 --> 00:16:20,240 Speaker 1: think another big challenge that we've got that we haven't 304 00:16:20,280 --> 00:16:24,880 Speaker 1: thought through is state sponsored terrorism using these proxies, using 305 00:16:24,880 --> 00:16:27,960 Speaker 1: these former foreign fighters around the world against the United 306 00:16:28,000 --> 00:16:31,160 Speaker 1: States or Western interest shars me to death. Right now, 307 00:16:31,200 --> 00:16:33,280 Speaker 1: we're unfortunately, we're gonna have to leave it there. A 308 00:16:33,320 --> 00:16:34,920 Speaker 1: lot to talk about. We'll have to have you back 309 00:16:34,920 --> 00:16:37,520 Speaker 1: on happy holidays, a lot to think about this year. 310 00:16:37,720 --> 00:16:41,080 Speaker 1: Clint Watt's Distinguished Research Fellow at the Foreign Policy Research Institute, 311 00:16:41,120 --> 00:16:44,600 Speaker 1: also a former FBI Special Agent in the counter Terrorism 312 00:16:44,760 --> 00:17:04,800 Speaker 1: Unit One as a class that has been absolutely pummeled. 313 00:17:04,800 --> 00:17:08,080 Speaker 1: Paul has been bitcoin at least this year, and joining 314 00:17:08,160 --> 00:17:10,240 Speaker 1: us now is somebody who is a believer in the 315 00:17:10,240 --> 00:17:13,959 Speaker 1: blockchain technology, a believer, believer in crypto assets and has 316 00:17:14,000 --> 00:17:17,440 Speaker 1: a lot of money invested in the securities. Daniel Masters, 317 00:17:17,640 --> 00:17:21,159 Speaker 1: chairman of coin Shares Group, joining us now from London. Danny, 318 00:17:21,200 --> 00:17:22,880 Speaker 1: thank you so much for being with us. I thought 319 00:17:22,880 --> 00:17:26,080 Speaker 1: it was really interesting a move that Switzerland made. It 320 00:17:26,160 --> 00:17:34,320 Speaker 1: seems to give some edification to the Christian crypto acid world. Yes, him, 321 00:17:34,760 --> 00:17:36,920 Speaker 1: nice to be with you again. It's been a very 322 00:17:37,000 --> 00:17:41,040 Speaker 1: very interesting see days in crypto following what's been obviously 323 00:17:41,080 --> 00:17:45,640 Speaker 1: a terrible year. Now, Switzerland might not be the most 324 00:17:45,640 --> 00:17:47,960 Speaker 1: prominent nation from the US perspective, but it is the 325 00:17:47,960 --> 00:17:51,359 Speaker 1: eighteenth largest economy in the world, bigger than Belgium and Argentina. 326 00:17:52,080 --> 00:17:56,280 Speaker 1: The Swiss Federal Council just issue that framework entitled the 327 00:17:56,359 --> 00:18:00,439 Speaker 1: Legal Framework for Districted Lleged Technology and Blockchain UM and 328 00:18:00,520 --> 00:18:04,480 Speaker 1: it's been issued by the Swiss Federal Council, the most 329 00:18:04,560 --> 00:18:09,080 Speaker 1: senior office in that Swiss nature nation. This for Switzerland, 330 00:18:09,160 --> 00:18:13,679 Speaker 1: in my opinion, is a new crypto constitution. It is 331 00:18:13,680 --> 00:18:17,720 Speaker 1: a global precedent, and it reminds me a lot of 332 00:18:18,280 --> 00:18:22,840 Speaker 1: the US Jobs Act. So, Daniel, I guess when I 333 00:18:22,920 --> 00:18:26,840 Speaker 1: read that about Switzerland, even though it is a relatively 334 00:18:26,880 --> 00:18:30,800 Speaker 1: smaller economy from a banking perspective, it's been a global 335 00:18:30,880 --> 00:18:33,119 Speaker 1: leader forever. So I kind of viewed it maybe as 336 00:18:33,160 --> 00:18:37,520 Speaker 1: a validation, if you will, of the blockchain technology and cryptocurrencies, 337 00:18:37,880 --> 00:18:40,560 Speaker 1: you know, giving the leadership position that Switzerland's kind