WEBVTT - Why COVID-19 Vaccinations Run Far Short of ‘Warp Speed’

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<v Speaker 1>This is Bloomberg Business Week. I'm Carol Masser. Every day

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<v Speaker 1>As we think about where we are in this pandemic

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<v Speaker 1>and the vaccines, um, you know, we've moved from the

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<v Speaker 1>science stage. Can the scientists figure this out? And the

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<v Speaker 1>answer has been a resounding yes. Such extraordinary work done

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<v Speaker 1>by many people around the world. Now we're down to

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<v Speaker 1>the supply chain, the manufacturing, the distribution, getting it into

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<v Speaker 1>people's arms. Uh, and that is going to be a

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<v Speaker 1>challenge in and of itself. Top us kind of walk

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<v Speaker 1>through that. We welcome Rich Fitzgerald. He's an executive at

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<v Speaker 1>Allegheny County. He's located in Pittsburgh, Pennsylvania. Rich, thanks so

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<v Speaker 1>much for joining us here. I understand that you re

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<v Speaker 1>eaved the are you participated in the MODERNA phase three trial?

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<v Speaker 1>Tell us a little bit about about that. I did,

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<v Speaker 1>you know? It's kind the executive we we obviously run

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<v Speaker 1>the health department for for the second biggest county here

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<v Speaker 1>in Pennsylvania, where Pittsburgh, Pennsylvania is located in and back

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<v Speaker 1>in the summer, our health department director, you know, kind

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<v Speaker 1>of asked me if I wanted to be part of

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<v Speaker 1>a trial vaccine trial. And I'm not a medical person,

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<v Speaker 1>so I was very very reluctant, as as you can imagine,

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<v Speaker 1>but she kind of convinced me. And I have a

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<v Speaker 1>wife who's a pharmacist, so that kind of helped me

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<v Speaker 1>a little bit too. So I went through all the

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<v Speaker 1>questionnaire do you have allergies, do you have medical you

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<v Speaker 1>know what kind of medication, your age, who you're on,

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<v Speaker 1>and all that kind of stuff. I ended up getting

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<v Speaker 1>the first shot back in September, early September, UM, and

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<v Speaker 1>then four weeks later you're scheduled for the second shot. UM.

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<v Speaker 1>I didn't know they don't tell you if you're getting

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<v Speaker 1>the placebo or the vaccine, so you're in a blinded trial.

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<v Speaker 1>But they did tell me before I got the second shot,

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<v Speaker 1>that I might get these certain symptoms of a bit

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<v Speaker 1>of a fever, a little bit of achiness, you might

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<v Speaker 1>have a headache, etcetera. I ultimately I did get the symptoms.

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<v Speaker 1>They lasted about twelve hours. They were extremely mild. So

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<v Speaker 1>I feel very fortunate. And then I find out I

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<v Speaker 1>guess it was in November that the Maderna trial has

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<v Speaker 1>turned out to be successful, when it was seven percent

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<v Speaker 1>or whatever the percentage was they have given. So I

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<v Speaker 1>feel very fortunate at this point. That's great news. And

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<v Speaker 1>I think one of the big issues is where I'm

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<v Speaker 1>sure you're aware, is convincing people that the vaccine. Vaccine

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<v Speaker 1>is safe, Uh, it's efficient, it works, um, and that

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<v Speaker 1>maybe some people in the past who were not supportive

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<v Speaker 1>of vaccines, who are anti access to use the term uh,

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<v Speaker 1>hopefully we can get those folks taken the vaccine. What

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<v Speaker 1>are you doing in Alleghany County as it relates to

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<v Speaker 1>that issue, Well, we're we're trying to convince exactly what

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<v Speaker 1>you're saying there. There is a certain segment of society

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<v Speaker 1>that that i'll call them anti vaxers for any vaccine.

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<v Speaker 1>But what we're trying to do is use what I'll

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<v Speaker 1>call influencers. So in certain communities, uh, the people that

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<v Speaker 1>they're gonna listen to, they might not necessarily listen to

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<v Speaker 1>myself as county executive or the mayor or some CEO

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<v Speaker 1>of a company, but maybe they'll listen to the minister

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<v Speaker 1>of their church, or maybe they'll listen to, you know,

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<v Speaker 1>one of the sports stars of the of the of

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<v Speaker 1>the local local team, you know that type of thing,

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<v Speaker 1>a teacher that's uh, you know, very well respected. So

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<v Speaker 1>we're trying to use people in the community who are

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<v Speaker 1>again I'll call them influencers, who can convince people that

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<v Speaker 1>this is for your own good. This is the risk

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<v Speaker 1>of not getting the vaccine far far outweighs the risk

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<v Speaker 1>that you might get what a little bit of a

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<v Speaker 1>reaction with a vaccine. So in your county, in Allegany

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<v Speaker 1>County includes Pittsburgh, UM, talk to us about the deployment

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<v Speaker 1>of the vaccine. What do you know about your area,

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<v Speaker 1>your county. Well, I will tell you right now. We're

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<v Speaker 1>frustrated because UM and I was glad to see yesterday

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<v Speaker 1>President elect Biden come out and say, uh that being

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<v Speaker 1>critical of the current administration to say he would invoke

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<v Speaker 1>the Defense Production Act because I am not happy that

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<v Speaker 1>right now it seems much more slowly being administered that

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<v Speaker 1>that we need to do. If we're going to get

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<v Speaker 1>on the other side of this virus and get our

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<v Speaker 1>economy opened up and get people healthy again and allow

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<v Speaker 1>our seniors to visit their grandchildren, we have got to

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<v Speaker 1>get this vaccine distributed quickly. So if we're talking what

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<v Speaker 1>we've seen over the last two weeks, a million vaccines

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<v Speaker 1>of week, it's gonna take seven years to vaccinate this country.

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<v Speaker 1>That is unacceptable. What do you under What is your

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<v Speaker 1>understanding of how the distribution will in fact take place.

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<v Speaker 1>Does it come from the federal government, do you get

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<v Speaker 1>an allocation from the manufacturer? How is it actually going

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<v Speaker 1>to work. We've actually don't know, And I actually talked

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<v Speaker 1>to the governor. It's supposed to go through the states,

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<v Speaker 1>and I talked to the governor earlier today. Governor wolf

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<v Speaker 1>Spence tremendous and he's trying to get as much vaccine

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<v Speaker 1>as he as he can to distribute here in Pennsylvania. UM.

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<v Speaker 1>Some of it is being going directly from the manufacturer

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<v Speaker 1>to the large health care facilities to do the frontline workers,

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<v Speaker 1>and that certainly makes sense. Those are the folks that

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<v Speaker 1>are exposed every day to patients and they do need

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<v Speaker 1>to be protected. The other route, if you will, is

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<v Speaker 1>going through the big pharmaceutical companies to the nursing homes

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<v Speaker 1>that congregate care facilities. Uh and I understand CVS and

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<v Speaker 1>Walgreens and a couple of big ones are doing that directly.

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<v Speaker 1>And then some of it's going to the state departments

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<v Speaker 1>of health directly, so then they will distribute it to

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<v Speaker 1>counties like mine, Alleghany and all the other counties and

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<v Speaker 1>all the other municipalities here in the state. But it

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<v Speaker 1>is it's not very clear right now what the federal

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<v Speaker 1>government is doing. And again I think it needs to

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<v Speaker 1>be ramped up. It needs to be really you know,

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<v Speaker 1>it's got to be priority number one, almost like we've

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<v Speaker 1>done in wars. You know, you think about back to

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<v Speaker 1>World War Two when you know factories were turned into

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<v Speaker 1>you know, for tanks and g and planes, and we

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<v Speaker 1>need to do the same thing. We are at war

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<v Speaker 1>with a virus and we need to put all of

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<v Speaker 1>our resources into into winning that war and defeating this virus.

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<v Speaker 1>So reach about thirty seconds before the break, what is

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<v Speaker 1>your Do you have an understanding as to when you

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<v Speaker 1>may begin to receive some vaccines? We have received a

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<v Speaker 1>very few and I will tell you we've received like

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<v Speaker 1>a thousand doses, which was really for our frontline workers.

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<v Speaker 1>We run a jail, we run some nursing homes, we

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<v Speaker 1>run some medical examiners, and and and and social workers

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<v Speaker 1>that are out dealing with the homeless, dealing with people

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<v Speaker 1>with COVID. So those folks that are in our employee

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<v Speaker 1>we were able to distribute the first shots uh in

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<v Speaker 1>within the last week, but that is woefully inadequate for

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<v Speaker 1>all of the first responders we have in our municipalities,

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<v Speaker 1>throughout the throughout the community, met express, dental offices, doctors offices, etcetera.

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<v Speaker 1>You know, you got me thinking here as we think

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<v Speaker 1>about getting the vaccine into people's arms, we think about

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<v Speaker 1>back to March, in April and May when there was

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<v Speaker 1>a scramble across the country for PPE and what we

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<v Speaker 1>saw because there was no federal control or federal policy, um,

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<v Speaker 1>we saw states bidding against each other for mass and

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<v Speaker 1>for other PPE is. Are we seeing something similar here

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<v Speaker 1>as it relates to trying to get access to these vaccines?

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<v Speaker 1>I certainly, hope not. It's it's unclear again how the

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<v Speaker 1>distribution channels and the numbers are going. Um again, I'm

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<v Speaker 1>glad to hear that the President, like Biden, has talked

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<v Speaker 1>about instituting the Defense Production Act as soon as he

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<v Speaker 1>gets into office in a couple of weeks. And that's

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<v Speaker 1>what's needed. I mean, there should be massive manufacturer and

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<v Speaker 1>production of this and then massive distribution because until we

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<v Speaker 1>get people vaccinated, you know what they call community heard,

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<v Speaker 1>you know heard, the community immunity, We're not going to

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<v Speaker 1>see our economy open up. People are going to have confidence,

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<v Speaker 1>they're not going to visit their family members, and and

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<v Speaker 1>it just needs to be priority number one. So rich,

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<v Speaker 1>give us a sense of how the pandemic kind of

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<v Speaker 1>rolled through Allegheny County. Just give us a sense of

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<v Speaker 1>kind of how you guys have been dealing with it.

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<v Speaker 1>We actually did very well with it early on through

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<v Speaker 1>through March April. Those early months, our numbers were much

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<v Speaker 1>much lower than other places similar sized urban urban areas

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<v Speaker 1>around the country. But then in late October, um, you know,

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<v Speaker 1>we we we really started the backslide. And really over

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<v Speaker 1>the last couple of months it has been just almost

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<v Speaker 1>a spike that we've never seen. Um, we're gonna have

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<v Speaker 1>as many deaths almost deaths in the month of December

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<v Speaker 1>as we had through the first nine months from from March.

