WEBVTT - Breakthroughs in the Commercial Space Industry 0:00:00.800 --> 0:00:04.040 Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney alongside 0:00:04.040 --> 0:00:06.920 my co host Matt Miller. Every business day, we bring 0:00:06.960 --> 0:00:11.520 you interviews from CEOs, market pros, and Bloomberg experts, along 0:00:11.560 --> 0:00:15.600 with essential market moving news. Find the Bloomberg Markets Podcast 0:00:15.640 --> 0:00:18.479 on Apple Podcasts or wherever you listen to podcasts, and 0:00:18.480 --> 0:00:21.520 at Bloomberg dot com slash podcast. All right, let's talk 0:00:21.560 --> 0:00:23.799 to space. I mean, yesterday was an exciting day for 0:00:24.120 --> 0:00:28.400 Jeff Bezos for commercialization of space. If you will, Let's 0:00:28.400 --> 0:00:30.880 bring in uh Andrew shen And he's a chief executive 0:00:30.920 --> 0:00:33.559 officer procure a m Andrew, you know a lot of 0:00:33.560 --> 0:00:36.760 folks talking about space, talking about the commercialization of space, 0:00:37.040 --> 0:00:39.760 privatization of space. You're right on the front lines. What 0:00:39.840 --> 0:00:41.920 did you take away from what we've seen over the 0:00:42.040 --> 0:00:44.800 last you know, ten days, first with Sir Richard Branson 0:00:44.840 --> 0:00:48.640 and then yesterday with Jeff Bezos. What's your takeaway? I 0:00:48.680 --> 0:00:52.559 think it's truly incredible and inspiring, and we're seeing, you know, 0:00:52.640 --> 0:00:56.160 in real time in our lives, how people that you 0:00:56.200 --> 0:00:59.720 know focus money and technology and invest in these types 0:00:59.720 --> 0:01:03.160 of techechnologies are able to achieve their goals. And I 0:01:03.160 --> 0:01:07.120 think it's you really encouraging for individuals, whether you're students, 0:01:07.120 --> 0:01:11.040 whether you're entrepreneurs UM, whether you're just fascinated by space 0:01:11.120 --> 0:01:13.240 to CEO over and over again. I feel like this 0:01:13.319 --> 0:01:17.360 year we've seen some incredible breakthroughs and some new technologies, 0:01:17.440 --> 0:01:19.959 and it's opening up the commercial space industry. As you said, 0:01:20.959 --> 0:01:24.760 So in terms of investors, what kind of interest have 0:01:24.880 --> 0:01:27.160 you got? I mean, I know we've seen incredibly inflows 0:01:27.160 --> 0:01:32.640 into space um related assets, but but where do people 0:01:32.680 --> 0:01:34.679 want to put their money? Where? Where are you looking 0:01:34.720 --> 0:01:39.840 to invest in space related stuff? Yeah, so, you know, 0:01:40.440 --> 0:01:43.520 space is also a risky proposition. You know, it takes time, 0:01:43.520 --> 0:01:45.880 it takes money, and you know, certainly safety is something 0:01:45.880 --> 0:01:48.960 that needs to be figured out before companies can really 0:01:49.640 --> 0:01:52.880 uh move forward quickly. And you know, for us from 0:01:52.920 --> 0:01:55.160 the you know, my whole experiences being in the h 0:01:55.280 --> 0:01:57.960 F market, diversification was always something that I thought was, 0:01:58.000 --> 0:02:00.920 you know, something investors might want look at, especially with 0:02:01.000 --> 0:02:04.400 earlier stage, longer term kind of industry such as space 0:02:04.760 --> 0:02:07.320 being one of those. And you know, right now, if 0:02:07.360 --> 0:02:09.840 you look at UFO, it's got thirty five companies from 0:02:09.840 --> 0:02:12.240 around the world, all specializing in different areas. But you 0:02:12.280 --> 0:02:16.040 have a real large exposure to satellites and communications and 0:02:16.080 --> 0:02:18.639 you're not really getting much of that exposure through other 0:02:18.680 --> 0:02:21.160 types of ets. But you're getting all different areas to 0:02:21.280 --> 0:02:24.560 like space tourism and launch companies as well as those 0:02:24.760 --> 0:02:27.520 using your creative technology that we can use in space, 0:02:27.639 --> 0:02:30.160 as well as using space to help us benefit ourselves 0:02:30.160 --> 0:02:33.000 down here on Earth. Andrew, you know, I think what 0:02:33.200 --> 0:02:36.959 yesterday's launch and