WEBVTT - Biden Orders Huge Release of Oil Reserves 0:00:01.800 --> 0:00:04.440 This is Bloomberg Business Week. I'm Karl Masser and I'm 0:00:04.480 --> 0:00:07.280 Bloomberg Quick Takes Tim Stanovk. We're here every day bringing 0:00:07.320 --> 0:00:09.799 you the latest news from the world to business and finance, 0:00:09.840 --> 0:00:13.680 plus technology, politics, economics, all purtnising the power of Business 0:00:13.680 --> 0:00:17.119 Week reporters and editors, not to mention our journalists and 0:00:17.160 --> 0:00:20.000 analyst in more than one twenty countries. You can download 0:00:20.000 --> 0:00:23.479 Bloomberg Business Weekend iTunes, SoundCloud, or Bloomberg dot Com. You 0:00:23.480 --> 0:00:25.439 can also listen to our radio show at two pm 0:00:25.480 --> 0:00:28.400 Eastern Time on Bloomberg Radio or watch us on YouTube 0:00:28.400 --> 0:00:32.040 search Bloomberg clovel News. All right, we are watching the 0:00:32.159 --> 0:00:34.600 energy markets. Of course, we just heard from President Biden 0:00:35.159 --> 0:00:38.360 UH pushing the oil release, saying in his planned to 0:00:38.520 --> 0:00:40.479 release a million barrels of oil a day from US 0:00:40.520 --> 0:00:43.440 reserves as for the six for six months. It's really 0:00:43.560 --> 0:00:46.640 massive and aggressive, laying a foundation for the country to 0:00:46.720 --> 0:00:49.919 achieve independence from foreign energy suppliers. This is our new 0:00:49.960 --> 0:00:52.800 world order. As for w t I crude right now 0:00:52.880 --> 0:00:55.920 pretty much hovering near loads of the session, down about 0:00:56.280 --> 0:00:58.440 uh six and a quarter percent, down almost seven bucks. 0:00:58.440 --> 0:01:01.560 So let's get to it with our guest Julia Fanzeris 0:01:01.560 --> 0:01:03.680 is oil markets reporter for Bloomberg New She's with us 0:01:03.720 --> 0:01:06.200 right now in the Bloomberg Interactive Broker's studio. Julia a 0:01:06.240 --> 0:01:10.120 journalist asking President Biden how quickly and how much is 0:01:10.160 --> 0:01:12.360 this going to lower prices at the pump? The President 0:01:12.800 --> 0:01:14.760 didn't really have a clear answer for that. Of course, 0:01:14.800 --> 0:01:17.560 it's market based, but based on your research, based on 0:01:17.560 --> 0:01:20.280 your reporting, uh, how much is it going to affect 0:01:20.360 --> 0:01:22.760 prices at the pump? Right? And it was a good question, 0:01:22.760 --> 0:01:25.000 because it's going to take at least three weeks for 0:01:25.080 --> 0:01:28.800 any crude future price to reach to the pump, and 0:01:28.880 --> 0:01:32.520 so taking that into consideration, you have to realize that there, 0:01:32.560 --> 0:01:35.000 as you mentioned other aspects going into this. It's also 0:01:35.080 --> 0:01:38.759 we're going into summer driving season, and that in itself 0:01:38.840 --> 0:01:42.000 is ratcheting up demand. And so even with these higher 0:01:42.040 --> 0:01:44.120 crude amounts, they're still going to be high demand and 0:01:44.200 --> 0:01:46.399 that's going to be the real problem. So, yes, it 0:01:46.440 --> 0:01:49.640 probably will lower gas prices for a little bit, but 0:01:49.880 --> 0:01:51.880 traders and all of my sources are saying this is 0:01:51.920 --> 0:01:54.760 just a short term band aid solution. It's not going 0:01:54.800 --> 0:01:56.440 to help in the long term. Well, the other thing 0:01:56.480 --> 0:01:57.880 that I had heard and this was gone back a 0:01:57.920 --> 0:02:00.120 couple of months when we're talking about higher energy prices. 