1 00:00:01,360 --> 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 --> 00:00:10,360 Speaker 1: we bring you interviews from CEOs, market pros, and Bloomberg experts, 4 00:00:10,400 --> 00:00:13,600 Speaker 1: along with essential market moving news. Find the Bloomberg Markets 5 00:00:13,600 --> 00:00:17,000 Speaker 1: Podcast on Apple Podcasts or wherever you listen to podcasts, 6 00:00:17,000 --> 00:00:21,960 Speaker 1: and on Bloomberg dot com. It is time for Bloomberg Opinion. 7 00:00:22,239 --> 00:00:25,680 Speaker 1: Very interesting set of opinions from Joan Oh Sarah recently 8 00:00:26,200 --> 00:00:28,600 Speaker 1: one on Florida, and then plenty of others that we 9 00:00:28,640 --> 00:00:30,360 Speaker 1: want to get to as well. So let's get to 10 00:00:30,480 --> 00:00:34,280 Speaker 1: Joe right now, who joins us from book Raton in Florida. Joe, 11 00:00:34,320 --> 00:00:37,480 Speaker 1: welcome and thanks for joining. Thanks for having me. First 12 00:00:37,479 --> 00:00:40,240 Speaker 1: of all, how is the situation in Florida? How much 13 00:00:40,560 --> 00:00:43,879 Speaker 1: are people now abiding by rules where they didn't need 14 00:00:43,920 --> 00:00:47,800 Speaker 1: to once upon a time. Well, here in Boca Rattan, Actually, 15 00:00:47,800 --> 00:00:50,600 Speaker 1: people have been abiding by rules at least since I 16 00:00:50,640 --> 00:00:52,720 Speaker 1: got here a month ago, so there's no there's no 17 00:00:52,800 --> 00:00:56,200 Speaker 1: issues there. What you hear is that, um, a lot 18 00:00:56,280 --> 00:01:00,040 Speaker 1: of twenty somethings in Miami we're not wearing masks with 19 00:01:00,120 --> 00:01:04,720 Speaker 1: throwing parties. UM, I don't think that is still going 20 00:01:04,800 --> 00:01:07,959 Speaker 1: on because the numbers have been so high, the daily 21 00:01:08,000 --> 00:01:10,399 Speaker 1: positive case numbers have been so high, it's been kind 22 00:01:10,400 --> 00:01:13,920 Speaker 1: of scary. Um, but you know there are still you know, 23 00:01:14,400 --> 00:01:19,800 Speaker 1: there's there's a lot of Latinos getting COVID because their 24 00:01:19,800 --> 00:01:22,880 Speaker 1: farm workers and you know, they get they don't have masks, 25 00:01:22,920 --> 00:01:25,280 Speaker 1: and they get on buses and they're all crowded together 26 00:01:25,319 --> 00:01:26,720 Speaker 1: and they go to work and then they come home 27 00:01:26,720 --> 00:01:29,520 Speaker 1: and they live in you know, relatively small homes and 28 00:01:29,600 --> 00:01:34,520 Speaker 1: so uh that that has been part of the surge 29 00:01:34,640 --> 00:01:38,360 Speaker 1: here as well. So, Joe, I still love reading your 30 00:01:38,400 --> 00:01:41,120 Speaker 1: stuff at times, your sports work at the New York Times. 31 00:01:41,840 --> 00:01:44,319 Speaker 1: You know, you're out with a column here just recently 32 00:01:44,440 --> 00:01:47,560 Speaker 1: very interesting talking about sports, and that's kind of been 33 00:01:48,080 --> 00:01:50,400 Speaker 1: you know, a big, big, big issue for a lot 34 00:01:50,440 --> 00:01:53,360 Speaker 1: of people. We've got Major League Baseball opening up last 35 00:01:53,440 --> 00:01:56,120 Speaker 1: night with the Yankees winning. I should point out, Um, 36 00:01:56,800 --> 00:01:58,920 Speaker 1: how do you think this is going to play out? Joe? 37 00:01:58,960 --> 00:02:01,680 Speaker 1: I mean, you know, you're down in Florida, that's a 38 00:02:01,760 --> 00:02:05,800 Speaker 1: huge college football state. I just don't see how this 39 00:02:05,840 --> 00:02:09,280 Speaker 1: is going to play out. I think. Okay, so I'd 40 00:02:09,280 --> 00:02:12,639 Speaker 1: be very surprised that this college football was fall. At 41 00:02:12,680 --> 00:02:14,840 Speaker 1: a minimum, I think it'll get pushed to the spring 42 00:02:14,960 --> 00:02:19,720 Speaker 1: because you know, unlike the pros, these guys aren't getting paid, 43 00:02:20,360 --> 00:02:23,400 Speaker 1: and and and in many of these schools, the students 44 00:02:23,440 --> 00:02:25,320 Speaker 1: aren't gonna go to school. They're gonna be doing They're 45 00:02:25,320 --> 00:02:28,240 Speaker 1: gonna be doing it remotely. And so how can you say, well, 46 00:02:28,280 --> 00:02:30,800 Speaker 1: we gotta have the athletes on campus to play football 47 00:02:30,840 --> 00:02:33,320 Speaker 1: games so we can make money when we when when 48 00:02:33,360 --> 00:02:35,360 Speaker 1: when no other students are here, I mean, it's just 49 00:02:35,440 --> 00:02:39,600 Speaker 1: it's it's it's it's the hypocrisy is even worse than 50 00:02:39,720 --> 00:02:42,960 Speaker 1: usual for college sports. So I'd be very surprised to 51 00:02:42,960 --> 00:02:45,560 Speaker 1: play college college football. The pros are different. I mean, look, 52 00:02:45,720 --> 00:02:50,240 Speaker 1: look what happened yesterday. Um, you know, Juan Soto of 53 00:02:50,320 --> 00:02:53,880 Speaker 1: the Nationals, the star, you know, young star left fielder, 54 00:02:54,440 --> 00:02:57,920 Speaker 1: had at a positive test, right and they still and 55 00:02:57,919 --> 00:03:01,440 Speaker 1: they still played the game. So, um, you know, I 56 00:03:01,520 --> 00:03:06,600 Speaker 1: think that so long as you don't have like twelve players, 57 00:03:07,080 --> 00:03:10,200 Speaker 1: you know, getting positive tests at once, I think they'll 58 00:03:10,280 --> 00:03:12,840 Speaker 1: keep playing. If it's one or two, I would I 59 00:03:12,840 --> 00:03:15,920 Speaker 1: would worry more about professional football just because by the 60 00:03:16,080 --> 00:03:21,120 Speaker 1: nature of the sport. Um, if there's a virus floating 61 00:03:21,160 --> 00:03:24,000 Speaker 1: around with the offensive lineman. It's just pretty easy to 62 00:03:24,040 --> 00:03:27,120 Speaker 1: get it on the defensive lineman, you know. So uh, 63 00:03:27,400 --> 00:03:30,040 Speaker 1: to me, the question markets whether you'll be able to 64 00:03:30,040 --> 00:03:33,360 Speaker 1: play football after after a game or two. So how 65 00:03:33,400 --> 00:03:35,800 Speaker 1: many players will come down with COVID? Yeah, I mean 66 00:03:35,840 --> 00:03:38,080 Speaker 1: it would be it would be so difficult to start 67 00:03:38,120 --> 00:03:39,880 Speaker 1: off the season and then have to stop it or 68 00:03:39,920 --> 00:03:42,840 Speaker 1: have some teams you know, strike out or whatever. Speaking 69 00:03:42,840 --> 00:03:45,080 Speaker 1: of which, soo, how long does it take for a 70 00:03:45,160 --> 00:03:47,520 Speaker 1: league to get back up and running after a lost season? 