WEBVTT - J&J Shot Increases Hesitancy on Clot Risk

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<v Speaker 1>This is Bloomberg Business Week. I'm Carol Masser and I'm

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<v Speaker 1>Bloomberg Quick Takes Tim Stanovk. We're here every day bringing

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<v Speaker 1>pm Eastern Time on Bloomberg Radio or watch us on

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<v Speaker 1>YouTube search Bloomberg Global News. Let's talk a little bit

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<v Speaker 1>about what's going on with the visor, with the Visor,

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<v Speaker 1>with the virus um Visor and BioNTech. They do expect

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<v Speaker 1>to deliver more vaccines to the European Union this quarter

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<v Speaker 1>than currently targeted. We're seeing, you know, some things go

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<v Speaker 1>on when it comes to different vaccines and getting them

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<v Speaker 1>rolled out, rolled out, Denmark becoming the first EU country

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<v Speaker 1>to drop astro zenneck astro Zeneca's vaccine. So it's kind

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<v Speaker 1>of a back and forth here. Yeah, And as far

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<v Speaker 1>as those numbers, we repeat them each and every day

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<v Speaker 1>and they change globally cases of sur past a hundred

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<v Speaker 1>thirty seven million death six seating two point nine six million,

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<v Speaker 1>but vaccines continuing to tick up more than million shots

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<v Speaker 1>given worldwide. You and I each getting one, I know,

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<v Speaker 1>well my second one at the end of the week. Oh,

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<v Speaker 1>I'm so glad to hear Friday Friday. Hey, let's get

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<v Speaker 1>our daily check on COVID and the vaccine roll out.

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<v Speaker 1>Great to have back with us, Alyssa wraps she see

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<v Speaker 1>of the healthcare solutions company, Surgical Solutions. She's back with

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<v Speaker 1>us on the phone from Deerfield, Illinois. Alyssa, nice to

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<v Speaker 1>have you here with him and me again. How are

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<v Speaker 1>you pleasure to be in touch with you both again?

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<v Speaker 1>And I too? Am one shot in different from the

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<v Speaker 1>last time. We feel is different? He doesn't feel different totally. Well, okay,

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<v Speaker 1>so tell us what you're hearing, especially with your healthcare workers. UM,

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<v Speaker 1>I am curious because of the J and J vaccine,

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<v Speaker 1>there's already a fair amount of vaccine hesitancy out there.

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<v Speaker 1>How does this make that potentially worse? There's no question

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<v Speaker 1>that makes it worse. And I agree with Nate Silver

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<v Speaker 1>of five thirty eight Fame that the statistician that that

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<v Speaker 1>that he's worried that hesitancy you'll get more people kill

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<v Speaker 1>than actually getting the vaccine, because sticks out of cases

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<v Speaker 1>out of seven million is by no means statistically significant.

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<v Speaker 1>As terrible as it is that anyone had an adverse reaction,

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<v Speaker 1>but I am concerned because J and J the one

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<v Speaker 1>and done was such a convenient thing to do and

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<v Speaker 1>such a good thing to do for many healthcare workers

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<v Speaker 1>and others alike, and college students. I know a lot

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<v Speaker 1>of college kids. That's how they got it. Yeah, not

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<v Speaker 1>also for the people who are the elderly, who have

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<v Speaker 1>potentially more depressed immune systems, it was not necessarily as

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<v Speaker 1>rough or lethal. So it's really unfortunate. Obviously, I don't

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<v Speaker 1>know if I agree with the decision to pull it

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<v Speaker 1>in order Nate silver it is what it is. It

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<v Speaker 1>does increase hesitancy. The only silver lining in spite of

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<v Speaker 1>that is that there's been such improvement on distribution that

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<v Speaker 1>I've talked about with you all before and how challenging

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<v Speaker 1>it's been, and finally we're seeing more vaccination appointments at

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<v Speaker 1>Walgreens and cvs and Sans clubs, etcetera, just like we

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<v Speaker 1>had forecasted that would be a great solve. And so

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<v Speaker 1>at least there's more There are more places to get

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<v Speaker 1>vaccines if and when you already more being produced. So

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<v Speaker 1>even if it's limited now to temporarily exclude J and J,

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<v Speaker 1>at least there are more places you can get it

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<v Speaker 1>if you want. Is there any silver lining that that

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<v Speaker 1>that we can look at in the sense that this

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<v Speaker 1>is not just a story about J n J, but

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<v Speaker 1>it's also a story about Fiser, BioNTech and Maderna, given

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<v Speaker 1>that so many of those shots have been given and

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<v Speaker 1>there haven't been those reports of those serious adverse reactions

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<v Speaker 1>and tim there and efficacy once their minister, I'd take

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<v Speaker 1>it one step further and say, these are cadillacts of

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<v Speaker 1>vaccines and if you can get them, you're incredibly fortunate.

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<v Speaker 1>Go do it, and and you know you're already getting

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<v Speaker 1>almost eight percent immunity with the Fiser shot after shot one,

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<v Speaker 1>which is a real big deal. To your point, it

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<v Speaker 1>feels good to be vaccinated, it feels good to be freer.

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<v Speaker 1>So I do think that's really really a positive look.

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<v Speaker 1>I gotta say, I'm just like nodding in agreement here.

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<v Speaker 1>I was such a relief for me to, you know,

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<v Speaker 1>close to ten days ago at this point, to drive

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<v Speaker 1>out of that CVS parking lot with that band aid on.

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<v Speaker 1>It felt like a way it had been lifted off.

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<v Speaker 1>You know, we're in this pandemic and like this is

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<v Speaker 1>the first step and most important step to get out

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<v Speaker 1>of it. Well. And I'm going to add on to

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<v Speaker 1>that that this past week that are a week ago,

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<v Speaker 1>we had a little scared at our home and it

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<v Speaker 1>was a false positive, but nonetheless we went through the

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<v Speaker 1>quarantine again and my daughter was requested in her bedroom.

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<v Speaker 1>But I have to say my husband was fully vaccinated.

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<v Speaker 1>I had one, she had none. And we're thinking, oh

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<v Speaker 1>my god, we got this far, and we were really

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<v Speaker 1>stressed out about it and grateful that we ended up

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<v Speaker 1>all testing negative and everything's fine, but it's a reminder

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<v Speaker 1>to me all of a sudden, I said in my head,

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<v Speaker 1>I'm so glad I've got the vaccine. Can't wait to

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<v Speaker 1>get the second one. Well, and it's really amazing that,

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<v Speaker 1>you know, we are very fortunate still to feel this way.

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<v Speaker 1>Only twenty two percent of the country is fully vaccinated

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<v Speaker 1>and thirty six percent or one shot in as of

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<v Speaker 1>yesterday for the CDC, and so we're still less of

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<v Speaker 1>the population those of us that can jump for joy

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<v Speaker 1>and feel like we are at least, you know, good

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<v Speaker 1>to go for this realm. So I feel really bullish

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<v Speaker 1>that everyone who can get it was eager to get it.

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<v Speaker 1>Should And if it's fives room and Aaron, it takes

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<v Speaker 1>two shots versus one for at least a period of time,

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<v Speaker 1>so be it due to two and just keep going. Well, listen,

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<v Speaker 1>how's this playing out when it comes to to your

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<v Speaker 1>staff is on the front lines? Because we have talked

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<v Speaker 1>to you in the past about vaccine hesitancy among frontline workers,

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<v Speaker 1>among healthcare workers, but we've also heard about data that

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<v Speaker 1>show that when more people do get vaccinated within social circles,

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<v Speaker 1>people start to get on board if they were hesitant

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<v Speaker 1>in the beginning. How's it playing out for your employees? Um,

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<v Speaker 1>we have, as you would imagine, it's an astute question.

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<v Speaker 1>We have had pockets of perseverance and pockets of hesitancy.