0:02:00.160 --> 0:02:03.240 I think this was pre war. Um is that you 0:02:03.240 --> 0:02:05.120 know some states that added taxes, like you have to 0:02:05.160 --> 0:02:07.400 understand that there's a lot of things that ultimately go 0:02:07.480 --> 0:02:11.359 in to what you pay at the pump exactly. And 0:02:11.760 --> 0:02:14.480 this is no one likes higher prices, no one. The 0:02:14.480 --> 0:02:17.640 consumers don't like it. Obviously politicians don't like it. And 0:02:17.720 --> 0:02:20.360 so but to try to game the market and to 0:02:20.440 --> 0:02:22.520 try to lower prices like that, it's just not going 0:02:22.560 --> 0:02:24.760 to work. And we have to remember the spair is 0:02:24.800 --> 0:02:27.359 supposed to be used in emergencies, and so to use 0:02:27.520 --> 0:02:30.600 such a large amount to try to fix these high 0:02:30.600 --> 0:02:32.679 gasoline prices. A lot of people have been talking to 0:02:32.760 --> 0:02:34.240 him and saying, well, you're just going to drain the 0:02:34.360 --> 0:02:36.079 spr how are you going to get all of that 0:02:36.160 --> 0:02:38.639 crewed back and then when there's a real emergency that's 0:02:38.639 --> 0:02:41.400 a huge problem. Well, he called it a wartime bridge 0:02:41.639 --> 0:02:45.640 to up supply until production ramps up. He did say 0:02:45.680 --> 0:02:50.120 that they will uh sell the oil at market now 0:02:50.320 --> 0:02:53.800 and then use that money to then buy oil back 0:02:53.880 --> 0:02:57.320 when the price you know, ostensibly goes lower. But I 0:02:57.320 --> 0:02:59.200 want to go to the production part because he called 0:02:59.240 --> 0:03:03.520 out companies. He was pretty harsh, Um, what was your 0:03:03.520 --> 0:03:06.840 reaction to that? And what are they what could they 0:03:06.880 --> 0:03:09.400 be doing right now to help ease this supply crunch. 0:03:09.639 --> 0:03:11.200 What was funny about that is he saying, you know, 0:03:11.240 --> 0:03:14.040 it's a bridge until the production ramps up. But why 0:03:14.120 --> 0:03:18.680 would production ramp up in December and not right now? 0:03:18.960 --> 0:03:20.760 If so, it doesn't really make sense that he's saying, well, 0:03:20.760 --> 0:03:23.080 it's a bridge until the later, until the winter when 0:03:23.120 --> 0:03:25.000 they start ramping up production. Because if companies wanted to 0:03:25.080 --> 0:03:26.840 ramp up production, they were going to do it now. 0:03:26.919 --> 0:03:30.600 And as we mentioned previously, companies don't really want to 0:03:30.639 --> 0:03:33.720 ramp up production for several reasons. One, this administration has 0:03:33.760 --> 0:03:36.440 not been friendly towards oil companies, so the idea of 0:03:36.480 --> 0:03:39.200 them ramping up production in the meantime just doesn't seem 0:03:39.240 --> 0:03:40.640 like a good idea to them. They don't they don't 0:03:40.680 --> 0:03:42.400 want to be stuck like two fourteen with all of 0:03:42.440 --> 0:03:45.320 these extra barrels when demand then lowers down and it 0:03:45.360 --> 0:03:48.000 takes a while to ramp up production. So Biden was 0:03:48.000 --> 0:03:49.200 writ in the sense that it does take a while 0:03:49.200 --> 0:03:52.200 to ramp up production, but they would have to have 0:03:52.200 --> 0:03:55.120 started months ago. So what's the likelihood if we take 0:03:55.160 --> 0:03:58.080 the big picture, especially if you consider the conversations and 0:03:58.120 --> 0:04:00.720 the aggressive ones that we've been having about a pivot 0:04:00.720 --> 0:04:04.440 towards more alternative energy. Again, like you say, you know, 0:04:04.760 --> 0:04:07.360 I've seen you know, the rush up in the back 0:04:07.440 --> 0:04:09.840 ends a few years ago with all of the frocking 0:04:09.920 --> 0:04:13.680 and everybody, you know, just frenetic activity. But that's an 0:04:13.720 --> 0:04:16.400 area that's seeing boom and busts. So what is the 0:04:16.480 --> 0:04:20.400 likelihood that companies do anything in terms of investments are 0:04:20.480 --> 0:04:23.160 opening up the spigots when it comes to increasing the 0:04:23.200 --> 0:04:26.880 oil supplies or how long, like how they're gonna wait, 0:04:27.480 --> 0:04:29.360 They're going to wait. And we've even had he even 0:04:29.400 --> 0:04:31.400 sided that there was one oil company that said, even 0:04:31.400 --> 0:04:34.560 at two dollars barrel, we're not going to drill more. 0:04:34.720 --> 0:04:38.279 There are some companies that way, wait, slow down two barrel, 0:04:38.400 --> 0:04:40.480 and they still will not. So what is the break 0:04:40.560 --> 0:04:43.440 even point or what is the tipping point that says okay, 0:04:43.440 --> 0:04:45.560 we're