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<v Speaker 1>How are the hospitals holding up there? Because one of

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<v Speaker 1>the things we saw here, certainly in the Greater Metro

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<v Speaker 1>New York area UH and then in other places around

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<v Speaker 1>the country in the second wave was the hospital of

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<v Speaker 1>us just get overwhelmed. And that's really when the problems

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<v Speaker 1>start to occur. Yeah, they haven't been overwhelmed yet, but

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<v Speaker 1>we're reaching capacity and that that's another concern. Um. Again,

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<v Speaker 1>over the last six weeks or so, we have really

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<v Speaker 1>seen a rise in not only hospitalizations, but I see

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<v Speaker 1>you acute care and again O, our fatality rate has

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<v Speaker 1>gone up. And um it is you know, through the

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<v Speaker 1>Thanksgiving and we we don't know exactly what's happened yet

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<v Speaker 1>through the Christmas holidays, but our test numbers have been

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<v Speaker 1>extremely high and our hospitalizations are very, very concerning. And

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<v Speaker 1>in Pittsburgh and western Pennsylvania you know a little bit

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<v Speaker 1>about it. We've got a very robust U p m C,

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<v Speaker 1>A h N, a very robust healthcare UH system, and

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<v Speaker 1>even that is being taxed to the limit. Talk about

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<v Speaker 1>the economic impact that you've seen in results from this pandemic.

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<v Speaker 1>Give us some some of the what you're seeing there,

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<v Speaker 1>because we've seen obviously some very very high cloyment numbers nationally,

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<v Speaker 1>jobs claims continue to be very weak. Um. Yes, the

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<v Speaker 1>stock market's going up, but that's not the economy. No.

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<v Speaker 1>And certainly people that are in the hospitality industry have

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<v Speaker 1>been impacted more than anybody are. We had a booming,

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<v Speaker 1>booming restaurant uh in foodie business in in throughout, a

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<v Speaker 1>lot of young people, a lot of viruncy here in

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<v Speaker 1>the Pittsburgh area, and those folks have just been impacted.

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<v Speaker 1>You know, the arts and cultural amenities of which Pittsburgh

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<v Speaker 1>has tremendous, you know, the offer of the symphony or

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<v Speaker 1>sports teams, you know, music, etcetera, have just been decimated. Um.

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<v Speaker 1>You know, things like construction and manufacturing and retail haven't

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<v Speaker 1>been as affected as much, but it really has been

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<v Speaker 1>the restaurants, the hotels, uh, the entertainment venue that have

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<v Speaker 1>just been disproportionately affected. There are the folks that really need, uh,

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<v Speaker 1>the the the the funding in the then the legislation

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<v Speaker 1>that we need you know, Congress to go ahead and

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<v Speaker 1>uh increase, all right, Rich, before we let you go,

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<v Speaker 1>are you Steelers in I am indeed, and you guys

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<v Speaker 1>feeling about it? Feeling pretty good. Well, we're gonna have

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<v Speaker 1>a little kind of week off this week, so they're playing,

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<v Speaker 1>but they're gonna play a lot of the second line

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<v Speaker 1>players and we're getting ready for that first playoff game

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<v Speaker 1>a week from this weekend. Um, and uh, we'll have

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<v Speaker 1>a few fans in hines Field. But uh, if you've

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<v Speaker 1>been around, you know that we we put, we weigh

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<v Speaker 1>those terrible tials and we're excited. Hopefully we'll be waiving

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<v Speaker 1>them at home without you know, a lot of people

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<v Speaker 1>and trying to stay safe. But what we're rooting for

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<v Speaker 1>our stealers. Yes, indeed, all right, Rich, thanks so much

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<v Speaker 1>for joining us. We really appreciate your time. Rich fitzgeraldy

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<v Speaker 1>is an executive for Allegheny County that includes Pittsburgh in

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<v Speaker 1>the Great Commonwealth of Pennsylvania. Some challenging times there, like

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<v Speaker 1>we're seeing on a national basis, but again looking for

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<v Speaker 1>that light at the end of the tunnel. Well, as

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<v Speaker 1>we think back to the beginning this pandemic, one of

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<v Speaker 1>the images that we have is cruise ships stranded at

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<v Speaker 1>see sports, not willing to take the people where there

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<v Speaker 1>had been the virus on the ship. Eventually, over a

0:12:01.960 --> 0:12:05.120
<v Speaker 1>long period of time, most of the passengers got off

0:12:05.120 --> 0:12:07.840
<v Speaker 1>the ship got home safely. But how about the people,

0:12:07.960 --> 0:12:10.160
<v Speaker 1>the crew, the people on the ship that work on

0:12:10.200 --> 0:12:13.360
<v Speaker 1>the ship. What was life like for them? How has

0:12:13.400 --> 0:12:16.040
<v Speaker 1>it been for them? There's a fascinating story in the

0:12:16.040 --> 0:12:18.360
<v Speaker 1>Bloomberg Business Week this week that goes to that issue.

0:12:18.400 --> 0:12:20.840
<v Speaker 1>Let's bring in Joel Webber. He's the editor Bloomberg Business

0:12:20.880 --> 0:12:23.720
<v Speaker 1>Week on the remote access line from Brooklyn and Austin Carr,

0:12:23.800 --> 0:12:26.680
<v Speaker 1>technology reporter for Bloomberg News. He's on the phone from

0:12:26.840 --> 0:12:29.480
<v Speaker 1>l A. Joel, this is just a compelling story, a

0:12:29.600 --> 0:12:33.240
<v Speaker 1>sad story. Talked to us about it, Yeah, it is.

0:12:33.440 --> 0:12:36.760
<v Speaker 1>It's it's really a tragic one. Um And the magazine

0:12:36.800 --> 0:12:39.920
<v Speaker 1>has done um I think of just a seminal job

0:12:39.960 --> 0:12:46.120
<v Speaker 1>of covering the cruise industries, which obviously um was a

0:12:46.240 --> 0:12:50.200
<v Speaker 1>really bad story, especially earlier in the year. Um And

0:12:50.200 --> 0:12:54.360
<v Speaker 1>And those stories have largely centered on on passengers and

0:12:54.400 --> 0:12:58.480
<v Speaker 1>the corporate experience. What happened when one of the ships

0:12:58.480 --> 0:13:02.960
<v Speaker 1>in Australia actually let its passengers off and in the

0:13:02.960 --> 0:13:08.120
<v Speaker 1>pandemic basically entered Australia. But Austin, I think in this

0:13:08.160 --> 0:13:11.640
<v Speaker 1>story is uh booke ins all of it with this

0:13:11.720 --> 0:13:16.560
<v Speaker 1>incredible human story UM that largely untold of what it

0:13:16.640 --> 0:13:19.679
<v Speaker 1>was like to be a crew member on these ships.

0:13:19.840 --> 0:13:23.840
<v Speaker 1>And you know, it's a tragic story because of the

0:13:23.880 --> 0:13:29.120
<v Speaker 1>suicides that basically happened. And I'll turn that over to

0:13:29.200 --> 0:13:34.800
<v Speaker 1>Austin because it was just an incredible reporting feat UM.

0:13:34.880 --> 0:13:38.440
<v Speaker 1>But also I think was just an incredible uh service

0:13:38.520 --> 0:13:41.800
<v Speaker 1>because these are people who you know, when passengers left,

0:13:41.800 --> 0:13:45.520
<v Speaker 1>like like you said, Paul, Um, the crew members actually

0:13:45.559 --> 0:13:51.160
<v Speaker 1>were stranded and um spent weeks uh basically still on lockdown.

0:13:51.240 --> 0:13:53.679
<v Speaker 1>So so Austin, UM, take us inside your reporting. How

0:13:53.720 --> 0:13:55.840
<v Speaker 1>did you how did you first learn about the topic

0:13:55.880 --> 0:13:58.720
<v Speaker 1>and and where did you know? What? Where did it

0:13:58.760 --> 0:14:02.640
<v Speaker 1>take you? Yeah? And in many ways, these were sort

0:14:02.679 --> 0:14:07.079
<v Speaker 1>of the forgotten workers of the COVID nineteen crisis that

0:14:07.160 --> 0:14:09.960
<v Speaker 1>hit the cruise industry. You had droll as you noted.

0:14:10.000 --> 0:14:11.560
<v Speaker 1>We we did a lot of reporting and a lot

0:14:11.600 --> 0:14:15.480
<v Speaker 1>of the passenger tragedies and how the corporations have been

0:14:15.559 --> 0:14:18.840
<v Speaker 1>hit UM, but tens of thousands of workers if not more,

0:14:18.920 --> 0:14:22.720
<v Speaker 1>we're stuck at sea long after passengers left UH. And

0:14:22.840 --> 0:14:26.600
<v Speaker 1>what we had started exploring was just what the conditions

0:14:26.600 --> 0:14:29.920
<v Speaker 1>were like aboard these ships. UH crew members told us

0:14:29.960 --> 0:14:33.640
<v Speaker 1>that they were left with profound uncertainty around when they

0:14:33.680 --> 0:14:36.520
<v Speaker 1>were going to get home. Their pay was eventually cut

0:14:36.560 --> 0:14:38.920
<v Speaker 1>off when they were moved off duty because there was

0:14:38.960 --> 0:14:41.560
<v Speaker 1>not really any work to do aboard these ships. They

0:14:41.560 --> 0:14:44.840
<v Speaker 1>were confined to small cabins due to the pandemic UM

0:14:44.880 --> 0:14:47.480
<v Speaker 1>and they you know, any time they were let outside,

0:14:47.520 --> 0:14:50.880
<v Speaker 1>it was under very regimented circumstances, specific times when they

0:14:50.880 --> 0:14:52.960
<v Speaker 1>could go get meals, when they could go have a

0:14:52.960 --> 0:14:56.160
<v Speaker 1>cigarette break, they could go get fresh air. And the

0:14:56.200 --> 0:14:58.480
<v Speaker 1>only connection they had to the outside world was through

0:14:58.520 --> 0:15:01.240
<v Speaker 1>a very mediocre Internet connection, which they could use to

0:15:01.360 --> 0:15:04.680
<v Speaker 1>Facebook or WhatsApp with with family and friends. And so

0:15:04.800 --> 0:15:06.680
<v Speaker 1>one of the things we wanted to do was was

0:15:06.720 --> 0:15:09.520
<v Speaker 1>get beyond sort of the ancillary effects of the pandemic,

0:15:09.640 --> 0:15:12.960
<v Speaker 1>which is there are already you know, thousands of infections

0:15:13.040 --> 0:15:15.680
<v Speaker 1>and UH, you know, around a hundred or so death

0:15:15.720 --> 0:15:18.440
<v Speaker 1>stemming from COVID nineteen. But we wanted to zero in

0:15:18.640 --> 0:15:22.080
<v Speaker 1>on the consequences of people being confined to the six

0:15:22.200 --> 0:15:28.040
<v Speaker 1>ended period of isolation, which in many cases resulted in depression, isolation, anxiety,

0:15:28.440 --> 0:15:34.000
<v Speaker 1>and unfortunately suicide. As we sort of exploring the story Austin,

0:15:34.040 --> 0:15:36.600
<v Speaker 1>I was wondering as I was reading the story, who

0:15:36.680 --> 0:15:38.880
<v Speaker 1>was representing or who was supposed to be representing the

0:15:38.960 --> 0:15:44.520
<v Speaker 1>interests of these workers. In many cases there are unions

0:15:44.560 --> 0:15:48.640
<v Speaker 1>advocating on their behalf. But but let's be clear, these

0:15:48.640 --> 0:15:53.400
<v Speaker 1>are are lower paid workers, often from poor countries. Um.