the launch from Richard Branson earlier just 0:02:37.000 --> 0:02:40.960 kind of revised the conversation about. Okay, remind me again, 0:02:41.000 --> 0:02:44.600 what is the business case for commercializing space? Is it 0:02:44.760 --> 0:02:49.760 space tourism, is it hauling stuff around? Um? How do 0:02:49.840 --> 0:02:52.640 how do you think about it? Yeah, well, if you 0:02:52.720 --> 0:02:55.160 if you look at Blue Origin, their goal is to 0:02:55.200 --> 0:02:58.040 build the road to space so that you know, the 0:02:58.080 --> 0:03:01.919 future can can enjoy space. And being able to create 0:03:01.960 --> 0:03:05.040 things like reusable rockets which help lower the cost of 0:03:05.120 --> 0:03:08.000 launching things into outer space is one way you can 0:03:08.040 --> 0:03:10.560 do that. And by being able to lower the barriers 0:03:10.560 --> 0:03:13.080 of entry to space, it could bring in completely new 0:03:13.160 --> 0:03:17.120 companies and entrances and research projects and whatnot. Um that 0:03:17.200 --> 0:03:20.800 maybe we're preventedive before at higher costs. So there's a 0:03:20.800 --> 0:03:23.160 lot that they're doing right now in space, and they're 0:03:23.160 --> 0:03:25.560 trying to build out that infrastructure so we can really 0:03:25.600 --> 0:03:28.200 start to see what we can do when when we 0:03:28.240 --> 0:03:31.120 can get these costs down. Space tourism is just you know, 0:03:31.160 --> 0:03:34.040 one small part of the broader space industry, and so 0:03:34.480 --> 0:03:36.760 that hasn't stopped it from getting the lion share of 0:03:36.800 --> 0:03:39.720 the attention in recent days. Yeah, I mean, tourism is exciting. 0:03:39.760 --> 0:03:42.520 I can't wait till me and Paul can go broadcast 0:03:42.600 --> 0:03:47.160 live from some private space station. But what else can 0:03:47.200 --> 0:03:49.160 you do up there? I mean, can you can you 0:03:49.200 --> 0:03:53.640 mine resources up there? Can you um bring some heavy 0:03:53.680 --> 0:03:55.360 industry up there so we don't have to have the 0:03:55.360 --> 0:03:57.880 carbon emissions here on Earth? I mean, is there really 0:03:58.240 --> 0:04:03.720 uh a lot allread planned? There's a tremendous amount of 0:04:03.720 --> 0:04:05.360 things that you can do in space and we're not 0:04:05.400 --> 0:04:07.960 even scratching the surface where we haven't even gotten to 0:04:08.080 --> 0:04:11.119 the surface. Really, when you look at things and yes, 0:04:11.240 --> 0:04:14.480 you know manufacturing and outer space, well, when you're building 0:04:14.480 --> 0:04:18.320 with with zero, with weightlessness, you know, that's that's incredible. 0:04:18.400 --> 0:04:20.680 You know, you can build things more efficiently, you can 0:04:20.680 --> 0:04:23.880 build things larger, but really, you know, you mentioned your 0:04:23.920 --> 0:04:26.680 resource extraction and mining asteroids. Yes, it might be a 0:04:26.720 --> 0:04:29.039 little bit further along, but we already have plans of 0:04:29.120 --> 0:04:31.880 going to the Moon and building permanent bases, and China 0:04:31.920 --> 0:04:34.240 wants to build a permanent research based on the Moon. 0:04:34.240 --> 0:04:37.200 By well, you can't do that without being able to 0:04:37.200 --> 0:04:39.800 extract the resources around you unless you want to try 0:04:39.800 --> 0:04:41.839 to send every single item that you're going to need 0:04:41.880 --> 0:04:44.400 in space to outer space, which takes time and a 0:04:44.440 --> 0:04:47.200 significant amount of money. So being able to actually harness 0:04:47.279 --> 0:04:50.760 the resources that are available in outer space becomes extremely 0:04:50.800 --> 0:04:54.480 critical as we try to expand humanity beyond Earth. And 0:04:54.560 --> 0:04:57.520 so you know the resources are there, figuring out the 0:04:57.520 --> 0:04:59.880 technologies on how we can bring them to two people. 