in this. Well part of it is right now 0:04:45.560 --> 0:04:48.120 the market is fluctuating so much, the volatility so high, 0:04:48.120 --> 0:04:51.080 so it needs to be sustained higher prices and I 0:04:51.120 --> 0:04:53.480 think that production. They're not seeing that, they're not seeing 0:04:53.520 --> 0:04:56.479 sustained higher prices, they're just seeing Okay, well, this is 0:04:56.480 --> 0:04:58.640 because of the geopolitical risk premium, and so it doesn't 0:04:58.680 --> 0:05:00.560 make sense for us to start upping up and it 0:05:00.600 --> 0:05:02.039 takes months for it to get on the market if 0:05:02.080 --> 0:05:04.159 prices are not going to stay elevated. But isn't the 0:05:04.160 --> 0:05:08.240 geopolitical risk premium going to be something that continues for months? 0:05:08.240 --> 0:05:11.440 I don't sustainable right exactly? See, and based on everyone 0:05:11.480 --> 0:05:14.359 we talked to, it doesn't look like if Russia were to, 0:05:14.360 --> 0:05:17.840 you know, suddenly pulled back from Ukraine. It's not like 0:05:18.240 --> 0:05:23.359 multinational energy companies would go back into that country or 0:05:24.000 --> 0:05:26.599 start buying oil to the same extent that they were 0:05:26.600 --> 0:05:29.520 buying it before. That is a really good point, and 0:05:29.600 --> 0:05:32.359 it wouldn't be to that extent. But right now, the 0:05:32.480 --> 0:05:35.840 geopolitical risk premium, it's a premium. It is not necessarily 0:05:35.880 --> 0:05:39.840 pricing exactly what's happening, and so that is the big issue. 0:05:39.839 --> 0:05:41.440 But I completely agree, it's not like we're going to 0:05:41.440 --> 0:05:43.640 go back to the before times, but there is going 0:05:43.680 --> 0:05:46.400 to be this easy Can you just explain something real quickly. 0:05:46.400 --> 0:05:48.359 We've only got about forty twos. I mean there's different 0:05:48.400 --> 0:05:52.640 types of crewed, right, So the strategic SPR is that 0:05:52.800 --> 0:05:56.279 is the oil the crew that we use at the pump, no, 0:05:56.560 --> 0:05:58.840 And so that's the thing it's going to. We also 0:05:58.920 --> 0:06:01.560 need high refined new markets. We need refiners to be 0:06:01.560 --> 0:06:04.080 able to turn that into gasoline because they're not just 0:06:04.080 --> 0:06:06.000 giving out gassling. They're giving out crude and they're giving 0:06:06.000 --> 0:06:08.280 out sour crewd, which is well, we're not sure yet, 0:06:08.320 --> 0:06:10.720 but the first time, the first SPR when it was released, 0:06:10.760 --> 0:06:12.960 it was sour, which producers didn't want to buy because 0:06:12.960 --> 0:06:15.080 that's not the good type crew. They wanted sweet crude. 0:06:15.200 --> 0:06:16.480 So we need to see what type of crew they're 0:06:16.480 --> 0:06:17.840 gonna give us. You know, it's like when we were 0:06:17.920 --> 0:06:20.080 making a vaccine, like we were learning about so much. 0:06:20.120 --> 0:06:21.680 I think about how many times how long we've been 0:06:21.720 --> 0:06:23.920 covering these markets, right, But it's something like a crisis 0:06:24.080 --> 0:06:26.880 that you really understand the intricacies of a market for 0:06:27.000 --> 0:06:28.920 light sweet crewed or do you prefer sour crewed. I'm 0:06:28.960 --> 0:06:33.800 kind of a sour crude, can't you tell? All Right, Julia, 0:06:33.839 --> 0:06:36.120 thank you so much. Well appreciate Julia Fanzaris. She's oil 0:06:36.160 --> 0:06:38.440 markets reporter at Bloomberg News here and her Interactive broker 0:06:38.520 --> 0:06:40.920 studio wt I crewed right now down about six and 0:06:40.920 --> 0:06:44.800 a half percent, down over seven bucks on five cents 0:06:45.000 --> 0:06:48.719 a barrel. You're listening to Bloomberg Business Week with Carol 0:06:48.800 --> 0:06:53.200 Masser and Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. 