0:15:53.440 --> 0:15:55.560
<v Speaker 1>You know, there was often a lot of attention on

0:15:55.640 --> 0:15:59.120
<v Speaker 1>passengers because they were the ones speaking to Western reporters. Uh,

0:15:59.240 --> 0:16:02.680
<v Speaker 1>they were sharing photos and uh you know, videos from

0:16:02.680 --> 0:16:05.200
<v Speaker 1>inside these cruise ships for the limited time they were

0:16:05.240 --> 0:16:06.840
<v Speaker 1>on there. You've got to think that a lot of

0:16:06.840 --> 0:16:09.960
<v Speaker 1>these passengers were very effected for just being on these

0:16:10.000 --> 0:16:12.600
<v Speaker 1>ships for maybe a couple of weeks, whereas these crew

0:16:12.680 --> 0:16:15.880
<v Speaker 1>members were aboard for months on end. And I think

0:16:15.920 --> 0:16:17.800
<v Speaker 1>the ultimate issue was there wasn't a lot of people

0:16:17.840 --> 0:16:21.840
<v Speaker 1>advocating on their behalf. Um. In certain instances on these ships,

0:16:21.840 --> 0:16:25.040
<v Speaker 1>we did see protest breakout to bring attention to their plight.

0:16:25.400 --> 0:16:28.400
<v Speaker 1>On several Royal Caribbean ships, we saw a hunger strike

0:16:28.800 --> 0:16:30.960
<v Speaker 1>uh stage two for crew members to sort of put

0:16:31.000 --> 0:16:33.760
<v Speaker 1>pressure on the company to get them home. There was

0:16:33.800 --> 0:16:36.680
<v Speaker 1>a protest on another Royal Caribbean ship where they raised

0:16:36.680 --> 0:16:39.600
<v Speaker 1>a banner that that essentially said how many more suicides

0:16:39.640 --> 0:16:43.320
<v Speaker 1>do you need? Again calling attention from the press to

0:16:43.480 --> 0:16:47.400
<v Speaker 1>apply pressure and scrutiny of these cruise industry players to

0:16:47.480 --> 0:16:50.000
<v Speaker 1>sort of get them home. But I think ultimately to

0:16:50.080 --> 0:16:52.480
<v Speaker 1>your point there there isn't a lot of people advocating

0:16:52.800 --> 0:16:56.760
<v Speaker 1>beyond UH unions, UH and and sort of press, but

0:16:57.200 --> 0:16:59.360
<v Speaker 1>there definitely needs to be more attention to this issue.

0:16:59.760 --> 0:17:03.440
<v Speaker 1>Can during the conditions they faced for for extended prolonged

0:17:03.800 --> 0:17:09.600
<v Speaker 1>periods at sea Austin UM, there's some some uh you know,

0:17:09.720 --> 0:17:14.080
<v Speaker 1>really interesting characters in the story, including UM. Joseph Salers

0:17:14.600 --> 0:17:18.760
<v Speaker 1>is really the main UM story that you use as

0:17:18.800 --> 0:17:21.600
<v Speaker 1>the as the vehicle to to talk about the trend.

0:17:21.840 --> 0:17:25.080
<v Speaker 1>Can you tell us about UM, about him and his

0:17:25.200 --> 0:17:28.359
<v Speaker 1>family and and sort of where their fight UM to

0:17:28.760 --> 0:17:34.080
<v Speaker 1>basically have his story UM uh talked about more broadly

0:17:34.480 --> 0:17:40.040
<v Speaker 1>currently stands. So Joseph was a cruise ship worker. He'd

0:17:40.080 --> 0:17:42.960
<v Speaker 1>been working for carnival cruise ships since essentially January, and

0:17:43.040 --> 0:17:45.760
<v Speaker 1>he really epitomizes what a lot of these crew members

0:17:45.800 --> 0:17:49.080
<v Speaker 1>went through UM. When the pandemic sort of exploded in March,

0:17:49.600 --> 0:17:52.520
<v Speaker 1>he was moved around to several ships. He was isolated

0:17:52.560 --> 0:17:55.040
<v Speaker 1>in the cabin without a window for for a certain

0:17:55.040 --> 0:17:58.879
<v Speaker 1>period of time. UM. You know. Uh friends of his

0:17:59.040 --> 0:18:02.320
<v Speaker 1>said that, uh, you know, just to go outside. There

0:18:02.320 --> 0:18:04.280
<v Speaker 1>would be specific times that might you know, you might

0:18:04.320 --> 0:18:06.320
<v Speaker 1>only have an hour for breakfast, but it could take

0:18:06.640 --> 0:18:08.920
<v Speaker 1>forty five minutes just to get a coffee because the

0:18:09.359 --> 0:18:12.920
<v Speaker 1>sort of uh food service lines were so understaffed and

0:18:12.920 --> 0:18:16.840
<v Speaker 1>and there's the ships were so crowded. UM. And unfortunately,

0:18:16.920 --> 0:18:20.320
<v Speaker 1>after months at sea, UM, he he did end up

0:18:20.359 --> 0:18:23.760
<v Speaker 1>taking his own life. Crew members reported not having seen

0:18:23.840 --> 0:18:27.520
<v Speaker 1>him for several days. He missed the daily required temperature

0:18:27.560 --> 0:18:30.399
<v Speaker 1>checks UM and crew members were sent to check on him,

0:18:30.400 --> 0:18:33.320
<v Speaker 1>and unfortunately he was found um hanged to test And

0:18:33.320 --> 0:18:35.639
<v Speaker 1>what is a very tragic story that we outline in

0:18:35.680 --> 0:18:38.639
<v Speaker 1>the story and ultimately we trace what it's actually like

0:18:38.800 --> 0:18:41.199
<v Speaker 1>for the family to learn at this news and go

0:18:41.280 --> 0:18:46.160
<v Speaker 1>through the process of repat trading their sons to cease

0:18:46.200 --> 0:18:48.920
<v Speaker 1>body and his remains, and to go through the process

0:18:48.960 --> 0:18:52.560
<v Speaker 1>of having him declare dead when he died in international waters.

0:18:52.880 --> 0:18:56.080
<v Speaker 1>To sort of figure out um the sort of true

0:18:56.119 --> 0:18:59.120
<v Speaker 1>story of what happened to their son when it's very

0:18:59.119 --> 0:19:01.639
<v Speaker 1>difficult to sign to to get information out of these

0:19:01.680 --> 0:19:05.000
<v Speaker 1>cruise companies who were not often totally forthcoming about information

0:19:05.040 --> 0:19:07.439
<v Speaker 1>for a variety of reasons. And so this story is

0:19:07.480 --> 0:19:09.760
<v Speaker 1>both the story of a lot of crew men getting

0:19:09.800 --> 0:19:12.480
<v Speaker 1>home and dealing with mental health issues, but also zeroing

0:19:12.520 --> 0:19:15.080
<v Speaker 1>in on on ones who suffered this ultimate tragedy of

0:19:15.400 --> 0:19:17.880
<v Speaker 1>suicide and how the families have had to deal with

0:19:17.880 --> 0:19:22.199
<v Speaker 1>with the consequences of this difficult repatoration. Yeah, hey, Austin,

0:19:22.200 --> 0:19:24.840
<v Speaker 1>thank you so much for bringing this story to our attention.

0:19:24.880 --> 0:19:26.760
<v Speaker 1>And of course, if you are someone you know as

0:19:26.800 --> 0:19:29.959
<v Speaker 1>having suicidal thoughts, the National Suicide Prevention Hotline is one

0:19:30.000 --> 0:19:33.960
<v Speaker 1>eight hundred two seven three eight two five five. Austin Carr,

0:19:34.000 --> 0:19:36.840
<v Speaker 1>technology reporter for Bloomberg News on the line, Uh, Poe

0:19:36.880 --> 0:19:39.320
<v Speaker 1>mine from l a Intoel Webber, Editor Bloomberg Business Week

0:19:39.480 --> 0:19:43.320
<v Speaker 1>on the remote access line from Brooklyn. You're listening to

0:19:43.440 --> 0:19:48.240
<v Speaker 1>Bloomberg Business Week with Carol Messer on Bloomberg Radio. Well,

0:19:48.320 --> 0:19:50.359
<v Speaker 1>during this pandemic, I think most of us have become

0:19:50.680 --> 0:19:54.359
<v Speaker 1>or we think we are experts in buying stuff online.

0:19:54.680 --> 0:19:56.840
<v Speaker 1>And maybe a lot more stuff at different types of

0:19:56.880 --> 0:19:59.560
<v Speaker 1>stuff than we did pre pandemic. And the proof is

0:19:59.600 --> 0:20:01.560
<v Speaker 1>in the putty. You look outside to anybody's door, there

0:20:01.560 --> 0:20:03.680
<v Speaker 1>seems to be boxes piling up on a daily basis

0:20:03.680 --> 0:20:06.320
<v Speaker 1>from all over. Let's get a sense of how this infrastructure,

0:20:06.359 --> 0:20:08.399
<v Speaker 1>this e commerce trend is playing. Now we can do

0:20:08.440 --> 0:20:12.159
<v Speaker 1>that with James Thompson. He's a partner by Box Experts.