of 338 00:18:40,600 --> 00:18:46,000 Speaker 1: always had in financial services. You're correct, they are, indeed, 339 00:18:46,240 --> 00:18:49,960 Speaker 1: who have been for many decades leaders in financial services 340 00:18:50,880 --> 00:18:54,919 Speaker 1: that makes this report that much more credible. The report 341 00:18:54,960 --> 00:18:58,320 Speaker 1: itself is very substantial, colors a hundred and sixty two pages, 342 00:18:59,119 --> 00:19:02,920 Speaker 1: over eight hund legal cross references, and what really drew 343 00:19:02,960 --> 00:19:07,280 Speaker 1: our attention to it was that on my professional network 344 00:19:08,119 --> 00:19:11,200 Speaker 1: this was viewed by over three hundred and seventy five 345 00:19:11,200 --> 00:19:17,080 Speaker 1: thousand people that happened to correspond with the rally in 346 00:19:17,160 --> 00:19:20,680 Speaker 1: crypto measured for example, in bitcoin between life than two 347 00:19:20,720 --> 00:19:24,399 Speaker 1: hundred dollars and four thousand dollars. So I think this 348 00:19:24,680 --> 00:19:29,120 Speaker 1: is a meaningful development. Um. Yeah, So, Danny Um, your 349 00:19:29,320 --> 00:19:33,400 Speaker 1: coin shares has combined one billion dollars of assets under 350 00:19:33,400 --> 00:19:36,840 Speaker 1: management focused on cryptocurrencies and their crypto assets. And I'm 351 00:19:36,880 --> 00:19:39,159 Speaker 1: just wondering what are you expecting next year? I mean, 352 00:19:39,320 --> 00:19:41,679 Speaker 1: are we gonna be talking more about bitcoin as a 353 00:19:41,800 --> 00:19:44,960 Speaker 1: viable long term asset class next year? And will it 354 00:19:45,080 --> 00:19:47,480 Speaker 1: rally or is it going to be another difficult period 355 00:19:47,520 --> 00:19:52,240 Speaker 1: for for it? Well, you know, I think this, this 356 00:19:52,440 --> 00:19:57,960 Speaker 1: report is actually possibly a catalyst for some interesting developments 357 00:19:58,840 --> 00:20:03,800 Speaker 1: seen Cryptova were driven by non institutional investors. This current 358 00:20:03,840 --> 00:20:07,760 Speaker 1: year end rally we're seeing in per our inflows and 359 00:20:07,800 --> 00:20:12,359 Speaker 1: per information from our peers is institutionally driven. This is 360 00:20:12,440 --> 00:20:15,720 Speaker 1: supported by the Swiss government stance because it's a sort 361 00:20:15,760 --> 00:20:20,199 Speaker 1: of encouragement the institutional investment committees can buy into. In 362 00:20:20,320 --> 00:20:24,320 Speaker 1: terms of the likely shape of the rally that we 363 00:20:24,400 --> 00:20:26,520 Speaker 1: may see next year, I think it will be much 364 00:20:26,680 --> 00:20:30,879 Speaker 1: narrower than we saw in the past. The proliferation of tokens, 365 00:20:31,520 --> 00:20:36,200 Speaker 1: many of which will fail, but from that wreckage, similar 366 00:20:36,240 --> 00:20:39,600 Speaker 1: to what happened after the Mastack rash in two thousand one, 367 00:20:40,000 --> 00:20:41,960 Speaker 1: I think we're going to see a narrow band of 368 00:20:42,080 --> 00:20:45,639 Speaker 1: some protocol coins and some asset coins that are going 369 00:20:45,680 --> 00:20:49,160 Speaker 1: to do quite well. Daniel, what else would the crypto 370 00:20:49,240 --> 00:20:53,040 Speaker 1: market broadley define like to see too? I guess further 371 00:20:53,119 --> 00:20:56,359 Speaker 1: validate the technology and the potential use cases. Um, you 372 00:20:56,359 --> 00:21:00,840 Speaker 1: know Switzerland, maybe one of those mile post What else 373 00:21:01,000 --> 00:21:03,080 Speaker 1: do you think the market is really looking forward to 374 00:21:03,119 --> 00:21:08,640 Speaker 1: provide some support for this technology discurrency? Yeah, you're right. 