0:05:00.000 --> 0:05:02.400 How do you sustain life on the Moon, on Mars, 0:05:02.440 --> 0:05:04.640 on the space station, and we have already seen some 0:05:04.720 --> 0:05:08.479 incredible technologies like being able to better purify water, and 0:05:08.480 --> 0:05:10.279 that's something that we can use here on Earth. We 0:05:10.320 --> 0:05:14.440 saw space helped build out and further improved technologies for 0:05:14.680 --> 0:05:17.480 solar technology, which is another benefit. So there's a lot 0:05:17.520 --> 0:05:19.960 that you could do with space and here all right, Andrew, 0:05:19.960 --> 0:05:21.640 thank you so much for joining us. We always appreciate 0:05:21.680 --> 0:05:25.160 getting your thoughts in perspective here on this space race, 0:05:25.200 --> 0:05:29.000 if you will, commercialization, privatization of space. Andrew Shannon, Chief 0:05:29.000 --> 0:05:31.960 Ecazette Officer of Procure a M and again it was 0:05:32.000 --> 0:05:35.799 a busy week with the Jeff Bezos Blue Origin UFO, 0:05:35.960 --> 0:05:38.160 the UFO E t F. Yeah, the UFO et F. 0:05:38.240 --> 0:05:40.160 It's has to be that ticker. There's no other ticker 0:05:40.240 --> 0:05:44.799 that could consider called Cristopher, head of Global Market Strategy 0:05:44.839 --> 0:05:49.719 at Wells Fargo Investment Institute, based in the city of St. Louis. Paul, 0:05:49.720 --> 0:05:52.400 thanks so much for joining us here again just this week. 0:05:52.480 --> 0:05:54.120 It seems to be a little bit of a microcosm 0:05:54.200 --> 0:05:55.719 what we've been dealing with. You know, a little bit 0:05:55.760 --> 0:05:58.880 of volatility, but I mean a lot of altility, arguably 0:05:58.920 --> 0:06:01.640 from a Monday through a wednes but still grinding higher. 0:06:02.120 --> 0:06:05.679 How do you guys think about equities in a market 0:06:05.680 --> 0:06:10.680 where you have, boy, the tenure on seven. Yeah, there's 0:06:10.720 --> 0:06:12.760 there's just no reason for the tenure to be at 0:06:12.800 --> 0:06:15.200 two a one point to seven percent. But look at 0:06:15.240 --> 0:06:18.720 the twos to tens spread. Look at that yield curve slope. 0:06:18.760 --> 0:06:20.919 It's the last time you had a hundred and seven 0:06:21.240 --> 0:06:24.120 basis points or one point seven percent and that slope 0:06:24.160 --> 0:06:27.840 was two thousand seventeen, pretty good year for equities. We 0:06:27.880 --> 0:06:29.960 still think that what we're looking at here is a 0:06:30.000 --> 0:06:33.480 market that ran very hard, very fast. Uh And and 0:06:33.279 --> 0:06:36.800 and expectations got ahead of themselves. But we think the 0:06:36.800 --> 0:06:39.719 the growth is still strong. Equities have further to run, 0:06:39.960 --> 0:06:41.720 and we think that the yield curve will steep and 0:06:41.839 --> 0:06:45.400 eventually further. How how does that happen with the yield 0:06:45.400 --> 0:06:48.880 curve and what's going on right now with rates? So 0:06:48.920 --> 0:06:51.760 what's going on right now some combination of I mean 0:06:51.839 --> 0:06:54.080 one twenty for heaven's sake on the tenure, that's like 0:06:54.120 --> 0:06:58.159 our recession. So so people have run ahead the expectations 0:06:58.200 --> 0:07:00.840 for growth a run ahead of reality. Uh. And now 0:07:01.040 --> 0:07:05.080 now we're seeing discussions about pete growth. We're seeing discussions 0:07:05.080 --> 0:07:07.840 about could have fed make a policy mistake? Are they 0:07:07.880 --> 0:07:11.280 withdrawing liquidity? Uh? You're seeing central banks around the world 0:07:11.280 --> 0:07:14.680 withdrawing liquidity. And then you you've got also the conversation 0:07:14.720 --> 0:07:16.640 about the delta variant? Is that going to result in 0:07:16.640 --> 0:07:20.280 more lockdown? So markets need to get through work themselves 0:07:20.320 --> 0:07:23.160 through those several issues, and then we think you'll start 0:07:23.160 --> 0:07:25.800 to see if you're gonna have inflation higher, and we 0:07:25.840 --> 0:07:28.680 think we will have inflation somewhat higher than the average 0:07:28.920 --> 0:07:31.320 of the last ten years. Will it'll be higher for 0:07:31.360 --> 0:07:34.760 the next couple You're gonna have inflation at two. You're 0:07:34.800 --> 0:07:37.560 gonna have yields higher than what they are right now, eventually. 