71 00:03:47,560 --> 00:03:54,720 Speaker 1: I mean remember right well, you know, they're all trying 72 00:03:54,720 --> 00:03:57,640 Speaker 1: to cobble together. Just something. I mean, the end the 73 00:03:57,720 --> 00:04:00,720 Speaker 1: NBA was was out from March. They're gonna start up 74 00:04:00,760 --> 00:04:03,480 Speaker 1: July one. Hockey is pretty much the same thing. Major 75 00:04:03,560 --> 00:04:06,160 Speaker 1: League Soccer has just started up. Baseball is starting up, 76 00:04:06,280 --> 00:04:09,280 Speaker 1: but they're only gonna have a sixty game season. They're 77 00:04:09,320 --> 00:04:13,840 Speaker 1: all just um improvising, you know. So baseball is going 78 00:04:13,920 --> 00:04:16,240 Speaker 1: to have a bigger playoffs to get more teams in 79 00:04:16,240 --> 00:04:18,800 Speaker 1: the playoffs. They're all just trying to figure it out. 80 00:04:18,880 --> 00:04:21,560 Speaker 1: I mean, basketball is going to have pretty much ten 81 00:04:21,880 --> 00:04:23,960 Speaker 1: regular season games and then they're gonna go straight to 82 00:04:24,000 --> 00:04:27,960 Speaker 1: the playoffs. In a way, these are seasons that should 83 00:04:27,960 --> 00:04:33,640 Speaker 1: have asterisks because you know, whatever numbers or figures, they're 84 00:04:33,680 --> 00:04:40,360 Speaker 1: not truly representative of what a season UH is and UM, 85 00:04:40,440 --> 00:04:44,080 Speaker 1: I think the real question to me is how are 86 00:04:44,120 --> 00:04:46,000 Speaker 1: the fans going to react? Are they going to tune in? 87 00:04:46,040 --> 00:04:47,480 Speaker 1: Are they going to tune out? Are they going to 88 00:04:47,560 --> 00:04:50,280 Speaker 1: cut the chord? We don't know. We just don't know. 89 00:04:51,160 --> 00:04:53,400 Speaker 1: So let's go at the college football because again you're 90 00:04:53,400 --> 00:04:57,120 Speaker 1: in Florida SEC territory. I mean, that is as big 91 00:04:57,160 --> 00:04:59,520 Speaker 1: as pro football is in you know, a lot of 92 00:04:59,520 --> 00:05:01,760 Speaker 1: the country. If you go to some of these southern 93 00:05:01,760 --> 00:05:04,680 Speaker 1: and mid Midwestern parts of the country, college football is 94 00:05:04,760 --> 00:05:07,080 Speaker 1: just a huge I'm thinking about the Big Ten, the SEC, 95 00:05:07,920 --> 00:05:10,440 Speaker 1: the Big Ten is talking about playing just conference games. 96 00:05:10,920 --> 00:05:13,080 Speaker 1: Is there a are you looking for one of these 97 00:05:13,120 --> 00:05:15,960 Speaker 1: big power conferences to kind of just say listen, guys, 98 00:05:16,000 --> 00:05:17,760 Speaker 1: it's not gonna it's not gonna work. We've already had 99 00:05:17,760 --> 00:05:20,000 Speaker 1: the IVY League and some other Division one Double A 100 00:05:20,360 --> 00:05:22,760 Speaker 1: conferences protact. But are you expecting a big power five 101 00:05:22,800 --> 00:05:25,919 Speaker 1: conference the kind of be the first I am, and 102 00:05:26,000 --> 00:05:28,960 Speaker 1: it'll be the Big Ten. The Big Ten they got 103 00:05:28,960 --> 00:05:34,280 Speaker 1: a new commissioner. He doesn't wanna UM, screw up. And 104 00:05:34,360 --> 00:05:36,719 Speaker 1: he's already said even in the press release where they 105 00:05:36,720 --> 00:05:39,200 Speaker 1: said they were going to go only conference games, he 106 00:05:39,320 --> 00:05:42,520 Speaker 1: basically said, you know, if we play you know, so 107 00:05:42,560 --> 00:05:44,480 Speaker 1: he's already hedging. I mean, I think it'll be the 108 00:05:44,520 --> 00:05:46,359 Speaker 1: Big ten. It's certainly not going to be the SEC 109 00:05:47,680 --> 00:05:49,440 Speaker 1: that will be the last. That will be the last one. 110 00:05:49,480 --> 00:05:53,760 Speaker 1: I mean in Alabama. Uh, you know, Alabama football is religion. 111 00:05:55,839 --> 00:05:57,520 Speaker 1: You want to follow Pole because that was a little 112 00:05:57,520 --> 00:05:59,440 Speaker 1: bit double Dutch to me. No, I was just you know, 113 00:06:00,000 --> 00:06:01,520 Speaker 1: how about some of these you know, we're starting to 114 00:06:01,560 --> 00:06:03,159 Speaker 1: see some of that. You know, I'm looking at golf. 115 00:06:03,200 --> 00:06:04,960 Speaker 1: They were one of the ones that first came back, 116 00:06:05,000 --> 00:06:07,520 Speaker 1: and the ratings are good and it seems to be 117 00:06:07,560 --> 00:06:12,039 Speaker 1: working for golf. Is that something that you think can continue? Yes, 118 00:06:12,160 --> 00:06:15,840 Speaker 1: Golf and tennis are the two sports that that you 119 00:06:15,839 --> 00:06:20,800 Speaker 1: could play and socially distanced, right. Uh. And if you 120 00:06:20,839 --> 00:06:24,280 Speaker 1: watch the golf golf tournaments, I mean they're you know, 121 00:06:24,400 --> 00:06:26,600 Speaker 1: they're they're keeping their I mean they always did, but 122 00:06:26,640 --> 00:06:29,080 Speaker 1: they're keeping their distance from each other except for their caddies. 