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<v Speaker 1>So some of the hesitancy has not surprisingly detailed with

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<v Speaker 1>states or geographies that are more hesitant in general because

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<v Speaker 1>of their political persuasions and and where we've seen there

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<v Speaker 1>being a lot of administration of the vaccine. Like New

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<v Speaker 1>York City people are much less hesitant and much higher

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<v Speaker 1>vaccination rates even within our own firm. I think that

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<v Speaker 1>what's interesting is is that how Corona continues to play

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<v Speaker 1>out is also really geo focused. As factually said, it

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<v Speaker 1>might be all along. We've got hospitals in Michigan that

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<v Speaker 1>are already teeming with COVID patients again fearing the second

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<v Speaker 1>variant is here. And there are other places that are

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<v Speaker 1>like empty with COVID right now, which just isn't happening

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<v Speaker 1>right now, and it might be too strong, but but

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<v Speaker 1>very low incidents of COVID patients. Well, it's gonna be varied,

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<v Speaker 1>It's going to be endemic, right This is this is

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<v Speaker 1>part of our world. I mean, I was talking to

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<v Speaker 1>a bunch of CEOs this morning for a Bloomberg event

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<v Speaker 1>and they're like, we need to be ready for the

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<v Speaker 1>next one because it's coming. I mean, how do you

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<v Speaker 1>guys see what are the conversations, Unlissa, you guys are

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<v Speaker 1>having around that conversations are get the first round of

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<v Speaker 1>vaccinations pera, proferably with the efficacy, because then to tweak

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<v Speaker 1>around the margins for variances with boosters is much easier

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<v Speaker 1>than if you're starting from phase zero, and if you

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<v Speaker 1>in and and of course if you have already gotten vaccinated,

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<v Speaker 1>even if it is a variant that isn't perfectly uh protected,

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<v Speaker 1>maybe it'll be a diminished immunal response. So you just

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<v Speaker 1>have to hope that this first round of vaccinations is

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<v Speaker 1>laying the foundation, which I actually believe it is. Still

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<v Speaker 1>thinking about J and J here even though this happened,

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<v Speaker 1>you know, at this point close to thirty six hours ago,

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<v Speaker 1>do you think this is the end of the J

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<v Speaker 1>and J shot? Even if it if it, you don't, Okay,

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<v Speaker 1>So even if it don't, I'm not I have no

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<v Speaker 1>insider information on James Dan. I'm not a board member.

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<v Speaker 1>But they've administered six point a million doses and there

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<v Speaker 1>were six cases and they were all amongst women who

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<v Speaker 1>experience these low levels of blood platelets um in combination

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<v Speaker 1>with their vaccinations. So do I think there will be

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<v Speaker 1>necessarily additional screens and flags when you should not necessarily

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<v Speaker 1>get the J and J shot. Sure, but it's a

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<v Speaker 1>it's a blood clot, you know, the cerebral venice sinus

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<v Speaker 1>thrombosis c v s T, which hopefully they can research

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<v Speaker 1>further and help screen better for the patients who would

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<v Speaker 1>be a risk, or tweet the vaccine to not cause

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<v Speaker 1>that response. But again I do agree with Nate Silver,

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<v Speaker 1>this is unfortunately statistically insignificant. And you know, the risk

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<v Speaker 1>of getting COVID and having it newly adverse health reaction

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<v Speaker 1>is higher than the risk of having an adverse reaction

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<v Speaker 1>from J and J Lettle on anything else. So but

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<v Speaker 1>when I and when I say and, I don't mean

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<v Speaker 1>that it will be permanently pulled or suspended. What I

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<v Speaker 1>mean is, even if it does get back to the

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<v Speaker 1>point where the agencies are recommending that it be given

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<v Speaker 1>in States, is there a chance that that ship sailed

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<v Speaker 1>when the agency has made this decision to make this

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<v Speaker 1>recommendation and it ultimately lead to people saying, Okay, well

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<v Speaker 1>no thanks to the to the J and J. Instead,

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<v Speaker 1>I'm going to go with the MR and A shots

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<v Speaker 1>It could, it could any other reality is we also

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<v Speaker 1>don't know what else is in the on the horizon

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<v Speaker 1>to be for emergency approval. I know Astrosonica on others

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<v Speaker 1>that have been produced globly are not popular or used

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<v Speaker 1>here yet, but there will probably still be additional innovations

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<v Speaker 1>yet that can continue to protect Americans from COVID nineteen

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<v Speaker 1>and this variant or others. So I'm I'm still going

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<v Speaker 1>to bet on the technology and the innovators. It's just

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<v Speaker 1>how I'm wired and what I believe in. But I

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<v Speaker 1>do think that, you know, it's it's a tough position

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<v Speaker 1>to be in for j J. I don't think it

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<v Speaker 1>will be the last we see of their vaccine. But

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<v Speaker 1>even so, whether it is or isn't, fortunately we have

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<v Speaker 1>enough of the others being produced and so much more

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<v Speaker 1>widespread distribution that really, you know, if people want to

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<v Speaker 1>be getting these vaccines Aprile after April nineteen, which we

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<v Speaker 1>obviously hope they do, they should have no challenge doing so.

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<v Speaker 1>There are some states that are have much higher stats

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<v Speaker 1>than the national averages I've given you fully vaccinated some

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<v Speaker 1>states anyone over sixteen is be knowledgeable for a long time.

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<v Speaker 1>Less populous states, But there are states that are closer

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<v Speaker 1>to herd immunity than the country as a whole. So

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<v Speaker 1>let's all get there as quickly as we can. How

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<v Speaker 1>important is it all that we all get quickly globally,

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<v Speaker 1>get there quickly globally ALYSSA in order to really getting

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<v Speaker 1>ahead of this and beyond it. I think economically it's

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<v Speaker 1>absolutely crucial, and I think pragmatically it's also really important.

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<v Speaker 1>We live in a global marketplace and a global business enterprise,

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<v Speaker 1>and the phony and false yet real. I guess that's

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<v Speaker 1>anoxy more on walls we've put up in this in

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<v Speaker 1>this last year and a half in terms of freedom

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<v Speaker 1>of movement internationally have real consequence. I haven't been able

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<v Speaker 1>to get my parent from France. On a very personal note,

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<v Speaker 1>I have friends who are not being able to see

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<v Speaker 1>loved ones with the ease in Europe, though, we need

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<v Speaker 1>a solve globally for these vaccination schedules so that we

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<v Speaker 1>can begin that freedom of movement and goods more easily,

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<v Speaker 1>absolutely as soon as possible. It will be best for

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<v Speaker 1>the global economy. Otherwise, the people negatively impact in the

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<v Speaker 1>country's negatively impact by this are going to get even

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<v Speaker 1>more acutely, you know, impacted economically. We listen. We always

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<v Speaker 1>like to check in with you about the health of

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<v Speaker 1>the business. Speaking of economics, just give us an update

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<v Speaker 1>about about where you are worth with surgical solutions and

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<v Speaker 1>also what you're seeing in the healthcare industry right now

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<v Speaker 1>as it weather is more than a year of the pandemic. Absolutely,

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<v Speaker 1>so March versus March, we were actually what well we'll

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<v Speaker 1>call the in March twenty nine, even more poignantly, we

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<v Speaker 1>had seen a nice material jump in terms of same

0:10:53.200 --> 0:10:57.160
<v Speaker 1>store growth, meaning elective surgeries were back, optings were operating

0:10:57.240 --> 0:10:59.240
<v Speaker 1>at the levels we would want them to be to

0:10:59.320 --> 0:11:01.719
<v Speaker 1>be considered have recovered. Not again, that's not even and

0:11:01.800 --> 0:11:03.880
<v Speaker 1>that's not everywhere, but that is, by and large, it

0:11:03.960 --> 0:11:07.600
<v Speaker 1>was a very strong March. Things like the major global

0:11:08.000 --> 0:11:11.199
<v Speaker 1>freeze in texts, the major freeze in Texas, the winter storms,

0:11:11.320 --> 0:11:15.400
<v Speaker 1>Arctic events, those that did depressed electri surgery volumes. In January,

0:11:15.480 --> 0:11:17.280
<v Speaker 1>there it seems to have been a recovery. March seemed

0:11:17.480 --> 0:11:20.720
<v Speaker 1>quote quote quote unquote back to normal. But you know,

0:11:20.800 --> 0:11:23.960
<v Speaker 1>hospitals are still going to end up likely losing as

0:11:24.000 --> 0:11:26.680
<v Speaker 1>a whole fifty three billion this year. That's fifty three

0:11:26.720 --> 0:11:29.720
<v Speaker 1>b in a best case scenario in this country, because

0:11:29.800 --> 0:11:34.000
<v Speaker 1>it's been so expensive to support all of the COVID

0:11:34.040 --> 0:11:38.160
<v Speaker 1>nineteen pandemic related healthcare needs. And so the good news

0:11:38.200 --> 0:11:40.679
<v Speaker 1>is the Care's Act is helping keep our healthcare system

0:11:40.720 --> 0:11:43.240
<v Speaker 1>in the Black. The better news is is that you know,

0:11:43.320 --> 0:11:46.720
<v Speaker 1>missesses some other of invention and people are truly learning

0:11:46.720 --> 0:11:49.960
<v Speaker 1>to operate as lenly as they possibly can. But it's

0:11:50.080 --> 0:11:52.960
<v Speaker 1>it's gonna be. I think Spotty will have strong months

0:11:53.000 --> 0:11:54.760
<v Speaker 1>like March like we just did as a company, and

0:11:54.800 --> 0:11:56.880
<v Speaker 1>I think in healthcare, and then we'll also have probably

0:11:56.920 --> 0:11:59.960
<v Speaker 1>some dips if and when that those variants take us

0:12:00.120 --> 0:12:02.560
<v Speaker 1>urge and we see that there are places that keep

0:12:02.559 --> 0:12:04.880
<v Speaker 1>popping up, like I know Michigan is right now teaming

0:12:04.880 --> 0:12:07.800
<v Speaker 1>with Covidation. Yeah, it's been a long year, long thirteen

0:12:07.800 --> 0:12:11.080
<v Speaker 1>months of somebody reminded Lissa, and you have been so

0:12:11.200 --> 0:12:13.199
<v Speaker 1>kind to always find time for us and just keep

0:12:13.240 --> 0:12:14.760
<v Speaker 1>us up to date on what you and your team

0:12:14.760 --> 0:12:17.240
<v Speaker 1>are seeing. So thank you for us. Glad you're still

0:12:17.280 --> 0:12:19.720
<v Speaker 1>doing okay and your team is doing it doing wells

0:12:20.160 --> 0:12:22.920
<v Speaker 1>as well. Lista thank you. Lessen Wrap, CEO of the

0:12:22.920 --> 0:12:28.400
<v Speaker 1>healthcare solutions company Surgical Solutions, once again joining us from Deerfield, Illinois.