0:07:37.600 --> 0:07:40.600 But some of these psychological issues have to be worked through, 0:07:41.120 --> 0:07:43.760 all right, Paul. Some people in the marketing, the equity markets, 0:07:43.800 --> 0:07:46.080 you know, they're kind of it's at pull and tug. 0:07:46.160 --> 0:07:48.240 Do I embrace some of those big growth stories that 0:07:48.280 --> 0:07:50.520 have been so good for so long, the Amazons, the 0:07:50.560 --> 0:07:52.440 Netflix of the world have just reported last night, Or 0:07:52.440 --> 0:07:55.480 do I, you know, kind of play into that rotation trade, 0:07:55.520 --> 0:07:57.200 maybe a little bit of a reopening trade some of 0:07:57.200 --> 0:07:59.440 the cyclicals, some the financials maybe, do you How do 0:07:59.440 --> 0:08:02.360 you guys think about that? Yeah, So for a while 0:08:02.440 --> 0:08:04.880 this year we were actually barbelled. We had an overweight 0:08:04.920 --> 0:08:08.760 to cyclicals and an overweight to growth. Um, we've decided 0:08:08.800 --> 0:08:13.120 to go tactically short term with an overweight now to cyclicals, 0:08:13.120 --> 0:08:17.600 and we returned growth. So I think TEX think a 0:08:17.680 --> 0:08:21.400 consumer discretionary. We returned those to their long term allocations. 0:08:21.400 --> 0:08:23.880 So if you have sort of a long term view, 0:08:24.360 --> 0:08:28.360 and you're willing to give text some reasonable allocation over 0:08:28.400 --> 0:08:31.560 that long term. Stick with that allocation right now, but 0:08:31.720 --> 0:08:35.640 take money from defensives like utilities UH and stapled and 0:08:35.679 --> 0:08:39.319 put that into cyclicals for the moment. No one likes 0:08:39.360 --> 0:08:44.160 defensives right now and they're underperforming. Yeah, well, that's one 0:08:44.160 --> 0:08:46.120 of our best calls this year. I guess that's why 0:08:46.480 --> 0:08:48.160 you want to stay out of the area. What do 0:08:48.160 --> 0:08:53.000 you think regionally? Does the US continue to outperform? Do 0:08:53.080 --> 0:08:56.240 you bet on other reopening trades in Europe, for example, 0:08:56.320 --> 0:08:59.280 or in Asia? We don't think it's time to to 0:08:59.360 --> 0:09:02.040 bet on that opening trade. They will struggle with the 0:09:02.080 --> 0:09:05.160 delta more than we will. UH. They're they're being more 0:09:05.160 --> 0:09:07.480 close together. You will have parts of the U s 0:09:07.559 --> 0:09:10.360 that will adopt mask mandates back again, we think, but 0:09:10.480 --> 0:09:13.440 the US is probably still the place to be. We've 0:09:13.480 --> 0:09:16.880 done well with that preference over time. We'd like emerging 0:09:16.920 --> 0:09:19.800 markets better than Europe and Japan also, but they may 0:09:19.840 --> 0:09:21.840 struggle a little bit in the coming months until their 0:09:21.920 --> 0:09:25.000 vaccination rates get up there. So stick for right now, 0:09:25.040 --> 0:09:27.200 stick with the U s as and overweight, and if 0:09:27.240 --> 0:09:29.719 you have anything left over cash wise stick that in 0:09:29.800 --> 0:09:32.800 emerging markets. How about yield? I mean, boy, is again 0:09:32.800 --> 0:09:34.080 we were just talking about the ten year at one 0:09:34.080 --> 0:09:36.839 point to seven. Where are you looking for or where 0:09:36.880 --> 0:09:41.000 do you suggest to your clients they look for yield? Well, 0:09:41.080 --> 0:09:43.439 right now we're thinking kind of like two percent of 0:09:43.520 --> 0:09:46.560 the end of the year. We're reviewing that number though 0:09:46.600 --> 0:09:49.120 that might be a little bit high, but it's certainly 0:09:49.160 --> 0:09:50.760 going to be higher, we think, than where it is 0:09:50.920 --> 0:09:57.880 right now. Alright, So, uh, we're looking at a situation 0:09:57.920 --> 0:10:00.360 where it's not it's not easy to find a return. 0:10:00.480 --> 0:10:03.600 I mean, if you're not looking in stocks, um, do 0:10:03.679 --> 0:10:05.880 you do you trust the high yield market to not default? 