123 00:06:29,600 --> 00:06:32,640 Speaker 1: And there's no there are no there's no people there, 124 00:06:32,680 --> 00:06:35,080 Speaker 1: there are no fans there, and it's purely a television 125 00:06:35,080 --> 00:06:38,160 Speaker 1: event and it really is working just fine. And I 126 00:06:38,200 --> 00:06:40,440 Speaker 1: think you'll find the tennis will will sort of be 127 00:06:40,480 --> 00:06:43,080 Speaker 1: the same way. I'd be surprised if they have to 128 00:06:43,120 --> 00:06:47,600 Speaker 1: cancel the US open Um because again, you know that 129 00:06:47,760 --> 00:06:51,280 Speaker 1: the players around on the other side of the net, 130 00:06:51,800 --> 00:06:54,040 Speaker 1: and as long as they don't you know, handshake or 131 00:06:54,120 --> 00:06:56,640 Speaker 1: hug or whatever, they should be fine. It's it's the 132 00:06:56,760 --> 00:06:59,159 Speaker 1: it's the contact sports where you have a problem. And 133 00:06:59,200 --> 00:07:01,359 Speaker 1: it's all about the NFL. Let's talk about you know, 134 00:07:01,360 --> 00:07:03,640 Speaker 1: the elephant in the room. Are you expecting Roger Goodell 135 00:07:03,720 --> 00:07:06,240 Speaker 1: to just kind of play it by ear? Is he 136 00:07:06,320 --> 00:07:08,120 Speaker 1: gonna try to take a bold statement We're going or 137 00:07:08,120 --> 00:07:11,120 Speaker 1: we're not going. No, he's got they have to play 138 00:07:11,120 --> 00:07:13,440 Speaker 1: it by ears. They really don't have any choice. They 139 00:07:13,520 --> 00:07:16,840 Speaker 1: desperately want to play. But you know, the networks, I mean, 140 00:07:17,160 --> 00:07:20,680 Speaker 1: I mean, it's hard to overstate how important professional football 141 00:07:20,840 --> 00:07:24,040 Speaker 1: is uh to the television networks. Honestly, it's it's the 142 00:07:24,080 --> 00:07:27,760 Speaker 1: only thing that keeping cord cutting from from being even 143 00:07:27,800 --> 00:07:31,640 Speaker 1: more widespread than it already is. And so there's enormous 144 00:07:31,680 --> 00:07:35,240 Speaker 1: pressure to play these games. Um, but you know, they're 145 00:07:35,240 --> 00:07:37,640 Speaker 1: all a little nervous because they don't want to wake 146 00:07:37,760 --> 00:07:40,400 Speaker 1: up tomorrow and say, oh, twenty New York Jets have 147 00:07:40,560 --> 00:07:44,120 Speaker 1: are COVID positive. You know, one or two they'll they'll 148 00:07:44,240 --> 00:07:46,920 Speaker 1: they'll blow through it, but twenty no, they won't. So 149 00:07:47,560 --> 00:07:50,600 Speaker 1: basically they've got their fingers crossed. Yeah, it's interesting. We 150 00:07:50,640 --> 00:07:51,880 Speaker 1: have to see how this is all going to come 151 00:07:51,920 --> 00:07:53,360 Speaker 1: to a head really over the next several weeks for 152 00:07:53,360 --> 00:07:56,080 Speaker 1: a lot of these big big leagues thinking college football, 153 00:07:56,080 --> 00:07:58,559 Speaker 1: profit ball, and lots of other things. Jonas Sarah Calm 154 00:07:58,600 --> 00:08:01,040 Speaker 1: this for Bloomberg Opinion. Thanks someone for joining us on 155 00:08:01,080 --> 00:08:05,160 Speaker 1: the phone from South Florida. We will pay attention to 156 00:08:05,160 --> 00:08:07,400 Speaker 1: this because, as Joe was just mentioning, it's a it's 157 00:08:07,440 --> 00:08:10,400 Speaker 1: big businesses to the schools for the college level and 158 00:08:10,440 --> 00:08:13,160 Speaker 1: on the pros, but it's also big, big business for 159 00:08:13,680 --> 00:08:16,440 Speaker 1: the broadcast and cable networks that really rely upon sports 160 00:08:16,440 --> 00:08:22,600 Speaker 1: programming and the advertising it brings in. So this market 161 00:08:22,680 --> 00:08:26,840 Speaker 1: has a lot of investment managers and investors scratching their heads. 162 00:08:26,960 --> 00:08:30,040 Speaker 1: Let's examine some of the reasons behind the rise and 163 00:08:30,200 --> 00:08:32,520 Speaker 1: rise and rise of equities with Stephen Dover, now head 164 00:08:32,520 --> 00:08:36,640 Speaker 1: of Equities at Franklin Templeton two eight billion dollars in 165 00:08:36,679 --> 00:08:39,960 Speaker 1: equities under management, early six hundred billion dollars in total 166 00:08:40,000 --> 00:08:44,400 Speaker 1: assets under management. Stephen, welcome, How much does it concern 167 00:08:44,440 --> 00:08:47,439 Speaker 1: you that of the market cap of the SMP five 168 00:08:47,520 --> 00:08:52,679 Speaker 1: hundred is basically five companies these days? Well, the concentration 169 00:08:52,760 --> 00:08:56,120 Speaker 1: in those companies is absolutely amazing, and they account for 170 00:08:56,200 --> 00:09:01,640 Speaker 1: about of the total UM return on the market. In fact, 171 00:09:01,640 --> 00:09:05,400 Speaker 1: it's interesting if you were to take those companies out, 172 00:09:06,040 --> 00:09:08,360 Speaker 1: UH and compare the return on the US market to 173 00:09:08,400 --> 00:09:11,080 Speaker 1: the overseas markets, you find out that they're about the same, 174 00:09:11,760 --> 00:09:14,640 Speaker 1: which which means the difference between the US markets and 175 00:09:14,720 --> 00:09:18,160 Speaker 1: overseas markets is all about those five companies. So um, 176 00:09:18,200 --> 00:09:21,800 Speaker 1: the spread of and the concentration in the market is 177 00:09:21,840 --> 00:09:27,160 Speaker 1: the greatest that it's been since uh, since roughly UM 178 00:09:27,520 --> 00:09:31,199 Speaker 1: and UM. So yes, there's a concern about that concentration 179 00:09:31,240 --> 00:09:34,680 Speaker 1: in the market. How about speaking of concerns, and there's 180 00:09:34,679 --> 00:09:38,400 Speaker 1: plenty to go through um uh, Stephen, how about China 181 00:09:38,480 --> 00:09:40,000 Speaker 1: here it seems like just in the past couple of 182 00:09:40,040 --> 00:09:43,400 Speaker 1: days the tensions have ratcheted up even one more notch. 183 00:09:43,440 --> 00:09:45,600 Speaker 1: How much of that is a concern for you, guys? 184 00:09:45,640 --> 00:09:48,720 Speaker 1: I know you guys are global investors at Franklin Templeton. 