375 00:21:08,760 --> 00:21:13,199 Speaker 1: I think that the the evolutionary big bang that we 376 00:21:13,240 --> 00:21:15,520 Speaker 1: saw in crypto over the last few years has been 377 00:21:15,600 --> 00:21:20,840 Speaker 1: largely aspirational. The technology companies that were directly involved with 378 00:21:21,200 --> 00:21:25,000 Speaker 1: are developing really interesting technology. It has been slow to 379 00:21:25,119 --> 00:21:27,600 Speaker 1: come to the market, and that's what the market needs 380 00:21:27,600 --> 00:21:29,679 Speaker 1: to see now. The head winds that these kind of 381 00:21:29,680 --> 00:21:33,520 Speaker 1: technology companies actually face is being addressed by some of 382 00:21:33,520 --> 00:21:37,200 Speaker 1: these Swiss government measures, so just quickly. Money laundering and 383 00:21:37,560 --> 00:21:41,399 Speaker 1: terrorist financing is always a concern. The Swiss have taken 384 00:21:41,400 --> 00:21:44,880 Speaker 1: this an account, recognized its importance and said in their 385 00:21:44,880 --> 00:21:47,720 Speaker 1: studies and tech detection, so far it's not been a 386 00:21:47,720 --> 00:21:50,560 Speaker 1: big issue, so they're going to keep a watching lie 387 00:21:50,640 --> 00:21:54,040 Speaker 1: but allow a more fluid environment. Banking has been a 388 00:21:54,080 --> 00:21:59,640 Speaker 1: headwind for these companies. This document actually talks about Swissland's 389 00:22:00,000 --> 00:22:03,399 Speaker 1: should get this Swiss Bankers Association to buy into this initiative, 390 00:22:04,400 --> 00:22:07,760 Speaker 1: and cleverly the way that the Swiss are looking at 391 00:22:07,800 --> 00:22:11,679 Speaker 1: securities and physical assets which are usually represented in a 392 00:22:12,920 --> 00:22:16,320 Speaker 1: in a de materialized form like trading rights for securities 393 00:22:16,400 --> 00:22:19,320 Speaker 1: or depository seats for commodity, and they're looking at those 394 00:22:19,359 --> 00:22:21,840 Speaker 1: instruments to be digitized. Thank you so much for being 395 00:22:21,840 --> 00:22:24,520 Speaker 1: with us, Jenny Masters, chairman of Chairman of Coin Shares 396 00:22:24,560 --> 00:22:45,600 Speaker 1: Group in London. Right now we're going to turn our 397 00:22:45,760 --> 00:22:48,960 Speaker 1: focus to healthcare. We've seen healthcare shares getting beaten up 398 00:22:49,000 --> 00:22:52,600 Speaker 1: pretty badly as a result of this Texas judge basically 399 00:22:52,680 --> 00:22:56,200 Speaker 1: overturning Obamacare, joining us now to talk about that and 400 00:22:56,280 --> 00:22:59,840 Speaker 1: whatever else is facing the healthcare industry. Heading into Susan 401 00:22:59,880 --> 00:23:03,400 Speaker 1: of Or, chief executive officer of Premier based in Charlotte, 402 00:23:03,440 --> 00:23:06,280 Speaker 1: but here with us today in our eleven three our studios. So, Susan, 403 00:23:06,320 --> 00:23:08,119 Speaker 1: what did you make of this court ruling and how 404 00:23:08,200 --> 00:23:10,879 Speaker 1: much does it make your life more difficult? You know, 405 00:23:10,960 --> 00:23:13,680 Speaker 1: I think the court ruling is a short term headline. 