0:20:12.800 --> 0:20:16.760
<v Speaker 1>Prior he was former business head of Amazon Services. He

0:20:16.840 --> 0:20:19.359
<v Speaker 1>joins us on the phone from Seattle. So, James, boy,

0:20:19.520 --> 0:20:22.440
<v Speaker 1>what it just seems like this pandemic has pulled for

0:20:22.880 --> 0:20:27.280
<v Speaker 1>e commerce trends, end penetration rates by you know, a

0:20:27.280 --> 0:20:29.359
<v Speaker 1>couple of three years. What do you make of it?

0:20:30.960 --> 0:20:33.480
<v Speaker 1>I think it's exciting, it's very exciting. But it's also

0:20:33.520 --> 0:20:36.480
<v Speaker 1>forcing brands and retailers to ask and selves the question

0:20:36.520 --> 0:20:40.680
<v Speaker 1>around how are they going to adapt quickly to remain

0:20:41.119 --> 0:20:44.600
<v Speaker 1>where customers want to buy products. One of the scary

0:20:44.640 --> 0:20:46.400
<v Speaker 1>things that's happened for a lot of companies this year

0:20:46.480 --> 0:20:49.240
<v Speaker 1>is they realized we're not actually set up to help

0:20:49.320 --> 0:20:52.320
<v Speaker 1>customers if they want to buy online. So the questions

0:20:52.359 --> 0:20:54.639
<v Speaker 1>around what does it take to make that transition and

0:20:54.680 --> 0:20:56.880
<v Speaker 1>be in a position where you can support customers whether

0:20:56.920 --> 0:20:59.360
<v Speaker 1>they want to buy in store or buy online. That's

0:20:59.400 --> 0:21:02.880
<v Speaker 1>going to be the store companies making those adjustments, making

0:21:02.880 --> 0:21:05.960
<v Speaker 1>those investments, and getting themselves ready for a world where

0:21:06.520 --> 0:21:09.760
<v Speaker 1>enough consumers are interested in buying online that retailers and

0:21:09.800 --> 0:21:13.000
<v Speaker 1>brands alike need to be ready. Yeah. I'd be shocked

0:21:13.000 --> 0:21:15.080
<v Speaker 1>if if somebody, if a company I was invested, and

0:21:15.119 --> 0:21:17.760
<v Speaker 1>said they didn't have a digital strategy. I'd be a

0:21:17.760 --> 0:21:20.199
<v Speaker 1>seller of that stock. I don't care what business they're in.

0:21:20.720 --> 0:21:22.920
<v Speaker 1>What are you finding in terms of kind of the

0:21:23.440 --> 0:21:27.160
<v Speaker 1>headaches are for retailers here as so much of their

0:21:27.200 --> 0:21:30.560
<v Speaker 1>business has moved online? What are some of the things

0:21:30.560 --> 0:21:35.120
<v Speaker 1>that they're finding problematic? At least a couple of big

0:21:35.160 --> 0:21:39.280
<v Speaker 1>issues for for most retailers. Number One, companies are not

0:21:39.359 --> 0:21:43.720
<v Speaker 1>set up to have real time inventory information available across

0:21:43.840 --> 0:21:46.640
<v Speaker 1>just not not just in store, but across the country.

0:21:47.040 --> 0:21:50.159
<v Speaker 1>If a customer places an order online and the inventory

0:21:50.240 --> 0:21:52.919
<v Speaker 1>is sitting in a local store, does the retailer know

0:21:53.040 --> 0:21:56.680
<v Speaker 1>that or are they drawing inventory from an online fulfillment

0:21:56.680 --> 0:22:00.119
<v Speaker 1>facility that has dedicated inventory just for the online in

0:22:00.160 --> 0:22:03.840
<v Speaker 1>the customer? Uh, there was so much inventory tied up

0:22:03.880 --> 0:22:07.159
<v Speaker 1>in physical stores over over the first few months of COVID,

0:22:07.720 --> 0:22:10.080
<v Speaker 1>but you couldn't access it easily, and so for all

0:22:10.080 --> 0:22:13.880
<v Speaker 1>intentsive purposes, that's dead inventory. So as as retailers start

0:22:13.920 --> 0:22:18.120
<v Speaker 1>thinking about how do they make information about inventory available

0:22:18.640 --> 0:22:21.199
<v Speaker 1>so that a customer can access it whether they're in

0:22:21.320 --> 0:22:24.440
<v Speaker 1>store or whether they're buying online, those types of questions

0:22:24.480 --> 0:22:27.680
<v Speaker 1>are big complicated questions that require software investments, but also

0:22:27.680 --> 0:22:30.520
<v Speaker 1>a change in philosophy. For a lot of retailers. The

0:22:30.560 --> 0:22:33.600
<v Speaker 1>e commerce department is a separate company or a separate

0:22:33.680 --> 0:22:37.120
<v Speaker 1>entity that has its own set of goals. Uh, and

0:22:37.160 --> 0:22:39.600
<v Speaker 1>so you look at how much are we selling in

0:22:39.640 --> 0:22:42.280
<v Speaker 1>the store versus how much are we selling online. From

0:22:42.280 --> 0:22:46.120
<v Speaker 1>a customer's perspective, they don't really care how the accounting works.

0:22:46.119 --> 0:22:47.600
<v Speaker 1>They just want to know that they can go in

0:22:47.600 --> 0:22:49.600
<v Speaker 1>to a store. If it's not available in the store,

0:22:49.680 --> 0:22:51.800
<v Speaker 1>no problem. We know exactly where it is and we'll

0:22:51.800 --> 0:22:53.720
<v Speaker 1>get it sent to you so you can have it.

0:22:55.000 --> 0:22:57.720
<v Speaker 1>I think of stores and or brands like Lego, nice

0:22:57.800 --> 0:23:00.919
<v Speaker 1>vertically integrated company where it doesn't matter whether you're an

0:23:00.920 --> 0:23:04.760
<v Speaker 1>online customer or physical in store customer. It's all one entity.

0:23:04.920 --> 0:23:07.040
<v Speaker 1>You can buy in one channel, you can return in another.

0:23:07.280 --> 0:23:08.960
<v Speaker 1>If you go into one channel and try to buy

0:23:08.960 --> 0:23:11.600
<v Speaker 1>the product and it's not available, no problem, we can

0:23:11.600 --> 0:23:15.840
<v Speaker 1>service it from other channels. That kind of model is

0:23:15.840 --> 0:23:17.639
<v Speaker 1>the model that I think most retailers are going to

0:23:17.720 --> 0:23:20.200
<v Speaker 1>have to move towards fairly quickly so that they don't

0:23:20.240 --> 0:23:23.480
<v Speaker 1>lose customers to retailers that have got this part figured out.

0:23:23.960 --> 0:23:28.320
<v Speaker 1>And that's the omni channel strategy, right, James, Yeah, it's

0:23:28.520 --> 0:23:31.240
<v Speaker 1>it's more than just omni channel. Omni channel for some

0:23:31.240 --> 0:23:35.000
<v Speaker 1>companies means hey, we sell in multiple channels. Well, a

0:23:35.080 --> 0:23:38.120
<v Speaker 1>real omni channel strategy says we sell in multiple channels,

0:23:38.240 --> 0:23:40.520
<v Speaker 1>and we know how to move inventory back and forth

0:23:40.560 --> 0:23:42.560
<v Speaker 1>between those channels. We know how to make it a

0:23:42.600 --> 0:23:46.040
<v Speaker 1>fluid experience so consumers don't have to worry about where

0:23:46.080 --> 0:23:49.560
<v Speaker 1>the products actually sitting today. It will arrive to the

0:23:49.600 --> 0:23:52.640
<v Speaker 1>consumer quickly, whether that's in the store or whether it's

0:23:52.640 --> 0:23:54.520
<v Speaker 1>to their doorstep at their home wherever they choose to

0:23:54.520 --> 0:23:57.680
<v Speaker 1>have a shift, so that that that's issue number one.

0:23:57.800 --> 0:24:00.800
<v Speaker 1>The The other big transition for for companies is gonna

0:24:00.800 --> 0:24:03.920
<v Speaker 1>be around how do you control last mile delivery? If

0:24:03.920 --> 0:24:07.560
<v Speaker 1>you look at what's happened with the massive growth in

0:24:07.680 --> 0:24:10.720
<v Speaker 1>demand for online orders in the past six seven months,

0:24:11.800 --> 0:24:15.680
<v Speaker 1>most retailers rely on the postal service UPS and FedEx

0:24:16.040 --> 0:24:19.920
<v Speaker 1>to get those packages delivered to consumers. Well, those carriers

0:24:19.920 --> 0:24:22.640
<v Speaker 1>haven't been able to keep up with the increase in demand,

0:24:22.680 --> 0:24:26.040
<v Speaker 1>and so that's created a lot of delays both in

0:24:26.480 --> 0:24:30.359
<v Speaker 1>getting products into warehouses but also getting products from warehouses

0:24:30.359 --> 0:24:33.680
<v Speaker 1>delivered to consumers. When I look at what happened, for example,

0:24:33.720 --> 0:24:37.040
<v Speaker 1>with with Costco, you know, back in November, the CEO

0:24:37.280 --> 0:24:41.040
<v Speaker 1>was already saying to consumers, Hey, UPS is UH is

0:24:41.080 --> 0:24:43.840
<v Speaker 1>slow in picking up our packages and getting it to consumers.