185 00:09:48,720 --> 00:09:52,120 Speaker 1: How do you think about that? Yeah, thank you. I've 186 00:09:52,120 --> 00:09:56,240 Speaker 1: been a long term China watcher, been to China many 187 00:09:56,280 --> 00:10:00,000 Speaker 1: many times since the way back in two so UM 188 00:10:00,280 --> 00:10:02,360 Speaker 1: kind of look at it from a from a local 189 00:10:02,400 --> 00:10:04,679 Speaker 1: perspective and also just to let you know, we also 190 00:10:05,120 --> 00:10:11,920 Speaker 1: manage money locally for Chinese investors. I think that UM, clearly, 191 00:10:12,000 --> 00:10:16,320 Speaker 1: the West is very concerned about China. There's much less 192 00:10:16,320 --> 00:10:19,199 Speaker 1: trust about China, and if you're to look at the headlines, 193 00:10:19,360 --> 00:10:23,200 Speaker 1: perhaps you would avoid investing in China. I would note, 194 00:10:23,240 --> 00:10:25,400 Speaker 1: and this is particularly I think important because I talked 195 00:10:25,440 --> 00:10:28,880 Speaker 1: to a lot of foreign investors, that the issues between 196 00:10:29,000 --> 00:10:32,280 Speaker 1: China and excuse me, between the United States and China 197 00:10:32,679 --> 00:10:36,439 Speaker 1: is not just this administration, a new administration, but also 198 00:10:36,440 --> 00:10:39,920 Speaker 1: it's a bipartisan issue. UM. In fact, it's the Western issue, 199 00:10:40,080 --> 00:10:44,240 Speaker 1: including Europe. All that said, china a share market is 200 00:10:44,360 --> 00:10:47,240 Speaker 1: up over thirty fifth March, is one of the best 201 00:10:47,280 --> 00:10:51,959 Speaker 1: performing markets. China has cut its trade dependence nearly in 202 00:10:52,040 --> 00:10:55,360 Speaker 1: half over the last three three or four years, and 203 00:10:55,520 --> 00:10:59,080 Speaker 1: China is moving from a trade dependent economy to a 204 00:10:59,160 --> 00:11:03,920 Speaker 1: consumer dependent economy. So while I have concerns. I think 205 00:11:04,040 --> 00:11:08,960 Speaker 1: investors should continue to look at China as an investment opportunity. 206 00:11:08,960 --> 00:11:12,559 Speaker 1: There's especially a lot of good technology opportunities in China. 207 00:11:12,800 --> 00:11:15,439 Speaker 1: That said, I think one of the biggest changes we're 208 00:11:15,440 --> 00:11:17,920 Speaker 1: going to see in the United States is a change 209 00:11:17,920 --> 00:11:20,960 Speaker 1: in the supply chain and a movement back from some 210 00:11:21,040 --> 00:11:23,839 Speaker 1: of these emerging markets to the US. What that will 211 00:11:23,880 --> 00:11:28,000 Speaker 1: do is change our economy. We're very dependent on consumer spending. 212 00:11:28,000 --> 00:11:30,719 Speaker 1: It's about seventy of our economy, and we may be 213 00:11:30,880 --> 00:11:34,000 Speaker 1: spending a lot more on capital spending as we change 214 00:11:34,040 --> 00:11:36,360 Speaker 1: that supply chain. That will be positive for the US, 215 00:11:36,440 --> 00:11:40,640 Speaker 1: particularly the Midwest in the central part of America. So 216 00:11:40,840 --> 00:11:44,280 Speaker 1: won't that then change the outlook for investing in China? 217 00:11:44,280 --> 00:11:48,320 Speaker 1: Steven If some of this escalates and there isn't, you know, 218 00:11:48,559 --> 00:11:52,360 Speaker 1: a rollback of some of the tension, why would it 219 00:11:52,440 --> 00:11:58,760 Speaker 1: be so safe to invest in China for US investors? Well, 220 00:11:58,760 --> 00:12:03,640 Speaker 1: I think US investors have to look at China very carefully. 221 00:12:03,679 --> 00:12:05,520 Speaker 1: I think it's definitely a place where you have to 222 00:12:05,559 --> 00:12:10,000 Speaker 1: look at corporate governance because the government of China has 223 00:12:10,040 --> 00:12:12,680 Speaker 1: a lot of influence on all the companies. I think 224 00:12:12,679 --> 00:12:15,240 Speaker 1: we're probably likely to live in a world, especially on 225 00:12:15,280 --> 00:12:18,800 Speaker 1: the technology side, where there's two different systems. There's the 226 00:12:18,840 --> 00:12:22,360 Speaker 1: Western slash American system and the Chinese system, which will 227 00:12:22,400 --> 00:12:26,960 Speaker 1: private primarily dominate within the emerging markets. Um, but there 228 00:12:26,960 --> 00:12:30,000 Speaker 1: are that China is going to continue to grow, although 229 00:12:30,040 --> 00:12:33,120 Speaker 1: not at the speed that it was growing before. It's 230 00:12:33,160 --> 00:12:35,840 Speaker 1: going to be a higher quality growth. And I think 231 00:12:35,920 --> 00:12:39,440 Speaker 1: that there are still a lot of companies in China 232 00:12:39,520 --> 00:12:43,000 Speaker 1: and in the emerging markets that will continue to have opportunity, 233 00:12:43,320 --> 00:12:47,000 Speaker 1: particularly relative to the US companies, which, as I mentioned before, 234 00:12:47,040 --> 00:12:50,840 Speaker 1: I think are probably a bit ahead of themselves. So, Steven, 235 00:12:50,880 --> 00:12:52,440 Speaker 1: I just want to get your thoughts here because the 236 00:12:52,840 --> 00:12:57,920 Speaker 1: on the fiscal stimulus that's being currently debated in Congress. Um, 237 00:12:58,000 --> 00:13:01,600 Speaker 1: how important is it that we get something done like now, 238 00:13:01,760 --> 00:13:03,839 Speaker 1: like the next you know, before the recess. I mean, 239 00:13:03,840 --> 00:13:05,240 Speaker 1: how do you are you guys are Franklin Temple and 240 00:13:05,320 --> 00:13:07,959 Speaker 1: then thinking about the need for fiscal stimulus to keep 241 00:13:07,960 --> 00:13:11,319 Speaker 1: this economy uh going at at at the current rate 242 00:13:11,360 --> 00:13:15,800 Speaker 1: at least. I think that the market expects that the 243 00:13:15,880 --> 00:13:18,880 Speaker 1: stimulus will be passed in some way. If it's not passed, 244 00:13:18,920 --> 00:13:22,080 Speaker 1: I think the market will will be disappointed. Um, we're 245 00:13:22,200 --> 00:13:26,079 Speaker 1: in a very interesting time. It's likely that the trials 246 00:13:26,120 --> 00:13:29,000 Speaker 1: of some of the vaccines will come out in September 247 00:13:29,280 --> 00:13:33,240 Speaker 1: or October. Nobody knows because the only way to know 248 00:13:33,280 --> 00:13:35,120 Speaker 1: whether the vaccines are going to work is to do 249 00:13:35,200 --> 00:13:38,480 Speaker 1: the trials. But if if, if, in the likelihood that 250 00:13:38,520 --> 00:13:42,160 Speaker 1: those trials are positive, I think the market would absolutely 251 00:13:42,160 --> 00:13:46,160 Speaker 1: boom because there's so much stimulus. But that's not likely. 