0:12:28.440 --> 0:12:32.439
<v Speaker 1>This is Bloomberg Business Week with Carol Messer and Bloomberg

0:12:32.520 --> 0:12:36.760
<v Speaker 1>Quick Takes Tim Stinovich from Bloomberg Radio. Well. This week's

0:12:36.800 --> 0:12:39.200
<v Speaker 1>cover story the new issue of Bloomberg Business Week magazine,

0:12:39.200 --> 0:12:42.280
<v Speaker 1>which will be out on newsstands later this week as

0:12:42.320 --> 0:12:44.880
<v Speaker 1>well as online and on the Bloomberg terminal, is about

0:12:44.880 --> 0:12:47.839
<v Speaker 1>a twenty three year old programmer, Tim who is keeping

0:12:47.920 --> 0:12:51.840
<v Speaker 1>American extremists online. Yeah, his name is Nick Limm, and

0:12:51.840 --> 0:12:55.000
<v Speaker 1>he provides tech support to US networks of white nationalists

0:12:55.000 --> 0:12:58.080
<v Speaker 1>and conspiracy theorists that have been banned by the likes

0:12:58.120 --> 0:13:01.440
<v Speaker 1>of Amazon. Joining us now is Joel Webber, editor Bloomberg

0:13:01.440 --> 0:13:03.680
<v Speaker 1>Business Week, joining us on the access line from Brooklyn.

0:13:03.720 --> 0:13:06.840
<v Speaker 1>And William Turton, cybersecurity reporter for Bloomberg News, joining us

0:13:06.880 --> 0:13:10.800
<v Speaker 1>on the phone from New York City. Joel, William this

0:13:10.880 --> 0:13:15.640
<v Speaker 1>is just a fascinating story. It's technology, it's a it's

0:13:15.679 --> 0:13:18.440
<v Speaker 1>about free speech, and it's it's also about this this

0:13:18.520 --> 0:13:22.480
<v Speaker 1>twenty three year old Joel um who is Nick lamb

0:13:24.280 --> 0:13:28.480
<v Speaker 1>So Nick lay Actually, yeah, we'll let Turtain go with

0:13:28.520 --> 0:13:31.959
<v Speaker 1>that one. No, No, Bill is your you did great story,

0:13:32.040 --> 0:13:35.000
<v Speaker 1>Go ahead and take it away. Who's Nickolin. Nick lam

0:13:35.120 --> 0:13:37.120
<v Speaker 1>is the CEO and founder of von Wa Tech, which

0:13:37.200 --> 0:13:41.280
<v Speaker 1>is a technology startup that's head quartered in Vancouver, Washington,

0:13:41.880 --> 0:13:44.520
<v Speaker 1>and it provides a kind of a specialized set of

0:13:44.559 --> 0:13:47.240
<v Speaker 1>web services that are key to keeping websites online. Now,

0:13:47.480 --> 0:13:49.360
<v Speaker 1>you know the websites that we kind of mentioned here,

0:13:49.520 --> 0:13:52.200
<v Speaker 1>Nick doesn't actually host them, but he provides an essential

0:13:52.240 --> 0:14:02.240
<v Speaker 1>service keeps them online. Significant about that is the context

0:14:02.440 --> 0:14:06.600
<v Speaker 1>that the world has found itself in since UM January

0:14:06.679 --> 0:14:09.800
<v Speaker 1>six right, and what we what what the U s

0:14:10.040 --> 0:14:13.720
<v Speaker 1>UM experience then and the aftermath of it UM as

0:14:14.240 --> 0:14:19.000
<v Speaker 1>a little bit more attention was was paid to where

0:14:19.040 --> 0:14:25.240
<v Speaker 1>infrastructure internet infrastructure lies and what we saw afterwards UM

0:14:25.600 --> 0:14:27.440
<v Speaker 1>was that you know, the a ws is of the

0:14:27.440 --> 0:14:31.480
<v Speaker 1>world did a little bit closer look and basically kicked

0:14:31.520 --> 0:14:34.640
<v Speaker 1>a lot of people off their products. So where Nick

0:14:34.720 --> 0:14:37.000
<v Speaker 1>Limb fits into all of this is that he's basically

0:14:37.600 --> 0:14:41.680
<v Speaker 1>a service provider of last resort. And and so h

0:14:41.840 --> 0:14:45.440
<v Speaker 1>William to talk us more about like how Nick lam

0:14:45.760 --> 0:14:48.960
<v Speaker 1>became became that and why he why he feels that

0:14:48.960 --> 0:14:54.320
<v Speaker 1>that's important. Yeah, I mean you're talking earlier than it's

0:14:54.320 --> 0:14:56.280
<v Speaker 1>a story about technology and free speech, but it's also

0:14:56.360 --> 0:15:00.400
<v Speaker 1>kind of a story about the island. Nick is someone who,

0:15:00.440 --> 0:15:03.240
<v Speaker 1>you know, according to people I spoke to, is technically skilled.

0:15:03.560 --> 0:15:07.280
<v Speaker 1>He is actually proficient in providing these services and has

0:15:07.280 --> 0:15:09.600
<v Speaker 1>been doing it from a very young age actually, But

0:15:10.080 --> 0:15:13.080
<v Speaker 1>you know, to him, I mean he kind of stubbed

0:15:13.160 --> 0:15:16.320
<v Speaker 1>up his ideology to me as if it's legal in

0:15:16.360 --> 0:15:19.360
<v Speaker 1>the US, I don't care um. And you know, at

0:15:19.360 --> 0:15:23.280
<v Speaker 1>one point he told me when he uh offered free

0:15:23.280 --> 0:15:26.400
<v Speaker 1>services to Andrew England, who runs the white nationalist websites

0:15:26.480 --> 0:15:30.280
<v Speaker 1>Daily Stormer, that raised his profile and made him famous.

0:15:30.320 --> 0:15:34.640
<v Speaker 1>So you know, Nick would care professed to care about

0:15:34.640 --> 0:15:37.280
<v Speaker 1>free speech and providing a platform to those who have

0:15:37.320 --> 0:15:39.640
<v Speaker 1>been centered by a big tech then he would also say,

0:15:39.640 --> 0:15:42.360
<v Speaker 1>you know, as long as pep, I don't care well.

0:15:42.640 --> 0:15:46.040
<v Speaker 1>And who are some of his clients, So you know,

0:15:46.160 --> 0:15:48.200
<v Speaker 1>the most important client of his and one that he

0:15:48.240 --> 0:15:50.760
<v Speaker 1>has actually a very close relationship with his which just

0:15:50.840 --> 0:15:54.000
<v Speaker 1>a home of Q and on um. It's where Q

0:15:54.120 --> 0:15:56.640
<v Speaker 1>and on posted and and you know the people who

0:15:56.720 --> 0:16:00.440
<v Speaker 1>run that website are widely speculated to be Q and

0:16:00.520 --> 0:16:03.520
<v Speaker 1>Nick even went to Japan with those people to celebrate

0:16:03.560 --> 0:16:05.480
<v Speaker 1>the watch of the site. And and Nick was integral

0:16:05.520 --> 0:16:08.200
<v Speaker 1>to bringing this site back because cloud Flaer took the

0:16:08.240 --> 0:16:12.160
<v Speaker 1>site offline after multiple Matt shooters have posted their manifestos

0:16:12.200 --> 0:16:15.560
<v Speaker 1>on and they needed a replacement for cloud player. Enter

0:16:15.800 --> 0:16:18.120
<v Speaker 1>Nick Limb. He's the one who kind of revives the

0:16:18.160 --> 0:16:20.640
<v Speaker 1>site and is able to keep it online during you know,

0:16:20.680 --> 0:16:22.960
<v Speaker 1>the peak of Q and on and to this day.