0:24:44.200 --> 0:24:46.400
<v Speaker 1>You know, you need to go and download the UPS

0:24:46.440 --> 0:24:48.400
<v Speaker 1>app to figure out when you're actually going to get

0:24:48.400 --> 0:24:52.119
<v Speaker 1>the shipment. Well, that kind of situation was seen across

0:24:52.240 --> 0:24:56.560
<v Speaker 1>many retailers where they relied on these these carriers to

0:24:56.600 --> 0:24:59.480
<v Speaker 1>get the packages to consumers. But quite frankly, it was

0:24:59.480 --> 0:25:02.080
<v Speaker 1>a black access to when it was actually going to

0:25:02.160 --> 0:25:04.720
<v Speaker 1>be received by the consumer. That's not a good experience

0:25:04.720 --> 0:25:08.040
<v Speaker 1>for consumers um and and quite frankly, consumers are going

0:25:08.119 --> 0:25:11.520
<v Speaker 1>to go looking for retailers that can make a promise

0:25:11.760 --> 0:25:13.520
<v Speaker 1>around when a product is gonna be delivered and they

0:25:13.520 --> 0:25:15.680
<v Speaker 1>can actually deliver on it, and that's hard for most

0:25:15.680 --> 0:25:18.640
<v Speaker 1>retailers to do when they don't control the last biel

0:25:18.680 --> 0:25:22.119
<v Speaker 1>distribution themselves. Hey, James, I'm guessing you know that the

0:25:22.200 --> 0:25:25.280
<v Speaker 1>share of e commerce is just really accelerated here, the

0:25:25.320 --> 0:25:30.480
<v Speaker 1>share shift. There's no going back, is there? Well, I

0:25:30.520 --> 0:25:33.040
<v Speaker 1>think consumers still want to do shopping, but when it

0:25:33.080 --> 0:25:35.600
<v Speaker 1>comes to buying, that is to say, when you know

0:25:35.680 --> 0:25:38.600
<v Speaker 1>what it is you want to buy, yeah, going online,

0:25:38.720 --> 0:25:41.760
<v Speaker 1>you get it done quickly, no problem. Consumers will return

0:25:41.760 --> 0:25:43.560
<v Speaker 1>to malls when it's safe to do so, but they'll

0:25:43.560 --> 0:25:46.679
<v Speaker 1>be doing that more to learn about products and to

0:25:46.760 --> 0:25:49.280
<v Speaker 1>be buying things that they may not otherwise have initially

0:25:49.280 --> 0:25:53.280
<v Speaker 1>planned to buy. And that that's okay, that's great. For

0:25:53.359 --> 0:25:56.920
<v Speaker 1>a brand or a retailer that has both a physical

0:25:56.960 --> 0:26:00.480
<v Speaker 1>presence in malls as well as an online presence, they

0:26:00.520 --> 0:26:04.399
<v Speaker 1>need to be prepared to operate physical stores where the

0:26:04.440 --> 0:26:07.760
<v Speaker 1>same store sales may not necessarily continue to increase because

0:26:07.760 --> 0:26:11.399
<v Speaker 1>consumers are going in to learn about products, but because

0:26:11.400 --> 0:26:14.480
<v Speaker 1>of product availability issues, consumers may end up buying the

0:26:14.520 --> 0:26:18.160
<v Speaker 1>products through the online portion of the business. So there's

0:26:18.200 --> 0:26:21.480
<v Speaker 1>a role for both online and for inline, but but

0:26:21.520 --> 0:26:25.159
<v Speaker 1>it's going to be much more obvious. Within six to

0:26:25.200 --> 0:26:28.600
<v Speaker 1>eight months, when we're back we're back at physically visiting

0:26:28.640 --> 0:26:31.520
<v Speaker 1>physical locations, It's going to become more apparent as to

0:26:31.560 --> 0:26:33.359
<v Speaker 1>what the relative role is of each of these different

0:26:33.359 --> 0:26:35.320
<v Speaker 1>types of channels. James, you know, I was thinking back

0:26:35.359 --> 0:26:38.080
<v Speaker 1>to before Christmas, probably late November, early December, you know,

0:26:38.119 --> 0:26:41.359
<v Speaker 1>getting into the busy season. Outside the UPS store in

0:26:41.400 --> 0:26:44.520
<v Speaker 1>my town. Uh, the UPS guy was loading a truck,

0:26:44.640 --> 0:26:46.840
<v Speaker 1>but it wasn't a Brown UPS truck, it was an

0:26:46.880 --> 0:26:49.359
<v Speaker 1>Avis truck. And he was telling me the reason he

0:26:49.400 --> 0:26:53.200
<v Speaker 1>was doing that is because they ran out of UPS trucks.

0:26:53.240 --> 0:26:57.160
<v Speaker 1>Are these companies like, are they not able to keep

0:26:57.280 --> 0:27:02.840
<v Speaker 1>up with this e commerce growth we're seeing nationally every

0:27:02.920 --> 0:27:06.600
<v Speaker 1>Q four, Each of these shipping companies will often find

0:27:06.960 --> 0:27:09.840
<v Speaker 1>additional trucks to be able to help with some of that. Oh, James,

0:27:09.960 --> 0:27:11.920
<v Speaker 1>let me clear that up. I can say one more thing.

0:27:12.040 --> 0:27:13.879
<v Speaker 1>I asked him about that, and he said, yet it

0:27:14.040 --> 0:27:16.600
<v Speaker 1>usually we just have to go to these backup trucks

0:27:16.680 --> 0:27:19.800
<v Speaker 1>during the holiday season. But we've been doing it all

0:27:20.200 --> 0:27:24.720
<v Speaker 1>years since March. Mm hmm. Well, but back to something

0:27:24.720 --> 0:27:28.040
<v Speaker 1>I said the first part of our discussion, these these

0:27:28.080 --> 0:27:31.719
<v Speaker 1>companies postal Service, ups FedEx. You know, they haven't been

0:27:31.720 --> 0:27:34.280
<v Speaker 1>able to grow as fast as as needed to support

0:27:34.320 --> 0:27:38.280
<v Speaker 1>all the extra demand, and so they're growing as fast

0:27:38.280 --> 0:27:40.760
<v Speaker 1>as they can, hiring people as fast as they can,

0:27:41.200 --> 0:27:43.400
<v Speaker 1>grabbing trucks from here and there as fast as they can.

0:27:43.640 --> 0:27:45.960
<v Speaker 1>But it's still nowhere near enough. And so as we

0:27:45.960 --> 0:27:47.879
<v Speaker 1>start to think about what's going to happen in the

0:27:47.920 --> 0:27:51.800
<v Speaker 1>next year if all this incremental e commerce demand is

0:27:51.840 --> 0:27:54.600
<v Speaker 1>here to stay, these companies have to make a very

0:27:54.640 --> 0:27:57.879
<v Speaker 1>important decision around are they prepared to invest in growth

0:27:57.920 --> 0:27:59.840
<v Speaker 1>to keep up with this. If you look at what's

0:27:59.840 --> 0:28:03.280
<v Speaker 1>happy with Amazon, Amazon made the decision over three years

0:28:03.280 --> 0:28:05.520
<v Speaker 1>ago and said, we can see the future and the

0:28:05.520 --> 0:28:08.240
<v Speaker 1>future doesn't look good if we were relying on companies

0:28:08.280 --> 0:28:11.200
<v Speaker 1>like ups anthed X and the postal Service to grow

0:28:11.359 --> 0:28:15.200
<v Speaker 1>with us. And so companies like Amazon have made significant

0:28:15.200 --> 0:28:20.719
<v Speaker 1>investments themselves in last mile capabilities Target bought Shipped earlier

0:28:20.760 --> 0:28:23.040
<v Speaker 1>this year because they too see that they need to

0:28:23.080 --> 0:28:25.760
<v Speaker 1>own some of the last male logistics. These are very

0:28:25.840 --> 0:28:29.760
<v Speaker 1>important decisions and very forward looking in terms of if

0:28:29.800 --> 0:28:32.120
<v Speaker 1>consumers are going to be making more and more purchases

0:28:32.119 --> 0:28:36.280
<v Speaker 1>online and last monal logistics is being outsourced somebody else.

0:28:36.880 --> 0:28:39.440
<v Speaker 1>That's not a good situation if in fact e commerce

0:28:39.440 --> 0:28:44.239
<v Speaker 1>grows faster than these logistics companies can support. So when

0:28:44.280 --> 0:28:46.600
<v Speaker 1>you look at what's happened with Amazon and Q four,

0:28:46.960 --> 0:28:50.080
<v Speaker 1>I've seen estimates that suggest that on Prime orders that

0:28:50.160 --> 0:28:52.880
<v Speaker 1>Amazon was shipping here in the US, they were actually

0:28:52.920 --> 0:28:57.040
<v Speaker 1>handling upwards of seventy five of all of the orders themselves,

0:28:57.360 --> 0:29:00.560
<v Speaker 1>getting it from the Amazon fulfillment centers on to trucks

0:29:00.680 --> 0:29:04.800
<v Speaker 1>or planes that they control, onto trucks in your local city,

0:29:04.840 --> 0:29:09.960
<v Speaker 1>delivering it to your home orders. That's that's capacity that

0:29:10.120 --> 0:29:13.320
<v Speaker 1>UPS and well, not fed X because Amazon doesn't work

0:29:13.320 --> 0:29:15.800
<v Speaker 1>with fed X, but the UPS and the postal service.

0:29:16.080 --> 0:29:18.480
<v Speaker 1>You know that that's capacity that they weren't being asked

0:29:18.520 --> 0:29:22.080
<v Speaker 1>to support because Amazon said, we can't deliver on our

0:29:22.080 --> 0:29:25.360
<v Speaker 1>Prime promise if we rely on companies that aren't growing

0:29:25.360 --> 0:29:27.680
<v Speaker 1>fast enough and don't have enough capacity to support us.

0:29:28.520 --> 0:29:30.200
<v Speaker 1>And James, that brings up a good point. You know,

0:29:30.520 --> 0:29:32.360
<v Speaker 1>when you go out on the highways and byways, I'm

0:29:32.440 --> 0:29:37.320
<v Speaker 1>just shocked at the number of Amazon trucks. You know,

0:29:37.360 --> 0:29:38.920
<v Speaker 1>the big eighteen wheel is all the way down to

0:29:38.960 --> 0:29:42.480
<v Speaker 1>the smaller vans. For the last mile. Literally, it seems like,

0:29:43.440 --> 0:29:47.720
<v Speaker 1>you know, Amazon has become the late nation's largest trucking company.