0:10:05.920 --> 0:10:09.440 I mean, uh, we saw I think it was um 0:10:10.240 --> 0:10:13.160 uh it was Standard Pores that said only one percent 0:10:13.440 --> 0:10:15.240 of junk dad is going to default this year. It 0:10:15.320 --> 0:10:19.880 seems like a big bat to me. It's an interesting question. 0:10:20.160 --> 0:10:22.720 I mean the question for investors that the real question 0:10:22.720 --> 0:10:24.320 that you should always come back to is am I 0:10:24.320 --> 0:10:26.600 getting paid to take that risk? Exactly? And with the 0:10:26.640 --> 0:10:29.000 dividend yield in the in the SMP right now at 0:10:29.040 --> 0:10:31.200 a percent and a half, you're not that much below 0:10:31.280 --> 0:10:33.240 where what you would get in yield on a on 0:10:33.280 --> 0:10:35.640 a high yield, but with a lot more risk. We 0:10:35.720 --> 0:10:38.199 think not this year perhaps, but in the coming year. 0:10:38.320 --> 0:10:40.280 So you know, I wouldn't be buying a lot of 0:10:40.720 --> 0:10:44.080 high yield here. Certainly your long term allocation. If you 0:10:44.120 --> 0:10:47.800 have some fixed income in your long term goals, take 0:10:47.840 --> 0:10:50.880 your high yield up to that allocation, but don't overweight 0:10:50.960 --> 0:10:53.920 it at the expense of equities. Very good. Paul Christopher, 0:10:53.920 --> 0:10:56.920 head of Global market Strategy at the Wells Fargo Investment 0:10:56.960 --> 0:11:00.640 Institute based in St. Louis. We appreciate getting of thoughts here. 0:11:03.160 --> 0:11:06.160 I'm pretty pumped because we're gonna bring in Adam Johnson 0:11:06.240 --> 0:11:09.320 right now. He's the founder and author of The Bulls 0:11:09.320 --> 0:11:12.480 eyebrew a brief but um full disclosure. He's also one 0:11:12.520 --> 0:11:15.160 of my favorite people. We have uh we used to 0:11:15.160 --> 0:11:17.080 play a lot of squash together. We've been known to 0:11:17.080 --> 0:11:20.160 have the occasional beverage together. And he's got a lot 0:11:20.160 --> 0:11:25.280 of great ideas about stocks that he likes, especially American 0:11:25.320 --> 0:11:28.240 kind of ingenuity plays. And he's done everything on Wall 0:11:28.240 --> 0:11:32.679 Street traded like jet fuel futures. He has run a 0:11:32.720 --> 0:11:35.080 hedge fund, found and run a hedge fund. He was 0:11:35.120 --> 0:11:38.680 an anchor here at Bloomberg TV Um, Adam, great to 0:11:38.720 --> 0:11:43.800 have you with us. UM. I'm looking through I'm looking 0:11:43.800 --> 0:11:47.440 through the bulls Eye brief from Monday, and I see 0:11:47.679 --> 0:11:50.640 you've got some new picks. And this is what you do. 0:11:50.679 --> 0:11:53.360 You're an idea factory right for people who love stocks. 0:11:53.440 --> 0:11:58.600 So one of them stands out to me because you are, UM, 0:11:58.640 --> 0:12:01.720 a very clean cut Princeton man. But I see a 0:12:01.760 --> 0:12:06.400 marijuana company here, you like purely foldings. What's the deal. Well, 0:12:06.440 --> 0:12:09.480 you know, I've been resisting this for so long. In fact, 0:12:09.520 --> 0:12:11.400 I started off the note I said to people. You know, 0:12:11.640 --> 0:12:14.480 I've I've never inhaled, I've never had a hash rownie. 0:12:14.679 --> 0:12:17.040 But I think I need to start taking this thing seriously. 0:12:17.520 --> 0:12:19.640 And and I'll tell you why. I'll give you one 0:12:19.720 --> 0:12:22.839 statistic that I think really UM sort of frames the 0:12:23.120 --> 0:12:26.960 conversation about UM. I hesitate to say pot stocks, but 0:12:27.040 --> 0:12:30.400 let's call them cannabis stocks. UM. In the state of Illinois, 0:12:30.480 --> 0:12:35.120 in the first quarter, total tax revenues from cannabis almost 0:12:35.320 --> 0:12:40.320 equaled total tax revenues from liquor. That's amazing. So you 0:12:40.360 --> 0:12:44.120 know it's it's yeah, it gets my attention to and 0:12:44.120 --> 0:12:46.560 and again you know, it's not the sort of thing 0:12:46.679 --> 0:12:49.640 my whole thing's American ingenuity right to people and companies 0:12:49.720 --> 0:12:53.080 driving the world forward. And um, you know, I don't 0:12:53.200 --> 0:12:58.240 usually think of recreational activities, which may include cannabis, as 0:12:58.360 --> 0:13:02.160 as necessarily