0:16:24.400 --> 0:16:26.400
<v Speaker 1>So you know what's interesting to William. I mean, there's

0:16:26.440 --> 0:16:29.720
<v Speaker 1>so many aspects to this story that are fascinating and

0:16:29.800 --> 0:16:32.280
<v Speaker 1>you just want to know more about this guy that's

0:16:32.320 --> 0:16:36.880
<v Speaker 1>behind us this year old But at heart he's an entrepreneur,

0:16:37.200 --> 0:16:39.520
<v Speaker 1>right who just it sounds like I wanted to start

0:16:39.520 --> 0:16:42.120
<v Speaker 1>a business. But at the same time he's allowing these

0:16:42.160 --> 0:16:45.440
<v Speaker 1>extremists who are getting kicked off. You know, the established

0:16:45.480 --> 0:16:49.160
<v Speaker 1>programs are platforms to continue to kind of go about

0:16:49.200 --> 0:16:55.040
<v Speaker 1>their business, right, But but I think with Nick that's

0:16:55.120 --> 0:16:58.200
<v Speaker 1>kind of the whole point. I mean, he actively speaks

0:16:58.240 --> 0:17:00.840
<v Speaker 1>out these clients. And you know, Nick tried to clean

0:17:00.880 --> 0:17:02.600
<v Speaker 1>to us that he has actually thousands of clients, but

0:17:02.640 --> 0:17:05.280
<v Speaker 1>in reality has a small handful of clients and and

0:17:05.320 --> 0:17:08.160
<v Speaker 1>they are these kind of fringe right wing web sites.

0:17:09.600 --> 0:17:14.320
<v Speaker 1>So well, William, you you actually went to Washington, Vancouver, Washington,

0:17:14.359 --> 0:17:17.840
<v Speaker 1>which is just outside my hometown of Portland, Oregon, in

0:17:17.880 --> 0:17:20.600
<v Speaker 1>the fall actually, so before all the events of January

0:17:20.680 --> 0:17:23.240
<v Speaker 1>went down, Um talk to us about what it was

0:17:23.280 --> 0:17:29.240
<v Speaker 1>like to to visit him, So you know, he actually

0:17:29.280 --> 0:17:31.400
<v Speaker 1>you know, he split his time between there and Nevada,

0:17:31.440 --> 0:17:33.800
<v Speaker 1>where he lives, or Arizona rather where he lives in

0:17:33.880 --> 0:17:38.359
<v Speaker 1>his Bond's condo. But but the Vonda Tech headquarters in

0:17:38.440 --> 0:17:41.040
<v Speaker 1>Vancouver he rents out to some of his friends from

0:17:41.080 --> 0:17:43.159
<v Speaker 1>high school. Um. You know, when I walked in, I

0:17:43.200 --> 0:17:45.280
<v Speaker 1>looked on the table, I saw, you know, McDonald's spot

0:17:45.600 --> 0:17:48.840
<v Speaker 1>fries and and has joints everywhere. In the backyard, there's

0:17:49.160 --> 0:17:52.480
<v Speaker 1>weightlifting equipment, a shed full of servers that are mining

0:17:52.520 --> 0:17:56.399
<v Speaker 1>cryptocurrencies and like four bonds. Um. So you know, they

0:17:56.480 --> 0:18:00.119
<v Speaker 1>nicknamed the House of Dancer dam um. But but it

0:18:00.240 --> 0:18:04.439
<v Speaker 1>is also the registered headquarters of this company. And um,

0:18:04.480 --> 0:18:07.960
<v Speaker 1>you know, I was sort of surprised. You know, I

0:18:08.000 --> 0:18:11.920
<v Speaker 1>wasn't expecting much, um, but I was still kind of surprised,

0:18:12.640 --> 0:18:15.840
<v Speaker 1>just the assemblance to a college dorm room. Um, and

0:18:15.960 --> 0:18:18.399
<v Speaker 1>especially because Nick had initially told me that actually, you know,

0:18:18.480 --> 0:18:21.480
<v Speaker 1>he has offices and sometimes his employees go to it.

0:18:21.520 --> 0:18:25.520
<v Speaker 1>Turns out wasn't it his grandparents house though too. That's

0:18:25.600 --> 0:18:28.359
<v Speaker 1>right according to state records. I look at the house

0:18:28.560 --> 0:18:31.679
<v Speaker 1>was was gifted by his grandparent. What was his upbringing like?

0:18:31.880 --> 0:18:35.240
<v Speaker 1>Because he sort of has this image of or portrayed

0:18:35.600 --> 0:18:39.080
<v Speaker 1>you've conveyed this image of growing up without money. But

0:18:39.320 --> 0:18:44.000
<v Speaker 1>he was also posting photos of driving around in exotic

0:18:44.119 --> 0:18:48.440
<v Speaker 1>luxury cars. There's like a lot of contradictions here. Yes,

0:18:49.040 --> 0:18:52.240
<v Speaker 1>it's completely you know, Nick in our first interview told

0:18:52.280 --> 0:18:55.760
<v Speaker 1>me that his kind of early entrepreneur spirit came out

0:18:55.800 --> 0:18:58.080
<v Speaker 1>of a necessity to support his family. I tried to

0:18:58.119 --> 0:19:00.000
<v Speaker 1>talk to his family. I tried to talk to his parents,

0:19:00.040 --> 0:19:02.320
<v Speaker 1>some of his siblings. None of them got back to me.

0:19:02.680 --> 0:19:05.840
<v Speaker 1>But you know, when I found Limb's old YouTube channel,

0:19:06.040 --> 0:19:08.920
<v Speaker 1>I found you know, him driving around into his dad's

0:19:08.920 --> 0:19:12.959
<v Speaker 1>white Lamborghini. Um. So it wasn't exactly a story of

0:19:13.119 --> 0:19:15.600
<v Speaker 1>as you told me, you know, creating these businesses in

0:19:15.680 --> 0:19:20.360
<v Speaker 1>order to quote put food on the table. So well, like,

0:19:20.440 --> 0:19:22.560
<v Speaker 1>let's spind this forward a little bit. Um. You know,

0:19:22.600 --> 0:19:26.480
<v Speaker 1>there are there are you know, free speech rights in

0:19:26.520 --> 0:19:29.520
<v Speaker 1>this country and clearly and Nick Lym has found a

0:19:29.520 --> 0:19:34.440
<v Speaker 1>way to um basking them. Um But what what kind

0:19:34.440 --> 0:19:37.439
<v Speaker 1>of ultimately could how could this come down on him?

0:19:37.480 --> 0:19:42.080
<v Speaker 1>Because I mean, he is walking such a delicate line

0:19:42.080 --> 0:19:45.399
<v Speaker 1>here and it just feels like someone is you know,

0:19:45.640 --> 0:19:48.200
<v Speaker 1>potentially in a position to to you know, elbow him

0:19:48.200 --> 0:19:52.439
<v Speaker 1>out yet, right, I mean someone could, um, you know,

0:19:52.480 --> 0:19:54.439
<v Speaker 1>someone a little bit more adept might come in and

0:19:54.480 --> 0:19:56.560
<v Speaker 1>offer a similar service. But you know something, I was

0:19:56.560 --> 0:19:58.680
<v Speaker 1>actually surprised. But I mean the people I did speak

0:19:58.720 --> 0:20:01.240
<v Speaker 1>to you said that that Lam really did have technical

0:20:01.280 --> 0:20:02.600
<v Speaker 1>skill and that he was good at doing this. And

0:20:02.640 --> 0:20:04.760
<v Speaker 1>you know I found tweets from him as an early

0:20:04.840 --> 0:20:08.800
<v Speaker 1>teen talking about his his interest in the DOS mitigation

0:20:08.840 --> 0:20:11.359
<v Speaker 1>for example. Um. You know, as far as liability, I

0:20:11.400 --> 0:20:13.760
<v Speaker 1>don't really think Lim has any because he's not doing

0:20:13.800 --> 0:20:16.959
<v Speaker 1>anything that's patently illegal, right. Um. You know, he's kind

0:20:17.000 --> 0:20:20.439
<v Speaker 1>of just posting sites that are themselves stretching the limits

0:20:20.440 --> 0:20:23.760
<v Speaker 1>of the First Amendment. Um. But you know, I don't

0:20:23.760 --> 0:20:26.480
<v Speaker 1>think he's doing anything that would be kind of patently illegal.