0:06:53.520 --> 0:06:55.680 Hey listen. We often tap the world of sports for 0:06:55.720 --> 0:06:59.159 clues of leadership, business trends, investment trends, which takes us 0:06:59.200 --> 0:07:01.719 to this week's Bloomberg Business Week domestic cover story. It's 0:07:01.720 --> 0:07:05.400 all about NBA superstar Chris Paul. The cover says it 0:07:05.440 --> 0:07:08.440 all Chris Paul wants to win it all. This story 0:07:08.680 --> 0:07:12.360 is by Aaron Cohen and Joel Weber. Arian is a 0:07:12.440 --> 0:07:14.880 writer at Bloomberg Business which she joins us down the 0:07:14.880 --> 0:07:17.280 phone from Portland, Oregon. Joel Webber is editor at Bloomberg 0:07:17.280 --> 0:07:20.440 Business Week. He's with us in the Bloomberg Interactive Broker Studio. Joel, 0:07:20.440 --> 0:07:22.280 I want to start with the cover though, because I 0:07:22.320 --> 0:07:25.120 love this cover. This is the domestic cover story. Once again, 0:07:25.120 --> 0:07:27.600 it will be uh. It is available now on newsstands, 0:07:27.600 --> 0:07:30.400 on the Bloomberg and at Bloomberg dot com, Slash Business week, Um, 0:07:30.440 --> 0:07:34.040 how do we get to hear so? Chris Paul is 0:07:34.040 --> 0:07:38.200 someone that we've um watched on TV playing basketball for years. 0:07:38.280 --> 0:07:42.160 He has just an amazing on the court presence right 0:07:42.160 --> 0:07:45.880 now Phoenix Suns, where he's the point guard UM our 0:07:46.080 --> 0:07:50.720 top seed heading into the NBA playoffs. Uh. He has 0:07:50.760 --> 0:07:53.760 also done something that's pretty remarkable off the court, which 0:07:53.840 --> 0:07:57.160 is build this little bursioning Uh it's not even a little, 0:07:57.160 --> 0:08:00.960 it's huge, actually versioning business empire. And that was sort 0:08:00.960 --> 0:08:03.200 of what we were interested in it because you know, 0:08:03.280 --> 0:08:06.240 increasingly we've seen athletes be able to do this where 0:08:06.240 --> 0:08:09.280 they can sort of create an off the court empire, 0:08:09.600 --> 0:08:12.040 no longer waiting for retirement to do it. And Chris 0:08:12.080 --> 0:08:14.360 is sort of the embodiment of that. And he's got 0:08:14.360 --> 0:08:18.520 some pretty interesting mentors. Um. When in particular, uh, Arian, 0:08:18.720 --> 0:08:22.040 what did you learn about his approach to business when 0:08:22.280 --> 0:08:25.320 you got to talk to him? Yeah, Chris po is 0:08:25.320 --> 0:08:28.000 a really interesting guy. I really enjoyed getting to hang 0:08:28.000 --> 0:08:31.200 out with him a little bit. Unlike most of the 0:08:31.240 --> 0:08:34.200 retired athletes portfolios, when you kind of look at what 0:08:34.240 --> 0:08:36.720 they own, usually it's like restaurants and you know, some 0:08:37.360 --> 0:08:40.079 chain store somewhere. Um, you don't really get much of 0:08:40.120 --> 0:08:42.640 a sense of them and their interests. But um, with Chris, 0:08:42.679 --> 0:08:46.800 you really get a direct sense of what's in his refrigerator, 0:08:46.840 --> 0:08:49.280 what he's wearing on his wrist, what he's watching on TV, 0:08:49.920 --> 0:08:52.520 from his investments on. One of the first questions he 0:08:52.520 --> 0:08:55.800 asked when he's considering an investment is how does this 0:08:55.840 --> 0:08:58.800 company impact my life day to day? Which is not 0:08:58.920 --> 0:09:01.560 the question that most of sirts are asking. Uh. And 0:09:01.640 --> 0:09:04.320 so he just has fingers and everything. He has a 0:09:04.400 --> 0:09:08.240 large portfolio implant based foods, um, he has his own 0:09:08.280 --> 0:09:13.360 media company. He has some family and child oriented uh 0:09:13.679 --> 0:09:18.360 app that he owns parts of, and even like medication products. 0:09:18.360 --> 0:09:20.400 But he's just all over the place in it always 0:09:20.440 --> 0:09:24.640 directly connected a personal atists. Well, let's go, Joel. I 0:09:24.640 --> 0:09:26.920 want to go right to this mentor here, because you 0:09:26.960 --> 0:09:30.079 mentioned he's got a mentor and somebody who you got 0:09:30.080 --> 0:09:32.320 to speak to um our audience very familiar with him, 0:09:32.320 --> 0:09:36.200 Bob Iger. How did this relationship come about, Joel? So, 0:09:36.480 --> 0:09:38.960 Chris got treated to the l A clippers and number 0:09:39.000 --> 0:09:41.640 of years ago, and and I think it sort of 0:09:41.679 --> 0:09:44.400 coincided with a moment where he was also really interested 0:09:44.480 --> 0:09:47.200 in kind of taking his business game to the next level, 0:09:47.240 --> 0:09:49.880 and like, you do you just text the CEO, right, um, 0:09:49.960 --> 0:09:54.920 which was amazing insight about Chris. He basically learned like, 0:09:55.080 --> 0:09:57.600 if you text CEOs, um, nobody else is texting him. 0:09:57.640 --> 0:10:01.280 They text you, right except for annoying with Hilari exactly. 