innovative. And yet, uh, there is some incredibly 0:13:02.200 --> 0:13:04.959 innovative stuff that's happening. Um, I mean there are a 0:13:05.000 --> 0:13:09.400 number of pharmaceuticals that actually are starting to use CDD, 0:13:09.640 --> 0:13:14.120 one of the two essential chemicals in cannabis, to treat 0:13:14.160 --> 0:13:16.920 things like autism. And you know, so I think, I 0:13:17.040 --> 0:13:19.760 just think it. The reason I wrote this up is 0:13:19.840 --> 0:13:21.960 I feel like again, it's kind of funny. I feel 0:13:21.960 --> 0:13:24.280 a little tongue in cheek. It's the blue chip pure 0:13:24.360 --> 0:13:28.199 Leaf is the blue chip operator. It's the most profitable operator. 0:13:28.320 --> 0:13:31.640 It's the largest, it's growing the fastest, it does everything right. 0:13:31.880 --> 0:13:34.600 It operates in about twenty three different states. It's margins 0:13:34.600 --> 0:13:37.440 are the highest. And I think there's just enough going 0:13:37.559 --> 0:13:40.920 on here that that I wanted to educate myself about 0:13:40.960 --> 0:13:43.120 this thing, and and I decided that I was sold 0:13:43.120 --> 0:13:44.640 on it. So I wrote it up for my buals 0:13:44.640 --> 0:13:47.600 Eye subscribers as the current pick. So I've been buying 0:13:47.600 --> 0:13:49.880 it this week. Interesting, Adam, I know, you know, I've 0:13:49.920 --> 0:13:52.680 again I've always considered you just a fine stock picker. 0:13:52.720 --> 0:13:56.640 I know you're uh focus a lot on technology and 0:13:56.640 --> 0:13:59.560 and how that's changing lives. And I think if we've 0:14:00.000 --> 0:14:01.600 I'm out of anything out of this pandemic. I think 0:14:01.600 --> 0:14:04.480 probably investors have a perhaps even a more a better 0:14:04.520 --> 0:14:08.040 appreciation for med tech biotech and you know some of 0:14:08.080 --> 0:14:11.040 the advances they've had in terms of the vaccines. Where 0:14:11.040 --> 0:14:14.079 are you looking right now in that med tech biotech space? 0:14:14.120 --> 0:14:17.400 What's got your attension? Well, I'll tell you, I think 0:14:17.520 --> 0:14:22.680 the intersection of artificial intelligence and wearables is incredibly exciting. 0:14:22.720 --> 0:14:25.600 I actually call it the Holy Grail of healthcare. What 0:14:25.640 --> 0:14:29.800 we're now doing is using UM wearables. UM you know, 0:14:29.960 --> 0:14:33.800 an eye watch that that monitors your your vital signals, 0:14:34.240 --> 0:14:38.120 transmits that data to a doctor thanks to five G 0:14:38.520 --> 0:14:42.560 who then not only compares UM that incoming data in 0:14:42.640 --> 0:14:46.360 real time to your own baseline, but to millions of 0:14:46.400 --> 0:14:49.200 other patients. And all of a sudden, now you can 0:14:49.320 --> 0:14:53.040 start to have a conversation with a doctor, or really 0:14:53.080 --> 0:14:55.400 between a patient a doctor whereby they say, well, you know, 0:14:55.480 --> 0:14:57.800 maybe you want to adjust your behavior this way, and 0:14:57.800 --> 0:14:59.840 again it could be done in real time. So to me, 0:15:00.160 --> 0:15:04.760 that intersection um of of data and preventative care, that's 0:15:04.800 --> 0:15:08.320 the holy grail of healthcare. It's longer lives for patients, 0:15:08.640 --> 0:15:11.160 it's lower costs for providers. It's very exciting. There a 0:15:11.160 --> 0:15:13.080 whole bunch of aims that we could, you know, get 0:15:13.080 --> 0:15:16.600 into from Health Catalyst h C A T too in 0:15:16.720 --> 0:15:20.800 Novolan I n O V obviously to a doc which 0:15:20.800 --> 0:15:23.600 bought love angoum on and on. I mean, it's just 0:15:23.800 --> 0:15:26.600 that that really gets my attention. Guys, you like nine meter, 0:15:26.880 --> 0:15:30.040 you like telamed Um, You've got a few picks, and 0:15:30.040 --> 0:15:33.240 I'll let I guess um listeners subscribe the bulls Eye 0:15:33.240 --> 0:15:37.000 brief for that. I wonder about Chipotle. Why do you 0:15:37.040 --> 0:15:39.600 like Chipotle? We've been talking a lot about it. I 0:15:39.600 --> 0:15:42.080 think Paul had five burritos for lunch. But I see 0:15:42.080 --> 0:15:44.320 that you were buying it on on the dip. I 0:15:44.360 --> 0:15:47.120 guess on Monday. Well, actually you know what I was. 0:15:47.240 --> 0:15:50.640 I was buying charge point. Uh the ticker for which 0:15:50.760 --> 0:15:55.800 is uh, oh, excuse me, my mistake c HPT. I 0:15:55.880 --> 0:15:59.640 instantly thought of Mexican food. What's the charge point? You know? Look? 0:15:59.720 --> 0:16:01.880 You you and I are you and I are are 0:16:01.920 --> 0:16:04.120 big fans of Mexican food, so you know, I'm not 0:16:04.120 --> 0:16:06.560 gonna hold it against you. It's not your favorite Mexican place. 