0:20:26.800 --> 0:20:28.919
<v Speaker 1>I'm just thinking that for anybody listening, like and how

0:20:28.960 --> 0:20:30.560
<v Speaker 1>you wrap up your store. I mean, it's a business

0:20:30.560 --> 0:20:32.960
<v Speaker 1>opportunity when it comes down to it, you know, And

0:20:33.000 --> 0:20:35.240
<v Speaker 1>he says, what you know, however you feel about free speech,

0:20:35.280 --> 0:20:41.840
<v Speaker 1>I mean, this is an avenue where there's demand. Ultimately, William, absolutely,

0:20:41.880 --> 0:20:44.040
<v Speaker 1>I mean this sort of practice is never going to

0:20:44.160 --> 0:20:46.639
<v Speaker 1>go away. There's always gonna be someone that feels like

0:20:46.920 --> 0:20:48.200
<v Speaker 1>and that's kind of a thing that was interesting to

0:20:48.200 --> 0:20:50.160
<v Speaker 1>me because we talk a lot about social media censorship

0:20:50.200 --> 0:20:52.399
<v Speaker 1>and deep platforming. But then you have the question do

0:20:52.440 --> 0:20:54.920
<v Speaker 1>you have a right to have a website? Even um,

0:20:54.960 --> 0:20:57.639
<v Speaker 1>and you know the website's being kind of kicked off

0:20:57.640 --> 0:21:01.719
<v Speaker 1>the internet. It is extremely rare instance, compared to your

0:21:01.720 --> 0:21:04.520
<v Speaker 1>Facebook account geting fans, right, um, And there's always gonna

0:21:04.520 --> 0:21:06.240
<v Speaker 1>be someone like Nix second. Kind of still that board,

0:21:06.240 --> 0:21:08.040
<v Speaker 1>I think I gotta say I love all the details

0:21:08.040 --> 0:21:10.320
<v Speaker 1>around his background. Of course, I'm not gonna say, of

0:21:10.640 --> 0:21:13.160
<v Speaker 1>course he has a crypto mining shed in his backyard.

0:21:13.160 --> 0:21:15.280
<v Speaker 1>When I saw that detail was like, of course he does.

0:21:15.560 --> 0:21:17.720
<v Speaker 1>Tim and I went all these different places about kind

0:21:17.720 --> 0:21:22.240
<v Speaker 1>of like what happens next in his world William, Well, yeah,

0:21:22.320 --> 0:21:25.520
<v Speaker 1>I mean I guess as crypto prices continue to rise,

0:21:25.600 --> 0:21:28.240
<v Speaker 1>that may be good for him. Uh you know, I'm

0:21:28.280 --> 0:21:31.200
<v Speaker 1>just I'm wondering if he'll leverage his skills into something

0:21:31.240 --> 0:21:33.960
<v Speaker 1>that's kind of uh yeah, you know, I don't know,

0:21:34.119 --> 0:21:36.880
<v Speaker 1>let's potently harmful. Stay tuned, is what I like to say.

0:21:36.960 --> 0:21:41.240
<v Speaker 1>William Turtin, such good stuff cybersecurity reporting, Bloomberg News. Joe Weber,

0:21:41.320 --> 0:21:43.920
<v Speaker 1>editor of Bloomberg Business Week, this story the cover story

0:21:44.119 --> 0:21:51.399
<v Speaker 1>of the new issue of Business Week magazine. You're listening

0:21:51.480 --> 0:21:55.240
<v Speaker 1>to Bloomberg Business Week with Carol Masser and Bloomberg Quick

0:21:55.280 --> 0:22:00.800
<v Speaker 1>Takes Tim Stinovik on Bloomberg Radio. Are you are listening

0:22:00.840 --> 0:22:03.760
<v Speaker 1>to Bottmberg Business Week? Goldman equity traders feel like a

0:22:03.800 --> 0:22:06.880
<v Speaker 1>record quarter amid the reddit mania who said those old

0:22:06.920 --> 0:22:10.280
<v Speaker 1>guys don't know how to trade, because they certainly showed

0:22:10.400 --> 0:22:14.240
<v Speaker 1>up uh this quarter. Jimmy Morgan Chase, their dealmakers helped

0:22:14.280 --> 0:22:16.880
<v Speaker 1>us here in the firm's best quarter. But uh, investors

0:22:16.880 --> 0:22:19.160
<v Speaker 1>still concerned about loan demand. We heard Charlie talk about

0:22:19.160 --> 0:22:22.960
<v Speaker 1>that Wells Fargo beating profit estimates, so struggling on expenses,

0:22:23.000 --> 0:22:26.199
<v Speaker 1>but that turnaround story. Investors feeling pretty confident about what

0:22:26.280 --> 0:22:28.760
<v Speaker 1>Charlie Sharf is doing over there Wells Fargo, as Charlie mentioned,

0:22:28.800 --> 0:22:31.240
<v Speaker 1>up more than five Anton shoots us with us, back

0:22:31.280 --> 0:22:33.520
<v Speaker 1>with US President and chief investment officer over at menton

0:22:33.600 --> 0:22:37.159
<v Speaker 1>Capital Advisers. Back with us on the phone in Florida. Anton,

0:22:37.320 --> 0:22:40.119
<v Speaker 1>Good to have you here. Uh got so much to

0:22:40.160 --> 0:22:45.120
<v Speaker 1>talk to. How are you? I'm busy? I know, right,

0:22:45.200 --> 0:22:47.920
<v Speaker 1>I know you can I can only imagine well let's

0:22:47.960 --> 0:22:51.280
<v Speaker 1>go through the names. Goldman investors seemed pretty happy this

0:22:51.400 --> 0:22:55.240
<v Speaker 1>was all about. It seems like trading for Goldman this quarter?

0:22:55.280 --> 0:22:56.679
<v Speaker 1>What stood out for you? What do you think we

0:22:56.680 --> 0:22:59.760
<v Speaker 1>all need to know as investors for Goldman? I think

0:22:59.800 --> 0:23:02.280
<v Speaker 1>what you need to know it's a pipeline for the

0:23:02.320 --> 0:23:06.520
<v Speaker 1>investment banking remains incredibly robust and it's been really interesting

0:23:06.640 --> 0:23:10.479
<v Speaker 1>the controversy it's been caused about spacts and you know,

0:23:10.680 --> 0:23:14.159
<v Speaker 1>good or bad. Uh, these companies have gone public and

0:23:14.200 --> 0:23:16.280
<v Speaker 1>they all have a ton of cash and there's a

0:23:16.320 --> 0:23:18.800
<v Speaker 1>two year clock kicking on them to spend that cash.

0:23:19.520 --> 0:23:22.280
<v Speaker 1>So that means if you're an investment banker, you're coming

0:23:22.359 --> 0:23:24.480
<v Speaker 1>up for ideas to all those hundreds of facts that

0:23:24.520 --> 0:23:26.919
<v Speaker 1>have done public. And if you've closed a deal and

0:23:26.920 --> 0:23:30.080
<v Speaker 1>you get the advisory that you've made a bunch of money. So, uh,

0:23:30.480 --> 0:23:32.359
<v Speaker 1>every one of the investment banks is gonna be very

0:23:32.400 --> 0:23:34.639
<v Speaker 1>busy on the M and A front. Uh, just on

0:23:34.680 --> 0:23:36.720
<v Speaker 1>the spacts and loan let alone all the rest of

0:23:36.720 --> 0:23:39.000
<v Speaker 1>the economic even if some of the spacts come undone

0:23:39.040 --> 0:23:41.040
<v Speaker 1>and they just I mean, you are we are you

0:23:41.119 --> 0:23:43.720
<v Speaker 1>so confident aunt on that they're going to all put

0:23:43.720 --> 0:23:46.280
<v Speaker 1>that money to work in time. They're gonna try. They're

0:23:46.280 --> 0:23:48.880
<v Speaker 1>gonna try, and that's the that's the thing, right, I mean,

0:23:49.000 --> 0:23:51.080
<v Speaker 1>maybe not all of them. Not talking about those investments.

0:23:51.119 --> 0:23:52.840
<v Speaker 1>I'm just saying there's a fool of money out there

0:23:53.200 --> 0:23:56.080
<v Speaker 1>that really wants to find a home, and that will

0:23:56.160 --> 0:23:59.399
<v Speaker 1>lead to advisory fees for firms like Golden you know

0:23:59.520 --> 0:24:02.520
<v Speaker 1>my uh my table, just some smaller companies like a

0:24:02.600 --> 0:24:05.840
<v Speaker 1>like a Cowan or Jeffreys. But you know, they all

0:24:05.880 --> 0:24:08.840
<v Speaker 1>helped underwrite these things, and they all have relationships and

0:24:08.840 --> 0:24:10.760
<v Speaker 1>they'll be on either side of the transaction. Right. It's

0:24:10.800 --> 0:24:14.040
<v Speaker 1>not just the investive BANKNCY. If you're advising the SPAC,

0:24:14.119 --> 0:24:16.359
<v Speaker 1>it's the investment thank you see, if you're advising the seller.

0:24:16.880 --> 0:24:19.600
<v Speaker 1>So there's lots of lots of fees to go around.

0:24:19.760 --> 0:24:22.480
<v Speaker 1>And I think that the tax law changes, assuming there's

0:24:22.560 --> 0:24:26.000
<v Speaker 1>changes in capital gains taxes, it's gonna force companies to go,

0:24:26.080 --> 0:24:28.240
<v Speaker 1>you know what, maybe I should sell now while the

0:24:28.280 --> 0:24:31.359
<v Speaker 1>capital gains taxes lower? Are their homes? That's going to

0:24:31.440 --> 0:24:33.600
<v Speaker 1>be a driver? Are their homes for all that money? Though?