406 00:23:13,720 --> 00:23:16,480 Speaker 1: It'll go through the process. There have been multiple attempts 407 00:23:16,520 --> 00:23:19,399 Speaker 1: to repeal, replace, or do something with oback Obamacare. The 408 00:23:19,400 --> 00:23:22,000 Speaker 1: truth is you got seventeen million people who have access now. 409 00:23:22,400 --> 00:23:24,320 Speaker 1: And I think the regulators are going to continue to 410 00:23:24,400 --> 00:23:27,840 Speaker 1: implement initiatives that really try to solve the core problems, 411 00:23:27,840 --> 00:23:29,800 Speaker 1: which are the cost of healthcare, the quality and the 412 00:23:29,840 --> 00:23:32,399 Speaker 1: outcomes of healthcare. And so I think I think this 413 00:23:32,480 --> 00:23:37,080 Speaker 1: will just be a background theme while the rest of 414 00:23:37,119 --> 00:23:40,439 Speaker 1: the regulators move forward. And what do you expect and 415 00:23:40,440 --> 00:23:42,439 Speaker 1: what do you expect the rest of those regulators to do? 416 00:23:42,520 --> 00:23:45,440 Speaker 1: What's the I guess the theme for nineteen in terms 417 00:23:45,480 --> 00:23:48,240 Speaker 1: of a regulatory perspective, because when I think about healthcare, 418 00:23:48,320 --> 00:23:52,480 Speaker 1: it always starts and ends with the regulatory framework. Yes, 419 00:23:52,640 --> 00:23:54,760 Speaker 1: there are a couple of themes. The first one is 420 00:23:54,840 --> 00:23:57,680 Speaker 1: they want to move all hospitals and doctors to being 421 00:23:57,720 --> 00:24:01,600 Speaker 1: paid based on a bonus or penalty system based on 422 00:24:01,640 --> 00:24:04,639 Speaker 1: their outcomes, based on their costs, based on their complication rates. 423 00:24:04,960 --> 00:24:08,080 Speaker 1: That will continue in full force. I think they're also 424 00:24:08,200 --> 00:24:10,879 Speaker 1: very focused on drug pricing. There are several initiatives that 425 00:24:10,920 --> 00:24:16,760 Speaker 1: are underway around redesigning the way drug pricing happens um. 426 00:24:16,800 --> 00:24:19,879 Speaker 1: I actually think not only in the public sector, but 427 00:24:19,920 --> 00:24:22,760 Speaker 1: the private sector is very active. Employers are getting a 428 00:24:22,760 --> 00:24:26,399 Speaker 1: lot more engaged in going directly to provider networks like 429 00:24:26,480 --> 00:24:29,280 Speaker 1: a Premiere, where you have a large national footprint of 430 00:24:29,320 --> 00:24:33,680 Speaker 1: providers and they're not satisfied with the value that insurance 431 00:24:33,720 --> 00:24:36,520 Speaker 1: companies have been able to bring in truly changing the 432 00:24:36,560 --> 00:24:39,320 Speaker 1: outcomes in healthcare. How do you lower the costs and 433 00:24:39,359 --> 00:24:42,240 Speaker 1: improve outcomes? What do you do? So it's complicated, right, 434 00:24:42,320 --> 00:24:45,040 Speaker 1: we all know it's complicated now in healthcare, you have 435 00:24:45,160 --> 00:24:48,959 Speaker 1: to have data, you have to have transparency, you have 436 00:24:49,080 --> 00:24:52,280 Speaker 1: to have aggregation ability. So what Premiere does is actually 437 00:24:52,359 --> 00:24:55,720 Speaker 1: aggregate their buying power, aggregate the data, find the root 438 00:24:55,800 --> 00:25:00,119 Speaker 1: cause problems, measure it transparently reported. And I think the 439 00:25:00,119 --> 00:25:04,200 Speaker 1: federal government, state government and insurance companies need to pay 440 00:25:04,240 --> 00:25:06,760 Speaker 1: based on that performance. One thing that I find interesting 441 00:25:06,960 --> 00:25:09,240 Speaker 1: is we're hearing more about artificial intelligence and how it 442 00:25:09,240 --> 00:25:11,159 Speaker 1: can be used in healthcare, and I'm wondering, when you 443 00:25:11,200 --> 00:25:15,240 Speaker 1: talk about data, are you using either artificial intelligence programs 444 00:25:15,240 --> 00:25:17,960 Speaker 1: to try to understand and predict outcomes better or move 445 00:25:18,000 --> 00:25:20,240 Speaker 1: it forward? And also are you are you see any 446 00:25:20,240 --> 00:25:23,400 Speaker 1: of the providers using things like chips that can help 447 00:25:23,400 --> 00:25:26,760 Speaker 1: people measure themselves and things like that. So absolutely, and 448 00:25:26,800 --> 00:25:28,639 Speaker 1: we think it's a theme that will continue into two 449 00:25:28,680 --> 00:25:33,600 Speaker 1: thousand nineteen. All the disruption around technology, the challenges. Everybody 450 00:25:33,640 --> 00:25:36,600 Speaker 1: now has lots of big data. The challenges how do 451 00:25:36,640 --> 00:25:39,439 Speaker 1: you turn that big data into small data so that 452 00:25:39,480 --> 00:25:42,680 Speaker 1: when you're at the doctor and that doctor is interacting 453 00:25:42,720 --> 00:25:45,720 Speaker 1: with you, he can be or she can be alerted 454 00:25:45,760 --> 00:25:49,240 Speaker 1: to change the decisions that are being made based on quality, 455 00:25:49,280 --> 00:25:52,439 Speaker 1: based on safety, based on a new clinical trial. We 456 00:25:52,600 --> 00:25:55,080 Speaker 1: Premier have just acquired a company called Stance and Health 457 00:25:55,160 --> 00:25:59,280 Speaker 1: that helps physicians in real time, in the moment, change 458 00:25:59,320 --> 00:26:01,520 Speaker 1: the way cares being delivered. And that's what we all 459 00:26:01,560 --> 00:26:04,879 Speaker 1: have to get to. But at the at the hospital 460 00:26:05,160 --> 00:26:08,200 Speaker 1: um experience, what are some of the trends there that 461 00:26:08,520 --> 00:26:12,320 Speaker 1: can improve that lower the cost, make it more efficient. Um, 462 00:26:12,640 --> 00:26:15,720 Speaker 1: because it seems like, um, you know that the hospital 463 00:26:15,760 --> 00:26:18,720 Speaker 1: experience is one that that needs to change as well. Yeah, 464 00:26:18,760 --> 00:26:21,720 Speaker 1: so the hospital experience and the doctor experience, I think 465 00:26:21,760 --> 00:26:25,000 Speaker 1: both need to change. One. They need data at their 466 00:26:25,000 --> 00:26:28,240 Speaker 1: fingertips as opposed to these systems that couldn't be connected. 467 00:26:28,280 --> 00:26:30,080 Speaker 1: You know, it's kind of like somebody has an Xbox, 468 00:26:30,080 --> 00:26:32,240 Speaker 1: somebody as a PlayStation, they can't play the same game 469 00:26:32,240 --> 00:26:34,919 Speaker 1: because they're not on the same system. So with cloud 470 00:26:34,920 --> 00:26:38,040 Speaker 1: based computing and all the technology and artificial intelligence, you 471 00:26:38,040 --> 00:26:41,840 Speaker 1: have much more ability to get that data to the patient, 472 00:26:42,040 --> 00:26:45,400 Speaker 1: to the doctor, to the hospital to improve what they're 473 00:26:45,440 --> 00:26:49,360 Speaker 1: doing in real time. What's for that? The for profit hospitals, 474 00:26:49,359 --> 00:26:51,399 Speaker 1: how what are the business trends bidden for them over 475 00:26:51,440 --> 00:26:53,040 Speaker 1: the last several years and how do you expect that 476 00:26:53,080 --> 00:26:55,439 Speaker 1: to play out over the next couple of years. You know, 477 00:26:55,480 --> 00:26:58,000 Speaker 1: the for profit hospitals compete in many of the same 478 00:26:58,000 --> 00:27:00,600 Speaker 1: markets as not for profit hospitals. They all have the 479 00:27:00,680 --> 00:27:04,000 Speaker 1: same problems, which is costs are growing too fast, they 480 00:27:04,040 --> 00:27:06,720 Speaker 1: have they have bad debt charity care. Maybe the for 481 00:27:06,880 --> 00:27:09,520 Speaker 1: profits have some less of that than the not for profits. 