0:16:06.600 --> 0:16:09.360 I know that because I've been there with Mexicano. There 0:16:09.360 --> 0:16:14.040 you go. Ye, what's charge Point then? Oh? Charge Point 0:16:14.160 --> 0:16:16.560 is really really cool company, believe it or not. It's 0:16:16.560 --> 0:16:21.720 the largest UM producer and operator of what's called level 0:16:21.760 --> 0:16:24.920 two chargers for electric vehicles. And Level two chargers, by 0:16:24.960 --> 0:16:27.360 the way, are the ones that that you have if 0:16:27.400 --> 0:16:29.120 you want to be able to charge your card, you know, 0:16:29.280 --> 0:16:31.840 within an hour or two, as opposed to a Level 0:16:31.880 --> 0:16:34.720 one which takes all night. UM. You can buy a 0:16:34.800 --> 0:16:38.720 level two charge you r at home depot at auto Zone. Amazingly, 0:16:38.840 --> 0:16:42.920 charge Point again tickers c HPT. This I recommended to 0:16:43.160 --> 0:16:45.200 both I subscribers a couple of weeks ago, so I've 0:16:45.240 --> 0:16:49.760 been buying it recently, building my position UM market share 0:16:49.840 --> 0:16:54.720 here in the US. That's incredible about in Europe UM again, 0:16:54.880 --> 0:16:59.720 strong margins obviously, the things growing like a weed. Um uh. 0:16:59.760 --> 0:17:02.240 And it's just it's you know, it's an exciting place 0:17:02.240 --> 0:17:04.800 to be talk about American ingenuity. You know, here's the 0:17:04.840 --> 0:17:08.639 company that enables us to be cleaner electric vehicles on 0:17:08.680 --> 0:17:11.680 and on. Great having you, Adam, thanks so much for 0:17:11.760 --> 0:17:14.480 joining us. Adam Johnson there, who is the founder and 0:17:14.480 --> 0:17:17.840 the author of the Bulls Eye Brief, calling in from 0:17:18.080 --> 0:17:20.600 maybe he is at Rosa, Mexicana right now. He's got 0:17:20.600 --> 0:17:22.840 to be great Twitter feed as well. That's a musse 0:17:22.880 --> 0:17:28.399 follow from me, follow him. This is Bloomberg. Bloomberg Markets 0:17:28.440 --> 0:17:32.120 does roll on. Unfortunately, so does the coronavirus. And I'm 0:17:32.119 --> 0:17:33.879 gonna bring in Sam Facility to talk a little bit 0:17:33.920 --> 0:17:37.560 about that right now. He's got his latest research out 0:17:37.720 --> 0:17:41.359 on the terminal delta variants bad attributes may warrant a 0:17:41.440 --> 0:17:45.480 new COVID vaccine. He is, of course, or senior pharmaceutical analyst. 0:17:45.640 --> 0:17:48.760 He also runs AMA Research. Paul and I were talking 0:17:48.760 --> 0:17:50.359 about this. He's got a PhD in the stuff, so 0:17:50.400 --> 0:17:54.120 he knows what he's talking about. Sam My. My concern 0:17:54.240 --> 0:17:58.439 after reading your story is we know that, um, the 0:17:58.480 --> 0:18:02.879 delta variant is more infectious. Um, you point out that 0:18:02.920 --> 0:18:08.119 there's a raised viral load but also potentially worst disease outcomes. 0:18:08.119 --> 0:18:11.359 What do we know? What don't we know about the 0:18:11.400 --> 0:18:16.800 actual effects of this virus? Yeah? Hi, Math, So you've 0:18:16.800 --> 0:18:19.359 obviously got the data that came out of the de 0:18:19.600 --> 0:18:22.120 continues to flow out of Public Health England that looks 0:18:22.160 --> 0:18:25.680 at the phrase that that a lot of virologists don't 0:18:25.720 --> 0:18:30.720 like transmissibility of the virus, and that increased relative to 0:18:30.760 --> 0:18:35.320 the alpha variant in the region of thirty fiftiest seven 0:18:35.440 --> 0:18:38.359 seven or so present. And then and then you've got 0:18:38.400 --> 0:18:40.240 on top of that what looks to be a higher 0:18:40.320 --> 0:18:44.359 rate of hospitalizations in people who get infected, which of 0:18:44.400 --> 0:18:46.960 course depends on age and a lot of other factors. 