0:24:34.800 --> 0:24:37.600
<v Speaker 1>Uh well, there's a lot of private companies out there, right,

0:24:37.640 --> 0:24:39.920
<v Speaker 1>It's not it's not just public companies, but that these

0:24:39.920 --> 0:24:42.840
<v Speaker 1>SPACs have to buy there will be a city frenzy.

0:24:42.880 --> 0:24:46.520
<v Speaker 1>And you're absolutely right, and in the skepticism that some

0:24:46.600 --> 0:24:48.000
<v Speaker 1>of them will not be able to put that money

0:24:48.000 --> 0:24:50.000
<v Speaker 1>to work, right, not are not not put to work

0:24:50.040 --> 0:24:52.600
<v Speaker 1>in a feasible manner. Let's talk to A P. Morgan

0:24:52.680 --> 0:24:55.159
<v Speaker 1>down one point seven percent, but I'm just gonna pull

0:24:55.240 --> 0:24:57.760
<v Speaker 1>up the year to date. It's up so far this year,

0:24:58.160 --> 0:25:01.560
<v Speaker 1>even with today's pull back, some concerns about loan deman.

0:25:01.600 --> 0:25:04.959
<v Speaker 1>How do you see it for JP Morgan? Well, you know,

0:25:05.359 --> 0:25:07.119
<v Speaker 1>you've got a tale of a lot of different business

0:25:07.160 --> 0:25:10.520
<v Speaker 1>lines here. So let's address the consumer side and the

0:25:10.560 --> 0:25:14.399
<v Speaker 1>credit card I mean, you know, we basically had the

0:25:14.480 --> 0:25:19.040
<v Speaker 1>Fed and the Treasury pump something like GDP into the

0:25:19.080 --> 0:25:21.800
<v Speaker 1>into the economy. You know, consumers have just gotten there

0:25:22.200 --> 0:25:25.080
<v Speaker 1>their six checks, if they've got a family, they've gotten

0:25:25.119 --> 0:25:28.479
<v Speaker 1>multiplayers of that, and so they've done lots of things right.

0:25:28.480 --> 0:25:30.560
<v Speaker 1>They saved it. They paid off the credit card debt,

0:25:31.080 --> 0:25:35.080
<v Speaker 1>so particular on the credit card side, people paid down

0:25:35.080 --> 0:25:39.080
<v Speaker 1>debt and you know they'll eventually, you know, hopefully come

0:25:39.080 --> 0:25:41.080
<v Speaker 1>back and spend it for the economy's sake as well

0:25:41.119 --> 0:25:43.040
<v Speaker 1>as for the lenders that don't want to lend them

0:25:43.040 --> 0:25:45.159
<v Speaker 1>the money. But that's that's a line of business that

0:25:45.240 --> 0:25:48.639
<v Speaker 1>there's just so much cash slashing around that people are

0:25:48.640 --> 0:25:51.000
<v Speaker 1>actually paying with the cash for now. So that means

0:25:51.000 --> 0:25:53.240
<v Speaker 1>it's so in other words, it didn't generate as much

0:25:53.240 --> 0:25:56.160
<v Speaker 1>for JP Morgan as it has in the past. Well

0:25:56.200 --> 0:25:59.719
<v Speaker 1>I wouldn't, yeah, right, I mean because the consumers flushed

0:25:59.720 --> 0:26:01.920
<v Speaker 1>with cash. You know, what do you use a credit

0:26:01.920 --> 0:26:05.400
<v Speaker 1>card when you don't have the cash? And so those

0:26:05.440 --> 0:26:08.399
<v Speaker 1>credit card outstandings will probably rise as the year goes on.

0:26:08.520 --> 0:26:12.160
<v Speaker 1>Unless there's more more goodies for the consumers, um will

0:26:12.200 --> 0:26:14.960
<v Speaker 1>eventually start spending their savings, which again another problem with

0:26:15.040 --> 0:26:17.119
<v Speaker 1>for the big banks of all the banks is the

0:26:17.240 --> 0:26:20.240
<v Speaker 1>entire system is slush with deposits, so h you know,

0:26:20.240 --> 0:26:22.320
<v Speaker 1>people are looking at their margins going, oh my gosh.

0:26:22.359 --> 0:26:23.920
<v Speaker 1>You know, but what are you gonna do with that money?

0:26:23.920 --> 0:26:27.280
<v Speaker 1>I'll let money on deposit. What are you putting into bonds? Now?

0:26:27.359 --> 0:26:29.199
<v Speaker 1>You'd rather lend it? That's what banks want to do.

0:26:29.600 --> 0:26:31.520
<v Speaker 1>So it's the second half of the year story, I

0:26:31.520 --> 0:26:34.600
<v Speaker 1>think for the entire industry. As people work down the

0:26:34.640 --> 0:26:37.359
<v Speaker 1>cash and start to borrow more money, I think earning

0:26:37.359 --> 0:26:39.240
<v Speaker 1>investments are actually too low for the second half of

0:26:39.240 --> 0:26:41.280
<v Speaker 1>the year for most of the industry. So given that

0:26:41.280 --> 0:26:45.920
<v Speaker 1>the quarter was so good, wire investors reacting this way. Well,

0:26:46.400 --> 0:26:48.040
<v Speaker 1>you know what, if you look at JP Morgan, it's

0:26:48.040 --> 0:26:51.080
<v Speaker 1>beaten every quarter for the last three quarters pretty nicely,

0:26:51.359 --> 0:26:54.719
<v Speaker 1>and it's been down every time. This was a record

0:26:54.760 --> 0:26:57.800
<v Speaker 1>first quarter. Yeah, it was a record first quarter for

0:26:58.800 --> 0:27:01.200
<v Speaker 1>well yeah, JP Moore in Gouldment. I mean, you're gonna

0:27:01.200 --> 0:27:04.440
<v Speaker 1>see see that repeated and um, you know, I think

0:27:04.440 --> 0:27:05.879
<v Speaker 1>it was a little bit of seldom news and it

0:27:05.920 --> 0:27:08.080
<v Speaker 1>was a little bit of my otic Oh my gosh,

0:27:08.119 --> 0:27:09.920
<v Speaker 1>they may don't have long growth in the second half

0:27:09.960 --> 0:27:11.840
<v Speaker 1>of the year. I mean they've are They told us

0:27:11.880 --> 0:27:14.199
<v Speaker 1>they're gonna buy seven point two billion dollars worth of

0:27:14.200 --> 0:27:19.359
<v Speaker 1>their stock in this quarter. Okay, that's pretty good. Um,

0:27:19.400 --> 0:27:21.639
<v Speaker 1>you know, I I don't think. I I can't. I

0:27:21.680 --> 0:27:24.080
<v Speaker 1>can't poke hold that quarter. Now. The interesting thing, and

0:27:24.240 --> 0:27:26.359
<v Speaker 1>I was talking a lot of traders today about this.

0:27:26.520 --> 0:27:29.520
<v Speaker 1>Initial traders and you know, the banks get punished when

0:27:29.520 --> 0:27:32.399
<v Speaker 1>they set aside access reserves. You recall last year I

0:27:32.480 --> 0:27:34.600
<v Speaker 1>was having the same conversations on oh my gosh, how

0:27:34.680 --> 0:27:37.880
<v Speaker 1>terrible things are. They're setting these reserves aside, So how

0:27:37.920 --> 0:27:40.040
<v Speaker 1>can you punish them for setting them aside and then

0:27:40.040 --> 0:27:42.200
<v Speaker 1>punish them again for going oh my gosh, there and earnings,

0:27:42.480 --> 0:27:45.320
<v Speaker 1>so they over earned because they released the reserves. You know,

0:27:45.520 --> 0:27:48.280
<v Speaker 1>punish them one way or the other. But that's that's whice. Well,

0:27:48.280 --> 0:27:49.639
<v Speaker 1>that's what I wanted to ask you. What we need

0:27:49.680 --> 0:27:53.879
<v Speaker 1>to understand because JP Morgan did um release to a

0:27:53.960 --> 0:27:57.760
<v Speaker 1>larger than expector to reserve release which added to the

0:27:57.920 --> 0:28:01.000
<v Speaker 1>quarterly windfall. What do we need to understand about that?