0:29:48.240 --> 0:29:51.480
<v Speaker 1>So they currently have over thirty thousand transport trucks on

0:29:51.560 --> 0:29:54.480
<v Speaker 1>the road that they own. And when you when you

0:29:54.560 --> 0:29:56.680
<v Speaker 1>drive up and down the East Coast Corridor and you

0:29:56.720 --> 0:30:00.640
<v Speaker 1>look at who's actually on the road and you start

0:30:00.680 --> 0:30:04.760
<v Speaker 1>counting Amazon trucks versus UPS trucks, you'll find that there's

0:30:04.800 --> 0:30:07.560
<v Speaker 1>probably ten to twelve times as many Amazon trucks because

0:30:07.560 --> 0:30:10.920
<v Speaker 1>you'll see UPS trucks. And that's Amazon saying we're going

0:30:11.000 --> 0:30:15.200
<v Speaker 1>to control moving products from warehouses, distorting facilities, and ultimately

0:30:15.240 --> 0:30:18.000
<v Speaker 1>to consumers homes. We can't rely on someone else to

0:30:18.040 --> 0:30:20.320
<v Speaker 1>be able to to manage this. So Amazon's putting a

0:30:20.320 --> 0:30:23.960
<v Speaker 1>lot of pressure not just on being able to buy

0:30:23.960 --> 0:30:26.600
<v Speaker 1>trucks and so on, but also on labor that's going

0:30:26.640 --> 0:30:29.920
<v Speaker 1>to support all the movement of these products. Amazon continues

0:30:29.960 --> 0:30:33.000
<v Speaker 1>to rent more and more planes for their own primaier capabilities,

0:30:33.240 --> 0:30:37.479
<v Speaker 1>again moving full cargo planes back and forth. Rather than

0:30:37.520 --> 0:30:41.200
<v Speaker 1>saying we're going to rely on cargo space that we

0:30:41.240 --> 0:30:45.920
<v Speaker 1>can use on passenger flights that pretty much have well

0:30:46.280 --> 0:30:49.080
<v Speaker 1>dropped off significant this year, We're not going to rely

0:30:49.160 --> 0:30:50.920
<v Speaker 1>on that. We're just gonna have our own planes that

0:30:50.960 --> 0:30:54.040
<v Speaker 1>we can fill, thank you very much, and fly between

0:30:54.480 --> 0:30:57.640
<v Speaker 1>big hubs, ensuring the product can move quickly. At the

0:30:57.680 --> 0:31:00.200
<v Speaker 1>end of the day, Amazon's number one focus is how

0:31:00.200 --> 0:31:03.320
<v Speaker 1>do we continue to grow while still delivering on this

0:31:03.400 --> 0:31:06.400
<v Speaker 1>prime promise. Just because there's twice as many customers that

0:31:06.440 --> 0:31:08.680
<v Speaker 1>want our products doesn't mean that we have to slow

0:31:08.720 --> 0:31:12.040
<v Speaker 1>down on being able to get customers their packages quickly.

0:31:12.320 --> 0:31:14.920
<v Speaker 1>Amazon has not been able to grow as quickly as

0:31:14.920 --> 0:31:17.520
<v Speaker 1>they want, and so the prime promise has slipped a

0:31:17.520 --> 0:31:20.280
<v Speaker 1>little bit from two days to three or four or

0:31:20.360 --> 0:31:23.240
<v Speaker 1>five days, depending on where you were in two four um.

0:31:23.360 --> 0:31:25.240
<v Speaker 1>But you know Amazon is going to keep making those

0:31:25.280 --> 0:31:28.560
<v Speaker 1>investments because they can see that the other logistics companies

0:31:28.600 --> 0:31:30.920
<v Speaker 1>are not going to be able to grow uh in

0:31:31.680 --> 0:31:35.400
<v Speaker 1>line with what Amazon needs. Hey James, about thirty seconds left.

0:31:35.440 --> 0:31:38.640
<v Speaker 1>I'd love to get your thoughts on the grocery business

0:31:38.640 --> 0:31:42.960
<v Speaker 1>for Amazon. Is there a future there? The grocery business

0:31:43.080 --> 0:31:46.120
<v Speaker 1>doesn't need to be profitable for Amazon. The grocery business

0:31:46.160 --> 0:31:49.160
<v Speaker 1>is really about Amazon continuing to engage with consumers and

0:31:49.240 --> 0:31:52.400
<v Speaker 1>keep Amazon top of mind. If you think of your

0:31:52.440 --> 0:31:54.840
<v Speaker 1>wallet is having ten different types of purchases you have

0:31:54.920 --> 0:31:57.280
<v Speaker 1>to make each each week. At least a couple of

0:31:57.320 --> 0:32:00.120
<v Speaker 1>those are grocery related. And Amazon needs to continue need

0:32:00.160 --> 0:32:03.440
<v Speaker 1>to be relevant in all parts of your wallet. And

0:32:03.480 --> 0:32:07.280
<v Speaker 1>they certainly are, judging by my credit card. Bill James Thompson,

0:32:07.600 --> 0:32:11.200
<v Speaker 1>partner by Box Experts, also a former business head of

0:32:11.200 --> 0:32:13.960
<v Speaker 1>Amazon Services. We appreciate your thoughts. He was joining joined

0:32:14.000 --> 0:32:16.880
<v Speaker 1>us on the phone from Seattle, giving us the latest

0:32:16.960 --> 0:32:19.560
<v Speaker 1>on Amazon. As you think about it again, you go

0:32:19.600 --> 0:32:21.320
<v Speaker 1>out on the highways and by ways, and I am

0:32:21.360 --> 0:32:25.000
<v Speaker 1>just struck by how many trucks we are seeing from Amazon.

0:32:25.080 --> 0:32:29.200
<v Speaker 1>Amazon owned and branded trucks. They're just everywhere. So they

0:32:29.240 --> 0:32:31.480
<v Speaker 1>are taking matters into their own hands. Well, when we

0:32:31.600 --> 0:32:34.440
<v Speaker 1>started getting the good news on the vaccine front, one

0:32:34.440 --> 0:32:36.000
<v Speaker 1>of the numbers that kind of stuck in my head

0:32:36.120 --> 0:32:39.800
<v Speaker 1>was twenty million people will get the vaccination, would get

0:32:39.840 --> 0:32:42.640
<v Speaker 1>the vaccine by the end of looks like we're gonna

0:32:42.640 --> 0:32:45.320
<v Speaker 1>be woefully short of that number. Let's dive into kind

0:32:45.360 --> 0:32:48.720
<v Speaker 1>of what's uh driving those issues. Drew Armstrong, he's a

0:32:48.760 --> 0:32:51.600
<v Speaker 1>team leader for US Healthcare for Bloomberg News. He joins

0:32:51.680 --> 0:32:54.120
<v Speaker 1>us on the phone from Atlanta. So, Drew, there's a

0:32:54.160 --> 0:32:57.400
<v Speaker 1>story in the terminals. On the terminal today vaccinations are

0:32:57.480 --> 0:33:00.520
<v Speaker 1>running about two hundred thousand dollars a day, but that's

0:33:00.600 --> 0:33:04.720
<v Speaker 1>far short of what warp speed promise. What's going on? Yeah,

0:33:04.760 --> 0:33:09.000
<v Speaker 1>so about two hundred vaccinations being done a day. I

0:33:09.040 --> 0:33:12.440
<v Speaker 1>think right now we're seeing the combined effects of some

0:33:12.640 --> 0:33:17.240
<v Speaker 1>vaccines that have rather complex logistics to ship, uh, store,

0:33:17.440 --> 0:33:21.200
<v Speaker 1>and then administer UM. The early start to this that

0:33:21.320 --> 0:33:25.000
<v Speaker 1>is still very focused on the group of frontline help

0:33:25.080 --> 0:33:28.920
<v Speaker 1>providers and folks who reside in long term and and

0:33:28.960 --> 0:33:31.960
<v Speaker 1>work in long term care homes or nursing homes, and

0:33:32.240 --> 0:33:35.959
<v Speaker 1>you know, frankly just not quite the as fast as

0:33:36.040 --> 0:33:38.800
<v Speaker 1>expected in the readiness that's needed to do the type

0:33:38.800 --> 0:33:42.840
<v Speaker 1>of max vaccine mass vaccination UM that uh you know

0:33:42.880 --> 0:33:44.880
<v Speaker 1>it is being called for here. I think you know,

0:33:45.680 --> 0:33:47.520
<v Speaker 1>right now the U s pace is somewhere around two

0:33:47.560 --> 0:33:52.000
<v Speaker 1>hundred thousand UH vaccinations a day. You know, what you

0:33:52.280 --> 0:33:55.000
<v Speaker 1>really should be seeing UM to reach twenty million is

0:33:55.280 --> 0:33:58.520
<v Speaker 1>close to a million a day on average since the

0:33:58.640 --> 0:34:02.080
<v Speaker 1>approval or sorry it's the authorization of the Fiser vaccine,

0:34:02.120 --> 0:34:05.280
<v Speaker 1>and it's just nowhere close to that. Drew we earlier

0:34:05.280 --> 0:34:07.400
<v Speaker 1>in the show, we're speaking to the County executive for

0:34:07.400 --> 0:34:10.719
<v Speaker 1>Alleganting County of Pennsylvania that includes Pittsburgh, and he was

0:34:10.800 --> 0:34:16.600
<v Speaker 1>extraordinarily frustrated on the lack of coordination and information from

0:34:16.800 --> 0:34:20.520
<v Speaker 1>the federal government. What role in theory should the federal

0:34:20.560 --> 0:34:23.960
<v Speaker 1>government be doing here to help with the distribution of

0:34:23.960 --> 0:34:29.120
<v Speaker 1>these vaccines? You know, I think that's a fantastically good question. Um.

0:34:29.280 --> 0:34:31.360
<v Speaker 1>One of the things that we have seen is that

0:34:32.160 --> 0:34:34.880
<v Speaker 1>a number of hold ups in UH funding for the

0:34:34.920 --> 0:34:37.160
<v Speaker 1>CDC that was meant to be dispersed the states to

0:34:37.239 --> 0:34:40.600
<v Speaker 1>help them with exactly that. Um. Some of that has

0:34:40.680 --> 0:34:42.879
<v Speaker 1>rolled out over the last two weeks. But the new

0:34:42.960 --> 0:34:45.960
<v Speaker 1>stimulus bill UM and Economic really bill contains about eight

0:34:46.000 --> 0:34:48.680
<v Speaker 1>billion dollars in CBC funding, UM, the majority of which

0:34:48.719 --> 0:34:51.120
<v Speaker 1>is going to go to the states, and probably not

0:34:51.360 --> 0:34:55.040
<v Speaker 1>a moment too late, not a moment too soon. Um.

0:34:55.120 --> 0:34:57.840
<v Speaker 1>You know, there's a real debate about what is the

0:34:57.840 --> 0:35:00.600
<v Speaker 1>federal government's role here. UM. I think you will see

0:35:00.640 --> 0:35:02.920
<v Speaker 1>the Biden administration probably try to take a much more

0:35:02.960 --> 0:35:06.200
<v Speaker 1>active role in assisting states and communicating from above what's

0:35:06.200 --> 0:35:08.839
<v Speaker 1>going on here. On President Trump earlier today and late

0:35:08.920 --> 0:35:11.920
<v Speaker 1>last night, facing some of the news headlines crossing that

0:35:11.960 --> 0:35:13.680
<v Speaker 1>this role out was not going as fast as expected.