252 00:13:46,240 --> 00:13:49,480 Speaker 1: It's more likely that there'll be small steps and and 253 00:13:49,559 --> 00:13:53,679 Speaker 1: more therapeutics. So we have this great uncertainty and at 254 00:13:53,720 --> 00:13:57,200 Speaker 1: the same time we have this massive stimulus. So if 255 00:13:58,120 --> 00:14:02,760 Speaker 1: for whatever reason the virus takes a downward downward mode 256 00:14:02,880 --> 00:14:05,480 Speaker 1: because we have so much stimulus, the market is likely 257 00:14:05,520 --> 00:14:11,000 Speaker 1: to be uh undervalued and and likely to boom. On 258 00:14:11,040 --> 00:14:13,000 Speaker 1: the other hand, as you mentioned, if we don't have 259 00:14:13,040 --> 00:14:16,200 Speaker 1: the stimulus and we have this this wave of the 260 00:14:16,360 --> 00:14:20,240 Speaker 1: virus continuing, yeah, I think the market will struggle. So um, 261 00:14:20,400 --> 00:14:23,280 Speaker 1: the short answer to your question is, yes, the stimulus 262 00:14:23,280 --> 00:14:26,160 Speaker 1: from the government's important, but we might find out in 263 00:14:26,280 --> 00:14:31,160 Speaker 1: a couple of months over stimulus potentially all right, we'll see. 264 00:14:31,160 --> 00:14:33,120 Speaker 1: We'll find out, certainly in the next week or so, hopefully. 265 00:14:33,120 --> 00:14:36,280 Speaker 1: Stephen Doverhead of Equities for Franklin Templeton joining us on 266 00:14:36,280 --> 00:14:39,120 Speaker 1: the phone from San Mateo, California, giving us his thoughts 267 00:14:39,120 --> 00:14:43,320 Speaker 1: about the market. China very interesting obviously, trade tensions and 268 00:14:43,760 --> 00:14:46,760 Speaker 1: tensions across the board between the US and China are rising. 269 00:14:46,800 --> 00:14:49,360 Speaker 1: It doesn't seem to be abating any time soon. Off 270 00:14:49,400 --> 00:14:51,720 Speaker 1: to see how the market discounts. That. This is Bloomberg 271 00:14:53,680 --> 00:14:58,640 Speaker 1: headlines crossing the Bloomberg terminal here. Apparently uh Mr Fauci 272 00:14:58,800 --> 00:15:02,000 Speaker 1: was speaking to the Washington Post. He says the US 273 00:15:02,000 --> 00:15:05,840 Speaker 1: shutdown was about fifty in reality, whereas the Europe was 274 00:15:05,880 --> 00:15:09,680 Speaker 1: about nine percent. And he's also saying that some southern 275 00:15:09,720 --> 00:15:13,120 Speaker 1: states need to step back on reopening, so some cautious 276 00:15:13,120 --> 00:15:16,800 Speaker 1: commentary there. We'll see kind of how those states react 277 00:15:17,040 --> 00:15:20,120 Speaker 1: going forward. One of the industries that's really really been 278 00:15:20,240 --> 00:15:23,680 Speaker 1: impacted is the entertainment industry. It's all but shut down 279 00:15:23,680 --> 00:15:27,760 Speaker 1: in production. Movie theaters have been closed. It's just been 280 00:15:27,840 --> 00:15:32,080 Speaker 1: extraordinary here. People are staying home, they're streaming movies, and 281 00:15:32,120 --> 00:15:35,560 Speaker 1: even some studios are bypassing the release of UH movies 282 00:15:35,560 --> 00:15:38,960 Speaker 1: into studios going directly the streaming services. So really the 283 00:15:39,040 --> 00:15:43,480 Speaker 1: entertainment industry has been extraordinarily disrupted by this coronavirus and 284 00:15:43,520 --> 00:15:46,000 Speaker 1: were very fortunate to have someone can really shed some 285 00:15:46,040 --> 00:15:49,240 Speaker 1: color on this for us. Jane Rosenthal, co founder, chief 286 00:15:49,240 --> 00:15:52,600 Speaker 1: executive officer and executive chair of the Tribeca Film Festival, 287 00:15:52,680 --> 00:15:55,120 Speaker 1: joins us. Jane, thanks so much for joining us here. 288 00:15:55,240 --> 00:15:57,680 Speaker 1: Let's just start with the production here. It's all but 289 00:15:57,760 --> 00:16:02,680 Speaker 1: shut down of movies and TVs globally, hasn't it. It has? Uh. 290 00:16:02,960 --> 00:16:07,040 Speaker 1: You know, we're always about safety first, So even in 291 00:16:07,200 --> 00:16:10,080 Speaker 1: normal times, when you're on a film set, you always 292 00:16:10,080 --> 00:16:13,880 Speaker 1: want to ensure that your your actors, your crew are safe. 293 00:16:14,000 --> 00:16:18,480 Speaker 1: And it's no different in these times, although it is 294 00:16:19,120 --> 00:16:27,040 Speaker 1: incredibly uh sad the complete economic destruction it has done 295 00:16:27,640 --> 00:16:30,840 Speaker 1: for so many people in our industry. Well, the type 296 00:16:31,000 --> 00:16:34,440 Speaker 1: of film festival, one of the world's greatest film festivals, 297 00:16:34,440 --> 00:16:36,440 Speaker 1: sounded back in two thousand two, so this year would 298 00:16:36,440 --> 00:16:39,480 Speaker 1: have been and is the eighteenth year. And you didn't 299 00:16:39,520 --> 00:16:42,800 Speaker 1: let coronavirus stop you. You found some very interesting ways 300 00:16:42,840 --> 00:16:46,920 Speaker 1: of getting around showing movies. For example, tell us what 301 00:16:47,000 --> 00:16:50,400 Speaker 1: you did in order to be able to show movies 302 00:16:50,440 --> 00:16:53,200 Speaker 1: to people? Well you. At our core, we aim to 303 00:16:53,240 --> 00:16:55,800 Speaker 1: bring people together through the arts and to send a 304 00:16:55,840 --> 00:17:00,880 Speaker 1: signal of unity. And resiliency, especially during these challenging times. 