0:28:01.000 --> 0:28:04.480
<v Speaker 1>You just talked about it a little bit. I'm not

0:28:04.520 --> 0:28:06.680
<v Speaker 1>sure anybody wants to try to understand SCI which is

0:28:06.720 --> 0:28:11.000
<v Speaker 1>the accounting treaties put in place here UM. But it's

0:28:11.000 --> 0:28:13.840
<v Speaker 1>based upon a lot of assumptions and Moody's is probably

0:28:13.840 --> 0:28:17.000
<v Speaker 1>the number one forecaster they used on those assumptions. So

0:28:17.000 --> 0:28:19.840
<v Speaker 1>if Moody changes its economic model that has to do

0:28:19.960 --> 0:28:26.640
<v Speaker 1>with things like unemployment and stimulus UM and GDP. Right,

0:28:27.160 --> 0:28:29.080
<v Speaker 1>I mean, if you, if you, if you did this

0:28:29.119 --> 0:28:32.720
<v Speaker 1>report last March, you know it was, oh my gosh, right,

0:28:33.000 --> 0:28:35.160
<v Speaker 1>set aside a lot of reserve. The same thing in July.

0:28:35.840 --> 0:28:38.240
<v Speaker 1>Now that report leads very differently Oh, you've got to

0:28:38.280 --> 0:28:42.040
<v Speaker 1>release those reserves. Right. It's literally straight accounting. That's a

0:28:42.080 --> 0:28:45.120
<v Speaker 1>good point. In other words, there's nothing any tricky to it. Uh.

0:28:45.160 --> 0:28:47.080
<v Speaker 1>And we're running out of time and on, but we

0:28:47.120 --> 0:28:48.920
<v Speaker 1>really appreciate it and we'll get you back real soon

0:28:48.920 --> 0:28:52.440
<v Speaker 1>because I always appreciate your input, your fun. By the way,

0:28:52.480 --> 0:28:55.160
<v Speaker 1>your r and BUM in Financial Services Fund it is

0:28:55.200 --> 0:28:58.440
<v Speaker 1>up almost so far this year, putting it at LEAs,

0:28:58.440 --> 0:29:01.320
<v Speaker 1>according to Bloomberg Data, in the eighty nine percentile. Anton,

0:29:01.360 --> 0:29:03.800
<v Speaker 1>thank you so much, and on shots. President, Chief investment

0:29:03.800 --> 0:29:06.560
<v Speaker 1>officervant men and capital advisers. On the phone from Florida.

0:29:08.200 --> 0:29:15.400
<v Speaker 1>I'm ro Marco journal now, but you let me drive, no,

0:29:15.400 --> 0:29:20.120
<v Speaker 1>no, no no, d home honey please, I'll do the riding drivel.

0:29:21.520 --> 0:29:36.960
<v Speaker 1>I want to drive, just drive the questions trying. This

0:29:37.440 --> 0:29:40.680
<v Speaker 1>is the drive to the globe community. Thanks. We'll drying

0:29:40.800 --> 0:29:44.080
<v Speaker 1>us down on Bloomberg Radio. All right, just got about

0:29:44.160 --> 0:29:47.000
<v Speaker 1>nine minutes left in the trading day. It is time

0:29:47.040 --> 0:29:49.200
<v Speaker 1>for the drive to the clothes and joining us today

0:29:49.280 --> 0:29:53.040
<v Speaker 1>once again. Allen Lance, Research director of Lands Global dot Com,

0:29:53.080 --> 0:29:55.640
<v Speaker 1>President of Allenby Lands and Associates. He's on the phone

0:29:55.920 --> 0:29:58.520
<v Speaker 1>from Toledo, Ohio. Allen. Good to have you back with

0:29:58.560 --> 0:30:01.680
<v Speaker 1>Tim and myself. How are you and I feel like

0:30:01.800 --> 0:30:05.160
<v Speaker 1>interesting market environment. You know, now that we start earnings,

0:30:05.240 --> 0:30:08.040
<v Speaker 1>how are you or what are you focusing on? I

0:30:08.040 --> 0:30:11.240
<v Speaker 1>guess I should ask, well, I think it's been a

0:30:11.280 --> 0:30:15.040
<v Speaker 1>situation Carol, where um the rotation has been actually a positive.

0:30:15.080 --> 0:30:17.800
<v Speaker 1>You know, we've seen a stall in in the fangs

0:30:17.880 --> 0:30:20.680
<v Speaker 1>and they've underperformed, and the Intels and the Ciscos of

0:30:20.720 --> 0:30:24.440
<v Speaker 1>the world of have perked up. And you know, you

0:30:24.480 --> 0:30:29.160
<v Speaker 1>look at healthcare and techs underperformed and and one, and

0:30:29.280 --> 0:30:32.959
<v Speaker 1>you're you're getting you know, strong uh as far as

0:30:33.000 --> 0:30:36.320
<v Speaker 1>momentum from energy, financials and materials, and and they're picking

0:30:36.360 --> 0:30:38.760
<v Speaker 1>up the slack. And I think that's a big positive.

0:30:38.840 --> 0:30:41.440
<v Speaker 1>You know, you've got you know, the the hot I

0:30:41.600 --> 0:30:44.960
<v Speaker 1>p o s of Palentteer and Snowflake and him her

0:30:45.120 --> 0:30:49.240
<v Speaker 1>health down from their eyes. Even DraftKings is down from

0:30:49.280 --> 0:30:52.560
<v Speaker 1>seventy four to you know, fifty nine and and and

0:30:52.880 --> 0:30:57.000
<v Speaker 1>I think that that's all bringing some rationality in the market.

0:30:57.080 --> 0:30:58.840
<v Speaker 1>So it's not going to be all just value and

0:30:58.960 --> 0:31:03.240
<v Speaker 1>cyclicals and at the expense of uh what used to

0:31:03.320 --> 0:31:05.440
<v Speaker 1>lead the market. But it's going to be more of

0:31:05.480 --> 0:31:10.440
<v Speaker 1>a valuation and and and in depth analysis. Uh, you

0:31:10.480 --> 0:31:13.120
<v Speaker 1>know that that makes a difference. And that's right in

0:31:13.120 --> 0:31:16.800
<v Speaker 1>our Bailey Wick Alan. How are you thinking about inflation

0:31:17.320 --> 0:31:22.880
<v Speaker 1>and potentially hedging for for higher taxes rising interest rates. Yeah,

0:31:22.880 --> 0:31:25.440
<v Speaker 1>that's a big thing to him that we wrote about

0:31:25.880 --> 0:31:28.480
<v Speaker 1>the last issue of the Lance Letter. And and I

0:31:28.520 --> 0:31:32.320
<v Speaker 1>think you know we're going to see higher interest rates. Uh,

0:31:32.360 --> 0:31:37.000
<v Speaker 1>and and then um, obviously higher taxes and then eventually inflation.

0:31:37.120 --> 0:31:40.080
<v Speaker 1>I think everybody really has to look at getting some

0:31:40.160 --> 0:31:43.360
<v Speaker 1>inflation hedges. Um. I would look at real assets. If

0:31:43.360 --> 0:31:45.400
<v Speaker 1>you look at in the seventies what happened. And I

0:31:45.440 --> 0:31:48.000
<v Speaker 1>don't think it's going to be that bad. But once

0:31:48.080 --> 0:31:50.720
<v Speaker 1>inflation starts, we're in its ugly head. It's it's hard

0:31:50.760 --> 0:31:53.480
<v Speaker 1>to get rid of it. And and I think it's

0:31:53.520 --> 0:31:55.760
<v Speaker 1>a situation where you want at least have some of

0:31:55.800 --> 0:32:00.560
<v Speaker 1>your assets and in actual single family homes and actual

0:32:00.840 --> 0:32:04.920
<v Speaker 1>natural gas wells. Um. You know, if you can't do that,

0:32:05.080 --> 0:32:08.480
<v Speaker 1>then um, you know, um, do the next best thing.

0:32:08.600 --> 0:32:10.640
<v Speaker 1>But you know, homebuilders have moved up, so we're not

0:32:11.080 --> 0:32:13.880
<v Speaker 1>you know, buying those are beyond our disciplined by limits,

0:32:13.920 --> 0:32:17.719
<v Speaker 1>but actually owning the you know physical ass. I think

0:32:17.720 --> 0:32:21.360
<v Speaker 1>it's going to be important. Another gold has been just

0:32:21.600 --> 0:32:26.400
<v Speaker 1>discarded here with the um crypto craze and and um,

0:32:27.160 --> 0:32:30.280
<v Speaker 1>I think it's a situation that um, you know buying

0:32:30.480 --> 0:32:35.640
<v Speaker 1>uh Barrett gold or a Newmont um you know for

0:32:35.840 --> 0:32:39.080
<v Speaker 1>Barret or under sixty for Newmont. Uh had a good

0:32:39.160 --> 0:32:41.720
<v Speaker 1>of it end And and I think that's a nice

0:32:41.720 --> 0:32:46.160
<v Speaker 1>hedge that's easy for investors to uh participate in. See.