0:35:13.719 --> 0:35:16.160
<v Speaker 1>Basically said it's the States deal. Um, it's up to

0:35:16.160 --> 0:35:17.839
<v Speaker 1>them to go and do this. He was very very

0:35:18.040 --> 0:35:20.480
<v Speaker 1>um clear about. But the fact that you know, we

0:35:20.480 --> 0:35:22.319
<v Speaker 1>shift do the vaccines and you know, go and get

0:35:22.360 --> 0:35:25.279
<v Speaker 1>this done, um on your own. So um, I I

0:35:25.320 --> 0:35:29.320
<v Speaker 1>think that you know, you clearly see a dispute about

0:35:29.360 --> 0:35:33.000
<v Speaker 1>who should be leading this effort and the consequences of

0:35:33.000 --> 0:35:34.640
<v Speaker 1>that are the are the number of people who are

0:35:34.640 --> 0:35:38.800
<v Speaker 1>being vaccinated being rather low? So true. President Biden yesterday

0:35:38.840 --> 0:35:43.600
<v Speaker 1>in a pandemic comments uh said one million people will

0:35:43.640 --> 0:35:46.040
<v Speaker 1>be backed will get the vaccination in the first one

0:35:46.239 --> 0:35:49.480
<v Speaker 1>days of his administration as she talked to folks in

0:35:49.520 --> 0:35:53.080
<v Speaker 1>the healthcare industry and the supply chain. Is that doable?

0:35:54.920 --> 0:35:57.280
<v Speaker 1>I think it's a really good question. Right now, Um,

0:35:57.400 --> 0:36:01.400
<v Speaker 1>you are seeing vaccination point essentially in hospitals and um

0:36:01.480 --> 0:36:05.120
<v Speaker 1>increasingly in nursing homes and long term care settings. Those

0:36:05.120 --> 0:36:09.320
<v Speaker 1>are you know, institutional settings where presumably it is relatively

0:36:09.360 --> 0:36:11.759
<v Speaker 1>easy to line people up because they all work there

0:36:12.280 --> 0:36:14.719
<v Speaker 1>or live there and say okay, we're gonna do your vaccination.

0:36:14.840 --> 0:36:17.480
<v Speaker 1>It's also a very small group where this is going

0:36:17.560 --> 0:36:20.360
<v Speaker 1>to start getting bigger is when you bring on vaccinations

0:36:20.400 --> 0:36:24.440
<v Speaker 1>at workplaces, at pharmacies around the country and you really

0:36:24.480 --> 0:36:28.160
<v Speaker 1>really expand that and use the tens of thousands of

0:36:28.200 --> 0:36:31.200
<v Speaker 1>potential vaccination site UM in the same way that we

0:36:31.280 --> 0:36:33.640
<v Speaker 1>do with testing. I mean, remember, we can perform a

0:36:33.719 --> 0:36:36.600
<v Speaker 1>huge volume of testing in this country right now using

0:36:36.640 --> 0:36:39.800
<v Speaker 1>a distributed healthcare network UM. It's very easy to imagine

0:36:39.800 --> 0:36:42.799
<v Speaker 1>if you replace the vaccination infrastructure on top of the

0:36:42.920 --> 0:36:45.120
<v Speaker 1>what you see in the testing network, you can do

0:36:45.239 --> 0:36:47.880
<v Speaker 1>certainly a lot of vaccination. But right now it is

0:36:47.920 --> 0:36:49.960
<v Speaker 1>just not happening, and it remains to be seen what

0:36:50.080 --> 0:36:53.560
<v Speaker 1>the next couple of weeks hold idre maybe thirty seconds.

0:36:53.760 --> 0:36:56.400
<v Speaker 1>Where is the bottleneck? Have we identified the bottleneck in

0:36:56.440 --> 0:37:00.560
<v Speaker 1>this process? You know, I think right now, and the

0:37:00.560 --> 0:37:05.319
<v Speaker 1>bottleneck is probably about five different little bottlenecks. Okay, some

0:37:05.360 --> 0:37:07.640
<v Speaker 1>states they're not getting enough, others that they're not moving

0:37:07.680 --> 0:37:11.839
<v Speaker 1>fast enough. It's a really really complex um situation, which

0:37:11.880 --> 0:37:15.200
<v Speaker 1>is probably part of the problem. That complexity. YTRI, thanks

0:37:15.239 --> 0:37:18.920
<v Speaker 1>so much again for your reporting. We appreciate it. Drew Armstrong,

0:37:18.960 --> 0:37:22.120
<v Speaker 1>team leader for US Healthcare at Bloomberg News, joining us

0:37:22.160 --> 0:37:29.719
<v Speaker 1>on the phone from Atlanta. ROC Journal yeah, but you

0:37:29.800 --> 0:37:34.520
<v Speaker 1>let me drive. Oh no, no, no, no, who's home? Honey? Please,

0:37:34.600 --> 0:37:38.279
<v Speaker 1>I'll do the riding revels. I want to drive ball,

0:37:40.719 --> 0:37:53.799
<v Speaker 1>just drive baby, the question try this is the drive

0:37:53.920 --> 0:37:58.920
<v Speaker 1>to the globe. Thanks. We'll drying us on Bloomberg Radio.

0:38:00.000 --> 0:38:02.000
<v Speaker 1>All right, let's talk e t s. This is just

0:38:02.080 --> 0:38:06.160
<v Speaker 1>an extraordinary story that just keeps on going. The growth

0:38:06.160 --> 0:38:08.239
<v Speaker 1>in this space is something you know, I haven't seen

0:38:08.400 --> 0:38:11.319
<v Speaker 1>very frequently in my third year career. Uh, let's get

0:38:11.360 --> 0:38:14.000
<v Speaker 1>an update. We can do that with Ed Rosenberg. He's

0:38:14.040 --> 0:38:18.319
<v Speaker 1>head of exchange traded funds at American Century Investments. These

0:38:18.320 --> 0:38:21.680
<v Speaker 1>guys are big billion dollars under management. He joins us

0:38:21.719 --> 0:38:23.960
<v Speaker 1>on the phone from Chicago. Ed, thanks so much for

0:38:24.040 --> 0:38:26.880
<v Speaker 1>joining us here. I always love to start talking about

0:38:26.880 --> 0:38:29.880
<v Speaker 1>e t f s to get the latest on fund

0:38:29.960 --> 0:38:33.920
<v Speaker 1>flows into e t f Did the pandemic twenty year

0:38:33.960 --> 0:38:36.520
<v Speaker 1>did that kind of put any kind of did that

0:38:36.560 --> 0:38:38.680
<v Speaker 1>disrupt the fun flow story that we've seen in e

0:38:38.800 --> 0:38:42.279
<v Speaker 1>t fs? So thank you for having me, and uh

0:38:42.400 --> 0:38:46.080
<v Speaker 1>no it really didn't. I mean twenty this year has

0:38:46.120 --> 0:38:49.600
<v Speaker 1>been an amazing and interesting year all around, and as

0:38:49.600 --> 0:38:51.080
<v Speaker 1>most people want to put it to bed, but in

0:38:51.120 --> 0:38:54.320
<v Speaker 1>the e t F industry flows your near record highs.

0:38:54.360 --> 0:38:58.480
<v Speaker 1>I mean, two thousand seventeen was the record year um

0:38:58.560 --> 0:39:01.600
<v Speaker 1>for four seventy six bill and inflows, and we're right

0:39:01.600 --> 0:39:04.279
<v Speaker 1>there before we get to year end, we're approaching we

0:39:04.360 --> 0:39:06.480
<v Speaker 1>might even be passing that last numbers. I pulled it

0:39:06.600 --> 0:39:09.399
<v Speaker 1>right before Christmas and we're at four fifty eight. I've

0:39:09.400 --> 0:39:11.440
<v Speaker 1>seen things that's hey, we're getting closer to about five

0:39:11.880 --> 0:39:15.680
<v Speaker 1>billion and flows for a record year. So ets have

0:39:15.840 --> 0:39:19.239
<v Speaker 1>not been affected. What has been affected was where the

0:39:19.280 --> 0:39:22.319
<v Speaker 1>money is going, which has changed several times throughout the year.

0:39:22.760 --> 0:39:25.640
<v Speaker 1>But overall, the money just keeps going into E t s.

0:39:26.440 --> 0:39:29.799
<v Speaker 1>All right, And I give us the reasons why for

0:39:29.840 --> 0:39:32.040
<v Speaker 1>those of us that aren't that that grew up in

0:39:32.040 --> 0:39:34.759
<v Speaker 1>the mutual fund world, and UH would have to go

0:39:34.800 --> 0:39:37.239
<v Speaker 1>see American Century that the fund managers there and the

0:39:37.280 --> 0:39:40.240
<v Speaker 1>fund managers at Fidelity. When else is sell side analysts

0:39:40.480 --> 0:39:44.120
<v Speaker 1>tell us about the relative merits of an et F

0:39:44.280 --> 0:39:47.960
<v Speaker 1>versus say a mutual fund. Yeah, absolutely, and remember I

0:39:48.040 --> 0:39:49.839
<v Speaker 1>grew up on the mutual fund side. It's well back

0:39:49.840 --> 0:39:52.759
<v Speaker 1>and okay, so um, I mean, if you think of

0:39:52.760 --> 0:39:55.600
<v Speaker 1>what an ETF offers, right, the first and the biggest

0:39:55.600 --> 0:39:59.000
<v Speaker 1>thing is flexibility. So you know, on when you look

0:39:59.080 --> 0:40:01.000
<v Speaker 1>at those days in mar where the markets were going

0:40:01.040 --> 0:40:03.920
<v Speaker 1>down or maybe they were bouncing around. Within e t F,

0:40:04.000 --> 0:40:06.600
<v Speaker 1>you can choose your time of day. You can't do

0:40:06.640 --> 0:40:08.200
<v Speaker 1>that with the mutual fund. It's always going to be

0:40:08.239 --> 0:40:10.040
<v Speaker 1>the four o'clock close, no matter what time you call

0:40:10.080 --> 0:40:13.160
<v Speaker 1>it in. So that's one aspect. The other aspect with

0:40:13.239 --> 0:40:16.080
<v Speaker 1>e T s is there's there's the potential to be

0:40:16.200 --> 0:40:19.439
<v Speaker 1>much more tax efficient. Well I think, and I don't

0:40:19.480 --> 0:40:22.239
<v Speaker 1>have the numbers exactly for mutual funds and how many

0:40:22.239 --> 0:40:25.160
<v Speaker 1>pay capital gains. Let's say it's about six of all

0:40:25.160 --> 0:40:28.520
<v Speaker 1>equity mutual funds pay capital gain, whereas if you look

0:40:28.520 --> 0:40:31.600
<v Speaker 1>at the T s, the numbers below ten and so

0:40:31.880 --> 0:40:34.000
<v Speaker 1>E T s are more tax efficient in the long

0:40:34.120 --> 0:40:37.239
<v Speaker 1>term for investors. And then the other thing that's historically

0:40:37.280 --> 0:40:39.600
<v Speaker 1>been there is ets tend to be a little bit

0:40:40.080 --> 0:40:42.120
<v Speaker 1>more price sensitive, so they tend to be a little

0:40:42.200 --> 0:40:45.120
<v Speaker 1>cheaper in times. You'll see some of the newer ETFs

0:40:45.160 --> 0:40:47.960
<v Speaker 1>that are coming out, especially the active ones on par

0:40:48.080 --> 0:40:50.839
<v Speaker 1>if there's mutual fund counterparts, but even some of those

0:40:50.880 --> 0:40:53.359
<v Speaker 1>are a few basis points cheaper, So there can be

0:40:53.400 --> 0:40:56.040
<v Speaker 1>a cost savings with e t s as well. And

0:40:56.080 --> 0:40:58.520
<v Speaker 1>I think those three points have led e t s

0:40:58.600 --> 0:41:01.960
<v Speaker 1>just to become, um within the last couple of years,

0:41:02.480 --> 0:41:05.520
<v Speaker 1>more favored as a structure and a rapper for people

0:41:05.560 --> 0:41:08.280
<v Speaker 1>because it creates flexibility if they just didn't have before.