305 00:17:01,000 --> 00:17:04,520 Speaker 1: REBECA was started right after UH nine eleven to bring 306 00:17:04,600 --> 00:17:07,199 Speaker 1: people back together. One of the things we did at 307 00:17:07,200 --> 00:17:09,920 Speaker 1: the time was we did these drive ins, which were 308 00:17:09,920 --> 00:17:12,920 Speaker 1: actually sit ins on the West Side Highway because you 309 00:17:12,920 --> 00:17:15,640 Speaker 1: couldn't get enough people downtown. We didn't have large enough 310 00:17:15,720 --> 00:17:18,320 Speaker 1: venues at the time. Now we came up with the 311 00:17:18,400 --> 00:17:23,160 Speaker 1: idea of doing drive ins nationally so people could be 312 00:17:23,240 --> 00:17:27,560 Speaker 1: in their cars, it could be socially distanced with families 313 00:17:27,600 --> 00:17:32,400 Speaker 1: that they have been quarantined with and watch a movie. Um. 314 00:17:32,840 --> 00:17:37,040 Speaker 1: There's nothing like the magic of the movie going experiences, 315 00:17:37,119 --> 00:17:41,240 Speaker 1: and drive ins have certainly been a part of our 316 00:17:42,080 --> 00:17:46,920 Speaker 1: movie going history. Jane, what do you think the this 317 00:17:47,200 --> 00:17:49,879 Speaker 1: lock in, this COVID induced lock in, is going to 318 00:17:49,920 --> 00:17:53,639 Speaker 1: do to consumer behavior as it relates to that movie 319 00:17:53,680 --> 00:17:57,560 Speaker 1: going experience? Attendance in the US for theatrical has been 320 00:17:57,680 --> 00:18:01,040 Speaker 1: rubbing a flatish over the last decade or so. Um, 321 00:18:01,280 --> 00:18:03,800 Speaker 1: do you and now theaters have been shut for We're 322 00:18:03,800 --> 00:18:05,280 Speaker 1: not sure how long they're going to be shut it 323 00:18:05,320 --> 00:18:08,159 Speaker 1: certainly for several months here. Do you think that's going 324 00:18:08,240 --> 00:18:10,919 Speaker 1: to impact consumer behaviors that relates to go into movies. 325 00:18:11,720 --> 00:18:15,960 Speaker 1: Consumer behavior has been impacted about going to the movies 326 00:18:16,680 --> 00:18:21,480 Speaker 1: UH for several years. Now, movie goers have more choices, 327 00:18:21,560 --> 00:18:24,439 Speaker 1: the audience have more choices than ever before. Do you 328 00:18:24,480 --> 00:18:26,880 Speaker 1: want to stay home and watch it on your computer? 329 00:18:27,040 --> 00:18:29,080 Speaker 1: Do you want to watch it on a small screen? 330 00:18:29,240 --> 00:18:31,280 Speaker 1: Do you want to play a game? Where do you 331 00:18:31,320 --> 00:18:33,760 Speaker 1: want to? You know, how do you want to do something? 332 00:18:33,800 --> 00:18:36,960 Speaker 1: So you've had those choices. I think that as just 333 00:18:37,000 --> 00:18:39,639 Speaker 1: as human beings, we want to gather, we want to 334 00:18:39,680 --> 00:18:42,000 Speaker 1: be together, we want to laugh together, we want to 335 00:18:42,000 --> 00:18:45,400 Speaker 1: listen to music together. So that will come back, There's 336 00:18:45,440 --> 00:18:48,399 Speaker 1: no question it will come back when we finally have 337 00:18:48,640 --> 00:18:52,399 Speaker 1: the rigorous science and people know that they're safe and 338 00:18:52,440 --> 00:18:56,359 Speaker 1: they can um and we can be together. There is 339 00:18:56,480 --> 00:19:00,439 Speaker 1: nothing like being in a movie theater and laughing, or 340 00:19:00,520 --> 00:19:05,760 Speaker 1: being at a great concert and singing together, or for 341 00:19:05,960 --> 00:19:09,439 Speaker 1: that matter, you know, at a sporting event and sharing 342 00:19:09,440 --> 00:19:12,280 Speaker 1: your favorite team. So that's what that will come back. 343 00:19:12,359 --> 00:19:15,560 Speaker 1: We just have to, you know, wait for you know, 344 00:19:15,800 --> 00:19:19,639 Speaker 1: the proper science of vaccines, the right protocols, and one 345 00:19:19,680 --> 00:19:21,800 Speaker 1: of the things you're working on, in fact, is to 346 00:19:21,840 --> 00:19:24,000 Speaker 1: bring Walmart on board so you can have a hundred 347 00:19:24,040 --> 00:19:27,280 Speaker 1: and sixty Walmart locations act as drive ins, which would 348 00:19:27,280 --> 00:19:29,359 Speaker 1: really open up this kind of thing to a lot 349 00:19:29,440 --> 00:19:32,720 Speaker 1: more people. But Jane talked to us about this year's festival. 350 00:19:32,920 --> 00:19:35,720 Speaker 1: I've noticed, you know a lot of free content online, 351 00:19:35,920 --> 00:19:38,520 Speaker 1: and you were no different. You had a whole week 352 00:19:38,600 --> 00:19:41,520 Speaker 1: of a free we are one global film festival where 353 00:19:41,520 --> 00:19:44,720 Speaker 1: people could access on YouTube all of the movies for free. 354 00:19:45,040 --> 00:19:47,760 Speaker 1: It was actually ten days worth before you got to 355 00:19:47,800 --> 00:19:49,800 Speaker 1: the drive in portion of the festival, which lasts for 356 00:19:49,880 --> 00:19:53,200 Speaker 1: another few days. Next year, you have all these people 357 00:19:53,200 --> 00:19:56,080 Speaker 1: that now know about the Tribeca Film Festival. But will 358 00:19:56,200 --> 00:19:58,720 Speaker 1: you have really depleted your resources or will you be 359 00:19:58,760 --> 00:20:02,240 Speaker 1: able to continue to to raise money to bring Tribeca 360 00:20:02,320 --> 00:20:06,119 Speaker 1: to maybe an even larger audience after this? I hope? 361 00:20:06,160 --> 00:20:10,440 Speaker 1: So Um, You know, certainly will Um will announce our 362 00:20:10,640 --> 00:20:14,159 Speaker 1: dates all. You know, when you look at whether it 363 00:20:14,240 --> 00:20:18,840 Speaker 1: has been the Academy Awards, all the various festivals, the 364 00:20:19,000 --> 00:20:22,720 Speaker 1: dates have been, all dates have been pushed around, and 365 00:20:22,880 --> 00:20:25,879 Speaker 1: how much is actually going to be done in person 366 00:20:26,080 --> 00:20:29,280 Speaker 1: versus virtually you look at what they're doing at the 367 00:20:29,320 --> 00:20:33,760 Speaker 1: Toronto Film Festival. So Um, again, it's going to be 368 00:20:34,280 --> 00:20:37,520 Speaker 1: until we know we can all gather and be safe. 369 00:20:37,680 --> 00:20:40,639 Speaker 1: It's going to be it's going to be challenging. H 370 00:20:40,760 --> 00:20:44,960 Speaker 1: Plus what new movies are in the pipeline that will 371 00:20:45,000 --> 00:20:47,840 Speaker 1: be able to will be able to show. Uh. In 372 00:20:47,920 --> 00:20:51,640 Speaker 1: terms of Tribeca, we're excited about it will be our 373 00:20:51,680 --> 00:20:58,360 Speaker 1: twentieth anniversary um next next year, and we're excited about 374 00:20:58,720 --> 00:21:03,479 Speaker 1: new ways that we can do things uh outdoors, Uh 375 00:21:03,800 --> 00:21:06,400 Speaker 1: not just drive ins. We've got some other things up 376 00:21:06,400 --> 00:21:10,359 Speaker 1: our up our sleeves, and uh, you know, I feel 377 00:21:10,400 --> 00:21:15,280 Speaker 1: at this time, as as as as sad and as 