482 00:27:10,040 --> 00:27:13,160 Speaker 1: They're trying to integrate the data, they're trying to adjust 483 00:27:13,200 --> 00:27:17,679 Speaker 1: to these risk based payment models. They're trying to improve 484 00:27:17,760 --> 00:27:20,240 Speaker 1: quality and safety, a lot of the same issues. Actually, 485 00:27:20,600 --> 00:27:22,680 Speaker 1: But if we could really implement some of what you're 486 00:27:22,680 --> 00:27:27,000 Speaker 1: talking about, these sort of monitoring devices and computer programs 487 00:27:27,000 --> 00:27:30,600 Speaker 1: that could aggregate and have predictive power, how many hospitals 488 00:27:30,640 --> 00:27:32,679 Speaker 1: would go away? I mean how many? How many of 489 00:27:32,680 --> 00:27:34,840 Speaker 1: the current how much of the current infrastructure that we 490 00:27:34,880 --> 00:27:38,119 Speaker 1: have our healthcare which we rendered obsolete. So there are 491 00:27:38,160 --> 00:27:41,239 Speaker 1: some estimates that there is thirty percent ways still in 492 00:27:41,280 --> 00:27:45,440 Speaker 1: the health care system, meaning overuse, duplication, all of that. 493 00:27:45,960 --> 00:27:49,960 Speaker 1: You complicate that by all these other technologies and capabilities, right, 494 00:27:50,040 --> 00:27:52,520 Speaker 1: and and then you complicated by the demographics of the 495 00:27:52,560 --> 00:27:56,480 Speaker 1: population because twelve thousand people are entering Medicare every single day. 496 00:27:56,960 --> 00:28:02,080 Speaker 1: We're living with chronic conditions longer. Healthcare systems aren't hospitals 497 00:28:02,080 --> 00:28:06,800 Speaker 1: anymore by themselves. They're actually integrated systems of doctors offices 498 00:28:06,840 --> 00:28:10,520 Speaker 1: and surgery centers and retail pharmacies and hospitals and nursing homes. 499 00:28:10,960 --> 00:28:15,000 Speaker 1: And I don't think the need for that that system 500 00:28:15,040 --> 00:28:17,639 Speaker 1: goes away. I actually think As we live longer with 501 00:28:17,720 --> 00:28:22,840 Speaker 1: chronic conditions, it increases. I think that the high cost settings, 502 00:28:23,119 --> 00:28:26,040 Speaker 1: we may need fewer of those, and we may need 503 00:28:26,080 --> 00:28:29,040 Speaker 1: to spend a lot more time and money preventing and 504 00:28:29,080 --> 00:28:33,720 Speaker 1: dealing with chronic conditions in different ways. Susan Davore, thank 505 00:28:33,760 --> 00:28:36,119 Speaker 1: you so much for being with us. Happy holidays to you. 506 00:28:36,320 --> 00:28:40,400 Speaker 1: Thank you YouTube. Susan Diavore is chief executive of Premiere. 507 00:28:40,800 --> 00:28:44,400 Speaker 1: Coming to us here in our eleven three oh studios. 508 00:28:45,600 --> 00:28:48,160 Speaker 1: Thanks for listening to the Bloomberg p m L podcast. 509 00:28:48,480 --> 00:28:52,400 Speaker 1: You can subscribe and listen to interviews at Apple Podcasts, SoundCloud, 510 00:28:52,520 --> 00:28:55,960 Speaker 1: or whatever podcast platform you prefer. I'm pim Fox. I'm 511 00:28:56,000 --> 00:28:59,920 Speaker 1: on Twitter at pim Fox. I'm on Twitter at Lisa Abram. 512 00:29:00,120 --> 00:29:02,719 Speaker 1: It's one before the podcast. You can always catch us 513 00:29:02,760 --> 00:29:04,360 Speaker 1: worldwide on Bloomberg Radio.