0:41:08.680 --> 0:41:13.280
<v Speaker 1>And are these primarily retail oriented? Is this a retail

0:41:13.280 --> 0:41:18.239
<v Speaker 1>oriented product versus institutionals buying into this? Not at all?

0:41:18.320 --> 0:41:20.560
<v Speaker 1>I mean, I think it depending on the product type

0:41:20.560 --> 0:41:22.440
<v Speaker 1>you look at. You know, I think a lot of

0:41:22.440 --> 0:41:25.400
<v Speaker 1>the institutions have gravitated towards e t s and the

0:41:25.440 --> 0:41:28.319
<v Speaker 1>basic indexes because it's something you know, whether you're a

0:41:28.400 --> 0:41:32.600
<v Speaker 1>pension or whether you know you're any other type of institution,

0:41:32.600 --> 0:41:35.200
<v Speaker 1>you manage towards the benchmark. And if you can find

0:41:35.200 --> 0:41:37.719
<v Speaker 1>an e t F relatively cheaply that is tied to

0:41:37.760 --> 0:41:41.640
<v Speaker 1>that benchmark, why wouldn't you use it? What types of Well,

0:41:41.680 --> 0:41:43.239
<v Speaker 1>first of all, how many e t f s are

0:41:43.239 --> 0:41:47.680
<v Speaker 1>there out there? Rough? There's so I'm gonna give you

0:41:47.680 --> 0:41:52.439
<v Speaker 1>a rough estimate. There's arounds in the US today, um,

0:41:52.480 --> 0:41:54.640
<v Speaker 1>And I know that number seems big, but if you

0:41:54.680 --> 0:41:57.560
<v Speaker 1>compare it to the number of mutual funds you're talking

0:41:57.560 --> 0:42:04.160
<v Speaker 1>about funds, so still much smaller. And what are some

0:42:04.200 --> 0:42:06.680
<v Speaker 1>of the types of e t s that are being

0:42:07.360 --> 0:42:11.280
<v Speaker 1>launched these days? Presumably all this fresh capital coming into

0:42:11.320 --> 0:42:16.319
<v Speaker 1>the sector, I'm guessing just that provides incentives for you know,

0:42:16.480 --> 0:42:19.839
<v Speaker 1>different types of e t F to be created. Yeah,

0:42:19.840 --> 0:42:22.879
<v Speaker 1>it does. Has been the most in looked interesting year

0:42:22.880 --> 0:42:24.879
<v Speaker 1>in ets, and I've been in ats for the last

0:42:24.880 --> 0:42:28.239
<v Speaker 1>fifteen years, UM. And what makes it so interesting is

0:42:28.280 --> 0:42:31.360
<v Speaker 1>we saw this was the first time that active launched

0:42:31.440 --> 0:42:35.160
<v Speaker 1>as active et s outpaced index ets. If you think

0:42:35.160 --> 0:42:36.520
<v Speaker 1>of what e t f s have been known for,

0:42:36.600 --> 0:42:39.720
<v Speaker 1>they've always been known as index products, and that tide

0:42:39.760 --> 0:42:43.399
<v Speaker 1>has shifted dramatically in the other thing that we saw

0:42:43.480 --> 0:42:45.960
<v Speaker 1>this year was the advent of the first what we

0:42:46.000 --> 0:42:49.200
<v Speaker 1>call semi transparent UM. I know some of your colleagues

0:42:49.320 --> 0:42:53.239
<v Speaker 1>at Bloomberg called them ants active non transparent ets and

0:42:53.920 --> 0:42:56.560
<v Speaker 1>they saw they were passed by the SEC in late

0:42:56.600 --> 0:42:59.800
<v Speaker 1>two thousand nineteen and they launched in two thousand twenty.

0:42:59.840 --> 0:43:02.880
<v Speaker 1>And there's been five different types of those that launched

0:43:02.880 --> 0:43:05.920
<v Speaker 1>this year where they don't disclose the holdings every day,

0:43:06.040 --> 0:43:09.520
<v Speaker 1>and those ETFs alone are pushing about so far. I've

0:43:09.560 --> 0:43:12.080
<v Speaker 1>pushed and brought in about seven hundred million dollars year

0:43:12.120 --> 0:43:15.080
<v Speaker 1>to date, and we launched the first one back in

0:43:15.200 --> 0:43:18.080
<v Speaker 1>late March, so they haven't been around that long and

0:43:18.080 --> 0:43:21.120
<v Speaker 1>they've already attracted that much money. And what's the relative

0:43:21.160 --> 0:43:24.960
<v Speaker 1>attractiveness of that type of structure. So in they e

0:43:25.040 --> 0:43:28.600
<v Speaker 1>t F landscape, there wasn't these types of products and

0:43:28.640 --> 0:43:30.520
<v Speaker 1>a lot of the products that have launched and using

0:43:30.560 --> 0:43:32.239
<v Speaker 1>ours for example. So I'm just going to give an

0:43:32.239 --> 0:43:35.040
<v Speaker 1>example of Focus Dynamic Growth, which is out there. It's

0:43:35.040 --> 0:43:41.120
<v Speaker 1>a very concentrated portfolio, call it fifty holdings. That type

0:43:41.120 --> 0:43:43.640
<v Speaker 1>of product really didn't exist in the landscape. There were

0:43:43.640 --> 0:43:47.439
<v Speaker 1>a few, but now you'll see active managers who want

0:43:47.480 --> 0:43:51.960
<v Speaker 1>to launch something that is more concentrated, that puts forward

0:43:52.000 --> 0:43:56.680
<v Speaker 1>a more alpha generating potential, and the ETF landscape didn't

0:43:56.719 --> 0:44:00.600
<v Speaker 1>have that before. Out of those products, maybe only a

0:44:00.640 --> 0:44:02.640
<v Speaker 1>few did that. And you're going to see a lot

0:44:02.680 --> 0:44:05.279
<v Speaker 1>more offerings from a lot of the bigger firms doing

0:44:05.320 --> 0:44:11.000
<v Speaker 1>this as we go forward, especially into so any themes

0:44:11.040 --> 0:44:15.080
<v Speaker 1>you have for it relates to the e t F sector, Yeah,

0:44:15.080 --> 0:44:17.040
<v Speaker 1>it's going to be interesting. So just so you know,

0:44:17.080 --> 0:44:20.440
<v Speaker 1>the last three months everyone was like a year of

0:44:20.480 --> 0:44:22.600
<v Speaker 1>growth until the last three months, and everyone decided to

0:44:22.680 --> 0:44:25.680
<v Speaker 1>investate value and make that switch and so, and I've

0:44:25.719 --> 0:44:28.319
<v Speaker 1>heard that on your your radio show before, and so

0:44:28.480 --> 0:44:30.920
<v Speaker 1>now I think what you're going to see is people

0:44:31.000 --> 0:44:35.479
<v Speaker 1>looking for places where they didn't necessarily think about it before. One.

0:44:35.840 --> 0:44:39.040
<v Speaker 1>We may have new tax plans coming in right depending

0:44:39.040 --> 0:44:41.960
<v Speaker 1>on what happens January, that may cause people to use

0:44:42.000 --> 0:44:43.800
<v Speaker 1>e t f s even more because they need to

0:44:43.840 --> 0:44:46.680
<v Speaker 1>be more tax advantageous in the past. But I really

0:44:46.680 --> 0:44:49.439
<v Speaker 1>think you're going to see investors start looking to add

0:44:49.480 --> 0:44:53.719
<v Speaker 1>alpha to their portfolio, especially if as most people are

0:44:53.719 --> 0:44:58.160
<v Speaker 1>thinking sort of a calmer, flatter market as we go forward, Well,

0:44:58.560 --> 0:45:03.520
<v Speaker 1>let's help calmer, but ladder, But realistically that's what they're

0:45:03.560 --> 0:45:05.360
<v Speaker 1>looking for. And I think you're gonna look for places

0:45:05.360 --> 0:45:08.399
<v Speaker 1>where you can add alpha potentially and looking for these

0:45:08.440 --> 0:45:10.600
<v Speaker 1>active portfolios. I think you're going to see more and

0:45:10.640 --> 0:45:12.719
<v Speaker 1>more of that as time goes on. Hey, thanks so

0:45:12.760 --> 0:45:14.839
<v Speaker 1>much for joining us. We always appreciating your thoughts on

0:45:14.880 --> 0:45:17.239
<v Speaker 1>the e t F business. Fascinating. Ed Rosenberg, head of

0:45:17.239 --> 0:45:20.640
<v Speaker 1>exchange traded funds at American Century, on the phone from

0:45:20.719 --> 0:45:23.200
<v Speaker 1>Chicago talking about the e t F It might be

0:45:23.280 --> 0:45:26.880
<v Speaker 1>maybe on track for a record inflow year yet again

0:45:27.320 --> 0:45:29.800
<v Speaker 1>for e t f s. Thanks so much for listening

0:45:29.840 --> 0:45:33.320
<v Speaker 1>to Bloomberg Business Week. Download the podcast on iTunes, SoundCloud,

0:45:33.480 --> 0:45:35.600
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0:45:35.600 --> 0:45:37.920
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0:45:38.000 --> 0:45:40.480
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0:45:40.560 --> 0:45:42.920
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