0:18:47.000 --> 0:18:49.120 So you've got that data, and then what this data 0:18:49.160 --> 0:18:51.480 that came out that shows that the virus obviously have 0:18:51.600 --> 0:18:53.800 higher viral loads, so the more virus you have in 0:18:53.840 --> 0:18:57.640 your body, it is possible that it gets to the 0:18:57.680 --> 0:19:01.280 different corners of your body better or even has much 0:19:01.400 --> 0:19:04.720 bigger impact on your lung. And then also you get 0:19:04.760 --> 0:19:07.360 this thing that that these some of these viruses do, 0:19:07.640 --> 0:19:12.160 which is to basically force your the cells that they 0:19:12.200 --> 0:19:15.679 infect to fuse together, which is part of the pathology, 0:19:15.720 --> 0:19:19.080 but they use that also to multiply under the radar 0:19:19.520 --> 0:19:23.320 from your antibodies. So then you get one massive release 0:19:23.320 --> 0:19:26.600 of virus that is not good either. And this this 0:19:26.720 --> 0:19:30.240 delta varian seems to have all these wonderful attributes that 0:19:30.240 --> 0:19:33.560 that that do do the damage. Sam, do you is 0:19:33.560 --> 0:19:36.560 there what's the science telling us now about the ability 0:19:36.640 --> 0:19:39.280 of the various vaccines that are in the marketplace now 0:19:40.080 --> 0:19:43.399 as it relates to this delta variant. It's a pot 0:19:43.800 --> 0:19:46.119 There's two ways to to answer that question. If you 0:19:46.119 --> 0:19:48.040 want to go by what the world seems to get 0:19:48.040 --> 0:19:52.240 excited about, which is case counts, mild infections, anything that 0:19:52.240 --> 0:19:55.880 that tests positive and a PC are, then then we're 0:19:55.920 --> 0:19:59.359 in trouble because this delta variant is it's very fit 0:20:00.040 --> 0:20:02.680 us as quickly from person to person, and it's possible 0:20:03.680 --> 0:20:08.160 that it's more resistant to that initial shield of antibodies 0:20:08.160 --> 0:20:12.159 that vaccines give us, particularly antibodies for instance that we 0:20:12.280 --> 0:20:15.119 just saw recently from data from Johnson and Johnson. But 0:20:15.200 --> 0:20:17.280 if we go one step further and say, I actually 0:20:17.280 --> 0:20:19.720 know what we really worry about or care about is 0:20:19.840 --> 0:20:27.320 prevention of disease, not not costant sniffles, but actually lung damage, hospitalization, 0:20:27.480 --> 0:20:31.960 severe disease, etcetera. I think all the vaccines are capable 0:20:32.080 --> 0:20:35.399 of preventing that to about the same level as they 0:20:35.400 --> 0:20:40.040 have been to the other variants. My my biggest concern 0:20:40.160 --> 0:20:44.359 is the long haul COVID, and we don't really know 0:20:44.520 --> 0:20:46.640 so much about it yet. We can't obviously it hasn't 0:20:46.680 --> 0:20:49.680 been around long enough. But you know, I suffered from 0:20:49.800 --> 0:20:53.879 long term lime disease. I still have issues occasionally. Is 0:20:53.920 --> 0:20:55.560 this going to be the same kind of thing, Sam, 0:20:55.640 --> 0:21:00.320 that some people who get this are going to suffer chronically? Yeah. 0:21:00.320 --> 0:21:03.760 I mean the uk AT is estimating something like six 0:21:03.800 --> 0:21:06.960 percent of people who got COVID or who think you've 0:21:06.960 --> 0:21:09.480 got COVID. There's there's there's a little new ones there 0:21:10.359 --> 0:21:14.439 are suffering from some form of long term effects. And 0:21:14.480 --> 0:21:17.400 then of course that's a lot, right If you've had 0:21:17.440 --> 0:21:20.800 then like two or three million people infected, that's a 0:21:20.840 --> 0:21:23.080 lot of people who continue to suffer. And I hear 0:21:23.119 --> 0:21:26.080 horror stories. I mean I have a friend whose sister 0:21:26.359 --> 0:21:29.159 is like a thirty year old marathon runner and she 0:21:29.240 --> 0:21:33.920