0:10:01.320 --> 0:10:04.680 So he reached out to Bob Iger and uh, Bob Iger, 0:10:04.720 --> 0:10:07.720 and he sort of kicked off a relationship that was started. 0:10:07.800 --> 0:10:09.720 You know. Basically, Chris was like, hey, I need a mentor, 0:10:09.760 --> 0:10:11.360 and Bob was like, yeah, I've heard I kind of 0:10:11.400 --> 0:10:14.880 heard that before. Um, and you're You're not the first 0:10:14.920 --> 0:10:16.760 person who's asked this, so I don't know if it 0:10:16.840 --> 0:10:20.400 was a brush off or not, but basically, uh, it's stuck. 0:10:20.679 --> 0:10:25.959 And Bob, who who I interviewed, has been genuinely impressed 0:10:26.000 --> 0:10:30.240 with with Chris's business acumen um, and what started as 0:10:30.320 --> 0:10:32.880 sort of a mentor relationship has actually just become a 0:10:32.920 --> 0:10:35.760 really close friendship and the two of them talk multiple 0:10:35.760 --> 0:10:38.440 times a day. Uh. Bob watches a lot of the 0:10:38.440 --> 0:10:41.720 basketball games. His sons are big fans, so it's it's 0:10:41.760 --> 0:10:44.160 pretty pretty cool. I did ask Bob if he had 0:10:44.200 --> 0:10:45.760 a Chris Paul Jersey and he said not, but his 0:10:45.840 --> 0:10:50.240 kids do what Yeah? Yeah, maybe would be a good 0:10:50.240 --> 0:10:54.360 gift together, A mentor would be I'm sure you know, 0:10:54.400 --> 0:10:57.600 if Chris wins the championship this year, you know, I'm 0:10:57.640 --> 0:11:01.360 sure Bob will will will you know, maybe I'll y 0:11:01.520 --> 0:11:03.280 for that. I know we talked about this story earlier, 0:11:03.280 --> 0:11:05.080 but I still what sticks with me from this column 0:11:05.080 --> 0:11:08.040 is but uh Iger said about we talked about jettisoning 0:11:08.080 --> 0:11:10.840 anything else discretionary from your life except for work and family, 0:11:11.000 --> 0:11:14.360 because there just isn't room for anything else. When either 0:11:14.360 --> 0:11:17.720 of these guys, whether it's Bob or um, you know, 0:11:17.800 --> 0:11:20.400 Chris Paul, this is going to have this kind of job. Hey, Arian, 0:11:20.679 --> 0:11:22.200 let me just come back to you, because there are 0:11:22.200 --> 0:11:25.880 a lot of athletes who get into investments, right successful ones. 0:11:26.400 --> 0:11:29.560 Uh Lebron has been, you know, on the cover of 0:11:29.600 --> 0:11:31.679 Business Week as well. What is it that stood out 0:11:31.720 --> 0:11:36.760 for you with Chris Paul? He is so personally involved 0:11:36.800 --> 0:11:39.600 in all of this, and his family is very personally 0:11:39.600 --> 0:11:41.880 involved in all of this. His brother c J. Handles 0:11:41.920 --> 0:11:44.800 a lot of his business ventures, and he's really hands 0:11:44.840 --> 0:11:47.679 picking what he does, which is very different from the 0:11:47.720 --> 0:11:49.839 model that other people have used, where they really sort 0:11:49.880 --> 0:11:53.200 of assemble a team to make good business decisions. Chris, 0:11:53.240 --> 0:11:56.120 I mean he spent ten years, you know, studying everything 0:11:56.160 --> 0:11:58.560 Bob Iger does so that he can really understand it 0:11:58.600 --> 0:12:00.440 and make his own decisions and kind of build his 0:12:00.480 --> 0:12:04.559 own empire. So arian a question that we talked about 0:12:04.600 --> 0:12:07.400 earlier in the day because we do feature in part 0:12:07.880 --> 0:12:11.079 of our editor's roundtable in our Bloomberg Business Week weekend show, 0:12:11.360 --> 0:12:15.640 which will be available starting on Saturday morning. Um, I 0:12:15.679 --> 0:12:17.840 wanted to talk a little bit about the actual investments 0:12:17.880 --> 0:12:20.199 that he's made because it's it's a really interesting group. 