378 00:21:16,480 --> 00:21:20,200 Speaker 1: difficult and the psychic impact it's had on all of us, 379 00:21:20,800 --> 00:21:24,040 Speaker 1: I feel that it's also becoming some of the most 380 00:21:24,320 --> 00:21:29,160 Speaker 1: you'll have the most creative time from artists coming up, 381 00:21:30,160 --> 00:21:35,120 Speaker 1: because we've been forced to to think differently, and it's 382 00:21:35,160 --> 00:21:40,600 Speaker 1: a time that will of great innovation and great change. Um, 383 00:21:40,960 --> 00:21:46,640 Speaker 1: you know, it's it's also the most difficult and extraordinary 384 00:21:46,720 --> 00:21:52,320 Speaker 1: time in our lifetime. But exactly well, Jane, for those 385 00:21:52,359 --> 00:21:54,160 Speaker 1: who have cars or who want to rent a car 386 00:21:54,240 --> 00:21:56,399 Speaker 1: for the evening, there is still time to go and 387 00:21:56,440 --> 00:21:58,919 Speaker 1: see some of the wonderful movies that you're putting on, 388 00:21:59,000 --> 00:22:02,160 Speaker 1: some old movies, some new movies and check those out 389 00:22:02,400 --> 00:22:06,560 Speaker 1: on the website Tribeca Film dot com or thanks so 390 00:22:06,680 --> 00:22:09,240 Speaker 1: much to Jane Rosenhal, co founder and CEO of the 391 00:22:09,280 --> 00:22:12,159 Speaker 1: Tribeca Film Festival on the ghost since two thousand two, 392 00:22:12,560 --> 00:22:14,639 Speaker 1: and of course, dealing with the coronavirus in the year 393 00:22:14,840 --> 00:22:18,560 Speaker 1: twenty not an easy one, but they're keeping it going, 394 00:22:18,680 --> 00:22:22,400 Speaker 1: as so many arts and culture organizations are doing pol 395 00:22:22,480 --> 00:22:25,000 Speaker 1: It's really phenomenal to see all of the emails come 396 00:22:25,000 --> 00:22:28,000 Speaker 1: in and you know, offering free content and hopefully it 397 00:22:28,000 --> 00:22:29,920 Speaker 1: will it will pay off. Hopefully people who use the 398 00:22:29,960 --> 00:22:32,760 Speaker 1: free content will come back next time it's paid content 399 00:22:32,920 --> 00:22:35,280 Speaker 1: and pay for it. Yeah, exactly. And the arts have 400 00:22:35,400 --> 00:22:38,160 Speaker 1: really been disrupted here, but hopefully most of them can 401 00:22:38,200 --> 00:22:43,719 Speaker 1: hang on well. Tensions between the US and China continue 402 00:22:43,800 --> 00:22:47,560 Speaker 1: to escalate. Early this week, of course, the US closed 403 00:22:47,560 --> 00:22:52,239 Speaker 1: a Chinese consulate in Houston, Texas, trying to retaliated just 404 00:22:52,440 --> 00:22:55,679 Speaker 1: yesterday by closing a US embassy in a c Chunk 405 00:22:55,760 --> 00:22:59,520 Speaker 1: dough so in retaliation for that. So the question is 406 00:23:00,040 --> 00:23:02,960 Speaker 1: where do we go from here? What's causing this rising tensions? 407 00:23:03,000 --> 00:23:05,040 Speaker 1: And again, where do we go from here? Andy Brown, 408 00:23:05,560 --> 00:23:08,879 Speaker 1: editorial director for Bloomberg New Economy Joints, is on the 409 00:23:08,920 --> 00:23:12,720 Speaker 1: phone Andy, give us some color here, since what is 410 00:23:12,760 --> 00:23:16,720 Speaker 1: really driving these rising tensions between the US and China. 411 00:23:16,720 --> 00:23:18,800 Speaker 1: It seems like they've really ratcheted up just in the 412 00:23:18,880 --> 00:23:23,040 Speaker 1: last couple of years and certainly the last several months. Yeah, look, 413 00:23:23,040 --> 00:23:24,840 Speaker 1: I think I think there are a couple of things 414 00:23:24,880 --> 00:23:28,320 Speaker 1: going on here. I mean, first of all, and most basically, 415 00:23:28,720 --> 00:23:33,480 Speaker 1: this is Trump and his White House lashing out at China, UM, 416 00:23:33,520 --> 00:23:36,879 Speaker 1: because it's a vote when a beating up on China 417 00:23:37,200 --> 00:23:40,600 Speaker 1: is perceived as being the the the the easiest path 418 00:23:40,760 --> 00:23:44,360 Speaker 1: dual re election at a time when it's become increasingly 419 00:23:44,400 --> 00:23:50,160 Speaker 1: apparent that um, you know, Trump is is heading towards defeat. 420 00:23:50,280 --> 00:23:53,520 Speaker 1: So that's the first thing. The second thing is it's 421 00:23:53,560 --> 00:23:58,399 Speaker 1: a distraction from the pandemic. And and again you know 422 00:23:58,560 --> 00:24:03,680 Speaker 1: it's Trump himself is now acknowledged that this fight against 423 00:24:03,680 --> 00:24:07,800 Speaker 1: COVID nineteen is going really badly UM and could cost 424 00:24:07,920 --> 00:24:11,399 Speaker 1: him votes. It could even cost him the election. So 425 00:24:11,480 --> 00:24:14,159 Speaker 1: that's the second thing. Then, more broadly, I think what 426 00:24:14,240 --> 00:24:18,359 Speaker 1: this is demonstrating is that China policy in the White 427 00:24:18,400 --> 00:24:22,359 Speaker 1: House has now been captured by Mike Pompeo UM and 428 00:24:22,400 --> 00:24:26,720 Speaker 1: a very small group of anti China hulks, and they're 429 00:24:26,720 --> 00:24:30,639 Speaker 1: pretty much convinced that the US and Chinese economic and 430 00:24:30,680 --> 00:24:36,800 Speaker 1: political systems are incompatible, UM, one free democratic, capitalist, the 431 00:24:36,840 --> 00:24:42,520 Speaker 1: other closed, repressive, increasingly state led, and that a showdown 432 00:24:42,760 --> 00:24:44,840 Speaker 1: is on the way, and it's better to have this 433 00:24:45,000 --> 00:24:50,800 Speaker 1: showdown earlier than later, before China builds up its capabilities 434 00:24:50,920 --> 00:24:54,240 Speaker 1: even further. UM. And then the timetable for this, of 435 00:24:54,280 --> 00:24:57,560 Speaker 1: course is this sense that you know, if they're if 436 00:24:57,600 --> 00:25:00,439 Speaker 1: they're if they're out in November, they to get on 437 00:25:00,520 --> 00:25:03,639 Speaker 1: with this pretty quickly. And I think all of this 438 00:25:04,000 --> 00:25:07,440 Speaker 1: UM is combining to create what what really is now 439 00:25:07,560 --> 00:25:13,560 Speaker 1: looking like a deep crisis, a real rift, a historic 440 00:25:13,800 --> 00:25:17,240 Speaker 1: rift in US China relationships. So what's the strategy here, Andy, 441 00:25:17,280 --> 00:25:20,280 Speaker 1: A tit for tat closing of embassies and consulates until 442 00:25:20,320 --> 00:25:27,159 Speaker 1: they're none left. Yeah, so Houston has closed, UM, chund 443 00:25:27,480 --> 00:25:31,159 Speaker 1: is closing. Uh. This is the latest in a in 444 00:25:31,200 --> 00:25:34,920 Speaker 1: a series of tip fat tat escalations. You'll remember, of course, 445 00:25:34,960 --> 00:25:38,720 Speaker 1: that it began with journalists UM. Then we had tip 446 00:25:38,760 --> 00:25:44,960 Speaker 1: fotat expulsions of academics, of scientists, UM, floating the whole 447 00:25:45,000 --> 00:25:48,960 Speaker 1: series of trial balloons, and with this idea to ban 448 00:25:49,119 --> 00:25:53,440 Speaker 1: all members of the Chinese Communist Party UH from from 449 00:25:53,600 --> 00:25:56,320 Speaker 1: entering the United States. There was even talk which was 450 00:25:56,400 --> 00:26:00,159 Speaker 1: which was shot down, of trying to destabilize the Hong 451 00:26:00,240 --> 00:26:03,720 Speaker 1: Kong dollar peg to the US dollar as punishment for 452 00:26:03,800 --> 00:26:07,520 Speaker 1: the National Security law that Beijing imposed on Hong Kong. 453 00:26:07,960 --> 00:26:10,560 Speaker 1: So it's it's it's the latest in a series of 454 00:26:10,560 --> 00:26:14,720 Speaker 1: of of escalations, and it gives a sense to be'st 455 00:26:14,760 --> 00:26:17,680 Speaker 1: your ability of what you think China would like to see. 456 00:26:17,720 --> 00:26:21,800 Speaker 1: I'm I'm sure China doesn't view this process as a 457 00:26:21,920 --> 00:26:25,639 Speaker 1: positive for them, but I'm not sure kind of what 458 00:26:25,800 --> 00:26:28,720 Speaker 1: their strategy may be here. Do they want to interact 459 00:26:28,720 --> 00:26:30,600 Speaker 1: with the US? Do they want to engage with the U? 460 00:26:30,720 --> 00:26:34,639 Speaker 1: S Um. What do you think they're feeling? Is well, sure, 461 00:26:34,720 --> 00:26:37,680 Speaker 1: I mean, they certainly don't want to see the relationship 462 00:26:37,880 --> 00:26:41,920 Speaker 1: falling upon. They need US investment, they need US technology, 463 00:26:42,040 --> 00:26:47,040 Speaker 1: they need US markets, um, and uh, you know on 464 00:26:47,080 --> 00:26:50,920 Speaker 1: the country though, Uh you know, what's the the the 465 00:26:50,960 --> 00:26:57,800 Speaker 1: impact actually, um of all of this anti Chinese hysteria 466 00:26:57,880 --> 00:27:01,000 Speaker 1: now coming out of the White House is that it's 467 00:27:01,080 --> 00:27:07,160 Speaker 1: actually reinforcing the power and the prestige of the Chinese leadership. 468 00:27:07,680 --> 00:27:12,040 Speaker 1: Even those people in in China who you know, like 469 00:27:12,960 --> 00:27:17,440 Speaker 1: the United States, who know America who studied here? Um, 470 00:27:17,680 --> 00:27:21,200 Speaker 1: you know these people who have gone back to China 471 00:27:21,280 --> 00:27:24,600 Speaker 1: and are struggling to put in place against a lot 472 00:27:24,680 --> 00:27:28,439 Speaker 1: of opposition. Um, you know something that looks like a 473 00:27:28,640 --> 00:27:32,960 Speaker 1: rules based system for China. Even these people are now 474 00:27:33,080 --> 00:27:37,200 Speaker 1: rallying around the flag. Um, they're now supporting the Chinese. 475 00:27:37,440 --> 00:27:42,720 Speaker 1: The Chinese leadership that said, how much does China need 476 00:27:42,760 --> 00:27:45,520 Speaker 1: the United States? How far can China take this before 477 00:27:45,520 --> 00:27:49,080 Speaker 1: it has to take a step back. Well, there's a 478 00:27:49,080 --> 00:27:52,480 Speaker 1: good question. I mean, does China need the US? Um, 479 00:27:52,520 --> 00:27:54,879 Speaker 1: you know, more than the US needs China. China is 480 00:27:54,960 --> 00:28:01,399 Speaker 1: moving now towards the the catchphrase now it's self reliance, 481 00:28:01,480 --> 00:28:07,000 Speaker 1: so on technology, on industry, tech things. China is moving 482 00:28:07,040 --> 00:28:14,920 Speaker 1: towards um, you know, uh, autarchy on the economy and technology. Um. 483 00:28:15,160 --> 00:28:18,280 Speaker 1: The United States, on the other hand, certainly you have 484 00:28:18,480 --> 00:28:23,840 Speaker 1: companies desperately need um, the Chinese market. In many markets, 485 00:28:23,840 --> 00:28:26,800 Speaker 1: the China is the biggest. And yeah, I didn't have China, 486 00:28:27,200 --> 00:28:29,119 Speaker 1: you know, would be out of business. Right now. I'm 487 00:28:29,160 --> 00:28:30,720 Speaker 1: just going to jump in because we are getting a 488 00:28:30,760 --> 00:28:33,840 Speaker 1: headline on this very subject right now. The Chinese researcher 489 00:28:34,080 --> 00:28:38,440 Speaker 1: at the San Francisco Consulate that the US had accused of, 490 00:28:39,200 --> 00:28:42,560 Speaker 1: well maybe doing a list of things, is now in custody. 491 00:28:42,720 --> 00:28:47,520 Speaker 1: The US is speaking to reporters on the China consulate closing, 492 00:28:47,600 --> 00:28:51,000 Speaker 1: and apparently that person who is taking refuge at the 493 00:28:51,000 --> 00:28:54,560 Speaker 1: consulate in San Francisco of China is now in custody. 494 00:28:54,600 --> 00:28:56,880 Speaker 1: So a developing story. Andy, the perfect time to have 495 00:28:56,920 --> 00:28:59,800 Speaker 1: you on. Thank you. That is Andy Brown of the 496 00:28:59,840 --> 00:29:05,400 Speaker 1: New Economy Forum at Bloomberg. Thanks for listening to Bloomberg 497 00:29:05,480 --> 00:29:08,880 Speaker 1: Markets podcast. You can subscribe and listen to interviews at 498 00:29:08,880 --> 00:29:12,479 Speaker 1: Apple Podcasts or whatever a podcast platform you prefer. I'm 499 00:29:12,560 --> 00:29:15,520 Speaker 1: Bonnie Quinn. I'm on Twitter at Bonnie Quinn. And I'm 500 00:29:15,520 --> 00:29:18,640 Speaker 1: Paul Sweeney. I'm on Twitter at pt Sweeney. Before the podcast, 501 00:29:18,680 --> 00:29:21,160 Speaker 1: you can always catch us worldwide at Bloomberg Radio