0:32:46.240 --> 0:32:48.040
<v Speaker 1>And I think I'm not sure if I heard you

0:32:48.080 --> 0:32:51.000
<v Speaker 1>clearly Alan coin base was that anywhere in your buying

0:32:51.040 --> 0:32:55.600
<v Speaker 1>list today? Uh? Well, I think coin coin bases is hot,

0:32:55.720 --> 0:32:59.560
<v Speaker 1>you know. And and if it's a situation where from

0:32:59.560 --> 0:33:01.360
<v Speaker 1>its opening price, so you can actually get a little

0:33:01.360 --> 0:33:04.160
<v Speaker 1>bit of a bargain right now. Yeah, yeah, now it's

0:33:04.240 --> 0:33:07.840
<v Speaker 1>that's something we uh bought. Um it's it's something that

0:33:08.120 --> 0:33:11.800
<v Speaker 1>uh um, I was saying that rather than chasing these

0:33:11.840 --> 0:33:15.400
<v Speaker 1>you know, the bitcoin and you know and coin base,

0:33:16.040 --> 0:33:18.320
<v Speaker 1>uh you know that just kept on rising and rising

0:33:18.320 --> 0:33:21.400
<v Speaker 1>before it finally uh you know came out. Um. You know,

0:33:21.640 --> 0:33:24.880
<v Speaker 1>we're a long term discipline investors, and I'd rather take

0:33:25.640 --> 0:33:28.720
<v Speaker 1>that money and and and and and buy some um

0:33:28.800 --> 0:33:34.400
<v Speaker 1>income producing gold mining, silver mining type companies that are uh,

0:33:35.440 --> 0:33:38.440
<v Speaker 1>paying strong dividends and and and and doing well and

0:33:38.480 --> 0:33:45.760
<v Speaker 1>being ignored. So you didn't know I was sarcastic, right, yeah, exactly. Well,

0:33:45.400 --> 0:33:49.240
<v Speaker 1>I look, how how are you thinking about I don't

0:33:49.240 --> 0:33:50.840
<v Speaker 1>want to call it froth. I don't want to use

0:33:50.880 --> 0:33:53.920
<v Speaker 1>any of these kind of tired terms. But look, we're

0:33:53.920 --> 0:33:58.160
<v Speaker 1>seeing record after record. We're seeing companies with direct listings

0:33:58.160 --> 0:34:00.920
<v Speaker 1>with valuations of a hundred billion dollars that are tied

0:34:00.960 --> 0:34:05.240
<v Speaker 1>to cryptocurrency. Um, how are you thinking about the opportunities

0:34:05.280 --> 0:34:09.800
<v Speaker 1>to put money to work when we are seeing people

0:34:09.880 --> 0:34:12.960
<v Speaker 1>say that the T word top Yeah. I think you

0:34:13.000 --> 0:34:15.040
<v Speaker 1>get to look at you know, the going back to

0:34:15.080 --> 0:34:18.560
<v Speaker 1>the basics and fundamental analysis and and doing it the

0:34:18.640 --> 0:34:20.960
<v Speaker 1>right way, you know. And and it's good that the

0:34:21.040 --> 0:34:22.920
<v Speaker 1>spacks of you know, lest the little bit of their

0:34:22.960 --> 0:34:26.399
<v Speaker 1>craze and and uh, you know, we're seeing um as

0:34:26.440 --> 0:34:29.600
<v Speaker 1>far as the I P. O. S lessening and and

0:34:29.880 --> 0:34:31.520
<v Speaker 1>that type of thing, we were setting ourselves up for

0:34:31.520 --> 0:34:34.319
<v Speaker 1>a bubble. Really if this would have continued. So I

0:34:34.360 --> 0:34:38.840
<v Speaker 1>think that the rotational correction we had talked about initially, um,

0:34:38.880 --> 0:34:41.919
<v Speaker 1>you know, is very important to the long term health

0:34:41.920 --> 0:34:44.440
<v Speaker 1>of the market. But we are definitely setting ourselves up

0:34:44.520 --> 0:34:47.600
<v Speaker 1>even you know, the tail winds now that are pushing

0:34:47.600 --> 0:34:50.959
<v Speaker 1>the market higher or like uh the stimulus and and

0:34:51.120 --> 0:34:55.400
<v Speaker 1>um as as far as uh still low interest rates,

0:34:55.440 --> 0:34:58.640
<v Speaker 1>I think you know are definitely going to be negatives

0:34:58.680 --> 0:35:01.880
<v Speaker 1>down the road. Is interest rates uh rise and and

0:35:01.960 --> 0:35:04.880
<v Speaker 1>as uh you know, the stimulus. Uh. You get to

0:35:04.920 --> 0:35:06.640
<v Speaker 1>a point where you know you've got to do something

0:35:06.680 --> 0:35:09.600
<v Speaker 1>with the deficits, and nobody's talking about that. So hey, listen,

0:35:09.920 --> 0:35:11.960
<v Speaker 1>we are talking a lot about banks today. What are

0:35:12.000 --> 0:35:14.759
<v Speaker 1>your thoughts on that. Any opportunities there, any interest, whether

0:35:14.800 --> 0:35:16.120
<v Speaker 1>it's in the big guys or maybe some of the

0:35:16.120 --> 0:35:20.040
<v Speaker 1>regional players. I really like banks, you know, start the year.

0:35:20.080 --> 0:35:21.799
<v Speaker 1>I think that was one of our favorite sectors when

0:35:21.800 --> 0:35:24.600
<v Speaker 1>we talked, you know, as far as a few months ago.

0:35:25.080 --> 0:35:27.360
<v Speaker 1>But really they've moved up Carroll to a point where

0:35:27.719 --> 0:35:30.120
<v Speaker 1>you know, I wouldn't you know, chase him. One of

0:35:30.120 --> 0:35:34.800
<v Speaker 1>the only financials that still within our buying territory high teams,

0:35:34.920 --> 0:35:38.040
<v Speaker 1>low twenties is Rocket Companies. I think they've got a

0:35:38.040 --> 0:35:42.400
<v Speaker 1>good technological advantage and um, you can still participate. His

0:35:42.520 --> 0:35:45.560
<v Speaker 1>interest rates aren't going to soar even though they have

0:35:46.160 --> 0:35:47.960
<v Speaker 1>higher and that's one of the reasons the stock is

0:35:48.400 --> 0:35:50.400
<v Speaker 1>is still at a bargain. But really the companies we

0:35:50.480 --> 0:35:52.960
<v Speaker 1>talked about, you know, six months ago, like the Wells,

0:35:53.000 --> 0:35:56.920
<v Speaker 1>Fargoes and and the like, you know, have just gone

0:35:56.920 --> 0:36:00.239
<v Speaker 1>to points where we're would be more likely to take

0:36:00.239 --> 0:36:02.200
<v Speaker 1>profits in the strength here that then buy them and

0:36:02.320 --> 0:36:06.719
<v Speaker 1>chase them. How concerned are you about things getting too hot?

0:36:06.719 --> 0:36:09.040
<v Speaker 1>We talked a little about your your inflation picks, but

0:36:09.080 --> 0:36:10.400
<v Speaker 1>I mean, are you concerned that we are going to

0:36:10.400 --> 0:36:14.239
<v Speaker 1>start seeing real inflation? And we only about thirty seconds left? Yeah,

0:36:14.280 --> 0:36:16.520
<v Speaker 1>I think I think we will see inflation. I mean

0:36:16.520 --> 0:36:18.600
<v Speaker 1>we're starting to see it already with you know, food

0:36:18.680 --> 0:36:21.600
<v Speaker 1>and uh, you know, and I think energy that's one

0:36:21.600 --> 0:36:23.600
<v Speaker 1>of the reasons. And natural gas is one of our

0:36:23.800 --> 0:36:26.920
<v Speaker 1>our our big place, you know, in that energy sector.

0:36:26.960 --> 0:36:29.720
<v Speaker 1>And I think that it's a situation where you definitely

0:36:29.719 --> 0:36:32.759
<v Speaker 1>want to position now to the year from now. It's

0:36:32.760 --> 0:36:34.920
<v Speaker 1>it's gonna be a hot topic, and you don't want

0:36:34.920 --> 0:36:36.480
<v Speaker 1>to be chasing you what you want to be buying

0:36:36.480 --> 0:36:42.440
<v Speaker 1>selectively and and and getting your portfolio's positioned appropriately now

0:36:42.560 --> 0:36:45.000
<v Speaker 1>before you know, prices get out of out of hand.

0:36:45.080 --> 0:36:47.359
<v Speaker 1>On in front match front all right, we gotta run.

0:36:47.400 --> 0:36:49.480
<v Speaker 1>Hey Alan, Always good to check in with you b well.

0:36:49.600 --> 0:36:53.480
<v Speaker 1>Alan Lance, director of Research at LANTS Global. Thanks for

0:36:53.520 --> 0:36:57.319
<v Speaker 1>listening to Bloomberg Business Week. Download the podcast on iTunes, SoundCloud,

0:36:57.400 --> 0:36:59.560
<v Speaker 1>or Bloomberg dot com, and you can also listen to

0:36:59.560 --> 0:37:02.160
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0:37:02.280 --> 0:37:06.840
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