0:12:20.240 --> 0:12:22.679 You mentioned some of the plant based companies beyond meat, 0:12:22.760 --> 0:12:24.840 he was an investor in that, uh In, then the 0:12:24.880 --> 0:12:27.040 media company. But what is the common thread that runs 0:12:27.040 --> 0:12:30.559 through these companies? Yeah, you know, on the court, he 0:12:30.720 --> 0:12:33.800 has this amazing vision where he can see up close 0:12:33.920 --> 0:12:36.080 a play or a player and at the same time 0:12:36.160 --> 0:12:38.360 kind of zoom wide and see the whole court. And 0:12:38.360 --> 0:12:40.240 he does the same thing in his investing. He really 0:12:40.280 --> 0:12:42.960 invests end to end. So for example, in his plant 0:12:43.000 --> 0:12:47.760 based food portfolio, he's got a farm investment called Bowery Farms. 0:12:48.280 --> 0:12:51.720 He has a seaweed protein investment called Omarrow Foods, right 0:12:51.760 --> 0:12:53.640 at the beginning of the supply chain. Then you'll find 0:12:53.679 --> 0:12:58.040 him in supermarkets he's heavily invested in Beyond Meat and Coya, 0:12:58.120 --> 0:13:00.280 which is a protein during company. And then you see 0:13:00.360 --> 0:13:02.360 him at the end at the kind of delivery side 0:13:02.360 --> 0:13:05.440 of things, where he's invested in Roots Food Group, which 0:13:05.760 --> 0:13:09.920 they do at prepared meals, and another one called Go Cups, 0:13:10.840 --> 0:13:16.079 which is grocery delivery. Because his his angle um and 0:13:16.160 --> 0:13:19.080 his way of sort of encompassing the whole chain um 0:13:19.200 --> 0:13:22.280 is really quite a strong and notable strategy. Well, it's 0:13:22.280 --> 0:13:25.040 a great story. It's the domestic cover story of this 0:13:25.080 --> 0:13:28.599 week's edition at Bloomberg Business Week magazine, available now on 0:13:28.679 --> 0:13:30.840 news stands, on the Bloomberg and at Bloomberg dot com 0:13:30.840 --> 0:13:33.160 Slash business Week. A big thank you to Joe Webber, 0:13:33.240 --> 0:13:36.360 editor at Bloomberg Business Week, and Aaron Cohen, writer for 0:13:36.400 --> 0:13:39.200 Bloomberg Business Week, who joined us on the phone from Portland, Oregon. 0:13:39.559 --> 0:13:43.640 This is Bloomberg Business Week with Carol Messer and Bloomberg 0:13:43.679 --> 0:13:48.280 Quick Takes. Tim Stinovic on Bloomberg Radio. Yes, President Joe Biden, 0:13:48.679 --> 0:13:51.000 he had his second booster shot that was yesterday. He 0:13:51.040 --> 0:13:54.839 said it didn't hurt you know, every time I got one, 0:13:54.920 --> 0:13:56.360 I'm like, have you done it yet? Because I look 0:13:56.360 --> 0:13:59.000 away because I'm a chicken. So then they're like, everyone 0:13:59.040 --> 0:14:02.000 knows to look away when you're getting a shot. Are awful? 0:14:02.200 --> 0:14:03.680 All right? Well, we do know the C A C 0:14:03.800 --> 0:14:07.120 d C has recommended a fourth fiser and Madernak COVID 0:14:07.240 --> 0:14:11.360 vaccine for those fifty and older. And we've also seen 0:14:11.400 --> 0:14:15.240 some data about rises in COVID cas, especially among a 0:14:15.280 --> 0:14:18.760 younger population, particularly here in New York, even concentrated in Manhattan. 0:14:18.920 --> 0:14:21.080 Dr Chris Byra is director of the Center for Public 0:14:21.120 --> 0:14:23.720 Health and Human Rights at the Johns Hopkins Bloomberg School 0:14:23.760 --> 0:14:26.280 of Public Health. The Johns Hopkins Bloomberg School of Public 0:14:26.280 --> 0:14:28.600 Health is supported by Michael or Bloomberg, founder of Bloomberg 0:14:28.600 --> 0:14:31.760 GELPI and Bloomberg Philanthropies. Dr Biro, it's good to chat 0:14:31.760 --> 0:14:34.480 with you again. You know, it's so interesting because a 0:14:34.560 --> 0:14:36.400 lot of what I see on social media right now 0:14:36.400 --> 0:14:39.280 when it comes to the pandemic is people, uh, my 0:14:39.360 --> 0:14:43.800 friends uh and acquaintances testing positive once again. And it 0:14:43.880 --> 0:14:45.480 sort of feels like, you know, at least from a 0:14:45.520 --> 0:14:48.200 numbers perspective, we're kind of at that pre amicron place 0:14:48.720 --> 0:14:51.840 are that we were at, you know, back in December, 0:14:52.080 --> 0:14:56.560 and I'm wondering how we avoid another omicron surge in 0:14:56.600 --> 0:15:01.480 just a few weeks. We've been in a lull um 0:15:01.560 --> 0:15:04.880 and of course we had that severe o macron surge 0:15:04.960 --> 0:15:08.760 which then rapidly declined. That's what happens, and we've seen 0:15:08.800 --> 0:15:13.280 that many countries with a macron. But what's circulating now 0:15:13.440 --> 0:15:16.280 is the sub variant, the B a two sub variant 0:15:16.320 --> 0:15:19.560 of a macron, which, like the parent a macron, is 0:15:19.600 --> 0:15:23.440 a very infectious virus. It does seem to bypass immunity. 0:15:23.800 --> 0:15:28.120 There are more breakthrough infections with people who have been vaccinated. Uh, 0:15:28.160 --> 0:15:30.680 And of course the numbers are starting to creep up 0:15:30.680 --> 0:15:33.560 a bit. So we are worried about that. New York 0:15:33.800 --> 0:15:36.160 has been in the vanguard of a number of surges 0:15:36.200 --> 0:15:38.080 in the past. That's one way to describe it, the 0:15:38.160 --> 0:15:44.400 vanguard exactly. Story. But it's an international travel hub, of course, 0:15:44.400 --> 0:15:49.200 and it's connected to Europe. So we keep calling it 0:15:49.240 --> 0:15:51.200 a global pandemic that we're in because we're not out 0:15:51.240 --> 0:15:52.480 of it. We're not on the other side of it. 0:15:52.480 --> 0:15:53.760 And that's why, like if we ever say, oh, the 0:15:53.880 --> 0:15:55.120 end of the you know, we're on the other side 0:15:55.120 --> 0:15:58.480 of it. Everybody's like, where do you live? Because we're 0:15:58.480 --> 0:16:02.000 still in it. How do you see the rest of 0:16:02.000 --> 0:16:03.600 the year playing at Is there a point where we 0:16:03.600 --> 0:16:05.120 look back at you know, by the end of the 0:16:05.200 --> 0:16:07.960 year that we're saying, okay, it's endemic. You know, we're 0:16:08.000 --> 0:16:10.480 going to have some kind of universal vaccine. Okay, help 0:16:10.520 --> 0:16:13.880 me here. Yeah, well there are there are some encouraging 0:16:13.920 --> 0:16:16.120 things to say. And first of all, to say that 0:16:16.200 --> 0:16:18.880 for people who are boosted, and of course it's good 0:16:18.920 --> 0:16:21.680 news about the approval of the second boost or the 0:16:22.000 --> 0:16:26.480 fourth dose for people over age fifty um amicron itself 0:16:27.080 --> 0:16:31.360 had quite low rates of hospitalization and serious disease, and 0:16:31.520 --> 0:16:34.400 that's the same with the b A two um uh. 0:16:34.400 --> 0:16:37.640 It is really a problem. And for example, in Hong Kong, 0:16:37.680 --> 0:16:41.160 where we're seeing high death rates where you have elderly 0:16:41.280 --> 0:16:44.800 unvaccinated people, they were very slow to get the elderly 0:16:44.840 --> 0:16:48.720 population fully vaccinated there. Well, we're not expecting to see 0:16:48.800 --> 0:16:53.840 as much of that um same situation. However, boosting has 0:16:53.920 --> 0:16:57.560 been slow. People have not ramped up getting even that 0:16:57.760 --> 0:17:00.440 first booster dose, so we're only at about under a 0:17:00.520 --> 0:17:04.879 third of eligible adults being boosted. So the message, I 0:17:04.880 --> 0:17:08.560 think really is get boosted now. We need to blunt 0:17:08.720 --> 0:17:11.879 what is what is to come. The other reality is 0:17:11.960 --> 0:17:14.960 that what we've seen in a number of populations is 0:17:15.000 --> 0:17:20.760 that the natural immunity to previous uh COVID nineteen infections wane, 0:17:21.480 --> 0:17:24.359 and the model is will tell you that the waning 0:17:24.560 --> 0:17:27.000 of many people in the US who are not vaccinated 0:17:27.040 --> 0:17:30.000 but who've had COVID is going to really be around June. 0:17:30.520 --> 0:17:33.919 So the time to get boosted is now, before June 0:17:34.000 --> 0:17:38.640 and before what looks like the potential for another surge 0:17:38.800 --> 0:17:43.480 probably of infections much less hospitalization. Dr help our our 0:17:43.520 --> 0:17:46.200 listeners out. I got a text message from my mother 0:17:46.240 --> 0:17:49.160 in law yesterday asking if she should get boosted. She's 0:17:49.160 --> 0:17:52.800 over sixty five. Uh And I actually got the same 0:17:52.920 --> 0:17:54.760 asked then asked my parents if they were doing it. 0:17:54.760 --> 0:17:57.080 They're over sixty five. My mom text me back, she says, 0:17:57.720 --> 0:18:00.840 Dad wants to I'm on the fence about it. What's 0:18:00.840 --> 0:18:03.440 the guidance doesn't seem to totally clear here. It was 0:18:03.560 --> 0:18:05.760 very clear with the first booster, but with the second 0:18:05.800 --> 0:18:10.240 booster is not totally clear. Well. Uh so the CDC 0:18:10.440 --> 0:18:14.280 guidance um is that it's it's really and and this, 0:18:14.400 --> 0:18:16.879 by the way, is based on the data from Israel. 0:18:17.640 --> 0:18:20.920 Most of this decision has been driven by reports from 0:18:20.960 --> 0:18:26.280 Israel about how fourth boosters were reducing hospitalizations and serious 0:18:26.320 --> 0:18:30.399 disease in older people and people with chronic conditions. So 0:18:31.280 --> 0:18:34.080 really the window is five to six months. If you 0:18:34.200 --> 0:18:37.879 are more than five months out from dose three, UH, 0:18:37.960 --> 0:18:41.400 it is time to consider a booster. H. If you 0:18:41.520 --> 0:18:45.240 are fifty and older, and particularly if you have any 0:18:45.320 --> 0:18:48.520 of the chronic or underlying conditions that are associated with 0:18:48.720 --> 0:18:54.080 poor outcomes from COVID, that time is now um and UH. 0:18:54.119 --> 0:18:58.199 And it's particularly important of course for people who have 0:18:58.320 --> 0:19:01.359 somebody I you know, compromised in the home, also people 0:19:01.359 --> 0:19:04.160 living with kids under five, because as we know, they're 0:19:04.160 --> 0:19:08.320 not eligible yet. Well, listen, we really appreciate your thoughts 0:19:08.320 --> 0:19:09.919 on all of this, because this is certainly top of 0:19:09.960 --> 0:19:12.399 mind amid everything else that's going on in the world. 0:19:12.720 --> 0:19:15.120 We're trying to stay on top of this, certainly for 0:19:15.160 --> 0:19:18.359 our listeners and viewers. Dr Chris Buyer. He is director 0:19:18.359 --> 0:19:20.159 of the Center for Public Health and Human Rights at 0:19:20.200 --> 0:19:23.320 Johns Hopkins Bloomberg School of Public Health. Of course, supported 0:19:23.320 --> 0:19:26.400 by Michael R. Bloomberg, founder of Bloomberg LP and Bloomberg Philanthropies. 0:19:26.560 --> 0:19:28.600 He joined us on the phone from Baltimore. One thing 0:19:28.640 --> 0:19:31.320 that's five months out, he said, for the booster, after 0:19:31.359 --> 0:19:34.560 the after the third shot, and I think you know 0:19:34.560 --> 0:19:36.440 it all comes it's it's all happening at a time 0:19:36.480 --> 0:19:39.080 when we're seeing, you know, increasing numbers of people not 0:19:39.119 --> 0:19:43.240 wearing masks indoors, and in fact New York City telling 0:19:43.280 --> 0:19:46.239 young people to wear masks indoors despite the fact that 0:19:46.960 --> 0:19:49.640 the levels here are still remained long we've been masks off, 0:19:49.640 --> 0:19:51.200 and I've had colleagues given coming to me like I think, 0:19:51.200 --> 0:19:53.119 can I throw my mask back on? And I've been 0:19:53.320 --> 0:19:55.600 kind of wearing masks all right. You're listening to Bloomberg 0:19:55.640 --> 0:19:59.280 Business Week right here on Bloomberg Radio. You're listening to 0:19:59.400 --> 0:20:03.359 Bloomberg Business Week with Carol Messer and Bloomberg Quick Takes 0:20:03.480 --> 0:20:07.520 Tim Stinovic on Bloomberg Radio. So among our most read 0:20:07.520 --> 0:20:10.439 stories on the Bloomberg throughout the day has been on 0:20:10.480 --> 0:20:13.719 Amazon renewing it's co branded credit card deal with JPMorgan 0:20:13.760 --> 0:20:16.760 and Visa. Tim bottom line, it is about bottom line. 0:20:16.800 --> 0:20:18.479